Solution Manual For Consumer Behavior 8th Edition by Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieter

Instructor Manual: Consumer Behavior 8th Edition Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters

Solution Manual For Consumer Behavior 8th Edition Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters Chapter 1: Understanding Consumer Behavior

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................... 2 List of Student Downloads ............................................ 3 Chapter Objectives ................................................... 3 Complete List of Chapter Activities and Assessments .................. 3 Key Terms ............................................................ 4 What's New in This Chapter ........................................... 5 Chapter Outline ...................................................... 6 End-Of-Chapter Questions for Review and Discussion .................. 15 Additional Discussion Questions ..................................... 18 Additional Activities and Assignments ............................... 19

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the fundamentals of consumer behavior. Consumer behavior involves understanding the set of decisions (what, whether, why, when, how, where, how much, and how often) that an individual or group of consumers makes over time about the acquisition, use, or disposition of goods, services, ideas, or other offerings. The psychological core exerts considerable influence on consumer behavior. A consumer‘s motivation, ability, and opportunity affect their decisions and influence what a person is exposed to, what they pay attention to, and what they perceive and comprehend. These factors also affect how consumers categorize and interpret information, how they form and retrieve memories, and how they form and change attitudes. Each aspect of the psychological core has a bearing on the consumer decision-making process, which involves (1) problem recognition, (2) information search, (3) judgments and decision making, and (4) evaluating satisfaction with the decision.

Consumer behavior is affected by the consumer‘s culture and by the typical or expected behaviors, norms, and ideas of a particular group.

Consumers belong to a number of groups, share their cultural values and beliefs, and use their symbols to communicate group membership.

Household and social class influences are involved in consumer behavior, as are each individual‘s values, personality, and lifestyles. Consumer behavior can be symbolic and express an individual‘s identity. It is also indicative of how quickly an offering spreads throughout a market. Further, ethics and social responsibility play a role in consumer behavior.

Marketers study consumer behavior to gain insights that will lead to more effective marketing strategies and tactics. Ethicists and advocacy groups are keenly interested in consumer behavior, as are public policy makers and regulators who want to protect consumers from unsafe or inappropriate offerings. Consumers and society can both benefit as marketers learn to make products more user-friendly and to show concern for the environment. Finally, studying consumer behavior helps marketers understand how to segment markets and how to decide which to target, how to position an offering, and which marketing-mix strategies will be most effective.

Chapter Appendix This chapter‘s Appendix focuses on consumer behavior research and its special implications for marketers. Students will learn about various research methods, types of data, and ethical issues related to consumer research. With this background, they will be able to understand how consumer research helps marketers develop more effective strategies and tactics for reaching and satisfying customers.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 1-1

Explain the components that make up the definition of consumer behavior.

1-2

Identify the four domains of consumer behavior that affect acquisition, usage, and disposition decisions.

1-3

Discuss the benefits of studying consumer behavior.

1-4

Explain how companies apply consumer behavior concepts when making marketing decisions.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective N/A 1-1 1-2 1-4 1-1 – 1-4

Activity/Assessment

Icebreaker Group Activity Polling Activity Discussion Activity Knowledge Check Activity 1-1 – 1-4 Learn It: Concept Check Quiz: Chapter 01 Understanding Consumer Behavior 1-1 – 1-4 Apply It: Assignment: Chapter 01 Understanding Consumer Behavior 1-1 – 1-4 Apply It: Case

Source (i.e., PPT slide, Workbook) PowerPoint Slide 3 PowerPoint Slide 15 PowerPoint Slide 23 PowerPoint Slide 31 PowerPoint Slide 39

Duration

MindTap Learning Path Chapter 1 Folder

35–45 mins.

MindTap Learning Path Chapter 1 Folder

35–45 mins.

MindTap Learning Path

35–45 mins.

5–10 mins.

15-25 mins.

5–10 mins.

10-15 mins.

5 mins.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

Activity: Chapter 01 Understanding Consumer Behavior

Chapter 1 Folder

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KEY TERMS Chapter 1 Acquisition: The process by which a consumer comes to own or experience an offering.

Consumer behavior: The totality of consumers‘ decisions with respect to the acquisition, consumption, and disposition of goods, services, time, places, and ideas by human decision-making units (over time).

Culture: The typical or expected behaviors, norms, and ideas that characterize a group of people.

Disposition: The process by which a consumer discards an offering.

Marketing: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for individuals, groups, and society.

Offering: A product, service, activity, experience, or idea offered by a marketing organization to consumers.

Reference group: A group of people consumers compare themselves with for information regarding behavior, attitudes, or values.

Symbols: External signs that consumers use to express their identity.

Usage: The process by which a consumer uses or consumes an offering.

Chapter 1 Appendix Conjoint analysis: A research technique to determine the relative importance and appeal of different levels of an offering‘s attributes.

Data mining: Searching for patterns in a company database that offer clues to customer needs, preferences, and behaviors.

Ethnographic research: In-depth qualitative research using observations and interviews (often over repeated occasions) of consumers in real-world surroundings. Often used to study the meaning that consumers ascribe to a product or consumption phenomenon.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

Focus group: A form of interview involving 8 to 12 people; a moderator leads the group and asks participants to discuss a product, concept, or other marketing stimulus.

Independent variable: The ―treatment‖ or the entity that researchers vary in a research project.

Market test: A study in which the effectiveness of one or more elements of the marketing mix is examined by evaluating sales of the product in an actual market, for example, a specific city.

Netnography: Observing and analyzing the online behavior and comments of consumers.

Primary data: Data originating from a researcher and collected to provide information relevant to a specific research project.

Research foundation: A nonprofit organization that sponsors research on topics relevant to the foundation‘s goals.

Secondary data: Data collected for some other purpose that is subsequently used in a research project.

Survey: A method of collecting information from a sample of consumers, predominantly by asking questions.

Storytelling: A research method by which consumers are asked to tell stories about product acquisition, usage, or disposition experiences.

These stories help marketers gain insights into consumer needs and identify the product attributes that meet these needs.

Trade group: A professional organization made up of marketers in the same industry. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:     

Updated learning objectives New vignette to illustrate the consumer decision process Numerous new examples Numerous recent academic studies added New exhibits

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

I.

Defining Consumer Behavior (LO 1-1, PPT Slides 5–15) a. Consumer behavior: The totality of consumers‘ decisions with respect to the acquisition, consumption, and disposition of goods, services, time, places, and ideas by human decision-making units (over time) (See Exhibit 1.1 on PPT Slide 6)  Offering: A product, service, activity, experience, or idea offered by a marketing organization to consumers  Acquisition: The process by which a consumer comes to own or experience an offering  Usage: The process by which a consumer uses or consumes an offering  Disposition: The process by which a consumer discards an offering b. Consumer behavior involves understanding the set of decisions (what, whether, why, when, how, where, how much, and how often) that an individual or group of consumers makes over time.  More than just the way a person buys tangible products like toilet paper and soap  Involves goods, services, activities, experiences, people, and ideas  Reflects totality of consumers‘ decisions with respect to acquisition, usage/consumption, and disposition  Takes into account managing money and balancing financial decisions c. Consumer behavior is a dynamic process.  The sequence of acquisition, consumption, and disposition can occur over time in a dynamic order— hours, days, weeks, months, or years.  Entire markets are designed around linking one consumer‘s disposition decision to other consumers‘ acquisition decisions.  Major life events have a major impact on consumer behavior as well.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

d. Consumer behavior can involve many people.  It does not necessarily reflect the action of a single individual.  Individuals engaging in consumer behavior can take on one or more roles. e. Consumer behavior involves many decisions.  It involves understanding whether, why, when, where, how, how much, how often, and for how long consumers will buy, use, or dispose of an offering.  Decisions are often related to personal goals, safety concerns, or a desire to reduce economic, social, or psychological risk.  Decisions can also be affected by subtle cues in our environment. f. U.S. consumers spend an average of about $90 per day on goods and services in a typical month. (See Table 1.1 on PPT Slide 10)  On average, U.S. consumers spend more for basics like housing, transportation, and food than for other categories of expenditures. g. Consumption can occur for a number of reasons.  Among the most important reasons, are the ways in which an offering meets someone‘s needs, values, or goals.  Acquisition may be related to a consumer‘s attitudes toward money, materialism, status, emotions, and self-control.  Sometimes our reasons for using an offering are filled with conflict, which leads to some difficult consumption decisions. h. Marketers also try to understand why consumers do not acquire, use, or dispose of an offering.  Transparency is increasingly of concern when consumers want to know what a brand or company stands for. i. Table 1.2 in the text shows that there are many ways that consumers can acquire an offering:  Buying  Trading  Renting or Leasing  Bartering  Gifting  Finding  Stealing  Sharing 7 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

j. Ways of disposing of an offering include the following:  Find a new use for it  Get rid of it temporarily  Get rid of it permanently k. When to acquire/use/dispose of an offering:  Factors include our perceptions of and attitudes toward time itself  Variety, life transitions, traditions  Knowing when others might or might not be buying or using an offering l. Where to acquire/use/dispose of an offering:  Need for privacy  Convenience m. How much, how often, and how long to acquire/use/dispose of an offering:  Consumers‘ inclination not to waste things  Decision variation from person to person and from culture to culture n. Consumer behavior involves consumer emotions and coping.  Positive and negative emotions can affect how consumers think, the choices they make, how they feel after making a decision, what they remember, and how much they enjoy an experience.  Because issues related to consumer behavior can involve stress, consumers often need to cope in some way.  Consumers often use products to regulate their feelings. o. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 15) 15–25 minutes total  As a group, identify some marketing strategies and tactics that try to influence one or more of the dimensions of consumer behavior shown in Exhibit 1.1. o Students‘ responses will vary, but possible answers include the following:  Scanning trends and conditions in the market  Identifying how and where consumers purchased various product types  Studying customer lifestyles  Examining consumer income levels  Determining important service aspects, such as type of warranty offered 8 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

 II.

Identifying the expected life by consumers of various product types.

What Affects Consumer Behavior? (LO 1-2, PPT Slides 16–23) a. As shown in Exhibit 1.4 (PPT Slide 17), consumer behavior encompasses four domains:  the consumer‘s culture,  the psychological core,  the process of making decisions, and  consumer behavior outcomes and issues. b. Before consumers can make decisions, they must have some source of knowledge or information upon which to base their decisions—known as the psychological core.  Motivation, ability, and opportunity  Exposure, attention, perception, and comprehension  Memory and knowledge  Forming and changing attitudes c. The process of making decisions:  Problem recognition and the search for information  Making judgments and decisions  Making postdecision evaluations d. Consumption decisions and how we process information are affected by culture.  Culture: The typical or expected behaviors, norms, and ideas that characterize a group of people  Reference group: A group of people consumers compare themselves with for information regarding behavior, attitudes, or values  Social, diversity, household, and social class influences  Values, personality, and lifestyle e. Consumer behaviors can symbolize who we are.  Symbols: External signs that consumers use to express their identity  The groups we belong to and our sense of self can affect the symbols we use, consciously or unconsciously, to express our actual or desired identity. f. Consumer behaviors can diffuse through a market.  The diffusion of information can have both negative and positive effects for marketers. g. Consumer behavior outcomes also influence and are influenced by issues of ethics and social responsibility.  Both consumers and marketers can and do use marketing for constructive purposes, balancing short and long9

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

term horizons plus the interests of themselves and others. h. Polling Activity: Conduct a poll with the students and then discuss the responses as a group. (PPT Slide 23) 5–10 minutes total  Opinion leaders or ―influencers‖ on social media play a key role in my consumption decisions. o Ask students whether or not their reference groups make them feel as if they should behave in a certain way. o Ask students to consider whether certain types of opinion leaders have a stronger influence on their behavior than others.

III.

Who Benefits from the Study Of Consumer Behavior? (LO 1-3, PPT Slides 24–26) a. Various groups use consumer research: marketing managers, ethicists and advocates, public policy makers and regulators, academics, and consumers. b. The study of consumer behavior provides critical information to marketing managers for developing marketing strategies and tactics.  Marketing: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for individuals, groups, and society. c. Concerned consumers sometimes form advocacy groups to create public awareness of inappropriate practices.  They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts. d. Understanding consumer behavior is crucial for legislators, regulators, and government agencies in developing policies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices.  In turn, marketers‘ decisions are affected by these public policy actions. e. Understanding consumer behavior is important in the academic world.  Academics disseminate knowledge about consumer behavior when they teach courses on the subject.  Academics generate knowledge about consumer behavior when they conduct research focusing on how consumers act, think, and feel when acquiring, using, and disposing of offerings.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior



Academic research is useful to marketing managers, advocacy groups, policy makers, regulators, and others who need to understand consumer behavior. f. Understanding consumer behavior enables marketers and other organizations to provide tools for more informed decisionmaking.

IV.

Making Business Decisions Based on the Marketing Implications of Consumer Behavior (LO 1-4, PPT Slides 27–30) a. Developing and implementing customer-oriented strategy:  Segmentation of the market  Profitability of each segment  Characteristics of consumers in each segment  Customer satisfaction with existing offerings b. Developing products:  Consumer ideas for new products  Attributes that can be added or changed in existing products  Branding of offering  Appearance of package and logo c. Positioning:  Positioning of competitive offerings  Positioning of one‘s own offerings  Need for repositioning offerings d. Making promotion and marketing communications decisions:  Communication objectives  Appearance of marketing communications  Location, time, and effectiveness of advertising  Sales promotion objectives and tactics  Effectiveness of sales promotions  Salesperson decisions to best serve customers e. Making pricing decisions:  Price range of a product or service  Consumer sensitivity to price and price changes  Pricing tactics to be used f. Making distribution decisions:  Time and convenience of consumers  Assortment of merchandise  Store design g. Discussion Activity: Conduct an instructor-led class discussion. (PPT Slide 31) 10–15 minutes total  What are some specific examples of consumption differences between different cultures?

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

o



V.

Students‘ responses will vary. Culture refers to the typical or expected behaviors, norms, and ideas that characterize a group of people. It can be a powerful influence on all aspects of human behavior. A consumer has certain feelings, perceptions, and attitudes because of the unique combination of groups to which they belong and the influence they have on their values, personality, and lifestyle. o For example, vehicles in the United States tend to be quite large in comparison to those found in Europe. This is due to many factors, such as the types of roads and driving conditions found in each region, the price of fuel and sensitivity to that price, and local safety and emission requirements. In addition, consumers in the U.S. tend to place significant importance on the oversized nature of the automobiles they drive What types of decisions would need to be made based upon the marketing implications of these differences. o Students‘ responses will vary depending upon the examples they identify.

Appendix: Developing Information About Consumer Behavior (PPT Slides 32–38) a. This appendix explains some of the main tools used to collect information about consumers, describes the organizations involved in research, and introduces ethical issues in research.  Some are based on what consumers say and some are based on what they do.  Data may be collected from relatively few people or compiled from huge samples. b. Researchers collect and analyze two types of data for marketing purposes.  Primary data: Data originating from a researcher and collected to provide information relevant to a specific research project  Secondary data: Data collected for some other purpose that is subsequently used in a research project c. A number of tools are available in the consumer researcher‘s ―tool kit‖ for gathering primary data.  Each can provide unique insights that, when combined, reveal very different perspectives on the complex world of consumer behavior.  The purpose is to guide companies in making more informed decisions and achieving marketing results 12

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

d. Table A.1 in the text summarizes the tools for primary research investigating consumer behavior.  Survey: A method of collecting information from a sample of consumers, predominantly by asking questions  Focus group: A form of interview involving 8 to 12 people; a moderator leads the group and asks participants to discuss a product, concept, or other marketing stimulus  Interview: One-on-one discussion in which an interviewer asks a consumer questions related to consumption behavior and decisions  Storytelling: A research method by which consumers are asked to tell stories about product acquisition, usage, or disposition experiences. These stories help marketers gain insights into consumer needs and identify the product attributes that meet these needs  Photography and pictures: Showing photographs or pictures to consumers (or asking consumers to take photos or draw pictures) as a way to elicit comments about marketing stimuli  Diaries: Asking consumers to maintain a written or online diary about product purchasing, media usage, and related behavior  Experiments: Conducting experiments under laboratory conditions to determine whether and how specific marketing phenomena affect consumer behavior o Independent variable: The ―treatment‖ or the entity that researchers vary in a research project  Field experiments: Conducting experiments, such as market tests in the real world, to determine actual consumer reaction to marketing stimuli o Market test* A study in which the effectiveness of one or more elements of the marketing mix is examined by evaluating sales of the product in an actual market, for example, a specific city  Conjoint analysis: A research technique to determine the relative importance and appeal of different levels of an offering‘s attributes  Observations and ethnographic research: In-depth qualitative research using observations and interviews (often over repeated occasions) of consumers in real-world surroundings. Often used to study the meaning that consumers ascribe to a product or consumption phenomenon 13 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior



Purchase panels: Tracking what consumers buy on different occasions or in different places  Database marketing: Combining all research data about consumers and their purchases into a database that can be analyzed to identify behavior patterns as insights for developing marketing programs o Data mining: Searching for patterns in a company database that offer clues to customer needs, preferences, and behaviors  Netnography: Observing and analyzing the online behavior and comments of consumers  Psychophysiological reactions and neuroscience: Examining physiological reactions (e.g., eye movements) and applying neuroscience techniques (e.g., measuring brain activity) to understand consumer behavior o Neuroscience is the scientific study of the nervous system, which includes the brain, the spinal cord, and the retina. Developments in neuroscience have led to the introduction of new methodologies to collect data on fundamental brain processes involved in consumer behavior. o (Note that in marketing, the term neuro is often applied in a more general sense to all research techniques that involve some kind of psychophysiological measurement, such as eye tracking.) e. As shown in Exhibit A.3 (PPT Slide 37), many different organizations conduct research on consumers, although they differ in their objectives. Some do research for application, some for consumer protection, and some for obtaining general knowledge about consumers.  In-House Marketing Research Departments  External Marketing Research Firms o Table A.2 in the text shows the services and size of various market research agencies.  Advertising Agencies and Media Planning Firms  Syndicated Data Services  Retailers  Research Foundations and Trade Groups o Research foundation: A nonprofit organization that sponsors research on topics relevant to the foundation‘s goals o Trade group: A professional organization made up of marketers in the same industry  Government 14 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

 Consumer Organizations  Academics and Academic Research Centers f. Although marketers rely heavily on consumer research in the development of successful goods and services, the conduct of this research raises important ethical issues.  Positive Aspects of Consumer Research o Better consumer experiences o Potential for building customer relationships  Negative Aspects of Consumer Research o Studying consumer behavior in different countries can be challenging o Potentially higher marketing costs o Invasion of consumer privacy o Deceptive research practices  See Chapter 17 for further discussion of ethical issues. g. Knowledge Check Activity: To make decisions that affect outcomes like buying new products, consumers must first engage in processes related to which of the following?

(PPT Slide 39) 5 minutes total  Answer: b. The psychological core o To make decisions that affect outcomes like buying new products, consumers must have some source of knowledge or information upon which to base their decisions and first engage in processes described in the psychological core.

They need to be motivated, able, and have the opportunity to be exposed to, perceive, and attend to information. They need to think about and comprehend this information, develop attitudes about it, and form memories they can retrieve during the decision process. o The cultural environment then affects what motivates consumers, how they process information, and the kinds of decisions they make. o The processes that are part of the psychological core are intimately tied to the process of making decisions, which begins with problem recognition. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

1. How is consumer behavior defined?  Answer: Consumer behavior refers to the totality of consumers‘ decisions with respect to the acquisition, consumption, and disposition of goods, services, time, places, and ideas by human decision-making units (over time). Note that disposition is often forgotten as an aspect of consumer behavior.

2. What is an offering?  Answer: An offering refers to a product, service, activity, experience, or idea offered by a marketing organization to consumers.

3. What are some of the factors in the psychological core that affect consumer decisions and behavior?  Answer: Factors in the psychological core that affect consumer decisions and behavior include the following: o Motivation, Ability, and Opportunity (MAO) o Exposure, Attention, Perception, and Comprehension o Memory and Knowledge o Attitude Formation and Change 4. What aspects of the consumer‘s culture influence decisions and behavior?  Answer: Aspects of the consumer‘s culture that influence decisions and behavior include the following: o Reference Groups o Diversity Influences o Household and Social Class Influences o Values, Personality, and Lifestyle o Other Social Influences 5. How is marketing defined?  Answer: Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for individuals, groups, and society. It is a social and managerial process through which individuals and groups obtain what they need and want by creating and exchanging products and value with others.

6. How can public policy decision makers, advocacy groups, and marketing managers use consumer research?  Answer: Public policy decision makers, advocacy groups, and marketing managers can use consumer research to understand what consumers and clients value as well as to help develop and understand what appropriate goods and services they deem best for consumers. Policy makers also use research to set law and policy in government (e.g., texting-while16 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

driving legislation may be based on consumer research about safety and phone use while driving). Advocacy groups specifically use research in the same way, but with a focus on using research to advocate a point of view (e.g., Mothers Against Drunk Driving—MADD). Marketing managers can further use consumer research to help consumers by understanding consumer use and desires via research.

7. What kinds of marketing questions can companies use consumer behavior research to answer?  Answer: Marketing questions that companies can use consumer behavior research to answer include the following: o How is the market segmented? o How profitable is each segment? o What are the characteristics of consumers in each segment? o Are customers satisfied with existing offerings? o What ideas do consumers have for new products? o What attributes can be added to or changed in an existing offering? o What should our offerings be called? o What should our package and logo look like? o How are competitive offerings positioned? o How should our offerings be positioned or repositioned? o What are out communication objectives? o What should our marketing communications look like? o Where should our advertising be placed? o When should we advertise? o Has our advertising been effective? o What should our sales promotion objectives and tactics look like? o Have our sales promotions been effective? o How can our salespeople best serve our customers? o What price should be charged? o How sensitive are consumers to price and price changes? o When should certain price tactics be used? o Where and when are target customers likely to shop? o What do customers want to see in stores? o How should stores be designed?

8. How can you benefit from studying consumer behavior?  Answer: Consumer behavior studies can help all consumers in the marketplace to better understand the market and its role in business practices. With this background, you will be able to understand how consumer research helps marketers

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

develop more effective strategies and tactics for reaching and satisfying customers. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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: The Efficacy of Boycotts (LO 1-2) Duration 20–25 minutes. 

Concerned consumers sometimes form advocacy groups to create public awareness of inappropriate practices. They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts. Do you think boycotts are effective? o

o

Answer: Students‘ opinions will vary. Boycotts can oftentimes trigger a buycott, where the opposing side urges followers to actively buy a product in response to a boycott.

Have students read How Much Do Boycotts Affect a Company’s Bottom Line? (which offers a research-based perspective) and then ask if they still think boycotts do/do not work.

2. Discussion: “Store” Design in a Digital World (LO 1-4) Duration 5–10 minutes. 

How important is store design in an increasingly digital world? o

o

Answer: Store design doesn‘t just apply to brick-andmortar retail shops. Given the significant increase in shopping via computer and mobile devices (see Exhibit 1.8), retailers must design websites for friendly functionality on devices used by targeted consumer groups.

Smartphones have become the most popular devices for online shopping. Worldwide, 6.4 billion consumers own a smartphone, and 69.4 percent of Internet users use shopping apps on their smartphones. About four out of five (81 percent) consumers said they have bought gifts on their mobile devices, while almost half (45 18

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

o

percent) of consumers use their smartphone to shop all the time.

In addition, retail websites must not only function well, but they also need to convey a particular image and shopping atmosphere.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

1. Internet Activity: Consumer-Generated Content (LO 1-1–1-4) Duration 60–90 minutes. (Assignment concept courtesy of Lars Perner, Ph.D., University of Southern California) 



Have students analyze consumer generated online content— e.g., blog entries, pictures, and videos—for a product category or brand of their choice. The material analyzed should be generated by consumers only and not include agency-generated advertising. However, although the purpose here is not to find official advertisements or other marketer-generated materials, students may wish to use existing ads to demonstrate how consumer-generated material differs from firm-generated advertisements.

Students should prepare a brief report in whatever format the instructor prefers to assign (written summary, in-class presentation, LMS discussion, etc.). Student summaries should include the following: o Discuss the possible motives of the consumers generating the material in question (e.g., genuine desire to help others, wanting to look good, desire to promote a favorite brand, desire to present an alternative brand to the market leader, ―blowing off steam,‖ show off creative talents more than dealing with substance per se, desire to entertain). o Determine the extent to which different people who create material on similar topics/brands either compete with each other or promote other people‘s material. o Summarize any themes or issues encountered. (Note that photos and videos may be ―staged‖ or sensationalized to some extent. Nevertheless, do these at least suggest certain underlying consumer motivations, emotions, and/or perceptions?)

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Instructor Manual: Chapter 1: Understanding Consumer Behavior

o

Identify any implications for the marketing of the product or the brand in question.

[return to top]

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

TABLE OF CONTENTS Purpose and Perspective of the Chapter .............................. 22 List of Student Downloads ........................................... 22 Chapter Objectives .................................................. 22 Complete List of Chapter Activities and Assessments ................. 23 Key Terms ........................................................... 23 What's New in This Chapter .......................................... 25 Chapter Outline ..................................................... 25 End-Of-Chapter Questions for Review and Discussion .................. 35 Additional Discussion Questions ..................................... 39 Additional Activities and Assignments ............................... 40

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to introduce factors that can influence consumers to behave in ways that result in market exchanges. The role of the instructor in this chapter is to help the students understand these concepts, as well as to help place them in a marketing context that the students can understand.

Consumer motivation, ability, and opportunity jointly influence a consumer‘s acquisition, usage, and disposition decisions. Motivation reflects an inner state of activation that moves the consumer to engage in goal-relevant behaviors, effortful information processing, and detailed decision making. Motivated consumers often experience affective or cognitive involvement. In some cases, this involvement may be enduring; in other cases, it may be situational, lasting only until the goal has been achieved. Consumers experience greater motivation when they regard a goal or object as personally relevant, or when it relates to their self-concept, values, needs, emotions, goals, and/or calls for self-control; when it entails perceived risk; or when it is moderately inconsistent with their prior attitudes.

Even when motivation is high, consumers may not achieve their goals if their ability or opportunity to do so is low. Similarly, if consumers lack the financial, cognitive, emotional, physical, or social and cultural resources, they may not have the ability to make a decision.

Age and education also affect ability. Highly motivated consumers may also fail to achieve goals if lack of time, distractions, complex or large amounts of information, or lack of control over information flow limit the opportunity to make decisions.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 2-1

Discuss how consumer motivation affects high-effort information processing, high-effort behavior, and high-effort decisionmaking.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

2-2

List the four types of influences that determine the consumer‘s motivation to process information, make a decision, or take an action.

2-3

Explain factors that affect the individual‘s ability to engage in consumer behaviors.

2-4

Identify the three main types of influences on the consumer‘s opportunity to process information and acquire, consume, or dispose of products.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 2-1 2-2 2-3 2-1 – 2-4 2-1 – 2-4

Activity/Assessment

Discussion Activity Group Activity Polling Activity Knowledge Check Activity Learn It: Concept Check Quiz: Chapter 02 Motivation, Ability, and Opportunity 2-1 – 2-4 Apply It: Assignment: Chapter 02 Motivation, Ability, and Opportunity 2-1 – 2-4 Apply It: Case Activity: Chapter 02 Motivation, Ability, and Opportunity

Source (i.e., PPT slide, Workbook) PowerPoint Slide 9 PowerPoint Slide 25 PowerPoint Slide 29 PowerPoint Slide 33 MindTap Learning Path Chapter 2 Folder

Duration

MindTap Learning Path Chapter 2 Folder MindTap Learning Path Chapter 2 Folder

35–45 mins.

5–10 mins.

20-30 mins.

5 mins.

5 mins.

35–45 mins.

35–45 mins.

[return to top]

KEY TERMS Ability: The extent to which consumers have the required resources to make an outcome happen.

Affective involvement: Interest in expending emotional energy and evoking deep feelings about an offering, an activity, or a decision.

Appraisal theory: A theory of emotion that proposes that emotions are based on an individual‘s assessment of a situation or an outcome and its relevance to their goals.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

Approach-approach conflict: An inner struggle about which offering to acquire when each can satisfy an important but different need.

Approach-avoidance conflict: An inner struggle about acquiring or consuming an offering that fulfills one need but fails to fulfill another.

Avoidance-avoidance conflict: An inner struggle about which offering to acquire when neither can satisfy an important but different need.

Cognitive involvement: Interest in thinking about and learning information pertinent to an offering, an activity, or decisions.

Ego depletion: Outcome of decision-making effort that results in mental resources being exhausted.

Enduring involvement: Long-term interest in an offering, activity, or decision.

Functional need: Need that motivates the search for offerings that solve consumption-related problems.

Goal: Outcome that we would like to achieve.

Hedonic need: Need that relates to sensory pleasure.

Motivated reasoning: Processing information in a way that allows consumers to reach the conclusion that they want to reach.

Motivation: An inner state of activation that provides energy needed to achieve a goal.

Need: An internal state of tension experienced when there is a discrepancy between the current and an ideal or desired physical or psychological state.

Perceived risk: The extent to which the consumer anticipates negative consequences of an action, for example, buying, using, or disposing of an offering, to emerge and positive consequences to not emerge.

Personal relevance: Something that has a direct bearing on the self and has potentially significant consequences or implications for our lives.

Response involvement: Interest in certain decisions and behaviors.

Self-concept: Our mental view of who we are.

Self-control: Process consumers use to regulate feelings, thoughts, and behavior in line with long-term goals, rather than to pursue short-term goals.

Situational (temporary) involvement: Temporary interest in an offering, activity, or decision, often caused by situational circumstances.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

Symbolic need: Need that relates to the meaning of our consumption behaviors to ourselves and to others. That is, how we perceive ourselves, how we are perceived by others, how we relate to others, and the esteem in which we are held by others.

Values: Abstract, enduring beliefs about what is right/wrong, important, or good/bad. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:      

Updated learning objectives New opening vignette Numerous new examples Numerous academic studies added Updated exhibit on and discussion of types of needs New discussion of emotion regulation

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

VI.

Consumer Motivation and Its Effects (LO 2-1, PPT Slides 4–9) a. Consumer motivation, ability, and opportunity jointly influence a consumer‘s acquisition, usage, and disposition decisions (Exhibit 2.1 on PPT Slide 5).  Motivation, ability, and opportunity (MAO) to engage in various consumer behaviors are affected by many factors.  Outcomes of high MAO include (1) goal-relevant behavior, (2) high-effort information processing and decision-making, and (3) involvement. b. Motivation: An inner state of activation that provides energy needed to achieve a goal  Comes from the Latin word ―movere,‖ which means ―to move

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

Enhances the effort that people exert to achieve a goal  Affects how much effort we exert to process information, make decisions, or engage in an activity o Motivated consumers are energized, ready, and willing to engage in effortful information processing, decision-making, and behaviors.  Motivated reasoning: Processing information in a way that allows consumers to reach the conclusion that they want to reach c. A final outcome of motivation is that it evokes a psychological state called involvement. Involvement can be characterized as (1) enduring, (2) situational, (3) cognitive, or (4) affective.  Enduring involvement: Long-term interest in an offering, activity, or decision  Situational (temporary) involvement: Temporary interest in an offering, activity, or decision, often caused by situational circumstances  Cognitive involvement: Interest in thinking about and learning information pertinent to an offering, an activity, or decisions  Affective involvement: Interest in expending emotional energy and evoking deep feelings about an offering, an activity, or a decision d. Consumers may be involved with a variety of objects.  Objects may include products, brands, ads, media, stores, people (like celebrities), pets, organizations (like sports teams), places (like Disneyland), and experiences (like concerts).  Response involvement: Interest in certain decisions and behaviors  Because consumers can be involved with many different things, it is important to specify the object of involvement.  Consumers will experience considerable involvement when buying, using, or disposing of objects that are personally relevant to them. e. Discussion Activity: Pose the question to the class. (PPT Slide 9) 5–10 minutes total  How might consumer motivation influence brand loyalty in today's rapidly evolving marketplace? o Students‘ responses may vary. This activity is meant to get students thinking about what determines motivation.

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o

o

VII.

As the next section of the text reveals, motivation is affected when consumers regard something as (1) personally relevant; (2) consistent with their self-concept, values, needs, goals, emotions, and self-control processes; (3) risky; or (4) moderately inconsistent with their prior attitudes.

When brands are relevant to their self-concepts, consumers can become emotionally connected to the brand and view the brand as an extension of themselves. Brand attachment leads to high customer loyalty and strong motivation to lavish time, money, and energy on that brand. Intense affective involvement with a brand may create an almost human-like experience of brand love. When consumers are motivated by factors such as a strong emotional connection with a brand, they are more likely to become loyal customers. Brand loyalty leads to repeat purchases, positive wordof-mouth recommendations, and resistance to competitors' marketing efforts.

What Determines Motivation? (LO 2-2, PPT Slides 10–25) a. Marketers need to understand what influences consumers‘ motivation so that they can develop marketing tactics that influence it.  Personal Relevance: Something that has a direct bearing on the self and has potentially significant consequences or implications for our lives  Consistency with Self-Concept: Our mental view of who we are  Values: Abstract, enduring beliefs about what is right/wrong, important, or good/bad  Needs: An internal state of tension experienced when there is a discrepancy between the current and an ideal or desired physical or psychological state  Goals: Outcomes that we would like to achieve b. Needs can be categorized according to whether they are functional, symbolic, or hedonic in nature (Exhibit 2.3 on PPT Slide 12). This categorization method helps marketers think about consumers‘ needs.  Functional need: Need that motivates the search for offerings that solve consumption-related problems  Symbolic need: Need that relates to the meaning of our consumption behaviors to ourselves and to others

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o

That is, how we perceive ourselves, how we are perceived by others, how we relate to others, and the esteem in which we are held by others  Hedonic need: Need that relates to sensory pleasure c. The previously discussed needs share several characteristics:  Needs can be internally or externally activated.  Need satisfaction is dynamic. o Daily life is a constant process of need fulfillment.  Needs exist in a hierarchy.  Needs can conflict. o Need conflicts are an internal struggle that occur when a consumer is faced with an either/or choice. o Approach-avoidance conflict: An inner struggle about acquiring or consuming an offering that fulfills one need but fails to fulfill another o Approach-approach conflict: An inner struggle about which offering to acquire when each can satisfy an important but different need o Avoidance-avoidance conflict: An inner struggle about which offering to acquire when neither can satisfy an important but different need d. Because needs influence motivation and its effects, marketers are keenly interested in identifying and measuring them.  Direct techniques: Ask people to openly report on their needs  Indirect techniques: Ask for something else and then researcher tries to infer their needs o Marketers sometimes uncover consumers‘ needs using indirect techniques, such as asking consumers to describe ambiguous stimuli like cartoon drawings, sentence completion tasks, and tell-a-story tasks. o The idea is that consumers will project their needs, wishes, and fantasies onto these ambiguous stimuli, providing more accurate and detailed insight into consumers‘ needs than when asking them directly to report their needs. e. Goals are more specific and concrete than needs.  Goals differ in whether they are promotion-focused or prevention-focused. o Promotion-focused—Consumers are motivated to act in ways to achieve positive outcomes 28 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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o



Prevention-focused—Consumers are motivated to act in ways that avoid negative outcomes o Consumers frequently have goals about how they do or don‘t want to feel. o Marketers can sometimes frame marketing communications such that they use promotionfocused or prevention-focused language. o People‘s responses to promotion- versus prevention-focused messages also depend on what information is accessible or salient in their minds at the time.

The process of setting and pursuing goals is circular: How a person feels about achieving or not achieving a goal affects what new goals are being set and why. This process affects the individual‘s motivation to initiate or continue behaviors relevant to the goal that has been set, and so forth (Exhibit 2.8 on PPT Slide 16). o Forming the intention to implement a plan for goal achievement can be helpful when pursuing goals.

– Consumers are more likely to actually achieve a goal when they have a fixed rather than a flexible plan for goal pursuit.

– Consumers who have a plan may feel demotivated if they believe they are far from attaining their goal.

– Consumers feel motivated to plan and implement a goal when a recent action toward goal attainment was successful.

– Consumers also pursue goals that are seen as urgent, even when they are less important than other goals.

– Consumers anticipate greater difficulty in goal planning and implementation when they have multiple goals. o During action initiation and control, consumers are interested in different things depending on whether they are far from or close to the goal.

– Consumers are also more likely to continue working toward a goal if they set a target range rather than a single, very specific goal.

– Motivation is increased when consumers feel that they are making progress toward a goal by having their attention directed to whichever is better: what they have 29

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

accomplished so far or what they have remaining to accomplish to attain the goal.

– Our environment can influence goal progress.

– Consumers often have a lot of information about others who are pursuing a similar goal. o Consumers use what they learn from achieving or not achieving a goal as feedback information for future goal setting and pursuit. o The more easily consumers can visualize their goals, the more motivated and committed they are to exert effort to attain them. o Some research also shows that the amount of effort people exert to achieving a goal depends not only on how important the goal is to them but also on how well they are doing in achieving other, potentially unrelated, goals. f. Appraisal theory: A theory of emotion that proposes that emotions are based on an individual‘s assessment of a situation or an outcome and its relevance to their goals (Exhibit 2.9 on PPT Slide 17)  Emotions are experienced based on how consumers appraise a situation or outcome in the light of their goals, needs, and self-concept.  Appraisal theory also posits other appraisal dimensions that affect how we feel—dimensions like normative/moral compatibility (is the outcome relevant to what is expected of us or what we should do?), certainty (is the outcome certain to occur or not?), and agency (was I the cause of the outcome, did someone else or the environment cause it, or did it happen by chance?).  Emotions can have wide-ranging long- and short-term consequences for consumer behavior, and these effects are specific to the emotion that is being experienced. Emotions can also influence consumer choices.  Because emotions play a powerful role in attitudes, choices, and satisfaction, later chapters will return to the role of appraisals in consumers‘ emotions. g. Self-control: Process consumers use to regulate feelings, thoughts, and behavior in line with long-term goals, rather than to pursue short-term goals  Self-control conflicts arise when we face decisions about actions related to goals that are in conflict.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity



Ego depletion: Outcome of decision-making effort that results in mental resources being exhausted o Challenges deplete a consumer‘s mental energy, which in turn reduces decision quality.  Consumers do things to regulate their emotions or moods. Exhibit 2.10 (PPT Slide 19) shows several emotion regulation strategies. h. Understanding consumers‘ self-concept, needs, goals, selfcontrol, and emotion regulation processes is important to marketing strategies and tactics.  Enhancing Motivation to Process Communications o Make the information as personally relevant as possible and appealing to consumers‘ selfconcepts, values, needs, or goals. o Tailor sales pitches to consumers‘ underlying reasons for making a purchase.  Product Development and Positioning o Develop goods or services with features and benefits that help consumers achieve their goals. o Target consumers with promotion-focused goals. o Improve offerings to help consumers resolve approach-avoidance conflicts. i. Perceived risk: The extent to which the consumer anticipates negative consequences of an action, for example, buying, using, or disposing of an offering, to emerge and positive consequences to not emerge  There are two components to perceived risk: o The likelihood that outcomes will happen (uncertainty component) o The negativity of the outcomes and how severe these are (consequences component)  Perceived risk tends to be higher in certain situations: o When the offering is new o When the offering has a high price o When the offering is technologically complex o When brands differ fairly substantially in quality and might cause the consumer to make an inferior choice o When the consumer has little confidence or experience in evaluating the offering o When the opinions of others are important, and the consumer is likely to be judged on the basis of the acquisition, usage, or disposition decision o When little information is available about the offering 31 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity



It is useful to distinguish six types of risk that consumers can perceive: o Performance risk o Financial risk o Physical (or safety) risk o Social risk o Psychological risk o Time risk  A final factor affecting motivation is the extent to which new information is consistent with previously acquired knowledge or attitudes.  Perceived risk is a key determinant personal relevance and involvement (and hence motivation).  Marketing implications include the following: o When risk is low, consumers are less motivated to think carefully about the brand or product and its potential consequences, and they might buy it without much thought. o When perceived risk is high, marketers can either reduce uncertainty or reduce the perceived negative consequences of a purchase decision. o Marketers sometimes need to enhance risk perceptions to make their messages more compelling. j. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 25) 20–30 minutes total  Appraisal theory dimensions: o Consistency: An outcome‘s consistency with our goals o Normative/Moral Compatibility: An outcome‘s relevancy to what is expected or what we should do o Certainty: An outcome‘s certainty o Agency: An outcome‘s cause (you, someone else, the environment, happened by chance) 1. Identify a recent purchase you made that elicited a strong emotional response.

2. Analyze the event using the appraisal theory dimensions illustrated by Exhibit 2.9.

3. Reflect on how these dimensions influenced your emotional experience.

4. Share your insights and personal reflections with your small group. o Invite volunteers to share their insights and personal reflections with the entire group.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

o

VIII.

Encourage participants to consider how different individuals might appraise the situation differently based on their personal experiences, beliefs, and cultural backgrounds.

Consumer Ability: Resources to Act (LO 2-3, PPT Slides 26–29) a. Ability : The extent to which consumers have the required resources to make an outcome happen  Financial resources o Often managed by a financial planner o Lack of money constrains consumers who might otherwise have the motivation to engage in monetary exchanges with marketers o Financial literacy—An expertise about financial matters, with major implications for consumer behavior  Cognitive resources o Based on experience and knowledge o Cognitive depletion can lead to inability to enjoy a product o Cognitive style—Individual preferences for ways information should be presented  Emotional resources o The consumers‘ ability to experience empathy and sympathy o Affect the actions consumers take to participate in charitable events or donate to causes  Physical resources o Body power can impact how, when and where consumers make decisions o Influence consumers‘ ability to use certain goods or services  Social and cultural resources o Who consumers know o Cultural knowledge  Education and age have also been related to the ability to process information and make decisions. We return to the concepts of education and age in Chapters 12 and 13. b. Marketing implications:  Marketers should be sure that targeted consumers have sufficient prior knowledge to process marketing communications.  Marketers need to be sensitive to the potentially different processing styles, education levels, and ages of each segment.

33

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity



Marketers can facilitate first-time and repeat buying by providing monetary aid.  Marketers can provide education and information (through advertising, websites, mobile marketing, social media, point-of-purchase displays, and other communications) that help consumers better process information, make more informed decisions, and engage in consumption behaviors. c. Polling Activity: Conduct a poll with the class. (PPT Slide 29) 5 minutes total  Which resource type would you say most often directly impacts your own ability to engage in consumer behavior? o Students‘ responses will vary. o Motivation may not result in action unless a consumer has the ability to process information, make decisions, or engage in behaviors. Ability is defined as the extent to which consumers have the necessary resources to make the outcome happen. If our ability to process information is high, we may engage in active decision-making. o As shown in Exhibit 2.1, (1) financial resources, (2) cognitive resources, (3) emotional resources, (4) physical resources, and (5) social and cultural resources can affect consumers‘ abilities to process information about brands and make decisions about and engage in buying, usage, and disposition.

IX.

Consumer Opportunity (LO 2-4, PPT Slides 30–33) a. The final factor affecting whether motivation results in action is consumers‘ opportunity to engage in a behavior.  Unavailability of the desired choice option is an important reason why motivated and able consumers cannot do what they set out to do.  Independent of this, someone may not take an action or make decisions because of three key influences: o Lack of time o Distraction o The complexity, amount, repetition, and control of information (information load) b. Marketers can play a role in enhancing opportunity:  Repeat marketing communications to increase the likelihood that consumers will notice and eventually process them. o However, while repetition increases the opportunity to process information in ads, it can 34

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

also reduce consumers‘ motivation to process the information once the ad wears out.  Reduce time pressure to lessen distractions.  Reduce the time needed to buy, use, and learn about a product or service to allow consumers more opportunities to process information and act on their decisions. o Intelligent search engines enable consumers to rapidly find what they seek online.  Offer information when and where consumers choose to access it to open more opportunities for processing and acting on information. o Mobile marketing allows consumers to access product information, receive special orders, and place orders via smartphone from anywhere at any time. c. Knowledge Check Activity: Categorize each need as Functional, Symbolic, or Hedonic. (PPT Slide 33) 5 minutes total a. Affiliation—Symbolic b. Autonomy—Functional c. Cognitive Stimulation—Hedonic d. Competence—Functional e. Energy—Functional f. Esteem—Symbolic g. Impact—Symbolic h. Novelty—Hedonic i. Play—Hedonic j. Purpose—Symbolic k. Relaxation—Hedonic l. Rest—Functional. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

9. What are the three major sources of effort consumers invest in making acquisition, usage, and disposition decisions?  Answer: Motivation, ability, opportunity 10. 

How is motivation defined?

Answer: Motivation is an inner state of activation that provides energy needed to achieve a goal. Coming from the Latin word movere (which means ―to move‖), motivation is what moves people. A motivated consumer is energized, 35

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

ready, and willing to engage in effortful information processing, decision-making, and behaviors.

11. 

What are some objects of involvement for consumers?

Answer: Consumers may be involved with a variety of objects. These objects may include the following: o Products o Brands o Ads o Media o Stores o People o Pets o Organizations o Places o Experiences

12.

Why are personal relevance, self-concept, and values important for motivation?  Answer: Because of involvement, motivation is affected when consumers regard something as: o Personally relevant (consistent with their selfconcept, values, needs, goals, and self-control processes); o Perceived to be risky; and/or o Moderately inconsistent with their attitudes.

13.

What are some examples of functional, hedonic, and symbolic needs?

Answer:  Functional needs include the following: o Safety o Control o Security o Autonomy o Order o Competence o Rest o Health o Food o Energy  Hedonic (experiential) needs include the following: o Esteem o Belonging o Achievement o Purpose o Status o Morality o Uniqueness o Impact o Affiliation  Symbolic needs include the following: o Sensory o Novelty stimulation o Play o Variety o Cognitive stimulation o Relaxation 36 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 2: Motivation, Ability, and Opportunity

14. 





What types of goals do consumers have?

Answer: Goals are more specific and concrete than needs are. A goal is a particular end state or outcome that a person would like to achieve. Consumer may be concrete or abstract and are categorized as promotion-focused or prevention-focused.

Promotion-focused goals motivate consumers to act in ways to achieve positive outcomes, such as buying an electric bicycle because it will be fun to ride.

Prevention-focused goals motivate consumers to act in ways that avoid negative outcomes, such as not buying the same bicycle because any future repairs will be costly.

15.

According to appraisal theory, what do emotions have to do with goals?  Answer: Appraisal theory proposes that emotions are based on a person‘s assessment of a situation or an outcome and its relevance to their goals. For example, a consumer might feel proud when they experience a good outcome, they are responsible for that outcome, and the outcome is consistent with a desirable goal. In contrast, they might feel guilty when the outcome is bad, they are responsible for it, and it‘s inconsistent with their goals.

16.

What is self-control and how does it relate to conflicting goals?  Answer: Self-control is the process that consumers use to regulate feelings, thoughts, and behavior in line with long-term goals. Sometimes consumers face decisions about actions related to goals that are in conflict. For instance, you may have a goal to eat healthy foods, but also wish to join friends for a tasty dessert treat. In this case, self-control is needed to go out for ice-cream with friends but decide to order a small portion.

17.

Why do conflicting goals pose a challenge to information processing and emotion regulation?  Answer: When goals conflict, the mental effort involved in making a decision may result in ego depletion. When such challenges deplete a consumer‘s mental energy, the ability to process information is impaired, which reduces decision quality. Because our emotions are determined by how we appraise a situation or an outcome, conflicting goals can lead to conflicting or negative emotions.

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18.

What are six types of perceived risk, and how does perceived risk affect personal relevance?  Answer: Perceived risk is the extent to which the consumer anticipates negative consequences of an action. It impacts personal relevance because greater risks are perceived when the risk is real and relevant to the individual. Consumers are inherently motivated to engage in behaviors that reduce risk. Six types of risk include performance risk, financial risk, physical risk, social risk, psychological risk, and time risk.

19.

What five types of resources affect ability to process information and make decisions?  Answer: Financial resources (money); cognitive resources (knowledge); emotional resources (desire); physical resources (body power); and social and cultural resources (social relationships and cultural institutions) each impact a consumer‘s ability to process information and make decisions.

20.

Identify some of the elements that contribute to consumer opportunity for processing information and making decisions, and suggest how marketers can make use of these for marketing purposes.  Answer: The final factor affecting whether motivation results in action is consumers‘ opportunity to engage in a behavior. The three key influences on consumer opportunity are time, distraction, and information load.  In terms of time, marketers can develop products aimed at saving consumers‘ time. They can also ensure that consumers don‘t need a lot of time to process information about items frequently purchased under time constraints (such as those selected while grocery shopping).  From a distraction perspective, marketers should focus on capturing consumers‘ attention when they are least likely to be distracted by other things.  Consumers live in an information-rich environment, where the complexity, amount, repetition, and control of information impact one‘s opportunity for processing information and making decisions. Marketers can use visualization tools to communicate complex information and facilitate processing. They can also enhance consumers‘ ability to process information through repetition. Lastly, because consumers remember and learn more when they can control the flow of information, marketers can concentrate on placement (such as print and online ads) and readily available videos or downloadable articles, all of which 38 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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hand control to the consumer in terms of processing the information. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

3. Discussion: The Influence of MAO (LO 2-1) Duration 5 minutes. 

Discuss the three factors that determine the amount of effort and involvement consumers put into searching for information, making choices, and judging whether an experience is satisfactory. o

Answer: The three factors are motivation, ability, and opportunity. Motivation, the inner state of arousal directed at achieving a goal, is influenced by (a) the personal relevance of the goal, (b) the goal‘s consistency with the consumer‘s values, goals, and needs, (c) the risk the consumer associates with buying the product or service, and (4) the new information‘s level of consistency with the consumer‘s prior information and attitudes. Motivation increases when (a) the goal is more relevant and consistent with the consumer‘s values, goals, and needs, (b) the risk level is higher and therefore requires more involvement, and (c) the new information is somewhat inconsistent with the consumer‘s prior information and attitudes.

4. Discussion: Consumer Involvement (LO 2-1) Duration 20 minutes. 

As a class, brainstorm three products, services, or situations in which consumer involvement would be high, and three in which it would be low. Ask the students how the decision processes related to each of these examples would proceed for a consumer. Have them identify how high- and low-involvement decision-making processes differ. o

Answer: High-involvement examples may include real estate, higher education selection, wedding and event planning, financial investments, health care services, and home renovation or remodeling.

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o

Low-involvement examples may include grocery items, office supplies, daily consumables, and basic cleaning products.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

2. At-Home Activity: MAO and Advertising (LO 2-1 – 2-4) Duration 45– 60 minutes. 

Have students watch TV (or a movie or YouTube video) for 30 minutes through a service that includes advertising. At the end of their viewing, they should write down the ads they can remember. Using the concepts of motivation, ability, and opportunity ask them to then describe why they processed and remembered these commercials. What was it about the ad, their prior knowledge or use of these products, or the environment in which they viewed the ads that made them memorable? o

This exercise is designed to cement the concepts of MAO (motivation, ability, and opportunity) in the student‘s mind. Pay careful attention to the notion of ‗time.‘ Students commonly categorize ‗time‘ as a factor of ability instead of opportunity. It is easy for a student to think that if they had more time, they would have a better ability to reach an optimal situation, when in fact ‗time‘ should be classified as a factor of opportunity.

3. Internet Activity: Perceived Risk of Online Purchases (LO 2-2) Duration 30 minutes. 

Have students visit an e-tailer (retail website) of their choice and carefully examine the description and information provided about one of the featured products.

They should read the site’s descriptions of shipping and payment options, privacy policies, etc. Have them answer the following questions in a written summary: What perceived risks are being addressed by the information on this site?

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

How does the retailer either reduce risk perceptions or enhance risk perceptions with respect to the featured product or the shipping and payment options? o

Using BarnesandNoble.com as an example, the website allows consumers to order and pay for products online and if they choose, to pick them up at the nearest Barnes & Noble location. Perceived risk is greatly reduced by the fact that they can exchange or return an item that was purchased online in any physical store location. If a consumer goes into a Barnes & Noble and that store does not have a particular book available, the customer can order it to be sent to the store postage-free for pickup. They also have clearly communicated privacy policies that explain that the company collects only personal information such as contact information, billing/shipping information or personal preferences. Another advantage for Barnes & Noble online shoppers is that the brand is established and has a good reputation.

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Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

TABLE OF CONTENTS Purpose and Perspective of the Chapter .............................. 42 List of Student Downloads ........................................... 43 Chapter Objectives .................................................. 43 Complete List of Chapter Activities and Assessments ................. 44 Key Terms ........................................................... 44 What's New in This Chapter .......................................... 45 Chapter Outline ..................................................... 46 End-Of-Chapter Questions for Review and Discussion .................. 55 Additional Discussion Questions ..................................... 57 Additional Activities and Assignments ............................... 59

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the topics of exposure, attention, and perception as precursors to message comprehension. In order for a marketing stimulus to have an impact, consumers must be exposed to it, allocate some attention to it, and perceive it.

Perception and attention are mutually reinforcing processes. A basic level of attention is needed to perceive a stimulus. Once perceived, further attention-based resources can be used to process stimuli at higher levels of processing.

Exposure occurs when the consumer is presented with a marketing stimulus. Marketers are now attempting a wide variety of tactics to increase stimulus exposure, particularly since consumers‘ exposure to marketing stimuli is selective. These efforts are important as consumers now engage in behaviors that interfere with exposure like zipping (fast forwarding through a recorded program), zapping (switching channels during commercials), and skipping (leaving the room during commercial breaks).

Attention occurs when the stimulus makes a conscious impression on the consumer or the consumer allocates processing capacity to it. The key aspect of attention is that it is selective, divided, and limited.

Because it is limited, consumers may be distracted by other stimuli.

Moreover, even though it is limited, consumers have some capacity to process information at a preattentive level (provided these stimuli are compatible with the principle of contralateral conduction). Given that the marketing environment is so cluttered, it is important for marketers to capture consumers‘ attention. Making a stimulus (a) personally relevant, (b) pleasant, (c) surprising, and/or (d) easy to process enhances its attention-getting properties. Alternatively, the problem of habituation suggests that familiar stimuli can lose their attention-getting power.

Sensory memory is the ability to temporarily store input from all our five senses as we perceive it. Perceptual information is retained only briefly in sensory memory, generally from a quarter of a second to several seconds at most. If the information in sensory memory is relevant, consumers are motivated to process it further and keep it active. If exposure and attention are sufficient, the stimulus may reach one or more sensory registers and be perceived through one of the five senses. Processing of stimuli depends on the sense being used. Visual stimuli are influenced by the important factors of: (a) size; (b) color (including hue, saturation, and lightness); and (c) brightness and contrast. Hearing is influenced by intensity and music.

Taste perceptions are also critical for certain products, yet because tastes may vary across cultures, marketers use taste tests to improve marketing strategy. In addition, the chapter considers how smell and touch may influence the marketing strategy for certain products.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

The chapter then discusses the concept of sensory thresholds. The absolute threshold is the lowest point at which an individual can experience a sensation, while the differential threshold is the minimal difference that can be detected between two stimuli (the just noticeable difference). For a marketing stimulus to be perceived, it must be above the absolute threshold. The differential threshold is important when marketers do not want consumers to either notice a difference between two stimuli (e.g., a price increase) or want consumers to notice the difference (e.g., product improvements).

Comprehension is the process of extracting higher-order meaning from what consumers have perceived in the context of what they know. This starts with source identification (―what is it actually?‖) and continues with message comprehension (―what about it?‖), including objective comprehension (accurately understanding what is stated) and subjective comprehension (what consumers understand from the message).

Comprehension and inferences occur in what‘s called working memory.

Finally, consumers may make correct or incorrect inferences from various elements of the marketing mix during the comprehension process.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 3-1

Describe how marketers can enhance consumers‘ exposure to their brands.

3-2

Describe how marketers can try to attract and sustain consumers‘ attention.

3-3

Describe the major senses that are part of perception.

3-4

Outline how marketing-mix elements can affect consumers‘ interferences about products and brands.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 3-1 3-2 3-3 3-4 3-1 – 3-4

Activity/Assessment

Polling Activity Discussion Activity Knowledge Check Activity Group Activity Learn It: Concept Check Quiz: Chapter 03 Exposure, Attention, Perception, and Comprehension 3-1 – 3-4 Apply It: Assignment: Chapter 03 Exposure, Attention, Perception, and Comprehension 3-1 – 3-4 Apply It: Case Activity: Chapter 03 Exposure, Attention, Perception, and Comprehension

Source (i.e., PPT slide, Workbook) PowerPoint Slide 10 PowerPoint Slide 18 PowerPoint Slide 29 PowerPoint Slide 36 MindTap Learning Path Chapter 3 Folder

Duration

MindTap Learning Path Chapter 3 Folder

35–45 mins.

MindTap Learning Path Chapter 3 Folder

35–45 mins.

5 mins.

5 mins.

5 mins.

45 mins.

35–45 mins.

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KEY TERMS Absolute threshold: The minimal level of stimulus intensity needed to detect a stimulus.

Attention: The amount of mental activity a consumer devotes to a stimulus.

Comprehension: The process of extracting higher-order meaning from what we have perceived in the context of what we already know.

Concreteness: The extent to which a stimulus is capable of being imagined.

Differential threshold/just noticeable difference (jnd): The intensity difference needed between two stimuli before they are perceived to be different.

Exposure: The process by which the consumer comes in physical contact with a stimulus.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

Habituation: The process by which a stimulus loses its attentiongetting abilities by virtue of its familiarity.

Marketing stimuli: Information about commercial offerings communicated either by the marketer (such as in ads) or by nonmarketing sources (such as via word of mouth).

Objective comprehension: The extent to which consumers accurately understand the message a sender intended to communicate.

Perception: The process of taking in (or encoding) a stimulus using vision, hearing, taste, smell, and touch.

Perceptual fluency: The ease with which information is processed.

Prominence: The intensity of stimuli that causes them to stand out relative to the environment.

Sensory memory: Input from one or more of the five senses stored temporarily in memory.

Source identification: The process of determining what the perceived stimulus actually is, that is, what category it belongs to.

Subjective comprehension: What the consumer understands from the message, regardless of whether this understanding is accurate.

Weber’s law: The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

Working memory (WM): The portion of memory where incoming information is comprehended in the context of existing knowledge and kept available for more processing. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:       

Updated chapter title—Exposure, Attention, Perception, and Comprehension Updated learning objectives New opening vignette Numerous new examples Numerous new exhibits Numerous academic studies added New discussion of the consumer journey

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension



Discussion of sensory memory and working memory moved from Chapter 4 to Chapter 3

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

X.

Exposure and Consumer Behavior (LO 3-1, PPT Slides 3–10) a. Before you can pay attention to a marketing stimulus, you must be exposed to it.  By allocating attention to a stimulus, you can perceive it and, finally, comprehend what it is, based on knowledge stored in long-term memory.  Exhibit 3.1 (PPT Slide 4) summarizes this process. b. Before an ad, a tweet, a product sample, or a store display can affect consumers, they must be exposed to it.  Exposure: The process by which the consumer comes in physical contact with a stimulus  Marketing stimuli: Information about commercial offerings communicated either by the marketer (such as in ads) or by nonmarketing sources (such as via word of mouth)  The best products and services fail to be successful if consumers are not aware of them, and exposure is a precondition to this.  Marketers want consumers to be exposed to stimuli that portray their offerings in a favorable light or at a time when consumers may be interested in such products.  Marketers use a variety of marketing stimuli (ads, salespeople, packages, social media, e-mails, promotional products, gift cards, mobile messages, billboards, brochures, brand websites, podcasts, webinars) to expose consumers to their brand.  To some extent, consumers can select what they will be exposed to and avoid other stimuli. c. Various factors can influence the likelihood that consumers will be exposed to the marketer‘s brand.  Position of an ad within a medium  Product placement  Product distribution and shelf placement 46

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

d. Ultimately consumers control their exposure to marketing stimuli, known as selective exposure—consumers actively seek out certain stimuli and avoid or resist others.  Skipping: Avoiding exposure by leaving the room during commercials  Zipping: Fast-forwarding through or skipping commercials and ads  Zapping: Avoiding ads by switching to other channels during commercials  Cord-cutting: Dropping cable or satellite subscriptions in favor of streaming services  Opting out: Choosing not to have cookies placed on computers or phones  Blocking: Using ad blockers on computers or phones e. Because exposure is so important, marketers are investing in traditional and nontraditional sources to reach consumers, as Exhibit 3.3 (PPT Slide 7) suggests. f. There are several implications for marketers:  Select media, such as Internet and social networking sites, television, radio, and product placements, and develop communications for targeted consumers.  Keep innovative products on the market long enough for consumers to be exposed multiple times and to develop a positive impression.  Advertise in unexpected and new ways, such as on racing cars, airport jetways, sports stadium turnstiles, supermarket floors, sewer covers on streets, and shopping bags.  Offer coupons, apps, offers, contests, and other content viewed on consumers‘ phones.  Reach out through media that are not yet saturated with messages.  Use targeted e-mail marketing to communicate regularly with consumers, offering product updates, promotional deals, and other content.  Build buzz with previews/teasers, mobile marketing, and social media promotions.  Give consumers some choice about what and how they watch.  Expose consumers to messages according to where their ―customer journey.‖ (Table 3.1 on PPT Slide 9) g. Polling Activity: Conduct a poll with the class. (PPT Slide 10) 5 minutes total  Do you engage in any of the following selective exposure consumer behaviors?

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o



XI.

Skipping: Avoiding exposure by leaving the room during commercials o Zipping: Fast-forwarding through or skipping commercials and ads o Zapping: Avoiding ads by switching to other channels during commercials o Cord-cutting: Dropping cable or satellite subscriptions in favor of streaming services o Opting out: Choosing not to have cookies placed on computers or phones o Blocking: Using ad blockers on computers or phones Students‘ responses will vary, but most likely engage in some (or all) of these behaviors. Ask students what it is about a commercial that makes them not avoid viewing it.

Attention and Consumer Behavior (LO 3-2, PPT Slides 11–18) a. Attention: The amount of mental activity a consumer devotes to a stimulus  Certain amount of attention necessary for information to be perceived—to activate people‘s senses  Enables consumers to learn more efficiently from their exposure to marketing stimuli and make more informed decisions  85% of ads fail to reach ―attention threshold‖ (approximately three seconds) needed to have an enduring impact  ―Attention economy‖—Marketers compete with one another for consumers‘ attention o TV ads: 43% of 30-second ads generate an average of 13.8 seconds of viewer attention o YouTube ads: Average about 5 seconds of actual attention o Facebook and Instagram ads: Average 1.5 seconds of actual attention  Four key characteristics of attention are shown in Table 3.2 (PPT Slide 3.2). o Attention is limited. o Attention is selective. o Attention can be divided. o Attention is subject to habituation. (a) Habituation: The process by which a stimulus loses its attention-getting abilities by virtue of its familiarity

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

b. Marketers can use various research methods (such as eyetracking) to gauge consumers‘ attention to ads, packages, and products (Exhibit 3.5 on PPT Slide 14).  Eye-tracking shows where consumers‘ visual attention is focused at any particular moment.  Eye-tracking not only indicates how long consumers attend to marketing stimuli, but where their focus is engaged. c. Marketers can attract consumers‘ attention by making the stimulus:  Personally relevant  Pleasant (attractive models, music, humor) (Exhibit 3.7 on PPT Slide 16)  Surprising (novelty, unexpectedness, puzzles) (Exhibit 3.8 on PPT Slide 17)  Easy to process (prominence, concreteness, limited, contrasting) o Prominence: The intensity of stimuli that causes them to stand out relative to the environment o Concreteness: The extent to which a stimulus is capable of being imagined d. Discussion Activity: Pose the question to the class. (PPT Slide 18) 5 minutes total  How does habituation influence consumer behavior, and what are its implications for marketers? o Habituation refers to the process by which a stimulus loses its attention-getting abilities by virtue of its familiarity. Over time, consumers become habituated to ads, packages, and other marketing stimuli. They cease to be part of the foreground and become part of the background. o When consumers do become habituated to certain products or brands, they may rely more on automatic and habitual responses rather than deliberate evaluation. This can make it difficult for new or lesser-known brands to break into established consumer routines, as consumers may stick to their habitual choices without considering alternatives. Marketers need to understand these habitual patterns and find strategies to disrupt them or align their offerings with existing habits. o To counter habituation, marketers can alter the stimulus periodically. For example, many companies develop multiple ads that communicate the same basic message but in different ways and using different media. Habituation also explains 49 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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why marketers sometimes change packaging or rearrange retail stores to attract consumers‘ attention anew.

XII.

Perception and Consumer Behavior (LO 3-3, PPT Slides 19–29) a. Perception: The process of taking in (or encoding) a stimulus using vision, hearing, taste, smell, and touch b. Sensory memory: Input from one or more of the five senses stored temporarily in memory  Echoic memory—Sensory memory of things we hear  Iconic memory—Sensory memory of things we see  Olfactory memory—Sensory memory of things we smell c. Perceiving Through Vision:  The following factors can combine to impact consumers‘ perceptions of marketing stimuli: o Size and Shape o Lettering o Pictorials o Color o Appearance  Exhibit 3.9 (PPT Slide 22) illustrates how text and images on a package label can affect consumer perceptions. d. Perceiving Through Hearing:  Perception of sound (auditory stimuli) depends on its intensity.  Sonic identity—Using specific music or sounds to identify a brand  Consumers make more risk-averse choices when exposed to low-pitched sounds.  A brand name with sound repetition evokes positive feelings.  A moderate level of ambient noise stimulates abstract thinking, which can enhance the likelihood that consumers will buy an innovative product. e. Perceiving Through Smell:  Marketers are concerned with the effects of smell on consumer responses, product trial, liking, and buying.  Effects of smells on physiological responses and moods: o People feel energetic or relaxed depending on whether (and which) scent is present. o Some of our most basic emotions are linked to smell.  Effects of smell on liking: 50

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

o Smells can attract consumers.  Effects of smell on product trial: o Smell can entice consumers to try or buy a food product.  Effects of smell on buying: o A pleasant-smelling environment can encourage consumers to pay attention to stimuli that they encounter and linger longer, thus encouraging buying. f. Perceiving Through Touch:  Consumers like some products because of their feel.  When considering products with material properties, consumers prefer goods they can touch in stores.  Touching a product (or imagining the action of touching it) can increase a consumer‘s psychological ownership of the item.  Reactions to touch in sales situations vary from culture to culture.  The temperature of an item or room and weight of a product can also be factors. g. Perceiving Through Posture and Balance:  Standing (vs. sitting) exerts greater stress on the body, which reduces how sensitive consumers are to other sensory cues. h. Sensory marketing—The process of systematically managing consumers‘ perception and experiences of marketing stimuli  Vision: Color can make consumers believe they are buying products that are very current or spark nostalgia for earlier times.  Hearing: The type of music being played in a retail outlet can affect shopping behavior.  Taste: Marketers try to monitor consumers‘ taste perceptions through taste tests.  Smell: Using ambient scents can be advantageous because they enhance the in-store experience and lead consumers closer to making a purchase.  Touch: Many retailers and manufacturers offer trial sizes, samples, and opportunities to handle products. i. Absolute threshold: The minimal level of stimulus intensity needed to detect a stimulus  If images or words in a commercial are too small or the sound level is too low, the stimulus will not be consciously perceived. j. Differential threshold/just noticeable difference (jnd): The intensity difference needed between two stimuli before they are perceived to be different 51 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

Weber’s law: The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different  Sometimes marketers do not want consumers to notice a difference between two stimuli (decrease in product size or increase in price).  Sometimes marketers do want consumers to notice a difference between two stimuli (―roomier interior‖ on an updated car model, ―bonus packs‖ with a larger volume of the product in the product‘s package). o Given rising inflation in the United States, the UK, and other countries in 2022, various brands were selling their brands at the original price, but with fewer units in the product‘s package, a phenomenon that has been called ―shrinkflation.‖ (Exhibit 3.12 on PPT Slide 28) k. Knowledge Check Activity: Suppose from testing that it was determined that seven cents had to be added to a dollar before consumers would notice the difference. According to Weber’s law, how much would have to be added to five dollars before consumers would notice the difference? (PPT Slide 29) 5 minutes total  Answer: b. 35 cents. o (Δs/5) = (.07/1) o (Δs/5) = (.07) o Δs = .35 XIII.

Comprehension and Consumer Behavior (LO 3-4, PPT Slides 30–36) a. Comprehension* The process of extracting higher-order meaning from what we have perceived in the context of what we already know b. Source identification: The process of determining what the perceived stimulus actually is, that is, what category it belongs to  Rapid, automatic process  Help consumers rapidly determine which of the numerous stimuli in their environment are relevant to them  After only 100 milliseconds (just a brief, single glance) consumers know something is an ad rather than something else  Lines are blurred by product placement, advertorials, and infomercials  Federal Trade Commission (FTC) requires advertorials, infomercials, and sponsored tweets to be clearly labeled as such 52

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c. Marketers and policy makers are concerned with the following:  Objective and subjective comprehension of messages o Objective comprehension*: The extent to which consumers accurately understand the message a sender intended to communicate o Subjective comprehension*: What the consumer understands from the message, regardless of whether this understanding is accurate  The possibility of miscomprehension o Miscomprehension—When consumers inaccurately construe the meaning in a message  The effect of motivation, ability, and opportunity on comprehension o Low motivation o Limited opportunity or time to process the message o Complexity of the message o Lack of repeated viewing  The effect of culture o Differences between low-context cultures and high-context cultures o Language differences o Differences in the way cultures visualize the progression of time d. Marketers can improve objective comprehension in several ways:  Keep the message simple.  Repeat the message.  Present the same information in different modes.  Design a message to be consistent with a consumer‘s prior knowledge.  Convey information about a new product effectively by drawing an analogy between the product and something with similar benefits. e. Perceptual fluency: The ease with which information is processed  The earlier in life that consumers encounter a brand, and the more regularly they encounter it, the more quickly they will be able to recognize it. f. Inferences—Conclusions consumers draw or interpretations they form  Brand Names and Symbols  Product Features and Packaging  Price  Marketing Messages 53 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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 

Retail Atmospherics, Displays, and Distribution Comprehension, Inferences, Working Memory o Working memory (WM): The portion of memory where incoming information is comprehended in the context of existing knowledge and kept available for more processing o Working memory, particularly imagery processing, has several key implications for marketers: (a) Imagery can improve the amount of information that can be processed. (b) Imagery can stimulate future choice. (c) Realistic imagery can improve consumer satisfaction g. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 36) 45 minutes total  Specific elements of the marketing mix can affect the correct or incorrect inferences consumers make about an offering during comprehension. Choose a well-known product (or product type) and brainstorm specific ways each of the marketing-mix elements could be used to improve the accuracy of consumer inferences about that product. o Students‘ examples will vary. o Comprehension and inferences occur in working memory. Working memory, particularly imagery processing, has several key implications for marketers: – Imagery can improve the amount of information that can be processed.

– Imagery can stimulate future choice.

– Realistic imagery can improve consumer satisfaction o Information represented either as words or images can be elaborated, or thought about more deeply.

When motivation, ability, and opportunity (MAO) are low, working memory might consist of a simple reproduction of an object—for example, the word skier or a visual image of a skier. When MAO are high, however, consumers can use elaborated imagery processing to engage in daydreams, fantasies, visual problem solving, or elaborated discursive processing to think about upcoming events or work out solutions to current problem. [return to top] 54 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

21. 

Why is exposure so important to marketers?

Answer: Exposure refers to the process by which the consumer comes in physical contact with a stimulus, such as marketing stimuli, which contain information about the marketer‘s product and brand name, its features and benefits, and how it relates to consumers‘ needs and goals.

The best products and services fail to be successful if consumers are not aware of them, and exposure is a precondition to this.

22.

What is attention, and what can marketers do to enhance consumers‘ attention to marketing stimuli?  Answer: Attention is the amount of mental activity a consumer devotes to a stimulus. Because attention is limited, marketers can ensure that consumers are able to process their marketing stimuli in an effortless way.

Attention is also selective, so marketers should ensure that stimuli are interesting to the consumer. Because attention can be divided, marketers can place stimuli in locations where consumers are engaging in activities where they are able to switch their attention between tasks.

Lastly, when a stimulus becomes familiar, it can lose its attention-getting ability, known as habituation. To counter consumer wear-out, marketers can alter their stimuli periodically by developing multiple ads that communicate the same basic message but in different ways and using different media. They can also change a product‘s packaging or rearrange a retail store to attract consumers‘ attention anew.

23.

What is perception, and how can sensory perceptions influence consumer behavior?  Answer: Perception is the process of taking in (or encoding) a stimulus using vision, hearing, taste, smell, and touch. It can be thought of as the way in which our different senses are activated by a stimulus. Sensory perceptions influence consumer behavior as consumers evaluate products based upon the physical properties they perceive as well as through the various meanings associated with these properties, affecting consumers‘ purchasing decisions.

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24.

Differentiate between the absolute threshold and the differential threshold, and explain how these concepts relate to Weber‘s Law.  Answer: The absolute threshold is the minimum amount of stimulus intensity needed to detect a stimulus, while the differential threshold is the intensity difference needed between two stimuli before they are perceived to be different. Weber‘s law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. In short, it is easier to detect a difference between an object weighing 10 lbs. and one weighing 20 lbs. (10 lb. difference) than it is to detect a difference between an object weighing 100 lbs. and one weighing 110 lbs. (still a 10 lb. difference).

25.

What are the differences between objective and subjective comprehension?  Answer: Comprehension is the process of extracting higherorder meaning from what we have perceived in the context of what we already know. Objective comprehension refers to the extent to which consumers accurately understand the message a sender intended to communicate. Subjective comprehension refers to what the consumer understands from the message, regardless of whether this understanding is accurate.

26.

What are some ways that companies can use price, brand names, product features, and packaging to affect consumer inferences?  Answer: Inferences are the conclusions that consumers draw or interpretations that they form based on the message.

Brand names and symbols, product features and packaging, price, message wording, and retail atmospherics, displays, and distribution all have an impact on consumer inference making.  Students‘ examples of ways that companies can use price, brand names, product features and packaging to affect consumer inferences will vary. For example, consumers infer that a product with more levels of a feature has more power, that round numbers are associated with stability, and that the inclusion of nutritional information means a product is healthier than one that omits this data. [return to top]

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 3: Exposure, Attention, Perception, and Comprehension

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

5. Discussion: Combatting Selective Exposure (LO 3-1) Duration 5–10 minutes. 

Discuss the concept of selective exposure and explain why it is important to marketers. o



What are some examples of how consumers engage in selective exposure? o



Answer: Ultimately, consumers control their exposure to marketing stimuli. Selective exposure describes when consumers actively seek out certain stimuli and avoid or resist others. Selective exposure to marketing stimuli is a major challenge for marketers.

Consumers have so many choices about where and how to spend their time that it can be hard for marketers to know how to best reach them.

Answer: Examples include the following:  Skipping: Avoiding exposure by leaving the room  Zipping: Fast-forwarding through or skipping commercials and ads  Zapping: Avoiding ads by switching to other channels during commercial breaks  Cord-cutting: Dropping cable or satellite subscriptions in favor of streaming services  Opting out: Choosing not to have cookies placed on computers or phones  Blocking: Using ad blockers on computers or phones

Describe how these consumer behaviors can be addressed through marketing efforts. o

Answer: Students‘ responses will vary. Marketing implications related to exposure include the following:  Select media, such as Internet and social networking sites, television, radio, and product placements, and develop communications for targeted consumers.

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



  

  

Keep innovative products on the market long enough for consumers to be exposed multiple times and to develop a positive impression.

Advertise in unexpected and new ways, such as on racing cars, airport jetways, sports stadium turnstiles, supermarket floors, sewer covers on streets, and shopping bags.

Offer coupons, apps, offers, contests, and other content viewed on consumers‘ phones.

Reach out through media that are not yet saturated with messages.

Use targeted e-mail marketing to communicate regularly with consumers, offering product updates, promotional deals, and other content.

Build buzz with previews/teasers, mobile marketing, and social media promotions.

Give consumers some choice about what and how they watch.

Expose consumers to messages according to where their ―customer journey.‖

6. Discussion: Characteristics of Attention (LO 3.2) Duration 5–10 minutes. 

What are the four key characteristics of attention?

Describe each and provide an example of each. o

Answer:  Attention is limited.

– Consumers may miss some stimuli, especially when in unfamiliar surroundings.

– Example: While watching TV with friends, a consumer may reduce the volume to pay more attention to what friends are saying.  Attention is selective.

– Consumers decide what to focus on at any one time, choosing not to focus on or mentally process other stimuli.

– Example: Shoppers cannot focus on every display or product in a store, so they must decide which they will pay attention to.  Attention can be divided.

– Consumers can allocate some attention to one task and some to a different task, or rapidly switch between tasks.

– Example: While paying attention to their driving, consumers can also notice ads on billboards posted along a highway.

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

Attention is subject to habituation.

– Consumers can become so familiar with marketing stimuli that they no longer pay attention to them.

– Example: Ads that are seen frequently may no longer attract attention.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

4. Writing Activity: Effective Advertising (LO 3-1 – 3-4) Duration 45 minutes. 

Have students browse through a copy of one of their favorite magazines identifying the three ads they think are most effective for generating exposure, attention, and perception. Also ask them to identify three ads that are ineffective for each process. Their summary should cover the following points: What makes the good ones effective?

What do they think is wrong with the others? How could they be improved? o

Students tend to provide lots of interesting detail.

Attempt to get students to categorize this vast amount of information by developing common themes that denote the reasons for successful and unsuccessful ad executions.

5. Group Activity: Differential Thresholds (LO 3-3) Duration 40 minutes. 

Working in small groups, ask students to identify as many examples as they can in which marketers want consumers to perceive a just noticeable difference between their product and a competitor‘s, or between an old product and a new one. Ask them to also find examples in which marketers do not want consumers to perceive such a difference. Students should consider not only visual aspects of the product or service, such as how big or small it is, but other perceptual differences as well (how it tastes, feels, smells, sounds). Have each group share their insights in an instructor-led debrief/discussion. o

Here, students should grasp the notion that market leaders may be trying to distance themselves from the 59

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competition while market followers/imitators may be trying to remain as close to the leaders as possible.

6. Writing Activity: Color and Visual Perception (LO 3-3) Duration 45 minutes. 

Have students Read about color trends and future color predictions in the press releases and reports of the Color Marketing Group and prepare a written summary of their findings. Their summary should cover the following points: What colors are expected to be popular in the next few years—and why? Choose a particular product, such as a specific car model, and explain how the color forecasts reviewed might affect the marketing of that product. o

By way of comparison, it is also interesting to capture information about colors used in older cars.

You may ask students to apply this exercise to a variety of products such as fashion (e.g. shoes, shirts) and interior decorating.

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Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 4: Prior Knowledge, Long-Term Memory, and Retrieval (Remembering)

TABLE OF CONTENTS Purpose and Perspective of the Chapter .............................. 61 List of Student Downloads ........................................... 61 Chapter Objectives .................................................. 62 Complete List of Chapter Activities and Assessments ................. 62 Key Terms ........................................................... 63 What's New in This Chapter .......................................... 64 Chapter Outline ..................................................... 65 End-Of-Chapter Questions for Review and Discussion .................. 73 Additional Discussion Questions ..................................... 76 Additional Activities and Assignments ............................... 77

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 4: Prior Knowledge, Long-Term Memory, and Retrieval (Remembering)

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore how memory and knowledge influence consumer behavior. The chapter describes memory and knowledge content (stored knowledge) and knowledge structure (the way information is organized in our minds). Prior knowledge is essential for two levels of consumer understanding: categorization and comprehension. Categorization is a process of labeling things that consumers perceive and relating them to both other objects in the environment and their past experience. Items that are categorized, such as brands, are linked with other items in schemas and scripts.

Schemas and scripts are part of the consumers‘ knowledge of their world. Understanding how this knowledge is structured can help marketers create new knowledge about existing brands, create new brands, and link either new or existing brands to other knowledge that consumers may have about the world.

Knowledge is organized into categories in which objects in the same category are similar to one another and are distinct from items in other categories. Within a category, items are graded so that some are more representative or prototypical of that category than others. In addition, categories may be hierarchically organized so that some items are considered basic as compared to others that are subordinate or superordinate. Understanding the structure of knowledge helps marketers to position, develop, and design all elements of the marketing mix.

Memory is discussed as both sensory and working, as well as both short-term and long-term. Memory is explicit or implicit. The role of memory is key to understand along with consumer knowledge.

Various factors like chunking, rehearsal, recirculation, and elaboration increase the likelihood that the information consumers encounter will be stored in memory. Marketers hope that when consumers are ready to buy a product, they will remember (retrieve) what they know about the brand, either by recognizing or recalling the brand name and what it stands for. Yet long-term memory is fallible, and in some cases, consumers encounter retrieval failures, or they make retrieval errors.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 4: Prior Knowledge, Long-Term Memory, and Retrieval (Remembering)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 4-1

Explain the difference and importance of two aspects of prior knowledge: knowledge content and knowledge structure.

4-2

Identify factors that enhance the likelihood that information will be stored in long-term memory.

4-3

Explain what marketers can do to increase the likelihood that information will be retrieved from memory.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 4-1 – 4-3 4-1 4-1 4-3 4-1 – 4-3

Activity/Assessment

Polling Activity Discussion Activity Group Activity Knowledge Check Activity Learn It: Concept Check Quiz: Chapter 04 Prior Knowledge, Long-Term Memory, and Retrieval (Remembering) 4-1 – 4-3 Apply It: Assignment: Chapter 04 Prior Knowledge, Long-Term Memory, and Retrieval (Remembering) 4-1 – 4-3 Apply It: Case Activity: Chapter 04 Prior Knowledge, Long-Term Memory, and Retrieval (Remembering)

Source (i.e., PPT slide, Workbook) PowerPoint Slide 4 PowerPoint Slide 15 PowerPoint Slide 23 PowerPoint Slide 36 MindTap Learning Path Chapter 4 Folder

Duration

MindTap Learning Path Chapter 4 Folder

35–45 mins.

MindTap Learning Path Chapter 4 Folder

35–45 mins.

5 mins.

5–10 mins.

20–30 mins.

5 mins.

35–45 mins.

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KEY TERMS Brand extension: Using the brand name of a product with a welldeveloped image on a product in a different category.

Brand image: Specific type of schema that captures what a brand stands for and how favorably it is viewed.

Brand personality: The set of associations included in a schema that reflect a brand‘s personification.

Construal-level theory: A theory that describes the relationship between psychological distance and how abstract or concrete people‘s thinking is.

Decay: The weakening of memory strength over time.

Elaboration: Transferring information into long-term memory by processing it at deeper levels.

Episodic (autobiographical) memory: Knowledge we have about ourselves and our personal past experiences.

Explicit memory: Memory when consumers are consciously aware that they remember something.

Goal-derived category: Things viewed as belonging in the same category because they serve the same goals.

Implicit memory: Memory without a conscious attempt at remembering something.

Interference: When the strength of a memory deteriorates over time because of competing memories.

Long-term memory (LTM): That part of memory where information is permanently stored for later use. (Long-term memory is different from the concepts of sensory memory and working memory described in Chapter 3.)

Primacy and recency effect: The tendency to show greater memory for information that comes first or last in a sequence.

Priming: The increased sensitivity to certain concepts and associations due to prior experience based on implicit memory.

Prior knowledge: Information stored in long-term memory that we have learned based on past exposures or experiences.

Prototype: The best example of a cognitive (mental) category.

Prototypicality: The extent to which an object is representative of its category.

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Recall: The ability to retrieve information about a stimulus from memory without being reexposed to it again.

Recognition: The process of identifying whether we have previously encountered a stimulus when reexposed to it.

Retrieval: The process of remembering or accessing information stored in long-term memory.

Retrieval cue: A stimulus that facilitates the activation and retrieval of information in long-term memory.

Schema: The set of associations linked to a concept in memory.

Script: A special type of schema that represents knowledge of the sequence of actions involved in performing an activity.

Semantic memory: General knowledge about an entity, detached from specific episodes.

Spreading of activation: The process by which retrieving a concept or association spreads to the retrieval of related concepts or associations.

Taxonomic categories: How consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:         

Updated chapter title—Prior Knowledge, Long-Term Memory, and Retrieval (Remembering) Updated learning objectives New exhibit on organizing New opening vignette Numerous new examples Numerous new exhibits Numerous new academic studies Enhanced discussion of brand anthropomorphizing New discussion of co-branding

[return to top]

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 4: Prior Knowledge, Long-Term Memory, and Retrieval (Remembering)

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XIV.

Prior Knowledge (LO 4-1, PPT Slides 3–23) a. Polling Activity: Conduct a poll with the class. (PPT Slide 4) 5 minutes total  What percentage of consumers do you believe make purchase decisions based upon active research? o Responses will vary. While many students might assume that consumers generally make purchase decisions based upon active research, studies in the field of psychology suggest that the unconscious data in our heads influences 90 to 95% of our behavior. o In his book, How Customers Think: Essential Insights into the Mind of the Market, Harvard Business School professor Gerald Zaltman suggests that 95 percent of our purchase decision-making takes place in the subconscious mind. o Marketers hope that when consumers are ready to buy a product, they will remember (retrieve) what they know about it, either by recognizing or recalling the brand name and what it stands for. b. An overview of the chapter is provided in Exhibit 4.1 (PPT Slide 5). c. Prior knowledge—The information that we have learned in the past and stored in memory  Concepts, cognitions (thoughts), and emotions  Knowledge content—Reflects the information we have already learned and stored in memory about brands, companies, stores, people, how to shop, how to use public transportation, etc.  Knowledge structure—Describes how knowledge is organized in memory d. Schema: The set of associations linked to a concept in memory  Spreading of activation: The process by which retrieving a concept or association spreads to the retrieval of related concepts or associations  Priming: The increased sensitivity to certain concepts and associations due to prior experience based on implicit memory 65

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o

  







Occurs when a concept is activated by a stimulus and this activation influences consumers‘ associations, positively or negatively, outside of conscious awareness.

Associations in schemas vary in terms of how abstract or concrete they are.

Exhibit 4.2 (PPT Slide 8) shows a hypothetical consumer‘s brand schema for Amazon.

Associations in schemas vary on three dimensions that are crucial to building strong brands, and fostering consumers‘ involvement in and their attitudes toward the brand: o Favorability: Associations can vary in favorability. − Focusing on a brand‘s history can sometimes lead to favorable brand evaluations. − Such a strategy can sometimes backfire because consumers infer that the brand is less authentic. o Uniqueness: Associations vary in their uniqueness: the extent to which they are also related to other concepts. o Salience: Associations vary in their salience, or how easily they come to mind. (a) Less salient associations may be remembered only in certain contexts.

Brand image: Specific type of schema that captures what a brand stands for and how favorably it is viewed.

Brand personality: The set of associations included in a schema that reflect a brand‘s personification o One researcher found that many brands can be described according to one or more of the five personality types depicted in Exhibit 4.3 (PPT Slide 10). o Anthropomorphize—Imbuing a product or brand with human features, a human-like mind (with thoughts, intentions, and emotions) and a human-like personality (Exhibit 4.4 on PPT Slide 11) Script: A special type of schema that represents knowledge of the sequence of actions involved in performing an activity o Describes how to do something. o Some brands may activate scripts in consumers‘ minds.

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o

When doing something for the first time, not having a script can prolong the task or make its execution more difficult. e. Understanding the associations that consumers see as part of themselves or want to see as part of themselves helps marketers to create, maintain, change, and protect brand images and personalities.  Creating Brand Images and Personalities o A schema or brand image helps consumers understand what a new offering is, what it can do for them, and how it differs from competing offerings. o Schemas and images help consumers understand the types of products offered.  Creating Brand Extensions o Brand extension: Using the brand name of a product with a well-developed image on a product in a different category (a) Transfer of associations takes place from the original brand schema to the new branded product (b) Transfer of meaning from the new branded product the original brand schema can take place  Engaging in Co-Branding o Effective when core associations with each brand are favorable when combined into a co-branded product  Maintaining Brand Images and Personalities o Through consistent advertising o Offer multiple brand extensions, link product to an appropriate sponsorship, highlight additional features and benefits  Changing Brand Images o Add new and positive associations if brand or product image becomes stale, outdated, or linked to negative associations  Protecting Brand Images o Consumers‘ prior expectations play critical role during a crisis f. Discussion Activity: Pose the question to the class. (PPT Slide 15) 5–10 minutes total  Describe how brand extensions can be a useful means of introducing a new product into the market as compared to building a new brand ―from scratch.‖ o The value of introducing a product as a brand extension as compared to building a brand ―from 67 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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scratch‖ lies in the company having the opportunity to transfer an existing brand‘s associations onto the new product. If Volvo, for example, were to begin manufacturing and selling tires (a brand extension), the company would have the edge over a ―from scratch‖ competitor who is representing its tires as a safe alternative.

This is because consumers already have created associative links between Volvo and safety in their minds. o Not only is there value in customers understanding a product‘s positioning as soon as it enters the marketplace, there also is the opportunity to build on the brand‘s favorable associations. If the firm effectively connects the brand‘s attributes, benefits, etc., to the characteristics of the brand extension, consumers are likely to evaluate the extension favorably.

An unknown brand would not be able to capitalize on these favorable associations. Favorable associations lead to a reduced risk of trial for the brand extensions when compared to the built ―from scratch‖ brand. g. Taxonomic categories: How consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another (Exhibit 4.6 on PPT Slide 16)  Prototype: The best example of a cognitive (mental) category.  Prototypicality: The extent to which an object is representative of its category  Table 4.1 (PPT Slide 17) identifies brands generally regarded as prototypes in their respective product categories.  Taxonomic categories can also be hierarchically organized: o Superordinate—Broadest level, where objects share a few associations but also have many different ones o Basic—Finer discriminations between objects occurs o Subordinate—Finest level of differentiation  Correlated associations—When an associative network contains attributes that are linked in the consumer‘s mind

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o

Knowledge about correlated attributes or benefits can significantly affect consumers‘ inferences about a new brand. h. The flexibility of a consumers‘ associative networks and categorizations depends, in part, on consumers‘ goals and the time to implement these goals.  Goal-derived category: Things viewed as belonging in the same category because they serve the same goals o Whereas items in taxonomic categories share similar attributes, in goal-derived categories, items in the category are different from one another, but they have a common goal in mind. o Positioning an offering as relevant to a goal can be an important marketing objective. o Goal-derived category structures are employed by retail stores. i. Construal-level theory: A theory that describes the relationship between psychological distance and how abstract or concrete people‘s thinking is  The associations that become activated in consumers‘ associative networks depend on the time interval between now and the moment of implementing the goals. o When people are close to implementing a goal, more concrete knowledge about the feasibility of attaining the goal becomes salient.  Construals also influence how consumers process information. o People tend to use imagery processing more when thinking about near-term events. o They engage in more verbal processing when thinking about events in the more distant future.  When consumers feel confident, they will focus on the abstract aspects of products. o When they feel less confident, they will focus on concrete details. j. The associations that consumers link to a concept may vary considerably across cultures.  Cultural groups also vary in how they organize taxonomic and goal-derived categories.  Culture can affect whether associations are perceived to be correlated. k. Consumers vary in their ability to process information based on how much prior experience they have.  Expert consumers have a richer associative network with more associations, and more concrete and abstract associations linked to a concept.

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

Expert consumers have more graded and refined taxonomic category structures.  Expert consumers exhibit more flexibility in activating associations (concrete or abstract) and categories (superordinate and subordinate). l. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 23) 20–30 minutes total  As a group, choose a specific brand for consideration. o Brainstorm words or ideas that come to mind when you think of your brand. o By what means could your brand intentionally alter the contents of the schema in consumers‘ minds? o How might the brand unintentionally affect the schema in the minds of the consumer?  Students‘ schemas and responses will vary, and they should be prompted to explain the reasoning for their responses. The purpose of this activity is for students to: o Recognize the importance of understanding how brands and their associated ideas are categorized by consumers over time o Grasp how to manage a brand to influence the categorical associations held about the brand XV.

Prior Knowledge and Long-Term Memory (LO 4-2, PPT Slides 24–28) a. Prior knowledge: Information stored in long-term memory that we have learned based on past exposures or experiences  Long-term memory (LTM): That part of memory where information is permanently stored for later use  Episodic (autobiographical) memory: Knowledge we have about ourselves and our personal past experiences  Semantic memory: General knowledge about an entity, detached from specific episodes b. Various techniques can leverage the power of episodic memory for marketing:  Promote empathy and identification. o Episodic memories can play a role in creating identification with characters or situations in ads.  Cue and preserve episodic memories. o Consumers value some brands or products and have a positive attitude toward some ads because they 70

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promote episodic memories by creating feelings of nostalgia.  Reinterpret past consumption experiences. o Marketing communications that encourage consumers to savor an upcoming vacation, meal, or massage can enhance consumers‘ remembered consumption enjoyment. c. Long-term memory may be explicit or implicit.  Explicit memory: Memory when consumers are consciously aware that they remember something  Implicit memory: Memory without a conscious attempt at remembering something o Processing fluency leads to feelings of familiarity. o Perceptual fluency makes it easier for consumers to recognize a brand and process perceptual information about it (text and pictures). d. Marketers can apply chunking, rehearsal, recirculation, and elaboration to help consumers remember their brands, communications, or offerings.  Chunking: o Provide larger bits of information that chunk together smaller bits. o Employ ads that draw conclusions that summarize or chunk disparate pieces of information into a single attribute or benefit.  Rehearsal: o Use tactics such as jingles, sounds, and slogans to instigate rehearsal.  Recirculation: o Strengthen the effect of recirculation by creating different ads that repeat the same basic message and by repeating the brand name frequently.  Elaboration: o Use unexpected or novel stimuli to attract attention and induce elaboration.

XVI.

Retrieval (LO 4-3, PPT Slides 29–36) a. Retrieval: The process of remembering or accessing information stored in long-term memory  Marketers want consumers to retrieve information about their brands when making decisions.  Marketers also want to understand and influence how consumers retrieve information from memory.

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b. Marketers are interested in two types of retrieval: recognition and recall.  Recognition: The process of identifying whether we have previously encountered a stimulus when reexposed to it  Recall: The ability to retrieve information about a stimulus from memory without being reexposed to it again  Retrieval is affected by: o The characteristics of the stimulus itself o What the stimulus is linked to o The way the stimulus is processed o The consumer‘s characteristics c. Several key characteristics of the stimulus affect retrieval:  Salience: Salient objects tend to attract attention and induce greater elaboration, thereby creating stronger memories.  Prototypicality: We are better able to recognize and recall prototypical or pioneer brands because these have been frequently rehearsed and recirculated and are linked to many other concepts in memory, and pioneers were the first to occupy the links.  Redundant cues: Marketers can enhance consumers‘ memory for brands by advertising two complementary products together and explaining why they go together.  The medium in which the stimulus is processed: Researchers are exploring whether certain media are more effective than others at enhancing consumer memory. d. Retrieval cue*: A stimulus that facilitates the activation and retrieval of information in long-term memory  Can be generated internally or provided externally  Effective cues may differ from culture to culture  May include sounds, visuals, brand names, scents, etc.  Retrieval can also be affected by what the stimulus is linked to in memory. e. Messages processed through visual imagery are better remembered than those processed as words (Exhibit 4.12 on PPT Slide 33). f. Consumers‘ mood and expertise can also affect retrieval.  Being in a positive mood can enhance our recall of stimuli.

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

We are more likely to recall information that is consistent with our mood.  Expert consumers can recall more brands, brand attributes, and benefits than novices can.  Consumers appear to access information about brands they encounter more quickly when they are young compared to when they are older. g. Memory is not always accurate or complete and may be selective or subject to confusion and distortion.  Three elements contribute to retrieval failures: o Decay: The weakening of memory strength over time o Interference: When the strength of a memory deteriorates over time because of competing memories o Primacy and recency effect: The tendency to show greater memory for information that comes first or last in a sequence  Memory is also not always accurate or complete and may be selective or subject to confusion and distortion. h. Knowledge Check Activity: Match each key term with its correct definition. (PPT Slide 36) 5 minutes total 1. Recall—c. The ability to retrieve information about a stimulus from memory without being reexposed to it again 2. Recognition—a. The process of identifying whether we have previously encountered a stimulus when reexposed to it 3. Retrieval—b. The process of remembering or accessing information stored in long-term memory. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

27.

What is a schema, and how can the associations in a schema be described?  Answer: A schema is the set of associations linked to a concept in memory. A schema for the concept banana has various associations—it has 100 calories, it is yellow, it bruises easily, and its peel can be slippery if stepped on.

An associative network is a set of concepts connected by links. When one concept is activated, others may become activated via the links. Concepts connected by strong links 73 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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are more likely to activate each other than are those connected by weak links.

28.

Why are some links in a semantic or associative network weak, whereas others are strong?  Answer: A semantic network is a set of concepts connected by links; Some ties are weak in a network. Strong links are firmly established in memory because they have been chunked, rehearsed, recirculated, or elaborated. Weak links are not as likely to activate each other as strong links are. For example, a strong link might be that your last football game experience was expensive, which triggers thoughts about waiting in line for a subpar snack. An example of a weak link might be that you can recall the ride you got to the game. The stronger link (the expense) activates other memories more than the weak link (your ride) does.

29.

What are taxonomic categories, and how do consumers use them to structure knowledge in memory?  Answer: Taxonomic categories are ways in which consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another.

Consumers use them to structure knowledge by first thinking about a basic group—What type of beverage is it? Then, more specifically—Is it diet or not? Then—What flavor is it?

What brand is it? This process enables us to have an orderly classification of objects with similar objects in the same category.

30.

What is a category prototype, and what affects prototypicality?  Answer: The prototype is the category member perceived to be the best example of a cognitive (mental) category.

Examples include Disney as the prototypical theme park or apple pie as the prototypical pie. Prototypicality is the extent to which an object is representative of its category.  Several factors affect whether a consumer regards something as a category prototype. The first is shared associations: A prototype shares the most associations with other members of its own category and shares the fewest with members from different categories. The second is the frequency with which an object is encountered as a category member. Thus, brands with the highest market share are likely to be considered the prototype. Third, the first or ―pioneer‖ brand in a category—such as Amazon for eBooks—may also

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become the prototype because it sets a standard against which later brands are compared.

31.

What does it mean to say that consumers organize knowledge according to goal-derived categories?  Answer: Taxonomic categories are fairly stable and based on the similarity between objects in terms of attributes (―all drinks that are carbonated‖). Consumers may also organize their knowledge in goal-derived categories. A goal-derived category contains things that consumers view as belonging in the same category because they serve the same goal(s), even though they may belong to very different taxonomic categories.

32.

How do high- (abstract) and low-level (concrete) associations differ, and what does this mean for knowledge structure?  Answer: Abstract associations are not easy to ―see‖-for example, honor or grace is a high-level, abstract association one may have with a brand. Concrete associations are easier to understand and depict because they can be ―seen.‖ For instance, yellow or round are concrete, descriptive associations that are simple to show and comprehend. Consumers must be motivated and able to elaborate abstract associations for them to transfer to long-term memory.

33.

How can priming affect spreading of activation, and why is this important for marketing purposes?  Answer: Spreading of activation may also take place outside of conscious awareness. This concept is called priming—the increased sensitivity to certain concepts and associations due to prior experience based on implicit memory. Priming occurs when a concept is activated by a stimulus (such as when the ―Milka‖ brand activates the concept ―Switzerland‖) and this activation influences consumers‘ associations, positively or negatively, outside of awareness.

34.

What techniques can enhance the storage of information in long-term memory?  Answer: Several techniques increase the likelihood that information will be transferred to long-term memory: o Chunking: Creating meaningful combinations (chunks) of information to improve memory o Rehearsal: Actively and consciously interacting with the material we are trying to remember o Recirculation: Encountering the information repeatedly o Elaboration: Transferring information into long-term memory by processing it at deeper levels 75 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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35. 

Which three elements affect retrieval failures?

Answer: Retrieval failures are impacted by the following three elements: o Decay—The weakening of memory strength over time o Interference—When the strength of a memory deteriorates over time because of competing memories o Serial-Position Effects—The tendency to show greater memory for information that comes first or last in a sequence

36.

How can consumers‘ ability to retrieve information in memory be enhanced?  Answer: We are more likely to recall information that is consistent with our mood, so by having a relaxing and or positive mood a consumer can retrieve information easier.  Secondly, by having more expertise with the topic, one can more easily retrieve related information. Experts have more complex category structures in memory with a greater number of higher- and lower-level categories and more detail in each category. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

7. Discussion: Identifying Prototypes (LO 4-1) Duration 5–10 minutes. 

Identify prototype brands in the following categories and explain why you believe they are prototypes: candy, tennis shoes, athletic wear, beer, soft drinks, and tablets. o

Answer: Students‘ examples will vary, but they should demonstrate an understanding of the concept of category prototypes.

8. Discussion: Taxonomic Categories (LO 4-1) Duration 5–10 minutes. 

Using the same categories listed in question one, identify the categories in which consumers are likely to place each type of product. Relate these categories to the superordinate, basic, and subordinate taxonomic hierarchical organization, as appropriate.

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o

Answer: Students‘ examples will vary, but they should demonstrate an understanding of the concepts of taxonomic categories and organization.

9. Discussion: Understanding Consumer Categorization (LO 4-1) Duration 5–10 minutes. 

Why is it useful for you as a marketer to understand how people categorize information? How can knowing this help you in the ongoing management of your own brand or organization? o

o

Answer: Consumers have a natural tendency to group these objects and people together in categories that share certain characteristics, called taxonomic categories. Once we have categorized an object, we know what it is, what it is like, and what it is similar to. Thus, if a financial services firm such as PayPal is categorized as an ―online bank,‖ it will be associated with other beliefs that consumers have about banks, such as the availability of savings accounts, even if the firm does not offer these benefits.

A brand can develop its identity by being positioned as either similar to or different from the prototype in its category. Understanding consumers‘ hierarchical category structure also helps marketers identify their competitors and influence perceptions of category attributes and prototypical products. In addition, how products are organized on store shelves (by benefit or by feature, for example) can affect consumer perceptions and decisions.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

7. Group Activity: Taxonomic Structures (LO 4-1) Duration 30–60 minutes. 

Ask students to design/illustrate their taxonomic structure for a broad product category, paying close attention to the different levels of the hierarchical structure as described in the text. Additionally, students could be asked to design a personal schema for a number of concepts such as 77

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education, specific retailers, television shows, or even sports teams. The importance of marketing and consumer behavior implications could be illustrated by students sharing their individual schemas.

8. Group Activity: Schema Research (LO 4-1) Duration 30 minutes. 

Ask students to brainstorm three methods they could use to study the schema consumers hold about a brand they choose.

Ask them to discuss the pros and cons of each method and how they might apply the information they uncover.

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 5: Attitudes Based on High Effort

TABLE OF CONTENTS Purpose and Perspective of the Chapter .............................. 79 List of Student Downloads ........................................... 80 Chapter Objectives .................................................. 80 Complete List of Chapter Activities and Assessments ................. 81 Key Terms ........................................................... 81 What's New in This Chapter .......................................... 83 Chapter Outline ..................................................... 83 End-Of-Chapter Questions for Review and Discussion .................. 93 Additional Discussion Questions ..................................... 95 Additional Activities and Assignments ............................... 96

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to examine how consumers‘ affective involvements are formed and changed when their motivation, ability, and opportunity (MAO) to engage in a behavior, make a decision, or process a message are high. In these instances, consumers tend to expend a lot of effort informing their attitudes. An attitude is a relatively global and enduring evaluation about an offering, issue, activity, person, or event. Attitudes can be described in terms of their favorability, accessibility, confidence, persistence, and resistance. When MAO is high, consumers devote considerable effort to processing a message. The thoughts and feelings that they have in response to this situation can affect their attitudes, through either a cognitive or an affective route to persuasion.

From a cognitive perspective, attitudes can be based on cognitive responses, which are defined as thoughts that individuals have in response to a stimulus. Three major types of cognitive responses are counterarguments, support arguments, and source derogations. Many counterarguments and source derogations would suggest that consumers‘ attitudes toward an offering are negative.

A second cognitively based perspective on attitudes is the expectancyvalue approach. The Theory of Reasoned Action (TORA), an extension of this model, is designed to predict not only attitudes but also behavioral intentions. This model predicts that intentions are affected by consumers‘ attitudes toward the act and normative factors.

The model also identifies how attitudes and intentions can be influenced by four major strategies: (1) change beliefs (bi), (2) change evaluations (ei), (3) add new beliefs (bi x ei), and (4) target normative beliefs (NB). Also, under elaborative processing, messages can be effective if they (1) have a credible source, (2) have a strong argument, (3) present positive and negative information (under certain circumstances), or (4) involve direct comparisons (if not the market leader).

Attitudes are also formed from feelings or emotions such as joy and fear. In essence, consumers can experience emotions either when they are affectively involved with a communication or when the message involves an emotional appeal. In either case, the consumer holistically processes the communication, and the feelings that result (either positive or negative) can determine attitudes.

When attitudes are affectively based, sources that are likable or attractive can have a positive impact on affective attitude change.

Emotional appeals can affect elaborative processing if they are relevant to the offering (the match-up hypothesis). Fear appeals are a specific type of emotion-eliciting message. A consumer‘s attitude toward the ad (Aad) can play a role in the attitude change process if 79 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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the ad is informative or associated with positive feelings. The Aad can then rub off on brand beliefs and attitudes.

Finally, attitudes will better predict a consumer‘s behavior when (1) involvement is high, (2) knowledge is high, (3) consumers analyze their brand preferences, (4) attitudes are accessible, (5) attitudes are held with confidence, (6) they are specific, (7) the time between exposure to product advertising and product trial is short, (8) there are no situational factors present, (9) normative factors are not in operation, and (10) we are dealing with certain personality types.

How marketers help consumers form positive brand attitudes based on new beliefs and associations, and to influence buying decisions, are central issues addressed in this chapter.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 5-1

Understand what attitudes are and why they are important.

5-2

Discuss the various cognitive models underlying consumers‘ attitudes based on high-effort thought processes.

5-3

Describe some of the methods for using the communication source and the message to favorably influence consumers‘ attitudes in high-effort situations.

5-4

Identify the emotional foundations of attitudes when consumers‘ processing effort is high.

5-5

Explain how and why a company might try to change consumers‘ attitudes by influencing their feelings.

5-6

Outline the three main factors that lead to a positive overall consumer attitude toward an advertisement.

5-7

Discuss the various elements that can affect whether a consumer‘s attitudes will influence their behavior.

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COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 5-1 5-1 5-3 5-1 – 5-7 5-1 – 5-7

Activity/Assessment

Polling Activity Discussion Activity Group Activity 1 Group Activity 2 Learn It: Concept Check Quiz: Chapter 05 Attitudes Based on High Effort 5-1 – 5-7 Apply It: Assignment: Chapter 05 Attitudes Based on High Effort 5-1 – 5-7 Apply It: Case Activity: Chapter 05 Attitudes Based on High Effort

Source (i.e., PPT slide, Workbook) PowerPoint Slide 4 PowerPoint Slide 10 PowerPoint Slide 19 PowerPoint Slide 31 MindTap Learning Path Chapter 1 Folder

Duration

MindTap Learning Path Chapter 1 Folder MindTap Learning Path Chapter 1 Folder

35–45 mins.

5 mins.

5–10 mins.

20 mins.

20–30 mins.

35–45 mins.

35–45 mins.

[return to top]

KEY TERMS Affective function: Katz‘ notion that our feelings influence our attitudes.

Affective response: When consumers generate feelings and images in response to a message.

Ambivalence: When our evaluations regarding a brand are mixed (both positive and negative).

Attitude: A relatively global and enduring evaluation of an object, issue, person, or action.

Attitude accessibility: How easily an attitude can be remembered.

Attitude confidence: How strongly we hold an attitude.

Attitude persistence: How long our attitude lasts.

Attitude resistance: How difficult it is to change an attitude.

Attitude toward the act (Aact): How we feel about doing something.

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Attitude toward the ad (Aad): Whether the consumer likes or dislikes an ad.

Attractiveness: A source characteristic that evokes favorable attitudes if a source is physically attractive, likable, familiar, or similar to ourselves.

Behavior (B): What we do.

Behavioral intention (BI): What we intend to do.

Belief discrepancy: When a message is different from what consumers believe.

Central-route processing: The attitude formation and change process when effort is high.

Cognitive function: How attitudes influence our thoughts.

Cognitive response: Thought we have in response to a communication.

Comparative message: A message that makes direct comparisons with competitors.

Conative function: How attitudes influence our behavior.

Counterargument (CA): Thought that disagrees with the message.

Credibility: Extent to which the source is trustworthy, expert, or has status.

Emotional appeal: A message designed to elicit an emotional response.

Emotional contagion: A message designed to induce consumers to vicariously experience a depicted emotion.

Expectancy-value model: A widely used model that explains how attitudes form and change.

Favorability: The degree to which we like or dislike something.

Fear appeal: A message that stresses negative consequences.

Hedonic dimension: When an ad creates positive or negative feelings.

Match-up hypothesis: Idea that the source must be appropriate for the product/service.

Normative influence: How other people influence our behavior through social pressure.

One-sided message: A marketing message that presents only positive information.

Peripheral-route processing: The attitude formation and change process when effort is low.

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Sleeper effect: Consumers forget the source of a message more quickly than they forget the message.

Source derogation (SD): Thought that discounts or attacks the source of the message.

Strong argument: A presentation that features the best or central merits of an offering in a convincing manner.

Subjective norm (SN): How others feel about our doing something.

Support argument (SA): Thought that agrees with the message.

Terror management theory (TMT): A theory which deals with how we cope with the threat of death by defending our world view of values and beliefs.

Theory of planned behavior: An extension of the TORA model that predicts behaviors over which consumers perceive they have control.

Theory of reasoned action (TORA): A model that provides an explanation of how, when, and why attitudes predict behavior.

Two-sided message: A marketing message that presents both positive and negative information.

Utilitarian (or functional) dimension: When an ad provides information. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:     

Updated learning objectives New opening vignette New and updated exhibits Numerous recent academic studies added New discussion of authenticity

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

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XVII.

What Are Attitudes? (LO 5-1, PPT Slides 3–10) a. Polling Activity: Conduct a poll with the class. (PPT Slide 4) 5 minutes total  Which statement do you most agree with? o Attitudes are learned o Attitudes are inherent  Attitudes are learned, and they tend to persist over time. Our attitudes also reflect our overall evaluation of something based on the set of associations linked to it. This is the reason why we have attitudes toward brands, product categories, ads, people, stores, websites, activities, and so forth. b. Attitude: A relatively global and enduring evaluation of an object, issue, person, or action  Overall evaluation that expresses how much we like or dislike something  Cognitive function: How attitudes influence our thoughts  Affective function: Katz‘ notion that our feelings influence our attitudes  Conative function: How attitudes influence our behavior c. Attitudes can be described in terms of five main characteristics:  Favorability: The degree to which we like or dislike something  Attitude accessibility: How easily an attitude can be remembered  Attitude confidence: How strongly we hold an attitude  Attitude persistence: How long our attitude lasts  Attitude resistance: How difficult it is to change an attitude d. Attitudes can also be described in terms of ambivalence— when our evaluations regarding a brand are mixed (both positive and negative). e. One approach to attitude formation suggests that attitudes are based on cognitions (thoughts) or beliefs. A second approach suggests that attitudes are based on emotions.

(Exhibit 5.1 on PPT Slide 7)  Marketers can better create or influence consumers‘ attitudes toward new offerings and novel behaviors when they understand how attitudes are formed. This understanding also helps marketers plan strategies

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for changing consumer attitudes about existing offerings and established behaviors.  Consumers can form attitudes in four basic ways, depending on whether elaboration is high or low and whether the processing is cognitive or affective.

This chapter examines the ways in which attitudes can be formed and changed when consumer effort is high. f. How much extensive thinking or elaboration consumers put forth affects their attitude formation and change processes.  Central-route processing: The attitude formation and change process when effort is high  Peripheral-route processing: The attitude formation and change process when effort is low  When consumers are likely to devote a lot of effort to processing information, marketers can influence consumer attitudes either cognitively or affectively.

(Exhibit 5.2 on PPT Slide 9)  Marketers can also try to influence consumers‘ attitudes through characteristics of the source used in a persuasive communication, the type of message used, or some combination of both.  Following the first two stages (exposure, attention, and comprehension; and knowledge and memory), consumers can either form or change their attitudes.

This chapter explains how consumers form high-effort attitudes based on both cognition and affect. It also shows how marketers can influence attitudes through source factors and message factors. g. Discussion Activity: Pose the question to the class. (PPT Slide 10) 5–10 minutes total  Explain central-route processing and discuss ways marketers can influence high-effort consumer attitudes. o When consumers‘ motivation, ability, and opportunity (MAO) are high, they are more likely to devote a lot of effort to attitude formation and change. This high-effort processing is called central-route processing. o Marketers can influence high-effort consumers‘ attitudes either cognitively or affectively.

Marketers‘ cognitive efforts attempt to influence consumer beliefs and thoughts about the object by focusing on the credibility of the source and the logical appeal of the message used, or a combination of the two. Marketers‘ affective efforts attempt to influence consumers‘ emotional 85 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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experiences associated with the offering by focusing on the attractiveness of the source, the emotional appeal of the message used, and consumers‘ attitude toward the ad.

XVIII.

The Cognitive Foundations of Attitudes (LO 5-2, PPT Slides 11–15) a. Researchers have proposed various theories to explain how thoughts are related to attitudes when consumers devote a lot of effort to processing information and making decisions. b. Direct or Imagined Experience:  Elaborating on actual experience with a product or service (or even imagining what that experience could be like) can help consumers form positive or negative attitudes c. Reasoning by Analogy or Category:  Consumers form attitudes by considering how similar a product is to other products or to a particular product category. d. Values-Driven Attitudes:  Attitudes are generated or shaped based on individual values.  Six main determinants of authenticity: accuracy, connectedness, integrity, legitimacy, originality, and proficiency e. Social Identity-Based Attitude Generation:  Consumers‘ own social identities can play a role in forming their attitudes f. Analytical Processes of Attitude Formation Theory:  Consumers sometimes use a more analytical process of attitude formation in which, after being exposed to marketing stimuli or other information, they form attitudes based on their cognitive responses. o Counterargument (CA): Thought that disagrees with the message o Support argument (SA): Thought that agrees with the message o Source derogation (SD): Thought that discounts or attacks the source of the message  Expectancy-value model: A widely used model that explains how attitudes form and change o Theory of reasoned action (TORA): A model that provides an explanation of how, when, and why attitudes predict behavior (a) TORA is an expectancy-value model that proposes how beliefs influence attitudes 86

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and norms, which in turn affect behavior (Exhibit 5.4 on PPT Slide 14). (b) Behavior (B): What we do (c) Behavioral intention (BI): What we intend to do (d) Attitude toward the act (Aact): How we feel about doing something (e) Subjective norm (SN): How others feel about our doing something (f) Normative influence: How other people influence our behavior through social pressure (g) Note that the TORA model takes into account how other people in the social environment influence consumer behavior. In some situations, normative influences from others can play a powerful role in how people behave. (h) Theory of planned behavior: An extension of the TORA model that predicts behaviors over which consumers perceive they have control (i) The TORA model is useful for analyzing the reasons why consumers may like or dislike an offering, whether they intend to engage in or resist a behavior, and who else might be influential and therefore should also be targeted. g. Marketers can change attitudes, intentions, and (marketers hope) behavior through these major strategies:  Change beliefs.  Change evaluations.  Add a new belief.  Encourage attitude formation based on imagined experience.  Target normative beliefs.

XIX.

How Cognitively Based Attitudes Are Influenced (LO 5-3, PPT Slides 16–19) a. The credibility of these spokespersons and the credibility of the company influence consumers‘ attitudes.  Credibility: Extent to which the source is trustworthy, expert, or has status  Sleeper effect: Consumers forget the source of a message more quickly than they forget the message b. People are more likely to believe—and change their attitudes based on—messages from companies with a 87

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reputation for producing quality products, dealing fairly with consumers, or being trustworthy. c. Numerous media choices for message delivery are available, with varying applications for marketers. d. Consumers also evaluate whether the message itself is credible.  Strong argument: A presentation that features the best or central merits of an offering in a convincing manner  One-sided message: A marketing message that presents only positive information  Two-sided message: A marketing message that presents both positive and negative information  Comparative message: A message that makes direct comparisons with competitors e. Marketing implications include the following:  If messages are weak, consumers are unlikely to think they offer credible reasons for buying.  A message should match the amount of effort consumers want to use to process it.  Two-sided messages seem to be particularly effective in the following situations:  When consumers are initially opposed to the offering (they already have negative beliefs)  When they will be exposed to strong countermessages from competitors.  Consumers who are exposed to many competing ads during a short period are likely to have difficulty recalling a particular brand‘s message, which in turn will hurt sales.  Two-sided messages are well received by more intelligent consumers, who prefer neutral, unbiased messages.  The positive effects of two-sided messages on brand attitudes occur only if the negative message is about an attribute that is not extremely important.  When MAO is high, consumers exert more effort in processing direct comparative messages and are less likely to confuse the advertised brand with its competition.  When consumers use analytical processing, a comparative ad will be more persuasive than a noncomparative ad; when consumers use imagery processing, a noncomparative ad will be more persuasive.

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

Comparative messages are not useful in changing a consumer‘s negative first impression of a brand or company.  All information contained in a comparative message must be factual and verifiable.  Aggressive use of direct comparative ads can draw complaints from consumers as well as from competitors, and stimulate regulatory scrutiny.  Messages that compare a company‘s new, improved product to the same company‘s original product will be effective only when the improved functions are seen as atypical for that product. f. Group Activity 1: Break the class into small groups of two to three students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 19) 20 minutes total  Develop a set of guidelines that tell marketers when it is useful to put negative information into their messages.  Explain what types of effects these messages can have on consumers. o Students‘ guidelines will vary. o Two-sided messages seem to be particularly effective (1) when consumers are initially opposed to the offering (they already have negative beliefs) or (2) when they will be exposed to strong countermessages from competitors. o The persuasive effect of two-sided messages depends, in part, on how much negative information is presented, on the interplay of negative and positive attributes, and—in the case of product reviews—on the consistency between the reviewer‘s arguments and the reviewer‘s helpfulness ratings. o When consumers see negative information in an ad, they tend to infer that the company is honest, a belief that adds to source credibility. By providing reasons for consumers to be interested in the offering despite these problems, the ad encourages consumers to add a new belief.

XX.

The Affective (Emotional) Foundations of Attitudes (LO 5-4, PPT Slides 20–22) a. Engagement—The extent to which consumers are emotionally connected to a product or ad 89

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b. Emotional receptivity—Predisposition for a certain level of emotion c. Affective response: When consumers generate feelings and images in response to a message d. Emotional appeal: A message designed to elicit an emotional response e. Note that cognition can still influence whether experienced feelings will affect consumer attitudes. f. For feelings to have a direct impact on their attitudes, consumers must cognitively link them to the offering. g. Marketing implications include the following:  Marketers can try to ensure that the emotions experienced in a particular situation will be positive.  Marketers can influence consumers‘ attitudes and emotions by focusing attention on the emotional experience of product usage.  In situations in which affective involvement in the product or service is often high, marketers may be able to generate the images and feelings necessary to change attitudes.  A good mood will not enhance the consumer‘s evaluation of a brand extension introduced by a core brand seen as undesirable by that consumer.

XXI.

How Affectively Based Attitudes Are Influenced (LO 5-5, PPT Slides 23–26) a. Marketers can use characteristics of the source and the message to change consumers‘ attitudes by affecting their emotions. b. Attractiveness: A source characteristic that evokes favorable attitudes if a source is physically attractive, likable, familiar, or similar to ourselves  Match-up hypothesis: Idea that the source must be appropriate for the product/service c. Emotional appeals and emotional contagion (a message designed to induce consumers to vicariously experience a depicted emotion) (Exhibit 5.10 on PPT Slide 25)  Typically, marketers attempt to arouse emotions by using techniques such as music, emotional scenes or facial expressions, humor, visuals, sex, and attractive sources. d. Fear appeal: A message that stresses negative consequences  Terror management theory (TMT): A theory which deals with how we cope with the threat of death by defending our world view of values and beliefs 90

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  XXII.

Appeal must suggest an immediate action that will reduce the consumer‘s fear Level of fear must be generally moderate for the appeal to be effective

Attitude Toward the Ad (LO 5-6, PPT Slides 27–28) a. Attitude toward the ad (Aad): Whether the consumer likes or dislikes an ad b. Three major factors have been found to lead to a positive Aad in the context of high effort:  More informative ads tend to be better liked and to generate positive responses. o Utilitarian (or functional) dimension: When an ad provides information  Consumers can like an ad if it creates positive feelings or emotions (the hedonic dimension). o Using humor, music, and attractive sources  Consumers can like an ad because it is interesting— that is, it arouses curiosity and attracts attention.

XXIII.

When Do Attitudes Predict Behavior? (LO 5-7, PPT Slides 29–31) a. Marketers need to consider which factors affect whether a consumer‘s attitudes will influence their behavior:  Level of involvement/elaboration—Attitudes are more likely to predict behavior when cognitive involvement is high and consumers elaborate or think extensively about the information that gives rise to their attitudes.  Knowledge and experience—Attitudes are more likely to be strongly held and predictive of behavior when the consumer is knowledgeable about or experienced with the object of the attitude.  Analysis of reasons—Research shows that asking consumers to analyze their reasons for brand preference increases the link between attitude and behavior in situations in which behavior is measured soon after attitudes are measured.  Accessibility of attitudes—Attitudes are more strongly related to behavior when they are accessible or ―top of mind.‖  Attitude confidence—Sometimes we are more certain about our evaluations than we are at other times.  Specificity of attitudes—Attitudes tend to be good predictors of behavior when we are very specific about the behavior that they are trying to predict.

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

Attitude–behavior relationship over time—When consumers are exposed to an advertising message but do not actually try the product, their attitude confidence declines over time.  Emotional attachment—Emotional attachment to a brand is a stronger predictor of actual purchase behavior than brand attitudes.  Situational factors—Intervening situational factors can prevent a behavior from being performed and can thus weaken the attitude–behavior relationship.  Normative factors—According to the TORA model, normative factors are likely to affect the attitude– behavior relationship.  Personality variables—Certain personality types are more likely to exhibit stronger attitude–behavior relationships than are others. b. Group Activity 2: Break the class into small groups of three to four students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 31) 20–30 minutes total  Create a fictional product idea.  Choose three factors from the list that might affect whether a consumer‘s attitudes will influence their behavior in purchasing your brand.  Identify marketing strategies that address each factor you chose. o Students‘ products and marketing strategies will vary. One such example is as follows: (a) Product: A new joint supplement for dogs (b) Factor 1—Knowledge and experience: Attitudes are more likely to be strongly held and predictive of behavior when the consumer is knowledgeable about or experienced with the object of the attitude. A marketing strategy might be to provide material that helps the consumer become more knowledgeable about the specific joint problems dogs can face.

Another marketing strategy might be to target consumers who have previously purchased supplements for their pets or for themselves. (c) Factor 2—Attitude–behavior relationship over time: When consumers are exposed to an advertising message but do not actually try the product, their 92 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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attitude confidence declines over time. A marketing strategy might be to offer a free trial and then use communications to reinforce the effects of the trial experience and thereby reactive the attitude. (d) Factor 3—Attitude confidence: Confidence tends to be stronger when the attitude is based either on a greater amount of information or on more trustworthy information. And when we are confident, our attitudes are more likely to predict our behaviors. A marketing strategy might be to build consumer confidence in their product selection through the results of studies, specific and credible testimonials, etc. Before-and-after video evidence dogs who found joint pain relief and increased mobility by using your product could also build attitude confidence in the product [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

37. 

What are attitudes, and what three functions do they serve?

Answer: Attitudes are the enduring evaluations that one has regarding an object, issue, person, or action. They serve cognitive, affective and conative functions. In short, attitudes can influence our thoughts, feelings, and behavior.

38.

How do expectancy-value models seek to explain attitude formation?  Answer: Expectancy-value models attempt to explain consumers‘ attitude formation as a function of the beliefs consumers have about an objective as well as the evaluations they have of those beliefs. For example, positive attitudes can be formed if a consumer believes a brand is reliable and high quality, and they evaluate reliability and quality as desirable traits for the product.

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39.

What role does credibility play in affecting consumer attitudes based on cognitions?  Answer: Source credibility directly influences consumer attitudes. High credibility can positively influence consumers‘ acceptance of the message even when consumers‘ attitudes are negative, when the message deviates from their prior beliefs, or when the message is complex or difficult to understand. In short, high source credibility can change prior negative product attitudes.

40.

What are the advantages and disadvantages of offering a two-sided message about a product?  Answer: Advantages of a two-sided message include its ability to make the message more credible and to reduce counterarguments. A two-sided message is often seen as less biased by the consumer. Because this type of message presents the product as less than perfect, it makes the message appear to be more believable.  However, a two-sided argument can be disadvantageous when the consumer perceives the negative aspect of the message as an extremely important attribute of the product.

41.

Contrast emotional and fear appeals. Why is each effective?

Which do you consider most compelling for products in which you are interested?  Answer: While emotional appeals are designed to elicit an emotional response, fear appeals are designed to specifically elicit fear or anxiety.  Emotional appeals can be effective in forming positive associations within a consumer‘s product schema. Many products are purchased to elicit different emotions.

Tapping into these underlying motivations can lead to stronger brand connections for even habitually purchased convenience items. However, for feelings to have a direct impact on their attitudes, consumers must cognitively link them to the offering.  Fear appeals, on the other hand, can be effective at garnering attention. These appeals typically cut through advertising clutter, making them more memorable in the process. Fear can be a strong motivator to behave in a certain manner. Early studies found that fear appeals were ineffective because consumers‘ perceptual defense helped them block out and ignore the message (due to its threatening nature). However, more recent research indicates that fear appeals can work under certain conditions. For example, fear appeals that evoke guilt, regret, or challenge can motivate behavior because they play to feelings of self-accountability that are 94 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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experienced when the consumer does or does not do something, such as applying sunscreen to avoid cancer.

42.

What three factors may lead to a positive attitude toward the ad (Aad) when consumers devote a lot of effort to processing a message? How can marketers apply these factors when designing advertising messages?  Answer: In high-effort processing situations, consumers tend to like (1) more informative ads, (2) ads that create positive feelings or emotions, and (3) ads that are inherently interesting. Marketers should identify products that elicit a high-level of cognitive effort, and advertising for these high-effort products should follow the guidelines of being informative, positive, and interesting. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

10.

Discussion: Cognitively Based Attitudes (LO 5-3) Duration 5 minutes. 

Explain how credible marketing communications can affect consumers‘ cognitively based attitudes. o

Answer: People are more likely to believe—and change their attitudes based on—messages from companies with a reputation for producing quality products, dealing fairly with consumers, or being trustworthy. Marketers should create communications that incorporate credible sources and messages because these communications are most likely to influence cognitively based attitudes.

Source credibility is enhanced by the trustworthiness, expertise, or status of the communication source, as well as by the reputation of the company. Message credibility is enhanced by the argument quality of the message, whether it is a one- versus two-sided message, and whether it is a comparison message.

11.

Discussion: The Dangers of Direct Comparisons (LO 5-3) Duration 5 minutes.

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

What are some of the dangers of using direct comparisons? o

o

o

o

o

Answer: All information contained in a comparative message must be factual and verifiable; otherwise, competitors may consider taking legal action.

Although comparative ads are widely used in the United States and Latin America, they are illegal in some countries and closely regulated in the European Union.

Some consumers dislike comparative advertising.

Japanese consumers, for example, respond better to a softer sell than they do to comparative ads.

Aggressive use of direct comparative ads can draw complaints from consumers—as well as from competitors— and stimulate regulatory scrutiny.

Also, messages that compare a company‘s new, improved product to the same company‘s original product will be effective only when the improved functions are seen as atypical for that product. Otherwise, consumers are likely to discount the novelty of the new functionality.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

9. Internet Activity: Social Media Ads (LO 5-1 – 5-7) Duration 90 minutes. 

Have students find ten social media ads (Facebook, Instagram, etc.) that they think will elicit elaborative processing. Ask them to analyze these ads for the types of source and message factors discussed in the chapter. Based on this analysis, students should answer the following questions: o Which types of source and message factors are most frequently used? o Which ads do you think are most effective, and why? o Which ads do you think are least effective, and why?.  Consider requiring the student to be able to discuss the message content factors such as argument quality, one- versus two-sided arguments, and the use of a comparative message.

The student should analyze the source factors of attractiveness and credibility. Additionally, the 96

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student should comment on the match-up hypothesis, especially in cases where the source is a famous person.

10.

Group Activity: Comparative Messages (LO 5-3) Duration 45 minutes. 

Have students find three examples of comparative ads online or in magazines and have them answer the following questions for each: o o o

Is the ad positively framed? Or negatively framed?

Does the ad appeal to promotion-focused consumers? Or prevention-focused consumers?

How effective do you think the ad is? Why?  



Examples will vary.

Marketers should also consider consumers‘ goals when preparing comparative ads. Promotion-focused consumers, whose goal is to maximize their gains and positive outcomes, will be more responsive to claims that Brand X is superior to Brand Y; prevention-focused consumers, who want to minimize their loss and risk, will be more skeptical of superiority claims and more responsive to claims that Brand X is similar or equivalent to Brand Y. Positively framed comparative messages (Brand X performs better than Brand Y) are more effective for promotion-focused consumers (refer to Chapter 2), whereas negatively framed messages (Brand Y has more problems than Brand X) are more effective for prevention-focused consumers.

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TABLE OF CONTENTS Purpose and Perspective of the Chapter .............................. 99 List of Student Downloads ........................................... 99 Chapter Objectives ................................................. 100 Complete List of Chapter Activities and Assessments ................ 100 97 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Key Terms .......................................................... 101 What's New in This Chapter ......................................... 102 Chapter Outline .................................................... 102 End-Of-Chapter Questions for Review and Discussion ................. 110 Additional Discussion Questions .................................... 112 Additional Activities and Assignments .............................. 113

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the processes by which marketers can change consumers‘ attitudes when MAO is low and hence the effort consumers expend to process information is low. The chapter first examines unconscious influences on consumers‘ attitudes, including thin-slice judgments and body feedback. The chapter then examines the cognitive bases of attitudes and how marketing communications can be designed to enhance consumers‘ attitudes. When attitudes of low MAO consumers are based on cognitive processing, the message should affect their beliefs. These beliefs may be formed by simple inferences, attributions, or rules of thumb (heuristics).

Marketers can also affect the salience, strength, or favorability of consumers‘ beliefs, when attitudes are based on simple beliefs.

Characteristics of the source (source credibility), characteristics of the message (category- and schema-consistent information, a large number of message arguments, and simple messages), and characteristics of the context (the extent of repetition) each influence one or more of the dimensions of beliefs.

According to the mere exposure effect, when MAO is low, consumers‘ attitudes toward an offering become more favorable as they become more familiar with it. Classical conditioning predicts that consumers‘ attitudes toward an offering (the conditioned stimulus, or CS) are enhanced when it is repeatedly paired with a stimulus (the unconditioned stimulus, or UCS) that evokes a positive emotional response (the unconditioned response). This effect is most likely to occur when a CS-UCS link is novel, when the consumer is aware of the link, when the UCS and CS fit together, and when the CS precedes the UCS. Furthermore, if consumers like a particular ad (Aad), these feelings may be transferred over to the brand (Ab) (dual-mediation hypothesis). Additionally, attitudes toward an offering can also be affected by consumers‘ mood and their tendency to evaluate the offering in a mood-congruent direction.

Finally, attitudes based on affective processes can be made more favorable when consumers‘ MAO and effort are low. Characteristics of the source (attractiveness, likeability, celebrity), characteristics of the message (pleasant pictures, music, humor, sex, emotional content), and characteristics of the context (program or editorial context) can each influence affectively based attitudes.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 99 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 6-1

Outline some issues marketers face in trying to change consumers‘ attitudes when processing effort is low.

6-2

Explain the role of unconscious influences on attitudes and behavior in low-effort situations.

6-3

Discuss how consumers form beliefs based on low-processing cognitive effort.

6-4

Explain how marketers can influence cognitive attitudes through various methods.

6-5

Describe how consumers form attitudes through affective reactions when cognitive effort is low.

6-6

Describe how marketers can influence consumers‘ feelings and attitudes when processing effort is low.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 6-1 6-4 6-5 6-6 6-1 – 6-6

Activity/Assessment

Knowledge Check Activity Polling Activity Discussion Activity Group Activity Learn It: Concept Check Quiz: Chapter 06 Attitudes Based on Low Effort 6-1 – 6-6 Apply It: Assignment: Chapter 06 Attitudes Based on Low Effort 16-1 – 6- Apply It: Case Activity: 6 Chapter 06 Attitudes Based on Low Effort

Source (i.e., PPT slide, Workbook) PowerPoint Slide 7 PowerPoint Slide 19 PowerPoint Slide 27 PowerPoint Slide 36 MindTap Learning Path Chapter 6 Folder

Duration

MindTap Learning Path Chapter 6 Folder MindTap Learning Path Chapter 6 Folder

35–45 mins.

5 mins.

5 mins.

5 mins.

20 mins.

35–45 mins.

35–45 mins.

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KEY TERMS Classical conditioning: Producing a response to a stimulus by repeatedly pairing it with another stimulus that automatically produces this response.

Dramas: Ads with characters, a plot, and a story.

Dual-mediation hypothesis: Explains how attitudes toward the ad influence brand attitudes.

Evaluative conditioning: A special case of classical conditioning, producing an affective response by repeatedly pairing a neutral conditioned stimulus with an emotionally charged unconditioned stimulus.

Frequency heuristic: Belief based simply on the number of supporting arguments or amount of repetition.

Heuristics: Simple rules of thumb that are used to make judgments.

Incidental learning: Learning that occurs from repetition rather than from conscious processing.

Mere exposure effect: When familiarity leads to a consumer‘s liking an object.

Mystery ad: An ad in which the brand is not identified until the end of the message.

Peripheral cues: Easily processed aspects of a message, such as music, an attractive source, picture, or humor.

Peripheral route to persuasion: Aspects other than key message arguments that are used to influence attitudes.

Self-referencing: Relating a message to one‘s own experience or selfimage.

Simple inferences: Beliefs based on peripheral cues.

Thin-slice judgments: Evaluations made after very brief observations.

Transformational advertising: Ads that try to increase emotional involvement with the product or service.

Truth effect: When consumers believe a statement simply because it has been repeated a number of times.

Wearout: Becoming bored with a stimulus. [return to top] 101 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:     

Updated learning objectives New organizing exhibit Numerous new marketing and digital examples New and updated exhibits Numerous recent academic studies added

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XXIV.

High-Effort Versus Low-Effort Routes to Persuasion (LO 6-1, PPT Slides 3–7) a. Low-effort situation—When consumers are either unwilling or unable to exert a lot of effort or devote emotional resources to processing the central idea behind a marketing communication  Consumers are unlikely to think about what the product means to them, feel strong emotions toward the brand, or generate arguments against or in support of the brand message.  Consumers are passive recipients of the message and usually do not form strong beliefs or accessible, persistent, resistant, or confident attitudes. b. Marketers must therefore use a strategy that takes into account these effects of lower-level processing. c. Peripheral route to persuasion: Aspects other than key message arguments that are used to influence attitudes  Based not on a detailed consideration of the message or their ability to relate to the brand empathetically but on other easily processed aspects of the message o Peripheral cues: Easily processed aspects of a message, such as music, an attractive source, picture, or humor  Marketers can try to design their ads to enhance the likelihood that consumers‘ thoughts (the cognitive 102

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base), feelings (the affective base), or both will be favorable. d. Exhibit 6-1 (PPT Slide 6) provides an over of the chapter.  Attitudes can be formed unconsciously as well as cognitively and affectively in low-effort situations, although not in the same way as they are in higheffort situations.  Low-effort cognition involves simple beliefs, and affect involves mere exposure, classical and evaluative conditioning, attitude toward the ad, and mood.  Marketers can also influence consumer attitudes cognitively and affectively using source, message, and context factors. e. Knowledge Check Activity: Which of the following statements about peripheral cues is true? (PPT Slide 7) 5 minutes total  Answer: c. Peripheral cues provide additional contextual information outside our central focus.  Processing is called peripheral when consumers‘ attitudes are based not on a detailed consideration of the message or their ability to relate to the brand empathetically but on other easily processed aspects of the message, such as the source or visuals, called peripheral cues. These cues may take the form of music, and attractive source, a pleasant picture, humor, etc.

XXV.

Unconscious Influences on Attitudes When Consumer Effort Is Low (LO 6-2, PPT Slides 8–10) a. Recent research indicates that much processing in loweffort situations occurs below conscious awareness.  Consumers form attitudes on both cognitive and affective bases without being aware of how or why they have done so.  Thin-slice judgments: Evaluations made after very brief observations  Body feedback can influence attitudes and behavior in some circumstances. b. Marketers can try to enhance thin-slice judgments and induce positive body feedback, even though consumers will not be consciously aware of these influences.  Make product packaging intriguing or attractive enough to cause consumers to pick up a product.

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

 XXVI.

Aim to have consumers read ad copy from top to bottom (and then from bottom to top) to simulate nodding ―yes.‖ Pay close attention to placement of images within the message.

Cognitive Bases of Attitudes When Consumer Effort Is Low (LO 6-3, PPT Slides 11–13) a. Marketers may actually be more successful in changing beliefs based on low processing effort than when consumers‘ processing effort is high.  Attitudes of low-effort consumers may be less resistant to attack than those of high-effort consumers. b. Consumers may acquire simple beliefs by forming simple inferences based on simple associations (peripheral cues) c. Consumers can form simple beliefs based on attributions or explanations for an endorsement. d. Consumers can also form heuristics—simple rules of thumb that are used to make judgments.  ―If it is a well-known brand, it must be good‖ to infer that brands with more frequent ads are also higher in quality.  Frequency heuristic: Belief based simply on the number of supporting arguments or amount of repetition o ―It must be good because there are ten reasons why I should like it.‖  Truth effect: When consumers believe a statement simply because it has been repeated a number of times

XXVII.

How Cognitive Attitudes Are Influenced (LO 6-4, PPT Slides 14–19) a. Marketers need to consider multiple factors when trying to influence cognitive attitudes.  The strength and importance of consumers‘ beliefs  The likelihood that consumers will form favorable beliefs based on the inferences, attributions, and heuristics they use in processing the message b. Marketers must consider three major characteristics of a communication:  The communication source  The message  The context in which the message is delivered and the use of repetition c. Credible sources can serve as peripheral cues.

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

Using an endorser who does not advertise many other products  The language used when communicating about the product d. The message itself can influence attitudes when processing effort is low.  Category- and schema-consistent information  Many message arguments  Simple messages  Involving messages  Self-referencing: Relating a message to one‘s own experience or self-image o Marketers can increase self-referencing by: − Directly instructing consumers to selfreference − Using the word ―you‖ in the ad − Asking rhetorical questions − Showing visuals of situations to which consumers can easily relate  Mystery ads can arouse consumers‘ curiosity and involvement. o Mystery ad: An ad in which the brand is not identified until the end of the message  Marketers can also employ techniques to increase situational involvement and processing effort (e.g., avatars, scratch-and-sniff print ads). e. The context in which the message is delivered can affect the strength of consumers‘ beliefs and the prominence (or salience) of those beliefs.  Incidental learning: Learning that occurs from repetition rather than from conscious processing  Repetition can: o Enhance brand awareness o Make a brand name more familiar and easier to recognize in the store o Increase the likelihood that consumers will remember the brand and be better able to process it when making a purchasing decision o Increase consumers‘ confidence in the brand o Make claims more believable f. Polling Activity: Conduct a poll with the class. (PPT Slide 19) 5 minutes total  Which of following factors do you personally consider most influential in the effectiveness of a mystery ad?

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o

XXVIII.

A mystery ad is one in which the brand is not identified until the end of the message.

Students‘ opinions about these ads will vary. Ask them to think of examples of highly effective mystery ads. See if they can recall any that were not as effective in arousing consumer curiosity and involvement.

Affective Bases of Attitudes When Consumer Effort Is Low (LO 6-5, PPT Slides 20–27) a. Attitudes can also be based on consumers‘ affective or emotional reactions to these easily processed peripheral cues.  Mere exposure effect: When familiarity leads to a consumer‘s liking an object o Wearout: Becoming bored with a stimulus b. Classical conditioning: Producing a response to a stimulus by repeatedly pairing it with another stimulus that automatically produces this response  Evaluative conditioning: A special case of classical conditioning, producing an affective response by repeatedly pairing a neutral conditioned stimulus with an emotionally charged unconditioned stimulus c. Exhibit 6.4 (PPT Slide 22) illustrates classical and evaluative conditioning. d. Research suggests that conditioning is most likely to occur under the following circumstances:  The conditioned stimuli–unconditioned stimuli link is relatively novel or unknown.  The CS precedes the unconditioned stimulus (forward conditioning).  The CS is paired consistently with the UCS.  The consumer is aware of the link between the conditioned and unconditioned stimuli.  A logical fit exists between the conditioned and unconditioned stimuli.  Allowing consumers to experience emotional information enhances people‘s attitudes toward the conditioned stimulus. e. Another concept that has been useful in understanding the affective bases of attitudes in low-effort situations is the consumer‘s attitude toward the ad (Aad).  Consumers‘ attitudes toward ads may be the best indicator of advertising effectiveness.

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Dual-mediation hypothesis: Explains how attitudes toward the ad influence brand attitudes (Exhibit 6.5 on PPT Slide 25)  Marketers may be able to make consumers‘ Ab (attitude toward the brand) more positive by providing ads that please consumers (using humor, music, pleasant pictures, and sex).  The effect of ad attitudes on Ab may depend on whether consumers already have a strong attitude toward the brand.  The effect of Aad on attitude toward the brand dissipates over time. f. Affective attitudes can also be influenced by the consumer‘s mood.  Mood can bias attitudes in a mood-congruent direction.  Mood differs from classical conditioning in two important ways: o Does not require a repeated association between two stimuli o Can affect consumers‘ evaluations of any object, not just the stimulus  Retailers can use physical surroundings and the behavior of store employees to put consumers in a good mood.  Brighter in-store lighting tends to increase the extent to which shoppers examine and handle merchandise.  A salesperson‘s mood can also influence consumers. g. Discussion Activity: Pose the question to the class. (PPT Slide 27) 5 minutes total  Explain the mere exposure effect and provide examples of how marketers can enhance consumer liking for an object. o According to the mere exposure effect, familiarity with an object leads to liking an object. While the effect‘s validity has been questioned, it has been applied by the advertising industry. One of advertising‘s goals is to create tactics that increase consumer exposure to products and messages. The mere exposure effect is in use when product or brand information is repeated within an ad, when a commercial is repeated numerous times throughout a television broadcast or radio program, and when a product is advertised through multiple channels 107 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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simultaneously (television, radio, print media, the Internet, etc.).

XXIX.

How Affective Attitudes Are influenced (LO 6-6, PPT Slides 28–36) a. The same three factors that influence cognitive reasoning also influence affective attitudes: the communication source, the message, and the context. b. Under conditions of low effort, two factors play a major role in determining whether or not the communication source evokes favorable affective reactions:  Its physical attractiveness  Its likability c. Physical attractiveness and likability explain why celebrities and well-known cartoon characters are among the most widely used sources. d. Message characteristics can also influence feelings in loweffort processing situations.  Marketers frequently use pleasant pictures to influence consumers‘ message processing. o Visual stimuli can serve as a CS, affect consumers‘ mood, or make an ad likable by making it interesting. o Pleasant pictures can affect ad and Ab when they are processed peripherally. o Online marketers can customize image delivery.  Music is also frequently used as a communications tool. o Music can be an effective CS for a classical conditioning strategy. o Music can put the consumer in a positive mood and lead to the development of positive attitudes. o Music can be effective in generating positive feelings such as happiness, serenity, excitement, and sentimentality. o Background music in ads can stimulate emotional memories of experiences or situations. o Reaction to music can depend on consumers‘ mood. o Marketers must match their music to the desired affective responses. (Table 6.1 in the text)  Humor can increase consumers‘ liking of the ad and the brand. o Humor tends to work best on TV and radio. o Humor is more effective with certain audiences than with others. o Humor appears to be more effective for consumers who have either a lower need for cognition or a positive attitude toward the advertised brand.

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o

Humor can be used effectively throughout the world, but its effect varies from culture to culture.  Sex as a communication technique appears in two major forms: sexual suggestiveness and nudity. o In recent years, public response and regulatory scrutiny have prompted some advertisers to tone down their use of sexual references and imagery in traditional advertising. o Sexual messages attract the consumer‘s attention and can evoke emotional responses which in turn can affect consumers‘ moods and their attitudes toward the ad and the brand. o Sexual messages may also create negative feelings such as embarrassment, disgust, or uneasiness. o Consumers‘ response often depends on whether the sexual content is appropriate for the product/service. o Consumer reaction to sexual messages varies from culture to culture.  Emotional appeals can also be used effectively. o Concrete emotional appeals are more effective in stimulating short-term behavioral intentions. o Abstract emotional appeals are more effective in stimulating long-term intentions. o Higher emotionality in communications can lower status perceptions. o Transformational advertising: Ads that try to increase emotional involvement with the product or service o Dramas: Ads with characters, a plot, and a story  The program or editorial context in which an ad appears can also affect consumers‘ evaluation of the message. o Ads embedded in a happy TV program may be evaluated more positively than those in sad programs. o How well we like the program can affect our feelings about the ad and the brand. (a) Programs influence us to process information in a manner consistent with our mood. o One note of caution: A TV program can become too arousing and can therefore distract viewers from the ads. e. Group Activity: Break the class into small groups of two to three students and have them complete the activity followed 109 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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by an instructor-led debrief with the class. (PPT Slide 36) 20 minutes total  Choose five well-known celebrities.  Identify branded products or services for which those celebrities would make good spokespersons.  Discuss why the pairings make strategic sense and what role the celebrity could have in building brand equity. o Students‘ selected pairings will vary. For example, would Tyra Banks‘s fiery temper make her a good match with Tabasco? [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

43.

How can unconscious influences affect consumer attitudes and behavior in low-effort situations?  Answer: Much processing in low effort situations occurs below conscious awareness. Thin-slice judgments and body feedback are two ways in which consumers process information unconsciously.

44.

What role do source, message, context, and repetition play in influencing consumers‘ cognitive attitudes in low-effort situations?  Answer: These communication source characteristics are important in influencing consumer beliefs in low-effort processing situations. The message itself also influences attitude. Messages should attempt to provide consistent information to consumer schema. In low-processing situations, simple messages should be used. Repetition can increase recall through incidental learning, which is effortless processing. Repetition may also enhance brand awareness and memory. This is why it is very common in ads to hear or see the brand name at least four to seven times to help increase retention of the brand in the consumer‘s mind.

45.

What is the mere exposure effect, and why is it important to consumers‘ affective reactions?  Answer: The mere exposure effect is the concept that familiarity leads to liking of an object. It is important to our affective reactions, as we tend to prefer familiar objects to unfamiliar ones. Research has shown that mere 110 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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exposure allows consumers to more easily process information to which they have been exposed.

46.

How do classical conditioning and evaluative conditioning apply to consumers‘ attitudes when processing effort is low?  Answer: Successful classical conditioning links the conditioned stimulus to a response. This works best in loweffort processing situations where the linkage becomes assumed over time rather than cognitively paired. Pairing the product with certain unconditioned stimuli such as beautiful scenery or a catchy jingle can automatically elicit an emotional response such as joy or warmth.

47.

Explain the dual-mediation hypothesis. What are the implications for affecting consumers‘ brand attitudes?  Answer: The dual-mediation hypothesis explains how attitudes toward the ad (Aad) can influence attitudes toward the brand (Ab) and purchase intentions (Ib). In short, if a marketer can positively influence a consumer‘s attitude toward the ad (Aad), then these positive feelings can transfer to the brand (―I like the ad so I like the product‖), positively impact brand beliefs, and increase the likelihood of purchase. The dual-mediation hypothesis holds best for products that are less well known to the consumer and for products that require far less cognitive processing effort (products with a simple belief schema).

48.

In low-effort situations, what characteristics of the message influence consumers‘ affective response?  Answer: The characteristics of the message that influence consumers‘ affective response include the credibility, attractiveness, and likeability of the source, as well as message content factors such as the use of pleasant pictures, music, humor, sex, and emotional content along with message context.

49.

What are the advantages and disadvantages of featuring celebrities in advertising messages?  Answer: Typically, celebrities often rank high on attractiveness, likeability, and credibility. When the celebrity directly relates to the product being advertised (match-up hypothesis), celebrity sources can be very effective at affecting consumer attitudes. However, there is a danger for the advertiser to link their product to a celebrity whose credibility or likeability changes. Public scandal has affected numerous celebrities‘ ability to promote products. [return to top] 111 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

12.

Discussion: Influencing Low-Effort Consumer Attitudes (LO 6-1 – 6-6) Duration 5 minutes. 

Explain the peripheral route to persuasion and discuss ways marketers can influence low-effort consumer attitudes. o

Answer: When consumers‘ motivation, ability, and opportunity (MAO) are low, they are not likely to devote much effort to attitude formation and change.

Instead, they are likely to form beliefs based on simple inferences, attributions, and heuristics. This low-effort processing results in marketers using the peripheral route to persuasion (aspects other than key message arguments).

o

Marketers can influence low-effort consumers‘ attitudes either cognitively or affectively. When designing cognitively based messages, marketers should consider the credibility of the communication source, the content of the message, and the context of the message. The source should serve as a positive peripheral cue, and the context should include repetition. The message should incorporate categoryand schema-consistent information, many supporting arguments, and involving, yet simple, messages.

o

When designing affectively based messages, marketers should select communication sources that are attractive and likable (which may include the use of celebrities). They should create messages that include pleasant pictures, music, humor, sex, or emotional content, and an appropriate context.

13.

Discussion: Using Heuristics (LO 6-3) Duration 5–10 minutes. 

Explain why consumers often process messages using heuristics. o

Consumers can aid judgments by forming heuristics, or simple rules of thumb, that are easy to invoke and require little thought. Consumers often employ various 112

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heuristics, or mental shortcuts, to simplify their decision-making processes. These heuristics can help individuals quickly evaluate options and make choices, especially in situations where extensive information processing is not feasible or practical. 

Describe some common types of heuristics that consumers might employ. o



For example, consumers could use the heuristic ―If it is a well-known brand, it must be good‖ to infer that brands with more frequent ads are also higher in quality. A special type of heuristic is the frequency heuristic, with which consumers form a belief based on the number of supporting arguments. They may think, ―It must be good because there are ten reasons why I should like it.‖ Offer examples of situations in which these heuristics could be used. o

Answer: Some situations where heuristics could be used are as follows: 

Making a product seem scarce: This heuristic involves assigning higher value or desirability to items that are perceived to be scarce or limited in availability. Consumers may be more motivated to make a purchase if they believe the product or offer is rare or time-limited.



Setting price points: This heuristic involves assuming that higher-priced products are of better quality or that lower-priced products are of lower quality. Consumers may use price as a cue to judge the value or performance of a product.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

11.

Group Activity: Advertising Analysis (LO 6-4 and 6-6) Duration 45 minutes. 

Break students into small groups of two to three and provide each group with five magazines that are directed at 113

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different target audiences. Ask the students to prepare a chart that lists all the techniques discussed in this chapter across the top as columns (attractive source, likable source, celebrity source, pleasant pictures, music, humor, sex, emotional content, simple message, repetition, and so on). Down the side of the chart, the students should generate a running list of the different product and service categories that appear in the ads. For each ad in each magazine, students should make a tally of the type of product advertised and the type(s) of techniques used. Then ask them to answer the following questions: o

Which techniques are used most frequently?

o

Do certain techniques tend to be used more often for certain product or service categories?

o

Do the magazines in general use certain techniques more often for certain target audiences?

12.

Writing Activity: Humor in Advertising (LO 6-6) Duration 20–30 minutes. 

Have students write a summary that addresses the following points: o

Discuss how humor in advertising impacts upon consumer attitudes.

o

Provide examples of marketing communications that effectively use this technique.

o

Provide examples of marketing communications that have not been effective in using this technique.

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Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 7: Problem Recognition and Information Search

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 116 List of Student Downloads .......................................... 117 Chapter Objectives ................................................. 117 Complete List of Chapter Activities and Assessments ................ 117 114 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Key Terms .......................................................... 118 What's New in This Chapter ......................................... 118 Chapter Outline .................................................... 119 End-Of-Chapter Questions for Review and Discussion ................. 131 Additional Discussion Questions .................................... 133 Additional Activities and Assignments .............................. 134

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to examine the three initial stages of the consumer judgment and decision-making process. Problem recognition is the perceived difference between an ideal state and the actual state. When a discrepancy between these two states exists, the consumer may be motivated to resolve it by engaging in decision making.

Internal search involves the recall of information, feelings, and experiences from memory. In general, the extent of internal search will increase as motivation (e.g., involvement, perceived risk), ability (knowledge and experience), and opportunity (no time pressure or distractions) increase.

Consumer researchers have been interested in examining which brands, attributes, evaluations, and experiences are recalled. In general, aspects that are more salient, diagnostic, vivid, and related to goals are more likely to be recalled. Several biases exist in internal search: confirmation bias, in which information that reinforces our overall beliefs is remembered; inhibition, in which the recall of some information can inhibit the recall of other attributes; and mood, which refers to our tendency to recall mood-congruent information.

The last part of the chapter focuses on external search—how consumers acquire information from outside sources. This included pre-purchase search and ongoing search. The extent of search can vary widely, depending on the motivation, ability, and opportunity to search, but the extent of search is usually rather low. The content of search depends on the salience and diagnosticity of information. In most situations, brand name and price tend to be the most accessed attributes. Consumers also tend to exhibit a confirmation bias in their external search.

Six major sources of external search are identified. Retailer, Internet, and media searches account for the highest level of search activity, but interpersonal sources increase in importance as consumer knowledge decreases and normative factors increase.

The Internet is changing the way consumers search for information.

They have access to a great deal of information without even leaving home, so much so that they may suffer information overload.

Finally, discussion of the search process shows that more salient and diagnostic information tends to be accessed earlier. In addition, consumers tend to process either by brand or by attribute. Attribute search is easier and preferred, but often the information environment is not organized to facilitate this type of processing.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 7-1

Describe how marketers can influence the process of consumers recognizing a consumption problem.

7-2

Identify the ways in which marketers can affect consumers‘ internal search.

7-3

Explain how marketing strategy is influenced by a consumer‘s external search.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 7-1 7-2 7-3 7-3 7-1 – 7-3

Activity/Assessment

Group Activity Discussion Activity 1 Polling Activity Discussion Activity 2 Learn It: Concept Check Quiz: Chapter 07 Problem Recognition and Information Search 7-1 – 7-3 Apply It: Assignment: Chapter 07 Problem Recognition and Information Search 7-1 – 7-3 Apply It: Case Activity: Chapter 07 Problem Recognition and Information Search

Source (i.e., PPT slide, Workbook) PowerPoint Slide 10 PowerPoint Slide 21 PowerPoint Slide 23 PowerPoint Slide 40 MindTap Learning Path Chapter 7 Folder

Duration

MindTap Learning Path Chapter 7 Folder

35–45 mins.

MindTap Learning Path Chapter 7 Folder

35–45 mins.

20–30 mins.

10 mins.

5 mins.

5-10 mins.

35–45 mins.

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[return to top]

KEY TERMS Actual state: Current state; the way things actually are.

Attribute determinance: Attribute that is both salient and diagnostic.

Confirmation bias: Tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them, thereby making our judgment or decision more positive than it should be.

Consideration (or evoked set): The subset of top-of-mind brands evaluated when making a choice.

Diagnostic information: That which helps us discriminate among objects.

External search: The process of collecting information from outside sources, for example, magazines, dealers, and ads.

Ideal state: The way we want things to be.

Inhibition: The recall of one attribute inhibiting the recall of another.

Internal search: The process of recalling stored information from memory.

Ongoing search: A search that occurs regularly, regardless of whether the consumer is making a choice.

Online processing: When a consumer is actively evaluating a brand as they view an ad for it.

Prepurchase search: A search for information that aids a specific acquisition decision.

Problem recognition: The perceived difference between an actual and an ideal state.

Salient attribute: Attribute that is ―top of mind‖ or more important. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:  

Updated learning objectives New organizing exhibit 118

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    

Numerous new marketing and digital examples New exhibits Numerous new academic studies added Major updates on internet sources and social media Updates on AR and VR

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XXX.

Problem Recognition (LO 7-1, PPT Slides 4–10) a. Exhibit 7.1 (PPT Slide 5) provides an overview of the chapter. b. Problem recognition: The perceived difference between an actual and an ideal state  Motivates the consumer to action  Occurs if consumers become aware of a discrepancy between the actual state and the ideal state  Relates to consumption and disposition as well as to acquisition c. Because problem recognition stimulates many types of consumer decision-making, it is important to understand what contributes to differences between the ideal and the actual states.  Actual state: Current state; the way things actually are  Ideal state: The way we want things to be d. Where do we get our notion of the ideal state?  Simple expectations, usually based on past experience  Future goals or aspirations  Cultural influences and reference groups  Major changes in personal circumstances e. What influences our perception of the actual state?  Physical factors (such as a product malfunction)  Needs (hunger, thirst)  Creative mindset  External stimuli f. Marketers can help put consumers in a state of problem recognition and motivate them to start the decision 119

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process, leading them to acquire, consume, or dispose of a product or service.  Attempt to create a new ideal state.  Try to encourage our dissatisfaction with the actual state g. Marketers can target the ideal state by showing consumers how the product is the solution to their problems. h. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 10) 20–30 minutes total  Work together to develop your definition of the ideal state for a consumer using a particular product or service. o Students‘ examples will vary based upon the ideal state they define.  Create a list of factors that can influence how the ideal state is determined. o Factors that can influence how the ideal state is determined may include the following: − Consumer expectations based on past experience − Future goals or aspirations − Self-image motivations − Social class influences − Cultural influences − Reference group influences − Major changes in personal circumstances  Describe how marketers could influence this perception. o Marketers can help put consumers in a state of problem recognition and motivate them to start the decision process, leading them to acquire, consume, or dispose of a product or service. − They can attempt to create a new ideal state. − They can try to encourage dissatisfaction with the actual state.

XXXI.

Internal Search: Searching for Information from Memory (LO 7-2, PPT Slides 11–21) a. Internal search: The process of recalling stored information from memory  The extent of the search  The nature of the search

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

The process by which consumers recall information, feelings, and experiences and enter them into the decision process b. The degree of internal search can vary widely.  The effort consumers devote to internal search depends on their MAO to process information.  Consumers can engage in active internal search only if the information is stored in memory.  Consumers can recall information from memory only if they have the opportunity to do. c. What kind of information is retrieved from internal search?  Recall of brands  Recall of attributes  Recall of evaluations  Recall of experiences d. Consideration (or evoked set): The subset of top-of-mind brands evaluated when making a choice  Consumers‘ ability to recall brand information decreases as the size of the set increases.  Consideration sets vary in terms of their size, stability, variety, and preference dispersion .  Brand recall is impacted by the following factors: o Prototypicality: When consumers engage in internal search, they more easily recall brands that are closest to the prototype or that most resemble other category members, making these more likely to be included in the consideration set than brands that are not typical of the category. o Brand familiarity: Well-known brands are more easily recalled during internal search than unfamiliar brands because the memory links associated with these brands tend to be stronger. o Goals and usage situations: Consumers have goalderived and usage-specific categories in memory, such as drinks to bring to the beach, and the activation of these categories will determine which brands they recall during internal search. o Brand preference: Brands toward which the consumer has positive attitudes tend to be recalled more easily and tend to be included in the consideration set more often than brands that evoke negative attitudes. o Retrieval cues: By strongly associating the brand with a retrieval cue, marketers can increase the

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

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chance that the brand will be included in the consumer‘s consideration set.

Consumers can often recall some details when they engage in internal search, and the recalled attribute information can strongly influence their brand choices influenced by the following variable factors: o Accessibility or availability: Information that is more accessible or available—having the strongest associative links—is the most likely to be recalled and entered into the decision process. o Diagnosticity: Diagnostic information helps consumers distinguish objects from one another. − Diagnostic information: That which helps us discriminate among objects o Saliance: Research has clearly shown that consumers can recall very salient (prominent) attributes even when their opportunity to process is low. However, for information to be recalled and entered into the decision, it must have attribute determinance, which means the information is both salient and diagnostic. − Salient attribute: Attribute that is ―top of mind‖ or more important − Attribute determinance: Attribute that is both salient and diagnostic o Vividness: Vivid information is easier to recall than less dramatic information, but it only tends to influence judgment and decision-making when consumers have not formed a strong prior evaluation, especially one that is negative. o Goals: The consumer‘s goals will determine which attribute is recalled from memory.

Because our memory for specific details decays rapidly over time, we find overall evaluations or attitudes (i.e., our likes and dislikes) easier to remember than specific attribute information. o Our evaluations tend to form strong associative links with the brand. o Evaluations are more likely to be recalled by consumers who are actively evaluating the brand when they are exposed to relevant information. (a) Online processing: When a consumer is actively evaluating a brand as they view an ad for it Internal search can also involve the recall of experiences from autobiographical memory in the form 122

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of specific images and the effect associated with them. (Exhibit 7.6 on PPT Slide 18) o Experiences that are more vivid, salient, or frequent are the most likely to be recalled. e. Processing biases alter the nature of internal search and can sometimes lead to the recall of information that results in a less-than-optimal judgment or decision.  Confirmation bias: Tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them, thereby making our judgment or decision more positive than it should be o Selective perception—We see what we want to see.  Inhibition: The recall of one attribute inhibiting the recall of another o Consumers may also remember but still ignore important and useful information.  Mood o Consumers engaged in internal search are most likely to recall information, feelings, and experiences that match their mood. f. Marketing implications include the following:  From a marketing perspective, confirmation bias presents a real problem when consumers search internally for only positive information about the competition. o Draw attention to negative aspects of competitive brands through comparative advertising.  If nonrecalled attributes reflect features that differentiate the brand from others (i.e., if the attributes are diagnostic), highlight them in marketing communications. o Offset the effect of their brand‘s disadvantages and/or their competitors‘ advantages by drawing attention to more vivid or accessible attributes. g. Discussion Activity 1: Pose the question to the class. (PPT Slide 21) 10 minutes total  Describe how each of the following factors would influence the nature of the consideration set a consumer might use in making a purchase decision for a new vehicle. o Students‘ responses will vary. The following are some possible answers: (a) Prototypicality: When consumers engage in internal search, they more easily recall brands that are closest to the prototype or that most resemble other category members, making these more likely to be included in 123 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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the consideration set than brands that are not typical of the category. Depending upon the type of vehicle the consumer is interested in, various brands might come to mind. For example, for consumers interested in a hybrid, the Toyota Prius might come to mind as it was one of the first to market. (b) Brand familiarity: Well-known brands are more easily recalled during internal search than unfamiliar brands. Brand familiarity in this case might depend upon cultural and geographic influences.

Consumers in the mid-west might think first of GM/Chevy or Ford. (c) Goals and usage situations: Consumers have goal-derived and usage-specific categories in memory. A consumer who engages in a lot of outdoor activities might first think of a Subaru or Jeep, for instance. Consumers who live in a city might think first of brands that offer more compact vehicles. (d) Brand preference: Brands toward which the consumer has positive attitudes tend to be recalled more easily and tend to be included in the consideration set more often than brands that evoke negative attitudes. (e) Retrieval cues: By strongly associating the brand with a retrieval cue, marketers can increase the chance that the brand will be included in the consumer‘s consideration set. Brands with highly recognizable logos help consumers easily identify and remember them.

XXXII.

External Search: Searching for Information from the Environment (LO 7-3, PPT Slides 22–40) a. Polling Activity: Conduct a poll with the class. (PPT Slide 23) 5 minutes total  Where do you most often obtain information when you‘re interested in purchasing a product or service? o Students‘ responses will vary. For either prepurchase or ongoing search, consumers can acquire information from a number of external sources. The most common source of information for pre-purchase searches can vary depending on 124

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the product or service being considered.

Traditionally, retailer and media searches, followed by experiential search, have been the most frequently used forms of search. However, recently Internet search has become more dominant. b. External search: The process of collecting information from outside sources, for example, magazines, dealers, and ads  Collect additional information about which brands are available  Collect details about attributes and benefits associated with brands in the consideration set  Prepurchase search: A search for information that aids a specific acquisition decision  Ongoing search: A search that occurs regularly, regardless of whether the consumer is making a choice c. Exhibit 7.7 (PPT Slide 25) illustrates types of information search.  Consumers can engage in two major types of external search. o Prepurchase search occurs in response to problem recognition; the goal is to make better purchase decisions. o Ongoing search results from enduring involvement and occurs on a continual basis (independent of problem recognition). o In the latter, consumers search for information because they find searching enjoyable (they like to browse). d. Consumers can acquire information from several external sources.  Retailer search  Media and social media search  Interpersonal search  Independent search  Experiential search e. Consumers can use the Internet to get information from all five sources.  Speed, user control, and two-way communication capability are key elements of website interactivity for conducting online searches.  Consumers report higher satisfaction and stronger buying intentions when searching and shopping on sites that use an avatar.

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The number of exposures to online ads, the number of websites visited, and the number of pages viewed all have a positive effect on repeat purchasing.  Online ads can speed up product search by suppressing interest in competing products.  Consumers tend to employ social media sites when searching for hedonic products, while search engines and third-party reviews are more critical for utilitarian products.  Analyzing consumers‘ buying patterns can improve shopping agents‘ recommendations. f. Consumers have access to so much information they can become overloaded.  Overload can lead to a decline in decision quality.  Choice overload can occur in situations where the problem is complex and the consumer has difficulty dealing with complexity.  Other research suggests that increasing the number of options does not generally reduce choice quality. g. Creating a virtual product experience has a positive effect on consumer product knowledge and brand attitude, thereby reducing perceived risk and increasing purchase intention. h. Online community information is not controlled by marketers and is therefore seen as more credible.  80 percent of consumers changed their mind about buying a good or service after reading a negative review online.  On the other hand, positive reviews influenced the buying decisions of 87 percent of consumers surveyed.  Marketers should encourage reviewers to describe their product experiences using vivid language that conveys their emotions and using words consistent with the product category.  Average product ratings and number of reviews are also important pieces of information. i. Consumers‘ Internet search patterns can differ depending on type of product.  When researching experience goods (products that cannot easily be evaluated until after purchase and use), consumers tend to dig into the details and spend some time on each web page.  When researching search goods (products that can be evaluated before purchase and use), consumers tend to cast the net wider, searching more sites but spending less time on each web page.

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j. Eight factors increase our motivation to conduct an external search.  Involvement and perceived risk: Higher situational involvement will generally lead to a greater prepurchase search, whereas enduring involvement relates to an ongoing search regardless of whether problem recognition exists.  Perceived costs and benefits: Consumers tend to continue searching until they perceive that the costs outweigh the benefits.  Consideration set: If the consideration set contains a number of attractive alternatives, consumers will be motivated to engage in external search to decide which alternative to select. On the other hand, a consideration set that contains only one or two brands reduces the need to search for information.  Relative brand uncertainty: When consumers are uncertain about which brand is the best, they are more motivated to engage in external search.  Type of product: People prefer to search more when they want something hedonic (vs. functional) because they feel that their preferences for hedonic products is more unique to them.  Attitudes toward search: Researchers have identified two groups of Internet searchers. Experienced searchers are the most enthusiastic and heaviest users of the Internet, whereas moderate and light users see it as a source of information only, not a source of entertainment or fun.  Discrepancy of information: Whenever consumers encounter something new in their environment, they will try to categorize it by using their stored knowledge. If it does not fit into an existing category, consumers will try to resolve this incongruity by engaging in information search. k. External search is also strongly influenced by the consumer‘s ability to process information, influenced by four variables.  Consumer knowledge: Researchers have linked objective knowledge to information search. o Subjective knowledge—The consumer‘s perception about what they know relative to what others know. o Objective knowledge—The actual information stored in memory that can be measured with a formal knowledge test 127 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Cognitive abilities: Consumers with higher basic cognitive abilities, such as a high IQ and the ability to integrate complex information, not only are more likely to acquire more information than consumers with little or no knowledge but also are able to process this information in more complex ways.  Consumer affect: Positive affect results in more efficient processing, whereas negative affect appears to make judgments both less efficient and more effortful.  Demographics: Consumers with higher education tend to search more than less educated consumers do. l. Consumers who have the motivation and ability to search for information must still have the opportunity to process that information before an extensive search can take place.  Situational factors that might affect the search process include the following: o The amount of information o The information format (Exhibit 7.9 on PPT Slide 34) o The time available o The number of items being chosen m. The extent to which consumers search for external information has important implications for marketing strategy.  Marketers can make information readily available and easily accessible at the lowest cost and with the least consumer effort.  Companies should also provide information about salient and diagnostic attributes, particularly if the brand has a differential advantage.  Marketers can segment the market for a product or service according to search activity.  Determining which search activities are commonly used for a particular product helps marketers plan to meet the information needs of their targeted consumers.  Marketers can attempt to stimulate external search by providing information in a highly accessible manner. n. Researchers are interested in the types of information that consumers acquire during an external search.  Brand name is the most frequently accessed type of information because it is a central node around which other information can be organized in memory.  Price is often the focus of consumer search because it tends to be diagnostic and can be used to make 128 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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inferences about other attributes such as quality and value. o Even when consumers search on the basis of price, prior brand preference plays a role in how other information is processed. o The importance of price depends on the culture.  Attribute information for which consumers will search depends on which attributes are salient and diagnostic in the offering category. o. Consumers can be just as biased in their search for external information as they are during internal search.  Consumers tend to search for external information that confirms rather than contradicts their overall beliefs.  Confirmation bias can lead consumers to avoid important information, resulting in a less-thanoptimal decision outcome. p. External search follows a series of sequential steps that can provide further insight into the consumer‘s decision.  These steps include orientation, evaluation, and verification.  Consumers access different sources and use different decision criteria at different stages of the search process.  Consumers who are new to a product or service category will: o Start by searching for information about lowrisk, well-known brands o Then search lesser-known brands o Then consolidate the information leading to a preference for brands that provide the greatest utility. q. There are two major types of processes for external search.  Searching by brand o Consumers acquire all the needed information on one brand before moving on to the next.  Searching by attribute o Consumers compare brands in terms of one attribute at a time, such as by price. r. Different search strategies affect consumers‘ decision processes differently.  Consumers who process by brand remain high in uncertainty until the very end of the search process.  Those who search by attribute gradually reduce their uncertainty. s. Marketing implications include the following: 129 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Marketers have to make the specific information that consumers seek easily and readily available by emphasizing it in communications, whether printed, online, broadcast, accessed through mobile app, or presented through the sales force.  Marketers should be sure that their offerings perform well on attributes that are heavily accessed, including price.  Marketers can develop search maps using data about consumers‘ online search patterns for products at a particular retailer (e.g., Amazon.com). Based on these maps, marketers can see which brands are the strongest competitors and on which attributes they compete.  Many U.S. retailers offer a price-matching guarantee to reassure consumers about their low prices, and some also accept competitors‘ discount coupons as an added inducement.  Companies can pay search sites such as Google to make brand information available in a prominently positioned sponsored link when consumers perform certain keyword searches. t. Discussion Activity 2: Pose the questions to the class.

(PPT Slide 40) 5–10 minutes total  List some differences in consumers that may make some more likely than others to search for information. o As the motivation to process information increases, external search will generally be more extensive. Eight factors increase our motivation to conduct an external search. Consumer differences that impact the likelihood of searching for information may include the following: (a) Consumers with high enduring involvement with a product category are more likely to seek out information on a regular basis. (b) Consumers who face riskier decisions engage in more external search activity. (c) Consumers who perceive the search benefits to be high relative to its costs will engage in more search activity. (d) Consumers faced with a consideration set that contains only one or two brands will note need to search for as much information.

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(e) Consumers who want something hedonic (vs. functional) will search more because they feel that their preferences for hedonic products is more unique to them. (f) Consumers who dislike the search process will do little of it. (g) Consumers who are being observed with search less and may even avoid purchase altogether. (h) Consumers researching experience goods tend to spend extra time searching. (i) Consumers researching search goods tend to search a wider variety of sources but spend less time on each What are the marketing implications for the fact that some will search more than others? o Marketers can make information readily available and easily accessible at the lowest cost and with the least consumer effort. o Companies should also provide information about salient and diagnostic attributes, particularly if the brand has a differential advantage. o Marketers can segment the market for a product or service according to search activity. o Determining which search activities are commonly used for a particular product helps marketers plan to meet the information needs of their targeted consumers. o Marketers can attempt to stimulate external search by providing information in a highly accessible manner. o Companies can create interesting and engaging games to stimulate consumers to search.

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

50.

How does a discrepancy between the ideal state and the actual state affect consumer behavior?  Answer: The difference between the ideal state and the actual state equates to problem recognition. The degree of discrepancy can strongly influence consumer behavior.

Marketers attempt to put consumers in a state of problem recognition in effort to stimulate the decision process.

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Without problem recognition, marketing efforts are likely to be less effective because the consumer may not be motivated to process information.

51.

What factors affect the inclusion of brands in the consideration set, and why would a company want its brand in the consideration set?  Answer: The consideration set is affected by prototypicality, a brand‘s familiarity, goals and usage situations, brand preference, and retrieval cues. A company wants its brand to be part of the consideration set, as this is the set of alternatives that consumers evaluate when making a choice. If a brand is not part of a consumer‘s consideration set, then that brand will not likely be the one purchased.

52.

How does confirmation bias operate in internal and external searches for information?  Answer: Consumers tend to recall information that reinforces or confirms their beliefs. This confirmation bias will lead consumers to selective perception. We are more likely to recall information about brands we like or have previously chosen than about brands we dislike or have rejected.

53.

What five broad groups of sources can consumers consult during external search?  Answer: Consumers can acquire information from five major categories of external sources: retailer search, media and social media search, interpersonal search, independent search, and experiential search.

54.

How do involvement and perceived risk, perceived costs and benefits, and the consideration set affect a consumer‘s motivation to conduct an external search?  Answer: In general, as the motivation to process information increases, external search will be more extensive. Involvement, perceived risk, perceived costs and benefits, and the consideration set all affect our motivation to conduct an external search. Motivation increases when involvement, perceived risk, and perceived costs and benefits increase. Additionally, when we are familiar with a brand and that brand is part of our consideration set, we are more likely to be motivated to gather information through external searching. Finally, a consideration set that contains a large number of attractive alternatives motivates the consumer to engage in external search, to decide which alternative to select.

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55.

When would a consumer be more likely to conduct an external search by brand rather than by attribute? Which search process would a marketer prefer consumers to use—and why?  Answer: Consumers with more product knowledge tend to process by brand because they have more brand-based knowledge. Consumers also are more likely to process information by brand if information is presented to them by brand, as it is in most stores. Marketers of wellestablished brands might prefer a consumer to process by brand. It is thought that consumers will use the high brand equity as a symbol of quality. However, there may be situations in which a particular brand excels on a certain attribute. Marketers in this situation attempt to highlight these differences. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

14.

Discussion: Problem Resolution Motivational Factors (LO 71) Duration 5 minutes. 

What motivates a consumer to resolve a recognized problem? o

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Answer: The degree of difference between the ideal state and the actual state motivates a consumer to resolve a recognized problem. The greater the difference between the two states, the more likely the consumer is to seek a change.

Is this a static situation? Or can it be influenced by other factors? o

Answer: This difference is dynamic. It changes as other factors change such as lifestyle, needs and wants, messages from advertisers, family demographics, etc.

15.

Discussion: The Accuracy of Internal Search (LO 7-2) Duration 5 minutes. 

When conducting an internal search, what are three factors besides recall and motivation that can result in a lessthan-optimal judgment or decision?

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o

Answer: In addition to being influenced by factors that affect what we recall, we all have processing biases that alter the nature of internal search. These search biases can sometimes lead to the recall of information that results in a less-than-optimal judgment or decision. Three biases have important implications for marketing: confirmation bias, inhibition, and mood.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

13.

Group Activity: Advertising Analysis (LO 7-1) Duration 45– 60 minutes. 

Working in pairs or small groups, have students identify 20 magazine, television, or social media advertisements that they think are trying to instigate problem recognition in consumers. Have them group the ads into those they think are (a) trying to influence the ideal state and (b) trying to create dissatisfaction with the actual state. Ask them to relate each group of ads to the factors discussed in the chapter on influencing both the ideal state and the actual state. They should be prepared to come back to class and discuss which types of ads they think are effective and why. o

Students should consider how the ads have tried to create a new ideal state and/or shift consumer preferences by attempting to create dissatisfaction with the actual state. In addition, students should analyze how the marketer has tried to position their product as the solution to the consumer‘s problem.

14.

Writing Activity: Marketer Recommendations (LO 7-3) Duration 30 minutes. 

The type of information that is sought by consumers may be different depending on the product. Have students select a product or service category (or assign one) and develop a list of the types of information they believe are most likely to be searched for. They should then develop a set of recommendations for marketers in this category, given their list.

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o

Students‘ responses will vary. Information that consumers acquire during an external can potentially play a crucial role in influencing the consumers‘ judgments and decision-making. When searching external sources, consumers usually acquire information about brand name, price, and other attributes.

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TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 136 List of Student Downloads .......................................... 136 Chapter Objectives ................................................. 136 Complete List of Chapter Activities and Assessments ................ 137 Key Terms .......................................................... 138 What's New in This Chapter ......................................... 139 Chapter Outline .................................................... 140 End-Of-Chapter Questions for Review and Discussion ................. 151 Additional Discussion Questions .................................... 153 Additional Activities and Assignments .............................. 154

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore high-effort judgments and decisions. To be successful, marketers must understand the types of judgments that consumers make and the criteria that most influence their buying decisions. In addition, all marketers must understand the emotions and feelings that influence these consumer decisions.

Judgments involve forming evaluations or estimates of the likelihood of events are not always objective, whereas decisions entail a choice between options or courses of action. Two types of judgments are likelihood and goodness or badness; both of which can be made by recalling past judgments using imagery or an anchoring and adjustment process.

Once consumers recognize a problem, they may address it using cognitive decision-making models (deciding in a rational, systematic manner) or affective decision models (deciding based on feelings or emotions). Consumers face several other decisions in high-effort situations: which brands to consider (developing the consideration set); what‘s important to the choice (affected by goals, timing, and decision framing); what offerings to choose; whether to make a decision now; and what to do when alternative cannot be compared.

In thought-based decisions about offerings, consumers may use compensatory or noncompensatory models; process by brand or by attribute; and consider gains versus losses. Feeling-based decisions about offerings may rely on appraisals and feelings, affective forecasts and choices, and imagery. Finally, three types of contextual factors can influence the decision process: 1) consumer characteristics; 2) decision characteristics; and 3) the presence of a group.

By carefully analyzing the factors that impact judgment and decisionmaking, marketers can acquire valuable insights that help them develop and market offerings to consumers.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 136 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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8-1

Distinguish between judgment and decision-making.

8-2

Describe the types of decisions consumers face in situations where motivation, ability, and opportunity to process are high.

8-3

Understand the two types of cognitive-decision models that consumers use in a purchase situation.

8-4

Discuss the role of appraisals and feelings, affective forecasting, and imagery in high-effort decisions.

8-5

Discuss the high-effort situations of delaying a decision or making a decision when the alternatives cannot be compared.

8-6

Outline the ways that consumer characteristics, decision characteristics, and other people can influence high-effort decisions.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 8-1 8-1 8-3 8-4 8-1 – 8-6

Activity/Assessment

Polling Activity Discussion Activity 1 Discussion Activity 2 Group Activity Learn It: Concept Check Quiz: Chapter 8 Judgment and Decision-Making Based on High-Effort 8-1 – 8-6 Apply It: Assignment: Chapter 8 Judgment and Decision-Making Based on High-Effort 8-1 – 8-6 Apply It: Case Activity: Chapter 8 Judgment and Decision-Making Based on High-Effort

Source (i.e., PPT slide, Workbook) PowerPoint Slide 4 PowerPoint Slide 11 PowerPoint Slide 28 PowerPoint Slide 35 MindTap Learning Path Chapter 8 Folder

Duration

MindTap Learning Path Chapter 8 Folder

35–45 mins.

MindTap Learning Path Chapter 8 Folder

35–45 mins.

5 mins.

5 mins.

5 mins.

20–25 mins.

35–45 mins.

[return to top]

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KEY TERMS Affective decision-making model: The process by which consumers base their decision on feelings and emotions.

Affective forecasting: A prediction of how you will feel in the future.

Alternative-based strategy: Making a noncomparable choice based on an overall evaluation.

Anchoring and adjustment process: Starting with an initial evaluation and adjusting it with additional information.

Attraction effect: When the addition of an inferior brand to a consideration set increases the attractiveness of the dominant brand.

Attribute balancing: Picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes.

Attribute processing: Comparing brands, one attribute at a time.

Attribute-based strategy: Making a noncomparable choice by making abstract representations of comparable attributes.

Brand processing: Evaluating one brand at a time.

Cognitive decision-making model: The process by which consumers combine items of information about attributes to reach a decision.

Compensatory model: A mental cost-benefit analysis model in which negative features can be compensated for by positive ones.

Compromise effect: When a brand gains share because it is an intermediate rather than an extreme option.

Conjunctive model: A noncompensatory model that sets minimum cutoffs to reject ―bad‖ options.

Cutoff level: For each attribute, the point at which a brand is rejected with a noncompensatory model.

Decision framing: The initial reference point or anchor in the decision process.

Decision-making: Making a selection among options or courses of action.

Disjunctive model: A noncompensatory model that sets acceptable cutoffs to find options that are ―good.‖ Elimination-by-aspects model: Similar to the lexicographic model but adds the notion of acceptable cutoffs.

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Emotional accounting: The intensity of positive or negative feelings associated with each mental ―account‖ for saving or spending.

Endowment effect: When ownership increases the value of an item.

Estimation of likelihood: Judging how likely it is that something will occur.

Extremeness aversion: Options that are extreme on some attributes are less attractive than those with a moderate level of those attributes.

Imagery: Multi-sensory mental representation (image) of a stimulus or an event.

Inept set: Options that are unacceptable when making a decision.

Inert set: Options toward which consumers are indifferent.

Judgment: Evaluation of an object or estimate of likelihood of an outcome or event.

Judgment of goodness/badness: Evaluating the desirability of something.

Lexicographic model: A noncompensatory model that compares brands by attributes, one at a time in order of importance.

Mental accounting: Categorizing spending and saving decisions into ―accounts‖ mentally designated for specific consumption transactions, goals, or situations.

Metacognitive experiences: How the information is processed beyond the content of the decision.

Multiattribute expectancy-value model: A type of brand-based compensatory model.

Noncomparable decision: The process of making a decision about products or services from different categories.

Noncompensatory model: A simple decision model in which negative information leads to rejection of the option. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:   

Updated learning objectives New opening vignette Numerous new marketing examples 139

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  

Numerous recent academic studies added New and updated exhibits Added discussion and exhibit on picky shoppers

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XXXIII.

High-Effort Judgment Processes (LO 8-1, PPT Slides 3–11) a. Polling Activity: Conduct a poll with the class. (PPT Slide 4) 5 minutes total  Which do you think would be most important in consumer behavior—judgment or decision-making? o Student‘s initial opinions will vary. As they will learn in the following slides, judgments involve forming evaluations or estimates—not always objective—of the likelihood of the occurrence of events, whereas decisions entail choosing from among options or courses of action.

Judgment is a critical input into the decision process. These judgments can serve as important inputs into a consumer‘s decision, but they do not require that a decision be made. From a marketing aspect, a judgment without a decision will not result in a sale, since acquisition, usage, and disposition all involve some sort of consumer decision. b. Exhibit 8.1 (PPT Slide 5) provides an overview of the chapter. c. Judgment: Evaluation of an object or estimate of likelihood of an outcome or event  Decision-making: Making a selection among options or courses of action  Judgment is a critical input into the decision process, but judgments do not require a decision.  Marketers need to understand judgments about (1) likelihood, (2) goodness or badness, and (3) mental and emotional accounting. d. Estimation of likelihood: Judging how likely it is that something will occur

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

An estimate of the likelihood that a product will break down, others will like it, or that it will satisfy our needs  Assessment of the likelihood that an ad is truthful e. Judgment of goodness/badness: Evaluating the desirability of something  Not only affected by the attributes of a product but also affected by how we feel  Anchoring and adjustment process: Starting with an initial evaluation and adjusting it with additional information  Imagery: Multi-sensory mental representation (image) of a stimulus or an event f. Mental accounting: Categorizing spending and saving decisions into ―accounts‖ mentally designated for specific consumption transactions, goals, or situations  Emotional accounting: The intensity of positive or negative feelings associated with each mental ―account‖ for saving or spending  Mental and emotional accounting will vary from consumer to consumer, so marketers must research and understand the attitudes and feelings of their target markets. g. Biases and other factors may compromise the quality of the consumer‘s decision and affect consumer judgment in a variety of ways.  Confirmation bias: Consumers with this bias will focus more on judgments that confirm what they already believe and will hold those judgments with more confidence. They may also ignore information that runs counter to their judgments.  Self-positivity bias: Consumers have a selfpositivity bias when making these judgments about the likelihood that bad outcomes will happen.  Negativity bias: Consumers with this bias give negative information more weight than positive information when they are forming judgments.  Mood and bias: Mood can serve as the initial anchor for a judgment. Moods also bias consumers‘ judgments by reducing their search for and attention to negative information. Lastly, mood can bias judgments by making consumers overconfident about the judgments they are reaching.  Prior brand evaluations: Favorable brand name may ―block‖ learning about quality-revealing product attributes that should affect consumers‘ judgments.

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

Prior experience: Customers learn from their previous experiences, which can be helpful but may also bias judgments during future decisions.  Difficulty of mental calculations: When comparing various prices or discounts, the ease or difficulty of calculating the difference will affect consumers‘ judgment of the size of these differences.  “Level effect”: This bias occurs when people put more emphasis on the left-most digit in a number. h. Marketing implications include the following:  Marketers can do several things to make sure that their brand serves as a positive anchor in anchoring adjustment decisions. o Focus consumers‘ attention on those attributes that place the brand as the best in its class. o Try to affect the set of other products that consumers use in their adjustment. o Expose consumers to brand extensions, where the existing brand name and its positive associations often serve as the anchor for judgments of a new product.  Marketers can also affect judgments of goodness and badness in several ways. o Make consumers feel good (e.g., by manipulating their moods or priming consumers with positive feelings before giving them information). o Ask consumers to imagine the attributes or benefits of a product or service.  Lastly, marketers can try to affect consumers‘ perceptions of how probable things are. i. Discussion Activity 1: Pose the questions to the class.

(PPT Slide 11) 5 minutes total  In what context would a product that is not in a consumer‘s consideration set be selected by a consumer? o A product that is not in a consumer‘s consideration set will be selected only if the consumer is unexpectedly exposed to it.  What is a real-life example? o For example, a consumer might consider an unfamiliar brand of salsa if another shopper happens to say, ―I just love this brand‖ or if a friend serves it at a party.

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XXXIV.

High-Effort Decisions and High-Effort Decision-Making Processes (LO 8-2, PPT Slides 12–18) a. In high-effort situations, consumers are often confronted with a variety of different types of decisions to make.

Exhibit 8.2 (PPT Slide 13) outlines the major ones. b. Acquisition, usage, and disposition all involve some sort of consumer decision. c. When faced with brands to consider, consumers often first categorize them.  Inept set: Options that are unacceptable when making a decision  Inert set: Options toward which consumers are indifferent  Consideration set—Options among which consumers want to choose o Affects what brands consumers are choosing among and hence whom the marketer is competing against o Decisions tend to be easier when consideration set contains brands easily compared o Attraction effect: When the addition of an inferior brand to a consideration set increases the attractiveness of the dominant brand  Some consumers are very picky shoppers, meaning that they consider very few options or reject many options (Exhibit 8.3 on PPT Slide 15).  The most important implication is that it is critical for a company to get its brand into the consumer‘s consideration set. o Use repetition of the brand name and messages in marketing communications to ensure a brand name is ―top of mind.‖ o Promote comparisons of the brand with inferior rather than with equal or superior competitors. o Increase sales of a high-margin item simply by offering a higher-priced option. d. Consumers‘ determination of which criteria are relevant to a decision and how important each criterion is to their decision are influenced by three factors.  Goals o Affect the criteria that will drive a consumer‘s choice  Time o Low-level construals—specific, concrete elements impacting immediate decisions o Hedonic aspects—for decision outcomes realized far in the future 143

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



XXXV.

Framing o Decision framing: The initial reference point or anchor in the decision process o Priming certain attributes can significantly alter consumers‘ judgments. o Product desire can be impacted by unexpected positive or negative framing.

Goals, decision timing, and framing have important implications for positioning and market segmentation. o Position an offering as being consistent with consumers‘ goal-related or usage categories. (a) Identify and market to large segments of consumers who have similar goal-related or usage-context categories. o Frame or reframe the decision. (a) Benefits emphasis, gain vs. loss, physical location of product, etc. o Consider the timing of the consumer‘s decision when planning and promoting merchandise assortments. (a) Consumers prefer larger assortments when they are making an immediate decision but prefer smaller assortments when the decision is distant in time or in location.

Deciding What Brand to Choose: Thought-Based Decisions (LO 8-3, PPT Slides 19–28) a. Decision-making models describe how consumers make higheffort decisions.  Cognitive decision-making model: The process by which consumers combine items of information about attributes to reach a decision  Affective decision-making model: The process by which consumers base their decision on feelings and emotions  Compensatory model: A mental cost-benefit analysis model in which negative features can be compensated for by positive ones  Noncompensatory model: A simple decision model in which negative information leads to rejection of the option o Cutoff level: For each attribute, the point at which a brand is rejected with a noncompensatory model  Exhibit 8.5 (PPT Slide 21) illustrates the types of cognitive choice models.

144

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o

Cognitive models describe the processes by which consumers combine information about attributes to reach a decision in a rational, systematic manner. o Cognitive decision-making models can be classified along two major dimensions: (a) whether processing occurs one brand at a time or one attribute at a time, and (b) whether they are compensatory (bad attributes can be compensated for by good ones) or noncompensatory (a bad attribute eliminates the brand).  Given that different models can lead to different choices, marketers may sometimes want to change the process by which consumers make a decision. o If most consumers are using a compensatory strategy, switching them to a noncompensatory strategy may be advantageous. (a) By convincing consumers not to accept a lower level of an important attribute— that is, not to compensate for the attribute—marketers might prompt some consumers to reject competitors‘ products from consideration. o When consumers reject a brand using a noncompensatory strategy, marketers can try to switch them to using a compensatory strategy by arguing that other attributes compensate for a negative. b. Some consumer decisions are based on brands.  Brand processing: Evaluating one brand at a time  Multiattribute expectancy-value model: A type of brand-based compensatory model o Example: the theory of reasoned action (TORA) o Emotionally and cognitively taxing  Conjunctive model: A noncompensatory model that sets minimum cutoffs to reject ―bad‖ options o Rules out unsuitable alternatives as soon as possible  Disjunctive model: A noncompensatory model that sets acceptable cutoffs to find options that are ―good‖ o Weight placed on positive information  Exhibit 8.6 (PPT Slide 24) illustrates the application of various decision models.  Brand-based compensatory models help marketers understand which alternatives consumers may choose or reject and the beliefs that consumers have about the outcomes or attributes associated with a product.

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o

Stress positive outcomes or attributes associated with a decision. o Address shortcomings by altering the product and communicating its improvements to consumers. o Use decision models to better plan communications. c. Consumers may also make decisions based on product attributes.  Attribute processing: Comparing brands, one attribute at a time o Preferred by consumers, but available information does not always facilitate this method  Lexicographic model: A noncompensatory model that compares brands by attributes, one at a time in order of importance  Elimination-by-aspects model: Similar to the lexicographic model but adds the notion of acceptable cutoffs  These models help marketers determine which attributes or outcomes exhibit the greatest differences among brands and use this knowledge to improve and properly position their brand. d. Research shows that the decisions consumers make also depend on whether the consumer is motivated to seek gains or to avoid losses.  Prospect theory—Losses loom larger than gains for consumers even when the two outcomes are of the same magnitude  Endowment effect: When ownership increases the value of an item  Consumers may avoid making decisions to a greater degree when a decision involves losses relative to gains. o Marketers must try to reduce risks and potential losses. o Marketers should carefully consider price increases and frame them as a gain when possible.  The consumer‘s promotion- and prevention-focused goals will impact this process. e. Discussion Activity 2: Pose the questions to the class.

(PPT Slide 28) 5 minutes total  What is the distinction between brand processing and attribute processing? o Brand processing involves evaluating one brand at a time.

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o



XXXVI.

Attribute processing occurs when consumers compare across brands one attribute at a time.

Why are these differences important to marketers? o Understanding the differences between brand processing and attribute processing can help marketers shape consumers' perceptions of their brand. By aligning marketing messages and strategies with the intended processing style, marketers can attempt to influence how consumers perceive their brand and products. o In addition, because brand processing and attribute processing represent two distinct approaches that consumers use to evaluate and make choices, understanding which processing style consumers tend to employ can help marketers tailor their messaging and strategies accordingly.

Deciding What Brand to Choose: High-Effort Feeling-Based Decisions (LO 8-4, PPT Slides 29–35) a. Consumers make decisions based on their emotions.  Because the choice feels right rather than because of a systematic evaluation of offerings.  Because the chosen option feels like a perfect fit, regardless of prior cognitive processing. b. Brands can be associated with positive or negative feelings, which can be recalled, playing a central role in the decision process.  Consumer feelings are particularly critical for offerings with hedonic, symbolic, or aesthetic aspects.  Feelings also influence decisions about what we will consume and for how long. c. Appraisal theory examines how our emotions are determined by the way that we think about or ―appraise‖ the situation.  Explains how and why certain emotions (including those carried over from previous decisions) can affect future judgments and choices.  Even the emotional reaction to a desired product being out of stock can affect a consumer‘s feelings about and appraisals of subsequent purchases in the same environment.  Consumers also consider how they will feel if a hedonic experience is interrupted.  Consumers also appraise their feelings of envy when considering a purchase.

147

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d. Affective forecasting: A prediction of how you will feel in the future  Affective forecasting occurs when consumers try to predict how they will feel in a future consumption situation. (Exhibit 8.8 on PPT Slide 32)  Specifically, they try to predict what feelings they will have, how strongly these feelings will be, and how long the feelings will last. e. Imagery also plays a key role in emotional decision-making.  Ads sometimes try to induce consumers to imagine themselves in certain situations. o When they do, consumers may experience the feelings and emotions that are associated with this situation.  Adding information makes imagery processing easier because more information makes it easier for consumers to form an accurate image.  Imagery encourages brand-based processing. f. Marketers can employ a variety of advertising, sales, and promotional techniques to add to the emotional experience and imagery surrounding an offering.  Good service or pleasant ambiance can produce consumers‘ positive feelings and experiences that may influence their future choices.  Consumers are happier with customer service agents who use concrete language. g. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 35) 20–25 minutes total  As a group, select a decision context in which the decision could be based on both cognitive and affective processes.  Describe how the decision would be made differently using each process.  Discuss the marketing implications of of each type of processing. o Students‘ examples will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

XXXVII.

Additional High-Effort Decisions (LO 8-5, PPT Slides 36–38) a. Consumers in high-effort situations face two more key decisions:  Should they delay the decision or make it right now?

148

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

How can they make a decision when the alternatives cannot be compared? b. Decision delay occurs in various situations.  If consumers perceive the decision to be too risky or if it entails an unpleasant task  If they have too many attractive choices that are difficult to compare  In situations where they are fearful (such as healthcare decisions)  If they feel uncertain about how to get product information c. When alternatives have different attributes, making comparisons among them can be difficult.  Noncomparable decision: The process of making a decision about products or services from different categories  Alternative-based strategy: Making a noncomparable choice based on an overall evaluation (also called top-down processing)  Consumers typically use price to screen alternatives for the consideration set rather than as the main basis of comparison among noncomparable alternatives.  Marketers can attempt to identify the abstract attributes that consumers use to make these noncomparable evaluations.

XXXVIII.

What Affects High-Effort Decisions? (LO 8-6, PPT Slides 39–44) a. Characteristics of (a) consumers, (b) the decision, and (c) the group that they are a part of can also affect their decisions. b. Characteristics associated with consumers can affect the decisions they make.  Expertise  Mood  Time Pressure  Extremeness aversion: Options that are extreme on some attributes are less attractive than those with a moderate level of those attributes o Compromise effect: When a brand gains share because it is an intermediate rather than an extreme option o Attribute balancing: Picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes  Metacognitive experiences: How the information is processed beyond the content of the decision 149

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c. Decision characteristics can affect consumer choices.  Information availability o Providing relevant information is important. o Too much information can lead to information overload. o Numerical attribute information is more quickly compared than verbal information.  Information format o The organization of information can affect which decision-making strategy consumers use. o The use of a narrative format for presenting information about brands can impact consumers‘ choices.  Trivial attributes d. Consumers‘ decisions can be affected by the presence of other people, or even a relationship with someone else.  Many decisions are made in a group context, by balancing two sets of goals. (Exhibit 8.11 on PPT Slide 43) o Goals that are attained by the individual‘s action alone (individual–alone) o Goals that are achieved depending on the actions of both the individual and the group (individual– group)  Because consumers may have to choose a different alternative to achieve each set of goals, they cannot always achieve both sets of goals simultaneously in group settings. o Trying to achieve individual–group goals can result in either group–variety or group– uniformity, while trying to achieve individual– alone goals allows the consumer to satisfy their own taste through the decision.  Consumers face three types of individual–group goals: o Self-presentation: Consumers seek to convey a certain image through the decisions they make in a group context o Minimizing regret: Consumers who are risk averse and want to minimize regret will tend to make choices that are similar to those made by the rest of the group, leading to uniformity at the group level. o Information gathering: Consumers can learn more about the different choices each has made through interaction with other group members.

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e. Marketers can develop some interesting strategies by understanding how consumer characteristics affect higheffort decisions.  Sell a new, improved model alongside the old model at the same price.  Think about the information in their ads and on their packaging.  Provide carefully planned decision aids such as product filtering tools, product comparison tools, or product recommendations.  Use communications to make individual–group goals a higher priority in group situations. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

56.

How does consumer judgment differ from consumer decisionmaking?  Answer: Judgment is the process of estimating the likelihood of an event or making evaluations. Decisionmaking is the act of making a selection among options or courses of action.

57.

What is the anchoring and adjustment process, and how does it affect consumer judgment?  Answer: The anchoring and adjustment process is when a consumer starts with an initial evaluation and adjusts it accordingly with additional information. The nature of the initial judgment is extremely important, because it greatly affects the outcome of consumer judgments. Since consumers tend to believe information that is consistent with their beliefs, it is often difficult to significantly change consumers‘ evaluations from this initial anchoring position.

58.

How do consumers use compensatory and noncompensatory decision-making models?  Answer: In theory, consumers combine items of information about attributes to reach rational, systematic decisions.

Consumers in different purchase situations use different decision-making models. A combination of compensatory models (i.e., cost-benefit analysis) and non-compensatory models (i.e., negative information leads to rejection of options) can be employed in the decision-making process.

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59.

Explain how consumers use their goals, decision timing, and framing to decide which criteria are important for a particular choice.  Answer: Consumers will examine choice criteria that are consistent with their consumption goals. The timing of a decision, such as whether it is immediate or in the future, influences the level of construals consumers use in making the decision. The framing of the decision can influence how important specific choice criteria will be in the decision.

60.

Why do marketers need to know that attribute processing is easier for consumers than brand processing?  Answer: When marketers realize situations in which it is easier for the consumer to compare alternatives on a small number of attributes (sometimes one attribute), they can adjust their marketing mix variables accordingly. Marketers can highlight the quality and uniqueness of their product with respect to the attribute that is important to the consumer. Marketers often attempt to convey a positive image for the overall brand when the consumer may be making comparisons on a particular attribute.

61.

How do appraisals and feelings as well as affective forecasting influence consumer decision-making?  Answer: Consumers‘ decisions are often based on how they appraise a particular situation. Feelings and emotions can override the careful cognitive examination of a product‘s attributes. In addition to current feelings influencing decisions, consumers also engage in affective forecasting, or predicting what they will feel in the future. Affective forecasting allows the consumer to imagine how a purchase will make the consumer feel in the future.

62.

Under what circumstances do consumers use an alternativebased strategy or an attribute-based strategy for decisionmaking?  Answer: When the alternatives are less comparable, consumers tend to use an alternative-based strategy because it is harder for them to create attribute abstractions.

Alternative-based strategies also suit consumers who have well-defined goals because they can easily recall the various options and their results.

63.

In what ways do the characteristics of consumers, the decision, and the group context influence consumer decisionmaking?  Answer: Consumer characteristics such as their level of expertise, their mood, and the amount of time pressure can influence the decision-making strategies they use.

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

Additionally, most consumers exhibit extremeness aversion.

Other consumer characteristics that can influence consumers‘ decisions are metacognitive experiences.

Characteristics of the decision itself, including the availability, quality and format of information, and the presence or absence of trivial attributes, can all influence consumers‘ decision strategies.

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ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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: Anchoring and the Adjustment Process (LO 8-1) Duration 5 minutes. 

Explain how consumers use anchoring and the adjustment process in decision making, using an example. o

Answer: Anchoring is the standard against which product prices are compared to evaluate their reasonableness. Imagine that a travel agency quoted a consumer a price of $498 for an airline ticket for a route they just recently traveled for $328. They most likely would say the new fare was high because they would be comparing it to the $328 anchor. However, a businessperson, whose company normally purchases their ticket at full fare, $950, would think that $498 was a great bargain because their anchor is much higher. The consumer‘s anchor price can be based on information in the external environment, an affective response or information in memory (in this case, what the consumer paid for the initial trip), or consumer values or norms.

o

Consumers update or adjust the anchor as they receive new information. For example, the pleasure traveler might talk to a trusted friend who says there have been airfare increases across the board and that they have not been able to get a $328 ticket for months.

The cheapest fare they have found is $650. The consumer may increase their anchor price based on this new information from their friend.

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17.

Discussion: Applying Thought-Based Decision-Making Models (LO 8-2) Duration 10–15 minutes. 

Choosing a college or university to attend is a high-effort decision situation. Describe how you would make the decision using each of the following: (a) compensatory brand-processing models, (b) compensatory attributeprocessing models, (c) noncompensatory brand-processing models, and (d) noncompensatory attribute-processing models. Explain how you would design a marketing effort to influence each of these strategies. o

Answer: Students‘ responses will vary, but they should align with the specific ways each model is applied to consumer decision-making.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

15.

At-Home Activity: Consumer Decision-Making Interviews (LO 8-1 – 8-6). 

Have students to select a product or service category for which they expect the consumers‘ motivation, ability, and opportunity to process information to be high. Have them ask three consumers to describe in detail how they would go about making a decision for this product or service category. They should first ask them which brands they would consider (consideration set), and then ask them to describe the specific steps they would go through in making a decision. Which brand would they choose? After collecting this information, students should answer the following questions: o

How do the descriptions provided by the consumers compare with the decision models discussed in this chapter?

o

How do these processes vary for different consumers?

o

Why did one brand tend to be chosen over another?

o

If these processes were representative of many consumers, how might this information be used to develop a marketing strategy?

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Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 9: Judgment and Decision-Making Based on Low-Effort

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 156 List of Student Downloads .......................................... 156 Chapter Objectives ................................................. 156 Complete List of Chapter Activities and Assessments ................ 157 Key Terms .......................................................... 157 What's New in This Chapter ......................................... 159 Chapter Outline .................................................... 159 End-Of-Chapter Questions for Review and Discussion ................. 167 Additional Discussion Questions .................................... 169 Additional Activities and Assignments .............................. 172

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to examine the nature of consumer judgment and decision-making when MAO (and consequently elaboration) is low. In these situations, consumers are more likely to use simplified heuristics or decision rules. Consumers use the representativeness and availability heuristics to make judgments; that is, they base judgments on comparisons to a prototype or on accessibility of information, respectively.

The focus here is on the cognitive and affective shortcuts or heuristics that consumers use to make judgments and decisions, as well as on how consumers make unconscious and conscious decisions in loweffort situations. Low-effort decisions are sometimes made unconsciously, but other times, consciously. Unconscious decisions may be strongly influenced by environmental cues. Conscious low-effort decision making can follow a hierarchy of effects in which thinking leads to behaving and results in feeling; in contrast, the hierarchy of effects for high-effort decision making is typically thinkingfeeling-behaving. For simplicity, consumers making low-effort decisions may satisfice rather than optimize. They may also devise choice tactics over repeat purchase occasions through a process similar to operant conditioning. Cognitively based choice tactics include performance, habit, brand loyalty, price, and normative influence; affective-based choice tactics include affect referral, brand familiarity, variety seeking, and impulse buying.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 9-1

Identify the types of heuristics that consumers can use to make low-effort judgments.

9-2

Explain why marketers need to understand both unconscious and conscious decision-making processes in low-effort situations.

9-3

Understand how consumers learn to apply choice tactics through operant conditioning.

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9-4

Discuss how consumers make thought-based low-effort decisions using performance-related tactics, habit, brand loyalty, pricerelated tactics, and normative influences.

9-5

Describe how consumers make affect-based low-effort decisions using feelings as a simplifying strategy, brand familiarity, variety seeking, and impulse purchasing.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 9-2 9-2 9-3 9-4 9-5 9-1 – 9-5

Activity/Assessment

Polling Activity Discussion Activity 1 Group Activity 1 Discussion Activity 2 Group Activity 2 Learn It: Concept Check Quiz: Chapter 09 Judgment and DecisionMaking Based on LowEffort 9-1 – 9-5 Apply It: Assignment: Chapter 09 Judgment and Decision-Making Based on Low-Effort 9-1 – 9-5 Apply It: Case Activity: Chapter 09 Judgment and Decision-Making Based on Low-Effort

Source (i.e., PPT slide, Workbook) PowerPoint Slide 8 PowerPoint Slide 13 PowerPoint Slide 18 PowerPoint Slide 25 PowerPoint Slide 33 MindTap Learning Path Chapter 9 Folder

Duration

MindTap Learning Path Chapter 9 Folder

35–45 mins.

MindTap Learning Path Chapter 9 Folder

35–45 mins.

5 mins.

5-10 mins.

15-20 mins.

5 mins.

20–25 mins.

35–45 mins.

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KEY TERMS Affect: Low-level feelings.

Affect referral: A simple type of affective tactic whereby we simply remember our feelings for the product or service.

Affect-related tactics: Tactics based on feelings.

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Availability heuristic: Basing judgments on events that are easier to recall.

Base-rate information: How often an event really occurs on average.

Brand familiarity: Easy recognition of a well-known brand.

Brand loyalty: Buying the same brand repeatedly because of a strong preference for it.

Choice tactics: Simple rules of thumb used to make low-effort decisions.

Co-branding: An arrangement by which the two brands form a partnership to benefit from the power of both.

Deal-prone consumer: A consumer who is more likely to be influenced by price.

Habit: A learned behavior that involves regular performance of the same act repeatedly over time. Behaviors are often performed unconsciously and may be difficult to discontinue.

Impulse purchase: An unexpected purchase based on a strong feeling.

Law of small numbers: The expectation that information obtained from a small number of people represents the larger population.

Low-effort hierarchy of effects: Sequence of thinking-behavingfeeling.

Multibrand loyalty: Buying two or more brands repeatedly because of a strong preference for them.

Normative choice tactics: Low-elaboration decision-making that is based on others‘ opinions.

Operant conditioning: A process of learning drive by the use of rewards to reinforce desired behavior and punishment to discourage objectionable behavior.

Optimal stimulation level (OSL): The level of arousal that is most comfortable for an individual.

Performance-related tactics: Tactics based on benefits, features, or evaluations of the brand.

Price-related tactics: Simplifying decision heuristics that are based on price.

Representativeness heuristic: Making a judgment by simply comparing a stimulus with the category prototype or exemplar.

Satisfice: Finding a brand that satisfies a need even though the brand may not be the best brand.

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Sensation seeker: A consumer who actively looks for variety.

Shaping: Leading consumers through a series of steps to create a desired response.

Traditional hierarchy of effects: Sequential steps used in decisionmaking involving thinking, then feeling, then behavior.

Unity: When all the visual parts of a design fit together.

Variety seeking: Trying something different.

Vicarious exploration: Seeking information simply for stimulation.

Zone of acceptance: The acceptable range of prices for any purchase decision. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:     

Updated learning objectives Numerous new marketing examples Numerous recent academic studies added New and updated exhibits Expanded discussion of pricing tactics

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XXXIX.

Low-Effort Judgment Processes (LO 9-1, PPT Slides 3–6) a. Exhibit 9.1 (PPT Slide 4) provides an overview of the chapter. b. In low-effort processing situations, consumers tend to use heuristics or ways of simplifying the judgment or decision. c. Representativeness heuristic: Making a judgment by simply comparing a stimulus with the category prototype or exemplar

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

Suggests that companies position offerings close to a prototype that has positive associations in consumers‘ minds.  When the shortcut leads to a judgment that is negatively biased, marketers must take steps to overcome it. d. Availability heuristic: Basing judgments on events that are easier to recall  Law of small numbers: The expectation that information obtained from a small number of people represents the larger population  To capitalize on the availability bias: o Provide consumers with positive and vivid product-related experiences through the use of marketing communications or ask consumers to imagine such situations. o Attempt to stimulate positive word-of-mouth communication.  To overcome the availability bias: o Provide consumers with base-rate information about the general population.

XL.

Low-Effort Decision-Making Processes (LO 9-2, PPT Slides 7–13) a. Polling Activity: Conduct a poll with the class. (PPT Slide 8) 5 minutes total  What percentage of your shopping decisions would you estimate are made spontaneously and unconsciously while in the store or shopping online? o Students‘ responses will vary. As students will learn on the next slide, as much as 50 percent of all shopping decisions are made spontaneously and unconsciously while consumers are in the store. b. In some low-effort situations, consumers may make a decision without being consciously aware of how or why they are doing so.  As much as 50 percent of all shopping decisions are made spontaneously and unconsciously while consumers are in the store.  Unconscious choices may be strongly affected by environmental stimuli. o Marketers can use scent, music, color, displays, and other sensory cues to influence choices.  Evaluative conditioning can influence attitudes and unconscious brand choices.  Consumers may form accurate yet unconscious impressions through thin-slice judgments.

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

Certain choices represent goal-related behavior even though consumers are pursuing the goal almost automatically, without conscious thought. c. Traditional hierarchy of effects: Sequential steps used in decision-making involving thinking, then feeling, then behavior  Does not apply to all decision-making situations. d. Low-effort hierarchy of effects: Sequence of thinkingbehaving-feeling  The consumer enters the decision process with a set of low-level beliefs based on brand familiarity and knowledge that serve as the foundation for the decision or behavior.  After making the decision and while using the product, the consumer evaluates the brand and may or may not form an attitude, depending on how strongly the brand is liked or satisfies needs. e. Other decisions are made based on positive feelings rather than on beliefs or knowledge (feeling-behaving-thinking). f. Under low motivation and low processing opportunity, how a marketing message is framed will influence how consumers react.  A negatively framed marketing message is more effective than a positively framed message. g. Two other factors influence the low-MAO decision process.  The goal is not necessarily to find the best possible brand, called optimizing, as is the case with highelaboration decisions. o Instead, consumers are more willing to satisfice, to find a brand that is good enough to simply satisfy their needs.  Most low-elaboration decisions are made frequently and repeatedly. h. Choice tactics: Simple rules of thumb used to make loweffort decisions  Price tactics (it‘s the cheapest or it‘s on sale)  Affect tactics (I like it)  Performance tactics (it cleans clothes better)  Normative tactics (my mother bought it)  Habit tactics (I buy the same brand I bought last time)  Brand-loyalty tactics (I buy the same brand for which I have a strong preference)  Variety-seeking tactics (I need to try something different) 161 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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i. Discussion Activity 1: Pose the questions to the class.

(PPT Slide 13) 5-10 minutes total  How might unethical marketers take advantage of consumers in a low-elaboration situation? o Misleading advertising o Hidden costs and fees o Limited-time offers o Fake reviews and testimonials  What care must be taken to avoid taking advantage of consumers in these situations? o Transparency by marketers o Avoiding manipulative tactics o Compliance with regulations o Consumer empowerment through access to unbiased reviews and product information XLI.

Learning Choice Tactics (LO 9-3, PPT Slides 14–18) a. Operant conditioning: A process of learning drive by the use of rewards to reinforce desired behavior and punishment to discourage objectionable behavior  Reinforcement—Usually comes from a feeling of satisfaction when we as perceive that our needs have been adequately met o Increases the probability that we will purchase the same brand again o Reinforces the consumer‘s choice tactic  Punishment—When consumers have a bad experience with a product or service, form a negative evaluation of it, and never purchase it again o May lead consumers to reevaluate their choice tactic and use a different tactic next time b. Exhibit 9.2 (PPT Slide 16) illustrates the consumer learning process and shows how the outcome of a decision can help consumers learn which choice tactic to apply in a given situation. c. The choice tactics we use often depend on the product category that we are considering.  Depends on which brands are available and our experiences with them  Also influenced by amount of advertising, price variations, and the number and similarity of brands  Experiences help us learn what works for each product, and we use these tactics to minimize decision-making effort for future purchases. d. Group Activity 1: Break the class into small groups of three to five students and have them complete the activity 162

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followed by an instructor-led debrief with the class. (PPT Slide 18) 15–29 minutes total  Pick ten product or service categories in which lowelaboration decision making is likely to occur.  For each category, try to identify the type of choice tactic you would typically use.  Does this tactic differ across categories? If so, why?  How do you think you learned to use these tactics? o Students‘ responses will vary. This exercise helps students to understand that we follow patterns based on our perception/habits when it comes to decision-making.

XLII.

Low-Effort Thought-Based Decision-Making (LO 9-4, PPT Slides 19– 25) a. Performance-related tactics: Tactics based on benefits, features, or evaluations of the brand  The primary marketing strategy objective should be to increase the likelihood of satisfaction through offering quality.  Marketers should select product features or benefits that are important to consumers, help to differentiate the brand from competitors, and convince consumers that they will be satisfied if they buy the product.  Sales promotion strategies such as free samples, price deals, or coupons only work if product performance satisfies and reinforces the consumer. b. Habit: A learned behavior that involves regular performance of the same act repeatedly over time  Behaviors are often performed unconsciously and may be difficult to discontinue.  Characterized by (1) little or no information seeking and (2) little or no evaluation of alternatives.  Does not require a strong preference for an offering.  Getting consumers to acquire or use an offering repeatedly is important. o Shaping: Leading consumers through a series of steps to create a desired response  Sales promotion techniques can induce brand switching. o Introduce a new and unique benefit that satisfies consumers‘ needs better than existing brands. o Have strategic distribution policies.

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

Marketers do not want repeat-purchase customers to break their buying habits. o Offer comparable deals to build resistance to switching. o Use distribution and inventory control to prevent habitual consumers from switching brands. o Use advertising and other marketing communications can induce resistance to switching. c. Brand loyalty: Buying the same brand repeatedly because of a strong preference for it  Multibrand loyalty: Buying two or more brands repeatedly because of a strong preference for them  Identify brand-loyal consumers by focusing on consumer purchase patterns.  Develop loyalty through nonprice promotions or through less drastic price promotions.  Satisfy the consumer with a high-quality product.  Cultivate brand loyalty through brand-building sales promotions.  Market toward nonloyal or habitual consumers, except when a brand has a strong point of superiority or differentiation when compared with the competition. d. Price-related tactics: Simplifying decision heuristics that are based on price  Used when consumers perceive few differences among brands and when they have low involvement with the brands in the consideration set  Consumers consider how much they must pay in relation to the price of other relevant brands or to the price they previously paid for that product.  Zone of acceptance: The acceptable range of prices for any purchase decision  Consumer perceptions play an important role in the use of price-related tactics.  Deal-prone consumer: A consumer who is more likely to be influenced by price  Marketers can use a variety of pricing techniques, including coupons, price-offs, rebates, and two-forones, as long as the savings are at or above the just noticeable difference and within the zone of acceptance. e. Normative choice tactics: Low-elaboration decision-making that is based on others‘ opinions  Can result from: 164 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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o

Direct influence, in which others try to manipulate us o Vicarious observation, in which we observe others to guide our behavior o Indirect influence, in which we are concerned about the opinions of others  Particularly common among inexperienced consumers who have little knowledge  Online communication can increase its importance  Marketers can emphasize these motivations in advertising and can attempt to stimulate word-ofmouth communication. f. Discussion Activity 2: Pose the question to the class. (PPT Slide 25) 5 minutes total  While promotions can attract customers to try a different brand, what are the drawbacks to offering such promotions? o Sales promotion strategies only work if product performance satisfies and reinforces the consumer. They will not overcome dissatisfaction due to poor product quality or other factors.

Another caution is that consumers may perceive a price promotion as a signal of lower quality when they are not category experts, when the promotion is not typical of the industry, and when the brand‘s past behavior is inconsistent. Marketers must also contend with the fact that there is also now a much heavier focus by consumers on product quality.

XLIII.

Low-Effort Feeling-Based Decision-Making (LO 9-5, PPT Slides x) a. Affect: Low-level feelings  Most likely to be part of the decision process when the offering is hedonic (rather than functional) and when other factors, such as performance evaluations, price, habit, and normative influences, are not in operation  Affect-related tactics: Tactics based on feelings o Affect referral: A simple type of affective tactic whereby we simply remember our feelings for the product or service b. Brand familiarity: Easy recognition of a well-known brand  Co-branding: An arrangement by which the two brands form a partnership to benefit from the power of both c. By creating positive affect toward their brand, marketers can increase the probability that, all other things being equal, their brand will be selected.

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

One study showed that two key aspects of a product‘s design generate more positive affective responses to the product. o Unity: When all the visual parts of a design fit together o Prototypicality: The object is representative of its category  Brands that have positive cross-cultural affect can be marketed internationally.  Hedonic offerings—those that involve style or taste— rely heavily on affective associations. d. Variety seeking: Trying something different  Consumers seek variety for two major reasons: satiation and boredom. o Consumers may also seek variety in public situations because they anticipate that others will evaluate their decision more positively.  Variety seeking is most likely to occur when involvement is low, there are few differences among brands, and the product is more hedonic than functional.  Marketers can reduce‘ boredom simply by providing more variety in a product category.  Optimal stimulation level (OSL): The level of arousal that is most comfortable for an individual  Sensation seeker: A consumer who actively looks for variety  Vicarious exploration: Seeking information simply for stimulation e. Impulse purchase: An unexpected purchase based on a strong feeling  Characterized by: o An intense or overwhelming feeling of having to buy the product immediately o A disregard for potentially negative purchase consequences o Feelings of euphoria and excitement o A conflict between control and indulgence  Prevalence varies across cultures and individuals  Motives may be intrinsic and/or external  As illustrated by Exhibit 9.7 (PPT Slide 32), eyelevel and eye-catching displays and package design can increase impulse purchases.  Using interesting visuals and movement in banner ads on the Internet can also stimulate impulse purchases by linking directly to the product‘s website.

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f. Group Activity 2: Break the class into small groups of two to three students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 33) 20–25 minutes total  Select a well-known brand‘s product that can be found in a grocery store and identify how it‘s packaging could be enhanced or altered to break through the clutter on store shelves.  How can customers be encouraged to spend more time considering this brand?  What would you do to increase the likelihood that this brand will be selected in the supermarket. o Students‘ examples will vary.. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

64.

How do base-rate information and the law of small numbers bias judgments made on the basis of the availability heuristic?  Answer: The availability heuristic illustrates how consumers often base their judgments on events that are easy to recall rather than on the actual base-rate information (how often the event really occurs). The law of small numbers (the expectation that information obtained from a small number of people represents the larger population) biases judgments. Consumers often obtain information regarding a product from a small number of people and tend to believe this information. Reliance on small numbers is another reason that word-of-mouth communication can be so powerful.

65.

How is the high-effort hierarchy of effects similar to and different from the low-effort hierarchy?  Answer: The high-effort hierarchy of effects illustrates that the decision-making process typically follows a pattern of active evaluation (high cognitive processing), which leads to the formation/changing/strengthening of attitudes. These attitudes then influence consumer behavior. In low-effort processing, consumers think very little before deciding, and beliefs (often based on basic familiarity) lead directly to choice. After making a choice, the consumer then evaluates their purchase. Higheffort processing can be summed up as think–feel–do, while 167 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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low-effort processing is represented as think (very little)–do–feel.

66. 

How do unconscious factors influence consumer behavior?

Answer: In some low-effort situations, consumers make a decision without being consciously aware of how or why they are doing so. Approximately half of all shopping decisions are spontaneous and unconsciously made while in the store.

Such unconscious choices may be strongly affected by environmental stimuli such as the fragrance of a perfume in a department store. Other environmental stimuli that might trigger choices and behavior without the consumer‘s being consciously aware of the effect are novel shapes, color, brand logos, certain places or social situations, and the presence of other people.

67.

What operant conditioning concepts apply to consumer learning?  Answer: Operant conditioning is the view that behavior is a function of the reinforcements and punishments received in the past. Reinforcement usually comes from a feeling of satisfaction that occurs when we perceive that our needs have been adequately met. This reinforcement increases the probability that we will purchase the same brand again.

Punishment occurs when our needs are not met, and we are dissatisfied. This ―trains‖ the consumer to not buy the same brand again.

68.

Why is quality an important ingredient in cognitive-based decision-making?  Answer: Cognitive-based decision-making relies heavily upon well-defined, rational beliefs. Product quality is often an important attribute and is a combination of both objective and subjective beliefs. Marketing strategies only work if product performance satisfies and reinforces the consumer.

They will not overcome dissatisfaction due to poor product quality.

69.

What is brand loyalty, and what role does it play in loweffort decision-making?  Answer: Brand loyalty is the behavior of buying the same brand repeatedly because of a strong preference. Brand loyalty results in low-effort decision making because the consumer does not need to process information when making a decision and simply buys the same brand each time. In addition, brand loyalty reduces the risk of purchasing another brand and not being satisfied.

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70.

How do price and value perceptions affect low-effort decision-making?  Answer: In low-effort decision making, price is often a determining factor. Consumer perceptions play an important role in the use of price-related tactics in terms of whether the price variation is noticeable, their reaction to different price points, and their perceptions of a product‘s worth.  Value is the subjective determination of quality in relation to price. Value perceptions are important to consumers who are likely to be influenced by price.

Marketers can deliver value without lowering prices by providing a differential benefit. The key is the consumers‘ need to perceive the differential benefit as worth the cost.

71.

When is affect likely to be more of a factor in low-effort decision-making?  Answer: Affect is likely to play a role in the decision process when the product or service is hedonic rather than functional and when other factors—such as performance evaluations, price, habit, and normative influences—are not in operation.

72.

If habit is a simplifying strategy, why do consumers sometimes seek variety?  Answer: Consumers engage in variety seeking for two major reasons: satiation and boredom. Satiation occurs when the same product is consumed repeatedly in the same situation.

Consumers may also seek variety in public situations because they anticipate that others will evaluate their decision more positively. Variety seeking is most likely to occur when involvement is low, there are few differences among brands, and the product is more hedonic than functional. Marketers can attempt to reduce boredom with their product simply by providing more variety in a product category. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

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18.

Discussion: Choice Tactic Examples (LO 9-4 and 9-5) Duration 10 minutes. 

As a class, brainstorm statements that consumers might make using each of the cognitively and affectively based decision-making tactics. o

Answer: Students‘ examples will vary. Possible answers are as follows:

Cognitively Based Choice Tactic Performance-related tactic

Related Consumer Statements    

Habit

   

Brand loyalty

  

Price tactic

  

Normative tactic

 

Brand familiarity

  

Affectively Based Choice Tactic Affect tactic

It works the best.

Their customer service is the best.

It‘s the most reliable.

They have the longest lasting screen.

I always buy this size.

I walk by there on my way to lunch every day.

I just grab the closest thing.

I like to go to the nearest gas station.

I won‘t drink anything else.

I wouldn‘t buy anything else.

No one else‘s product comes close.

It was on sale.

I had a coupon code.

There was a buy-one-getone-free offer.

Everyone I know has one.

My doctor recommended it.

My mom has the same one.

I‘ve never even heard of that brand.

Everyone knows who they are.

Related Consumer Statements  It felt good to save money.

170

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  Variety seeking

  

Impulse buying

  

Wearing this color makes me feel happy.

Their commercials are so funny.

I was tired of eating the same old food.

I wanted a new look.

I thought I might experiment with something new.

I couldn‘t help myself— I had to have it.

It was so cute, I couldn‘t resist.

I had the urge to splurge on something for myself.

19.

Discussion: Variety-Seeking Brand Switchers (LO 9-5) Duration 5 minutes. 

Often consumers switch brands as a means of fulfilling their variety-seeking needs. How can knowing this help you if you are a brand manager who competes with the category favorite? o

o

o

Answer: Marketers should recognize consumers‘ need for variety and accommodate these needs appropriately, as Frito-Lay, Pepsi, and Coke do by introducing new flavors on a regular basis. Marketers can attempt to induce brand switching among variety seekers by encouraging consumers to ―put a little spice into life‖ and try something different.

Many breweries, for example, produce limited-time seasonal beers to attract variety seekers. Shiner Beer in Texas brews pumpkin spice beers every autumn and prickly pear cactus beers every spring to fit in with the flavors of the season. However, consumers may not like too much variety.

Note that simply altering the way that the product assortment is presented (e.g., how items are arranged on the store shelves) can increase consumers‘ perceptions of variety and trigger higher consumption, a finding that is particularly relevant for food retailers.

[return to top]

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

16.

Writing Activity: Concept Application (LO 9-1 – 9-5) Duration 20 minutes. 

Ask the students to summarize how the concepts discussed in the chapter could be applied within an organization. Ask them to specifically address the barriers that may be faced in applying these concepts in the real world.

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 10: Post-Decision Processes

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 173 List of Student Downloads .......................................... 174 Chapter Objectives ................................................. 174 Complete List of Chapter Activities and Assessments ................ 174 Key Terms .......................................................... 175 What's New in This Chapter ......................................... 176 Chapter Outline .................................................... 177 End-Of-Chapter Questions for Review and Discussion ................. 187 Additional Discussion Questions .................................... 190 Additional Activities and Assignments .............................. 191

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 10: Post-Decision Processes

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to examine some of the four major processes that occur after a decision has been made—consumer learning, satisfaction/dissatisfaction, consumption emotions, and disposition.

The consumption process continues after consumers have made the decision to acquire a product or service and made their choice for a specific brand or version of the product or service. Consumers experience the product or service when consuming or using it and compare these experiences with the expectations they had before consumption. They learn from these consumption experiences and from noticing that these experiences are aligned with the expectations they had before making the choice.

Consumers may be satisfied or dissatisfied and may experience more specific, sometimes intense, consumption emotions. Satisfaction is both a subjective feeling and a positive evaluation that a decision has fulfilled a need or goal. Dissatisfaction occurs when there are negative feelings and an evaluation that goals or needs have not been fulfilled. It is important for marketers to keep consumers satisfied because losing customers can be very costly in the long run.

Three major theories of satisfaction/dissatisfaction are (1) the disconfirmation paradigm, which states that satisfaction occurs when performance disconfirms expectations in a positive way and that dissatisfaction results from negative disconfirmations; (2) attribution theory, which states that dissatisfaction results when the cause of a problem is determined to be permanent, marketer-related, and under volition; and (3) equity theory, which states that satisfaction results when the buyer perceives fairness in the exchange.

These post-decision emotions activate various action tendencies, such as desires to repeat their choice the next time around or to switch brands. And these action tendencies will drive their future choices, but sometimes in very unexpected ways.

Finally, consumers can dispose of products in a variety of ways. This process has important implications for marketing strategy and an understanding of consumer behavior. Recycling, which is one form of disposition, is dependent on consumers‘ motivation, ability, and opportunity to act.

This chapter describes this ―learning–feeling–doing‖ process after consumers have decided to acquire, consume, and/or dispose of an offering.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 10-1

Explain how consumers can learn from consumption experience.

10-2

Describe how disconfirmation of expectations influences consumers‘ satisfaction and dissatisfaction.

10-3

Outline the actions that consumers may take after feeling dissatisfaction.

10-4

Discuss how customer satisfaction relates to loyalty.

10-5

Describe the consumer disposition process.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 10-1 10-2 10-3 10-5 10-1 – 10-5 10-1 – 10-5 10-1 – 10-5

Activity/Assessment Knowledge Check Activity Polling Activity Discussion Activity Group Activity Learn It: Concept Check Quiz: Chapter 10 PostDecision Processes Apply It: Assignment: Chapter 10 Post-Decision Processes Apply It: Case Activity: Chapter 10 Post-Decision Processes

Source (i.e., PPT slide, Workbook) PowerPoint Slide 10 PowerPoint Slide 12 PowerPoint Slide 29 PowerPoint Slide 40 MindTap Learning Path Chapter 10 Folder MindTap Learning Path Chapter 10 Folder MindTap Learning Path Chapter 10 Folder

Duration 5 mins.

5–10 mins.

5 mins.

20–25 mins.

35–45 mins.

35–45 mins.

35–45 mins.

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KEY TERMS Ambiguity of information: When information from consumption experiences is insufficiently clear or precise to evaluate brand, product, or service performance.

Attribution theory: A theory of how individuals find explanations for events.

Behavioral costs: The money, time, effort, and emotional discomfort needed to implement one‘s intentions or urges to act.

Customer retention: The practice of retaining customers by building long-term relationships with them.

Delight: Intense positive emotion, beyond satisfaction, that consumers experience when the superior performance of a company, brand, products, or service confirms or exceeds their expectations.

Disconfirmation: When expectations do not match the actual brand, product, or service performance because performance is either better or worse than expected.

Disloyalty: Reduced or discontinued patronage of a company, brand, product, or service based on negative attitudes from earlier consumption experiences.

Dissatisfaction: The feeling that a purchase decision, consumption experience, or disposition decision falls short of one‘s expectations.

Emotional detachment: Emotionally disposing of a possession.

Encoding of evidence: Processing information from consumption experiences.

Equity theory: The extent to which the balance of exchanges between consumers and companies and among consumers is perceived to be fair.

Expectation: A prediction (hypothesis) about the performance of a brand, product, or service and about the outcomes of acquiring, consuming, or disposing of it.

Exposure to evidence: Actually experiencing the brand, product, or service while consuming it.

Hypothesis generation: Forming expectations about a brand, product, or service and its consumption.

Hypothesis testing: Comparing prior expectations or predictions with new information, such as evidence from experience.

Integration of evidence: Combining new information from the consumption experience with stored knowledge.

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Loyalty: Repeated patronage of a company, brand, product, or service based on positive attitudes from earlier and expected future consumption experiences.

Negative word-of-mouth communication: The act of consumers sharing negative information about a brand, product, or service with other consumers.

Opportunity costs: The value to the consumer of the best alternative not chosen. The opportunity costs of choosing an option are low when there are few good alternatives and none are better than the chosen option.

Performance: How well a brand, product, or service does on objective criteria, such as fuel efficiency, battery life, and on subjective criteria, such as style or taste.

Physical detachment: Physically disposing of an item.

Pride: The positive emotion that consumers experience upon perceiving that they themselves rather than others or luck are responsible for obtaining positive, hard to get outcomes.

Regret: The negative emotion that consumers experience upon perceiving that they could have made a better decision than they did.

Satisfaction: The feeling that a purchase decision, consumption experience, or disposition decision meets or exceeds one‘s expectations.

Top dog: A market leader or brand with a large or the largest market share.

Underdog: A lower-share brand that is perceived to be doing well despite the odds against it. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:      

Updated learning objectives New integrated model of post-decision processes Improved treatment of consumption emotions, switching costs, relationships Numerous new examples Numerous academic studies added Nearly all exhibits are new 176

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[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XLIV.

Learning from Consumption Experience (LO 10-1 PPT Slides 4–10) a. Exhibit 10.2 (PPT Slide 3) provides an overview of the chapter. b. Before making a choice, consumers learn about companies, brands, products, and services by:  Information search  Exposure to marketing communications  Observation of others  Direct experience o More credible o More involving o Vivid and ―lively‖ c. Consumers can acquire much information about products and services by experiencing these during consumption (Exhibit 1.2 on PPT Slide 7).  Hypothesis testing: Comparing prior expectations or predictions with new information, such as evidence from experience o Hypothesis generation: Forming expectations about a brand, product, or service and its consumption o Exposure to evidence: Actually experiencing the brand, product, or service while consuming it o Encoding of evidence: Processing information from consumption experiences o Integration of evidence: Combining new information from the consumption experience with stored knowledge d. Four factors influence consumers‘ learning from experience:  Motivation o Marketers can facilitate learning both when motivation is high and when it is low.  Ability o Ability affects how much and what consumers learn from consumption experiences.  Opportunity o Ambiguity of information: When information from consumption experiences is insufficiently clear 177

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or precise to evaluate brand, product, or service performance  Processing biases o Processing biases may stand in the way of learning from experience. e. Ambiguous information and processing biases strategic implications for marketers, depending on the market position of the brand, product, or service.  Top-Dog Strategies o Make specific claims that justify consumers‘ evaluation of the brand. o Block exposure to evidence. o Explain the experience.  Underdog Strategies o Encourage consumer learning. o Have a strong and distinct advantage. o Create expectations and use promotions to provide the actual experience for consumers. o Facilitate product trial f. Knowledge Check Activity: Which of the following describes the process of combining new information from the consumption experience with stored knowledge? (PPT Slide 10) 5 minutes total  Answer: c. Integration of evidence  Integration of evidence is the fourth stage in testing hypotheses for learning. It involves combining new information from the consumption experience with stored knowledge.  Hypothesis testing describes the process of learning by comparing prior expectations or predictions with new information, such as evidence from experience.  Hypothesis generation is the first step in this process, and consists of forming expectations about a brand, product, or service and its consumption.  Encoding of evidence is the third step in the process and involves processing information from consumption experiences.

XLV.

How Consumers Make Satisfaction and Dissatisfaction Judgments (LO 10-2, PPT Slides 11–21) a. Polling Activity: Conduct a poll with the class. (PPT Slide 12) 5–10 minutes total  Have you ever experienced buyer's remorse after making a purchase?  If yes, what factors contributed to it? o Students‘ responses will vary.

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o

Satisfaction and dissatisfaction have strong effects on various future consumer behaviors, and thus on the profitability and future of companies. Therefore, market research companies and firms world-wide carefully track consumer satisfaction and dissatisfaction over time. b. Satisfaction: The feeling that a purchase decision, consumption experience, or disposition decision meets or exceeds one‘s expectations c. Dissatisfaction: The feeling that a purchase decision, consumption experience, or disposition decision falls short of one‘s expectations d. Customer satisfaction is critical to business success for many reasons:  Satisfied customers are willing to pay higher prices.  They are more likely to remain customers, be brand loyal, and be committed to the product.  They will tell others about their experiences.  Attracting new customers is more expensive than marketing to existing customers.  Higher customer satisfaction is systematically associated with higher company profitability. e. Market research companies and firms world-wide carefully track consumer satisfaction and dissatisfaction over time.

The American Customer Satisfaction Index (ACSI) is an example of this (Exhibit 10.4 on PPT Slide 14). f. Disconfirmation of expectations determines consumer satisfaction and dissatisfaction (Exhibit 10.5 on PPT Slide 15).  Expectations and performance jointly influence consumer satisfaction and dissatisfaction. o Expectations created by marketers about product performance can influence satisfaction or dissatisfaction, but in unexpected ways. o Raising consumers‘ expectations of how well the product or service will perform can increase ratings of product performance. g. Consumers‘ emotions are determined by expectations, performance, and other factors.  Companies can delight consumers by exceeding expectations on performance that is important to consumers. o Delight: Intense positive emotion, beyond satisfaction, that consumers experience when the superior performance of a company, brand, products, or service confirms or exceeds their expectations 179 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

The Consumer Satisfaction/Dissatisfaction Process (CSDP) model helps marketers to understand, predict, and manage the emotions that consumers experience in response to their consumption experiences, and how these emotions influence consumers‘ actions (Exhibit 10.7 on PPT Slide 18). o Disconfirmation (a) Consumers are satisfied when their expectations are confirmed or positively disconfirmed and are dissatisfied when their expectations are negatively disconfirmed. o Accountability (a) Attribution theory: A theory of how individuals find explanations for events o Consumption Emotions (a) Regret: The negative emotion that consumers experience upon perceiving that they could have made a better decision than they did (b) Pride: The positive emotion that consumers experience upon perceiving that they themselves rather than others or luck are responsible for obtaining positive, hard to get outcomes (c) If the cause of the dissatisfaction is marketer-related, under the marketer‘s control, and permanent, consumers may not just be dissatisfied, but experience frustration and anger. (d) Marketers must first affirm the consumer‘s emotion and establish what the cause of the failed consumption event was, before giving the consumer the opportunity to complain and vent. o Exchanges and Relationships (a) Equity theory: The extent to which the balance of exchanges between consumers and companies and among consumers is perceived to be fair (b) Equity and fairness judgments involve a comparison between the inputs and outputs of the consumer compared to the inputs and outputs of the company, and those of other consumers. (c) Perceptions of fairness can shift over time.

180

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(d) Expectation disconfirmation and equity judgments jointly contribute to the emotions that consumers experience. (e) No questions asked‖ return policies and lowest price guarantees by retailers can have positive effects on consumers who appreciate such commitments that the company makes to the consumers. (f) Salespeople can be trained to ensure that their inputs match consumer inputs by listening to their needs, answering questions, and trying to offer a good deal. (g) Consumers who perceive that they have been treated fairly in the complaint process will be more satisfied, more likely to repurchase, and more likely to spread positive word of mouth. o Consumers also compare their predictions about how they will feel when owning and consuming a particular offering with how they feel now. h. Satisfaction and dissatisfaction and the specific emotions that consumers experience during consumption invoke certain action tendencies.  Loyalty: Repeated patronage of a company, brand, product, or service based on positive attitudes from earlier and expected future consumption experiences  Disloyalty: Reduced or discontinued patronage of a company, brand, product, or service based on negative attitudes from earlier consumption experiences  Marketers should make sure that customers‘ feelings after trying, buying, and using their offerings are as positive as possible. o Offer value-added services. o Use promotions and special deals to increase consumers‘ positive post-decision emotions. o Build relationships with consumers and contributors by encouraging their involvement and identification with the organization through communications and other activities.

XLVI.

Consumer Responses to Dissatisfaction (LO 10-3, PPT Slides 22–29) a. Dissatisfied consumers can feel the urge to do one of three things:  Exit the relationship with the company and stop purchasing the brand, product, or service

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

Voice their dissatisfaction by complaining to the company, a third party, or others by negative wordof-mouth communication  Stay loyal and take no action b. Two types of costs stand between consumers‘ urges and their actions:  Opportunity costs: The value to the consumer of the best alternative not chosen. The opportunity costs of choosing an option are low when there are few good alternatives and none are better than the chosen option  Behavioral costs: The money, time, effort, and emotional discomfort needed to implement one‘s intentions or urges to act c. Exhibit 10.8 (PPT Slide 24) summarizes the factors that determine what consumers are likely to do. d. Dissatisfied consumers are more likely to file an official complaint when their motivation, ability, and opportunity are high.  The attributions that consumers make about the causes of their dissatisfaction help to explain when they are more likely to complain (marketer-related, controllable, stable).  There are four types of complainers: o Passives—Least likely to complain o Voicers—Likely to complain directly to the retailer or service provider o Irates—Angry consumers who are most likely to engage in negative word of mouth, stop buying, and complain to the provider but not to a third party such as the media or government o Activists—Engage heavily in all types of complaining, including to a third party  Four customer characteristics are important to marketers who are preparing complaint-resolution policies and practices: o Customer‘s perceptions of the problem and solution o Customer–company relationship o Customer socio-demographics o Customer psychographics  Companies with agile and adequate solutions that complainers view as fair (such as a replacement, refund, or compensation) are more likely to earn positive word of mouth and win repeat business. e. Recovery comprises all systematic efforts by a company to correct and compensate for a product or service failure.

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

When consumers expect to maintain a good relationship despite a mishap, the business should (a) sincerely apologize, (b) promise to prevent such failures in the future, and (c) deliver on the promise.  When consumers expect to respond aggressively and to control the situation, the business should take their complaints even more seriously, offer them choices, and help them feel in control.  When consumers expect a rational response based on costs and benefits, the business could offer discounts or some other benefits such as a voucher, free future service, or extended guarantees to restore satisfaction.  The frequency, timing, proximity, and sequence of product and service failures, recoveries, and positive experiences affect customers‘ perceptions of service quality. f. Negative word-of-mouth communication: The act of consumers sharing negative information about a brand, product, or service with other consumers  More likely to occur when consumers perceive that the company is at fault, the problem is severe, and they are unhappy with the company‘s response  Shared for its entertainment value during meetings and on social media  Tends to have a large impact on subsequent purchase decisions because it is vivid, easily remembered, and credible because it is not marketer-controlled  Can go global very quickly  Marketers need to respond rapidly, make an effort to identify the reason for or source of the difficulty, and take steps to rectify or eliminate the problem with restitution, compensation, and/or communication. g. Discussion Activity: Pose the questions to the class. (PPT Slide 29) 5 minutes total  What steps can a consumer take in response to dissatisfaction? o Dissatisfied consumers can feel the urge to do one of three things: (a) Exit the relationship with the company and stop purchasing the brand, product, or service (b) Voice their dissatisfaction by complaining to the company, a third party, or others by negative word-of-mouth communication 183 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

XLVII.

(c) Stay loyal and take no action What is the likely outcome of each choice? o The outcome of each choice will vary. (a) In the case of the first and last options, the company has no way of knowing what the problem is and therefore has no opportunity to resolve the issue. This is also true of voicing dissatisfaction through negative word-of-mouth communication. (b) Should the consumer complain directly to the company, and that interaction has a positive outcome, the consumer may continue to use the product or even ultimately consider the experience satisfactory. (c) In some cases, a consumer may reach out to a third party (such as a consumer protection or advocacy group or government agency) to complain or file a legal action.

In these instances, the likelihood of the customer returning decreases significantly.

Why Customer Satisfaction Is Not Enough (LO 10-4, PPT Slides 30– 32) a. Dissatisfied customers are more prone to be disloyal by switching to a competitor.  Even satisfied customers may not remain loyal.  Marketers should measure consumer delight, the perceived value of alternatives, and the ease of switching to those alternatives.  Marketers should increase the value of their offering, but also increase in various ways the switching costs for consumers without making them a hostage to their own brand.  Customer retention: The practice of retaining customers by building long-term relationships with them  Businesses must work especially hard to reassure and retain customers after a crisis product-harm crisis. b. Consumer retention management is based on the following five fundamental ingredients:  Care about customers during sales.  Care about customers between sales.  Build trusting relationships.  Monitor the service-delivery process.  Provide extra effort.

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XLVIII.

Disposition (LO 10-5, PPT Slides 33–40) a. Disposition—The act of parting from possessions or what is left of them  Can be temporary or permanent  Can be voluntary or involuntary  Ranges from throwing stuff in the garbage or dumping possessions and their residues to selling one‘s possessions on online platforms such as eBay or donating them to charity  Can have a personal focus (the consumer gains), an interpersonal focus (specific others gain), or a societal focus (certain groups, collectives, or society at large gain) b. Table 10.1 (PPT Slide 35) summarizes the various methods of voluntary disposition. c. Possessions can sometimes be important reflections of the self that are infused with significant symbolic meaning.  Physical detachment: Physically disposing of an item  Emotional detachment: Emotionally disposing of a possession o Even when an item can be traded in for a discount on a new replacement, emotional attachment enhances the value consumers perceive in the old item, complicating the disposition and purchase decision. d. The disposition of shared possessions is a critical process when a relationship ends.  Disposition to break free—The goal is to free oneself from the former relationship  Disposition to hold on—The intent is to cling to possessions with the hope that the relationship can be repaired e. Marketers need to understand disposition of possessions for five reasons:  Disposition decisions often influence later acquisition decisions.  Marketers are interested in the way that consumers re-use their possessions in their own household, trade, sell, or give away items for secondhand purchases through used-merchandise retail outlets and websites, flea markets, garage sales, and classified ads in newspapers and online.  Disposition and acquisition of pre-owned possessions is particularly meaningful to consumers.

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

Product disposition behaviors can sometimes have a major impact on society in general.  The disposition of products and services, as well as other parts of the extended self (money, time, and even organs), leads to what has been called ―hybrid economies.‖ f. Exhibit 10.10 (PPT Slide 38) provides U.S. consumer recycling data. g. Disposition behaviors can provide valuable insights for the development of recycling programs.  Consumers are more likely to recycle when they perceive that the benefits outweigh the behavioral costs, including money, time, and effort.  Consumers require the right knowledge to act appropriately on their motivation to recycle.  If separating, storing, and removing recyclable materials is difficult or inconvenient, consumers will usually avoid doing so.  Consumers must break old waste disposal habits and develop new recycling behaviors.  Marketers can facilitate recycling by increasing consumers‘ motivation, ability, and opportunity to recycle. h. Group Activity: Break the class into small groups of three to four students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 40) 20–25 minutes total  Discuss the factors that are making disposition an increasingly important issue for marketers. o Marketers need to understand disposition for many reasons. In particular, due to mounting concerns about conserving natural resources, studying disposition behaviors can provide valuable insights for the development of recycling programs.  Predict how these factors are likely to change in the future.  Propose suggestions for dealing appropriately with this situation. o Students‘ responses and proposed suggestions for dealing with disposition will vary. [return to top]

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

73.

Describe how consumers learn from their experiences with brands, products, and services. Provide a detailed example of such ―learning from consumption‖ that you are aware of.  Answer: First, information from direct experience is often more credible because it is less under marketing control.

Second, information from direct experience is often more involving because it has direct effects on the consumer (seeing someone eat a candy bar or eating it yourself).

Third, information from direct experience is more vivid and ―lively‖ and therefore easier to remember than other types of information. Experiencing a product by actually seeing (―a painting‖), hearing (―surround sound‖),tasting (―hazelnut coffee‖), touching (―wool sweater‖), or smelling (―freshly baked bread‖) it has a stronger influence on consumer learning than when learning takes place from mass media, ads, or word of mouth.  Students‘ ―learning from consumption‖ examples will vary.

74.

Explain how expectations and performance contribute to disconfirmation.  Answer: Disconfirmation is any discrepancy between what a consumer expects from a given consumption experience and the actual performance of the consumption experience. When expectations are exceeded by performance, this results in positive disconfirmation known as satisfaction. When performance fails to meet expectations, a negative disconfirmation, or state of dissatisfaction, occurs.

75.

Describe attribution theory and equity theory and explain how they relate to satisfaction and dissatisfaction.  Answer: Attribution theory demonstrates how individuals explain events. It is based on the factors of stability, focus, and controllability. If the cause of the dissatisfaction with a product or service is permanent, marketer related, and under the marketer‘s control, then consumers will likely be dissatisfied with the consumption experience. If, for example, the dissatisfaction is not seen as the fault of the marketer, happens very rarely, or is out of the control of the marketer, then consumers are less likely to be dissatisfied with the product or service.  Equity theory is a theory that focuses on the fairness of exchanges between individuals. Equity and fairness judgments involve a comparison between the inputs and 187 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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outputs of the consumer compared to the inputs and outputs of the company, and those of other consumers. If consumers perceive inequity in the exchange that does not benefit the consumer, dissatisfaction will likely occur. Fair exchanges, as defined by the consumer, likely lead to satisfaction with the exchange.

76.

Explain the role of post-decision emotions in influencing consumers‘ action tendencies and actions.  Answer: Post-decision feelings are a part of the acquisition, usage, and disposal process. Feelings after consumption and or disposal contribute to an evaluation. In some cases, a feeling of regret or buyers‘ remorse can work alongside dissatisfaction. In other cases, a feeling of buyers‘ remorse can work with satisfaction, in that the consumer regrets not buying more of the offering that they were very satisfied with.  Marketers should make sure that customers‘ feelings about trying, buying, and using the products are positive so that they positively impact satisfaction and negatively impact dissatisfaction.

77.

Describe when consumers experience delight and when they experience anger after a consumption event.  Answer: Companies can delight consumers by exceeding expectations on performance that is important to consumers.

For example, an airline passenger might feel delighted when receiving an unexpected birthday treatment during a flight, such as an extra drink or snack along with a card signed by the flight crew. Dissatisfied customers, on the other hand, may turn from being disappointed and frustrated to being angry and even hateful. For example, when consumers have a strong self–brand connection but feel betrayed by a brand, they experience feelings of psychological loss, selfcastigations over their prior relationship with the brand, and indignation-focused anger—and they ruminate about this.

78.

Explain when and why the positive consumption emotion of pride may have a negative effect on consumer loyalty.  Answer: Consumers experience pride when positive, ―hard to get‖ outcomes result from their own decisions and actions rather than because of others or just luck. Pride is associated with a boost in self-confidence and self-esteem, and these may stimulate exploration of new opportunities and detachment from the brand or company. Therefore, and contrary to other positive consumption emotions such as satisfaction, delight, joy, gratitude, and love, consumers who feel proud after a consumption event do not always have 188 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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favorable intentions with respect to the brand, product, or service.

79.

Why is complaining important to marketers, and how should complaints be handled?  Answer: Marketers should make sure that customers‘ feelings about buying and using their offerings are as positive as possible. Customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth. If the customer is dissatisfied, the marketer must seek to correct the problem as soon as possible. Companies with agile and adequate solutions that complainers view as fair (such as a replacement, refund, or compensation) are more likely to earn positive word of mouth and win repeat business. The frequency, timing, proximity, and sequence of product and service failures, recoveries, and positive experiences affect customers‘ perceptions of service quality.

80.

What is customer retention and what are its marketing implications?  Answer: Customer retention is the practice of keeping (rather than acquiring) customers by building relationships with them. It entails keeping a customer satisfied in their value perception. The main marketing implication is that it is cheaper to keep a customer happy than it is to get a new customer (with marketing). An implication of not retaining a customer is negative word of mouth; the dissatisfied customer will likely share the reason of why they left on social media or to other potential customers.

81.

In which ways can consumers dispose of their possessions or their residues in personally, socially, and societally positive ways?  Answer: To dispose of an item in a socially and societally positive way consumers can give it away, exchange it for something else, recycle it, sell it, use it up, throw it out. Other options for disposal include abandoning (socially unacceptable) or destroying the possession.

82.

Propose one or more ways to build new or expand existing businesses from the various ways that consumers can dispose of their possessions.  Answer: Students‘ responses will vary. One area of interest may be around ―hybrid economies,‖ where the disposition of products and services, as well as other parts of the extended self (money, time, and even organs), leads to economic exchanges where sales and profit motives are more important and social exchange without such motives are intertwined. Hybrid economies emerge when consumers 189 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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collaborate with producers and among themselves to create value. New economic and social exchange hybrids of disposition and acquisition provide new opportunities and challenges for marketers to explore. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

20.

Discussion: Dissatisfaction Prior to Purchase (LO 10-2) Duration 5 minutes. 

Would it be possible to dissatisfy someone before they even make a purchase? If so, how? o



Answer: Yes, it is possible to dissatisfy a consumer before they make a purchase. Dissatisfaction could prior to purchase could arise from misleading advertisements, notoriously poor customer service, an unclear product description, or negative reviews or negative word-of-mouth by other consumers. Any of these factors can create doubts, uncertainty, and a lack of trust in a product or brand, leading to consumer dissatisfaction even before a purchase decision can be made.

How can marketers avoid this situation? o

Answer: Marketers can avoid these types of situations by providing consumers with accurate information, being transparent in their communication, and by quickly and effectively addressing consumer concerns in order to build trust and satisfaction and reduce negative reviews and word-of-mouth communication about their brand.

21.

Discussion: Negative Word of Mouth (LO 10-3) Duration 15–20 minutes. 

Word of mouth between consumers tends to have a large impact on subsequent purchase decisions because it is vivid, easily remembered, and credible because it is not marketer-controlled. Negative word of mouth can go global

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

very quickly as consumers air gripes on blogs, social media sites, and specialized feedback platforms.

Select a product or brand for the class and lead a brainstorming session where the class develops a plan for dealing with negative word-of-mouth for the offering. o

Answer: Students‘ proposed plans will vary. Marketers need to respond rapidly to negative word of mouth, make an effort to identify the reason for or source of the difficulty, and take steps to rectify or eliminate the problem with restitution, compensation, and/or communication.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

17.

Reflective Activity: Disconfirmation in Real Life (LO 10-2) Duration 20–30 minutes. 

Have students develop a diagram showing how satisfaction and dissatisfaction occur through disconfirmation using examples from their own experience.

18.

Reflective Activity: Disposition of Possessions (LO 10-5) Duration 45–60 minutes. 



Ask students to make an inventory of at least 30 of their possessions. For each, they should indicate when and how they plan to dispose of it. They should also provide detailed reasons for this behavior and then summarize this information, answering the following: o

Which possessions will be the easiest to dispose of, and why?

o

Which possessions will be the hardest to dispose of, and why?

o

What are your most frequent disposition options, and why?

Since disposition decisions often influence later acquisition decisions, it is important to understand this often-overlooked phase of the consumer behavior process.

How might the students‘ disposition behavior change in the future due to advances in technology? How have disposition 191

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behaviors in the U.S. changed during the students‘ lifetimes? [return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 11: Social Influences on Consumer Behavior

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 193 List of Student Downloads .......................................... 194 Chapter Objectives ................................................. 194 Complete List of Chapter Activities and Assessments ................ 194 Key Terms .......................................................... 195 What's New in This Chapter ......................................... 196 Chapter Outline .................................................... 197 End-Of-Chapter Questions for Review and Discussion ................. 206 Additional Discussion Questions .................................... 208 Additional Activities and Assignments .............................. 209

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore social influences on consumer behavior—those that are marketer dominated and nonmarketer dominated and those that are delivered through the mass media and personally. Nonmarketer-dominated sources are regarded as more credible than marketer-dominated sources, and personally delivered information generally involves less reach, but more capacity for twoway communication than mass-media sources.

Opinion leaders and market mavens represent special sources of influence. Given their potential to serve as brokers of information, marketers may target these individuals explicitly or simulate opinion leaders in marketing communications.

Consumers are members of groups, and these groups can have tremendous influence on consumer behaviors. Reference groups may play a powerful socializing role, influencing key actions, values, and behaviors of consumers. Marketers can take advantage of reference-group types, characteristics, and socializing influences.

Sources of influence can create normative and/or informational influence. Normative influence may create effects like brand-choice congruence, conformity, compliance, and reactance. Strong ties and the extent to which consumers identify with the group also increase the likelihood that consumers will succumb to normative influences.

Informational influence operates when individuals affect others by providing information. Such information, in turn, may greatly affect consumers‘ search and decision-making. The more the influencer is regarded as an expert, the less the consumer‘s knowledge and confidence, and the more consumers are predisposed to listen to information from others, the greater the informational influence.

Informational influence is also greater when groups are cohesive.

Social influence, whether normative or informational, varies in valence (whether information is positive or negative) and modality (whether information is communicated verbally or non-verbally).

Negative information should be avoided as much as possible because it is communicated to more people and given greater weight in decision making than positive information. Marketers are particularly interested in word-of-mouth (WOM) information—both positive and negative. Strategies may be designed to identify, target, and reward individuals who serve as positive WOM referral sources. Sources of negative information, such as rumors, might also be targeted.

This chapter describes sources that exert influence on consumers, the types of influence, the tools used to exert influence, and extent to which their influence is powerful.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 11-1

Describe the various sources of influence on consumers and why each is important to marketers.

11-2

Identify the various tools of influence available to marketers.

11-3

Describe the various types of social influence that can impact consumers.

11-4

Identify factors that affect the extent (or impact) of reference group influences.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 11-1 11-2 11-3 11-4 11-1 – 11-4 11-1 – 11-4 11-1 – 11-4

Activity/Assessment Group Activity Polling Activity Discussion Activity 1 Discussion Activity 2 Learn It: Concept Check Quiz: Chapter 11 Social Influences on Consumer Behavior Apply It: Assignment: Chapter 11 Social Influences on Consumer Behavior Apply It: Case Activity: Chapter 11 Social Influences on Consumer Behavior

Source (i.e., PPT slide, Workbook) PowerPoint Slide 12 PowerPoint Slide 16 PowerPoint Slide 26 PowerPoint Slide 34 MindTap Learning Path Chapter 11 Folder

Duration

MindTap Learning Path Chapter 11 Folder

35–45 mins.

MindTap Learning Path Chapter 11 Folder

35–45 mins.

25–35 mins.

5–10 mins.

10 mins.

10-15 mins.

35–45 mins.

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[return to top]

KEY TERMS Aspirational reference group: A group that we admire and desire to be like.

Associative reference group: A group to which we currently belong.

Brand community: A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.

Brand-choice congruence: The purchase of the same brand as members of a group.

Compliance: Doing what the group or social influencer asks.

Conformity: The tendency to behave in an expected way.

Consumer socialization: The process by which we learn to become consumers.

Dissociative reference group: A group we do not want to emulate.

Door-in-the-face technique: A technique designed to induce compliance by first asking an individual to comply with a very large and possibly outrageous request, followed by a smaller and more reasonable request.

Even-a-penny-will-help technique: A technique designed to induce compliance by asking individuals to do a very small favor—one that is so small that it almost does not qualify as a favor.

Foot-in-the-door technique: A technique designed to induce compliance by getting an individual to agree first to a small favor, then to a larger one, and then to an even larger one.

Influencer: An individual who uses media (often online) to promote specific products (and often themselves).

Informational influence: The extent to which sources influence consumers simply by providing information.

Market maven: A consumer on whom others rely for information about the marketplace in general.

Marketing source: Influence delivered from a marketing agent, for example, advertising, personal selling.

Nonmarketing source: Influence delivered from an entity outside a marketing organization, for example, the media; influencers like

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celebrities, experts, and reviewers; friends; family; and even strangers.

Norm: Collective decision about what constitutes appropriate behavior.

Opinion leader: An individual who acts as an information broker between the mass media and the opinions and behaviors of an individual or group.

Reactance: Doing the opposite of what the individual or group wants us to do.

Social influence: Information by and implicit or explicit pressures from individuals, groups, and the mass media that affect how a person behaves.

Tie-strength: The extent to which a close, intimate relationship connects people.

Valence: Whether information about something is good (positive valence) or bad (negative valence).

Viral marketing: Rapid spread of brand/product information among a population of people stimulated by brands.

Word of mouth (WOM): Influence delivered verbally from one person to another person or group of people. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:         

Updated learning objectives Revised chapter structure New organizing exhibit New opening vignette Numerous new examples All new exhibits Numerous academic studies added Added discussion of influencer marketing Enhanced discussion of social media

[return to top]

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

XLIX.

Sources of Influence (LO 11-1, PPT Slides 5–12) a. Exhibit 11.1 (PPT Slide 4) provides an overview of the chapter. b. Marketing source: Influence delivered from a marketing agent, for example, advertising, personal selling. c. Nonmarketing source: Influence delivered from an entity outside a marketing organization, for example, the media; influencers like celebrities, experts, and reviewers; friends; family; and even strangers  Opinion leaders  Influencers  Market mavens  Reviewers  Reference groups d. Opinion leader: An individual who acts as an information broker between the mass media and the opinions and behaviors of an individual or group  Has some position, expertise, or firsthand knowledge that makes them sources of relevant and credible information, usually in a specific domain or product category  Tends to learn a lot about products, are heavy users of mass media, and tend to buy new products when they are first introduced  Self-confident, gregarious, and willing to share information about the marketplace  Perceived as unbiased and credible  Regarded as knowledgeable about acquisition, usage, and disposition options because of their product knowledge and experience e. Influencer: An individual who uses media (often online) to promote specific products (and often themselves)  A specific (and potentially more biased) type of opinion leader  ―Social assets‖ that a brand can collaborate with to achieve their marketing objectives  Celebrities with an extremely strong social media presence can influence followers.

197

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f. Market maven: A consumer on whom others rely for information about the marketplace in general  Seems to know all about the best products, the good sales, and the best stores or retail websites g. Reviewers:  May or may not be opinion leaders  94 percent of online shoppers worldwide rely on reviews before making a purchase with an unfamiliar retailer.  The most persuasive consumer-generated reviews of a good or service offer evidence to support an overall recommendation and include information about key features.  Emotionally evocative content enhances consumers‘ view of the product.  Reviewers can provide online information in several different ways: o Explain what a new product is or how it works o Evaluate it (provide pros and cons) o Endorse (recommend) it o Personally embrace it h. Reference group: A group of people consumers compare themselves with for information regarding behavior, attitudes, or values  Aspirational reference group: A group that we admire and desire to be like  Associative reference group: A group to which we currently belong o Brand community: A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use  Dissociative reference group: A group we do not want to emulate i. The sources who influence consumers lead to a variety of marketing implications.  Target and invest in opinion leaders and influencers.  Use opinion leaders and influencers in marketing communications.  Refer consumers to opinion leaders and influencers.  Associate products with aspirational reference groups.  Accurately represent associative reference groups.  Understand how reference groups affect product and brand decisions. o Whether we buy 198 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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o What brand we buy  Help to develop brand communities.  Avoid using dissociative reference groups. j. Group Activity: Break the class into small groups of three to four students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 12) 25–35 minutes total  Work together to identify six different reference groups (2 for each type—aspirational, associative, dissociative) that might influence a student.  Select one well-known brand and determine specific ways marketers for that brand could target each reference group you identified. o Students‘ responses will vary. The marketing implications found on the previous slide (Slide 11) and detailed in the text (p. 295–298) may provide some guidance for their work.

L.

Tools of Influence (LO 11-2, PPT Slides 13–16) a. Influence can be exerted either offline or online, and it can be delivered by the source to only one person (one-onone or many people at the same time (one-on-many).  Offline o Print and broadcast ads; Pamphlets and newsletters; Branded events; Conversations with salespeople; Phone calls with customer service agents; Sponsored content; Promotional products; Conversations with nonmarketing sources  Online o Social media platforms; Mobile marketing messages; E-mail; Review websites; Consumergenerated ads  One-on-One o Personal e-mail; Personal chats and conversations o Can be very persuasive because they allow for two-way communication  One-on-Many o Websites; Social media; Online newsletters; Blogs o Provide a greater opportunity to reach a large audience at a single time b. Due to the high level of social media usage illustrated in Exhibit 11.6 (PPT Slide 15), marketers and non-marketers are increasingly using social media networks like Facebook and TikTok as tools of influence.

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c. Polling Activity: Conduct a poll with the class. (PPT Slide 16) 5–10 minutes total  Which of the listed social media platforms do you use at least once a month?  Once a week? Once a day? o Social media have a mass reach but a more personal feel because consumers choose when, where, and how to access and share content. o Consumer-generated ads (nonmarketing sources encouraged or even rewarded by many marketers) can stimulate a range of social media conversations, from positive and negative comments, to debate over content and interest in knowing more about the ad and the brand. o Use the polling results to discuss the effectiveness of the use of social media by marketers: – How often would you say that you click on marketers‘ ads found within one of these platforms?

– How often would you say that you view consumer-generated ads found within one of these platforms?

– How often do you share content about a brand with others within your network?

– Etc. LI.

Types of Influence (LO 11-3, PPT Slides 17–26) a. Normative influence: How other people influence our behavior through social pressure  Norm: Collective decision about what constitutes appropriate behavior  Implies consumers will be sanctioned, punished, or ridiculed if they do not follow norms  Implies consumers will be rewarded for performing expected behaviors  Brand-choice congruence: The purchase of the same brand as members of a group  Conformity: The tendency to behave in an expected way  Compliance: Doing what the group or social influencer asks  Reactance: Doing the opposite of what the individual or group wants us to do  Marketers can take a variety of actions based on normative influences: 200

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o

Demonstrate rewards and sanctions for product use/nonuse. o Create norms for group behavior. o Create conformity pressures. o Use compliance techniques.

– Foot-in-the-door technique: A technique designed to induce compliance by getting an individual to agree first to a small favor, then to a larger one, and then to an even larger one – Door-in-the-face technique: A technique designed to induce compliance by first asking an individual to comply with a very large and possibly outrageous request, followed by a smaller and more reasonable request – Even-a-penny-will-help technique: A technique designed to induce compliance by asking individuals to do a very small favor—one that is so small that it almost does not qualify as a favor b. Informational influence: The extent to which sources influence consumers simply by providing information  Can affect how much time and effort consumers devote to information search and decision-making  Consumers are susceptible to it when: o Considering complex products they cannot easily understand how to use o They perceive product purchase or usage to be risky  Consumers may be more open when they cannot tell the difference between brands.  Culture has an impact on susceptibility  Marketers can apply informational influence in several ways: o Create a context for informational influence.

– Host or sponsor special product-related events.

– Host group chats, blog, or post social media content.

– Invite consumers to rate products on the marketers‘ website. o Provide scarcity information. (a) Encourages consumers to ―join the crowd‖ and purchase the item to avoid being left out.

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o

Couple informational influence with normative influence. (a) Enhance influence by using sources that are similar to their target audience. (b) Use web-based recommendation systems. c. Consumer socialization: The process by which we learn to become consumers  Parents affect socialization by influencing: o What types of products, TV programs, and ads their children are exposed to o How much control they have over buying products that they want o Food habits o Information, beliefs, and resources that are transmitted from one generation (parents) to the next (children)  TV programs, movies and videos, music, video games, the Internet, and ads can also serve as socializing agents. d. Consumers are also influenced by the characteristics of the influence attempt, namely its valence (i.e., positivity or negativity) and the modality in which it is communicated (through words or behaviors).  Valence: Whether information about something is good (positive valence) or bad (negative valence)  Modality: How influence is delivered—communicated through words (verbally) or through behavior (nonverbally)  Word of mouth (WOM): Influence delivered verbally from one person to another person or group of people o WOM is influenced by personal motives and product characteristics. o WOM is pervasive and persuasive. o Social media allows WOM to occur in real time.  Marketers should strive for the following: o Enhancing virality (a) Viral marketing: Rapid spread of brand/product information among a population of people stimulated by brands o Engineering favorable word of mouth o Preventing and responding to negative word of mouth o Effectively handling rumors, fake news, and scandals (a) Do nothing (b) Do something locally (c) Do something discreetly 202 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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(d) Do something big (e) Track word of mouth  Crisis management experts suggest that companies under siege take certain steps (and avoid others) to rebuild their reputation (Table 11.1 on PPT Slide 25). e. Discussion Activity 1: Pose the questions to the class.

(PPT Slide 26) 10 minutes total  Discuss the differences between normative and informational influence. o Normative influence and informational influence are two distinct types of social influence that affect individuals' attitudes, beliefs, and behaviors.

– Normative influence refers to the social pressure for individuals to conform to the expectations and norms of others. It is driven by the desire for social approval and belonging.

– Informational influence refers to the extent to which sources influence consumers simply by providing information. It is driven by the desire for accurate or reliable information to form one‘s own attitudes, beliefs, or behaviors.  Identify some marketing examples under conditions in which: o Normative influence is high but informational influence is low: – Creating limited edition or exclusive products – Using celebrity endorsements – Encouraging user-generated content o Normative influence is low but informational influence is high: – Using expert endorsements – Engaging consumers in product demonstrations and trials – Highlighting independent reviews and thirdparty certifications o Both are high: – Using testimonials from industry experts and peers – Adding informative captions and information to user-generated content – Partnering with social media influencers who are seen as domain experts 203 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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o

LII.

Both are low: – Offering flash sales to encourage impulse buying – Emphasizing convenience and ease of use – Focusing on visual and aesthetic appeal

Extent of Influence (LO 11-4, PPT Slides 27–34) a. Whether marketer and nonmarketer sources have limited or extensive normative or informational influence using the tools at their disposal depends on factors associated with the:  Source  Recipient  Relationship between the source and recipient  Tools b. Source: Marketing and nonmarketing sources differ in their credibility.  Marketing sources are perceived as being less credible, more biased, and manipulative.  Nonmarketing sources appear more credible because we do not believe that they have a personal stake in our purchase, consumption, or disposition decisions.  Use nonmarketing sources to enhance credibility.  Use both marketer and nonmarketer sources.  Use social media to listen to consumers.  Use attractive sources. c. Recipient: Factors that can affect the impact of social influence include their:  Degree of identification with the source  If the source is a marketer, the recipient might be highly influenced to purchase new products if they are strongly attached to the brand.  When the source is a nonmarketer, influence is affected by the extent to which people identify with these sources.  Perceived similarity to the source  The more nonmarketing sources are similar to the consumer, the greater their influence will be. d. Relationship between the source and recipient: To impact social influence:  Target groups with high degree of contact among members. o Sources with whom we have considerable contact tend to exert the greatest influence.  Target dense networks.

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o

The denser the network, more opportunities individuals within a dense group have to interact, and hence the greater the potential for influence.  Consider tie strength. o Tie-strength: The extent to which a close, intimate relationship connects people o When ties are strong, individuals are motivated to conform to the group‘s norms and wishes.

(Exhibit 11.13 on PPT Slide 31) o Tie strength also influences a receiver‘s intentions to buy a brand when the sender uses WOM. e. Tools: To impact social influence use tools that:  Generate high reach o TV commercials during widely watched events o At events that attract large crowds o Internet, cell phones, and other technologies expand marketers‘ reach dramatically  Allow for two-way communication o Tailor to fit buyer‘s needs, reiterate important or complex information, and answer questions. o People are less likely to anticipate what will be said and hence are less likely to take steps to avoid information that is inconsistent with their own frames of reference. o Personal-source information may seem more vivid than information from mass media. f. Discussion Activity 2: Pose the questions to the class.

(PPT Slide 34) 10–15 minutes total  How do marketing and nonmarketing sources differ in their credibility? o Consumers tend to perceive information delivered through marketing sources as being less credible, more biased, and manipulative. In contrast, nonmarketing sources appear more credible because we do not believe that they have a personal stake in our purchase, consumption, or disposition decisions.  How can marketers impact the extent of social influence through source credibility? o Using credible, nonmarketing sources such as experts in a product category o Having celebrities endorse products they actually use

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o

Ensuring that endorsements are transparent regarding the relationship between influencer and brand o Highlighting third-party endorsements of products, such as those by Consumer Reports o Reaching targeted groups by connecting with a virtual community structured around consumers‘ common life experiences or interests  Identify a real-world example of a marketer effectively harnessing source credibility. o Students‘ real-world examples will vary. One example might be the partnership between Nike and professional athletes. By associating their brand with these highly successful and credible athletes, Nike effectively taps into the athletes‘ source credibility to enhance their marketing efforts. The athletes‘ achievements, expertise, and positive public image contribute to the overall credibility of Nike‘s products. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

83. 

What are the types of sources that influence consumers?

Answer: Influence can be wielded by three main sources: o Marketers o Nonmarketing sources—opinion leaders, influencers, reviewers, etc. o Reference groups—aspirational, associative, dissociative

84.

Why do companies sometimes target opinion leaders for marketing attention?  Answer: An opinion leader is an individual who acts as an information broker between the mass media and the opinions and behaviors of an individual or group. Opinion leaders have some position, expertise, or firsthand knowledge that makes them particularly important sources of relevant and credible information, usually in a specific domain or product category. When opinion leaders are regarded as not being paid by marketers, they can be seen as particularly credible. Opinion leaders often have influence because they have no personal stake in whether their opinions are heeded, so their opinions are perceived as unbiased and 206 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

credible. They are also regarded as knowledgeable about acquisition, usage, and disposition options because of their product knowledge and experience. Because they tend to have less bias than traditional advertising and because they are often a part of a consumer‘s reference group, opinion leaders can therefore exert influence.

For instance, Serena Williams is considered an opinion leader in tennis; as a pro athlete, consumers care more about what brands she uses and likes (and dislikes) more so than they would an average person. Targeting such influential people (celebrities or other well-known opinion leaders) is a smart marketing strategy.

85.

What are the three types of reference groups, and how can these groups be described?  Answer: Reference group types include aspirational, associative, and dissociative. Aspirational reference groups are groups that we admire and desire to be like.

Associative reference groups are those to which we currently belong. Dissociative groups represent groups that we do not want to emulate.

86. 

How might consumers respond to normative influence?

Answer: Normative influence is social pressure designed to encourage conformity to the expectations of others. This type of influence implies that we will be punished if we do not follow the norms set by others and will be rewarded for performing the expected behaviors.

87.

What three techniques can marketers use to encourage consumer compliance?  Answer: To encourage consumer compliance, marketers can take a variety of actions based on normative influences.

These techniques include foot-in-the-door, door-in-theface, and even-a-penny-will-help approaches.  The foot-in-the-door technique suggests that by getting a consumer to agree first to a small purchase, they are more likely to agree to a larger purchase. The door-in-the-face technique asks the consumer to comply with a very large or unreasonable request, and then presents a smaller and more reasonable request. The even-a-penny-will-help technique asks for a very small favor—one that is so small that is almost does not qualify as a favor—to gain an audience.

88. 

Differentiate between information valence and modality.

Answer: Information valence describes whether information about something is good (positive valence) or bad (negative valence). Modality refers to the method in which a message is delivered—verbally or nonverbally.

207

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89. 

Why is word of mouth so important for marketers?

Answer: Word of mouth, exemplified online as viral marketing where consumer-to-consumer communication takes place regarding a specific product, is important to marketers because it can have a dramatic effect on consumers‘ product perceptions. Not only is word of mouth pervasive, but it can also be highly persuasive. Many small businesses cannot afford to advertise and rely almost exclusively on word of mouth.

90.

When is social influence likely to be particularly powerful?  Answer: Whether marketer and nonmarketer sources have limited or extensive normative or informational influence using the tools at their disposal depends on several factors as shown in Exhibit 11.1. These factors can be grouped into (a) factors associated with the source, (b) factors associated with the recipient, (c) factors associated with the relationship between the source and recipient, and (d) factors associated with the tools.  For instance, consumers regard nonmarketing sources as more credible than marketing sources. They are also more apt to make a purchase when they identify strongly with the source of influence or are connected by a strong tie to the influencer. Finally, personally delivered sources of influence are powerful sources of influence because they allow for a two-way flow of information. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

22.

Discussion: Identifying an Opinion Leader (LO 11-1) Duration 15–20 minutes. 

As a marketing manager for a new brand of diet hot chocolate, you want to use an opinion leader to stimulate sales of the brand.



How might you identify an opinion leader?



What strategies do you have for using an opinion leader in your marketing communications program?

208

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o

Answer: Students‘ responses will vary. Opinion leaders need to have some position, expertise, or firsthand knowledge that makes them particularly important sources of relevant and credible information, usually in a specific domain or product category.

23.

Discussion: Responding to Negative Word of Mouth (LO 11-3) Duration 5–10 minutes. 

You have recently learned that a lot of positive and negative information is being communicated about the new brand of diet hot chocolate.



Should your strategy be to try to bolster the positive information or to stop the negative information? Why? o

Answer: Students‘ responses will vary. Marketers must act to prevent negative word of mouth, whether offline or online, and work to rectify it once it occurs. In the event of a major crisis, a firm must take immediate steps to address the issues, restore confidence, and begin rebuilding its reputation (see Table 11.1 in the text). If they fail to effectively respond, customers can become brand saboteurs, whose goal is to harm the brand through hostile actions.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

19.

Observational Activity: Word-of-Mouth Log (LO 11-3). 

Have students keep a word-of-mouth log for 24 or 48 hours.

Ask them to document the following: o o o o o

What information they hear.

Whether it is positive or negative.

The source of each piece of information (opinion leader, reference group member, etc.).

What effect they think it will have on their behavior, and why.

Any implications for marketers based on the entries in their log.

20.

Diagramming Activity: Tie Strength and Social Influence (LO 11-4).

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

Ask students to choose an entry from their word-of-mouth log (Activity #1 above) and try to track down the original source of the information. o

o

Did the information flow within a relatively dense social network, or did it flow across social networks via weak ties?

Ask students to attempt to diagram the nature of the information flow within and across various groups, indicating tie-strength and social influence.

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 12: Consumer Diversity

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 211 List of Student Downloads .......................................... 211 Chapter Objectives ................................................. 212 Complete List of Chapter Activities and Assessments ................ 212 Key Terms .......................................................... 212 What's New in This Chapter ......................................... 214 Chapter Outline .................................................... 214 End-Of-Chapter Questions for Review and Discussion ................. 224 Additional Discussion Questions .................................... 227 Additional Activities and Assignments .............................. 228

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the six major aspects of consumer diversity that have important effects on consumer behavior: age; gender (and gender identity); sexual orientation; and regional, ethnic, and religious differences. It is important to emphasize that the descriptions in this chapter are broad tendencies that may not apply to individual consumers. Marketing to any consumer group requires careful research to identify specific needs, wants, and behavioral patterns that can be addressed using appropriate marketing strategies and tactics.

Age is a key factor because people of the same age have similar life experiences, needs, symbols, and memories that may lead to similar consumption patterns.

Gender and gender identity differences also affect consumer behavior.

With evolving sex roles are changing as more women delay marriage, become financially independent, and build careers; men are learning to become more sensitive and caring. Men and women also differ in terms of consumer traits, information-processing styles, decision-making styles, and consumption patterns. In addition, more marketers are using sexual orientation to target gay and lesbian consumers for various goods and services.

Consumption patterns may differ in various regions of the United States and the world, leading some marketers to tailor strategies specifically to these regions. Clustering helps marketers describe consumers in different regions based on similar demographic and consumption characteristics rather than by geographic location only.

The three largest U.S. ethnic groups are Hispanic and Latino Americans, Black and African Americans, and Asian Americans. Changing population trends require marketers to target carefully and understand the consumer behavior of each group while accurately and sensitively representing them in advertising. Many marketers are taking a multicultural approach, trying to appeal to several subcultures instead of just one. Marketers who want to sell in other countries must also be familiar with important ethnic groups in other areas.

Finally, religious values and customs can also influence consumer behavior and form the basis of marketing strategies.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 211 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 12-1

Describe how birth cohorts influence consumer behavior.

12-2

Describe how gender and sexual orientation affect consumer behavior.

12-3

Discuss how regional influences affect consumer behavior.

12-4

Discuss how ethnic and religious characteristics influence consumer behavior.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 12-1 12-2 12-3 12-4 12-1 – 12-4 12-1 – 12-4 12-1 – 12-4

Activity/Assessment Polling Activity Discussion Activity 1 Group Activity Discussion Activity 2 Learn It: Concept Check Quiz: Chapter 12 Consumer Diversity Apply It: Assignment: Chapter 12 Consumer Diversity Apply It: Case Activity: Chapter 12 Consumer Diversity

Source (i.e., PPT slide, Workbook) PowerPoint Slide 15 PowerPoint Slide 22 PowerPoint Slide 26 PowerPoint Slide 34 MindTap Learning Path Chapter 12 Folder MindTap Learning Path Chapter 12 Folder MindTap Learning Path Chapter 12 Folder

Duration 5–10 mins.

5–10 mins.

20-25 mins.

5–10 mins.

35–45 mins.

35–45 mins.

35–45 mins.

[return to top]

KEY TERMS Accommodation: This occurs when an ethnic group responds more positively to communication to the extent that more effort is invested in the communication.

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Acculturation: The process of change in the values, beliefs, behaviors, and/or identities of cultural groups due to intercultural contact to adjust to their new or changing cultural context.

Agentic goals: Goals that emphasize mastery, self-assertiveness, and self-efficacy.

Baby Boomers: People born between 1946 and 1964.

Bicultural consumers: These consumers identify with their cultural heritage and with their host culture. They have beliefs and values, and express behaviors, from both cultures.

Clustering: A statistical technique that can group consumers based on their common characteristics, such as demographics and consumption lifestyles.

Communal goals: Goals that emphasize affiliation and fostering harmonious relations with others.

Ethnic group: Group of people who share a common heritage, set of values, beliefs, behaviors, religion, and experiences.

Faith-based marketing: This explicitly addresses consumers‘ religious beliefs and values with faith-friendly products, services, and communication.

Gen Xers: People born between 1965 and 1980.

Gender: Attitudes, feelings, and behaviors that a given culture associates with a person‘s biological sex.

Gender identity: A component of gender that describes a person‘s psychological sense of their gender.

Generation Alpha: People born in 2012 and after.

Generational Cohort Theory: Theory that specifies that, independent of age and period, birth cohorts or generations (groups of people with the same years of birth) share similar defining life events, and therefore long-lasting values and patterns of behavior.

Intensity of ethnic identification: The extent to which people identify with their ethnic group.

Millennials: People born between 1981 and 1996.

Multicultural marketing: Marketing strategies and tactics that appeal to a variety of cultural groups at the same time.

Sex: A person‘s biological sex assignment. The term is used when the biological distinction of sex assignment (e.g., sex assigned at birth) is predominant.

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Sexual orientation: A person‘s sexual and emotional attraction to another person and the behavior and/or social affiliation that may result from this attraction.

Silent Generation: Members of this generation were born between 1928 and 1945.

Zoomers or Gen Zers: People born between 1997 and 2012. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:      

Updated learning objectives Revised chapter structure Latest insights into gender and sexual orientation effects Numerous new National and International examples Numerous academic studies added Almost all exhibits are new

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LIII.

How Age, Period, and Cohort Influence Consumer Behavior (LO 12-1, PPT Slides 4–15) a. Exhibit 12.1 (PPT Slide 3) provides an overview of the chapter. b. Generational Cohort Theory: Theory that specifies that, independent of age and period, birth cohorts or generations (groups of people with the same years of birth) share similar defining life events, and therefore long-lasting values and patterns of behavior  Exhibit 12.2 (PPT Slide 6) describes the difference between age, period, and birth cohort effects.  The exact start and end of birth cohorts or consumer generations is somewhat fluid and depends on specific defining events. As the Pew Research organization points out: ―the lines that define the generations 214

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are useful tools for analysis, but they should be thought of as guidelines, rather than hard-and-fast distinctions.‖ c. Silent Generation (born between 1928 and 1945):  Tend to engage in more schematic, heuristic processing  May need tailored services or education when making complex decisions  May resent being assisted with everyday experiences such as shopping or going to the doctor  Plan to retain control or participate with caregivers in joint consumption experiences  Popular brands: Amazon, Chico‘s, Kroger, Safeway, and Apple d. Baby Boomers (born between 1946 and 1964):  Desire instant gratification and are willing to buy on credit  Strongly value individualism and freedom to do what they want, when and where they want  Have so much buying power that they are the target for a variety of products and services  Personal care products, fitness goods and services, cosmetic surgery, and similar offerings are especially attractive  May not readily recognize fraudulent offers and phishing attempts  Marketers: Use media geared to this generation‘s interests  Retailers: Design physical outlets to provide a more age-friendly shopping environment  Popular brands: Amazon, Nike, Apple, Target, and Talbots e. Generation X (born between 1965 and 1980):  Turn to the Internet first to assist with purchase decisions and to make their purchases  More highly educated than are the preceding generations  A bit disillusioned and less materialistic than other age groups  Research purchases and like to customize offerings to personal needs and tastes  Opportunities for tailored financial services and personalized communication

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

Respond to messages they see as clever or in tune with their values, attitudes, and interests or those that appeal to nostalgia for their younger days  Marketers: Reach through popular or alternative music radio stations, music-related publications, and network or cable TV  Popular brands: Apple, Amazon, and Nike f. Generation Y or Millennials (born between 1981 and 1996):  The generation of ―digital pioneers‖  More media savvy than earlier generations  Seek immediacy, entertainment, social interaction, and self-expression  Want improved productivity and creativity just by asking questions in natural language  Spend more time preparing food, using their computer for leisure, playing games, and participating in sports  Desire homeownership  Popular brands: Amazon, Nike, Target, H&M, and Sephora g. Generation Z or Zoomers (born between 1997 and 2012):  The first generation of ―digital natives‖  Almost 40 percent indicate social media is prime source of influence in purchase decisions  Expect more autonomy and faster transactions (ordering and delivery)  Value sustainability and prioritize the reduction of global warming more than other generations do  The most diverse generation in the United States  Popular brands: YouTube, Google, Netflix, and Amazon h. Generation Alpha (born in 2012 and after):  Taking the role of lobbyists within the household, communicating the importance of sustainability, social cohesion, and mental health  25 percent have encouraged parents to buy more sustainable products  21 percent have encouraged parents to eat less meat  Sees though ―greenwashing‖ and demands authentic actions by brands for a better world  Will be the most culturally diverse and globally connected generation  Expected to be the most social, global, and mobile i. Members of Generation Z and early members of Generation Alpha are an important target market because they:  Influence billions of dollars in family purchases 216 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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 

Spend money on their own Form fundamental values and preferences that have long-lasting effects j. To market to these younger generations:  Build early brand awareness and preference among these generations.  Position products as helpful for dealing with adolescent pressures.  Reach out to younger consumers in responsible ways.  Use short, snappy phrases and avoid of out-of-date language.  Be authentically inclusive.  Target younger consumers through certain TV networks, TV programs, magazines, radio stations, the Internet, and social media.  Reach teens through recreation or special events that showcase the brand or product in a lifestyle or sports setting. k. Polling Activity: Conduct a poll with the class. (PPT Slide 15) 5–10 minutes total  Do the generational differences captured here accurately reflect your own consumer behavior? If not, how do they differ? o While it is useful for marketing to understand age, period, and cohort (APC) effects on consumer behavior, the exact start and end of birth cohorts or consumer generations is somewhat fluid and depends on specific defining events. As the Pew Research organization points out: ―the lines that define the generations are useful tools for analysis, but they should be thought of as guidelines, rather than hard-and-fast distinctions.‖ LIV.

How Gender, Gender Identity, and Sexual Orientation Affect Consumer Behavior (LO 12-2, PPT Slides 16–22) a. Gender: Attitudes, feelings, and behaviors that a given culture associates with a person‘s biological sex b. Sex: A person‘s biological sex assignment. The term is used when the biological distinction of sex assignment (e.g., sex assigned at birth) is predominant c. Gender identity: A component of gender that describes a person‘s psychological sense of their gender d. In many cultures, men and women are expected to behave according to sex-role norms learned early in childhood.

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

Agentic goals: Goals that emphasize mastery, selfassertiveness, and self-efficacy  Communal goals: Goals that emphasize affiliation and fostering harmonious relations with others  Traditional sex roles are changing in many countries.  Contemporary ad messages portray stereotyped sex roles less often than in the past and are even banned in some countries. e. Despite evolving sex roles, men and women still exhibit differences in their acquisition, consumption, and postconsumption behavior.  Information Search: o Women are more likely to engage in detailed, thorough examination of messages and make extended decisions based on product attributes. o Men seem more selective information processors, driven more by overall themes and simplifying heuristics.  Acquisition and Consumption: o Women tend to be more loyal than men to individuals, whereas men tend to be more loyal than women to groups. o Men respond positively to loyalty programs that emphasize status, while women respond positively to loyalty programs that emphasize personalization. o Women approach situations with communal goals.  Post-Consumption Processes: o Men appear to be more sensitive to experiences of positive emotions (enthusiasm, strength), whereas women display a tendency toward negative emotions (fear, nervousness). o Women more than men engage in ―beauty work,‖ like using cosmetics and tanning. f. Marketers approach the evolving sex roles in society by (1) broadening their targeting, (2) product adaptation, and (3) new product development.  Increasingly target the same product more broadly across the gender spectrum  Increasingly adapt products to broader needs and requirements than those of the traditional gender segment  Increasingly develop new products and services for specific segments in the gender spectrum

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g. Sexual orientation: A person‘s sexual and emotional attraction to another person and the behavior and/or social affiliation that may result from this attraction  Marketers across the world are seeking to reach gay, lesbian, bisexual, and/or transgender consumers.  Organizations are also targeting LGBTQ+ consumers in their corporate advertising and in their personnel recruitment efforts. h. Discussion Activity 1: Pose the question to the class. (PPT Slide 22) 5–10 minutes total  How might an individual's gender identity impact their consumer behavior and preferences in today's diverse market? o The impact of gender identity on consumer behavior in today's diverse market is a complex and nuanced topic, but gender identities can influence shopping patterns, brand preferences, and consumption choices. o One aspect to consider is how gender identity shapes consumer needs and desires. People may align their purchasing decisions with products and brands that align with their gender identity, seeking validation, representation, and personal expression through their consumption choices. For example, individuals who identify as transgender or non-binary may gravitate towards genderneutral or inclusive brands that embrace diversity. o Moreover, gender identity can also influence the way individuals respond to marketing and advertising messages. Traditional gender stereotypes and societal expectations can shape consumer behavior, with individuals conforming to or resisting these norms. Marketers are increasingly recognizing the importance of inclusive and gender-sensitive advertising campaigns that resonate with a broader range of gender identities. o It is important to note that gender identity intersects with other factors such as age, culture, and socioeconomic status, further influencing consumer behavior. For instance, younger generations tend to be more open-minded and inclusive, seeking brands that reflect their progressive values. o Overall, the impact of gender identity on consumer behavior highlights the need for 219 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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marketers to adopt a more inclusive and diverse approach. By understanding and respecting the diversity of consumers, businesses can develop strategies that resonate with a broader base, fostering brand loyalty and engagement.

LV.

How Regional Influences Affect Consumer Behavior (LO 12-3, PPT Slides 23–26) a. Residents in one part of the country can develop patterns of behavior that differ from those in another area  Clustering: A statistical technique that can group consumers based on their common characteristics, such as demographics and consumption lifestyles  Marketers can develop an offering or communication to appeal to different regions of the United States.  Marketers can use clustering systems to help find new customers, learn what their customers like, develop new products, buy advertising, locate store sites, and target consumers through media.  Marketers should be cognizant of the large regional differences in preferences and consumption behaviors that exist in countries other than their own. b. The ways in which cultures differ can affect how consumers think and behave.  Individualism versus Collectivism: o Individualism emphasizes the individual; collectivism emphasizes connections to others. o Marketers might apply this distinction to the way in which they depict consumers in ads for each culture—as ruggedly individual or as part of a group, for instance.  Horizontal versus Vertical: o Horizontal orientation values equality; vertical orientation emphasizes hierarchy. o This distinction is especially important to marketers of status-symbol products that will appeal to consumers influenced by vertical orientation.  Masculine versus Feminine: o Masculine focuses on individual advancement and tends to be more aggressive; feminine tends to be more concerned with social relationships. o Advertising with aggressive themes is more likely to strike a chord in masculine cultures than in feminine cultures.

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c. Marketers need to understand global differences in consumer behavior so that they can tailor their marketing strategy to specific regions and countries.  Many companies adjust their marketing activities to accommodate global consumer differences. d. Group Activity: Break the class into small groups of two to three students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 26) 20–25 minutes total  Create a detailed list of the basic characteristics of the region where your school is located.  Describe how this region differs from other regions.  Explain how these differences could influence marketing strategy. o Students‘ responses will vary depending upon where they are located.

LVI.

How Ethnic and Religious Influences Affect Consumer Behavior (LO 12-4, PPT Slides x) a. Ethnic group: Group of people who share a common heritage, set of values, beliefs, behaviors, religion, and experiences b. Acculturation: The process of change in the values, beliefs, behaviors, and/or identities of cultural groups due to intercultural contact to adjust to their new or changing cultural context  Racism and ethnocentricism prompt acculturated consumers to avoid products associated with particular ethnic groups. c. Bicultural consumers: These consumers identify with their cultural heritage and with their host culture. They have beliefs and values, and express behaviors, from both cultures d. Multicultural marketing: Marketing strategies and tactics that appeal to a variety of cultural groups at the same time  Intensity of ethnic identification: The extent to which people identify with their ethnic group  Accommodation: This occurs when an ethnic group responds more positively to communication to the extent that more effort is invested in the communication e. There are three main ethnic groups within the United States:  Hispanic and Latino Americans  Black and African American 221

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 Asian American f. Marketers have devised a variety of approaches to reach the growing segment of American consumers of Hispanic and Latino ethnicity:  Build customer loyalty by developing offerings specifically for this segment.  Tailor distribution to Hispanic American consumers.  Use Spanish-language media, including TV, radio, print, billboards, and websites.  Spend more on advertising to reach this segment and create English and Spanish language messages that appeal to Hispanic Americans in multiple media. g. Marketers are addressing the specific needs and interests of Black and African American consumers in several ways:  Create offerings in ‖food desert‖ areas and neighborhoods with limited health-care services.  Develop products specifically for use by these consumers.  Use multiple media that target this segment specifically, including TV networks such as Black Entertainment Television, targeted websites such as BET.com, magazines such as Ebony, and more.  Address their specific needs and values and represent them accurately and fairly in ads.  Use African American models and actors in ads for a positive effect on consumers outside the targeted segment as well. h. For marketers targeting the Asian American consumer:  Develop offerings for specifically for this segment and tailor distribution accordingly.  Harness their tech savvy and intense use of online media.  Deliver messages to Asian Americans in their native language.  Use subtle messages that focus on tradition, the family, and cooperation.  Feature Asian models in ads. i. Ethnic diversity is also common across the world.  Canada: English, French, Cantonese, Hindi, Mandarin, Punjabi, and Tamil  Thailand: Thai, Chinese, Laotian, Indian, and Burmese  India: 80 languages and 120 dialects j. Some religious influences or traditions can affect consumer behavior.

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

May prevent consumption of certain products or services  May affect consumption timing/cycles  Can also affect attitudes and actions regarding issues such as environmental protection  Faith-based marketing: This explicitly addresses consumers‘ religious beliefs and values with faithfriendly products, services, and communication  Marketers should: o Target Christian consumers through religious radio and TV stations and programs. o Advertise in one of the many segment-specific publications, websites, or social media. o Demonstrate understanding of and respect for the religious group‘s beliefs and customs. o Distribute religious products through specialized stores and websites. k. Activity: Pose the questions to the class. (PPT Slide 34) 5–10 minutes total  Why is intensity of ethnic identification important to marketing strategy? o Ethnic identity—how strongly people identify with their ethnic group—influences consumers‘ consumption patterns. Individuals who have a strong ethnic identity are more likely to exhibit the consumption patterns of their ethnic group and, therefore, will respond more favorably to marketing strategies that target those patterns.

Racism and ethnocentrism can also prompt consumers to avoid products and lifestyles associated with other than their own ethnic groups.  How can marketers influence ethnic identification? o Strong identifiers are more likely to be influenced by radio ads, billboards, family members, and coworkers and are less likely than weak identifiers to use coupons. Changes in the environment may influence ethnic identification as well. For instance, people who felt that they were the only person from Brazil in a classroom were more likely to endorse products or brands from a related ethnic identity, such Uruguay. o The marketing strategies outlined on the slides in this section provide many specific strategies for marketers. [return to top] 223 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

91.

Describe how the six generations (i.e., Silent Generation, Baby Boomers, Generation X, Generation Y or Millennials, Generation Z or Zoomers, and Generation Alpha) differ and clarify how marketers could better cater to their needs and wants.  Answer: Silent Generation (born between 1928 and 1945): Consumers in this segment tend to engage in more schematic, heuristic processing. With the youngest members turning 80 years in 2025, they may resent being assisted with everyday experiences such as shopping or going to the doctor. They also plan to retain control or participate with caregivers in joint consumption experiences.  Baby Boomers (born between 1946 and 1964): Consumers in this segment desire instant gratification and are willing to buy on credit. They strongly value individualism and want the freedom to do what they want, when and where they want. They also tend to be healthier and more active than those of previous generations and may seek to rekindle their interest in self-expression and affiliation through identity-inspired consumption.  Generation X (born between 1965 and 1980): Gen Xers tend to turn to the Internet first to assist with purchase decisions and to make their purchases. This generation is also more highly educated than are the preceding generations. This segment a bit disillusioned and less materialistic than other age groups. Many also delayed parenthood because of time-consuming work schedules, financial difficulties due to worsening economic conditions, and shifting societal norms.  Generation Y or Millennials (born between 1981 and 1996): Millennials are the generation of ―digital pioneers.‖ They flexibly switch between being online and offline and are more media savvy than earlier generations are. They seek four benefits from their hardware (devices) and software (apps): immediacy, entertainment, social interaction, and self-expression. Millennials value a balance between their professional and personal life spheres more than preceding generations do, and a desire for homeownership ranks high among Gen Y consumers.  Generation Z or Zoomers (born between 1997 and 2012): Gen Zers fully experienced the online revolution and are the first generation of ―digital natives.‖ Almost 40 percent of adult Gen Z consumers indicate that social media is their 224 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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





prime source of influence in purchase decisions. They expect more autonomy and faster transactions (ordering and delivery) using smart retail technologies. Gen Zers also value sustainability and prioritize the reduction of global warming more than other generations do. Further, Gen Z is the most diverse generation in the United States.

Generation Alpha (born in 2012 and after): Gen Alpha is taking the role of lobbyists within the household, communicating the importance of sustainability, social cohesion, and mental health. As such, 25 percent have encouraged their parents to buy more sustainable products and 21 percent have encouraged their parents to eat less meat. This generation sees though ―greenwashing‖ and demands authentic actions by brands for a better world.

Generation Alpha will be the most culturally diverse and globally connected generation.

The exact start and end of birth cohorts or consumer generations is somewhat fluid and depends on specific defining events. As the Pew Research organization points out: ―the lines that define the generations are useful tools for analysis, but they should be thought of as guidelines, rather than hard-and-fast distinctions.‖ It is challenging for marketing research to distinguish between age, period, and cohort effects in practice because ideally one would need to follow larger groups of consumers throughout their entire life. Still, it is important to understand that one‘s age, the current period in time (events), and one‘s birth cohort shape important consumer decisions such as media consumption, buying luxuries and necessities, buying or renting a house, deciding on one‘s living arrangements, work–life balance, and so on. The differences between consumers of different birth cohorts challenge marketers to acknowledge diversity and be inclusive, also with respect to younger and older generations of consumers.

92.

What is the difference between gender, gender identity, and sexual orientation, and why is this distinction important for marketers?  Answer: Gender refers to the attitudes, feelings, and behaviors that a given culture associates with a person‘s biological sex. Gender identity is a component of gender that describes a person‘s psychological sense of their gender. Sexual orientation reflects a person‘s sexual and emotional attraction to another person and the behavior and/or social affiliation that may result from this attraction.

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

93. 

Marketers once relied heavily on gender as a basis for segmentation. While many products are still geared toward gender-specific needs, marketers today approach evolving roles in society by (1) broadening their targeting, (2) product adaptation, and (3) new product development.

Marketers across the world are also now seeking to reach gay, lesbian, bisexual, and/or transgender consumers as society embraces a wider range of sexual orientations.

What is clustering, and why would marketers use it?

Answer: Clustering is the grouping of consumers according to common characteristics using statistical techniques.

Marketers uses clustering as a method of identifying consumers who are similar in terms of demographics and/or consumption lifestyles, such as income, education, age, household type, degree of urbanity, attitudes, and product/service preferences.

94.

What are the three main subcultures within the U.S. population?  Answer: The three main U.S. subcultures are Hispanic and Latino Americans, Black and African Americans, and Asian Americans.

95.

How do acculturation and intensity of ethnic identification affect consumer behavior?  Answer: Acculturation is the process of adapting to a new or changing cultural context. One‘s intensity of ethnic identification is often inversely correlated to one‘s degree of acculturation. If one chooses to strongly identify with their ethnic group, then one is less likely to acculturate to their new culture. These consumers are more likely to exhibit the consumption patterns of their ethnic group.

96.

Why would a company adopt multicultural marketing rather than target a single subculture?  Answer: Multicultural marketing is an effort to appeal to a variety of cultures at the same time. Targeting each individual subculture by making many different commercials can be very expensive. Multicultural marketing attempts instead to include all of the likely users of the product into one message. It is a message of inclusion rather than one of singling out individual cultures. Obviously, this type of strategy needs to be considered thoroughly before implementation to make sure that different cultures interpret the message as it is intended.

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97.

Why do marketers have to consider regional influences when targeting consumers in a country?  Answer: Regional influences, such as geography, climate, and clusters of different types of people, vary within states and nations. Different values and lifestyles can be directly influenced by these factors, so marketers need to be aware of differing customer needs that might evolve from these regional influences.

98.

Identify some of the ways in which religion can influence consumer behavior.  Answer: Some religious influences or traditions can affect consumer behavior. For instance, religion can prevent consumption of certain products and services. Religious beliefs can also alter the types of food that are consumed during different times of the year. Religious beliefs can also affect attitudes and actions regarding issues such as environmental protection. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

24.

Discussion: Consumer Behavior Over the Years (LO 12-1) Duration 5 minutes. 

The U.S. culture has been described as one of both convenience and choice. Explain how the availability and variability of goods and services has influenced the consumer behavior of students compared to that of their older relatives. o

Answer: The availability and variability of goods and services, combined with technological advancements, have significantly shaped consumer behavior among students compared to their older relatives. Students have greater access to a wide range of products, customization options, and convenient shopping methods. They are influenced by social media and tend to prioritize sustainability and ethical consumption.

These factors collectively contribute to a distinct consumer behavior pattern observed among students in today's convenience- and choice-driven U.S. culture.

227

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25.

Discussion: Gender Positioning (LO 12-2) Duration 5–10 minutes. 

Name a product that has been traditionally perceived as female-oriented. How might this product be positioned more broadly? o

Answer: Students‘ examples may vary. One real-world example is the Dove Men+Care campaign, which challenges traditional gender stereotypes and promotes a modern, positive image of fatherhood.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

21.

1)

Marketing Analysis Activity: Generational Marketing (LO 12

Select a product or service category that individuals of all age groups consume. Ask students to conduct a detailed research analysis of the marketing techniques used to attract the six generational segments discussed in this chapter in the following areas: (a) brands or services offered, (b) package design, (c) advertising content, (d) media selection, (e) sales promotion, and (f) distribution strategy.



Students may collect this information via an Internet search, a content analysis of advertising messages and media used, in-store visits, and/or interviews with marketers.



Have students answer the following questions as part of their analysis: (a) Which techniques are used to market to multiple age groups? (b) Which techniques are used to appeal to specific age groups? (c) How do these techniques differ from age group to age group? o

Students‘ examples will vary.

[return to top]

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Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 230 List of Student Downloads .......................................... 231 Chapter Objectives ................................................. 231 Complete List of Chapter Activities and Assessments ................ 231 Key Terms .......................................................... 232 What's New in This Chapter ......................................... 233 Chapter Outline .................................................... 234 End-Of-Chapter Questions for Review and Discussion ................. 244 Additional Discussion Questions .................................... 247 Additional Activities and Assignments .............................. 248

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore household and social class influences on consumer behavior.

Households include both families and unrelated people living together, as well as singles. The proportion of nontraditional households has increased because of factors such as (1) delayed marriage and cohabitation, (2) dual-career families, (3) divorce, (4) smaller families, and (5) same-sex couples. Households exert considerable influence on acquisition and consumption patterns. Members can play different roles in the decision process. Partners in a relationship can play different roles in making decisions, and the nature of their influence depends on the offering and their relationship. Children can also influence the decision process by making requests of parents. It is useful to distinguish four typical patterns in household decisionmaking: autonomous decisions, partner-dominated decisions, childdominated decisions, and syncratic decisions.

Individuals in a society can be grouped into status levels (upper, middle, and lower), making up a social class hierarchy. Class distinctions are significant because members of a particular class share common life experiences and therefore values and consumer behavior patterns, although many variations occur within groups.

Individuals are most likely to be influenced by members of their own class because they regularly interact with them. Still, influence can cross class lines.

A variety of factors determine social class, the most critical of which are occupation and education. Sociologists use measurement indexes to determine someone‘s social class standing. Three major trends producing an evolution in social class structure are upward mobility, downward mobility, and social class fragmentation. Social class influences consumer behavior in four major ways: (1) through conspicuous consumption (acquiring and displaying offerings to show class standing) or voluntary simplicity (consciously choosing a less material lifestyle); (3) through compensatory consumption, trying to offset some deficiency by engaging in greater-than-usual consumption; and (4) through the meaning of money. Despite the blurring of social class lines, four classes with specific values and consumption behaviors make up sizable segments within the overall market: the upper, middle, and working classes, and people experiencing homelessness.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 13-1

Explain how the family life cycle and other forces affect the various types of households and families.

13-2

Discuss the roles that household members play in the family decision process, and how companies can build on these roles to market more effectively.

13-3

Explain the social class hierarchy, major determinants of social class standing, and how social class changes over time.

13-4

Explain how social class influences consumer behavior and why these influences are considerations when marketers plan strategy and tactics.

13-5

Describe consumption patterns of specific social classes and the implications for marketers.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 13-1 13-2 13-4 13-5 13-1 – 13-5 13-1 – 13-5

Activity/Assessment Discussion Activity 1 Discussion Activity 2 Discussion Activity 3 Group Activity Learn It: Concept Check Quiz: Chapter 13 Household and Social Class Influences Apply It: Assignment: Chapter 13 Household and

Source (i.e., PPT slide, Workbook) PowerPoint Slide 10 PowerPoint Slide 18 PowerPoint Slide 33 PowerPoint Slide 40 MindTap Learning Path Chapter 13 Folder

Duration

MindTap Learning Path Chapter 13

35–45 mins.

5–10 mins.

5–10 mins.

5–10 mins.

20–30 mins.

35–45 mins.

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13-1 – 13-5

Social Class Influences Apply It: Case Activity: Chapter 13 Household and Social Class Influences

Folder MindTap Learning Path Chapter 13 Folder

35–45 mins.

[return to top]

KEY TERMS Compensatory consumption: Takes place when buying products, services, or brands to offset frustrations or difficulties in life.

Conflict in household decision making: When household members disagree on who is or was responsible for which role in the decision-making process.

Conflict resolution: Resolving conflict in households through problem solving, persuasion, bargaining, and politics.

Conspicuous compassion: Publicly donating to charity to signal one‘s virtue.

Conspicuous consumption: Acquiring and displaying goods, services, and brands to signal one‘s (usually) higher social class to others.

Conspicuous waste: Visibly buying products and services that one never uses.

Downward mobility: Moving down to a lower class than one‘s parents were in.

Earned status: Status acquired later in life through personal achievements.

Extended family: The nuclear family plus relatives such as grandparents, aunts, uncles, and cousins.

Family: A group of individuals living together who are related by marriage, birth, or adoption, including same-sex couples living together long-term with or without children.

Family life cycle: Stages of family life, depending on the number and age of the caregivers and how many children are living in the common dwelling.

Fraudulent symbol: Products, services, or brands that becomes so widely adopted that they lose their status.

Household: Composed of one or more individuals who share the same dwelling or housing unit.

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Household decision tasks and roles: The activities that the members of a household perform in making a household decision, from problem recognition to post-consumption action.

Inherited status: Status which derives from parents at birth.

Nuclear family: A couple and their dependent children.

Parody display: When status symbols start in the lower social classes and move upward.

Social class hierarchy: The grouping of members of a society according to status from high to low.

Socioeconomic status (SES): A consumer‘s relative status in society as measured by, for instance, income, educational level, occupational level, and area of residence.

Status crystallization: When a consumer has a consistent pattern across the indicators of socioeconomic status.

Status symbol: A product, service, or brand that signals one‘s higher social class standing to other consumers.

Status threat: When consumers fear downward social mobility.

Subjective social status (SSS): A consumer‘s perceived relative social standing in society. It is consumer‘s self-identification in a particular social class.

Trickle-across consumption: When products, services, or brands are adopted by all social classes (almost) instantaneously.

Trickle-down consumption: When products, services, or brands consumed by upper classes are adopted by lower classes.

Trickle-up consumption: When brands, products, or services consumed by lower classes are adopted by upper classes. This is sometimes called ―status float‖ or ―bubble-up.‖ Upward mobility: Involves moving up to a higher class than one‘s parents were in.

Voluntary simplicity: Limiting acquisition and consumption to live a less material life. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:

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     

Updated learning objectives New model of household decision making Latest insights into subjective and objective social class effects Numerous new examples Numerous academic studies added Many new exhibits

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LVII.

How the Household Influences Consumer Behavior (LO 13-1, PPT Slides 4–10) a. Exhibit 13.1 (PPT Slide 3) provides an overview of the chapter. b. Household: Composed of one or more individuals who share the same dwelling or housing unit c. Family: A group of individuals living together who are related by marriage, birth, or adoption, including same-sex couples living together long-term with or without children  Nuclear family: A couple and their dependent children  Extended family: The nuclear family plus relatives such as grandparents, aunts, uncles, and cousins  The number of nontraditional households has greatly increased, even as average household size is getting smaller. d. Exhibit 13.1 (PPT Slide 6) depicts how households change as the household life cycle changes.  Family life cycle: Stages of family life, depending on the number and age of the caregivers and how many children are living in the common dwelling  Marketers must consider the great variation in needs over the family life cycle and the effect on consumer behavior within households. o In general, spending increases as households shift from young singles to young married and then remains high until falling sharply at the older married or older single stages. o Household buying patterns can change over time.

234

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o

Family life cycle changes are much more diverse than any classification can capture. e. There are five main factors altering the basic structure and characteristics of households.  Delayed marriage and cohabitation  Dual careers  Divorce  Smaller families  Same-sex couples f. There are several implications for marketers:  Products and services that offer convenience can be marketed specifically to dual-career and divorced households.  Marketers of costly offerings must appeal to both partners.  Evolving and nontraditional households can be targeted with specific products that consider their situation, needs, and decision-making process.  Marketers should avoid the perception of ―rainbow washing‖ by providing year-round and measurable support for the LGBTQ+ community. g. Discussion Activity 1: Pose the questions to the class.

(PPT Slide 10) 5–10 minutes total  Explain the differences between family and household. o A household is composed of one or more individuals who share the same dwelling or housing unit, regardless of whether they are related by family ties. A family is commonly defined as a group of individuals living together who are related by marriage, birth, or adoption.

Families include same-sex couples living together long-term with or without children, and other forms of long-term relationships. Thus, a family is a specific type of household.  Discuss how knowing the distinction between the two can be important for marketers. o The number of nontraditional households has greatly increased. Also, pets (cats, dogs, or other animals) are regarded by some as special family members and can be an important influence on household spending. Marketers must consider the effect these changes have on consumer behavior within households.

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LVIII.

Roles and Tasks That Household Members Can Have (LO 13-2, PPT Slides 11–18) a. Household decision tasks and roles: The activities that the members of a household perform in making a household decision, from problem recognition to post-consumption action  Problem recognition: The member who identifies that there is a problem between the desired state and actual state of one or more household members of the household.  Information search: The member who searches for information about solutions to the problem, in terms of products, services, or brands to acquire or dispose of, or behavioral routines to change.  Influence: The member who influences the decision directly by expressing their preferences, or indirectly by having their preferences accounted for by other members of the household.  Choice: The member who makes the final choice for the course of action to take, such as the product, service, or brand to choose.  Purchase: The member who makes the actual purchase (more generally: who implements the choice), for instance, by going to a physical store, clicking on the ―order‖ button on a website, or signing a contract.  Payment: The member who pays for the purchase.  Consumption: The member who consumes the product, service, or brand. Consuming includes owning and using.  Post-consumption action: The member who shares experiences and expresses satisfaction or dissatisfaction to others outside the household, for instance, to the retailer or producer of the product, service, or brand, or to others in the social network.  Note: Each task or role can be performed by a single, multiple, or all household members, and not all are necessarily fulfilled, in any given situation.  Exhibit 13.4 (PPT Slide 13) illustrates tasks and roles in household decision-making. b. It is useful to distinguish four typical patterns in household decision-making:  Autonomous decisions: Occur when a single member in the household takes (almost) all roles in the decision-making process, from problem recognition to 236

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post-consumption action, for a product or service consumed solely by that member  Partner-dominated decisions: Occur when a single partner in the household has the largest influence on a decision to acquire a product, service, or brand that is consumed by multiple members of the household, and in an extreme case, not by that partner  Child-dominated decisions: Occur when one or more children have the largest influence on a decision to acquire a product or service that is consumed by all members of the household  Syncratic decisions: Occur when all members in the household contribute to the decision-making process.

Syncratic decisions are joint or democratic decisions c. Conflict in household decision making: When household members disagree on who is or was responsible for which role in the decision-making process.  Conflict resolution: Resolving conflict in households through problem solving, persuasion, bargaining, and politics d. Partners in a relationship can play different roles in making decisions, and the nature of their influence depends on the offering and their relationship.  A partner with a higher income who feels more psychologically involved in the decision may have more influence.  A partner‘s demographic factors such as being older and having a higher education level affect their influence in household decisions.  A traditional gender-role orientation tends to result in more male-dominated household decisions.  Partners in households typically follow an informal process for decision-making in which they have limited awareness of each other‘s knowledge and decision strategy.  Making syncratic decisions may help partners learn each other‘s preferences and improve joint well-being in other ways.  Partners also play a major role in the socialization of the children in the household to become consumers. e. Children play an important role in household decisions by attempting to influence their caregivers‘ acquisition and consumption behavior, and when making their own decisions.  Adolescents try to influence family decision-making by bargaining (making deals), persuasion (trying to 237 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences

influence the decision in their favor), emotional appeals (using emotion to get what they want; similar to the pestering by young children), and requests (directly asking).  Caregivers can use not only the same strategies with their children but also expert (knowledge), legitimate (power), and directive (parental authority) strategies.  Children are more likely to use their influence for child-related products.  Children tend to have less influence when caregivers are more involved in the decision process or are more traditional.  Socialization is a two-way process in which caregivers teach children how to make consumption decisions and actions and in which children teach their caregivers.  The type of household determines the nature of children‘s influence.  Children‘s influence varies at different stages of the decision process. f. Marketers need to recognize that appealing only to deciders or purchasers may be too narrow a strategy, because different household members may play different and multiple decision roles.  Marketers should determine which family members are involved in each acquisition decision and appeal to all members. g. Marketing to children raises ethical and legal issues.  Websites for children under 13 must comply with the federal Children‘s Online Privacy Protection Act (COPPA) and obtain parental permission before collecting information from children.  Some U.S. states also have special rules protecting the personal details of children who access online sites. h. Discussion Activity 2: Pose the questions to the class.

(PPT Slide 18) 5–10 minutes total  What roles do the members of your household play in acquisition, consumption and disposition decisions?  Provide examples of ways in which they perform these r. o Students‘ responses will vary.

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LIX.

Social Class (LO 13-3, PPT Slides 19–26) a. Social class hierarchy: The grouping of members of a society according to status from high to low  Consists of identifiable groups of individuals whose wealth, behaviors, and lifestyles differ from those of members of the other classes  Members tend to share similar values and behavior patterns.  They are loose collections of individuals with similar life experiences, not formal groups with a strong identity.  They can help individuals determine what their role in society is or what they aspire to be.  All levels make an important contribution to society.  Exhibit 13.6 (PPT Slide 21) illustrates U.S. social classes.  Exhibit 13.7 (PPT Slide 22) illustrates how class structure may differ across cultures. b. Social class influence may also cross the borders of classes.  Trickle-down consumption: When products, services, or brands consumed by upper classes are adopted by lower classes  Trickle-up consumption: When brands, products, or services consumed by lower classes are adopted by upper classes o Sometimes called ―status float‖ or ―bubble-up‖  Trickle-across consumption: When products, services, or brands are adopted by all social classes (almost) instantaneously  Members of social classes may also deliberately oppose the symbols of other classes to distinguish themselves and affirm their own personal and class identity. c. Examining how social class affects consumer behavior requires a way of classifying consumers into different social classes.  Income: o Income is only weakly related to social class. o Income cannot always explain social class, but social class can often explain how income is used.  Occupation and Education: o Occupation is a key determinant of income, but it also has a direct influence on social class.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences

o

Education is a key determinant of occupation level and thus of income, but it also has a direct influence on social class.  Other Indicators—Area of residence, possessions, family background, social interactions o Inherited status: Status which derives from parents at birth o Earned status: Status acquired later in life through personal achievements o Status threat: When consumers fear downward social mobility d. Sociologists have developed measurement indexes to determine someone‘s social class standing.  Socioeconomic status (SES): A consumer‘s relative status in society as measured by, for instance, income, educational level, occupational level, and area of residence  Status crystallization: When a consumer has a consistent pattern across the indicators of socioeconomic status e. Social class structures evolve over time due to:  Upward mobility: Involves moving up to a higher class than one‘s parents were in  Downward mobility: Moving down to a lower class than one‘s parents were in  Social class fragmentation o Upward and downward mobility have blurred class divisions. o Increased availability of mass media is exposing consumers worldwide to the values and norms of diverse classes and cultures. o Advances in communication technology have increased interaction across social class lines.

LX.

How Does Social Class Affect Consumption? (LO 13-4, PPT Slides 27–33) a. Social class influences consumer acquisition, consumption, and disposition behaviors. b. Conspicuous consumption: Acquiring and displaying goods, services, and brands to signal one‘s (usually) higher social class to others  Conspicuous compassion: Publicly donating to charity to signal one‘s virtue  Conspicuous waste: Visibly buying products and services that one never uses

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c. Voluntary simplicity: Limiting acquisition and consumption to live a less material life d. Status symbol: A product, service, or brand that signals one‘s higher social class standing to other consumers  Parody display: When status symbols start in the lower social classes and move upward  Fraudulent symbol: Products, services, or brands that becomes so widely adopted that they lose their status e. Compensatory consumption: Takes place when buying products, services, or brands to offset frustrations or difficulties in life  Whether or not consumers decide to engage in compensatory consumption depends on their selfesteem.  Risky downward vertical brand line extensions attempt to capitalize on this. f. To understand consumption patterns, marketers must understand money and what it stands for.  Money: A medium of exchange or standard of payment o Enables people to acquire items needed for everyday living o Quantifies the value of things o Symbolizes security, power, love, and freedom  Money can be both good and evil  Money and happiness o The popular belief that money can buy happiness is rarely completely true, but the belief is rarely entirely false, either. g. There are several implications for marketers:  Tapping into the desire for visible signs of upward mobility can be effective in marketing certain offerings.  Downward mobility is prompting marketers of common products to market products in smaller-size packages that can be sold at lower, more affordable prices.  The use of credit and debit cards is rising in many nations, presenting both opportunities and challenges.  Increasingly, consumers in the United States, China, and elsewhere are using their cell phones to pay for purchases. h. Discussion Activity 3: Pose the question to the class. (PPT Slide 33) 5–10 minutes total  Discuss the positive and negative aspects of social class with respect to consumer behavior. o Students‘ responses will vary.

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(a) Possible positive aspects include self-expression, aspirational motivation, and social cohesion. (b) Possible negative aspects include limited access and exclusion, stereotyping and prejudice, materialism and greed, and inequality.

LXI.

The Consumption Patterns of Specific Social Classes (LO 13-5, PPT Slides 34–40) a. Although sharp class distinctions are fading in many societies, for the sake of simplicity, this discussion will focus on (1) the upper class, (2) the middle class, (3) the working class, and (4) people experiencing homelessness. b. The Upper Class: The aristocracy, the ―old money‖ of inherited wealth, the new social elite (or nouveaux riches), and the upper-middle class (professionals)  They tend to save and invest money more than members of other classes do.  They view themselves as intellectual, political, and socially conscious  Self-expression is also important.  The United States is home to more millionaires than any other nation. c. The Middle Class: Primarily white-collar workers, many of whom have attended college  The values and consumption patterns of middle-class consumers are heterogeneous.  Many look to the upper class for guidance on certain behaviors.  Middle-class consumers are willing to explore new consumption practices, such as buying sustainable products, trying different foods, or traveling to other countries. d. The Working Class: Mainly blue-collar workers  The working class is becoming younger, more ethnically diverse, more female, and more educated.  They depend heavily on family members for economic and social support in many areas, particularly for key purchases and help during difficult times.  They tend to have more of a short-term and local orientation socially, psychologically, and geographically than other classes.  They prefer donating more to urgent, short-term causes than to non-urgent, long-term causes.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences

e. People Experiencing Homelessness: Consumers experiencing poverty and homelessness  An estimated 7.8 to 11.6 percent (37.9 million) of people experienced poverty in the United States in 2021.  A lack of financial resources depletes cognitive resources too.  Experiencing financial constraints may also lead to overconsumption of high-calorie foods.  An overriding characteristic among them is the struggle for survival and for dignity.  Scavenging (finding used or partially used goods that others have discarded) is a particularly important survival activity.  Most homeless consumers have some valued possessions, and they get the maximum use out of items, discarding something only if they have no further use for it. f. Social class can serve as an effective way of segmenting the market, thereby influencing product or service development, messages, media selection, and channel selection.  Product or Service Development: o Develop different product lines for different classes. o Target a particular class and create offerings specifically for them.  Messages: o Target a particular social class by tapping into the group‘s distinctiveness.  Media Exposure: o Reach the upper classes through targeted magazines, special events, sponsorships on public TV and radio, and cultural events. o Think ―three screens‖ to reach middle and upperclass consumers: television, personal computer, and cell phone or tablet computer. o Target upper-class consumers by making goods available through channels that sell exclusive merchandise with personalized service. g. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 40) 20–30 minutes total  A travel service has hired you to develop a marketing strategy for a vacation package. The company wants to offer different packages to different social classes.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences







Develop a complete package and marketing strategy for each of the following: the upper class, the middle class, and the working class.

Be sure to discuss (1) services offered (including destination, accommodations, etc.), (2) pricing, (3) the advertising message, and (4) media targeting.

Summarize the key differences among the three marketing strategies. o The key component to this question is to remind students that social-class standing and income are not strongly related. It is important to have the student understand the nature of the differences between classes to be able to target different social classes. In designing different packages for different classes, challenge students to think more specifically about the type of amenities that each social class is interested in, rather than just adding more amenities (and charging higher prices) for the different classes.

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

99.

Define the terms household, family, nuclear family, and extended family.  Answer: A household is a single person living alone or a group of people who live together. You do NOT have to be related to be in a household. A family is defined as a group of individuals living together who are related by marriage, birth, or adoption, including same-sex couples living together long-term with or without children. A nuclear family refers to a specific type of family comprise of a couple and their dependent children. The extended family refers to the nuclear family plus relatives such as grandparents, aunts, uncles, and cousins. It may include nephews and nieces as well as family pets.

100.

What five key factors have altered the basic structure and characteristics of households?  Answer: Delayed marriage and cohabitation: People either delaying or avoiding getting married.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences









Dual-career households: More women work out of the home, and thus more often we see both parents splitting expenses, household responsibilities, and childcare.

Divorce: Many marriages end in divorce, and as a result, the impacted parties may belong to two or more nontraditional families.

Smaller households: In many countries, the average household size is getting smaller. The average U.S. household size dropped from about 3.70 in 1960 to 3.17 in 2022.

Same-sex couple households: According to the U.S. Census, there were about 1.2 million same-sex households in 2021.

This is about 1 percent of the total 124 million households.

101.

What eight tasks or roles might a household member have in household decision-making?  Answer: o Problem recognition: The member who identifies that there is a problem between the desired state and actual state of one or more household members of the household. o Information search: The member who searches for information about solutions to the problem, in terms of products, services, or brands to acquire or dispose of, or behavioral routines to change. o Influence: The member who influences the decision directly by expressing their preferences, or indirectly by having their preferences accounted for by other members of the household. o Choice: The member who makes the final choice for the course of action to take, such as the product, service, or brand to choose. o Purchase: The member who makes the actual purchase (more generally: who implements the choice), for instance, by going to a physical store, clicking on the ―order‖ button on a website, or signing a contract. o Payment: The member who pays for the purchase. o Consumption: The member who consumes the product, service, or brand. Consuming includes owning and using. o Post-consumption action: The member who shares experiences and expresses satisfaction or dissatisfaction to others outside the household, for instance, to the retailer or producer of the product, service, or brand, or to others in the social network.

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o

102. 

103. 

104. 

Note: Each task or role can be performed by a single, multiple, or all household members, and not all are necessarily fulfilled, in any given situation.

What is the social class hierarchy?

Answer: A social class hierarchy is the grouping of members of society according to status—from high to low. Different cultures have differing hierarchies. For instance, in the US, there are upper, middle, and lower classes. It is thought that classes tend to behave more similarly with others in their class than with those in other classes.

What are the determinants of social class?

Answer: The classes depend on occupation, education, income, and other factors, such as inherited vs. earned status. Also, where you live (e.g., home ownership vs. renting an apartment) can be a component. For example, a member of the upper-class tends to have an esteemed career (e.g., doctor or teacher), education (college or post grad), above-average income, an upper-class family, and own a home. Each of these are indicators of social class.

Why is social class fragmentation taking place?

Answer: Social class fragmentation is the disappearance of class distinctions. Upward and downward mobility have blurred class divisions. In addition, the increased availability of mass media is exposing consumers worldwide to the values and norms of diverse classes and cultures.

Lastly, advances in communication technology have increased interaction across social class lines.

105.

Why would a consumer engage in conspicuous consumption, conspicuous waste, or voluntary simplicity?  Answer: Conspicuous consumption is related to social class.

It is an attempt to signal one‘s (usually) higher social class, and an attempt to offset deficiencies or a lack of esteem by devoting attention to outward signs of status consumption. Conspicuously consumed items are important because of what they tell others about the owner. In addition, consumers can engage in conspicuous waste. For example, wealthy individuals may buy houses they never use and pianos that no one plays, signaling their status through their ability to spend money for no other reason than that they are able to. On the other hand, some consumers are moving away from conspicuous consumption toward voluntary simplicity, consciously limiting their acquisition and consumption for a less material, ecofriendly lifestyle.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 13: Household and Social Class Influences

106. 

How does parody display differ from status symbols?

Answer: Parody displays are status symbols that start in the lower-social classes and move upward. Status symbols in general are product or services that tell others about someone‘s social class standing.

107.

Under what circumstances does compensatory consumption occur?  Answer: This is the behavior of buying products or services to offset deficiencies or a lack of esteem. Consumers who are experiencing frustration or difficulties in terms of status level or career advancement may compensate by purchasing status symbols, such as a luxury car or status brands.

108.

Why might a company develop different offerings for consumers in different social classes?  Answer: Social class motives and values can determine which offerings consumers desire. Therefore, companies may develop different product lines for different classes or target a particular class and create offerings specifically for them. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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: The Role of Money in Society (LO 13-4) Duration 10–15 minutes. 

As a group, discuss the role of money in society.



What are its positive and negative aspects?



Develop arguments to support the position that our society is too money-oriented. Then develop arguments that contradict this position. o

Answer: Students‘ responses will vary. To understand consumption patterns, marketers must understand money and what it stands for. Money can be perceived as the just reward for hard work and can lead to the acquisition of needed items, a higher quality of life, 247

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and the ability to help others and society in general.

On the downside, the quest for money can lead to negative emotions such as anxiety, anger, depression, and loneliness. It can instigate greed, dishonesty, and potentially harmful practices such as gambling, prostitution, and drug dealing. Moreover, individuals who do not share their wealth with others may be seen as selfish and greedy. In addition, the popular belief that money can buy happiness is rarely completely true, but the belief is rarely entirely false, either.

27.

Discussion: Conspicuous Consumption (LO 13-4) Duration 5–10 minutes. 

Discuss the concept of conspicuous consumption and how it can motivate behavior. Provide three examples of how it can be incorporated into marketing strategy. o

Answer: Students‘ responses will vary. Conspicuous consumption involves acquiring and displaying offerings to show class standing. Examples of how it can be incorporated into marketing strategy may include celebrity endorsement, limited edition or exclusive products, and prominent branding and logo display.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

22.

Writing Activity: The Influence of Children in DecisionMaking (LO 13-2) Duration 20 minutes. 

Children can often be influential in family decisionmaking. Select a product that is not targeted at children and summarize how a child can influence the choice of a particular brand.

23.

Writing Activity: Decision-Making Roles and Marketing Implications (LO 13-2) Duration 20 minutes. 

Often, family members play different roles in the decision process. Select a common household decision and describe the types of roles that each family member might play in a specific decision. Explain how a marketer can influence the process, given these different roles.

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Instructor Manual: Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 14: Psychographics: Values, Personality, and Lifestyles

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 14: Psychographics: Values, Personality, and Lifestyles

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 250 List of Student Downloads .......................................... 251 Chapter Objectives ................................................. 251 Complete List of Chapter Activities and Assessments ................ 251 Key Terms .......................................................... 252 What's New in This Chapter ......................................... 253 Chapter Outline .................................................... 254 End-Of-Chapter Questions for Review and Discussion ................. 262 Additional Discussion Questions .................................... 265 Additional Activities and Assignments .............................. 266

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the influence of psychographics, that is, values, personality, and lifestyles, on consumer behavior. The ongoing trend toward product customization and personalization illustrates their influence. Together, values, personality, and lifestyles constitute the fundamental components of psychographics, the description of consumers based on their psychological and behavioral characteristics. Marketers use psychographics to gain deep insights into consumer behavior that complement those obtained from socioeconomic characteristics like age, gender, ethnicity, social class, and religion.

Values are enduring beliefs that inform us what is important. They are learned through the processes of socialization and acculturation. Our values exist in an organized value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a given sphere of activity.

Marketers use tools like value segmentation to identify consumer groups with common values. Three methods for identifying value-based segments are discussed: inferring values based on the cultural milieu of the group, the means-end chain analysis, and questionnaires like the Rokeach Value Survey and List of Values.

Personality consists of the distinctive patterns of behaviors, tendencies, qualities, and personal dispositions that make people different from one another. Personality theorists have identified several core traits or dimensions that drive the thinking, feeling, and behavioral patterns of people. These core traits are called the Big-Five Personality Traits. The Big Five are associated with a variety of socioeconomic and psychographic characteristics and behaviors of people.

Marketers also measure lifestyles, which are patterns of behavior (or activities, interests, and opinions). These lifestyles can provide additional insight into consumers‘ consumption patterns. Finally, some marketing researchers use psychographic techniques that involve all of these factors to predict consumer behavior.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 14-1

Describe seven core values that influence consumer behavior, and identify some of the domain-specific values that characterize a global consumer culture.

14-2

Describe how personality can influence consumer behavior.

14-3

Explain how lifestyles are represented by activities, interests, and opinions.

14-4

Describe how psychographic applications in marketing combine values, personality, and lifestyle variables.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 14-1 14-2 14-3 14-4 14-1 – 14-4

14-1 – 14-4

Activity/Assessment Group Activity Discussion Activity Polling Activity Self-Assessment Activity Learn It: Concept Check Quiz: Chapter 14 Psychographics: Values, Personality, and Lifestyles Apply It: Assignment: Chapter 14 Psychographics: Values, Personality, and Lifestyles

Source (i.e., PPT slide, Workbook) PowerPoint Slide 13 PowerPoint Slide 22 PowerPoint Slide 26 PowerPoint Slide 31 MindTap Learning Path Chapter 14 Folder

Duration

MindTap Learning Path Chapter 14 Folder

35–45 mins.

30 mins.

5-10 mins.

5–10 mins.

30 mins.

35–45 mins.

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14-1 – 14-4

Apply It: Case Activity: Chapter 14 Psychographics: Values, Personality, and Lifestyles

MindTap Learning Path Chapter 14 Folder

35–45 mins.

[return to top]

KEY TERMS Big-Five personality traits: Five broad traits or dimensions in the personality of people, as expressed in stable, consistent patterns of their feeling, thinking, and behavior. The Big Five are neuroticism, extraversion, openness, agreeableness, and conscientiousness.

Core values: A person‘s most enduring, strongly held, and abstract values that hold in many situations. These values are at the center of a person‘s value system.

Domain-specific values: Values that apply to a particular life domain or area of activities, such as consumption, health, work, leisure, family, technology, the environment.

Hedonism: The principle of pleasure seeking.

Instrumental values: Intermediate values needed to attain the desired end states such as honesty to attain equality, and cheerfulness to attain pleasure.

Lifestyles: Patterns of specific, concrete activities, interests, and opinions (AIOs) of consumers.

Locus of control: People‘s tendency to attribute the cause of events and outcomes to the self (internal) or not to the self (external, such as others, the situation, luck, or fate).

Materialism: The tendency to place a high importance on acquiring and owning material goods and money.

Means-end chain analysis: Describes how attributes of products and services (―means‖) link to the values of consumers (―ends‖).

Need for cognition: The extent to which people like to think and engage in cognitive challenges.

Need for uniqueness: The desire for a unique position and experiences, compared to other people, through the purchase, use, and disposition of products and services.

Personality: The broad, stable patterns of feelings, thinking, and behaviors that differentiate people from each other, and that influence their future behaviors.

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Political orientation: The set of beliefs that people have about the proper order of society and how it can be achieved.

Psychographics: Description of consumers based on their psychological and behavioral characteristics, specifically, their personal values, personality traits, and lifestyles.

Rokeach Value Survey (RVS): A questionnaire instrument that measures the instrumental and terminal values proposed by psychologist Milton Rokeach.

Self-monitoring: The extent to which people look to others for cues on how to behave, and to follow these cues.

System justification: The belief that ―one gets what one deserves and deserves what one gets‖ because people have a free will and because the world is by and large fair.

Terminal values: The desired end states such as equality and pleasure.

Value conflict: When consumers are aware that a particular behavior is consistent with one or more of their important values but inconsistent with one or more of their other important values.

Value segmentation: Grouping consumers by their shared values and customizing marketing offerings and communication based on these values.

Value system: The total set of values and their relative importance to a person.

Values: Enduring beliefs about desirable, abstract outcomes.

Values, personality, and lifestyles: Relatively broad and stable psychographic characteristics that influence a range of consumer behaviors over time, but usually with a modest effect on each specific behavior. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:    

Updated learning objectives New treatment of core consumer values, and their linkages to personality Latest insights into National and Global consumer lifestyles New material on technology and youth focus, authenticity, and sustainability 253

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  

Numerous new examples Numerous academic studies added Almost all exhibits are new

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LXII.

Introduction (PPT Slide 3) a. Previous chapters demonstrated how membership in certain cultural groups, such as region, ethnicity, and social class, can affect group behaviors. b. This chapter examines the effect of these cultural influences on an individual level—namely, on values, personality, and lifestyles—and how these values, personality, and lifestyles shape individual choices of consumers. c. Each of these factors is useful in understanding consumer behavior; in addition, marketers combine these to obtain an overall psychographic profile of consumers. d. Psychographics: Description of consumers based on their psychological and behavioral characteristics, specifically, their personal values, personality traits, and lifestyles e. Values, personality, and lifestyles: Relatively broad and stable psychographic characteristics that influence a range of consumer behaviors over time, but usually with a modest effect on each specific behavior f. Compared to brand attitudes, consumer‘s values, personality, and lifestyles:  Influence a broader range of behaviors  Are more stable, enduring characteristics over time  Tend to have a more modest effect on specific behaviors

LXIII.

Values (LO 14-1, PPT Slides 4–13) a. Values: Enduring beliefs about desirable, abstract outcomes  Value system: The total set of values and their relative importance to a person  Value conflict: When consumers are aware that a particular behavior is consistent with one or more of

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their important values but inconsistent with one or more of their other important values  Values are among the first things children learn.  People learn values through the process of socialization, which results from exposure to parents, reference groups, and other sources of influence. b. People‘s personal values can vary in terms of their specificity.  Core values: A person‘s most enduring, strongly held, and abstract values that hold in many situations o These values are at the center of a person‘s value system. o Terminal values: The desired end states such as equality and pleasure o Instrumental values: Intermediate values needed to attain the desired end states such as honesty to attain equality, and cheerfulness to attain pleasure o Exhibit 14.2 illustrates the core value circumplex.  Domain-specific values: Values that apply to a particular life domain or area of activities, such as consumption, health, work, leisure, family, technology, the environment o These are different from core values and specific to a life domain. c. Although societies across the world retain their uniqueness, they are also increasingly becoming part of a global consumer culture due to:  Increased cross-national institutions and legislation  Worldwide online connectivity  Shared educational practices  Migration  Cultural exchange of people, products, and ideas  Global brands, retail chains, and media d. There are 11 domain-specific values that characterize global consumer culture.  Materialism: The tendency to place a high importance on acquiring and owning material goods and money  Hedonism: The principle of pleasure seeking  Individualism  Work and Leisure Balance  Technology Attraction  Health Focus 255 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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 Youth Focus  Home  Family and Children  Authenticity  The Environment e. Because societies and their institutions are constantly evolving, value systems are also changing. f. Drivers of values include the following:  Culture  Individualism versus collectivism  Uncertainty avoidance  Masculinity versus femininity  Power distance  Ethnicity  Social Class  Age g. Marketers need to understand how the global consumer culture and consumers‘ specific values affect the following:  Consumption patterns: Marketers can know more about what consumers like if they understand their values.  Market segmentation: Marketers can identify groups of consumers who have a common set of values that differ from those of other groups through value segmentation. o Value segmentation: Grouping consumers by their shared values and customizing marketing offerings and communication based on these values  New product development: The more a new product is consistent with important consumer values, the greater the likelihood of its success.  Ad development strategy: Examining the target segment‘s value profile can help marketers design more appealing ads.  Ethics: Consumers use values to judge the appropriateness of others‘ behaviors—including the behavior of marketers. h. To segment the market by values, marketers first need to identify the relevant consumers‘ values, gauge their importance, and examine changes or trends in values.  Inferring values from cultural artifacts  Means-end chain analysis (Exhibit 14.7 on PPT Slide 12)

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o

Describes how attributes of products and services (―means‖) link to the values of consumers (―ends‖)  Value questionnaires o Rokeach Value Survey (RVS): A questionnaire instrument that measures the instrumental and terminal values proposed by psychologist Milton Rokeach o List of Values (LOV) i. Group Activity: Break the class into small groups of two to three students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 13) 30 minutes total  As a group, choose a commonly purchased product and create a means-end chain analysis for it using those found in Exhibit 14.7 as a guide. o Students‘ analyses will vary depending upon the product they choose. (a) In step 1, a researcher finds out which attributes of products or services consumers perceive. (b) In step 2, the researcher asks which attribute level a consumer prefers. (c) In step 3, the researcher asks ―why‖ the consumer prefers this and then ―why‖ this is important and ―why‖ that is important.

LXIV.

Personality (LO 14-2, PPT Slides 14–22) a. Personality: The broad, stable patterns of feelings, thinking, and behaviors that differentiate people from each other, and that influence their future behaviors  Big-Five personality traits: Five broad traits or dimensions in the personality of people, as expressed in stable, consistent patterns of their feeling, thinking, and behavior o Neuroticism (N)—The tendency to experience negative emotions such as anxiety, as well as mood changes o Extraversion (E)—The tendency to appreciate and actively seek engagement with the external world o Openness (O)—The tendency to appreciate and actively seek new experiences for their own sake o Agreeableness (A)—The tendency to appreciate and actively seek social harmony

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o

Conscientiousness (C)—The tendency to be achievement oriented (proactive) and selfdisciplined (inhibited)  Exhibit 14.9 (PPT Slide 16) provides a summary of the Big-Five personality traits, specific facets of each trait, and examples.  The Ten-Item Personality Inventory (TIPI) is an efficient instrument to measure the Big-Five personality traits (Exhibit 14.10 on PPT Slide 17). b. Researchers have identified various specific personality traits with a strong influence on consumer behavior.  Locus of control: People‘s tendency to attribute the cause of events and outcomes to the self (internal) or not to the self (external, such as others, the situation, luck, or fate)  Need for cognition: The extent to which people like to think and engage in cognitive challenges  Need for uniqueness: The desire for a unique position and experiences, compared to other people, through the purchase, use, and disposition of products and services  Optimal stimulation level  Competitiveness  Self-monitoring: The extent to which people look to others for cues on how to behave, and to follow these cues  Dogmatism: An individual‘s tendency to be resistant to change and new ideas c. Political orientation is an important psychographic characteristic of people with various implications for consumer behavior.  Political orientation: The set of beliefs that people have about the proper order of society and how it can be achieved  System justification: The belief that ―one gets what one deserves and deserves what one gets‖ because people have a free will and because the world is by and large fair  There are two specific dimensions in one‘s political orientation: tradition–change and hierarchy–equality. o Tradition-Change (a) Conservative Political Orientation: Support and advocate retaining the current social order

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(b) Liberal Political Orientation: Disagree with the current social order and advocate changing it o Hierarchy-Equality (a) Conservative Political Orientation: Accept inequality and social hierarchy (b) Liberal Political Orientation: Oppose social hierarchy and advocate equality  The political orientation of people is associated with various consumer behaviors. o People with a more liberal political orientation tend to differentiate themselves horizontally in the social hierarchy with products and brands that signal their uniqueness. o People with a more conservative political orientation tend to differentiate themselves vertically in the social hierarchy through products that signal their success. o Liberals are more likely to buy variety and more innovative designs, and to experiment with new products of groceries, coffee, cleaning supplies, toiletries, diapers, and other consumer products. o Conservatives are more satisfied than others with the products and services they consume, because of their belief that ―you get what you deserve and deserve what you get‖ and are therefore less likely to report their complaints and dispute the complaint resolutions of companies.  With respect to political orientation, it is good to keep the following three points in mind. o Political orientation is not a black-or-white characteristic, and there are countless shades of grey between the two extremes. o Other psychographic factors, such as personal values and traits, and socioeconomic factors, such as age, gender, income, education, and ethnicity influence consumer behavior, and their influence on consumer behavior may be larger. o The influence of political orientation on consumer behavior may depend on various contextual and cultural factors. d. Discussion Activity: Pose the question to the class. (PPT Slide 22) 5–10 minutes total  What types of advertising appeals would be effective for consumers who display each of the personality traits?

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o

LXV.

Students‘ responses will vary. Possible examples are as follows: (a) Locus of control: Emphasize how your product or service can help them take charge of their lives and achieve their goals. (b) Need for cognition: Emphasize how your offering can enhance their knowledge, challenge their thinking, or provide opportunities for problem-solving and mental engagement. (c) Need for uniqueness: Emphasize how your offering allows individuals to express their individuality, stand out from the crowd, or differentiate themselves from others. (d) Optimal stimulation level: Emphasize the excitement, adventure, and thrill associated with your product or service. (e) Competitiveness: Emphasize your product or service as a means of achieving success, outperforming others, or gaining a competitive edge. (f) Self-monitoring: Emphasize how your product or service can be used as a tool for social influence and enhancing one's image. (g) Dogmatism: Emphasize how your product or service aligns with established values, norms, and beliefs, providing a reliable and trusted choice.

Lifestyles (LO 14-3, PPT Slides 23–26) a. Lifestyles: Patterns of specific, concrete activities, interests, and opinions (AIOs) of consumers  Table 14.2 (PPT Slide 24) provides examples. b. Consumers who engage in different activities and have differing opinions and interests may in fact represent distinct lifestyle segments for marketers. c. Lifestyle research can help marketers understand how products, brands, and services fit into consumers‘ general patterns of opinions, interests, and actions; which new offerings can be developed; and how these can be communicated effectively.  Frugality, sustainability, and minimalism are three components of an emergent ―green lifestyle‖ across the globe.

260

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d. Polling Activity: Conduct a poll with the class. (PPT Slide 26) 5–10 minutes total  Which of the following factors do you believe has the most significant influence on consumer lifestyle?

(Activities, Interests, Opinions, or Sociodemographics) o Students‘ opinions will vary. o Whereas values and personality represent general, abstract characteristics of consumers, lifestyles are patterns of specific, concrete activities, interests, and opinions (AIOs) of consumers.

Consumer lifestyles are embedded in a larger network of associations with personal values and personality traits as displayed in Table 14.2.

LXVI.

Psychographics: Combining Values, Personality, and Lifestyles (LO 14-4, PPT Slides 27–31) a. VALS™ is one of the most widely known psychographic tools.  VALS (formerly known as Values and Lifestyles) analyzes the behavior of U.S. consumers to create segments based on two factors: o Resources, including self-confidence, innovativeness, intellectualism, novelty seeking, impulsiveness, leadership, energy level, and vanity o Primary motivation  Combining the resource and motivation variables plus key demographics such as income, age, and education, VALS has identified eight consumer segments: (Exhibit 14.13 on PPT Slide 29) o Innovators o Thinkers o Believers o Achievers o Strivers o Survivors o Experiencers o Makers b. Marketers use tools such as VALS and other psychographic applications for market segmentation, new product and promotion ideas, and ad development.  One area being pursued is methodology for analyzing social media interactions for more precise targeting, message development, and media selection according to individuals‘ interests and lifestyle activities.

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

Often, marketers will use psychographic applications in combination with demographic analyses to understand and reach their target markets. c. Self-Assessment Activity: Have the students complete the activity individually and then conduct an instructor-led debrief with the class regarding their self-assessments.

(PPT Slide 31) 30 minutes total  Take the Open-Source Psychometrics Project‘s online Big-Five Personality Test.  Do you agree the results, based on your answers, is an accurate description of your personality? Explain.  What implications might your personality results have on your own consumer behavior? o Students‘ responses will vary. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

109.

What are the differences between terminal values, instrumental values, and domain-specific values?  Answer: Terminal values are highly desired end states such as social equality and pleasure. Instrumental values are values needed to attain a desired end state such as honesty to attain equality or cheerfulness to attain pleasure.

Domain-specific values are those that may apply to only a particular life domain or area of activities, such as consumption, health, work, leisure, family, technology, or the environment.

110.

What are the seven personal values in the core value circumplex, and how can these influence consumer behavior?  Answer: The seven personal values in the core value circumplex are maturity; security; prosocial; restrictive conformity; enjoyment; achievement; and self-direction.

Core values influence consumer behavior across a wide range of life domains, such as possessions, consumption, work, leisure, family, education, the environment, and so forth, but usually only modestly.

111.

What is consumer materialism, and what are some of the ways it influences consumer behavior?  Answer: Materialism is the tendency to place a high importance on acquiring and owning material goods and money. Materialistic individuals tend to value expensive 262 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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items such as cars, jewelry, and boats. Materialists are more likely to overspend, possibly because they anticipate that buying will do more to increase their happiness than it does. Materialism may also arise from fundamental survival needs.

112.

How can marketers use means-end chain analysis, the Rokeach Value Survey, and the List of Values?  Answer: Marketers can use the means-end chain analysis to gain insight into consumers‘ values by better understanding which attributes they find important in products. They can derive from this the values that drive consumer decisions for this type of product. Marketers can directly assess values by using questionnaires such as the Rokeach Value Survey and the List of Values. The Rokeach Value Survey measures instrumental and terminal values, while the List of Values measures a smaller set of values to be used for market segmentation and positioning. The results of these questionnaires can indicate to marketers what is important to consumers with respect to different product categories.

113. 

What is the definition of personality?

Answer: Personality refers to the broad, stable patterns of feelings, thinking, and behaviors that differentiate people from each other, and that predict and influence their future behaviors.

114.

What are the Big-Five personality traits, and how can these influence consumer behavior?  Answer: The Big-Five personality traits are neuroticism (N), extraversion (E), openness (O), agreeableness (A), and conscientiousness (C). The Big-Five personality traits cover consumer behavior broadly and tend to influence many behaviors a little bit rather than a few specific behaviors a lot. For example, university students with higher levels of the conscientiousness trait were more likely to prefer ―trusted‖ fashion brands, whereas students with higher levels of the extraversion trait were more likely to prefer ―sociable‖ brands. Consumers in China expressed positive associations between the agreeableness trait and preference for toys and video games with an exciting brand personality, The agreeableness and openness traits were also positively related to brand loyalty.

115.

Which other personality traits are interesting to marketers because they may influence consumer behavior?  Answer: Researchers have identified various specific traits with a strong influence on consumer behavior. These include locus of control, need for cognition, need for uniqueness, 263 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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optimal stimulation level, competitiveness, selfmonitoring, and dogmatism.

116.

What is a consumer‘s political orientation, and how is it associated with the consumer‘s personal values, personality traits, and consumption behavior?  Answer: Political orientation is the set of beliefs that people have about the proper order of society and how it can be achieved. The political orientation of people is associated with various consumer behaviors. o People with a more liberal political orientation tend to differentiate themselves horizontally in the social hierarchy with products and brands that signal their uniqueness. Conversely, people with a more conservative political orientation tend to differentiate themselves vertically in the social hierarchy through products that signal their success. o Liberals are more likely to buy variety and more innovative designs, and to experiment with new products of groceries, coffee, cleaning supplies, toiletries, diapers, and other consumer products. o Further, people with a conservative orientation are more satisfied than others with the products and services they consume, because of their belief that ―you get what you deserve and deserve what you get.‖ Compared to people with a liberal political orientation, they are less likely to report their complaints and dispute the complaint resolutions of companies.

117.

What are the three components of a consumer‘s lifestyle, and how do these relate to personal values and personality traits of consumers?  Answer: The three components of lifestyle include one‘s activities, interests, and opinions (AIOs). Consumer lifestyles are embedded in a larger network of associations with personal values and personality traits, as displayed in Table 14.2.

118.

What are psychographic characteristics of consumers, and how can marketers research them?  Answer: Psychographics is a description of consumers based on their psychological and behavioral characteristics.

Psychographics often offers marketers a better way to segment the market than do demographics. Many products within a category are used by all different demographics.

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

better understand the type of person most likely to purchase a particular product.

For example, the VALS™ psychographic tool analyzes the behavior of U.S. consumers to create segments based on two factors: resources and primary motivation. Combining the resource and motivation variables plus key demographics such as income, age, and education, VALS has been able to identify eight consumer segments, which marketers can use for market segmentation, new product and promotion ideas, and ad development.

[return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

28.

Discussion: Global Consumer Culture (LO 14-1) Duration 5 minutes. 

What are some of the factors leading to societies increasingly becoming part of a global consumer culture? o

Answer: Although societies across the world retain their uniqueness, they are also increasingly becoming part of a global consumer culture due to:  Increased cross-national institutions and legislation  Worldwide online connectivity  Shared educational practices  Migration  Cultural exchange of people, products, and ideas  Global brands, retail chains, and media

29.

Discussion: Marketing Tactics and Stimulation Needs (LO 142) Duration 5 minutes. 

What kinds of marketing tactics are likely to be effective for people with high versus low needs for stimulation? o

Answer: Students‘s responses will vary.

o

Possible examples for people with high needs for stimulation include the following:  Interactive events 265

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  



 o

Pop-up installations Virtual reality experiences that provide a sense of adventure and stimulation Time-limited offers, exclusive deals, or limited stock availability that create a sense of urgency and excitement Games, challenges, rewards, and competitions that provide a sense of fun, excitement, and achievement Collaborations with popular influencers or celebrities

Possible examples for people with low needs for stimulation include the following:  A focus on reliability, quality, and familiarity to appeal to their preference for stability and certainty  Testimonials, reviews, and endorsements to establish trust and credibility  Maintaining consistent branding elements such as colors, fonts, and imagery to create a sense of familiarity  Highlighting durability, practicality, and reliability to appeal to their preference for products that offer consistent value over time

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

24.

Internet Activity: VALS Survey (LO 14-4) Duration 30–45 minutes. 

Have students visit the VALS website and complete a VALS survey to see how psychographics might describe them as a consumer.



Ask students to then answer the following questions: o

Do you agree that the segment in which the survey placed you, based on your answers, in an accurate description of your lifestyle, personality, and/or values? Explain.

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o

In terms of psychographics, what additional details about your values, personality, or lifestyle would help a car manufacturer target you more effectively for a new car purchase?

o

What questions would you add to the survey in order to elicit these details? 

Students‘ responses will vary.

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 15: Innovations: Adoption, Resistance, and Diffusion

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 268 List of Student Downloads .......................................... 269 Chapter Objectives ................................................. 269 Complete List of Chapter Activities and Assessments ................ 269 Key Terms .......................................................... 270 What's New in This Chapter ......................................... 272 Chapter Outline .................................................... 272 End-Of-Chapter Questions for Review and Discussion ................. 280 Additional Discussion Questions .................................... 283 Additional Activities and Assignments .............................. 284

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore how consumers adopt innovative offerings and how their adoption decisions affect the spread (diffusion) of a new offering through a market. This chapter also looks at factors that make a difference in consumers‘ resistance to an innovation, an adoption of an innovation, and the diffusion of an offering through a marketplace.

Innovations are products, services, ideas, or attributes perceived to be new by consumers in a market segment. Innovations can be characterized as functional, symbolic, and/or hedonic/aesthetic in nature. Innovations also vary in the degree of behavioral change their adoption requires. A continuum of innovativeness in products ranging from continuous to discontinuous innovations can be identified.

Innovations can also be characterized by the type of benefits that they offer. Although they often offer relative benefits and advantages, it‘s important to note that innovations can result in negative social and socioeconomic consequences.

Innovations may represent fads, fashions, or classics, and hence may exhibit a short, moderate, or long life cycle. Product life-cycle length may be fostered by enhancing the breadth of the innovation and by encouraging use innovativeness in consumers.

There are three key issues of importance to marketers introducing innovations. First is breaking down consumers‘ resistance to innovations, second is facilitating consumers‘ adoption of the innovation, and third is affecting the diffusion of the innovation through the marketplace. A high- (vs. low-) effort hierarchy-ofeffects adoption process occurs when the innovation is seen as economically, physically, socially, or psychologically risky. Some individuals called innovators adopt products independently of the decisions of others. Special marketing efforts may be geared toward innovators since their adoption directly or indirectly influences the adoption of other consumers (by word of mouth or social modeling).

Characteristics of the innovation and the social system in which it is introduced affect resistance, adoption, and diffusion. First resistance is more likely to be overcome when the innovation is perceived to provide value (i.e., involve a relative advantage, low cost, and low switching costs), involve minimal consumer learning (i.e., high compatibility with existing needs, values, and behaviors; trialability; and low complexity), involve relatively high certainty, and be viewed as high in social relevance, legitimacy, and adaptability. Consumers‘ perceptions of the characteristics of the innovation can in turn be affected by marketing decisions.

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Resistance, adoption, and diffusion are also affected by the characteristics of the social system in which the innovation operates.

The denser the social network and the more homophilous the social system, the more likely information will be transmitted from adopters to nonadopters. This information transmission may directly affect adoption likelihood. Marketing efforts can influence resistance, adoption, and diffusion by affecting the social system.

This chapter opens by identifying the types of innovations. Next, we explore what affects whether consumers will resist a new product or adopt it. The final section examines the factors affecting how quickly a new product spreads, or diffuses, through a market.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 15-1

Describe how innovations can be classified in terms of their novelty and the benefits they offer.

15-2

Discuss the implications of consumers‘ resistance and adoption to innovations to marketers.

15-3

Discuss how diffusion curves relate to the product life cycle.

15-4

Discuss the factors that enhance adoption of, resistance to, and diffusion of a new product.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 15-1 15-2

Activity/Assessment Discussion Activity 1 Self-Assessment Activity

Source (i.e., PPT slide, Workbook) PowerPoint Slide 6 PowerPoint Slide 19

Duration 5 mins.

15–20 mins.

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15-3 15-4 15-1 – 15-4

15-1 – 15-4 15-1 – 15-4

Group Activity Discussion Activity 2 Learn It: Concept Check Quiz: Chapter 15 Innovations: Adoption, Resistance, and Diffusion Apply It: Assignment: Chapter 15 Innovations: Adoption, Resistance, and Diffusion Apply It: Case Activity: Chapter 15 Innovations: Adoption, Resistance, and Diffusion

PowerPoint Slide 24 PowerPoint Slide 33 MindTap Learning Path Chapter 15 Folder

20-30 mins.

5–10 mins.

35–45 mins.

MindTap Learning Path Chapter 15 Folder

35–45 mins.

MindTap Learning Path Chapter 15 Folder

35–45 mins.

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KEY TERMS Adaptability: The extent to which the innovation can foster new styles.

Adoption: A purchase of an innovation by an individual consumer or household.

Classic: A successful innovation that has a lengthy product life cycle.

Cocreation: Actively involving consumers in creating value through participation in new product development, among other marketing activities.

Compatibility: The extent to which an innovation is consistent with one‘s needs, values, norms, or behaviors.

Complexity: The extent to which an innovation is complicated and difficult to understand or use.

Contagion: The degree to which consumers influence each other in the diffusion of a new product.

Continuous innovation: An innovation that has a limited effect on existing consumption patterns.

Diffusion: The percentage of the population that has adopted an innovation at a specific point in time.

Discontinuous innovation: An offering that is so new that we have never known anything like it before.

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Dynamically continuous innovation: An innovation that has a pronounced effect on consumption practices and often involves a new technology.

Exponential diffusion curve: A diffusion curve characterized by rapid initial growth.

Fad: A successful innovation that has a very short product life cycle.

Fashion: A successful innovation that has a moderately long and potentially cyclical product life cycle.

Functional innovation: A new product, service, attribute, or idea that has utilitarian benefits that are different from or better than those of alternatives.

Hedonic or aesthetic innovation: An innovation that appeals to our aesthetic, pleasure-seeking, and/or sensory needs.

High-effort hierarchy of effects: A purchase of an innovation based on considerable decision-making effort.

Innovation: An offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns.

Legitimacy: The extent to which the innovation follows established guidelines for what seems appropriate in the category.

Modernity: The extent to which consumers in the social system have positive attitudes toward change Product life cycle: A concept that suggests that products go through an initial introductory period followed by periods of sales growth, maturity, and decline.

Relative advantage: Benefits in an innovation superior to those found in existing products.

Resistance: A desire not to buy the innovation, even in the face of pressure to do so.

Social relevance: The extent to which an innovation can be observed or the extent to which having others observe it has social cachet.

S-shaped diffusion curve: A diffusion curve characterized by slow initial growth followed by a rapid increase in diffusion.

Symbolic innovation: A product, service, attribute, or idea that has new social meaning.

Trialability: The extent to which an innovation can be tried on a limited basis before it is adopted.

Use innovativeness: Finding use for a product that differs from the product‘s original intended usage.

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:      

Updated learning objectives New opening vignette Numerous new examples Numerous academic studies added Almost all exhibits are new Added discussion co-creation of new products

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LXVII.

Innovations (LO 15-1, PPT Slides 5–12) a. Exhibit 15.1 (PPT Slide 4) provides an overview of the chapter. b. Discussion Activity 1: Pose the question to the students.

(PPT Slide 6) 5 minutes total  What factors influence your decision to adopt new innovations or technologies? o Students‘ responses will vary. This question can help generate insights regarding students‘ consumer behavior and the adoption of innovations. It allows students to share their perspectives on what motivates them to embrace new products or technologies. o You may wish to have students compare their responses at the end of the class to see if their answers change or to map their initial assessments against the concepts they learned in this chapter. c. The ability to develop successful new products is critical to a company‘s sales, future growth, and long-term survival potential.

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

Innovation: An offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns  Products, services, attributes, packages, and ideas are innovations if they are perceived as being new by consumers, whether they are new or not.  Innovations can bring about changes in acquisition, consumption, and disposition patterns.  Marketers classify innovations in terms of (1) the innovation‘s type and (2) the type of benefits it offers d. One way to characterize innovations is to describe the degree of change that they create in our consumption patterns. (Exhibit 15.2 on PPT Slide 9)  Continuous innovation: An innovation that has a limited effect on existing consumption patterns  Dynamically continuous innovation: An innovation that has a pronounced effect on consumption practices and often involves a new technology  Discontinuous innovation: An offering that is so new that we have never known anything like it before e. In addition to their degree of novelty, innovations can be characterized by the type of benefits that they offer.  Functional innovation: A new product, service, attribute, or idea that has utilitarian benefits that are different from or better than those of alternatives  Hedonic or aesthetic innovation: An innovation that appeals to our aesthetic, pleasure-seeking, and/or sensory needs  Symbolic innovation: A product, service, attribute, or idea that has new social meaning f. Traditionally, companies have controlled the innovation process, developing new offerings based on detailed knowledge of their customers‘ needs and purchasing patterns, specific customer requests, new technology, and similar market inputs.  Today many companies are pursuing innovations via cocreation—actively involving consumers in creating value through participation in new product development, among other marketing activities.  Potential benefits of cocreation include: o Innovations that spring from cocreation are likely to fit better with consumer needs. o Gathering ideas from consumers via social media or a website is relatively fast and inexpensive.

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o

Involving consumers in cocreation strengthens their relationship with the company. o Consumers who are involved in selecting the products to be marketed exhibit higher demand for them because they feel a sense of psychological ownership.  Marketers must deal with concerns such as the secrecy of new product ideas and the challenges of developing an idea into a commercially feasible innovation.  Marketers must also attract, retain, and motivate a community of consumers for success. g. Although innovations often offer relative benefits and advantages that may not have previously existed, they may or may not be good for society at large.  Innovations can have negative social consequences.  Innovations can also have negative socioeconomic consequences.  Marketers, policy makers, and consumers should be aware of the potential unanticipated social and economic consequences of the adoption and diffusion of innovations and try to prevent or minimize the negatives.

LXVIII.

Resistance Versus Adoption (LO 15-2, PPT Slides 13–19) a. Marketers need to understand how a consumer or household chooses to buy or adopt an innovation. (Exhibit 15.5 on PPT Slide 15)  Marketers are interested in three things: o Whether consumers would adopt an innovation or whether they would resist buying or using it o How consumers adopt products and how they decide whether to buy an innovation o When a consumer would buy an innovation generally, or in relation to when other consumers would purchase it  Adoption: A purchase of an innovation by an individual consumer or household  Resistance: A desire not to buy the innovation, even in the face of pressure to do so b. The amount of effort we engage in before we decide to adopt an innovation varies.  Exhibit 15.6 (PPT Slide 16) illustrates the adoption decision process.  In some cases, we engage in considerable effort (e.g., extensive information search and evaluation of an offering).

274

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o

In other cases, the adoption process involves limited effort. o In such cases, we first adopt the innovation and then decide whether we like it.  Consumers are more likely to follow a high-effort decision-making process when the innovation is discontinuous (as opposed to continuous) because they know less about the innovation and must learn about it. o A high-effort adoption process may also be used when many people are involved in the decision, as in a family or an organization.  Understanding whether consumers‘ adoption decisions are based on a high- or low-effort adoption process has important implications for marketers. o If the adoption involves low effort, marketers need to do all they can to encourage trial. o If the adoption process is a high-effort one, marketers need to do all they can to reduce the perceived risk of adopting the innovation. c. Researchers have identified five groups of consumers that differ in when they adopt an innovation relative to when others do.  Innovators are the first in a market to adopt an innovation, and laggards are the last.  Certain characteristics are associated with each adopter group.  Exhibit 15.7 (PPT Slide 17)illustrates adopter groups.  Because innovators adopt new products independently of the opinions of other people, they are more likely to be receptive to information about new products, including information provided by marketers.  By virtue of their experience with the innovation, innovators may also serve as opinion leaders who exact normative and informational influence on others‘ adoption decisions. d. So, who are innovators and how they can be reached?  Demographics: o Innovators tend to be younger, more affluent, and better educated than other consumers. o Family influence and culture of origin have also been linked with innovativeness.  Social Influence: o Innovators tend to be opinion leaders with considerable social influence.

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

Personality: o Innovators are high in their need for stimulation, are inner directed, and are less dogmatic than other consumers; they do less planning and deliberate less when making buying decisions. o Consumers may be innovators or early adopters in one domain but laggards in another.  Cultural Values: o Adoption of innovations has been linked with culture of origin and the values tied to the culture.  Media Involvement: o Innovators are active seekers and disseminators of information.  Usage: o Innovators may be heavy users within a product category. e. Self-Assessment Activity: Have the students complete the activity individually and then conduct an instructor-led debrief with the class regarding their self-assessments.

(PPT Slide 19) 15–20 minutes total  Identify which adopter group you think you belong to.  Take the What Kind of Adopter Are You Quiz.  Do your quiz results align with the group you initially identified with?  How do you think the following factors have influenced your adoption behavior? (Demographics, Personality, Cultural Values, Media Involvement) o Students‘ responses and results will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

LXIX.

Diffusion (LO 15-3, PPT Slides 20–24) a. Diffusion: The percentage of the population that has adopted an innovation at a specific point in time  While adoption reflects the behavior of an individual, diffusion reflects the behavior of the marketplace of consumers as a group.  Marketers want to understand two important diffusion issues: how an offering diffuses through the market and how quickly it does so.

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o

S-shaped diffusion curve: A diffusion curve characterized by slow initial growth followed by a rapid increase in diffusion o Exponential diffusion curve: A diffusion curve characterized by rapid initial growth o Product life cycle: A concept that suggests that products go through an initial introductory period followed by periods of sales growth, maturity, and decline b. Several diffusion patterns have been identified (Exhibit 15.8 on PPT Slide 22):  With an S-shaped diffusion curve, diffusion starts out slowly, increases rapidly, and then flattens out again  With an exponential diffusion curve, many people adopt the innovation quickly  The product life cycle curve depicts sales (not cumulative diffusion) of an offering over time c. Marketers can lengthen their product‘s life cycle by finding new uses for a product or encouraging consumers to do so. d. Marketers can also try to diagnose the likely life cycle pattern of their offering.  Fad: A successful innovation that has a very short product life cycle  Contagion: The degree to which consumers influence each other in the diffusion of a new product  Fashion: A successful innovation that has a moderately long and potentially cyclical product life cycle  Classic: A successful innovation that has a lengthy product life cycle e. Group Activity: Break the class into small groups of two to three students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 24) 20–30 minutes total  Identify two innovations you are familiar with and recreate the typical adoption/diffusion curve for each.  Identify the factors you believe will influence the shape of these curves.  Discuss how the factors you have identified influenced diffusion in the market. o Students‘ examples and responses will vary. The important thing is the students‘ thought process and their ability to clearly articulate their 277 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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response and demonstrate an understanding of the material.

LXX.

Influences on Adoption, Resistance, and Diffusion (LO 15-4, PPT Slides 25–33) a. Characteristics of the innovation that can affect resistance, adoption, and diffusion include:  Perceived value o Greater perceived value than existing alternatives  Perceived benefits o Relative advantage: Benefits in an innovation superior to those found in existing products o Use innovativeness: Finding use for a product that differs from the product‘s original intended usage  Perceived costs o Include the money, time, and effort required to adopt the product o Also include switching costs—the costs of changing from the current product to a new one. b. If consumers do not perceive that an innovation has a relative advantage, marketers may need to add one by physically redesigning or reengineering the innovation.  Educate consumers who do not understand a product or its relative advantages.  Use special price-oriented sales promotions such as price-offs, rebates, or refunds to reduce the perceived cost.  Find a cheaper way to manufacture the product and pass on the savings in the form of lower prices for consumers.  Provide incentives for switching  Use advertising to inform consumers about the costs associated with not switching.  Force the innovation to become the industry standard. c. Uncertainty surrounding an innovation can also affect its adoption, resistance, and diffusion.  Doubt about what will become the industry standard  Relative advantage of a product that requires the consumer to make significant behavioral changes  Length of the product life cycle  Ability to trust the innovation  Length of time before planned adoption

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d. Consumer learning requirements—what consumers need to do to use the innovation effectively—also affect resistance, adoption, and diffusion.  Compatibility: The extent to which an innovation is consistent with one‘s needs, values, norms, or behaviors  Trialability: The extent to which an innovation can be tried on a limited basis before it is adopted  Complexity: The extent to which an innovation is complicated and difficult to understand or use e. Marketers can use several tactics to reduce consumers‘ resistance to innovations:  Enhance Compatibility or Reduce Complexity  Educate About Compatibility  Use Change Agents  Fit with a System of Products  Force the Innovation to Be the Industry Standard  Use Promotions to Enhance Trialability  Demonstrate Compatibility and Simplicity  Simulate Trial f. An innovation‘s social relevance also affects resistance, adoption, and diffusion.  Social relevance: The extent to which an innovation can be observed or the extent to which having others observe it has social cachet o Observability: The extent to which consumers can see others using the innovation o Social value: The extent to which the product has social cachet, which means that it is seen as socially desirable and/or appropriate and therefore generates imitation, speeding diffusion g. Legitimacy and adaptability also influence resistance, adoption, and diffusion.  Legitimacy: The extent to which the innovation follows established guidelines for what seems appropriate in the category  Adaptability: The extent to which the innovation can foster new styles h. Marketing efforts can influence resistance, adoption, and diffusion by affecting the social system.  Innovations diffuse rapidly or slowly in part because of the characteristics of the social system into which they are introduced. o Modernity: The extent to which consumers in the social system have positive attitudes toward change 279 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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o

Physical distance: Diffusion tends to be faster when members of the social system are physically close. o Homophily: Diffusion tends to be faster when consumers in the market are similar in education, values, needs, income, and other dimensions. o Opinion leadership: Opinion leaders can have considerable influence on product adoption and diffusion. o Cultural self-perspectives: Consumers in individualistic cultures are more likely to buy new innovations, whereas those in collectivist cultures are more likely to buy incremental innovations. i. Discussion Activity 2: Pose the question to the class. (PPT Slide 33) 5–10 minutes total  Think about a new product or service you have recently encountered. How did the social system of which you are a member influence your knowledge about, attitudes toward, and willingness to adopt this innovation? o Students‘ responses will vary. Students should be prompted to explain their experience and identify why they chose to adopt this new product or service. Students are generally surprised to learn that their background tends to help them accept an innovation. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material. [return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

119.

How can innovations be described in terms of degree of novelty and types of benefits? How does the degree of novelty affect consumers‘ behavioral change?  Answer: Innovations can be described in terms of degree of novelty from an innovation that has limited effects on existing consumption patterns (continuous innovation), to an innovation that has a pronounced effect on consumption practices and often involves new technology (dynamically continuous innovation), to an offering that is so new that we have never known anything like it before (discontinuous 280 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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innovation). In terms of types of benefits, innovations may be functional, aesthetic or hedonic, and symbolic. The degree of novelty may have a profound impact on our behavior if the product becomes adopted by society. 

120. 



Inventions such as the personal computer, telephone, television, and phonograph, all have had extreme effects on consumer behavior. Although, the Internet was invented in 1964 it didn‘t gain in popularity until the Netscape browser helped to make it simple to use the Internet. When innovations happen, companies tend to overestimate its immediate impact on society (for instance, when television was invented, it took decades before they appeared in the majority of homes).

What is cocreation and what are its potential benefits?

Answer: Cocreation involves actively involving consumers in creating value through participation in new product development, among other marketing activities. This is a smart way to involve customers, and to get their feedback at a higher level. For instance, Doritos had an opportunity for a customer to design their Superbowl ad, and they received many entrants. They gave a prize away, and in return received free ad production. A related idea is having consumers suggest new flavors for their chips.

Potential benefits of cocreation include: o Innovations that spring from cocreation are likely to fit better with consumer needs. o Gathering ideas from consumers via social media or a website is relatively fast and inexpensive. o Involving consumers in cocreation strengthens their relationship with the company. o Consumers who are involved in selecting the products to be marketed exhibit higher demand for them because they feel a sense of psychological ownership.

121.

What is the difference between adoption and diffusion? How does the concept of resistance relate to adoption?  Answer: Adoption is the purchase of an innovation by an individual consumer or household. Diffusion is the percentage of the population that has adopted that particular innovation at a specific point in time.

Resistance is the desire to not buy an innovation, even in the face of pressure to do so. For instance, people over forty years old resisted the change to computers when they first came out. In the business world, it is hard to communicate without using email. Consumers sometimes resist adopting an innovation because it is simpler or seems 281 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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preferable for them to continue using a more familiar product or service. Resistance may also be high if consumers think that using the new product would involve some risk.

122.

Under what circumstances might a consumer follow the higheffort hierarchy of effects in adopting an innovation?  Answer: Consumers are more likely to follow a high-effort decision-making process when the innovation is discontinuous (as opposed to continuous) because they know less about the innovation and must learn about it. A higheffort adoption process may also be used when many people are involved in the decision, as in a family or an organization.

123.

How can consumers be categorized in terms of their timing of adoption relative to that of other consumers?  Answer: Five adopter groups illustrate the timing of adoption and can be represented graphically by a relatively normal bell-shaped curve. These groups, in order of adoption are as follows: innovators, early adopters, early majority, late majority, and laggards.

124.

What is the product life cycle, and how does it differ from product diffusion?  Answer: The product life cycle has four primary phases, introduction, growth, maturity, and decline. It differs from product diffusion in that diffusion focuses on the percentage of the market that has adopted the product. The product life cycle deals with sales of the product over time.

125.

How do consumer learning requirements and social relevance affect resistance, adoption, and diffusion?  Answer: Consumer learning requirements reflect the difficulty in understanding what consumers need to do to effectively use an innovation. If an innovation can increase its level of compatibility with consumers‘ values, norms, and behaviors, that increases the extent to which an innovation can be tried prior to adoption (trialability) and decreases the innovation‘s complexity so that consumers will likely adopt the product. Social relevance indicates the extent to which the innovation can be observed or the extent to which having others observe it having social cachet. Increasing the innovation‘s social relevance will improve the diffusion rate of the product.

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126.

What characteristics of the social system affect an innovation‘s acceptance within a market?  Answer: The extent to which consumers in a society have a positive attitude toward change (modernity), are overall very similar (homophily), are concentrated (physical distance), and are influenced by opinion leaders, positively affects an innovation‘s acceptance within a particular market. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

30.

Discussion: Resistance to Innovation (LO 15-2 – 15-4) Duration 10 minutes. 

Consider a product that you think represents an innovation but that you have not yet purchased. Using the terms discussed, indicate why your resistance to this product is high or low. o

31.

Answer: Students‘ examples and responses will vary.

The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

Discussion: Title (LO x-x) Duration xx minutes. 

Identify a new product that you consider to be a fad. Why is it likely to be a fad? What can marketers do to enhance the length of this product‘s life cycle? o

o

Answer: Students‘ examples will vary. A diet plan is a great example of a fad. Diet plans promise quick and easy results, but are often unsustainable. When a fad catches on, consumers gravitate to it because it is the next big thing. Marketers can use celebrity spokespeople, news media, and other events to help push these fad diets. For example, one company created a line of food products based on the Atkins diet, but then had to file for bankruptcy.

The key with diets and weight loss pills is that longterm results can only be sustained by changing habits, 283

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not symptoms. Changing habits is harder to do, as most people do not like to change, even if their behaviors may be destructive. For instance, in all weight loss ads there is a disclaimer at the bottom of the ad that states, ―These results are not typical.‖ The reason they are not typical is it takes a considerable discipline to change our behaviors. o

The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

[return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

25.

Reading Activity: Innovation Analysis (LO 15-1 – 15-4) Duration 60 minutes. 

Have student read several publications like BusinessWeek, Fortune, or the Wall Street Journal and identify two innovative products and/or services.



Ask them to write a summary addressing the following questions: o

Why are these offerings innovations? (Answers should relate to the text‘s definition of an innovation.)

o

What type of innovations are they—continuous, dynamically continuous, or discontinuous? Functional, aesthetic, symbolic?

o

Describe whether you think adoption and diffusion of these offerings will be fast or slow by using concepts associated with the innovations (relative advantage, social relevance, legitimacy, adaptability, etc.).

o

Indicate how marketers might overcome resistance and speed adoption and diffusion for those offerings whose diffusion is likely to be slow.

26.

Writing Activity: Marketing Innovations (LO 15-1 – 15-4) Duration 30–45 minutes. 

Marketers are responsible for ensuring the successful adoption of new innovations. Identify an innovation and 284

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explain what marketers could do to make its adoption successful. o

Students‘ examples and responses will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

[return to top]

Instructor Manual Hoyer, MacInnis, & Pieters, Consumer Behavior, 8e, 2024, 9780357721292; Chapter 16: Symbolic Consumer Behavior

TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 286 List of Student Downloads .......................................... 287 Chapter Objectives ................................................. 287 Complete List of Chapter Activities and Assessments ................ 287 Key Terms .......................................................... 288 What's New in This Chapter ......................................... 288 Chapter Outline .................................................... 289 End-Of-Chapter Questions for Review and Discussion ................. 296 Additional Discussion Questions .................................... 299 Additional Activities and Assignments .............................. 300

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore the symbolic role that products can play. Some products are used as conscious badges that designate the various cultural categories of which we are members.

Products and rituals also hold symbolic significance when we undergo role transitions. They serve as symbols by connecting us to people, places, and times that have been important to us, and they are symbols of our individuality and uniqueness. The combined symbolic uses of products and rituals affect our self-concept.

Some of our possessions are regarded as very special. They are nonsubstitutable, will not be sold at market value, and will be purchased with little regard for price. They are rarely discarded, even if their functional value is gone, and may not even be used for their original functional purpose. We personify these possessions, may feel powerful emotions in their presence, and may have feelings of fear or sadness over their potential or actual loss. In part, possessions are special because they serve as unique emblems, facilitate role transitions, connect us to others, or express our unique styles. In part, they are special because they indicate personal mastery and achievements or are mood enhancing. Background characteristics such as social class, gender, and age all seem to influence just what type of object is regarded as special.

Some entities are so special they are worshipped, set apart, and treated with inordinate respect—that is, they are sacred. Several things outside the realm of possessions—people, places, objects, times, and events—also take on sacred status. Sacred objects transcend time and space and have strong approach/avoidance powers and great fascination. They are cared for and nurtured. Often, special rituals are devised to handle them. Sacred objects can be profaned or made more ordinary by commercialization, inappropriate usage, or divestment patterns. As such, marketers need to take care in developing, changing, or profaning sacredness in objects.

Gift giving is a process of transferring meaning in products from one person to another. Gift giving entails three phases: gestation, presentation, and reformulation, and is a complex process, involving single or multiparty donors, along with single or multiparty recipients. Gift-giving occasions are often culturally prescribed but may vary in their timing.

Products and consumption activities can symbolize something about us and our relationships with others. In this chapter, we consider how products and consumption activities communicate meaning.

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LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 16-1

Describe the four functions of symbolic meanings.

16-2

Describe the characteristics of special possessions.

16-3

Articulate what makes entities sacred.

16-4

Illustrate the three stages of gift giving.

16-5

Explain who is most likely to engage in charitable giving.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 16-1 16-2 16-3 16-4 16-1 – 16-5 16-1 – 16-5 16-1 – 16-5

Activity/Assessment Discussion Activity 1 Group Activity Discussion Activity 2 Polling Activity Learn It: Concept Check Quiz: Chapter 16 Symbolic Consumer Behavior Apply It: Assignment: Chapter 16 Symbolic Consumer Behavior Apply It: Case Activity: Chapter 16 Symbolic Consumer Behavior

Source (i.e., PPT slide, Workbook) PowerPoint Slide 13 PowerPoint Slide 19 PowerPoint Slide 22 PowerPoint Slide 29 MindTap Learning Path Chapter 16 Folder

Duration

MindTap Learning Path Chapter 16 Folder MindTap Learning Path Chapter 16 Folder

35–45 mins.

5–10 mins.

15-20 mins.

5 mins.

5–10 mins.

35–45 mins.

35–45 mins.

[return to top]

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KEY TERMS Actual identity schema: A set of multiple, salient identities that reflect our self-concept.

Connectedness function: The use of products as symbols of our personal connections to significant people, events, or experiences.

Divestment ritual: Ritual enacted at the disposition stage that is designed to wipe away all traces of our personal meaning in a product.

Emblematic function: The use of products to symbolize membership in social groups.

Expressiveness function: The use of products as symbols to demonstrate our uniqueness—how we stand out as different from others.

Gestation stage: The first stage of gift giving, when we consider what to give someone.

Grooming ritual: Ritual we engage in to bring out or maintain the best in special products.

Ideal identity schema: A set of ideas about how the identity would be indicated in its ideal form.

Possession ritual: Ritual we engage in when we first acquire a product that helps to make it ―ours.‖ Presentation stage: The second stage of gift giving, when we actually give the gift.

Profane things: Things that are ordinary, and hence have no special power.

Reflexive evaluation: Feedback from others that tells us whether we are fulfilling the role correctly.

Reformulation stage: The final stage of gift giving, when we reevaluate the relationship based on the gift-giving experience.

Role acquisition function: The use of products as symbols to help us feel more comfortable in a new role.

Sacred entities: People, things, and places that are set apart, revered, worshiped, and treated with great respect. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: 288 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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       

Updated learning objectives Revised chapter structure New organizing exhibit New opening vignette Numerous new examples Numerous academic studies added Almost all exhibits are new Extensive and new discussion of gift giving to charities

[return to top]

CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LXXI.

Symbolic Meanings and Their Functions (LO 16-1, PPT Slides 4–13) a. Exhibit 16.1 (PPT Slide 3) provides an overview of the chapter. b. To understand why weddings and other events and consumption activities have meaning, we discuss four functions that offerings and practices can fulfill:  Emblematic function  Role acquisition function  Connectedness function  Expressiveness function c. Emblematic function: The use of products to symbolize membership in social groups  Geographic or ethnic identity  Global vs. local identity  Social class  Gender and gender identity  Reference group membership d. Role acquisition function: The use of products as symbols to help us feel more comfortable in a new role  People typically move from one role to another in three phases: o Separation o Transition o Incorporation  There are several significant types of transitions: o Role o Marital 289

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o Cultural o Social Status  Reflexive evaluation: Feedback from others that tells us whether we are fulfilling the role correctly  Exhibit 16.4 (PPT Slide 8) illustrates the model of role acquisition. e. Marketers can apply knowledge of consumers‘ role transitions in several ways:  Consumers in transition represent an important target market for many firms.  Because product disposition can be an important aspect of role separation, marketers of secondhand products can acquire inventory by marketing to people engaged in role transitions.  Marketers may find it useful to promote their products as instrumental in incorporating a new role.  Marketers can stress the importance of groups of products to consumers in the process of role acquisition.  Marketers can also be instrumental in developing services that help in planning and implementing rituals surrounding transitions. f. Connectedness function: The use of products as symbols of our personal connections to significant people, events, or experiences  Consumption of vintage products is on the rise, in part because they connect individuals with the past, present, and future.  People can feel a sense of connectedness through products even if they don‘t know the other people who owned these products.  Marketers may wish to invoke feelings of nostalgia by connecting their product with people, places, or events. g. Expressiveness function: The use of products as symbols to demonstrate our uniqueness—how we stand out as different from others  We express our unique personalities through offerings like clothing, home decoration, art, leisure activities, and food consumption.  We might find certain product categories, such as hairstyles, tattoos, or music, particularly appropriate for indicating who we are as unique individuals.

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

Certain products are regarded as ―cool‖ because they are nonstandard and reflect idiosyncratic preferences.  Marketers can suggest that their products enhance uniqueness.  Wealthy consumers can hire designers to customize exclusive products. h. A given product may serve several of the four functions described. i. According to the theory, our self-concept can be decomposed into many separate identities.  Actual identity schema: A set of multiple, salient identities that reflect our self-concept  Ideal identity schema: A set of ideas about how the identity would be indicated in its ideal form  These identity schemas influence which products we use and which consumption practices we engage in.  People who lose their possessions sometimes feel a loss of identity.  Marketers can play a role in both producing and maintaining an individual‘s self-concept.  Marketers seek to create a close fit between the image of their brand and the actual or ideal identity of the consumer. j. Discussion Activity 1: Pose the question to the class. (PPT Slide 13) 5–10 minutes total  Imagine that you are about to embark on your ideal job. What changes in your consumer behavior might symbolize the three stages of the role acquisition function in your life. o Students‘ responses will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material. o The role acquisition function refers to the use of products as symbols to help us feel more comfortable in a new role. People typically move from one role to another in three phases: separation, transition, and incorporation.

LXXII.

Special Possessions (LO 16-3, PPT Slides 14–19) a. Some products come to hold a special, valued position in our minds.  Pets  Memory-laden objects  Achievement symbols 291

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 Collections b. Special possessions have several distinct characteristics:  Special possessions have few or no substitutes according to their owners.  Consumers will not sell special possessions at market value, if at all, and often buy special possessions with little regard for their price.  People experience a reluctance to discard special possessions, even when they lose their functional value.  Consumers frequently personify special possessions and may treat those possession as though they are our partners. c. Possessions take on special meaning for several reasons:  Symbolic value: Fulfill emblematic, role adoption, connectedness, and expressiveness functions  Mood-altering properties: Evoke feelings of pride, happiness, joy, or comfort or reduce stress  Utilitarian value: Are extremely useful d. We often engage in rituals designed to create, energize, or enhance the meaning of special possessions.  These rituals can occur at the acquisition, usage, or disposition stage of consumption.  Possession ritual: Ritual we engage in when we first acquire a product that helps to make it ―ours‖  Grooming ritual: Ritual we engage in to bring out or maintain the best in special products  Divestment ritual: Ritual enacted at the disposition stage that is designed to wipe away all traces of our personal meaning in a product e. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 19) 15–20 minutes total  Develop a list of symbols that have unique meaning among college students. Explain how knowing this might be helpful to marketers. o Students‘ responses will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

LXXIII.

Sacred Meaning (LO 16-4, PPT Slides 20–22) a. Sacred entities: People, things, and places that are set apart, revered, worshiped, and treated with great respect  We may find such entities deeply moving.

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

We may feel anger and revulsion when they are not respected.  Sacred objects also possess strong approach/avoidance characteristics and create an overwhelming feeling of power and fascination.  Sacredness may be maintained by scarcity and exclusivity.  Sacredness can be established by creating or enhancing mystery or myth. b. Profane things: Things that are ordinary, and hence have no special power  Marketers sometimes unintentionally profane sacred objects through commercialization. c. Discussion Activity 2: Pose the question to the class. (PPT Slide 22) 5 minutes total  Explain why understanding the sacred and profane nature of things is important for marketers. o Students‘ responses will vary. Sacred objects, rituals, or symbols hold special meaning. Profane objects, on the other hand, are associated with everyday, mundane activities. Marketers who understand these associations can strategically use symbolism to evoke emotions, create brand identities, or establish connections with consumers. By aligning their marketing efforts with the sacred or profane nature of specific elements, marketers can tap into the power of symbolism and enhance consumer engagement.

Understanding the sacred and profane nature of things allows marketers to develop culturally relevant strategies and create meaningful brand connections.

LXXIV.

The Transfer of Symbolic Meaning Through Gift Giving (LO 16-5, PPT Slides 23–29) a. Gift giving often occurs over three stages.  Gestation stage: The first stage of gift giving, when we consider what to give someone  Presentation stage: The second stage of gift giving, when we actually give the gift  Reformulation stage: The final stage of gift giving, when we reevaluate the relationship based on the gift-giving experience b. During the gestation stage we develop motives for gift giving.  Altruistic—To help or show love to the recipient 293

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

Relational—To symbolize our closeness to the individual  Agnostic—Because we derive positive emotional pleasure from the act of giving  Instrumental—Expecting the recipient to give something in return  Obligatory—Because we feel the situation or the relationship demands it  Compensatory—To reduce guilt or alleviate hard feelings  Antagonistic—To bother, annoy, or antagonize the recipient c. The appropriateness of the gift depends on the situation and the relationship between the gift giver and the recipient.  The value of the gift is an important element of the gift-selection process.  May be influenced by culture d. The ritual or ceremonial aspects of the giving process become very important during the presentation stage.  Ceremony  Timing and surprise  Attention to the recipient  Recipient‘s reaction e. During the reformulation stage, the giver and the recipient reevaluate their relationship based on the gift-giving process.  Can either maintain, strengthen, or weaken the relationship between the giver and receiver  Has implications for how and whether the recipient will reciprocate on the next gift-giving occasion o May be influenced by culture f. Firms can build on several aspects of gift giving to market more effectively to consumers.  Many marketers promote their products for gift-giving occasions. o Gift-giving may be the primary focus of their business. o Marketers should suggest gifts or make it easier for gift givers to identify potential gifts during online shopping. o Social media plays a particularly powerful role among younger consumers as a source of inspiration for gifts.

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

Online and off-line retailers need to make returns seamless.  Marketers can partner with organizations that let online customers buy gifts and send a message and card to gift recipients within minutes of their order. g. Polling Activity: Conduct a poll with the class. (PPT Slide 29) 5–10 minutes total  When it comes to gift-giving, which motive do you believe has the most significant influence on consumer behavior?  Ask students to explain how the motive they chose might impact a marketer‘s efforts at positioning an offering as a gift. o Students‘ opinions will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

LXXV.

Charitable Giving (LO 16-2, PPT Slides 30–33) a. Consumers vary in the types of organizations to which they give money (Exhibit 16.11 on PPT Slide 31). b. Not everyone is equally likely to give to charity.  People who feel that they are better off than others are more likely to give to others for altruistic reasons.  Consumers who perceive that a charity‘s beneficiaries have little responsibility for their plight will tend to donate more money.  Consumers with an interdependent self-construal (i.e., they think more about themselves as a member of a group) are more open to charitable giving than consumers with independent self-construals (i.e., those who are more likely to think about themselves as individuals).  People who move around a lot are more likely to have a global identity, which increases the likelihood that they will give to distant others.  Liberals tend to give to more charitable institutions while giving less money to each, while conservatives give to fewer institutions but donate more to each. c. Several factors influence when people will give to charity.  Being explicitly asked to make a donation to some cause can be difficult for some consumers because they don‘t want to appear unkind or uncaring.

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



 



Consumers are more likely to donate to charitable causes when they are asked to donate to one target rather than two.

Asking consumers about their intentions to volunteer time for a charitable cause activates an emotional reaction that in turn increases monetary contributions.

Donations are more likely following purchase of a hedonic product vs. a utilitarian one.

People are more likely to donate when the product is framed as a ―charitable purchase‖ versus a ―donation with a gift.‖ Consumers are less likely to donate to a charity that has corporate sponsorship.

[return to top]

END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

127.

Contrast the emblematic function of a product with the role acquisition function; also contrast the connectedness function of a product with the expressive function.  Answer: The emblematic function is the use of products to symbolize membership in social groups. The role acquisition function uses products as symbols to help feel more comfortable in a new role. An emblematic product signifies that you belong to a particular group. For example, a polo short with an embroidered company logo might indicate to others that you are a member of that organization, while a new briefcase could help an individual transition from college to a position within that company, exemplifying the role acquisition function. 

The connectedness function is the use of products as symbols of our personal connections to significant people, events, or experiences, while on the other hand, the expressive function is the use of products to demonstrate our uniqueness from others. For example, a collection of ticket stubs from concerts attended might help an individual connect to those memories and the people with whom they shared those experiences. Unique personalities might be expressed instead through offerings like clothing, home decoration, art, music, leisure activities, and food consumption.

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128.

What is reflexive evaluation, and how does it affect role acquisition?  Answer: Reflexive evaluation refers to feedback from others that tells us whether we are fulfilling a role correctly.

When we first enter a new role, we may lack some role confidence. As a result, we engage in activities and buy groups of products typically associated with that role.

These activities and products, along with the way that others react to our behaviors, enhance our role confidence.

If the feedback a consumer receives is not to their liking, they will likely be motivated to acquire additional products to aid in building confidence in their new role.

129.

How does the ideal identity schema relate to a person‘s actual identity schema?  Answer: Ideal identity schema and actual identity schema are conceptually similar to the ideas of actual and ideal states previously discussed. Here the ideal identity schema is a set of ideas about how our identity would be indicated in its ideal form while the actual identity schema is the set of multiple, salient identities that reflect our selfconcept.

130.

What are the three main reasons why possessions take on special meaning?  Answer: Possessions take on special meaning when they have symbolic value; they possess mood-altering properties, or they have a high level of utilitarian value to the consumer. Some products that come to hold a special, valued position in consumers‘ minds include pets, symbols of achievement (such as diplomas and trophies), and objects that evoke memories or emotions of special people, places, or experiences (such as heirlooms and souvenirs).

131.

Why do consumers engage in possession, grooming, and divestment rituals?  Answer: We often engage in rituals designed to create, energize, or enhance the meaning of special possessions.

These rituals can occur at the acquisition, usage, or disposition stage of consumption. Possession rituals are the processes we engage in when we first acquire a product that help to make it ―ours.‖ Grooming rituals then bring out or maintain the best in our special products during the usage stage. Divestment rituals are designed to wipe away all traces of our personal meaning in a product at the disposition stage.

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132. 

What are sacred entities, and how are they profaned?

Answer: Sacred entities are those that we have awarded special status to. These include people, things, and places that are set apart, revered, worshipped, and treated with great respect. We profane something by removing this special status to make the person, place, or thing ordinary, hence removing its special power. For instance, marketers sometimes unintentionally profane sacred objects through commercialization.

133.

Identify the three stages of gift giving, and explain how gift giving can affect relations between the giver and the recipient.  Answer: Stage one is the gestation stage. Here we consider what to give someone. Stage two is the presentation stage, when we actually give a gift to someone. Stage three (the final stage ) is the reformulation stage, when we reevaluate the relationship based on the gift-giving experience. 

134. 

Gift giving has some potentially strong effects on relationships. These include maintaining, strengthening, or weakening a relationship. Gifts could strengthen a relationship by communicating feelings of connection, bonding, and commitment. Gifts can also affirm the relationship, validating existing feelings of commitment.

On the negative side, inappropriate gifts or those showing limited search effort or interest in the recipient‘s desires can weaken a relationship, creating the perception that the relationship lacks bonding and connection.

Explain when consumers are most likely to give to charity.

Answer: Not everyone is equally likely to give to charity.

People who feel that they are better off than others are more likely to give to others for altruistic reasons.

Consumers who perceive that a charity‘s beneficiaries have a lot of responsibility for their plight will tend to give less money, out of a sense of justice. However, when they perceive that a charity‘s beneficiaries have little responsibility for their plight, consumers will tend to donate more money. Consumers with an interdependent selfconstrual (i.e., they think more about themselves as a member of a group) are more open to charitable giving than consumers with independent self-construals (i.e., those who are more likely to think about themselves as individuals).

People who move around a lot are more likely to have a global identity, which increases the likelihood that they will give to distant others. Political ideology also 298

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affects charitable donations. Although liberals and conservatives are similarly charitable in the amount of money they give, liberals tend to give to more charitable institutions while giving less money to each, while conservatives give to fewer institutions but donate more to each. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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: Special Possessions (LO 16-2) Duration 5–10 minutes. 

Thinking about your home environment, identify five possessions that are special to you. Why do you regard these items as valuable? o

Answer: Students‘ examples will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

33.

Discussion: Gift Exchanges and New Media (LO 16-4) Duration 5 minutes. 

New media are making it possible to exchange new kinds of gifts with each other. Discuss how the Internet, for instance, can be a source of gift exchanges. o

Answer: Since the most popular source of searching for gifts is online shopping, marketers need to do whatever they can to suggest gifts or make it easier for gift givers to identify potential gifts. Social media plays a particularly powerful role among younger consumers as a source of inspiration for gifts. Online gift guides are also popular channels for those seeking gifts. To facilitate the gift-giving process, marketers might partner with organizations like GiftNow that let online customers buy gifts and send a message and card to gift recipients within minutes of their order. Recipients can modify their choices or exchange gifts before they arrive.

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ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

27.

Activity: The Expressiveness Function and Marketers (LO 121) Duration 20 minutes. 

Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class.



As a group, students should discuss how the expressiveness function is reflected in the campus environment. They should also explain how knowing this could be helpful to retailers deciding to enter a college-centered market. o

The expressiveness function refers to the use of products as symbols to demonstrate our uniqueness—how we stand out as different from others. We express our unique personalities through offerings like clothing, home decoration, art, leisure activities, and food consumption. For example, on a campus, students may wear clothing that reflects their individuality, interests, or group affiliations. Their dorm rooms might be decorated in a way that reflect their personal tastes, hobbies, and beliefs.

o

Students‘ responses will vary. By understanding the expressiveness function, retailers can develop targeted marketing strategies tailored to college students' desire for self-expression and identity projection. Marketers may suggest that their products enhance uniqueness. One way to do so is through customization options. Retailers can emphasize how their products or brands align with students' values, aspirations, and personal style. Creating an in-store environment that promotes self-expression can be a powerful draw for college students. Engaging with the campus community and understanding its dynamics is crucial for retailers. Partnering with student organizations, sponsoring events, or collaborating with campus influencers can increase brand visibility and credibility among the student population. By actively participating in campus life, retailers can position themselves as supporters of student expression and foster a sense of community, ultimately building long-term loyalty.

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28.

Group Activity: Charitable Giving (LO 16-5) Duration 30–40 minutes. 

Divide the class into small groups and provide each group with a selection of charitable giving campaigns from various organizations or companies. These can include print ads, social media posts, website banners, videos, or any other materials used to promote the charitable cause.



Instruct each group to analyze their assigned campaign and discuss the following points: o

Who are the marketers trying to appeal to with their message?

o

What emotions are being evoked in the audience? How do they try to connect with consumers on an emotional level?

o

How do they communicate the value of contributing?

o

What type of consumer is most likely to donate to each charity?

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TABLE OF CONTENTS Purpose and Perspective of the Chapter ............................. 211 List of Student Downloads .......................................... 211 Chapter Objectives ................................................. 212 Complete List of Chapter Activities and Assessments ................ 212 Key Terms .......................................................... 212 What's New in This Chapter ......................................... 214 Chapter Outline .................................................... 214 End-Of-Chapter Questions for Review and Discussion ................. 224 Additional Discussion Questions .................................... 227 Additional Activities and Assignments .............................. 228

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PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to explore marketing, ethics, and social responsibility in a consumer society. Marketing and consumer behavior can have a ―bright side,‖ producing benefits for consumers and society at large, and a ―dark side,‖ inflicting harm on consumers and society at large. Decision-makers often face ethical issues when they try to balance social dilemmas (whose interests will take priority?) and temporal dilemmas (whether immediate or long-term interests take priority). Marketing ethics are founded in moral values, that is, rules or standards of what is right and wrong conduct that guide marketing decisions. Consumer ethics are also founded in moral values, that is, rules or standards of what is right and wrong conduct that guide consumer decisions. Controversial consumer behavior breaks the rules of what is acceptable in a particular group or society by being illegal, addictive, compulsive, and/or otherwise norm-violating.

Four areas of controversy related to acquisition situations are consumer theft, black markets, addictive and compulsive buying behavior, and targeting vulnerable segments (in particular, children).

In the context of consumption situations, controversies include underage drinking and smoking, overeating and obesity, compulsive gambling and gaming, privacy protection, and marketing‘s contribution to creating idealized self-images. Disposition controversies include disposing of functional products and hoarding (i.e., not disposing of product one should dispose of).

Social responsibility issues receiving special marketing attention are environmentally conscious behavior and ethical sourcing, charitable behavior, and community involvement.

Consumers can cope with controversial marketing through boycotts, buycotts, joining a class action lawsuit, retaliating or sabotaging, forming and joining advocacy groups, and increasing their own and others‘ consumer literacy.

LIST OF STUDENT DOWNLOADS Students should download the following items from the Student Companion Center to complete the activities and assignments related to this chapter: 

Downloadable Student PowerPoints

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 303 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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17-1

Describe the social and temporal dilemmas that marketers and consumers encounter.

17-2

Identify key controversial consumer behaviors.

17-3

Discuss how consumers and organizations can use marketing for socially responsible purposes.

17-4

Describe how consumers can counter controversial marketing practices.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide.

Chapter Objective 17-1 17-2 17-3 17-4 17-1 – 17-4

17-1 – 17-4

17-1 – 17-4

Activity/Assessment Discussion Activity 1 Discussion Activity 2 Polling Activity Group Activity Learn It: Concept Check Quiz: Chapter 17 Marketing, Ethics, and Social Responsibility in a Consumer Society Apply It: Assignment: Chapter 17 Marketing, Ethics, and Social Responsibility in a Consumer Society Apply It: Case Activity: Chapter 17 Marketing, Ethics, and Social Responsibility in a Consumer Society

Source (i.e., PPT slide, Workbook) PowerPoint Slide 9 PowerPoint Slide 23 PowerPoint Slide 29 PowerPoint Slide 32 MindTap Learning Path Chapter 17 Folder

Duration

MindTap Learning Path Chapter 17 Folder

35–45 mins.

MindTap Learning Path Chapter 17 Folder

35–45 mins.

5–10 mins.

5–10 mins.

5–10 mins.

10-15 mins.

35–45 mins.

[return to top]

KEY TERMS Addiction: A recurring desire to continue taking a substance, such as alcohol, tobacco, or prescription or recreational drugs, despite harmful consequences.

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Black market: Any market where the exchange of goods and services takes place in order to facilitate the transaction of illegal goods or to avoid government oversight and taxes, or both.

Boycott: An organized activity in which consumers avoid purchasing products or services from a company whose policies or practices are perceived as causing or having caused major harm by violating moral values.

Buycott: An organized activity in which consumers deliberately engage in purchasing products or services from a company whose policies or practices are perceived as causing or having caused major benefits due to its high moral values.

Compulsive behavior: Repetitive behavior that a person knowingly feels compelled to perform despite its harmful consequences. It is sometimes called a behavioral addiction.

Compulsive buying behavior: A mental health condition characterized by the persistent, excessive, impulsive, and uncontrollable purchase of products in spite of severe psychological, social, occupational, and/or financial consequences. Also known as compulsive buying disorder.

Conservation behavior: Actions taken to limit the use of new, scarce natural resources and to consume in sustainable ways.

Consumer ethics: Moral values, that is, principles or standards of what is morally right or wrong to do in consumer decision making and behavior.

Consumer greenwashing: A specific form of consumer hypocrisy. It takes place when consumers claim to be pro-environment but engage in various behaviors that are more symbolic than impactful or fail to act altogether.

Consumer hypocrisy: When even though they could, consumers knowingly do not act on their stated moral values. Condemning others‘ failures to act on their stated moral values strengthens the hypocrisy.

Consumer literacy: Having the skills, knowledge, and behavioral engagement to make effective consumer decisions.

Controversial consumer behavior: Breaking the rules of what is acceptable in a particular group or society, by being illegal, addictive or compulsive, and/or otherwise norm-violating.

Corporate greenwashing: Misleading consumers by using environmental claims for marketing purposes.

Corporate hypocrisy: A discrepancy between the stated high moral values and the low actual behaviors of companies.

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Corporate social responsibility (CSR): Initiatives that aim to balance the economic, social, and environmental interests of the shareholders, consumers, and other stakeholders of the firm into an integrated business model.

Counterfeit products: Products that carry the name, logo, packaging, and other characteristics of the original brand, i.e., its ―tradedress,‖ but are fake.

Ethical sourcing: Obtaining supplies and making products in accordance with social responsibility and sustainability values.

Marketing ethics: Moral values, that is, principles or standards of what is morally right or wrong to do in marketing practice.

Social comparison theory: Theory which specifies that people have the natural drive to search for accurate self-evaluations and seek comparison with others in case objective comparison standards are missing. Also, it specifies that comparison may be downward with lower-level standards or upward with higher-level standards.

Social dilemmas: When a consumer‘s self-interest conflicts with the interest of one or more others or of society at large.

Temporal dilemmas: When a consumer‘s immediate interest conflicts with their long-term interest. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition:       

Updated learning objectives New treatment of morality of consumers and firms New framework on controversial consumer behavior, including compulsive buying, eating, gambling, and gaming Extended treatment of corporate social responsibility and consumer advocacy Numerous new examples Numerous academic studies added Almost all exhibits are new

[return to top]

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text.

LXXVI.

In Search of Balance (LO 17-1, PPT Slides 4-9) a. Exhibit 17.1 (PPT Slide 3) provides an overview of the chapter. b. When marketers and consumers make decisions, they often face potentially conflicting priorities and outcomes.  Social dilemmas: When a consumer‘s self-interest conflicts with the interest of one or more others or of society at large  Temporal dilemmas: When a consumer‘s immediate interest conflicts with their long-term interest  Social dilemmas focus on ―who‖ gains, and temporal dilemmas focus on ―when‖ the gain materializes.

(Exhibit 17.2 on PPT Slide 6) o Me versus we o Me versus them o Me or we o Me or them c. Choosing to focus on me, we, them or all is not intrinsically good or bad.  Helpful other-focus: The sharing of ideas or posting product reviews that help others  Harmful self-focus: Shoplifting d. Marketers must sometimes perform a balancing act.  Self-interest vs. the interest of others  Immediate vs. long-term interest  Dark side vs. bright side outcomes e. In case of a temporal dilemma, the central issue is: How will the decision affect my interests, our interests, or their interests immediately, compared with the future?  Decisions that emphasize short-term interests may have positive or negative implications for the future. f. Conflicts that arise from dilemmas in marketing sometimes lead to ―dark side‖ outcomes, which can potentially harm consumers or marketers.  Corporate social responsibility (CSR): Initiatives that aim to balance the economic, social, and environmental interests of the shareholders,

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consumers, and other stakeholders of the firm into an integrated business model g. Discussion Activity 1: Pose the questions to the class.

(PPT Slide 9) 5–10 minutes total  How do marketers leverage social and temporal dilemmas to influence consumer behavior?  Discuss the ethical implications of using these tactics and explore potential ways to strike a balance between effective marketing strategies and respecting consumers' autonomy and well-being. o Students‘ examples will vary. Marketers use various strategies to leverage social and temporal dilemmas to influence consumer behavior.

Some common tactics include: – Creating a sense of urgency through limited-time offers to encourage consumers to make immediate purchases leverages temporal dilemmas.

– Encouraging consumers to leave positive reviews, testimonials, or endorsements demonstrating that others have already made the purchase and are satisfied leverages social dilemmas.

– Fear-based messaging, emphasizing the potential negative consequences of not making a purchase promptly, also leverages temporal dilemmas. o While these marketing strategies can be effective in influencing consumer behavior, they also raise ethical considerations. Marketers must strike a balance between promoting products and respecting consumers' autonomy and well-being.

LXXVII.

Marketing, Consumer Ethics, and Controversial Consumer Behavior (LO 17-2, PPT Slides 10–23) a. Marketing ethics: Moral values, that is, principles or standards of what is morally right or wrong to do in marketing practice  Consumer ethics: Moral values, that is, principles or standards of what is morally right or wrong to do in consumer decision making and behavior  Controversial consumer behavior: Breaking the rules of what is acceptable in a particular group or society, by being illegal, addictive or compulsive, and/or otherwise norm-violating  Exhibit 17.4 (PPT Slide 12) presents our classification of common controversial consumer 308

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behaviors. It also indicates which dilemma each of the behaviors involves. b. Four acquisition controversies are as follows:  Consumer theft (Exhibit 17.5 on PPT Slide 14)  Black markets and counterfeit products  Addictive and compulsive behavior  Marketing to vulnerable segments c. Consumers may engage in theft because they (1) feel the temptation to steal and (2) can somehow justify their behavior.  Various factors associated with the product, the environment, and the consumer can influence temptation and the ability to rationalize. d. Black market: Any market where the exchange of goods and services takes place in order to facilitate the transaction of illegal goods or to avoid government oversight and taxes, or both e. Counterfeit products: Products that carry the name, logo, packaging, and other characteristics of the original brand, i.e., its ―trade-dress,‖ but are fake f. Addiction: A recurring desire to continue taking a substance, such as alcohol, tobacco, or prescription or recreational drugs, despite harmful consequences g. Compulsive behavior: Repetitive behavior that a person knowingly feels compelled to perform despite its harmful consequences. It is sometimes called a behavioral addiction  Compulsive buying behavior: A mental health condition characterized by the persistent, excessive, impulsive, and uncontrollable purchase of products in spite of severe psychological, social, occupational, and/or financial consequences. Also known as compulsive buying disorder h. Another controversial behavior concerns marketing activity to target vulnerable consumer segments, in particular children.  Individual characteristics  Social phenomena  Company practices  Environmental forces i. Consumer literacy: Having the skills, knowledge, and behavioral engagement to make effective consumer decisions j. Acquisition controversies raise important questions that affect marketers and their relationships with consumers and other stakeholders.  How can marketers deal with consumer theft?

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

How can marketers deal with black markets and counterfeit products?  Does marketing encourage addictive and compulsive acquisition behaviors? o Public policy makers and social critics view various marketing practices as perpetuating forms of addictive and compulsive consumption, which they try to curtail.  Should marketers target children and how? o In the United States, the Children‘s Online Protection Act (COPPA) and an FTC Act regulate advertising to children to protect their privacy and safety. k. The use or ―consumption‖ of products can be controversial as well.  Underage alcohol, tobacco and other substance consumption  Overeating and obesity  Compulsive gambling and gaming l. There are also marketing ethics to consider concerning:  Consumer privacy protection  Promoting idealized self-images (Exhibit 17.7 on PPT Slide 20) o Social comparison theory: Theory which specifies that people have the natural drive to search for accurate self-evaluations and seek comparison with others in case objective comparison standards are missing (a) Comparison may be downward with lowerlevel standards or upward with higher-level standards m. Marketers must understand the demanding questions raised by such acquisition controversies when planning their strategy and activities.  Does marketing encourage underage consumption of alcohol, tobacco, and other substances?  Does marketing contribute to overeating and obesity?  Does marketing affect compulsive gambling and gaming behavior?  Do marketers invade consumers‘ privacy?  Does marketing affect self-image? n. Controversial disposition behaviors include the following:  Disposing of products that still function  Hoarding (a failure to dispose of products) o. What role can or should marketers play in disposing of functioning products and in reducing hoarding?

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

Businesses and nonprofit organizations can facilitate the disposition of functional products.  Marketing policies can encourage trade-ins toward the purchase of new goods.  Recycling programs can deal with products that otherwise would pile up in landfills.  Some marketers motivate consumers to sell their unwanted goods back to them. p. Consumption controversies are not necessarily isolated phenomena.  Some compulsive consumption behaviors can co-occur— called comorbidity.  Certain compulsive consumption behaviors are associated with the Big-Five personality traits of consumers. q. Discussion Activity 2: Pose the questions to the class.

(PPT Slide 23) 5–10 minutes total  Discuss whether advertising creates idealized images of appearance and body type.  Discuss the extent to which advertising might influence consumers‘ satisfaction with their own appearance. o Students‘ opinions will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

Despite improvements in diversity and inclusion, much advertising still shows young, beautiful, thin, fit, and well-to do people in happy, balanced, personal, family, and social situations. Social critics argue that such marketing practices eventually contributes to unrealistic and idealized self-images, reduced consumer well-being, and overconsumption of cosmetic and other products.

LXXVIII.

Social Responsibility Issues in Marketing (LO 17-3, PPT Slides 24–29) a. Conservation behavior: Actions taken to limit the use of new, scarce natural resources and to consume in sustainable ways  Consumers are most likely to conserve when: o They accept their shared personal responsibility for environmental problems o The perceived effectiveness of their behavior is high 311

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

Marketers can influence consumers‘ behavior by: o Making the problem personally relevant o Providing simple information about how to be environmentally friendly o Appealing to social norms, sustainability or to other motives of consumers (saving money) o Using incentives (tax credits) rather than coercive tactics (higher taxes) o Setting goals and providing feedback b. Corporate hypocrisy: A discrepancy between the stated high moral values and the low actual behaviors of companies  Corporate greenwashing: Misleading consumers by using environmental claims for marketing purposes c. Ethical sourcing: Obtaining supplies and making products in accordance with social responsibility and sustainability values d. Consumer hypocrisy: When even though they could, consumers knowingly do not act on their stated moral values  Condemning others‘ failures to act on their stated moral values strengthens the hypocrisy.  Consumer greenwashing: When consumers claim to be pro-environment but engage in various behaviors that are more symbolic than impactful or fail to act altogether e. Companies can also use marketing as a catalyst for community-based social responsibility.  Encouraging employees to get involved in the communities where they do business: o Generates goodwill and positive word of mouth o Increases employee satisfaction  Requests and pledges to donate time can make a significant impact. (Exhibit 17.10 on PPT Slide 28) f. Polling Activity: Conduct a poll with the class. (PPT Slide 29) 5–10 minutes total  Marketers can influence consumers‘ conservation behavior in many ways. Which tactic is most likely to impact to your own consumer behavior? Why? o Students‘ opinions will vary. The important thing is the students‘ thought process and their ability to clearly articulate their response and demonstrate an understanding of the material.

LXXIX.

How Can Consumers Counter Controversial Marketing Practices? (LO 17-4, PPT Slides 30–32) a. Consumers have a host of responses through which to counter controversial marketing practices and to support good marketing practice.

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

Boycott: An organized activity in which consumers avoid purchasing products or services from a company whose policies or practices are perceived as causing or having caused major harm by violating moral values  Buycott: An organized activity in which consumers deliberately engage in purchasing products or services from a company whose policies or practices are perceived as causing or having caused major benefits due to its high moral values  Join a class action lawsuit  Retaliate or sabotage  Form or join advocacy groups  Increase consumer literacy b. Group Activity: Break the class into small groups of three to five students and have them complete the activity followed by an instructor-led debrief with the class. (PPT Slide 32) 10–15 minutes total  Discuss the ethical implications behind each of the following consumer behaviors in response to controversial marketing practices: Boycott, buycott, class action lawsuit, retaliation or sabotage, advocacy groups. o Students‘ responses will vary. o Consumers have the power to counter controversial marketing practices and support good marketing practices through various means. However, these actions often have ethical implications that can impact both the consumers and the businesses involved. o For example, while boycotts may hold a business accountable for unethical behavior, it could have negative consequences for the company‘s reputation, leading to a loss of business and the loss of livelihood for its employees. o While these actions can be instrumental in promoting ethical marketing practices, it's essential for consumers to be well-informed and consider the potential consequences of their actions. Ethical behavior should extend to the way consumers express their concerns, avoiding harmful tactics or unsubstantiated accusations. [return to top]

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END-OF-CHAPTER QUESTIONS FOR REVIEW AND DISCUSSION The following are possible answers to the end-of-chapter questions found in the text.

135.

Why is balance needed in decisions that involve social dilemmas and temporal dilemmas?  Answer: Decisions come with potentially conflicting outcomes and consequences. A social dilemma occurs when a consumer‘s self-interest conflicts with the interest of one or more others or of society at large. Temporal dilemmas occur when a consumer‘s immediate interest conflicts with their long-term interest. This can result in a ―me vs. we‖ situation. Thus, there needs to be balance attained among the following: self-interest versus the interests of others, immediate versus long-term interests, and dark side versus bright side outcomes.

136.

What is controversial consumer behavior, and is it always illegal?  Answer: Controversial consumer behavior describes when consumers break the rules of what is acceptable in a particular group or society, by being illegal, addictive or compulsive, and/or otherwise norm-violating. Although controversial consumer behavior unexpected or not sanctioned by members of society, it is not necessarily illegal (nor unethical) behavior. For example, one could consider it controversial if a person buys all remaining inventory of a hard-to-get product and sells the extras to their ―friends‖ for a hefty profit.

137.

How does addictive behavior differ from compulsive behavior?  Answer: Addictive behavior involves a recurring desire to continue taking a substance, such as alcohol, tobacco, or prescription or recreational drugs, despite harmful consequences. Compulsive behavior refers to repetitive behavior that a person knowingly feels compelled to perform despite its harmful consequences. It is sometimes called a behavioral addiction. Compulsive buying behavior is a specific mental health condition characterized by the persistent, excessive, impulsive, and uncontrollable purchase of products in spite of severe psychological, social, occupational, and/or financial consequences.

138. 

How do temptation and justification affect consumer theft?

Answer: Consumers may engage in theft because they (1) feel the temptation to steal and (2) can somehow justify their 314

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behavior. Temptation to steal can arise when consumers want products that they cannot legitimately buy, either to satisfy the need for the product or for financial gain, when selling it. Consumers may also be tempted to steal items that they are too embarrassed to buy through conventional channels (e.g., contraceptives) or that they cannot legally buy (e.g., alcohol for an underage consumer). Consumers also are more likely to steal when they somehow can justify their behavior as being either acceptable or driven by forces outside themselves. For example, consumers may justify stealing a low-ticket item such as a grape from a bunch at the grocery store because the item‘s cost seems so negligible that the word stealing hardly seems to apply. ―Everybody does it‖ is another rationalization, in which people feel they are ―licensed to steal‖ because stealing does not violate a norm or may even be construed to be ―the norm.‖ 139.

What is social comparison theory, and how does it apply to advertising?  Answer: Social comparison theory proposes that individuals have a natural drive to search for accurate selfevaluations and seek comparison with others in case objective comparison standards are missing. Advertising often uses social comparison theory. To illustrate, advertisers might use attractive people to sell their products or show a parent using a product for their baby to demonstrate that good, caring parents use the product.

140. 

What influences consumers‘ conservation behavior?

Answer: Conservation behavior involves actions taken to limit the use of scarce natural resources for the purposes of environmental preservation and sustainable consumption.

Consumers are more likely to engage in conservation behavior when they accept their shared personal responsibility for environmental problems or the perceived effectiveness of their behavior is high. Marketers can influence consumers‘ behavior by: making the problem personally relevant; providing simple information about how to be environmentally friendly; appealing to social norms, sustainability or to other motives of consumers (saving money); using incentives (tax credits) rather than coercive tactics (higher taxes); and setting goals and providing feedback.

141.

What is greenwashing, and what does it mean for consumers and marketers?  Answer: Public interest in and support for environmentally conscious behavior has resulted in a backlash against 315 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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corporate greenwashing, the misleading use of environmental claims for marketing purposes. When marketers promote nonexistent or minimally beneficial eco-friendly claims as part of CSR programs, they risk being perceived as merely exploiting consumers‘ interest in green goods or services.

Such corporate hypocrisy is a discrepancy between the stated high moral values and the low actual behaviors of companies. When exposed, it can have a major long-term negative impact on consumer demand for the product and company revenue, and it may hurt the perception of corporate social responsibility programs more generally. To avoid confusion and deception, government regulators in many nations have established specific guidelines for how marketers can use phrases like ―environmentally friendly.‖ 142.

What can consumers do to counter controversial marketing practice?  Answer: Consumers have a host of political responses through which to counter controversial marketing practices and to support good marketing practice. These include boycotts, buycotts, class action lawsuits, retaliation or sabotage, forming or joining advocacy groups, and increasing their own or others‘ consumer literacy. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists)—they are for you to use as you wish. 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.

34.

Discussion: Compulsive Behavior (LO 17-2) Duration 5–10 minutes. 

In recent years, compulsive gambling has been on the rise.

Discuss the factors that may be causing this rise. Discuss what role, if any, gambling organizations should have in helping individuals who struggle with compulsive gambling. o

Answer: Students‘ responses will vary. Possible answers include that the increased availability of gambling activities, both in physical casinos and online platforms, has made it easier for individuals to engage in gambling. The convenience and 24/7 accessibility of online gambling contribute to a higher risk of developing gambling problems. Students 316

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o

may also point to aggressive marketing campaigns by gambling operators, including attractive promotions and bonuses, which create a pervasive gambling culture. Such advertising may target vulnerable individuals and contribute to the normalization of gambling behaviors.

Gambling organizations can actively promote responsible gambling practices through informative campaigns and tools that help individuals set limits, self-exclude (allow individuals to voluntarily ban themselves from gambling activities for a specified period, helping to limit access and reduce harm), or seek assistance if needed. They could also contribute funds to support treatment programs for compulsive gambling. These programs may include counseling, therapy, support groups, and helplines.

35.

Discussion: Controversial Disposition Behaviors (LO 17-2) Duration 5–10 minutes. 

How might advertising encourage controversial disposition behaviors such as disposing of products that still function or hoarding (failing to dispose of products)? o

Answer: Students‘ responses will vary.

o

Under certain circumstances, advertising practices might contribute to consumers disposing of products that still function.

– Some advertising and product design strategies promote planned obsolescence, where products are intentionally made to have a limited lifespan or become outdated quickly. This approach can lead consumers to believe that their functional products are no longer desirable or effective, pushing them to upgrade to newer models unnecessarily.

– Advertisements for the latest technological innovations can create a desire for consumers to own the latest gadgets and devices, even if their current ones are still functional.

– Advertising may emphasize the convenience of replacing older items with newer ones, and some companies promote recycling or disposal services, making it easier for consumers to dispose of functional products without much thought.

While advertising itself may not directly cause hoarding, certain marketing tactics and consumer behaviors can exacerbate hoarding tendencies. Here are

o

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some ways advertising practices might lead to hoarding: – Advertising that creates a sense of urgency or scarcity may drive impulsive buying behaviors and cause consumers to hoard more items than they need.

– Frequent promotions and discounts encourage consumers to buy more than they otherwise would.

The perceived value of discounted items can lead to stockpiling, especially when consumers anticipate using the products in the future.

– Advertisements for storage containers, organizing systems, or space-saving furniture may inadvertently encourage hoarding by providing practical solutions to store an increasing number of items.

– Advertising frequently promotes consumerism and materialism, encouraging individuals to constantly acquire new possessions. This culture of overconsumption can foster hoarding behaviors as consumers amass belongings beyond their actual needs. [return to top]

ADDITIONAL ACTIVITIES AND ASSIGNMENTS The following are activities and assignments developed by Cengage but not included in the text, PPTs, or courseware (if courseware exists)— they are for you to use if you wish.

29.

Group Activity: Controversial Products (LO 17-2) Duration 15–20 minutes. 

In small groups, ask the students to complete the smallgroup activity, followed by an instructor-led debrief.

Students should support their recommendations with content from the text. o

Discuss whether marketers should be allowed to market products, like cigarettes, that are addictive. What about alcohol? What about caffeine?

o

Consider whether the responsibility for the addictive behavior lies completely with the consumer or completely with the marketer.

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o

Take the role of a public policy committee and develop specific recommendations regarding the sales and marketing of addictive products.

30.

Group Activity: Social Responsibility and Ethics (LO 17-3) Duration 20–30 minutes. 

In small groups, ask the students to complete the smallgroup activity, followed by an instructor-led debrief.

Students should support their responses with content from the text. o

Assign each group a real-world example of a product or service with significant social responsibility and ethical considerations. Examples include fast fashion, single-use plastics, electronic waste, fair trade products, or sustainable energy sources.

o

Provide the students with a set of reflection questions to guide their group discussions.

– – – – –

How does your assigned example relate to consumer behavior and social responsibility?

What ethical dilemmas are associated with this product or service?

How do consumers' choices impact the demand for such products or services?

What role can businesses play in promoting socially responsible products or practices?

How can consumers make more ethical and sustainable choices in their daily lives?

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