Consumer Behavior Buying, Having, Being 13th Edition Michael R. Solomon Solution Manual

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Solution Manual

Resource:

Consumer Behavior Buying, Having, and Being

Edition:

13th Edition

Author(s):

Michael R. Solomon

Chapter 1: Buying, Having, Being

Chapter 1: BUYING, HAVING, and BEING CHAPTER OBJECTIVES When students finish this chapter, they should understand why: 1-1. Consumer behavior is a process.

1-2. Marketers have to understand the wants and needs of different consumer segments.

1-3. Our choices as consumers relate in a powerful way to the rest of our lives.

1-4. Our motivations to consume are complex and varied.

1-5. Technology and culture create a new “always-on” consumer.

1-6. Many types of specialists study consumer behavior.

1-7. There are differing perspectives regarding how and what we should understand about consumer behavior.

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

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

A consumer may purchase, use, and dispose of a product, but different people may perform these functions. In addition, we can think of consumers as role players who need different products to help them play their various parts.

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

Market segmentation is an important aspect of consumer behavior. Consumers can be segmented according to many dimensions, including product usage, demographics (the objective aspects of a population, such as age and sex), and psychographics (psychological and lifestyle characteristics). Emerging developments, such as the new emphasis on relationship marketing and the practice of database marketing, mean that marketers are much more attuned to the wants and needs of different consumer groups.

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

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

Our motivation to consume are complex and varied.

Marketers try to satisfy consumer needs but the reasons people purchase any product can vary widely. The identification of consumer motives is an important step to ensure that a product will satisfy appropriate needs. Traditional approaches to consumer behavior focus on the abilities of products to satisfy rational needs (utilitarian motives), but hedonic motives (e.g., the need for exploration or for fun) also play a key role in many purchase decisions.

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

The internet and social media transform the way consumers interact with companies and with each other. Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations.

Many types of specialists study consumer behavior.

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

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

Researchers who study consumer behavior do so both for academic purposes and to inform marketing organizations about practical decisions. We can roughly divide research orientations into two approaches: The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretivist (or CCT) perspective, in contrast, stresses the subjective meaning of the consumer’s individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation.

CHAPTER OUTLINE I. Consumer Behavior: People in the Marketplace A. Consumer behavior is a process.

1. The average consumer can be classified and characterized based on demographics (descriptive characteristics of a population, such as age, gender, income, occupation) Use Review Question 1-2 Here 2. Friends, family and other communities heavily influence us. a. The growth of the internet has created thousands of online consumption communities where members share opinions and product recommendations. b. As members of a large society, U.S. consumers share certain cultural values or strongly held beliefs about the way the world should be structured. c. Subcultures, or smaller groups within the culture, also share values (e.g.

Hispanics, teens, Midwesterners, hipsters). d. The use of market segmentation strategies may be used to target a brand to only specific groups of consumers rather than to everybody.

Use Review Question 1-3 Here

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3. Brands often have clearly defined images or “personalities” created by product advertising, packaging, branding, and other marketing strategies that focus on positioning a product in a certain way. a. Even the choice of websites is a lifestyle statement: It speaks to a person’s interests as well as aspirations.

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

B. What Is Consumer Behavior?

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

Use Review Question 1-1 Here 1. Consumer behavior is a process. a. Most marketers recognize that consumer behavior is an ongoing process, not merely what happens at the moment a consumer hands over money or a credit card and in turn receives some good or service (buyer behavior). b. The exchange—a transaction where two or more organizations or people give and receive something of value—is an integral part of marketing.

However, the expanded view of consumer behavior emphasizes the entire consumption process. This view includes issues that influence the consumer before, during, and after a purchase. (Figure 1.1) Use Figure 1.1 Here; Use Consumer Behavior Challenge 1-14 Here Use Review Question 1-5 Here 2. Consumer behavior involves many different actors. a. A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages in the consumption process. b. The purchaser and user of a product might not be the same person. A separate person might be an influencer. This person provides recommendations for or against certain products without actually buying or using them. c. Consumers may be organizations or groups (in which one person may make the decision for the group or a large group of people may make purchase decisions).

Use Review Question 1-4 Here

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II. Consumers’ Impact on Marketing Strategy A. Consumers Are Different! How We Divide Them Up 1. Society is evolving from a mass culture to a diverse one, which makes it more important to identify diverse market segments and to develop specialized messages and products for those groups. a. Just think about how many shades of lipstick or neck tie patterns compete for attention. This change makes it more important than ever to identify these distinct markets. b. Companies can define market segments by identifying their most loyal, core customers or heavy users. Marketers use the 80/20 rule as a rule of thumb, where 20% of users account for 80% of sales.

Use Review Question 1-6 Here c. Demographics are statistics that measure observable aspects of a population, such as birth rate, age distribution, and income. d. Important demographic dimensions include: • Age • Gender • Family structure • Social class and income • Race and ethnicity e. Geography and Lifestyles (a psychographic variable) are other important bases for segmenting consumers.

Use Consumer Behavior Challenge 1-15 & 1-20 Here 2. Segmenting by Behavior: Relationship and Database Marketing a. Relationship marketing occurs when a company makes an effort to interact with customers on a regular basis, giving customers reasons to maintain a bond with the company over time. b. Database marketing involves tracking consumers’ buying habits very closely and creating products and messages tailored precisely to people’s wants and needs based on this information.

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The collection and analysis of extremely large datasets is called big data.

Use Review Question 1-7 Here

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

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

Use Review Question 1-8 Here B. All the World’s a Stage 1. Role theory takes the view that much of consumer behavior resembles actions in a play. Consumers have roles and they may alter their consumption decisions depending upon the role being played at the time.

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

Use Consumer Behavior Challenge 1-19 Here IV. What Does it Mean to Consume?

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

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

Use Review Question 1-11 Here Use Consumer Behavior Challenge 1-16 Here V. Emerging Ways to Consume A. What Do We Need – Really?

1. A need is something a person must have to live or achieve a goal.

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

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

B. The Global “Always On” Consumer 1. Technology and culture create a new “always-on” consumer.

2. The United Nations defines a megacity as a metropolitan area with a total population of more than 10 million people.

Use Review Question 1-9 Here C. The Digital Native: Living a Social [Media] Life 1. The term digital native originated in 2001 to explain a new type of student. These consumers grew up “wired” in a highly networked, always-on world. They did not know a world without digital technology. .

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2. Today some people wear tiny cameras that allow them to create a lifelog of every event we experience throughout the day.

3. The Internet of Things (IoT) refers to the growing network of interconnected devices embedded in objects that speak to one another. a. Autonomous vehicles (self-driving cars) and “smart home” products are examples of IoT. 4. We are witnessing a revolution in M2M (machine-to-machine) communication. a. Artifical intelligence (AI) applications continuously improve through machine learning (such as Siri and Alexa).

5. Computer engineers are also introducing robot companions and sexbots.

Use Consumer Behavior Challenge 1-13 & 1-17 Here D. User-generated content, where everyday people film commercials, voice their opinions about products, brands and companies on blogs, podcasts and social networking sites, is part of the Web 2.0 era, which shifted the Internet from a one-way transmission medium to a social, interactive medium.

VI. Consumer Behavior as a Field of Study A. Where Do We Find Consumer Researchers? Just about anywhere we find consumers.

B. Interdisciplinary Influences on the Study of Consumer Behavior – Many fields shape the field of consumer behavior. Table 1.1 provides an example of interdisciplinary research issues about magazine usage. Figure 1.2 lists the disciplines in consumer research.

Use Table 1.1 & Figure 1.2 Here C. Two Perspectives on Consumer Research 1. One general way to classify consumer research is in terms of the fundamental assumptions the researchers make about what they are studying and how to study it. This set of beliefs is known as a paradigm. A paradigm shift may now be underway.

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

3. The emerging paradigm of interpretivism (or postmodernism) questions the previous assumptions. Proponents argue that there is too much emphasis on science and technology in our society, and that this ordered, rational view of consumers denies the complex social and cultural world in which we live. Others say positivism puts too much emphasis on material well-being, and that this logical outlook is dominated by an ideology that stresses the homogeneous views of a culture dominated by white males.

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a. Interpretivists instead stress the importance of symbolic, subjective experience and the idea that meaning is in the mind of the person because we live a world composed of a pastiche, or mixture of images. b. Table 1.2 summarizes these two perspectives. c. Research that regards consumption from a social and cultural poit of view rather than an economic exchange is called Consumer Culture Theory (CCT) Use Consumer Behavior Challenge 1-18 Here Use Table 1.2 Here Use Review Question 1-10 Here VII. Consumer Trends: Keep Ahead to Keep Up A. Consumer trends refers to the underlying values that drive consumers toward certain products/services and away from others.

B. Important trends include: 1. Sharing economy 2. Authenticity and personalization 3. Blurring of gender roles 4. Diversity and multiculturalism 5. Social shopping 6. Income inequality 7. Healthy and ethical living 8. Simplification 9. Interconnection and the IoT 10. Anonymity VIII. Taking It from Here: The Plan of the Book The plan is simple—it goes from micro to macro. Each chapter provides a “snapshot” of consumers, but the lens used to take each picture gets successively wider.

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

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

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

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Marketing Opportunity Real life can create marketing opportunity as in the growth of spring break travel to .

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Florida after the release of the book, Where the Boys Are. 4.

User-Generated Content (UGC) User-generated content like the Mentos and Diet Coke videos is an important aspect of the Web 2.1 era.

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

It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. (1 minute, Chapter Objective 1-1, AACSB: Application of Knowledge) 1-2. What are demographics? Give three examples of demographic characteristics.

Demographics are statistics that measure observable aspects of a population, such as birthrate, age distribution, and income. (1.5 minutes, Chapter Objective 1-2, AACSB: Application of Knowledge) 1-3. What is market segmentation? Give three examples of market segments.

The use of market segmentation strategies means targeting a brand only to specific groups of consumers rather than to everybody—even if it means that other consumers who do not belong to this target market are not attracted to that product. Examples may include product usage, demographics (e.g. age, sex, income), and psychographics (psychological and lifestyle characteristics). (1.5 minutes, Chapter Objective 1-2, AACSB: Application of Knowledge) 1-4. What is role theory, and how does it help us to understand consumer behavior?

The perspective of role theory takes the view that much of consumer behavior resembles actions in a play. As in a play, each consumer has lines, props, and costumes necessary to put on a good performance. Because people act out many different roles, they sometimes alter their consumption decisions depending on the particular “play” they are in at the time. The criteria they use to evaluate products and services in one of their roles may be quite different from those used in another role. (1.5 minutes, Chapter Objective 1-2, AACSB: Reflective Thinking) 1-5. What do we mean by an exchange?

A transaction in which two or more organizations or people give and receive something of value. (1 minute, Chapter Objective 1-2, AACSB: Application of Knowledge)

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1-6. Why is it important for businesses to learn about their heavy users?

Because heavy users account for a substantial proportion of revenues. They are the customers that are more likely to be loyal. These customers represent the best opportunity to cross-sell and up-sell. (1.5 minutes, Chapter Objective 1-2, AACSB: Reflective Thinking) 1-7. What is “Big Data”?

Big data refers to the collection and analysis of extremely large datasets. For example, Macy’s used GPS phone signals from Macy’s parking lots on Black Friday to estimate whether the department store would meet its sales projections for that day. (1 minute, Chapter Objective 1-5, AACSB: Information Technology) 1-8. What is popular culture, and how does this concept relate to marketing and consumer behavior?

Popular culture, consisting of the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market, is both a product of and an inspiration for marketers. Our lives are also affected in more far-reaching ways, ranging from how we acknowledge cultural events such as marriage, death, or holidays to how we view social issues such as air pollution, gambling, and addictions. (1 minute, Chapter Objective 1-3, AACSB: Reflective Thinking) 1-9. What do we mean by the term global consumer culture?

A culture in which people around the world are united by their common devotion to brand name consumer goods, movie stars, celebrities, and leisure activities. (1 minute, Chapter Objective 1-3, AACSB: Diverse and Multicultural Work Environments) 1-10. Name two different disciplines that study consumer behavior. How would their approaches to the same issue differ?

Two disciplines that study consumer behavior are psychology and sociology.

Psychologists study consumer behavior from a mental / brain information processing perspective while sociologists study consumer behavior from a group behavior perspective. (1.5 minutes, Chapter Objective 1-6, AACSB: Application of Knowledge) 1-11. This chapter states “people often buy products not for what they do but for what they mean. “ Explain the meaning of this statement and provide an example.

Role theory suggest that when people act out different roles in their lives, they also alter their consumption decisions depending of the particular” play” or “role” they are in at the time. These roles might include “up-and-coming executive,” “geek,” “hipster” or .

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“big man on campus.” Products help users establish their identity in these roles, provide nostalgic attachments, offer interdependence and elicit emotional bonds such as love.

One example of this is Peeps candy. These marshmallow products have no nutritional value but have a group of devotees that use Peeps in decorations, slide shows, and sculptures. The Peeps brand has created nostalgic attachment as this brand has an image or personality consistent with the underlying needs of the consumer. (5 minutes, Chapter Objective 1-4, AACSB: Reflective Thinking) 1-12. What are the major differences between the positivist and interpretivist paradigms in consumer research?

A positivist approach to consumer behavior emphasizes that human reason is supreme and that there is a single, objective through that science can discover. This stresses functionality, technology and rationality. Interpretivism questions the assumptions of positivism. Interpretivist stress the importance of subjective experiences, and that meaning is in the mind of the individual. We develop meaning based on cultural, and there is no right or wrong answer. (5 minutes, Chapter Objective 1-7, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE Discuss 1-13. As robot companions become increasingly common, what are the ramifications for human relationship?

This question is one students should find most interesting. The impacts on human relationship are truly unknown at this point; however, one could speculate that such human-robot interatctions could lead to a decline in traditional human interactions, as humans become accustomed to new types of non-human relationships. Conversely, humanrobot relationships may have a positive impact on human relationships if humans come to realize potential emotional shortcomings of today’s robots. (5 minutes, Chapter Objectives 1-2 and 1-5, AACSB: Reflective Thinking) 1-14. What aspects of consumer behavior would interest a financial planner? A university administrator? A graphic arts designer? A social worker in a government agency? A nursing instructor?

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

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would attempt to influence consumers by using a different aspect of consumption, and these differences need to be discussed and analyzed. (7 minutes, Chapter Objectives 1-3 and 1-6, AACSB: Application of Knowledge and Reflective Thinking) 1-15. Critics of targeted marketing strategies argue that this practice is discriminatory and unfair, especially if such a strategy encourages a group of people to buy a product that may be injurious to them or that they cannot afford. For example, community leaders in largely minority neighborhoods have staged protests against billboards promoting beer or cigarettes in these areas. However, the Association of National Advertisers argues that banning targeted marketing constitutes censorship and thus is a violation of the First Amendment. What are your views regarding this issue?

It is important to guide discussion to the legitimate interests on both sides. In this situation, however, the discussion should also examine the legitimacy of each side’s basic point. For what groups should target marketing not be allowed? On the other hand, under what specific circumstances should target marketing be allowed? Is the argument that target marketing unduly influences those who cannot resist its appeal reasonable? Is the counterargument that banishing target marketing amounts to censorship and is unconstitutional equally specious? Discussion should initially focus on the validity of each argument and then evolve toward a compromise that will protect target-marketing efforts while recognizing the needs of society. (5 minutes, Chapter Objective 1-2, AACSB: Ethical Understanding and Reasoning) 1-16. The chapter discussed a study that compared and contrasted people who lead “happy” lives versus those with “meaningful” lives. How does this distinction relate to the way you decide to spend your time and money? How does it relate to consumer behavior more generally?

Students should be able to differentiate between a want and a need. The discussion should identify how meaningfulness relates to activities that express personality and impact others in a positive way. Discussion should identify those who pursue happiness over meaningfulness as being takers rather than givers, and that they are more likely to think in the present instead of the past or future. Those who pursue meaningfulness would indicate the opposite. Worry, stress, and anxiety might also be associated with those who pursue happiness. (5 minutes, Chapter Objective 1-4, AACSB: Reflective thinking and application of knowledge) 1-17. A book bemoans the new wave of consumer-generated content, labeling it “the cult of the amateur.” It compares the social networking phenomenon to the old story about the monkeys: If you put an infinite number of monkeys in a room with an infinite number of typewriters, eventually they will (by hitting keys randomly) reproduce all the major works of literature. In other words, the large majority of user-generated content is at about the same level, and the future of professionally produced, quality work is in doubt. Do you agree or disagree with this assertion?

Students who are members of a social networking community or those who actively blog, might strongly defend the practice and might be offended by the monkey reference. Even .

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though they might agree that there are many sites with ramblings, rants and raves, they might also point out serious sites where user-generated content is thought provoking.

They might also mention instances where blogs check facts when the traditional media fails to do so. An example of this was a blogger proving that documents used by CBS News to discredit President Bush were forgeries.

Some students might also mention that not all “professionally produced” work can be labeled as “quality” work. Either students or the instructor could provide examples. It might also be beneficial to briefly discuss what “quality” means, who judges quality, and if this is a classic bias against the “new” by the older generation who prefers the traditional. (7 minutes, Chapter Objective 1-5, AACSB: Analytic Thinking) 1-18. A few years ago a publicity campaign for a late-night cartoon show backfired when it aroused fears of a terrorist attack and temporarily shut down the city of Boston. The effort consisted of one-foot-tall blinking electronic signs with hanging wires and batteries that marketers used to promote the Cartoon Network TV show Aqua Teen Hunger Force (a surreal series about a talking milkshake, a box of fries, and a meatball). The signs were placed on bridges and in other high-profile spots in several US cities. Most depicted a boxy, cartoon character giving passersby the finger. The bomb squads and other police personnel required to investigate the mysterious boxes cost the city of Boston more than $500,000— and a lot of frayed nerves. Is there a line between attention-getting pubicity stunts and activities that should be illegal or forbidden?

This question should generate quite a discussion among students as they debate the limits they believe to be acceptable in gaining attention. The question becomes one of the greater good – Is it enough for a company to do whatever it can to promote a product, OR is there a greater good to consider, in this case the unfortunate frayed nerves of a city.

(5 minutes, Chapter Objective 1-7, AACSB: Reflective Thinking) Apply 1-19. Talk to car owners and probe to see what (if any) relationships they have with their vehicles. Do these feelings correspond to the types of consumer/product attachments we discussed in this chapter? How are these relationships acted on? (Hint: see if any of the respondents give their cars a nickname, or if they “decorate” them with personal items.)

To give you some additional insight, check out a YouTube video called I Love My Car! that originally aired on the TV show My Strange Addiction.

The types of relationships referred to in the text are the following: • • • •

Self-concept attachment: The product helps to establish the user’s identity.

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

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

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

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Student reports should attempt to classify their findings based on these relationships.

They should also attempt to show how the consumption patterns that they engage in with their cars reflect such relationships. (5 minutes, Chapter Objectives 1-1 and 1-2, AACSB: Analytic Thinking and Reflective Thinking) 1-20. The specific way we choose to satisfy a need depends on our unique history, learning experiences, and cultural environment. For example, two classmates may feel their stomachs rumble during a lunchtime lecture. If neither person has eaten since the night before, the strength of their respective needs (hunger) would be about the same. However, the ways each person goes about satisfying his need might be quite different. Conduct this exercise with classmates: “As you probably know, a prisoner who is sentenced to die traditionally gets to choose his or her ‘last meal’. If you had to do this (let’s hope not), describe your last meal in detail.” Compare the responses you get, especially among people from different ethnic or cultural backgrounds. What similitatires and differences emerge?

Student reports should attempt to classify their findings based on these relationships. They should also attempt to show choices vary by cultural background. (5 minutes, Chapter Objectives 1-1 and 1-2, AACSB: Analytic Thinking and Reflective Thinking) MyLab 1-21. List the three stages in the consumption process. Describe the issues that you considered in each of these stages when you made a recent important purchase.

The three stages of the consumption process are: 1. Prepurchase, 2. Purchase, 3.

Postpurchase. Individual student responses will vary. (15 Minutes, Chapter Objective 1-1, AACSB: Reflective Thinking) 1-22. This chapter states that people play different roles and that their consumption behaviors may differ depending on the particular role they are playing. State whether you agree or disagree with this statement, giving examples from your personal life. Try to construct a “stage set” for a role you play, specifying the props, costumes, and script that you use to play a role (e.g. job interviewee, conscientious student, party animal).

Role theory takes the view that much of consumer behavior resembles actions in a play.

Consumers have roles and they may alter their consumption decisions depending upon the role being played at the time. (20 Minutes, Chapter Objective 4, AACSB: Reflective Thinking)

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CASE STUDY TEACHING NOTES Hey, Alexa -- What is Consumer Behavior?

Summary of Case Amazon’s smart speaker Alexa becomes a factor in consumer decision making through its product recommendation capability. As the use of Alexa and similar products becomes more pervasive, compatibility with these systems’ algorithms may become more important than brand positioning.

Suggestions for Presentation It is suggested that this case be presented with the content related to technology and consumer behavior in the chapter (“The Global “Always-On” Consumer”).

Suggested Answers for Discussion Questions CS 1-1. Choose two of your favorite brands and devise an idea for an Alexa “skill” that consumers could find useful. How would these skills help sell more of the brands’ products and/or increase customer loyalty?

Many brands could be targets for Alexa skills that provide ideas for uses of the brand’s products or help customers solve problems the brands’ products are designed to address. Examples: Nike (exercise routines), Miracle Grow (gardening tips), Axe (grooming tips). The skills could increase sales by increasing consumer satisfaction and/or increasing usage through suggestions of additional use situations. (10 - 12 minutes, Chapter Objectives 1-3 and 1-5, AACSB: Reflective Thinking) CS 1-2. How can brands remain relevant in the Age of Alexa? What strategies should brand managers employ to continue to influence consumer purchase decisions if consumers become more reliant on AI assistants?

Brands will need a deep understanding of the algorithms used by Alexa and similar tools for making product recommendations. With that knowledge, a brand can highlight key differentiating features in product descriptions. Advertising may become more focused on function than image Brands may still be able to position based on image and less functional attributes, but they will have to try to reach consumers before they are at the point of asking Alexa for a recommendation. Some students may not be familiar with the term “positioning strategy,” discussed in Chapter 3: The use of elements of the marketing mix (i.e., product design, price, distribution, and marketing communications) to influence the consumer’s interpretation of its meaning in the marketplace relative to its competitors. (10 - 12 minutes, Chapter Objective 1-5, AACSB: Analytical Thinking) CS 1-3. What kinds of products or brands will most likely be either negatively or positively affected by an increased use of AI assistants? Explain your answer.

Products that are currently sold based on imagery rather than functionality are the most vulnerable. Products for which consumers do not do extensive research before purchasing would more likely benefit from decisions made by Alexa algorithms. However, .

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some consumers will look to Alexa for advice on even more expensive, shopping-oriented products. (10-12 minutes, Chapter Objectives 1-4 & 1-5, AACSB: Reflective Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students about their involvement with social media sites and/or blogs. Ask them to explain why they are using them. What benefits do they derive from them? Who are the target audiences for their information? Have them explain their concerns about privacy, if any.

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

(7 minutes, Chapter Objective 1-5, AACSB: Reflective Thinking)

2.

This assignment can really be fun for the class and the presenter. Have a student wear or bring to class a recent clothes purchase. Have them explain how his or her purchase decision was influenced by different economic, social, cultural, and/or psychological variables.

The individual responses to this activity will be as varied as the personalities of the students in your class, but it is a good opportunity to remind students about how consumers often consume products because of what they mean, not because of what they do. This assignment can also work well as a collage, where students use images of products to tell rest of the class about them (and may include products they currently use or aspire to use in the future). This project can also lead to the discussion of the connection of the products to the student’s selfconcept/identity and provide the student with the opportunity to explore the economic, social, cultural and/or psychological variables that make the product desirable. (5 minutes, Chapter Objective 1-2, AACSB: Reflective Thinking)

3.

This activity can be done as an extension to or independent of assignment number 2.

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

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

You can give students the opportunity to make the connection between group influences and marketers’ attempts to segment their target audiences. You may also direct students .

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to consider the role of popular culture in their clothing choices. This activity provides an opportunity remind students about the concept of economics of information, and to ask them how advertising and/or product placements contributed to their senses of style. (5 minutes, Chapter Objectives 1-2 and 1-3, AACSB: Reflective Thinking and Analytic Skills) 4.

Assign students to teams to identify at least three instances where consumer social media has had an impact on the organization and/or popular culture. Examples may include such things as consumer tweets to a perceived unpopular decision by a business (for example photoshopping of models to make them appear ‘perfect’) or citizen social media blowback from perceived injustices by government (for example the ongoing immigration debates).

This activity provides students with the opportunity to recognize that just as marketers adapt to changing consumer needs, consumers now weild the power to influence not only marketers but governments and popular culture. (5 minutes, Chapter Objective 1-3, AACSB: Reflective Thinking)

5.

Have students identify examples of consumer-product relationships in society or in their own lives. The text identifies four specific types: self-concept attachment, nostalgic attachment, interdependence, and love. Have students come up with an example of each of these.

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

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

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

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

This project will help students differentiate between the types and relate each to their personal experiences. (5 minutes, Chapter Objective 1-2, AACSB: Reflective Thinking)

6.

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

This activity asks students to reflect on their personal experiences with the internet and how those experiences affected offline consumption activities. It is a good opportunity to remind students about the availability of niche products, virtual communities, and consumer recommendations. It may also provide an opportunity to ask students about how their online consumption activities are tracked/monitored by marketers, and what value they receive in exchange for the loss of privacy. (10 minutes, Chapter Objective 1-5, AACSB: Reflective Thinking)

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Group Projects 1.

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

The project gives students the opportunity to see whether preferences differ across demographic variables that marketers use to segment customers. The responses will vary depending on the product and the students. You can also ask students to consider how individual lifestyles affect the attributes of interest, which may help explain similarities across ethnic and age groups.

Students are likely to think about the media they will use to appeal to different subgroups Encourage them to think retail distribution, the messages they will use to communicate with their target audiences, the price, and the characteristics/features of the product they will use to appeal to the different subgroups. This will demonstrate how knowledge of consumer needs and wants relates to market strategy. (15-20 minutes, Chapter Objective 1-2, AACSB: Application of Knowledge and Communication Abilities)

2.

Have groups of students find an example of a recent product, service, or program that was a failure. Fortune, U.S.A. Today, the Wall Street Journal, Forbes or some other marketing publications are excellent sources. Have students explain to the class how knowledge of consumer behavior, or the lack of it, could have contributed to the success or failure of the effort.

Similar to #2, the responses and reasons for failure will vary. The project should reinforce the idea that marketers need to have a thorough understanding of consumer behavior of their target audiences to understand how to meet their needs and wants. It can be related to the question of whether marketers create needs. Look for students to “diagnose” the reasons for failure in a way that goes beyond the surface clues in the article. It may be a good opportunity for students to explore other sources at the same time to look for additional clues (e.g. Census data, economic indicators, Lifestyle Analyst, profiles of competitors, etc.). (15-20 minutes, Chapter Objective 1-2, AACSB: Application of Knowledge)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.rockstargames.com. Click on the link for “games.” Select three different video games marketed by this company. Discuss both sides of an ethical debate for each.

This activity provides students with an opportunity to think not only think about what they .

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consider right and wrong, but also to analyze the issue from the opposite perspective.

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

(20 minutes, Chapter Objective 1-3, AACSB: Ethical Understanding and Reasoning Abilities) 2.

Go to www.aarp.org. The American Association of Retired Persons is one of the largest lobbying and citizen action groups going today. Projections indicate that, as our nation ages, this organization will only get larger and more influential. After visiting this website, list five ways the organization is trying to influence corporate attitudes toward the older consuming public. What type of networks is the organization trying to build?

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

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

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

3.

Visit www.alesyabags.com and identify the factors used to segment the company’s target audience. How does the company use social media to engage its target audience?

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

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

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

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Chapter 2: CONSUMER WELL-BEING

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 2-1. Ethical business is good business.

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

2-3. Consumer behavior impacts directly on major public policy issues that confront our society.

2-4. Consumer behavior can be harmful to individuals and to society.

CHAPTER SUMMARY Ethical business is good business.

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

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

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

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

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

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

Consumer behavior can be harmful to individuals and to society.

Although textbooks often paint a picture of the consumer as a rational, informed decision- .

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maker, in reality many consumer activities are harmful to individuals or to society. The “dark side” of consumer behavior includes terrorism, addiction, the use of people as products (consumed consumers), and theft or vandalism (anticonsumption).

CHAPTER OUTLINE I. Business Ethics and Consumer Rights Business ethics are rules of conduct that guide actions in the marketplace—the standards against which most people in a culture judge what is right and what is wrong, good, or bad. a. There are various universal values and many culture-specific ones (which influence whether business practices like bribery are acceptable). b. Some marketers violate consumer trust (using illegal mislabels on packages or using bait-and-switch selling). c. Some marketers engage in practices that are legal but have detrimental effects on society.

Use Chapter Objective 1 Here Use Key Terms ‘Business Ethics’ and ‘Consumerspace’ Here Use Review Question 2-1 Here Use Consumer Behavior Challenge 2-9 and 2-10 Here A. Needs and Wants: Do Marketers Manipulate Consumers?

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

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

2. Is Marketing Necessary? a. Products are designed to meet existing needs; advertising helps communicate their availability. b. The economics of information perspective suggests advertising provides an important source of consumer information which consumers are willing to accept because it reduces the economic cost associated with searching for products.

3. Do Marketers Promise Miracles? a. Advertisers do not know enough about people to manipulate them. b. The failure rate for new products ranges from 40 to 80 percent.

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

Marketplace sentiments occur when enough people band together to express negative sentiments through activist organizations.

Use Key Term ‘Economics of Information’ Here Use Review Questions 2-2 and 2-3 Here Use Consumer Behavior Challenge 2-11 Here Use Chapter Objective 2 Here B. Market Regulations 1. Several federal agencies oversee consumer-related activities in the U.S. These include the Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, the Securities and Exchange Commission, and the Environmental Protection Agency. Table 2.1 presents consumer legislation that is designed to protect consumers and Table 2.2 lists major U.S. regulatory agencies.

2. Corrective advertising refers to the use of advertising by a company to inform consumers of messages it previously published that were wrong or misleading.

C. Consumerism 1. Adbusters is a nonprofit organization that discourages rampant commercialism and advocates for social activism. These organizations use culture jamming, a strategy aimed to disrupt efforts by the corporate world to dominate our cultural landscape.

2. John F. Kennedy declared a “Declaration of Consumer Rights” in 1962. These include the right to safety, the right to be informed, the right to redress, and the right to choice.

3. The publication of books such as Rachel Carson’s Silent Spring in 1962, which attached the irresponsible use of pesticides, and Ralph Nader’s Unsafe at Any Speed in 1965, prompted these movements.

4. Robin Thicke’s controversial Blurred Lines music video was condemned for supposedly encouraging rape.

Use Key Terms ‘Corrective Advertising,’ ‘Cultural Jamming,’ ‘Social Marketing,’ and ‘Corporate Social Responsibility (CRS)’ Here Use Review Question 2-4 Here D. Corporate Social Responsibility (CSR) Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving. Many firms today try to integrate corporate social responsibility (CSR) into their business models. CSR describes processes that encourage the organization to make a positive impact on the various stakeholders in its .

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community. Cause marketing is a popular strategy that aligns a company or brand with a cause to generate business and societal benefits.

E. Transformative Consumer Research Some consumer researchers are not only seeking to study consumer responses but to rectify what they see as pressing social problems in the marketplace. This is known as participatory action research (PAR) or Transformative Consumer Research (TCR).

Use Key Terms ‘Transformative Consumer Research (TCR),’ ‘Social Marketing,’ and ‘Cause Marketing’ Here Use Review Questions 2-5 and 2-6 Here Use Consumer Behavior Challenge 2-12 Here F. Social Marketing 1. Social marketing strategies use the techniques that marketers normally employ to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving.

2. Cause Marketing is a strategy that aligns a company or brand with a cause to generate business and societal benefits.

III.

Major Policy Issues Relevant to Consumer Behavior A. Data Privacy and Identity Theft 1. One of the biggest issues marketers face relates to how much they can or should know about their customers. Technologies record much of our activities including our location if we carry a smart phone with GPS. Our digital actions may even have financial value because of an industry called real-time bidding, an electronic trading system that sells ad space on the Web pages people click on the moment they visit.

2. Identity theft occurs when someone steals your personal information and uses it without your permission. It is the most common consumer complaint according to the FTC. 3. Phishing occurs when people receive fraudulent emails that ask them to supply account information.

4. Consumers are also suspect to botnets that hijack computers without a trace.

5. Locational privacy is a related issue as GPS tracking technology identifies and records consumer locations.

B. Market Access For many, market access is limited due to physical, mental, economic, or social barriers.

1. Disabilities affect access to stores both physical and online.

2. Food deserts are Census tracts where 33% or 500 people live more than a mile from a grocery store in an urban area or more than 10 miles away in a rural area. .

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3. Media literacy refers to a consumer’s ability to access, analyze, evaluate, and communicate information in a variety of forms, including print and non-print messages. Functional literacy refers to the ability to read sufficiently to carry out everyday tasks.

Use Key Terms ‘Real-Time Bidding,’ ‘Identity Theft,’ ‘Phishing,’ ‘Botnets,’ ‘Location Privacy,’ and ‘Food Desert’ Here Use Review Question 2-7 Here Use Consumer Behavior Challenges 2-13, 2-14, and 2-17 Here C. Sustainability and Environmental Stewardship 1. Conscientious consumerism can be defined as the consumer’s focus on personal health merged with a growing interest in global health.

2. Sustainability is not just about “do-gooder” efforts that reduce a company’s carbon footprint; it also benefits companies financially. A triple bottom-line orientation refers to business strategies that strive to maximize return in three ways: a. Financial b. Social c. Environmental 3. Cradle to cradle means that the organization aims for its products to be made from natural materials that are fully reusable or recyclable so that the company actually uses zero resources to make it.

4. Conscientious consumerism means that consumers are paying attention to sustainability efforts by companies.

Use Key Terms ‘Conscientious Consumerism,’ and ‘Triple Bottom-Line Orientation’ Here Use Consumer Behavior Challenges 2-15 and 2-18 Here D. Green Marketing and Greenwashing 1. As a response to consumer efforts, many firms have chosen to protect or enhance the natural environment as they go about their business activities.

This practice is known as green marketing.

2. Even though consumers largely support green products, many people don’t actually buy green. This is in part due to the higher price of green products. It is also due to distrust because of greenwashing.

Greenwashing occurs when companies make false or exaggerated claims about how environmentally friendly their products are.

Use Key Terms ‘Green Marketing,’ ‘Greenwashing,’ and ‘LOHAS’ Here Use Review Question 2-8 Here 3. Marketers point to a segment of consumers they call LOHAS – an acronym for “lifestyles of health and sustainability.” .

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IV.

The Dark Side of Consumer Behavior A. Consumer Terrorism Disruptions to our financial, electronic, and supply networks are possible through attacks such as bioterrorism and cyberterrorism.

Use Key Terms ‘Bioterrorism,’ and ‘Cyberterrorism,’ Here B. Addictive Consumption Consumer addiction is a physiological or psychological dependency on products or services. Social media addiction can be compared to a chemical dependency. Another issue with technology in cyberbullying, which is the willful and repeated harm inflicted through the use of computer, cell phones, and other electronic devices. Phantom Vibration Syndrome describes the tendency to habitually reach for your cell phone because you feel it vibrating, even if it’s off.

1. Compulsive consumption refers to repetitive and often excessive shopping performed to relieve tension or anxiety. Three common elements characterize negative or destructive consumer behaviors: 1) the behavior is not by choice, 2) the gratification of the behavior is short-lived, and 3) the person experiences strong feelings of regret or guilt.

C. Consumed consumers are people who are used or exploited for commercial gain. Examples include prostitutes and organ, blood, and hair donors.

D. Illegal Acquisition and Product Use 1. Consumer Theft and Fraud Analysts estimate that the cost of crimes that consumers commit against business totals more than $40 billion per year. Shrinkage is one such crime that refers to inventory and cash losses caused by shoplifting and employee theft. Counterfeiting is where companies or individuals sell fake versions of real products to customers.

2. Anticonsumption Anticonsumption ranges from relatively mild acts like spray-painting graffiti on buildings to serious incidences of product tampering.

Use Key Terms ‘Consumer Addiction,’ ‘Social Media Addiction,’ ‘Phantom Vibration Syndrome,’ ‘Consumed Consumers,’ ‘Shrinkage,’ ‘Counterfeiting,’ and ‘Anticonsumption,’ Here Use Consumer Behavior Challenge 2-16 Here

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

The Tangled Web Gripe sites enable consumers to complain about companies online.

2.

Marketing Pitfall Slacktivism supports the idea that there are too many small and meaningless expressions of support for important causes, due to overexposure via technology.

3.

Marketing Pitfall At both ends of the income spectrum consumers are seeking healthier food. This is accompanied by a growing demand for superfoods.

REVIEW 2-1.

What are business ethics, and why is this an important topic?

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

However, the notions of right and wrong differ among people, organizations, and cultures.

This is an important distinction as we learn to work with those of other cultures. (2 minutes, Chapter Objective 2-1, AACSB: Reflective Thinking)

2-2.

The economics of information perspective argues that advertising is important. Why? This view emphasizes the economic cost of the time spent searching for products.

Accordingly, advertising is a service for which consumers are willing to pay, because the information it provides reduces search time. (2 minutes, Chapter Objective 2-1, AACSB: Reflective Thinking)

2-3.

State two important criticisms of marketing and provide the pros and cons for each.

Some feel that marketers contribute to the moral breakdown of society when they promote hedonistic pleasure and encourage the pursuit of humanism at the expense of spirituality and the environment. The marketing system creates demand that only its products can satisfy. The argument against this thought is that the need is already there, and marketers simply recommend ways to satisfy it. Marketing creates awareness that the need exist; it does not create the need.

Another criticism of marketing is that it manipulates the masses. This includes online communications. Markets arbitrarily link products to desirable social attributes to foster a materialistic society. Marketers focus on the irrational value of the goods they symbolize.

However, some feel that products meet existing needs, and marketing activities only help to communicate the availability of the good or service. The economic cost of time we would .

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need search for products is diminished. (5 minutes, Chapter Objective 2-1, AACSB: Reflective Thinking) 2-4.

Give two examples of important legislation that relate to U.S. consumers.

The Pure Food and Drug Act in 1906, the Federal Meat Inspection Act in 1907, the Foreign Corrupt Practices Act in 1977 and the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act are examples given in the text. (2 minutes, Chapter Objective 22, AACSB: Application of Knowledge)

2-5.

Define social marketing, and give an example of this technique.

Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving. (1.5 minutes, Chapter Objective 2-2, AACSB: Application of Knowledge)

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What is the primary difference between transformative consumer research and other kinds of consumer research?

Transformative consumer research promotes research that includes the goal of helping people or brings about social change. This idea views consumers as collaborators who work to realize change, rather than as an issue that needs to be research. Other kinds of research promote research as a way to study an issue, not to promote change. (2 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking)

2-7. Why is market access an important aspect of consumer well-being? What are some important reasons why consumers can experience limited market access?

Market access is the consumer’s ability to find and purchase goods and services.

Access might be limited because of physical, mental, economic, or social barriers.

There are 11 million U.S. adults that have conditions that m make it difficult for them to leave home to shop. This can be minimized through the use of technology and other resources. (2 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking) 2-8.

What is greenwashing, and why is it a problem for marketers?

Greenwashing is the promotion of environmentally friendly products, but often, the claims are false or exaggerated. Studies show that almost one-fourth of U.S. consumers feel they have no way of knowing how true a claim might be, and one report shows that 95 percent of consumer companies that market products as “green” make misleading or inaccurate claims. (2 minutes, Chapter Objective 2-3, AACSB: Reflective Thinking)

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CONSUMER BEHAVIOR CHALLENGE Discuss 2-9. Internet addiction has been a big headache in South Korea for several years, where 90 percent of homes connect to cheap, high-speed broadband. Many young Koreans’ social lives revolve around the “PC bang,” dimly lit internet parlors that sit on practically every street corner. A government study estimates that up to 30 percent of South Koreans younger than 18 are at risk of internet addiction. Many already exhibit signs of actual addiction, including an inability to stop themselves from using computers, rising levels of tolerance that drive them to seek everlonger sessions online, and withdrawal symptoms such as anger and craving when they can’t log on. Some users have literally dropped dead from exhaustion after playing online games for days on end. How big a problem is internet addiction here in the United States? Should parents and educators actively police how much time kids spend online, or if they do so are they preventing young people from interacting with their peers in the ways they want?

Students will have mixed views about this topic; although, many should be able to relate to the idea of internet addiction. Discussions should include not only the physical and/or psychological potential dangers, but also on the ethics associated with policing others. (20 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking; Ethical Understanding and Reasoning Abilities) 2-10. Should scientists who study consumer behavior remain impartial, or is it appropriate for them to become involved in the topics they research like those who adhere to the transformative consumer research perspective?

Students will have varied opinions on this topic. Students should be able to identify and discuss transformative consumer research and its goals of helping bring about social change. Students should be able to compare this concept to more traditional types of research. Discussion should relate to corporate social marketing and indicate how research has furthered this process. (20 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking) 2-11. Today many consumers pursue a ‘decluttering lifestyle.’ Should marketers encourage this trend toward simplicity even though it stresses buying less stuff that marketers sell? What marketing opportunities do you foresee if this trend spreads?

Keep in mind that the goal of marketing should not simply revolve around trying to sell consumers ‘more stuff.’ Marketing is about providing consumers with what they need and want, while considering the larger societal needs. Decluttering fits well within the framework of marketing. Marketing opportunities include creating and providing the products/services that fit this new paradigm. (10 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking) 2-12. Because of higher competition and market saturation, marketers in industrialized countries try to develop third-world markets. Asian consumers alone spend $90 billion a year on cigarettes, and U.S. tobacco manufacturers push relentlessly into these markets. We find cigarette advertising, which often depicts glamorous Western models and settings, just about .

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everywhere – on billboards, buses, storefronts, and clothing – and tobacco companies sponsor many major sports and cultural events. Some companies even hand out cigarettes and gifts in amusement areas, often to preteens. Should governments allow these practices, even if the products may be harmful to their citizens or divert money that poor people should spend on essentials? If you were a trade or health official in a third-world country, what guidelines, if any, might you suggest to regulate the import of luxury goods from advanced economies?

Students will have a variety of views on this topic. Student should indicate regulations and laws in the U.S. that affect a company’s ability to market, and indicate how marketing is different in developing or third world nations. Students should discuss analyst prediction for growth in Europe and the U.S. as well as the expected huge growth in China and other Asian and developing countries. This response should also explain provenance, and the willingness to pay more for an item when consumers know exactly where it came from.

Curation, the process of being an expert on a product should also be discussed. (20 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking) 2-13. The chapter discusses the practice of serial wardrobing, where people return an outfit after they wear it for a special occasion such as a formal. What do you think of this practice? Is it okay to use an expensive product once and then get your money back?

Students should explain how serial ward robing constitutes consumer theft and fraud.

Students should identify serial wardrobers as those who buy an outfit, wear it once, and return it. Students should also indicate other types of wardrobing fraud such as changing price, exchanging products for higher priced ones, or using fake or old receipts to return a product. The retail industry loses about $16 billion a year to these and other types of fraud.

(20 minutes, Chapter Objective 2-4, AACSB: Reflective Thinking) 2-14. A case involving Wendy’s fast-food chain made national headlines when a woman claimed she had found a finger in her bowl of chili. The restaurants became the butt of jokes (some said they served nail clippers with their food instead of forks), and sales dropped dramatically at the company’s franchises. This forced layoffs and reduced hours for many employees – until the woman was arrested for fraud. Consumers commonly file lawsuits against companies to claim damages if a product or service didn’t work as expected. In some cases, the defendant just settles the suit to make it go away because it costs more to mount a defense than to just pay damages. Are there too many frivolous lawsuits? Does our justice system adequately meet the needs of both consumers and companies in terms of how it awards damages?

Student responses will vary but the instructor can use this discussion to address major legislation related to consumer behavior. Legislation would include a discussion on the Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, the Securities and Exchange Commission, and the EPA. (20 minutes, Chapter Objective 2-3, AACSB: Reflective Thinking) 2-15. Nonprofit organizations routinely rely on generous corporate donations, and it is common to name facilities after benefactors. The Nationwide Children’s Hospital in Ohio is no exception; its name recognizes the insurance company’s $50 million donation. Now the hospital is adding the Abercrombie & Fitch Emergency Department and Trauma Center and there is the Limited .

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Too & Justice Main Lobby. The Campaign for a Commercial-Free Childhood opposes this partnership. The group’s director commented, “Abercrombie & Fitch is really among the worst of corporate predators. A company with such cynical disregard for children’s well-being shouldn’t be able to claim the mantle of healing. . . . And, personally, I find it very concerning that they named their hospital after an insurance company.” What do you think? Is this over the line, or does it matter where the money comes from so long as the result is beneficial?

Students will vary in their response to this challenge as both sides present important points.

Abercrombie recognizes the positive publicity, which will be generated from such a donation, and charities need funding. At the same time, the center may feel that it is selling out to accept money from an organization, which behaves at times as though it lacks concern for children.

(5 minutes, Chapter Objective 2-1, AACSB: Ethical Understanding and Reasoning Abilities) 2-16. From time to time advertisers use dark humor to get their messages across, as when a lonely calorie, repairman, or robot considers suicide. Or, an ad may imply that a shoppers are “mentally ill” if they pay retail prices. Are these appeals a legitimate way to communicate a message, and if so under what circumstances?

Such appeals are meant to be humorous rather than fear or guilt based. Humor appeals are legitimate. The issue is whether this form of humor is in good taste and a good choice for the brand in question. (3 minutes, Chapter Objective 2-1, AACSB: Ethical Understanding and Reasoning Abilities) Apply 2-17. Will consumers trade lower prices for less privacy? Car owners now can let insurance companies monitor their driving using a new technology in exchange for lower rates.

Customers who sign up for Progressive’s TripSense program get a device the size of a Tic Tac box to plug into their cars. The device will track speed and how many miles are driven at what times of day. Every few months, customers unplug the device from the car, plug it into a computer, download the data, and send them to the company. Depending on results, discounts will range from 5 to 25 percent. In Great Britain, a major insurer is testing a program called Pay as You Drive. Volunteers will get a device the size of a Palm computer installed in their cars. The gadget will use global positioning satellite technology to track where the car goes, constantly sending information back to the insurance company. Cars that spend more time in safer areas will qualify for bigger discounts. Of course, the potential downside to these efforts is that the insurance companies may be able to collect data on where you have driven, how long you stayed in one location, and so on. Conduct a poll of ten drivers of various ages where you describe these programs and ask respondents if they would participate to receive a discount on their insurance premiums. What reasons do they give pro and con?

This question of exchanging privacy for lower prices (or convenience, or any of a number of other benefits) can be applied in many contexts these days, particularly in e-commerce. As the student reports are discussed, the instructor can relate this issue to various topics. These include value (what benefits are people gaining and what cost are they “paying”?), ethics (what are the implications of companies having such a depth of information on consumers?), public policy (should there be attempts to regulate such business activities?), and demographic segmentation. Probe students as to what types of trade-offs they have made .

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(providing personal, credit card, bank account, and other information in order to conduct business online) (10 minutes, Chapter Objective 2-3, AACSB: Ethical Understanding and Reasoning Abilities) 2-18. Many college students “share” music by downloading clips. Interview at least five people who have downloaded at least one song or movie without paying for it. Do they feel they are stealing? What explanations do they offer for this behavior? Try to identify any common themes because of these interviews. If you were devising an ad campaign to discourage free downloading, how might you use what you have learned to create a convincing message?

Obviously, ethical issues of right and wrong should emerge here. These issues should reflect the ethical behavior of the consumer (is it wrong to download for free?), as well as that of the corporations (are they ripping customers off by charging too much?). Reports should also revolve around “dark side” issues. Specifically, is this activity stealing? Is it on the same level as shoplifting? Certainly, the explanations given will fall into the category of justification. Thus, from the marketer’s perspective, the suggested ad campaign should be designed in a way to persuade consumers that their justified behavior is wrong. (5-10 minutes, Chapter Objective 2-2, AACSB: Ethical Understanding and Reasoning Abilities) MyLab 2-19. A hot button topic right now involves efforts to curb child obesity by encouraging advertisers to limit the messages they send to kids about foods that are high in sodium, saturated fat, and added sugars. Under new federal rules, even the scoreboards in high school gyms will have to advertise only healthy foods. Several large cities including New York City and Philadelphia have tried to prevent the sale of large sizes of sugary drinks to fight obesity.

Public health advocates hail these attempts, whereas others argue that they would transform the United States into a “Nanny State” that imposes on our freedom to choose to consume whatever we would like. Should city, state, and federal governments dictate what (legal) products people should consume, even when the population’s health is at stake?

Student responses will vary substantially. There are many practical as well as ethical issues that could be discussed covering everything from who decides what is ‘healthy’ to varying viewpoints on what constitutes ‘ethical action.’ (20 minutes, Chapter Objective 2-1, AACSB: Reflective Thinking; Ethical Understanding and Reasoning Abilities) 2-20. Companies in the United States spend billions of dollars to acquire and manage data on consumers such as credit and transaction histories. Well-off consumers obviously hold great attraction to marketers because they have greater buying potential. Today companies have the ability if they choose to offer a more attractive deal to higher-value customers to win their business. The flip side of this process is that potentially they can discriminate against low-income people who won’t qualify for lower prices. And in most cases companies don’t permit consumers to access their database to learn what they know about them. Is it fair to stratify consumers in this way so that some get access to more attractive options than others?

This question works well with Chapter Objective 2-2. The question should generate quite a lively discussion, as opinions will be markedly varied. Looking at this from a strict economic perspective, it makes perfect sense for companies to concentrate on those who can buy more .

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and pay more. However, from a social marketing perspective, even those that are disadvantaged in some manner (for example income) should have access to the same products. (20 minutes, Chapter Objective 2-2, AACSB: Reflective Thinking; Ethical Understanding and Reasoning Abilities)

CASE STUDY TEACHING NOTES Chapter 2 Case Study: Marketing Responsibility: Patagonia Redefine What It Means to Be Transparent and Authentic Summary of Case Marketing faces challenges and criticism on many fronts.

As identified in Chapter 2 questions directed at the marketing field include: • Does marketing create materialism? Does it lead to confusion between needs and wants?

• Is it ethical to market products that may have a negative impact on consumers’ health?

• Do marketers mislead consumers or perpetuate stereotypes with their marketing messages?

• Does marketing lead to an invasion of computer privacy?

• Do companies and brands misuse natural resources for products and packaging? Do they engage in greenwashing?

• Do companies take advantage of questionable labor practices in their quest to keep costs and prices down?

Patagonia is taking steps to change perceptions about the role of marketing by addressing issues regarding labor practices involved in the production of its products.

Suggestions for Presentation Many students will be familiar with and may be customers of Patagonia. Consider beginning the discussion by asking what Patagonia is known for. A poll could be taken to see how many were aware of its efforts in the area of fair labor practices. A concluding question could be asked regarding what other clothing companies with which students are familiar that are also known for their fair labor practices, noting that these efforts do not always rise to the top of consumers’ awareness. (Adidas is another well-known company that has been recognized for its fair labor practices.)i Suggested Discussion Questions CS 2-1. Do you believe that consumers consider a brand’s supply chain ethics when they purchase apparel? Do consumers bear any responsibility for the ways in which laborers in the apparel industry are treated?

Consumers have different priorities when making brand choices. For some consumers, supply chain ethics will be the most important factor; for others, it will not even be a consideration. Consumers in different generational groups may have different levels of emphasis on these factors (as noted in the case). Marketing research can help companies .

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understand what level of importance the target market(s) place on supply chain ethics.

Consumers “vote” for more ethical practices by purchasing products from companies placing a higher priority on an ethical approach. (10-12 minutes, Chapter Objectives 1 and 4, AACSB: Reflective Thinking) CS 2-2 Since Patagonia is a higher priced apparel offering, should the company simply move production back to the U.S.? Would you be willing to pay a premium for clothing made in the U.S. where laborers would be protected by U.S. laws? What other factors related to Corporate Social Responsibility should Patagonia consider when it makes the onshore/offshore decision?

There are ethical arguments on both sides of the offshoring decision. Lower labor costs allow Patagonia to keep product prices relatively lower, making the product available to some consumers who might decide a higher price is out of reach. By using labor in underdeveloped countries, the company is helping to improve the local economies and financial well-being of workers. While moving to the U.S., would increase the likelihood of fair labor practices, offshoring allows the company to encourage better labor practices in other countries with lax labor laws. (10-12 minutes, Chapter Objectives 1 and 3, AACSB: Ethical Understanding and Reasoning) CS 2-3 How could the efforts of companies like Patagonia affect CSR efforts in other companies in its industry or in related industries?

By fairly treating their workers in a particular country, Patagonia creates informal pressure among other local producers. If Patagonia gets awards and other recognition for their ethical practices, other companies will want the same recognition and may take steps to create a similar image for their company. Some companies will be challenged as a matter of principle to step up to a level of ethical conduct that matches a leader like Patagonia. (10-12 minutes, Chapter Objectives 1 and 2, AACSB: Analytical Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students explain what it means to be a green consumer. They could report on what they have done to be “green” and how their behaviors have changed. Have they tried to influence anybody else to go “green” and how?

The chapter introduces the idea of green marketing, but student perceptions of green consumers are likely to be based on outside experiences, including their own efforts to be more environmentally responsible, which will vary. Some students may view green consumers as the small subset of consumers who willingly make sacrifices to protect the environment. Others may characterize green consumers as idealistic tree-huggers.

Research indicates most consumers fall somewhere on a spectrum from green to brown based on their environmental values and their beliefs in their ability to make a difference.

The question about their attempts to influence others can be related to the idea of .

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consumption communities and group influences on consumption behavior. (5 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2.

Each group should locate an example of a company that is heavily involved in social or green marketing. Make a report on the activities of the company. Compare this company to a direct competitor that is not so extensively involved in such activities. What are the advantages/disadvantages that the social/green approach has over the other?

Student responses should reflect an understanding of what social or green marketing is.

Some students may confuse social marketing with marketing via social media, so it is important to identify differences between the two concepts. The comparison with the competitor should consider the way the company uses or does not use their social/green marketing efforts to position their offerings. If possible (it will depend on the company/industry), students should analyze how social/green marketing efforts relate to the company’s bottom line, consumer attitudes toward the company, and brand loyalty.

(20 minutes, Chapter Objective 2, AACSB: Analytic Skills)

ONLINE ASSIGNMENTS

Individual Assignments 1.

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

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

(15 minutes, Chapter Objective 2-3, AACSB: Analytic Skills and Reflective Thinking)

2.

Go to www.benjerry.com. Ben & Jerry’s Ice Cream is famous for a well-rounded mission statement and care and concern for the environment. What is their mission? What indications are there about the organization’s commitment to the environment? What values does the company try to express? How might this expression help the organization market products?

Ben & Jerry’s mission statement can be found under Values (follow the link here: https://www.benjerry.com/values). The company publishes a Social and Environmental .

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Chapter 2: Consumer Well-Being

Assessment Report each year (follow the link here: https://www.benjerry.com/aboutus/sear-reports). Students may relate the company’s values to the growing LOHAS segment.

(25 minutes, Chapter Objective 2-3, AACSB: Reflective Thinking) 3.

Go to www.wholefoods.com. Take some time to become familiar with the website.

Describe this company and the products that they offer. Select specific examples of products that seem to target the LOHAS values segment. Are the products that might appeal to values other than those described by LOHAS? LOHAS is an acronym for “lifestyles of health and sustainability.” Marketers are responding to the needs of this segment with eco-friendly products and programs. Students may observe Whole Foods seafood labeling initiative and their efforts to reduce seafood that is not sustainable. Students may become aware of wellness programs Whole Foods rolled out in select markets, which include nutrition programs, social dinners and partnerships with exercise facilities/yoga centers in exchange for a membership fee.

Students should also recognize that people might buy products that appeal to LOHAS for reasons other than health and sustainability.

(20 minutes, Chapter Objective 2-3, AACSB: Reflective Thinking)

Fair Labor Association, “Fair Labor Association Announces Accreditation of Three Social Compliance Programs,” (October 19, 2017), https://www.prnewswire.com/news-releases/fair-labor-association-announces-accreditation-ofthree-social-compliance-programs-300539982.html (accessed July 20, 2018). i

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Chapter 3: PERCEPTION

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 3-1. Products and commercial messages often appeal to our senses, but because of the profusion of these message we don’t notice most of them.

3-2. Perception is a three-stage process that translates raw stimuli into meaning.

3-3. The field of semiotics helps us to understand how marketers use symbols to create meaning.

CHAPTER SUMMARY Products and commercial messages often appeal to our senses, but because of the profusion of these messages we don’t notice most of them.

Marketing stimuli have important sensory qualities. We rely on colors, odors, sounds, tastes, and even the “feel” of products when we evaluate them. Not all sensations successfully make their way through the perceptual process. Many stimuli compete for our attention, and we don’t notice or accurately interpret the majority of them.

Perception is a three-stage process that translates raw stimuli into meaning.

Perception is the process by which physical sensations, such as sights, sounds, and smells, are selected, organized, and interpreted. The eventual interpretation of a stimulus allows it to be assigned meaning. A perceptual map is a widely used marketing tool that evaluates the relative standing of competing brands along relevant dimensions.

The field of semiotics helps us to understand how marketers use symbols to create meaning.

Marketers try to communicate with consumers by creating relationships between their products or services and desired attributes. A semiotic analysis involves the correspondence between stimuli and the meaning of signs. The intended meaning may be literal (e.g., an icon such as a street sign with a picture of children playing). Or it may be indexical if it relies on shared characteristics (e.g., the red in a stop sign means danger). Meaning also can be conveyed by a symbol in which an image is given meaning by convention or by agreement of members of a society (e.g., stop signs are octagonal, whereas yield signs are triangular). Marketer-created associations often take on lives of their own as consumers begin to believe that hype is, in fact, real. We call this condition hyperreality.

CHAPTER OUTLINE I.

Sensation Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers, skin) to basic stimuli such as light, color, sound, odor, and texture.

Perception is the process by which people select, organize, and interpret these sensations. .

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Use Chapter Objective 1 Here Use Key Terms ‘Sensation’ and ‘Perception’ Here Use Review Question 3-1 Here A. Sensory Marketing Sensory marketing occurs when companies think carefully about the impact of sensations on our product experiences.

1. Vision a. Marketers rely heavily on visual elements in advertising, store design, and packaging. They communicate meanings on the visual channel through a product’s color, size, and styling. b. Colors may even influence our emotions more directly. Evidence suggests that some colors (particularly red) create feelings of arousal and stimulate appetite, and others (such as blue) create more relaxing feelings. c. There are gender differences in color preferences. People associate darker colors with males and lighter colors with females. Women are drawn toward brighter tones and they are more sensitive to subtle shadings and patterns. d. Some color combinations come to be so strongly associated with a corporation that they become known as the company’s trade dress. e. A handful of firms produce color forecasts.

Use Key Terms ‘Sensory Marketing,’ ‘Trade Dress,’ and ‘Color Forecasts’ Here 2. Dollars and Scents a. Odors stir emotions or create a calming feeling. They invoke memories or relieve stress b. We process fragrance cues in the limbic system, the most primitive part of the brain and the place where we experience immediate emotions.

3. Sounds a. Music and other sounds affect people’s feelings and behaviors. b. Sound symbolism is the process by which the way a word sounds influences our assumptions about what it describes and attributes 4. Touch a. The natural user interface incorporates habitual human movements that we don’t have to learn. b. The endowment effect occurs when people imagine owning a particular object. c. Researchers are starting to identify the important role the haptic (touch) sense plays in consumer behavior. d. Kansei engineering is a philosophy that translates customers’ feelings into design elements.

5. Taste a. Taste is a huge driver behind the $46 billion Americans spend on food and beverages in a year. b. All foods are a combination of five basic tastes: sweetness, sourness, bitterness, saltiness, and umami (a savory taste). .

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Use Key Terms ‘Audio Watermark,’ ‘Natural User Interface,’ ‘Sound Symbolism,’ ‘Endowment Effect,’ ‘Haptic,’ ‘Kansei Engineering,’ and ‘Gastrophysics’ Here Use Review Question 3-2 Here Use Chapter Objective 2 Here B. Augmented and Virtual Reality Augmented reality (AR) refers to media that superimpose one or more digital layers of data, images, or video over a physical object.

Use Key Term ‘Augmented Reality’ Here Use Review Questions 3-3 and 3-9 Here Use Consumer Behavior Challenge 3-13 Here The imminent explosion of virtual reality (VR) technology in the consumer market also is driving the integration between physical sensations and digital information. Unlike AR that delivers a combination of both sensory experiences, VR provides a totally immersive experience that transports the user into an entirely separate 3D environment.

II.

The Stages of Perception Like computers, we undergo stages of information processing in which we input and store stimuli. Unlike computers, though, we do not passively process whatever information happens to be present.

The three stages of exposure, attention, and interpretation make up the process of perception.

Use Chapter Objective 3 Here

A. Stage 1: Exposure Exposure occurs when a stimulus comes within the range of someone’s sensory receptors. Consumers concentrate on some stimuli, are unaware of others, and even go out of their way to ignore some messages.

1. Sensory Thresholds a. Sensory threshold is the point at which the stimulus is strong enough to make a conscious impact in his or her awareness. b. Psychophysics focuses on how people integrate the physical environment into their personal, subjective worlds. c. Absolute threshold refers to the minimum amount of stimulation a person can detect on a given sensory channel. The sound a dog whistle emits is at too high a frequency for human ears to pick up, so this stimulus is beyond our auditory absolute threshold. d. Differential threshold refers to the ability of a sensory system to detect changes in or differences between two stimuli. e. The minimum difference we can detect between two stimuli is the just noticeable difference (j.n.d.) .

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The stronger the initial stimulus, the greater a change in the stimulus must be for us to notice it. This relationship is Weber’s Law.

Use Key Terms ‘Exposure,’ ‘Sensory Threshold’ ‘Psychophysics,’ ‘Absolute Threshold,’ ‘Differential Threshold,’ ‘Just Noticeable Difference (j.n.d.)’ and ‘ ‘Weber’s Law’ Here Use Review Question 3-4 Here Use Consumer Behavior Challenge 3-16 and 3-17 Here B. Subliminal Perception Marketers want to create messages above consumers’ thresholds so people will notice them. Some consumers believe that marketers design many advertising messages so they will be perceived unconsciously, or below the threshold of recognition.

Another word for threshold is limen, and we term stimuli that fall below the limen subliminal. Subliminal perception refers to a stimulus below the level of the consumer’s awareness.

Use Chapter Objective 4 Here Use Key Terms ‘Subliminal Perception’ and ‘Embeds’ Here Use Review Question 3-5 Here Use Consumer Behavior Challenge 3-11 Here C. Stage 2: Attention Attention refers to the extent to which processing activity is devoted to a particular stimulus. Consumers often experience sensory overload; we are exposed to far more information than we can process.

Use Key Terms ‘Attention,’ ‘Sensory Overload,’ ‘Media Snacker,’ ‘Eyeball Economy,’ and ‘Mindfulness’ Here Mindfulness is a movement that encourages followers to slow down, tune out distractions, and focus on what you’re feeling at the moment.

1. Multitasking a. A large proportion of teens report that they engage in multitasking, where they process information from more than one medium at a time as they alternate among their cell phones, TVs, and laptops. b. Today we consume three times as much information each day as people did in 1960. c. In the online world, advertisers keep innovating to get visitors to watch their messages. One of the most popular today is rich media—the use of animated gif files or video clips to grab viewers’ attention. .

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d. The process of perceptual selection means that people attend to only a small portion of the stimuli to which they are exposed.

Use Key Terms ‘Multitasking,’ ‘Rich Media,’ and ‘Perceptual Selection’ Here 2. Personal Selection Factors a. Perceptual vigilance means we are more likely to be aware of stimuli that relate to our current needs. b. The flip side of perceptual vigilance is perceptual defense. This means that we tend to see what we want to see—and we don’t see what we don’t want to see. c. Another factor is adaptation, which is the degree to which consumers continue to notice a stimulus over time. d. Several factors lead to adaptation: • Intensity—Less-intense stimuli (e.g., soft sounds or dim colors) habituate because they have less sensory impact.

• Discrimination—Simple stimuli habituate because they do not require attention to detail.

• Exposure—Frequently encountered stimuli habituate as the rate of exposure increases.

• Relevance—Stimuli that are irrelevant or unimportant habituate because they fail to attract attention Use Key Terms ‘Perceptual Vigilance,’ ‘Perceptual Defense,’ and ‘Adaptation’ Here Use Review Question 3-6 Here 3. Stimulus Selection Factors a. In general, we are more likely to notice stimuli that differ from others around them (Weber’s Law). A message creates contrast in several ways: • Size—The size of the stimulus itself in contrast to the competition helps to determine if it will command attention. Readership of a magazine ad increases in proportion to the size of the ad.

• Color—Color is a powerful way to draw attention to a product or to give it a distinct identity.

• Position – We stand a better chance of noticing stimuli that are in places where we’re more likely to look. That’s why the competition is so heated among suppliers to have their products displayed in stores at eye level.

• Novelty—Stimuli that appear in unexpected ways or places tend to grab our attention.

Use Key Terms ‘Contrast’ and ‘Golden Triangle’ Here Use Consumer Behavior Challenge 3-12, 3-14, 3-19 and 3-20 Here D. Interpretation Interpretation refers to the meanings we assign to sensory stimuli. Two people can see or hear the same event, but their interpretation of it can be as different as night and day, .

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Use Key Terms ‘Interpretation and ‘Schema’ Here Use Consumer Behavior Challenge 3-15 Here depending on what they had expected the stimulus to be. The meaning we assign to a stimulus depends on the schema, or set of beliefs, to which we assign it.

1. Interpretational Biases: The Eye of the Beholder Our brains tend to relate incoming sensations to others already in memory, based on some fundamental organizational principles.

These principles derive from Gestalt psychology. The German word Gestalt roughly means whole, pattern, or configuration; we summarize this term as “the whole is greater than the sum of its parts.” a. The Gestalt perspective provides several principles that relate to the way our brains organize stimuli: • The closure principle states that people tend to perceive an incomplete picture as complete.

• The similarity principle tells us that consumers tend to group together objects that share similar physical characteristics.

• The figure-ground principle states that one part of a stimulus will dominate (the figure), and other parts recede into the background (the ground).

Use Key Terms ‘Gestalt’ ‘Closure Principle,’ ‘Similarity Principle,’ and ‘Figure-Ground Principle’ Here Use Review Question 3-7 Here E. Semiotics: The Meaning of Meaning To help them understand how consumers interpret the meanings of symbols, some marketers turn to semiotics, a discipline that studies the correspondence between signs and symbols and their roles in how we assign meanings.

From a semiotic perspective, every marketing message has three basic components: • Object (the product that is the focus of the message) • Sign (or symbol) (the sensory image that represents the intended meaning of the object • Interpretant (the meaning we derive from the sign).

Use Chapter Objective 6 Here Use Key Terms ‘Semiotics,’ ‘Object,’ ‘Sign,’ Interpretant,’ ‘Icon,’ ‘Index,’ ‘Symbol’ and ‘Emojis’ Here Use Review Question 3-8 Here Signs relate to objects in one of three ways: They can resemble objects, connect to them, or tie to them conventionally.

•

An icon is a sign that resembles the product in some way .

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An index is a sign that connects to a product because they share some property A symbol is a sign that relates to a product by either conventional or agreed-on associations 1. Hyperreality Hyperreality refers to the process of making real what is initially simulation or “hype.” Advertisers create new relationships between objects and interpretants when they invent connections between products and benefits, such as when an ad equates Marlboro cigarettes with the American frontier spirit.

Use Key Term ‘Hyperreality’ Here F. Perceptual Positioning Our perception of a brand comprises both its functional attributes (e.g., its features, its price, and so on) and its symbolic attributes (its image and what we think it says about us when we use it).

Marketers can use many dimensions to carve out a brand’s position in the marketplace.

These include: •

Lifestyle. Grey Poupon mustard is a “higher-class” condiment.

•

Price leadership. L’Oréal sells its Noisôme brand face cream in upscale beauty shops, whereas its Plenitude brand is available for one-sixth the price in discount stores—even though both are based on the same chemical formula.

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Attributes. Bounty paper towels are “the quicker picker-upper.”

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Product class. The Spyder Eclipse is a sporty convertible.

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Competitors. Northwestern Insurance is “the quiet company.”

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Occasions. Wrigley’s gum is an alternative at times when smoking is not permitted.

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Users. Levi’s Dockers target men in their 20s to 40s.

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Quality. At Ford, “Quality is job 1.”

Use Key Term ‘Positioning Strategy’ Here Use Review Question 3-10 Here Use Consumer Behavior Challenge 3-18 Here

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End-of-Chapter Support Material REVIEW 3-1.

How does the sense of touch influence consumers’ reactions to products?

Moods are stimulated or relaxed based on sensations reaching the skin, whether from a luxurious massage or the bite of a winter wind. Touch has even been shown to be a factor in sales interactions (holding an item makes a consumer feel attached to it; touch can increase tips/coupon redemption). We are more sure about what we perceive when we can touch it. (3 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking)

3-2.

Identify and describe the three stages of perception.

Exposure occurs when a stimulus comes within the range of someone’s sensory receptors. Attention refers to the extent to which processing activity is devoted to a particular stimulus. Interpretation refers to the meaning that we assign to sensory stimuli. (3 minutes, Chapter Objective 3-2, AACSB: Application of Knowledge)

3-3.

What is the difference between an absolute threshold and a differential threshold?

The absolute threshold refers to the minimum amount of stimulation that can be detected on a given sensory channel. The differential threshold refers to the ability of a sensory system to detect changes or differences between two stimuli. (1 minute, Chapter Objective 3-2, AACSB: Application of Knowledge)

3-4.

Does subliminal perception work? Why or why not?

Some research by clinical psychologists suggests that people can be influenced by subliminal messages under very specific conditions, though it is doubtful that these techniques would be of much use in most marketing contexts. Effective messages must be very specifically tailored to individuals, rather than the mass messages required by advertising. (2 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking)

3-5.

Describe two factors that can lead to stimulus adaptation.

Five factors can lead to stimulus adaptation: • Intensity: Less-intense stimuli (e.g., soft sounds or dim colors) habituate because they have less sensory impact.

• Duration: Stimuli that require relatively lengthy exposure in order to be processed tend to habituate because they require a long attention span.

• Discrimination: Simple stimuli tend to habituate because they do not require attention to detail.

• Exposure: Frequently encountered stimuli tend to habituate as the rate of exposure increases. .

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3-6.

Relevance: Stimuli that are irrelevant or unimportant will habituate because they fail to attract attention. (2 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking)

“The whole is greater than the sum of its parts.” Explain this statement.

Gestalt roughly means whole, pattern, or configuration, and this perspective is best summarized by the saying “the whole is greater than the sum of its parts.” (3 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking)

3-7.

List the three semiotic components of a marketing message, giving an example of each.

The object is the product that is the focus of the message (e.g., Marlboro cigarettes).

The sign is the sensory image that represents the intended meanings of the object (e.g., the Marlboro cowboy). The interpretant is the meaning derived (e.g., rugged, individualistic, American). (3 minutes, Chapter Objective 3-3, AACSB: Application of Knowledge)

3-8.

What do we mean by the concept of augmented reality? Give an example that is not discussed in the chapter. How does this concept differ from virtual reality?

Augmented reality refers to media that superimposed one or more digital layers of data, images, or video over a physical object. Virtual reality integrates the physical senses with digital information. Unlike augmented reality that delivers a combination of both sensory experiences, virtual reality provides a totally immersive experience that transports the user into an entirely separate 3D environment. One example of augmented reality not discussed in the text is used by Google when showing routes to destinations. (5 minutes, Chapter Objective 3, AACSB: Application of Knowledge)

3-9.

What is a positioning strategy? What are some ways marketers can position their products?

A positioning strategy is a fundamental part of a company’s marketing efforts as it uses elements of the marketing mix (i.e., product design, price, distribution, and marketing communications) to influence the consumer’s interpretation of its meaning. Marketers can use many dimensions to carve out a brand’s position in the marketplace. These include: • Lifestyle: Grey Poupon mustard is a “higher-class” condiment.

• Price leadership: L’Oreal’s Noisôme brand face cream is sold in upscale beauty shops, whereas its Plenitude brand is available for one-sixth the price in discount stores—even though both are based on the same chemical formula.

• Attributes: Bounty paper towels are “the quicker picker upper.”

• Product class: The Mazda Miata is a sporty convertible.

• Competitors: Northwestern Insurance is “the quiet company.” .

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Occasions: Wrigley’s gum is an alternative at times when smoking is not permitted.

Users: Levi’s Dockers are targeted primarily to men in their 20s to 40s.

Quality: At Ford, “Quality is job 1.” (5 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking)

CONSUMER BEHAVIOR CHALLENGE DISCUSS 3-10. Assuming that some forms of subliminal persuasion may have the desired effect of influencing consumers, do you think the use of these techniques is ethical? Explain your answer.

Many students will consider the use of subliminal persuasion to be unethical.

Accordingly, a discussion could focus on why subliminal messages are undesirable. An interesting issue to raise may be how, or even if, subliminal persuasion differs from other advertising that consumers are exposed to every day. Once these differences have been noted, the discussion could turn toward analyzing the reasons why individuals react negatively to subliminal persuasion. Students who believe the use of these techniques is ethical should be encouraged to develop their arguments so that those representing each side of the argument might see the opposing view. Regardless of the position adopted by the majority of students, be prepared to stimulate discussion by developing an argument in favor of the use of subliminal messages. This argument could center on the idea that subliminal persuasion might result in less “clutter.”

Arguing for its effectiveness, the amount of advertising could decrease overall. (10 minutes, Chapter Objective 3-1, AACSB: Ethical Understanding and Reasoning Abilities,) 3-11. The slogn for the movie Godzilla was “Size does matter.” Should this be the slogan for the United States as well? Many marketers seem to believe so. The average serving size for a fountain drink has gone from 12 ounces to 20 ounces. An industry consultant explains that the 32-ounce Big Gulp is so popular because “people like something large in their hands. The larger the better.” Some cities (most notably New York) have tried to ban sales of sugary drinks greater than 24 ounces but so far unsuccessfully. Hardee’s Monster Burger, complete with two beef patties and five pieces of bacon, weighs in at 63 grams of fat and more than 1,000 calories. The standard for TV sets used to be 19 inches; now it is 32 inches and growing. Hulking SUVs have replaced tiny sports cars as the status vehicle of the new millennium. What’s up with our fascination with bigness?

Is this a uniquely U.S. preference? Do you believe that “bigger is better”? Is this a sound marketing strategy?

This question comprises multiple questions. The first, “What’s up with our fascination with bigness?” is very general and should spark some general comments or discussion.

If anything specific is to come from this particular question, students should be directed to theorize as to “why” people in the United States prefer bigger sizes. The second .

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question, “Is this a uniquely American preference?” can only really be addressed when students have a concept of product size in other countries. Thus, foreign students and students who have lived or studied abroad will be a good resource here. Another option if assigning this question as an at-home project is to have students research product sizes in other countries to make comparisons. It might be helpful if you give a few specific products for them to research, such as soft drinks, automobiles, and televisions.

The third question, “Do you believe that ‘bigger is better’?” should be directed toward whether or not larger sizes benefit the consumer. The final question examines whether super-sized products benefit the marketer. (Possible At-Home Project Idea) (10 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking) 3-12. Augmented reality applications may reach the level of sophistication where we observe almost everything through the screen of our smartphones in order to receive an “enhanced” experience. Do you view this as a positive development or a problem?

Augmented reality can add value to a consumer’s experience by allowing consumers to apply an additional layer of data/images to their existing views, which can deepen the consumer’s understanding of the product/product features. Marketers can use this additional layer to provide customized products and/or promotional offers. However, AR can also serve as a distraction from the real life sensory experience and may result in information overload. Some students may mention privacy concerns, as the provider of the AR experience can track information about their preferences, or because ultimately AR technology may allow others (including sellers) to recognize and find information about them as they walk down the street or into a store. It may also lead to unwelcome offers (spam) from marketers. (10 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking and Ethical Understanding and Reasoning Skills) 3-13. The chapter notes that marketers may elect to shrink the amount of product it sells and maintain the same price rather than raise the price. Is this ethical?

This question needs to be split into two parts: 1) whether marketers have the right to charge the same for less product and 2) whether the marketer is responsible to inform the consumer of the price to quantity ratio or whether the consumer is responsible to judge value on his or her own. (10 minutes, Chapter Objective 3-3, AACSB: Analytic Skills) 3-14. Define a schema and provide an example of how this concept is relevant to marketing.

A schema is a set of belief that we use to assign meaning to something. It is critical that marketing decisions are based on what criteria consumers will use to evaluate a product or message. For example, we assume that products that ae lower down with a frame weigh more than products that appear higher in a frame, based on our concept of gravity. Schema also helps to develop a brand personality. (10 minutes, Chapter Objective 3-1, AACSB: Analytic Skills)

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APPLY 3-15. Interview three to five male and three to five female friends about their perceptions of both men’s and women’s fragrances. Construct a perceptual map for each set of products. Based on your map of perfumes, do you see any areas that are not adequately served by current offerings? What (if any) gender differences did you obtain regarding both the relevant dimensions used by raters and the placement of specific brands along these dimensions?

Have the students start this project by listing a number of descriptive words that are or could be used when positioning perfumes in the market place. Have them ask the respondents to position various perfumes on the map according to their impressions of the perfumes selected. For the part of the question about areas that are not adequately served by the current offerings, students should identify “gaps” in the map and determine whether filling the gap will add value to the target consumers. Students may also want to create a separate perceptual map by gender to help analyze the differences.

Since perceptual mapping is not explicitly covered in the chapter, this is an opportunity for instructors to connect this content to that covered in another class such as advertising. (Possible Field Project Idea) (20 minutes, Chapter Objective 3-2, AACSB: Application of Knowledge) 3-16. Using magazines archived in the library, track the packaging of a specific brand over time. Find an example of gradual changes in package design that may have been below the j.n.d.

You might give a few hints here. For example, Aunt Jemima, the Morton Salt Girl, and Betty Crocker are trademarks that changed over time .d can be found in ads. Package changes include Ivory Soap, Kellogg’s Rice Krispies, and Campbell Soup. Students can simply examine automobile ads to see how styles of a particular car have changed over the years—the body is the car’s package. (Possible Field Project Idea) This question needs to be assigned with appropriate time to complete the work. The examples found may mirror the changes in design for the Pepsi logo. (20 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) 3-17. Visit a set of websites for one type of product (e.g., personal computers, perfumes, laundry detergents, or athletic shoes) and analyze the colors and other design principles employed. Which sites “work” and which don’t? Why? Look through a current magazine and select one ad that captures your attention over the others. Explain why this ad attracts you.

See if the students will notice how similar many of the products and brands are in terms of shape, weight, color, and size as depicted on the websites. A good way to approach this project is to pick a mainstream product such as an Apple computer (because of its bright colors). Be sure to have students state what they mean by “it will work” (a success) and how this was measured. Have one or two students go online to demonstrate how they approached this project. (Possible At-Home Project Idea) .

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After students have indicated what ad caught their attention, probe to see if there are any other reasons. This is a good opportunity to remind students about what ads are likely to get their attention because of personal factors and stimulus factors (contrast and novelty are discussed in #5). Ask the class if any other aspects of the ad struck them. (Possible Field Project Idea) (20 minutes, Chapter Objective 3-3, AACSB: Analytical Thinking) 3-18. Find ads that utilize the techniques of contrast and novelty. Give your opinion of the effectiveness of each ad and whether the technique is likely to be appropriate for the consumers the ad targets.

Opinions will vary here. Some people like novelty in most everything, while others want people to be more serious. You should look for students to identify different ways marketers create a contrast, and for students to recognize how contrast (including novelty) is used to get their attention and overcome advertising clutter. (Possible Field Project Idea) (15 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking) 3-19. Assume that you are a consultant for a marketer who wants to design a package for a new premium chocolate bar targeted to an affluent market. What recommendations would you provide in terms of such package elements as color, symbolism, and graphic design? Give reasons for your suggestions.

Answer will vary here. Some terms that will be used are luxury, best, and ultimate.

Color will vary from purple to gold. (10 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking) MyLab 3-20. Many studies have shown that our sensory detection abilities decline as we grow older.

Discuss the implications of the absolute threshold for marketers who want to appeal to the older consumer.

The minimum difference individuals can detect between two stimuli is the just noticeable difference (j.n.d.). Students may present a wide variety of responses to this question. (10 Minutes, Chapter Objective 1, AACSB: Reflective Thinking) 3-21. The chapter discussed the “talking window,” which a German ad agency is placing in subway cars. When the agency posted a YouTube video to promote the platform, one person commented, “At what point does it stop being advertising and start being harassment?” How would you answer this question?

Student responses will vary significantly. (5 Minutes, Chapter Objective 2, AACSB: Reflective Thinking)

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CASE STUDY TEACHING NOTES Chapter 3 Case Study: The Brave New World of Subway Advertising Summary of Case The subject company, adtrackmedia, has pioneered a technology that allows for static images placed in subway tunnels to appear as full-motion commercials. This represents one of many developments in recent years to break through ad clutter to capture consumers’ attention with a novel type of advertising in a place that consumers do not expect it. The ad medium is rolling out in subway tunnels of major cities worldwide. The most notable part of this new development is that public reaction has been overwhelmingly positive. Transit officials, agency representatives, and corporate advertisers alike have been given kudos for turning dark and dreary tunnels into something entertaining for commuters.

Suggestions for Presentation This case could be assigned as an out-of-class or in-class activity. As an in-class activity, it might be more effective to have the class read it, then break them into small groups to discuss the questions. The small group discussion could then be followed up with a large group review.

The case allows for some application to the sections on exposure (Which of the five senses does this ad type appeal to most? What are the implications of this for advertisers?) and interpretation (How does placement of an ad in this context affect positioning? How does the nature of different target segments of subway riders affect interpretation?). Thus, this case can be used to illustrate the entire process of perception as explained in the chapter.

This case allows for the psychological processes of perception to be linked to real-world marketing implications. One item of interest not mentioned in the case that may be brought up during discussion is how this unique appeal to the perception processes of consumers has created value for multiple constituencies: • The consumers—the positive reception indicates that the ads have entertainment value during an otherwise boring commute.

• The media agencies—these agencies are new ventures carving out a multi-million dollar industry. The cost of subway ads ranges from $35,000 a month to $250,000 a month depending on the route.

• The advertisers—there is no shortage of promotional choices for corporations and non- profit organizations. However, subway tunnel advertising gives marketers one of the few options that breaks through ad clutter in such a way that the consumer wants to see the ad, not to avoid it.

• The transit agencies—most metropolitan transit agencies are struggling with ever tightening budgets and with the balance of fare prices and demand. Many are therefore searching for additional revenue streams such as concessions or advertising. Although in- station and in-train advertising has been around since the early 1900s, subway tunnel agencies are forecasting that a single transit company (which would receive .

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between 25 percent and 60 percent of the revenues) could earn as much as $200 million over 5 years.

Suggested Answers For Discussion Questions CS 3-1. Based on the principles of attention the chapter presents, explain why riders receive these ads so positively. Be sure to consider the possible stimulus selection factors that apply.

This case is suited for illustrating various aspects of the perceptual process, including sensation, exposure, attention, and interpretation. However, the concepts that best explain why this new advertising medium should initially be successful are the stimulus selection factors of position and novelty that contribute to attention. With respect to position, subway ads come into full view, right outside the windows of subway trains where many riders are likely to be gazing. The concept of novelty exerts that stimuli that appear in unexpected places tend to grab attention. Certainly, these ads should at least initially be unexpected on the dark walls of subway tunnels.

These things alone will contribute to higher than normal levels of attention, which should have some effect on memory retention. In addition, adtrackmedia uses innovative technology similar to that of a childhood flip book making subway tunnels a valuable showcase for ads. Ads take away from the boredom of the ride. (20 minutes, Chapter Objectives 1 and 2, AACSB: Reflective Thinking) CS 3-2. It has been shown that consumers can habituate to a stimulus. Is there anything the ads’ creators should know about adaptation and its potential impact on the success of these ads over time?

In a test in Madrid, two out of three riders remembered seeing the tested campaign, with over 44 percent rating the ad as “original.” Over 58 percent said that the ads made them stop and look. Most important, 34.3 percent reported that the ads made them more likely to buy some of the brand being advertised through this innovative medium. But, how long will the novelty of this new medium last?

Adaptation is the degree to which consumers continue to notice a stimulus over time.

The process of adaptation occurs when we no longer pay attention to a stimulus because it is so familiar. A consumer can “habituate” and require increasingly stronger “doses” of a stimulus to notice it. Students should consider the example of electronic billboards which were unusual a few years ago, but are becoming more commonplace. Several factors can lead to adaptation: •

Intensity—Less-intense stimuli (e.g., soft sounds or dim colors) habituate because they have less sensory impact.

•

Discrimination—Simple stimuli habituate because they do not require attention to detail.

•

Exposure—Frequently encountered stimuli habituate as the rate of exposure increases. .

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Relevance—Stimuli that are irrelevant or unimportant habituate because they fail to attract attention. (20 minutes, Chapter Objective 3, AACSB: Analytical Thinking)

CS 3-3. As you consider the companies that have used tunnel advertising, are there brands or products that would not be a good fit for this medium? Be prepared to justify your response with examples.

Student answers will vary. Examples may include brands or products that use ads that are visually cluttered or require sound for effective communication. An ad campaign that heavily depends upon music to support the mood of the ad or information heavy messages (with many words) would not be the best fit for this medium. The speed of the subway will prevent detail or excessive words from being internalized by riders. (20 minutes, Chapter Objective 3, AACSB: Reflective Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1. Visit a department store through its perfume/cologne/cosmetics section. Do the scents have enough of an appeal to motivate buying? Does it appear that each of these is appealing to the sense of smell in a strategic manner?

For most shoppers, perfumes, colognes and cosmetics may be an impulse purchase. The products are important to the department stores because they tend to have high margins.

In fact, students should have difficulty remembering discounts associated with these products – companies are more likely to use a gift with purchase as an enticement because they do not want to deteriorate their brands’ images. Department stores often position these products near the main entrance to entice shoppers to “sample” products that were not on their lists. Frequently, the individuals who sell the products in these sections work for, and receive special training from, the companies they represent (as opposed to the department store). From a sensory perspective, the companies often use special lighting and attractive images, including attractive salespeople, in addition to the scents, to help attract additional attention to the area and position their offerings.

(10 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) 2. Ask students to find three ads that contain symbolism. Examine the symbols and discuss the meaning the symbols convey. Encourage the student to identify the different types of signs used in the ads and the product qualities being communicated by each. Additionally, find a symbol that might not or should not be used in advertising in the cultural context of America. Why would you not utilize it?

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The three types of signs discussed in the chapter are icons (signs that resemble products), indexes (signs connected to products because they share a property with the product), and symbols (signs related to the product through conventional or agreedupon associations). You may ask students to find an ad that represents each of these three types of signs to help reinforce the differences between them. Just as the examples will vary, so will the product qualities being communicated by each type of sign.

Students will also find different examples of symbols that might not or should not be used in the cultural context of America. Look for students to identify why it would not be culturally acceptable, and use the exercise as an opportunity to connect their examples to the concept that our reactions to stimuli are often a function of our cultural backgrounds. (30 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking) 3. What are the symbols of “green marketing?” Students need to review then and discuss whether or not they are effective.

On the most basic level, companies’ uses of the color green, and its associations with environmental protection and the widely recognized symbol for recycling are likely to come up. However, the discussion is likely to go beyond the recycling symbol and the use of the color green because the use of symbols in green marketing (identified in chapter one as marketing practices that promote a firm’s efforts to protect or enhance the natural environment as they go about their business activities) is a hot topic that may stimulate debate among students. Some companies use symbols associated with wellrecognized environmental organizations. However, students may recognize that there are also an overwhelming number of green marketing symbols associated with green marketing that were created by individual firms that may be confusing to consumers because they lack meaningful and verifiable criteria for what makes the product eligible to be associated with the symbol (e.g. CBS EcoAds). To help students prepare their opinions about whether or not the symbols are effective, you may want to direct them toward the FTC’s Green Guides. (20 minutes, Chapter Objective 3-3, AACSB: Application of Knowledge) 4. Here is a field project that students always like. Have students (you might have only one or a few students do this as a special or alternative assignment) print a collection of brand/product symbols (an alternative would be to have students create a PowerPoint presentation with images inserted to be projected in the classroom for all to see). Then have this student quiz fellow classmates to see if they can recognize the product or company. This will show students how effective symbols are and how much involuntary learning has taken place in their life. You might give a reward to the student who had the most correct responses.

Student examples and recognition of the symbols will vary. You can connect the exercise to the concepts of perceptual vigilance and talk about the cultural meaning associated with the symbols. For a twist on the exercise, you may ask students to find international symbols for brands that are available in the United States to discuss how and why they are different. (30 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking, Communication Abilities) .

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5. Here is a tough assignment for an undergraduate. Ask students to spend an afternoon watching a favorite television show. Ask them to be particularly observant of the various products and services that are used as props during the show. Do these products or services have any symbolic value? How would viewer perception be different if alternative brands or even generic brands had been used? To what extent are the props shown or mentioned? Are they used to help develop the plot? How? You can relate this project back to the idea that consumers often use products for what they mean instead of what they do. Props and set design are an important part of character development because they can help quickly create an image and a background for the character. Similarly, consumers use products to help communicate something about themselves or their identities. Students may also recognize that product placements are used frequently in today’s media to break through the clutter associated with other advertising and to overcome challenges associated with consumers fast- forwarding through ads using their DVRs. In some cases, these products may be mentioned as part of the story line (e.g. an episode of Friends that has a story line about an apothecary table from Pottery Barn; Toyota’s discussion of product attributes/demonstration of safety features/self parking cars during the story line of Bones, etc.). (75 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) 6. Have students visit a grocery store and pick out five products. They should identify how each appeal to the five senses. How are they the same? How are they different? To what extent do any of them appear to be strategically designed to appeal to the five senses?

This project is a good way to reinforce the five senses and how marketers use appeals to each. Due to the popularity of sensory marketing as a way to differentiate products, students will be able to find a wide variety of products that appeal to the five senses. It is important to look for students to identify similarities and differences in the use of the appeals, and how the appeals relate to strategy, as the analytical aspect of this exercise.

(30 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking, Analytic Skills 7. While viewing one hour of television, what types of companies focus the most on factors that might affect “perceptual vigilance” in their advertisements? Have students write about examples of instances when they have used or experienced “perceptual vigilance” and “perceptual defense.” Have them share their experiences with the class.

This exercise is similar to the suggested discussion topic associated with perceptual vigilance, which is when consumers are more likely to be aware of stimuli that relate to their current needs. Marketers may try to connect their products with current needs (e.g. clothing retailers and mass discount stores talking about how the products can be used for back to school) or use the stimulus techniques (attention getting devices) designed to overcome perceptual barriers. Students may be more comfortable identifying examples in which other people have engaged in perceptual defense, since it may be difficult to identify or remember examples where they chose to avoid or distort .

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a stimulus that was unpleasant to them. (75 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking) 8. Examples of hyperreality are becoming increasingly common in our society. Have each student locate (either through their own observations or through reviewing articles in the popular and trade press) an example of hyperreality. Is the example chosen one in which the marketer strategically facilitated the “hyperreal” phenomenon, or did the transition occur independent of the marketer? How does the chosen example contribute to the relationship between the product and the consumer?

Hyperreality occurs when advertisers create new relationships between objects and interpretants by inventing new connections between products and benefits. Students may identify reverse product placements in their examples of hyperreality. Encourage students to answer each part of the question. In particular, look for students to go beyond identifying hyperreal examples to the analysis of the relationship between the product and the consumer. (30 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking) Group Projects 1. Develop a print and/or video ad for a product/brand that includes as many of the sensory stimuli as possible in order to convey the environmental message.

Students will require some time to prepare their ads. Remind them to think about the one message they want to get across and to think about how they can use the stimuli to help break through the clutter. Print ads are generally easier to prepare, but many students have video functionality on their cell phones and share videos online, so finding equipment may not be as challenging as it used to be. Video will allow students with the opportunity to include auditory stimuli, while a print ad may provide students with the opportunity to appeal to the sense of touch. (120 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) 2. Collect a variety of packages of children’s and adults’ breakfast cereals. How different are the j.n.d strategies for each market? Catalog various j.n.d strategies utilized and state whether they are likely to be effective for any other products. If your group were marketing the cereal, what would you have done differently?

Students may want to go beyond the current packages available on the shelves to look for historic images of packages, which are readily available online. Frosted Flakes and Lucky Charms are popular examples that have changed over time. Students should look not only at the colors and words used on the packaging but also at how marketers draw attention (or choose not to draw attention) to product changes like package size, the addition of nutrients, and promotional offers. (90 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking)

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3. Have student groups find three examples of brands or companies that have made changes to their products (i.e., retail chain re-designing their stores, a new logo, etc.).

Have them discuss how the concept of “just noticeable difference” might affect consumer perceptions of these changes. Are the changes something that the marketers wanted to be noticed?

Students should recognize that marketers want some changes to go unnoticed (e.g. smaller package sizes, less oz. per package for the same price resulting in an increase in price) while marketers want other changes to be noticed (product improvements, logo redesigns, lower unit pricing). The exercise helps draw additional attention to the trend where food inflation is hidden by smaller (sometimes marketed as healthier or more environmentally friendly) packages, which students may find interesting. Students may enjoy playing “detective” to find variations in products they may not have noticed in the past. (60 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) ONLINE ASSIGNMENTS Individual Assignments 1. Visit www.globalgreen.org. What are some of the sensory cues they are utilizing in order to attract your attention to various subjects/topics and ads?

The most obvious response will be the use of visual cues. Color, size of headlines, font style, and use of motion may be mentioned among the visual cues. Students may try to connect the use of color to what they learned about color in the chapter. The website also offers videos, which engage users with sight and sound. Since the website is a destination and the Internet is a lean forward medium, it is likely that consumers who go to globalgreen.org are motivated to pay attention to the messages (or they would not visit the website). (20 minutes, Chapter Objective 3-1, AACSB: Reflective Thinking) 2. Go to www.tvguide.com. On the opening webpage, how many ads (including pop-ups) do you notice? Compare and contrast the approach of each ad to exposure, attention, and interpretation. Comment on how the consumer goes through these steps when being exposed to each ad. Provide an illustration of your description.

Student responses will vary. In some cases, most of the advertising space on the website (top, side and bottom) will be occupied by a single sponsor. Student responses should differentiate between the parts of the process that occur - exposure, attention and interpretation - and should note personal and stimulus factors that affect the perception process at each stage. (20 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking) 3. Go to www.toyota.com/prius. Prius has focused its promotional efforts on the internet and other non-traditional media. Is this website a good way to promote a car? In terms of concepts of perception, why or why not? .

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Students will have different opinions about whether the website is a good way to promote a car, so look for ways they support their opinions with the concepts of perception. For example, students may talk about perceptual vigilance, the website’s ability to create a sensory experience, and how Toyota uses the website to shape consumer perceptions in order to position the Prius. (20 minutes, Chapter Objective 3-2, AACSB: Reflective Thinking) 4. Go to www.leapfrog.com or www.pbskids.org. These sites are designed to facilitate learning amongst children. Compare and contrast these sites for sensory stimulation, attention value, and ability to promote a sale of the product. How are semiotics used on these sites?

Students should recognize that the websites have different goals – leapfrog.com sells educational toys, and pbskid.org promotes (sells) educational programs (using games and videos). The target audience for the two websites varies as well. PBSkids.org is more visually oriented and has audio cues when you scroll over the items, which may be helpful for young users who cannot read (who are included in the target audience for many of the programs). On the other hand, leapfrog.com sells products, so although it also has a separate community for parents, parents are probably the main target audience for the site. In terms of semiotics, students may answer this part of the question by identifying the object, sign and interpretant of the marketing messages on each site.

For example, they may identify the books at leapfrog.com as the object, the leapfrog as the sign, and the interpretant as the ability to jump ahead/make progress (leapfrog) using the object. Alternatively, the students may identify icons, indices, and/or symbols on each website. (30 minutes, Chapter Objective 3-3, AACSB: Reflective Thinking)

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Chapter 4: Consumer and Social Well Being

Chapter 4: LEARNING AND MEMORY

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 4-1. Conditioning results in learning.

4-2. We learn about products by observing others’ behavior.

4-3. Our brains process information about brands to retain them in memory.

CHAPTER SUMMARY Conditioning results in learning.

Behavioral learning theories assume that learning occurs as a result of responses to external events. Classical conditioning occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response. Over time, the second stimulus (the conditioned stimulus) elicits the response even in the absence of the first.

We learn about products by observing others’ behavior.

Cognitive learning occurs as the result of mental processes. For example, observational learning occurs when the consumer performs a behavior as a result of seeing someone else performing it and being rewarded for it.

Our brains process information about brands to retain them in memory.

Memory is the storage of learned information. The way we encode information when we perceive it determines how we will store it in memory. The memory systems we call sensory memory, short-term memory, and long-term memory each play a role in retaining and processing information from the outside world in marketing strategies.

CHAPTER OUTLINE I.

How Do We Learn Learning is a relatively permanent change in behavior caused by experience. The learner need not have the experience directly, however; we can also learn when we observe events that affect others. We learn even when we don’t try: We recognize many brand names and hum many product jingles, for example, even for products we don’t personally use. We call this casual, unintentional acquisition of knowledge incidental learning.

Psychologists who study learning advance several theories to explain the learning process. These theories range from those that focus on simple stimulus–response connections (behavioral theories) to perspectives that regard consumers as solvers of complex problems who learn abstract rules and concepts when they observe what others say and do (cognitive theories).

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Chapter 4: Consumer and Social Well Being

Use Chapter Objective 1 Here Use Key Terms ‘Learning,’ ‘Behavioral Learning Theories,’ ‘Unconditioned Stimulus (UCS),’ ‘Conditioned Stimulus (CS),’ and ‘Conditioned Response (CR)’ Here A. Behavioral Learning Theories Behavioral learning theories assume that learning takes place as the result of responses to external events.

Two major approaches to learning represent this view: classical conditioning and instrumental conditioning.

1. Classical Conditioning a. Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because we associate it with the first stimulus. b. Pavlov, a Russian physiologist who conducted research on digestion in animals, first demonstrated this phenomenon in dogs. c. He paired a neutral stimulus (a bell) with a stimulus known to cause salivation in dogs (meat powder).

• The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response.

• Over time, the bell became a conditioned stimulus (CS); it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell.

• The drooling of the dogs because of a sound, now linked to food, was a conditioned response (CR). d. Repeated exposures – repetition – increase the strength of stimulus–response associations. e. Extinction, which happens when the effects of prior conditioning diminish and finally disappear.

2. Stimulus Generalization a. Stimulus generalization refers to the tendency of stimuli similar to a CS to evoke similar, conditioned responses. b. The halo effect occurs when people react to other, similar stimuli in much the same way they respond the original stimulus.

3. Stimulus Discrimination a. Stimulus discrimination occurs when a UCS does not follow a stimulus similar to a CS. Reactions weaken and will soon disappear.

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Chapter 4: Consumer and Social Well Being

Use Key Terms ‘Repetition,’ ‘Extinction,’ ‘Stimulus Generalization,’ ‘Halo Effect,’ and ‘Stimulus Discrimination’ Here Use Review Questions 4-1 and 4-2 Here B. Marketing Applications of Classical Conditioning Principles Pairing nonsense syllables (meaningless sets of letters) with such evaluative words as beauty or success, transfers the meaning fake words. These associations are important to many marketing strategies that rely on the creation and perpetuation of brand equity, in which a brand has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result.

Use Key Terms ‘Brand,’ ‘Advertising Wear-Out,’ ‘Consumer Confusion,’ ‘Instrumental Conditioning,’ and ‘Shaping Behavior’ Here Use Review Question 4-3 Here C. Marketing Applications of Repetition 1. Some research says three exposures to an ad is ideal: 1st exposure creates awareness; 2nd shows relevance of product; 3rd reminds of benefits.

2. Advertising wear-out occurs when the marketing stimulus no longer has an impact on the consumer.

D. Marketing Applications of Stimulus Generalization 1. Strategies that marketers base on stimulus generalization include: a. Family branding b. Product line extension c. Licensing d. Look-alike packaging.

2. Consumer confusion occurs if one company’s logo (design, etc.) is so similar to another that the average consumer has difficulty distinguishing between them.

E. Instrumental Conditioning 1. Instrumental conditioning (or operant conditioning) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes.

2. Introduced by B.F. Skinner.

3. We learn the desired behavior over a period of time as a shaping process rewards our intermediate steps.

4. Instrumental conditioning occurs in one of three ways: a. The environment provides positive reinforcement in the form of a reward, strengthening the response and we learn the appropriate behavior. b. Negative reinforcement strengthens responses so that we learn the appropriate behavior. c. Punishment occurs when unpleasant events follow a response. We learn not to repeat these behaviors.

• It is important to determine the most effective reinforcement schedule to use.

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Chapter 4: Consumer and Social Well Being

• • • •

Fixed-interval Variable-interval Fixed-ratio Variable-ratio

Use Key Terms ‘Frequency Marketing’ and ‘Gamification,’ Here Use Consumer Behavior Challenge 4-21 Here F. Marketing Applications of Instrumental Conditioning 1. Frequency marketing rewards regular purchasers with prizes that get better the more they spend (e.g., airline frequent flyer programs).

G. Gamification: The New Frontier for Learning Applications 1. Gamification turns routine actions into experiences by adding gaming elements to tasks that might otherwise be boring. a. Important elements of gaming include: • A dynamic digital environment that resembles a videogame • Multiple short- and long-term goals • Rapid and frequent feedback • A reward for efforts in the form of a badge or a virtual product • Friendly competition in a low-risk environment • A manageable degree of uncertainty b. Endowed progress effect is “preloading” a frequent buyer card with a few punches that make achievement of the reward appear more attainable. c. Many domains of activity share the need to motivate and reward people to achieve ascending levels of mastery.

• Store and brand loyalty.

• Social marketing.

• Employee performance Use Chapter Objective 2 Here Use Key Terms ‘Cognitive Learning Theory,’ ‘Observational Learning,’ ‘Social Default,’ and Modeling’ Here Use Review Questions 4-4 and 4-5 Here II. Cognitive Leaning Theory Cognitive learning theory stresses the importance of internal mental activities.

A. Observational Learning Observational learning occurs when we watch the actions of others and note the reinforcements they receive for their behaviors. In these situations, learning occurs as a result of vicarious rather than direct experience.

When we are preoccupied with other demands, we mimic others’ behaviors as a social default.

Modeling is the process of imitating the behavior of others. .

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Four conditions must be met for observational learning in the form of modeling to occur: 1. The consumer’s attention must be directed to the appropriate model.

2. The consumer must remember what the model says or does.

3. The consumer must convert this information into actions.

4. The consumer must be motivated to perform these actions.

B. Is Leaning Conscious or Not? Nonconscious procedural knowledge occurs when we process information automatically. In such situation, a trigger feature – a stimulus that cues us toward a particular pattern – activates the reaction.

1. Marketing Applications of Cognitive Learning Principles a. The degree to which a person emulates someone else depends on that model’s level of social attractiveness. Attractiveness comes from several components, including physical appearance, expertise, or similarity to the evaluator.

Use Key Terms ‘Consumer Socialization’ and ‘Stage of Cognitive Development’ Here Use Review Question 4-6 Here Use Consumer Behavior Challenge 4-22 Here

C. How Do We Learn to Be Consumers?

Consumer socialization is the process used to acquire skills and knowledge.

1. Parent’s Influence a. Parents exhibit different styles when they socialize their children: • Authoritarian parents are hostile, restrictive, and emotionally uninvolved.

• Neglecting parents exercise much control over what their children do.

• Indulgent parents communicate more with their children about consumption-related matters and are less restrictive.

2. Television and the Internet: Electronic Babysitters a. Most kids divide their time among the TV set, the computer, and their cell phones. b. In the United States, about 80 percent of children age five and under use the internet at least once a week.

3. Cognitive Development a. Marketers segment kids in terms of their stage of cognitive development, or their ability to comprehend concepts of increasing complexity. b. One view of development is that kids differ in information-processing capability. Three developmental stages exist in this view: • Limited: Children who are younger than age six do not employ storage-and-retrieval strategies.

• Cued: Children between the ages of six and 12 employ these strategies but only when prompted to do so. .

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•

Strategic: Children 12 and older spontaneously employ storageand-retrieval strategies 4. Message Comprehension Because children differ in their abilities to process product-related information, advertisers’ direct appeals to them raise many serious ethical issues.

Use Chapter Objective 3 Here Use Key Terms ‘Memory,’ ‘Episodic Memories,’ ‘Chunking,’ and ‘Elaborative Rehearsal’ Here Use Review Question 4-7 Here Use Consumer Behavior Challenge 4-25 Here III. Memory Memory is a process of acquiring information and storing it over time so that it will be available when we need it.

Contemporary approaches to the study of memory employ an information-processing approach.

The memory process (Figure 4.5) entails three stages: • Encoding • Storage • Retrieval A. How Our Brains Encode Information The way we encode information helps to determine how our brain stores it. We may process the information in terms of its sensory meaning or its semantic meaning.

Episodic memories relate to events that are personally relevant.

Three memory systems exist: 1. Sensory Memory a. Sensory memory stores the information we receive from our senses.

2. Short-Term Memory a. Short-term memory (STM) stores information for a limited time and has limited capacity. This system is working memory. Memories may be either acoustic (sounds) or semantic (meaning). b. We combine smaller pieces of information into larger chunks of information.

This is known as chunking.

3. Long-Term Memory a. Long-term memory (LTM) is the system that lets us store information for long periods of time. b. Elaborative rehearsal allows information to move rom STM into LTM. Use Key Terms ‘Activation Models of Memory,’ ‘Associative Networks,’ ‘Spreading Activation,’ ‘Script,’ and Service Script’ Here Use Review Questions 4-8, 4-9, 4-10, and 4-11 Here .

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B. How Our Memories Store Information The multiple-store perspective assumes that STM and LTM are separate systems. The activation models of memory depend on the nature of the processing task.

1. Associative Networks a. According to activation models, incoming pieces of information get stored in associative networks that contain related information.

2. Spreading Activation a. Spreading activation allows shifting back and forth among levels of meaning.

3. Levels of Knowledge a. Meaning concepts are stored as individual nodes. b. When combines into larger unites they are propositions (or beliefs) c. Combined propositions are known as a schema.

• A script is a schema that guides behavior • Service scripts guide behavior in commercial settings Use Key Terms ‘Pioneer Brand,’ ‘Follower Brands,’ ‘Spacing Effect’ Here Use Review Questions 4-12 and 4-13 Here C. How We Retrieve Memories When We Decide What to Buy We retrieve information on a pioneer brand (first brand to enter a market) from memory better than for follow brands.

The spacing effect is the tendency to recall printed material easier when the advertiser repeats the information periodically.

Use Key Terms ‘Decay’ ‘Interference,’ ‘State-Dependent Retrieval,’ ‘Highlighting Effect,’ ‘Salience,’ ‘von Restoriff Effect,’ ‘Mixed Emotions,’ and ‘Unipolar Emotions’ Here Use Review Question 4-14 Here

D. What Makes Us Forget?

Forgetting may occur through decay – the passage of time.

Forgetting may also occur through interference – new information replacing old.

Retroactive and proactive interference are two forms of interference.

1. State-Dependent Retrieval a. The phenomenon of state-dependent retrieval illustrates that we are better able to access information if our internal state is the same at the time of recall as when we learned the information.

2. Familiarity and Recall a. As a general rule, when we are already familiar with an item we’re more likely recall messages about it.

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b. A highlighting effect occurs when the order in which consumers learn about brands impacts their learning.

3. Salience and Recall a. Salience of a brand refers to tits prominence of activation in memory. b. The von Restorff Effect shows that almost any technique that increases the novelty of a stimulus also improves recall. c. Recall of mixed emotions (those with positive and negative components) occurs differently than unipolar emotions.

4. The Viewing Context a. Regardless of how awesome a commercial is, the show in which it appears influences its impact – positively or negatively.

5. Pictorial Versus Verbal Cues a. We are more likely to recognize information we see in picture form at a later date.

Use Key Terms ‘Recognition,’ ‘Recall,’ and ‘Response Bias’ Here Use Review Question 4-15 Here Use Consumer Behavior Challenge 4-27 Here E. How We Measure Consumers’ Recall of Marketing Messages 1. Recognition versus Recall a. Two basic measures of impact are recognition and recall.

• In a recognition test, researchers show ads to subjects one at a time and ask if they have seen them before.

• In a free recall tests, researchers ask consumers to independently think of what they have seen without being prompted for this information first.

2. Problems with Memory Measures a. Response bias: people tend to give the answers they believe they are supposed to give.

3. Memory Lapses a. People are prone to forget information or retain inaccurate memories. Typical problems include: • Omitting (leaving facts out), • Averaging (the tendency to “normalize” memories by not reporting extreme cases), • Telescoping (inaccurate recall of time).

Use Review Question 4-16 Here F. Bittersweet Memories: The Marketing Power of Nostalgia Nostalgia describes the emotions that arise when we view the past.

A retro brand is an updated version of a brand from a prior historical period.

A spontaneous recovery is a weakened response long after an initial response. .

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(Hearing a song that brings back old memories is an example.)

Use Key Terms ‘Nostalgia,’ ‘Retro Brand,’ and ‘Spontaneous Recovery’ Here Use Review Questions 4-17, 4-18, 4-19, and 4-20 Here Use Consumer Behavior Challenges 4-23, 4-24, 4-26, and 4-28 Here End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1. Marketing Opportunity Events we experience when we are young often exert a lasting influence on our preferences as we get older. Consider for example the lifelong impact on a fan when his team wins the World Series. It was found that if a team wins the championship when a boy is eight years old, this significantly increases the probability he will support the team as an adult regardless of how well the team does every other year of his life.

Maybe winning is everything.

2. The Tangled Web The ‘Google Effect’ occurs when individuals tend to rely on Google for their information and not their own memory.

REVIEW 4-1. What is the difference between an unconditioned stimulus and a conditioned stimulus?

Ivan Pavlov, a Russian physiologist doing research on digestion in animals, first demonstrated this phenomenon in dogs. Pavlov induced classically conditioned learning by pairing a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs (he squirted dried meat powder into their mouths). The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. Over time, the bell became a conditioned stimulus (CS); it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. (5 minutes, Chapter Objective 4-2, AACSB: Application of Knowledge) 4-2.

Give an example of a halo effect in marketing.

People react to other, similar stimuli in much the same way they responded to the original stimulus; this generalization is called a halo effect. A drugstore’s bottle of private brand mouthwash deliberately packaged to resemble Listerine mouthwash may evoke a similar response among consumers, who assume that this “me-too” product shares other characteristics of the original. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking) .

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4-3.

How can marketers use repetition to increase the likelihood that consumers will learn about their brand?

Many classic advertising campaigns consist of product slogans that have been repeated so many times that they are etched in consumers’ minds. Conditioning will not occur or will take longer if the CS is only occasionally paired with the UCS. One result of this lack of association may be extinction that occurs when effects of prior conditioning reduce and finally disappear. This can occur, for example, when a product is overexposed in the marketplace so that its original allure is lost. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking)

4-4.

Why is it not necessarily a good idea to advertise a product in a commercial where a really popular song plays in the background?

A popular song might also be heard in many situations in which the product is not present. When the unconditioned stimulus appears in the absence of the conditioned stimulus, it can lead to extinction of the effect of conditioning. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking)

4-5.

What is the difference between classical conditioning and instrumental conditioning?

Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus. Instrumental conditioning, also known as operant conditioning, occurs as the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. (5 minutes, Chapter Objective 4-3 AACSB: Reflective Thinking)

4-6.

What is the major difference between behavioral and cognitive theories of learning?

In contrast to behavioral theories of learning, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. Supporters of this view also stress the role of creativity and insight during the learning process. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

4-7.

Name the three stages of information processing as we commit information about products to memory.

Encoding, storage, and retrieval. (5 minutes, Chapter Objective 4-6, AACSB: Reflective Thinking)

4-8

What is external memory and why is it important to marketers?

.

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During the consumer decision-making process, this internal memory is combined with external memory that includes all of the product details on packages and other marketing stimuli that permit brand alternatives to be identified and evaluated. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-9.

Give an example of an episodic memory.

Episodic memories relate to events that are personally relevant. As a result, a person’s motivation to retain these memories will likely be strong. Couples often have “their song” that reminds them of their first date or wedding or some remember the first time they went on a date or what happened at their high school prom. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

4-10. Why do U.S. phone numbers have seven digits?

Initially, researchers believed that STM was capable of processing between five and nine chunks of information at a time, and for this reason they designed phone numbers to have seven digits. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-11. List the three types of memory, and explain how they work together.

Sensory memory permits storage of the information we receive from our senses. This storage is temporary; it lasts a couple of seconds at most. Short-term memory (STM) also stores information for a limited period, and it has limited capacity. Similar to a computer, this system can be regarded as working memory; it holds the information we are currently processing. Long-term memory (LTM) is the system that allows us to retain information for a long period. Elaborative rehearsal is required in order for information to enter into long-term memory from short-term memory. This process involves thinking about the meaning of a stimulus and relating it to other information already in memory. (10 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-12. How is associative memory like a spider web?

Knowledge structures can be thought of as complex spider webs filled with pieces of data. This information is placed into nodes connected by associative links within these structures. Pieces of information that are seen as similar in some way are chunked together under some more abstract category. New, incoming information is interpreted to be consistent with the structure already in place. (10 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-13. How does the likelihood that a person wants to use an ATM machine relate to a schema?

The desire to follow a script or schema helps to explain why such service innovations as automatic bank machines, self-service gas stations, or “scan-your-own” grocery checkouts have met with resistance by some consumers, who have trouble adapting to .

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a new sequence of events. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking) 4-14. Why does a pioneering brand have a memory advantage over follower brands?

Some evidence indicates that information about a pioneering brand (the first brand to enter a market) is more easily retrieved from memory than follower brands because the first product’s introduction is likely to be distinctive and, for the time being, no competitors divert the consumer’s attention. (10 minutes, Chapter Objective 4-3, AACSB: Analytic Skills) 4-15. If a consumer is familiar with a product, advertising for it can work both ways by either enhancing or diminishing recall. Why? As a rule, prior familiarity with an item enhances its recall. This is one of the basic goals of marketers who are trying to create and maintain awareness of their products. The more experience a consumer has with a product, the better use he or she is able to make of product information. However, there is a possible fly in the ointment: As noted earlier in the chapter, some evidence indicates that extreme familiarity can result in inferior learning and recall. When consumers are highly familiar with a brand or an advertisement, they may attend to fewer attributes because they do not believe that any additional effort will yield a gain in knowledge. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-16. Define nostalgia, and tell why it is such a widely used advertising strategy.

We can describe nostalgia as a bittersweet emotion; the past is viewed with both sadness and longing. References to “the good old days” are increasingly common, as advertisers call up memories of youth—and hope these feelings will translate to what they are selling today. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-17. Name the two basic measures of memory and describe how they differ from one another.

Two basic measures of impact are recognition and recall. In the typical recognition test, subjects are shown ads one at a time and asked if they have seen them before. In contrast, free recall tests ask consumers to independently think of what they have seen without being prompted for this information first—obviously this task requires greater effort on the part of respondents. (15 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-18. List three problems with measures of memory for advertising.

Response biases, memory lapses, and memory for facts versus feelings. (5 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

.

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4-19. How do different types of reinforcement enhance learning? How does the strategy of frequency marketing relate to conditioning?

Businesses can shape behavior when they gradually reinforce actions with rewards. Instrumental conditioning occurs when behavior produce positive outcome and we learn to avoid those behaviors that do not produce desired outcomes. Shaping is a reinforcement tool that rewards intermediate actions.

Positive reinforcement strengthens the response and we learn appropriate behavior. Negative reinforcement also strengthens the response as we learn to avoid a certain behavior. Punishment is an unpleasant event that follows an action. When a person no longer receives a desired outcome for an action, they will eventually quit performing the action. Frequency marketing rewards regular purchasers with prizes as they spend more. This positive reinforcement encourages consumers to spend more, and increase reward levels. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking) 4-20. How does learning new information make it more likely that we’ll forget things we’ve already learned?

Decay causes a structural change in how we learn and remember. Forgetting also occurs because of interference. When we learn new information, it displaces previous information. Because we store information in memory as nodes that link to one another, we are more likely to retrieve a meaning concept that is connected by a larger number of links. As we learn new information, a stimulus loses its effectiveness in retrieving old responses. (5 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 4-21. To hasten kids’ introduction to social media, a team of Finnish designers invented a block-sorting toy that also works like Twitter. It allows preverbal kids to grab colorful blocks with icons for sleeping, eating, or brushing their teeth; the kids then fit them into slots to indicate what they’re up to. The device then transmits the “status update” to light up the corresponding block-shape on the same toy in another household.

Should very young children be introduced to social media this way?

Answers will vary; some students will think social media is good for young children, while others will think it is bad for young children’s educational growth. (5 minutes, Chapter Objective 4-1; AACSB: Reflective Thinking) 4-22. In his book Blink: The Power of Thinking without Thinking, author Malcolm Gladwell argues that hallowed marketing research techniques like focus groups aren’t effective because we usually react to products quickly and without much conscious thought; thus, it’s better just to solicit consumers’ first impressions rather than getting them to think at length about why they buy. What is your position on this issue? .

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There are various concepts that students may apply to support both sides of this argument. Both classical conditioning and behavioral instrumental conditioning would support the idea that we make consumer decisions quickly and without much thought. However, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. (10 minutes, Chapter Objective 4-1, AACSB: Analytic Skills) 4-23.

Even food can facilitate recall: One study looked at how favorite recipes stimulate memories of the past. When the researchers asked informants to list three of their favorite recipes and to talk about these choices, they found that people tended to link them with memories of past events, such as childhood memories, family holidays, milestone events (such as dishes they only make on special holidays, liked corned beef and cabbage of St. Patrick’s Day), heirlooms (recipes handed down across generations), and the passing of time (e.g., only eating blueberry cobbler in the summer). Indeed, one of the most famous literary references is from the classic (3,000 page!) novel Remembrance of Things Past by Marcel Proust. The narrator dips a pastry (a “madeleine”) into his tea, and this action unleashes a flood of memories that drive the rest of the book. How might marketers try to tie these powerful food-related memories to branding strategies?

Students will think of their own memories and how senses can impact their own memories. (10 minutes, Chapter Objective 4-2, AACSB: Analytic Skills)

4-24. Some die-hard fans were not pleased when the Rolling Stones sold the tune “Start Me Up” for about $4 million to Microsoft that wanted the classic song to promote its Windows 95 launch. The Beach Boys sold “Good Vibrations” to Cadbury Schweppes for its Sunkist soft drink, Steppenwolf offered its “Born to be Wild” to plug the Mercury Cougar, and even Bob Dylan sold “The Times They Are AChangin’” to Coopers & Lybrand (now called PriceWaterhouseCoopers). Other rock legends have refused to play the commercial game, including Bruce Springsteen, the Grateful Dead, Led Zeppelin, Fleetwood Mac, R.E.M., and U2. According to U2’s manager, “Rock ‘n’ roll is the last vestige of independence. It is undignified to put that creative effort and hard work to the disposal of a soft drink or beer or car.”

Singer Neil Young is especially adamant about not selling out; in his song “This Note’s For You,” he croons, “Ain’t singing for Pepsi, ain’t singing for Coke, I don’t sing for nobody, makes me look like a joke.” What is your take on this issue? How do you react when one of your favorite songs turns up in a commercial? Is this use of nostalgia an effective way to market a product? Why or why not?

Student responses on this issue will range from support to opposition of artists selling songs for commercial application. Their reasons for either will also vary.

Some will like hearing familiar songs in commercial jingles because it grabs their attention, is more relevant to them, or prompts them to recall fond memories. Some will express support simply because it is the artists’ prerogative to sell what is theirs.

Others will oppose this practice for reasons similar to those expressed by the artists mentioned. It is likely that among business and marketing students, however, most .

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will find nothing wrong with the commercial application of popular songs. Responses should reflect the concept that nostalgia in marketing can be effective because it can prompt positive emotions in consumers. (15 minutes, Chapter Objective 4-3, AACSB: Analytic Skills) 4-25. The chapter discusses the possibility that our increasing reliance on apps to search for information is diminishing our natural abilities to think for ourselves. Do you agree?

This question should generate quite a bit of discussion. Memory is defined as a process of acquiring information and storing it over time so that it will be available when we need it. If we use an app to find our information for us constantly, the argument could be made that we no longer have the need to remember. (25 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) APPLY 4-26. Devise a product jingle memory test. Compile a list of brands that are or have been associated with memorable jingles, such as Chiquita Banana, Alka-Seltzer, McDonald’s or even webuyanycar.com. Read this list to friends, and see how many jingles are remembered. You may be surprised at the level of recall.

Students should be able to generate a large number of product jingles for this “memory test.” Most of these will be highly advertised products that students have been exposed to recently. It might be surprising to note that many of the advertised products are not targeted at the student/consumer, and yet they will have high levels of recall for the jingles. As the instructor, you may want to develop your own list of older jingles (many of which the students will not remember) that students will find interesting, such as those based on older, popular songs (i.e., “I’d like to buy the world a Coke”). (75 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking) 4-27. A physician borrowed a page from product marketers when she asked their advice to help persuade people in the developing world to wash their hands habitually with soap. Diseases and disorders caused by dirty hands—like diarrhea—kill a child somewhere in the world about every 15 seconds, and about half those deaths could be prevented with the regular use of soap. The project adapted techniques that major marketers use to encourage habitual product usage of items such as skin moisturizers, disinfecting wipes, air fresheners, water purifiers, toothpaste, and vitamins. For example, beer commercials often depict a group of guys together, because research shows that being with a group of friends tends to trigger habitual drinking! The researchers found that when people in Ghana experienced a feeling of disgust, this was a cue to wash their hands. However, as in many developing countries, toilets are actually a symbol of cleanliness because they have replaced pit latrines. So, an advertising campaign included messages that reminded people of the germs they could still pick up even in modern bathrooms— mothers and children walked out of restrooms with a glowing purple pigment on their hands that contaminated everything they touched. These images in turn triggered the habit of hand washing and the .

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project resulted in a significant increase in the number of consumers who washed their hands with soap. How can other organizations that work to improve public health, the environment, or other social issues harness our knowledge about consumer learning and habitual behavior to create or reenergize positive habits?

This would make an excellent take-home assignment with discussion following during a later class. Consider assigning specific organizations or public health initiatives to students to contemplate how to apply marketing persuasion principles.

Students should recognize the application of instrumental conditioning. Focus student work on schemas and priming. These are likely areas that will apply to public initiatives. (45 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 4-28. Collect some pictures of “classic” products that have high nostalgia value. Show these pictures to others and allow them to free associate. Analyze the types of memories that are evoked, and think about how a marketer might employ these associations in a product’s promotional strategy.

Consumers’ responses to “classic” product pictures should prove interesting to students. They should be encouraged to evaluate the types of meaning associated with products and asked to determine the relative effectiveness of various messages for different target consumer groups. The real emphasis, however, should be placed on students’ recommendations for translating the special meaning of these products for consumers into effective promotional messages. (15 minutes, Chapter Objective 4-3, AACSB: Analytic Skills) MyLab 4-29. New passive monitoring systems allow us to pay tolls automatically or simply show our phones equipped with systems like Apple Pay. Convenient, for sure. But these systems also eliminate the transparency of the connection between the stimulus and the response. As a result we don’t think as much about the costs when we use them. Is this a problem for consumers?

Student responses will vary. Some students will agree with the idea that the connection between the stimulus and the response is in someway broken. Other students will view this new payment process as just an evolution of the time-honored methods of payment that have been in use for years. (15 minutes, Chapter Objective 4-1, AACSB: Reflective Thinking) 4-30. The Snapchat app provides a way for social media users to share content that disappears after a brief time with their friends. In Europe, Google is fighting an intense legal battle over what some call the “right to be forgotten”; users want the option to dictate to Google whether it will be allowed to display results when people search about them. On the other hand, some people who believe that “information wants to be free” say that if a person posts online it should be with the expectation that the content will be permanent and that you forfeit control over others’ right to access it. Which argument is correct? .

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Student responses will vary greatly based upon person feelings. (20 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking; Ethical Understanding and Reasoning Abilities)

CASE STUDY TEACHING NOTES Chapter 4 Case Study: Gap Takes Customers Back in Time—to the Nineties!

Summary of Case Clothier Gap Inc. is using nostalgia to remind their customers of a formative decade—the nineties—in hopes of renewing interest in their brand. This case discusses the strategy of nostalgia marketing, where marketers try to dig into our memories, find positive feelings about a past period and associate it with their brand.

Suggestions for Presentation Many students will be familiar with and may be former or present customers of Gap. Consider beginning the discussion by getting opinions from students about the brand, comparing it to other current clothing brands. If possible, show one or more of the video ads to get student reactions and critique.

Suggested Answers for Discussion Questions CS 4-1. Choose a favorite brand that does not currently use nostalgia in their marketing. How could they incorporate this technique into either their product strategy or their advertising?

Studenta favorite brand that does not currently use nostalgia in their marketing.

How could they incorporate d food, technology, experience products (Disney). (10 minutes, Chapter Objective 4-3, AACSB: Application of Knowledge) CS 4-2. How has social media enabled nostalgia marketing?

Social media platforms provide a useful place for consumers to share their memories of earlier times and past experiences with products and services. Some students will be familiar with the internet trend “Throwback To,” used among social media platforms such as Instagram, Twitter and Facebook. Through these tools, users are able to post nostalgic pictures from their past accompanied by the hashtag #TBT or ThrowbackTo.i (10 minutes, Chapter Objective 4-2, AACSB: Information Technology) CS 4-3. Does nostalgia marketing only work with consumers who have memories of the era focused on in the advertising? How might others who are younger be attracted as well?

Some consumers will be attracted to a time in the past even though they have no personal experience with that era. This phenomenon has been referred to as anemoia.ii Because we can’t actually look back on the time, we take what we learn about the period and combine it with our own imagination. This would be similar to having a period of history during which we think we would have liked to have lived.

We may also be attracted to it because our parents or grandparents spoke fondly of the period. (10 minutes, Chapter Objective 4-2, AACSB: Analytical Thinking) .

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CS 4-4. We know that many people have strong personal connections with certain songs that were popular decades ago. Is it possible they will resent companies that “hijack” these tunes to sell products? Can nostalgia campaigns ever boomerang?

Some consumers may resent the use of songs that have strong personal meaning being used for “crass commercial purposes,” believing that this use of the song in this way takes away from its special meaning. A similar example would be the use of a famous and emotionally meaningful piece of visual art being used in an ad. Other consumers may feel that the musician who wrote or performed the song has “sold out;” the negative feeling towards that artist could be transferred to the consumer’s feelings about the brand using the music in its advertising.

Nostalgia advertising can also boomerang if it is perceived as being “corny” or overly emotional. These are subjective judgments and students will likely disagree on whether a particular campaign is moving or overly sentimental (e.g., Budweiser Clydesdales and puppies). (10 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students to visit a grocery store or a similar retail setting and discretely observe the behavior of individual shoppers and groups of shoppers for an extended period.

Have them record any behaviors that they witness that could be examples of the following concepts: vicarious learning, incidental learning, classical conditioning, and instrumental conditioning. Have students present their findings to the class or discuss them in groups.

Some of these learning examples may be challenging to observe directly. Students may need to draw on their own exposure to marketing communications and make inferences about why consumers are behaving as they are. Vicarious learning examples should reference the idea that the consumer learned by watching someone else’s behavior and whether s/he received positive or negative reinforcement for that behavior. Incidental learning examples should reference the idea that the consumer learned about the product without necessarily having an interest in the product or product category. Classical conditioning examples will probably be the easiest to observe because the applications of stimulus generalization and the repetition of likeable spokes-characters or endorsers as cues are likely to be present. Instrumental conditioning examples may include frequency rewards or gifts with purchase. (45 minutes, Chapter Objectives 4-1, 4-2, AACSB: Application of Knowledge)

2.

Have students recall their first act of “green” consumption. Ask them to list the product involved and the sequence of actions they took. Ask them why they remembered it and how significant that was to their subsequent behaviors.

This individual project can be modified to reflect a number of consumption acts. If .

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you choose to use green consumption, it provides an opportunity to tie the exercise to the concept of green marketing (chapter 1) and perceptions (chapter 2). To relate the project to the current chapter, help students identify how the consumption event is associated with other nodes in their minds and ask them to reflect specifically on how repetition or rehearsal may have strengthened the associations to help them recall the specific event. (45 minutes, Chapter Objective 4-3 AACSB: Reflective Thinking) 3.

Ask students to narrate the sequence of events that led to their first access and registration at a social networking site (www.facebook.com, www.myspace.com, www.orkut.com or others). Have them list some of the positive and negative reinforcements they have encountered at the site since they joined.

The exercise reinforces applications of instrumental conditioning of the consumer decision-making process, which will be explored in greater depth later in the text.

It is important to note whether students distinguish between positive reinforcement (the presence of a reward in exchange for their behavior) and negative reinforcement (avoiding a negative outcome or the absence of a reward). In the context of Facebook, students may feel rewarded when someone likes their status.

Students may also join or participate to avoid feeling left out or lonely because they do not see updates from others. (25 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking)

4.

Have students devise their own classical conditioning experiments involving a “green” product such as organic milk or similar products. Let them utilize UCS, CS, and CR. Look for students to identify the part of their experiment that is the unconditioned stimulus (UCS), which generates the desired response on its own; the conditioned stimulus (CS), which generates the response because of its association with the unconditioned stimulus; and the (desired) conditioned response (CR) that should ultimately be associated with the conditioned stimulus. (30 minutes, Chapter Objective 4-1, AACSB: Reflective Thinking)

5.

Many brands attempt to capitalize on positive associations that consumers have for competing brands by copying certain characteristics. Have students identify an example of this and relate it to the halo effect.

Students are likely to bring examples of private label or generic brands that try to leverage similar packaging to capitalize on consumers’ positive associations with national brands. (15 minutes, Chapter Objective 4-1, AACSB: Reflective Thinking)

6.

Ask students to write their favorite brand name. They should then draw an associative network around the brand that includes three attributes/features, three benefits, three competitors, attributes, and benefits for the competing brands, etc.

They can be allowed to add personal opinions and feelings about the brand to the network. .

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The exercise should help students visualize the web of connections between nodes that characterize the associative network theory of memory. You can tie the exercise to further exploration of the concept of the evoked set (since they identify competitors). Since they start with brand identification, ask them to identify when the related nodes are brand-specific (claims), ad specific, product category specific, or related to evaluative reactions (positive or negative emotions). (20 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking) 7.

Have students create their schema for “made in the U.S.,” “made in Japan,” and “made in Germany” cars. What features and attributes would they include in each of the schemas?

Student associations with each schema will vary. Look for students to recognize that a schema is a cognitive framework that is developed through experience. Remind students that it is easier for consumers to encode information that is consistent with an existing schema than it is to encode information that is incongruent with our expectations based on experiences. (20 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

8.

Assign students to locate a print advertisement that is a clear example of a marketer employing the concepts of stimulus generalization or stimulus discrimination. Have students present the ads to the class.

For stimulus generalization, students may select private label/generic brands that are packaged to look like the national counterpart, examples of companies that use family branding, product line extensions, or brands that license a brand name. For stimulus discrimination, students are likely to find examples where a national brand clarifies what distinguishes its brand from private label/generic competitors, and/or urges consumers not to settle for cheap imitations. (20 minutes, Chapter Objective 41, AACSB: Reflective Thinking and Communication Abilities)

9.

Have students identify an example of both positive reinforcement and negative reinforcement in a marketing context. As students present their findings in class, have the class discuss how effective each example is at establishing the desired or intended behavior.

Examples will vary. In addition to looking for students to differentiate between positive and negative reinforcement, also look for evidence that they understand the difference between negative reinforcement and punishment. (30 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking and Communication Abilities)

10.

Ask students to observe their friends, roommates, and co-workers for an extended period to identify an incidence of modeling as it relates to a celebrity. Have them note how the four conditions of modeling are met. Is the celebrity a brand endorser?

How might their behavior be positive/negative for the marketers of the brands(s) that the celebrity endorses? .

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The four conditions the student should include in his/her response include: • The consumer’s attention must be directed to a model that is desirable to emulate for reasons of attractiveness, competence, status, or similarity.

• The consumer must remember what is said or done by the model.

• The consumer must convert this information into actions.

• The consumer must be motivated to perform these actions.

When celebrities are paid endorsers of a product, students may respond differently than if the celebrity appears to wear or use a product without being compensated.

However, many students recognize that celebrities are given products in the hopes they will use them and influence others to use them. When you speak about negative effects of celebrity behaviors, students may think of Tiger Woods. You may also bring up the publicity stunt from Abercrombie & Fitch where they announced they would pay cast members of MTV’s show Jersey Shore not to wear their apparel because they did not want to be associated with the cast members’ images (Summer 2011). (90 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking and Communication Abilities) 11.

Have students think of specific examples where their sensory, short-term, and longterm memory have been activated by marketing information.

Sensory memory is activated when consumers are exposed to marketing stimuli. If the information passes through an attentional gate, it can be stored acoustically or semantically for a short period in short-term memory. To make it to long-term memory, students should recognize marketing efforts to increase the likelihood of rehearsal (e.g. repetitions, catchy slogans/jingles). (15 minutes, Chapter Objective 43, AACSB: Reflective Thinking)

12.

Ask each student to complete the following assignment based on a popular national brand: Collect as many pieces of promotional material (ads, direct mail, etc.) as possible for the brand. Based on this promotional evidence, identify any bits of information that marketers intend to be associated with the brand. Create an associative network for the brand, integrating the documented nodes of information with other nodes.

This project gives students the opportunity to create a model from marketing stimuli instead of their memories, which may give them a different perspective on what the brand marketers are trying to communicate. It may provide an interesting discussion to compare what the student recalled on his/her own about the brand to what the marketing materials are trying to communicate, and why there are differences.

Students will need time (1-2 weeks) to collect the marketing materials for the brand.

Students will most likely identify nodes associated with brand claims, the ads, and the product category. (75 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

13.

Assign each student to ask three friends to list as many brands as they can remember for a product class of their choosing. Have them ask each friend questions about each brand on the list to get a better idea of why each might have been recalled. Then, have them identify whether familiarity, salience, or other factors influencing recall were .

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present. Were there differences between the first brands recalled and the others?

In general, familiarity with a brand, the salience/importance of the brand, and the novelty associated with the presentation of the brand are likely to enhance its recall.

The exercise provides students with an opportunity to analyze the role of each factor for their friends, which should help reinforce how these factors affect recall. (45 minutes, Chapter Objective 4-3, AACSB: Analytic Skills) Group Projects 1.

Create a long list of brand slogans from the past 10 or more years—e.g., Ford, where quality is job one; I want my MTV; Always Coca-Cola; Pizza-pizza (Little Caesar’s); BMW: the ultimate driving machine. Divide the class into teams or simply in half. Read the brand slogans one at a time, omitting the brand name.

Award points to the first team to correctly identify the brand associated with each slogan. Afterward, point out how memory was strong, even for older slogans (some may be able to identify slogans from when they were very young children). Discuss why this is the case according to the principles of memory in the chapter.

Students should recognize that they are retrieving brand information from long-term memory. They may note differences are cognitive, physiological and situational factors that helped them retrieve (or caused them to forget) the slogans. Depending on the brands selected, they also may recognize stronger memories for pioneering brands and the effects of the brand spacing out repeated messages. (20-30 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

2.

Match the brand name to the slogan in class. Provide a list of 10 or 20 brand names along with as many slogans and have groups match them. As a homework assignment, they can then be asked to assume the role of an advertising agency and try to develop better (or humorous) slogans for these products. These can be presented in class and students can vote on the best slogans that were developed.

This is a fun exercise, and can help reinforce the idea that salience and novelty contribute to recall. The homework assignment is an opportunity for students to flex their creative muscles and the competitive aspect may be enjoyable for the students. (20-30 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

3.

Have student groups design an experiment that would demonstrate the occurrence of either classical conditioning or instrumental conditioning. Have them conduct their experiment on members of the class.

Individual project idea #4 asks an individual student to design an experiment to demonstrate the occurrence of classical conditioning. If students select classical conditioning, ask them to identify the part of their experiment that is the unconditioned stimulus (UCS), which generates the desired response on its own; the conditioned stimulus (CS), which generates the response because of its association with the unconditioned stimulus; and the (desired) conditioned .

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response (CR) that should ultimately be associated with the conditioned stimulus.

For instrumental conditioning, ask them to identify the behavior, the reward, and the desired consumer response. (45 minutes, Chapter Objective 4-1, AACSB: Reflective Thinking) 4.

Have student groups visit a grocery store. How are marketers taking advantage of consumer ability to “chunk” information through strategies used on packaging?

Brand names (which represent a chunk of information about the brand), images and product descriptors on labels (e.g. natural, which represents a chunk of associations with the word) are likely to show up in student responses. (30 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking,)

5.

Ask groups of students to design an experiment to test the process of state-dependent retrieval. Have them conduct the experiment on ten individuals, five in a moodcongruent condition and five in a mood-incongruent condition. Have the groups present their experiments and findings to the class.

Students may use films or candy to alter moods, and should maintain a common recall task across the two groups so the mood congruency is the only manipulated variable. (90 minutes, Chapter Objective 4-3, AACSB: Analytic Skills and Communication Abilities)

6.

Have student groups create a list of things that make them nostalgic. Then, during a period of a few days, have each of them identify ways that marketers of products targeted toward them have focused on any of these elements of nostalgia. Can they identify any nostalgia brands that are focused at their feelings of nostalgia? Have them share their findings with group members.

Student responses should reflect their understanding that nostalgia describes a bittersweet emotion where we view the past with both sadness and longing. Student examples are likely to include music, food and beverages, which are often salient to students. Nostalgia brands may include retro brands (e.g. the Snoopy Sno Cone Machine that was recently reintroduced by Sababa Toys). (20-30 minutes, Chapter Objective 4-3, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.levis.com. Levis Strauss is a brand that is 150 years old. However, the long dominant player in the jeans and apparel industry has struggled in recent years to regain market share that it has lost to brands that are more youthful. Visit their website and discuss what strategies the company appears to be using to attract Generation Y (30 million plus individuals born between 1986 and 2002). What .

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forms of learning is the company attempting to use to reacquire a youthful audience? Be specific in your description and provide illustrations of your ideas from the website to support chapter concepts.

Levis.com promotes its products with appeals to individualism, innovation/progress, achievement and social activism. They use social media (blogs, Facebook, twitter, and mobile updates) to communicate with and connect to their target audience. They may use rewards to motivate some behaviors (e.g. free shipping for a purchase > $100; sign up for email and we’ll give you a code for free shipping) and they use attractive models to display their apparel. Students may categorize the use of attractive model as an effort to encourage observational learning or they may categorize it as an application of classical conditioning, since the marketer may anticipate positive feelings toward the model will transfer to the apparel s/he is wearing. Students may also identify a second application of classical conditioning: the efforts toward social activism may generate goodwill that transfers to Levis. (25 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking,) 2.

Go to www.gogorillamedia.com. Become familiar with the advertising product offerings from this company. What previously useless space is this company turning into valuable advertising space? What advertisers might be most interested in the various types of ad space options? How would each affect learning and memory?

What memory processes would be most critical to the success of the different ad options?

The URL directs students to a blog for an agency that specializes in non-traditional media, including guerrilla marketing. Different ad space options may help firms break through advertising clutter, which will increase the likelihood of exposure.

Exposure is a key to familiarity. Novel stimuli are also more likely to be recalled.

This includes novel presentations of messages, like those offered by non-traditional media. Students can reference Figure 4.3, which summarizes the memory process.

(20 minutes, Chapter Objective 4-2, AACSB: Reflective Thinking)

“Throwback Thursday.” Wikipedia. https://en.wikipedia.org/wiki/Throwback_Thursday (accessed July 20, 2018). ii Holland “How Nostalgia Helps Brands Connect With Millennials,” Skyword (August 16, 2016), https://www.skyword.com/contentstandard/creativity/how-nostalgia-helps-brands-connect-with-millennials/ (accessed July 20, 2018). i

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Chapter 5: Motivation and Affect

Chapter 5: MOTIVATION AND AFFECT

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 5-1. Products can satisfy a range of consumer needs.

5-2. Consumers experience a range of affective responses to products and marketing messages.

5-3. The way we evaluate and choose a product depends on our degree of involvement with the product, the marketing message, or the purchase situation.

CHAPTER SUMMARY Products can satisfy a range of consumer needs.

Marketers try to satisfy consumers’ needs, but the reason any product is purchased can vary widely. The identification of consumer motives is an important step to ensure that a product will meet the appropriate need(s). Traditional approaches to consumer behavior have focused on the abilities of products to satisfy rational needs (utilitarian motives), but hedonic motives (such as the need for exploration or fun) also guide many purchase decisions. Maslow’s Hierarchy of Needs demonstrates that the same product can satisfy different needs.

Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. A goal has valence, which means that it can be positive or negative. We direct our behavior toward goals we value positively; we are motivated to approach the goal and to seek out products that will help us to reach it. However, we may also be motivated to avoid a negative outcome rather than achieve a positive outcome.

Consumers experience a range of affective responses to products and marketing messages.

Affective responses can be mild (evaluations), moderate (moods), or strong (emotions).

Marketers often try to elicit a positive emotional response via advertising or other communication channels so that consumers form a bond (or lovemark) with their offering. A lot of the content on social media reflects affective responses that people post, so these platforms are a rich source of information for marketers to gauge how consumers feel about their brands.

The way we evaluate and choose a product depends on our degree of involvement with the product, the marketing message, or the purchase situation.

Product involvement can range from low where consumers make purchase decisions based on inertia, to high where they form strong bonds with favorite brands (cult products). Marketing strategies also need to consider consumers’ extent of engagement with the messages about their products and the environments in which consumption of these products occur.

CHAPTER OUTLINE I.

The Motivation Process: Why Ask Why? Motivation refers to the processes that lead people to behave as they do. .

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Section 2: Internal Influences on Consumer Behavior

It occurs when a need that the consumer wishes to satisfy is aroused. The desired end state is the consumer’s goal. Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension.

Marketers are just beginning to explore the effects of incidental brand exposure.

Use Chapter Objective 1 Here Use Key Term ‘Motivation,’ ‘Incidental Brand Exposure’ Here Use Review Question 5-1 Here

A. Motivational Strength i. Drive Theory Whether the need is utilitarian or hedonic, the magnitude of the tension it creates determines the urgency the consumer feels to reduce it. We call this degree of arousal a drive.

Drive theory focuses on biological needs that produce unpleasant states of arousal. The arousal this tension causes motivates us to reduce it and return to a balanced state called homeostasis.

Retail therapy – the act of shopping to restore balance in life – is an example. ii. Expectancy Theory Expectancy theory suggests that expectations of achieving desirable outcomes – positive incentives – rather than being pushed from within motivate our behavior.

We use the term drive to loosely refer to both physical and cognitive processes.

The placebo effect refers to the tendency for your brain to convince you that a fake treatment is the real thing.

Use Key Term ‘Drive,’ ‘Drive Theory,’ ‘Homeostasis,’ ‘Retail Therapy,’ ‘Placebo Effect,’ ‘Hedonic Consumption’ Here Use Consumer Behavior Challenge 5-11, 5-12 Here B. Motivational Direction Motives have direction as well as strength. They are goal-oriented in that they drive us to satisfy a specific need. i. Needs versus Wants A need reflects a basic goal such as keeping yourself nourished or .

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protected from the elements. A want is a specific pathway to achieving this objective.

When we focus on a utilitarian need, we emphasize the objective, tangible attributes of products. Hedonic needs are subjective and experiential.

Hedonic consumption refers to the multisensory, fantasy, and emotional aspects of consumers’ interactions with products.

C. Motivational Conflicts Consumers experience different kinds of motivational conflicts that can impact their purchase decisions.

A goal has valence, which means that it can be positive or negative. We direct our behavior toward goals we value positively; we are motivated to approach the goal and to seek out products that will help us to reach it.

Because a purchase decision can involve more than one source of motivation, consumers often find themselves in situations in which different motives, both positive and negative, conflict with one another. Marketers attempt to satisfy consumers’ needs by providing possible solutions to these dilemmas. (Figure 5.1) i. Approach-Approach Conflict Approach-approach conflict occurs when a person must choose between two desirable alternatives.

The theory of cognitive dissonance is the idea that people have a need for order in their lives and that a state of dissonance (tension) exists when beliefs or behaviors conflict with one another. We resolve the conflict that arises when we choose between two alternatives through a process of cognitive dissonance reduction.

Postdecision dissonance occurs when a consumer must choose between t two products, both of which possess good and bad qualities. ii. Approach-Avoidance Conflict Approach–avoidance conflict occurs when we desire a goal but wish to avoid it at the same time. iii. Avoidance-Avoidance Conflict Avoidance-avoidance conflict is a situation that contains only undesirable alternatives (“caught between a rock and a hard place”).

Use Key Term ‘Drive,’ ‘Approach-Approach Conflict,’ ‘Theory of Cognitive Dissonance,’ ‘Approach-Avoidance Conflict,’ ‘Avoidance-Avoidance Conflict,’ Here Use Review Question 5-2 and 5-3 Here

.

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Section 2: Internal Influences on Consumer Behavior

D. How We Classify Consumer Needs i. Murray’s Psychogenic Needs Psychologist Henry Murray developed an inventory that delineates a set of psychogenic needs that result in specific behaviors. This framework is the basis for a number of personality tests that modern-day psychologists use, such as the Thematic Apperception Test (TAT).

E. Specific Needs and Buying Behavior Other motivational approaches have focused on specific needs and their ramifications for behavior. For example, individuals with a high need for achievement strongly value personal accomplishment.

Some needs that are relevant to consumer behavior include: • Need for affiliation (to be in the company of other people) • Need for power (to control one’s environment) • Need for uniqueness (to assert one’s individual identity).

F. Maslow’s Hierarchy of Needs The Hierarchy of Needs was originally developed to understand personal growth and how people attain spiritual “peak experiences.” Marketers later adapted the work to understand consumer motivations.

Maslow’s hierarchical structure implies that the order of development is fixed— that is, we must attain a certain level before we activate a need for the next, higher one. (Figure 5.2) The order of the hierarchy is: • Physiological • Safety • Social • Esteem • Self-actualization Use Chapter Objective 2 Here Use Key Term ‘Hierarchy of Needs’ Here Use Review Question 5-4, 5-5, 5-6, 5-16 Here II.

Affect Affect is our emotional response to anything, such as a product.

A. Types of Affective Responses Evaluations are valenced (i.e., positive or negative) reactions to events and objects that are not accompanied by high levels of physiological arousal. Moods involve temporary positive or negative affective states accompanied by moderate levels of arousal. Emotions such as happiness, anger, and fear tend to be more intense and often relate to a specific triggering event. .

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Helping others as a way to resolve one’s own negative moods is known as negative state relief. Sadvertising is the use of inspirational stories that manipulate our emotions. i. Mood Congruency Mood congruency refers to the idea that our judgments tend to be shaped by our moods.

Use Key Term ‘Affect,’ ‘Evaluations,’ ‘Moods,’ ‘Emotions,’ ‘Negative State Relief,’ ‘Sadvertising,’ ‘Mood Congruency,’ ‘Lovemark,’ ‘Happiness’ Here Use Review Question 5-7 and 5-8 Here Use Consumer Behavior Challenge 5-15 Here B. Positive Affect Our feelings also can serve as a source of information when we weigh the pros and cons of a decision.

A passionate commitment to one brand has been termed a lovemark. i. Happiness Happiness is a mental state of well being characterized by positive emotions.

Evidence suggests we are “wired” to engage in material accumulation, which is what researchers term the instinct to earn more than we can possibly consume, even when this imbalance makes us unhappy.

C. Negative Affect Marketers do not always want to make us happy. i. Disgust Researchers believe the primate emotion of disgust may have evolved to protect us from contamination.

Advertisers now realize that it actually can be productive to elicit extreme feelings such as disgust to get their message across. ii. Envy Envy is a negative emotion associated with the desire to reduce the gap between oneself and someone who is superior on some dimension.

Benign envy occurs when we believe the other person actually deserves a coveted brand (like an iPhone). Malicious envy occurs when the consumer believes the other person does not deserve his or her superior position. iii. Guilt Guilt is an individual’s unpleasant emotional state associated with .

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Section 2: Internal Influences on Consumer Behavior

possible objections to his/her actions, inaction, circumstances, or intentions. iv. Embarrassment Embarrassment is an emotion driven by a concern for what others think about us.

D. How Social Media Tap into Our Emotions Proponents of a happiness economy claim that well-being is the new wealth, and social media technology is what allows us to accumulate it.

Researchers report that the longer people stay on Facebook, the worse they feel.

Apparently this activity makes you feel like you’re wasting your life; people say that compared to browsing the internet (or perhaps, studying) Facebook checking is less meaningful or useful.

A technique called sentiment analysis refers to a process (sometimes also called opinion mining) that scours the social media universe to collect and analyze the words people use when they describe a specific product or company. When people feel a particular way, they are likely to choose certain words that tend to relate to the emotion. From these words, the researcher creates a word-phrase dictionary (sometimes called a library) to code the data.

Use Key Term ‘Disgust,’ ‘Envy,’ ‘Guilt,’ ‘Embarrassment,’ ‘Happiness Economy’, ‘Sentiment Analysis,’ ‘Word-Phrase Dictionary’ Here Use Chapter Objective 3 Here Use Consumer Behavior Challenge 5-13, 5-14 Here III.

Consumer Involvement Involvement is a person’s perceived relevance of the object based on their inherent needs, values, and interests. (Figure 5.3) A person’s degree of involvement is a continuum that ranges from absolute lack of interest in a marketing stimulus at one end to obsession at the other. Inertia describes consumption at the low end of involvement, where we make decisions out of habit because we lack the motivation to consider alternatives. (Table 5.1) Use Key Term ‘Involvement,’ ‘Inertia’ Here Use Review Question 5-9, 5-17 Here A. Types of Involvement i. Product Involvement Product involvement is a consumer’s level of interest in a particular product.

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Chapter 5: Motivation and Affect

Product decisions are likely to be highly involving if the consumer believes there is a lot of perceived risk.

Figure 5.4 lists five types of risk.

When a consumer is highly involved with a specific product s/he exhibits brand loyalty: Repeat purchasing behavior that reflects a conscious decision to continue buying the same brand.

Consumers engage in brand switching, even if our current brand satisfies our needs. Variety-seeking is, the desire to choose new alternatives over more familiar ones. ii. Strategies to Increase Product Involvement 1. Mass customization 2. DIY (Do It Yourself) 3. Co-creation 4. Gamification iii. Message Involvement Media vehicles possess qualities that influence our motivation to pay attention to what they tell us – this is know as message involvement.

Print is a high-involvement medium. Television is a low-involvement medium. iv. Strategies to Increase Message Involvement 1. Use novel stimuli, such as unusual cinematography, sudden silences, or unexpected movements, in commercials.

2. Use prominent stimuli, such as loud music and fast action, to capture attention.

3. Include celebrity endorsers.

4. Provide value that customers appreciate.

5. Invent new media platforms to grad attention.

6. Encourage viewers to think about actually using the product.

7. Create spectacles where the message is itself a form of entertainment. v. Situational Involvement Situational involvement describes engagement with a store, website, or a location where people consumer a product or service. vi. Strategies to Increase Situational Involvement 1. Personalization 2. High tech 3. Subscription boxes. .

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Section 2: Internal Influences on Consumer Behavior

Use Key Term ‘Product Involvement,’ ‘Brand Loyalty,’ ‘Variety-Seeking,’ ‘Mass Customization,’ ‘DIY (Do It Yourself),’ ‘Co-Creation,’ ‘Message Involvement,’ ‘Situational Involvement’ Here Use Review Question 5-10, 5-18 Here End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1. Net Profit The Nielsen research company wanted to see if the social media activity people participated in while they watched a TV show related to how involved they were with the action in the program. They found a strong relationship with the number of messages on Twitter during the same segments on these shows when they aired on live TV. REVIEW 5-1.

What is motivation and why is this idea so important to marketers?

Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. Once a need has been activated, a state of tension exists that drives the consumer to attempt to reduce or eliminate the need.

Marketers try to create products and services that will provide the desired benefits and permit the consumer to reduce this tension. (5 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

5-2.

Describe three types of motivational conflicts, citing an example of each from current marketing campaigns.

In an approach–approach conflict, a person must choose between two desirable alternatives. A student might be torn between going home for the holidays and going on a skiing trip with friends. Many of the products and services we desire have negative consequences attached to them as well. We may feel guilty or ostentatious when buying a status-laden product such as a fur coat, or we might feel like a glutton when contemplating a tempting package of Twinkies. An approach–avoidance conflict exists when we desire a goal but wish to avoid it at the same time. Sometimes consumers find themselves “caught between a rock and a hard place.” They may face a choice with two undesirable alternatives, for instance, the option of either throwing more money into an old car or buying a new one. Marketers frequently address an avoidance–avoidance conflict with messages that stress the unforeseen benefits of choosing one option (e.g., by emphasizing special credit plans to ease the pain of car payments). (10 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking,)

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5-3.

Explain the difference between a need and a want.

The specific way a need is satisfied depends on the individual’s unique history, learning experiences, and cultural environment. A want is the particular form of consumption used to satisfy a need. For example, two classmates may feel their stomachs rumbling during a lunchtime lecture. If neither person has eaten since the night before, the strength of their respective needs (hunger) would be about the same. However, the ways each person goes about satisfying this need might be quite different. (5-7 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

5-4.

What is cognitive dissonance?

The theory of cognitive dissonance is based on the premise that people have a need for order and consistency in their lives and that a state of tension is created when beliefs or behaviors conflict with one another. The conflict that arises when choosing between two alternatives may be resolved through a process of cognitive dissonance reduction, where people are motivated to reduce this inconsistency (or dissonance) and thus eliminate unpleasant tension. (5 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

5-5.

Name the levels in Maslow’s Hierarchy and give an example of a marketing appeal that is focused at each level.

•

Physiological: ads that promise to provide a cure for hunger or thirst fall in this category • Safety: insurance companies, security companies and social marketing campaigns often focus on safety • Social: alcohol companies, fragrance companies, and oral hygiene companies often focus on social/belonging (as do dating websites) • Esteem: luxury goods, educational institutions, and athletic footwear/apparel manufacturers often focus on esteem • Self-actualization: spiritual organizations, some charities and the military focus on self-actualization You can also ask students to come up with their own examples for a single product to extend this exercise (see Application Exercise 1). (25 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking) 5-6.

List three types of perceived risk and give an example of each?

Perceived risk means that a person believes there may be negative consequences if he or she chooses the wrong option. One type of risk is monetary risk. An example might be buying a lower priced product that also has a lower quality instead of a more expensive product with a better reputation for quality. Social risk affects self-esteem and selfconfidence. An example of a social risk would be in choosing one brand of headphones or cell phone over another, more popular brand. Psychological risks are based on affiliation and status. On type of psychological risk might be in the purchase of an .

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Section 2: Internal Influences on Consumer Behavior

expensive luxury automobile. (5 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 5-7.

What is the difference between a mood and an emotion?

Moods involve temporary positive or negative affective states accompanied by moderate levels of arousal. Moods tend to be diffuse and not necessarily linked to a particular event (e.g. you might have just “woken up on the wrong side of the bed this morning”).

Emotions such as happiness, anger, and fear tend to be more intense and often relate to a specific triggering event such as receiving an awesome gift. (5 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking)

5-8.

What is mood congruency and how to advertisers use it?

Mood congruency refers to the idea that our judgments tend to be shaped by our moods.

For example, consumers judge the same products more positively when they are in a positive as opposed to a negative mood. This is why advertisers attempt to place their ads after humorous TV programming or create uplifting ad messages that put viewers in a good mood. Similarly, retailers work hard to make shoppers happy by playing “up” background music and encouraging staff to be friendly. (5 minutes, Chapter Objective 53, AACSB: Reflective Thinking)

5-9.

What is consumer involvement? How does this concept relate to motivation?

We can define involvement as “a person’s perceived relevance of the object based on their inherent needs, values, and interests.” The word object is used in the generic sense.

It refers to a product (or a brand), an advertisement, or a purchase situation. Consumers can find involvement in all these objects. Involvement increases consumer motivation to process information about the object. (10 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking)

5-10. What are some strategies marketers can use to increase consumers’ involvement with their products?

• • • • • • •

Appeal to the consumers’ hedonic needs. For example, ads using sensory appeals generate higher levels of attention.

Use novel stimuli, such as unusual cinematography, sudden silences, or unexpected movements in commercials.

Use prominent stimuli, such as loud music and fast action, to capture attention in commercials. In print formats, larger ads increase attention. In addition, viewers look longer at colored pictures as opposed to black and white.

Include celebrity endorsers to generate higher interest in commercials.

Provide value customers appreciate.

Let customers make the messages (user-generated content).

Invent new media platforms to grab consumer attention. .

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Create spectacles/performances where the message is a form of entertainment. (25 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 5-11. Does money buy happiness? Why or why not?

Happiness is a mental state of well-being characterized by positive emotions. What makes us happy? Although many of us believe owning more shiny material goods is the key to happiness, research says otherwise. Several studies have reported that a greater emphasis on acquiring things actually links to lower levels of happiness. Younger people are more likely to associate happiness with excitement, whereas older people are more likely to associate this state with feelings of calm and peacefulness. (5 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 5-12. Many consumers today seem to be obsessed with monitoring their emotions. They post about their feelings, track their sleep patterns, and fret about how often they’re “liked” on social media. Should happiness be quantified?

Student responses will vary. Students should include a discussion on the difference between happiness and material accumulation. The discussion should also include things marketers do to make us happy, and what they do that results in a negative effect. Types of negative affects including disgust, envy, guilt, and embarrassment should also be identified. (15 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 5-13. What happens when advertising is embarrassing? A laxative product recently sponsored an Overnight Relief Sweepstakes with a slogan to suggest how the brand is supposed to work: “Enter today. Win tomorrow.” It’s become fairly commonplace in the United States to encounter ads for “unmentionables” like toilet paper, condoms, tampons, and erectile dysfunction medications such as Viagra and Cialis. Is nothing sacred? Should “sensitive” products be advertised in public?

Student responses will vary. Students should define embarrassment as an emotion driven by a concern for what others think about us. To be embarrassed, we must be aware of, and care about, the audience that evaluates us. Students should explain that consumers get creative as they try to reduce embarrassment; they might try to hide a sensitive product among others in a shopping basket or choose a cashier who looks “more friendly” when they check out. (15 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 5-14. A group of psychologists argued that we need to revise Maslow’s Hierarchy of Needs.

They propose we should delete “self-actualization” from the pinnacle and replace it with “parenting.” Right below this peak, they added “mate retention” and “mate acquisition.”

They claim that too many people see Maslow’s triangle as “aspirational” – a description .

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of what fulfilled individuals “should” do – rather than as an explanation of how human motivation actually works. Their perspective is evolutionary; if the only purpose of art, music, and literature is self-fulfillment, now does that contribute to the survival of the species? One of the proponents of this view observes, “If you are a good poet or a good musician, there is a reproductive payoff; women are attracted to men with these abilities.

What a man is saying when he is playing his guitar up there is ‘look at my good genes.’”

What do you think – do our motivations to buy, have, and be ultimately come down to survival of our gene pool?

Survival of the gene pool was typically designated to the bottom of the triangle as a physiological need, along with food and water. The positioning at the bottom of the triangle suggests the reproductive process is fundamental or part of the foundation, not something people aspire to do once they have accomplished everything else. That said, studies in biology suggest animals (in general) are less likely to reproduce when food and water resources are scarce. Students may have different opinions about when the desire to reproduce has the potential to drive consumer behavior. (15 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

5-15. The text discusses a study that says our moods actually get worse when we spend a lot of time on Facebook because we feel like we’re wasting our time. Even Facebook acknowledges that “Simply broadcasting status updates wasn’t enough; people had to interact one-on-one with others in their network to gain great personal benefits from the service. How might Facebook modify the platform to encourage users to post more ”quality” content?

Responses will vary by student. Students should define mood as a temporary positive or negative affective state accompanied by moderate levels of arousal. Students should address why our moods get worse the longer we stay on Facebook. (15 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking) APPLY 5-16. Our online behaviors also can satisfy needs at different levels of Maslow’s Hierarchy of Needs, especially when we participate in social networks such as Facebook. Web-based companies can build loyalty if they keep these needs in mind when they design their offerings: • We satisfy physiological needs when we use the Web to research topics such as nutrition or medical questions.

• The Web enables users to pool information and satisfy safety needs when they call attention to bad practices, flawed products, or even dangerous predators.

• Profile pages on Facebook let users define themselves as individuals.

• Online communities, blogs, and social networks provide recognition and achievement to those who cultivate a reputation for being especially helpful or expert in some subject. .

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•

Users can seek help from others and connect with people who have similar tastes and interests.

• Access to invitation-only communities provides status.

• Spiritually based online communities can provide guidance to troubled people.

Interview people you know about their motivations to participate in social media. Ask them to provide a list of the platforms they access most, then for each probe about their reasons to visit these. What needs do these sites appear to satisfy? How might these insights help you to devise ideas for new social media products?

Student responses will vary based on the users interviewed and types of social media used. Responses should recognize how social media fills needs and helps to create an identity for the user. (2 hours, Chapter Objective 5-1, AACSB: Reflective Thinking) 5-17. Interview members of a celebrity fan club. Describe their level of involvement with the “product,” and devise some marketing strategies to reach this group.

Student responses to this exercise might consider a variety of celebrities—movie stars, musicians, and politicians—living and dead. They might be asked to consider the Elvis Presley fan club phenomenon in terms of the tremendous marketing opportunities that have derived from tours of his home in Memphis (Graceland), his personal property displayed in “museums” (guitars, clothing, music awards, etc.), his “signature” hairstyle and sideburns, other actors’ and musicians’ remakes of his movies and songs, television programs, Elvis parades, books, postage stamps, etc. The quickest way to do this project is to “go online” to a “favorite site.” Most of the recognized search engines (e.g., Yahoo!) will have ways for you to reach the celebrity sites. (Possible Field Project Idea) (30 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking) 5-18. The text notes that marketers continue to push the envelope to create spectacles that will increase consumer involvement with their messages: • A British show broadcast a group of skydivers who performed a dangerous jump to create a human formation in the air that spelled out the letters H, O, N, D, and A. • Honda built a musical road in Lancaster, PA; grooves in the cement create a series of pitches that play the William Tell Overture when a car drives over them.

• A New York campaign for Jameson Irish Whiskey projects an ad onto a wall—an operator scans the street for pedestrians who fit the brand’s profile and inserts live text messages directed at them into the display.

• To promote the 25th anniversary of the Michael Jackson album Thriller, which featured zombies dancing in a music video of the title song, Sony BMG staged a performance in the London Underground. A group of “passengers” suddenly burst into a zombie-like dance before they disappeared into the crowd, and this videotaped scene was posted online. The video inspired similar performances in other countries, and within a week more than a million people had downloaded these films. In a similar stunt for T-Mobile, several hundred commuters at the Liverpool rail station broke into a dance; more than 15 million people watched the performance on YouTube in the following weeks. These (not so) spontaneous flashmobs have become increasingly common. .

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Section 2: Internal Influences on Consumer Behavior

Can you top these? Imagine that a client hires you to launch a new energy drink. Propose a spectacle you could engineer that would attract potential customers to learn more about your product.

Student responses to this question will vary considerably. They might include popular music, celebrities, or trends including dance moves, and activities. Concepts from the text such as mood, happiness, positive affects etc. might also be discussed. (30 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking) MyLab 5-19. The basic lesson of Maslow’s Hierarchy of Needs is that we must first satisfy basic needs before we progress up the ladder (a starving man is not interested in status symbols, friendship, or self-fulfillment). This implies that consumers value different product attributes depending on what is currently available to them. In today’s economic environment, the hierarchy helps to explain why many consumers take a closer look at the price and reliability of a product rather than whether it will impress their friends. How do you believe the recession changed the way consumers evaluate products? Do you agree that the priorities many now place on “value-priced” brands is the “new normal,” or will our attitudes change now that the economy has improved?

Based in large part on individual student’s impact from the Great Recession, responses will vary greatly. Many will voice opinions that the ‘value’ markets of today are here to last. Others will view them as passing soon into history. (10 minutes, Chapter Objective 51, AACSB: Reflective Thinking) 5-20. Our emotional reactions to marketing cues are so powerful that some high-tech companies study mood in small doses (in 1/30 of a second increments) as they analyze people’s facial reactions when they see ads or new products. They measure happiness as they look for differences between, for example, a true smile (which includes a relaxation of the upper eyelid) and a social smile (which occurs only around the mouth). Whirlpool used this technique to test consumers’ emotional reactions to a yet-to-be-launched generation of its Duet washers and dryers. The company’s goal: To design an appliance that will actually make people happy. Researchers discovered that even though test subjects said they weren’t thrilled with some out-of-the-box design options, such as unusual color combinations, their facial expressions said otherwise. Does the ability to study our emotional reactions at such a specific level give marketers an unfair advantage?

Responses to this question will center around what students believe the goals of marketing to be. The idea of creating products that actually elicit happiness is laudable; however, if they believe the goal to be that selling a product at all costs, then their viewpoint will be quite different. (10 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking, Ethical Understanding and Reasoning Abilities)

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Chapter 5: Motivation and Affect

CASE STUDY TEACHING NOTES Chapter 5 Case Study: The Louis Vuitton $2900 Smartwatch – High Tech or High Fashion? It’s All in the Eye of the Beholder Summary of Case When Apple introduced the Apple Watch in 2015, it was unclear whether the company would revolutionize the watch industry as it did with MP3 players, cell phones, and tablet computers.

With recent Apple Watch unit sales second only to legendary watchmaker Rolex, that question has been answered. Now fashion leader Louis Vuitton is asking a new question: Will consumers pay $2900 for a smartwatch? In answering that question, shoppers will have to answer another: is this technology, or is it fashion?

Suggested Answers for Discussion Questions CS 5-1. First, identify the level in Maslow’s Hierarchy of Needs into which the Tambour Horizon best fits. Next, make a case for how it could fit into each of the other categories..

As a luxury offering, the Tambour Horizon best fits into the Ego Needs category. It could also meet needs in each of the other categories: Physiological – supports health through its health enhancing features.

Safety – could facilitate emergency communications and provide info on the nearest hospital.

Belongingness – some people would be impressed with your Louis Vuitton watch, leading to acceptance by peers you consider important.

Self-actualization – some owners of a luxury product like the Tambour Horizon might believe they had “arrived” by owning such a prestigious item. At a more functional level, the travel assist features could facilitate travel which could contribute to selfactualization. (15 minutes, Chapter Objective 5-1, AACSB: Analytical Thinking) CS 5-2. How could Louis Vuitton’s choice of distribution channel affect how shoppers perceive and evaluate the Tambour Horizon?

Consumers’ evaluation of the prestige of a product can be influenced by the level of exclusivity of the product’s distribution. A product that is only available at a few stores may be perceived as being more prestigious. The specific stores chosen also influence that evaluation as there can be a “halo” effect in which other prestige products that are also sold at the store “rub off” on the Tambour Horizon displayed nearby.

Beyond the issue of prestige, the choice of distribution partners will signal how the company wants their product to be perceived. Selling it primarily in more exclusive .

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Section 2: Internal Influences on Consumer Behavior

clothing or jewelry stores says “fashion.” Selling it at Best Buy or another electronics store says “technology.” (15 minutes, Chapter Objectives 5-2 & 5-3, AACSB: Reflective Thinking) CS 5-3. Consider the five types of perceived risk. Which ones might be at play in the purchase of a luxury smartwatch?

Monetary – Likely at play for many purchasers, as the price of the watch is significant.

This is relative, however, as there will be buyers for which $2900 will not be a big percentage of their discretionary income.

Functional – Risk associated with other potential means of performing the same function. This is relevant for consumers focused on the technical functionality of a smartwatch, but the target market for the Tambour Horizon is probably more focused on the fashion aspect.

Physical – This is usually reserved for products that could cause harm if they malfunctioned. This risk would probably be low for the Tambour Horizon.

Social – Buying the “wrong” brand could lead to some level of social ostracization, so this is a significant risk for a product like the Tambour Horizon.

Psychological – A purchase of the Tambour Horizon may be subject to this kind of risk in at least two ways. Buying a brand that is not accepted by the purchaser’s peer group may lead to a lowering of self-esteem. If $2900 represents a significant percentage of the buyer’s discretionary income, the buyer may feel guilt or may feel the wrath of other members of the household who were depending on that money for items perceived as more essential. (15 minutes, Chapter Objective 5-2, AACSB: Analytical Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students if they have provided opinions regarding products or brands on any website.

If yes, have them share it with the class. If not, let them visit a site to provide opinions about their most recent significant purchase. They can also go to www.epinions.com and provide their input.

Students may have gone to an individual retailer’s website or a website that collects consumer opinions. This is related to the idea of involvement because consumers are more likely to provide opinions about a product if they have a high level of involvement.

(15 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) .

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Chapter 5: Motivation and Affect

2.

Have students think of examples of products or services that each of them has purchased that fit the three types of motivational conflicts found in Figure 4.1.

Approach-approach conflict—a person must choose between two desirable alternatives Example: choosing between two favorite brands of automobiles.

Approach-avoidance conflict—many products or services we desire have negative consequences attached to them; example: wanting Twinkies but feeling like a glutton.

Avoidance-avoidance conflict—a choice between two undesirable alternatives; example: spend more to repair an older car or buy a newer more expensive car. (15 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

3.

Find a student who is not too shy to do this one. Ask the student to search for unconscious motives by asking six people if they are wearing perfume or cologne. Make sure they keep asking until at least three people say, “Yes.” Then have them ask the respondents, “Why do you wear cologne?” Ask three of those who said they were not wearing cologne, “Why not?” Ask the three who said, “No” if they wore any the last time they had a date. Share their responses with the class and evaluate them. Can the class uncover any hidden motivations?

Look for students to understand what motivation is. Some people may be forthcoming about the needs that they are trying to satisfy by using cologne, which may or may not be related to dating. Students may make inferences about hidden motivations that are not correct. (45 minutes, Chapter Objective 5-1, AACSB: Analytic Skills)

4.

Ask students to come up with a list of products or services that people primarily buy because they want to “belong.” Have them explain why they listed the particular items.

Then, have them explain how individuals in solitude might also consume each of the items that they listed. Are there viable needs that consumers have for consuming these products both in the company of others as well as by themselves?

Social needs or a need to belong is often used as part of the marketing appeal for beverages (e.g. alcoholic beverages), fragrances, oral hygiene products, and entertainment products, among others. Traditional students may think of the marketing associated with student organizations, including sororities/fraternities. For the second part of the question, the students’ responses will depend on the product selected and the cultural norms associated with the consumption of the product. (20 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

5.

Have each student extensively describe a consumption situation that reflects each of the following: need for affiliation, need for power, and need for uniqueness.

Consumption situations that reflect a need for affiliation usually put the consumer in the company of other people and make him/her feel like part of something.

Bars/clubs/sporting events may be among the examples. Consumption situations that reflect a need for power usually put the consumer in control and give the consumer and .

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Section 2: Internal Influences on Consumer Behavior

opportunity to develop mastery over his/her surroundings. Automotive products (e.g. tires, engine additives, vehicles) and technology products often appeal to the need for power. Consumption situations that reflect a need for uniqueness include products that bring out the individual’s distinctive qualities and/or make the individual feel special.

Apparel often falls in this category, particularly when the consumer is shopping for a special event. (20 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking) 6.

Have students find advertisements that attempt to persuade consumers to think of products as objects that satisfy one of the motives described in this chapter. Have them identify and classify that motive.

Students may think broadly of hedonic or utilitarian motives. Hedonic motives are driven by a desire to experience excitement or fantasy. Utilitarian motives are driven by a rational or functional need. They may also speak about motives that are aroused by biogenic (food, water, air, shelter) or psychogenic needs (status, power, affiliation), or by need for affiliation/power/uniqueness. Look for students to reflect their understanding of the category of underlying needs they select. (30 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

7.

Ask students to find a print ad that appeals to each level of Maslow’s hierarchy. In class, have different students show their ads and explain why their ads appeal to each level. Ask why they think the firm selected this particular appeal. Is there overlap between levels? Is this good or bad?

Student examples should include an ad that appeals to physiological, safety, social, esteem and self-actualization needs. Student explanations should reflect their understanding of each of these levels in the hierarchy. Student opinions about the overlap between levels and whether it is good or bad are likely to vary. Encourage students to think about whether it is good or bad in light of what they read regarding criticisms of Maslow’s hierarchy in the chapter. (20 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

8.

Have individual students construct an example of the means-end chain model for a specific product or brand. Explain the thought process used.

Look for students to create a chain that links specific product attributes to terminal values via intermediate steps. Refer students to figure 4.4 for an example. Look for students to reflect their understanding that products provide a means to a desired end.

(30 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking)

9.

Have students think of some product or service they have purchased recently. Then have them respond to the consumer involvement scale in Table 4.1. Is their involvement with this product best described as product involvement, message-response involvement, or purchase situation involvement? Why?

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Chapter 5: Motivation and Affect

Student responses will vary depending on the purchase made, but look for students to reflect their understanding of the type of involvement they use to describe the situation by explaining why the type of involvement they selected is the most descriptive of their purchase situation. Some students may feel high levels of more than one kind of involvement characterized the purchase. If so, encourage students to explain why that is the case, which should help reinforce the differences between the different types of involvement. (20 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 10.

Have each student list what he or she perceives to be the five most important values themselves. To their parents. How do these values transfer to purchase decisions? How would marketers find out about their values?

It is often interesting to discuss how the students’ important values overlap with and differ from their perceptions of their parents’ values. It provides the opportunity to reinforce the idea that the relative ranking of values is culturally defined and the role of socialization agents outside of the family (e.g. teachers, friends). Look for student understanding of the values when they discuss how they affect purchase decisions. This process will require more thought if students select, for example, a cultural value as opposed to a product-oriented value. Research techniques to learn about values may include syndicated studies, surveys (Hofstede’s scale, the Rokeach Value Survey, List of Values scale), or depth interviews (Means-End Chain model). (25 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking,)

Group Projects 1.

Assign groups of students to observe a table of people eating in either a restaurant or cafeteria setting. See if they can identify any of the major motives at work. Have them report on their conclusions. (Hint: Watch the respondents’ behavior while they eat and during their conversation. Perhaps students might like to videotape part of the meal—five minutes maximum).

Most students will be able to distinguish between people who are there for the entertainment or enjoyment of the experience (hedonic motives) from those who are simply there to satisfy their hunger (utilitarian motives). Students may also use Maslow’s hierarchy to classify motives. Some students may find this fun, particularly if they like to people watch and make up stories about who the people are and what they are doing.

Other students may not feel comfortable watching others. If not, you may want to provide an alternative assignment. Students may have the ability to videotape on their phones.

(90 minutes, Chapter Objective 5-1, AACSB: Analytic Skills)

2.

Have groups of students come up with three examples of a truly mass-customized product. For each, have them give extensive reasons as to why consumers might choose the mass-customized version of a product over the “off-the-rack” version.

Student examples may include M&M’s (www.mymms.com is mentioned in the text), Dell computers, make-up/perfume companies, blue jeans companies, NikeID and Chuck .

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Taylor Converse sneakers, credit card companies that allow you to put a photo you select on your credit card, etc. Reasons why consumers might choose a mass-customized version of the product may be a function of the way they will use the product (a product that is designed for them is more likely to meet the consumers’ needs/wants) and may relate to the need for uniqueness. (20 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking) 3.

Have the class keep a diary of their consumer decisions for a two-day period. (Make sure they include both actual purchases and conscious decisions not to buy.) At the end of the period, have them review their diaries and classify their apparent motives. (Maslow’s scheme may be useful here.) During this process, were they more aware of ads? Have students discuss their diaries in groups.

If you guide students toward Maslow’s hierarchy of needs, you should look for their responses to be characterized based on physiological, safety, social, esteem and selfactualization needs. Since this is a suggested group project, it may be enlightening to ask students to compare their motives for the same product category. The last question, regarding awareness of ads, can be related to the content in Chapter 2 on perceptual vigilance. (90 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking,)

4.

Have the class go to a shopping center or mall and observe others’ behavior. What conclusions can they make about motives, involvement, and values after having made the observation?

This group assignment is similar to the first group assignment, but takes place in a different context. It may be easier to observe multiple shoppers in a mall than in a restaurant. You can direct students to characterize shoppers based on their demographics to see if there is any pattern, what the students perceive motivates different shoppers in this context. Values may be difficult to observe, but students may be likely to observe materialism. (90 minutes, Chapter Objectives 5-1,5-2, 5-3, AACSB: Reflective Thinking)

5.

In a project related to #4, have groups of students visit a shopping mall or a superstore.

Have them evaluate the retail environment for ways that both the retailer and product manufacturers try to increase consumer involvement (refer to text if necessary for strategies to increase involvement).

Students may observe shoppers who seem highly involved in a product category or purchase situation. They should recognize sales promotions and customized communication strategies are designed to increase consumer involvement. They may also observe strategies used to increase involvement in the in-store messages (e.g. end-cap displays, shelf-talkers, digital signage). (60 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking)

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Chapter 5: Motivation and Affect

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.burton.com. Burton Snowboards are very popular with Gen Y. How does this website attempt to motivate consumers to try the sport and the Burton products? Be specific with the description of strategies that Burton uses. Do you think the Burton approach is effective? Explain. This project can also be done with Nike.com.

The website uses video to show people trying the sport, collects information to learn about consumer needs and provide advice to make the sport less intimidating to newcomers, offers a community of users, and provides access to people who want to learn how to snowboard. Student opinions on whether the Burton approach is effective may vary. (15 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

2.

Go to http://www.vans.com. Find the link for creating your own custom pair of Vans shoes. Go through the process and print an example of your shoes to take in to class and share. Describe the experience. Did the experience contribute to the level of involvement in shopping for such a product?

Vans Customs offers consumers the opportunity to choose from four different types of sneakers. After the consumer selects a size and gender, the site offers consumers the ability to customize the design (with templates where the consumer can start). The site provides an example of mass customization (personalization of products and services for individual customers at a mass-production price), which is noted to increase product involvement in the chapter. (20 minutes, Chapter Objective 5-2, AACSB: Reflective Thinking)

3.

Go to www.specialized.com. Specialized Bicycles is one of the leading manufacturers and marketers of all types of bikes. Browse their website. Give a brief description of their different product lines. How does Specialized motivate consumers to get into biking?

What might Specialized do to improve the “motivation” aspect of their site (you might want to compare it to the Burton Snowboard site discussed previously)?

Specialized offers mountain bikes, road bikes, multi use bikes, dirt/park/street bikes, bikes for kids, and equipment for bikes. Specialized shows images of people enjoying their products and provides information about champions. The site also provides an opportunity for consumers to engage in a community and interactive tools to help decision-making. Specialized may offer a call to action or provide access to training events for beginners. (20 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking)

Group Assignments 1.

Visit a motivation website such as www.GetMotivation.com or www.Motivation123.com. Many of these sites target personal motivation but are there .

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Section 2: Internal Influences on Consumer Behavior

techniques that marketers can learn in order to motivate consumers to buy a product/service or buy into a type of lifestyle? Write a report and present.

Students should identify specific techniques related to the content of the website they select. The students may have different ideas about how the content on the websites relates to the suggested content. Look for students to provide support for their opinions.

(45 minutes, Chapter Objective 5-1, AACSB: Reflective Thinking) 2.

Go to www.strategicinsights.com. Your group should explore the VALS, VALS2, and iVALS methods discussed on the website. Describe each of the methods. Pick one of the methods for further research. Have each group member take the VALS test online. What were the results? Comment on these methods as a means to explore consumer values.

Devise an experiment by which VALS studies could be used to explore consumer values.

The test can be found at http://www.strategicbusinessinsights.com/vals/presurvey.shtml.

Students should report on how they feel the values identified in the test relate the innovativeness, source of motivation, and resources. Students may compare responses from different segments, as identified in VALS, as the experiment. You can extend this project by asking students to describe a marketing strategy for a product aimed at a specific VALS segment. (60 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking)

3.

Go to www.burningman.com. Become familiar with the purpose of this festival. As a group, discuss the extent to which it is possible to achieve the purposes set forth by this organization. Discuss the irony of this.

Burning man is a festival dedicated to self-reliance, self-expression, art, and community.

The ten principles are found here: http://www.burningman.com/whatisburningman/about_burningman/principles.html. The festival touts individual expression/self-reliance at the same time as it espouses the value of the community. (30 minutes, Chapter Objective 5-3, AACSB: Reflective Thinking)

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Chapter 6: The Self: Mind, Gender, and Body

Chapter 6: THE SELF: MIND, GENDER, AND BODY

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 6-1. The self-concept strongly influences consumer behavior.

6-2. Gender identity is an important component of a consumer’s self-concept.

6-3. The way we think about our bodies (and the way our culture tells us we should think) is a key component of self-esteem.

CHAPTER SUMMARY The self-concept strongly influences consumer behavior.

Consumers’ self-concepts are reflections of their attitudes toward themselves. Whether these attitudes are positive or negative, they will help to guide many purchase decisions; we can use products to bolster self-esteem or to “reward” the self.

We choose many products because we think that they are similar to our personalities. The symbolic interactionist perspective of the self implies that each of us actually has many selves, and we require a different set of products as props to play each role. We view many things other than the body as part of who we are. People use valued objects, cars, homes, and even attachments to sports teams or national monuments to define the self, when they incorporate these into the extended self.

Gender identity is an important component of a consumer’s self-concept.

Sex roles, or a society’s conceptions about masculinity and femininity, exert a powerful influence on our expectations about the brands we should consume. Advertising plays an important role because it portrays idealized expectations about gender identity.

The way we think about our bodies (and the way our culture tells us we should think) is a key component of self-esteem.

A person’s conception of his or her body also provides feedback to self-image. A culture communicates specific ideals of beauty, and consumers go to great lengths to attain these. Many consumer activities involve manipulating the body, whether through dieting, cosmetic surgery, piercing, or tattooing. Sometimes these activities are carried to an extreme because people try too hard to live up to cultural ideals. One common manifestation is eating disorders, diseases in which women in particular become obsessed with thinness.

Body decoration or mutilation may serve such functions as separating group members from nonmembers, marking the individual’s status or rank within a social organization or within a gender category (e.g., homosexual), or even providing a sense of security or good luck. .

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Section 2: Internal Influences on Consumer Behavior

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Collective Self’ Here Use Review Question 6-1 Here I.

The Self A. Does the Self Exist?

An emphasis on the unique nature of the self is much greater in Western societies.

Many Eastern cultures stress the importance of a collective self, where a person derives his or her identity in large measure from a social group.

We describe attributes of self-concept along such dimensions as content (e.g., facial attractiveness versus mental aptitude), positivity (i.e., self-esteem), intensity and stability over time, and accuracy (i.e., the degree to which one’s selfassessment corresponds to reality).

Each element that contributes to our self-concept is an identity.

Use Key Term ‘Identity,’ ‘Self-Esteem,’ ‘Social Comparison,’ ‘Ideal Self,’ ‘Actual Self,’ ‘Impression Management’, ‘Avoidance Self,’ ‘Snackwave’ Here Use Review Question 6-2 Here i. Self-Esteem Self-esteem refers to the positivity of a person’s self-concept. People with low self-esteem expect that they will not perform very well, and they will try to avoid embarrassment, failure, or rejection.

Exposure to ads such may trigger a process of social comparison, in which the person tries to evaluate their appearance by comparing it to the people depicted in the advertising images. ii. Real and Ideal Selves When a consumer compares some aspect of himself or herself to an ideal, this judgment influences self-esteem.

The ideal self is a person’s conception of how they would like to be, whereas the actual self refers to our more realistic appraisal of the qualities we do and don’t have. We choose some products because we think they are consistent with our actual self, whereas we buy others to help us reach an ideal standard. We also often engage in a process of impression management in which we work hard to “manage” what others think of us.

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Chapter 6: The Self: Mind, Gender, and Body

Our avoidance self refers to the type of person we don’t want to be.

Many female teens identify with the snackwave label.

Use Key Term ‘Fantasy,’ ‘Virtual Makeover,’ ‘Dramaturgical Perspective,’ ‘Torn Self,’ ‘Symbolic Interactionism’ Here iii. Fantasy: Bridging the Gap Between the Selves A fantasy or daydream is a self-induced shift in consciousness.

Virtual makeover technologies make it even easier for each of us to involve the digital self as we choose products to adorn our physical selves. iv. Multiple Selves The dramaturgical perspective on consumer behavior views people as actors who play different roles. We play many roles, and each has its own script, props, and costumes. The self has different components, or role identities, and only some of these are active at any given time.

In the torn self, individuals struggle with retaining an authentic culture while still enjoying Western freedoms.

How do we decide which self to “activate” at any point in time? The sociological tradition of symbolic interactionism stresses that relationships with other people play a large part to form the self.

Use Key Term ‘Looking-Glass Self,’ ‘Self-Fulfilling Prophecy,’ ‘Public Self-Consciousness,’ ‘Self-Monitors,’ ‘Selfie,’ ‘Empty Self’ Here Use Review Question 6-5 Here v. The Looking Glass Self Sociologists call the process of imagining others’ reactions “taking the role of the other,” or the looking-glass self.

“Who do other people think I am?” We tend to pattern our behavior on the perceived expectations of others, as a form of self-fulfilling prophecy.

When we act the way we assume others expect us to act, we often confirm these perceptions. vi. Self-Consciousness A heightened concern about the nature of one’s public “image” results in more concern about the social appropriateness of products and consumption activities. .

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Consumers who score high on a scale of public self-consciousness express more interest in clothing and use more cosmetics than others who score lower.

High self-monitors are more attuned to how they present themselves in their social environments, and their estimates of how others will perceive their product choices influence what they choose to buy.

A selfie, or a picture a smartphone user takes of themself on a smartphone is a common form of communication.

The concept of the empty self points to the decline of shared points of reference over the last 50 years as we witnessed a decline in family, community, and traditions. As a result, people have shifted inward and a focus on the self is an unconscious way to compensate for what we have lost.

Use Key Term ‘Self-Mage Congruence Models,’ ‘Symbolic Self-Completion Theory,’ ‘Extended Self,’ ‘Digital Self’ Here Use Consumer Behavior Challenge 6-9, 6-10, 6-18, 6-22 Here B. Are We What We Buy? Self-image congruence models suggest that we choose products when their attributes match some aspect of the self.

Congruence models assume a process of cognitive matching between product attributes and the consumer’s self-image.

We are attached to an object to the extent we rely on it to maintain our selfconcept.

Symbolic self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity when they acquire and display symbols they associate with that role.

C. The Extended Self Those external objects that we consider a part of us constitute the extended self.

The Bitmojis and avatars we create are known as our digital selves.

The four levels of the extended self are (Figure 6.1): 1 Individual level—Consumers include many of their personal possessions in self-definition. These products can include jewelry, cars, clothing, and so on. The saying “You are what you wear” reflects the belief that one’s things are a part of one’s identity.

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2

3

4

Family level—This part of the extended self includes a consumer’s residence and the furnishings in it. We can think of the house as a symbolic body for the family, and the place where we live often is a central aspect of who we are.

Community level—It is common for consumers to describe themselves in terms of the neighborhood or town from which they come. For farm families or other residents with close ties to a community, this sense of belonging is particularly important.

Group level—We regard our attachments to certain social groups as a part of the self; we’ll consider some of these consumer subcultures in later chapters. A consumer also may feel that landmarks, monuments, or sports teams are a part of the extended self.

Use Key Term ‘Embodied Cognition,’ ‘Power Posing,’ ‘Enclothed Cognition,’ ‘Wearable Computing,’ ‘Chipped,’ ‘Biohackers,’ ‘Cyborg,’ ‘The Singularity Movement’ Here Use Consumer Behavior Challenge 6-8, 6-19, 6-20 Here D. Embodied Cognition The concept of embodied cognition says that the states of the body modify states of the mind.

Power posing – standing in a confident way even when you don’t feel confident – has been shown to affect brain activity.

The symbolism of certain clothes has been shown to impact how people behave.

This concept is known as enclothed cognition.

E. Wearable Computing The invasion of wearable computing is at hand. Whether devices we wear on our wrist like the Apple Watch, or woven into our clothing, increasingly our digital interactions will become attached to our bodies.

Analysts believe the day when many of us will be chipped may not be that far off. After all, pet owners have been chipping their dogs for years to ensure that they don’t get lost.

Some people are pushing the envelope as they explore new ways to integrate their bodies with technology. These individuals are known as biohackers.

A cyborg refers to a person who lives a technologically enhanced existence, and who often possesses special abilities because she or he is linked to other parts of a larger system (internet).

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Section 2: Internal Influences on Consumer Behavior

Followers of The Singularity movement believe that we are headed toward a new era, where human intelligence will merge with computer intelligence to create a human/machine hybrid civilization.

Use Chapter Objective 2 Here Use Key Term ‘Gender Identity,’ ‘Sex Roles,’ ‘Agentic Goals,’ ‘Communal Goals,’ ‘Sex-Typed Traits,’ ‘Neuroendocrinological,‘ ‘Bromance,’ ‘Sex-Typed Products’ Here Use Consumer Behavior Challenge 6-21 Here

II.

Gender Identity Gender identity is an important component of a consumer’s self-concept. People often conform to their culture’s expectations about how those of their gender should act, dress, or speak; we refer to these sets of expectations as sex roles.

A. Sex Role Socialization Many commercial sources, such as Cinderella or Katniss dolls, provide lessons in gender socialization for both girls and boys.

Many societies expect males to pursue agentic goals, which stress self-assertion and mastery. However, they teach females to value communal goals, such as affiliation and building harmonious relations.

A recent review of the research literature reported five basic conclusions about gender differences: 1 Males are more self-oriented, whereas females are more other-oriented 2 Females are more cautious responders 3 Females are more responsive to negative data 4 Males process data more selectively and females more comprehensively 5 Females are more sensitive to differentiating conditions and factors. i. Gender Identity versus Sexual Identity Gender-role identity is a state of mind as well as body. A person’s biological gender (i.e., male or female) does not totally determine whether he or she will exhibit sex-typed traits—characteristics we stereotypically associate with one gender or the other.

New evidence is emerging about the effects of biology on consumer behavior. Neuroendocrinological science focuses on the potential role of hormonal influences on preferences for different kinds of products or people.

A bromance is affection between straight male friends.

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ii. Sex-Typed Products Sex-typed products reflect stereotypical masculine or feminine attributes, and consumers associate them with one gender or another.

Use Key Term ‘Contemporary Young Mainstream Female Achievers (CYMFA)’ Here

B. Female Sex Roles An exploration of contemporary young mainstream female achievers (CYMFA) identified different roles these women play in different contexts.

There is no shortage of expert advice on marketing to women. Here are a few important dos and don’ts: • • • •

DO rely heavily upon social media when marketing to women.

DO rely on emotional messaging.

DON’T “gender wash”—avoid stereotypes.

DON’T fall into the “shrink it and pink it” mentality.

Use Key Term ‘Masculinism,’ ‘Bro Culture,’ ‘Androgyny,’ ‘Gender-Bending Products,’ ‘ThirdGender Movement,’ ‘Gender Binarism,’ ‘Gender Benders’ Here Use Consumer Behavior Challenge 6-15 Here C. Male Sex Roles Scholars of masculinism study the male image and the complex cultural meanings of masculinity.

The researchers suggest that men try to make sense out of three different models of masculinity that they call breadwinner, rebel, and man-of-action hero.

For many, this term bro culture implies that the worst aspects of stereotypical fraternity life make their way into corporate culture: hard partying, motivating employees with public humiliation, and treating women as sexual playthings.

D. Androgyny Androgyny refers to the possession of both masculine and feminine traits.

Researchers make a distinction between sex-typed people, who are stereotypically masculine or feminine, and androgynous people, whose orientation isn’t as clearly defined.

Gender-bending products are items which are traditionally sex-typed items adapted to the opposite gender. .

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Section 2: Internal Influences on Consumer Behavior

E. Lesbian, Gay, Bisexual, and Transgender (LBGT) Consumers The proportion of American adults identifying as lesbian, gay, bisexual, or transgender (LGBT) in 2016 was 4.1 percent, or more than 10 million people.

Our definitions of gender continue to evolve as a global third-gender movement picks up steam: California and Oregon allow residents to declare a “third gender” on their drivers’ licenses, and Canadians can mark their sex as “unspecified” on passports.

It seems that gender binarism — the classification of gender into two distinct, opposite and disconnected forms of masculine and feminine is giving way to gender benders, or people who “bend” traditional sex roles.

Use Chapter Objective 3 Here Use Key Term ‘Body Image,’ ‘Ideal of Beauty,’ ‘Body Image Distortions’ Here Use Review Question 6-3, 6-6 Here Use Consumer Behavior Challenge 6-16, 6-17, 6-23 Here III.

The Body as Product Body image refers to a consumer’s subjective evaluation of his or her physical self.

A. Ideals of Beauty An ideal of beauty is a particular model, or exemplar, of appearance. Ideals of beauty for both men and women may include physical features as well as clothing styles, cosmetics, hairstyles, skin tone, and body. i. Is Beauty Universal?

The evidence continues to mount that at least some of our tastes for physical features are “wired in” genetically.

People tend appear to favor features we associate with good health and youth because these signal reproductive ability and strength. Another cue that people across ethnic and racial groups use to signal sexual desirability is whether the person’s facial features are balanced. ii. Ideals of Female Beauty Evolve over Time Sexual dimorphic markers, which are those aspects of the body that distinguish between the sexes.

Now that traditional gender stereotypes are breaking down, we may continue to see changes in these ideals. iii. The Western Ideal of Female Beauty Images of impossibly thin and perfect women bombard young girls and women from the magazine rack, the TV, the movies, and the internet. The .

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Chapter 6: The Self: Mind, Gender, and Body

editors and artistic directors who disseminate these beauty ideals have a great deal of power, because they help to determine the yardsticks the rest of us use to decide if we make the grade. The irony is that these media standards are almost impossible to attain, because most of the svelte models we see literally do not exist in real life.

Body image distortions occur among females. These psychological disorders cause the patient to believe that his or her body literally is bigger or smaller than others see it.

Use Key Term ‘Vanity Sizing,’ ‘Fattism,’ ‘Fashionistas’ Here Use Review Question 6-4 Here Use Consumer Behavior Challenge 6-12, 6-13, 6-14 Here iv. What is Today’s Ideal of Female Beauty?

The most commonly purchased dress today is a size 14; it was a size 8 in 1985.

Clothing manufacturers often offer vanity sizing, where they deliberately assign smaller sizes to garments. Women prefer to buy the smaller size, even if the label is inaccurate.

For several years Dove’s Campaign for Real Beauty has drawn attention to unrealistic beauty ideals as it features women with imperfect bodies in advertising. v. Fattism and Body Positivity Fattism is deeply ingrained in our culture: As early as nursery school age, children prefer drawings of peers in wheelchairs, on crutches, or with facial disfigurements to those of fat children.

A recent study focused on fatshionistas, plus-sized consumers who want more options from mainstream fashion marketers. They found that indeed these consumers can agitate for change. vi. Ideals of Male Beauty A study of men who appear in advertisements found that most sport the strong and muscular physique of the male stereotype. More than 40 percent of boys in middle school and high school say they exercise regularly to increase muscle mass. 38 percent say they use protein supplements, and nearly 6 percent admit they have experimented with steroids.

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Section 2: Internal Influences on Consumer Behavior

B. Body Decoration and Mutilation People in every culture adorn or alter their bodies in some way. Decorating the physical self serves a number of purposes: • • • • • • •

To separate group members from nonmembers To place the individual in the social organization To place the person in a gender category To enhance sex-role identification To indicate desired social conduct To indicate high status or rank To provide a sense of security

C. Body Anxiety Because many consumers experience a gap between their real and ideal physical selves, they often go to great lengths to change aspects of their appearance. i. Cosmetic Surgery Consumers increasingly choose to have cosmetic surgery to change a poor body image or simply to enhance appearance.

Medical tourism describes a rapidly growing sector of the global economy that encourages consumers to travel to other countries for surgical procedures that might be unavailable, more dangerous, or more expensive where they live. ii. Tattoos Tattoos—both temporary and permanent—today are a popular form of body adornment.

Morbid ink tattooing incorporates DNA (of a partner, dog, or whatever) into the ink itself so that you carry your loved one’s remains with you for the rest of your life. iii. Body Piercing Like tattoos, body piercing evolved from a practice associated with fringe groups to a popular fashion statement.

Use Key Term ‘Morbid Ink’ Here Use Review Question 6-7 Here Use Consumer Behavior Challenge 6-11 Here

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Chapter 6: The Self: Mind, Gender, and Body

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

Marketing Pitfall Opportunities for impression management abound, and this includes how you act at business dinners or networking events. Indeed researchers found evidence of an Imbibing Idiot Bias: Even when they are not actually impaired, people who simply hold an alcoholic beverage are perceived to be less intelligent than those who do not.

2.

The Tangled Web The phenomenon of sexting, in which kids post nude or seminude photos of themselves online, is growing.

3.

The Tangled Web “I can leave Facebook whenever I want!” Actually, for many people it’s not so easy.

4.

The Tangled Web At least 400 websites attract young people with “ana” and “mia,” nicknames for anorexia and bulimia. These “communities” focus on what they call thinspiration as they offer tips on crash dieting, bingeing, vomiting, and hiding weight loss from concerned parents.

Group dieting is a growing problem as consumers patronize blog rings devoted to excessive weight loss.

5.

Marketing Pitfall In a previous era, wealthy women avoided the sun at all costs lest people get the impression that they had to work for a living outdoors. The bias toward pale skin extends to other cultures as well. In contrast, Caucasians in the U.S. today equate a tanned complexion with health, physical activity, and an abundance of leisure time.

REVIEW 6-1.

List three dimensions that describe the self-concepts.

1.

2.

3.

6-2.

Content—facial attractiveness versus mental aptitude; Positivity or negativity—self-esteem; and Intensity, stability over time, and accuracy—the degree to which one’s selfassessment corresponds to reality. (5 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking)

Compare and contrast the real versus the ideal self. List three products for which a person is likely to use each type of self as a reference point when he or she considers a purchase.

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Section 2: Internal Influences on Consumer Behavior

The ideal self is a person’s conception of how he or she would like to be, whereas the actual self refers to our more realistic appraisal of the qualities we have and don’t have.

Product choices will vary, but products associated with the ideal self are more likely to be expressive. (5 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking,) 6-3.

Have ideals of beauty in the United States changed over the last 50 years? If so, how?

A study of almost 50 years of Playboy centerfolds shows that the women have become less shapely and more androgynous since Marilyn Monroe graced the first edition with a voluptuous hourglass figure of 37–23–36. However, a magazine spokesman comments, “As time has gone on and women have become more athletic, more in the business world and more inclined to put themselves through fitness regimes, their bodies have changed, and we reflect that as well. But I would think that no one with eyes to see would consider playmates to be androgynous.” (10 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

6-4.

What is fattism?

Fattism is an obsession with weight. (5 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking,)

6-5.

What does “the looking-glass self” mean? How do feelings about the self influence what we buy?

This process of imagining the reactions of others toward us is known as “taking the role of the other,” or the looking glass self. According to this view, our desire to define ourselves operates as a sort of psychological sonar: We take readings of our own identity by “bouncing” signals off others and trying to project what impression they have of us.

(5 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking)

6-6.

How do Eastern and Western cultures differ in terms of how people think about the self?

The emphasis on the unique nature of the self is much greater in Western societies. Many Eastern cultures instead stress the importance of a collective self, where a person derives his identity in large measure from his social group. Both Eastern and Western cultures see the self as divided into an inner, private self, and an outer, public self. However, where they differ is in terms of which part is seen as the “real you”—the West tends to subscribe to an independent construal of the self that emphasizes the inherent separateness of each individual. (5 minutes, Chapter Objective 6-1, AACSB: Multicultural and Diversity Understanding)

6-7.

How did tattoos originate?

Tattoos have a long history of association with people who are social outcasts. For example, the faces and arms of criminals in sixth-century Japan were tattooed as a means of identifying them, as were Massachusetts prison inmates in the nineteenth .

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century and concentration camp internees in the twentieth century. Marginal groups, such as bikers or Japanese yakuze (gang members) often use these emblems to express group identity and solidarity. (5 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

DISCUSS 6-8.

As wearable computing takes off, so too will the possibility of “chipping” people so that they can directly interact with their devices without having to go through an interface like a smartphone. What ethical problems might this practice pose? Do the potential benefits outweigh the risks?

Student opinions will vary dramatically. It is important to work to keep the conversation constrained to only the idea of “chipping.” The ethical dilemmas associated with this concept are significant and should be explored in depth. (10 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking & Ethical Understanding and Reasoning Ability)

6-9.

At the end of the day, are you what you buy?

Student responses will differ based on opinion. Students may discuss the self-image congruence models that suggest we choose products when their attributes match some aspect of the self. Emotional connects can make consumers defensive of their favorite brands if they see negative information about those brands. Cognitive matching between product attributes and self-image should also be considered. Ideas such as the reflected self and self-concept can be used to support the student’s opinions. (10 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking)

6-10. Are you what you post online?

Students will have different responses based on opinions. A discussion on digital self and the ability to modify profile photos will help support the idea of impression management.

Some students may include a discussion about the use of avatars. The discussion might include thoughts about social media sites such as Facebook, using online posts to create an impression, and how marketers use postings, Students might also discuss how online postings are changing our ideals of beauty and self-expression. (10 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-11. Shopping for back-to-school “basics” used to mean T-shirts, jeans, socks and some notebooks. Now, many parents have a new item to add to the list: tattoos. About 45% of parents polled say that hair highlights, teeth whitening, even tattoos are among the items they will buy their kids to go back to school. What (if any) age is appropriate for kids to get these grownup additions?

Students will have different opinions about the appropriate age for each of these three items. Some students may bring up the show “Toddlers in Tiaras,” where pre-school girls are often consumers of highlights and teeth whitening. Look for students to support their opinions with references to consumer socialization and what the use of the product .

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Section 2: Internal Influences on Consumer Behavior

means in relationship to the consumer’s self-concept. (15 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 6-12. “Breastaurants” represent a popular category of dining establishments. Is it ethical to hire women as waitresses because they have certain physical characteristics? Is it ethical to exclude others (including men) from these jobs if they don’t?

Student opinions will vary but will likely include information about Hooters or other chains that attract diners with servers in short shorts and tight or small tops. The discussion should focus on sex-typed products and how they reflect stereotypical masculine or feminine attributes, and how products are associated with one gender or another. (10 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 6-13. One consequence of the continual evolution of sex roles is that men are concerned as never before with their appearance. Men spend $7.7 billion on grooming products globally each year. A wave of male cleansers, moisturizers, sunscreens, depilatories, and body sprays washes up on U.S. shores, largely from European marketers. L’Oréal Paris reports that men’s skincare products are now its fastest-growing sector. In Europe, 24 percent of men younger than age 30 use skincare products— and 80 percent of young Korean men do. Even some cosmetics products, like foundation and eyeliner, are catching on in some segments, though men aren’t comfortable owning up to using them.

In fact, a British makeup product looks like a ballpoint pen so men can apply it secretly at the office. Over the past decade, the media paid a lot of attention to so called “metrosexuals”: straight males who are interested in fashion, home design, gourmet cooking, and personal care products. How widespread is this phenomenon? Do you see men in your age group focusing on these interests? Should marketers change how they think of male sex roles today?

Student responses will vary and include information based on their own life experiences.

An identification of sex-typed products should be made, and how marketers are challenging the stereotype. Men receive mixed messages about how they are supposed to behave and feel. One study found that men try to make sense out of three models of masculinity: the breadwinner, rebel, and man-of-action hero. Products are becoming more androgynous, and the orientation is not clearly defines. Study respondents did not link androgynous lifestyles to sexual orientation. The result of androgyny is the promotion of fender-bending products. (6 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-14. Some activists object to Axe’s male-focused marketing because they claim it demeans women. In contrast, Dove’s “Natural Beauty” campaign gets kudos because it promotes more realistic expectations for girls. Guess what? The same company – Unilever – owns both Axe and Dove. Is it hypocritical for a big company to sponsor positive messages about women in one of its divisions while it sends a different message in another?

Student responses to this will vary. Some will see the behavior as hypocritical and others will say it is just a matter of segmentation and targeting based on an understanding of the .

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target audience. When Unilever consolidated brands, they try to capture universal values – for Dove it was real beauty and for Unilever it was something they termed “bom chicka wah wah” – which could otherwise be characterized as appealing to men using the promise of sex. Two videos may help show the contrast in the strategies between the two brands: http://www.youtube.com/watch?v=9zKfF40jeCA is the Onslaught video from Dove; http://www.youtube.com/watch?v=SwDEF-w4rJk is a parody on the Onslaught video that shows Axe images. Recently, South Africa decided to pull the Fallen Angels ad from Axe because of a complaint. (20 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking and Ethical Understanding and Reasoning Abilities) 6-15

The mainstream media have sent a clear message for the last several years: It’s cool to be slutty. Role models like Paris Hilton, Lindsay Lohan, Britney Spears, and even Bratz dolls convey standards about how far preteens and teens should go when they broadcast their sexuality. Now, as these messages seem to go over the top (at least in the eyes of some concerned parents), we start to see early signs of a backlash because some who subscribe to the “modest movement” advocate a return to styles that leave almost everything to the imagination. At the Pure-Fashion Web site, girls get style tips recommending skirts and dresses that fall no more than four fingers above the knee and no tank tops without a sweater or jacket over them; the ModestApparel site proclaims, “because a modest woman is a beautiful woman. Is our culture moving from a celebration of “girls gone wild” to “girls gone mild?”

Responses will vary based on student opinion. The idea that how we dress is an opportunity for impression management. Self-esteem, or the positivity of a person’s selfconcept is reflected in how they dress, as consumers seek to avoid embarrassment, failure, or rejection. The idea of social comparison might also be included as a way to evaluate appearance by comparing it to the people depicted in artificial images.

Responses will also consider the ideal self to the actual self, and how we engage in the process of impression management. (20 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking)

6-16

The clothing chain H&M features computer-generated models on its Web site. The company drew criticism for presenting only picture-perfect people; for example, the Norwegian Broadcasting Corporation accused the chain of “creating unrealistic physical ideals.” A company spokesman defended the move by explaining that these unreal bodies would ensure that the garments remain the focus of online shoppers’ attention. In contrast, the teen-oriented magazine Seventeen pledged to always feature “real girls” in its pages. This change was in response to an online petition that gathered nearly 85,000 signatures in just 4 days. The 14-yearold reader who posted the petition stated, “For the sake of all the struggling girls all over America, who read Seventeen and think these fake images are what they should be, I’m stepping up. I know how hurtful these photoshopped images can be.” What do you think of this argument—does the use of only “perfect” bodies create a problem for real shoppers?

Student’s responses will vary but cover similar issues. Body image refers to a consumer’ subjective evaluation of his or her physical self. Our evaluations don’t necessarily .

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Section 2: Internal Influences on Consumer Behavior

correspond to what those around us see. Whether the perceptions are accurate is not the point, because our insecurities weigh us down whether they’re justified or not. Some marketers exploit consumer’s tendencies to distort their body images when the prey on insecurities about appearance. Even social media impacts how we feel about our bodies.

Our satisfaction with the physical image we present to others depends on how closely we think the image corresponds to the ideal our culture values. An ideal of beauty is a particular model of appearance, and may include physical features, clothing styles, hairstyles, skin tone, and body type. Our desire to match up to these ideas drives a lot of our purchase decisions. However, beauty is not universal. Marketers and mass media play a large role in determining which forms of beauty we consider desirable. When we don’t measure up, it lowers our self-esteem, and can possible diminish the effectiveness of an ad because of negative feeling. Our culture communicates standards of beauty virtually everywhere. An increase of body image distortion is occurring among females.

These psychological disorders cause consumers to believe that the body is bigger or smaller than others see it. This results in eating disorders and other life issues for real shoppers. (20 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-17. Many people feel that a preoccupation with physical appearance diverts consumers from discovering true happiness, i.e. “you can’t judge a book by its cover.” On the other hand, recent research finds that a heightened interest in appearance can actually improve the mental health of elderly people; putting on make-up can slow the progress of dementia by helping sufferers keep their brains active. Numerous organizations provide wigs to chemotherapy patients who lose their hair to bolster their self-esteem. Is a focus on looks ultimately a positive or a negative force? How can marketers encourage a “healthy” interest in appearance?

Student responses will vary considerably and will likely be tied to their views of physical fitness. There is no “correct” answer to this question. Consideration should be given to directing student discussion to looking and the pros and cons of the idea of physical appearance. (10 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) APPLY 6-18. If our possessions do indeed come to be a part of us, how do we bring ourselves to part with these precious items? Researchers find that people often take steps to distance themselves from a favored object before they get rid of it. Strategies they identified include taking pictures and videos of the objects; moving them into an out-of-the way location such as a garage or an attic; or washing, ironing, and wrapping the item.

Interview people you know who have disposed if a product that was important to them— for example, a well-used car or a favorite sweatshirt that finally had too many holes to keep. What steps did they take to “divest” themselves of this attachment (such as removing personal items from a car before selling it, and so on)?

Answers will vary, some students will talk about giving these products to charity, others will discuss how they are just not needed anymore. (30 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking) .

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6-19. Construct a “consumption biography” of a friend or family member. Make a list of or photograph his or her favorite possessions, and see if you or others can describe this person’s personality just from the information provided by this catalog.

Students might like to bring in a short videotape of the types of products the subject owns.

This is usually a fun exercise, as students love to guess who the subject is. Usually, of course, they can pinpoint the person and come close to describing the person’s personality. (Possible Individual Field Project) (45 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-20. Interview victims of burglaries or people who have lost personal property in floods, hurricanes, or other natural disasters. How do they go about reconstructing their possessions, and what effect did the loss appear to have on them? Similarly, poll your class: If their house or apartment was on fire and they could only take one possession with them as they evacuate, what would it be?

This project may be somewhat difficult to do if no losses have occurred. An alternative is to have students watch news broadcasts and record their impressions of the responses and demeanor of the interviewed subjects. Given the recent El Nino effect on the lives of many U.S. citizens, there will be many stories about losses and difficulties encountered. How does a marketer deal with these situations? See if the students can find marketing responses that seem admirable and unacceptable. (60 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-21. Watch a set of ads featuring men and women on television. Try to imagine the characters with reversed roles (i.e., the male parts played by women and vice versa) Can you see any differences in assumptions about sex-typed behavior?

Students will have fun with this challenge though it will be a revelation to some. An example of an ad that has women and men playing their traditional roles is a Duncan Hines cake mix commercial. The commercial shows the wife/mother making a cake.

When the cake is ready, the father/husband and children are smiling and happy. The ad then says, “Nothin’ says lovin’ like a cake from the oven.” If one switches the roles of the man and woman, the ad somehow would not correspond to our image of having a cake baked by someone who loves us. Most of the time we will want to see ads that reflect a reality, as we normally perceive it. (Possible Field Project Idea) (30 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-22. How do people you know feel about their cars? Interview some of them about the “relationship” they have. Do they decorate their cars? Do they have nicknames for them?

And, check out a video on YouTube called “I Love My Car” to really see how deep these relationships can go.

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Student answers will vary and should include a lively discussion about their relationship with their cars, and other important possessions. (30 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking) 6-23. Many advertisers routinely purchase stock photography when they need an image of a certain kind of person to insert in an ad. Many photos of women reflect common stereotypes, ranging from the crisp businesswoman who wears a suit and glasses and holds a briefcase to the smiling mother who pours milk into cereal bowls for her kids at breakfast. Sheryl Sandberg, the Facebook executive who is an advocate for women in business, started an organization called Lean In to promote leadership. Lean In has now partnered with Getty Images, one of the biggest stock photography companies, to offer an image collection that represents women differently. The new collection depicts women as surgeons, painters, bakers, soldiers, and hunters. There are girls riding skateboards and women lifting weights. Look through a sample of current magazines and collect images of women. To what extent do they represent a range of roles? Categorize these images according to the type of product advertised and the situation that photo depicts (e.g. multitasking women holding a tablet and a baby, happy homemaker, etc.). Based on what you find what message do our media give us about gender roles today?

Media continues to use stereotypical roles including females and the elderly. (30 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking) MyLab 6-24. The chapter discusses the “empty self” explanation for the popularity of selfies among young people. Do you agree?

Student responses will vary greatly based upon their personal beliefs. The concept of the “empty self” refers to the decline of shared points of reference over the last 50 or so years as we have experienced a decline in family, community, and traditions. As a result, people have shifted inward and a focus on the self is an unconscious way to compensate for what we have lost. (Chapter Objective 6-1; AACSB: Reflective Thinking) 6-25. Technological advances are creating “superabled” athletes who compete with enhanced bodies such as carbon fiber limbs. Sports organizations such as Major League Baseball and the National Football League already screen carefully for use of steroids and other performance enhancing drugs. Should they also regulate athletes who have artificial limbs or other body parts?

Responses will vary and there is no ‘right’ answer. However, it is becoming commonplace and acceptable in society for men to “enhance” their body. A recent study found that more than 40 percent of boys in middle school and high school say they exercise regularly to increase muscle mass. 38 percent say they use protein supplements, and nearly 6 percent admit they have experimented with steroids. (Chapter Objective 6-3; AACSB: Reflective Thinking, Ethical Understanding and Reasoning Ability)

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Chapter 6: The Self: Mind, Gender, and Body

CASE STUDY TEACHING NOTES Chapter 6 Case Study: Retailer Eloquii Believes That Fashion Doesn't Stop at Size 12 Summary of Case This case reviews recent efforts to capture the plus-size fashion market with a focus on the company Eloquii, a former division of the The Limited. Rather than just “sizing up” The Limited products, Eloquii used draping and unusual cuts to create flattering silhouettes. Challenges serving this market are noted along with the benefits of selling via ecommerce. Competitors are taking notice of Eloquii’s success, expanding their plus-size offerings.

Suggestions for Presentation There is quite a bit of information in the text on the ideals of beauty and how perceptions of beauty are changing around the world. While many countries throughout the world are adopting what has been the Western ideal for quite some time, western countries are seeing a shift in what is considered acceptable among men and women. The Marketing Opportunity special feature focusing on women’s body types can complement this case.

Suggested Answers for Discussion Questions CS 6-1. Explain the success that Eloquii and similar brands have experienced in relation to selfconcept, self-esteem, and self-consciousness. How can the plus-size industry leverage what we know about consumer behavior to address self-esteem issues? Be sure to address the unique challenges facing plus-size brands in today’s marketplace.

Students should display understanding of the following concepts: The self-concept: What are the beliefs that women have about their own qualities and traits and how they evaluate those qualities and traits?

Self-esteem: What is the nature of the positivity of plus-sized women with respect to their self-concepts?

Self-consciousness: How aware are plus-sized women of how they appear to others and how they fit in relative to other women?

Marketers can recognize that plus-size women want to buy products that enhance their self-esteem. Ads that feature women of this size who are dressed fashionably and who carry themselves in a confident manner may cause consumers to compare themselves to the actor/model and desire to look and feel the same way (the CB process of “social comparison”).

Companies marketing these products must be careful not to focus on their customers’ size, even while pointing out features that acknowledge the unique fashion needs of the .

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market. Another challenge is getting consumers to come into stores that are focused on larger sizes, which may cause embarrassment. Also, some plus-size women are hesitant to invest in new clothes, believing they will lose weight and that their purchases will no longer be the right size. (15 minutes, Chapter Objectives 1 & 2, AACSB: Reflective Thinking) CS 6-2. Discuss the real-world changes that appear to be occurring with respect to media images of women. What are the reasons for this? Find two recent articles or examples that illustrate these changes.

This might go two directions. The western standard is characterized by the Playboy study that is highlighted in the chapter showing the trend over the last fifty years has been toward women being thinner and thinner, less voluptuous. However, information contained in the Marketing Opportunity special feature provides a counterpoint to this ideal. The reality is that the average size and weight of women in the United States has been increasing. Dove’s “Real Beauty” campaign has been the most famous to take on the supermodel stereotype that the media has perpetuated for so long. However, the information contained in this case also is evidence of such. (10 minutes, Chapter Objective 1 & 2, AACSB: Reflective Thinking) CS 6-3. How do you reconcile the greater degree of acceptance of plus-size women with the parallel emphasis our society continues to place on thinness (as evidenced by the billions we spend on diet products, exercise, and so on)? Given the health problems associated with obesity (heart disease, diabetes, etc.) should the industry continue to encourage this acceptance? What role is social media playing?

For Eloquii, it is not a matter of encouraging acceptance of obesity or emphasizing thinness as an ideal. The issue is to meet the needs of plus-sized women. As for society, there are always ideals and people who do not meet the ideals. This is not something that can be easily reconciled. However, we might follow the European Parliament’s statement on advocating for realistic beauty images. Its statement is non-binding but sends a clear message. (20 minutes, Chapter Objectives 1 & 3, ACSB: Ethical Understanding and Reasoning) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students to contact the gay and lesbian student club on campus. Select a sample from both genders and ask them about how they view products marketed to their segment. Do they see a difference between what is targeted at them vs. what is targeted at the “straight” segments? Is stereotyping still prevalent? Have them provide examples.

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Look for students to provide authentic responses from both genders. The responses are likely to vary depending on the person who is asked. Students can compare their responses in class and analyze the reasons for the differences. (30 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 2.

Ask a student to bring to class two brands within the same product category that project different images to the consumer. Have the student discuss the projected images by comparing and contrasting the two different brands. What techniques did the marketer use to project these images? Is the self-concept of the buyer important? Explain.

Students may select products that appeal to different lifestyles or different genders. Look for students to identify characteristics of the brand, perhaps by noting the communications, packaging, distribution, pricing strategy, that help it establish and association with the specified image. The student can speculate about whether the marketer is attempting to fill a gap in the buyer’s self-concept. The student should support his/her opinion with an explanation of why s/he believes it is the case. (20 minutes, Chapter Objective 6-2, AACSB: Analytic Skills)

3.

Ask students to interview the managers of two retail-clothing stores. See if they can discover the degree to which the managers believe that consumer personalities and selfimages are important to the marketing and promotional activities of their store. Ask the students if they are in agreement with the managers’ comments.

The responses are likely to vary depending on the person who is asked. Students can compare their responses in class and analyze the reasons for the differences, considering the type of retail store, the price points and level of service offered, and the gender(s) served by the store. (20 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking)

4.

Have male students and female students (separately) interview three women and three men whom they think are just about the right weight for their height and bone structure (instruct students to tell respondents that their responses are completely confidential). The students should ask the respondents if they think of themselves as overweight, underweight, or about right. Then, see if they can determine how the subjects reached their conclusions. Next, ask the subjects if they are doing anything to manage their weight. If possible, have students ask the respondents what their weight and height are.

Discuss how the students seem to feel about their weight.

Subjects may reference ideals associated with the media and other sources of socialization. You may want to ask students to include questions about the subject’s cultural background to see if they can identify any differences based on culture. The stigma associated with weight may prevent some respondents from wanting to share some of this information, especially with members of the opposite sex, which provides a challenge but also provides something else to discuss in class. (60 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

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5.

Have students find media examples of men exhibiting agentic as well as communal goals.

Have them do the same for women. How much did they find that each gender tended to adhere to the societal expectation?

Students should recognize that agentic goals stress assertiveness and mastery, while communal goals stress affiliation and relationships. For the second part, students should analyze whether it was more difficult to identify ads the opposite gender role (malecommunal; female-agentic) and what the portrayals in the ads they selected indicate about societal expectations. (45 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

6.

Ask your students to compile a list of ten household chores. Then have each student interview two married couples (one newlywed and the other seasoned) to determine who usually performs that chore—the husband or the wife. If possible, have the students ask the subject when their spouse is not around. Do they agree? Have students share their findings with the class.

Students may observe more consistency among the seasoned couple than the newlywed couple, but it really depends on whom they speak. Students should look for evidence that the roles have changed or that the roles have not changed with the length of the marriage. (75 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

7.

Assign students to collect advertisements that would tell a stranger something about their self-concept (and image). Have them put these ads on a poster board and bring them to class. Display the poster boards in class and see if the class can match the boards to the correct students.

Students like this assignment because it allows them to use creativity to tell a story about themselves using products and images. It also provides students with an opportunity to get to know one another better as they match the collages to the student. (30 minutes, Chapter Objective 1, AACSB: Reflective Thinking)

8.

Have students consider the ethical consequences of the products and promotional campaigns produced by both the fashion industry and the fast-food industry. Have them develop their thoughts as a written assignment. Have them share their responses in class before turning the assignment in.

Student opinions will vary. Look for students to support their opinions with information from the chapter. (45 minutes, Chapter Objective 6-2, AACSB: Ethical Understanding and Reasoning Ability)

9.

Assign students to collect five ads that show male or female models exhibiting tattoos or body piercing (they may want to consult tattoo-related magazines or they may print ads from the Internet). Comment on the reason for the display. Did the model match the product to be sold? Do people that do not have tattoos or body piercing relate well to the ad? How could you determine this? .

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The chapter notes that tattoos and piercings have become more mainstream. However, tattoos are still associated with rebellion and risk taking. Students should identify whether the image associated with the tattooed/pierced model is congruent with the image of the product. (30 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 10.

Students should visit a website for cosmetic surgeons. Have them find testimonials from actual patients that describe the reasons why they obtained the augmentations that they did.

In addition to reporting about the testimonials, ask students to analyze the reasons why the consumers obtained the augmentation and relate the reasons to the concept of selfconcept. (20 minutes, Chapter Objectives 6-3, AACSB: Reflective Thinking)

11.

Within a 10-mile radius of the campus where the students are taking this class, have students put together a list of the tattoo parlors. Have them call each and find out how long they have been in business. Have them visit a few of the parlors that have been around the longest and interview the owner as to how many shops there were 10 years ago. Have the students then construct a list of the tattoo shops at that point in time.

Students should draw conclusions based on this comparison.

Students should notice an increase in the number of tattoo parlors. They may want to ask the owners of the parlors that have been around the longest how the clientele has changed (lifestyle, number of tattoos, volume of clients) as they form their conclusions.

(90 minutes, Chapter Objective 6-3, AACSB: Analytic Skills)

Group Projects 1.

Ask groups to interview other students on campus and determine the type of behaviors and activities they are engaged in to appeal to others they meet both on and off campus.

Do they change their appearance depending on the person or persons they are meeting with? If they do, how and why? If they do not, why not?

When students think of others they meet on campus, they may think about particular groups (e.g. sorority/fraternity members, members of a sport team) or individuals (fellow students in a business class, parents of roommates, professors). If they do not, they may be prompted to do so. When students think of others they meet off campus, they may think of employers, students from other schools, patrons at an establishment where s/he works, etc. It is likely that students will recognize that we often change our appearance based on our audience and expectations/social norms. (120 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

2.

Have each student interview four people (one each in their 20s, 30s, 40s, and 50s) to determine how important appearance is on the job. Then have students form groups in class to discuss their findings. In addition, have them discuss their own opinions on this issue as well as whether or not they feel an employee’s appearance should be considered .

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in performance evaluations. See if their attitudes change when the employee must deal directly with customers. This activity is also interesting when you ask the subjects about the proper appearance in church or at an important social function.

The type of job the interviewee holds and the individual’s cultural background may have a greater impact on their perception that appearance is important than the age group they belong. Students are likely to have different opinions about the importance of appearance in customer-facing positions, church and social functions. (120 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 3.

Have student groups devise a list of traditional male traits with respect to personal care and hygiene. Then, have them visit a cosmetics section of a major department store and interview salespeople with respect to the nature of their male customers. What are they buying, how are they using it? Then, have the groups compare their interview findings with their list of traditional characteristics.

Traditional male traits regarding personal care and hygiene might reflect ideas that suggest it is not masculine to preen or peacock. However, the increase in male consumption of tanning, teeth whitening, skin care and even make-up products suggest an increased concern for personal appearance and a willingness to act on it. This may be a function of high divorce rates (resulting in men who want to have an improved appearance to start dating again) and women who are part of the work force who put less emphasis on how much money a potential spouse makes and more emphasis on his appearance. (45 minutes, Chapter Objective 6-2, AACSB: Reflective Thinking)

4.

Have each group design a role-playing scenario that deals with one of the following situations: (a) A 40-year-old male suddenly announces to his wife that he plans to get a tattoo. (b) A couple, both 40 years old, discusses with their teenage son or daughter whether tattooing or body piercing would be appropriate. How can arguments be avoided? (c) A female loan officer in a bank has decided to have her nose pierced.

Look for students to adopt the stereotypical characteristics of the individual in the situation they choose to role-play. Students involved in the role-play and student observers may comment on the meaning behind the tattoos and the piercings, and on whether it is culturally acceptable for individuals with different roles to express themselves in this way. (30 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.victoriassecret.com. How does this website use enhancement of the self to attract consumers? Would you expect males to visit the site as well as females? How could the site make it easier for males to purchase from the site (remember, males make .

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up a significant portion of sales in the organization’s retail stores)? Is sizing easy on this site? How could it be improved?

Victoria’s Secret may create a gap between the actual self and the ideal self for women in their target audience who visit the website. They sell the idea that their products can help women fill this gap by making them “sexy” or “angels.” The brand promise to men is similar – it is an idealized version of his partner. The site could make sizing easier (e.g. offering visuals for sizing), which may help broaden the site’s appeal to male consumers. (20 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking) 2.

Go to www.tattoo.com. Need a tattoo? Ever thought about getting one? Well, this website might just get you started in that direction. After reviewing the site, what are your impressions about tattooing? How is a self-concept involved in this process? What might cause you to get a tattoo if you do not already have one? Pretend that you are going to get a tattoo—which one of the designs would you choose? Download it (or copy it).

Bring it to class; show your choice; explain why it is really “you.” Have fun with this one.

Tattoo.com is a site where you can submit your tattoo idea for a free artist’s rendering or explore existing tattoos for inspiration. Students should recognize that tattoos could be used by consumers to make statements about themselves. Tattoos are often associated with adventures or rebellion and venturesomeness. Ask students to explain why they selected the designs they did. (15 minutes, Chapter Objective 6-3, AACSB: Reflective Thinking)

Group Assignments 1.

As a group, visit several social networking sites. How are members at various sites expressing themselves? What kinds of information are they providing? What does that tell the reader about them? Are there differences between the various sites’ members and their expressions?

Students are likely to observe differences between men and women in terms of what and how often each gender shares. You may tie this assignment back to the question of employers looking at information about potential employees on Facebook. (30 minutes, Chapter Objective 6-1, AACSB: Reflective Thinking)

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Chapter 7: Personality, Lifestyles, and Values

Chapter 7: MOTIVATION AND AFFECT

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 7-1. A consumer’s personality influences the way he or she responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results.

7-2. Brands have personalities.

7-3. A lifestyle defines a pattern of consumption that reflects a person’s choices of how to spend his or her time and money, and these choices are essential to define consumer identity.

7-4. Psychographics go beyond simple demographics to help marketers understand and reach different consumer segments.

7-5. Underlying values often drive consumer motivations.

CHAPTER SUMMARY A consumer’s personality influences the way he or she responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results.

The concept of personality refers to a person’s unique psychological makeup and how it consistently influences the way a person responds to his or her environment. Marketing strategies based on personality differences have met with mixed success, partly because of the way researchers have measured and applied these differences in personality traits to consumption contexts. Some analysts try to understand underlying differences in small samples of consumers by employing techniques based on Freudian psychology and variations of this perspective, whereas others have tried to assess these dimensions more objectively in large samples using sophisticated, quantitative techniques.

Brands have personalities.

A brand personality is the set of traits people attribute to a product as if it were a person.

Consumers assign personality qualities to all sorts of inanimate products. Like our relationships with other people, these designations can change over time; therefore, marketers need to be vigilant about maintaining the brand personality they want consumers to perceive. Forging a desirable brand personality often is key to building brand loyalty.

A lifestyle defines a pattern of consumption that reflects a person’s choices of how to spend his or her time and money, and these choices are essential to define consumer identity.

A consumer’s lifestyle refers to the ways he or she chooses to spend time and money and how his or her consumption choices reflect these values and tastes. Lifestyle research is useful for tracking societal consumption preferences and also for positioning specific products and services to different segments. Marketers segment based on lifestyle differences; they often group .

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Section 2: Internal Influences on Consumer Behavior

consumers in terms of their AIOs (activities, interests, and opinions). We associate interrelated sets of products and activities with social roles to form consumption constellations. People often purchase a product or service because they associate it with a constellation that, in turn, they link to a lifestyle they find desirable. Geodemography involves a set of techniques that use geographical and demographic data to identify clusters of consumers with similar psychographic characteristics.

Psychographics go beyond simple demographics to help marketers understand and reach different consumer segments.

Psychographic techniques classify consumers in terms of psychological, subjective variables in addition to observable characteristics (demographics). Marketers have developed systems to identify consumer “types” and to differentiate them in terms of their brand or product preferences, media usage, leisure time activities, and attitudes toward broad issues such as politics and religion.

Underlying values often drive consumer motivations.

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

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Personality,’ ‘’Id,’ ‘Superego,’ ‘Ego,’ ‘Reality Principle’ Here I.

Personality Personality refers to a person’s unique psychological makeup and how it consistently influences the way a person responds to his/her environment.

Although we may undergo dramatic changes as we grow up, in adulthood measures of personality stay relatively stable. Studies of thousands of people’s scores on the widely used measurement instrument the Minnesota Multiphasic Personality Inventory (MMPI) confirm that our personalities tend to stabilize by the age of 30.

A. Consumer Behavior on the Couch: Freudian Theory The psychologist Sigmund Freud proposed that much of one’s adult personality stems from a fundamental conflict between a person’s desire to gratify his or her physical needs and the necessity to function as a responsible member of society.

This struggle plays out in the mind among three systems. i. Freudian Systems The id is about immediate gratification; it operates according to the pleasure principle. The superego is the counterweight to the id. This system is essentially the person’s conscience. The ego is the system that 7-2

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Chapter 7: Personality, Lifestyles, and Values

mediates between the id and the superego. The ego tries to balance these opposing forces according to the reality principle, which means it finds ways to gratify the id that the outside world will find acceptable. ii. “Sometimes a Cigar is Just a Cigar”: Products as Sexual Symbols Most Freudian applications in marketing relate to a product’s supposed sexual symbolism. For example, some analysts speculate that owning a sports car is a substitute for sexual gratification (especially for men going through a “midlife crisis”). iii. Motivational Research Motivational research borrowed Freudian ideas to understand the deeper meanings of products and advertisements. This perspective relies on depth interviews with individual consumers.

Motivational research had great appeal to at marketers for several reasons: • It is less expensive to conduct than large-scale quantitative surveys • The knowledge a company derives from motivational research may help it develop marketing communications that appeal to deepseated needs and thus provide a more powerful hook to reel in consumers • Some of the findings seem intuitively plausible after the fact.

Use Key Term ‘Motivational Research,’ ‘Archetypes’ Here Use Review Question 7-1 Here B. Neo-Freudian Theories i. Karen Horney This pioneering psychotherapist described people as moving toward others (compliant), away from others (detached), or against others (aggressive). ii. Carl Jung Jung believed that the cumulative experiences of past generations shape who we are today. These shared memories create archetypes, or universally recognized ideas and behavior patterns.

C. Trait Theory Popular online matchmaking services such as match.com and eharmony.com offer to create your “personality profile” and then hook you up with other members whose profiles are similar. This approach to personality focuses on the quantitative measurement of personality traits, which we define as the identifiable characteristics that define a person.

Another trait relevant to consumer behavior is frugality. Frugal people deny short-term purchasing whims; they choose instead to resourcefully use what they already own. .

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Section 2: Internal Influences on Consumer Behavior

i. The Big Five Personality Traits (also known as the Neo-Personality Inventory) • Openness to experience • Conscientiousness • Extroversion • Agreeableness • Neuroticism The Myers-Briggs Type Indicator, which is based on Jung’s work, is another widely used personality test. ii. Problems with Trait Theory in Consumer Research The use of standard personality trait measurements to predict product choices has met with mixed success. These are some logical explanations for these less-than-stellar results: • • • • • •

Many of the scales are not sufficiently valid or reliable Psychologists typically develop personality tests for specific populations Often marketers don’t administer the tests under the appropriate conditions The researchers often make changes in the instruments to adapt them to their own situations and needs Many trait scales measure gross, overall tendencies Often, marketers ask consumers to respond to a large number of scales with no advance thought about how they will relate these measures to consumer behavior.

Use Chapter Objective 2 Here Use Key Term ‘Personality Traits,’ ‘Frugality,’ ‘Myers-Briggs Type Indicator’ Here Use Consumer Behavior Challenge 7-6, 7-7 Here II.

Brand Personality A brand personality is the set of traits people attribute to a product as if it were a person. Brand storytelling emphasizes the importance of giving a product a rich background to involve customers in its history or experience. Brand storytelling is based on the tradition of reader-response theory. One popular genre of brand storytelling is what a set of researchers described as an underdog brand biography.

Anthropomorphism refers to the tendency to attribute human characteristics to objects or animals.

Forging a successful brand personality often is key to building brand loyalty.

Marketers who are able to create brand resonance cement a bond with the consumer that is very difficult to break.

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Chapter 7: Personality, Lifestyles, and Values

The phenomenon of Doppelgänger brand image occurs when consumers, unhappy with the brand, create websites to attack the brand or post parodies Use Chapter Objective 3 Here Use Key Term ‘Brand Personality,’ ‘Brand Storytelling,’ ‘Reader-Response Theory,’ ‘Underdog Brand Biography,’ ‘Anthropomorphism,’ ‘Brand Resonance,’ ‘Doppelganger Brand Image’ Here Use Consumer Behavior Challenge 7-10, 7-11 Here III.

Lifestyles and Consumer Identity Lifestyle defines a pattern of consumption that reflects a person’s choices of how to spend his/her time and money. These choices play a key role in defining consumer identity.

A lifestyle marketing perspective recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income.

People, products, and settings combine to express a consumption style (Figure 7.3).

A. Product Complementarity and Co-Branding Strategies A lifestyle marketing perspective implies that we must look at patterns of behavior to understand consumers.

Marketers who understand cross-category relationships may pursue co-branding strategies where they team up with other companies to promote two or more items.

Product complementarity occurs when the symbolic meanings of different products relate to one another. Consumers use these sets of products we call a consumption constellation to define, communicate, and perform social roles.

Use Chapter Objective 4 Here Use Key ‘Lifestyle,’ ‘Lifestyle Marketing Perspective,’ ‘Co-Branding Strategies,’ ‘Product Complementarity,’ ‘Consumption Constellation’ Here Use Review Question 7-3 Here Use Consumer Behavior Challenge 7-12 Here

IV.

Psychographics i. Buyer Personas When marketers combine personality variables with knowledge of lifestyle preferences, they have a powerful lens they can focus on consumer segments. They call these lenses the buyer personas. .

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Section 2: Internal Influences on Consumer Behavior

Psychographics involves the “use of psychological, sociological, and anthropological factors . . . to determine how the market is segmented by the propensity of groups within the market—and their reasons—to make a particular decision about a product, person, ideology, or otherwise hold an attitude or use a medium.” ii. How We Perform a Psychographic Analysis Psychographic studies take several different forms: • A lifestyle profile looks for items that differentiate between users and nonusers of a product.

• A product-specific profile identifies a target group and then profiles these consumers on product-relevant dimensions.

• A general lifestyle segmentation study places a large sample of respondents into homogenous groups based on similarities of their overall preferences.

• A product-specific segmentation study tailors questions to a product category. iii. AIO Dimensions Most contemporary psychographic research attempts to group consumers according to some combination of three categories of variables: activities, interests, and opinions – AIO for short.

Marketers use the results of these studies to: • Define the target market • Create a new view of the market • Position the product • Better communicate product attributes • Develop product strategy • Market social and political issues Clustering together consumers into distinct lifestyle groups known as lifestyle segmentation typologies allows marketers to more easily identify and reach similar consumers.

The best-known lifestyle segmentation system is the Values and Lifestyles System (VALS2). (Figure 7.4) The VALS2 groups are: • Innovators • Thinkers • Achievers • Experiencers • Believers • Strivers 7-6

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Chapter 7: Personality, Lifestyles, and Values

• •

Makers Strugglers

Use Chapter Objective 5 Here Use Key ‘Buyer Personas,’ ‘Psychographics,’ ‘AIO,’ ‘Lifestyle Segmentation Typologies,’ ‘Values and Lifestyles System (VALS2)’ Here Use Review Question 7-4 Here Use Consumer Behavior Challenge 7-13 Here V.

Values A value is a belief that some condition is preferable to its opposite.

Two people can believe in and exhibit the same behaviors (e.g., vegetarianism), but their underlying belief system may be quite different (e.g., animal activism versus health concerns). The extent to which people share a belief system is a function of individual, social, and cultural forces.

A. Core Values In many cases values are universal. Who does not desire health, wisdom, or world peace? What sets cultures apart is the relative importance, or ranking, of these universal values. This set of rankings constitutes a culture’s value system.

It is usually possible to identify a general set of core values that uniquely define a culture. For example, core values such as freedom, youthfulness, achievement, materialism, and activity characterize U.S. culture.

How do we determine what a culture values? We term the process of learning the beliefs and behaviors endorsed by one’s own culture enculturation. In contrast, we call the process of learning the value system and behaviors of another culture (often a priority for those who wish to understand consumers and markets in foreign countries) acculturation.

Materialism refers to the importance people attach to worldly possessions.

Materialists, then, are more likely to value possessions for their status and appearance-related meanings.

One important dimension for materialists is provenance: Shoppers are willing to pay more for an item when they know exactly where it comes from, and they are assured that “real people” have thoughtfully selected the things from which they choose. This process of curation applies to a range of consumer products such as food, clothing, and travel. Of late one important trend that runs counter to materialism is minimalism.

The quest for simplicity has ignited the Tiny House Movement, where homebuyers downscale their lives by moving into houses that range from only .

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100 to 400 square feet. A few hardy souls even commit to living off the grid, without access to creature comforts such as electricity and indoor plumbing.

Decluttering has become an obsession for many.

Crescive norms are subtle norms. Examples are: • A custom • A more • A convention Use Key ‘Value,’ ‘Belief System,’ Value System,’ Core Values,’ ‘Enculturation,’ ‘Acculturation,’ ‘Materialism,’ ‘Provenance,’ ‘Curation,’ ‘Minimalism,’ ‘Tiny House Movement,’ ‘Living Off the Grid,’ ‘Decluttering,’ ‘Crescive’ Here Use Review Question 7-2 Here Use Consumer Behavior Challenge 7-5, 7-8 Here B. How Do Values Link to Behavior i. The Rokeach Value Survey Psychologist Milton Rokeach identified a set of terminal values, or desired end states, that apply to many different cultures. The Rokeach Value Survey also includes a set of instrumental values; actions we need to take to achieve these terminal values. (Table 7.9) ii. The List of Values (LOV) The List of Values (LOV) scale isolates values with more direct marketing applications. This instrument identifies nine consumer segments based on the values members endorse and relates each value to differences in consumption behaviors. iii. The Means-End Chain Model The means–end chain model assumes that people link specific product attribute (indirectly) to terminal values: We choose among alternative means to attain some end state that we value.

A technique researchers call laddering uncovers consumers’ associations between specific attributes and these general consequences. iv. Syndicated Surveys A number of companies track changes in values through large-scale surveys. They sell the results of these studies to marketers, who receive regular updates on changes and trends.

Use Key ‘Rokeach Value Survey,’ ‘List of Values (LOV) Scale,’ ‘Means-End Chain Model,’ ‘Laddering’ Here Use Consumer Behavior Challenge 7-9 Here .

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Chapter 7: Personality, Lifestyles, and Values

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

Marketing Pitfall Colleges have brand personalities. Anomaly attempted an advertising campaign for ESPN based on their notion of the personality at the universities, which was cancelled.

2.

The Tangled Web Is psychographics a four-letter word? The Trump presidential campaign employed a firm to help it persuade voters by illegally accessing their Facebook “likes” was the most prominent misuse of psychographics.

REVIEW 7-1.

How does Freud’s work on the the unconscious mind relate to marketing practice?

Freud believed that much of our personality stems from the desire to satisfy physical needs and the need to be a responsible member of society. The id directs a person towards pleasure and can be used by marketers to increase desire for a good or service.

The superego tempers this urge. According to the reality principle, the ego will try to gratify the id in a way the outside world will find acceptable. Marketers promote products as a means of gratification. In particular, it highlights the potential importance of unconscious motives that guide our purchases. The implication is that consumers cannot necessarily tell us their true motivation when they choose products, even if we can devise a sensitive way to ask them directly. The Freudian perspective also raises the possibility that the ego relies on the symbolism in products to compromise between the demands of the id and the prohibitions of the superego. People channel their unacceptable desire into acceptable outlets when they use products that signify these underlying desires. This is the connection between product symbolism and motivation: The product stands for, or represents, a consumer’s true goal, which is socially unacceptable or unattainable. By acquiring the product, the person vicariously experiences the forbidden fruit. (10 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking)

7-2.

Core values evolve over time. What do you think are the three to five core calues that best descrive U.S. Americans today?

Student reposnses will vary as the list of core values can be long. Students should understand that core values uniquely define a culture and include values such as freedom, youthfulness, materialism, and activity. (5 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

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Section 2: Internal Influences on Consumer Behavior

7-3.

What is the basic philospophy behind a lifestyle marketing strategy?

A lifestyle marketing perspective recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income.(5 minutes, Chapter Objective 7-4, AACSB: Reflective Thinking)

7-4.

How can marketers stay on top of changes in lifesyle trends?

Marketers use psychographics to group customers based on some type of variable, such as activities, interests, or opinions. Many research companies and advertising agencies develop a lifestyle sermentation typology. These incorporate psycological and demopgraphic data to divide adults into groups. These groups indicate what a consumer might be passionate about, such as social issues, achievement, or branding. Based on the needs of the group, marketing can be changed to promote what is most important to that consumer group. (5 minutes, Chapter Objective 7-4, AACSB: Reflective Thinking)

CONSUMBER BEHAVIOR CHALLENGE DISCUSS 7-5. One way to clearly see the impact of shifting cultural values on consumption is to look at the increasing emphasis on the importance of health and wellness. In recent years, topperforming new food/beverage products featured items with natural or organic ingredients, such as Chobani yogurt and Nature’s Pride bread. Where is this trend going—is it just temporary or does it reflect a more permanent change in how U.S. Americans look at what they eat and drink?

A value is a belief that some condition is preferable to its opposite, for example, organic food is believed to be better for you than processed food. Consumers purchase products because they believe these products will help them attain a value related goal, such as improved health. These purchases support the consumer’s value system and core values that define them as consumers. The media acts to reinforce these values, thereby ensuring an ongoing trend in healthier food choices. Acculturation occurs when we share knowledge with others to promote the same goals. The use of natural and organic ingredients is a trend that is becoming more permanent as labeling guidelines and laws are established to better identify natural and organic foods, (5 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

7-6. Is there such a thing as personality? If so, how might you intergrate knowledge about consumer’s personality traits into a marketing strategy?

Responses will differ based on the student’s views. Personality influences the way a consumer responds to stimuli, and marketing efforts capitalize on this with mixed results.

Personality is how we respond to the environemnt. However, there are studies that find .

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Chapter 7: Personality, Lifestyles, and Values

people do not have stable personalities, and that this is just a way to categorize people.

Others studies show that personality is stabilized by the age of 30. We know that people do not act consistantly in all situations. A marketer can capitalize on the unstable personality by highlighting the benefits of buying a product to fit in with peers. A marketer might capitalize on a more mature personality by indicating the same goals. (5 minutes, Chpater Objective 7-1, AACSB: Reflective Thinking) 7-7. The Great Recession is over, so things ar elooking up for many consumers. Still, is frugality the “new normal” or will many of us revert to the free-spending dys before the bubble burst in 2008?

Stundent responses will vary based on their opinion. Students should know that personality focuses on the quantitiative measurement of personality traits, those identifiable characteristics that define a person. Frugality is one such trait. Consumers avoided short term purchasing whims and chose instead to resourcefully use what they already owned.

Analyst predict that more us us will continue to be frugal even when the economy improves.

A recent sruvey of college students in the U.S. shows that frugal consumers are less materialisic and less invoved in brands compared to others. Frugal consumers are also less likely to be concerned about other’s opinions regarding what they buy. (7 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking) 7-8. Is it accuracte to claim that sustainability is now a core value for U.S. Americans? Why or why not?

Responses will differ based on students opinions. Students should understand that a general set of core values uniquely define a culture, and core values evolve over time.

Some analyst feel our focus on physical objects is shifting towards consumption of experiences instead. Consumers in the U.S. are increasingly valueing sustainability and rewarding companies that are environmentally friendly. (5 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking) 7-9. The chapter discusses how Facebook data has been illegally used to develop consumer profiles that can help organizations to tailor messages that will appeal to them. Do improper uses of data as well as data breaches that make us vulnerable to hackers merit additional regulation of social media by government agencies (that might themselves make use of these data for “security” purposes)? What is the proper tradeoff between freedom of information and consumers’privacy?

Responses will differ based on students opinions. The question should lend itself to a lively discussion between those students looking for more government oversight and those believing such matters are better left to individual consumers and companies. ( 5 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

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Section 2: Internal Influences on Consumer Behavior

APPLY 7-10. Identify some of your favorite brands. If each “came to life” as a person, what kind of person would he or she be? Describe the brand personality of each – on what basis do you infer these traits?

The first thing students will have to do to answer this question is to establish the ten personality dimensions. They are free to construct these as they choose; however, the material in the chapter offers some suggestions. The differences will be the result of differences observed. It will be easier for them if they choose products from a brand category with which they are familiar. (Many times students will know more about the brand than what is shown in the advertisement.) Be sure the students demonstrate “how” personalities relate to the advertising and packaging used by the marketer to differentiate these products. (10 minutes Chapter Objective 7-1, AACSB: Reflective Thinking) 7-11. Interview a set of consumers about their favorite brands; things they “can’t live without.”

Based upon the discussion of brand resonance in the chapter, see if you can identify the type of attachment that’s operating for each consumer-brand connection.

Responses will vary based on student opinions. Forging a successful brand personality is key to building brand loyalty. Marketers who are able to create brand resonance cement a bond with the consumer that is very difficult to break. Encourage the students to openly discuss the types of attachments they feel for their “favorite brands.” (10 minutes Chapter Objective 7-2, AACSB: Reflective Thinking) 7-12. Using media that target college students, construct a consumption constellation for this social role. What set of products, activities, and interests tend to appear in advertisements depicting “typical” college students? How realistic is this constellation?

Answers will vary but will include textbooks, dorm life, sports, professors, etc. Most students will think that these factors are realistic. (15 minutes, Chapter Objective 7-2, AACSB: Analytic Skills) 7-13. Extreme sports. YouTube. Pinterest. Veganism. Can you predict what will be “hot” in the near future? Identify a lifestyle trend that is just surfacing in your universe. Describe this trend in detail, and justify your prediction. What specific styles or products relate to this trend?

Do it yourself (DIY), solutions, recipes and crafts. (30 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking,) MyLab 7-14. Collect a sample of ads that appeal to consumers’ values. What value is being communicated in each ad, and how is this done? Is this an effective approach to designing a marketing communication? .

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Chapter 7: Personality, Lifestyles, and Values

A value is a belief that some condition is preferable to its opposite. Two people can believe in and exhibit the same behaviors (e.g., vegetarianism), but their underlying belief system may be quite different (e.g., animal activism versus health concerns). The extent to which people share a belief system is a function of individual, social, and cultural forces. Advocates of a belief system often seek out others with similar beliefs so that social networks overlap; as a result, believers tend to be exposed to information that supports their beliefs. (15 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking) 7-15. Identify three distinct “taste cultures” within your school. Can you generate a “consumption constellation” for each (clothing, music, leisure activities, etc.)?

The answers to this question will be as varied as the students in your class. The creation of the consumption constellations should be utilized to easily engage students. (20 minutes, Chapter Objective 7-3, AACSB: Reflective Thinking)

CASE STUDY TEACHING NOTES Chapter 7 Case Study: Beyoncé’s Beyhive – Honeybees and Killer Bees in Love with Their Queen Summary of Case This case is focused on pop music superstar Beyoncé Knowles, her several business ventures, and most of all, her enthusiastic fan base known as the Beyhive. These passionate fans help promote her brand, but can also be vicious online towards anyone they believe is disrespecting their “queen.” The case provides an opportunity to discuss the marketing of celebrities and also helps explain “brand love” and its benefits for brand extensions.

Suggestions for Presentation This material can be used to illustrate how reference groups also have status symbols.

Suggested Answers for Discussion Questions CS7-1.

Discuss how Beyoncé fans – the Beyhive -- connect with your understanding of the role of consumer identity and lifestyle marketing. Are there particular personality or lifestyle characteristics that members of the Beyhive share?

Student answers may vary but will include a discussion on consumer identity and lifestyle marketing, and draw references from the case study. Personality or lifestyle characteristics of members of the Beyhive might include consumers of pop/R&B music, fashions in line with those Beyoncé wears or sells, and for female fans, the projection of a feeling of confidence and empowerment. (5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)

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Section 2: Internal Influences on Consumer Behavior

CS7-2. Describe Beyoncé’s brand personality. How does it compare with other celebrity brand personalities with which you’re familiar?

Cult brands motivate an almost “magical participation with their customers, helping them to embrace a certain way of being.” Beyoncé fans are drawn to the Beyhive lifestyle based on Maslow’s B-values of beauty and self-sufficiency. They draw energy from their connection with Beyoncé and want to share it with others and defend Beyoncé from any criticism. Other brand personalities discussed by students will vary based on their experiences. (10 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking) CS7-3. What kind of opportunities does the existence of the Beyhive community present to marketers? Consider not only products that Beyoncé might offer, but the many that she could endorse. Develop a list of specific marketing and promotional tactics they might use to reach this target market.

Student answers may vary but should incorporate ideas related to relating to values Beyoncé promotes in her music. To spark ideas, suggest categories such as experiences (travel), prepared food (restaurants), jewelry/watches, and electronics. (10 minutes, Chapter Objective 7-5, AACSB: Application of Knowledge) CS7-4. Could the fanaticism of the most enthusiastic fans of Beyoncé cause other fans on the Beyoncé fan spectrum to be less public about their support? How could a celebrity and its marketing team deal with this conundrum?

There is a definite risk that some fans, particularly more marginal ones, will not want to be seen as being the same as the most intense members of the Beyhive. Beyoncé must walk a tight wire of appreciating her most rabid fans while not encouraging crazy and vindictive behavior that might alienate more moderate fans. The safest and most balanced way to handle this challenge would probably be to make some occasional acknowledgment to the grassroots Beyhive movement (perhaps at concerts) and then to conduct a more traditional fan engagement in official communications like her website.

(10 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking)

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students collect print advertisements that portray some of the aspects of Freudian principles in action. Do they seem effective? Is the message lost in the execution?

Students are likely to select ads that portray phallic symbols, the id, the superego, or conflicts between the two. Students may get confused about the Freudian ego and select .

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Chapter 7: Personality, Lifestyles, and Values

ads that feature characters that have a “big ego," so be sure the students know the difference. (30 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking) 2.

Ask students to examine advertisements and determine which appear to be Freudian or Neo-Freudian in nature. How is this determined? What were the messages in the advertisements?

Freudian ads are likely to be about sexual conflicts, while Neo-Freudian ads are likely to be about relationships. Students may gravitate toward ads with archetypes for the NeoFreudian examples. (20 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking)

3.

Have each student develop a description of his or her own pleasure principle as it relates to consumption. In other words, how is their pleasure maximized and pain minimized when they buy certain types of products? What are the things that marketers do to appeal to this?

Students are likely to select products that provide immediate gratification. Marketers may appeal to consumer emotions and promote the experience of pleasure in the communications for the product. The advertising campaign, “What Happens in Vegas Stays in Vegas,” promises pleasure without consequences. (10 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking)

4.

Have students select an ad or series of ads from a well-known campaign. Based on the ad, how have archetypes been formed among consumers?

Archetypes are universally shared ideas and behavior patterns. These memories would be about birth, death, and the devil (as shown in myths, stories, and dreams). Students may refer to Table 6.1. (30 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking,)

5.

Have each student characterize three different people that they associate with (friends, coworkers, classmates, family members, etc.) based on traits (trait theory). Each of the three should be distinct. How could an advertiser use this information?

Traits include extroversion (socially outgoing) and introversion (quiet and reserved); innovativeness (degree to which a person likes to try new things); materialism (amount of emphasis a person places on acquiring and owning products); self-consciousness (degree to which a person deliberately monitors and controls the image of the self that he or she projects to others); need for cognition (degree to which a person likes to think about things and by extension expends the necessary effort to process brand information); and frugality (frugal people deny short-term purchasing whims in favor of resourcefully using what they own). (15 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking)

6.

Ask students to list three products that seem to have personalities. Describe the personalities. What types of people buy these products? Is there a match between the consumer’s personality and that of the brand or product?

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Section 2: Internal Influences on Consumer Behavior

Examples of personality dimensions include old fashioned, wholesome, traditional, and lively. Depending on the products, the personalities may match the consumer’s or not. If not, remind students that a consumer may select a product with a different personality if s/he desires to have more of that personality trait. (20 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking) 7.

Have students select a product category. Then, have them develop a simple survey asking respondents how much they would be willing to pay for: 1) a generic version of the product, 2) a minor brand in the market, and 3) the market leading brand. Have them distribute this to ten individuals. Have them tally the results as a demonstration of brand equity.

Students should find that people are willing to pay the least for the generic version and the most for the market-leading brand. With ten responses, you also may have one individual that affects the overall averages. (60 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking,)

8.

This chapter mentions that politicians can market themselves through the use of psychographic analyses. What are some of the marketing strategies and techniques used by politicians in recent elections? Did the candidates design special appeals to attract the attention of special target markets? What communication strategies were used? Discuss your observations with the class.

Student responses will depend on the most recent election and whether they select a local or national candidate race. In the 2008 presidential election, President Obama bought commercial time on MTV, Comedy Central, and VH1. He advertised using mobile advertising and banners, as well as on Facebook. He purchased virtual billboards in video games. He used these strategies to reach the younger demographic based on their interests and activities. (20 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking,)

9.

Ask students to find at least two manufacturer’s ads for the same type of product (e.g., clothing, food product, personal care product, etc.) that they think are aimed at different social classes. How do these ads differ?

Look for students to relate the elements of the advertisement, including the social environment, the furnishings in the background, the colors used, etc. to other consumption behaviors of each social class. (20 minutes, Chapter Objective 7-3, AACSB: Reflective Thinking)

10.

Ask a student to bring in an ad in which the brand being marketed was at one time a status symbol, but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste, etc.). Have the student discuss whether the ad still attempts to create that perception.

What new product, if any, has replaced the featured product as a status symbol?

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Chapter 7: Personality, Lifestyles, and Values

For a status symbol to distinguish a customer and show s/he has “made it,” it must be exclusive in some way. Cadillac, for example, hurt its image as a status symbol when it introduced lower priced models and offered inexpensive leases, making the brand more available to those with less money. That, coupled with the fact that it only retained appeal to an older audience that did not want the increasingly desirable foreign luxury cars, hurt its ability to continue to communicate status. (25 minutes, Chapter Objective 73, AACSB: Reflective Thinking 11.

Have a student interview one or more salespeople from one of the following product categories: new or used cars, stereo equipment, clothing, insurance, or real estate. Ask the student to determine the social classes or status of their customers. Does the student recommend that the sales approach will vary depending on the customer’s social class?

The chapter notes some of the differences in how social class members shop. The student’s recommendation may be based on the salesperson’s perceptions of these differences and the students evaluation of whether capitalizing on the differences is ethical. (45 minutes, Chapter Objective 7-3, AACSB: Ethical Understanding and Reasoning Abilities)

12.

Ask students to think of a specific lifestyle (your own, your parent’s, your aspirations, etc.) and then make a list of products and services that are linked in the consumer’s mind to that specific lifestyle. (Hint: You might decorate your living room, design a wardrobe, think of options for a car, etc.)

Student responses will vary. It may be helpful to narrow down the specific task, perhaps using the hints to select one area where the lifestyle might be reflected. (30 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

Group Projects 1.

Have students develop print or video advertisements that apply Freudian and Trait theory principles for products or services that target college students. Have them explain if their advertisements will work effectively. Ask them to test the advertisements with other students that are not in the consumer behavior class.

Students should identify how they have applied Freudian and trait theory principles in their response about whether the advertisements will work effectively. This exercise will provide students with the opportunity to think critically about the application of these theories. (180 minutes, Chapter Objectives 7-1 and7- 2, AACSB: Reflective Thinking and Communication Abilities,)

2.

Let students call the local newspaper and ask about advertising inserts that are specific to a certain area of the city/town. If they do have such a service, are the ads different? How are they different? Do they match the PRIZM for the area?

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Section 2: Internal Influences on Consumer Behavior

This activity is likely to be more meaningful in locations where the local newspaper serves a large metropolitan area. The instructor should learn if the newspaper provides this service before presenting the assignment because if the newspaper does not, the assignment will be less meaningful. (30 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking,) 3.

Using AIO segmentation, have groups of students design a new advertising campaign for a chain of restaurants targeting young professional college graduates. Have them explain the process they went through.

Students should include activities, interests and opinions, and may refer to Table 7.3.

Look for students to relate the message in the advertising campaign to their understanding of the segment based on these three dimensions. (120 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking)

4.

Assign groups of students to go to an airport (or other location where they will find lots of foot traffic) to people watch. Have them classify as many people as possible according to social class based on the appearance and behaviors of individuals. Have the class as a whole discuss their results. What lessons can be learned from this?

It will be challenging for consumers to determine social class based on the appearance of individuals. Further, some social classes are not likely to be represented at the airport.

Students may rely on status symbols and distinguish people based on behaviors, like whether they travel business class or first class. International airports will add another layer of complexity to trying to determine the social class of individuals since status symbols in other countries are different from those in the United States. (90 minutes, Chapter Objective 3, AACSB: Reflective Thinking)

5.

Student groups should identify three examples of lifestyle marketing on the Internet.

Have members of the group demonstrate at least one of these sites in class. Show how the site uses lifestyles to the organization’s advantage.

Students should select websites that appeal to people with common leisure activities and discretionary spending habits. Many sites are aimed at a specific lifestyle so they can attract a certain type of advertiser. The exercise can also be done with blogs. (15 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.bebe.com. Analyze the product offerings for this company based on the id and the superego. Do people who buy this brand do so based on one or the other? Explain how the ego may create balance.

Bebe.com is a website for a women’s clothing retailer. Students will probably associate .

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Chapter 7: Personality, Lifestyles, and Values

the fashions offered by the retailer with the id. However, the website also includes information about bebe’s support of a foundation at times, which students may see as an effort to balance the hedonic aspects promoted on the rest of the website. (20 minutes, Chapter Objective 7-1, AACSB: Reflective Thinking) 2.

First, print out the VALS types along with their descriptions. Hand them to the students and have them select the type they think they are. After noting their choices, have them visit http://www.strategicbusinessinsights.com/vals/presurvey.shtml and take the survey to determine who they really are. Is the self-selection different from the results of the survey? If yes, why do they feel they are different from what the survey states? Can the differences be reconciled?

This exercise should deepen student engagement with the VALS types, which should increase their understanding of the VALS framework. They may also evaluate the measurement used to categorize consumers on the framework. (30 minutes, Chapter Objective 7-2, AACSB: Reflective Thinking)

3.

Go to www.burtsbees.com. How does this site use lifestyle marketing to its advantage?

What lifestyle would be most associated with the products shown on this site? After reading the history of the founders, how were the founders able to project their own lifestyles into the products produced by the company? How could the company expand its sales into other lifestyle segments?

Burt’s Bees sells natural products. Its products are likely to appeal to people whom value natural products and the environment. Its founders include their story on the website and on the packaging for some of the products. Look for students to talk about expansion into other lifestyle segments in ways that does not alienate the current lifestyle segment. (15 minutes, Chapter Objective 7-5, AACSB: Reflective Thinking)

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Chapter 8: Attitudes and Persuasive Communications

Chapter 8: ATTITUDES AND PERSUASIVE COMMUNICATIONS

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 8-1. It is important for consumer researchers to understand the nature and power of attitudes.

8-2. We form attitudes in several ways.

8-3. Persuasion involves an active attempt to change attitudes.

CHAPTER SUMMARY It is important for consumer researchers to understand the nature and power of attitudes.

An attitude is a predisposition to evaluate an object or product positively or negatively. We form attitudes toward products and services, and these attitudes often determine whether we will purchase or not.

Three components make up an attitude: beliefs, affect, and behavioral intentions.

Attitude researchers traditionally assumed that we learn attitudes in a fixed sequence: First we form beliefs (cognitions) about an attitude object, then we evaluate that object (affect), and then we take some action (behavior). Depending on the consumer’s level of involvement and the circumstances, though, his attitudes can result from other hierarchies of effects as well. A key to attitude formation is the function the attitude holds for the consumer (e.g., is it utilitarian or ego defensive?).

We form attitudes in several ways.

One organizing principle of attitude formation is the importance of consistency among attitudinal components—that is, we alter some parts of an attitude to be in line with others. Such theoretical approaches to attitudes as cognitive dissonance theory, self-perception theory, and balance theory stress the vital role of our need for consistency.

Multiattribute attitude models underscore the complexity of attitudes: They specify that we identify and combine a set of beliefs and evaluations to predict an overall attitude. Researchers integrate factors such as subjective norms and the specificity of attitude scales into attitude measures to improve predictability.

Persuasion involves an active attempt to change attitudes.

The communications model specifies the elements marketers need to transmit meaning. These include a source, a message, a medium, a receiver, and feedback.

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Section 3: Choosing and Using Products

The traditional view of communications regards the perceiver as a passive element in the process. New developments in interactive communications highlight the need to consider the active roles a consumer plays when he or she obtains product information and builds a relationship with a company. Advocates of permission marketing argue that it’s more effective to send messages to consumers who have already indicated an interest in learning about a product than trying to hit people “cold” with these solicitations.

Two important characteristics that determine the effectiveness of a source are its attractiveness and credibility.

Some elements of a message that help to determine its effectiveness include the following: communication of the message in words or pictures; employment of an emotional or a rational appeal; frequency of repetition; conclusion drawing; presentation of both sides of the argument; and inclusion of fear, humor, or sexual references. Advertising messages often incorporate elements from art or literature, such as dramas, lectures, metaphors, allegories, and resonance.

Reality engineering occurs when marketers appropriate elements of popular culture to use in their promotional strategies.

The relative influence of the source versus the message depends on the receiver’s level of involvement with the communication. The Elaboration Likelihood Model (ELM) specifies that source effects are more likely to sway a less-involved consumer, whereas a more-involved consumer will be more likely to attend to and process components of the actual message.

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Attitude,’ ‘Attitude Object,’ ‘Functional Theory of Attitudes’ Here Use Review Question 8-1 Here I.

The Power of Attitudes People use the term attitude in many ways. For our purposes, an attitude is a lasting, general evaluation of people (including oneself), objects, advertisements or issues.

We call anything that has an attitude an attitude object (Ao).

Consumers have attitudes toward a wide range of attitude objects, from productspecific behaviors (e.g., you use Crest toothpaste rather than Colgate) to more general, consumption-related behaviors (e.g., how often you should brush your teeth).

A psychologist named Katz developed the functional theory of attitudes to explain how attitudes facilitate social behavior. According to this approach, attitudes exist because they serve some function for the person. Consumers who expect that they will need to deal with similar situations at a future time will be more likely to start to form an attitude in anticipation.

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Use Key Term ‘Utilitarian Function,’ ‘Value-Expressive Function,’ ‘Ego-Defensive Function,’ ‘Knowledge Function’ Here There are different functions of attitudes: • • • •

Utilitarian function—The utilitarian function relates to the basic principles of reward and punishment.

Value-expressive function—Attitudes that perform a value-expressive function relate to the consumer’s self-concept or central values. A person forms a product attitude in this case because of what the product says about him or her as a person.

Ego-defensive function—Attitudes we form to protect ourselves either from external threats or internal feelings perform an ego-defensive function.

Knowledge function—We form some attitudes because we need order, structure, or meaning. A knowledge function applies when a person is in an ambiguous situation or when he or she confronts a new product.

Use Key Term ‘Behavior,’ ‘Cognition,’ ‘ABC Model of Attitudes,’ ‘Hierarchy of Effects,’ ‘High-Involvement Hierarchy,’ ‘Low-Involvement Hierarchy,’ ‘Experiential Hierarchy,’ ‘Cognition’ Here Use Review Question 8-2 Here Use Consumer Behavior Challenge 8-32 Here A. The ABC Model of Attitudes Behavior refers to the actions s/he takes toward the object. Cognition is what you believe to be true about the attitude object. You can remember these three components of an attitude as the ABC model of attitudes. The ABC model emphasizes the interrelationships among knowing, feeling, and doing. i. Hierarchies of Effects Which comes first: knowing, feeling, or doing? The concept of hierarchy of effects may be used to explain the relative impact of the three components. Each hierarchy specifies that a fixed sequence of steps occur en route to an attitude. (Figure 8.1) The High-Involvement Hierarchy: Think → Feel → Do. The highinvolvement hierarchy assumes that a person approaches a product decision as a problem-solving process. First, one forms beliefs about a product as they accumulate knowledge (beliefs) regarding relevant attributes. Next, the individual evaluates these beliefs and forms a feeling about the product (affect). Then they engages in a relevant behavior, The Low-Involvement Hierarchy: Think → Do → Feel. The lowinvolvement hierarchy of effects assumes that the consumer initially doesn’t have a strong preference for one brand over another; instead, s/he .

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acts on the basis of limited knowledge and forms an evaluation only after he or she has bought the product.

The Experiential Hierarchy: Feel → Do → Think. According to the experiential hierarchy of effects, we act on the basis of our emotional reactions.

In a process termed emotional contagion, messages that happy people deliver enhance our attitude toward the product.

Use Chapter Objective 2 Here Use Key Term ‘Compliance,’ ‘Identification,’ ‘Internalization’ Here Use Review Question 8-3, 8-4 Here Use Consumer Behavior Challenge 8-33 Here II.

How Do We Form Attitudes We form an attitude in several different ways, depending on the particular hierarchy of effects that operates. i. All Attitudes Are Not Created Equal It’s important to distinguish among types of attitudes because not all form in the same way.

Consumers vary in their commitment to an attitude; the degree of commitment relates to their level of involvement with the attitude object.

Three (increasing) levels of commitment are: 1. Compliance—At the lowest level of involvement, compliance, we form an attitude because it helps us to gain rewards or avoid punishment. This attitude is superficial.

2. Identification—Identification occurs when we form an attitude to conform to another person’s or group’s expectations.

3. Internalization—At a high level of involvement we call internalization, deep-seated attitudes become part of our value system. ii. The Consistency Principle According to the principle of cognitive consistency, we value harmony among our thoughts, feelings, and behaviors, and a need to maintain uniformity among these elements motivates us. This desire means that, if necessary, we change our thoughts, feelings, or behaviors to make them consistent with other experiences. iii. Self-Perception Theory Self-perception theory provides an alternative explanation of dissonance effects. The theory states that we maintain consistency as we infer that we .

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must have a positive attitude toward an object if we have bought or consumed it.

Self-perception theory helps to explain the effectiveness of a strategy salespeople call the foot-in-the-door technique: They know that consumers are more likely to comply with a big request if they agree to a smaller one first. iv. Balance Theory Balance theory considers how people perceive relations among different attitude objects, and how they alter their attitudes so that these remain consistent (or “balanced”).

Balance theory perspective involves relations (always from the perceiver’s subjective point of view) among three elements, so we call the resulting attitude structures triads. Each triad contains (1) a person and his or her perceptions of (2) an attitude object and (3) some other person or object.

We link elements together in one of two ways: They can have either a unit relation, where we think that a person is somehow connected to an attitude object (something like a belief), or they can have a sentiment relation, where a person expresses liking or disliking for an attitude object.

This “balancing act” is the basis of celebrity endorsements, in which marketers hope that the star’s popularity will transfer to the product or when a nonprofit organization recruits a celebrity to discourage harmful behaviors.

Use Key Term ‘Principle of Cognitive Consistency,’ ‘Self-Perception Theory,’ ‘Foot-In-TheDoor Technique,’ ‘Balance Theory’ Here Use Review Question 8-5, 8-6, 8-7 Here B. Attitude Models Attitude models specify the different elements that might work together to influence people’s evaluations of attitude objects. i. Multiattribute Attitude Models Because attitudes are so complex, marketing researchers may use multiattribute attitude models to understand them. This type of model assumes that consumers’ attitude toward an attitude object (Ao) depends on the beliefs they have about several of its attributes.

Basic multiattribute models contain three specific elements: • Attributes are characteristics of the Ao. A researcher tries to identify the attributes that most consumers use when they evaluate the Ao. .

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• •

Beliefs are cognitions about the specific Ao (usually relative to others like it). A belief measure assesses the extent to which the consumer perceives that a brand possesses a particular attribute.

Importance weights reflect the relative priority of an attribute to the consumer. Although people might consider an Ao on a number of attributes, some attributes are likely to be more important than others (i.e., consumers will give them greater weight). Furthermore, these weights are likely to differ across consumers.

The most influential multiattribute model is called the Fishbein Model, named after its primary developer. The model measures three components of attitude: • Salient beliefs people have about an Ao (i.e., those beliefs about the object a person considers during evaluation).

• Object-attribute linkages, or the probability that a particular object has an important attribute.

• Evaluation of each of the important attributes.

When we combine these three elements, we compute a consumer’s overall attitude toward an object (we’ll see later how researchers modify this equation to increase its accuracy).

Use Key Term ‘Attitude Models,’ ‘Multiattribute Attitude Models,’ ‘Fishbein Model’ Here Use Review Question 8-8, 8-9 Here Use Consumer Behavior Challenge 8-34 Here ii. Marketing Attribute of the Multiattribute Models • Capitalize on relative advantage • Strengthen perceived product/attribute linkages • Add a new attribute • Influence competitors’ ratings Use Key Term ‘Theory of Reasoned Action,’ ‘Normative Influence,’ ‘Subjective Norm (SN),’ ‘Attitude Toward the Act of Buying (Aact),’ ‘Attitude Accessibility Perspective’ Here Use Review Question 8-10 Here C. Do Attitudes Predict Behavior?

Consumer researchers have used multiattribute models for many years, but a major problem plagues them: In many cases, a person’s attitude doesn’t predict behavior. In response, researchers tinkered with the Fishbein Model to improve its predictive ability. They call the newer version the theory of reasoned action.

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i. Intentions Versus Behavior Normative influence can result in a contradiction between what we say we will do and what we actually do when the moment of truth arrives.

The subjective norm (SN) takes into account for the effects of what we believe other people think we should do. Two factors are used to measure SN: (1) the intensity of a normative belief (NB) that others believe we should take or not take some action and (2) the motivation to comply (MC) with that belief (i.e., the degree to which the consumer takes others’ anticipated reactions into account when she evaluates a purchase).

The newer model also measures attitude toward the act of buying (Aact), rather than only the attitude toward the product itself. In other words, it focuses on the perceived consequences of a purchase. Knowing how someone feels about buying or using an object turns out to be more valid than merely knowing the consumer’s evaluation of the object itself. ii. Obstacles to Predicting Behavior in the Theory of Reasoned Action Some other obstacles to prediction researchers encounter are: • The model tries to predict actual behavior (e.g., taking a diet pill), not the outcomes of behavior that some studies assess (e.g., losing weight).

• Some outcomes are beyond our control, such as when the purchase requires the cooperation of other people.

• The basic assumption that behavior is intentional may be invalid in a variety of cases, including impulsive acts, sudden changes in situation, novelty seeking, or even simple repeat buying. This Vietnamese ad employs social.

• Measures of attitude often do not really correspond to the behavior they are supposed to predict, either in terms of the Ao or when the act will occur.

• The longer the time between the attitude measurement and the behavior it is supposed to assess, the weaker the relationship will be.

• We form stronger and more predictive attitudes through direct, personal experience with an Ao than those we form indirectly through advertising.

According to the attitude accessibility perspective, behavior is a function of the person’s immediate perceptions of the Ao, in the context of the situation in which he or she encounters it.

Use Chapter Objective 3 Here Use Key Term ‘Persuasion’ Here Use Review Question 8-11, 8-12 Here .

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III.

Persuasion: How Do Marketers Change Attitudes?

Persuasion is an active attempt to change attitudes. This is of course job number one for many marketing communicators.

Here are some basic psychological principles that influence people to change their minds or comply with a request: • Reciprocity—We are more likely to give if first we receive.

• Scarcity—Like people, items are more attractive when they aren’t available.

• Authority—We believe an authoritative source much more readily than one that is less authoritative.

• Consistency—People try not to contradict themselves in terms of what they say and do about an issue.

• Liking—We agree with those we like or admire.

• Consensus—We consider what others do before we decide what to do.

A. Decisions, Decisions: Tactical Communications Options In the development of any new advertising campaign, several questions must be answered: • Who is the intended audience?

• How should the message be constructed?

• What media should be used?

• What characteristics of the target audience might lead to acceptance of the product?

Use Key Term ‘Communications Model,’ ‘Permission Marketing’ Here Use Review Question 8-13 Here B. The Elements of Communication The communications model (Figure 8.3) model specifies the elements marketers need to control to communicate with customers: • Source: Where the communication originates.

• Message: There are many ways to say something, and the structure of the message has a significant effect on how we perceive it.

• We transmit the message via a medium.

• Receivers interpret the message.

• The source receives feedback so that the marketer can use receivers’ reactions to modify aspects of the message as necessary. i. An Updated View: Interactive Communications The traditional communications model doesn’t tell the whole story— especially in today’s dynamic world of interactivity, where consumers have many more choices available to them and greater control over which messages they choose to process.

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Use Key Term ‘Source Credibility,’ ‘Source Credibility,’ ‘Fake News,’ ‘Sleeper Effect,’ ‘Native Advertising,’ ‘Knowledge Bias,’ ‘Reporting Bias’ Here Use Review Question 8-14 Here Permission marketing acknowledges that a marketer will be more successful when they communicate with consumers who have already agreed to listen to them (opt-in).

C. The Source i. Source Credibility Source credibility refers to a communicator’s expertise, objectivity, or trustworthiness. A credible source is particularly persuasive when the consumer has yet to learn much about a product or form an opinion of it.

Some subtle cues, such as disclaimers or fake news (hoaxes spread by hackers or other outsiders) may reduce source credibility.

Sincerity is particularly important when a company tries to publicize its corporate social responsibility (CSR) activities that benefit the community.

A sleeper effect is said to occur when people, over time, “forget” the negativity associated with a particular information source and change their attitudes to align with that advocated by the source.

Native advertising occurs when digital messages are designed to blend into the editorial content of the publications in which they appear.

Knowledge bias implies that a source’s knowledge about a topic is not accurate. Reporting bias occurs when a source has the required knowledge but we question their willingness to convey it accurately Use Key Term ‘Source Attractiveness,’ ‘Shared Endorsements,’ ‘Spokescharacters’ Here Use Review Question 8-15, 8-16 Here Use Consumer Behavior Challenge 8-24, 8-35 Here ii. Source Attractiveness: “What is Beautiful is Good” Source attractiveness refers to the social value recipients attribute to a communicator. This value relates to the person’s physical appearance, personality, social status, or similarity to the receiver (we like to listen to people who are like us). .

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Our desire to know what our peers think helps to explain why both Facebook and Google now allow shared endorsements; users who follow or rate a product or service may find that their endorsements show up on the advertiser’s page. iii. Star Power: Celebrities as Communications Sources Star power works because celebrities embody cultural meanings—they symbolize important categories like status and social class. iv. Nonhuman Endorsers A celebrity endorsement strategy has its drawbacks. Because of this, marketers seek alternative sources, including cartoon characters and mascots.

Spokescharacters boost viewers’ recall of claims that ads make and also yield higher brand attitudes.

D. The Message Characteristics of the message itself help determine its impact on attitudes. These variables include how we say the message as well as what we say. (Table 8.2) i. Should We Use Pictures or Words?

The saying “One picture is worth a thousand words” captures the idea that visuals are effective, especially when the communicator wants to influence receivers’ emotional responses.

However, a picture is not always as effective when it communicates factual information. Verbal elements are more effective when an accompanying picture reinforces them, especially if they frame the illustration. Visual images, in contrast, allow the receiver to chunk information at the time of encoding Use Key Term ‘Mere Exposure Phenomenon,’ ‘Two-Factor Theory,’ ‘Refutational Arguments,’ ‘Comparative Advertising,’ ‘Source Derogation’ Here Use Review Question 8-17, 8-18, 8-19 Here Use Consumer Behavior Challenge 8-25, 8-26, 8-27 Here ii. Should We Repeat the Message?

People tend to like things that are more familiar to them, even if they were not that keen on them initially. Psychologists call this the mere exposure phenomenon.

The two-factor theory explains the fine line between familiarity and boredom; it proposes that two separate psychological processes operate when we repeatedly show an ad to a viewer. The positive side of repetition 8-10

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is that it increases familiarity and thus reduces uncertainty about the product. The negative side is that over time boredom increases with each exposure. iii. How Do We Structure the Argument?

Most messages merely present one or more positive attributes about the product or reasons to buy it. These are supportive arguments. An alternative is to use a two-sided message, in which the message presents both positive and negative information.

Under the right circumstances, refutational arguments that first raise a negative issue and then dismiss it can be quite effective. This approach increases source credibility because it reduces reporting bias. iv. Should We Compare Our Product to Our Competitor?

Comparative advertising refers to a message that compares two or more recognizable brands and weighs them in terms of one or more specific attributes.

Although some comparative ads result in desired attitude changes, they may also be lower in believability and stir up source derogation (i.e., the consumer may doubt the credibility of a biased presentation).

Use Key Term ‘Martyrdom Effect,’ ‘Reality Engineering,’ ‘Guerrilla Marketing,’ ‘Product Placement,’ ‘Advergaming’ Here E. New Message Formats: The Social Media Revolution People tend to donate more money when they have to suffer a bit for the cause; researchers label this the martyrdom effect. i. Reality Engineering Reality engineering occurs when marketers appropriate elements of popular culture and use them as promotional vehicles.

The grassroots efforts we often witness today to capture our attention epitomize guerrilla marketing: Promotional strategies that use unconventional means and venues to encourage word of mouth about products. ii. Product Placement Product placement is the insertion of real products in fictional movies, TV shows, books, and plays.

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iii. Advergaming The future is bright for advergaming, where online games merge with interactive advertisements that let companies target specific types of consumers.

Use Key Term ‘Sex Appeals,’ ‘Humor Appeals,’ ‘Counterarguing,’ ‘Fear Appeals, ‘Allegory,’ ‘Metaphor,’ ‘Simile,’ ‘Resonance’ Here Use Review Question 8-20 Here Use Consumer Behavior Challenge 8-28, 8-29, 8-30 Here F. Types of Message Appeals i. Emotional Versus Rational Appeals Which is better: to appeal to the head or to the heart? The answer often depends on the nature of the product and the type of relationship consumers have with it. It’s hard to gauge the precise effects of rational versus emotional appeals. ii. Sex Appeals Echoing the widely held belief that “sex sells,” many marketing communications for products from perfumes to autos feature heavy doses of erotic suggestions that range from subtle hints to blatant displays of skin. (Sex appeals) iii. Humor Appeals Do humor appeals work? Overall, funny advertisements do get attention.

However, the verdict is mixed as to whether humor affects recall or product attitudes in a significant way. A funny ad does inhibit counterarguing (in which a consumer thinks of reasons why he or she doesn’t agree with the message). iv. Fear Fear appeals emphasize the negative consequences that can occur unless the consumer changes a behavior or an attitude. v. Messages as Art Form: Metaphors Be with You Many ads take the form of an allegory, which is a story about an abstract trait or concept that advertisers tell in the context of a person, animal, vegetable, or object.

A metaphor places two dissimilar objects into a close relationship such that “A is B,” whereas a simile compares two objects, “A is like B.” A and B, however dissimilar, share some quality that the metaphor highlights.

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Resonance is another type of literary device advertisers frequently use. It is a form of presentation that combines play on words with a relevant picture.

Use Key Term ‘Elaboration Likelihood Model (ELM)’ & ‘Paradox of Low Involvement’ Here Use Review Question 8-21, 8-22 Here Use Consumer Behavior Challenge 8-36, 8-37, 8-38, 8-39, 8-40 Here G. The Source Versus the Message: Do We Sell the Steak or the Sizzle?

The Elaboration Likelihood Model (ELM) assumes that, under conditions of high involvement, we take the central route to persuasion. Under conditions of low involvement, we take a peripheral route instead. (Figure 8.6) i. The Central Route to Persuasion According to the ELM, when we find the information in a persuasive message relevant or interesting, we pay careful attention to it. In this event, we focus on the arguments the marketer presents and generate cognitive responses to this content. ii. The Peripheral Route to Persuasion The peripheral route to persuasion highlights the paradox of low involvement: When we don’t care as much about a product, the way it’s presented increases in importance.

Use Review Question 8-23 Here Use Consumer Behavior Challenge 8-31, 8-41 Here End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Pitfall Can a product’s design ever be too beautiful? Although we know that consumers respond positively to aesthetically, pleasing options, in some cases, the packaging can be so attractive that consumers are reluctant to use them.

2.

Marketing Opportunity Consumers like to publicize their connections with successful people or organizations. It is called basking in reflected glory. As a result, many colleges with strong athletic organizations reap huge revenues by licensing their school’s name and logo.

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3.

Marketing Pitfall There is an inconsistency between attitude and behavior in terms of major public health problems The CVS chain aggressively reminds people to fill their prescriptions with texts, e-mails, and phone calls.

4.

The Tangled Web Sock puppeting refers to a company executive or agent posing as someone else to tout the organization in social media communities. Paid influencer programs are also called sock puppeting. These are essentially sponsored conversations. The FTC updated its truth-in-advertising policy to require paid communicators to disclose their relationship to the audience.

5.

Marketing Pitfall

Western actors like George Clooney resist many television commercials in the U.S. but endorse products in Japan. Visit japander.com to see such commercials.

6.

Net Profit Sites like Pandora track user preference. They then work to refine playlists and how often they should repeat songs, developing variations based on time of day, location of the listener and other variables.

REVIEW 8-1.

How can an attitude play an ego-defensive function?

Either attitudes we form to protect ourselves from external threats or internal feelings perform an ego-defensive function. An early marketing study indicated that housewives in the 1950s resisted the use of instant coffee because it threatened their conception of themselves as capable homemakers. (5 minutes, Chapter Objective 8-1, AACSB: Reflective Thinking)

8-2.

Describe the ABC model of attitudes.

Most researchers agree that an attitude has three components: affect, behavior, and cognition. Affect refers to the way a consumer feels about an attitude object. Behavior involves the person’s intentions to do something with regard to an attitude object (but, as we will discuss at a later point, an intention does not always result in an actual behavior). Cognition refers to the beliefs a consumer has about an attitude object. We can remember these three components of an attitude as the ABC model of attitudes. (10 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

8-3.

List the three hierarchies of attitudes, and describe the major differences among them.

The three hierarchies are: 1) the Standard Learning Hierarchy (beliefs/affect/behavior), 2) the Low-Involvement Hierarchy (beliefs/behavior/affect), and 3) the Experiential Hierarchy (affect/behavior/beliefs). The differences are in the order the consumer .

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processes information, evaluate feelings and experiences the product. The standard learning hierarchy is most likely to be used in high involvement purchase situations, while the experiential hierarchy is more likely to be associated with impulse purchases.

(15 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking) 8-4.

How do levels of commitment to an attitude influence the likelihood it will become part of the way we think about a product in the long term?

Consumers vary in their commitment to an attitude; the degree of commitment is related to their level of involvement with the attitude object. Consumers are more likely to consider brands that engender strong positive attitudes. (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

8-5.

We sometimes enhance our attitude toward a product after we buy it. How does the theory of cognitive dissonance explain this change?

The theory of cognitive dissonance states that when a person is confronted with inconsistencies among attitudes or behaviors, he or she will take some action to resolve this “dissonance,” perhaps by changing an attitude or modifying a behavior. The theory has important ramifications for attitudes, because people are often confronted with situations in which there is some conflict between their attitudes and behaviors. Thus, if a person encounters negative information about a product after purchasing it, they may discount that information and focus on positive information that would reaffirm their reasons for having purchased. (15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

8-6.

What is the foot-in-the-door technique? How does self-perception theory relate to this effect?

Self-perception theory helps to explain the effectiveness of a sales strategy called the foot-in-the-door technique that is based on the observation that a consumer is more likely to comply with a request if he or she has first agreed to comply with a smaller request.

This relates to self-perception theory because the consumer examines his/her behavior to determine what his/her attitudes are. If the consumer has said yes to a small request, s/he may assume that his/her attitude is favorable and comply with a bigger request. (14 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

8-7.

According to balance theory, how can we tell if a triad is balanced or unbalanced? How can consumers restore balance to an unbalanced triad?

Components of a triad can be either positive or negative. More importantly, people alter these components in order to make relations among them consistent. The theory specifies that people desire relations among elements in a triad to be harmonious, or balanced. If they are not, a state of tension will result until somehow the person changes his perceptions and restores balance. (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) .

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8-8.

Describe a multiattribute attitude model, listing its key components.

A multiattribute model assumes that a consumer’s attitude (evaluation) toward an attitude object (Ao) depends upon the beliefs he or she has about several or many attributes of the object and the importance of those attributes. The use of a multi-attribute model implies that identifying these specific beliefs and combining them to derive a measure of the consumer’s overall attitude can predict an attitude toward a product or brand. (5 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

8-9.

“Do as I say, not as I do.” How does this statement relate to attitude models?

Many studies have obtained a very low correlation between a person’s reported attitude toward something and his or her actual behavior toward it. Some researchers have been so discouraged that they have questioned whether attitudes are of any use at all in understanding behavior. (5 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

8-10. What is a subjective norm, and how does it influence our attitudes?

The value of SN is arrived at by including two factors: (1) the intensity of a normative belief (NB) that others believe an action should be taken or not taken, and (2) the motivation to comply (MC) with that belief (i.e., the degree to which the consumer takes others’ anticipated reactions into account when evaluating a course of action or a purchase). It influences attitudes because consumers are likely to be more comfortable with attitudes that are consistent with subjective norms. (10 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking) 8-11. What are three obstacles to predicting behavior even if we know a person’s attitudes?

Some outcomes are beyond the consumer’s control; behavior is not always intentional (impulsive actions; situation changes, novelty seeking); the measures of attitudes may not be specific enough to behavioral intentions; the time frame when the attitude was measured may have been too far removed from the behavior; personal experience may be more powerful than attitudes formed from advertising; and cultural roadblocks (e.g. involuntary acts, the impact of subjective norms, non-linear perspectives on time, fatalistic cultures) may interfere. (105 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking) 8-12. Describe the Theory of Reasoned Action. Why might it not be equally valuable when it is applied to non-Western cultures?

The theory of reasoned action has primarily been applied in Western settings. Certain assumptions inherent in the model may not necessarily apply to consumers from other cultures. Several cultural roadblocks diminish the universality of the theory of reasoned action: .

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• • • •

Some acts are not voluntary, and the model predicts the performance of a voluntary act.

The relative impact of subjective norms may vary across cultures.

The model presupposes consumers are thinking ahead, while not all cultures subscribe to the linear perspective on time.

Some (more fatalistic) cultures do not believe the consumer controls his/her actions.

(20 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking and Multicultural and Diversity Understanding)

8-13. List three psychological principles related to persuasion.

The psychological principles include reciprocity, scarcity, authority, consistency, liking, and consensus. (3 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-14. Describe the elements of the traditional communications model, and tell how the updated model differs.

The traditional model of communication includes the components of source, channel, message, receiver, and feedback. The updated model (interactive model) recognizes that there are multiple senders and multiple receivers, all sending and receiving information simultaneously through a central medium. It also recognizes the importance of permission marketing. (15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-15. What is source credibility, and what are two factors that influence our decision as to whether a source is credible?

Source credibility refers to a source’s perceived expertise, objectivity, or trustworthiness.

Factors affecting source credibility are: 1) whether the source’s qualifications are viewed as relevant, and 2) whether or not there is a bias associated with the source. (5-7 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-16. What is a halo effect, and why does it happen?

The halo effect occurs when persons who rank high on one dimension are assumed to excel on others as well. It happens because of the transfer of meaning from one object to another. Classical conditioning can help explain how the halo effect works. (5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-17. Marketers must decide whether to incorporate rational or emotional appeals in a communications strategy. Describe conditions that are more favorable to one or the other.

The answer often depends on the nature of the product and the type of relationship consumers have with it. It is hard to gauge the precise effects of rational or emotional appeals. While recall ability of ad content tends to be better for “thinking” ads than for “feeling” ads, conventional measures of advertising effective may not be appropriate to .

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measure the cumulative effects of emotional ads. These measures assess cognitive responses and may penalize feeling ads because the reactions are not as easy to articulate. (5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-18. When should a marketer present a message visually versus verbally?

Visuals should be used when the marketer wants to generate an emotional response.

Because it requires more effort to process, a verbal message is most appropriate for high-involvement situations, such as in print contexts in which the reader is motivated to really pay attention to the advertising. Because verbal material decays more rapidly in memory, messages require frequent exposure to obtain the desired effect. Visual images, in contrast, allow the receiver to chunk information at the time of encoding. Chunking results in a stronger memory trace that aids retrieval over time.

Visual elements may affect brand attitudes in one of two ways. First, the consumer may form inferences about the brand and change his beliefs because of an illustration’s imagery. For example, people in a study who saw an ad for a facial tissue accompanied by a photo of a sunset were more likely to believe that the brand came in attractive colors. Second, brand attitudes may be affected more directly; for example, a strong positive or negative reaction the visual elements cause will influence the consumer’s attitude toward the ad (Aad) that will then affect brand attitudes (Ab). (15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-19. How does the Two-Factor Theory explain the effects of message repetition on attitude change?

The two-factor theory explains the fine line between familiarity, which can result in favorable attitudes through the mere exposure effect, and boredom, which can result in habituation where the consumer stops paying attention to the ad, by proposing that two separate psychological processes are operating when a person is repeatedly exposed to an ad. The positive side of repetition is that it increases familiarity and thus reduces uncertainty about the product. The negative side is that over time boredom increases with each exposure. At some point, the amount of boredom incurred begins to exceed the amount of uncertainty reduced, resulting in wear-out. (10 minutes, Chapter Objective 83, AACSB: Reflective Thinking) 8-20. Do humorous ads work? If so, under what conditions?

Humor is more likely to be effective when the brand is clearly identified and the funny material does not “swamp” the message. This danger is similar to one we have already discussed about beautiful models diverting attention from copy points. Subtle humor is usually better, as is humor that does not make fun of the potential consumer. Finally, humor should be appropriate to the product’s image. An undertaker or a bank might want to avoid humor, whereas other products may adapt to it quite well. (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

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8-21. Why do marketers use metaphors to craft persuasive messages? Give two examples of this technique.

Metaphors allow the marketer to activate meaningful images and apply them to everyday events. In the stock market, “white knights” battle “hostile raiders” using “poison pills;” Tony the Tiger equates cereal with strength, and the Merrill Lynch bull sends the message that the brokerage is “a breed apart.”(5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-22. What is the difference between a lecture and a drama?

A lecture is like a speech in which the source speaks directly to the audience in an attempt to inform them about a product or persuade them to buy it. A drama is similar to a play or movie. (5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-23. Describe the Elaboration Likelihood Model, and summarize how it relates to the relative importance of what is said versus how it’s said.

The elaboration likelihood model (ELM) assumes that once a consumer receives a message, she begins to process it. Depending on the personal relevance of this information, the receiver will follow one of two routes to persuasion. Under conditions of high involvement, the consumer takes the central route to persuasion. Under conditions of low involvement, she takes a peripheral route instead. (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 8-24. The chapter states that the large majority of Americans no longer trust the accuracy of what they see in mainstream media. Do you agree? What are the ramifications of this distrust for marketers, and how might they improve the situation?

Students’ responses to this question will vary dependent upon their personal views and beliefs. Ramifications can be significant; however, since this lack of trust could potentially lead to a decline in belief towards all forms of trust in advertising. (5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-25. An antismoking ad sponsored by the New York City Department of Health crossed the line for many viewers. The spot showed a young boy who cries hysterically as a crowd of adults walks by him. The voiceover says, “This is how your child feels after losing you for a minute. Just imagine if they lost you for life.” The ad aroused a lot of controversy because it was not clear if the child was merely acting or if the spot’s producers provoked his tears for the camera. Is this genre of “scared straight” advertising an effective way to convince people to curb unhealthy behaviors like smoking?

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Students will find this challenge question more interesting if the instructor shows the clip in class. Although this is an opinion question, students may feel more empathy for the child than for the marketer in this case. The instructor can also show the recently proposed packaging changes from the Food and Drug Administration that were ruled against in court when the cigarette companies proposed the images were designed to get an emotional response instead of delivering facts. (10 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning Abilities) 8-26. The Coca-Cola Company pulled a U.K. Internet promotion campaign after parents accused it of targeting children by using references to a notorious pornographic movie.

As part of its efforts to reach young social media users for its Dr. Pepper brand, the company took over consenting users’ Facebook status boxes. Then, the company would post mildly embarrassing questions such as “Lost my special blankie. How will I go sleepies?” and “What’s wrong with peeing in the shower?” But, when a parent discovered that her 14-year old daughter’s profile had been updated with a message that directly referred to a hardcore porn film, the plan backfired and Coke had to pull the promotion.

What does it take to get the attention of jaded young people, who are exposed to all kinds of messages in cyberspace? What guidelines (if any) should marketers follow when they try to talk to young people on social media platforms?

Social media can be effective platforms for marketers to reach young people because of the amount of time young people spend on social networking sites. Marketers can use these media to have a conversation with the young consumer and to create a voice that resonates with the young consumer by tapping into their tastes and values. However, the voice must be authentic or young consumers will ignore it. Further, the volume of advertising online increases the importance of developing a relationship with the consumer where s/he opts in to receive the messages.

Students will have different opinions about the guidelines marketers should follow, and may debate the role of parental supervision vs. marketer regulation and the role of selfregulation vs. public policy. (20 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning Abilities) 8-27. The sleeper effect implies that perhaps we shouldn’t worry too much, about how positively people evaluate a source. Similarly, there is a saying in public relations that “any publicity is good publicity.” Do you agree?

There will certainly be exceptions to this. The good thing about publicity is that it is free.

Thus, when a company of any kind is getting publicity, they are getting free promotion.

The extent to which negative publicity will have positive effects on consumer perceptions simply depends. One of the best-case scenarios is when the negative publicity is controversial and offends people who are not part of the target group, while being perceived in a positive manner by those who are part of the target group. (10 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning Abilities)

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8-28. The American Medical Association encountered a firestorm of controversy when it agreed to sponsor a line of health care products Sunbeam manufactured (a decision it later reversed). Should trade or professional organizations, journalists, professors, and others endorse specific products at the expense of other offerings?

This question addresses the issue that not all people who endorse products are necessarily celebrities or models. The effect of the endorsement can be very strong, however, because of the element of trust and respect (or even the power of recommendation) that might be involved. Students should think of situations beyond those mentioned in the question that address this issue. A lively discussion should follow. How do the students feel about the ethics involved? In what circumstances should a sitting President, endorse a product? (10 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning Abilities) 8-29. Swiss Legend, a watch brand, gets famous people to wear its colorful timepieces. One way it does this is to give away its product at awards shows. Publicists call this common practice “gifting the talent”: Companies provide stars with “goody bags” full of complimentary products. What do you think about the practice of “gifting the talent” in order to accumulate endorsements? Is this a sound strategy? Is it ethical for celebrities to accept these gifts Although this may be considered a gray area promotional technique, it does not carry with it the level of deception that flogging does. Many fans and viewers are aware that when stars are wearing things at events, they have been given those items or are even paid to wear such. For those that are not aware of this, there is no information given that implies that the star bought the apparel or accessory item of their own volition. At the most basic level, it is a minimal investment with potential very effective media coverage.

(15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking and Ethical Understanding and Reasoning Abilities) 8-30. Watchdog groups have long decried product placements because they blur the line between content and advertising without adequately informing viewers. The networks themselves appear to be divided on how far they want to open the gate. According to one study, the effectiveness of product placement varies by product category and type of placement. Consumers indicate that product placements have the most influence on their grocery, electronics, and apparel purchases. The most common platform for a placement is to get a brand shown on a T-shirt or other piece of an actor’s wardrobe. What do you think about this practice? Under what condition is product placement likely to influence you and your friends? When (if ever) is it counterproductive?

Product placement and celebrity endorsement can add credibility and recognition.

Product placement is the insertion of real products in fictional movies, TV shows, books, and plays. A study reported that consumers respond well to placements when the show’s plat makes the product’s benefit clear. Audiences also have a favorable impression when a retailer provided furniture, clothes, appliances, and other staples for struggling families. These actions generate feelings of emotional security. However, when the .

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placement is not consistent with the plot, the brands can be negatively affected because they seem out of place. (5 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-31. One of the most controversial intersections between marketing and society occurs when companies provide “educational materials” to schools. Many firms, including Nike, Hershey, Crayola, Nintendo, and Foot Locker, provide free book covers swathed in ads.

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

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

Student responses will vary, but may include discussions on product placement benefits and drawbacks. Some students might consider a comparison with advergaming.

Advergaming is the practice of integrating brands and products with the stories the game tells, much like integrating brands in text books and homework activities. (10 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning) APPLY 8-32. Think of a behavior someone does that is inconsistent with his or her attitudes (e.g., attitudes toward cholesterol, drug use, or even buying things to make them stand out or attain status). Ask the person to elaborate on why he or she does the behavior, and try to identify the way the person has resolved dissonant elements.

Students should be able to generate many diverse examples of this type of consumer behavior. Assume you are a high school student who is health conscious but who may smoke occasionally because your friends smoke. The reason you smoke may be to “fit in” with a group, or the behavior may serve as some type of initiation into the group. You may resolve dissonant elements by telling yourself that an occasional cigarette will not hurt you as long as you keep exercising and eating right.

(25 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking) 8-33. Devise an attitude survey for a set of competing automobiles. Identify areas of competitive advantage or disadvantage for each model you include. .

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The semantic-differential scale often is used to describe a consumer’s beliefs about product, brands, and /or companies. Students are likely to develop scale items reflecting a variety of beliefs about individual products, where a set of product attributes is rated on a series of scales. For example: My travel agent is: Very efficient Very accessible Very friendly

1—2—3—4—5—6—7 1—2—3—4—5—6—7 1—2—3—4—5—6—7

Very inefficient Very inaccessible Very unfriendly

Semantic-differential scales also may be used to compare the images of competing brands, as in the next example: Honda Accords have good interior features.

Agree 1—2—3—4—5—6—7

Disagree

Toyota Camry’s have good interior features.

Agree 1—2—3—4—5—6—7

Disagree

Chevrolet Malibu’s have good interior features.

Agree 1—2—3—4—5—6—7 (90 minutes, Chapter Objective 8-2, AACSB: Analytic Skills)

Disagree

8-34. Construct a multiattribute model for a set of local restaurants. Based on your findings, suggest how restaurant managers can improve an establishment’s images via the strategies described in this chapter.

The multi-attribute models that students develop for a set of local restaurants should include: • A number of product attributes—characteristics of the restaurants, such as price, type of foods, number of menu items, location, etc.

• Beliefs regarding specific restaurants (in terms of attributes).

• Important weights reflecting the relative priority of specific attributes for them individually.

Although there likely will be some common elements in the models developed, students should be encouraged to think about how each model is reflective of the individual responsible for the product evaluation. The instructor should point out to students the complexity of consumer attitudes, as demonstrated by the diversity of attitudinal statements, product attributes, beliefs, and importance weights that might be chosen.

(Possible Individual or Group Field Project Idea) (75 minutes, Chapter Objective 8-2, AACSB: Analytic Skills)

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8-35. Locate foreign ads at sites like japander.com in which celebrities endorse products they do not pitch on their home turf. Ask friends or classmates to rate the attractiveness of each celebrity, then show them these ads and ask them to rate the celebrities again. Does the star’s “brand image” change after it is paired with cheesy ads? Based on these results, what advice would you give to a manager who has to choose among endorsement offers for a famous client?

Student responses should address how messages build credibility and source attractiveness. Students may also recognize the application of Classical Conditioning, where the negative association has the potential to transfer from the product, or the act of endorsing the product if the celebrity is a serious actor, to the celebrity. (20 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-36. Collect ads that rely on sex appeal to sell products. How often do they communicate benefits of the actual product? How effective do you believe they are?

Students will be able to find examples of products that use sex appeal in almost any magazine, but magazines targeted toward men or women are the best sources. NOTE: Be sure to examine ads before they are presented to the class. Some students are carried away (especially the males) and present material that is offensive to other class members (especially the females). The instructor should not rely solely on the students’ judgment in this matter. (Possible Field Project Idea) (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-37. Observe the process of counterargumentation by asking a friend to talk aloud while watching a commercial. Ask him to respond to each point in the ad or to write down reactions to the claims the message makes. How much skepticism regarding the claims can you detect?

Students will enjoy this project. You might encourage a student to videotape a few ads and show the tape to a friend. This will give the student an opportunity to choose a few ads that make a number of claims that can be analyzed. (Possible Field Project Idea) (15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-38. The chapter discusses the important problem of medication adherence. How can healthcare marketers strengthen the link between intentions and behavior to boost the rate at which people actually take their prescribed medications? Devise a communications strategy to increase the adherence rate.

The responses and communication strategy will be different for each student. Students should address the inconsistency between attitudes and behaviors. The theory of reasoned actions indicates there is a difference between intentions and behaviors. The communication strategy should target the behavior more than the intention. It should also address normative influences that can result in a contradiction between what we say we will do and what we actually do. (5 minutes, Learning Objective 8-3, AACSB: Reflective Thinking) .

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8-39. Make a log of all the commercials shown on a network channel shows during a 2-hour period. Assign each to a product category and decide whether each is as a drama or an argument. Describe the types of messages the ads use (e.g., two-sided arguments) and keep track of the types of spokespeople who appear (e.g., TV actors, famous people, animated characters). What can you conclude about the dominant forms of persuasive tactics marketers currently employ?

The instructor might want to encourage students to work in pairs to better manage the recording of 10- and 15-second commercials. One person could write about one commercial while the other person is listening to the next commercial. (Possible Field Project Idea) (150 minutes, Chapter Objective 8-3, AACSB: Ethical Understanding and Reasoning Abilities 8-40. Collect examples of ads that rely on the use of metaphors or resonance. Do you feel these ads are effective? If you were marketing the products, would you feel more comfortable with ads that use a more straightforward, “hard-sell” approach? Why or why not?

Make sure students review the section of the text that describes how metaphors and resonance are used in advertising before they go in search of ads. Encourage the students to discuss both the positive and the negative aspects of metaphors or resonance.

(Possible Field Project Idea) (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) 8-41. Create a list of current celebrities whom you feel typify cultural categories (e.g., clown, mother figure, etc.). What specific brands do you feel each could effectively endorse?

Students should be encouraged to think carefully about a variety of product categories to do this project. Listing celebrities, their characteristics, brand characteristics, and matchups is a good way to begin. Many of the matchups will be product specific. Ask students how many of the celebrities they have chosen could be used outside of specific product ranges. Encourage discussion with this question. (20 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

CASE STUDY TEACHING NOTES Chapter 8 Case Study: Anti-Smoking Advertising - Can you be scared into quitting?

Summary of Case This case is focused on cause advertising: the cause of discouraging smoking. Discussion could center around the challenges of discouraging consumption and/or the use of fear in advertising.

The information about when fear does and does not work provides an opportunity for a more detailed discussion of the use of fear in persuasive communications. It also underscores the recognition that target markets often have multiple sub segments, each requiring a different kind of appeal. .

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Suggestions for Presentation A good starting point would be to discuss how cause advertising is the same and how it is different from encouraging people to buy and consume products and services in a for-profit scenario.

Suggested Answers for Discussion Questions CS 8-1. What is another health, political, or philanthropic cause that could benefit from an advertising campaign? Create two taglines that could be used: one for people who are prevention-focused and another for those who are promotion-focused.

Student answers will vary Prevention-focused people are concerned with possible negative outcomes.

Consumers who are promotion-focused are concerned with aspirations and achievements.

Tagline ideas should have an identifiable tone (e.g., humor, fear, information, etc.), should have a clear link to the cause, and should be memorable. (10 minutes, Chapter Objectives 8-3, AACSB: Reflective Thinking CS 8-2. Health warnings have appeared on cigarette packages for almost 50 years. Discuss how habituation (from Chapter 6) may be a factor affecting their effectiveness. In over 80 countries, graphic images related to smoking’s effects must also be shown on the packages. Why or why not might this help smokers decide to quit?

Habituation occurs when the consumer no longer pays attention to the stimulus because of fatigue or boredom. Excessive exposure can cause advertising wear-out, which can result in negative reactions to an ad after we see it too often.

The two-factor theory explains the fine line between familiarity and boredom; it proposes that two separate psychological processes operate when we repeatedly show an ad to a viewer. The positive side of repetition is that it increases familiarity and thus reduces uncertainty about the product. The negative side is that over time boredom increases with each exposure. At some point the amount of boredom exceeds the amount of uncertainty the message reduces, and this results in wear-out.

The introduction of graphic images may jolt some smokers (and would-be smokers) into paying attention to warnings, but even these horrific images could lose their impact over time. One approach that might slow habituation is to vary the words and images used so that consumers see different versions of the warnings. (10 minutes, Chapter Objectives 8-1 & 8-2, AACSB: Analytical Thinking) .

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CS 8-3. How can a marketer determine what kinds of appeals will be the most persuasive in making the case for a product or cause? Design a simple experiment using the cause you chose for question CS 8.1 above.

Focus groups can provide useful input. Testing attitudes about the cause before and after being exposed to ads would be one approach. Experiments that use more indirect methods may be useful, such as one experiment that exposed teens to anti-smoking posters displayed in a convenience store. For an example, see: http://wesa.fm/post/graphic-anti-smoking-posters-might-encourage-some-kids-usecigarettes#stream/0 (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students explain the consistency, balance, and Fishbein theories to a friend, and then ask the friend to analyze two of his/her recent experiences that seem to confirm or disconfirm one or more of these theories. Report the findings to the class.

To be able to explain it to a friend, the student must understand each of the theories and be able to differentiate between the theories. Thus, this is a useful exercise for reinforcing the theories. Further, students get feedback from a friend that allows them to think critically about whether the theory relates to his/her experiences. (15 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking and Communication Abilities)

2.

In this project, students should identify one specific example for each of the three hierarchies of the ABC model. For each, they should give details as to the application of each component.

Students should select one CAB example, one ABC example, and one BAC example to fulfill the requirements of examples of the standard, low-involvement and experiential hierarchies, respectively. (15 minutes, Chapter Objective 8-1, AACSB: Reflective Thinking)

3.

It is time for true confessions. Describe three instances when your purchase behavior was inconsistent with an attitude toward the product or service you were buying. Explain why this happened. Share this with the class, asking them if they agree with the explanation or whether they have other notions.

Students may provide examples where outside influences intervened, they did not have the resources to select the product/service they really wanted, or where they only had certain .

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products or services available because of the location or an out of stock situation. (10 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking and Communication Abilities) 4.

Have students prepare an example of the Fishbein model and present the findings to the class.

Students should identify attributes that are important to attitude formation, ask the respondents to note the importance of each attribute, and then ask the respondents to rate the brands on those attributes. The attitude score will be with sum of the weighted beliefs (importance rating x belief rating) for all of the attributes for each brand. (30 minutes, Chapter Objective 8-2, AACSB: Analytic Skills and Communication Abilities)

5.

Ask one of your students to interview three people and have each respondent identify an advertisement that they have a positive attitude toward and an ad to which they have a negative attitude. Be sure to inquire to find out how their attitudes toward the ads influence their attitudes toward the products and likelihood of purchase.

Favorable attitudes toward an ad often will result in favorable attitudes toward the product, especially in cases where the consumer does not have direct experience with the product. In general, experience is more powerful than advertising in consumer evaluations of a product. (45 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

6.

Have students produce an example of some type of promotion used for each of the principles of reciprocity, scarcity, authority, consistency, liking, and consensus.

Reciprocity – we are more likely to give if we receive. Students may create an ad that shows gift-giving, note the direct response technique where a research company includes a dollar along with the survey, or talk about non-profit organizations that send “free” labels, among other examples.

Scarcity – items are more attractive when they are not available. Students may note limited time offers and/or limited quantity offers. They also may note wait lists for high fashion items.

Authority – we believe authoritative sources more readily than non-authoritative sources.

Students may use an appeal from a celebrity who is an expert in the product category s/he is promoting.

Consistency – people try not to contradict themselves in terms of what they say and do about an issue. Students may note the foot in door technique, where the salesperson gets the individual to say yes to a small thing in the hope that s/he will say yes when it comes time to close the deal.

Liking – we agree with those we like/admire. Students may note the attractiveness of spokespeople and salespeople.

Consensus - We consider what others do before we decide what to do. Students may create advertisements that note “9 out of 10…” etc. (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking and Communication Abilities) .

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7.

Have students conduct a simple content analysis by examining either print or broadcast ads. They may find such ads in real sources such as magazines, newspapers, or by watching television. They may also find such ads online at websites that maintain archives of advertisements. Students should view numerous ads and analyze which of the following message appeals appear to be used: (a) emotional, (b) rational, (c) sex, (d) humorous, and (e) fear. Does the medium or specific media vehicle have an effect on which appeals are used most commonly? After conducting this analysis, have students explain which appeal(s) is most powerful. Most persuasive? Most credible?

This extensive project may be appropriate as an individual project outside of class.

Students should receive enough time to complete the content analysis and a general idea of the time frame and number of ads they should evaluate. The assignment requires critical thinking about the use of different types of claims, so it should reinforce basic understanding of the claims as well as provide students with exposure of how and when they are used. (90 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

8.

Bring in a number of print or television ads that rely on the use of metaphors or resonance (or have your students do it). Have the students discuss the ads in groups. What are their initial reactions to the ads? How effective do they think they are? Do they think some other approach would be more convincing? Why? This exercise will reinforce the concepts of metaphors and resonance and provide students with the opportunity to think critically about their effectiveness. Students that provide another approach should provide their reasoning for the suggestion. (40 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking and Analytic Skills)

Group Projects 1.

Give the class a list of eight or ten common generic products (e.g., cars, peanut butter, detergent, toothpaste, gasoline, toilet paper, microwave dinners, a professional football team, an airline, and a soft drink) and ask them to list their favorite brand(s) of the product. See if those who are participating know how they developed their brand preference and how the products’ attributes are related to their attitudes toward the product(s).

This exercise will provide the opportunity for students to discuss differences in the formation of brand preferences and the importance of different attributes, which will help reinforce the information about attitude formation. (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

2.

Divide the class into teams and have each team come up with a set of about ten descriptive words that could be used to positively or negatively describe a specific consumer good (e.g., a stereo, car, expensive clothing, etc.). Send students out to interview a friend who owns this product. Determine the length of time the respondent has owned the product and then have the respondent evaluate the product according to .

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some criteria determined by the class. See if the people who more recently purchased the product have a more positive attitude toward it than those who have owned it for a longer period.

Students will analyze the length of the relationship with the product relative to the attitudes associated with the product. In some cases, recent consumers may have a honeymoon effect or will have a strong emphasis on positive aspects of the product to overcome cognitive dissonance. However, in general, commitment to positive attitudes is likely to increase over time. Because of time involved in the exercise, the instructor may wish to do this in class between groups or only have a few students participate in the project. (60 minutes, Chapter Objective 8-3, AACSB: Analytic Skills) 3.

Ask a group of students to think about restaurants they like and do not like to patronize.

Have them design a multi-attribute model for three of these restaurants, making sure both spectrums are included. Have students make suggestions of how the managers could improve the restaurants’ images by following the strategies and tactics found in this chapter.

Student measurement should include the importance of the attributes as well as the beliefs about the attributes. Ways to change the attitudes may include adding an attribute, changing beliefs (about one of the brand’s attributes or a competitor’s attribute), changing importance ratings. (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

4.

Bring in a number of print or television ads that use celebrity endorsers (or have students do it). Have students get into groups to discuss how effective they think the ads are. By evaluating the spokesperson as either “good” or “poor,” determine whether the class likes the celebrity. Do they find the ads believable or contrived? Probe to find out why they feel this way.

This is a critical thinking exercise where students make judgments about the effectiveness of a celebrity endorser based on the characteristics described in the chapter (attractiveness, credibility, fit with the product, etc.). (15 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

5.

Have student groups collect ads that demonstrate the literary devices of allegory, metaphor, simile, and resonance. Have them discuss the effectiveness of such with the class.

Look for students to understand what each of the concepts is and differences between the techniques. The perception of effectiveness of each technique is likely to depend on the product category, familiarity with the brand, and other aspects of the execution. (30 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking)

6.

Have groups of students take a common consumable product and apply a fear appeal to promoting the product. Have the students critique the effort with respect to the material .

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presented in the chapter on using fear appeals. Have them do the same for applying a humor appeal to a commonly serious product.

Students should recognize that moderate fear appeals are most effective; consumers shut down or avoid attending to high fear appeals, and low fear appeals do not motivate a consumer response. Students should also recognize that using humor to promote a serious product might backfire. (20 minutes, Chapter Objective 8-3, AACSB: Reflective Thinking,)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.levistrauss.com. Levi Strauss used to dominate the jeans market. It was a mainstay product for youth in the ’50s, ’60s, and ’70s. Something happened in the ’80s and ’90s, however, that caused the youth to begin shifting their attention to other brands and different ways of dressing. What did attitudes have to do with this shift? How should the company best deal with these changes? Using yourself as an example, tell Levi’s what they must do to secure your business again. If you are already a customer, explain what the company must do to keep your business.

The trip to the website is important if the student is not a customer or is not familiar with Levi Strauss products. The things the students will want Levis to do to earn their business will depend on what motivates the students to buy clothes and the attributes that are important to the students. (15 minutes, Chapter Objectives 8-2, AACSB: Reflective Thinking)

2.

Visit http://www.levistrauss.com/sustainability/. Read their statements and policies regarding environment, community, diversity, etc. What is the students’ attitude toward the policies of Levi Strauss? Can they apply the ABC model and explain? What is their level of commitment to their attitude toward Levi Strauss Company?

The students’ attitudes toward the company, based on its corporate responsibility practices, may be different from their attitudes toward the products it makes. Students are likely to talk about the standard learning hierarchy since they are evaluating information about the policies, and then deciding how they feel about it and behaving based on those cognitions and feelings. (15 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

3.

Go to www.dropzone.com. Apply the ABC model of attitudes to the activity of skydiving. Which of the three hierarchies is most applicable? What modifications could be made to this website?

Students may have different opinions about which model of attitudes would be used to form an attitude toward the activity of skydiving. Because it involves a high level of risk, .

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students may feel consumers will follow the standard learning hierarchy, which is used to evaluate high involvement products and services. If so, the website should provide information for consumers who are likely to search and thoroughly evaluate alternatives.

Students may argue that consumers engage in the experiential hierarchy because a rational decision-making process may deter someone from skydiving. If so, the website would be adapted to instigate impulses that will drive behavior. (20 minutes, Chapter Objective 8-1, AACSB: Reflective Thinking) 4.

Visit www.izod.com. Is a multi-attribute model a good one to apply to this product to explain how attitudes are formed? Why or why not? Suggest an alternative model.

Izod products may be expensive, so even if a consumer has a positive attitude toward the product, they may not act on that attitude. The theory of trying may be an appropriate alternative model. (15 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

5.

Go to https://www.ge.com/products. Pick a product from the huge portfolio of General Electric. This product should be one that you do not use or do not have a negative attitude.

Design a brief advertising campaign that would persuade you to use the product. Explain the process that you went through and the principles from the chapter you used in your campaign.

Students should address the attributes about which they have negative beliefs in the campaign. Students should recognize how beliefs relate to attitudes. (15 minutes, Chapter Objective 8-2, AACSB: Reflective Thinking)

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Chapter 9: DECISION MAKING

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 9-1. The three categories of consumer decision making are cognitive, habitual, and affective 9-2. A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options.

9-3. We often rely on rules-of-thumb to make routine decisions.

9-4. The way information about a product choice is framed can prime a decision even when the consumer is unaware of this influence.

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

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

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

A typical decision involves several steps. The first is problem recognition, when we realize we must take some action. This recognition may occur because a current possession malfunctions or perhaps because we have a desire for something new. Once the consumer recognizes a problem and sees it as sufficiently important to warrant some action, he or she begins the process of information search. This search may range from performing a simple memory scan to determining what he or she has done before to resolve the same problem to extensive fieldwork during which he or she consults a variety of sources to amass as much information as possible.

The internet has changed the way many of us search for information. Today, our problem is more likely to weed out excess detail than to search for more information. Comparative search sites and intelligent agents help to filter and guide the search process. We may rely on cybermediaries, such as web portals, to sort through massive amounts of information as a way to simplify the decision-making process. In the evaluation of alternatives stage, the options a .

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person considers constitute his or her evoked set. Members of the evoked set usually share some characteristics; we categorize them similarly. The way the person mentally groups products influences which alternatives she will consider, and usually we associate some brands more strongly with these categories (i.e., they are more prototypical). When the consumer eventually must make a product choice from among alternatives, he uses one of several decision rules.

Noncompensatory rules eliminate alternatives that are deficient on any of the criteria we’ve chosen. Compensatory rules, which we are more likely to apply in high-involvement situations, allow us to consider each alternative’s good and bad points more carefully to arrive at the overall best choice. Once the consumer makes a choice, he or she engages in postpurchase evaluation to determine whether it was a good one; this assessment in turn influences the process the next time the problem occurs.

We often rely on rules-of-thumb to make routine decisions.

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

The way information about a product choice is framed can prime a decision even when the consumer is unaware of this influence.

Principles of mental accounting demonstrate that the way a problem is framed and whether it is put in terms of gains or losses influences what we decide. In addition, other cues in the environment—including subtle ones of which we may not even be aware—may prime us to choose one option over another. A prime is a stimulus that encourages people to focus on some specific aspect of their lives. Much of the current work in behavioral economics demonstrates how a nudge—a deliberate change by an organization that intends to modify behavior—can result in dramatic effects.

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Purchase Momentum,’ ‘Hyperchoice,’ ‘Constructive Processing,’ ‘Mental Budget’ Here Use Review Question 9-1 Here

I.

What’s Your Problem?

Every consumer decision made is a response to a problem.

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We make some decisions thoughtfully. In other cases, we let our emotions guide us.

Other actions actually contradict what those rational models predict. For example, purchase momentum occurs when our initial impulse purchases actually increase the likelihood that we will buy even more.

A. Hyperchoice: Too Much of a Good Thing!

For many of us one of our biggest problems is not having too few choices, but rather too many. This condition of consumer hyperchoice forces us to make repeated decisions that may drain psychological energy while decreasing our abilities to make smart choices.

The perspective of constructive processing argues that we evaluate the effort we’ll need to make a particular choice and then tailor the amount of cognitive “effort” we expend to get the job done We may create a mental budget that helps us to estimate what we will consume over time so that we can regulate what we do in the present.

Use Key Term ‘Self-Regulation,’ ‘Implementation Intentions,’ ‘Promotion Motivation,’ ‘Prevention Motivation,’ ‘Feedback Loop’ Here

B. Self-Regulation Each of us fights a constant battle to control our desires, whether these involve splurging on expensive clothes or treating ourselves to fattening snacks.

A person’s efforts to change or maintain their actions over time involve careful planning that is a form of self-regulation.

These implementation intentions may dictate how much weight we give to different kinds of information (emotional or cognitive), a timetable to carry out a decision, or even how we will deal with disruptive influences that might interfere with our plans.

Two types of motivation: (1) Promotion motivation encourages people to focus on hopes and aspirations (2) Prevention motivation focuses on responsibilities and duties as it prompts people to think about avoiding something negative.

A feedback loop is useful to help with self-regulation. The basic premise is simple: Provide people with information about their actions in real time, and then give them a chance to change those actions so that you push them to improve (ex: Fitbit).

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Use Chapter Objective 2 Here Use Key Term ‘Rational Perspective,’ ‘Problem Recognition,’ ‘Ideal State’ Here

II.

Cognitive Decision Making Traditionally, consumer researchers approached decision making from a rational perspective. According to this view, people integrate as much information as possible with what they already know about a product, weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision.

A. Steps in the Cognitive Decision-Making Process The steps in decision making are: (1) problem recognition, (2) information search, (3) evaluation of alternatives, and (4) product choice. i. Step 1: Problem Recognition Problem recognition occurs when we experience a significant difference between our current state of affairs and some state we desire.

A problem may arise in one of two ways: 1.

A decline in the quality of the actual state (need recognition) 2.

A change in the ideal state (opportunity recognition) (Figure 9.3) Use Key Term ‘Information Search,’ ‘Filter Bubble,’ ‘Evoked Set,’ ‘Consideration Set,’ ‘Feature Creep,’ ‘Postpurchase evaluation,’ ‘Social Scoring’ Here Use Review Question 9-5 Here Use Consumer Behavior Challenge 9-33 ii. Step 2: Information Search Information search is the process by which we survey the environment for appropriate data to make a reasonable decision.

As a general rule, we search more when the purchase is important, when we have more of a need to learn more about the purchase, or when it’s easy to obtain the relevant information.

Because experts have a better sense of what information is relevant to the decision, they engage in selective search, which means their efforts are more focused and efficient.

A filter bubble occurs when the broadcast media, websites, and social media platforms we consult serve up answers based upon what they “think” we want to see.

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iii. Step 3: Evaluate Alternatives The alternatives a consumer knows about are called the evoked set and the ones they seriously consider are known as the consideration set. iv. Step 4: Product Choice Once we assemble and evaluate the relevant options in a category, eventually we have to choose one.

Feature creep occurs when products become too overly complex with myriad features the typical consumer cannot or has difficulty understanding. v. Step 5: Postpurchase Evaluation Postpurchase evaluation closes the loop; it occurs when we experience the product or service we selected and decide whether it meets our expectations.

In the process called social scoring, both customers and service providers increasingly rate one another’s performance.

Use Key Term ‘Neuromarketing,’ ‘Cybermediary,’ ‘Intelligent Agents,’ ‘Search Engines,’ ‘Search Engine Optimization (SEO),’ ‘Long Tail’ Here Use Review Question 9-2, 9-8 Here Use Consumer Behavior Challenge 9-18, 9-28, 9-30 Here B. Neuromarketing Neuromarketing uses functional magnetic resonance imaging (or fMRI), a brainscanning device that tracks blood flow as we perform mental tasks to take an upclose look at how our brains respond to marketing messages and product design features.

C. Online Decision Making A cybermediary is a website or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently (Pricegrabber.com is an example).

Directories and portals (such as Yahoo!) are general services that tie together a large variety of different sites. Forums, fan clubs, and user groups offer productrelated discussions to help customers sift through options. Intelligent agents are software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases.

What’s the most common way for us to conduct information search today?

Google it. Although there are other search engines out there, Google’s version of the software that examines the web is dominant. .

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Search engine optimization (SEO) refers to the procedures companies use to design the content of websites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term.

The business model known as the long tail is based on the concept that we no longer need to rely solely on big to find profits. Companies can make money if they sell small amounts of items that only a few people want—if they sell enough different items.

Use Key Term ‘Knowledge Structure,’ ‘Hybrid Products,’ ‘Category Exemplars’ Here Use Consumer Behavior Challenge 9-20, 9-21, 9-24 Here

D. How Do We Put Products into Categories?

Consumers cognitively represent product information in a knowledge structure.

This term refers to a set of beliefs and the way we organize these beliefs in our minds.

Typically, a product is represented in a knowledge structure at one of three levels.

(Figure 9.5) • Basic level category – most useful for classifying products • Superordinate category – more abstract • Subordinate category – more specific Product categories are the building blocks of a market, but sometimes companies like to play with them; they create new ones when they introduce hybrid products that feature characteristics from two distinct domains. i. Strategic Implications of Product Categorization The way we categorize products has a lot of strategic implications for marketers.

• Position a Product. The success of a positioning strategy hinges on the marketer’s ability to convince the consumer to consider its product within a given category.

• Identify Competitors. At the abstract, superordinate level, many different product forms compete for membership.

• Create an Exemplar Product. If a product is a really good example of a category, then it is more familiar to consumers and they more easily recognize and recall it. The characteristics of category exemplars tend to exert a disproportionate influence on how people think of the category in general.

• Locate Products in a Store. Product categorization also can affect consumers’ expectations regarding the places where they can locate a desired product.

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Use Key Term ‘Evaluative Criteria,’ ‘Determinant Attributes’ Here Use Review Question 9-9, 9-10 Here Use Consumer Behavior Challenge 9-26 Here ii. Evaluative Criteria Evaluative criteria are the dimensions we use to judge the merits of competing options.

Criteria on which products differ from one another carry more weight in the decision process than do those where the alternatives are similar.

Determinant attributes are the features we actually use to differentiate among our choices. iii. The Power of Authenticity Today one of the most important determinant attributes for many consumers - especially younger ones - is authenticity.

Use Key Term ‘Compensatory Rule,’ ‘Simple Addititve Rule,’ ‘Weighted Additive Rule,’ ‘Noncompensatory Rule,’ ‘Lexicographic Rule,’ ‘Elimination-by-Aspects Rule, ‘Conjunctive Rule’ Here Use Consumer Behavior Challenge 9-25 Here iv. Decision Rules Under conditions of high cognitive involvement, people tend to think carefully about the pros and cons of various options.

The compensatory rule allows a product to make up for its shortcomings on one dimension by excelling on another. There are two basic types of compensatory rules: 1 The simple additive rule leads to the option that has the largest number of positive attributes.

2 A weighted additive rule allows the consumer to take into account the relative importance of the attributes by weighting each one.

When we make habitual or emotional decisions we use a noncompensatory rule. This means that if an option doesn’t suit us on one dimension, we just reject it out of hand and move on to something else.

•

The lexicographic rule says, “select the brand that is the best on the most important attribute.” .

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• •

The elimination-by-aspects rule is similar to the lexicographic rule because the buyer evaluates brands on the most important attribute. In this case, though, s/he imposes specific cut-offs.

The conjunctive rule entails processing by brand. As with the elimination-by-aspects procedure, the decision maker establishes cut-offs for each attribute. However, here s/he chooses a brand if it meets all the cutoffs, but rejects a brand that fails to meet any one cut-off.

Use Chapter Objective 3 Here Use Key Term ‘Habitual Decision Making’ Here Use Review Question 9-3, 9-14 Here Use Consumer Behavior Challenge 9-22, 9-32, 9-34 Here III.

Habitual Decision Making Habitual decision making describes the choices we make with little or no conscious effort.

Why does a person buy the same brand over and over? In some cases, the explanation is inertia, which means that it involves less effort to pick a familiar brand. Or it could be brand loyalty, which describes a pattern of repeat purchasing behavior that involves a conscious decision to continue buying the same brand.

Use Key Term ‘Maximizing Solution,’ ‘Satisficing Solution,’ ‘Bounded Rationality,’ ‘Heuristics’ Here Use Review Question 9-13 Here A. Heuristics: Mental Shortcuts • Maximizing solution: We want to arrive at the best result possible outcome.

• Satisficing solution: We seek simply to receive an adequate outcome.

• This “good enough” perspective on decision making is called bounded rationality.

We refer to these “mental rules-of-thumb” shortcuts as heuristics.

Use Key Term ‘Market Beliefs,’ ‘Covariation,’ ‘Country of Origin (COO),’ ‘Ethnocentrism,’ ‘Consumer Animosity’ Here Use Review Question 9-12 Here There are market beliefs that many consumers share:

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i. Covariation The association among events that may or may not actually influence one another is known as covariation. ii. Country of Origin Country of origin (COO) - where a product is produced – matters.

Consumers strongly associate certain items with specific countries.

Conversely, ethnocentrism refers to the belief that products from other places are inferior to local versions.

We sometimes witness consumer animosity toward a brand due to an intense dislike for the manufacturer. iii. Familiar Brand Names We like brand names that we know and that have been around a long time. iv. Higher Prices Many people assume that a higher-priced alternative is better quality than a lower-priced option.

Use Key Term ‘Upsell’ Here Use Review Question 9-11 Here Use Consumer Behavior Challenge 9-23, 9-27, 9-31 Here B. AI: Who’s Calling the Shots?

There is no doubt that AI applications will revolutionize how consumers interact with products.

Use Chapter Objective 4 Here Use Key Term ‘Context Effects,’ ‘Framing,’ ‘Loss Aversion,’ ‘Prospect Theory,’ ‘Mental Accounting,’ ‘Sunk-Cost Fallacy,’ ‘Behavioral Economics,’ ‘Priming,’ ‘Nudge,’ ‘Default Bias,’ ‘Persuasive Design’ Here Use Consumer Behavior Challenge 9-19 Here IV.

Priming and Nudging Physical cues “prime” us to react even when we are not aware of the impact. The sensations we experience are context effects that subtly influence how we think about products we encounter.

Framing is how we pose a question to people or what exactly we ask them to do.

Loss aversion is the idea that people hate losing things more than they enjoy getting things. .

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Researchers who work on prospect theory analyze how the value of a decision depends on gains or losses; they identify principles of mental accounting that relate to the way we frame the question.

Under the sunk-cost fallacy, if we have paid for something, we are more reluctant to waste it.

Unlike standard economic theory that regards people as rational decision makers, the rapidly growing field of behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but “rational.”

Much of the emerging work in behavioral economics focuses on the role of priming: Cues in the environment that make us more likely to react in a certain way even though we’re unaware of these influences. A prime is a stimulus that encourages people to focus on some specific aspect of their lives.

Much of the current work in behavioral economics demonstrates how a nudge—a deliberate change by an organization that intends to modify behavior—can result in dramatic effects.

A default bias is evident when we are more likely to comply with a requirement than to make the effort not to comply.

Priming and nudging tactics are increasingly common. In some cases, this approach goes by the more benign name of persuasive design.

Use Review Question 9-4, 9-6, 9-7, 9-15 Here Use Consumer Behavior Challenge 9-16, 9-17, 9-29, 9-35 Here

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

The Tangled Web The Morning Morality Effect shows that people are more likely to cheat, lie, or commit fraud in the afternoon than in the morning. Scientists know that the part of the brain they call the executive control center that we use for important decision making, including moral judgments, can be worn down or distracted even by simple tasks like memorizing numbers.

2.

Net Profit As the old saying goes, “If it sounds too good to be true, it probably is.” When we check out online reviews of a product and they’re all glowing, we tend to be a bit suspicious. .

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It’s actually more effective for a review to include some negative reviews—if shoppers think they’re irrelevant.

3.

Marketing Pitfall Product labels assist us with problem solving, but some are more useful than others.

REVIEW 9-1.

Why can “mindless” decision making actually be more efficient than devoting a lot of thought to what we buy?

Sometimes the decision-making process is almost automatic; we seem to make snap judgments based on very little information. At other times, coming to a purchase decision begins to resemble a full-time job. A person may literally spend days or weeks thinking about an important purchase such as a new home, even to the point of obsession.

Mindless decision-making is more efficient because we do not waste time seeking information when the decision is not as important, or we have previously made the decision. (5 minutes, Chapter Objective 9-1, AACSB: Reflective Thinking)

9-2.

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

Problem recognition, information search, evaluation of alternatives, product choice, and outcomes. (5 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

9-3.

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

Purchase momentum occurs when these initial impulses actually increase the likelihood that we will buy even more (instead of less as our needs are satisfied), as if we are “revved up” and plunged into a spending spree. It does not follow the traditional model of cognitive decision making because there is less time for information search and evaluation of alternatives, and the act of buying something else helps trigger the need recognition. (5 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking)

9-4.

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

A cognitive decision is one that would involve rational thought such as choosing a new vacuum cleaner. Habitual decision-making is one that is made by habit such as making a repurchase of one’s favorite shampoo. Affective decision-making involves emotion – such as choosing a gift. (5 minutes, Chapter Objective 9-1, AACSB: Application of Knowledge)

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9-5.

Name two ways in which a consumer problem arises.

1) A person’s standard of comparison may be altered, 2) the quality of the consumer’s actual state can move downward, and 3) the consumer’s ideal state can move upward. (3 minutes, Chapter Objective 9-2, AACSB: Application of Knowledge)

9-6.

Give an example of the sunk-cost fallacy.

Simply put, the sunk-cost fallacy occurs when someone has paid for something and is therefore reluctant to waste it. When someone attends a sporting event even though weather may put him or her at personal risk is an example. (5 minutes, Chapter Objective 9-3, AACSB: Application of Knowledge)

9-7.

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

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

This says that the factors of decision-making are relative. That would imply that we are not rational. (5 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking)

9-8.

“Marketers need to be extra sure their product works as promised when the first introduce it.” How does this statement relate to what we know about consumers’ evoked sets?

People are more likely to add a new brand to the evoked set than one that we previously considered but passed over, even after additional positive information has been provided for that brand. For marketers, consumers’ unwillingness to give a rejected product a second chance underscores the importance of ensuring that it performs well from the time it is introduced. (5 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

9-9.

Describe the difference between a superordinate category, a basic level category, and a subordinate category.

Categories exist in a taxonomy from most concrete to most abstract. The middle level, known as a basic level category, is typically the most useful in classifying products, because items grouped together tend to have a lot in common with each other but still permit a range of alternatives to be considered. The broader superordinate category is more abstract, whereas the more specific subordinate category often includes individual brands. (5 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

9-10. What is an example of an exemplar product?

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

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disproportionately influenced by the characteristics of category exemplars. (5 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking) 9-11. List three product attributes that consumers can use as product quality signals and provide an example of each.

1) Price: Consumers commonly associate a higher price as an indicator of a higher level of quality. 2) Country-of-origin: A common U.S. perception is that watches that are made in Switzerland are of a higher quality than watches made in any other country. 3) Brand name: Some brands have developed an image of quality (i.e., Mercedes Benz, Toyota, etc.) more so than others (i.e., Kia). (10 minutes, Chapter Objective 9-3, AACSB: Application of Knowledge) 9-12. How does a brand name work as a heuristic?

Branding is a marketing strategy that often functions, as a heuristic because people assume top brands can be trusted. People form preferences for a favorite brand, and then they literally may never change their minds in the course of a lifetime. (5 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) 9-13. Describe the difference between inertia and brand loyalty.

Inertia exists when we buy a brand out of habit merely because it requires less effort. For brand loyalty to exist, a pattern of repeat purchase must be accompanied by an underlying positive attitude toward the brand. The underlying attitude makes the consumer less likely to switch in response to a promotion than if they simply behaved based on inertia. (5 minutes, Chapter Objective 9-1, AACSB: Reflective Thinking) 9-14. What is the difference between a noncompensatory and a compensatory decision rule?

Give one example of each.

Noncompensatory decision rules are choice shortcuts where a product with a low standing on one attribute cannot make up for this position by being better on another attribute. Unlike noncompensatory decision rules, compensatory decision rules give a product a chance to make up for its shortcomings. Consumers who employ these rules tend to be more involved in the purchase and thus are willing to exert the effort to consider the entire picture in a more exacting way. The willingness to let good and bad product qualities balance out can result in quite different choices. (5 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking) 9-15. What is prime? How does it differ from a nudge?

A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being, or the environment. A nudge is a deliberate change by an organization that intends to modify behavior and can result in dramatic effects. (5 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) .

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CONSUMER BEHAVIOR CHALLENGE DISCUSS 9-16. Excessive food consumption may link to emotional issues such as feelings of inferiority or low self-esteem. In some situations people consume products (especially food) as a reaction to prior life experiences such as loss of a loved one or perhaps abuse as a child.

A British man whom the U.K. news media once dubbed “the world’s fattest man” when he weighed in at 980 pounds is a case in point. He explained that as an adult his insatiable desire to constantly eat stemmed from an abusive father and sexual abuse by a relative: “I still had all these things going around in my head from my childhood. Food replaced the love I didn’t get from my parents.” (The good news: after a gastric bypass operation this man has lost almost two-thirds of his body weight). Obviously this is an extreme case, and it certainly doesn’t mean that everyone who struggles with his or her weight is a victim of abuse! Nonetheless, emotion often plays a role—a dieter may feel elated when he weighs in at three pounds less than last week; however, if he fails to make progress he may become discouraged and actually sabotage himself with a Krispy Kreme binge. Is it ethical for food companies to exploit these issues by linking their products to enhanced moods?

Responses will vary based on the beliefs of students. Students should consider the cognitive, habitual, and effective aspects of consumer decision making. The feedback loop should be used to help with self-regulation. Implementation intentions should be discussed in terms of how they are exploited. (20 minutes, Chapter Objective 9-1, AACSB: Ethical understanding and reasoning) 9-17. The chapter discusses ways that organizations can use “nudges” to change consumer behavior. Critics refer to them as benevolent paternalism because they argue they force people to “eat their vegetables” by restricting the freedom to choose. For example, several cities including New York and Philadelphia have tried (unsuccessfully thus far) to ban the sales of extra large portions of sugary drinks. What’s your take on these efforts – should local, state or federal governments be in the business of nudging citizens to be healthier?

Responses will vary based on the beliefs of the students. Students should understand how much of the current work in behavioral economics demonstrates how a nudge—a deliberate change by an organization that intends to modify behavior—can result in dramatic effects. A simple “nudge” that changes how people act is to switch from asking consumers to “opt in” to a program to asking them to “opt out” of a program if they don’t want to participate. (20 minutes, Chapter Objective 9-1, AACSB: Ethical understanding and reasoning) 9-18. Why is it difficult to place a product in a consumer’s evoked set after it has already been rejected? What strategies might a marketer use in an attempt to accomplish this goal?

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

Promotional strategies can be used to get the consumer to reconsider the product. Price discounts, coupons, special offers, rebates, or free samples will increase the possibility that a product will re-enter the evoked set. Any other means to get the consumer to try the product will increase the possibility of consideration of the product, and successful trial will increase the chances of a product being included in the consumer’s evoked set. (15 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) 9-19. Technology has the potential to make our lives easier as it reduces the amount of clutter we need to work through to access the information on the Internet that really interests us.

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

Responses will vary by student. Intelligent agents are sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases. When you let Amazon.com suggest a new book, the site uses an intelligent agent to propose novels based on what you and others like you have bought in the past. The biggest problem Web surfers face these days is to narrow down their choices, not to beef them up. In cyberspace, simplification is key. If we Google a term, most of us are only likely to look at the first few results at the top of the list.

Indeed, that’s one reason why search engine optimization (SEO) is so important today; this term refers to the procedures companies use to design the content of Web sites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term. Our goal is to persuade people to access our content. Just like an expert fisherman chooses his spot and carefully selects the right lure to catch a fish, SEO experts create online content that will attract the attention of the search algorithms, or mathematical formulas, that companies like Google use to determine which entries will turn up in a search. The algorithm will hunt for certain keywords, and it also will consider who uses them. (20 minutes, Chapter Objective 9-2, AACSB: Ethical understanding and reasoning) 9-20. It’s increasingly clear that many postings on blogs and product review websites are fake or are posted there to manipulate consumers’ opinions. How big a problem is this if consumers increasingly look to consumer-generated product reviews during the stage of information search? What steps, if any, can marketers take to nip this problem in the bud?

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Increasingly many of us rely on online reviews to steer us toward and away from specific restaurants, hotels, movies, garments, music, and just about everything else. A survey of 28,000 respondents in 56 countries reported that online user ratings are the second-most trusted source of brand information (after recommendations from family and friends). We usually put a lot of stock in what members of our social networks recommend.

Unfortunately, user ratings don’t link strongly to actual product quality that objective evaluation services like Consumer Reports provide. And, there’s evidence that mobile reviews may be less helpful than desktop reviews, even when the same reviewer writes both. Comments posted via mobile devices are more emotional and more negative.

Regardless of their accuracy, customer product reviews are a key driver of satisfaction and loyalty. Another advantage these reviews provide is that consumers learn about other, less popular options they may like as well, and at the same time products such as movies, books, and CDs that aren’t “blockbusters” are more likely to sell. (20 minutes, Chapter Objective 9-2, AACSB: Ethical understanding and reasoning) 9-21. Commercial Alert, a consumer group, is highly critical of neuromarketing. The group's executive director wrote, “What would happen in this country if corporate marketers and political consultants could literally peer inside our brains and chart the neural activity that leads to our selections in the supermarket and voting booth? What if they then could trigger this neural activity by various means, so as to modify our behavior to serve their own ends?” What do you think? Is neuromarketing dangerous?

The idea that neuromarketing is any more dangerous than more traditional methods of market research rests on two assumptions. 1) These methods allow marketers to read minds. While the technologies employed are advanced, reading minds is far down the path. Of course, one never knows what the future will bring. 2) If marketers could read minds, then they would have the capability to trigger certain responses through any means. The bottom line is that consumers still have freedom to choose. (10 minutes, Chapter Objective 9-3, AACSB: Ethical Understanding and Reasoning Abilities) 9-22. Research supports the argument that the way we pay for a product changes the way we perceive it. More specifically, credit cards prime people to focus less on the costs of the item and more on the benefits. Using plastic decouples the expense of the purchase so we tend to buy more when we can charge it. Newer innovations like digital wallets take this a step further so payment— at least at the time of purchase—is even less painful. Are these formats going to create problems if they prime us to think more about short-term gratification and less about the long-term hit to our budgets? Do marketers have an obligation to try to prevent these problems?

Responses will vary by student but should consider the idea of priming consumers in the decision making process. Researchers who work on prospect theory analyze how the value of a decision depends on gains or losses; they identify principles of mental accounting that relate to the way we frame the question as well as external issues that shouldn’t influence our choices but do anyway. The notion that even subtle changes in a person’s environment can strongly influence the choices he or she makes has emerged on .

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center stage in the study of consumer behavior in recent years. Unlike standard economic theory that regards people as rational decision makers, the rapidly growing field of behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but “rational.”

Indeed, it turns out that it’s quite possible to modify the choices of individuals and groups merely by tinkering with the way we present information to them. Much of the emerging work in behavioral economics focuses on the role of priming: Cues in the environment that make us more likely to react in a certain way even though we’re unaware of these influences. A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment. (20 minutes, Chapter Objective 9-3, AACSB: Ethical Understanding and Reasoning Abilities) 9-23. Country of origin can discourage sales in some situations, and in some cases this is due to deeply held moral views. For example, some Jews refuse to buy cars made by MercedesBenz and other German automakers due to their use of slave labor to make vehicles during World War II. Should a company bear responsibility for decisions its predecessors made?

Student responses will vary significantly based upon their own individual beliefs and should make for engaging conversation. Ethnocentrisim refers to the belief that products from other places are inferior (or unwanted) when compared to local versions. Many factors can lead to this belief, with history being a very relevant one. (15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Ethical Understanding and Reasoning Abilities) APPLY 9-24. Find examples of electronic recommendation agents on the web. Evaluate these. Are they helpful? What characteristics of the sites you locate are likely to make you buy products you would not have bought on your own?

Amazon.com has intelligent agents. The students may have to spend a fair amount of time to come up with actual recommendation agents. Their responses to the second question are likely to vary and it may be unclear whether they would have come across the products via another source. (15 minutes, Chapter Objective 9-4, AACSB: Reflective Thinking) 9-25. Sometimes a company actually invents a determinant attribute: Pepsi-Cola accomplished this when it stamped freshness dates on soda cans. It spent about $25 million on an advertising and promotional campaign to convince consumers that there’s nothing quite as horrible as a stale can of soda-even though people in the industry estimate that drinkers consume 98 percent of all cans well before this could be a problem. Six months after it introduced the campaign, lo and behold, an independent survey found that 61 percent of respondents felt that freshness dating is an important attribute for a soft drink. Devise a similar strategy for another product category by coming up with a brand new product attribute. How would you communicate this attribute to your customers? .

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In order for a marketer to effectively recommend a new decision criterion, its communication should convey three pieces of information: 1. It should point out that there are significant differences among brands on the attribute.

2. It should supply the consumer with a decision-making rule, such as if (deciding among competing brands), then . . . (use the attribute as a criterion). It should convey a rule that can be easily integrated with how the person has made this decision in the past. Otherwise, the recommendation is likely to be ignored because it requires too much mental work.

3. These things should be applied to coming up with a new attribute and communicating it to the target market. (15 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) 9-26. Define the three levels of product categorization described in the chapter. Diagram these levels for a health club.

The text discusses the following levels of product categorization: 1. Superordinate—the broadest and most abstract level (e.g., health clubs).

2. Basic—the most useful category to classify products because these items have much in common with each other (e.g., weight/powerlifting clubs).

3. Subordinate—the most specific category (e.g., Nautilus Fitness Clubs). (10 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) 9-27. Choose a friend or parent who grocery shops on a regular basis and keep a log of their purchases of common consumer products during the term. Can you detect any evidence of brand loyalty in any categories based on consistency of purchases? If so, talk to the person about these purchases. Try to determine if his or her choices are based on true brand loyalty or on inertia. What techniques might you use to differentiate between the two?

To begin with, the instructor should ask the students to differentiate between brand loyalty and inertia. Brand loyalty is represented by a pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand. Inertia describes consumption at the low end of involvement, where decisions are made out of habit because the consumer lacks the motivation to consider alternatives.

For example, a student said that her mother buys the same cereal every week. In discussing the reason for buying the cereal, her mother said she bought it because it was what the student’s father liked. She considered him to be brand loyal. Techniques the student could use to find out if the father were truly brand loyal would be to ask him to try other cereals. After trying these alternatives, if he insisted that his was the best, he could be considered to be brand loyal. (Possible Field Project Idea) (45 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking)

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9-28. Hershey’s stresses the determinant attribute of product authenticity when the chocolate company states: “Hershey, PA is where it all started more than 100 years ago, and it’s still where the famous Hershey’s Kisses are made. Find examples of other companies that appeal to their heritage. How effective are these messages?

Student responses will vary some may include Coors, Sam Adams, Smucker’s, JohnsonJohnson, and Disney. (20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking) 9-29. Form a group of three. Pick a product and develop a marketing plan based on either cognitive or habitual decision making. What are the major differences in emphasis between the two perspectives? Which is the most likely type of decision-making process for the product you selected?

Answers will vary.

(20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking) 9-30. Identify a person who is about to a major purchase. Ask that person to make a chronological list of all the information sources he or she consults before deciding what to buy. How would you characterize the types of sources he or she uses (i.e., internal versus external, media versus personal, etc.)? Which sources appeared to have the most impact on the person’s decision?

Student responses will vary. Several issues may be considered including bounded rationality and brand loyalty issues. How consumers process information in the decision making process should be considered, as well as their role within the family and that decision making unit. (20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking 9-31. Perform a survey of country of origin stereotypes. Compile a list of five countries and ask people what products they associate with each. What are their evaluations of the products and likely attributes of these different products? The power of a country stereotype can also be demonstrated in another way. Prepare a brief description of a product, including a list of features, and ask people to rate it in terms of quality, likelihood of purchase, and so on. Make several versions of the description, varying only the country from which it comes. Do ratings change as a function of the country of origin?

Students may have strong associations for many countries tied to specific products or product categories. Examples might include European import/luxury cars, French wines, Italian leather goods, Swedish crystal, and Japanese electronics. It may be interesting to expand the notion of country of origin and ask students to talk about areas in the United States that are particularly well known for specific products. Alternatively, for both country and region of origin, students should be challenged to think of examples that represent weak or poor association that marketers would want to avoid. (Possible Field Project Idea) (60 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) 9-32. Ask a friend to “talk through” the process he or she used to choose one brand over others during a recent purchase. Based on this description, can you identify the decision rule that was most likely employed? .

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The instructor might begin by reviewing the two types of decision rules, namely, compensatory and non-compensatory. Compensatory decision rules involve averaging information about attributes of competing products where a poor rating on one attribute can be offset by a good rating on another. Non-compensatory decision rules, alternately, would find a brand with a low rating on one relevant/important attribute eliminated from the consumer’s choices, despite higher ratings on less relevant/important attributes. The specific types of compensatory and non-compensatory rules also should be reviewed. (20 minutes, Chapter Objective 9-2, AACSB: Analytic Thinking) 9-33. Think of a product you recently shopped for online. Describe your search process. How did you become aware that you wanted or needed that product? How did you evaluate alternatives? Did you wind up buying online? Why or why not? What factors would make it more or less likely that you would buy something online versus in a traditional store?

Student responses will vary. (20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking) 9-34. Can you replicate Richard’s decision-making process as he chose a TV brand for other consumers or other products? Create a grid for a different product category that lists available brands and the features each offers. (Hint: Product Web sites for computers, cars, and other complex products often generate these grids when they allow you to choose the “compare products” option.) Present this grid to several respondents and ask each to talk aloud as they evaluate their options. Based on their description, can you identify which decision rule they seem to use?

Student answers will vary. Grids will likely have an indication of features, prices, and quality issues. Decisions may be based on cognitive, habitual, or affective processes.

There may be discussion about constructive processing, mental budgets, and self regulation. Students should consider emotion in the decision making process. (20 minutes, Chapter Objective 9-1, AACSB: Reflective Thinking) 9-35. Extraneous characteristics of the choice situation can influence our selections, even though they wouldn’t if we were totally rational decision makers. Create two versions of this scenario (alternate the text you see in parentheses as directed) and ask a separate group of people to respond to each: You are lying on the beach on a hot day. All you have to drink is ice water. For the past hour you have been thinking about how much you would enjoy a nice cold bottle of your favorite brand of beer. A companion gets up to go make a phone call and offers to bring back a beer from the only nearby place where beer is sold (either a fancy resort hotel or a small, run-down grocery store, depending on the version you’re given). He says that the beer might be expensive and so asks how much you are willing to pay for it. What price do you tell him?

When researchers gave both versions of this question to respondents, they found that the median price participants who read the fancy-resort version gave was $2.65, but those .

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who got the grocery-store version were only willing to pay $1.50. In both versions, the consumption act is the same, the beer is the same, and they don’t consume any “atmosphere” because they drink the beer on the beach. How do these results compare to yours?

Student responses will vary based on who was interviewed. (30 minutes, Chapter Objective 9-3, AACSB: Application of Knowledge) MyLab Marketing 9-36. If people are not always rational decision makers, is it worth the effort to study how they make purchasing decisions?

The decision-making steps presented in the chapter cover many situations, but common sense tells us we don’t undergo this elaborate sequence every time we buy something. If we did, we’d spend our entire lives making these decisions. Some of our buying behaviors simply don’t seem “rational” because they don’t serve a logical. Habitual decision making describes the choices we make with little or no conscious effort. Many purchase decisions are so routine we may not realize we’ve made them. Although decisions we make on the basis of little conscious thought may seem dangerous or at best stupid, this process actually is quite efficient in many cases. As consumer researchers, studying these decisions to try and better understand the process may provide us with avenues by which to influence even those habitual decisions. (Chapter Objective 9-3; AACSB: Reflective Thinking) 9-37. Several products made in China (including toothpaste and toys) have been recalled because they are dangerous or even fatal to use. Some American consumers have stopped buying them as a result. Essentially these consumers use country of origin as a heuristic to avoid Chinese products. If the Chinese government hired you as a consultant to help it repair some of the damage to the reputation of products made there, what actions would you recommend?

Student responses will vary. It is important to keep in mind that country of origin (COO) is an important heuristic. However, we do sometimes witness consumer animosity toward a brand (or a country) due to intense negative publicity or dislike for the manufacturer (or country). (Chapter Objective 9-3, AACSB: Reflective Thinking) CASE STUDY TEACHING NOTES Chapter 9 Case Study: P&G and the Moments of Truth – Just How Many Moments Are There?

Summary of Case This case is about the evolution of the “Moments of Truth” concept made famous by P&G. The early view of these key points of interaction with the consumer were focused on reviewing options in a store and then using the product at home after purchase. Over the years, many other .

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moments were proposed at both ends of the process to include evaluation of alternatives via web search and feedback following the user experience.

Suggestions for Presentation This case can be taught as part of the decision-making process. If used in class, consider discussing with students how they might make a decision for the purchase of one of the many P&G products (see us.pg.com).

Suggested Answers for Discussion Questions CS9-1. Choose four of the moments of truth. What specific strategies could P&G employ in each one to increase the probability of a sale and repeat business?

Answers will vary depending on “moments” chosen. Many of the strategies will focus on effectively communicating with the consumers/customers through various means such as advertising, email, and social media. (10 minutes, Chapter Objectives 9-2 & 94, AACSB: Application of Knowledge) CS9-2. For a consumer purchasing a new car, which would be the first, second and third most important moments in the process? Explain your prioritization.

All of the moments are important, and cases could be made for more than one prioritization. One ranking (most important first) would be: 1. <ZMOT—This is the stimulus that causes a consumer to begin a search. It could be one of the many problems that consumers try to solve with a car, or it may be a reaction to advertising. This “starts the ball rolling.”

2. ZMOT— Many car shoppers (particularly younger ones) will start with internet research; if the brand fails at this moment, the consumer may take the brand off of their list.

3. FMOT – It is worth discussing how FMOT is different in this context as most car “stores” will not have more than one brand. Nevertheless, the first trip to the dealer is still a critical point in the decision making process. (5 minutes, Chapter Objective 9-2, AACSB: Analytical Thinking)

CS9-3. Do frameworks like the MOTs help marketers or is this just “consultant-speak?” If you believe the approach helps, explain how.

Most of the MOTs had been previously considered important points in the consumer’s journey before the MOT idea was defined. However, the MOT idea allowed P&G CEO Lafley to emphasize their importance and to focus his marketing team on designing strategies to maximize impact at each MOT. While the expansion of the list of MOTs could dilute their effect, each new proposed MOT reminds marketers that there are many critical steps in the process and each deserve some level of marketing attention.

(10 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

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

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

Seeking information is one way to reduce risk. Providing safety information, third party endorsements, reviews, or evaluations, offering product trials and/or warranties may also reduce perceived risk. (10 minutes, Chapter Objective 9-1, AACSB: Reflective Thinking)

2.

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

Students may make assumptions about why information was or was not available. (15 minutes, Chapter Objectives 9-1 and 9-2, AACSB: Reflective Thinking)

3.

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

Students should select a higher involvement product if they want the information to be available via Consumer Reports. Student evaluations of missing useful information will depend on the product chosen. (20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

4.

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

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

In addition, responses will likely differ by age group. (45 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking) .

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5.

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

Retail products with high margins may use salespeople to provide information. Other retailers may use shelf-talkers, kiosks, Q-codes, and websites. (30 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

6.

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

The design of the project will likely include some form of interview with consumers about their search process. As part of the design, students will reinforce the concepts. (45 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

7.

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

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

(45 minutes, Chapter Objective 9-3, AACSB: Dynamics of the Global Economy)

8.

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

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

Look for students to explain why they rely on those sources of information. (15 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

9.

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

What mistakes were made?

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

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decision making process, and the low involvement decisions. (25 minutes, Chapter Objectives 9-1 and 9-2, AACSB: Reflective Thinking) 10.

Ask a student to bring to class an advertisement that is designed to activate the problemrecognition process. Does the student think that the ad works on the consumer’s actual state or ideal state? See if the student can improve the problem recognition features of the advertisement.

This exercise will help students differentiate between the actual and the ideal state. Look for students to provide support for why their suggestions improve the problem recognition features of the advertisement. (10 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

Group Projects 1.

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

Students should ask for specific stimuli that led to problem recognition and note if the problem was recognized because of a difference from the ideal state or a deterioration of the actual state. (120 minutes, Chapter Objectives 9-2, AACSB: Reflective Thinking)

2.

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

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

Students should include problem recognition, information search, evaluation of alternatives, purchase and post-purchase steps and design strategies that address consumer needs at each stage. (45 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

3.

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

Stereotypes will vary, but students should recognize that they are often the result of associations that developed at some point in time (either through direct experience or from word-of-mouth). A strategy to help reduce the stereotype’s negative effects may include developing an association with something positive. (25 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking)

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4.

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

Students should include the superordinate (abstract), basic (broad) and subordinate (brand) levels in their taxonomy and label each level accordingly. For the repositioning, students may identify alternate uses for a product (e.g. baking soda for cooking, cleaning, deodorizing). (25 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

5.

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

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

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

Probe students to learn how the stereotypes were formed. (60 minutes, Chapter Objective 9-3, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

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

Peapod.com and other grocery services allow you to recall your past grocery lists, which saves time and effort associated with choosing each product you want each time. This is particular valuable for habitual purchases. Buying online reduces the likelihood of impulse purchases that may increase the overall grocery bill, but it also may reduce the likelihood that a consumer sees a good deal on a substitute product. (20 minutes, Chapter Objective 9-2, AACSB: Reflective Thinking)

Group Assignments 1.

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

Students should include the superordinate (abstract), basic (broad) and subordinate (brand) levels in their taxonomy and label each level. (45 minutes, Chapter Objective 92, AACSB: Reflective Thinking)

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Chapter 10: Buying, Using, and Disposing

Chapter 10: BUYING, USING, AND DISPOSING

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 10-1. Many factors at the time of purchase dramatically influence the consumer’s decisionmaking process.

10-2. The information a store’s layout, website, or salespeople provides strongly influences a purchase decision.

10-3. The growth of a “sharing economy” changes how many consumers think about buying rather than renting products.

10-4. Our decisions about how to dispose of a product are as important as how we decide to obtain it in the first place.

CHAPTER SUMMARY Many factors at the time of purchase dramatically influence the consumer’s decision-making process.

Many factors affect a purchase. These include the consumer’s antecedent state (e.g., his or her mood, time pressure, or disposition toward shopping). Time is an important resource that often determines how much effort and search will go into a decision. Our moods are influenced by the degree of pleasure and arousal a store environment creates.

The usage context of a product is a segmentation variable; consumers look for different product attributes depending on the use to which they intend to put their purchase. The presence or absence of other people (co- consumers)—and the types of people they are—can also affect a consumer’s decisions. The shopping experience is a pivotal part of the purchase decision. In many cases, retailing is like theatre—the consumer’s evaluation of stores and products may depend on the type of “performance” he witnesses. The actors (e.g., salespeople), the setting (the store environment), and props (e.g., store displays) influence this evaluation. Like a brand personality, a number of factors, such as perceived convenience, sophistication, and expertise of salespeople, determine store image. With increasing competition from non-store alternatives, creating a positive shopping experience has never been more important. Online shopping is growing in importance, and this new way to acquire products has both good (e.g., convenience) and bad (e.g., security) aspects.

The information a store’s layout, website, or sales people provides strongly influences a purchase decision.

Because we don’t make many purchase decisions until we’re actually in the store, Point-ofpurchase (POP) stimuli are important sales tools. These include product samples, elaborate package displays, place-based media, and in-store promotional materials such as “shelf talkers.” POP stimuli are particularly useful in promoting impulse buying, which happens when .

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a consumer yields to a sudden urge for a product. Increasingly, mobile shopping apps are also playing a key role. The consumer’s encounter with a salesperson is a complex and important process. The outcome can be affected by such factors as the salesperson’s similarity to the customer and his or her perceived credibility.

The growth of a “sharing economy” changes how many consumers think about buying rather than renting products. In the rapidly growing sharing economy people rent what they need rather than buy it. New technologies make this process much easier and online networks allow us to form bonds of trust with strangers. In addition, many consumers no longer place a premium on owning products and prefer to “borrow” them only for the specific times when they actually need them.

Our decisions about how we dispose of a product are as important as how we decide to obtain it in the first place.

Concern about the environment and waste make the issue of product disposal key in many categories. In addition to understanding if and how consumers recycle, newer recommerce models such as swishing are emerging that enable people to share more of their used goods with one another rather than disposing of them

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Consumption Situation,’ ‘Situational Self-Image,’ ‘Open Rates,’ ‘Time Poverty,’ ‘Timestyle,’ ‘Co-Consumers,’ ‘Psychological Time,’ ‘Queuing Theory’ Here

I.

Situational Effects on Consumer Behavior Many contextual factors affect our choice, such as our mood, whether we feel time pressure to make the purchase, and the particular reason we need the product. (Figure 10.1) A. The Consumption Situation A consumption situation includes a buyer, a seller, and a product or service—but also many other factors, such as the reason we want to make a purchase and how the physical environment makes us feel.

In addition to the functional relationships between products and usage situation, another reason to take environmental circumstances seriously is that a person’s situational self-image—the role he or she plays at any one time—helps to determine what he or she wants to buy or consume. i. Temporal Factors

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Open rates (the percentage of people who open an email message from a marketer) vary throughout the day. The peak time for high open rates: mid-day on weekdays.

Time is an economic variable; it is a resource that we must divide among our activities. An individual’s priorities determine his or her timestyle.

Many consumers believe they are more pressed for time than ever before; marketers label this feeling time poverty. In 1965, the average U.S. woman spent about 32 hours per week on housework; the time today is about half of that.

The presence or absence of co-consumers, the other patrons in a setting, actually is a product attribute; think about an exclusive resort or boutique that promises to provide privacy to privileged customers. At other times, the presence of others can have positive value.

Our experience of time is subjective; our immediate priorities and needs determine how quickly time flies. It’s important for marketers to understand psychological time.

The four dimensions of time: (1) the social dimension refers to individuals’ categorization of time as either “time for me” or “time with/for others”; (2) the temporal orientation dimension depicts the relative significance individuals attach to past, present, or future; (3) the planning orientation dimension alludes to different time management styles varying on a continuum from analytic to spontaneous; and (4) the polychronic orientation dimension distinguishes between people who prefer to do one thing at a time from those who have multitasking timestyles.

The psychological dimension of time—how we actually experience it—is an important factor in queuing theory, the mathematical study of waiting lines.

Use Chapter Objective 2 Here Use Key Term ‘Design Thinking,’ ‘Customer Journey,’ ‘Total Quality Management,’ ‘Gemba’ Here Use Review Question 10-1 Here Use Consumer Behavior Challenge 10-11, 10-17, 10-20 Here II.

The Shopping Experience The management perspective called design thinking is hot right now. It emphasizes .

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the importance of creating products, services, and stores that aren’t just pretty. Instead they have to make sense in terms of how customers actually live their lives and use these things.

A methodology called the customer journey encourages brands to map out in excruciating detail all the steps a customer takes while they interact with the company—no matter where, and no matter how trivial.

The consumer journey concept was influenced by the Japanese approach to total quality management. To help companies achieve more insight, researchers go to the gemba, which to the Japanese means “the one true source of information.”

Use Key Term ‘Shopping Orientation,’ ‘Home Shopping Party’ Here Use Consumer Behavior Challenge 10-18, 10-21, 10-22 Here A. Mood Two basic dimensions of mood, pleasure and arousal, determine whether we will react positively or negatively to a consumption environment. (Figure 10.3) B. When the Going Gets Tough, the Tough Go Shopping We segment consumers in terms of their shopping orientation, or general attitudes about shopping. These orientations vary depending on the particular product categories and store types we consider.

Hedonic shopping motives include: • Social experiences • Sharing of common interests • Status • The thrill of the hunt – Some people pride themselves on their knowledge of the marketplace. They may love to haggle and bargain, and even view this process as a sport.

• Group pressure – the home shopping party is an example.

Use Key Term ‘Showrooming,’ ‘Social Shopping,’ ‘Pure Play’ Here Use Review Question 10-2, 10-3 Here C. E-Commerce: Clicks versus Bricks The experience of acquiring a product or service may be quite different offline versus online. This aspect of the transaction provides value over and above what you actually buy. i. From Bricks to Clicks

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The term showrooming means that to a shopper visits a store like Best Buy to explore options for big-ticket items like TVs or appliances and then he or she finds a cheaper price for the specific model online.

Social shopping is an emerging form of e-commerce that allows an online shopper to simulate the experience of shopping with others in a bricksand-mortar store. (Table 10.2) ii. From Clicks Back to Bricks The obituary for bricks-and-mortar shopping appears to have been premature. We are seeing a big trend now where pure play businesses (i.e., those that only operate online) are investing in the types of physical stores they threatened to make obsolete.

Use Key Term ‘Digital Wallets,’ ‘Near Field Communications (NFC) Technology,’ ‘P2P (Peer to Peer) Payment Systems,’ ‘Bitcoin,’ ‘Cryptocurrency,’ ‘Blockchain,’ ‘Pretailer’ Here Use Review Question 10-4 Here

D. Digital Currency Digital wallets are electronic devices that allow an individual to make ecommerce transactions. A lot of this activity is propelled by the spread of near field communications (NFC) technology that allows devices near to one another (like a smartphone and an NFC terminal in a store) to establish radio communication. In addition, P2P (peer to peer) payment systems such as Google Pay Send, PayPal, and Venmo empower ordinary citizens to transact business with one another.

The controversial Bitcoin system uses peer-to-peer technology to operate with no central authority or banks; it’s the most prominent form of cryptocurrency that relies upon an encryption technique called the blockchain rather than banks to regulate the generation of units of currency and verify the transfer of funds.

The high-fashion site ModaOperandi bills itself as a pretailer; it provides exclusive styles by prodding manufacturers to produce runway pieces they wouldn’t otherwise make because store buyers weren’t sure anyone would pay the money for them.

Typically speaking, online shoppers value these aspects of a website: • The ability to click on an item to create a pop-up window with more details about the product.

• The ability to click on an item and add it to your cart without leaving the page you are on.

• The ability to “feel” merchandise through better imagery, more product descriptions, and details.

• The ability to enter all data related to your purchase on one page. .

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•

The ability to mix and match product images on one page to determine whether they look good together.

Use Key Term ‘Retail Theming,’ ‘Store Image,’ ‘Atmospherics,’ ‘Activity Stores’ Here

E. Retailing as Theater Disney is revamping its stores to re-imagine the “magic” of the customer experience.

The quest to entertain means that many stores go all out to create imaginative environments that transport shoppers to fantasy worlds or provide other kinds of stimulation. We call this strategy retail theming.

Innovative merchants today use four basic kinds of theming techniques: • • • •

Landscape themes rely on associations with images of nature, Earth, animals, and the physical body.

Marketscape themes build on associations with manufactured places.

Cyberspace themes build on images of information and communications technology.

Mindscape themes draw on abstract ideas and concepts, introspection and fantasy, and often possess spiritual overtones.

F. Store Image Some of the important dimensions of store image are location, merchandise, suitability, and the knowledge and congeniality of the sales staff. i. Atmospherics Atmospherics are defined as the “conscious designing of space and its various dimensions to evoke certain effects in buyers.” These dimensions include colors, scents, and sounds.

To boost the entertainment value of shopping (and to lure online shoppers back to bricks-and-mortar stores), some retailers create activity stores that let consumers participate in the production of the products or services they buy there.

Use Key Term ‘Mobile Shopping Apps,’ ‘Beacons,’ ‘Virtual Reality’ Here Use Review Question 10-5 Use Consumer Behavior Challenge 10-14, 10-19 Here

G. In-Store Decision Making .

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Despite efforts to “pre-sell” consumers through advertising, marketers recognize that the store environment exerts a strong influence on many purchases. i. Shopping Apps and In-Store Tech Mobile shopping apps on smartphones provide imaginative new ways for retailers to guide shoppers through the experience, as they do everything for you: locate merchandise, identify the nearest restroom in a mall, or scout out sales.

Some retailers deploy beacons in their stores. These devices communicate with smartphone apps indoors through a Bluetooth signal.

Augmented reality (AR) and virtual reality (VR) platforms promise to turn the shopping experience into an interactive playground.

Use Key Term ‘Point-of-Purchase (POP) Stimuli,’ ‘Dyadic Encounters,’ ‘Identity Negotiation’ Here Use Consumer Behavior Challenge 10-13 Here H. Spontaneous Shopping When a shopper suddenly decides to buy something in the store, one of two different processes explains why: 1. The shopper engages in unplanned buying when they are unfamiliar with a store’s layout or perhaps he or she is under some time pressure.

2. The shopper engages in impulse buying when he or she experiences a sudden, unresistable urge. i. Point-of-Purchase Stimuli A point-of-purchase (POP) stimuli can be an elaborate product display or demonstration, a coupon- dispensing machine, or an employee who gives out free samples of a new cookie in the grocery aisle.

I. The Salesperson: A Lead Role in the Play The salesperson is one of the most important players in the retailing drama.

A buyer–seller situation is like many other dyadic encounters (two-person groups); it’s a relationship in which both parties must reach some agreement about the roles of each participant during a process of identity negotiation.

The ability to be adaptable is vital when customers and salespeople have different interaction styles. We each vary in the degree of assertiveness we bring to interactions. At one extreme, nonassertive people believe it’s not socially acceptable to complain. Assertive people are more likely to stand up for themselves. Aggressives may resort to rudeness and threats. .

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Use Chapter Objective 3 Here Use Key Term ‘Sharing Economy,’ ‘Collaborative Consumption,’ ‘P2P Commerce’ Here Use Review Question 10-6 Here Use Consumer Behavior Challenge 10-9, 10-10, 10-15, 10-16 Here III.

Ownership and the Sharing Economy We are witnessing the rise of the sharing economy, or what is sometimes called collaborative consumption. In this business model people rent what they need rather than buying it.

Doing business with other consumers rather than with companies is known as P2P commerce (peer-to-peer).

Use Chapter Objective 4 Here Use Key Term ‘Consumer Satisfaction/Dissatisfaction (CS/D),’ ‘Expectancy Disconfirmation Model,’ ‘Product Disposal’ Here Use Review Question 10-67 Here Use Consumer Behavior Challenge 10-12, 10-23 Here IV.

Postpurchase Satisfaction and Disposal Our overall reaction to a product after we’ve bought it goes by the name of consumer satisfaction/dissatisfaction (CS/D) A. Postpurchase Satisfaction Satisfaction or dissatisfaction is more than a reaction to how well a product or service performs.

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

B. Product Disposal Product disposal is an important element of consumer behavior.

Use Chapter Objective 4 Here Use Key Term ‘Lateral Cycling,’ ‘Underground Economy,’ ‘Swishing’ Here

C. Recycling and the Underground Economy In lateral cycling, one consumer exchanges something he or she owns for something the other person owns.

Economic estimates of the underground economy range from 3 to 30 percent of the gross national product of the United States and up to 70 percent of the gross domestic product of other countries.

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The new trend of recommerce shows that consumers want to squeeze more value out of their possessions by selling or trading them. This focus has given birth to the swishing movement, where people organize parties to exchange clothing or other personal possessions with others.

Use Review Question 10-8 Here Use Consumer Behavior Challenge 9-16, 9-17, 9-29, 9-35 Here

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

Marketing Opportunity How can we encourage shoppers to load up on healthy food items instead of those low in nutritional value? A recent study suggests that encouraging online food shopping may be one answer.

2.

Marketing Opportunity One popular theming strategy is to convert a store into a “being space.” Pop-up stores appear in many forms around the world and are growing in popularity.

3.

The Tangled Web Restaurant and store workers who have to grin and bear it all day go to vent on the customerssuck.com website.

REVIEW 10-1. What is time poverty, and how can it influence our purchase decisions?

Many consumers believe they are more pressed for time than ever before. It may increase usage of convenience goods and decision-making shortcuts. (5 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking) 10-2. What are the two dimensions that determine whether we will react positively or negatively to a purchase environment?

Pleasure—–a person can enjoy or not enjoy a situation and arousal—he can feel stimulated or not. (5 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking, 10-3. List three separate motivations for shopping, and give an example of each.

Social experiences: The shopping center or department store has replaced the traditional town square or county fair as a community gathering place. .

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Sharing of common interests: Stores frequently offer specialized goods that allow people with shared interests to communicate. Interpersonal attraction: Shopping centers are a natural place to congregate. The shopping mall has become a central “hangout” for teenagers.

Instant status: As every salesperson knows, some people savor the experience of being waited on, even though they may not necessarily buy anything.

The thrill of the hunt: Some people pride themselves on being able to find the best bargains. (15 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-4. What are some important pros and cons of e-commerce?

Numerous benefits and limitations of e-commerce are listed in Table 10.2 for both the consumer and the marketer. (10 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking,) 10-5. List three factors that help to determine store image.

Color, scents, and sounds. (5 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-6. What is the difference between unplanned buying and impulse buying?

Unplanned buying may occur when a person is unfamiliar with a store’s layout or perhaps when under some time pressure; or, a person may be reminded to buy something by seeing it on a store shelf. In contrast, impulse buying occurs when the person experiences a sudden urge he cannot resist. (10 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-7. How do business models in the sharing economy differ from traditional purchase processes?

We’re witnessing the rise of the sharing economy, or what is sometimes called collaborative consumption. In this business model people rent what they need rather than buying it. Collaborative consumption communities typically offer a Web site that allows individuals to list their services and a ratings system that allows both buyers and sellers to rate their experiences. What is fueling this revolution? Primarily technology that dramatically lowers transaction costs, so that it’s much easier to share assets and track them across large numbers of people. Online payment systems make it easy to exchange money. Social networks create communities and build trust among strangers who can access each other’s histories. Sellers can make money from assets they don’t use much; think about how many hours a typical owner actually uses an electric drill compared to how much it costs to buy one. (10 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

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10-8. What is the difference between recycling and lateral cycling?

During lateral cycling, one consumer exchanges something he or she owns for something the other person owns. Reusing other people’s things is especially important in our throwaway society because, as one researcher put it, “there is no longer an ‘away’ to throw things to.” Although traditional marketers don’t pay much attention to used product sellers, factors such as concern about the environment, demands for quality, and cost and fashion consciousness make these “secondary” markets more important. In fact, economic estimates of this underground economy range from 3 to 30 percent of the gross national product of the United States and up to 70 percent of the gross domestic product of other countries. The new trend of recommerce (a play on the term e-commerce) shows that many consumers want to squeeze more value out of their possessions by selling or trading them. (10 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 10-9. Are pop-up stores just a fad or a retailing concept that is here to stay?

Given that there are so many strategies that have circulated through retailing, it is likely that nothing is “here to stay.” Students should be engaged in a discussion as to how long they think that this trend will last and possible reasons that it might end (no longer providing the benefits of promoting the new idea; stores so profitable that they remain open, etc.). (5 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-10. Think about exceptionally good and bad salespeople you have encountered as a shopper.

What qualities seem to differentiate them from others?

The instructor might ask students to recall the last time they went shopping. In the context of that shopping trip, students should describe the characteristics of the salespeople who assisted them. The instructor, or a member of the class, should generate a list of the most common traits mentioned and use the class discussion to profile both good and bad salespeople. The students also should be encouraged to consider the text discussion of source credibility, including such characteristics as similarity, attractiveness, expertise, trustworthiness, and likeability. (10 minutes, Chapter Objective 10-3, AACSB: Reflective Thinking) 10-11. Discuss the concept of timestyle. Based on your own experiences, how might we segment consumers in terms of their timestyles?

The concept of timestyle reflects how individuals allocate their time to various activities.

You might want to discuss your own timestyle with the class and encourage students to do the same. A discussion of how consumers might be segmented based on their timestyles should be included. Products that benefit from different timestyles also could be discussed. For example: How much time do you spend teaching, grading papers, .

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researching, and doing college and community service? How much time do you spend with your family, doing household chores, eating, sleeping, exercising, and having fun?

(10 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking) 10-12. Consumers who participate in the sharing economy seem willing to interact with total strangers. Despite safety and privacy concerns, what is the long-term outlook for this change in the way we think about interacting with people whom we don’t know? How can businesses help to diminish worries some people may have about these practices?

Consumers no longer want to buy them. Instead we’re witnessing the rise of the sharing economy, or what is sometimes called collaborative consumption. In this business model people rent what they need rather than buying it. Collaborative consumption communities typically offer a Web site that allows individuals to list their services and a ratings system that allows both buyers and sellers to rate their experiences. Technology that dramatically lowers transaction costs, so that it’s much easier to share assets and track them across large numbers of people. Online payment systems make it easy to exchange money. Social networks create communities and build trust among strangers who can access each other’s histories. (10 minutes, Chapter Objective 10-3, AACSB: Reflective Thinking) 10-13. Several men’s clothing retailers nationwide now provide free booze to their male clientele to encourage them to hang out in their stores. Is it ethical to encourage customers to get wasted before they shop?

This is an extension of what salons have been doing for some time for women. Student opinions will vary with students pointing out that it is up to the customers to choose how much to consume. Make the connection for students that offering such refreshments are a part of store image and atmospherics. (5 minutes, Chapter Objective 10-1, AACSB: Ethical Understanding and Reasoning Abilities) 10-14. Some retailers work hard to cultivate a certain look or image, and they may even choose employees who fit this look. Abercrombie & Fitch, for example, seems to link itself to a clean-cut, all-American image. At one point, a lawsuit claimed that Abercrombie & Fitch systematically “refuses to hire qualified minority applicants as brand representatives to work on the sales floor and discourages applications from minority applicants.”

(Abercrombie replied that it has “zero tolerance for discrimination.”) We know the Hooters restaurant chain is known for its attractive female waitresses. Should a retailer have the right to recruit employees who are consistent with its image even if this means excluding certain types of people (e.g. non-Caucasians, men) from the sales floor? What are some positive and negative aspects of a policy that requires employees who interact with customers to wear a uniform?

Traditionally, the law has allowed for hiring people with a certain look or body type if it can be proven that this is a necessary component of the product or service. For example, airlines can refuse to hire flight personnel that exceed a weight and size limitation (or terminate them if they exceed the limitations after being hired) because there is limited .

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space to work on the airplanes. Ethnic restaurants can choose to only hire people of that ethnicity. Modeling agencies and movie/TV production companies make hiring decisions based almost exclusively on the way people look. However, for many chains such as Abercrombie & Fitch, it is difficult to justify this link. In addition, in a case such as its, they would be unwise to attempt such a link for reasons of public perception. Since this lawsuit, Abercrombie & Fitch has implemented personnel policies to ensure that this problem will be eliminated. Whether or not students feel retailers should have the right to exclude certain types of people will vary based on the student’s opinion. The discussion on the use of uniforms should include the role of identity negotiation. A uniform is a factor that helps to define a salesperson’s role in the organization. (15 minutes, Chapter Objective 10-2 and 10-3, AACSB: Reflective Thinking) 10-15. The store environment is heating up as more and more companies put their promotional dollars into point-of-purchase efforts. Some stores confront shoppers with videos at the checkout counter, computer monitors attached to their shopping carts, and ads stenciled on the floors. We are also increasingly exposed to ads in non-shopping environments. A health club in New York was forced to remove TV monitors that showed advertising on the Health Club Media Networks, after exercisers claimed that the programming interfered with their workouts. Do you feel that these innovations are overly intrusive? At what point might shoppers rebel and demand some peace and quiet while they shop? Do you see any market potential in the future for stores that “countermarket” by promising a “hands-off” shopping environment?

Student opinion will vary based on their knowledge/experience and feelings/beliefs about place-based media. You might ask your students if they ever encounter this type of promotion and explore their reaction at the time of exposure. Students might also be asked to consider a more objective opinion, in light of what they have learned from this course. They should be challenged to view the advantages and disadvantages of these practices from the perspectives of both consumers and retailers. (20 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-16. Courts often prohibit special-interest groups from distributing literature in shopping malls. Mall managements claim that these centers are private property. However, these groups argue that the mall is the modern-day version of the town square and as such is a public forum. Find some recent court cases involving this free-speech issue and examine the arguments pro and con. What is the status of the mall as a public forum? Do you agree with this concept?

This exercise will challenge the student to conduct primary and secondary research.

Encourage exploration of this issue with other students, faculty members, and consumer advocacy groups. A search should be conducted of published sources such as court cases and the Law Review. They might call the management office of a local mall for additional information. (30 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

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10-17. Marketers use “tricks” to minimize psychological waiting time. These techniques range from altering customers’ perceptions of a line’s length to providing distractions that divert attention from waiting: One hotel chain received excessive complaints about the wait for elevators, so it installed mirrors near the elevator banks. People’s natural tendency to check their appearance reduced complaints, even though the actual waiting time was unchanged.

Airline passengers often complain about the wait to claim their baggage. In one airport, they would walk 1 minute from the plane to the baggage carousel and then wait 7 minutes for their luggage. When the airport changed the layout so that the walk to the carousel took 6 minutes and bags arrived 2 minutes after that, complaints disappeared.

Restaurant chains are scrambling to put the “fast” back into fast food, especially for drive-through lanes, which now account for 65 percent of revenues. In a study that ranked the speed of 25 fast-food chains, cars spent an average of 203.6 seconds from the menu board to departure. Wendy’s was clocked the fastest at 150.3 seconds. To speed things up and eliminate spills, McDonald’s created a salad that comes in a container to fit into car cup holders. Arby’s is working on a “high viscosity” version of its special sauce that’s less likely to spill. Burger King is testing see-through bags so customers can quickly check their orders before speeding off.

What are your waiting line “pain points?” How can companies change their processes to make these situations easier or more enjoyable for you?

The psychological dimension of time—how we actually experience it—is an important factor in queuing theory, the mathematical study of waiting lines. As we all know, our experience when we wait has a big effect on our evaluations of what we get at the end of the wait. Although we assume that something must be pretty good if we have to wait for it, the negative feelings that long waits arouse can quickly turn people off. Student discussions on their “pain points” will vary. (15 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking) APPLY 10-18. Conduct naturalistic observation at a local mall. Sit in a central location and observe the activities of mall employees and patrons. Keep a log of the nonretailing activity you observe (e.g., special performances, exhibits, socializing, etc.). Does this activity enhance or detract from business the mall conducts? As malls become more like high-tech game rooms, how valid is the criticism raised that shopping areas are only encouraging more loitering by teenage boys who don’t spend a lot in stores and simply scare away other customers?

Students tend to like this exercise. Now that they have been exposed to a variety of consumer behavior constructs, they are likely to see things in the retail context that they did not notice before. They will probably notice a wide variety of non-retailing activities .

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in the mall. Encourage your students to think about the advantages and disadvantages of these other activities from both the consumers’ and retailers’ points of view. Encourage students to develop a specific plan for dealing with teenage loitering that would work, be legal, and would not interfere with normal store and mall traffic. Students might interview mall officials or security officers to get their viewpoint about loitering.

(Possible Field Project Idea) (90 minutes, Chapter Objective 10-1, AACSB: Analytic Skills) 10-19. Select three competing clothing stores in your area and conduct a store image study for them. Ask a group of consumers to rate each store on a set of attributes and plot these ratings on the same graph. Based on your findings, are there any areas of competitive advantage or disadvantage you could bring to the attention of store management?

Students should review the section on store image (including Atmospherics) before beginning this exercise. You might encourage the students to select stores that are very different from each other rather than “direct competitors.” Consider using this as an opportunity to discuss the strengths and weaknesses of this type of market research.

(Possible Field Project Idea) (30 minutes, Chapter Objective 10-1, AACSB: Analytic Skills) 10-20. Using Table 10.1 as a model, construct a person-situation segmentation matrix for a brand of perfume.

You might want to ask different groups of students to construct a matrix for other very different types of products, such as convenience versus specialty goods. Tell students to look up these terms in the glossary and index for further information. Allow students to experiment with variables to construct their matrix. (Possible Field Project or In-Class Group Project Idea) (25 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking) 10-21. Many retailers believe that when they pile a lot of stuff around their store, this cluttered look encourages shoppers to hunt for items and eventually buy more. Dollar General recently raised the height of its shelves to more than 6 feet; JC Penney transformed empty walls into jewelry and accessory displays; Old Navy added lanes lined with items like water bottles, candy, and lunchboxes. Best Buy is even testing the impact of filling aisles with bulky items like Segways and bicycles to compensate for the smaller space that thin TVs and smaller speakers take up. Walmart recently did an abrupt about-face: The company only recently remodeled its stores by eliminating the pallets of items it used to stack in the centers of aisles, and it reduced overall inventory by about 9 percent.

Customers loved the leaner, cleaner look. Only one problem: They bought less stuff. As a senior Walmart executive commented, “They loved the experience. They just bought less.

And that generally is not a good long-term strategy.” Now, Walmart is adding inventory back in and is once again piling stacks of merchandise in aisles. What is your take on these store-stocking strategies? Visit several “big-box” stores in your area, such as Walmart, Target, Best Buy, Costco, and so on. If possible, interview shoppers about their experiences. Do they have trouble navigating around the store? Do they enjoy the clutter?

Does it feel like a “treasure hunt” when they have to pick their way around piles and .

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pallets? If you were designing a store, how would you craft a stocking strategy that would make it easy to shop there?

A variety of responses will emerge from this activity because students may have different motivations for shopping and may have different experiences within the store depending on the shopper density when they shop. Students should recognize the trade-off between the convenience of making things neat, orderly and easy to find and the messy, cluttered store with things stacked high, which customers associate with lower prices. (30 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking) 10-22. Identify three people who own electric coffeemakers. Then, “go to the gemba” by observing them as they actually prepare coffee in the appliance at home. Based on these experiences, what recommendations might you make to the designer of a new coffee maker model that would improve customers’ experiences with the product?

Student responses will vary. (30 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking) 10-23. Interview three consumers who have used a sharing economy service, such as Zipcar, Airbnb, Snapgoods, and others. How would you characterize their experiences compare to more traditional models?

Student responses will vary. (30 minutes, Chapter Objective 10-3, AACSB: Reflective Thinking) MyLab 10-24. People have more leisure time than ever. Why do they feel so rushed, and how can marketers address this problem?

Student responses will vary with some believing that the amount of leisure time has actually declined, not increased. There are many possible answers to this question including the fact that, even with increased leisure time, today’s consumers are being pulled in so many ways that it appears we have less time. (Chapter Objective 10-1, AACSB: Reflective Thinking) 10-25. Is the customer always right? Why or why not?

Of course, the consumer is not always right, but they do have a right to be wrong and be heard. (Chapter Objective 10-2, AACSB: Reflective Thinking)

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CASE STUDY TEACHING NOTES Chapter 10 Case Study: RH — Revolutionizing Physical Retailing Summary of Case RH (formerly Restoration Hardware) is a luxury brand that offers lighting, décor, home furnishings, bathware, and a variety of other products clearly targeted to an upper income clientele. At one of their 83 galleries you can buy everything from toys to a taper arm sofa for $12,000. In recent years, RH has decreased its total number of stores, but “doubled down” on the remaining ones by renovating them into big, beautiful galleries located in renovated historical buildings. These 45,000 square foot stores include cafés and offer childcare.

RH has a different view of its retail spaces—not as stores, but rather as galleries or showrooms, where customers can get inspiration and style guidance. One retail consultant calls these new RH showrooms a kind of “giant 3D real-time catalog”. While many retailers are rushing to catch up in e-commerce, the RH CEO says RH’s business is “not about the internet,” claiming that “many retailers find themselves in a race to the bottom, a race we at RH have chosen not to join.” RH is running a different race, and based on its most recent annual revenues, it seem to be winning.

Suggestions for Presentation Have students discuss other businesses that use retailtainment or other physical/ambiance kinds of strategies to keep customers coming in.

Suggested Answers for Discussion Questions CS 10-1. In this chapter, you learned about some retailers that convert their whole store into a “being space.” How does this concept apply to the RH strategy and how might it affect its sales?

From the chapter: This kind of environment resembles a sort of commercial living room, where we can go to relax, be entertained, hang out with friends, escape the everyday, or even learn. When you think of being spaces, Starbucks probably comes to mind. The coffee chain’s stated goal is to become our “third place” where we spend the bulk of our time, in addition to home and work. Starbucks led the way when it outfitted its stores with comfy chairs and Wi-Fi. RH’s cafés could serve as a being space, allowing customers to relax with friends while being exposed to (and in some cases “trying out”) RH products. These kinds of spaces encourage customers to spend more time with the brand and to do so in a relaxed and enjoyable setting that might put them more in the mood to buy RH products. (10 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

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CS 10-2. The RH strategy focuses on brick-and-mortar stores over e-commerce. Do you agree with this strategy? While the strategy seems to be working, is RH taking a risk by deemphasizing e-commerce?

So far, RH has been able to use this strategy as a differentiator that appears to appeal to a certain segment of the market. Note that they are not totally shunning ecommerce (see RH.com), but rather are not focusing on it. One way to look at their strategy is as a multi-target strategy with one approach that appeals to the consumer interested in an experience and another for those in a hurry or otherwise not interested in a trip to a physical location. (10 minutes, Chapter Objective 10-2, AACSB: Analytic Thinking) CS 10-3. What elements of RH’s approach could be appropriate for retailers that are at price levels below the high/end prestige level of a retailer such as RH? Even value- priced retailers can create an atmosphere designed to draw customers into their stores. For example, Wal-Mart could create a small hunting enthusiast section that tries to mimic the kind of environment that Bass Pro Shops have created. Students should be able to come up with other ideas that their favorite retailers could try. (15 minutes, Chapter Objective 10-2, AACSB: Analytic Thinking)

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students employ the method of Day Reconstruction to document their own behavior for a day and report on the findings. What trends do they notice? Are there things that they found that they did not expect?

Students may notice effects of mood and other situational factors that they may not have recognized without the exercise. (30 minutes, Chapter Objective 10-1, AACSB: Reflective Thinking)

2.

Have students go to a shopping mall. Have them analyze the behavior of shoppers based on observation only. Can they determine the nature of people’s reasons for shopping?

Have them keep track and present the results to the class.

Students may observe the pace at which the consumers are shopping, the number and types of purchases they have made from shopping bags, the number of people in the shopping group, the gender composition of the group, and the time of day, among other things, and make inferences about the shopper’s motivations. (90 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

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3.

Ask a student to visit competing discount houses, supermarkets, department stores, or specialty shops in your area and describe the image they have of each store. What factors account for the image differences? For the poorest image store, design a strategy for upgrading its image.

Student responses will vary depending on the stores visited, but they should recognize that there is often a cost associated with atmospherics. Therefore, stores with a higher image may also have higher margins on the products they sell. At the same time, some stores may try to look bare bones and cluttered because consumers associated these store designs with lower prices. (120 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

4.

Have students talk to other students at the university or college. What forms of complaint behavior do they observe? What strategies could the university or college follow to alleviate these complaints?

Students may enjoy this project. Student-to-student complaint interactions would be categorized as word of mouth. If the student complained to a third party or directly to the university, their complaints would fit in different categories. The strategies to alleviate complaints may be directed at the student or at the problem. (60 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking)

5.

Have someone visit a local supermarket and question the manager regarding how shelf space is allocated. What and who determines which products are placed on the shelves, how much space they are allocated, and at what level they are displayed on the shelf?

Students may be surprised at the amount of thought that goes into shelf positioning.

Students who find it interesting may also want to read Paco Underhill’s book, Why We Buy: The Science of Shopping. (45 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

6.

Many consumers have become more interested in conserving than in “throwing away.”

Have students think of ideas they have for creative recycling. Then, see if they can figure out ways to profitably market these ideas to the public.

Some organizations provide rewards to consumers that recycle (e.g. recyclebank.com).

Organizations like ebay.com, craigslist.org and freecycle.org help consumers recycle.

People who run flea markets make money by renting space to people who often want to sell used merchandise. Students might also sell extended warranties or service plans on second-hand products. (20 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking)

7.

Ask a student to relate to the class a purchase experience in which dissatisfaction resulted from the product or service purchased. Have the student tell the class how he/she reacted in terms of post-purchase dissonance. How could the seller avoid future similar incidents? .

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Section 3: Choosing and Using Products

Post-purchase dissonance is a result of tension that often occurs because of a difference between expectations and reality. The student should recognize that lowering expectations or improving service is two ways of reducing the gap between expected and actual service. (30 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking and Communication Abilities) 8.

Have students interview someone older than fifty. What do they look for in a shopping environment? Compare this with your own and/or the student’s expectations. Discuss the differences.

Students should observe differences in expectations for customer service, atmospherics, crowding, the availability of technological tools, and social media access, among other things. Look for students to identify the differences and make inferences about why the differences exist. (45 minutes, Chapter Objective 10-2, AACSB: Analytic Skills)

9.

Freecycle something. Then, take something off of Freecycle.org. Report on the experience including the feelings of giving/receiving, the benefit or value to the giver/receiver, etc.

Individual feelings will vary; the value should include the value of the object and the reduced cost to the environment. (30 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking and Communication Abilities)

10.

Have each student think of a time when they had to get rid of something that had been significant to them. Analyze this situation in terms of divestment rituals.

Divestment rituals include iconic transfer ritual (taking pictures and videos before disposal), transition-place ritual (putting items away in a garage before disposal); and ritual cleansing (washing, ironing, and wrapping the item before disposal). (15 minutes, Chapter Objective 10-5, AACSB: Reflective Thinking)

11.

Faculty often gets free textbooks from publishers in order to review and possibly prescribe them for their courses. Book buyers come by faculty offices to get books (sometimes, instructor copies), which are then “recycled” into the aftermarket. Is this activity ethical? Does this help keep the cost of books lower for students? Alternatively, should the faculty freecycle these books by offering them to needy students?

Many schools have policies against selling text books to book buyers. The costs for some students may be lower, but the publisher probably has revenue goals so it is likely to increase the costs for other students. Faculty members can put unused copies on reserve at the library; this provides the benefit of sharing the content with needy students without profiting from something that was a goodwill gift from the publisher, which may ultimately increase prices for other students. (30 minutes, Chapter Objective 10-5, AACSB: Ethical Understanding and Reasoning Abilities)

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Chapter 10: Buying, Using, and Disposing

Group Projects 1.

In groups, visit three or four different grocery stores, note the elements of the stores’ environment, and compare them. Based on what you have seen, make recommendations to the store manager in order to improve the retailing environment.

Look for students to select specific aspects of the store environment to improve and to tie their recommendations to the store’s overall positioning. (90 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

2.

Student teams should go to an activity store to interview the manager. Given that the concept of the store is built around participating in the production of a good, ask the manager what benefits they perceive in this model, both from the consumer perspective and from the company perspective.

Before assigning this exercise, make sure there is an activity store nearby that is willing to participate in the interview process. If there is only one activity store, you may want to select a single group to do this project so the manager is not overwhelmed with inquiries.

As an alternative, you can ask students to explore the websites of activity stores online to find the same information. Publicly traded stores will have information about the company perspective in their annual reports, and the consumer perspective should be evident from the copy on the website, which is likely to explain the value of the shopping experience to the consumer. (60 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

3.

Assign each student group a competitive task. Each member of the group should attempt to get an item off Freecycle.org. The competition is: Which member of the group can come up with a free item that is worth the most? Which did the most good for the giver?

Which did the most good in terms of keeping it out of a landfill?

The value of the free item in total dollars should be compared to the value of keeping the product out of a landfill. (30 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking)

4.

Have groups of students research and catalog recycling/reusing efforts in their community as part of the class project. They can think of this assignment as their contribution to public service. They can contact the local media to disseminate this information to the local public.

Look for students to focus on the positive dimension of existing efforts as well as the areas for improvement and to tie their recommendations back to what they learned in consumer behavior about product disposal. (30 minutes, Chapter Objective 10-4, AACSB: Reflective Thinking and Communication Abilities)

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Section 3: Choosing and Using Products

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.bestbuy.com. The Best Buy website promises interactivity with the customer. What evidence do you find that this has occurred (if any)? Evaluate the Best Buy website as to ease of use and customer involvement. What are your impressions about the Best Buy approach? What is the company doing right and what are they doing wrong with respect to customer buying?

Students may note the ability to search, watch videos about “blue shirt test drives” of products, easy access to weekly promotional specials, the ability to compare products, etc. Look for students to provide support that relates back to the consumer behavior concepts in the chapter for what they company is doing right and what the company is doing wrong on the website. (15 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking,)

Group Assignments 1.

Go to www.bananarepublic.com and www.oldnavy.com. Have your group compare these two websites as to online atmosphere. Next, if possible, go to a Banana Republic and Old Navy store to determine the differences between in-store atmospheres. Comment on what you find. How have the two organizations positioned themselves? Is there consistency between the approaches used on the Web versus the approaches used in the retail environment? Explain. What improvements should or both of the organizations make with respect to consumer buying? Explain how you arrived at your suggestion(s).

Both company websites are linked, as is gap.com and piperlime.com, and provides access to a common shopping bag. However, the designs of the websites are very different, as are the store images in the bricks and mortar versions of the store. Students should observe differences in the atmospherics, the sales people, the type and quantity of merchandise and relate these differences to the positioning of the stores. For the recommendations, look for students to provide support for their suggestions from the chapter.(45 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking and Analytic Skills)

2.

Go to www.customerssuck.com. As a group, examine accounts given by employees as to the outrageous behavior observed in retail settings. Summarize the findings. What conclusions can be made from this?

The examples on this website are a little bit dated, but can still be useful for students to categorize findings. Students may have examples from their own retail experiences. (20 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

3.

Visit www.customerrespect.com/ and learn about what they do about treating online customers. Is this service necessary?

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The service may provide online “listening” for companies that do not have the resources to perform this important responsibility in house. Student opinions will vary about whether the service is necessary, but should agree on the importance of designing websites to meet customer needs. (30 minutes, Chapter Objective 10-2, AACSB: Reflective Thinking)

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Chapter 11: Group Influences and Social Media

Chapter 11: GROUP INFLUENCES AND SOCIAL MEDIA

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 11-1. Other people and groups, especially those who possess social power, influence our decisions.

11-2. Marketers often need to understand consumers’ behavior rather than a consumer’s behavior.

11-3. Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

11-4. Word-of-mouth communication is the most important driver of product choice.

11-5. Opinion leaders’ recommendations are more influential than others when we decide what to buy.

11-6. Social media changes the way we learn about and select products.

CHAPTER SUMMARY Other people and groups, especially those that possess social power, influence our decisions.

We belong to or admire many different groups, and a desire for them to accept us often drives our purchase decisions. Individuals or groups whose opinions or behavior are particularly important to consumers are reference groups. Both formal and informal groups influence the individual’s purchase decisions, although such factors as the conspicuousness of the product and the relevance of the reference group for a particular purchase determine how influential the reference group is.

Individuals have influence in a group to the extent that they possess social power. Types of social power include information power, referent power, legitimate power, expert power, reward power, and coercive power.

Brand communities unite consumers who share a common passion for a product. Brandfests, which companies organize to encourage this kind of community, can build brand loyalty and reinforce group membership.

We conform to the desires of others for two basic reasons: (1) People who model their behavior after others because they take others’ behavior as evidence of the correct way to act are conforming because of informational social influence; and (2) those who conform to satisfy the expectations of others or to be accepted by the group are affected by normative social influence.

Group members often do things they would not do as individuals because their identities become merged with the group; they become de-individuated.

Marketers often need to understand consumers’ behavior rather than a consumer’s behavior. .

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Section 4: Consumers in Their Social and Cultural Settings

More than one person actually makes many purchasing decisions. Collective decision making occurs whenever two or more people evaluate, select, or use a product or service. In organizations and in families, members play several different roles during the decision-making process. These roles include gatekeeper, influencer, buyer, and user.

The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use.

Organizational buyers are people who make purchasing decisions on behalf of a company or other group. Although many of the same factors that affect how they make decisions in their personal lives influence these buyers, their organizational choices tend to be more rational.

Their decisions are also likely to involve more financial risk, and as the choices become more complex, it is probable that a greater number of people will be involved in making the decision.

The amount of cognitive effort that goes into organizational decisions relates to internal factors, such as the individuals’ psychological characteristics, and external factors, such as the company’s willingness to tolerate risk. One of the most important determinants is the type of purchase the company wants to make: The extent of problem-solving required depends on whether the product or service it procures is simply a reorder (a straight rebuy), a reorder with minor modifications (modified rebuy), or something it has never bought before or something complex and risky (new task). Online purchasing sites revolutionize the way organizational decision makers collect and evaluate product information in business-to-business (B2B) ecommerce.

Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

Marketers have to understand how families make decisions. Spouses in particular have different priorities and exert varying amounts of influence in terms of effort and power. Women who work outside the home tend to command more power in purchasing decisions, but, on the other hand, the significant growth in the number of stay-at-home fathers also influences this dynamic.

Word-of-mouth communication is the most important driver of product choice.

Much of what we know about products we learn through word-of-mouth (WOM) communication rather than formal advertising. We tend to exchange product-related information in casual conversations. Although WOM often is helpful to make consumers aware of products, it can also hurt companies when damaging product rumors or negative WOM occur.

Opinion leaders’ recommendations are more influential than others when we decide what to buy.

Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence others’ choices. Specific opinion leaders are somewhat hard to identify, but marketers who know their general characteristics can try to target them in their media and promotional strategies. Other influencers include market mavens, who have a general interest in marketplace activities; and surrogate consumers, who are compensated for their advice about purchases. .

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Chapter 11: Group Influences and Social Media

Social media changes the way we learn about and select products.

Social media platforms significantly increase our access to others’ opinions about products and services. Virtual consumption communities unite those who share a common passion for products that include apparel, cars, music, beer, political candidates, etc. Many social media users post content online that satisfies the motive for self-enhancement as well as the desire to share opinions and experiences about products and services. Consumers may engage with these brands via social games. Viral marketing techniques enlist individuals to spread online WOM about brands. Online opinion leaders play a pivotal role in disseminating influential recommendations and product information.

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Social Identity,’ ‘Minimal Group Paradigm,’ ‘IFC – Incidental Food Consumption’ Here I.

Groups Social identity theory argues that each of us has several “selves” that relate to groups. These linkages are so important that we think of ourselves not just as “I,” but also as “we.”

In numerous experiments that employ the minimal group paradigm, researchers show that even when they arbitrarily assign subjects to one group or another, people favor those who wind up in the same group.

The cues we use to decide if we should identify with—and thus trust—others may be quite subtle. For example, people who simply eat the same things (what researchers term IFC —Incidental Food Consumption)—like, trust, and cooperate with one another more than those who don’t.

Use Key Term ‘Social Power,’ ‘Referent Power,’ ‘Information Power,’ ‘Legitimate Power,’ ‘Expert Power,’ ‘Reward Power,’ ‘Coercive Power’ Here A. Social Power Social power describes “the capacity to alter the actions of others.”

Classification of power bases: • Referent power - If a person admires the qualities of a person or a group, they try to copy the referent’s behaviors Referent power is important because consumers voluntarily modify what they do and buy to identify with a referent.

• Information power - A person possesses information power simply .

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Section 4: Consumers in Their Social and Cultural Settings

• • • •

because he or she knows something others would like to know.

Legitimate power - The legitimate power a uniform confers wields authority in consumer contexts, including teaching hospitals where medical students don white coats to enhance their standing with patients.

Expert power - Expert power derives from the knowledge one possesses about a content area.

Reward power - A person or group with the means to provide positive reinforcement has reward power.

Coercive power - We exert coercive power when we influence someone because of social or physical intimidation.

Use Key Term ‘Reference Group,’ ‘Membership Reference Group,’ ‘Aspirational Reference Group,’ ‘Avoidance Groups,’ ‘Antibrand Communities’ Here Use Review Question 11-10 Here B. Reference Groups A reference group is an actual or imaginary individual or group that significantly influences an individual’s evaluations, aspirations, or behavior.

Although two or more people normally form a group, we often use the term “reference group” a bit more loosely to describe any external influence that provides social cues A membership reference group consists of people we actually know. In contrast although we don’t know those in an aspirational reference group, we admire them anyway.

We also deliberately do the opposite if we want to distance ourselves from avoidance groups (groups we do not want to be associated with).

Use Key Term ‘Conformity,’ ‘Norms,’ ‘Red Sneakers Effect,’ ‘Principle of Least Interest,’ ‘Deindividualation,’ ‘Gyges Effect,’ ‘Internet Trolls,’ ‘Brand Community,’ ‘Brandfests,’ ‘Collective Value Creation,’ ‘Social Loafing’ Here Use Consumer Behavior Challenge 11-34, 11-40 Here C. Conformity Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure. For a society to function, its members develop norms or informal rules that govern behavior.

The Red Sneakers Effect is the term given to an individual’s actions that are nonconforming and, under some conditions, can lead to more positive impressions.

Factors that may increase chance of conformity include: .

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Chapter 11: Group Influences and Social Media

• • • • • •

Cultural pressures Fear of deviance Commitment – (Principle of Least Interest: the person who is least committed to staying a relatonship has the most power) Group unaninity, size, and expertise Susceptibility to interpersonal influence Environmental cues

D. Brand Communities A brand community is a group of consumers who share a set of social relationships based on usage of or interest in a product.

Some community-oriented companies may hold brandfests to bring owners together.

Collective value creation is the idea of experienced product users coaching new users in ways to maximize their enjoyment of the product, so that more and more people benefit from a network of satisfied participants.

Use Chapter Objective 2 Here Use Key Term ‘Collective Decision-Making Process,’ ‘Organizational Buyers,’ ‘Business-toBusiness (B2B) Marketers,’ ‘Buying Centers,’ ‘Buyclass Theory of Purchasing,’ ‘Straight Rebuy,’ ‘Modified Rebuy,’ ‘New Task’ Here Use Review Question 11-11, 11-12, 11-13 Here Use Consumer Behavior Challenge 11-39 Here II.

Collective Decision Making: How Groups Influence What We Buy Many of the decisions we make are collaborative.

This collaborative or collective decision-making process includes two or more people who may not have the same level of investment in the outcome, the same tastes and preferences, or the same consumption priorities.

The roles in the collective decision making process include the following: • Initiator • Gatekeeper • Influencer • Buyer • User A. B2B Decision Making Organizational buyers are people who purchase goods and services on behalf of companies for the companies’ use in manufacturing, distribution, or resale. These individuals buy from business-to-business (B2B) marketers that must satisfy the needs of organizations. .

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Section 4: Consumers in Their Social and Cultural Settings

A number of factors influence the organizational buyer’s perception of the purchase situation. These include: • Expectations of the supplier (e.g., product quality, the competence and behavior of the firm’s employees, and prior experiences in dealing with that supplier) • Organizational climate of the company (i.e., how it rewards performance and what it values) • Buyer’s assessment of his or her own performance (e.g., whether he or she believes in taking risks). i. How Does B2B Decision Making Compare with Consumer Decision Making • The purchase decisions that companies make frequently involve many people • Organizations and companies often use precise technical specifications • Impulse buying is rare • Decisions often are risky • The dollar volume of purchases is often substantial • B2B marketing often emphasizes personal selling Typically, a group of people (members of a buying center) plays different roles in more complex organizational decisions.

The buyclass theory of purchasing divides organizational buying decisions into three types.

Three decision making dimensions describe the purchasing strategies of an organizational buyer: • The level of information he or she must gather prior to the decision.

• The seriousness with which all possible alternatives is examined.

• The degree to which he or she is familiar with the purchase.

Three types of “buyclasses,” or strategies determined by these dimensions, encompass most organizational decision situations. (Table 11.1) • A straight rebuy is a habitual decision.

• A modified rebuy situation involves limited decision making.

• A new task involves extensive problem solving.

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Chapter 11: Group Influences and Social Media

Use Key Term ‘Business-to-Business (B2B) E-Commerce,’ ‘Prediction Market,’ ‘Crowdsourcing,’ ‘Wisdom of Crowds,’ ‘Agile Marketing,’ ‘Scrum’ Here Use Review Question 11-14, 11-15, 11-17, 11-18, 11-19 Here Use Consumer Behavior Challenge 11-24 Here ii. B2B E-Commerce Business-to-business (B2B) e-commerce refers to internet interactions between two or more businesses or organizations.

A prediction market approach asserts that groups of people with knowledge about an industry are, collectively, better predictors of the future than are any of them as individuals.

Prediction markets are one element of crowdsourcing, which describes the growing practice of soliciting ideas for new products and even advertising campaigns from a user community. The wisdom of crowds perspective argues that groups are smarter than the smartest people in them. iii. Agile Marketing: B2B at High Speed Agile marketing refers to using data and analytics to continuously source promising opportunities or solutions to problems in real time, deploying tests quickly, evaluating the results, and rapidly iterating The agile marketing framework grew out of the software development field, which uses a methodology called scrum. This involves the use of small teams that run quick “sprints” and frequently change up their approach based upon rapid and honest feedback.

Use Key Term ‘Beta Marriage,’ ‘Oppositional Brand Choice,’ ‘Family Financial Officer (FFO),’ ‘Synoptic Ideal,’ ‘Family Identity,’ ‘Juggling Lifestyle,’ ‘Kin-Network System,’ ‘Dadvertising’ Here Use Review Question 11-16 Here III.

The Intimate Corporation: Family Decision Making A. How Families Decide Some specific factors that determine how much family decision conflict there will be include: • Interpersonal need • Product involvement and utility • Responsibility • Power

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Section 4: Consumers in Their Social and Cultural Settings

Research shows that one way a partner in a close relationship can act out if they feel they have less power is via oppositional brand choice; they deliberately choose brands they know their partner doesn’t like.

The family financial officer (FFO) is the individual who keeps track of the family’s bills and decides how to spend any surplus funds.

The synoptic ideal calls for the husband and wife to act as joint decision makers.

According to family identity, family rituals, narratives, and everyday interactions help families maintain their structure, maintain their family character, and clarify members’ relationships to one another. i. The Wife As women continue to work outside the home in great number, their influence on household purchase decisions grows accordingly.

Working mothers often struggle with the juggling lifestyle: a frenzied, guilt-ridden compromise between conflicting cultural ideals of motherhood and professionalism.

Women are primarily responsible for the continuation of the family’s kinnetwork system. They maintain ties among family members, both immediate and extended. ii. The Husband In dadvertising, a domestic version of fathers who tenderly and wisely look after the kids is depicted.

Women’s roles within the family decision-making unit are changing, but so are those of men. For one thing, single men remain a powerful and often ignored force in the marketplace. Right now, 3 out of 10 men are single, and more than 80 percent of them make the sole or key big-ticket decisions in their households.

Use Chapter Objective 4 Here Use Key Term ‘Word-of-Mouth (WOM),’ ‘Buzz,’ ‘Negative Word-of-Mouth,’ ‘Serial Reproduction’ Here Use Review Question 11-20, 11-21, 11-22, 11-23 Here Use Consumer Behavior Challenge 11-25, 11-35, 11-36 Here IV.

Word-of-Mouth Communication Word-of-mouth (WOM) is product information that individuals transmit to other individuals. .

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Chapter 11: Group Influences and Social Media

As a rule, advertising is more effective to reinforce our existing product preferences than to create new ones.

A. Buzz Building Stimulate WOM to build buzz around a product or service, then sit back and let your customers do the heavy lifting.

B. Negative WOM Consumers weigh negative word-of-mouth more heavily than they do positive comments.

As we transmit information to one another, it tends to change. The resulting message usually does not resemble the original at all. The term for the process that takes place is serial reproduction, (Figure 11.1) Use Chapter Objective 5 Here Use Key Term ‘Homophily,’ ‘Opinion Leaders,’ ‘Two-Step Flow Model of Influence,’ ‘Influence Network,’ ‘Information Cascades’ Here Use Review Question 11-1, 11-2, 11-3 Here V.

Opinion Leadership Opinion leaders are individuals that are frequently able to influence others’ attitudes or behaviors.

A. How Influential Is an Opinion Leader?

Early on it was assumed that there was such a thing as a generalized opinion leader whose recommendations would be sought for all types of purchases.

In reality, few people are capable of being expert in a number of fields (even though they may believe otherwise). Sociologists distinguish between those who are monomorphic, or expert in a limited field, and those who are polymorphic, or expert in several fields.

The original framework of opinion leadership is called the two-step flow model of influence. It proposes that a small group of influencers disseminates information because they can modify the opinions of a large number of others.

Newer frameworks say the influence is driven more by the interaction among those who are easily influenced; they communicate the information to one another and participate in a two-way dialogue with the opinion leader as part of an influence network.

These conversations create information cascades.

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Section 4: Consumers in Their Social and Cultural Settings

Use Key Term ‘Market Maven,’ ‘Surrogate Consumer,’ ‘Product Curator,’ ‘Six Degrees of Kevin Bacon,’ ‘Sociometric Methods, ‘Tie Strength,’ ‘Strength of Weak Ties’ Here Use Review Question 11-5, 11-6, 11-30 Here

B. Types of Opinion Leaders Early purchasers tend to be innovators. Opinion leaders who also are early purchasers are called innovative communicators. i. The Market Maven A market maven is a person who likes to transmit marketplace information of all types. ii. The Surrogate Consumer The surrogate consumer is a third party we retain to provide input into our purchase decisions. iii. Product Curators The product curator is an individual, working on behalf of manufacturers or stores, that create an exhibition and often include recommendations about how to use the items and perhaps even share their stories about how they use them in their own lives.

C. How Do We Find Opinion Leaders Opinion leaders tend to operate at the local level and they may influence only a small group of consumers rather than an entire market segment. i. Sociometry: The Kevin Bacon Phenomenon The play Six Degrees of Separation is based on the premise that everyone on the planet indirectly knows everyone else. A game called Six Degrees of Kevin Bacon challenges players to link the actor Kevin Bacon with other actors in much the same way.

Sociometric methods trace communication patterns among members of a group.

Sociometric techniques consider the type of relationships among members of a social network. Tie strength refers to the nature of the bond between people. It can range from strong primary (e.g., a person’s spouse) to weak secondary (e.g., an acquaintance whom you rarely see).

Although strong ties are important, weak ties are as well because they perform a bridging function, which may result in a referral process, thus demonstrating the strength of weak ties.

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Chapter 11: Group Influences and Social Media

Use Chapter Objective 6 Here Use Key Term ‘Horizontal Revolution,’ ‘Synchronous Communications,’ ‘Asynchronous Communications,’ ‘Culture of Participation,’ ‘Online Community,’ ‘Fear of Missing Out (FOMO)’ Here Use Review Question 11-7, 11-8, 11-9 Here Use Consumer Behavior Challenge 11-33, 11-37, 11-38 Here VI.

Social Media: The Horizontal Revolution The horizontal revolution refers to communications no longer just flow top-down from companies and established media; they also flow across regular users via social media.

Social media platforms like WhatsApp offer synchronous communications (those that occur in real time, as when you text back and forth with a friend) and others such as Facebook that offer asynchronous communications (those that don’t require all participants to respond immediately).

Social media platforms enable a culture of participation.

An online community is the collective participation of members who together build and maintain a site.

The fear of missing out (FOMO) is the idea of becoming so enmeshed in your social networks that you feel the need to check them constantly.

Use Key Term ‘B2C E-Commerce,’ ‘C2C E-Commerce,’ ‘Social Network,’ ‘Nodes,’ ‘Flow,’ ‘Flaming,’ ‘Lurkers’ Here Use Consumer Behavior Challenge 11-26, 11-27, 11-28 Here

A. Online Social Networks and Brand Communities It’s not all about businesses selling to consumers (B2C e-commerce). The cyberspace explosion has created a revolution in consumer-to-consumer activity (C2C e-commerce): Each online platform (e.g., Facebook) consists of a social network, a set of socially relevant nodes connected by one or more relations. Nodes are members of the network (e.g., Facebook users) who are connected to one another.

Flows (the exchanges of information or influence among members of the network) occur between nodes.

Successful online communities possess several important characteristics: • •

Stardards of behavior (no flaming allowed) Member contributions (most members are lurkers) .

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Section 4: Consumers in Their Social and Cultural Settings

• •

Degree of connectedness Network effects

Use Key Term ‘Social Game,’ ‘Leaderboards,’ ‘Badges,’ ‘Game Platform,’ ‘Mode,’ ‘Milieu,’ ‘Genre,’ ‘MMORPG,’ ‘Digital Virtual Consumption (DVC),’ ‘Virtual Goods’ Here Use Consumer Behavior Challenge 11-29 Here B. Social Games A social game is a multiplayer, competitive, goal-oriented activity with defined rules of engagement and online connectivity among a community of players.

These applications usually incorporate elements of game design, such as leaderboards that indicate how each player is doing relative to others and badges that show the community the challenges the player has mastered.

The basic dimensions of social games include: • • • •

Game platform refers to the hardware systems on which the game is played.

Mode refers to the way players experience the game world.

Milieu describes the visual nature of the game, such as science fiction or fantasy.

Genre of a game refers to the method of play.

Use Key Term ‘Viral Marketing,’ ‘Content Marketing,’ ‘Haul Videos,’ ‘Unboxing Videos’ Here C. Digital Word-of-Mouth Viral marketing occurs when an organization motivates visitors to forward online content to their friends.

The strategy called content marketing (or sometimes native advertising) refers to a strategic marketing approach focused on creating and distributing valuable, and consistent content to attract and retain a clearly defined audience—and to drive profitable customer action.

The urge to share creates new genres of communication such as haul videos that feature someone describing clothing items they bought, and unboxing videos that illustrate in detail how to remove electronics products from their boxes and assemble them for use. i. Why Do We Post?

The viral marketing explosion highlights the power of the Megaphone Effect; a huge audience is available to everyone.

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Chapter 11: Group Influences and Social Media

The phenomenon of the Dispreferred Market Effect occurs when someone couches a negative review by beginning with dispreferred markers such as “I’ll be honest…” ii. Influencer Marketing The influencer marketing model basically replicates the “cool kid” phenomenon we all experienced in high school.

Influence impressions refers to a view or an exposure to an advertising message 6.2 percent of social media users are responsible for 80 percent of brand mentions. These influencers are known as mass connectors.

Use Key Term ‘Megaphone Effect,’ ‘Dispreferred Market Effect,’ ‘Influencer Marketing Model,’ ‘Influence Impressions,’ ‘Mass Connectors’ Here Use Review Question 11-4, 11-31, 11-32 Here Use Consumer Behavior Challenge 11-41 Here

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

The Tangled Wed The Web has spawned the rise of a new kind of avoidance group: antibrand communities. These groups also coalesce around a celebrity, store, or brand, but in this case they’re united by their disdain for it.

2.

Marketing Opportunity Most consumers only admire their aspirational reference groups from afar; however, some of them shell out big bucks to get up close and personal with their heroes. Fantasy camps are a $1 billion industry as people pay for the chance to hang out—and play with—their idols.

3.

The Tangled Web Deindividuation is a process whereby individual identities become submerged within a group. Deindividuation happens online as well as offline. Researchers call this the Gyges Effect. The term comes from a myth called The Ring of Gyges.

4.

Marketing Pitfall Social loafing happens when we don’t devote as much time and effort to a task as we could because our contribution is part of a larger group effort.

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5.

Marketing Pitfall Big technology companies such as Amazon, Apple, and Microsoft have set their sights on the classroom as the next frontier where organizations are spending millions of dollars on hardware and software to teach the next generation of students.

6.

The Tangled Web Facebook has an impact on couples’ relationships, perhaps because the platform makes it easier for people to rekindle old romances. In a survey of attorneys, two-thirds of divorce lawyers identified Facebook as the primary source of evidence in their cases.

7.

Marketing Pitfall The power of opinion leaders is evident in the sports world, where the competition to persuade high-profile athletes and coaches to wear shoes and other merchandise is cutthroat.

8.

Net Profit MMORPGs—massive multiplayer online role-playing games—the social aspects of gaming. Ddigital virtual consumption (DVC) may be the next frontier of marketing.

Consumers worldwide spend well more than $80 billion per year to buy virtual goods for their online characters.

REVIEW QUESTIONS 11-1. What is word-of-mouth, and how can it be more powerful than advertising?

Word-of-mouth (WOM) is product information transmitted by individuals to individuals.

Because we get the word from people we know, WOM tends to be more reliable and trustworthy than recommendations we get through more formal marketing channels. (5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-2. Which is more powerful, positive or negative word-of-mouth?

Consumers weigh negative word of mouth more heavily than they do positive comments.

(5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-3. Describe some ways in which marketers are using the internet to encourage positive word-of-mouth.

A virtual community of consumption is a collection of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity.

Like the brand communities we discussed earlier, these groups form around a shared love for a product, whether it is Barbie dolls or Blackberry PDAs. However, members remain anonymous because they only interact with each other in cyberspace. (10 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking)

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11-4. What is viral marketing? Give an example of this strategy.

Viral marketing refers to the strategy of getting visitors to a website to forward information on the site to their friends in order to make still more consumers aware of the product—usually by creating online content that is entertaining or just plain weird. Viral marketing for oil? Pretty slick. WD-40 quadrupled visitors to its fan club website by offering 1,000 AM/FM radios in the shape of oilcans to individuals who signed up 10 other members. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-5. What is an opinion leader? Give three reasons why they are powerful influences on consumers’ opinions.

An opinion leader is a person who is frequently able to influence others’ attitudes or behaviors.

• •

•

•

•

They are technically competent and thus convincing because they possess expert power.

They have prescreened, evaluated, and synthesized product information in an unbiased way, so they possess knowledge power. Unlike commercial endorsers, opinion leaders do not actually represent the interests of one company. Thus, they are more credible because they have no “axe to grind.”

They tend to be socially active and highly interconnected in their communities. They are likely to hold offices in community groups and clubs and to be active outside of the home. As a result, opinion leaders often have legitimate power by virtue of their social standing.

They tend to be similar to the consumer in terms of their values and beliefs, so they possess referent power. Note that although opinion leaders are set apart by their interest or expertise in a product category, they are more convincing to the extent that they are homophilous rather than heterophilous. Homophily refers to the degree to which a pair of individuals is similar in terms of education, social status, and beliefs. Effective opinion leaders tend to be slightly higher in terms of status and educational attainment than those they influence, but not so high as to be in a different social class.

Opinion leaders are often among the first to buy new products, so they absorb much of the risk. This experience reduces uncertainty for others who are not as courageous.

Furthermore, whereas company-sponsored communications tend to focus exclusively on the positive aspects of a product, the hands-on experience of opinion leaders makes them more likely to impart both positive and negative information about product performance. (10 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

11-6. Is there such a thing as a generalized opinion leader? Why or why not?

When marketers and social scientists initially developed the concept of the opinion leader, they assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. However, later work began to question the .

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assumption that there is such a thing as a generalized opinion leader, somebody whose recommendations we seek for all types of purchases. Very few people are capable of being expert in a number of fields. Sociologists distinguish between those who are monomorphic, or expert in a limited field, and those who are polymorphic, or expert in several fields. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-7. What is the relationship between an opinion leader and an opinion seeker?

The fact that we transmit advice about products does not mean other people take that advice. For someone to be considered a bona fide opinion leader, opinion seekers must actually heed his advice. An alternative is to select certain group members (key informants) who we ask to identify opinion leaders. The success of this approach hinges on locating those who have accurate knowledge of the group and on minimizing their response biases (e.g., the tendency to inflate one’s own influence on the choices of others). (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-8. What is the difference between a market maven and a surrogate consumer?

In addition to everyday consumers who are instrumental in influencing others’ purchase decisions, a class of marketing intermediary called the surrogate consumer is an active player in many categories. A consumer category called the market maven describes people who are actively involved in transmitting marketplace information of all types. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking,) 11-9. What are sociometric techniques? Under what conditions does it make sense to use them?

Sociometric methods trace communication patterns among members of a group. These techniques allow researchers to systematically map out the interactions that take place among group members. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-10. List three types of social power, and give an example of each.

Responses will vary by students. Social power describes the capacity to alter the actions of others. It can be based on referent power (the power to promote a fashion brand by a celebrity), information power (identifying the next trend in gaming), legitimate power (doctors at a hospital teaching medical students), expert power (hiring an astronaut to design technology for the space station), reward power (earning loyalty rewards from your favorite retailer), or coercive power (a car salesman offering a special price if you buy today). (5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-11. What is brand community, and why is it of interest to marketers?

A brand community is a group of consumers—like those zealous Halo players— who share a set of social relationships based on usage of or interest in a product. Researchers find that people who participate in these events feel more positive about the sponsor’s .

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products as a result, and this enhances brand loyalty. They tend to forgive product failures or lapses in service quality, and they’re less likely to switch brands even if they learn that competing products are as good or better. Furthermore, these community members become emotionally involved in the company’s welfare, and they often serve as brand missionaries because they carry its marketing message to others. Researchers find that brand community members do more than help the product build buzz; their inputs actually create added value for themselves and other members as they develop better ways to use and customize products. (5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-12. Define conformity and give an example of it. Name three reasons why people conform.

Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure. For a society to function, its members develop norms or informal rules that govern behavior. Without these rules, we would have chaos. Imagine the confusion if a simple norm such as “always stop for a red traffic light” did not exist. There are several reasons why people conform, and student answer will vary, but should include a combination of cultural pressures, fear of deviance, commitment, group unanimity, size and expertise, susceptibility to interpersonal influence, and environmental cues. (5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-13. How does the Principle of Least Interest relate to your success in a romantic relationship?

The more people are dedicated to a group and value their membership in it, the greater their motivation to conform to the group’s wishes. Rock groupies and followers of TV evangelists may do anything their idols ask of them, and terrorists become martyrs for their cause. According to the Principle of Least Interest the person who is least committed to staying in a relationship has the most power because that party doesn’t care as much if the other person rejects him. (5 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-14. How does knowing what you now know about B2B decisions change the way you might approach a marketing campaign to influence the members of a buying center?

Three types of strategies encompass most organizational decision situations.

• • •

A straight rebuy is a habitual decision. It’s an automatic choice, as when an inventory level reaches a preestablished reorder point.

A modified rebuy situation involves limited decision making. It occurs when an organization wants to repurchase a product or service but also wants to make some minor modifications.

A new task involves extensive problem solving. Because the company hasn’t made a similar decision already, there is often a serious risk that the product won’t perform as it should or that it will be too costly. (45 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

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11-15. What are some factors that influence how an organizational buyer evaluates a purchase decision?

Three decision making dimensions describe the purchasing strategies of an organizational buyer: 1.

The level of information he or she must gather prior to the decision.

2.

The seriousness with which he or she must consider all possible alternatives.

3.

The degree to which he or she is familiar with the purchase. (15 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-16. What is a prediction market?

A prediction market is one of the hottest trends in organizational decision-making techniques. This approach asserts that groups of people with knowledge about an industry are, collectively, better predictors of the future than are any of them as individuals. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-17. Summarize the buyclass model of purchasing. How do decisions differ within each class?

The classic buyclass theory of purchasing divides organizational buying decisions into three types that range from the least to the most complex. Three decision making dimensions describe the purchasing strategies of an organizational buyer: 1.

2.

3.

The level of information he or she must gather prior to the decision.

The seriousness with which he or she must consider all possible alternatives.

The degree to which he or she is familiar with the purchase. (15 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

11-18. What are some of the ways in which organizational decisions differ from individual consumer decisions? How are they similar?

•

• • • •

The purchase decisions that companies make frequently involve many people, including those who do the actual buying, those who directly or indirectly influence this decision, and the employees who will actually use the product or service.

Organizations and companies often use precise technical specifications that require a lot of knowledge about the product category.

Impulse buying is rare (industrial buyers do not suddenly get an “urge to splurge” on lead pipe or silicon chips). Because buyers are professionals, they base their decisions on past experience and they carefully weigh alternatives.

Decisions often are risky, especially in the sense that buyers’ careers may ride on their judgment.

The dollar volume of purchases is often substantial; it dwarfs most individual consumers’ grocery bills or mortgage payments. One hundred to 250 organizational customers typically account for more than half of a supplier’s sales volume, which gives the buyers a lot of influence over the supplier. .

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Chapter 11: Group Influences and Social Media

•

B2B marketing often emphasizes personal selling more than advertising or other forms of promotion. Dealing with organizational buyers typically requires more face-to-face contact than when marketers sell to end consumers. (25 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

11-19. List three roles employees play in the organizational decision-making process.

The roles are: • Initiator—The person who brings up the idea or identifies a need.

• Gatekeeper—The person who conducts the information search and controls the flow of information available to the group. In organizational contexts, the gatekeeper identifies possible vendors and products for the rest of the group to consider.

• Influencer—The person who tries to sway the outcome of the decision. Some people may be more motivated than others to get involved, and participants also possess different amounts of power to get their point across.

• Buyer—The person who actually makes the purchase. The buyer may or may not actually use the product.

• User—The person who actually consumes the product or service. (15 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-20. What is the difference between an autonomic and a syncretic decision?

When one family member chooses a product, this is an autonomic decision. Syncretic decisions involve both partners. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-21. What are some differences between “traditional” and “modern” couples in terms of how they allocate household responsibilities?

In traditional families (and especially those with low educational levels), women are primarily responsible for family financial management: The man makes it and the woman spends it. Each spouse “specializes” in certain activities. The pattern is different in families where more modern sex-role norms operate. These couples believe that both people should participate in family maintenance activities. In these cases, husbands assume more responsibility for laundering, housecleaning, grocery shopping, and so on, in addition to such traditionally “male” tasks as home maintenance and garbage removal. (20 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-22. What is a kin-network system?

A kin-network system is the ties among family members, both immediate and extended.

Women are more likely coordinate visits among relatives and stay in touch with family members. (5 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

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11-23. Describe a heuristic a couple might use when they make a decision, and provide an example of it.

This example is one which realtors frequently observe when a couple decides on a new house, illustrate how couples use heuristics: • The couple defines their areas of common preference on obvious, objective dimensions rather than subtler, hard-to-define cues.

• The couple negotiates a system of task specialization in which each is responsible for certain duties or decision areas and does not intrude on the other’s “turf.”

• The likelihood of one partner conceding to the wishes of the other depends on how passionately each person desires a specific outcome. (35 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 11-24. Industrial purchase decisions are totally rational. Aesthetic or subjective factors don’t— and shouldn’t—play a role in this process. Do you agree?

Student responses to this question will vary. (10 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-25. We can think of college students who live away from home as having a substitute “family.” Whether you live with your parents, with a spouse, or with other students, how are decisions made in your college residence “family”? Do some people take on the role of mother, father, or child? Give a specific example of a decision that had to be made and the roles members played.

Answers to this question will vary substantially; however, the same factors come into play regardless of their answers. Those factors are: • • • •

Interpersonal need—(a person’s level of investment in the group) Product involvement and utility—(the degree to which a person will use the product to satisfy a need) Responsibility—(for procurement, maintenance, payment, and so on) Power—(or the degree to which one family member exerts influence over the others) (20 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

11-26. Does constant checking of what your network posts lead to FOMO? How might social media platforms combat the potential to cause depression among users?

Many social media users become so enmeshed in their social networks that they feel the need to check them constantly to be sure they stay on top of what their (online) friends are up to 24/7. Some refer to this compulsion as fear of missing out (FOMO). Responses

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from students regarding potential media platform actions will vary. (10 minutes, Chapter Objective 11-5, AACSB: Reflective Thinking) 11-27. A recent sociometric study on obesity (similar to the one we read about regarding clusters of smokers) provides a striking example of how our social networks influence what we do. The researchers analyzed a sample of more than 12,000 people who participated in the Framingham Heart Study, which closely documented their health from 1971 to 2003.

They discovered that obesity can spread from person to person, much like a virus. The investigators knew who was friends with whom, as well as who was a spouse or sibling or neighbor, and they knew how much each person weighed at various times over three decades so they could reconstruct what happened over the years if study participants became obese. Guess what? When one person gains weight, close friends tend to gain weight, too. A person’s chances of becoming obese if a close friend put on the pounds increased by 57 percent! The friend’s influence remained even if he or she lived hundreds of miles away. The researchers speculated that the reason for this social contagion effect is that when our best buds get fat, this alters our perception of normal body weight so we aren’t as concerned when we put on a few pounds as well.

Sociometric methods trace communication patterns among members of a group.

These techniques allow researchers to systematically map out the interactions among group members. In many cases, one or a few people emerge as the “nodes” in a map— our opinion leaders. This method is the most precise, but it is difficult and expensive to implement because it involves close study of interaction patterns in small groups. For this reason, it’s best to apply a sociometric technique in a closed, self-contained social setting, such as in hospitals, in prisons, and on military bases, where members are largely isolated from other social networks. Sociometric techniques don’t just look at who talks (or texts) to whom; they also consider the type of relationships among members of a social network. Tie strength refers to the nature of the bond between people. It can range from strong primary (e.g., one’s spouse) to weak secondary (e.g., an acquaintance whom one rarely sees). Although strong ties are important, weak ties are as well because they perform a bridging function. This type of connection allows a consumer access between subgroups. (15 minutes, Chapter Objective 11-2, AACSB: Analytical Thinking) 11-28. The average U.S. teenager spends well more than 8 hours a day in front of a screen, whether smartphone, PC, TV or tablet. One study reported increasing physical isolation among Internet users; it created a controversy and drew angry complaints from some users who insisted that time they spent online did not detract from their social relationships. However, the researchers said they had now gathered further evidence showing that Internet use has lowered the amount of time people spend socializing with friends and even sleeping. According to the study, an hour of time spent using the Internet reduces face-to-face contact with friends, co-workers and family by 23.5 minutes, lowers the amount of time spent watching television by 10 minutes and shortens sleep by 8.5 minutes. What’s your perspective on this issue—does increasing use of the internet have positive or negative implications for interpersonal relationships in our society?

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Section 4: Consumers in Their Social and Cultural Settings

The answer to this question all depends on how “interpersonal” is defined. If the definition sticks to that of traditional face-to-face communication, then it will be hard to argue that increased time online does not detract from interpersonal communication.

Time is a limited resource. And as is shown above in the question itself, there is research to back this up. However, if students lean toward defining interpersonal communication as any type of communication between people, then there will be strong argument for the fact that increased time online enhances such. Given that many people spend time emailing, IMing, chatting, interacting in forums, blogs, etc., then in many cases, the time spent online is providing opporunities to interact with others that would otherwise not be there. (15 minutes, Chapter Objective 11-3, AACSB: Analytical Thinking) 11-29. A consumer tribe is similar to a brand community; it is a group of people who share a lifestyle and can identify with each other because of a shared allegiance to an activity or a product. Although these tribes are often unstable and short lived, at least for a time members identify with others through shared emotions, moral beliefs, styles of life, and of course the products they jointly consume as part of their tribal affiliation. Some companies, especially those that are more youth-oriented, use a tribal marketing strategy that links their product to, say, a group of shredders. However, there also are plenty of tribes with older members, such as car enthusiasts who gather to celebrate cult products like the Citroën in Europe and the Ford Mustang in the United States, or “foodies” who share their passion for cooking with other Wolfgang Puck wannabes around the world.

Identify and visit a tribal festival in your area (e.g. a comic book convention, a rock concert, a basketball tournament, a vegan food show, etc). What role do marketers play in this event? How and to what extent do attendees identify with other “tribal” members?

Responses will vary based on the tribal event students choose to participate in, but should discuss opinion leaders and influence networks. (3-4 hours, Chapter Objective 112, AACSB: Reflective Thinking) 11-30. The chapter discusses a scandal involving college basketball coaches who get paid by a company to require their players to wear its products. Should college players be allowed to accept their own endorsement deals?

Student responses will vary. The conversation should focus on the role players (and coaches) play as potential opinion leaders. (10 minutes, Chapter Objective 11-4, AACSB: Ethical Understanding and Reasoning Abilities) 11-31. Walmart contended with a widespread text-messaging hoax that warned women to stay away from its stores or risk death. The digital rumor apparently originated in an urban myth (an unsubstantiated “fact” that many people accept as true) that circulated via email several years ago. As a reflection of how widespread this myth became, at one point Walmart was number 5 on Twitter’s list of trending topics. If you were a Walmart communication executive, how might you deal with this kind of public relations nightmare?

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Chapter 11: Group Influences and Social Media

Students are likely to have different opinions about the best way to handle the rumors.

Draw their attention to the information about rumors and word-of-mouth so they understand the value of having consumers share the right information (vs. using less credible advertising). (15 minutes, Chapter Objective 11-1, AACSB: Ethical Understanding and Reasoning Abilities) 11-32. The strategy of viral marketing gets customers to sell a product to other customers on behalf of the company. That often means convincing your friends to climb on the bandwagon, and sometimes you get a cut if they buy something. Some might argue that that means you’re selling out your friends (or at least selling to your friends) in exchange for a piece of the action. Others might say you’re simply sharing the wealth with your buddies. Have you ever passed along names of your friends to a company or Web site? If so, what happened? How do you feel about this practice?

Responses will vary based on student experiences. When people share their opinions about products with their social networks, they may do so to satisfy one of several goals: To manage the impression they make on others, to regulate emotions by expressing affective reactions, to share and acquire information, to bond with others, and to persuade others to change their opinions. Unlike a spontaneous conversation in the physical world, when consumers write about products they have more time to think strategically about what they’re saying—and about how these judgments reflect on them.

(15 minutes, Chapter Objective 11-3, AACSB: Ethical Understanding and Reasoning) APPLY 11-33. Identify fashion opinion leaders on your campus. Do they fit the profile the chapter describes?

The class might agree to focus on a particular group of fashion opinion leaders. After deciding on the group, they could go through an opinion leader profile and determine whether or not the group members actually are fashion experts. (Possible Field Project Idea) (15 minutes, Chapter Objectives 11-2 and 11-6, AACSB: Reflective Thinking) 11-34. A study on antibranding documented hostility among consumers who object to the gasguzzling Hummer vehicle. One driver posted this message: “The H2 is a death machine.

You’d better hope that you don’t collide with an H2 in your economy car. You can kiss your ass goodbye thanks to the H2’s massive weight and raised bumpers. Too bad you couldn’t afford an urban assault vehicle of your own.” Identify an antibranding site for another product. What functions do the site seem to serve? How can people who participate there be considered part of a community?

Answers will vary, some students will discuss public service announcements like don’t drink and drive or don’t smoke, etc. (15 minutes, Chapter Objectives 11-2 and 11-6, AACSB: Reflective Thinking)

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11-35. Arrange to interview two married couples, one married fewer than five years and one married for more than 20 years. Prepare a response form that lists five product categories—groceries, furniture, appliances, vacations, and automobiles—and ask each spouse to indicate, without consulting the other, whether purchases in each category are made by joint or unilateral decisions, and to indicate whether the unilateral decisions are made by the husband or the wife. Compare each couple’s responses for agreement between husbands and wives relative to who makes the decisions, and compare both couples’ overall responses for differences relative to the number of joint versus unilateral decisions. Report your findings and conclusions.

Students’ answers will vary substantially depending on the couples interviewed.

Discussions will likely involve the changing role of the wife in the family, the impact of domestic advertising directed to the husbands (dadvertising), and varying autonomic and syncretic decisions. (30 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-36. More than 16 million millennial women are now mothers, and that number grows by more than a million every year. These new parents demand innovations in child rearing to match their experiences in other realms of their lives. These “parennials” are informationhungry; they never stop researching the best things to buy for their children. There are numerous resources for them to learn about parenting, such as chat rooms like Wonder Weeks and WebMDBaby. Many parennials, accustomed to chronicling every great dish they ordered in a restaurant, give their children YouTube channels from the first sonogram and hashtags when they’re born. What is the next “killer app” for young parennials?

Students’ responses to this question will vary widely. (5 minutes, Chapter Objective 11-5, AACSB: Reflective Thinking) 11-37. Conduct a sociometric analysis within your dormitory or neighborhood. For a product category such as music or cars, ask each individual to identify other individuals with whom they share information. Systematically trace all of these avenues of communication, and identify opinion leaders by locating individuals who are repeatedly named as providing helpful information.

Students should include a discussion of sociometry in their responses and recognize that sociometric methods allow researchers to systematically point out the interactions that take place among group members. Conducting a study of this type should highlight for students how difficult and expensive such activities can be. (Possible Field Project Idea) (90 minutes, Chapter Objective 11-2, AACSB: Analytical Thinking) 11-38. Trace a referral pattern for a service provider such as a hair stylist; track how clients came to choose him or her. See if you can identify opinion leaders who are responsible for referring several clients to the businessperson. How might the service provider take advantage of this process to grow his or her business?

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Students are likely to come up with all types of incentive programs that will motivate customers to refer friends. Once something like that is in place, the likelihood of a referral network emerging is greater. (30 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 11-39. The power of unspoken social norms often becomes obvious only when we violate them.

To witness the result firsthand, try one of the following: Stand facing the back wall in an elevator, serve dessert before the main course, offer to pay cash for dinner at a friend’s home, wear pajamas to class, or tell someone not to have a nice day.

Answers will vary. (15 minutes, Chapter Objectives 11-2 and 11-6, AACSB: Reflective Thinking) 11-40. Identify a set of avoidance groups for your peers. Can you identify any consumption decisions that you and your friends make with these groups in mind?

Responses will vary by student. Reference groups impact our buying decisions both positively and negatively. In most cases, we model our behavior to be in line with what we think the group expects us to do. Sometimes, however, we also deliberately do the opposite if we want to distance ourselves from avoidance groups. You may carefully study the dress or mannerisms of a group you dislike (e.g., “nerds,” “druggies,” or “preppies”) and scrupulously avoid buying anything that might identify you with that group. Rebellious adolescents do the opposite of what their parents desire to make a statement about their independence. In one study, college freshmen reported consuming less alcohol when they associated it with their avoidance groups. (15 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) 11-41. Several colleges have sponsored “social media detox” events. Students at Saint Mary’s College of California were challenged to “Disconnect, Power Off and Unplug” in order to rediscover “The Lost Art of Solitude;” no Internet for a month! The library at Wake Forest University created a “ZieSta Room” where technology is banned. Do a “detox” of your own for 48 hours. No cellphones. No Facebook. No social media of any kind. Keep a diary of your experiences.

Student outcomes will vary. (50 hours, Chapter Objective 11-5, AACSB: Information Technology) MyLab Marketing 11-42. Although social networking is red hot, could its days be numbered? Many people have concerns about privacy issues. Others feel that platforms such as Facebook are too overwhelming. As one media executive comments, “Nobody has 5,000 real friends. At the end of the day it just becomes one big cauldron of noise.” What’s your stand on this: Can we have too much of a good thing? Will people start to tune out all of these networks?

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Section 4: Consumers in Their Social and Cultural Settings

Student responses will vary. The fear of missing out (FOMO) drives many on social media to constantly check their status to be certain they stay on top of what their (online) friends are up to. Certainly, there are advantages to always feeling connected, but perhaps the downside is a vague feeling of regret or inadequacy that lurks in the background in case we chose not to be somewhere—or even worse, that we weren’t invited in the first place. FOMO usually is based upon a false perception that friends’ lives are so much more glam than their own. Many people assume that others are better off socially, but those others feel the same. All of this has the potential to lead to social media burnout. (25 minutes, Chapter Objective 11-5, AACSB: Reflective Thinking, Information Technology) 11-43. The adoption of a certain brand of shoe or apparel by athletes can be a powerful influence on students and other fans. Should high school and college coaches be paid to determine what brand of athletic equipment their players wear?

Student responses will vary. The conversation should focus on the role players (and coaches) play as potential opinion leaders. (10 minutes, Chapter Objective 11-4, AACSB: Ethical Understanding and Reasoning Abilities)

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CASE STUDY TEACHING NOTES Chapter 11 Case Study: Never Stay Here! The Power of Negative Online Reviews.

Summary of Case TripAdvisor offers a review system for major travel partners and other travel-related businesses.

Its community of travelers influences opinions and behaviors around the world. This case discusses options for handling negative reviews. Most marketers agree that listening and responding is the best strategy.

Suggestions for Presentation You may wish to encourage students to explore TripAdvisor before discussing this case. As an exercise, you could ask them to plan out a sample Spring Break trip using TripAdvisor reviews.

Suggested Answers for Discussion Questions CS 11-1. How comfortable should consumers be in letting the reviews of others influence where and how they travel? What are the pros and cons?

One study found that 59 percent of consumers said online reviews were as trustworthy as a friend’s recommendation; in another, that number was 84 percent. Another key finding was that four out of five consumers have changed their minds about a recommended purchase based solely on negative information they found online.

One study revealed that a one-star increase in a Yelp rating can lead to as much as a nine percent increase in revenue. Another Cornell University study found that for every increased point in reputation rating (TripAdvisor’s 1-5 scale), hotels can increase prices by 11 percent and not lose business. In the competitive world of hotel marketing, it’s clear that social media marketing and visitor review sites will continue to influence travelers’ decisions and must be taken seriously.

A potential negative is that some reviewers may be very upset about a particular bad experience and could exaggerate the significance of some aspect of their stay.

Students might identify other pros and cons and include them in the discussion.

(15 minutes, Chapter Objectives 11-1 & 11-4, AACSB: Information Technology) CS 11-2. What steps do you recommend a hotel take when dealing with a negative online review? Try to find one example of a hotel that has done a good job of responding to a negative review.

The case explains that hotels should listen and respond. Following service recovery literature, the hotel can try to fix the issue and/or recover by offering some discount or refund as an apology. However, hotels must be careful not to publicly promote this reward, or less ethical reviewers might intentionally write bad reviews in the hope of getting free nights at the hotel. .

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Section 4: Consumers in Their Social and Cultural Settings

(15 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking)

CS 11-3. Review the concept of the wisdom of crowds discussed in this chapter. How does this perspective apply to Travelocity hotel reviews? Which do you trust more: the reviews of fellow travelers or the opinions of travel “experts”? Explain your choice.

From the chapter: The wisdom of crowds perspective (from a book by that name) argues that, under the right circumstances, groups are smarter than the smartest people in them. If this is true, it implies that large numbers of consumers can predict successful products.

Travel Advisor is essentially a crowdsourced review service, exchanging the opinions of travel “experts” for normal travelers sharing their experiences. Students’ opinions about which opinions to trust more will likely vary and may consider factors such as: • • •

• •

Experts may have a wider set of travel experiences and may take a more objective and thorough approach to evaluating hotels.

Travelers are likely to focus on items that could be important to the travel shopper.

Travel consumers will have different priorities when choosing a hotel. For some, cleanliness is number one, for others, the quality of the food in the hotel restaurant will matter more. Consider asking students to write down their top 3 criteria in evaluating a hotel experience. Then compare responses to demonstrate the challenges with a “wisdom of crowds” approach.

To fully benefit from the wisdom of the crowds visiting a particular hotel, one would need to read all of the reviews. Ask students how many reviews they would be willing to read before deciding to book a room in a particular hotel.

Some consumers might feel that “normal” travelers will not have a financial interest in giving a good or bad review and consumers may suspect that experts might be benefitting financially from their reviews.

(15 minutes, Chapter Objective 11-1, 11-4, & 11-5, AACSB: Application of Knowledge)

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Chapter 11: Group Influences and Social Media

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask each student to think about individual family members, friends, and acquaintances.

On paper, have them identify the people who act as opinion leaders, product innovators, and market mavens. Describe what each person does. Have a few students share their observations with the class.

Look for evidence that students can differentiate between opinion leaders (knowledgeable consumers who are frequently able to influence others’ attitudes or behaviors), product innovators (consumers who actively seek out the latest and greatest in a product category and are willing to take risks), and market mavens (individuals with a general interest in the marketplace). (20 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

2.

Have a student think about some goods and services that he/she has purchased recently.

To what extent did word-of-mouth communication influence purchases?

Word-of-mouth tends to be more credible than advertising. Students are more likely to rely on word-of-mouth and external search, in general, in high involvement purchase categories. Social risk may increase reliance on word-of-mouth. Negative word-of-mouth tends to be a larger consideration in purchase decisions than positive word-of-mouth. (10 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking)

3.

Encourage a student to think of something he/she recently purchased in which advice was actively sought from others. For what reasons was advice sought? Why was the particular person selected to provide this advice?

Students are likely to note advice was sought for a high involvement product, which usually motivates more active external search. Advice is typically sought from individuals with knowledge/expertise in the product category. (15 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking)

4.

Have each student identify one case of guerrilla marketing. It should be the objective to find a case where the maximum amount of promotional benefit was achieved with the least amount of resources. They should attempt to find information that will allow for estimates of these figures. Upon sharing cases with the class, keep track to determine the most effective campaign, based on this ROI-type measure.

It is often challenging to find credible measures of the impact of guerrilla marketing efforts because of the nature of the interactions. Discuss the fact that some companies may inflate these numbers to make their services seem more attractive to marketers. Also, note the difference between exposure to an individual and exposure to an individual in

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the marketer’s target audience. (20 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking) Group Projects 1.

Each student group will have the task of forming or joining a brand community. Have them decide upon a brand that none of them really uses. Then, have them research the brand extensively and begin their own pro-product dialogue among themselves. If they wish to establish an online chat room or message board, that would be all the better. After having done this for a set period, have group members discuss how they feel about the brand. Whether they have purchased or not, do they feel more “loyal”? Have they developed positive attitudes? Do they find themselves engaging in WOM outside the group?

Students should select a product they use, have an interest in, and are passionate about, if possible. Look for students to connect with the ideas in the figure (e.g. social networking, community engagement, impression management, and brand use). (90 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking)

2.

Have the students videotape interviews with three individuals regarding a product they recently purchased for the first time. Why did they purchase it? What was the role of “word of mouth” and personal influence (whether real or simulated)? The group should edit the tape to present a summary illustration of their findings.

As in the individual project, interviewees are likely to note advice was sought for a high involvement product, which usually motivates more active external search. Advice is typically sought from individuals with knowledge/expertise in the product category. (60 minutes, Chapter Objective 11-1, AACSB: Reflective Thinking)

3.

Describe how opinion leaders can be formed and found on the Internet. Describe the advantages and disadvantages of using opinion leaders on the Web. How would this form of opinion leadership be different from any other form of opinion leadership (if at all)?

Opinion leaders can be formed via the Internet because of the availability of product information to be synthesized and the ability to connect with a large number of individuals. Opinion leaders might be found in top organic search results, by having a high circle of trust/positive feedback from other users, or having many followers. They may be less likely to be similar to the consumer in terms of values and beliefs. (30 minutes, Chapter Objective 11-5, AACSB: Analytical Thinking)

4.

Have student groups do an analysis of a rumor that was started about a product or company (e.g., a human finger found in a can of Pepsi, the “Satanic” connection in Procter & Gamble’s moon-and-stars logo; Pop Rocks candy will make your stomach explode; McDonald’s puts worms in its hamburgers; there are spider eggs in Bubble Yum, etc.). What effect did these rumors have on sales? How did the company handle the situation? .

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Chapter 11: Group Influences and Social Media

Look for students to include research on the rumor/to include outside sources in their assignment. You can extend this assignment by asking the student to suggest an alternative response strategy for the company. (60 minutes, Chapter Objective 11-2, AACSB: Reflective Thinking) 5.

Have a group prepare a sociometric analysis of online grocery shoppers. How is this group different and similar to in-store shoppers?

Sociometric analysis would show whether the individuals refer others or influence others’ purchase decision online. They could be compared to off-line shoppers. (90 minutes, Chapter Objective 11-2, AACSB: Analytical Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.hairclub.com. One of the great problems facing men in our day and age is the prospect of going bald. How does the Hair Club for Men play to male fears? How do they use opinion leaders to persuade prospective customers to try their products? What do you think of the organization’s promotional campaigns? Explain.

The Hair Club shows successful clients receiving positive reinforcement for their new looks, including the Hair Club’s president. Encourage students to think about the ethics of indicating that bald = ugly and hair = happy, successful, and attractive. (30 minutes, Chapter Objective 11-5, AACSB: Reflective Thinking)

Group Assignments 1.

Visit a few fraternity or sorority websites and evaluate how they try to influence their current and potential brothers and sisters. Talk to students who are members and those that are not associated with them. Determine if their group influences are effective or not based on your assessments of the two groups – members and non-members.

Students should have observations from the public communications on the web sites, from members, and from non-members. Look for students to support their conclusions about the effectiveness of the group influences from these three sets of observations. (60 minutes, Chapter Objective 11-4, AACSB: Analytical Thinking)

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Chapter 12: Income and Social Class

Chapter 12: INCOME AND SOCIAL CLASS

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 12-1.

Our confidence in our future, as well as in the overall economy, determines how freely we spend and the types of products we buy.

12-2.

We group consumers into social classes that say a lot about where they stand in society.

12-3.

Individuals’ desires to make a statement about their social class, or the class to which they hope to belong, influence the products they like and dislike.

CHAPTER SUMMARY Our confidence in our future, as well as in the overall economy, determines how freely we spend and the types of products we buy.

The field of behavioral economics studies how consumers decide what to do with their money.

Consumer confidence—the state of mind consumers have about their own personal situation, as well as their feelings about their overall economic prospects—helps to determine whether they will purchase goods and services, take on debt, or save their money.

We group consumers into social classes that say a lot about where they stand in society.

A consumer’s social class refers to his or her standing in society. Factors including education, occupation, and income determine the class to which we belong. Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources. This social stratification creates a status hierarchy in which consumers prefer some goods to others.

Although income is an important indicator of social class, the relationship is far from perfect.

Factors such as place of residence, cultural interests, and worldview also determine social class.

As income distributions change around the world, it is getting more difficult to distinguish among members of social classes; many products succeed because they appeal to a newly emerging group that marketers call the mass class (people with incomes high enough to purchase luxury items, at least on a small scale).

Individuals’ desires to make a statement about their social class, or the class to which they hope to belong, influence the products they like and dislike.

Conspicuous consumption, when a person flaunts his status by deliberately using up valuable resources, is one way to “buy up” to a higher social class. Nouveau riches, whose relatively recent acquisition of income rather than ancestry or breeding accounts for their enhanced social .

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mobility, are the most likely to do this. We use status symbols (usually scarce goods or services) to communicate our standing to others. Parody display occurs when we seek status by deliberately avoiding fashionable products.

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Discretionary Income,’ ‘Consumer Confidence,’ ‘Savings Rate’ Here I.

Income and Customer Identity A. To Spend or Not to Spend, That is the Question Consumer demand for goods and services depends on both our ability and our willingness to buy. Although demand for necessities tends to be stable over time, we postpone or eliminate other expenditures if we don’t feel that now is a good time to spend money.

Discretionary income is the money available to a household over and above what it requires to have a comfortable standard of living.

Tightwads are those who hate to part with even a penny (and who actually experience emotional pain when they hand over their cash) and spendthrifts are those who enjoy nothing more than buying everything in sight. i. Consumer Confidence Consumer confidence reflects how optimistic or pessimistic people are about the future health of the economy and how they predict they’ll fare down the road.

A range of factors influence the overall savings rate including individual consumers’ pessimism or optimism about their personal circumstances, such as a sudden increase in personal wealth as the result of an inheritance and global events such as the Great Recession.

Use Key Term ‘One Percenter,’ ‘Income Inequality,’ ‘Plutonomy,’ ‘CEO Pay Ratio,’ ‘Social Mobility,’ ‘Frugalistas’ Here Use Review Question 12-2, 12-3 Here ii. Income Inequality and Social Mobility The 80 richest people in the world are worth $1.9 trillion. This is about the same amount shared by the 3.5 billion people who are in the bottom half of the world’s income.

One Percenter is a term used to describe the top 1 percent of income in the US. The wealthiest 160,000 U.S. families have as much we as the 12-2

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Chapter 12: Income and Social Class

poorest 145 million families. The wealthiest 1 percent of Americans control around 20 percent of the national income.

Income inequality is the extent to which resources are distributed unevenly within a population.

The term plutonomy describes an economy that’s driven by a fairly small number of rich people. One indicator of income inequality is the CEO pay ratio, which compares the salary of a company’s chief executive to the earnings of a typical employee.

Social mobility refers to the passage of individuals from one social class to another.

Horizontal mobility occurs when a person moves from one position to another that’s roughly equivalent in social status. Downward mobility occurs when displaced workers go on welfare rolls or join the ranks of the homeless. iii. The Great Recession and Materialism The Great Recession officially lasted from December 2007 to June 2009.

During this period we witnessed the largest drop in employment since the Great Depression.

Many fashionistas turned into frugalistas—they refuse to sacrifice style, but they achieve it on a budget.

Use Key Term ‘Female-to-Male Earnings Ratio,’ ‘College Wage Premium,’ ‘Nouveau Riche,’ ‘Bottom of the Pyramid’ Here Use Review Question 12-6, 12-8 Here B. Income-Based Marketing Two factors contribute to an (overall) upward income trajectory: a shift in women’s roles and increases in educational attainment: 1.

Mothers with preschool children are the fastest-growing segment of working people. The female-to-male earnings ratio is 0.78, which means that on average a woman earns 78 cents for every dollar a man brings home.

2.

The college wage premium, which describes the gap between what workers with a college degree earn compared with those without one, has grown dramatically. i. Targeting the Top of the Pyramid: High-Income Consumers SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury: .

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1.

2.

3.

Luxury is functional—These consumers use their money to buy things that will last and have enduring value.

Luxury is a reward—These consumers use luxury goods to say, “I’ve made it.”

Luxury is indulgence—To these consumers, the purpose of owning luxury is to be extremely lavish and self-indulgent.

Old money families (e.g., the Rockefellers, DuPonts, Fords, and others) live primarily on inherited funds.

The label nouveau riche describes consumers who recently achieved their wealth and who don’t have the benefit of years of training to learn how to spend it. ii. Targeting the Bottom of the Pyramid: Low-Income Consumers The vast numbers of low-income consumers are referred to as the bottom of the pyramid. (Figure 12.1) Use Chapter Objective 2 Here Use Key Term ‘Dominance-Submission Hierarchy,’ ‘Social Class,’ ‘Homogamy’ Here Use Review Question 12-1, 12-15 Here Use Consumer Behavior Challenge 12-27 Here II.

Social Class and Consumer Identity Members of every society divide into the “haves” and the “have-nots.”

The sociologist Warner proposed the most influential classification of U.S. class structure in 1941. Warner identified six social classes: 1. Upper Upper 2. Lower Upper 3. Upper Middle 4. Lower Middle 5. Upper Lower 6. Lower Lower A. Pick a Pecking Order In many animal species (including humans), a social organization develops whereby the most assertive or aggressive animals exert control over the others.

This is known as the dominance-submission hierarchy.

The term social class is used to describe the overall rank of people in a society.

People who belong to the same social class have approximately equal social standing in the community.

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Chapter 12: Income and Social Class

We tend to marry people in a social class similar to our own, a tendency call homogamy or assortative mating. More than 90 percent of married high school dropouts marry someone who also dropped out or who has only a high school diploma.

Use Key Term ‘Social Stratification,’ ‘Status Hierarchy,’ ‘Occupational Prestige,’ ‘Worldview,’ ‘Affluenza,’ ‘Cosmopolitian’ Here Use Review Question 12-4, 12-5 Here i. Social Stratification The process of social stratification refers to those processes in a social system by which scarce resources are distributed unequally to status positions that become permanently ranked in terms of the share of valuable resources each receives.

Most groups exhibit a structure, or status hierarchy in which some members are better off than others.

A system which defines people by what they do for a living is called occupational prestige and is one way we evaluate their “worth.”

A worldview is another way to differentiate among social classes.

Many well-off consumers seem to be stressed or unhappy despite or even because of their wealth, a condition called affluenza.

A cosmopolitan as someone who tries to be open to the world and who strives for diverse experiences. ii. Income versus Social Class Although we equate money with social class, they are by no means synonymous. Additional income does not necessarily propel someone to a higher class.

Use Key Term ‘Status Crystallization’ Here Use Review Question 12-7, 12-9, 12-11 Here B. How Do We Measure Social Class?

Social scientists use the concept of status crystallization to assess the impact of social class inconsistency.

A problem occurs when a person’s social-class standing creates expectations that he or she can’t meet. Overprivileged consumers are defined as those who earn an income that is at least 25 to 30 percent greater than the median for their class.

Underprivileged consumers, who earn at least 15 percent less than the median, .

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must often allocate a big chunk of their income to maintaining the impression that they occupy a certain status.

Use Chapter Objective 3 Here Use Key Term ‘Habitus,’ ‘Status Symbols,’ ‘Taste Culture,’ ‘Codes,’ ‘Restricted Codes,’ ‘Elaborated Codes’ Here Use Review Question 12-10 Here Use Consumer Behavior Challenge 12-21, 12-22, 12-23, 12-28 Here III.

Status Symbols and Social Capital A. Status Symbols Status symbols term describes possessions (or the use of services) that communicate wealth or prestige to others.

B. “What Do You Use That Fork For?” Taste Cultures and Codes A taste culture describes consumers in terms of their aesthetic and intellectual preferences. (Figure 12.2) Another approach to social class focuses on the codes (the ways consumers express and interpret meanings) people within different social strata use.

These two ways to communicate product benefits incorporate different types of codes. Restricted codes focus on the content of objects, not on relationships among objects. Elaborated codes, in contrast, are more complex and depend on a more sophisticated worldview.

Use Key Term ‘Glamping,’ ‘Social Capital,’ ‘Cultural Capital,’ ‘Reputation Economy,’ ‘Online Gated Communities’ Here Use Review Question 12-12, 12-13 Here Use Consumer Behavior Challenge 12-29 Here i. Social and Cultural Capital The term glamping refers to luxury “camping” in which participants use luxury RVs and create private enclaves accessible only to them.

Social capital: Exclusivity functions like a big, beefy nightclub bouncer who decides who he will admit past the velvet rope. An important form of “currency” is access to exclusive networks where business and political deals happen.

On the other hand, cultural capital is a term refers to a set of distinctive and socially rare tastes and practices—knowledge of “refined” behavior that admits a person into the realm of the upper class.

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Chapter 12: Income and Social Class

ii. Online Social Capital When you’re online, it’s not so much what you own as what you post or how you post it that raises or lowers your status among your network.

The “psychic income” we get when we post reviews that others validate creates a reputation economy, in which the “currency” people earn is approval rather than cold hard cash.

Like exclusive country clubs, online gated communities that selectively allow access to some people may offer a high degree of social capital to the lucky few who pass the test.

Use Key Term ‘BRIC Nations,’ ‘Mass Class’ Here Use Review Question 12-14 Here C. Social Classes Around the World Rising incomes in many economically developing countries, such as South Korea and China, coupled with decreasing prices for quality consumer goods and services, create explosive demand for luxury products or at least “affordable” versions of these goods.

The biggest emerging markets go by the acronym BRIC nations: Brazil, Russia, India, and China (and more recently South Africa).

Mass class is a term that describes the hundreds of millions of global consumers who now enjoy a level of purchasing power that’s sufficient to let them afford high-quality products—except for big-ticket items such as college educations, housing, or luxury cars. i. China An economic boom is creating a middle class of more than 130 million people that analysts project will grow to more than 400 million in 10 years. ii. Japan Japan is a highly brand-conscious society where upscale, designer labels are incredibly popular. iii. The Middle East A major expansion of Western luxury brands is underway across the Middle East, home to some of the fashion industry’s best customers. iv. The United Kingdom

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Section 4: Consumers in Their Social and Cultural Settings

England is an extremely class-conscious country, and, at least until recently, inherited position and family background largely predetermined consumption patterns. v. India India’s economy is booming despite the global recession, and affluent consumers prize higher-end global brands—even though nearly half of India’s population lives on less than $1.25 a day. vi. Brazil Showing off wealth is an important part of Brazilian culture because these displays command respect.

Use Key Term ‘Invidious Distinction,’ ‘Conspicuous Consumption,’ ‘Leisure Class,’ ‘Trophy Wives,’ ‘Cougars’ Here Use Review Question 12-19 Here D. Status Signaling The rise of a mass class market means that many luxury products have gone down-market.

We buy things to create invidious distinction; this means that we use them to inspire envy in others through our display of wealth or power. The term conspicuous consumption refers to people’s desires to provide prominent visible evidence of their ability to afford luxury goods.

The phenomenon of conspicuous consumption is most evident among the leisure class; people for whom productive work is taboo.

Trophy wives are defined as “decorative” wifes that rich men shower with expensive clothes, large homes and a life of leisure as a way to advertise their own wealth.

Cougars are defined as older women who date younger men. Surveys estimate that about one-third of women older than age 40 date younger men.

Consumers engage in conspicuous consumption as a way to display status markers, yet the prominence of these markers varies from products with large recognizable emblems to those with no logo at all. These differences are labeled brand prominence.

High status brands (e.g., Louis Vuitton, Gucci) vary in terms of how blatant their status appeals (e.g., prominent logos) are in advertisements and on the products themselves—or in other words, in the type of status signaling they employ.

(Figure 12.3) 12-8

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Chapter 12: Income and Social Class

The form of conspicuous consumption termed parody display deliberately avoids status symbols.

Use Key Term ‘Brand Prominence,’ ‘Status Signaling,’ ‘Parody Display’ Here Use Review Question 12-16, 12-17, 12-18 Here Use Consumer Behavior Challenge 12-20, 12-24, 12-25, 12-26 Here

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

Marketing Pitfall A person’s credit score based on outstanding debt has become a symbol of a person’s worth. Credit scores are considered in hiring decisions, dating, and loans.

2.

Marketing Opportunity The appeal of living in urban environments continues to grow, causing housing prices in many cities to skyrocket. Micro-loft are economical and ecofriendly alternatives to more costly housing.

3.

The Tangled Web The digital dived between the rich and poor is still a reality. People who don’t have access to the internet can be at a real disadvantage.

4.

Marketing Opportunity What connotes status changes over time and differs among types of consumers. This means marketers need to be very vigilant about keeping up with these changes.

5.

Marketing Pitfall In China, the quality of life has improved dramatically for many. In the past, people were fairly equal, and the ratio of males to females was about even. Today, incomes are higher, and more women are postponing marriage to pursue careers. The one child policy has resulted in as many as 24 million unmarried men.

6.

Marketing Pitfall Research shows that people who identify with a relatively low-status category desire objectives they associate with high status to enhance social standing. However, this policy works against them in the long run.

7.

Marketing Pitfall Luxury goods serve as status symbols, but counterfeit products threaten to diminish their value.

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Section 4: Consumers in Their Social and Cultural Settings

REVIEW QUESTIONS 12-1. How have women contributed to the overall rise in income in our society?

One reason for this increase in income is that there also have been a larger proportion of people of working age participating in the labor force. Mothers with preschool children are the fastest-growing segment of working people. Furthermore, many of these jobs are in high-paying occupations such as medicine and architecture that used to be dominated by men. Although women are still a minority in most professional occupations, their ranks continue to swell. The steady increase in the numbers of working women is a primary cause of the rapid growth of middle- and upper-income families. There are now more than 18 million married couples making over $50,000 a year. However, in almost two-thirds of these families, the wife’s paycheck is propelling the couple up the income ladder. (5 minutes, Chapter Objective 12-1, AACSB: Reflective Thinking) 12-2. Define discretionary income.

Discretionary income is the money available to a household over and above that required for a comfortable standard of living. (5 minutes, Chapter Objective 12-1, AACSB: Application of Knowledge) 12-3. How does consumer confidence influence consumer behavior?

Consumers’ beliefs about what the future holds are an indicator of consumer confidence that reflects the extent to which people are optimistic or pessimistic about the future health of the economy and how they will fare down the road. These beliefs influence how much money they will pump into the economy when making discretionary purchases. (5 minutes, Chapter Objective 12-1, AACSB: Application of Knowledge) 12-4. What is a pecking order?

In many animal species, a social organization develops whereby the most assertive or aggressive animals exert control over the others and have the first pick of food, living space, and even mating partners. Chickens, for example, develop a clearly defined dominance–submission hierarchy. Within this hierarchy, each hen has a position in which she is submissive to all of the hens above her and dominates all of the ones below her (hence, the origin of the term pecking order). People are not much different. They also develop a pecking order that ranks them in terms of their relative standing in society. This standing determines their access to such resources as education, housing, and consumer goods. People try to improve their ranking by moving up in the social order whenever possible. This desire to improve one’s lot in life, and often to let others know that one has done so, is at the core of many marketing strategies.

(10 minutes, Chapter Objective 12-2, AACSB: Application of Knowledge)

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Chapter 12: Income and Social Class

12-5. What is social class? Is it different from income? If so, how?

We use the term social class more generally to describe the overall rank of people in a society. People who are grouped within the same social class are approximately equal in terms of their social standing in the community. They work in roughly similar occupations, and they tend to have similar lifestyles by virtue of their income levels and common tastes. These people tend to socialize with one another and share many ideas and values regarding the way life should be lived. Indeed, “birds of a feather do flock together.” (10 minutes, Chapter Objective 12-2, AACSB: Application of Knowledge) 12-6. Define social mobility and describe the different forms it takes.

In some societies, such as India, one’s social class is very difficult to change, but America is reputed to be a country in which “any man (or woman?) can grow up to be president.” Social mobility refers to the “passage of individuals from one social class to another.” Social mobility can be upward or downward. (10 minutes, Chapter Objective 12-2, AACSB: Application of Knowledge) 12-7. What one variable is the best indicator of social class? What are some other important indicators?

When we think about a person’s social class, there are a number of pieces of information we may consider. Two major ones are occupation and income. A third important factor is educational attainment that is strongly related to income and occupation. (5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-8. What is income inequality, and why is it a problem?

Today one of the biggest issues we hear about is income inequality, that is, the extent to which resources are distributed unevenly within a population. One consequence of rising inequality is that more consumers worry about “falling behind” if a breadwinner loses his or her job or if the family can no longer afford the cost of housing, transportation, and other necessities. For example, a researcher who conducted an in-depth study of residents of a rural trailer park identified one segment of consumers she called the Reluctant Emigrants. These people once lived in fixed-site homes but various economic problems forced them to move to the more affordable trailer park. Because their lives are on a downward trajectory, their primary concerns focus on security and protection. (5 minutes, Chapter Objective 12-1, AACSB: Reflective Thinking) 12-9. Why might a person’s social class not change when he or she earns more money?

One problem is that even if a family increases household income by adding wage earners, each additional job is likely to be of lower status. A homemaker who gets a parttime job is not as likely to get one that is of equal or greater status than the primary wage earner’s full-time job. In addition, the extra money earned is often not pooled toward the common good of the family. Instead, the individual uses it for his own personal spending. .

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Section 4: Consumers in Their Social and Cultural Settings

More money does not then result in increased status or changes in consumption patterns because it tends to be devoted to buying more of the usual rather than upgrading to higher-status products. (10 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-10. What are some of the problems we encounter when we try to measure social class?

One reason is that most measures of social class were designed to accommodate the traditional nuclear family, with a male wage earner in the middle of his career and a female full-time homemaker. Such measures have trouble accounting for two-income families, young singles living alone, or households headed by women, who are so prevalent in today’s society. Another problem with measuring social class is the increasing anonymity of our society. Earlier studies relied on the reputational method, in which extensive interviewing was done within a community to determine the reputations and backgrounds of individuals. This information, coupled with the tracing of interaction patterns among people, provided a very comprehensive view of social standing within a community. However, this approach is virtually impossible to implement in most communities today. One compromise is to interview individuals to obtain demographic data and to combine these data with the subjective impressions of the interviewer regarding the person’s possessions and standard of living. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-11. How do the worldviews of blue-collar and white-collar consumers tend to differ?

Although they would like to have more in the way of material goods, working-class people do not necessarily envy those who rank above them in social standing. They may not view the maintenance of a high-status lifestyle as worth the effort. As one blue-collar consumer commented, “Life is very hectic for those people. There are more breakdowns and alcoholism. It must be very hard to sustain the status, the clothes, and the parties that are expected. I don’t think I’d want to take their place.” (10 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-12. What is a taste culture?

A taste culture differentiates people in terms of their aesthetic and intellectual preferences. This concept helps to illuminate the important yet sometimes subtle distinctions in consumption choices among the social classes. (5 minutes, Chapter Objective 12-3, AACSB: Application of Knowledge) 12-13. Describe the difference between a restricted and an elaborated code. Give an example of each.

Restricted codes are dominant among the working class, whereas the middle and upper classes tend to use elaborated codes. Restricted codes focus on the content of objects, not on relationships among objects. Elaborated codes, in contrast, are more complex and depend on a more sophisticated worldview. These code differences extend to the way .

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Chapter 12: Income and Social Class

consumers approach basic concepts such as time, social relationships, and objects. (10 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-14. What is cultural capital, and why is enrolling in an etiquette class a way to accumulate it?

This refers to a set of distinctive and socially rare tastes and practices—knowledge of “refined” behavior that admits a person into the realm of the upper class. The elite in a society collect a set of skills that enable them to hold positions of power and authority, and they pass these on to their children (such as etiquette lessons and debutante balls).

These resources gain in value because access to them is restricted. That is part of the reason why people compete so fiercely for admission to elite colleges. Much as we hate to admit it, the rich are different. (10 minutes, Chapter Objective 12-3, AACSB: Application of Knowledge) 12-15. How do you differentiate between “old money” versus “nouveau riche” consumers?

We call consumers who have achieved extreme wealth and have relatively recently become members of upper social classes the nouveau riches, a term that many people use in a derogatory manner to describe newcomers to the world of wealth. (5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-16. What roles do status symbols play in purchase decisions?

We tend to evaluate ourselves, our professional accomplishments, our appearance, and our material well-being relative to others. Often it’s not enough just to have wealth or fame; what matters is that you have more of it than others. A major motivation to buy is not to enjoy these items but rather to let others know that we can afford them. These products are status symbols. The popular bumper-sticker slogan, “He who dies with the most toys, wins,” summarizes the desire to accumulate these badges of achievement.

Status-seeking is a significant source of motivation to procure appropriate products and services that we hope will let others know we’ve “made it.” A study demonstrated how people turn to status symbols to prop up their self-concepts, especially when they feel badly or uncertain about other aspects of their lives. Rising incomes in man economically developing countries, such as South Korea and China, coupled with decreasing prices for quality consumer goods and services, create explosive demand for luxury products or at least “affordable” versions of these goods. This change fuels demand for mass-consumed products that still offer some degree of panache. Companies such as H&M, Zara, EasyJet, and L’Oréal provide creature comforts to a consumer segment that analysts label mass class. This term describes the hundreds of millions of global consumers who now enjoy a level of purchasing power that’s sufficient to let them afford high-quality products—except for big-ticket items such as college educations, housing, or luxury cars.

(5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

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Section 4: Consumers in Their Social and Cultural Settings

12-17. What is conspicuous consumption? Give a current example.

Conspicuous consumption refers to people’s desire to provide prominent visible evidence of their ability to afford luxury goods. (5 minutes, Chapter Objective 12-3, AACSB: Application of Knowledge) 12-18. What is a current example of parody display?

As the competition to accumulate status symbols escalates, sometimes the best tactic is to switch gears and go in reverse. One way to do this is to deliberately avoid status symbols—that is, to seek status by mocking it. Social scientists call this sophisticated form of conspicuous consumption parody display. Hence, the popularity of old, ripped blue jeans, and “utility” vehicles such as Jeeps among the upper classes. (5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-19. Describe what we men by the term mass class and summarize what causes this phenomenon.

Mass class describes the hundreds of millions of global consumers who now enjoy a level of purchasing power that’s sufficient to let them afford high-quality products—except for big-ticket items such as college educations, housing, or luxury cars. A lot of “affordable luxuries” now are within reach of many consumers who could not have acquired them in the past. Rising incomes in many economically developing countries, such as South Korea and China, coupled with decreasing prices for quality consumer goods and services, create explosive demand for luxury products or at least “affordable” versions of these goods. (5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE DISCUSS 12-20. Sears, JC Penney, and Walmart tried hard in recent years to upgrade their images and appeal to higher-class consumers. How successful have these efforts been? Do you believe this strategy is wise?

JC Penney has not been very successful in changing its image. Because consumers have always thought of stores like JC Penney, Sears, and Walmart as discount or low-price stores, it is likely that these stores will have difficulty changing their images among the public. Attempting to change a store’s image when consumers have a strong perception of the store’s image—and one that is largely inconsistent with the proposed image—can be a very risky strategy. As in the case of JC Penney, retailers run the risk of alienating a significant group of loyal consumers with these attempts. (15 minutes, Chapter Objective 12-3, AACSB: Analytic Skills) 12-21. What are some of the obstacles to measuring social class in today’s society? Discuss some ways to get around these obstacles. .

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Chapter 12: Income and Social Class

Some of the obstacles in measuring social class in today’s society are changes in family structure, anonymity, and status inconsistency. One way to get around obstacles is to obtain demographic data and combine the data with the interviewer’s subjective impressions of the individual’s standard of living and possessions. Interviewers should be adequately trained. Researchers should attempt to cross-validate data with multiple judges. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking 12-22. What consumption differences might you expect to observe between families characterized as underprivileged versus those whose income is average for its social class?

An example of the consumption differences one might expect to observe between a family characterized as underprivileged versus one whose income is average for its social class include the brands of clothing worn, the types of cars driven, types of vacations (flying versus driving, hotels versus camping), and vacation destinations (local state park versus Hawaii). Students likely will identify a number of factors in their own lives that distinguish them as members of the “middle” class. Underprivileged people tend to spend more to look like they belong in a social class. Ask students if they have a tendency to overestimate the class they are in. Why would they do this? (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-23. How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, and so on.) to determine social standing?

As discussed in the text, people are assigned to social classes by virtue of their social standing in the community. People are grouped according to their occupation, lifestyle, ideas and values, and income. Consumption cues that may be used to determine people’s social standing include their cars, homes, clothing, speech, and types of people with whom they socialize. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-24. In today’s economy, it has become somewhat vulgar to flaunt your money – if you have any left. Do you think this means that status symbols like luxury products are passé? Why or why not?

This will be an interesting debate among students. They may agree that luxury can be consumed in tasteful ways. The absence of a conspicuous brand on luxury items is one way around this concern. Luxury products are becoming more popular in China and some Arab countries. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-25. Thorstein Veblen argued that men used women as “trophy wives” to display their wealth.

Is this argument still valid today?

Student responses will vary based on their opinion of trophy wives. To Veblen, wives are an economic resource. He criticized the “decorative” role of women, as rich men .

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Section 4: Consumers in Their Social and Cultural Settings

showered them with expensive clothes, pretentious homes, and a life of leisure as a way to advertise their own wealth. Today we refer to these women as trophy wives. In recent years the tables have turned as older women—who increasingly boast the same incomes and social capital as their male peers—seek out younger men as arm candy. These socalled cougars are everywhere; surveys estimate that about one-third of women older than age 40 date younger men. (5 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-26. Research suggests that social class influences how much compassion people show to others who need help. For example, one study reported that luxury car drivers were more likely to cut off other motorists instead of waiting for their turn at the intersection.

Another showed that less-affluent people are more likely to agree with such statements as, “I often notice people who need help,” and “It’s important to take care of people who are vulnerable.” Other studies have demonstrated that upper-class people are not as good at recognizing others’ emotions. One explanation is that more resources provide a sense of independence; the less we have to rely on others, the less we care about their feelings.

Do you agree that wealthy people are less caring? Why or why not?

Student responses will vary. One approach to social class focuses on the codes (the ways consumers express and interpret meanings) people within different social strata use.

Restricted codes focus on the content of objects, not on relationships among objects.

Elaborated codes, in contrast, are more complex and depend on a more sophisticated worldview. These code differences extend to the way consumers approach basic concepts such as time, social relationships, and objects. (5 minutes, Chapter Objective 12-3, AACSB: Ethical Understanding and Reasoning)

12-27. This chapter observes that some marketers find “greener pastures” when they target lowincome people. How ethical is it to single out consumers who cannot afford to waste their precious resources on discretionary items? Under what circumstances should we encourage or discourage this segmentation strategy?

Student responses will vary but should indicate an understanding of segmentation strategy and why marketers use it. There should also be an understanding of the 4 A’s of addressing low-income consumers and targeting the bottom of the pyramid. (10 minutes, Chapter Objective 12-1, AACSB: Ethical Understanding and Reasoning) APPLY 12-28. Compile a list of occupations and ask a sample of students in a variety of majors (both business and non-business) to rank the prestige of these jobs. Can you detect any differences in these rankings as a function of students’ majors?

The students should be encouraged to try this exercise with a variety of individuals, not just students in different majors. It would be interesting to see differences in perceptions of prestige due to gender, age, current occupation, level of education, etc. (Possible Field Project Idea) (30 minutes, Chapter Objective 12-2, AACSB: Analytic Skills) .

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Chapter 12: Income and Social Class

12-29. Compile a collection of ads that depict consumers of different social classes. What generalizations can you make about the reality of these ads and about the media in which they appear?

The instructor might review this exercise after students have completed it. The instructor might attempt to identify aspects of the advertisements that students used to classify consumers as members of different social classes. A discussion of how our attitudes and perceptions are influenced by stereotypical beliefs could then be used with the students’ own examples as evidence of stereotypical beliefs and their potentially negative consequences. (Possible Field Project Idea) (30 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) MyLab 12-30. Status symbols are products, such as Rolex watches or expensive sports cars, that we value because they show others how much money or prestige we have. Do you believe that your peer group values status symbols? Why or why not? If yes, what are the products that you think are status symbols for consumers your age? Do you agree with the assertion that a cell phone is a status symbol for many young people?

Status symbols are possessions we use to communicate wealth or prestige to others.

Today, cell phones are ubiquitous in our society. Possibly they type of cell phone today is a better status symbol than just the possession of a cell phone. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 12-31. As we continue to emerge from The Great Recession, many people live frugally; they cut back on visits to restaurants, buy fewer high-end clothes and other luxury goods, and hold onto their cars much longer. Are we witnessing a long-term shift in consumer behavior, or do you believe this is just a temporary situation?

Student responses will vary widely based upon their personal beliefs. (5 minutes, Chapter Objective 12-1, AACSB: Reflective Thinking)

CASE STUDY TEACHING NOTES Chapter 12 Case Study: Success at The Bottom of the Pyramid? Unilever & P&G Show It’s Possible Summary of Case Consumer behavior is influenced by internal and external factors. One of the external factors that sets real boundaries for consumers is their level of income. Some marketers refer to strategies directed at different income tiers as targeting certain levels of a pyramid. Marketing to the bottom of the pyramid (focusing on consumers with very limited financial means) provides a new market opportunity but also presents unique challenges.

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Section 4: Consumers in Their Social and Cultural Settings

Suggestions for Presentation This material can be used to illustrate how factors like target market income level can affect all parts of the marketing mix strategy.

Suggested Answers for Discussion Questions CS 12-1. Using the “4A’s” framework in Figure 12.1, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market.

The two areas Gillette primarily focused on were Affordability and Acceptability. The company looked for every opportunity to cut costs and used research to understand what the true needs were of their target market. The result was a stripped down single blade model. (10 minutes, Chapter Objective 12-2, AACSB: Application of Knowledge) CS 12-2. Are companies targeting the bottom of the pyramid taking advantage of vulnerable consumers with limited resources?

This question could lead to a good discussion about the ethics of product offerings targeted at any income class. Only a small percentage of consumer products would fulfill the strictest definition of “needs.” However, if a product is not harmful and if promotion is handled in a truthful and non-deceptive manner, the marketing of the product should not be considered unethical. There is a temptation to make judgments about how people with low incomes should spend their discretionary funds. Additional questions for discussion at this point might be: Who are we to decide who gets to enjoy using shampoo?

At what level of income is it OK to spend money on shampoo? (10 minutes, Chapter Objective 12-3, AACSB: Ethical Understanding and Reasoning) CS 12-3. More than half of U.S. workers earn less than $30,000 a year, barely above the poverty line for a family of five. What would you recommend to a company looking to target the bottom of the pyramid consumers in the United States?

Companies could use both Unilever’s and P&G’s India experience as a blueprint for reaching this market effectively. Consider asking students to choose a product in which poor people in some region of the U.S. might be interested and then discuss strategies that could be employed using the “4 A’s of Addressing Low Income Consumers.” (10 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

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Chapter 12: Income and Social Class

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students look for the parody display segments in town – for instance, the freegans, or the blue denim pants (Von Dutch) crowd. Talk to them and determine their rationale for their lifestyle and their opinions about other social classes.

When upper class individuals avoid brands this is called parody display. Students may find the reasons why interesting. However, it may be difficult to find parody display segments. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

2.

Have a student visit a high-end specialty store for a luxury good (i.e., Louis Vuitton, Coach, Burberry, etc.). Have them interview a sales associate or manager about the existence of the mass class segment. Can they identify the difference between upper-class people and middle- to lower-class people who buy the products? What are the noted differences? How prevalent are the mass culture members?

Students should find the first-hand experience of the sales associate interesting. The appeal to the mass class is likely to depend on the retailer. (30 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

3.

Conduct this as an in-class activity. Prepare a list of 15 occupations and distribute copies to the class. Ask each student to rank the occupations according to prestige. Compile the results (either during class, or after for the next class period). Discuss the results with the class. Are there consistencies? Why do these form? What implications do these perceptions have on consumer behavior?

This exercise relates to the information about occupational prestige. Different people are likely to have different responses to the occupations. Students should be encouraged to explore the root of these differences. (15 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

4.

Ask students to find at least two manufacturer’s ads for the same type of product (e.g., clothing, food product, personal care product, etc.) that they think are aimed at different social classes. How do these ads differ?

Look for students to relate the elements of the advertisement, including the social environment, the furnishings in the background, the colors used, etc. to other consumption behaviors of each social class. (20 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

5.

Ask a student to bring in an ad in which the brand being marketed was at one time a status symbol but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste, .

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Section 4: Consumers in Their Social and Cultural Settings

etc.). Have the student discuss whether the ad still attempts to create that perception.

What new product, if any, has replaced the featured product as a status symbol?

For a status symbol to distinguish a customer and show s/he has “made it,” it must be exclusive in some way. Cadillac, for example, hurt its image as a status symbol when it introduced lower priced models and offered inexpensive leases, making the brand more available to those with less money. That, coupled with the fact that it only retained appeal to an older audience that did not want the increasingly desirable foreign luxury cars, hurt its ability to continue to communicate status. (25 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 6.

Have a student interview one or more salespeople from one of the following product categories: new or used cars, stereo equipment, clothing, insurance, or real estate. Ask the student to determine the social classes or status of their customers. Does the student recommend that the sales approach will vary depending on the customer’s social class?

The chapter notes some of the differences in how social class members shop. The student’s recommendation may be based on the salesperson’s perceptions of these differences and the student’s evaluation of whether capitalizing on the differences is ethical. (45 minutes, Chapter Objective 12-3, AACSB: Ethical Understanding and Reasoning Abilities)

7.

What status symbols motivate you to purchase? Pick an example product and give an illustration.

Student responses will vary. Look for students to explain how owning the product or using the service differentiates them from those who do not own/use the product. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

8.

How can online marketers use social class in marketing efforts? Give examples of good and bad usage. Go online to do this if possible.

Students might compare sites that cater to the upper class (e.g. robbreport.com) to sites that cater to the middle class (e.g. parade.com). They also may compare retailers. Look for students to evaluate the marketing efforts critically in their responses. (45 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

9.

Ask students to compile a selection of recent ads that attempt to link consumption of a product with a specific lifestyle. In class, have students demonstrate what they have found. Discuss how the goal of linking product consumption to a lifestyle is usually accomplished.

There are plenty of brands that use sports sponsorships (e.g. tennis, golf, X-games) to associate with a specific lifestyle. Well-known spokespeople can also be used to create a link. (45 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

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Chapter 12: Income and Social Class

10.

Ask students to think of a specific lifestyle (your own, your parent’s, your aspirations, etc.) and then make a list of products and services that are linked in the consumer’s mind to that specific lifestyle. (Hint: You might decorate your living room, design a wardrobe, think of options for a car, etc.)

Student responses will vary. It may be helpful to narrow down the specific task, perhaps using the hints to select one area where the lifestyle might be reflected. (30 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

Group Projects 1.

Have student groups visit two sections of a community—one where residents are professionals and businesspeople and one where residents are mostly working class. Ask them to note how the homes vary in terms of color, architecture, and the general appearance of the lawn and landscape. Have them check the paper or call a realtor to find the general value of homes in the area. What types of stores are in the neighborhood and how are they promoted?

Look for students to identify characteristics of the homes and the retailers that serve the neighborhoods. Students may also use real estate tracking services like zillow.com in some markets to find out the value of homes in the different areas. (60 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

2.

Ask a group to classify the major retail stores (department and specialty stores) in your community according to their estimation of the social class of their target market. Have them explain how the marketing strategy is different for each of the stores profiled.

Look for students’ descriptions of social class to go beyond income and consider education and occupation. Students should relate the marketing strategy back to the information in the chapter about how members of different social classes shop. (20 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

3.

Ask students to make a list of slang terms that are used to disparage social classes. Why are these terms used? How do marketers disparage or make fun of social classes (which they do not target)? What is the best way to treat all classes with ethics and dignity?

Slang terms are most likely to apply to upper class and lower class categories. Students should recognize that marketer efforts to associate with one class often depend on their ability to differentiate the consumers who will use it from other social classes. Be sensitive to the fact that some of the slang may be offensive to some students. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

4.

Have your group designate which social class would most accurately describe each member’s current position. Where do the members expect to be in 5 years with respect to social class? What differences will occur if the anticipated movement in social class occurs? Discuss the changes in class. .

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Many people categorize themselves as middle class, which is one of the issues with selfdesignating social class. Some students may consider their own status and not the status of their parents. Many business students may aspire to be lower upper class in five years.

(25 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 5.

Assign groups of students to go to an airport (or other location where they will find lots of foot traffic) to people watch. Have them classify as many people as possible according to social class based on the appearance and behaviors of individuals. Have the class as a whole discuss their results. What lessons can be learned from this?

It will be challenging for consumers to determine social class based on the appearance of individuals. Further, some social classes are not likely to be represented at the airport.

Students may rely on status symbols and distinguish people based on behaviors, like whether they travel business class or first class. International airports will add another layer of complexity to trying to determine the social class of individuals since status symbols in other countries are different from those in the United States. (90 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

6.

Student groups should identify three examples of lifestyle marketing on the Internet.

Have members of the group demonstrate at least one of these sites in class. Show how the site uses lifestyles to the organization’s advantage.

Students should select websites that appeal to people with common leisure activities and discretionary spending habits. Many sites are aimed at a specific lifestyle so they can attract a certain type of advertiser. The exercise can also be done with blogs. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to www.burberry.com. How does this prestige fashion label use social class and status to sell its products? Comment on their approach. Does this approach make you want to buy such products? Explain.

Burberry.com uses a distinctive font, color scheme, and music, in addition to highly stylized photographs of its products. The products are not available to everyone because they use exclusive distribution and high price points. Student opinions about whether the products are desirable are likely to vary. (15 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

2.

Go to www.maxlang.com. How much would you pay for a belt for casual or business wear? How much does Max Lang charge? Is Max Lang selling belts or status? How can the Max Lang website overcome problems such as sizing and the desire to personally see prestige products? What do you think of the organization’s strategy?

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Chapter 12: Income and Social Class

Max Lang sells expensive belts and belt buckles, but the website design does not support the position of Max Lang belts as a status symbol. The website has a toll free number for support. The site may have to rely on reputation/word of mouth and online reviews in the absence of the ability to view the products. (15 minutes, Chapter Objective 12-3, AACSB: Reflective Thinking) 3.

Go to www.burtsbees.com. How does this site use lifestyle marketing to its advantage?

What lifestyle would be most associated with the products shown on this site? After reading the history of the founders, how were the founders able to project their own lifestyles into the products produced by the company? How could the company expand its sales into other lifestyle segments?

Burt’s Bees sells natural products. Its products are likely to appeal to people whom value natural products and the environment. Its founders include their story on the website and on the packaging for some of the products. Look for students to talk about expansion into other lifestyle segments in ways that does not alienate the current lifestyle segment.

(15 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking) Group Assignments 1.

Visit both www.macaronigrill.com and www.dennys.com. Have your group analyze the approaches that both of these websites have taken to appeal to their target markets. What elements and cues in these websites reflect the principles contained in this chapter on social status?

Both companies appeal to the masses, but Macaroni Grill appeals to a slightly higher social class. Denny’s tends to focus on the quantity of food at a low price point, while Macaroni Grill tends to focus on the quality of the food. The colors and layout used on each site are in line with their different positions. (20 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

2.

Visit http://www.strategicbusinessinsights.com/vals/presurvey.shtml and complete the VALS survey. Have your group discuss the questions posed to sort you into categories. Do the questions assess important attributes for marketers to understand consumer groups? What other information about lifestyle would you want to know?

Develop your own questionnaire.

Teams will have different answers but this is a good exercise for encouraging them to consider measurement of constructs as well as the needs of marketers for high-quality and insightful information. (20 minutes, Chapter Objective 12-2, AACSB: Reflective Thinking)

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Chapter 13: Subcultures

Chapter 13: SUBCULTURES

CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 13-1.

Consumer identity derives from “we” as well as “I.”

13-2.

Our memberships in ethnic, racial, and religious subcultures often guide our consumption choices.

13-3.

Marketers increasingly use religious and spiritual themes to talk to consumers.

13-4.

Our traditional notions about families are outdated.

13-5.

Birds of a feather flock together in place-based subcultures.

CHAPTER SUMMARY Consumer identity derives from “we” as well as “I.” Consumers identify with many groups that share common characteristics and identities, but some of these affiliations are more central to how we define ourselves. Subcultures are large groups that exist within a society, and membership in them often gives marketers a valuable clue about individuals’ consumption decisions. Important sources of consumer identity include gender, race/ethnicity, religion, age, and place of residence.

Our memberships in ethnic, racial, and religious subcultures often guide our consumption choices.

A person’s ethnic origins, racial identity, and religious background often are major components of his or her identity. African Americans, Hispanic Americans, and Asian Americans are the three most important ethnic/racial subcultures in the United States. Key issues to reach members of racial/ethnic subcultures are consumers’ degree of acculturation into mainstream U.S. society and the recognition of important cultural differences among subgroups (e.g., Puerto Ricans, Cubans, and Mexicans).

Marketers increasingly use religious and spiritual themes to talk to consumers.

The quest for spirituality influences demand in product categories, including books, music, and cinema. Although the impact of religious identification on consumer behavior is not clear, some differences among religious subcultures do emerge. Marketers need to consider the sensibilities of believers carefully when they use religious symbolism to appeal to members of different denominations. .

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Section 4: Consumers in Their Social and Cultural Settings

Our traditional notions about families are outdated.

We’ve seen that subcultural identities revolve around shared experiences and perspectives.

That’s why it’s so important for marketers to think about both when consumers are born and the family structure into which they’re born. Age groups and the family unit help to shape people’s experiences, needs, and preferences.

“Birds of a feather flock together.”

Geodemography refers to analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live to identify consumers who share common consumption patterns. Researchers base this approach on the common assumption that “birds of a feather flock together.” Marketers can increase the efficiency of their messages when they focus on the similarities among consumers who choose to live in the same place.

CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Subculture’ Here Use Review Question 13-1 Here I.

Ethic and Racial Subcultures A Subculture is a group whose members share significant beliefs and common preferences.

As of 2015, the majority of babies born in America are non-Caucasian. Over the next 45 years, the Bureau expects the Hispanic population to more than double; by 2060 almost one in three Americans will identify as Hispanic.

Use Chapter Objective 2 Here Use Key Term ‘High-Context Culture,’ ‘Low-Context Culture,’ ‘Acculturation,’ ‘Enculturation,’ ‘Acculturation Agents,’ ‘Progressive Learning Model,’ ‘Host Culture’ Here Use Review Question 13-2, 13-3 Here II.

Subcultural Stereotypes Many subcultures have powerful stereotypes the general public associates with them.

In these cases, outsiders assume that group members possess certain traits.

A. Ethnicity and Acculturation In a high-context culture, group members tend to be tightly knit, and they infer meanings that go beyond the spoken word. Symbols and gestures, rather than words, carry much of the weight of the message. .

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Chapter 13: Subcultures

In contrast, people who belong to a low-context culture are more literal.

Acculturation is the process of movement and adaptation to one country’s cultural environment by a person from another country. In contrast, enculturation is the process we each undergo to learn about our own native culture.

Many factors affect the nature of the transition process. Individual differences, such as whether the person speaks English, influence how rocky the adjustment will be.

The person’s contacts with acculturation agents—people and institutions that teach the ways of a culture—are also crucial. Some of these agents come from the culture of origin. Other agents come from the culture of immigration.

The progressive learning model assumes that people gradually learn a new culture as they increasingly come in contact with it.

We expect that when people acculturate, they will mix the practices of their original culture with those of their new or host culture

Use Key Term ‘Warming,’ ‘Ambicultural,’ ‘Deethnicization,’ ‘Hispanic’ Here Use Review Question 13-6, 13-7, 13-8 Here Use Consumer Behavior Challenge 13-39 Here Consumers who retain a strong ethnic identification differ from their more assimilated counterparts in these ways: • They have a more negative attitude toward business in general (probably caused by frustration because of relatively low income levels).

• They access more media that’s in their native language.

• They are more brand loyal.

• They are more likely to prefer brands with prestige labels.

• They are more likely to buy brands that specifically advertise to their ethnic group.

Warming is described as transforming objects and places into those that feel cozy, hospitable, and authentic.

Ambicultural is a feeling of not being distinctly home culture or host culture, but somewhere in between.

Deethnicization occurs when a product we link to a specific ethnic group detaches itself from its roots and appeals to other groups as well (ex. bagels).

B. The “Big Three” American Ethnic Subcultures .

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i. African Americans African Americans make up more than 13 percent of the U.S. population. ii. Hispanic American The 2010 Census reported a record 50 million Hispanics, or one in every six U.S. residents; this was a 42 percent increase from the 2000 Census.

Hispanics are now the nation’s second-largest consumer market after white non-Hispanics.

The umbrella term Hispanic describes people of many different backgrounds. Nearly 60 percent of Hispanic Americans are of Mexican descent. The next largest group, Puerto Ricans, make up just less than 10 percent of Hispanics. iii. Asian Americans Asian Americans have surpassed Hispanics as the fastest-growing racial group in the nation and have become the largest group of new immigrants to the United States.

The term Asian refers to 20 ethnic groups, with Chinese being the largest and Filipino and Japanese second and third, respectively.

Use Chapter Objective 3 Here Use Key Term ‘Spiritual-Therapeutic Model,’ ‘Halal’ Here Use Review Question 13-4, 13-5, 13-9 Here Use Consumer Behavior Challenge 13-19, 13-22, 13-33 Here III.

Religious Subcultures In recent years we’ve seen an explosion of religion and spirituality in popular culture.

Weight Watchers, the world’s largest support group for weight loss, follows a spiritual-therapeutic model even though it is a profitable business.

A. Organized Religion and Consumption Marketers have not studied organized religion extensively, possibly because many view it as a taboo subject.

B. Born Again Consumers Mainstream churches are marketing themselves aggressively these days. In the United States, there are approximately 1,600 and each serves 2,000 or more congregants per week.

In the United States, we trace most religious marketing activity to “born again” Christians, who follow literal interpretations of the Bible and acknowledge being born again through belief in Jesus. .

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C. Islamic Marketing Muslims will be more than one-quarter of the Earth’s population by 2030, and during that time period analysts expect the number of U.S. Muslims to more than double.

Mindful of the success of kosher certification, some Muslims recognize that halal foods (permissible under the laws of Islam) also may appeal to mainstream consumers.

Use Chapter Objective 4 Here Use Key Term ‘Fertility Rate,’ ‘Extended Family,’ ‘Nuclear Family,’ ‘Household’ Here Use Review Question 13-10 Here Use Consumer Behavior Challenge 13-21, 13-25, 13-26, 13-32 Here IV.

The Family Unit and Age Subcultures A. Family Structure Demographers define the fertility rate as the number of births per year per 1,000 women of childbearing age.

Worldwide, surveys show that many women want smaller families today.

Ironically, while populations boom in some underdeveloped parts of the world, industrialized countries face future crises because there will be relatively fewer young people to support their elders.

For population levels to remain constant, the fertility rate has to be 2.0 so that the two children can replace their parents.

The extended family used to be the most common family unit. It consists of three generations who live together, and it often includes grandparents, aunts, uncles, and cousins.

The nuclear family—a mother, a father, and one or more children—largely replaced the extended family, at least in U.S. society.

The U.S. Census Bureau regards any occupied housing unit as a household regardless of the relationships among the people who live there.

Use Key Term ‘Voluntarily Childless,’ ‘DINK,’ ‘Cohabitate,’ ‘Boomerang Kids,’ ‘Sandwich Generation,’ ‘Family Life Cycle (FLC)’ Here Use Review Question 13-11Here Use Consumer Behavior Challenge 13-28 Here The family unit continues to evolve and marketers need to challenge their cherished assumptions: • Nearly half of all women between the ages of 25 and 29 have never been .

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married, up from about a quarter of that age group in 1986.

The percentage of women of childbearing age who define themselves as voluntarily childless is on the rise.

DINKs (double income, no kids) couples are better educated on average than are two-income couples with children.

•

The likelihood of a woman following the traditional path of marriage and then a baby carriage is strongly influenced by social class The number of couples who cohabitate (live together without being married) rose from 2.9 million in 1996, to 7.8 million in 2012.

•

Circumstances such as divorce, the need for a breadwinner to live in a different place, and military service make it more common for family networks to be scattered geographically so family members need to work harder to maintain their connections with one another.

•

Children are more likely to live at home after graduating from college rather than taking their own places. (Known as boomerang kids.)

•

Many adults care for their own parents as well as for their children.

Middle-aged people are sometimes called the Sandwich Generation because they must support both the generation above them and the one below them.

The family life cycle (FLC) combines trends in income and family composition with the changes these demands place on this income.

Four variables describe social trends impacting the FLC: 1 Age 2 Marital status 3 The presence or absence of children in the home 4 The ages of children, if present.

Use Key Term ‘Age Cohort,’ ‘Material Parenting,’ ‘Parental Yielding’ Here Use Review Question 13-12, 13-13 Here Use Consumer Behavior Challenge 13-23, 13-24, 13-35, 13-36 Here

A. Age Cohort An age cohort consists of people of similar ages who have similar experiences. .

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Traditional age cohorts are: • The Interbellum Generation—People born at the beginning of the 20th century.

• The Silent Generation—People born between the two world wars.

• The War Baby Generation—People born during World War II. • The Baby Boom Generation—People born between 1946 and 1964.

• Generation X—People born between 1965 and 1985.

• Generation Y—People born between 1986 and 2002.

• Generation Z—People born 2003 and later. i. Children: Consumers-in-Training Disney estimates the North American baby market, including staples like formula, to be worth $36.3 billion annually.

Parents often reward their kids with products and punish them by taking things away. This is one form of material parenting.

Parental yielding occurs when a parental decision maker “surrenders” to a child’s request.

Use Key Term ‘Gen Z,’ ‘Gen Y,’ ‘Millennials,’ ‘Echo Boomers,’ ‘Connexity’ Here Use Review Question 13-14, 13-16 Here Use Consumer Behavior Challenge 13-34 Here

ii. Gen Y and Gen Z In 1956, the label teenager entered the general U.S. vocabulary.

Teenagers in every culture grapple with fundamental developmental issues when they transition from childhood to adult.

Four basic conflicts common to all teens: • Autonomy versus belonging • Rebellion versus conformity • Idealism versus pragmatism • Narcissism versus intimacy iii. Gen Z Gen Z describes kids who were born in the late 1990s to early 2000s, so the oldest are just entering college.

This is the first generation of the 21st century; 55 percent are Caucasian, 24 percent are Hispanic, 14 percent are African American, and 4 percent are Asian. .

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iv. Gen Y Gen Yers were born between 1986 and 2002. Also known as Millennials and Echo Boomers, this generation is hopeful about the future.

They make up nearly one-third of the U.S. population, and they spend $170 billion a year of their own and their parents’ money.

Their lifestyle of connexity is that of “jugglers” who value being both footloose and connected at the same time.

Three major forces have shaped their experience: 1.

Economy 2.

Globalization 3.

Social media Use Key Term ‘Gen X,’ ‘Baby Boomer,’ ‘Senior Market,’ Perceived Age,’ ‘Consumer Identity Renaissance’ Here Use Review Question 13-15 Here Use Consumer Behavior Challenge 13-29, 13-30, 13-38 Here v. Gen X The Gen X age subculture consists of 46 million Americans who were born between 1965 and 1985.

Some have called them “slackers” or “baby busters” because of their supposed alienation and laziness, vi. The Mature Market Today’s Mom isn’t exactly June Cleaver, the ideal mother depicted in the old TV show Leave it to Beaver. vii. Baby Boomers The Baby Boomer age subculture consists of people whose parents established families following the end of World War II and during the 1950s when the peacetime economy was strong and stable.

This generation is much more active and physically fit than its predecessors.

Demographers distinguish between two subgroups of Baby Boomers: “Leading-edge” boomers, born between 1946 and 1955, grew up during the Vietnam War and Civil Rights eras. “Trailing-edge” boomers, who were born between 1956 and 1964, came of age after Vietnam and the Watergate scandal.

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viii. Seniors People older than 60 are the fastest-growing age group on Earth.

In the United States, by 2030, 20 percent of the population will be over the age of 65.

The senior market control more than 50 percent of discretionary income, and their net worth is five times that of the average citizen.

Perceived age is how old a person feels.

Consumer identity renaissance refers to the redefinition process people undergo when they retire.

Use Chapter Objective 5 Here Use Key Term ‘Geodemography,’ ‘PRIZM’ Here Use Review Question 13-17 Here Use Consumer Behavior Challenge 13-18, 13-40 Here V.

Place-Based Subcultures Geodemography refers to analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live to identify consumers who share common consumption patterns.

The PRIZM system is one technique used to tailor marketing efforts to recognize these geographical differences.

Use Consumer Behavior Challenge 13-20, 13-31, 13-37 Here End-of-Chapter Support Material

SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity The pet industry has more than $40 billion in annual revenue, more than either the toy or candy industry. Almost one-third of all U.S. households have at least one pet.

2.

Marketing Opportunity Designer water for dogs? Yes! Make it a double. We treat our pets like family.

3.

The Tangled Web The Internet of Things gives parents a whole new set of options to entertain and monitor their kids. .

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4.

Marketing Pitfall Marketers push the limited when marketing to tweens. The average age at which women begin to use beauty products is 13, and one study found that 6 to 9 year olds use lipstick or lip gloss.

REVIEW QUESTIONS 13-1. What is a subculture?

Consumers’ lifestyles are affected by group memberships within the society-at-large. We call these groups subcultures, whose members share beliefs and common experiences that set them apart from others. Every consumer belongs to many subcultures. These memberships can be based on similarities in age, race or ethnic background, or place of residence. (5 minutes, Chapter Objective 13-1, AACSB: Reflective Thinking) 13-2. What is the difference between a high-context and a low-context culture? What is an example of this difference?

In a high-context culture, group members tend to be tightly knit, and they are likely to infer meanings that go beyond the spoken word. Symbols and gestures, rather than words, carry much of the weight of the message. In contrast, people in a low-context culture are more literal. (5 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-3. Why is it difficult to identify consumers in terms of their ethnic subculture membership?

The United States is heterogeneous, so it is difficult to separate subcultures from mainstream society. Further, many people identify with two or more races, refusing to describe themselves as only white, black, Asian, Korean, Samoan or one of the other categories listed. (5 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-4. What is deethnicization? Give an example.

Deethnicization refers to the process whereby a product formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures. An example is bagels, which used to be associated with the Jewish subculture. (5 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-5. Why are Hispanic American consumers attractive to marketers?

The Hispanic subculture is a sleeping giant that until recently many U.S. marketers largely ignored. The growth and increasing affluence of this group has now made it impossible to overlook, and major corporations avidly court Hispanic consumers.

Marketers especially like the fact that Hispanics tend to be brand loyal. Hispanics who .

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strongly identify with their ethnic origin are more likely to seek Hispanic vendors, to be loyal to brands used by family and friends, and to be influenced by Hispanic media. This segment is also highly concentrated geographically by country of origin, which makes them relatively easy to reach. (15 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-6. What is acculturation? How does it differ from enculturation?

Acculturation is the process of movement and adaptation to one country’s cultural environment by a person from another country. This is an important issue for marketers due to our increasingly global society. As people move from place to place, they may quickly assimilate to their new homes, or they may resist this blending process and choose to insulate themselves from the mainstream culture. Although some people feel uncomfortable with the notion that marketers should explicitly take into account people’s racial and ethnic differences when they formulate their strategies, the reality is that these subcultural memberships do shape many needs and wants. Research indicates, for example, that members of minority groups find an advertising spokesperson from their own group more trustworthy, and this enhanced credibility in turn translates into more positive brand attitudes. However, marketers need to avoid the temptation to paint all members of an ethnic or racial group with the same brush; not only are these generalizations inaccurate, but they also are likely to turn off the very people a company wants to reach. (5 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-7. Who are acculturation agents? Give two examples.

The person’s contact with acculturation agents—people and institutions that teach the ways of a culture—are also crucial. Some of these agents are aligned with the culture of origin (in this case, Mexico), including family, friends, the church, local businesses, and Spanish-language media that keep the consumer in touch with her country of origin.

Other agents are associated with the culture of immigration (in this case, America) and help the consumer to learn how to navigate in the new environment. These include public schools, English-language media, and government agencies. (10 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-8. Describe the processes involved when a person assimilates into a new host culture.

Several processes come into play as immigrants adapt to their new surroundings.

Movement refers to the factors motivating people to physically uproot themselves from one location and go to another. In this case, people leave Mexico because of the scarcity of jobs and the desire to provide a good education for their children. On arrival, immigrants encounter a need for translation. This means attempting to master a set of rules for operating in the new environment, whether learning how to decipher a different currency or figuring out the social meanings of unfamiliar clothing styles. This cultural learning leads to a process of adaptation, by which people form new consumption patterns. For example, some of the Mexican women interviewed started to wear shorts .

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and pants since settling in the United States, although this practice is frowned upon in Mexico.

During the acculturation process, many immigrants undergo assimilation, where they adopt products, habits, and values that are identified with the mainstream culture. At the same time, there is an attempt at maintenance of practices associated with the culture of origin. Immigrants stay in touch with people in their country and, like Maria, many continue to eat Spanish foods and read Spanish newspapers. Their continued identification with Mexican culture may cause resistance, as they resent the pressure to submerge their Mexican identities and take on new roles. Finally, immigrants (voluntarily or not) tend to exhibit segregation; they are likely to live and shop in places that are physically separated from mainstream Anglo consumers. These processes illustrate that ethnicity is a fluid concept, and the boundaries of a subculture are constantly being re-created. (15 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding) 13-9. Why are Asian Americans an attractive market segment? Why can they be difficult for marketers to reach?

Asians not only make up the fastest-growing population group, but they are generally the most affluent and best educated. Estimates put this segment’s buying power at $253 billion annually. That explains why the brokerage firm Charles Schwab now employs more than 300 people who speak Chinese, Korean, and Vietnamese at its call centers.

Despite its potential, this group is hard to market to because it actually is composed of subgroups that are culturally diverse and speak many different languages and dialects.

The term Asian refers to 20 ethnic groups, with Chinese being the largest and Filipino and Japanese second and third, respectively. Filipinos are the only Asians who predominantly speak English among themselves; most Asians prefer media in their own languages. The most frequently spoken languages among Asian Americans are Mandarin Chinese, Korean, Japanese, and Vietnamese. (10 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding 13-10. How do religious subcultures affect consumption decisions?

In some cases, dietary or dress requirements create demand products, and these items then may gain in popularity among other groups. For example, less than one-third of the 6 million consumers who buy kosher products are Jewish. Seventh-Day Adventists and Muslims have very similar dietary requirements, and other people simply believe that kosher food is of higher quality. That is why some of the nation’s largest manufacturers get involved. About two-thirds of Pepperidge Farm’s products, for example, are kosher.

In addition to food products, religious subcultures in particular may exert a significant impact on consumer variables such as personality, attitudes toward sexuality, birthrates and household formation, income, and political attitudes. Church leaders can encourage consumption, but more importantly, they can discourage it—sometimes with powerful .

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effects. (10 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding) 13-11. What is a nuclear family, and how is it different from an extended family?

The extended family used to be the most common family unit. It consists of three generations who live together, and it often includes grandparents, aunts, uncles, and cousins. The nuclear family—a mother, a father, and one or more children largely replaced the extended family, at least in U.S. society. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-12. What are boomerang kids?

Children are more likely to live at home after graduating from college rather than taking their own places. Demographers call these returnees boomerang kids (you throw them out … they keep coming back). In today’s shrinking job market, many young people are forced to redefine the assumption that college graduation automatically means living on their own. About 40 percent of adults between 25 and 29 are now living, or have lived recently, with their parents. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-13. What is the FLC, and why is it important to marketers?

Because they recognize that family needs and expenditures change over time, marketers apply the family life cycle (FLC) concept to segment households. The FLC combine trends in income and family composition with the changes these demands place on this income. As we age, our preferences and needs for products and activities tend to change.

Twenty-somethings spend less than average on most products and services because their households are small and their incomes are low. Income levels tend to rise (at least until retirement), so that people can afford more over time. Older consumers spend more per capita on luxury items such as gourmet foods and upscale home furnishings. In addition, we don’t need to repeat many purchases we make when we start out. For example, we tend to accumulate durable goods such as large appliances and replace them only as necessary. Over the years, researchers have proposed several models to describe family life-cycle stages, but with limited effect because most failed to take into account such important social trends as the changing role of women, the acceleration of alternative lifestyles, childless and delayed-child marriages, and single-parent households. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding), 13-14. What is an age cohort, and why is it of interest to marketers?

An age cohort consists of people of similar ages who have undergone similar experiences. They share many common memories about cultural heroes (e.g., John Wayne versus Brad Pitt, important historical events (e.g., World War II versus the 2001 terrorist attacks), and so on. Although there is no universally accepted way to divide people into age cohorts, each of us seems to have a good idea of what we mean when we .

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refer to “my generation.” (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-15. How are Gen Yers different from their older brothers and sisters?

Unlike their parents or older siblings, Gen Yers tend to hold relatively traditional values and they believe in the value of fitting in rather than rebelling. Their acculturation agents (as we discussed in the previous chapter) stress teamwork—team teaching, team grading, collaborative sports, community service, service learning, and student juries. Violent crime among teenagers is down 60 to 70 percent. The use of tobacco and alcohol are at all-time lows. So is teen pregnancy. Five out of ten echo boomers say they trust the government, and virtually all of them trust Mom and Dad. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-16. What are tweens, and why are so many marketers interested in them?

Marketers use the term tweens to describe the 27 million children aged 8 to 14 who spend $14 billion a year on clothes, streaming audio, movies, and other “feel good” products. Tweens are “between” childhood and adolescence and they exhibit characteristics of both age groups. As one tween commented, “When we’re alone we get weird and crazy and still act like kids. But in public we act cool, like teenagers.” (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-17. What are some industries that stand to benefit most from the increasing affluence and vitality of the senior market?

Travel and hospitality, car sales and rentals, apparel, banking, and others. (3 minutes, Chapter Objective 13-9, AACSB: Multicultural and Diversity Understanding)

CONSUMER BEHAVIOR CHALLENGE DISCUSS 13-18. Among Facebook’s various problems over the last few years is that some of the country’s leading employers placed recruitments ads on the platform that were limited to particular age groups. Facebook’s ability to target very specific profiles has raised concerns about potential age discrimination in hiring. Some companies argue that this strategy is permissible because targeting older people for entry-level jobs would be a waste of money. For example, Goldman Sachs said that while about one-quarter of those who click on job ads are over 65, almost none go on to apply for an analyst job. What’s your take on this issue—is social media’s ability to finely target very specific consumer groups a plus or a minus?

Student responses to this question will vary dramatically. (30 minutes, Chapter Objective 13-4, AACSB: Reflective Thinking, Ethical Understanding and Reasoning Abilities) .

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13-19. Several major advertisers including Corona beer have come under fire recently for showing allegedly racist ads that favor white people over black people. In a Facebook ad for Dove body wash, a black woman removes her brown shirt and the ad then reveals a white woman in a light shirt (Dove later apologized). This is not a new problem: A soap ad that ran in the early 1900s featured a white child asking a black child, “Why doesn’t your mamma wash you with Fairy soap?” In 2017 the skin care company Nivea ran a deodorant ad that read, “White is purity.” White supremacists on the internet loved it In what some have labeled the most racist ad ever made, a 2016 commercial for the Chinese company Qiaobi’s laundry detergent shows an Asian woman who shoves a detergent pod into a black man’s mouth and puts him in a washing machine, from which he emerges as a light-skinned Asian. While you would think these ads are screened for such insulting content, apparently many still make it through. Should advertisements be more thoroughly screened, or are people just overreacting to these attempts at humor? How might the system be changed to avoid these blunders?

Student responses will vary. The question presents a good platform from which to discuss the ever-evolving concept of acceptibility in advertising. As society’s views and norms change, so must advertising practices. (15 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-20. Geodemographic techniques assume that people who live in the same neighborhood have other things in common as well. Why do they make this assumption, and how accurate is it?

Geodemography refers to analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live to identify consumers who share common consumption patterns. Researchers base this approach on the common assumption that “birds of a feather flock together”—people who have similar needs and tastes also tend to live near one another, so it should be possible to locate “pockets” of like-minded people whom marketers can reach more economically by direct mail and other methods. Residents of different clusters display marked differences in their consumption of products. One popular clustering technique is Nielsen’s PRIZM system. This system classifies every U.S. Zip Code into 1 of 66 categories, ranging from the most affluent “Blue-Blood Estates” to the least well-off “Public Assistance.” Although consumers in two different clusters may purchase a product at an equivalent rate, these similarities end when we take their other purchases into account. These differences highlight the importance of going beyond simple product-category purchase data and demographics to really understand a market.

(10 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) 13-21. Should members of a religious group adapt marketing techniques that manufacturers customarily use to increase market share for their secular products? Why or why not?

.

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Most students will probably say that some level of marketing used by churches and religious groups is fine. After all, without any kind of promotion, how are the members of an organization supposed to be informed about the services that a church offers?

Worshippers and potential worshippers have needs and desires, just like any consumers in any consumer context. So, it seems fitting that churches attempt to meet the needs of the members of their congregation. However, some students will probably raise the issue that there is a line in marketing something like religion. A Starbucks outlet in a church?

It has happened. (10 minutes, Chapter Objective 13-5, AACSB: Multicultural and Diversity Understanding) 13-22. Several years ago R. J. Reynolds announced plans to test market a menthol cigarette called Uptown specifically to black consumers. According to the company, about 70 percent of black smokers prefer menthol, more than twice the average rate. After market research showed that blacks tend to open cigarette packs from the bottom, the company decided to pack Uptowns with the filters facing down. Reynolds cancelled its plans after private health groups and government officials protested. Does a company have the right to exploit a subculture’s special characteristics, especially to increase sales of a harmful product such as cigarettes? What about the argument that virtually every business that follows the marketing concept designs a product to meet the needs and tastes of a preselected segment?

The instructor should anticipate a high level of interest and involvement with the issues represented in the RJR case. As in the case of targeting gays and the handicapped, there is likely to be a difference of opinion. It would be particularly interesting to hear the perspectives of both white and black students on this specific case. Generally, students should be able to think about and critically examine the issues regarding segmentation (on any basis) in order to meet the unique needs and wants of consumers and to increase overall sales of the product. (20 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-23. Discuss the pros and cons of the voluntarily childless movement.

The percentage of women of childbearing age who define themselves as voluntarily childless is on the rise. Twenty percent of women ages 40 to 44 have no children, double the level of 30 years ago. Childless couples are an attractive market segment for some companies (but obviously not for others, such as Gerber Baby Food). So-called DINKS (double income, no kids) couples are better educated on average than are twoincome couples with children. According to the U.S. Census Bureau, 30 percent of childless couples consist of two college graduates, compared with 17 percent of those with kids. Many childless couples feel snubbed by a child-oriented society. In recent years they formed networking organizations such as Childfree by Choice to support this lifestyle decision. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

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13-24. When they identify and target newly divorced couples, do you think marketers exploit these couples’ situations? Are there instances in which you think marketers may actually be helpful to them? Support your answers with examples.

Responses will vary by student but should address the family life cycle. As people move through these life stages, we observe significant changes in expenditures in leisure, food, durables, and services, even after we adjust the figures to reflect changes in income. We simply attribute some of these changes to variations in functional needs, whereas others reflect deeper motivations as we transition from one role to another. For example, researchers find that new mothers undergo profound changes in self-concept during pregnancy and after delivery; these changes influence the types of products they consume to reflect their new identities. The same would be true of those who divorce. (5 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-25. Born-again Christian groups have been instrumental in organizing boycotts of products advertised on shows they find objectionable, especially those that they feel undermine family values. Church leaders can encourage consumption but, more importantly, they can also discourage it—sometimes with powerful effects. The Disney Corporation discovered how effective these movements can be when the Southern Baptist Convention voted to persuade all its members to boycott Disney’s operations. The church instituted its anti-Mickey rebellion to protest the “Gay Days” at the theme parks and advocated a view that Disney had a radical homosexual agenda that it promoted through its broadcasts. Soon other organizations joined the cause, including the American Family Association, the General Council of the Assemblies of God, the Congregational Holiness Church, the Catholic League for Religious and Civil Rights, and the Free Will Baptists.

The fallout from the boycott was significant; Disney was forced to lay off 4,000 employees. Do religious groups have a right or a responsibility to dictate what advertising a network should carry?

As with many of the previous exercises, the answer to this question is a matter of individual opinion. As always, the instructor should encourage students to consider both sides of the argument and develop examples or cases to defend both positions, regardless of their personal opinions. (10 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-26. Religious symbolism appears in advertising, even though some people object to this practice. For example, a French Volkswagen ad for the relaunch of the Golf model showed a modern version of the Last Supper with the tag line, “Let us rejoice, my friends, for a new Golf has been born.” A group of clergy in France sued the company and the ad had to be removed from 10,000 billboards. One of the bishops involved in the suit said, “Advertising experts have told us that ads aim for the sacred in order to shock, because using sex does not work anymore.” Do you agree? Should religion be used to market products? Do you find this strategy effective or offensive? When and where is this appropriate, if at all?

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In answering this question, students may come up with numerous related incidents to illustrate the impact of highlighting religion in popular culture and advertising. One interesting approach to this issue (and related issues of offenses based on any other group or subculture) might be to suggest that there should be no censure of such material at all; that in a society where free speech is a core value, such material should not need to be censured or regulated. If indeed companies cross the line, then the market should take care of itself by a decrease in demand for products produced by such companies. (15 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-27. The chapter describes efforts by some mainstream marketers to appeal to Muslim consumers by making halal products. Given the political attitudes some Americans hold regarding Muslims, is this a dangerous strategy or a courageous one? What are the potential pitfalls of this approach and how would you handle it?

Students are likely to have different opinions about whether it is dangerous or courageous, but they should recognize that it is important for marketers that claim to be making halal products to uphold the appropriate standards. Mainstream adoption of the products depends on what consumers perceive halal to mean. The fact that the number of Muslims is growing worldwide should also be considered in the students’ responses. (10 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-28. This chapter discussed the dramatic changes in family structure today. The reality is that many other types of families continue to grow rapidly as well. Indeed, some experts argue that as traditional family living arrangements wane, we place even greater emphasis on siblings, close friends, and other relatives who provide companionship and social support. Some people join intentional families, groups of unrelated people who meet regularly for meals and who spend holidays together. Indeed, for some the act of meeting together to consume homemade food plays a central role in defining family: It is a symbolic way to separate a family unit from other social groups by allowing the cook(s) to personalize the meal and express affection via the effort that went into preparing the feast. What evidence do you find of the impact of nontraditional family structures? How will these alternative lifestyles change the way we think about consumer behavior?

Responses will vary by student. The response should recognize the concept of extended family and how the notion of the traditional family unit continues to evolve. The response may consider divorce, voluntary childlessness, and family life cycle. (10 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity) 13-29. This chapter describes members of Gen Y as much more traditional and team oriented than their older brothers and sisters. Do you agree?

Given that the traditional college students of today fall into the Gen Y category, this should be an interesting discussion. Do students want to see themselves as “traditional”?

If this is a good thing, then they are likely to agree. However, even if this is true, it will be .

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interesting to see if students will want to “’fess up.” (15 minutes, Chapter Objective 13-7, AACSB: Multicultural and Diversity Understanding) 13-30. Many parents worry about the time their kids spend online, but this activity may actually be good for them. A study by the MacArthur Foundation claims that surfers gain valuable skills to prepare them for the future. The study also finds that concerns about online predators are overblown; most kids socialize with friends they know from other situations like school or camp. What is your take on this? Are concerns about excessive Web surfing unjustified?

Students will likely feel that the concern is overblown. Regardless, the use of the Internet for young people is important for marketers targeting this group. (10 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 13-31. What are some of the positives and negatives of targeting college students? Identify some specific marketing strategies that you feel have been either successful or unsuccessful at appealing to this segment. What characteristics distinguish the successes from the failures?

According to material found in the chapter, advertisers spend approximately $100 million per year to try to influence this $20 billion market. As noted, the average college student has approximately $200 in discretionary funds each month beyond their basic needs. The marketers would certainly like to capture those dollars. Advantages of pursuing this market include the facts that they have money to spend and they are willing to try new products. Many, however, are inexperienced buyers, are hard to reach through traditional media, and tend to be specialized in the way they receive their information.

As noted in the chapter, one unique way of reaching the college student is the use of sampler boxes and wall media. Students should be challenged to think of other media forms and strategies that might prove to be successful with their market. This question usually results in a lively discussion. (15 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) APPLY 13-32. Locate current examples of marketing stimuli that depend on an ethnic or religious stereotype to communicate a message. How effective are these appeals?

Students are likely to identify beer companies for their practice of ethnic segmentation in advertising. To target Hispanic Americans or African Americans, for example, advertisers are employing well-known Hispanic American and African American personalities (e.g., movie stars, professional athletes, etc.) to promote their products. It is likely that these appeals are effective when the consumer feels a sense of identity or affinity with the spokesperson. (25 minutes, Chapter Objectives 13-3, AACSB: Multicultural and Diversity Understanding) .

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13-33. To understand the power of ethnic stereotypes, conduct your own poll. For a set of ethnic groups, ask people to anonymously provide attributes (including personality traits and products) most likely to characterize each group using the technique of free association.

How much agreement do you obtain across respondents? To what extent do the characteristics derive from or reflect negative stereotypes? Compare the associations for an ethnic group between actual members of that group and nonmembers.

Students should be encouraged to conduct their own research for this exercise and many others. This may be a good time for the instructor to emphasize the importance and value of market and consumer research efforts. (45 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding and Analytic Skills) 13-34. Observe the interactions between parents and children in the cereal section of a local grocery store (remember to take earplugs with you). Prepare a report on the number of children who expressed preferences, how they expressed their preferences, and how parents responded, including the number who purchased the child’s choice.

The report prepared by students will differ based on their experience in data collection.

(45 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding and Analytic Skills) 13-35. Select a product category and, using the life-cycle stages this chapter describes, list the variables likely to affect a purchase decision for the product by consumers in each stage of the cycle.

A life-cycle approach to the study of the family assumes that pivotal events alter role relationships and trigger new stages of life that alter our priorities and brand loyalties.

Students will have different responses based on the examples chosen. (10 minutes, Chapter Objective 13-4, AACSB: Analytic Skills) 13-36. Consider three important changes in the modern family structure. For each, find an example of a marketer who seems to be conscious of this change in its product communications, retailing innovations, or other aspects of the marketing mix. If possible, also try to find examples of marketers who have failed to keep up with these developments.

Over the years, researchers have proposed several models to describe family life-cycle stages, but with limited effect because most failed to take into account such important social trends as the changing role of women, the acceleration of alternative lifestyles, childless and delayed-child marriages, and single-parent households. There are four variables that address these changes: age, marital status, the presence or absence of children in the home, and the age of the children, if present. The examples students choose will vary, and will their indication of how marketers keep up, or fail to keep up, with these developments. (10 minutes, Chapter Objective 13-4, AACSB: Reflective Thinking)

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13-37. One study asked young people in the United States and the Netherlands to write essays about what is “cool” and “uncool” and to create visual collages that represent what it means to be cool. The researchers found that cool has multiple meanings to kids in these two cultures. Some of the common dimensions include having charisma, being in control, and being a bit aloof. Many of the respondents also agreed that being cool is a moving target: The harder you try to be cool, the more uncool you are! Here are some of their actual responses: • “Cool means being relaxed, to nonchalantly be the boss of every situation, and to radiate that” (Dutch female) • “Cool is the perception from others that you’ve got ‘something’ which is macho, trendy, hip, etc.” (Dutch male) • “Cool has something standoffish and at the same time, attractive” (Dutch male) “Being different, but not too different. Doing your own thing, and standing out, without looking desperate while you’re doing it” (American male) • “When you are sitting on a terrace in summer, you see those machos walk by, you know, with their mobile [phones] and their sunglasses. I always think, ‘Oh please, come back to earth!’ These guys only want to impress. That is just so uncool” (Dutch female) • “When a person thinks he is cool, he is absolutely uncool” (Dutch female) • “To be cool we have to make sure we measure up to it. We have to create an identity for ourselves that mirrors what we see in magazines, on TV, and with what we hear on our stereos” (American male) Replicate this study in your area. Recruit a group of teenagers to construct individual collages that represent what they feel is “cool.” Analyze their choices—what patterns do you see?

Responses will vary. (1 hour, Chapter Objective 13-1, AACSB: Reflective Thinking) 13-38. One pair of researchers took an in-depth look at how 13 and 14 year old integrate the computer into their lives, and how they use it to express their cyberidentities. These tweens have limited mobility in real life (too young to drive), so they use the computer to transport themselves to other places and modes of being. The researchers explored the metaphors these kids use when they think about their computers. For some, the PC is a “fraternity house” where they can socialize; it also can be a “carnival;” where they play games and an “external brain” that helps with homework. Interview some tweens about their online behaviors. How do they think about their digital devices? What role do they play in their lives?

Student responses will vary given their level of involvement or attachment to their electronic devises. (1 hour, Chapter Objective 13-4, AACSB: Reflective Thinking) 13-39. Locate one or more consumers (perhaps family members) who have emigrated from another country. Interview them about how they adapted to their host culture. In particular, what changes did they make in their consumption practices over time?

The class will be able to discuss this question in more depth if someone who personally knows an immigrant conducts this interview. (30 minutes, Chapter Objective 13-2, .

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AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-40. Interview some retired people. How are they reconstructing their identities? What opportunities do their desires present for marketers?

People can reconstruct identity by focusing on revitalizing a previous identity (revived) or by pursuing a new one (emergent). In either case, marketers can provide the products and brands that will help “build” and reflect the identity in question. (90 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding MyLab 13-41. Some industry experts feel that it’s acceptable to appropriate symbols from another culture even if the buyer does not know their original meaning. They argue that even in the host society there is often disagreement about these meanings. What do you think?

This should make for a very lively discussion, particularly given the amount of media attention this topic has received recently. It is not unusual for consumers who do not belong to a subculture to use products they associate with that group. Deethnicization occurs when a product we link to a specific ethnic group detaches itself from its roots and appeals to other. The issue is when this happens without regard to the origin and/or original purpose of the product. (25 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities) 13-42. What advice would you give to a marketer who wants to appeal to Gen Y? What are major do’s and don’ts? Can you provide some examples of specific marketing attempts that work or don’t work?

Gen Yers were born between 1986 and 2002. They are “jugglers” who value being both footloose and connected to their peers 24/7. A lot of marketers have run into trouble as they try to keep up with changes in their tastes. This can be difficult because these consumers like to “trade up and down,” that is, they fluctuate between upscale brands and less expensive ones. (15 minutes, Chapter Objective 13-4, AACSB: Reflective Thinking) CASE STUDY TEACHING NOTES Chapter 13 Case Study: Toyota’s Multicultural Ad Campaign – Same Car, But Different Ads for Different Ethnic Groups Summary of Case Toyota has developed a series of ads to promote their Camry automobile, with different appeals targeted at different ethnic groups. This case describes ads targeted at African Americans,

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Hispanics, Asian Americans, and one using a “total marketing” approach with an ad that tries to appeal to a wide variety of ethnic market segments at the same time.

Suggested Answers for Discussion Questions CS 13-1. Advertisers argue that research-based characterizations of ethnic priorities should not be considered stereotyping. What are the potential negative consequences of these characterizations from both a societal and business perspective?

From the chapter: Many subcultures have powerful stereotypes the general public associates with them. In these cases, outsiders assume that group members possess certain traits. Unfortunately, a communicator can cast the same trait as either positive or negative, depending on his or her biases or intentions. For example, the Scottish stereotype in the United States is largely positive, so we tend to look favorably on their (supposed) frugality. The 3M company uses Scottish imagery to denote value (e.g., Scotch tape), as does Scotch Inns, a motel chain that offers inexpensive lodging.

However, the Scottish “personality” might carry quite different connotations to the British or Irish. One person’s “thrifty” is another’s “stingy.”

From a high level standpoint, some marketers consider the use of subcultures as just another form of target marketing. However, from a societal standpoint, it can be reductive to consider all members of a particular ethnic group as having the same characteristics that research indicates a majority of the members have. Marketers would be wise to carefully consider the potential negative connotations of these characterizations. Beyond simply identifying the common characteristics, focus groups and possibly testing with a larger sample could help uncover potential landmines. It should also be noted that consumers that are not a member of the targeted ethnic group could also find the ads offensive. (10 minutes, Chapter Objective 13-2, AACSB: Diverse and Multicultural Work Environments) CS 13-2. Agencies who specialize in advertising to a particular ethnic group believe that such promotional messaging shows respect for the priorities and buying power of that ethnic group. Do you agree? What other potentially positive outcomes could be realized through a multicultural campaign?

Students answers will vary. Some may find it positive to see ads depicting subculturespecific situations and priorities as well as simply seeing actors/models represented in ads. Other potential positives are 1) greater awareness of unique aspects of a particular ethnic group, 2) a general sense of “importance” of a particular ethnic group, and 3) providing jobs for actors and models in that ethnic group as well as work for advertising agencies with a particular ethnic group focus. (10 minutes, Chapter Objective 13-2, AACSB: Reflective Thinking) CS 13-3. Those who advocate a “total market” approach believe that our diverse population is better served by ad campaigns that include a variety of ethnic imagery and messaging. .

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What are the pros and cons of this approach from both a societal and business perspective?

Students answers will vary; some students will feel that subculture is no longer a viable segmentation variable, while other students will think subculture will become more important as the U.S. continues to become more diverse.

Cons of the total approach include those noted above as positives of multicultural ad campaigns. The negatives from a societal standpoint might include a focus on ethnicity that emphasizes how we are different rather than how we are the same. From a business standpoint, there are risks of being accused of stereotyping or otherwise offending consumers through the ads’ characterizations of a particular ethnic group.

(10 minutes, Chapter Objective 13-2, AACSB: Diverse and Multicultural Work Environments) Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students to bring pictures of businesspersons, celebrities, athletes, etc. who, according to them, may have transcended ethnic or racial lines in terms of their appeal.

Have students justify their selections.

Student selections will vary. Beyoncé, Jennifer Lopez, Derek Jeter, Michael Jordan, and former President Obama may be among the selections. Ask students to provide evidence for the idea that the people they selected transcend ethnic or racial lines. (10 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

2.

Go through both mainstream and ethnic magazines and look for ads that might be culturally/religiously insensitive. Justify why the students think so.

Again, examples are likely to vary, but look for students to provide justification for their selections. (30 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding)

3.

Bring some magazines to class that are primarily targeted toward either African American or Caucasian audiences. Ask the students to look through each type of magazine and select advertisements that are similar, except for the models. Are there any other differences between the ads (e.g., language, social situation, etc.)? Explain.

Students’ selections will vary. Students may notice changes to the copy and the setting, in addition to the differences in the models. (20-25 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding) .

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4.

Have individual students bring to class print ads aimed at a particular subculture and show how the ads attempt to address the group. Do the students think they are effective?

Students will likely select racial or ethnic subcultures, so remind them they can select religious, age, lifestyle, etc. subcultures. (30 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

5.

Assign students to interview a member of a subculture other than his or her own (e.g., African American, Hispanic American, Asian American, white, Catholic, Mormon, Jewish, etc.) to discover what types of products or services are purchased because of membership in this particular group. What are some marketing implications?

Students are likely to find differences in food eaten and perhaps in the way holidays are (or are not) celebrated. Look for students to reflect on the marketing implications. (45 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding)

6.

Have a student visit a toy store to observe the various types of toys that are for sale to ethnic subcultures. Have them give a report on the range of toys available and specify the intended racial or ethnic markets.

The selections will likely vary based on demand in the market at your location. In some cases, a product like Dora the Explorer, who is Hispanic, transcends ethnic boundaries.

(20 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

7.

Send students to a retail store of their choice and have them comment on ethnic symbols that may or may not be used in marketing the store’s products. For example, are mannequins racially diverse? Should retail stores follow a policy of appealing to ethnic groups with symbols? Explain.

The diversity of symbols like mannequins and the opinions of students are likely to vary.

Mannequins are used to create need recognition at the point of sale; ask students for their opinions regarding whether the principle of similarity extends to mannequins. (30 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

8.

Assign students to talk to a religious professional (e.g., minister or priest) about his views toward marketing to consumers based on religious preferences. What is his opinion?

Does he market his religion? If so, how? Comment on whether you agree with this policy or not.

The responses from the religious professionals and the students are likely to vary. Look for students to support their opinions. (30 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding and Ethical Understanding and Reasoning Abilities)

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9.

Given that college students are tech-savvy, they can research and catalog some of the viral marketing efforts implemented by marketers. Are these effective in reaching them?

If yes, why and if not, why? What can be done to improve the strategies?

The number of viral marketing efforts targeting college students is large, so you may want to narrow this task to five or six from the past three years. Look for students to provide their opinions, recommendations, and support for both. (20 minutes, Chapter Objective 13-5, AACSB: Multicultural and Diversity Understanding)

10.

Have students collect ads that seem to stereotype some of the age groups discussed in the chapter. Are these effective or do they turn off the intended audience?

Students may have the easiest time finding ads that reflect stereotypes of teens and older adults. (45 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

11.

Choose a basic product that is used by people of all age groups (soft drink, toothpaste, automobile, etc.). Identify different brands of this product that target different age groups (Gen Yers, Gen Xers, boomers, seniors). Identify key differences in the product itself as well, as in how these brands are promoted, priced, and distributed.

Look for students to identify the characteristics of the age cohort in their description/ evaluation of the 4 P’s used for the product marketing to each group. (20 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

12.

Have students contact their parents or grandparents. What is nostalgic to them? How have you seen this used in advertising? What products have a nostalgic appeal for them? Do they say that nostalgic appeals work on them? Have them give examples.

What is nostalgic will vary by individual. Often times, examples relate to music used in advertisements. Some companies will revive earlier versions of their products to trigger nostalgic feelings. (25 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

13.

Ask students to use a product example (i.e., food products, automobiles) to illustrate how the marketer might promote to youths to take advantage of the influence they exert on family purchase decisions.

Food products that appeal to children are placed at eye level in the grocery store.

Further, food companies often use licensing deals to put children’s favorite characters on packaging and use the characters in communications. In the past, some automobile companies used cartoon characters. Now, automobile companies offer expanded features for kids (e.g. DVD players). (15 minutes, Chapter Objective 13-4, AACSB: Reflective Thinking)

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Group Projects 1.

Assign student groups to visit two local supermarkets to find out if either has segmented their market based on the subculture or ethnic background of their customers. How many subcultures does each supermarket recognize? Have the students talk to the store manager if possible.

Many supermarkets have an Asian section, a Hispanic section, and/or an International section. Some have an organic section, which appeals to a lifestyle subculture. Some have a section of kosher goods. The availability of different sections depends on the needs of the market and the supermarket’s flexibility to serve the market. (60 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

2.

Have groups prepare a list of holidays that are oriented toward a particular subculture (e.g., Cinco de Mayo, Martin Luther King’s birthday, Passover, Easter, St. Patrick’s Day, etc.). Now have them ask a few people if they celebrate or commemorate these holidays.

What are the marketing implications? (Make sure that some of the people interviewed belong to the subcultures chosen.)

With the exception of Martin Luther King’s birthday, which may prompt travel and retail promotional sales but otherwise is less associated with specific consumption behaviors than the other holidays on the list, respondents should be able to talk about specific products associated with the holidays. (20 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

3.

Have student groups go to a senior citizen gathering (this can be any kind of gathering) and interview three men and three women about nostalgia. What were they most nostalgic about? How could this be used in marketing to capture their attention? What did you learn from this experience?

As with individual project 12, the things that make the respondents nostalgic are likely to vary. Students should write up the implications of the insights gained from the interviews.

(90 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

4.

Have student groups interview a working and a nonworking woman who have children in grade school. Have them write down the menu that they served for the previous evening meal. Ask them about the specific brands that they used to prepare the meal (e.g., bread, beverage, entree, vegetables, fruits, dessert, etc.). Have them then collate this information to discover any similarities and differences.

Students may find a heavier reliance on convenience foods in the household with the working woman. However, students should consider differences that might occur if the woman has outside help (e.g. a cook, a nanny that helps prepare meals, etc.), there is a non-working man in the household, the woman’s schedule allows flexibility to prepare

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dinner, etc. (40 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) 5.

Have groups find good and bad examples of advertising targeted toward “seasoned citizens.” To what extent do these ads stereotype the elderly? Do you think that the elderly would like or resent the implications? Are there any elements in these ads that make them effective in reaching and persuading the elderly? Explain.

The elderly is a growing age group and has different subcultures within the group. Some marketers are responding to that in their communications. For example, the AARP is showing ads that make the distinction between the sub segments in its target audience.

Some ads that portray the elderly in a less positive light may be targeted to younger age cohorts. (60 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

ONLINE ASSIGNMENTS Individual Assignments 1.

Go to the following: www.bet.com, www.ebony.com, and www.vibe.com. What do these African American interest websites have in common? How do they use desire for ethnicity to their advantage? Would members of other races be attracted to these sites? If so, why? State your general impressions of these sites. Explain.

Bet.com has separate sections for celebrities, music, news and shows. Ebony.com has sections called news, entertainment, lifestyle, and your money. Finally, vibe.com is mainly about hip-hop music. It seems most likely to attract members of other races who are interested in hip-hop music. Johnson Publishing Group was planning to discontinue the publication of Ebony because of falling circulation and ad revenue. Under new leadership, with outsourced circulation and with JPMorgan Chase as a new equity stakeholder in 2011, the magazines numbers were improving. However, like many magazines, they have to compete with communications on the web, where bloggers are talking about causes, politics, popular culture, etc. and presenting opinions free and 24/7. (30 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

2.

Go to www.catholic.org, www.lds.org, and www.scientology.org. Each of these sites expresses thoughts about religion and religious freedom. What techniques do the sites use to stimulate their audiences to follow their messages and commit to participation? How can marketers use religious websites to their advantage? Is there a potential conflict of interest or ethical dilemma in using religious websites for commercial purposes? Explain.

The websites use different tactics to engage consumers. For example, Scientology.org has a video ad on its home page. lds.org, on the other hand, offers a lot of information.

Often, the commerce aspects of the websites are related to charity work or humanitarian efforts. Still, students may have differences of opinion about the ethics of the commerce

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3.

4.

offerings. (30 minutes, Chapter Objective 13-3, AACSB: Multicultural and Diversity Understanding) Go to www.mtv.com. MTV has been around for a long time. Did you watch it when you were a teen? How has it changed? What new strategies is the organization using to reach its target market of today? Where will the organization be heading in the future? How could it keep its customers and viewers from “growing up” and leaving it as a source of entertainment and information? Plot a strategy that might help with this.

MTV has made changes throughout its history to appeal to the next generation of teens, with varying success. Students will likely have specific ideas to keep MTV content relevant to its fickle target audience. Look for them to tie it back to the chapter’s discussion of teens and what is cool. (20 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding) Go to www.seventeen.com and www.cosmopolitan.com. How are these two sites different? What are their two target markets? What messages and values are being transmitted by the two websites? How can age and gender be combined by marketers to ensure success? Find two illustrations on the two websites to illustrate your thoughts or feelings.

The main difference between the two websites is the age groups they target. The content and format at cosmopolitan.com are designed to appeal to an older audience of women than the content and format at Cosmo girl, which is aggregated with the sites from Seventeen and Teen magazines. (20 minutes, Chapter Objective 13-4, AACSB: Reflective Thinking and Multicultural and Diversity Understanding)

Group Assignments 1.

Have your group explore www.starwars.com. How does this site make appeals to its selected audience? What are the strongest features of the website? Write a brief marketing plan for the website to attract more African American, Hispanic American, and Asian American visitors. Predict the success of your marketing planning effort.

Look for students to understand the characteristics, needs and wants of the three groups in their proposed strategies. (20 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

2.

Go to www.bratz.com. Have your group analyze how this popular toy site attempts to broaden its base to various ethnic groups. After analyzing the website, write a brief summary plan that demonstrates your group’s ideas for broadening the ethnic appeal of the website.

Bratz dolls gained popularity in part because of their diverse looks and urban, hip style.

Student ideas for broadening the ethnic appeal may include new characters, complete with “lifestyle profiles” that reflect the subculture, and additional language choices. (30 minutes, Chapter Objective 13-2, AACSB: Multicultural and Diversity Understanding)

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3.

Visit www.aarp.com and determine the issues of the senior citizen segment. Are there any to which marketers need to pay attention? Determine how marketers can address them.

The AARP website attempts to keep up with the issues that are most important at any given point in time, so the issues vary. However, political discussions about Social Security benefits and health care, lifestyle issues such as fitness, blood pressure control and weight loss, and information about personal finance tend to be among the top headlines. These may be areas where senior citizens create a demand for services.

(15 minutes, Chapter Objective 13-4, AACSB: Multicultural and Diversity Understanding)

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Chapter 14: Culture

Chapter 14: CULTURE CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 14-1. A culture is a society’s personality.

14-2. Myths are stories that express a culture’s values, and in modern times marketing messages convey these values to members of the culture.

14-3. We describe products as either sacred or profane, and it’s not unusual for some products to move back and forth between the two categories.

14-4. New products, services and ideas spread through a population over time. Different types of people are more or less likely to adopt them during this diffusion process.

14-5. Many people and organizations play a role in the fashion system that creates and communicates symbolic meaning to consumers.

14-6. Western (and particularly U.S.) culture has a huge impact around the world, although people in other countries don’t necessarily ascribe the same meanings to products as we do.

CHAPTER SUMMARY A culture is a society’s personality.

A society’s culture includes its values, ethics, and the material objects its members produce. It is the accumulation of shared meanings and traditions among members of a society. We describe a culture in terms of ecology (the way people adapt to their habitat), its social structure, and its ideology (including moral and aesthetic principles). Social scientists distinguish between high (or elite) forms and low (or popular) forms of culture. Products of popular culture tend to follow a cultural formula and contain predictable components. However, these distinctions blur in modern society as marketers increasingly incorporate imagery from “high art” to sell everyday products.

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

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

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A ritual is a set of multiple, symbolic behaviors that occur in a fixed sequence and that we repeat periodically. Ritual is related to many consumption activities that occur in popular culture.

These include holiday observances, gift-giving, and grooming.

A rite of passage is a special kind of ritual that marks the transition from one role to another.

These passages typically entail the need to acquire ritual artifacts to facilitate the transition.

Modern rites of passage include graduations, fraternity initiations, weddings, debutante balls, and funerals.

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

We divide consumer activities into sacred and profane domains. Sacred phenomena are “set part” from everyday activities or products. Sacralization occurs when we set apart everyday people, events, or objects from the ordinary. Objectification occurs when we ascribe sacred qualities to products or items that sacred people once owned. Desacralization occurs when formerly sacred objects or activities become part of the everyday, as when companies reproduce “one-of-a-kind” works of art in large quantities.

New products, services, and ideas spread through a population over time. Different types of people are more or less likely to adopt them during this diffusion process.

Diffusion of innovation refers to the process whereby a new product, service, or idea spreads through a population. Innovators and early adopters are quick to adopt new products, and laggards are slow. A consumer’s decision to adopt a new product depends on his or her personal characteristics as well as on characteristics of the innovation itself. We are more likely to adopt a new product if it demands relatively little behavioral change, is easy to understand, and provides a relative advantage compared to existing products.

Many people and organizations play a role in the fashion system that creates and communicates symbolic meanings to consumers.

The fashion system includes everyone involved in creating and transferring symbolic meanings.

Many different products express common cultural categories (e.g., gender distinctions). Many people tend to adopt a new style simultaneously in a process of collective selection. According to meme theory, ideas spread through a population in a geometric progression much as a virus infects many people until it reaches epidemic proportions. Other perspectives on motivations for adopting new styles include psychological, economic, and sociological models of fashion.

The styles prevalent in a culture at any point in time reflect underlying political and social conditions. We term the set of agents responsible for creating stylistic alternatives a culture production system. Factors such as the types of people involved in this system and the amount of competition by alternative product forms influence the choices that eventually make their way to the marketplace for consideration by end consumers.

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Fashions follow cycles that resemble the product life cycle. We distinguish between two extremes of fashion adoption, classics and fads, in terms of the length of this cycle.

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

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

Because a consumer’s culture exerts such a big influence on his or her lifestyle choices, marketers must learn as much as possible about differences in cultural norms and preferences when they do business in more than one country. One important issue is the extent to which we need to tailor our marketing strategies to each culture. Followers of an etic perspective believe that people in many cultures appreciate the same universal messages. Believers in an emic perspective argue that individual cultures are too unique to permit such standardization; marketers must instead adapt their approaches to local values and practices. Attempts at global marketing have met with mixed success. In many cases this approach is more likely to work if the messages appeal to basic values or if the target markets consist of consumers CHAPTER OUTLINE Use Chapter Objective 1 Here Use Key Term ‘Culture,’ ‘Ecology,’ ‘Social Structure,’ ‘Ideology’ Here

I.

Cultural Systems Culture is a society’s personality.

It includes both abstract ideas and material objects and services. It is the accumulation of shared meanings, rituals, norms, and traditions among the members of an organization or society.

A. Dimensions of Culture Culture is not static. A cultural system consists of these functional areas: • •

Ecology—The way a system adapts to its habitat. The technology a culture uses to obtain and distribute resources shapes its ecology.

Social structure—The way people maintain an orderly social life. This includes the domestic and political groups that dominate the culture (e.g., the nuclear family versus the extended family; representative government versus dictatorship. .

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•

Ideology—The mental characteristics of a people and the way they relate to their environment and social groups.

Use Key Term ‘Cooptation,’ ‘Collective Selection,’ Culture Production System (CPS),’ ‘Cultural Gatekeepers’ Here Use Review Question 14-1 Here B. The Yin and Yang of Marketing and Culture Cultural products undergo a process of cooptation in which outsiders transform their original meanings. The spread of hip-hop fashions and music is one example.

C. Cultural Movement Many possibilities initially compete for adoption; most of them drop out of the mix as they make their way down the path from conception to consumption. This this winnowing-out process is known as collective selection. (Figure 14.2) A culture production system (CPS) is the set of individuals and organizations that create and market a cultural product.

A culture production system has three major subsystems: • A creative subsystem to generate new symbols and products • A managerial subsystem to select, make tangible, produce, and manage the distribution of new symbols and products • A communications subsystem to give meaning to the new product and provide it with a symbolic set of attributes Many judges or “tastemakers” have a say in the products we consider. These cultural gatekeepers filter the overflow of information as it travels down the “funnel.”

Use Key Term ‘Art Product,’ ‘Craft Product,’ ‘Street Art,’ ‘Cultural Formula’ Here Use Review Question 14-8, 14-9 Here D. High and Low Culture An art product is an object we admire strictly for its beauty or because it inspires an emotional reaction in us. We admire a craft product because of the beauty with which it performs some function (e.g., a ceramic ashtray or hand-carved fishing lures).

Street art is a form of art where artists create paintings, murals, and other pieces in public places.

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E. Cultural Formulae Many popular art forms, such as detective stories or science fiction, follow a cultural formula in which familiar roles and props occur consistently.

Use Chapter Objective 2 Here Use Key Term ‘Conditioned Superstition,’ ‘Myth,’ ‘Binary Opposition,’ ‘Consumer Fairy Tales’ Here Use Review Question 14-10, 14-11 Here Use Consumer Behavior Challenge 14-22, 14-26, 14-32 Here II.

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

Conditioned superstition is defined as the feeling that you don’t believe you have control over their outcomes come to associate a product that is paired with a reward with the outcome itself.

A. Myths A myth is a story with symbolic elements that represents a culture’s ideals. The story often focuses on some kind of conflict between two opposing forces, and its outcome serves as a moral guide for listeners.

Myths serve four interrelated functions in a culture: • Metaphysical • Cosmological • Sociological • Psychological Many myth stories involve binary opposition, which represents two opposing ends of some dimension (e.g., good versus evil, nature versus technology). Often a mediating figure resolves the conflict between mythical opposing forces.

Some people create their own consumer fairy tales. They tell stories that include magical agents, donors, and helpers to overcome villains and obstacles as they seek out goods and services in their quest for happy endings.

Many “blockbuster” movies and hit TV shows draw directly on mythic themes.

Examples include: Gone with the Wind, E.T: The Extra-Terrestrial, Star Trek.

Use Key Term ‘Ritual,’ ‘Ritual Artifacts,’ ‘Ritual Script,’ ‘Fortress Brands,’ ‘Grooming Rituals’ Here Use Review Question 14-2, 14-3 Here Use Consumer Behavior Challenge 14-21 Here .

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B. Rituals A ritual is a set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically.

Many businesses benefit because by supplying ritual artifacts to consumers.

These are items we need to perform rituals, such as wedding rice, birthday candles, diplomas, specialized foods and beverages and retirement watches.

In addition, people often follow a ritual script to identify the artifacts we need, the sequence in which we should use them, and who uses them.

Fortress brands are items we use to perform rituals. They are called this because once they become embedded in our ceremonies—whether we use them to brush our teeth, drink a beer, or shave—we’re unlikely to replace them.

Virtually all of us practice private grooming rituals. These ceremonies help us to transition from our private self to our public self.

Grooming rituals express two kinds of binary opposition: private/public and work/leisure.

Use Key Term ‘Gift-Giving Ritual,’ ‘Gestation,’ ‘Presentation,’ ‘Reformulation,’ ‘Reciprocity Norm,’ ‘Antifestival,’ ‘Rites of Passage’ Here Use Review Question 14-4 Here Use Consumer Behavior Challenge 14-28 Here C. Gift-Giving Ritual In a gift-giving ritual, we procure the perfect object, meticulously remove the price tag, carefully wrap the object (where we symbolically change the item from a commodity to a unique good) and deliver it to the recipient.

Researchers view gift-giving as a form of economic exchange in which the giver transfers an item of value to a recipient, who in turn must reciprocate. However, gift-giving also involves symbolic exchange.

The gift-giving ritual proceeds in three distinct stages: 1. During gestation the giver procures an item to mark some event.

2. The second stage is presentation or the process of gift exchange.

3. In the reformulation stage, the giver and receiver redefine the bond between them (either looser or tighter) to reflect their new relationship after the exchange.

The reciprocity norm obliges people to return the gesture of a gift with one of equal value.

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D. Holiday Rituals On holidays, we step back from our everyday lives and perform ritualistic behaviors unique to those occasions.

Most holidays commemorate a cultural myth, often with a historical or imaginary character as the story’s hero. These holidays persist because their basic elements appeal to our deep-seated needs. Examples include: • Christmas • Halloween - Halloween is an antifestival—an event that distorts the symbols we associate with other holidays.

• Valentine’s Day i. Rites of Passage Modern rites of passage are rituals we perform to mark a change in social status. Every society, both primitive and modern, sets aside times for these changes.

Use Chapter Objective 3 Here Use Key Term ‘Sacred Consumption,’ ‘Profane Consumption,’ ‘Sacralization,’ ‘Objectification,’ ‘Contamination,’ ‘Sneakerheads,’ ‘Collecting,’ Hording’ Here Use Review Question 14-4 Here Use Consumer Behavior Challenge 14-19, 14-20, 14-23, 14-24, 14-25, 14-30, 14-34 Here III.

Sacred and Profane Consumption One of the most important distinctions we find is between the sacred and the profane.

Sacred consumption occurs when we “set apart” objects and events from normal activities and treat them with respect or awe. Note that in this context the term sacred does not necessarily carry a religious meaning, although we do tend to think of religious artifacts and ceremonies as “sacred.”

Profane consumption, in contrast, describes objects and events that are ordinary or everyday; they don’t share the “specialness” of sacred ones. Again, note that in this context we don’t equate the word profane with obscenity, although the two meanings do share some similarities.

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

Objectification occurs when we attribute sacred qualities to mundane items. One way that this process occurs is via contamination whereby objects we associate with sacred events or people become sacred in their own right.

Sneakerheads is a term that describes people who are avid collectors of rare or limited edition “kicks,” such as Nike Air Jordans. .

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Collecting refers to the systematic acquisition of a particular object or set of objects. This is in contrast to hoarding, which reflects a reluctance to discard used objects.

B. Domains of Sacred Consumption i. Sacred Places A society “sets apart” sacred places because they have religious or mystical significance (e.g., Bethlehem, Mecca, Stonehenge) or because they commemorate some aspect of a country’s heritage (e.g., the Kremlin, the Emperor’s Palace in Tokyo, the Statue of Liberty, or Ground Zero in Manhattan).

Contamination makes these places sacred: Something sacred happened on that spot, so the place itself takes on sacred qualities. ii. Sacred Events Sometimes public events resemble sacred, religious ceremonies.

Tourism is another category of sacred experience. People occupy sacred time and space when they travel on vacation (though you may not think so if you get stuck sleeping on an airport floor because of a plane delay).

C. From Sacred to Profane, and Back Again Desacralization occurs when we remove a sacred item or symbol from its special place or duplicate it in mass quantities so that it loses its “specialness” and becomes profane.

Use Chapter Objective 4 Here Use Key Term ‘Desacralization,’ ‘Diffusion of Innovations,’ ‘Innovation,’ ‘Laggards,’ ‘Late Adopters,’ ‘Innovators’ Here Use Review Question 14-6, 14-7 Here Use Consumer Behavior Challenge 14-18, 14-29, 14-31 Here IV.

The Diffusion of Innovations Diffusion of innovations refers to the process whereby a new product, service, or idea spreads through a population.

An innovation is any product or service that consumers perceive to be new.

A. How Do We Decide to Adopt an Innovation?

Roughly one-sixth of the population (innovators and early adopters) are quick to adopt new products, and one-sixth (laggards) are slow. The other two-thirds, socalled late adopters are somewhere in the middle. These consumers are the mainstream public. (Figure 14.3) .

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Innovators represent about 2.5 percent of the population and marketers are eager to identify them. These are the individuals who are always on the lookout for novel products or services and who are first to try something new. An innovator tends to be a risk-taker. He or she is likely to have a relatively high educational and income level and to be socially active.

Use Key Term ‘Technology Acceptance Model (TAM),’ ‘Gartner Hype Cycle,’ ‘Continuous Innovation,’ ‘Dynamically Continuous Innovation,’ ‘Discontinuous Innovation’ Here Use Review Question 14-12 Here B. Behavioral Demands of Innovations A widely used approach to predicting whether people will adopt a new form of technology or information system is the Technology Acceptance Model (TAM).

The TAM (based on the theory of reasoned action [Chapter 8] suggests that the likelihood of change is based on two factors: 1. The perceived usefulness of the new option 2. Its perceived ease of use.

The Gartner Hype Cycle (Figure 14.4) is a widely used approach to help analysts chart the progress of a technological innovation. Its purpose is to tease apart the “hype” from the real commercial promise of a new product or platform such as gamification or virtual reality.

This model describes five key phases of a technology’s life cycle: • • • • •

Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity

Researchers identify three major types of innovations. They refer, in a relative sense, to the amount of disruption or change they bring to people’s lives.

1. A continuous innovation is a modification of an existing product, such as when General Mills introduces a Honey Nut version of Cheerios or Levi’s promotes shrink-to-fit jeans. Most product innovations are of this type; they are evolutionary rather than revolutionary.

2. A dynamically continuous innovation is a significant change to an existing product.

3. A discontinuous innovation creates a big change in the way we live.

Major inventions, such as the airplane and the computer, fall into this category. .

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Use Key Term ‘M-Pesa,’ ‘Reverse Innovation,’ Compatibility,’ ‘Trialability,’ ‘Complexity,’ ‘Observability,’ ‘Relative Advantage’ Here C. What Determines If an Innovation Will Diffuse?

Regardless of how much we have to change what we do, a successful innovation should possess these attributes: • • • • •

Compatibility—The innovation should be compatible with consumers’ lifestyles.

Trialability—Because we think an unknown product is risky, we’re more likely to adopt an innovation if we can experiment with it before making a commitment.

Complexity—The product should be low in complexity. All things being equal, we will choose a product that’s easier to understand and use rather than a more complex one.

Observability—Innovations that are readily apparent are more likely to spread because we can learn about them more easily.

Relative advantage—The product should offer relative advantage over alternatives. The consumer must believe that it will provide a benefit other products cannot offer.

Use Chapter Objective 5 Here Use Key Term ‘Normcore,’ ‘Fashion System,’ ‘Fashion,’ ‘Erogenous,’ ‘Prestige-Exclusivity Effect,’ ‘Snob Effect’ Here V.

The Fashion System The fashion movement known as normcore reflected an effort by young Bohemian types to “get over themselves.” They devoted tremendous effort to set themselves apart from others with quirky style flourishes like handlebar moustaches and drinking obscure microbrews, and so they felt a need to throw themselves back into mainstream culture.

The fashion system includes all the people and organizations that create symbolic meanings and transfer those meanings to cultural goods.

Fashion is the process of social diffusion by which some group(s) of consumers adopts a new style.

In contrast, a fashion (or style) is a particular combination of attributes (say, stovepipe jeans that women wear with a tunic top). To be in fashion means that some reference group positively evaluates this combination A. Behavioral Science Perspectives on Fashion i. Psychological Models of Fashion .

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Many psychological factors help explain what motivates us to be fashionable. These include conformity, desires for variety seeking, the need to express personal creativity, and sexual attraction.

One of the earliest theories of fashion argued that “shifting erogenous zones (sexually arousing areas of the body) accounted for fashion changes and that different zones become the object of interest because they reflect societal trends. ii. Economic Models of Fashion Economists approach fashion in terms of the model of supply and demand.

Items in limited supply have high value, whereas our desire decreases for readily available products.

The prestige–exclusivity effect occurs when high prices create high demand. In contrast, the snob effect occurs when lower prices reduce demand.

Use Key Term ‘Trickle-Down Theory,’ ‘Trickle-Across Effect,’ ‘Trickle-Up Effect,’ ‘Paradox of Fashion,’ ‘Brand Immigrants,’ ‘Brand Tourists’ Here Use Review Question 14-13, 14-17 Here iii. Sociological Models of Fashion This perspective focuses on a subculture’s adoption of a fashion (idea, style, and so on) and its subsequent diffusion into society as a whole.

Trickle-down theory states that two conflicting forces drive fashion change. First, subordinate groups adopt the status symbols of the groups above them as they attempt to climb up the ladder of social mobility.

Dominant styles thus originate with the upper classes and trickle down to those below.

Trickle-across effect is where fashions diffuse horizontally among members of the same social group. Finally, when a fashion originates with the lower classes and becomes accepted into other classes, we observe a trickle-up effect.

The sociological perspective that emphasizes the tension between dominant and subordinate groups highlights a basic paradox of fashion A brand often has cachet because only a select group of people own it. As more consumers outside of this inner circle start to adopt it, it is no longer exclusive and its original meaning is lost. Therefore, the item is a victim of its own success.

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Brand immigrants are those users who try to claim membership within the community of users, and brand tourists who buy the brand but who do not claim membership.

Use Key Term ‘Meme Theory,’ ‘Tipping Point,’ ‘Acceptance Cycles’ Here Use Review Question 14-14, 14-16 Here iv. A Medical Model of Fashion Meme theory explains how an idea or product (a meme) enters the consciousness of people over time. Memes spread among consumers in a geometric progression just as a virus starts off small and steadily infects increasing numbers of people until it becomes an epidemic. A few people initially use the product but change happens in a hurry when the process reaches the moment of critical mass—the tipping point.

B. Cycles of Fashion Adoption We identify different classes of fashion when we look at the relative length of their acceptance cycles. Many fashions have a moderate cycle, taking several months or even years to work their way through the stages of acceptance and decline; others are extremely long-lived or short-lived.

Use Chapter Objective 4 Here Use Key Term ‘Global Consumer Culture,’ ‘Creolization,’ ‘Emic Perspective,’ ‘National Character,’ ‘Consumer Style,’ ‘Hofstede Dimensions of National Culture’ Here Use Review Question 14-15, 14-27 Here VI.

Global Consumer Culture Many multinational firms are household names, widely recognized by literally billions of people. The dominance of these marketing powerhouses creates a global consumer culture that unites people around the world by their common devotion to brand-name consumer goods, movie stars, celebrities, and leisure activities.

A. It’s a BRAND-New World The West (and especially the United States) is a net exporter of popular culture.

Many consumers equate Western lifestyles in general and the English language in particular with modernization and sophistication, and numerous U.S. brands insinuate themselves into local cultures.

Creolization occurs when foreign influences integrate with local meanings. i. Adopt a Localized Strategy An emic perspective stresses variations across cultures. This perspective forwards that each culture is unique, with its own value system, conventions, and regulations. .

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This perspective argues that each country has a national character, a distinctive set of behavior and personality characteristics.

The concept of consumer style forwards that it is a pattern of behaviors, attitudes, and opinions that influences all of a person’s consumption activities—including attitudes toward advertising, preferred channels of information and purchase, brand loyalty, and price consciousness.

One of the most widely used measures of cross-cultural values is an instrument called Hofstede Dimensions of National Culture.

This measure scores a country in terms of its standing on six dimensions: • Power Distance • Individualism • Masculinity • Uncertainty Avoidance • Long-Term Orientation • Indulgence versus Restraint B. Does Global Marketing Work?

To maximize the chances of success for these multicultural efforts, marketers must locate consumers in different countries who nonetheless share a common worldview.

A study of consumers in 41 countries identified the characteristics that people associate with global brands, and it also measured the relative importance of those dimensions when consumers buy products.

Four major segments were identified: • Global citizens • Global dreamers • Antiglobals • Global agnostics

Use Consumer Behavior Challenge 14-33

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

1.

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

2.

Marketing Opportunity Changing your status from “childless” to “parent” is a rite of passage.

3.

Net Profit Marriage rituals have changed with technology, including the words we use to describe the significant other, and to comment on the preparation for the wedding.

4.

Net Profit M-Pesa is a mobile phone-based money transfer service used in parts of Africa where many consumers have no access to banks. The app based money transfers transformed how the local economies relate to the banking industry.

5.

The Tangled Wed Memes travel fast, and when they make fun of a brand, they can hurt. The brand becomes a temporary punching bag for many.

6.

Marketing Pitfall The language barrier creates a problem for marketers who wish to break into foreign markets, resulting in product names and descriptions that are less than desirable in the local markets.

REVIEW QUESTIONS 14-1. What is culture? List three dimensions social scientists used to describe a culture and give an example of each.

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

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

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•

•

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

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

No thongs here, though: The suits cover the women from wrists to ankles. (20 minutes, Chapter Objective 14-1, AACSB: Diverse and Multicultural Work Environments)

14-2. A myth is a special kind of story. What makes it special? What is an example of a modern myth?

A myth is a story containing symbolic elements that express the shared emotions and ideals of a culture. It often features a conflict between two opposing forces. It often sets good against evil. It reduces anxiety because it provides consumers with guidelines about their world. An example of the modern myth is fairy tale weddings that Disney stages for couples that want to enact their own version of a popular fairy tale. (5 minutes, Chapter Objective 14-5, AACSB: Reflective Thinking) 14-3. Give an example of a marketer who uses the principle of binary opposition.

Binary opposition occurs when there are two opposing ends of some dimension (e.g., good versus evil, nature versus technology). Characters, and in some cases products, are often defined by what they are not rather than what they are (“I can’t believe it’s not butter.”). (5 minutes, Chapter Objective 14-5, AACSB: Reflective Thinking) 14-4. What is a ritual? Describe three kinds of rituals and provide an example of each.

A ritual is a set of multiple, symbolic behaviors that occur at a variety of levels. Three kinds of rituals are: gift-giving rituals (ex. Christmas gifts), holiday rituals (ex. wearing costumes for Halloween), and grooming rituals (ex. bathing). (10 minutes, Chapter Objective 14-6, AACSB: Application of Knowledge) 14-5. List the three stages of a rite of passage ritual.

A rite of passage consists of three phases, separation, liminality, and aggregation. For example, when a student leaves for college they will experience the three phases. In the first stage, separation, he detaches from his original group or status as a high school kid and leaves home for campus. Liminality is the middle stage, where he is in limbo between .

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statuses. Think of those bewildered new first-year students who try to find their way around campus during orientation. In the aggregation stage, he returns to society with his new status. Our hero returns home for Thanksgiving break as a cocky college “veteran.” (5minutes, Chapter Objective 14-4, AACSB: Reflective Thinking) 14-6. What is the difference between sacred and profane consumption? Provide one example of each.

Sacred consumption involves objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe. They may or may not be associated with religion, but people tend to regard most religious items and events as sacred. An example of this might be a once-in-a-lifetime round-the-world cruise. Profane consumption involves consumer objects and events that are ordinary, everyday objects and events that do not share the “specialness” of sacred ones. An example of this might be going mall shopping on the weekend. (5 minutes, Chapter Objective 14-7, AACSB: Application of Knowledge) 14-7. How is a collection sacred? What is the difference between collecting and hoarding?

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

Collecting expensive cars is a sacred experience for a few. A car might be sacralized as soon as it enters a collection and it takes on a special significance to the collector that outsiders may find hard to comprehend. We can distinguish this activity from hoarding, which is merely unsystematic collecting. Hoarding is becoming a problem in some areas where consumers’ refusal to throw things away in some extreme cases has resulted in fires, eviction, and even the removal of children from the home. (5 minutes, Chapter Objective 14-7, AACSB: Reflective Thinking) 14-8. Describe a culture production system and list its three components.

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

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

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

(10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-9. Define a cultural gatekeeper, and give three examples.

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

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restaurant, and car reviewers, interior designers, disc jockeys, retail buyers, and magazine editors. (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-10. Describe the difference between arts and crafts.

An art product is an object we admire strictly for its beauty or because it inspires an emotional reaction in us (perhaps bliss, or perhaps disgust). In contrast, we admire a craft product because of the beauty with which it performs some function (e.g., a ceramic ashtray or hand-carved fishing lures). A craft tends to follow a formula that permits rapid production. (5 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) 14-11. What is a cultural formula? Give an example.

The reliance on established plots and characters illustrates how mass culture churns out products that aim to please the average taste of a mass audience. Rather than being unique, they are predictable because they follow a well-defined pattern. Many popular art forms, such as detective stories or science fiction, follow a cultural formula in which familiar roles and props occur consistently. As members of the creative subsystem rely on these formulae, they tend to recycle images as they reach back through time for inspiration. (5 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) 14-12. Who are innovators? Early adopters? Laggards?

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

Early adopters share many of the same characteristics as innovators, but an important difference is their degree of concern for social acceptance, especially with regard to expressive products, such as clothing, cosmetics, and so on. (5 minutes, Chapter Objective 4, AACSB: Reflective Thinking) 14-13. What is the difference among the terms fashion, a fashion, and in fashion?

Fashion is the process of social diffusion by which a new style is adopted by some group(s) of consumers. In contrast, a fashion (or style) refers to a particular combination of attributes. In addition, to be in fashion means that some reference group positively evaluates this combination. Thus, the term Danish Modern refers to particular characteristics of furniture design (i.e., a fashion in interior design); it does not necessarily imply that Danish Modern is a fashion that consumers currently desire. (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-14. Summarize some of the major approaches we can use to understand fashion from the perspectives of psychologists, economists, and sociologists. .

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

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

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

Rare items command respect and prestige.

The collective selection model we discussed previously is an example of a sociological approach to fashion. This perspective focuses on the initial adoption of a fashion (idea, style, etc.) by a subculture and its subsequent diffusion into society as a whole. Such diffusion often begins with youth subcultures like the hip-hop segment. (15 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-15. What is an example of a meme?

A meme is an idea or product that enters the consciousness of people over time— examples include tunes, catch phrases (“You’re fired!”), or styles such as the Hush Puppy. (5 minutes, Chapter Objective 14-4, AACSB: Reflective Thinking) 14-16. What is the trickle-down effect? List some reasons why it is no longer as valid as it used to be.

Trickle-down theory, first proposed in 1904 by Georg Simmel, has been one of the most influential approaches to understanding fashion. It states that there are two conflicting forces that drive fashion change. First, subordinate groups try to adopt the status symbols of the groups above them as they attempt to climb up the ladder of social mobility. Dominant styles thus originate with the upper classes and trickle down to those below. However, this is where the second force kicks in: Those people in the superordinate groups are constantly looking below them on the ladder to ensure that they are not imitated. They respond to the attempts of lower classes to “impersonate” them by adopting even newer fashions. These two processes create a self-perpetuating cycle of change—the machine that drives fashion. It is less valid than it used to be because it is difficult to identify a stable upper/lower class. Class structure cannot account for the wide range of styles available, which are due to technological advances that allow the masses to learn about style simultaneously. Consumers are more influenced by opinion leaders who are similar to them. In addition, lower classes may influence upper classes, as they feel free to innovate and take risks. (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-17. What is the difference between a fad, a fashion, and a classic fashion life cycle?

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

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classes of fashion by considering the relative length of the fashion acceptance cycle.

Many fashions exhibit a moderate cycle, taking several years to work their way through the stages of acceptance and decline; others are extremely long-lived or short-lived. A classic is a fashion with an extremely long acceptance cycle. It is in a sense “antifashion” because it guarantees stability and low risk to the purchaser for a long period. A fad is a very short-lived fashion. Relatively few people usually adopt a fad product. Adopters may all belong to a common subculture, and the fad “trickles across” members but rarely breaks out of that specific group. (15 minutes, Chapter Objective 143, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE Discussion Questions 14-18. “Disney World is a sacred place.” Do you agree? Why or why not?

This question should be used to make sure that students understand the definition of “sacred” as it applies in consumer behavior (objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe). Once they understand this, most all should agree that Disneyland is a sacred place to some . . . to many. (5 minutes, Chapter Objective 14-7, AACSB: Reflective Thinking) 14-19. Describe the three stages of the rite of passage associated with graduating from college.

The rite of passage includes three phases: 1. Separation—detached from original group (e.g., college freshman leaves home).

2. Liminality—person is literally in between statuses (e.g., freshman during orientation).

3. Aggregation—person reenters society after rite of passage (e.g., goes home for Christmas as a “college veteran”).

For the college graduation example: 1. Students should recognize the college graduate’s separation involves detachment from his or her college friends, roommates, fraternity brothers/sorority sisters, and professors.

2. During the liminality phase, the college graduate is in between stages—college and career—and experiences a period of adjustment to the new environment.

3. Aggregation occurs when the graduate becomes part of the professional society, identifying with his or her career rather than college. (10 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-20. Have you ever given yourself a gift? If so, why did you do it and how did you decide what to get?

Research has shown that the most common reasons that people buy themselves gifts are to reward themselves for good deeds, to console themselves after negative events, or to .

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motivate themselves to accomplish some goal. As students respond, relate their responses to these reasons for buying self-gifts. (5 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-21. Identify modern-day myths that corporations create. How do they communicate these stories to consumers?

Student responses will vary based on the myths they identify. A myth is a story with symbolic elements that represents a culture’s ideals. The story often focuses on some kind of conflict between two opposing forces, and its outcome serves as a moral guide for listeners. In this way, a myth reduces anxiety because it provides consumers with guidelines about their world. Most members of a culture learn these stories, but usually we don’t really think about their origins. In some cases, marketers adapt these stories and (perhaps unconsciously) pattern their messages along a mythic structure. Myths serve four interrelated functions in a culture: metaphysical (they help explain the origins of existence), cosmological (they emphasize how components of the universe are interrelated), sociological (they maintain social order), and psychological (they provide models of personal conduct). (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-22. In the last few years our culture has been shocked by revelations regarding sexual harassment by famous artists, actors, executives, and others as the #MeToo movement accelerated. Prominent companies including Volkswagen, Mercedes-Benz, Hugo Boss, Bayer, IBM, and Kodak had ties to Nazi Germany. Aetna and New York Life profited by selling insurance policies to slaveowners. Yet we value their products today. To what extent can or should we separate the creator from the creation? Should we buy products or services that are “tainted” by their owners’ or companies’ unsavory past actions?

Student responses will vary based on their own personal beliefs. It is important to cover in this question the fact that what is acceptable (or normal) in a culture may very well change over a period of time. Socially (culturally) acceptable actions of one era may not necessarily be viewed in the same light by a later era. However, that does not mean that the actions of the past are to be viewed through the lens of today. (15 minutes, Chapter Objective 14-1, AACSB: Reflective Thinking, Ethical Understanding and Reasoning Abilities) 14-23. “Christmas has become just another opportunity to exchange gifts and stimulate the economy.” Do you agree? Why or why not?

To some extent the answer to this question will reflect each student’s upbringing, their appreciation of this religious event and season, their sense of tradition, and their cynicism. Marketers and consumers are both to blame for the over-commercialization of the season. Many, however, still regard this season as one of the most religious on the calendar. Have students talk about Christmas traditions. Most can remember more traditions than details of presents they have received or given. Ask them to describe how their family feels about Christmas (from their mother and father’s standpoint). Is the .

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Christmas season a time for family renewing and gathering (most will say yes)? This question should provide for a lively debate. Be sure to include the marketing aspects of the season and whether this is right or wrong. (10 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-24. Bridal registries specify very clearly the gifts that the couple wants. How do you feel about this practice? Should people actually specify what you should buy for them, or should a gift be a more personal expression from you?

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

Although, because this practice has become so culturally accepted, younger people will probably see nothing wrong with it. However, traditionally, the nature of gift giving was more symbolic in nature. Part of gift giving is developing or reinforcing a symbolic relationship, but now the process is much more automated. (10 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-25. Rituals can provide us with a sense of order and security. In a study of the drinking rituals of college students, the researchers found that drinking imposed order in students’ daily lives—from the completion of assignments to what and when to eat. In addition, ritualizing an activity such as drinking provided security and fellowship at a time fraught with confusion and turbulent change. Obviously, though, there is a dark side to drinking rituals. Consider the highly publicized death of a Massachusetts Institute of Technology student who died three days after falling into an alcohol-induced coma as the result of a fraternity pledge. Indeed, binge drinking is probably the most widely practiced ritual among college students; it has been described as the most significant health hazard on college campuses today. What role does drinking play in the social life on your campus?

Based on your experience, how does it fit into rituals of college life? Should these practices be changed? If so, how?

Student responses will likely mirror the research on this topic; the majority of students at some point in their college experience are involved in ritualistic drinking. Thus, most everyone will have something to share—some (obviously) more than others will. Their responses to whether or not such practices should be changed will likely be based on whether or not they have had or have witnessed any negative experiences associated with drinking. (15 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-26. Movie companies often conduct market research when they produce big-budget films. If necessary, they will reshoot part of the movie when viewers say they do not like it. Some people oppose this practice: they claim that movies, or books, songs, plays, or other artistic endeavors should not conform to what the market wants, lest they sacrifice their integrity. What do you think?

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

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in light of the marketing concept should generate an interesting discussion. (15 minutes, Chapter Objective 14-4, AACSB: Reflective Thinking) 14-27. Boots with six-inch heels were a fashion rage among young Japanese women a few years ago. Several teens died after they tripped over their shoes and fractured their skulls.

However, followers of the style claimed they are willing to risk twisted ankles, broken bones, bruised faces, and other dangers the platform shoes caused. One teenager said, “I’ve fallen and twisted my ankle many times, but they are so cute that I won’t give them up until they go out of fashion.” Many consumers around the world seem to be willing to suffer for the sake of fashion. Others argue that we are merely pawns in the hands of designers who conspire to force unwieldy fashions down our throats. What do you think?

What is and what should be the role of fashion in our society? How important is it for people to be in style? What are the pros and cons of keeping up with the latest fashions?

Do you believe that we are at the mercy of designers?

Another question is very opinion oriented. Responses will largely be based on how consumers view fashion and how willing they are to sacrifice to incorporate fashion into their lives. The “should” element of this question may bring forward some idealistic responses. Most students will likely take the approach that consumers are free to do as they choose, and that fashion “should” be what consumers want it to be. (15 minutes, Chapter Objective 14-10, AACSB: Reflective Thinking) APPLY 14-28. People in Thailand are preoccupied with supernatural forces. One common sigh is a “spirit house,” a miniature dwelling intended for protective ghosts. Some include electric wiring and indoor lighting: you will even find them in 7-Eleven convenience stores throughout the country. Thais spend about $63 million per year on visits to fortune tellers. Stores sell amulets for good luck next to breath mints, and horoscope books next to junk food. There are YouTube channels devoted to fortunte telling and computre programs like “Feng Shui Master.” Which supposedly helps to predict the future of gold prices.

How do consumers in the United States compare? Interview people you know about any “magic” items they own (e.g. how many of your friends have a lucky charm or hang a St. Christopher medal or some other object from their rearview mirrors?) Get them to describe their feelings about these objects and tell how they aquired their magical properties. How would they feel if they lose these special items?

The nature of “magic” as described in the text simply refers to the fact that marketers of many different types of goods will imply that their product will result in extraordinary effects. Most people will probably refer to items in their possession around which they themselves have somehow developed a sense of the supernatural. Be sure to make special note of any student who responds with an example that demonstrates that a company has actually played a role in the development of such perceptions. (60 minutes, Chapter Objective 14-7, AACSB: Reflective Thinking) .

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14-29. Interview people you know who collect some kind of object. How do they organize and describe their collections? Do you see any evidence of sacred versus profane distinctions?

The very nature of collecting should result in people applying some element of sacredness to the items being collected. However, there will likely be a range, with items that are more sacred and items that are less sacred. (45 minutes, Chapter Objective 14-7, AACSB: Reflective Thinking) 14-30. Ask friends to describe an incident where they received a gift they thought was inappropriate. Why did they feel this way, and how did this event influence the relationship between them and the gift giver?

According to the text, research has shown that gift giving is more exchange-oriented (instrumental) in the early stages of a relationship but becomes more altruistic as the relationship develops. In addition, third parties can exert strong influences on gift giving as others influence people in their social network when selecting gifts for recipients. So, student responses to this question should depend upon which stage of a relationship the gift giving took place in. However, given that this perspective on gift giving identifies a social and relationship component, a gift perceived as inappropriate will certainly affect the relationship between the receiver and the giver. (30 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-31. How might the rise of peer-to-peer music sharing influence the structure of the music CPS? One guess is that this method erodes the dominance of the big labels because listeners are more likely to access music from lesser-known groups. Survey your friends to determine whether this in fact is happening. Do they listen to a wider variety of artist, or simply download more from the big-time groups?

Student’s responses will vary based on their taste in music and where they stream music.

(20 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 14-32. Read several romance or action novels to see if you can identify a cultural formula at work. Do you see parallels among the roles different characters play (e.g., the hero, the evildoer, the temptress, etc.)?

Romance novels are an extreme case of a cultural formula. Computer programs even allow users to “write” their own romances by systematically varying certain set elements of the story. Given that, it should be easy for students to define a cultural formula by simply scanning various romance novels. (360 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking) 14-33. U.S. television inspires knockoffs around the world. But to be fair, many U.S. viewers don’t realize that U.S. reality show hits such as Big Brother and American Idol started out as European concepts that U.S. producers imported. In fact, the U.K. version of Big Brother briefly went off the air after a fight broke out and housemates threatened to kill .

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each other. In contrast, a Malaysian show that borrows the American Idol format is called Imam Muda (Young Leader). Contestants debate religious topics and recite passages from the Koran. The winner doesn’t get a recording contract. Instead, he receives a job as an imam, or religious leader; a scholarship to study in Saudi Arabia; and an all-expensespaid pilgrimage to Mecca, Islam’s holiest city. See if you can identify foreign versions of reality shows. How have the creators of these programs adapted them to appeal to local customs?

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

(12.5 hours, Chapter Objectives 14-2 and 14-4, AACSB: Reflective Thinking 14-34. The chapter states that experience-oriented gifts (e.g., lessons) do more to strengthen the relationship between givers and receivers than do material gifts. How might a marketer in the travel industry apply this insight to his or her own efforts?

Experiential gifts (e.g., sky-diving lessons) strengthen relationships between givers and receivers more than material gifts (e.g., a set of wine glasses), regardless of whether the recipient actually consumes the gift in the company of the gift giver. This fact is the key to answering this question. Just providing the gift, whether or not the receiver actually “cashes it in” goes a long way to building goodwill. (C10 minutes, Chapter Objective 142, AACSB: Reflective Thinking) MyLab 14-35. Identify the ritual elements of a football game.

A ritual is a set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically. A football game provides the perfect setting to practice and experience multiple rituals including dressing up for the game in the colors of your “home” team, chanting, and the consumption of food and drink in a group atmosphere to name a few. Many more examples exist. (15 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) 14-36. The chapter states that a culture is a society’s personality. If your culture were a person, how would you describe its personality traits?

Responses to this question will vary greatly. (10 minutes, Chapter Objective 14-1, AACSB: Reflective Thinking)

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CASE STUDY TEACHING NOTES Chapter 14 Case Study: Twist, Lick, and Dunk! Does it Make Oreos Taste Better?

Summary of Case Many Oreo consumers follow the “Twist, Lick, and Dunk” practice, which is an example of a food ritual. One study found that these food rituals may actually enhance our enjoyment of the food we eat. Mondelēz, the maker of Oreos, has invested heavily in promotional activity designed to help us remember how to eat its cookie, including TV and social media ads.

Suggested Answers for Discussion Questions CS 14-1. What other food categories or brands have rituals associated with them? If you are a participant in one or more of those rituals, do you agree with the study referenced above that this ritual increases your enjoyment of the food?

You can help students with ideas by suggesting categories like fast food or candy or foods associated with meals like breakfast. Students should consider whether the rituals increase their interest in the food, create a memory associated with eating it, or just makes it more fun, particularly when others are participating in the same ritual along with them. (10 minutes, Chapter Objective 143, AACSB: Reflective Thinking) CS 14-2. Choose a food brand without an apparent ritual and come up with one that could be used in a promotional activity. (No dunking allowed.)

Student’s answers will vary depending on the brand chosen. Rituals could involve preparation, how the food is served, cut, folded, speed of consumption, etc. (10 minutes, Chapter Objective 14-3, AACSB: Application of Knowledge) CS 14-3. How could Oreo assess the impact of the twist, lick, and dunk ritual? Create a simple experiment that could provide Oreo marketers with data to judge the role that the ritual plays in some marketing metric of interest (e.g., brand loyalty, likely increased frequency of purchase, or differentiation from competitive offerings).

Subjects could be presented with Oreos and competitive cookies and could be asked how they would describe the optimal way to eat each to see how pervasive the ritual is.

Another approach would be to ask which of the cookies is associated with Twist, Lick, and Dunk. Subjects could be presented with Oreos and asked to describe the ritual/saying associated with the brand. (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

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

This exercise will increase student familiarity with rituals and ritual artifacts. The funeral business has high margins because of the perceived importance of the rituals. (40 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking,)

2.

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

Similar to #1, this will increase student familiarity with rituals and ritual artifacts. You can assign both and have students do a comparison between the two industries. (40 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

3.

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

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

Students will have different opinions about whether it is appropriate to market the tradition that makes the place sacred. (20 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

4.

Have students interview two people from two different foreign cultures. Have the students ask what major differences they see between the cultural values in their country and those in the American culture. Ask the students to explain these to the class.

American core values are likely to include: freedom, youthfulness, achievement, materialism, activity, conformity, individuality, efficiency, etc. Core values from the other culture will vary by culture. (10 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking)

5.

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

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Rituals might include stopping at the food court, throwing change in the fountain to make a wish, saying grace before eating, buying popcorn and Junior Mints, etc. Some of the rituals will be easier to commercialize. (10 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) 6.

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

Some students may think of binge drinking as a rite of passage and part of the collegiate process. It would be difficult for a college to change this cultural norm in many cases since it is reinforced by other students’ behavior and in the media (TV, movies, advertising). Universities try to change the ritual through education and by offering alternative activities. (20 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking)

7.

Each student should identify and describe a possession that most people would consider ordinary, but to them is sacred. Have them describe how this sacredness developed.

Student should select a possession that is set apart and special in some way. Look for students to explain how the possession became objectified and use the discussion to reinforce the concept of contamination, where objects we associate with sacred events or people become sacred in their own right. (10 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

8.

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

Many buyers will be centralized, so students may have more luck with these questions at a small, privately owned boutique than at a chain or department store. Look for students to relate the responses to the fashion life cycle discussed in the chapter. (30 minutes, Chapter Objective 14-5, AACSB: Reflective Thinking)

9.

Go to a contemporary magazine and find illustrations of high and low culture. Indicate what type of consumers might be attracted to these different messages.

High culture is elite, and low culture is popular culture. Students may relate the consumers who are attracted to each type of culture to the earlier discussion of social class (Chapter 12), but should also recognize the lines between the two types of culture are blurred in the United States. (20 minutes, Chapter Objective 14-1, AACSB: Reflective Thinking)

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Group Projects 1.

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

Students are likely to argue that social networking is profane since it has been adopted by the masses and is not special. They are likely to have differences of opinions about the positive and negative effects, but should recognize the ability to constantly update others on what you are doing helps connect people. However, it also may lead to over sharing, which is particularly problematic when the information or visual shared has a negative impact on the sharer’s reputation. (30 minutes, Chapter Objective 6, AACSB: Reflective Thinking)

2.

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

Look for students to label the custom, more and convention. Customs are norms that control basic behaviors, mores are customs that involve taboos/forbidden behavior and have a strong moral overtone, and conventions are norms that regulate how we conduct our lives. (10 minutes, Chapter Objective 4, AACSB: Reflective Thinking)

3.

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

Sacred symbols often become sacred because of an event or an individual that rubbed off on the symbol. Students should recognize that some symbols that are on the list might be categorized as profane if they are desacralized. (20 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

4.

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

This project is an extension of Individual Project #2. Students should do outside research on the rituals and the role of subculture in the rituals. (40 minutes, Chapter Objective 143, AACSB: Reflective Thinking)

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5.

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

Have the class vote on the best idea.

You can bring up George’s holiday on Seinfeld, Festivus, to help get students thinking about what types of holidays might be proposed. (20 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

6.

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

Reality engineering occurs as elements of popular culture are appropriated by marketers and converted to vehicles for promotional strategies. Product placement is a popular way to engage in reality engineering. Look for students to include all elements of the marketing mix, including distribution and pricing, in their responses. (40 minutes, Chapter Objective 14-3, AACSB: Reflective Thinking)

ONLINE ASSIGNMENTS Individual Assignments 1.

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

The website sells products for shaving, which most men do, but also encourages men to have a daily regimen for facial care, for fitness, for anti-aging, and for grooming other body hair. It provides information and sells products to support these grooming rituals.

(10 minutes, Chapter Objective 14-4, AACSB: Reflective Thinking) 2.

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

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

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

(10 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) 3.

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

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Students will be able to observe that the communications and the products (including packaging and flavors, in some cases) vary by country. Communications may reflect differences in values and language. Students can also look at the country-specific Facebook pages.

(20 minutes, Chapter Objective 14-6, AACSB: Reflective Thinking) 4.

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

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

(20 minutes, Chapter Objective 14-4, AACSB: Reflective Thinking) Group Assignments 1.

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

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

(30 minutes, Chapter Objective 14-5, AACSB: Reflective Thinking) 2.

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

(20 minutes, Chapter Objective 14-2, AACSB: Reflective Thinking) .

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