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134 Part 2 Understanding Buyers and Markets

Contemporary Marketing Update 2015 16th


Edition Boone Kurtz ISBN 1305081846
9781285561219
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CHAPTER 6
CONSUMER BEHAVIOR

CHAPTER OVERVIEW

Why do people buy one product and not another? Finding answers to this question is at the center of
every marketer’s job. The answers—and there are many—aren’t always obvious. But they directly affect
every aspect of marketing strategy, from the development of a product, its pricing, its presentation to the
target audience, and its promotion to various segments.

Marketers who plan to succeed with today’s consumers need to understand how their potential market
behaves. This calls for an understanding of consumer behavior—the process through which consumers
(and business buyers) make purchase decisions, from toothbrushes to autos to vacations. The study of
consumer behavior builds on an understanding of human behavior in general. In their efforts to
understand why and how consumers make buying decisions, marketers borrow extensively from the
sciences of psychology and sociology.

This chapter focuses on individual purchasing behavior, including the personal and interpersonal
determinants of consumer behavior. The chapter then discusses the importance of changing or modifying
components of consumers’ attitudes about their products to gain a favorable attitude and purchase
decision. It then elaborates on the consumer decision process that helps marketers to design effective
marketing strategies.
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 135

Changes in the Updated Edition

A number of new features have been added to this edition:

• The Opening Vignette and Evolution of a Brand talks about American Express’ presence on
Twitter and Facebook since 2009, when the company first got on board with the goal of providing
additional customer service and merchant assistance through new digital avenues. The credit
card giant is now found on Foursquare, YouTube, LinkedIn, and Google+ as well. Customer
service is still the aim. AmEx recently added Twitter to the “Sync” program it started with
Foursquare and Facebook several months ago. Now cardholders who tweet can get exclusive
“couponless” deals at retailers like Whole Foods, Best Buy, H&M, Cheesecake Factory, Sports
Authority, Ticketmaster, Zappos.com, and many others by simply including the appropriate
hashtag in a tweet. AmEx promises not to share any personal information about cardholders who
sign up for the Sync program on Twitter, although it gives participating merchants general
information about how consumers responded to the offer, what they spent on average, and who
became a repeat customer within a specified time frame. For more, refer to “American Express in
Sync with Social Media.”

• Solving an Ethical Controversy analyzes whether facial recognition technology should go


incognito. Facial recognition mechanisms at store entrances will help ensure that customers see
only digital and mobile ads that matter to them. But, privacy advocates are concerned about
potential misuse of the technology. The important question, “Is it acceptable for companies to use
facial recognition technology without telling customers?” is discussed. The pros and cons of the
issue are discussed in "Should Facial Recognition Technology go Incognito?"

• Marketing Success illustrates how, Klout, a young San Francisco startup tracks what is in effect
a person’s “social credit score” by analyzing the person’s online influence and the power of the
person’s network. Nike, Disney, HP, and Audi are among Klout’s first customers. The company
puts these firms in touch with relevant influencers who have signed up with it, and then it is up to
the marketers to offer deals they hope will persuade their influencers to generate the appropriate
online buzz. The challenge, strategy and outcome are included in “Klout Measures Your, Well,
Clout.”

• Career Readiness provides tips on how to avoid major distractions at work. It gives a few tips for
getting your focus back when phone calls, emails, visitors, etc. distract you from your work.
Insights, details and tips are included in “How to Avoid Major Distractions at Work?”

• Chapter Case 6.1 talks about PepsiCo’s drop to the third place in the North American beverage
market. In an effort to change its corporate fortune, PepsiCo has trimmed its costs and added
$500 to $600 million to its beverage advertising and marketing budget. It even hired Eva Longoria
and Nicki Minaj as its new spokespeople. Having realized that consumers prefer healthier
beverages including juices, teas, flavored water, and sports drinks to carbonated soft drinks,
PepsiCo is pumping up its Gatorade brand. Gatorade will now link itself to a wider range of
customers. PepsiCo recently introduced a product extension of Gatorade. See “Pepsi-Cola Gets a
Boost from Healthier Beverages.”

• Collaborative Learning Exercises are provided in several areas related to consumer behavior:
Cultural Values and Consumer Behavior, Attitudes and Consumer Behavior, and Self-Concept
and Consumer Behavior.

• Video Case 6.2 Synopsis includes an overview of the importance of studying consumer behavior
at Ski Butternut.
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
136 Part 2 Understanding Buyers and Markets

LECTURE OUTLINE

The Opening Vignette and Evolution of a Brand—“American Express in Sync with Social Media.”
What is its aim? The hashtag qualifies a customer for a discount irrespective of what the
customer says, Is this right?

Chapter Objective 1: Define consumer behavior, and describe the role it plays in
marketing decisions.
Key Terms: consumer behavior
PowerPoint Basic: 4
PowerPoint Expanded: 6
1. Consumer behavior
a. Developing a marketing strategy requires an
understanding of the process by which consumers buy
goods and services for their own use and organizational
buyers purchase business products for their organizations
b. Consumer behavior is the process through which the
ultimate buyer makes purchase decisions
2. The study of consumer behavior builds on an understanding of
human behavior
a. Marketers borrow from the sciences of psychology and
sociology
b. Kurt Lewin’s proposition rewritten to apply to consumer
behavior states that B = f(I, P)
c. Consumer behavior (B) is a function (f) of the interactions
of interpersonal influences (I)—such as culture, friends,
classmates, coworkers, and relatives—and personal
factors (P) such as attitudes, learning, and perception

Assessment check questions

1. Why is the study of consumer behavior important to marketers? If


marketers can understand the behavior of consumers, they can offer the
right products to consumers who want them.

2. Describe Kurt Lewin’s proposition. Kurt Lewin proposed that behavior


(B) is the function (f) of the interactions of personal influences (P) and
pressures exerted by outside environmental forces (E). This research
sheds light on how consumers make purchase decisions.
Chapter Objective 2: Describe the interpersonal determinants of consumer behavior:
cultural, social, and family influences.
Key Terms: culture, subcultures, reference groups, opinion leaders
PowerPoint Basic: 5-12
PowerPoint Expanded: 7-23
1. Interpersonal determinants of consumer behavior
a. Every buying decision is influenced by a variety of external
and internal factors
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 137

b. Consumers often decide to buy goods and services based


on what they believe others expect of them
c. Marketers recognize three broad categories of
interpersonal influences
i. Cultural
ii. Social
iii. Family influences
2. Cultural influences
a. Culture can be defined as the values, beliefs, preferences,
and tastes handed down from one generation to the next
i. It is the broadest environmental determinant of
consumer behavior
ii. Marketing strategies that work in one country may
be offensive or ineffective in another, especially
where population continues to diversify at a rapid
rate
b. Core values in U.S. culture
i. Some cultural values change over time, but core
values do not
ii. Strong American core values include work ethic,
desire to accumulate wealth, and importance of
family and home life
iii. Other core values include education, individualism,
freedom, youth, health, volunteerism and efficiency
iv. Values that change over time also have their
effects (As technology rapidly changes the way
people exchange information, consumers adopt
values that include communicating with anyone,
anytime, anywhere in the world)
c. International perspective on cultural influences
i. Cultural differences are particularly important for
international marketers
ii. Marketing strategies that prove successful in one
country often cannot extend to other international
markets because of cultural variations
d. Subcultures
i. Cultures are not homogeneous groups with
universal values, even though core values tend to
dominate
ii. Each culture contains subcultures—groups with
their own distinct modes of behavior
iii. The U.S. is composed of significant subcultures
that differ by ethnicity, nationality, age, rural versus
urban location, religion, and geographic distribution
iv. America’s population is aging and is also becoming
Figure 6.1 Ethnic
more diverse
and Racial Minorities
as a Percentage of v. The three largest and fastest-growing U.S. ethnic
subcultures are Hispanics, African Americans, and
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
138 Part 2 Understanding Buyers and Markets

the Total U.S. Asians


Population. Which vi. Marketers need to be sensitive to the differences in
three groups make shopping patterns and buying habits of the
up the largest ethnic members of different subcultures
populations? Which
vii. As important as differences in national origin may
make up the
be, the differences in acculturation, or the degree
smallest? How can
to which newcomers have adapted to U.S. culture,
this information be
plays a vital role in consumer behavior
used by marketers?
e. Hispanic American consumers
i. The 52 million U.S. Hispanics in the U.S. are not a
homogeneous group
ii. They—or their parents and grandparents— come
from a wide range of countries, each with its own
culture
iii. Marketers should consider that Hispanics control
more disposable income than any other minority
group
f. African American consumers
i. The U.S. African American population stands at
more than 42 million people, with their buying
power set to top $1 trillion
ii. As with any other subculture, marketers must avoid
approaching all African American consumers in the
same way; demographic factors such as income,
age, language, and educational level must be
considered
iii. Most African Americans are descended from
families who have lived in the U.S. for many
generations, but some are recent immigrants
g. Asian American consumers
i. Marketing to Asian Americans many of the same
challenges as reaching Hispanics
ii. The country’s more than 14 million Asian
Americans are spread among culturally diverse
groups, many retaining their own languages
iii. This subculture consists of more than two dozen
ethnic groups, including Chinese, Filipinos, Indians,
Japanese, Koreans, and Vietnamese
iv. Each group brings its own language, religion, and
value system to purchase decisions
v. They wield nearly $700 billion in buying power
3. Social influences
a. Every consumer belongs to a number of social groups
i. Group membership influences an individual
consumer’s purchase decisions and behavior in
both overt and subtle ways
ii. Every group establishes certain norms of behavior
iii. Norms are the values, attitudes, and behaviors a
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 139

group deems appropriate for its members


iv. Norms can even affect nonmembers
v. Individuals who aspire to join a group may adopt its
standards of behavior and values
vi. Buying behavior is affected by differences in group
status and role
vii. Status is the relative position of any individual
member in a group
viii. Roles define behavior that members of a group
expect of individuals who hold specific positions
within that group
ix. People often make purchases designed to reflect
their status within a group, particularly when the
purchase is considered expensive by society
Marketing Success: x. As the economy fluctuates, searching for the best
value becomes the new norm—and status symbol
Klout Measures
Your, Well, Clout. b. The Asch phenomenon
How do companies i. Groups influence people’s purchase decisions
know who wields the more than they realize
most influence when ii. Most people adhere in varying degrees to the
it comes to product general expectations of any group they consider
endorsements or important, often without conscious awareness
recommendations? iii. The surprising impact of groups and their norms on
individual behavior has been called the Asch
phenomenon
iv. Psychologist S.E. Asch found that individuals
conformed to majority rule, even if it went against
their beliefs
c. Reference groups
i. Reference groups are those groups whose value
structures and standards influence a person’s
behavior
ii. Consumers usually try to coordinate their purchase
behavior with their perceptions of the values of
their reference groups
iii. Strong influence by a group on a member’s
purchase requires two conditions: the purchased
product must be one that others can see and
identify; and the purchased item must be
conspicuous and stand out as unusual
iv. Reference group influence can create “elastic
consumers”—consumers who make decisions to
save or splurge in the same economy
v. Children are especially vulnerable to the influence
of reference groups
d. Social classes
i. W. Lloyd Warner’s research identified six classes
within the social structures of both small and large
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
140 Part 2 Understanding Buyers and Markets

U.S. cities—upper-upper, lower-upper, upper-


middle, lower-middle, working class, and lower
class
ii. Class rankings are determined by occupation,
income, education, family background, and
residence location
iii. Income is not always the primary determinant of
class rankings
iv. Family characteristics, such as the occupations
and incomes of one or both parents, have been the
primary influences on social class
v. People in one social class may aspire to a higher
class and therefore exhibit buying behavior
common to that class rather than to their own
e. Opinion leaders
i. Opinion leaders are trendsetters within a reference
group who are likely to purchase new products
before others in the group and then share their
experiences and opinions via word of mouth
ii. Generalized opinion leaders are rare; instead,
individuals tend to act as opinion leaders for
specific products or services based on their
knowledge of and interest in those products
iii. Opinion leaders are found within all segments of
the population
iv. Information about goods and services may flow
from the Internet, television, or other mass media
to opinion leaders, and then from opinion leaders
to others
v. Sometimes information flows directly from media
sources to all consumers
vi. Some opinion leaders influence purchases by
others merely through their own actions
4. Family influences
a. Most people are members of at least two families during
their lifetimes—the ones they are born into and those they
eventually form later in life
i. The family group is perhaps the most important
determinant of consumer behavior because of the
close, continuing interactions among family
members
ii. Each family typically has norms of expected
behavior and different roles and status
relationships for its members
b. According to the U.S. Census Bureau, the structure of
families has changed greatly over the last century
i. Only about half of all households are headed by
married couples
ii. There has been an increase in households headed
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 141

by same-sex couples
iii. Women are having fewer children, giving birth later
in life, and spacing their children farther apart
iv. More women are choosing to live alone, with or
without children
v. More senior citizens are living alone or without
younger generations present in their homes
c. Marketers describe the role of each spouse in a household
in terms of four categories:
i. Autonomic role is seen when the partners
independently make equal numbers of decisions
ii. Husband-dominant role occurs when the husband
usually makes certain purchase decisions
iii. Wife-dominant role has the wife making most of
certain buying decisions
iv. Syncratic role refers to joint decisions
d. The increasing occurrence of the two-income family
means that women have a greater role in making large
family purchases
e. Studies of family decision making have shown that
households with two wage earners are more likely than
others to make joint purchasing decisions
f. Members of two-income households often do their
shopping in the evening and on weekends because of the
number of hours spent at the workplace
g. Shifting family roles have created new markets for a
variety of products
h. Goods and services that save time, promote family
togetherness, emphasize safety, or encourage health and
fitness appeal to the family values and influences of today
i. Children and teenagers in family purchases
i. Children and teenagers represent a huge market—
nearly 54 million strong
ii. They have significant influence over the goods and
services their families purchase

Assessment check questions

1. List the interpersonal determinants of consumer behavior. The


interpersonal determinants of consumer behavior are cultural, social, and
family influences.

2. What is a subculture? A subculture is a group within a culture that has


its own distinct mode of behavior.

3. Describe the Asch phenomenon. The Asch phenomenon is the impact


of groups and group norms on individual behavior.

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
142 Part 2 Understanding Buyers and Markets

Chapter Objective 3: Explain each of the personal determinants of consumer behavior:


needs and motives, perceptions, attitudes, learning, and self-concept theory.
Key Terms: need, motive, perception, stimulus factors, individual factors, perceptual screens,
subliminal perception, attitudes, learning, shaping, self-concept
PowerPoint Basic: 13-20
PowerPoint Expanded: 24-38
1. Personal determinants of consumer behavior
a. Consumer behavior is affected by a number of internal,
personal factors, in addition to interpersonal ones
b. Each individual brings unique needs, motives, perceptions,
attitudes, learned responses, and self-concepts to buying
decisions
2. Needs and motives
a. A need is an imbalance between the consumer’s actual
and desired states
i. A person who recognizes or feels a significant or
urgent need then seeks to correct the imbalance
ii. Marketers attempt to arouse this sense of urgency
by making a need “felt” and then influencing
consumers’ motivation to satisfy their needs by
purchasing specific products
b. Motives are inner states that direct a person toward the
goal of satisfying a need
3. Maslow’s hierarchy of needs
a. Psychologist Abraham H. Maslow identified five levels of
needs, beginning with physiological needs and
progressing to the need for self-actualization
i. A person must at least partially satisfy lower-level
needs before higher needs can affect behavior
ii. In developed countries, where relatively large per-
capita incomes allow most people to satisfy the
basic needs on the hierarchy, higher-order needs
may be more important to consumer behavior
iii. The five levels of needs are: physiological, safety,
social/belongingness, esteem, and self-
actualization
b. Physiological needs
i. Needs at the most basic level concern essential
requirements for survival, such as food, water,
shelter, and clothing
c. Safety needs
i. Second-level needs include financial or lifestyle
security, protection from physical harm, and
avoidance of the unexpected
ii. To gratify these needs, consumers may buy life
insurance, alarm systems, or retirement plans
Table 6.1 Marketing d. Social/Belongingness needs
Strategies Based on
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 143

Maslow’s Hierarchy i. Satisfaction of physiological and safety needs


of Needs. For each leads a person to attend to third-level needs—the
level, think of desire to be accepted by people and groups
several products or important to that individual
services (not already ii. To satisfy this need, people may join organizations
mentioned in the or programs to buy goods or services that make
table) that might them feel part of a group
satisfy that particular
e. Esteem needs
need. How might
these products or i. People have a universal desire for a sense of
services vary from accomplishment and achievement
individual to ii. They wish to gain the respect of others and even
individual as they exceed others’ performance once lower-order
determine what needs are satisfied
meets their needs? f. Self-actualization needs
For example, can i. At the top rung of Maslow’s ladder of human needs
the same product fill is people’s desire to realize their full potential and
one person’s find fulfillment by expressing their unique talents
physiological needs and capabilities
while also filling
another person’s ii. Companies that run exotic adventure trips and not-
esteem needs? for-profit organizations that invite paying volunteers
to assist in such projects as archaeological digs or
building homes for the needy appeal to these
needs
g. Maslow believes that a satisfied need no longer has to be
met
h. Critics have pointed out a variety of flaws in Maslow’s
reasoning—some needs can be related to more than one
level, and not every individual progresses through the
needs hierarchy in the same order
4. Perceptions
a. Perception is the meaning that a person attributes to
incoming stimuli gathered through the five senses—sight,
hearing, touch, taste, and smell
i. A buyer’s behavior is influenced by his or her
perceptions of a good or service
ii. Researchers now recognize that people’s
perceptions depend as much on what they want to
perceive as on the actual stimuli
b. A person’s perception of an object or event results from
the interaction of two types of factors:
i. Stimulus factors—characteristics of the physical
object such as size, color, weight, and shape
ii. Individual factors—unique characteristics of the
individual, including not only sensory processes but
also experiences with similar inputs and basic
motivations and expectations
c. Perceptual screens
i. The average American consumer constantly is

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
144 Part 2 Understanding Buyers and Markets

barraged with marketing messages


ii. A typical supermarket now carries 30,000 different
packages, each serving as a miniature billboard
vying to attract consumers’ attention
iii. More than 6,000 commercials are aired on network
TV each week
iv. As marketers compete for attention—and dollars—
they get more creative about where they place their
messages
v. The problem with many messages is they create
clutter in the minds of consumers, causing them to
ignore many promotional messages
vi. People respond selectively to messages that break
through their perceptual screens—the mental
filtering processes through which all inputs must
pass
vii. Doubling the size of an ad, using certain colors or
graphics, or developing unique packaging are
some techniques that marketers use to elicit a
positive response from consumers
viii. The psychological concept of closure—the human
tendency to perceive a complete picture from an
incomplete stimulus—also helps marketers create
messages that stand out
ix. Marketers have become more and more creative in
an effort to break through the barrier of clutter
x. Word-of-mouth is probably the oldest and the most
effective marketing technique in existence
xi. On the other end of the scale lie newer, high-tech
marketing tools
xii. These include virtual reality and social media
xiii. With selective perception at work screening
competing messages, it is easy to see the
importance of marketers’ efforts in developing
brand loyalty
xiv. Loyal customers simply tune out information that
does not match agree with their existing beliefs and
Solving an Ethical
expectations
Controversy
d. Subliminal perception
Should Facial
Recognition i. Subliminal perception is the subconscious receipt
Technology Go of incoming information
Incognito? ii. Subliminal advertising is aimed at the
Is it acceptable for subconscious level of awareness to circumvent the
companies to use audience’s perceptual screens
facial recognition iii. Although it is considered manipulative, it is
technology without exceedingly unlikely to induce purchasing except
telling customers? by people already inclined to buy
iv. There are three reasons for this: strong stimulus
factors are required just to get a prospective
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 145

consumer’s attention; only a very short message


can be transmitted; and individuals vary greatly in
their thresholds of consciousness
v. Thoughts and emotions, including those a person
may not be consciously aware of, play a vital role
in decision making, so marketers look for ways to
elicit emotions that motivate people toward a
purchase
vi. Facial recognition technology offers yet another
way of identifying and targeting specific consumers
5. Attitudes
a. Perception of incoming stimuli is greatly affected by
attitudes about the product, store, or salesperson
i. Attitudes are a person’s enduring favorable or
unfavorable evaluations, emotions, or action
tendencies toward an object or idea
ii. As they form over time through individual
experiences and group contacts, attitudes become
highly resistant to change
iii. Because favorable attitudes likely affect brand
preferences, marketers are interested in
determining consumer attitudes toward their
offerings
b. Attitude components
i. An attitude has cognitive, affective, and behavioral
components
ii. The cognitive component refers to the individual’s
information and knowledge about an object or
concept
iii. The affective component deals with feelings or
emotional reactions
iv. The behavioral component involves tendencies to
act in a certain manner
v. All three components maintain a relatively stable
and balanced relationship to one another
vi. Together they form an overall attitude about an
object or idea
c. Changing consumer attitudes
i. A favorable consumer attitude is vital to the
success of a marketing effort
ii. Marketers can approach this in one of two ways:
(1) By attempting to produce consumer attitudes
that will lead to the purchase of an existing product,
or (2) By evaluating existing consumer attitudes
and creating or modifying products to appeal to
these attitudes
iii. If consumers view a product unfavorably, the seller
might redesign the product, offer new or desired

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
146 Part 2 Understanding Buyers and Markets

options, or enhance service


d. Modifying the components of attitude
i. Attitudes frequently change in response to
inconsistencies among the three components
ii. The most common inconsistencies result when
new information changes the cognitive or affective
components of an attitude
iii. Marketers can modify attitudes by providing
evidence of product benefits and by correcting
misconceptions
iv. Marketers may also change attitudes by engaging
buyers in new behavior
v. Sometimes new technologies can encourage
consumers to change their attitudes
6. Learning
a. Marketing is concerned as seriously with the process by
which consumer decisions change over time as with the
current status of those decisions
i. Learning, in a marketing context, refers to
immediate or expected changes in consumer
behavior as a result of experience
ii. The learning process includes the component of
drive, which is any strong stimulus that impels
action
iii. Learning also relies on a cue—any object or signal
in the environment that determines the nature of
the consumer’s response to a drive
iv. A response is the individual’s reaction to a set of
cues and drives
v. Reinforcement is the reduction in drive that results
from a proper response
vi. As a response becomes more rewarding, it creates
a stronger bond between the drive and the
purchase of the product, likely increasing future
purchases by the consumer
b. Applying learning theory to marketing decisions
i. Shaping is the process of applying a series of
rewards and reinforcements to permit more
complex behavior to evolve
ii. Both promotional strategy and the product itself
play a role in the shaping process
iii. The first step in getting consumers to try the
product might be to use a cue—such as a free-
sample—as a shaping procedure
iv. The second step is to entice the consumer to buy
the item with little financial risk (for example using
a discount coupon enclosed with a free-sample)
v. The third step is to motivate the person to buy the
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 147

item again at a moderate cost (The only


reinforcement comes from satisfactory product
performance)
vi. The final test comes when the consumer decides
Career Readiness
whether to buy the item at its true price without a
How to Avoid Major discount coupon
Distractions at Work
7. Self-concept theory
a. Self-concept—a person’s multifaceted picture of himself or
herself—plays an important role in consumer behavior
b. The concept of self emerges from an interaction of many
of the influences—both personal and interpersonal—that
affects buying behavior
c. A person’s needs, motives, perceptions, attitudes, and
learning lie at the core of his or her conception of self
d. In addition, family, social, and cultural influences affect
self-concept
e. A person’s self-concept has four components:
i. Real self—an objective view of the total person
ii. Self-image—the way an individual views himself or
herself
iii. Looking-glass self—the way an individual thinks
others see him or her
iv. Ideal self—the image to which the person aspires
f. When making purchasing decisions, consumers likely will
choose products that move them closer to their ideal self-
images

Assessment check questions

1. Identify the personal determinants of consumer behavior. The


personal determinants of consumer behavior are needs and motives,
perceptions, attitudes, learning, and self-concept theory.

2. What are the human needs categorized by Abraham Maslow? The


human needs categorized by Abraham Maslow are physiological, safety,
social/belongingness, esteem, and self-actualization.

3. How do perception and learning differ? Perception is the meaning that


a person attributes to incoming stimuli. Learning refers to immediate or
expected changes in behavior as a result of experience.

Chapter Objective 4: Distinguish between high-involvement and low-involvement


purchase decisions.
Key Terms: high-involvement purchase decisions, low-involvement purchase decisions
PowerPoint Basic: 22
PowerPoint Expanded: 39, 40
1. The consumer decision process
a. Although they might not be aware of it, consumers
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
148 Part 2 Understanding Buyers and Markets

complete a step-by-step process in making purchase


decisions
b. The time and effort spent devoted to a particular
purchasing decision depend on how important it is
i. Purchases with high levels of potential social or
economic consequences are said to be high-
involvement purchase decisions
ii. Routine purchases that pose little risk are low-
involvement purchase decisions
iii. Consumers generally invest more time and effort in
buying decisions for high-involvement products
than in those for low-involvement products
iv. Consumer go through the steps of the consumer
decision process for low-involvement products—
but on a more compressed scale
c. There are six steps in the consumer decision process:
problem or opportunity recognition, search, evaluation of
alternatives, purchase decision, purchase act, and
postpurchase evaluation
d. Such decisions permit the consumers to correct
differences between their actual and desired states

Assessment check questions

1. Differentiate between high-involvement decisions and low-involvement


decisions. High-involvement decisions have high levels of potential social
or economic consequences, such as selecting an Internet service
provider. Low-involvement decisions pose little financial, social, or
emotional risk to the buyer, such as a magazine or gallon of milk.

2. Categorize each of the following as a high- or low-involvement product:


toothpaste, laptop, apartment, cup of coffee, and cell phone service.
High-involvement products are the laptop, apartment, and cell phone
service. Low-involvement products are the toothpaste and cup of coffee.

Chapter Objective 5: Outline the steps in the consumer decision process.


Key Terms: evoked set, evaluative criteria, cognitive dissonance
PowerPoint Basic: 21
PowerPoint Expanded: 41-44
1. Problem or opportunity recognition
a. During the first stage in the decision process, the
Figure 6.2 Integrated consumer becomes aware of a gap between the existing
Model of the situation and a desired situation
Consumer Decision b. The marketer’s main task during this phase of decision
Process. Think of a making is to help prospective buyers identify and
large purchase you recognize potential problems or needs
have made and c. This task may take the form of advertising, promotions, or
outline what personal sales assistance
occurred at each of
2. Search
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 149

the six steps. Then a. During the second step in the decision process, a
think of a common consumer gathers information about the attainment of a
item you buy desired state
regularly and see if b. This search identifies different ways to solve the problem
you can define the
c. A high-involvement purchase might mean conducting an
six steps during
extensive search for information, whereas a low-
those purchase
involvement purchase might require much less research
decisions.
d. The search may cover internal or external sources of
information
e. An internal search is simply a mental review: Is there past
experience with the product? Was it good or bad?
f. An external search involves gathering information from all
kinds of outside sources—for instance, family, friends,
coworkers or classmates, advertisements or salespeople,
online reviews, and consumer magazines
g. The search identifies alternative brands or models for
consideration and possible purchase
i. The collection of alternatives a consumer actually
considers in making a purchase decision is known
in marketing as the evoked set
ii. In some cases, consumers already know which
brands merit further consideration; in others,
consumers make external searches to develop
such information
iii. The number of brands that are included in the
evoked set may vary, depending on the situation
and the person
h. Wanting to help consumers find their way through the
maze of choices, some firms have set up online sites
where shoppers can compare products
3. Evaluation of alternatives
a. The third step in the consumer decision process is to
evaluate the evoked set of options
b. Actually, it is difficult to completely separate the second
and third steps because some evaluation takes place as
the search progresses; consumers accept, distort, or reject
information as they receive it
c. The outcome of the evaluation stage is the choice of a
brand or product within the evoked set, or possibly a
decision to keep looking for alternatives
d. Evaluative criteria are the features a consumer considers
in choosing among alternatives
i. These criteria can either be objective facts or
subjective impressions
ii. Common criteria include price, brand name, and
country of origin
iii. Evaluative criteria can vary with the consumer’s
age, income level, social class, and culture

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
150 Part 2 Understanding Buyers and Markets

e. Marketers attempt to influence the outcome of this stage in


three ways:
i. They try to educate consumers about attributes
they view as important in evaluating a particular
class of goods
ii. They also identify which evaluative criteria are
important to an individual and attempt to show why
a specific brand fulfills those criteria
iii. They try to induce a customer to expand the
evoked set to include the marketed product
4. Purchase decision and purchase act
a. The search and alternative evaluation stages of the
decision process result in the purchase decision and the
actual purchase
b. At this stage, the consumer has evaluated each alternative
in the evoked set based on his or her personal set of
evaluative criteria and narrowed the alternatives down to
one
c. The consumer then decides where—or from whom—to
make the purchase
d. Sometimes this decision is part of the evaluation; perhaps
one seller is offering a better price or better warranty than
another
e. The purchase may be made online or in person at a retail
store
f. The delivery options might also influence the decision of
where to purchase an item
5. Postpurchase evaluation
a. The purchase act produces one of two results
i. The buyer feels satisfied at the removal of the
discrepancy between the existing and desired
states
ii. The buyer feels dissatisfied with the purchase
b. Sometimes consumers experience postpurchase anxiety
called cognitive dissonance
i. This anxiety results from an imbalance among a
person’s knowledge, beliefs, and attitudes
c. Dissonance is likely to increase:
i. as the dollar value of a purchase increases
ii. when the rejected alternatives have desirable
features that the chosen alternatives do not provide
iii. when the purchase decision has a major effect on
the buyer
d. Dissonance is more likely with high-involvement
purchases than with those that require low involvement
e. The consumer’s try to reduce dissonance by focusing on
the good reviews about their choices and ignoring

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 151

anything they find dissatisfactory


f. Marketers can help buyers reduce cognitive dissonance by
providing information that supports the chosen item
g. Advertisements that stress customer satisfaction also help
cognitive dissonance
h. A final method of dealing with cognitive dissonance is to
change products
i. The consumer may decide that one of the rejected
alternatives would have been the best choice, and vow to
purchase that item in the future

Assessment check questions

1. List the steps in the consumer decision process. The steps in the
consumer decision process are problem or opportunity recognition,
search, alternative evaluation, purchase decision, purchase act, and
postpurchase evaluation.

2. What is meant by the term evoked set? The evoked set is the number
of alternatives a consumer actually considers in making a purchase
decision.

3. What are evaluative criteria? Evaluative criteria are the features a


consumer considers in choosing among alternatives.

Chapter Objective 6: Differentiate among routinized response behavior, limited problem


solving, and extended problem solving by consumers.
PowerPoint Basic: 23-24
PowerPoint Expanded: 45-48
1. Classifying consumer problem-solving processes
a. Marketers recognize three categories of problem-solving
behavior:
i. Routinized response
ii. Limited problem solving
iii. Extended problem solving
b. The classification of a particular purchase within this
framework influences the consumer-decision process
2. Routinized response behavior
a. Consumers make many purchases routinely by choosing a
preferred brand or one of a limited group of acceptable
brands
b. This type of rapid consumer problem solving is referred to
as routinized response behavior
c. The consumer has already set evaluative criteria and
identified available options
d. External search is limited in such cases, which
characterize extremely low-involvement products
3. Limited problem solving
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
152 Part 2 Understanding Buyers and Markets

a. The consumer previously set evaluative criteria for a


particular kind of purchase but then encounters a new,
unknown brand
b. Such situations demand moderate amounts of time and
effort for external searches
c. Such limited problem solving is affected by the number of
evaluative criteria and brands, the extent of external
search, and the process for determining preferences
4. Extended problem solving
a. Extended problem solving results when brands are difficult
to categorize or evaluate
b. The first step is to compare one item with similar ones
c. The consumer needs to understand the product features
before evaluating alternatives
d. Most extended problem-solving efforts involve lengthy
external searches
e. High-involvement purchase decisions usually require
extended problem solving
5. Strategic Implications of Marketing in the 21st Century
a. Marketers who plan to succeed with today’s consumers
need to understand how their potential market behaves
b. Marketers constantly work toward changing or modifying
components of consumers’ attitudes about their products
to gain a favorable attitude and purchase decision
c. Marketers also refine their understanding of the consumer
decision process and use their knowledge to design
effective marketing strategies

Assessment check questions

1. What is routinized response behavior? Routinized response behavior


is the repeated purchase of the same brand or limited group of products.

2. What does limited problem solving require? Limited problem solving


requires a moderate amount of a consumer’s time and effort.

3. Give an example of an extended problem-solving situation. An


extended problem-solving situation might involve the purchase of a car
or a college education.

ANSWERS AND TEACHING NOTES TO CHAPTER EXERCISES

Chapter 5 Assurance of Learning Review

1. What are core values? Describe what you think are three core values of American society. Do you
consider these your core values as well?

©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 153

Answer: Cultural values that do not change over time are known as core values. The three core values of
the American society are work ethic, the desire to accumulate wealth, and the importance of family and
home life. The rest of the answer will vary.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Easy

2. Why is the concept of acculturation important to marketers who want to target such groups as
Hispanic, Asian, or African American consumers?

Answer: Acculturation is the degree to which newcomers have adapted to the U.S. culture. To marketers,
the differences in acculturation among consumers are as important as the differences in national origin.
Acculturation plays a vital role in consumer behavior. For instance, marketers should not assume that all
Hispanics understand or speak Spanish—or the same dialect of Spanish. In addition, Asians come from
a variety of countries, speak a wide range of languages, and eat different foods. Keeping all these in
mind will make the marketers’ task of targeting their desired customers easier.
Point Value: 1
BUSPROG: Diversity
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Easy

3. Describe a purchase that a consumer might make that would reflect his or her status within a particular
group. If that person’s status increased, how might the purchase selection change?

Answer: People often make purchases designed to reflect their status within a particular group,
particularly when the purchase is considered expensive by society. In the past few years, affluent
consumers have spent money on home renovations and exotic trips. Loyal customers of Apple products
are willing to pay top dollar for the latest gadgets, apps, and upgrades, not only because of their high
quality, but because of the status they reflect. If the person’s status increased, he might take membership
to clubs, or buy an apartment in a high-class locality to show his affiliation to such a class.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Moderate

4. What are the four role categories that describe each spouse in a household? Which role has changed
the most in recent years, and why?

Answer: 1. Autonomic role is seen when the partners independently make equal numbers of decisions.
Personal-care items would fall into the category of purchase decisions each would make for himself or
herself.
2. Husband-dominant role occurs when the husband usually makes certain purchase decisions. Buying a
generator or woodstove for the home is a typical example.
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
154 Part 2 Understanding Buyers and Markets

3. Wife-dominant role has the wife making most of certain buying decisions. Children’s clothing is a
typical wife-dominant purchase.
4. Syncratic role refers to joint decisions. The purchase of a house follows a syncratic pattern.
Numbers 2 and 3 on this list have changed dramatically over the years. The increasing occurrence of the
two-income family means that women have a greater role in making large family purchases, such as
homes, vacations, and automobiles.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Knowledge
Difficulty: Easy

5. According to Maslow, what is the difference between needs and motives? How can marketers make
use of these two concepts to lead consumers toward purchases?

Answer: A need is an imbalance between the consumer’s actual and desired states. A person who
recognizes or feels a significant or urgent need then seeks to correct the imbalance. Marketers attempt to
arouse this sense of urgency by making a need “felt” and then influencing consumers’ motivation to
satisfy their needs by purchasing specific products.
Motives are inner states that direct a person toward the goal of satisfying a need. The individual takes
action to reduce the state of tension and return to a condition of equilibrium.
Maslow believed that a satisfied need no longer has to be met. Once the physiological needs are met,
the individual moves on to pursue satisfaction of higher-order needs. Consumers periodically are
motivated by the need to relieve thirst and hunger, but their interests soon return to focus on satisfaction
of safety, social, and other needs in the hierarchy. But people may not always progress through the
hierarchy; they may fixate on a certain level. For example, consumers who live through an economic
downturn may always be motivated to save money in order to avoid financial insecurity—a second-level
need. Marketers who understand this can create opportunities for their firms by offering money-saving
goods and services.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Easy

6. What are the two factors that interact to create a person’s perception of an object? How is this
important for marketers?

Answer: Perception is the meaning that a person attributes to incoming stimuli gathered through the five
senses—sight, hearing, touch, taste, and smell. A person’s perception of an object or event results from
the interaction of two types of factors:
1. Stimulus factors—characteristics of the physical object such as size, color, weight, and shape
2. Individual factors—unique characteristics of the individual, including not only sensory processes but
also experiences with similar inputs and basic motivations and expectations
These perceptions are important for marketers because they need to understand how various consumers
within their target market might perceive (accurately or not) the good or service they are selling.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 155

Learning Objective: 6-3


Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Moderate

7. What are the three reasons that subliminal perception is unlikely to result in a purchase? Despite these
findings, what role is neuroscience now playing in the creation of marketing messages?

Answer: Subliminal perception is the subconscious receipt of incoming information.


The three reasons that subliminal perception is unlikely to result in a purchase are:
1. Strong stimulus factors are required just to get a prospective customer’s attention.
2. Only a very short message can be transmitted.
3. Individuals vary greatly in their thresholds of consciousness. Messages transmitted at the threshold of
consciousness for one person will not be perceived at all by some people and will be all too apparent to
others.
Despite the findings about subliminal advertising, however, neuroscientists know that thoughts and
emotions, including those a person may not be consciously aware of, play a vital role in decision making,
and marketers are looking to find ways to elicit emotions that motivate people toward a purchase.
Neuromarketing has already taken some concrete forms. Firms such as Yahoo!, Hyundai, and Microsoft
are using EEGs and MRIs—which measure brain activity—to study consumers’ responses to certain
stimuli associated with their products. Researchers at Frito-Lay used brain imaging to analyze the
packaging for its potato chips. They discovered that, while shiny packages triggered activity in the area of
the brain associated with guilt feelings, matte-beige packaging did not. This finding helped Frito-Lay
choose the matte-finish packaging.
Point Value: 1
BUSPROG: Analytic
DISC: Promotion
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Knowledge
Difficulty: Easy

8. What are the components of attitude? Explain the two ways in which marketers can try to change
consumer attitudes toward their products.

Answer: An attitude has cognitive, affective, and behavioral components. The cognitive component refers
to the individual’s information and knowledge about an object or concept. The affective component deals
with feelings or emotional reactions. The behavioral component involves tendencies to act in a certain
manner.
A favorable consumer attitude is vital to the success of a marketing effort. Marketers can approach this in
one of two ways:
1. By attempting to produce consumer attitudes that will lead to the purchase of an existing product.
2. By evaluating existing consumer attitudes and creating or modifying products to appeal to these
attitudes.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Knowledge
Difficulty: Easy

9. What is learning as it relates to marketing? Explain the four steps in the learning process and give
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
156 Part 2 Understanding Buyers and Markets

examples as they relate to marketing.

Answer: Learning, in a marketing context, refers to immediate or expected changes in consumer


behavior as a result of experience. Marketers want to motivate consumers to become regular buyers of
certain merchandise. Their first step in getting consumers to try the product might be to offer a free-
sample package that includes a substantial discount coupon for the next purchase. The second step is to
entice the consumer to buy the item with little financial risk. The discount coupon enclosed with the free-
sample prompts this action. The third step is to motivate the person to buy the item again at a moderate
cost. A discount coupon accomplishes this objective, but this time the purchased package includes no
additional coupon. The final test comes when the consumer decides whether to buy the item at its true
price without a discount coupon. Satisfaction with product performance provides continuing
reinforcement.
Point Value: 1
BUSPROG: Analytic
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Knowledge
Difficulty: Easy

10. For each of the following products, what steps might marketers take to transform them from a limited
problem-solving situation for a consumer to a routinized response situation?
a. gym membership
b. magazine or newspaper subscription
c. appointment at a hair salon
d. office supplies
e. oil change for a car

Answer: In order to successfully sell their goods and keep customers happy, marketers need to know if
their product or service will tend to require only limited time, little searching, and minimal shopping effort,
or whether a more thorough investigation and comparison will often be needed. To transform the
consumers to a routinized response situation, marketers can try these three ways: first, they try to
educate consumers about attributes they view as important in evaluating a particular class of goods.
They also identify which evaluative criteria are important to an individual and attempt to show why a
specific brand fulfills those criteria. Finally, they try to induce a customer to expand the evoked set to
include the marketed product. Students are expected to answer on these lines.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-6
Topic: A-head: The Consumer Decision Process
Bloom’s: Application
Difficulty: Moderate

Projects and Teamwork Exercises

1. Answer: Ask your students to choose an opinion leader. He/She should state reasons why that person
is an opinion leader. The goods, services, and products endorsed by the leader, if any, have to be listed
(celebrities may feature in a few ads, whereas, business icons or political leaders are not involved in such
endorsements). Finally, the student must present how the opinion leader has shaped consumer attitudes
toward various products.
Point Value: 1
BUSPROG: Reflective Thinking
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 157

DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

2. Answer: Ask your students to share their ideas about family purchases and who has influenced them
over the years and today. If they’re stuck, suggest to students that they might start by making a list of
family members, without even thinking of purchases. These can be people in the immediate family as
well as extended family. Then next to each name, write a product or service that they associate with that
person. This could be a clue as to how that person might affect their own purchasing behavior. Have
them discuss how these decisions change over time as they grow up, move out of the family home, start
their own households, etc. Are there certain elements (attitudes, beliefs, family values, etc.) that affected
them when they were young but no longer do so today? Do they affect them even now? Are there family
elements that they feel may continue to influence their thinking and purchasing decisions in years to
come, and probably won’t change much over time, regardless of their stage in life?
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

3. Answer: Student answers may vary. They can work individually or in groups. As we know that
marketers can modify attitudes by providing evidence of product benefits, by correcting misconceptions,
and by engaging buyers in new behavior; students are expected to make advertisements that would try
and change the cognitive or affective components of buyer’s attitude.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

4. Answer: Student answers will vary according to the products that they choose. The alternatives of the
product would vary according to the products they choose. However, students should be able to develop
an evoked set. Students can use a variety of methods to research alternatives. The methods would
depend on the type of product chosen. Finally, they should able to provide reasons why a particular
product was preferred over an alternative product.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-5
Topic: A-head: The Consumer Decision Process
Bloom’s: Application
Difficulty: Moderate

5. Answer: A low-involvement, routinized consumer product like toothpaste or detergent involves a


regular and routine purchase decision. A consumer makes many routine purchases by choosing a
preferred brand or one of a few acceptable brands in a quick method called routinized response
behavior. The consumer has already set evaluative criteria and identified options, so any further external
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
158 Part 2 Understanding Buyers and Markets

search is limited. It’s most common in buying very low-involvement products like those mentioned—
toothpaste or detergent. Have students discuss their ideas about how consumers might change from
their preferred brand. They’ll need to remember that consumers won’t take much time to weigh this
decision, so they’ll need to get attention quickly. They might include visual merchandising, new design or
packaging, unusual coloring, signage indicating a sale, etc.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-6
Topic: A-head: The Consumer Decision Process
Bloom’s: Application
Difficulty: Moderate

Critical-Thinking Exercises

1. Describe a group to which you belong—it might be a team, a club, or your roommates. Outline the
norms of the group, the major roles that different members play, and your own status within the group.
Have you ever sought to change your status? Why or why not?

Answer: Student answers may vary. Norms are the values, attitudes, and behaviors a group deems
appropriate for its members. Group members are expected to comply with these norms. They must
define the group norms on these lines.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

2. What are the two conditions that must exist for a consumer to be influenced by a reference group?
Have you ever made a purchase based on reference group influence? If so, what was the purchase and
how did you come to the decision to make it? If not, why not?

Answer: Student opinions will vary. Strong influence by a group on a member’s purchase requires two
conditions:
1. The purchased product must be one that others can see and identify.
2. The purchased item must be conspicuous; it must stand out as something unusual, a brand or product
that not everyone owns.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

3. Marketers point out that the five levels in Maslow’s hierarchy of needs are sometimes combined or
even bypassed by consumers making purchase decisions. Explain how each of the following could fulfill
more than one need:
a. A download of “We Are the World: 25 for Haiti”
b. A retirement investment account
c. Philosophy body wash
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6 Consumer Behavior 159

d. Dinner at a restaurant

Answer: Students are expected to give answers based on the five levels of needs, and provide sufficient
information that can defend their answers. A short discussion between groups can benefit the students to
point out different perspectives on Maslow’s theory, as well as the consumer decision process for each of
the product/service.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Challenging

4. What are some of the ways marketers can break through consumers’ perceptual screens? If you were
a marketer for a line of pet food for cats and dogs, what method might you use?

Answer: Doubling the size of an ad, using certain colors or graphics, or developing unique packaging are
some techniques that marketers use to elicit a positive response from consumers. The psychological
concept of closure also helps marketers create messages that stand out. Closure is the human tendency
to perceive a complete picture from an incomplete stimulus. Advertisements that allow consumers to do
this often succeed in breaking through perceptual screens. Word of mouth is probably the oldest
marketing technique in existence. It is also one of the most effective techniques to break through
consumer’s perceptual screens. Newer, high-tech marketing tools can also be used. These include virtual
reality and social media. The students are expected to take support of these hints and present ideas that
they would use for a line of pet foods, and break through the consumer’s perceptual screens.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

5. Suppose you are employed by a large electronics retailer, and a customer comes to you with cognitive
dissonance over the purchase of an expensive computer system from your store the previous week. How
would you work with the customer to help dispel that dissonance?

Answer: Marketers can help buyers reduce cognitive dissonance by providing information that supports
the chosen item. Advertisements that stress customer satisfaction also help reduce cognitive dissonance.
A final method of dealing with cognitive dissonance is to change products. The consumer may ultimately
decide that one of the rejected alternatives would have been the best choice, and vow to purchase that
item in the future. Marketers may capitalize on this with advertising campaigns that focus on the benefits
of their products.
The students should keep the above stated points in mind while dealing with the consumers and helping
them to dispel their dissonance.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-5
Topic: A-head: The Consumer Decision Process
Bloom’s: Application
Difficulty: Moderate
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
160 Part 2 Understanding Buyers and Markets

Ethics Exercises

Marketers of online news content are struggling to change consumer attitudes about whether or not it is
fair to charge for this content. While consumers are already willing to pay for movies, music, and games,
they don’t want to pay for news—whether it is from online versions of newspapers and magazines or
online feeds of radio and talk shows. Yet these news formats are created by paid professionals, and can
be expensive to produce. Increasingly, dailies in the United States have begun creating “pay walls” that
require readers, after a while, to pay for a digital subscription.

1. Express your own view. Is it ethical for marketers of online news content to begin charging consumers
for their services? If so, under what circumstances? If not, why or why not?
2. Go online to research different news sources—those that are free (such as the headlines offered on
Yahoo!) and those for which there is a charge (such as online magazine or newspaper subscriptions). Is
there a difference in features or the extent of services offered?
3. Based on your research and your knowledge of consumer behavior, what steps do you think news
marketers might take to change consumer attitudes about whether news should be offered for free?

Answer: Student answers will vary. Ask the students to first understand the point of view of consumers as
well as marketers. By taking an overall view of the situation, they may come up with reasons stating why
charging online content is ethical or unethical. Students can also state situations and instances when
charging content can be considered ethical.
Point Value: 1
BUSPROG: Ethics
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Comprehension
Difficulty: Moderate

Internet Exercises

1. Marketing to children. Advertising and other marketing efforts directed toward children have long
been controversial. Visit the website of Children’s Advertising Review Unit (CARU)—an organization
created by the advertising industry to address issues associated with marketing to children. What is the
purpose of CARU? What are the major issues regarding marketing to children? What have been some of
its recent actions? Why have some prominent marketers, such as The Coca-Cola Company, decided to
end advertising aimed at children? In your opinion, can industry self-regulation ever be an effective
substitute for government regulation?
http://www.caru.org

Answer: Student answers will vary. They should visit the website, as well as study the various issues
regarding marketing to children on the Internet. To bring a different perspective, students can find out the
ways marketers are trying to ensure self-regulation that minimize or eliminate controversial messages.
Point Value: 1
BUSPROG: Ethics
DISC: Research
Learning Objective: 6-2
Topic: A-head: Interpersonal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

2. Consumer decision making. Assume you’re in the market for both a new cell phone and cell phone
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Chapter 6 Consumer Behavior 161

provider. Follow the beginning stages in the consumer decision model described in the chapter—
recognition of problem or opportunity, search, and evaluation of alternatives. Use the Internet to aid in
your consumer decision process. Prepare a report summarizing your experience. Compare and contrast
your experience with an actual consumer purchase decision you recently made.

Answer: Student answers will vary. Student answers can focus on a particular problem or a need they
identify and searching for information on this particular problem, and for service providers who satisfy this
need. They should be able to come up with alternatives and narrow down to the best possible alternative.
Students should keep in mind the personal and interpersonal determinants during this decision process.
Point Value: 1
BUSPROG: Ethics
DISC: Customer
Learning Objective: 6-5
Topic: A-head: The Consumer Decision Process
Bloom’s: Comprehension
Difficulty: Moderate

3. Marketing strategies and Maslow’s Hierarchy of Needs. Visit the websites listed here. Review the
marketing strategies shown in each site. Which level of Maslow’s Hierarchy of Needs does each site
emphasize? Be prepared to defend your answers.
http://www.michelin-us.com
http://www.starbucks.com
http://shop.nordstrom.com
http://www.hollandamerica.com
http://www.unilever.com

Answer: Student answers will vary. They can visit these websites and analyze the offering, product,
message, theme provided by the company. Their answers must defend their opinions. A discussion on
classification of products as per the hierarchy of needs will assist students about the marketing
strategies.
Point Value: 1
BUSPROG: Ethics
DISC: Research
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

Case 6.1 Pepsi-Cola Gets a Boost from Healthier Beverages—Questions for Critical Thinking

1. How can PepsiCo capitalize on what it has learned about the buying behavior of young athletes?

Answer: Students answer should include the concepts of creating new needs, changing the athletes’
attitude and perception toward Gatorade, breaking through athletes’ perceptual screens, initiating a new
learning etc.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

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162 Part 2 Understanding Buyers and Markets

2. Gatorade’s president says, “We probably know more about who on Twitter is the most influential
influencer of end user athletes than Twitter does, because we’ve made it our business to know that.”
What can social media tell PepsiCo about the market for Gatorade?

Answer: Student answers may vary. They must be able to give reasons for their answers. The answers
may contain points like tracking Twitter or other social media can help PepsiCo realize what consumers
think of Gatorade It can do this by reading the comments posted on and seeing the number of “Likes”
that Gatorade has received on say Facebook, reading blogs, creating a feedback page on its website,
etc.
Point Value: 1
BUSPROG: Reflective Thinking
DISC: Customer
Learning Objective: 6-3
Topic: A-head: Personal Determinants of Consumer Behavior
Bloom’s: Application
Difficulty: Moderate

Video Case 6.2 Ski Butternut Offers Thrills—Not Spills —Questions for Critical Thinking

1. Describe the social influences that might affect the decisions that consumers make about where to
spend their winter recreation time and dollars.

Answer: Social influences depend on the social groups to which consumers belong. If you grow up skiing
with your family, it’s likely that you will continue with some kind of winter recreation. If you play a sport
(even if it isn’t a team sport), you are a member of that social group and will value physical activity and
possibly competition as well. If your roommate at college is a skier or snowboarder, you may want to try
it for the first time. If your college requires proficiency at some sport, your entire school is a member of a
group that must fulfill the requirement—which you might decide to do by skiing or snowboarding if you
have access to a mountain. If you are a very experienced winter athlete, you might choose a challenging
mountain; but if your friends are not so experienced, you might choose a mountain that accommodates
them instead. If a mountain offers you a discount for certain days or times, there’s a good chance you
and your friends will select that mountain over another, even if the facilities aren’t as good. But if you are
with your family and your parents are paying for the trip, you might wind up somewhere else.

2. The evaluation of alternatives is an important step in the buying decision for consumers who are
considering whether to visit Butternut or some other mountain. What would be some of the evaluative
criteria in this decision, and why?

Answer: Evaluative criteria would include such objective factors as travel distance; price of lift tickets (and
amenities such as food, daycare, and rentals); facilities (such as the terrain park, high-speed lifts, and
snowmaking); and special programs offered (such as beginner lessons or ski racing). Subjective factors
include a favorable view of winter recreation in general; a favorable view of Butternut as compared to
other mountains; and a positive review from friends. The terrain park might play into the decision of a
teenager but not a senior citizen. An upscale après-ski restaurant might be more important to a senior
citizen, while daycare and picnic tables would be more appealing to young families.

COLLABORATIVE LEARNING EXERCISES

Cultural Values and Consumer Behavior

Purpose:
To help students explore their perceptions of U.S. cultural values
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Chapter 6 Consumer Behavior 163

Background:
Culture clearly influences consumer behavior in both obvious and subtle ways, but students need
to understand the elements of culture in order to appreciate its true impact. This exercise is
designed to help students focus on their perceptions of core values in U.S. culture.

Relationship to Text:
Core Values in U.S. Culture

Estimated Class Time:


About 10 minutes

Preparation/Materials:
Whiteboard and marker

Exercise:
Spend a few moments reviewing with your class the idea of core values. Once they fully
understand the concept, divide your students into small groups and give each group a few
minutes to quickly brainstorm a list of core values in U.S. culture (and tell them to base their list
on their own perceptions, not to copy from the book). When their lists are complete, ask them to
prioritize their values from most important to least important.

Then reconvene as a class and ask a representative from each group to share each list. As the
volunteers read the values, determine (via a show of hands) whether or not all the other groups
included each item, and track the results on the board in three categories: values that all groups
have included, values that a few have included, and values that only one group included. The
student groups can be asked to identify the values that play an important role in the consumer
decision making process.

The three lists will spark an interesting discussion. What values seem to be universal (at least
among the small sample size)? Why isn’t there more complete agreement among the groups?
Most classes will quickly determine that subculture, age, life experience, and social class all play
a role in the differing perceptions.

Questions for Reflection:


• Why is it important to explore the core values of national culture?
• How does this information impact marketing?

Attitudes and Consumer Behavior

Purpose:
To emphasize the role of attitudes in consumer behavior

Background:
While everyone knows what it means to “have an attitude,” the marketing implications are less
apparent for many students. This exercise is designed to clarify the relationship between attitudes
and consumer behavior.

Relationship to Text:
Attitudes

Estimated Class Time:


About 20 minutes
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164 Part 2 Understanding Buyers and Markets

Preparation/Materials:
Students will need blank paper and pens or pencils (ideally colored markers)

Exercise:
Remind your class of the three components of attitude: cognitive, affective, and behavioral. Then,
divide your students into small groups. Challenge each group to choose an existing ad that
appeals to one of the attitude components and ask them to develop an alternate ad for the same
product that would appeal to another attitude component. After ten minutes, ask the groups to
present their ads to the class. When the presentations are complete, ask the class to vote on the
best alternate ad. What role did creativity play in their responses (vs. the type of appeal)?

Questions for Reflection:


• How important are attitudes relative to the other influences on consumer behavior?
• How easy or hard is it to change consumer attitudes? Why?
• What are the best tools for affecting a shift in attitude?

Self-Concept and Consumer Behavior

Purpose:
To illustrate the close links between who we are and how we consume

Background:
The study of consumer behavior suggests that many of our purchases reflect recognizable
elements of who we are in terms of gender, personality, individual style, hobbies, etc. This
exercise is designed to highlight those links.

Relationship to Text:
Self-Concept Theory

Estimated Class Time:


About 10 minutes

Preparation/Materials:
Each student will need paper and a pen or pencil.

Exercise:
Direct your students to think for a moment about goods or services that they particularly enjoy in
any category, from shoes to bands, cars, and restaurants. Ask them to write down their five
favorites, including the brand name (e.g., Nike running shoes, Lucky brand blue jeans), without
writing their own names on the papers. Collect the papers, leaf through them, and choose a few
papers that include an assortment of high-profile brands. Read the papers aloud to your class,
and after each one, ask your class to describe the student who wrote it. (You may want to warn
the students in advance not to identify themselves until the rest of the class has a chance to
guess.) Usually the writers of the papers choose to identify themselves, and—with some notable
exceptions—the profiles guessed by the class, based on the product choices, are astonishingly
accurate. Discussion is often spontaneous, but if not, you may want to ask how marketers can
capitalize on the links between who people are and what they choose to purchase.

Questions for Reflection:


• In what categories are our purchases most likely to reflect our personalities?
• Do brands themselves have personalities?
• How can a marketer create a personality for a brand? What is the value in doing so?
©2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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