You are on page 1of 25

Chapter 06 - Consumer Behavior

M Marketing 4th Edition Grewal


Solutions Manual
Full download at link:

Solution Manual: https://testbankpack.com/p/solution-manual-


for-m-marketing-4th-edition-grewal-levy-0077861027-
9780077861025/

Test Bank: https://testbankpack.com/p/test-bank-for-m-


marketing-4th-edition-grewal-levy-0077861027-
9780077861025/
Chapter 6
Consumer Behavior

TOOLS FOR INSTRUCTORS

• Brief Chapter Outline


• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips

BRIEF CHAPTER OUTLINE

The Consumer Decision Process


Factors Influencing the Consumer Decision Process
Involvement and Consumer Buying Decisions
Summing Up
End of Chapter Learning Aids
Chapter Case Study: The Diet Battle: Weight Watchers, Jenny Craig, and Slim-Fast

LEARNING OBJECTIVES

6-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

LO 6-1 Articulate the steps in the consumer buying process.


LO 6-2 Describe the difference between functional and psychological needs.
LO 6-3 Describe factors that affect information search.
LO 6-4 Discuss postpurchase outcomes.
LO 6-5 List the factors that affect the consumer decision process.
LO 6-6 Describe how involvement influences the consumer decision process.

CHAPTER OVERVIEW (“SUMMING UP”)

Articulate the steps in the consumer buying process.

The consumer buying process consists of five main steps: First, during need recognition,
consumers simply realize they have an unsatisfied need or want that they hope to address.
Second, they begin to search for information to determine how to satisfy that need. Third,
during the alternative evaluation stage, they assess the various options available to them to
determine which is the best for their purposes. Fourth, the purchase stage involves
obtaining and using the product. Fifth and finally, consumers enter the postpurchase stage,
during which they determine whether they are satisfied or dissatisfied with their choice.

Describe the difference between functional and psychological needs.

Functional needs pertain to the performance of a product or service. Psychological needs


pertain to the personal gratification consumers associate with a product and/or service.

Describe factors that affect information search.

The information search that people undertake varies depending on both external and
internal factors. Among the former, the type of product or service dictates whether people
can make an easy, quick decision or instead must undertake significant research to find the
best purchase option. A person’s perceptions of the benefits versus the costs of the search
also determine how much effort they undertake. These perceptions often relate closely to
their perception of the risk involved in their purchase. Finally, people’s locus of control,
whether external or internal, strongly influences their information search actions.

Discuss postpurchase outcomes.

Marketers hope that after their purchase, consumers are satisfied and pleased with their
purchase, which can lead to customer loyalty, a positive postpurchase outcome. However,
consumers also may suffer postpurchase dissonance, or buyer’s remorse.

List the factors that affect the consumer decision process.

The elements of the marketing mix (product, place, promotion, and price) have significant
effects, of course. In addition, social factors, such as family and culture, influence not only

6-2
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

what a consumer buys but also how a consumer goes about making a purchase decision.
The psychological factors that influence purchase decisions include motives (which can be
higher or lower on the hierarchy of needs), attitudes, perceptions, learning, and lifestyle.
Finally, the specific factors that mark the purchase situation, like the store setting or even
the time of day, can alter people’s decision process.

Describe how involvement influences the consumer decision process.

More involved consumers, who are more interested or invested in the product or service
they are considering, tend to engage in extended problem solving. They gather lots of
information, scrutinize it carefully, and then make their decisions with caution to minimize
any risk they may confront. In contrast, less involved consumers often engage in limited
problem solving, undertake impulse purchases, or rely on habit to make their purchase
decisions.

EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS

I. THE CONSUMER DECISION PROCESS (PPT slide 6-4)

A. Need Recognition (PPT slide 6-5)

1. Functional Needs
2. Psychological Needs

B. Search for Information (PPT slide 6-7)

1. Internal Search for Information


2. External Search for Information
3. Factors Affecting Consumers’ Search Processes
a. The Perceived Benefits versus Perceived Costs of Search (PPT slide 6-8)
b. The Locus of Control (PPT slide 6-9)
c. Actual or Perceived Risk (PPT slide 6-10)

C. Evaluation of Alternatives (PPT slide 6-12)

1. Attribute Sets (PPT slide 6-12)


2. Evaluate Criteria (PPT slide 6-13)
3. Consumer Decision Rules (PPT slide 6-14)

D. Purchase and Consumption (PPT slide 6-15)

E. Postpurchase

1. Customer Satisfaction (PPT slide 6-16)


2. Postpurchase Dissonance (PPT slide 6-17)

6-3
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

3. Customer Loyalty (PPT slide 6-18)


4. Undesirable Consumer Behavior

Check Yourself: Several questions are offered for students to check their understanding of
core concepts. (PPT slide 6-19)

1. Name the five stages in the consumer decision process.


Answer: Need Recognition, Information Search, Alternative Evaluation, Purchase,
Post Purchase.

2. What is the difference between a need and a want?


Answer: Wants are goods or services that are not necessarily needed but are desired.

3. Distinguish between functional and psychological needs.


Answer: Functional needs pertain to the performance of a product or service.
Psychological needs pertain to the personal gratification consumers associate with
a product and/or service.

4. What are the various types of perceived risk?


Answer: Performance, financial, social, physiological, and psychological.

5. What are the differences between compensatory and noncompensatory decision


rules?
Answer: A compensatory decision rule assumes that the consumer, when
evaluating alternatives, trades off one characteristic against another. On the other
hand, in a non-compensatory decision rule, choose a product or service on the basis
of one or a subset of its characteristics, regardless of the values of its other
attributes.

II. FACTORS INFLUENCING THE CONSUMER DECISION PROCESS (PPT


slide 6-20)

A. Psychological Factors (PPT slide 6-21)

B. Attitude (PPT slide 6-22)

1. Perception (PPT slide 6-23)


2. Learning (PPT slide 6-24)
3. Lifestyle (PPT slide 6-24)

C. Social Factors

1. Family (PPT slide 6-25)


2. Reference Groups (PPT slide 6-26, 27)
3. Culture (PPT slide 6-28)

6-4
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

D. Situational Factors (PPT slide 6-30)

1. Purchase Situation
2. Shopping Situation
3. Temporal State

Check Yourself: Several questions are offered for students to check their understanding of
core concepts. (PPT slide 6-31)

1. What are some examples of specific needs suggested by Maslow’s Hierarchy of


Needs?
Answer: Maslow categorized five groups of needs, namely, physiological (e.g.,
food, water, shelter), safety (e.g., secure employment, health), love (e.g., friendship,
family), and esteem (e.g., confidence, respect), and self-actualization (people
engage in personal growth activities and attempt to meet their intellectual, aesthetic,
creative, and other such needs).

2. Which social factors likely have the most influence on (a) the purchase of a new
outfit for a job interview and (b) the choice of a college to attend?
Answer: The reference group would likely have the most influence.
Answer: The family group would likely have the most influence.

3. List some of the tactics stores can use to influence consumers’ decision processes.
Answer: Some retailers and service providers have developed unique images that
are based at least in part on their internal environment, also known as their
atmospherics. Also, in-store demonstrations, promotions, and packaging can
influence a consumer’s decision process.

III. INVOLVEMENT AND CONSUMER BUYING DECISIONS (PPT slide 6-32)

A. Limited Problem Solving (PPT slide 6-33)

B. Habitual Decision Making (PPT slide 6-33)

C. Extended Problem Solving (PPT slide 6-33)

D. Impulse Buying (PPT slide 6-33)

Check Yourself: Several questions are offered for students to check their understanding of
core concepts. (PPT slide 6-34)

1. How do low- versus high-involvement consumers process information in an


advertisement?
Answer: A high involvement consumer will scrutinize all the information provided
(e.g., gas savings, eco-friendly) and process the key elements of the message more
deeply. In contrast, a low-involvement consumer will likely process the same

6-5
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

advertisement or information in a less thorough or superficial manner. Such a


consumer is likely to pay less attention to the key elements of the message and
focus on heuristic elements, such as brand name, price, and the presence of a
celebrity endorser to form his or her impressions. These impressions are likely to
be more superficial in nature.

2. What is the difference between extended versus limited problem solving?


Answer: Extended problem solving is when the customer perceives that the
purchase decision entails a lot of risk. Limited problem solving occurs during a
purchase decision that calls for, at most, a moderate amount of effort and time.
Customers engage in this type of buying process when they have had some prior
experience with the product or service and the perceived risk is moderate. Limited
problem solving usually relies on past experience more than on external
information.

POWERPOINT SLIDES WITH TEACHING NOTES

Power Point Slide Teaching Notes


6-1: Consumer Behavior Chapter Five – Consumer Behavior

6-2: Learning Objectives These questions are the learning


objectives guiding the chapter and
will be explored in more detail in the
following slides.

6-6
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-3: Zipcar The potential to attract new


consumers and influence their lifetime
shopping behavior is so significant
those two companies that seemingly
should function as competitors, Ford
Motor Company and Zipcar, have
joined forces to take advantage of the
opportunities.

6-4: The Consumer Decision Process This slide illustrates the entire
consumer decision process.

This model represents the steps that


consumers go through before, during,
and after making purchasing
decisions.

6-5: Need Recognition The consumer decision process begins


when consumers recognize they have
an unsatisfied need.

Consumer needs can be functional,


which pertain to the performance of a
product or service or consumer needs
can be psychological, which pertain to
the personal gratification consumers
associate with a product or service.

Ask students about needs they have


and whether they are functional or
psychological?

6-7
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-6: “It’s hard to find your litter box if you can’t Kitty litter marketers know that cat
smell it” owners have a need for litter boxes
that do not smell.

Ask students: Why is this ad


effective? First of all, animals are
usually highly effective at attracting
attention – in this ad they are in
unusual positions which attracts
additional attention.

This campaign is effective because the


humor (the cat “holding it”) ties to the
product benefit of not being able to
find (smell) the litter box.

6-7: Search for Information After a consumer recognizes a need,


he or she must search for information
about the various options that exist to
satisfy that need.
In an internal search for information,
the buyer examines his or her own
memory and knowledge about the
product or service. In an external
search for information, the buyer
seeks information outside his or her
personal knowledge base to help make
the buying decision.

Ask students where they looked for


external information when conducting
a search for colleges?

6-8: Factors Affecting Consumers’ Search One important factor that affects
Process consumers’ search process is
perceived benefits versus perceived
costs.

Is it worth the time and effort to


search for information about a product
or service?

6-8
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-9: The Locus of Control Another factor affecting the consumer


search process is locus of control.

Locus of control actually indicates


how much control people think they
have over the outcomes of various
activities, such as purchasing a
product or service.

Some people sense their own internal


control, whereas others feel virtually
powerless. The former engage in more
search activities.

6-10: Actual or Perceived Risk There are three types of risk


associated with purchase decisions
that can delay or discourage a
purchase.

Performance risk involves the


perceived danger inherent in a poorly
performing product or service.

Financial risk is associated with a


monetary outlay and includes the
initial cost of the purchase, as well as
the costs of using the item or service.

Social risk involves the fears that


consumers suffer when they worry
others might not regard their
purchases positively.

Psychological risks are those risks


associated with the way people will
feel if the product or service does not
convey the right image.

Ask students about the search for a


college and have them classify
examples of the three types of risks.

6-9
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-11: Designing For Women Ask students: What type of product


are home improvement and tools?

Students will notice that they are


shopping goods. How might women
search for this type of information
differently than men?

Note: Please make sure that the video


file is located in the same folder as the
PowerPoint slides.

6-12: Evaluation of Alternatives: Attribute Sets Research has shown that a consumer’s
mind organizes and categorizes
alternatives to aid his or her decision-
making process.

Universal sets include all possible


choices for a product category.

A subset of the universal set is the


retrieval set, which are those brands or
stores that can be readily brought forth
from memory.

Another is an evoked set, which


comprises the alternative brands or
stores that the consumer states he or
she would consider when making a
purchase decision.

Ask students to name cookie brands


– this is their retrieval set. They may
be surprised at how few brands they
retrieve.

6-10
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-13: Evaluation of Alternatives: Evaluate Evaluative criteria consist of a set of


Criteria important attributes about a particular
product.

Determinant attributes are product or


service features that are important to
the buyer and on which competing
brands or stores are perceived to
differ. The students will respond to
the question on this slide with
weather, beach, friends, price, and
outdoor activities.

6-14: Evaluation of Alternatives: Consumer Consumer decision rules are a set of


Decision Rules criteria that consumers use
consciously or subconsciously to
quickly and efficiently select among
several alternatives.

Compensatory decision rules assume


that the consumer, when evaluating
alternatives, trades off one
characteristic against another, such
that good characteristics compensate
for bad characteristics.
Sometimes consumers use non-
compensatory decision rules in which
they choose a product or service on the
basis of a subset of its characteristics,
regardless of the values of its other
attributes.

6-15: Purchase and Consumption Retailers use the conversion rate to


measure how well they convert
purchase intentions into actual
purchases.

6-11
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-16: Post-purchase: Customer Satisfaction Setting unrealistically high consumer


expectations of the product can lead to
dissatisfaction when the product fails
to achieve high performance
expectations.

Marketers can take several steps to


ensure post-purchase satisfaction such
as demonstrating correct product use,
building realistic expectations,
providing a money back guarantee,
encouraging feedback, and
periodically making contact with
customers.

6-17: Post-purchase: Dissonance Post-purchase dissonance, also known


as buyer’s remorse, is the
psychologically uncomfortable state
produced by an inconsistency between
beliefs and behaviors that in turn
evokes a motivation to reduce the
dissonance.

Ask students how firms attempt to


reduce dissonance. They may
mention that firms send thank you
letters advertise awards and quality
follow up with phone calls.

6-18: Discussion Question Loyal customers will buy only certain


brands and shop at certain stores, and
they include no other firms in their
evoked set.

Ask students Why they are loyal to


their favorite brands?

6-12
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-19: Purchase and Consumption 1. Need Recognition, Information


Search, Alternative Evaluation,
Purchase, and Post Purchase.
2. Wants are goods or services that
are not necessarily needed but are
desired.
3. Functional needs pertain to the
performance of a product or
service. Psychological needs
pertain to the personal
gratification consumers associate
with a product and/or service.
4. Performance, financial, social,
physiological, and psychological.
5. A compensatory decision rule
assumes that the consumer, when
evaluating alternatives, trades off
one characteristic against another.
On the other hand, in a non-
compensatory decision rule,
choose a product or service on the
basis of one or a subset of its
characteristics, regardless of the
values of its other attributes.

6-20: Factors Influencing the Consumer Decision This slide lists the factors influencing
Process the consumer decision process, which
are discussed in more detail in the
following slides.

6-13
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-21: Psychological Factors: Motives A motive is a need or want that is


strong enough to cause the person to
seek satisfaction. People have several
types of motives, such as those
illustrated in the PSSP hierarchy of
needs.

Ask students if there are any products


that fulfill several levels of needs?
They will mention products like an
expensive fur coat given as a gift is
physiological, love, and esteem.

6-22: Psychological Factors: Attitude An attitude is a person’s enduring


evaluation of his or her feelings about
behavioral tendencies toward an
object or idea.

An attitude consists of three


components: The cognitive aspect
reflects what we believe to be true, the
affective component involves what we
feel about the issue at hand, and the
behavioral component comprises the
actions we undertake with regard to
that issue.

6-23: Psychological Factors: Perception Perception is the process by which we


select, organize, and interpret
information to form a meaningful
picture of the world. Societies’
perceptions can change.

For example, tattoos used to be only


considered acceptable for unsavory
individuals.

They were clearly NOT mainstream,


yet today people from a variety of
demographic backgrounds get
tattooed. Many celebrities have
tattoos, even some parents and
children have matching tattoos.

6-14
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-24: Psychological Factors: Learning and Learning refers to a change in a


Lifestyle person’s thought process or behavior
that arises from experience and takes
place throughout the consumer
decision process.

Learning affects both attitudes and


perceptions. A person’s perceptions
and ability to learn are affected by
their social experiences.

6-25: Social Factors: Family Many purchase decisions are made


about products or services that the
entire family will consume or use.

Thus, firms must consider how


families make purchase decisions and
understand how various family
members might influence these
decisions.

Ask students about a purchase that


their family recently made and have
them determine the decision makers
and the influencers.

6-26: Social Factors: Reference Groups A reference group is one or more


persons whom an individual uses as a
basis for comparison regarding
beliefs, feelings, and behaviors.

A consumer might have various


reference groups including family,
friends, coworkers, or famous people.

These reference groups affect buying


decisions by offering information,
providing rewards for specific
purchasing behaviors, and enhancing
a consumer’s self-image.

6-15
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-27: Reference Group Celebrities are often used in


advertising because they have
expertise, power, glamour and
consumer’s want to have these same
qualities.

This web link (always check links


before class) goes to an ad in the
GEICO campaign in which they use
celebrities (actors) to tell real people’s
stories.

6-28: Social Factors: Culture Culture is defined as the shared


meanings, beliefs, morals, values, and
customers of a group of people.

Like reference groups, cultures


influence consumer behavior.

6-29: Could You Go Without Tech for a Week Ask students: why does this tie into
cultural factors?

Do they think they could go one


week?

How does technology influence us as


workers, friends, and family
members?

Note: Please make sure that the video


file is located in the same folder as the
PowerPoint slides.

6-16
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-30: Situational Factors Situational factors are factors specific


to the situation that override, or at
least influence, psychological and
social issues.

These situational factors are related to


the purchase and shopping situation,
as well as to the temporal state as
illustrated in this slide.

Ask students what certain restaurants


or stores do to make the shopping
situation more pleasant and conducive
to purchasing?

6-31: Check Yourself 1. Physiological (e.g., food, water,


shelter), safety (e.g., secure
employment, health), love (e.g.,
friendship, family), and esteem
(e.g., confidence, respect), and
self-actualization (people engage
in personal growth activities and
attempt to meet their intellectual,
aesthetic, creative, and other such
needs).
a. Reference groups and culture
b. Family
2. Store atmosphere, crowding, in-
store demonstrations, promotions
and packaging

6-32: Involvement and Consumer Buying Ask students: What was the last
Decisions thing you purchased?

Based on their answers, get them to


determine whether they used limited
problem solving, extensive problem
solving, or whether it was a habitual
purchase or impulse purchase.

6-17
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

6-33: Types of Buying Decisions Students will mostly likely identify


the orange juice as habitual, Subway
as limited, and the car as extended
problem solving.

This is a YouTube link (always check


before class) for a skittles ad.

Ask students why there is so much


advertising with these types of
products. It is in part because they are
often impulse purchases.

6-34: Check Yourself 1. The high involvement consumer


will scrutinize all the information
provided and process the key
elements of the message more
deeply. As a consequence, an
involved consumer is likely to
either end up judging the message
to be truthful and will form a
favorable impression for the
product being advertised or
alternatively view the message as
superficial in nature and develop
negative product thoughts
2. Limited problem solving occurs
during a purchase decision that
calls for, at most, a moderate
amount of effort and time.
Customers engage in this type of
buying process when they have
had some prior experience with
the product or service and the
perceived risk is moderate.
Limited problem solving usually
relies on past experience more
than on external information.
Extended problem solving, which
is common when the customer
perceives that the purchase
decision entails a lot of risk,
entails much external information.

6-18
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

ANSWERS TO END OF CHAPTER LEARNING AIDS

Marketing Applications

1. Does buying Kashi cereal satisfy a consumer’s functional or psychological need? How
might this information help a Kashi brand manager better promote the product?

Kashi cereal satisfies a consumer’s psychological need. While cereal might provide a
basic functional need (to satisfy a consumer’s hunger), Kashi cereal appeals to more
psychological needs, including the need to eat healthy or a social desirability need. Some
consumers might choose to eat Kashi to fit in with a certain lifestyle or social group.
Understanding why customers choose Kashi will help Kashi in its efforts to promote its
brand as a lifestyle brand rather than just a basic cereal.

2. When consumers buy a new notebook computer, what sort (internal vs. external) of
information search would they conduct? If you were a marketing manager for Sony,
how would you use this information?

An internal search for information might include: understanding how they might use the
laptop, previous experiences with other laptop brands, and personal budget. An external
search for information might include: online reviews, reference groups, input from store
sales associates, and consumer reports. The marketing manager for Sony should
understand the various sources, both external and internal, that customers use in their
decision making. Marketing managers want to make sure that customers have good
experiences with a brand so that when customers do a future internal search, they will
immediately think of that brand as an option. The Sony manager should also monitor
online review sites and reports to understand how the brand is being portrayed in the
marketplace as that will influence the customer’s search process.

3. Explain the factors that affect the amount of time and effort that a consumer might take
when choosing an oral surgeon to get his or her wisdom teeth removed. How would
your answer change if the consumer were looking for a dentist to get a cleaning? How
should the office manager for a dental practice use this information?

Students must analyze the different information-gathering processes consumers use for
related but different purchases. They should recognize that the length and degree of
intensity of consumers’ information search often depend on the degree of perceived risk
associated with a purchase. Office managers for dental practice should understand that
consumers searching for an oral surgeon might engage more in information search and
evaluation of alternatives than those consumers just interested in a cleaning.

In choosing an optometrist for oral surgery, consumers likely worry about his or her
reputation, how long he or she has been practicing, other clients, the cost of the service,
the location of the oral surgeon, and whether the office accepts the consumer’s insurance.
The primary concern of the consumer therefore is to mitigate any perceived risk associated

6-19
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

with the oral surgeon. For dental cleaning, however, consumers likely engage in less
intensive, less time-consuming search for information, because risk is lower.

4. When evaluating different alternatives for a Saturday night outing at a fine restaurant,
explain the difference between the universal set, the retrieval set, and the evoked set.
From which set of alternatives will the consumer most likely choose the restaurant?

Alternative evaluation often occurs as the consumer engages in information search, and
the various sets help organize and categorize the discovered information. Students must
understand all three types of sets and how they function during an alternative evaluation
process.

When considering fine restaurant alternatives, the universal set would be all the possible
choices available, such as all fine restaurants in the area, other types of restaurants, and
any other Saturday-night activity. The retrieval set includes restaurants or other activity
choices that occur readily to the consumer—such as well-known local restaurants. Evoked
set consists of the list of alternative restaurants or activities that the consumer will consider
to make the purchase decision, like his or her favorite restaurants. The consumer most
likely considers options from the evoked set first, because it requires the least amount of
information search and is easiest to remember.

5. What can retailers do to make sure they have satisfied customers after the sale is
complete?

Customer satisfaction is not limited to the experience leading up to and including the actual
purchase event; it often extends beyond the purchase to user experiences after purchase.
Companies that want to ensure consumers have positive experiences with their products
offer after-sales service to deal with any potential issues, so that the consumer thinks
positively of the company and the product. In this way, companies can build their overall
brand equity by mitigating the purchase risk for consumers.

Retailers can do a variety of things to ensure customers are satisfied after the sale. They
can start by setting realistic expectations of the product before the customer even
purchases it, demonstrate how to use the product properly, provide money-back
guarantees and warranties, encourage customer feedback, and periodically contact
customers to thank them for their continued support.

6. Tazo makes a blend of exotic green teas, spearmint, and rare herbs into a tea called
Zen. Using Maslow’s hierarchy of needs, explain which need(s) are being fulfilled by
this tea.

A motive is a need or want that is strong enough to cause a person to seek satisfaction.
Back in the 1970s, social researcher Abraham Maslow developed the PSSP hierarchy of
needs, which postulates that people are motivated to satisfy higher-level human needs
(social and personal) when their lower-level needs (physiological and safety) are
addressed. That is, as people’s more basic needs (physiological and safety) are fulfilled.

6-20
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

Based on the PSSP hierarchy, the Zen tea helps satisfy consumers’ basic physiological
need for one of the necessities of life: liquid to drink. It also helps satisfy consumers’
personal needs, because the tea helps consumers meet their desire to live a healthy lifestyle
and experience a sense of refinement while doing it. Tea does not, however fulfill a safety
need.

7. Identify and describe the three social factors that influence the consumer decision
process. Provide an example of how each of these might influence the purchase of the
necessary products and services for a camping trip by the whole family.

Students should consider the social factors that might influence their decision for an event
like this. Some examples might include: family, reference groups, and cultures. A son or
daughter might ask his/her family what is appropriate attire for a camping trip. The son
or daughter might consider their friends as a reference group for this event; maybe some
of their friends are also interested in camping and could give insight into what to wear.
Finally, students might consider the culture of the campsite facility in their purchase
decision. A more laid back versus a more formal campsite facility might influence the son
or daughter’s outfit decision.

8. Trek has designed a new off-road bicycle designed to stand up to the rugged conditions
of trail riding. Develop a theme for an advertising strategy that ensures all three
components of attitude are positively covered.

The cognitive aspect reflects what people believe to be true, the affective component refers
to what they feel about the issue at hand, and the behavioral component consists of the
action(s) people undertake. By considering all three components to create an advertising
campaign, students should perceive how all three come together in a single theme meant
to influence the attitudes of potential consumers.
For a new, off-road bicycle designed to stand up to the rugged condition of trail riding, the
cognitive aspect could be that off-road bicycling can be adventurous and fun. The affective
component could emphasize an emotional tie to off-road biking for its health benefits. The
behavioral component could encourage customers to buy the new bike for adventure and
a healthy lifestyle.

9. What can a marketer do to positively influence a situation in which a consumer is ready


to buy but has not yet done so?

Student must think of ways marketers can affect consumers’ buying decisions during the
shopping experience. Thus, the question illustrates that the buying decision is not just a
function of product attributes.

A marketer can enhance a consumer’s willingness to buy by creating a positive store


atmosphere, ensuring salespeople act in a friendly and helpful manner, organizing the
store to avoid customer crowding, providing in-store demonstrations of the product,
running promotions of the product to make consumers believe they are getting a good deal,
and packaging the product to attract the consumer’s attention and interest.

6-21
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

Quiz Yourself

1. Laura has a nearly-new economy car but wants a sports car. If she decides to purchase
a sports car, she will be primarily fulfilling ______________ needs.

a. functional
b. postpurchase
c. safety
d. psychological
e. functional and psychological

The economy car would satisfy Laura’s functional needs. However, psychological needs
pertain to the personal gratification consumers’ associate with a product or service. If
Laura purchases a sports car, she will more likely be fulfilling her psychological needs
rather than her basic functional needs.

2. When Maya decided to buy a new computer, she thought about all the brands she could
recall seeing advertised, but she would only consider those brands she could buy at her
local electronics store. This represents Maya's ________ set.

a. universal
b. retrieval
c. evoked
d. deterministic
e. behavioral

A consumer’s evoked set is comprised of the alternative brands or stores that the customers
would consider when making a purchase decision.

Net Savvy

1. Visit the Shopkick site (www.shopkick.com) and describe the benefits it offers
consumers. How are these offers likely to influence consumers’ behavior? Click on
“The App” tab. What kinds of need appeals does this company make to encourage
shoppers to join?

Shopkick offers customers reward points (like loyalty points) just for visiting a store.
Customers can redeem these points for free merchandise or discounts from retailers. The
goal of Shopkick is to “make shopping more delightful.” Shopkick appeals to customers
psychological needs more than functional needs by offering customers upgrades and
discounts on higher end merchandise from retailers like Macy’s, Best Buy, Nike, Coach,
and Crate & Barrel.

2. Customers use a variety of methods to provide feedback to companies about their


experiences. Planetfeedback.com was developed as one such venue. Visit its website

6-22
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

(www.planetfeedback.com) and identify the types of feedback that customers can


provide. Look over the feedback for Verizon by typing “Verizon” in the company
search space. Summarize some of the most recent comments. What is the ratio of
positive to negative comments about Verizon during the last year or so? Describe the
effect these comments might have on customer perceptions of Verizon.

This exercise illustrates how customer satisfaction—or dissatisfaction—can be expressed


in different ways and what effects such expressions might have on a major company like
Verizon.

Consumers provide four types of feedback on planetfeedback.com: compliments,


complaints, questions, and suggestions. The most recent comments include positive
feedback about customer service but the negative feedback is about billing
errors/complaints. If potential consumers see that there are more criticisms of Verizon than
praise, they might consider purchasing phone service from another company.

Chapter Case Study: The Diet Battle: Weight Watchers, Jenny Craig, and Slim-Fast

1. Trace how you might go through the steps in the consumer decision process if you were
thinking of going on a diet and using any of these diet programs.

Students answers will vary, but could look something like this.
Need Recognition: "I think I need to lose some weight."
Information Search: "I need to find out what kind of options are out there. Perhaps I will
search the Internet, visit chat rooms, and ask friends about their experiences.”
Alternative Evaluation: "Should I go with Weight Watchers or. Jenny Craig? Which one
fits my lifestyle? Which one is more convenient for me? Which one will help me best
achieve my weight loss goals?"
Purchase: "I will join Weight Watchers."
Post-Purchase: "I was able to lose 20 pounds with Weight Watchers."

2. How have Weight Watchers, Slim-Fast, and Jenny Craig created value?

Weight Watchers
• Encourages members to track their daily information.
• Dieters record in a paper or electronically based journal.
• All foods are assigned point values and members have a daily points allotment.
• Weekly group sessions and attend meetings.
• Prepared or endorsed dinners, snacks and desserts at most grocery stores.
• Other Weight Watcher products, such as food scales, cookbooks, and water bottles, are
sold online and at meetings.

Jenny Craig
• A unique and comprehensive plan for food, body, and mind.
• Prepared and packaged by Jenny Craig.

6-23
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

• Controlled portions that accommodate busy schedules.


• Members meet weekly on a one-on-one basis with a personal counselor.
• Customized programs for those who prefer to lose weight on their own.

Slim Fast
• Convenient and accessible for most consumers
• No meetings or representatives to visit
• No points to record

3. Identify the determinant attributes that set the Weight Watchers’ and Jenny Craig’s
programs apart. Use those attributes to develop a compensatory purchasing model
similar to the one in Exhibit 5.2.

Daily Group Prepared Overall


Price
Tracking Sessions Meals Score
Importance Weight 0.10 0.30 0.40 0.20 1.00
Weight Watchers 10 9 9 7 8.7
Jenny Craig 8 10 10 8 9.4

4. How can Weight Watchers and Jenny Craig increase the probability of customer
satisfaction?

Both companies should determine what is important to customers and the best way to
create value for customers. Weight Watchers and Jenny Craig should set realistic
expectations for customers so that they are not expecting dramatic weight loss over night.
Both firms should also encourage consistent participation in their programs and follow up
with customers in order to encourage retention and prevent frustration and yo-yo dieting.

5. Which factors examined in this chapter might have the most impact on consumers’
propensity to go on a diet and choose one of these diet programs?

Student answers will vary. Some may chose the psychological factors that affect the way
people receive marketers’ messages. These factors (motives, attitudes, perceptions,
learning, and lifestyle) can all have an important impact of the why of choosing a weight
loss program. Students might also suggest that societal pressures, like culture, reference
groups, and family might also motivate customers to participate in these weight loss
programs.

6-24
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 06 - Consumer Behavior

ADDITIONAL TEACHING TIPS

This chapter focuses on the consumer buying decision and describes the cognitive process
that consumers experience when evaluating that purchasing decision. It also focuses on
the dynamics of what influences the consumer buying decision.

This chapter is often one that is glossed over by students since they are familiar with
making buying decisions and they know most of the terminology in the chapter. However,
what the student finds difficult in connecting is the process of the consumer buying
decision with marketing strategy. Instructors should emphasize the marketing strategies
that can be developed to make the buying decision more likely. To do that, marketers need
to know how their target market makes that buying decision.

An exercise instructors may want to use is to have student write down the steps in the
consumer buying decision process using a recent purchase experience they have made.
Then the students can switch papers with the assignment of developing the marketing
strategy for the buying process. (Example: If I know people make their buying decision on
purchasing diapers based on Internet coupon availability, as a marketer I would make sure
I supplied an Internet coupon to my target market and communicate that to them.) This
exercise gets students thinking about why they need to learn about the consumer buying
decision (to form marketing strategy). Online Tip: This can be easily transferred to the
online forum using the discussion board tools of the platform. Students can post their
buying decision steps of a recent purchase. Other learners can respond by developing the
marketing strategy.

Remember to review the Newsletter for Instructors and its accompanied PowerPoint
presentation, which integrates examples and discussion from the newsletter. Each
newsletter contains over ten article abstracts on hot topics, plus a selection of current
commercials and videos for you to use with your class. The newsletter also includes a
guide that explains where the articles, commercials, and videos best fit in your Marketing
course.

6-25
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

You might also like