Marketing 12Th Edition Kerin Solutions Manual Full Chapter PDF

Chapter 05 - Understanding Consumer Behavior
Solution Manual for Marketing 12th Edition Kerin

Hartley Rudelius 0077861035 9780077861032
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CHAPTER CONTENTS
PAGE
POWERPOINT RESOURCES TO USE WITH LECTURES ........................................... 5-2
LEARNING OBJECTIVES (LO) ......................................................................................... 5-3
KEY TERMS........................................................................................................................... 5-3
LECTURE NOTES
• Chapter Opener: Enlightened Carmakers Know What Custom(h)ers Value ................ 5-4
• Consumer Purchase Decision Process and Experience (LO 5-1; LO 5-2) .................. 5-5
• Psychological Influences on Consumer Behavior (LO 5-3)........................................ 5-13
• Sociocultural Influences on Consumer Behavior (LO 5-4)......................................... 5-21
APPLYING MARKETING KNOWLEDGE ...................................................................... 5-30
BUILDING YOUR MARKETING PLAN .......................................................................... 5-33
VIDEO CASE (VC)

• VC-5: Groupon: Helping Consumers with Purchase Decisions .................................. 5-34
APPENDIX D CASE (D)

5-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
• D-5: The Jamisons Buy an Espresso Machine ............................................................. 5-39
IN-CLASS ACTIVITY (ICA)

• ICA 5-1: Buying Process for Starbucks Via™ Refreshers Instant Coffee.................... 5-41
5-2
Education.
POWERPOINT RESOURCES TO USE WITH LECTURES1

PowerPoint
Textbook Figures Slide2
Figure 5-1 Purchase decision process consists of five stages (p. 112) .............................................. 5-5
Figure 5-2 Consumer Reports’s evaluation of smartphones (p. 113)................................................ 5-8
Figure 5-3 Comparison of problem-solving variations: extended, limited, and routine (p. 116)..... 5-14
Figure 5-4 Influences on the consumer purchase decision process come from both internal and
external sources (p. 118) ............................................................................................... 5-17
Figure 5-5 Hierarchy of needs (p. 119) ............................................................................................ 5-19
Figure 5-6 Modern family life cycle stages and flows (p. 129) ....................................................... 5-37
Selected Textbook Images (Ads, People, Products, and Websites)

Chapter Opener: Woman with a car (p. 111) ...................................................................................... 5-4
Print ads for Fresh Step Crystals cat litter and Velocity fragrance: What strategy is used to reduce
perceived risk? (p. 121)..................................................................................................................... 5-24
Print ads for Colgate Total toothpaste and Hellmann’s mayonnaise: How did the ads change
attitudes? (p. 123).............................................................................................................................. 5-29
Video Case VC-5: Photo of a Groupon offer (p. 135) ....................................................................... 5-41
Marketing Matters, Making Responsible Decisions, and/or Marketing inSite

Marketing Matters—Customer Value: How Much is a Satisfied Customer Worth? (p. 115) ........... 5-12
Making Responsible Decisions—Ethics: The Ethics of Subliminal Messages (p. 120) .................... 5-22
Marketing inSite: Identifying Your VALS Profile: What Motivates You? (p. 124) ......................... 5-31
Marketing Matters—Customer Value: BZZAgent—The Buzz Experience (p. 127) ........................ 5-34
Supplemental Figure
Figure 5-A VALS identifies eight consumer segments [p. 125] ....................................................... 5-32
Quick Response (QR) Codes3

QR 5-1: Match.com Video (p. 119) ................................................................................................... 5-19
QR 5-2: Dove Video (p. 127)............................................................................................................. 5-33
QR 5-3: Nissan Ad (p. 131) ............................................................................................................... 5-40
QR 5-4: Groupon Video Case (p. 135) .............................................................................................. 5-41
In-Class Activity (ICA)

ICA 5-1: Buying Process for Starbucks Via™ Refreshers Instant Coffee [pp. 112-115]. .................. 5-47
1
For each PowerPoint resource listed, the page reference in the textbook (p. x) or [p. y] is where the figure or image is located.
2
The PowerPoint presentation (PPT) for this chapter is either available on the Instructor’s Resource CD-ROM or downloadable from the Marketing: 12/e website
at http://12e.kerin.tv. The PPT slide number references are for this chapter only.
3
TV ads, videos, websites, and video cases with QR Codes can be viewed at http://12e.kerin.tv. Please note that for QR codes, there MUST be the appropriate
QR Code reference (qr1-1, qr1-2, etc.) that follows the “/” after 12e.kerin.tv in the URL. So, to view QR 5-1, the proper URL is http://12e.kerin.tv/qr5-1.
5-3
Education.
LEARNING OBJECTIVES (LO)
After reading this chapter students should be able to:
LO 5-1: Describe the stages in the consumer purchase decision process.
LO 5-2: Distinguish among three variations of the consumer purchase decision process: routine,
limited, and extended problem solving.
LO 5-3: Identify the major psychological influences on consumer behavior.
LO 5-4: Identify the major sociocultural influences on consumer behavior.
KEY TERMS
attitude p. 123 motivation p. 118

beliefs p. 123 opinion leaders p. 126
brand community p. 128 perceived risk p. 121
brand loyalty p. 122 perception p. 120
cognitive dissonance p. 115 personality p. 119
consideration set p. 113 purchase decision process p. 112
consumer behavior p. 112 reference groups p. 128
consumer socialization p. 128 self-concept p. 119
evaluative criteria p. 113 situational influences p. 117
family life cycle p. 129 social class p. 130
involvement p. 115 subcultures p. 131
learning p. 122 subliminal perception p. 121
lifestyle p. 124 word of mouth p. 127
5-4
Education.
LECTURE NOTES
ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE

• Women are a driving force in the U.S. automobile industry. Women:
a. Influence 80 percent of new-car buying decisions.
b. Are designers, engineers, and marketing executives.
• Women think and feel differently about key elements of the new-car-buying process
than men.
a. The sense of styling.

• Men are concerned about a car’s exterior lines and accents or “curb appeal.”
• Women are concerned about a car’s interior design and finishes, which:
– Fit their proportions. – Offer ample storage space.
– Provide good visibility. – Make for effortless parking.
b. The need for speed.

• Men think about how many seconds it takes to go from 0 to 60 miles per hour.
• Women want to feel secure that the car has enough acceleration when passing
other vehicles.
c. The substance of safety.

• Men want safety features that help avoid an accident, such as antilock brakes
and responsive steering.
• Women want safety features that help survive an accident, such as air bags
and reinforced side panels.
d. The shopping experience.

• Men decide upfront what car they want and set out alone to find it.
• Women approach their car buying behavior as an intelligence-gathering
operation, using “CROPing” or “CRedible OPinions.”
• Before making a purchase decision, women:
– Visit auto-buying websites.
– Read car-comparison articles.
– Scan car advertisements.
– Seek recommendations from family and friends.
– Visit three car dealerships.
5-5
Education.
• Women:
– Dislike the car-buying process, particularly negotiating with car dealer
salespeople.
– Prefer a fixed-price policy instead of “haggling” over price because for the
vast majority, price determines the final car purchase decision.
– About half take a man with them to finalize the terms of sale.
• Consumer behavior:
a. Consists of the actions a person takes in purchasing and using products and
services.
b. Includes the mental and social processes that come before and after these actions.
• The behavioral sciences answer questions such as:

a. Why people choose one product or brand over another?
b. How do consumers make these choices?
c. How do companies use this knowledge to provide value to consumers?
I. CONSUMER PURCHASE DECISION PROCESS

AND EXPERIENCE [LO 5-1]
[Figure 5-1] The purchase decision process is the five stages a buyer passes through in
making choices about which products and services to buy:
1. Problem recognition. 4. Purchase decision.
2. Information search. 5. Post-purchase behavior.
3. Alternative evaluation.
[ICA 5-1: Buying Process for Starbucks Via™ Ready Brew Instant Coffee]
A. Problem Recognition: Perceiving a Need
• Problem recognition perceives a difference between a person’s ideal and actual

situations big enough to trigger a decision.
• In marketing, advertisements or salespeople:
a. Can activate a consumer’s decision process by…
b. Showing the shortcomings of competing or currently owned products.
5-6
Education.
B. Information Search: Seeking Value
After recognizing a problem, a consumer begins to search for information about

which product or service might satisfy the newly discovered need.
• An internal search:
a. Involves scanning one’s memory for previous experiences with products or

brands.
b. Is often sufficient for frequently purchased products.
• An external search:
a. May be necessary when past experience or knowledge is insufficient.
b. The risk of making a wrong decision is high.
c. The cost of gathering information is low.
• The primary sources of external information are:

a. Personal sources, such as relatives and friends whom the consumer trusts.
b. [Figure 5-2] Public sources, including:
• Product-rating organizations like Consumer Reports.
• Government agencies like the Consumer Product Safety Commission.
• Consumer-oriented TV programs.
c. Marketer-dominated sources, such as information from sellers that include:
• Advertising. • Salespeople.
• Company websites. • Point-of-purchase displays in stores.
C. Alternative Evaluation: Assessing Value
• The information stage clarifies the problem for consumers by:
a. Suggesting criteria to use for the purchase.
b. Providing brand names that might meet the criteria.
c. Developing consumer value perceptions.

• A consumer’s evaluative criteria are:
a. Factors that represent both the objective attributes of a brand and the
subjective ones a consumer uses to compare different products and brands.
b. Often mentioned or displayed in advertisements.
5-7
Education.
• Consumers often have several criteria for evaluating brands.
a. This establishes the consideration set—the group of brands that a consumer

would consider acceptable from among all the brands in the product class of
which he or she is aware.
b. Consumers can change their evaluative criteria to create a different

consideration set of models and brands if the alternatives are unsatisfactory.
c. Example: Figure 5-2.

• Evaluative criteria:
– A retail price of $200 or less.
– Excellent messaging capability.
– Good voice quality.
– Very good to excellent camera image quality.
• Resulting consideration set:
– Samsung Galaxy S 4.
– Motorola Dröid Razr Maxx HD.
– Motorola Dröid 4.
D. Purchase Decision: Buying Value
• Having examined the alternatives in the consideration set, two choices remain:
a. From whom to buy is determined by an evaluation of:

• The seller’s terms of sale.
• Past purchase experience with that seller.
• The seller’s return policy.
b. When to buy is determined by:

• Whether the product/preferred brand is on sale.
• Whether the manufacturer offers a coupon/rebate.
• The store’s atmosphere/ease of the shopping experience.
• Salesperson assistance.
• Time pressure.
• Financial circumstances.
5-8
Education.
• The Internet allows consumers to:
a. Gather information.
b. Evaluate alternatives.
c. Make buying decisions.
• Example: 45 percent of consumers with price comparison smartphone apps:
a. Routinely compare prices for identical products across different sellers…
b. At the point of purchase prior to making a purchase decision.
E. Postpurchase Behavior: Realizing Value
• After buying a product, the consumer:
a. Compares it with his/her expectations and…
b. Is either satisfied or dissatisfied.
• If the consumer is dissatisfied, marketers must determine whether:
a. The product was deficient.
b. Consumer expectations were too high. If expectations are too high:

• A company’s advertising or the salesperson…
• May have oversold the product’s features and benefits.
c. Product deficiency may require a design change.
• Customers’ satisfaction or dissatisfaction with the consumption or use experience

affects consumer communication and repeat-purchase behavior.
a. Satisfied buyers:
• Tell 3 other people about their experience.
• Tend to buy from the same seller each time a purchase decision arises.
b. Dissatisfied buyers:
• About 90 percent will not buy a product again.
• Will complain to 9 people.
c. The financial impact of repeat-purchase behavior can be significant.
5-9
Education.
MARKETING MATTERS
Customer Value: How Much is a Satisfied Customer Worth?
What is the financial value of a loyal customer over time?
• Marketers attempt to calculate this figure to demonstrate how much a satisfied

customer is worth. Some examples:
a. Frito-Lay. Loyal customers in the southwestern U.S buy 21 pounds of snack

chips worth $52.50 annually.
b. Exxon. Loyal customers $500 annually for its gasoline, excluding other
purchases made.
c. Kimberly Clark. Loyal customers buy 6.7 boxes of Kleenex tissues annually,
which translates into $994 over 60 years (in today’s dollars).
• These calculations have focused marketer attention on the buying experience,

customer satisfaction, and retention. Example: Ford Motor Company.
a. Set a target of increasing customer retention, which is…

• The percentage of Ford owners whose…
• Next car is also a Ford…
• From 60 percent to 80 percent.
b. Each additional percentage point is worth a staggering $100 million in profits.
• Research shows that:
a. A 5 percent improvement in customer retention…
b. Can increase profits by 70 to 80 percent!
• The goal of many firms is to focus on postpurchase behavior to:
a. Maximize customer satisfaction, which…
b. Can lead to increased retention.

c. Tools to do this include:
• Provide toll-free telephone numbers.
• Offer liberalized return and refund policies.
• Engage in extensive staff training to
– Handle complaints. – Record suggestions.
– Answer questions. – Solve consumer problems.
5-10
Education.
d. Such efforts:
• Produce positive postpurchase communications among consumers.
• Foster relationship building between sellers and buyers.
• Consumers are often faced with two or more highly attractive alternatives when
making a purchase.
a. After purchasing a product, they may have second thoughts and ask the
question, “Should I have purchased this?”
b. Cognitive dissonance is the feeling of postpurchase psychological tension or

anxiety consumers may experience when faced with two or more highly
attractive alternatives.
c. After a purchase, consumers often seek information or approval from others or

reading ads or reviews about the brand to affirm their choice.
d. Firms often use ads or follow-up calls from salespeople in this postpurchase
stage to try to comfort buyers that they made the right decision.
F. Consumer Involvement Affects Problem-Solving [LO 5-2]
• Sometimes consumers don’t engage in the five-stage purchase decision process

depending on their level of involvement.
• Level of involvement.
a. Is the personal, social, and economic significance of the purchase to the

consumer.
b. Consumers may sometimes skip or minimize one or more steps in the

purchase decision process.
c. High-involvement purchases have at least one of three characteristics:

• Is expensive.
• Can have serious personal consequences.
• Could reflect on one’s social image.
• With high involvement purchases, consumers are:

• Engaged in extensive information search.
• Consider many product attributes and brands.
• Use word-of-mouth.
• Low-involvement purchases barely involve any thought.
• [Figure 5-3] There are three general problem-solving variations in the consumer
purchase decision process.
5-11
Education.
1. Extended Problem Solving.

a. Each of the five stages of the consumer purchase decision process is used.
• Includes considerable time and effort on external information search.
• Identifies and evaluates the attributes of several brands in the
consideration set.
b. Exists in high-involvement purchases (autos, audio systems, etc.).
2. Limited Problem Solving.
a. Consumers seek some information or rely on friends to evaluate alternative

brands and attributes.
b. Is used in purchase situations that do not merit a great deal of time or effort.
3. Routine Problem Solving.
a. Consumers spend little effort seeking external information and evaluating

alternatives.
b. The purchase process is habitual.

c. Typifies low-involvement decision making.
d. Is used for low-priced, frequently purchased products (salt, milk, etc.).
4. Consumer Involvement and Marketing Strategy.

a. For low-involvement products whose brands are market share leaders,
marketers should:
• Maintain product quality.
• Avoid stockouts so buyers won’t substitute a competing brand.
• Develop and air repetitive ads that:
– Reinforce consumers’ knowledge or…
– Assure buyers that they made the right choice.
b. For low-involvement products whose brands are market challengers,

marketers should break consumer habits by:
• Using free samples, coupons, and rebates to encourage trial of their brand.
• Developing ads that get their brand into a consumer’s consideration set.
• Linking brand attributes with high involvement issues.
5-12
Education.
c. For high-involvement products whose brands are market share leaders,

marketers should use:
• Advertising and personal selling.
• Social media to create online experiences for their company or brand.
d. For high-involvement products whose brands are market challengers,

marketers should use:
• Comparative advertising that focus on existing product attributes.
• Novel evaluative criteria for judging competing brands.
• Internet search engines like Google or Bing to assist buyers.
G. Situational Influences that Affect Purchase Decisions
• Five situational influences impact the consumer’s purchase decision process:
a. Purchase task. The reason for engaging in the decision.
b. Social surroundings. Others present when making a purchase decision.
c. Physical surroundings. Store decor, music, and crowding.
d. Temporal effects. Time of day or time available.
e. Antecedent states. The consumer’s mood or cash on hand.
• [Figure 5-4] shows the many influences that affect the consumer purchase
decision process.
• The decision to buy a product also involves important psychological and

sociocultural influences.
LEARNING REVIEW
5-1. What is the first stage in the consumer purchase decision process?
Answer: problem recognition—perceiving a need
5-2. The brands a consumer considers buying out of the set of brands in a product
class of which the consumer is aware are collectively called the __________.
Answer: consideration set
5-3. What is the term for postpurchase anxiety?
Answer: cognitive dissonance
5-13
Education.
II. PSYCHOLOGICAL INFLUENCES ON

CONSUMER BEHAVIOR [LO 5-3]
• Psychology helps marketers understand why and how consumers behave as they do.
• Concepts such as motivation and personality; perception; learning; values, beliefs,

and attitudes; and lifestyle are useful for interpreting buying processes.
A. Consumer Motivation and Personality
Motivation and personality explain why people do some things and not others.
1. Motivation.
a. Motivation is the energizing force that stimulates behavior to satisfy a need.
b. Marketers try to arouse these needs.
c. [Figure 5-5] These needs are hierarchical, ranging from basic to learned
needs:
• Physiological needs, such as water, food, and shelter, are basic to survival
and must be satisfied first.
• Safety needs involve self-preservation, such as physical and financial well-
being.
• Social needs are concerned with love and friendship.
[QR Code 5-1: Match.com Video]

• Personal needs involve the need for achievement, status, prestige, and
self-respect.
• Self-actualization needs involve personal fulfillment.
2. Personality.
a. Personality refers to a person’s consistent behaviors or responses to recurring

situations.
b. Key personality traits:

• Are enduring characteristics within a person or in his or her relationship
with others.
• Include assertiveness, extroversion, and compliance, dominance,
aggression, among others.
• Are inherited or formed at an early age and change little over the years.
• Are often linked with certain tastes or preferences.
5-14
Education.
c. A person’s self-concept is the way:

• People see themselves.
• They believe others see them.
d. People:
• Have an actual self-concept (how they see themselves).
• Have an ideal self-concept (how they want to see themselves).
• Reflect these images in the products and brands they buy.
B. Consumer Perception
Perception is the process by which an individual selects, organizes, and interprets

information to create a meaningful picture of the world.
1. Selective Perception.
a. Is the filtering process of exposure, comprehension, and retention by the

human brain to organize and interpret information.
b. Consists of:
• Selective exposure.
– Occurs when people:
* Pay attention to messages that are consistent with their own
attitudes and beliefs.
* Ignore messages that are inconsistent with them.
– Assures buyers that they made the right choice.
– During the postpurchase stage when consumers read ads for the brand
they just bought.
– When a need exists, such as being hungry.
• Selective comprehension.
– Involves interpreting information so that it is consistent with a
person’s attitudes and beliefs.
– A marketer’s failure to understand this can have disastrous results.
– Example: Toro’s Snow Pup snowblower was renamed the Snow
Master.
• Selective retention.
– Means that consumers do not remember all the information they see,
read, or hear, even minutes after exposure to it.
– Affects the internal and external components of the information search
stage of the consumer decision process.
5-15
Education.
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Chapter 05 - Understanding Consumer Behavior

Solution Manual for Marketing 12th Edition Kerin

Download full test bank at:

LEARNING OBJECTIVES (LO) ......................................................................................... 5-3

KEY TERMS........................................................................................................................... 5-3

APPLYING MARKETING KNOWLEDGE ...................................................................... 5-30

BUILDING YOUR MARKETING PLAN .......................................................................... 5-33

VIDEO CASE (VC)

APPENDIX D CASE (D)

• D-5: The Jamisons Buy an Espresso Machine ............................................................. 5-39

IN-CLASS ACTIVITY (ICA)

POWERPOINT RESOURCES TO USE WITH LECTURES1

Selected Textbook Images (Ads, People, Products, and Websites)

Marketing Matters, Making Responsible Decisions, and/or Marketing inSite

Quick Response (QR) Codes3

In-Class Activity (ICA)

LEARNING OBJECTIVES (LO)

After reading this chapter students should be able to:

LO 5-1: Describe the stages in the consumer purchase decision process.

LO 5-3: Identify the major psychological influences on consumer behavior.

LO 5-4: Identify the major sociocultural influences on consumer behavior.

attitude p. 123 motivation p. 118

ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE

a. Influence 80 percent of new-car buying decisions.

b. Are designers, engineers, and marketing executives.

a. The sense of styling.

b. The need for speed.

c. The substance of safety.

d. The shopping experience.

• The behavioral sciences answer questions such as:

I. CONSUMER PURCHASE DECISION PROCESS

• Problem recognition perceives a difference between a person’s ideal and actual

• In marketing, advertisements or salespeople:

a. Can activate a consumer’s decision process by…

b. Showing the shortcomings of competing or currently owned products.

B. Information Search: Seeking Value

After recognizing a problem, a consumer begins to search for information about

a. Involves scanning one’s memory for previous experiences with products or

b. Is often sufficient for frequently purchased products.

a. May be necessary when past experience or knowledge is insufficient.

b. The risk of making a wrong decision is high.

c. The cost of gathering information is low.

• The primary sources of external information are:

a. Suggesting criteria to use for the purchase.

b. Providing brand names that might meet the criteria.

c. Developing consumer value perceptions.

b. Often mentioned or displayed in advertisements.

• Consumers often have several criteria for evaluating brands.

a. This establishes the consideration set—the group of brands that a consumer

b. Consumers can change their evaluative criteria to create a different

c. Example: Figure 5-2.

D. Purchase Decision: Buying Value

a. From whom to buy is determined by an evaluation of:

b. When to buy is determined by:

• The Internet allows consumers to:

c. Make buying decisions.

• Example: 45 percent of consumers with price comparison smartphone apps:

a. Routinely compare prices for identical products across different sellers…

b. At the point of purchase prior to making a purchase decision.

E. Postpurchase Behavior: Realizing Value

• After buying a product, the consumer:

a. Compares it with his/her expectations and…