Study Guide Consumer Behavior - JustAnswer€¦ · 7/7/2014 · the University of Scranton, Scranton, Pennsylvania. She has taught business courses at the college level on a range

Study Guide

Consumer BehaviorBy

Liz Jackson

About the Author

Liz Jackson teaches at Keystone College in La Plume, Pennsylvania.She has an MBA with a double major in marketing and finance fromthe University of Scranton, Scranton, Pennsylvania. She has taughtbusiness courses at the college level on a range of topics and owns aconsulting company specializing in small business issues, research,training, and academic writing. Ms. Jackson has served as author orcoauthor for a number of Penn Foster courses.

All terms mentioned in this text that are known to be trademarks or servicemarks have been appropriately capitalized. Use of a term in this text shouldnot be regarded as affecting the validity of any trademark or service mark.

Copyright © 2006 by Education Direct, Inc.

All rights reserved. No part of the material protected by this copyright may be repro-duced or utilized in any form or by any means, electronic or mechanical, includingphotocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

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Printed in the United States of America

INSTRUCTIONS TO STUDENTS 1

LESSON ASSIGNMENTS 5

LESSON 1: INTRODUCTION TO CONSUMER

BEHAVIOR 7

EXAMINATION—LESSON 1 21

LESSON 2: CONSUMER DECISION MAKING 25


LESSON 3: INDIVIDUAL DETERMINANTS OF

CONSUMER BEHAVIOR 57


LESSON 4: ENVIRONMENTAL INFLUENCES ON

CONSUMER BEHAVIOR 97


LESSON 5: INFLUENCING CONSUMER

BEHAVIOR 125


SELF-CHECK ANSWERS 149

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YOUR COURSEWhen was the last time you made a purchase? What questionsdid you ask yourself before you bought the item? Did youpurchase it quickly, or did you take some time to thinkabout it? These questions are part of the consumer decision-making process. When you understand this process, you’ll be both a better consumer and a better marketer.

This course will teach you the principles involved in how andwhy consumers make decisions. It’s intended to show youhow, through study and research, marketing analysts andmanagers can predict and influence consumer behavior.

The textbook for this course is the tenth edition of ConsumerBehavior, by Roger D. Blackwell, Paul W. Miniard, and JamesF. Engel. This study guide is intended to assist you in yourstudies and guide you through your course. The study guidealso explains what your assignments are for each lesson and provides you with the best approach to achieve themaximum benefit from this course.

OBJECTIVESWhen you complete this course, you’ll be able to

■ Name the four essential conditions for influencing consumer behavior

■ Identify the environmental factors that shape marketing strategy

■ Explain the consumer decision-making process

■ Describe individual differences in consumer behaviorand explain how these differences affect researchand marketing

■ Explain how informational processing, learning, attitude, and behavior change and shape consumermotivation and behavior

■ Identify the various environmental influences on purchase and consumption decisions

■ Describe how research has affected retailing and theinfusion of innovations in global marketing strategies

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Instructions to Students2

COURSE MATERIALS

The following materials are part of this course:

1. This study guide, which contains an introduction toyour course, plus

■ A lesson assignments page, which outlines the study assignments in your textbook

■ Examinations for Lessons 1–5, which you’ll complete as the course progresses

■ Assignment introductions, which emphasize the main points in the textbook

■ Self-checks and answers to help you assess yourunderstanding of the material

2. Your course textbook, Consumer Behavior, which contains your assigned readings

YOUR TEXTBOOK

Before you begin your study of consumer behavior, take sometime to become familiar with your textbook and its layout.

Begin by reading the preface on pages xxv–xxx. These pagesgive you some valuable background material on your textbookand what it has to offer you. Note the Web site available athttp://blackwell.swlearning.com. If you have access to theInternet, you may want to visit this site before you beginyour studies. In that way, you’ll know what’s available to youwhen you actually get into the study material.

Next, examine the Brief Contents on pages iii–iv. Reading thetitles of the chapters will give you a general idea of the topicsyou’re going to study in this course. Use the expandedContents on pages v–xxii as you proceed through the course.We suggest that you read the contents for each chapter justbefore you begin to study that particular chapter. In that way,you’ll know exactly what you’ll be studying in that assignment.

Instructions to Students 3

Page 1 begins the actual study material for this course. Eachchapter is organized in the same way:

■ An opening vignette (a story related to the material covered in the chapter)

■ The study material itself, which includes many illustrations to clarify and illustrate the points inthe text material

■ Brief summary of the topics covered in the chapter

■ Review and discussion questions

■ Endnotes

At the end of the textbook, following the study material, are several resources that will be helpful to you during your studies:

1. Case studies (page 687), which are designed to encourageyou to apply some of the concepts developed in thetextbook to a variety of organizations

2. A glossary (page 733), which contains definitions ofimportant terms used throughout the textbook

3. An index (page 745), which lists the topics, companies,and individuals mentioned in your textbook, along withthe pages on which those references may be found

A STUDY PLANThis study guide acts as a blueprint for your course. Read itcarefully. Use the following steps to help you receive themaximum benefit from your studies:

1. Note the pages for each assignment and read the introductory material in the study guide.

2. Read the assignment in the textbook to get a generalidea of its content. Then study the assignment, payingattention to all details, especially definitions and mainconcepts. Be sure to read the summary as a review ofthe material in the chapter.

Instructions to Students4

3. As you finish each assignment, answer the self-checkquestions provided in this study guide. Then compareyour answers to those at the back of this booklet.Completing and checking the self-check will help you tomake sure you’ve recognized the most important pointsand will act as a review of the material you’ve just studied.Test yourself seriously. Don’t look up an answer beforegiving your own. The self-checks are designed to helpyou identify weaknesses and guide you back to the areaswhere you need further study. Do not send the self-checkanswers to the school for grading. They’re for you toevaluate yourself on your own.

4. After you’ve completed and checked all the self-checks for Lesson 1, turn to the first examination and completeit. Send only your answers to the examination questions.

5. Follow this procedure until you complete all fivelessons. At any point you can e-mail your instructor for assistance and clarification.

Now you’re ready to begin Lesson 1. With concentration anddetermination, you’ll be on you way to acquiring valuablebusiness and marketing skills. You may even become a betterconsumer yourself.

Good luck with your course!

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Lesson 1: Introduction to Consumer Behavior

For: Read in the Read instudy guide: the text:

Assignment 1 Pages 7–12 Chapter 1, Pages 1–31


Examination 08083900 Material in Lesson 1

Lesson 2: Consumer Decision Making







Lesson 3: Individual Determinants of Consumer Behavior







Lesson 4: Environmental Influences on Consumer Behavior






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Lesson Assignments6

Lesson 5: Influencing Consumer Behavior






Introduction to ConsumerBehavior

ASSIGNMENT 1Read this introduction. Then read the introduction to Part Ion page 1 and Chapter 1, “Consumer Behavior and ConsumerResearch,” pages 3–31, in your textbook Consumer Behavior.

What Is Consumer Behavior?

To study consumer behavior, you have to know what it is.Therefore, Chapter 1 begins with a definition of consumerbehavior and then discusses the activities included in the definition—obtaining, consuming, and disposing. Payparticular attention to the distinction drawn between consumer behavior and consumption analysis (page 4).

Elements of consumer behavior must be integrated into everyaspect of a marketing program. The goal of such a programis to attain an exchange in which a firm offers its products or services for which consumers give their resources.

Why Study Consumer Behavior?

An important element of Chapter 1 is its analysis of why you should study consumer behavior. The textbook offersfour reasons:

1. Consumer behavior helps analyze consumers’ increasinginfluence. As Sam Walton, founder of the world’s largestretail organization, once said, “The only person who canfire us all is the customer.”

2. Consumer behavior educates and protects consumers.

3. Consumer behavior helps formulate public policy.

4. Consumer behavior affects personal policy.

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Evolution of Consumer Behavior

Pages 14–20 introduce the topic “Evolution of ConsumerBehavior.” This section focuses on how the entity thatdetermines which products will be available to the consumerhas changed over time. Figure 1.4 on page 15 presents a timeline summary of those changes. During the manufac-turing orientation, manufacturers decided what products tomake. Henry Ford’s quote about the Model T, “You can getit in any color as long as it is black,” is often used to summarize the attitudes of manufacturers during this period. Once production capacity began to be greater thandemand, the selling orientation period began. During thistime, how to sell products became important. Later, asproduction capacity far exceeded demand, marketers beganto focus on quality, convenience, image, and advertisinginstead of just price. This marketing orientation meant thatorganizations now focused on having what consumers wouldlike rather than just how to sell the products they had.Today, a comprehensive consumer orientation has evolved.Its emphasis extends to the entire demand chain and how toadapt to changing consumer lifestyles and behaviors.

How Do You Study Consumers?

Next, Chapter 1 looks at how to study consumers. Methodsused for such studies are classified into three majorapproaches: observation, interviews and surveys, and experimentation. Each of these methods is explained onpages 21–25.

The Underlying Principles of ConsumerBehavior

The chapter concludes with a discussion of some of the characteristics of consumer behavior. Pay particular attentionto the short paragraph on page 26, “Consumers Are Different;Consumers Are Alike.” Think about how a business can market its product to two different markets by concentratingon the similarities among the consumers in those markets.

Consumer Behavior8

Key Terms

When you begin to study any new subject, you’re generallyconfronted with many new terms. To properly understandthat subject, you must become familiar with these terms—that is, with the language of the subject. To assist you inlearning the vocabulary of consumer behavior, we’ve listedkey terms, along with the textbook page where they’redefined, at the end of each assignment.

This completes your first assignment. Review any material youfound difficult. Then take Self-Check 1. Check your answerswith those provided in the back of this study guide. Reviewthe material for any of the questions you missed.

Lesson 1 9

Key TermsTerm Page Term Page

consumer behavior 4 market segments 26

consumer orientation 20 marketing concept 4

consumption analysis 4 marketing era 19

experimentation 23 marketing orientation 20

focus group 24 observational approach 21

in-home observation 21 retail supply chain 15

intermarket segmentation 26 shadowing 22

interviewer bias 22 surveys 22

longitudinal studies 24

Consumer Behavior10

Self-Check 1

At the end of each section of Consumer Behavior, you’ll be asked to pause and checkyour understanding of what you’ve just read by completing a “Self-Check” exercise.Answering these questions will help you review what you’ve studied so far. Please complete Self-Check 1 now.

Indicate whether each of the following statements is True or False.

_____ 1. The methods used for studying consumer behavior can be classified as observation,interviews and surveys, and experiments.

_____ 2. The retail supply chain consists of all the organizations involved in taking a productfrom inception to final consumption.

_____ 3. The primary influence over what people buy has shifted over time from wholesalersto manufacturers to retailers and now to consumers.

_____ 4. Public policy makers aren’t interested in consumer behavior.

_____ 5. The selling era evolved from an excess of demand that exceeded production capacity.

_____ 6. Advertising and research firms are examples of facilitating organizations.

(Continued)

Lesson 1 11

Self-Check 1

Match the following terms to the appropriate definitions.

Terms Definitions

_____ 7. consumer behavior

_____ 8. consuming

_____ 9. focus group

_____10. longitudinal studies

_____11. marketing orientation

_____12. obtaining

_____13. retail supply chain

_____14. segmentation

_____15. shadowing

_____16. surveys

(Continued)

a. The activity people undertake when obtaining, consuming,and disposing of products and services

b. The activities leading up to and including the purchase or receipt of a product

c. How, when, where, and under what circumstances consumers use products

d. A method of gathering infromation from a large sample ofconsumers by asking questions and recording responses

e. A method that focuses on differences within a groupof consumers while recognizing the similarities between groups

f. A group that includes manufacturers, retailers,and wholesalers

g. Having what consumers are likely to buy

h. A method in which a researcher accompanies consumersthrough the shopping and consumption process

i. A small group of people involved in a discussion led by a moderator skilled in getting consumers to discuss a subject thoroughly

j. The use of repeated measures of consumer activities over time to determine changes in their opinions, buying, and consumption behaviors

Consumer Behavior12

Self-Check 1

Answer the following questions in a short paragraph.

17. What is meant by “The consumer is king”?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

18. What did Sam Walton mean by “The only person who can fire us all is the customer”?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

19. What is meant by a comprehensive consumer orientation?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

Check your answers with those on page 149.

ASSIGNMENT 2Read this introduction. Then read Chapter 2, “How ConsumerAnalysis Affects Business Strategy,” pages 32–66, in your textbook, Consumer Behavior.

Begin by reading the opening vignette about Wal*Mart. You’veprobably been in a Wal*Mart store at some time. As you read the vignette, think about your shopping experience atthat store—and what Wal*Mart has in common strategicallywith the rock band KISS!

From Market Analysis to Market Strategy:Where Does Consumer Behavior Fit?

During the twenty-first century, the battle cry of organizationswill be “Serve the Customer!” Doing so requires a companywith market-driven strategies to provide consumers withmore value than its competitors do. Figure 2.1 on page 36shows the relationship between the four major steps of marketing any product or service and introducing it to the marketplace.

Step 1: Market analysis. Only a small percent of newproduct ideas reach the market. Of those that do,few meet marketing objectives. For new productideas to be successful, an organization must firstgain consumer insight to understand its intendedmarket. Marketers must study the consumer environment, which includes demographic trends,personal and group influences, motivation, attitudes,consumer knowledge, changing consumer needsand wants, consumption patterns, and consumerlifestyles. In addition, firms must analyze their corporate strengths and resources to understandwhether their product ideas are feasible. Theymust also examine both current and potentialcompetitors to make sure they “stay ahead of thecompetition.” Finally, firms must examine the stateof the market environment as a whole.

Lesson 1 13

Step 2: Market segmentation. The key to this step is identifying a group of consumers that are similarin many ways, but different from the rest of thebuying public. Although the goal in identifyingsegments is to find consumers with similarbehavior, not similar characteristics, consumercharacteristics are often used as substitutes forbehaviors. Table 2.1 on page 43 summarizes thevariables used to segment populations. Of course,the goal of market segmentation is to increase acompany’s profitability. Figure 2.4 on page 44shows how a company can define markets usingmultiple characteristics.

Step 3: Marketing mix strategies. This step focuses on the 4 P’s of marketing—product, price, promotion,and place (or distribution). In addition to these four elements, the marketing mix must includebrand strategy (page 50). An ideal situation is onein which brand equity exists—that is, a companyhas a favored position in targeted segments, whichallows the firm to charge higher prices that morethan offset the cost of building the brand.

Step 4: Implementation. Implementation is the key to theentire consumer-driven marketing strategy. Likeany plan, a marketing strategy is worthless unlessit’s carried out and carried out well.

Customer Loyalty and Retention Strategies

Do you know that it costs much more to gain a new customerthan to retain an existing one? That’s why building customerloyalty is so important. Companies are now focusing moreresources on loyalty and retention than ever before. On pages 54–58, you’ll read how companies are using customerrelationship management concepts and software in an effortto retain and expand their current customer base.

Consumer Behavior14

Lesson 1

Global Marketing StrategyChapter 2 ends with a rather detailed discussion related toglobal marketing strategies. All the countries (and consumers)of the world are more interrelated today than ever before inour history. Today any large organization (or one hoping tobecome large) needs a global marketing strategy. This requirescompanies to analyze how cultural, ethnic, and motivationvariables affect consumer purchase decisions. Companiesneed to determine whether their marketing can be standard-ized across geographic boundaries. They’ll have to studyintermarket segmentation. In other words, what do peoplehave in common no matter where they live?

Thinking global but acting local is the answer many marketershave selected. Even though people are different across countries, global advertising may be effective when it’s basedon similar lifestyles, when it appeals to basic human needsand emotions, and when it satisfies universal needs anddesires. Even so, companies must overcome language prob-lems and evaluate brand names carefully to be successful.

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accessibility 47 market segment 41

back-translation 63 market segmentation 41

congruity 47 marketing strategy 35

consumer insight 37 mass customization 44

cross-cultural analysis 59 mass marketing 42

cultural empathy 59 measurability 47

customer lifetime value 56 place (distribution) 49

ethnography 60 price 49

intermarket segmentation 60 product 49

market aggregation 42 promotion 50

market analysis 36 substantiality 47

This completes your second assignment. Review any materialyou found difficult. Then take Self-Check 2. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

You’ve also completed your first lesson. After you completeSelf-Check 2, review any material from Assignments 1 and 2that you found difficult. When you’re sure you understand theinformation covered in Lesson 1, take Examination 1.

When you complete the examination, you’ll be ready to startLesson 2. Lesson 2 introduces the model of the consumer decision process and starts the study of each step in that process. Assignment 3 introduces the decision process model. Assignment 4 focuses on the pre-purchase stage, and Assignment 5 examines the purchase stage. Finally,Assignment 6 covers the importance of a consumer’s evaluation after consumption.

Consumer Behavior16

Lesson 1 17

Self-Check 2

Indicate whether the following statements are True or False.

_____ 1. Most new products are successful.

_____ 2. The attractiveness of a market segment depends on a number of factors, includingits size and accessibility.

_____ 3. Value is the difference between what consumers give up for a product or serviceand the benefits they receive.

_____ 4. Having the lowest price isn’t as important as having the price fall in the rangeconsumers expect to pay for the product.

_____ 5. The opposite of market aggregation is mass marketing.

_____ 6. Research indicates that consumers perceive products with prices ending in roundnumbers and $.00 to be of lower quality.

_____ 7. Global advertising campaigns focus on sending the same message to consumers around the world.

_____ 8. A thorough market analysis includes an examination of current andpotential consumers.

(Continued)

Consumer Behavior18

Self-Check 2Match the following terms to the appropriate definitions.

Terms Definitions

_____ 9. back-translation

_____10. consumer insight

_____11. cross-cultural analysis

_____12. cultural empathy

_____13. intermarket segmentation

_____14. marketing strategy

_____15. mass customization

_____16. price

_____17. product

(Continued)

a. The ability to understand the inner logicand coherence of other ways of life andrefrain from judging other value systems

b. An understanding of consumers’ expressedand unspoken needs and realities thataffect how they make life, brand, andproduct choices

c. The identification of groups of customerswho transcend traditional market or geographic boundaries

d. The customization of goods and servicesfor individual customers in high volume and at relatively low costs

e. The allocation of resources to developand sell products or services that consumers will perceive to provide more value than competitive productsor services

f. The total bundle of disutilities given up byconsumers in exchange for a product

g. The comparison of similarities and differences in behavioral and physicalaspects of cultures

h. A procedure that attempts to achieve conceptual equivalency between messages in two languages

i. The total bundle of utilities orbenefits attained by consumers in the exchange process

Lesson 1 19

Self-Check 2


18. What is the goal of analyzing market segments?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

19. What criteria for selecting segments should an organization use in deciding which segments to target? Briefly explain each.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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NOTES

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Lesson 1Introduction to Consumer Behavior

When you feel confident that you have mastered the material inLesson 1, go to http://www.takeexamsonline.com and submityour answers online. If you don’t have access to the Internet, youcan phone in or mail in your exam. Submit your answers for thisexamination as soon as you complete it. Do not wait until anotherexamination is ready.

Questions 1–20: Select the one best answer to each question.

1. Joel is studying different cultures to learn how they’re alike and

how they differ. Joel is involved in

A. cross-cultural analysis.

B. cultural empathy analysis.

C. consumer insight analysis.

D. ethnographics.

2. Which one of the following individuals is a member of the

retail supply chain?

A. Congresswoman Brown, who is working on a new law protecting consumers from fraud

B. Manuel, who is in the process of buying a new house

C. Carol Talford, who purchases office supplies for her business

D. Jamie Jones, who owns a factory

EXAMINATION NUMBER:

08083900Whichever method you use in submitting your exam

answers to the school, you must use the number above.

For the quickest test results, go to http://www.takeexamsonline.com

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Examination, Lesson 1 22

3. Timothy, a college junior, has been asked to meet with a small group of other students and

a moderator to discuss their experiences at the college. Timothy is taking part in a/an

A. interview. C. scam.

B. survey. D. focus group.

4. You’ve been researching a possible market segment for your company. Through your

research, you’ve learned that most of the consumers in the segment eat out at least twice

a week, take elaborate summer vacations, enjoy going to the movies and concerts, and

have like tastes in clothing. This information tells you that this may be a profitable segment

because it has

A. accessibility. C. measurability.

B. congruity. D. substantiality.

5. Laurelyn is a market researcher. One of her clients wants to know whether consumers

have changed their opinions about his products over the past 10 years. Which one of the

following methods would Laurelyn most likely recommend to obtain this information?

A. Longitudinal study C. Shadowing

B. Experimentation D. Surveying

6. For a firm “to create a customer,” it must

A. develop a creative advertising program.

B. investigate the pricing strategies of the competition.

C. offer frequent discounts and other incentives.

D. understand what buyers want.

7. In which one of the following countries is mass marketing likely to be most effective?

A. The United States C. Afghanistan

B. Canada D. Japan

8. Designing an ad to appeal to hidden incentives of consumers was the goal of

A. positivism. C. post-modernism.

B. motivation research. D. post-motivation research.

9. The Children First Company realizes that mothers around the world love and protect their

children. Therefore, the company uses an international marketing campaign designed to

appeal to that desire to protect. What technique is Children First using in their campaign?

A. Intermarket segmentation C. Mass marketing

B. Mass customization D. Market aggregation


10. Which of the following statements about loyal customers of brands is incorrect?

A. They generate greater margins than new customers.

B. They help recruit new customers.

C. They’re becoming more common.

D. It’s less expensive to hold them than recruit new customers.

11. Sheila owns a small clothing store. She’s always talking with her customers about what

type of clothing they like and wear most often. Then, when she does the buying for the

store, she makes sure she purchases clothing that matches what they’re likely to buy.

Sheila is most likely using a _______ orientation.

A. wholesaling C. marketing

B. selling D. comprehensive consumer

12. Allen has a discount store. Which one of the following prices is most likely to be appropriate

for an item in his store?

A. $5.00 C. $9.00

B. $5.50 D. $9.99

13. Your job is to translate ads from English into Spanish. Then, several other people translate

the ads back into English. The purpose of this procedure is to

A. provide a variety of advertising messages.

B. eliminate translation errors.

C. gain insight into the culture behind the second language.

D. avoid using Spanish jargon.

14. Abe often watches how consumers use his products. Then, he uses what he sees to develop

innovative ideas for improving his products. The technique Abe is using is called

A. self-study. C. cross-cultural analysis.

B. consumer insight. D. mass customization.

15. The Super Grocery Store gives customers a 10% discount in December if their customer

cards have been used every week during the first 11 months of the year. With which of

the 7 R’s of marketing is this policy concerned?

A. Rate C. Reward

B. Retailing D. Relationship

16. The statement “The only person who can fire us all is the customer” implies that

A. consumers determine which firms survive and which fail.

B. customers can be manipulated into buying goods and services.

C. customers go elsewhere when prices increase.

D. research shows that customers are fickle.


17. Myra always goes to the same beauty shop. She could go somewhere else and get her hair

done for less money. However, the higher price is worth it to her because the employees at

the beauty shop make her feel that they’re glad to see her and she’s a valued customer.

With which of the 7 R’s of marketing is Myra concerned?

A. Reward C. Reliability

B. Resources D. Relationships

18. Margaret is the vice president of finance for a large pharmaceutical company. In her job,

she’s part of a team that decides which new product ideas will be funded for further

research. The team’s work is part of the

A. marketing strategy. C. market segmenting.

B. marketing research. D. market determination.

19. Joe’s refrigerator isn’t working right. He’s thinking about replacing it but wonders how he’ll

get rid of the old refrigerator. Joe’s concern lies in the _______ area of marketing.

A. obtaining C. disposing

B. consuming D. financial

20. Michael decided to buy a particular brand of coffeemaker because it came with a free

supply of coffee. The free coffee is part of the _______ portion of the marketing mix.

A. product C. promotion

B. price D. place

Consumer Decision Making

ASSIGNMENT 3Read this introduction. Then read the introduction to Part IIon page 67 and Chapter 3, “The Consumer Decision Process,”pages 68–99, in your textbook Consumer Behavior.

The vignette for Chapter 3 is about J.C. Penney. Maybe you’ve purchased products at a J.C. Penney store. If so,what motivated you to shop there?

The Consumer Decision Process Model

Chapter 3 focuses on the process consumers use to maketheir buying decisions. Figure 3.1 on page 70 outlines thestages in this process. Notice that your textbook uses threedifferent colors for these steps. The first three blocks involvethe pre-purchase steps. The orange block represents the actualpurchase phase. And the red, purple, and brown blocks relateto the post-purchase process. Chapter 3 briefly introduces eachof these stages. Then, Chapter 4 covers the pre-purchase stepsin more detail, Chapter 5 discusses the purchase stage, andChapter 6 covers the post-purchase steps.

Stage 1: Need recognition. In this stage, a person becomesaware of a need. In other words, an individual realizes that a difference exists between the desired state and the actual state of affairs.Some influences on this stage are family, values,health, age, income, and reference groups. Although marketers can’t really create a need, they may showhow a product can meet a need that consumersaren’t yet aware they have. That is, marketing canincrease need awareness.

Stage 2: Search for information. During the second stage,consumers may conduct internal and/or externalsearches. They may search actively or passively.Variables that may affect the length and depth of

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Consumer Behavior

the search are personality, social class, income,size of the purchase, past experiences, prior brandperceptions, and customer satisfaction.

Stage 3: Evaluation of alternatives. Once a consumer is aware of a need and has gathered the necessaryinformation, he or she can evaluate the alternatives.The consumer must identify the criteria to use in this evaluation. Learn the difference between salientattributes and determinant attributes (pages 80–81)and how they affect the consumer’s evaluation.

Stage 4: Purchase. The purchase step can be a very complicated one for consumers. Many influencescome into play during this stage. Carefully read the material on the purchase stage and study Figure 3.11 (page 82) to help you understand the factors that affect consumers who are at this step.

Stage 5: Consumption. After a customer makes a purchase,consumption can take place. Sometimes consump-tion occurs as the purchase is made, as with thecase of a haircut. At other times, consumption isdelayed—for example when an individual purchasesa new outfit to be saved for a special occasion.

Stage 6: Post-consumption evaluation. Have you everpurchased an expensive item and then continuedto watch ads for the item? For example, supposeyou’ve purchased and used a new computer butkeep looking at the details of ads for new computers.As you study the ads, you may decide that you gota better price or more features than those in theads. Or maybe you find an ad for a computer thatseems better than yours and at a better or equalprice. That’s all part of stage 6, post-consumptionevaluation. In this stage consumers feel either satisfaction or dissatisfaction with their purchase.A certain amount of doubt about your decision isnormal with more expensive items.

Stage 7: Divestment. Eventually you’ll have to get rid ofitems purchased. Stage 7, divestment, can beaccomplished through outright disposal, recycling,or remarketing.

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Note: As your textbook discusses each of the stages inthe consumer decision process model, it expands on theillustration in Figure 3.1. For example, Figure 3.2 developsthe first stage. Figure 3.4 adds the second stage. Figure 3.9 covers stages 1–3, and so on. Finally, Figure 3.14 is the complete, expanded consumer decision process. Each ofthese figures also contains a box with the continuing exampleof Joe College’s purchase of a car. Reviewing these figures and reading the discussion of Joe as he goes through thestages is a good tool to help you understand this informationas both a student of marketing and as a consumer of goodsand services.

Even though the stages in the decision process are presentedin a particular order, in practice consumers often completethem in a different order or intermingle two or more stepsinto one.

Both manufacturers and retailers now use the customerdecision process model to help in their marketing. Retailers,who once focused only on the purchase stage, are now looking at the stages before purchase as well. Manufacturerstoday are taking more responsibility for what happens in-storerather than leaving that all to retailers.

Variables That Shape the Decision Process

Many variables influence the customer decision process.Your text organizes these influences into individual differences, environmental influences, and psychologicalprocesses. These three categories are introduced in Chapter 3 and explained in more detail in later chapters.

■ Individual differences are presented in detail in Chapters 7–10.

■ Environmental influences are presented in detail inChapters 11–13.

■ Psychological processes, which influence consumerbehavior, are the topics of Chapters 14–16.

Lesson 2 27

Types of Decision Process

Consumers don’t engage in each stage of the decision modelto the same extent for every decision. They make many decisions so quickly that they may not even be aware of goingthrough the various stages. Other decisions they make over a long period of time, spending significant time and effort oneach stage. Figure 3.15 on page 89 explains the consumerdecision process continuum reflecting this variance. Theillustration goes from extended problem solving (EPS) in whichconsumers generally follow all seven stages to habitual decisionmaking in which consumers make purchases through habitwithout giving much thought to the process. Many decisions,of course, fall somewhere between these two in the areaknown as midrange problem solving (MPS).

Consumers purchase many items as repeat purchases. Yourtextbook presents two possibilities for the way in which consumers make such purchases: repeated problem solvingand habitual decision making. Knowing how consumersmake such regular purchases can help marketing people toencourage consumers to purchase their particular product or service.

Consumers don’t always plan their purchases. Impulse buyingoccurs often as the result of product displays or point-of-salepromotions. Even consumers happy with their current brand may switch because they seek a little variety in theirpurchasing power.

Table 3.1 on pages 96–97 presents an excellent summary ofthe consumer decision process. Read each of the questions presented under each stage and make sure you understandhow the question fits into that particular stage in the process.

Consumer Behavior28

This completes your third assignment. Review any material you found difficult. Then take Self-Check 3. Check your answerswith those provided in the back of this study guide. Review thematerial for any of the questions you missed.

Lesson 2 29


cognitive dissonance 84 internal search 74

consumer decision process (CDP) model 70 involvement 93

determinant attributes 81 limited problem solving(LPS) 90

evaluative criteria 80 midrange problem solving (MPS) 90

extended problem solving (EPS) 89 need recognition 71

external search 74 salient attributes 80

Consumer Behavior30

Self-Check 3


_____ 1. Motivating consumers to buy a specific brand from a specific retailer requires thecombined efforts of the retailer and manufacturer.

_____ 2. Marketers are usually unable to raise consumers’ awareness of unrecognizedneeds or problems.

_____ 3. The final stage in the CDP model is consumption.

_____ 4. Salient attributes are more important to the consumer than determinant ones.

_____ 5. When retailers achieve equivalence on salient attributes such as price and quality,consumers make choices based on the details such as ambiance or personalattention given to the customer.

_____ 6. Purchase and consumption always occur simultaneously.

_____ 7. Consumers may experience a sense of either satisfaction or dissatisfaction duringpost-consumption evaluation.

_____ 8. In most situations, consumers have both the motivation and time to engage inextended problem solving during decision making.

_____ 9. Understanding what consumers want enables manufacturers to better manage the number of product variations they offer to consumers.

_____10. Consumers often express satisfaction with their present brand but still engage inbrand switching.

(Continued)

Lesson 2 31

Self-Check 3


Terms Definitions

_____11. cognitive dissonance

_____12. evaluative criteria

_____13. external search

_____14. internal search

_____15. knowledge

_____16. need recognition


17. What is the importance of the consumer decision process (CDP) model to companies?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

18. What are the four factors that influence the extent of the problem-solving process?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


a. The retrieving of knowledge from memory

b. Information stored in memory

c. Standards and specifications used to compare different products and brands

d. A situation in which an individual perceives a difference between the ideal state and theactual state of affairs

e. A situation in which consumers second-guesstheir purchase decision

f. The collecting of information from peers, family, and the marketplace

Consumer Behavior

ASSIGNMENT 4Read this introduction. Then read Chapter 4, “Pre-PurchaseProcesses: Needs Recognition, Search, and Evaluation,” pages100–146, in your textbook, Consumer Behavior.

According to the Chapter 4 opening vignette, Americanadults receive only about half the health care they need tomaintain good health. Part of the problem is that they aren’teven aware of their need for such care, and so don’t evenstart the consumer decision process required to find it. Inother words, their problem is one of need recognition, whichyou’ll study in detail in Chapter 4.

Need Recognition

Figure 4.1 on page 102 shows what happens during the needrecognition process. Try to relate the figure to a time whenyou felt a need for a particular product or service. Notice that the presence of a discrepancy isn’t enough to cause anindividual to act. The difference between the desired andactual state must be sufficient for the person to notice it.Although need recognition often occurs for reasons outside a company’s control, it’s often possible for a company toinfluence it. This, of course, is an important part of marketinga product or service.

Businesses must understand need recognition in order to

■ Reveal opportunities a business may exploit

■ Identify a market segment with unsatisfied desires

■ Provide new sales opportunities

■ Reveal barriers to a firm’s success

Once that’s done, a company can focus on activating the needrecognition. As mentioned previously, the difference betweenthe actual and desired states must reach a significant levelbefore consumers will proceed through subsequent stages of the CDP. In addition, consumers won’t proceed with a purchase unless they believe that a solution to the need iswithin their means. If these conditions are met, consumerswill move to the information search stage.

32

Search

Whether consumers use an internal search or an externalsearch depends on both the adequacy and quality of infor-mation they have in relation to their needs. The degree ofsatisfaction with a previous purchase also influences thetype of search used. If consumers were satisfied with a previous purchase, they’re likely to use internal information.However, if they were unhappy with their last purchase, then they’re likely to seek additional external information.Figure 4.7 on page 110 shows how this process works.

For consumers who need to do external searching, the Internetplaces a whole world of information at their fingertips. Themiddle portion of Chapter 4 discusses how consumers decidewhat sources to search, and especially how they use theInternet in seeking pre-purchase information.

How much consumers are willing to search for information isa function of the cost (time, money, and energy) of seekingnew information compared to the benefit (making a betterdecision) of the new information. Search costs depend onhow easily and quickly consumers can gather additionalinformation. Thanks to the Internet, the cost of additionalinformation is decreasing. The benefits involved in a searchdepend on how consumers perceive the risk of making awrong decision. Most people consider expensive items as carrying greater potential risk. Therefore, the benefits ofadditional information increase as the cost of the product or service increases.

Pre-Purchase Evaluation

Consumers must identify choice alternatives before they canevaluate them. Naturally, a company wants its brands to be among those being considered. Figure 4.14 on page 128shows the pre-purchase evaluation process. Notice that consumers can either rely on preexisting evaluations (suchas for repeat purchases discussed in Chapter 3), or they can construct new evaluations. When new evaluations arenecessary, consumers must determine whether to use a

Lesson 2 33

categorical process or a piecemeal process. When the alter-natives share many concrete attributes, consumers are likelyto use a categorical process. However when alternatives don’tshare such concrete attributes, a piecemeal process may benecessary. (These two processes are discussed on page 132.)

Chapter 4 closes with a discussion of noncompensatory andcompensatory evaluation strategies. A noncompensatory evaluation strategy is an approach in which the strength ofone attribute can’t offset (compensate for) the weakness ofanother attribute. A compensatory evaluation strategy is anapproach in which the strengths of one attribute may offsetthe weakness of another attribute. As you read through thissection, consider each strategy, using the information inTable 4.7 on page 137. The best way to see how each works isto try it out. Notice that different evaluation strategies resultin different selections. That’s why companies are very inter-ested in knowing how consumers evaluate criteria (attributes)and how to influence that process.

This completes your fourth assignment. Review any materialyou found difficult. Then take Self-Check 4. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

Consumer Behavior34


attraction effect 130 lexicographic strategy 136

brand extensions 133 ongoing search 111

categorization process 132 piecemeal process 132

conjunctive strategy 137 pre-purchase evaluation 127

consideration set 128 pre-purchase search 107

cutoff 135 retrieval set 131

elimination by aspects strategy 136 search 109

external search 109 selective need recognition 108

generic need recognition 107–108 simple additive 138

internal search 109 weighted additive 138

Lesson 2 35

Self-Check 4


_____ 1. Product innovations can cause need recognition.

_____ 2. Marketers need to understand evaluation strategies because such strategies ultimately affect consumer choice.

_____ 3. The degree of satisfaction with prior purchases has been shown to be unrelatedwith the consumer’s reliance on internal search.

_____ 4. Under categorization processing, the evaluation of a choice alternative is determined primarily by the category to which the alternative is assigned.

_____ 5. Need recognition occurs whenever some discrepancy exists between the actualstate and the desired state, regardless of the size of this discrepancy.

_____ 6. A lexicographic strategy is one example of a compensatory evaluation strategy.

(Continued)

Consumer Behavior36

Self-Check 4Match the following terms to the appropriate definitions.

Terms Definitions

_____ 7. compensatory evaluation strategies

_____ 8. consideration set

_____ 9. conjunctive strategy

_____10. cutoff

_____11. lexicographic strategy

_____12. need recognition

_____13. noncompensatory evaluation strategies

_____14. piecemeal processing

_____15. search

_____16. simple additive compensatory

a. The motivated activation of knowledge storedin memory or acquisition of information fromthe environment

b. Those alternatives considered during decision making

c. Constructing an evaluation of a product byadding together bits and pieces of information

d. A restriction or requirement foracceptable performance

e. An evaluation process in which a product’sweakness on one attribute may be offset by a strong performance on another attribute

f. An evaluation process in which brandsare compared initially on the most important attribute

g. An evaluation process in which a product’sweakness on one attribute can’t be offset byits strong performance on another attribute

h. An evaluation process in which cutoffs areestablished for each salient attribute andeach brand is compared, one at a time,against this cutoff

i. An evaluation process in which the consumercounts the number of times each alternativeis judged favorably and then chooses thealternative with the largest number ofpositive attributes

j. The perception of a difference betweenthe desired state of affairs and the actual situation sufficient to arouse and activate the decision process

(Continued)

Lesson 2 37

Self-Check 4


17. What is the difference between generic and selective need recognition? When mighteach be an appropriate target of marketing activities?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

18. Why is important to understand whether the consumer recalls a brand from a consideration set or merely recognizes it?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


Consumer Behavior

ASSIGNMENT 5Read this introduction. Then read Chapter 5, “Purchase,”pages 148–187, in your textbook, Consumer Behavior.

The opening vignette for Chapter 5 details the growth ofFarmacias Similares, a Mexican drugstore chain, which hasmade a surprising success of marketing generic drugs to poorpeople, often without health insurance. This chain’s approachillustrates how retailers can influence where people buy, whatthey buy, and even whether they’re able to buy. How con-sumers make these decisions—that is, how they behave in thepurchase stage of the consumer decision process—will be thefocus of this assignment.

To Buy or Not to Buy

Even if consumers complete the first three stages of the CDP model, they still may not make the decision to purchase.They may change their minds for any number of reasons—changed motivations and circumstances, new information, lack of available product, change in economic status, ormany other reasons. As you can see, the purchase stage is acritical, but complicated one. In fact, your textbook lists fivedecisions that consumers make during this stage (page 150).

Retailing and the Purchase Process

Table 5.1 on page 153 lists both personal and social motivesfor shopping. Why do you shop? What about your friends orfamily? How many different motives can you recognize inyourself or those you know? While it might be fun for you tothink about why you and others shop, it’s very important forretailers to determine why their consumers shop. Why peopleshop affects where, when, and how they shop. Consumers whoshop for fun probably visit many different retailers and browsebefore making a purchase. Consumers who hate shoppingwant to go to one place that will definitely have what theywant, make the purchase quickly, and get home. Consumerswho shop as a social experience go only to those retailersaccepted by their peers and may not buy anything at all.

38

Lesson 2

Consumers must decide both the type of retailer and thespecific retailer to visit. These two decisions are interactive in that one affects the other. Figure 5.1 on page 157 showsthe purchase decision process and factors that affect it. Thestore image (that is, the consumer’s overall perception of astore) is how a consumer usually selects a store.

Determinants of RetailerSuccess or FailureA major section of Chapter 5 relates to factors that determinethe success or failure of a retailer. The textbook mentions thefollowing influences:

■ Location. The location of a store is often a critical factorin this determination. In fact, a retail adage says, “Thethree most important factors in the success of a retailerare location, location, and location.” However, it’s notreally the physical location that matters as much as howconsumers perceive the cost in terms of time and hassleof getting to the store.

■ Nature and quality of assortment. How likely is the storeto have the product for which you’re looking? How muchvariety or selection will it have? Will the products be ofthe quality level that you demand? The nature and quality of assortment is another important factor in theselection process.

■ Price. Do you like to find a bargain? Or do you believethe old saying that you get what you pay for? Are youwilling to go out of your way or do without some servicein order to save money? Or do want knowledgeablesalespeople to assist you in your buying decisions?Maybe your answers depend on what type of productyou’re purchasing. For many products, price is animportant determinant of store selection. However, consumers aren’t always looking for the lowest price.They’re often looking for a price in an acceptable range.Suppose you’re planning to purchase a particular itemnext month. However, because the product is on salethis month, you buy it now instead. The retailer hasn’t

39

Consumer Behavior

really gained a sale. It’s only moved your purchase from next month to this month—and to a lower price!Retailers need to understand how consumers usethe overall image of the retailer to filter the effects ofprice advertising.

■ Advertising and promotion. Retailers must use all theiradvertising and other forms of promotion as tools to create a retail brand or overall image. The current trendseems to be away from price information and towardimage advertising and nonprice information.

■ Sales personnel. Unfortunately, many retailers haven’tfocused on hiring and training sales personnel to matchconsumer expectations. If they want to improve sales,retailers must provide increased training and experience,visionary leadership, and a corporate culture that supports sales personnel.

■ Services offered. The services a store offers vary accordingto the type of outlet and consumer expectations.

■ Physical store attributes. Another important considerationis the store atmospherics, which can impact both thedirection and duration of consumers’ visits. Atmosphericsinclude such things as elevators, lighting, air conditioning,restrooms, aisle width, parking facilities, and carpeting. A retailer must know its customers and what type ofstore attributes they expect.

■ Clientele. Retailers must determine what type of individ-uals they want to cater to and develop their businessaccordingly.

■ Point-of-purchase materials. Today point-of-purchase(POP) displays and signs are also a determinant of storesuccess. You’ve already learned that manufacturers aretaking a more active role at the purchase stage. UsingPOP materials, especially the new one made possible bydigital technology, is one way in which they do so.

■ Consumer logistics. Consumer logistics refers to the speedand ease with which consumers move through the retailing and shopping process. Carefully study Table 5.2on page 170, which provides information about each ofthe seven stages in consumer logistics.

40

The next part of Chapter 5 discusses the variety of channelsused by retailers to reach consumers. Today, consumers purchase from a variety of retailing formats, including physicalstores, in-home shopping facilities, and online stores. As withother aspects of retailing, businesses must determine thebest format or formats to meet the needs of their customers.

Consumer Resources: What PeopleSpend When They Purchase

Chapter 5 concludes with an interesting discussion on timeand cognitive resources. When consumers are shopping,they’re spending not only their money but also their time.With today’s busy lifestyles, people often value their time asmuch as or more than their money. Retailers must be awareof how important time is to their customers and make thenecessary adjustments to meet their “time needs.” Some grocery stores promise to have all their checkout lanes openbetween 5:00 and 6:00 P.M., when shoppers are stopping ontheir way home from work. This type of service can mean alot to tired employees who are anxious to get home after along day at work.

Lesson 2 41


attention 181 leisure time 179

capacity 181 monochronic time 181

cognitive resources 181 multichannel retailing 171

consumers logistics 169 nondiscretionary time 179

data-based marketing (data mining) 151 polychronic time 181

discretionary time 179 store atmospherics 165

image advertising 163 store image 158

information advertising 163

Cognitive resources refers mainly to how a retailer gets theattention of consumers. Consumers are overloaded withinformation today. The overload may affect how much capacitya consumer can “spend” on a particular purchase decision.

This completes your fifth assignment. Review any material youfound difficult. Then take Self-Check 5. Check your answerswith those provided in the back of this study guide. Reviewthe material for any of the questions you missed.

Consumer Behavior42

Self-Check 5


_____ 1. A common mistake of retailers is to use a strategy that emphasizes lowest price to appeal to the minority of consumers who value lowest price the most at theexpense of losing the majority of consumers who prefer other attributes to lowest price.

_____ 2. Once a customer has fully planned a purchase, it’s impossible for companies todivert that consumer from fulfilling his or her purchase plans.

_____ 3. Internet retailing should be more successful in attracting consumers who considershopping to be work than in attracting consumers who consider shopping to be fun.

_____ 4. The importance of price as a determinant of store patronage varies by type of product.

_____ 5. In the purchase decision process, consumers face only one decision—what to buy.

(Continued)

Lesson 2 43

Self-Check 5


Terms Definitions

_____ 6. category killers

_____ 7. cognitive resources

_____ 8. direct marketing

_____ 9. direct selling

_____10. image advertising

_____11. information advertising

_____12. monochronic time

_____13. multichannel retailing

_____14. polychronic time

_____15. store atmospherics

_____16. store image

(Continued)

a. The mental capacity available for undertakingvarious information-processing activities

b. Reaching diverse consumer segments through a variety of formats based on their lifestyles andshopping preferences

c. Any form of face-to-face contact between asalesperson and a customer away from a fixedretail location

d. The physical properties of the retailenvironment designed to create an effecton consumer purchases

e. Performing only one activity at a time

f. The use of visual components and words thathelp consumers form an expectation about theirexperience in the store

g. Performing several activities simultaneously

h. Providing details about price and other productattributes that might influence purchase decisions

i. Strategies to reach consumers in the home,office, or airplane, instead of relying on them to visit stores

j. Retailers that specialize in one category of merchandise

k. Consumers’ overall perception of a store

Consumer Behavior44

Self-Check 5


17. What is the difference between a planned purchase and a partially planned purchase?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

18. Store location is an important determinant of retailer success or failure. What are themental components of store location?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 6Read this introduction. Then read Chapter 6, “Post-PurchaseProcesses: Consumption and Evaluation,” pages 188–232, inyour textbook, Consumer Behavior.

Do you think it’s smart for service businesses like healthclubs to sign customers up for longer periods and get themto pay up front? It may seem so, but the opening vignette ofChapter 6 illustrates how such businesses may be hurtingtheir long-run business prospects. Why? Because they’vefocused too much on the purchase stage and too little on theconsumption stage, which is the topic of this assignment.

Consumption

Your textbook divides its discussion of consumption into two major sections: consumption behaviors and consumptionexperiences. The first one, consumption behaviors, is quiteobjective. It considers such things as when and where the consumption occurs. Importantly, it also considers howmuch is consumed and how to increase this amount; in fact,in usage volume segmentation, businesses utilitize theamounts different people consume as a way of segmentingmarkets for their product. The second part, consumptionexperiences, is more subjective. It concentrates more on thefeelings consumers experience during consumption.

Post-Consumption Evaluations

Once consumption is complete, consumers evaluate theirchoice to determine whether it was satisfactory. If the con-sumers’ evaluation is positive, then they’re likely to purchasethe item again. If their consumption experience is negative,the customer may not make repeat purchases, and he or shemay tell other consumers about the negative experience. Theresult is that the business in question finds it difficult tokeep the customer and it becomes harder for the company toattract new customers. For these reasons, companies shouldencourage consumers to complain to the company—not toother consumers. This gives the company an opportunity to

Lesson 2 45

fix what was wrong. In doing so, the business may not onlysave that customer but may also prevent the loss of otherpotential customers.

For a retailer, the key to post-consumption evaluations is thesatisfaction of the customer. Whether or not the consumerfinds the consumption experience satisfactory depends onhow the product performed compared to the expectations ofthe consumer. For example, if you go to a fast-food restaurantto grab a quick lunch, your expectations are very differentthan when you go to a fine-dining restaurant for dinner. Ifyou received the same meal at both locations you’d probablybe satisfied with the fast-food experience but disappointed inthe fine-dining one.

This completes your sixth assignment. Review any materialyou found difficult. Then take Self-Check 6. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

You have now completed your second lesson. Review anymaterial from Assignments 3–6 that you found difficult. Whenyou’re sure you understand the information covered in Lesson 2,take Examination 2.

Consumer Behavior46


blogs 215 negative reinforcement 202

compulsive consumption 207 nonuser 190

confirmation 222 positive disconfirmation 222

consumption norms 206 positive reinforcement 202

consumption rituals 206 punishment 203

expectancy disconfirmation model 222 usage volume segmentation 197

negative disconfirmation 222 user 190

After Examination 2, you’ll be ready to move on to Lesson 3. Lesson 3 introduces the individual determinantsof consumer behavior and the importance of understandingthe key characteristics of target consumers. In Assignment 7,you’ll learn about demographics as well as other psychographicand personality variables. Then, in Assignment 8, you’ll studythe diversity of needs that motivate consumers to purchase. InAssignment 9, you’ll focus on consumer knowledge and feelings.Finally, in Assignment 10, you’ll learn about the importance ofconsumers’ beliefs, feelings, attitudes, and intentions.

Lesson 2 47

Self-Check 6


_____ 1. Sometimes it’s beneficial to segment a market according to when consumption occurs.

_____ 2. By setting high expectations, companies increase the odds of satisfying consumers.

_____ 3. Depending on the nature of the consumption experience, companies may find it useful to position their products based on the feelings and experiences of consumers during consumption.

_____ 4. Positive disconfirmation exists when a product provides more than expected.

_____ 5. The size of the user market segment speaks to future growth opportunities.

_____ 6. It’s usually more expensive to retain an existing customer than to recruit a new one.

_____ 7. Understanding how consumers use milk was an essential element in the developmentof the “got milk?” advertising campaign.

_____ 8. According to the expectancy disconfirmation model, satisfaction depends on a comparison of pre-purchase expectations to actual outcomes.

(Continued)

Consumer Behavior48

Self-Check 6


Terms Definitions

_____ 9. compulsive consumption

_____10. confirmation

_____11. consumption norms

_____12. negative disconfirmation

_____13. usage volume segmentation

(Continued)

a. The outcome that occurs when a productdelivers less than expected

b. A retailing technique that divides consumers into heavy users, moderateusers, and light users

c. Those practices that, though undertakento bolster self-esteem, are inappropriate,excessive, and disruptive to the lives ofthose involved

d. The outcome that occurs when a product’sperformance matches expectations

e. Informal rules that govern ourconsumption behavior

Lesson 2 49

Self-Check 6


14. Why is it important to understand how a product is used?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

15. What determines satisfaction?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


NOTES

Consumer Behavior50

51

Lesson 2Consumer Decision Making



1. The XYZ Company has decided to run an ad that shows its

product and a competitor’s product. The competitor’s product

isn’t as good as that of XYZ. What technique is XYZ using

in this ad?

A. Retrieval set

B. Evoked set

C. Attraction effect

D. Evaluation effect

2. Alfred and his wife, Lynn, both work full time. They have two

young children and are active in supporting their church.

According to this description, you would expect Alfred and Lynn

to have _______ time.

A. little nondiscretionary C. much discretionary

B. little discretionary D. much leisure

EXAMINATION NUMBER:




Ex

am

ina

tion

Ex

am

ina

tion


3. You and your family are in the process of purchasing your first home. You expect to live in

this home for the remainder of your life. Therefore, finding the perfect home is important to

you. What process will you most likely use?

A. Noncompensatory evaluation strategy C. Limited problem solving

B. Compensatory evaluation strategy D. Extended problem solving

4. A small group of consumers purchase things they don’t need and don’t even want just to

feel better about themselves. This situation is known as

A. compulsive consumption. C. expectancy disconfirmation.

B. negative reinforcement. D. consumption ritualization.

5. Herbert’s car is four years old. Because he believes cars begin to have problems after

three years, he’s very interested in a new car. Herbert recognizes a need for a new car

because the age of his car differs enough from his _______ state.

A. perceived C. ideal

B. actual D. desired

6. Manuel is buying a new camera. He has decided that price, size, and quality are the three

main attributes. If all the attributes are equally important to him but he’s willing to trade

some of one for another, he’ll probably use a _______ strategy.

A. lexicographic C. simple additive

B. conjunctive D. weighted additive

7. Orange growers often run ads about the health value of orange juice. Such ads are an

attempt to elicit _______ need recognition.

A. selective C. actual

B. generic D. desired

8. Before VCRs were available, consumers often had to miss a favorite TV show because

something prevented them from watching it. When VCRs were introduced, consumers

could watch a favorite show at their convenience. The result of the introduction of VCRs

was to

A. create a need. C. develop brand loyalty.

B. meet unperceived consumer needs. D. create a market.

9. Melany is looking for a new dress for a special occasion. She feels she can afford to pay

no more than $80 for the dress. In this example, Melany is using

A. a cutoff. C. noncompensatory evaluation.

B. a signal. D. compensatory evaluation.


10. While she was watching TV last night, Kim saw many ads. The only one she remembers

today is one for a new product that interested her. That ad was the only one that achieved

A. retention. C. attention.

B. exposure. D. comprehension.

11. In the cookie aisle of a supermarket, a cookie manufacturer has placed a tic-tac-toe game

at child height. The game features company products and mascots that children can

manipulate to play the game. This game is an example of a/an

A. physical store attribute. C. incentive offer.

B. point-of-purchase display. D. multichannel device.

12. Which one of the following slogans aims to increase the level of usage of a product?

A. Try it—you’ll like it. C. You deserve our best.

B. Use it once a day for younger-looking skin. D. Get the most for your money.

13. Liz thinks shopping is a chore that has to be done. Therefore, she’s more likely to

A. compare brand labels. C. use the Internet for shopping.

B. shop with friends. D. go bargain hunting.

14. John and David went to a restaurant for dinner. John didn’t know anything about the

restaurant, but David had heard the food and service were excellent and the prices

reasonable. As it turned out, the food was good and reasonable, but the service was

mediocre. David was very disappointed, but John was satisfied. The difference in their

reactions can be explained by

A. cognitive dissonance.

B. conjunctive strategy.

C. the consumer decision process.

D. the expectancy disconfirmation model.

15. Clyde is wondering whether he should add an Internet site where customers can place

orders for his products. In making this decision, Clyde should be aware that

A. most people who visit a Web site make a purchase.

B. the percent of people shopping in places other than a store is increasing.

C. in-home shoppers are usually older than shoppers at a store location.

D. in-home shoppers usually have a slightly lower household income than shoppers at astore location.

16. Some consumers go to the movies at night while others go in the afternoon. Those who

market movies should use that information to segment their market based on

A. when consumption takes place. C. benefit desired.

B. demographics. D. the adolescent market.


17. You recently purchased a new computer. Today you saw an ad for another computer brand

that comes with a free printer. You wonder if you should have bought that brand instead of

the one you purchased. You’re experiencing

A. selective need recognition. C. categorization process.

B. negative reinforcement. D. cognitive dissonance.

18. Mark becomes slightly ill if he eats dairy products. However, if he takes a pill for people

who have this problem, he can have dairy products without becoming ill. Mark’s experience

with this pill is an example of

A. negative disconfirmation. C. negative reinforcement.

B. positive disconfirmation. D. positive reinforcement.

19. When Ada needed a new outfit for work, she went to a dress store that carries all the

brands she likes. After looking at the various dresses, she selected a new suit by Jones

of New York. This is an example of a/an _______ purchase.

A. fully planned C. unplanned

B. partially planned D. retailer-driven

20. Because you worked late, you realize you’re not going to have time to cook when you get

home. You think about the various restaurants and delis you’ll pass on your way home.

Your consideration of which of those your family would prefer is an example of

A. need recognition. C. pre-purchase evaluation.

B. search for information. D. purchase decision.

21. Which ethnographic technique would be most useful for developing a profile of consumers

who are unaware of a product?

A. Shadowing C. Unfocus groups

B. Consumer journey D. Extreme user interviews

22. Two students are discussing point-of-purchase (POP) materials. Student A says that

POP promotions are usually expensive. Student B says that d-POP displays can be

implemented rapidly. Who is correct?

A. Only Student A C. Both students

B. Only Student B D. Neither student

23. Why do consumers seeking health information on the Internet often use a search engine?

A. They’re ignorant of the best health information sites.

B. Search engines provide less irrelevant information.

C. They think information repeated across multiple sites is more reliable.

D. Search engines provide the most objective information.

Examination, Lesson 2

24. Which of the following would appeal most to consumers seeking haptic information?

A. A free CD-ROM about a product

B. A store-window display of the product

C. Cut-out packaging letting them feel the product

D. A 3D model of the product on a company Web site

25. For consumers seeking information on the Internet, a “funnel” search strategy would

start with a

A. generic product term. C. brand name.

B. retailer name. D. specific product description.

55


NOTES

56

Individual Determinants ofConsumer Behavior

ASSIGNMENT 7Read this introduction. Then read the introduction to Part IIIon page 233 and Chapter 7, “Demographics, Psychographics, and Personality,” pages 234–287, in your textbook ConsumerBehavior.

According to the opening vignette for Chapter 7, firms likeIDEO and Design Continuum have helped major corporationscreate some of their most recent product successes. Thevignette shows how ethnographic research and brainstorminghave contributed to the creation of these products. As you read,think about what you might learn from ethnographic research,or what it would be like to take part in a brainstorming session.

Analyzing and PredictingConsumer Behavior

Chapter 7 introduces concepts related to understanding consumer behavior. The first topic is demographics, which refers to the size, structure, and distribution of a population.To understand the types of things included in demographics,examine the material in Table 7.1 on page 237. Each numberin this illustration represents the percent of the world’s pop-ulation makeup. Demographics can help companies as theyidentify potential target markets around the world.

Demographic analysis is used in two ways: as market seg-ment descriptions and in trend analysis. Consumer analystsuse demographics to predict changes in the demand andconsumption of specific products and services. Demographicanalysis even provides information for social policy andindustrial demand.

57

Le

ss

on

3

Le

ss

on

3

Changing Structure of Consumer Markets

To plan successfully, companies need information aboutmarkets and their four main components: people with needs,ability to buy, willingness to buy, and authority to buy.Chapter 7 is concerned with the first component in this list—the people factor.

People are the foundation of markets and, therefore, of market analysis. One demographic area studied is the size of future populations, or how many people there will be in a given year. To make this determination, analysts study avariety of factors (see pages 239–243). Notice that Figure 7.1on page 240 shows a wide variance in the size of the residentpopulation in the future. That’s because you have to use arange of possibilities when making the projections.

Changing Age Distributionin the United StatesThe average age of people in the United States is increasing.Sometimes students think that’s just because everyone’s getting older every day. It’s really more complex than that.Newborns lower the average age of the population, whileolder folks increase it. Some of the factors leading to theincrease in the average age are a reduced birthrate and alonger life span.

Table 7.2 on page 244 shows some of the projected changesin age distribution in the United States during the years2000 and 2050. Consider some of the helpful informationretailers can gain when they combine information from sucha chart with other pertinent data:

■ Although the number of young children is expected todecline, their importance as consumers is not. Why?Because first-order babies (first children in a family) willcontinue to generate high demand for quality productsand services.

Consumer Behavior58

■ The number of teenagers continues to increase. In addition, teenagers today are often given buying authorityfor family items both because parents may be too busyand teenagers are likely to find shopping more fun.

■ Young adults continue to be a growing segment.Companies may want to think of this group as twopotential segments (20 to 24 and 25 to 34), as theyounger group may bring different attitudes to issuesthey consider “grown-up” ones.

■ Baby boomers, the large group of people born between1946 and 1964 were (and are) an extremely attractivemarket due to their sheer size. They often spend moreand save less than the previous generation, makingthem an even more attractive target market. In 1996,the first boomers turned 50, and more turn 50 everyday. Think about what the aging of the boomers maymean in terms of products and services desired. In their40s, they drove the market for cosmetics, skin care, andexercise focusing on maintaining youthfulness. In their50s, they may be more concerned with retirement savings, health issues, or travel. What will it mean in2006 when the first boomers turn 60 and start movingtoward retirement?

■ In the 1980s, yuppies (young urban professionals) werea popular market. These were young adults (under 35)who lived in urban areas. They had professional jobsand, therefore, high incomes. Now members of that market have aged and are called muppies (middle-agedurban professionals). What does the aging of this groupmean to retailers?

Many consumers can be classified as part of the young-again market—those with a cognitive age lower than theirchronological age. Retirees who feel young will probablyspend more money on different products and services thanthose who feel old. One determinant of whether someone isin the young-again market is health.

North Americans aren’t the only ones with an aging population.The populations of Japan and Europe are also becomingolder. In addition to affecting products and services needed,

Lesson 3 59

companies will have to understand what growth in this segment means for labor and retirement policies, politicalelections, family structures, healthcare, and more.

Changing Geography of Demand

Another factor that affects retailing methods is geodemography,or the study of the changing geography of demand. Marketscan be segmented geographically for analysis into cities, suburbs, exurbs (areas beyond the suburbs), metropolitan statistical areas (MSA), primary metropolitan statistical areas(PMSA), and consolidated metropolitan statistical areas (CMSA).Marketers in the United States must know which states aregrowing and which are declining. Information like that in Table7.3 on pages 255–256 can be invaluable to businesses as theyplan their marketing strategy.

Economic Resources

As you’ve already learned, the three primary resources thatconsumers spend when purchasing are economic (money),temporal (time), and cognitive (mental). Pages 256–257 inyour textbook concentrate on economic resources, or theability to buy. The combination of age and income is the mostfrequently used demographic variable to define segments.

Be sure you understand the difference between income (page 256) and wealth (page 257). Income is the money receivedfrom wages, salary, interest, and welfare payments. Wealth,on the other hand, refers to a family’s net worth (assets) minusits liabilities (debts). While income level is likely to impact howmuch a family can accumulate, people with low income in oneperiod of their life (while a student, for example) often becomewealthy later. In addition, someone with great wealth (such asa retired person) may have low income at the time. Althoughincome is more often used to segment the market, wealth hasrecently become more important.

Depending on the products and services offered, companiesmay target the up market (superaffluents), the down market(those in mid and lower income ranges), and/or the povertymarket. Although the gap between rich and poor is widening,

Consumer Behavior60

not everyone sees that gap as a major problem. For example,if your income is increasing and you expect it to continue todo so, you may not care that Bill Gates’s income is growingfaster than yours. Therefore, a more important factor may be whether people feel their own income is growing at anacceptable rate.

Global Market Opportunities: Reactingto Slow-Growth Market Conditions

When countries experience little or no population growth,businesses in those countries may turn to global markets tofind growth. Of course, just having a lot of people doesn’tmean a country is a good market. Those people have to beable to buy. That means their economic resources shouldalso be growing. When a business seeks growth in anothercountry, it should look at both population growth and theability to buy. In addition, doing business in another countrymeans you should also understand that country’s consumerbehavior. Many developing countries have high birthrates,strong population growth, and low annual income.Stimulating product trial is often the key objective in thesemarkets. (Pages 264–270 outline consumer behavior in various countries around the world.)

Personality and Consumer Behavior

In the consumer world, personality refers to consistentresponses to environmental stimuli. The textbook presentsthree major theories of personality: psychoanalytic, socio-psychological, and trait factor. Psychoanalytic theory focuseson unconscious motivations. Socio-psychological theory recognizes the interdependence of the individual and society.Finally, trait-factor theory suggests that an individual’s personality is made of predispositional attributes called traits,which can be used to segment the market to assist in development of brand personality. Trait factor has been theprimary basis of marketing personality research.

Lesson 3 61

Personal Values

The failure of personality measures to predict consumerbehavior has stimulated the development of more recentapproaches, including the use of broader concepts such asvalues and psychographics.

Values, which are particularly important in the need recogni-tion stage, help explain how consumers answer the question,“Is this product for me?” Understanding how values affectmarket demand can be made easier by using laddering(page 276) to establish connections (links) between productattributes, personal outcomes, and values.

Two scales for studying personal values are covered by yourtextbook on pages 274–275:

■ The Rokeach Value Scale (RVS) is based on people’s goals and the ways people behave to obtain goals.

■ The Schwartz Value Scale (SVS) focuses on identifying a universal set of values and determining the structureof their relations.

Lifestyle Concepts and Measurement

Lifestyles reflect people’s activities, interests, and opinionscoupled with demographic variables. Psychographics measures those areas of a person’s lifestyle that indicate why that person buys.

Psychological studies can improve market segmentation byoffering in-depth information on current segments or by helping to define new segments. Values and Lifestyle System(VALS) is a widely used approach to lifestyle marketing (seepage 280). List of Values (LOV), a more recent alternative to the VALS approach, asks consumers to rate seven statementsbased on the Rokeach Value Scale (RVS).

Figure 7.11 and Table 7.9, on pages 281–282, show and describe eight lifestyles in relationship to personal orientations and degree of resources available. Can you identify the group you would fall into? How well does thatgroup describe you?

Consumer Behavior62

This completes your seventh assignment. Review any materialyou found difficult. Then take Self-Check 7. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

Lesson 3 63


activity 278 macromarketing 236

birthrate 239 metropolitan statistical area (MSA) 253

brand personality 273 natural increase 239

consolidated metropolitan statistical area (CMSA) 253 opinion 279

consumer confidence 257 personal values 274

demographics 236 personality 271

economic demographics 238 population momentum 239

exurbs 253 primary metropolitan statistical area (PMSA) 253

fertility rate 239 psychographics 278

income 256 social values 274

interest 279 trait 272

laddering 276 wealth 257

lifestyle 277

Consumer Behavior64

Self-Check 7

Indicate whether the following statements True or False.

_____ 1. One of the variables that determine birthrates is the age distribution of the population.

_____ 2. Laddering is a technique by which companies try to increase consumers’ purchases.

_____ 3. Other than the United States, Japan consumes more goods and services than anyother country in the world.

_____ 4. The importance of young children to business will decline during the 2000s.

_____ 5. China has the fastest growing population in the world.

_____ 6. The populations of the United States, Japan, Canada, and Europe aregrowing older.

_____ 7. Age and income are the most frequently used demographic variables for definingmarket segments.

_____ 8. Demographics are used as market segment descriptors.

_____ 9. Consumption is heavily influenced by what consumers think will happen inthe future.

_____10. The European Union is a market larger than the United States.

(Continued)

Lesson 3 65

Self-Check 7


Terms Definitions

_____ 11. birthrate

_____ 12. demographics

_____ 13. economic demographics

_____ 14. fertility rate

_____ 15. income

_____ 16. personal values

_____ 17. personality

_____ 18. social values

_____ 19. trait

_____ 20. wealth

(Continued)

a. “Normal” behavior for a society or group

b. The study of economic characteristics of a nation’s population

c. Consistent responses to environmental stimuli

d. The number of live births per 1,000 population in a given year

e. The measure of a family’s net worth

f. The number of live births per 1,000 women of childbearing age

g. “Normal” behavior for an individual

h. The size, structure, and distribution ofa population

i. Money from wages, salaries, interest, and welfare payments

j. Any distinguishable, relatively enduring way in which one individual differs from another

Consumer Behavior66

Self-Check 7


21. How can demographic analysis be used in understanding consumer behavior?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

22. What is lifestyle and why is it thought to be useful?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 8Read this introduction. Then read Chapter 8, “ConsumerMotivation,” pages 288–328, in your textbook, ConsumerBehavior.

The vignette for Chapter 8 focuses on the automotive accessory industry. As you read this vignette, concentrateon the various needs these accessories fulfill in those thatpurchase and use them.

Types of Consumer Needs

Pages 290–310 discuss various types of consumer needs.Some of these needs, like the physiological needs, are presentin all people in about the same degree. Others, like socialimage needs, may be present in a variety of degrees. Forexample, some people have a strong need for social image; to others, it’s less important.

As you read the material on the various types of needs, concentrate on how the presence—or absence—of theseneeds in people would affect consumer behavior. Think aboutyourself and your needs and try to understand how theseneeds motivate your buying behavior.

Motivational Conflict and Need Priorities

Often, fulfilling one need comes at the expense of anotherneed, which eventually leads to motivational conflict in anindividual. For example, suppose you have a strong need forfinancial resources and security, but you also have a strongneed for social image. You want to set aside money for retirement to satisfy your need for security, but if you setaside enough to satisfy that need, you won’t have enoughmoney to satisfy your need for social image. The result is aconflict. Your textbook categorizes these conflicts into threeforms (page 310). As you read about these three differentforms, try to identify a time in your life when you faced suchsituations. What did you do?

Lesson 3 67

One theory of how people make the choice between alternativesis Maslow’s hierarchy of needs. Figure 8.10 on page 311 illustrates the needs from the lowest level at the bottom ofthe pyramid to the highest level at the top. According toMaslow, individuals must satisfy their lower-level needsbefore the upper-level needs can become motivations of behavior. For example, your decision to take this course may be fulfilling esteem or self-actualization needs. However,you probably wouldn’t have considered filling those needs if you didn’t have a roof over your head or enough to eat. Inthat case you’d probably be more concerned with fulfilling physiological or safety needs.

Motivational Intensity

Another factor to be considered is that of motivational intensity, or how strongly you’re motivated to meet a certainneed. The greater the deprivation, the more likely you are toact to meet a need. For example, you might think shortlyafter lunch that you’d like something else to eat. However,because you just ate, you might not act on that desire rightaway. As the day progresses and it gets later, you’re morelikely to act as your hunger increases.

Motivating Consumers

Once you’ve read all the material on consumer needs and theintensity of these needs, you may find yourself wondering,“What does all this have to do with consumer behavior?”Pages 314–324 should answer that question for you. In thefinal pages of Chapter 8, your textbook introduces severalways in which companies attempt to motivate consumers topurchase something by showing how their products fulfillsimportant needs.

Consumer Behavior68

This completes your eighth assignment. Review any materialyou found difficult. Then take Self-Check 8. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

Lesson 3 69


approach-approach conflict 310 loyalty programs 320

approach-avoidance conflict 310 motivational conflict 310

avoidance-avoidance conflict 310 motivational intensity 312

benefit segmentation 312 phishing 292

conspicuous consumption 300 self-concept 242

consumer motivation 289 self-gifts 243

impulse buying 306 unconscious motivation 249

involvement 312

Consumer Behavior70

Self-Check 8


_____ 1. The importance consumers attach to various needs ultimately affects how theyevaluate products being considered for purchase and consumption.

_____ 2. Most consumers who initially buy products with a coupon become repeat buyers.

_____ 3. Possessions may become so important to some that they believe thesepossessions help define who they are.

_____ 4. To resolve motivational conflict, people must treat all of their needs as equally important.

_____ 5. Physiological needs are the most fundamental type of consumer needs.

_____ 6. Motivating consumers solely through price can be a dangerous proposition.

_____ 7. People are very similar to each other in terms of the priorities or importance they assign to their needs.

_____ 8. As motivational intensity increases, involvement becomes weaker.

_____ 9. Companies respond to consumers’ need for variety in several ways, such as thefood manufacturer that offers different versions of the same basic product.

_____10. Loyalty programs try to motivate repeat buying by providing rewards to customersbased on how much business they do with a company.

(Continued)

Lesson 3 71

Self-Check 8


Terms Definitions

_____11. approach-approach conflict

_____12. approach-avoidance conflict

_____13. avoidance-avoidance conflict

_____14. motivational conflict

_____15. motivational intensity

_____16. perceived risk

_____17. self-concept

(Continued)

a. A situation in which a person must decidebetween two or more desirable alternatives

b. Consumers’ apprehensions about the consequences of their behavior

c. A situation in which a personmust decide between two or moreundesirable alternatives

d. Consumers’ impressions of the type of person they are

e. A situation in which behavior has both positive and negative consequences

f. The degree to which consumers aremotivated to satisfy a particular need

g. Tradeoffs in the ability to satisfy various needs

Consumer Behavior72

Self-Check 8


18. What are some of the ways companies try to motivate consumers?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

19. Why is it important for companies to understand consumer motivation?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 9Read this introduction. Then read Chapter 9, “ConsumerKnowledge,” pages 330–372, in your textbook, ConsumerBehavior.

You’ve very likely familiar with the Aflac duck, discussed inthe Chapter 9 opening vignette, which shows just how suc-cessfully this ad promoted brand awareness. But do youknow what Aflac insurance does? The need to promote otherforms of consumer knowledge caused Aflac to risk modifyingits highly successful ads. This chapter examines types ofconsumer knowledge, sources of consumer knowledge, andthe benefits of understanding consumer knowledge.

Types of Consumer Knowledge

Most consumers like to think they’ve made the right decisionwhen they purchase something. And today, many consumersare educated about the products they buy. If they don’t knowabout a particular product they plan to purchase, they takethe time to find out or they rely on a friend or someone elsewho does know about the product. Your textbook indicatesseveral different types of consumer knowledge that areimportant to the purchase decision:

1. Knowledge of a product’s existence is one of the mostfundamental aspects of consumer knowledge. A personhas to be aware of a product’s existence (that is, it hasto be part of that person’s awareness set) before thatperson can elect to purchase the product.

2. Knowledge of a product’s attributes and associationsrefers to what consumers know about each of the products in their awareness set. The combination ofall the associations consumers make about a particularproduct is called the product image, which as you will learn, plays an important role in influencingconsumer purchases.

Lesson 3 73

3. Purchase knowledge includes the informationconsumers have about buying products. What stores carry this product? What does each store charge? Is it going to be on sale soon? The answers tothese types of questions are part of purchase knowledge.

4. What consumers know about how to use a product isconsumption and usage knowledge. This knowledge is important because consumers aren’t likely to buyproducts they don’t know how or when to use andbecause misused products may cause consumer dissatisfaction.

5. Persuasion knowledge refers to what consumers knowabout the goals and tactics of those trying to persuadethem. Consumers may not be persuaded to buy a productif they’re aware of the persuasion tactic being used.

Sources of Consumer Knowledge

Although consumers get their knowledge from a variety ofsources (other people, the media, the Internet, and personalexperience), knowledge gained from experience gives con-sumers confidence in their choice of products. If they’ve hadpositive experiences with a product, they’re more likely topurchase it again in the future. Of course, the opposite istrue as well. Therefore, when companies are seeking tochange consumer behavior, they have a difficult job if thebehavior is based on direct experience.

The Benefits of UnderstandingConsumer Knowledge

Chapter 9 concludes with a discussion of the benefits a company can achieve by understanding consumer knowledge:

1. Finding lack of knowledge (knowledge gaps). In otherwords, find out what consumers don’t know about aproduct and educate them. This step may even involvemaking consumers aware of a product’s existence.

Consumer Behavior74

2. Finding undesirable knowledge. Sometimes consumershave incorrect or undesirable information about a product or a company, which requires that company totake corrective action.

3. Gauging a product’s positioning success. Most companiesset a goal for themselves as to how they want to be positioned in the marketplace. Completing this step is away of determining how successful the company hasbeen at achieving this goal.

4. Discovering new uses. The more uses a product has, the more it’s likely to sell. Think of the many food itemsyou purchase that include recipes for using that item.These recipes give consumers ideas for using the product. Campbell Soup Company is a perfect exampleof this. Many consumers today use their soups more in recipes for casseroles and other dishes than they usethem as soup.

5. Gauging the severity of competitive threats. Knowing howthe consuming public views a company in relation to thecompetition is highly important in marketing a productor service.

6. Enhancing the effectiveness of customer recruitment activities. The more a company knows about consumerknowledge, the better it’s able to recruit customers tobuy its products.

The last part of Chapter 9 shows that consumer knowledgeis important even from a public policy perspective. Eventhose who strive to help people rather than sell them thingsmust know how well people understand their self-interest,and the public services available to them, if they wish to pro-mote that self-interest.

Lesson 3 75

This completes your ninth assignment. Review any materialyou found difficult. Then take Self-Check 9. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

Consumer Behavior76


consumer knowledge 331 product knowledge 364

consumption and usage knowledge 350 purchase knowledge 346

image analysis 339 self-knowledge 353

knowledge gaps 363 top-of-the-mind awareness 338

misperception 364

Lesson 3 77

Self-Check 9


_____ 1. A fundamental step in introducing a new product or store is to inform the public of its existence.

_____ 2. The detection of undesirable knowledge often triggers efforts to modify the product’s image.

_____ 3. A fundamental issue for consumers to address during decision making is wherethey should purchase the product.

_____ 4. Consumer knowledge may affect how a purchase decision is made, but not thefinal decision itself.

_____ 5. One of the most fundamental sources of consumer knowledge is experience.

_____ 6. Inadequate usage knowledge is rarely a barrier to purchase.

_____ 7. Unlike new products, established products need not worry about trying to createproduct awareness.

_____ 8. Knowledge about a particular persuasion tactic may enhance its effectiveness.

_____ 9. Knowledge about where a product is located in the store may affectpurchase behavior.

_____10. Knowledge gaps are limited to unfamiliar products.

(Continued)

Consumer Behavior78

Self-Check 9


Terms Definitions

_____11. consumer knowledge

_____12. knowledge gaps

_____13. persuasion knowledge

_____14. image analysis

_____15. top-of-the-mind awareness

(Continued)

a. The percentage of people that name agiven brand first

b. An absence of information in memory

c. An examination of what consumers know about a product’s attributesand associations

d. The subset of the total amountof information stored in memory that’s relevant to product purchaseand consumption

e. What advertisers know about how topersuade consumers

ASSIGNMENT 10Read this introduction. Then read Chapter 10, “ConsumerBeliefs, Feelings, Attitudes, and Intentions,” pages 374–422, in your textbook, Consumer Behavior.

The opening vignette explores the paradoxical result of anexpensive ad campaign to promote orange juice as a healthydrink: sales actually declined. Apparently, the campaign hadbackfired in improving customer attitudes and beliefs aboutthe product. Understanding and influencing those attitudesand beliefs, as well as the feelings and purchase intentionsthat go with them, is the goal of this assignment.

Lesson 3 79

Self-Check 9


16. People acquire their consumer knowledge from a variety of sources. Discuss some of these.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

17. How can customer recruitment activities be enhanced through understanding consumerknowledge?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


Consumer Behavior80

Beliefs and Feelings

Naturally, businesses study consumer behavior with the ultimate aim of stimulating consumers’ intentions to buy andgetting them to act on those intentions. However, as Figure 10.1on page 375 well illustrates, busineses can’t act directly on thosintentions. Consumer attitudes determine consumer intentions,while beliefs and feelings combine to shape those attitudes.That’s why we discuss beliefs and feelings together.

In following your textbook’s discussion of beliefs, note thatit’s not only beliefs about products that are important. Acrucial form of beliefs for forming attitudes about purchasingis expectations, which can be defined as consumers’ beliefsabout their financial future. Expectations combine with actual disposable income to control consumers’ purse strings.

Since consumers aren’t purely mental creatures, feelings aswell as beliefs shape their purchase attitudes. Of particularsignificance for marketers are feelings at three crucialmoments: during the advertising experience, during the shopping experience, and at the time of consumption.

Consumer Attitudes

Consumer attitudes represent what people like and dislike.Researchers distinguish between two types of attitudes: thosetoward the object (what consumers think of an object, orproduct) and those toward the behavior (what consumersthink about buying a product).

Attitudes are based on beliefs, which are personal judgmentsabout the relationship between two or more things. Those whostudy consumer behavior use models to help them determinethe favorability of attitudes toward a product. Your textbookdiscusses two such models: the Fishbein multiattribute attitudemodel and the ideal-point multiattribute attitude model.

Fishbein multiattribute attitude model. The formula for thismodel is given on page 401. Although it may look complicated,it’s not that difficult once you understand its parts. Here arethe steps in using such a formula:

1. Develop ei by asking questions like the one near the middle of page 402: “Buying running shoes priced atless than $50 is….”

2. Do this for each of the attributes you’re interested in.

3. Develop bi by asking questions like the one near the bottom of page 402: “How likely is it that brand A running shoes are priced at less than $50?”

4. Do this for each of the attributes and each of the brandsyou’re interested in.

5. Compile your results. (Table 10.13 on page 403 containsthe results for a hypothetical test of running shoes.)

6. Substitute your results for ei and bi into the Fishbeinformula and multiply each one. The results of this multiplication are shown in Table 1.

7. Finally, add together the values for each brand. Theresults are shown in Table 2 and in Table 10.13 onpage 403 of the textbook. These results tell you whichbrand consumers look at most favorably in regard tothe six attributes tested.

Lesson 3 81

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troppushcrA 2+ 3+ 6+ 1+ 2+ 2– 4–

Ideal-point multiattribute attitude model. Your textbook presents an example for this model, as it did for the Fishbeinmodel. The only thing you may need help with is the linessurrounding Ii – Xi. This simply means to use the absolutevalue of the quantity within the lines. (The absolute value ofa number is the number without regard to its sign. Therefore,the absolute value of –4, written as ⎮–4⎮, is simply 4.)Therefore, if the result is ⎮–2⎮, you would simply use 2; ifthe result is ⎮+2⎮, again use 2. Table 3 shows the calcula-tions for Brand A and Brand B.

Consumer Behavior82

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To calculate the total ΣWi ⎮Ii – Xi⎮ score, you must first calculate Wi ⎮Ii – Xi⎮ for each attribute and then add all theresults together. We’ll do the values for taste for both BrandA and Brand B. The calculations for the complete model are inTable 3.

Brand A

1. Calculate ⎮Ii – Xi⎮ for taste:⎮Ii – Xi⎮ = ⎮2 – 2⎮ = ⎮0⎮, or just 0.

2. Multiply this result by the importance Wi:0 × 6 = 0

The value of Wi ⎮Ii – Xi⎮ for Brand A is 0.

Brand B

1. Calculate ⎮Ii – Xi⎮ for taste: ⎮Ii – Xi⎮ = ⎮2 – 3⎮ = ⎮–1⎮, or just 1.

2. Multiply this result by the importance Wi: 1 × 6 = 6

The value of Wi ⎮Ii – Xi⎮ for Brand B is 6.

Table 3 shows the complete calculations for all theattributes studied.

Lesson 3 83

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Using the Fishbein model or the ideal-point model can provide substantial diagnostic power, information for sometypes of segmentation, and guidance to developing attitudechange strategies.

Feelings can also play an important role in attitude formation.You’ll read about feelings as part of the advertising experi-ence, shopping experience, and consumption experience(pages 388–392).

Pages 407–409 of Chapter 10 cover attitude change.Attitudes can, and do, change. Therefore, they shouldn’t betaken for granted. However, when businesses begin toattempt the process of changing consumer attitudes, theyoften find this process isn’t always easy. The degree to whichattitudes won’t change is attitude resistance. Attitude resist-ance normally depends on how strong a foundation the atti-tude has. Direct experience is most likely to result in strongattitude resistance.

The three basic ways businesses use to change consumerattitudes are

1. Change beliefs (which may mean the need to modifyproduct offerings)

2. Change attribute importance (possible, but usually moredifficult than changing beliefs)

3. Change the ideal point

You can read about these three methods on pages 407–408in the textbook.

Consumer Intentions

In the last part of Chapter 10, you’ll read about consumerintentions. Companies often rely on past behavior of cus-tomers to forecast future behavior. However, since thingschange, the past may not always be a good predictor for the future. Therefore, companies must choose an alternatemethod of predicting consumer behavior. Instead of relyingon the past behavior of customers, companies ask customers

Consumer Behavior84

what they intend to do—that is, what they intend to purchase,where they’ll buy it, how much they’re willing to pay for it,and so on.

Although intentions have been shown to provide significantpredictors of how people will behave in the future, they’re not a perfect predictor. Intentions may change due to unan-ticipated circumstances. A more realistic assessment mightbe obtained by asking consumers how likely it is they’ll dosomething. A consumer may intend to purchase steaks for a cookout, but when she discovers how expensive they are,she may change her mind. Just because people intend to dosomething doesn’t mean they’re likely to do it.

Of course, how far into the future a consumer must predictaffects the accuracy of the prediction. For example, if a company asks someone what he or she is going to purchaseat the grocery store that afternoon, the answer will be some-what accurate. If the same consumer had to predict what he or she would buy at the grocery store two months fromnow, the answer would be less precise. Another factor thatinfluences the accuracy of an individual’s prediction is thedegree to which the consumer controls the behavior. Forexample, a person may intend to purchase a particular itembut is prevented from doing so because he or she arrives atthe store just after it closes or because the store is temporarilyout of stock of the desired item.

Lesson 3 85


attitude extremity 396 purchase intentions 411

attitude resistance 397 repurchase intentions 411

behavioral expectations 414 search intentions 411

consumption intentions 411 shopping intentions 411

feelings 375 spending intentions 411

intentions 375 volitional control 415

perceived behavioral control 414

This completes your tenth assignment. Review any materialyou found difficult. Then take Self-Check 10. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

This also completes your third lesson. Review any materialfrom Assignments 7–10 that you found difficult. When you’resure you understand the information covered in Lesson 3, takeExamination 3.

After Examination 3 you’ll be ready to move on to Lesson 4,which examines the environmental influences on consumerbehavior. Chapter 11 focuses on the role of culture and ethnicinfluences on consumer behavior, such as religion, values, and social class. Chapter 12 discusses family and householdinfluences. Finally, Chapter 13 focuses on personal and group influences.

Consumer Behavior86

Lesson 3 87

Self-Check 10


_____ 1. Mood states are not influential during attitude formation.

_____ 2. Attitudes consumers have toward an ad significantly determine their product attitudes viewing the ad.

_____ 3. The ideal-point multiattribute attitude model was designed specifically for under-standing consumer attitudes towards products.

_____ 4. The main reason intentions are such good predictors of behavior is because intentions are always fulfilled.

_____ 5. Intentions can be used as an indicator of a company’s likely success inretaining customers.

_____ 6. The Fishbein multiattribute model proposes that attitude toward an object is based on the summed set of beliefs about the object’s attributes weighted by the evaluation of these attributes.

_____ 7. Businesses often lose money because they either underestimate or overestimateconsumer demand.

_____ 8. According to the ideal-point multiattribute attitude model, the farther a product’sactual rating is from the ideal rating, the more favorable consumers’ attitudes aretoward that product.

_____ 9. Forecasting accuracy depends on how far into the future one is trying to predict.

_____10. One option for changing attitudes suggested by the Fishbein multiattribute attitudemodel involves altering consumers’ preferences about what the ideal productwould look like.

(Continued)

Consumer Behavior 88

Self-Check 10


Terms Definitions

_____11. attitudes

_____12. attitude persistence

_____13. behavioral expectations

_____14. intentions

_____15. preferences

Use the following information to answer questions 16 and 17.

Assume you’ve used the Fishbein multiattribute model for analyzing three existing brands ofcat food (A, B, and C), with the following results:

(Continued)

a. The perceived likelihood of performinga particular action

b. Subjective judgments about how people will act in the future

c. A representation of what people likeand dislike

d. An attitude’s immunity to corrosionbecause of the passage of time

e. Attitudes toward one object in relationto another

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Lesson 3 89

Self-Check 10

16. Which brand is least likely to be selected based on this model?

__________________________________________________________________________

17. Which one of the attributes is an undesirable attribute?

__________________________________________________________________________


Assume you’ve used the ideal-point multiattribute attitude model for a single brand, Brand A,with the following results:

18. What is the score of Brand A?

__________________________________________________________________________

19. If Brand B has an ideal-point score of 15, which would most likely be purchased?

__________________________________________________________________________

20. From a multiattribute attitude model perspective, what are the basic ways for changingconsumer attitudes toward a product?

__________________________________________________________________________

__________________________________________________________________________


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91

Lesson 3Individual Determinantsof Consumer Behavior



1. Jan is in the store to buy an electric blanket. Although she’s not

very familiar with them, she knows her husband wants one with

dual controls and she recognizes Sunbeam as a good brand.

This information is known as Jan’s _______ knowledge.

A. consumer C. consumption

B. purchase D. usage

2. The Tea Company has identified a market segment of males

between the ages of 45 and 54, who earn more than $30,000

annually. The Tea Company appears to be using _______

segmentation.

A. demographic C. value

B. geographic D. psychographic

EXAMINATION NUMBER:




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3. Marketing research has shown that people prefer after-dinner liquors that are sweet.

Dinner Liquor, Inc.’s after-dinner drink is slightly tart. They’ve decided to run an advertise-

ment to point out that something sweet at the end of dinner tends to make a person feel

hungry. They’re hoping to promote the product by changing

A. attitude persistence. C. attribute importance.

B. ideal points. D. attitude resistance.

4. Alan is participating in a marketing research project. The questionnaire asks him what

make and model car he currently drives. Then it asks whether he plans to buy the same

model car when he needs a new one. This second question is measuring Alan’s _______

intentions.

A. purchase C. search

B. repurchase D. spending

5. Consumer confidence is related to

A. the assurance that a product is of high quality.

B. how much faith consumers have in advertising.

C. the consumer’s trust in a salesperson.

D. the consumer’s opinion about the future of the economy.

6. Someone without enough food to eat is most likely to be motivated by _______ needs.

A. physiological C. love and companionship

B. safety and health D. financial resources and security

7. Geri is aware that a certain tea company wants you to associate their product with friend-

ship. In their ads they show good friends enjoying a cup of tea together and having a

pleasant time. Geri’s awareness of the tea company’s purpose is part of her _______

knowledge.

A. consumption C. purchase

B. usage D. persuasion

8. A coffee ad shows consumers in good spirits after product consumption. This ad is appeal-

ing to their

A. physiological needs. C. need for variety.

B. need for love and companionship. D. need for pleasure.

Questions 9 and 10 are based on the following results for Fishbein’s multiattribute model.

9. Which brand has the highest attitude score?

A. Brand A C. Brand C

B. Brand B D. All brands have equal scores.

10. What attribute adds the most to the attitude toward brand A?

A. Low cost C. Strong smell

B. Natural ingredients D. Convenience

11. Al uses his customer card every time he goes to the grocery store. When he reaches

$1,000 in purchases, he’ll receive a 5% discount on his next order. This technique is an

example of

A. purchase incentive.

B. a loyalty program.

C. enhancing the perceived risk of product purchase and consumption.

D. arousing consumer curiosity.

12. If a country has 2,000,000 births and 1,800,000 deaths in a given period, the 10%

difference represents a

A. fertility rate. C. natural decrease.

B. birthrate. D. natural increase.

13. As a market researcher, Brad is asking consumers what they think of when they hear the

words Thunderbird cars. Brad is involved in _______ analysis.

A. product C. image

B. brand D. recall

14. A group of marketing researchers is discussing the moral restrictions on the behavior of

their target group. They’re most likely applying the _______ personality theory.

A. psychoanalytic C. social-cognition

B. socio-psychological D. trait-factor


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15. On a survey, Margo was able to list the names of six different types of shampoo. On the

same survey, she was given a list of 20 different shampoos and asked which ones she

recognized. She discovered that she recognized 18 of the 20. What does this indicate to

a market researcher?

A. The brands Margo recognized from a list are the less expensive brands.

B. Customers are generally aware of more products than they can recall.

C. The brands Margo named on her own are probably available in her area.

D. Retailers should concentrate on using research that involves recognition and not recall.

16. The prices at Ethel’s Antiques are similar to those at Suzy’s Second-Hand Shoppe, but

people think Ethel’s items are more expensive. This condition is an example of

A. misperception. C. influence knowledge.

B. image analysis. D. recognition.

17. The International Corporation wants to introduce its product into one additional country.

Research has provided the following information.

Country Population Economy

A growing stagnant

B decreasing growing

C growing growing

D decreasing stagnant

The most attractive country for International Corporation is probably

A. A. C. C.

B. B. D. D.

18. On a recent survey, “salty taste” received a score of –3 on Fishbein’s evaluative measure.

What can you conclude from this information.

A. Salty taste is a bad attribute to have.

B. Salty taste is a good attribute to have.

C. The product is unlikely to have a salty taste.

D. The product is likely to have a salty taste.


19. Janice is a young single woman. She has a cat, loves to go on singles cruises, enjoys

buying clothes, and is active in several clubs. Based on this information, Janice’s strongest

needs are for

A. health. C. companionship.

B. safety. D. security.

20. The long days put in by workaholics are an example of _______ motivational conflict.

A. approach-approach C. approach-avoidance

B. avoidance-avoidance D. avoidance-approach


NOTES


Environmental Influences onConsumer Behavior

ASSIGNMENT 11Read this introduction. Then read the introduction to Part IVon page 423 and Chapter 11, “Culture, Ethnicity, and SocialClass,” pages 424–479, in your textbook, Consumer Behavior.

The opening vignette of Chapter 11 points out that in mostcountries pedestrians follow a counterclockwise loop throughshopping malls, probably traceable to the social customof driving on the right. Studying the cultural influences on consumer behavior has become an important part ofdoing business.

This chapter looks at how culture, ethnicity, and social classaffect the decision-making process and serve as a basis forsegmentation strategies.

What Is Culture?

As you can see in Figure 11.1 on page 426, culture is com-posed of both abstract and physical items. This illustrationlists some of the items that influence a person’s culture. Thenon page 428, you’ll find a list of some characteristics that areinfluenced by culture. So what does this have to do with consumers and consumer behavior? The answer is given onpage 428: “Marketers use cultural characteristics in globalsegmentation strategies.”

Before you begin to read about values and norms (page 429),think about some of the values you hold and how they may affect your purchasing behavior. For example, somepeople who hold certain religious beliefs won’t shop or go torestaurants on certain days of the week. Some people arevegetarians, who refuse to eat meat for various reasons.Others won’t buy products that aren’t made in the UnitedStates. Manufacturers, retailers, and others in the “selling”business must consider these types of values and norms asthey attempt to promote their products and services.

97

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Values and norms are key elements of culture. People learn norms through society, family, peers, and the media.Figure 11.3 on page 430 indicates that the values of a societyare transfused to individuals through family, religious institutions, and educational institutions. As you look at thefigure, think about your values and how you learned them.

Another area that marketers must be aware of is how valuesand norms change. You can’t effectively stimulate consumerdemand if you’re appealing to values that are no longeraccepted. While some norms may change easily and fairlyrapidly, others may take decades to change. A good exampleof a changing norm is cigarette smoking. Once cigaretteswere considered sophisticated, and many—or most—televisionand movie characters smoked; today cigarettes are perceivedvery differently.

How Values Affect ConsumerBehavior and Marketing

Culture and the values of the people in a culture affect bothsides of the marketing arena: the buyers and the sellers:

1. Culture affects consumer behavior in two ways. First, itaffects pre-purchase and purchase decisions. Second, itaffects how people consume and divest products. Thevalues of a culture define how products are used in asociety, provide positive and negative impressions forbrands and communications programs, define accept-able market relationships, and define ethical behavior.

2. Marketers have developed a definition of core values,which help them to understand the behavior of people.

Changing Values

As you’ve already learned, values change and marketers need to be aware of those changes. To forecast such changes,they use either a life-cycle explanation or generational change(page 436). The life-cycle explanation focuses on the idea that as people grow older, their values change and become more likethose of their parents. Generational change, on the other hand,

Consumer Behavior98

says that values will gradually change as the values of theyounger generation replace those of the older generation.Carefully study Table 11.2 on pages 443–444. Can you findyourself in this figure? Does the description fit you accurately?

National Culture

The more marketers know about a culture, the better they’llbe able to promote their products in that culture. One study,however, has discovered four areas of culture that are commonto 66 different countries. Read about these common areas onpage 442.

North American Core Values

Pages 445–468 examine the norms and values of a varietyof cultures. You’ll discover that the values of North America are less rigid than those of other countries, because theNorth American countries are young. Table 11.4 on page 448outlines how marketers adapt to eight of the most basicAmerican core values. As you read these pages on the waysin which cultures and microcultures affect behavior, alsopay attention to the effects of income, education, and family characteristics.

Social Class Microcultures

People from different cultures but with similar income andeducation may have more in common than those within the same culture who have different income and educationlevels. People with such similarities form what’s known as amicroculture. These classes of people are important to mar-keters, because they influence purchase and consumptiondecisions. The family in which you were raised is the largestinfluence of social classes.

Six variables useful in understanding social class are occupation, personal performance, interactions, possessions,value orientations, and class consciousness (pages 469–471).Also of importance to marketers is the fact that consumersassociate certain brands with specific social classes.

Lesson 4 99

Consumer Behavior

Because more people would like to be in an upper socialclass or at least have others think they’re in an upper class,marketers can position products to attract those consumersinto buying products associated with an upper class.

This completes your eleventh assignment. Review any materialyou found difficult. Then take Self-Check 11. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

100


abstract elements 426 macroculture 429

acculturation 451 material components 427

achieved status 471 microculture 429

ascribed status 471 norms 429

cohort 441 parody display 472

cohort analysis 441 prestige 470

consumer socialization 431 social class 468

core values 435 social mobility 471

culture 426 socialization 430

generational change 436 status groups 469

life-cycle explanation 436 transcultural marketing research 454

Lesson 4 101

Self-Check 11


_____ 1. Cultural artifacts are sometimes referred to as material components.

_____ 2. Your social class is influenced predominantly by your education.

_____ 3. Two important elements of culture are values and norms.

_____ 4. Possessions are symbols of social class membership.

_____ 5. It’s almost always easier to change cultural values through advertising than it is to change the marketing mix to conform to these values.

_____ 6. Marketers rarely use cultural characteristics to segment markets on a global basis.

_____ 7. A major institution that transmits values to consumers is education.

_____ 8. Abstract elements of culture include values, attitudes, ideas, personality types, andsummary constructs, such as religion and politics.

_____ 9. The number of consumers who aspire to higher social classes is much larger thanthose who are in them.

_____10. The influence of peers and media is important in the adoption process.

(Continued)

Consumer Behavior102

Self-Check 11


Terms Definitions

_____11. achieved status

_____12. ascribed status

_____13. cohort

_____14. core values

_____15. culture

_____16. norms

_____17. socialization

_____18. status group

(Continued)

a. A designation given to those who are lucky enough to be born wealthy or beautiful

b. The process by which people develop their values,motivations, and habitual activity

c. Those values basic to understanding the behavior of people

d. Rules of behavior held by a majority or at least a consensus of a group about how individuals should behave

e. A designation given to those who earn a higher status due to work or study

f. A body of people that reflects a community’s expectations for style of life among each class

g. Any group of individuals linked as a group in some way

h. A set of social behavior patterns transmitted symbolically through language and other means to the members of a particular society

Lesson 4 103

Self-Check 11


19. How do core values affect marketing?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

20. What are the major cultural dimensions useful for comparing the cultures ofdifferent nations?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

21. What are the determinants of social class?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 12Read this introduction. Then read Chapter 12, “Family andHousehold Influences,” pages 480–519, in your textbook,Consumer Behavior.

The opening vignette of Chapter 12 discusses how the face ofthe American family, as portrayed by TV shows, has changedradically from the 1950s to the present.

In Chapter 11, you learned that families are the most impor-tant determining factor in social class. Now, in Chapter 12,you’re going to examine how the family (and its changingcomposition) impacts the buying behavior of its members.

The Importance of Families andHouseholds on Consumer Behavior

At one time, the terms family and household meant the samething. Today, there’s a definite distinction between the two.The term family indicates that the people living together arerelated by blood, marriage, or adoption. A household, on theother hand, refers to anyone who occupies a housing unit,whether they’re related or not. Both groups are important tomarketers, because many products are purchased by a familyor household unit. Even when individuals make the purchasedecision, they may be heavily influenced by other family orhousehold members. At one time, marketers focused only onfamilies. But as the number of households has increased,they’ve attracted more attention from marketers.

When dealing with various types of households, marketersshould be interested in factors that affect these groups:

■ Structural variables. These include such factors as theage of the head of the unit, marital status, whether there are children, and employment status.

■ Sociological variables. These include such factors ascohesion (the emotional bonding between members),adaptability (the ability of a family to change its power


structure, role relationships, and relationship rules inresponse to situational and developmental stress), andcommunication (a facilitating dimension, critical tomovement on the other two dimensions).

■ Family celebrations and gift giving. Although there’s been a shift among some consumers to de-commercializeholidays, family celebrations and gift giving are stillimportant to marketers. Resilient families—those betterable to cope through changes and challenges—tend tohave greater focus on family traditions and celebrations.As a result, resilient families generate 50 percent or moreof the annual retail sales. It’s dangerous, however, forretailers to rely on year-end holiday sales to meet salesand profit forecasts.

Who Determines What the Family Buys?

Although one person may purchase items for a family orhousehold, everyone in the unit uses the products. The purchase and consumption decisions in a family are oftencomplicated, with various roles and actors. (These roles aredefined for you on page 486 of your textbook.) The matter ofroles becomes complicated for marketers, because one personin the family may assume more than one role and familymembers may not always take on the same role in each consumption decision. Family marketing focuses on the relationships of family members and the roles they play inthe purchase process.

Carefully study Figure 12.3 (page 489), which shows the relative influence of husbands and wives on purchase decisions for various types of products. Such information is important to those marketing products and services, because they can gear their promotions and advertisementsto those individuals making the purchase decisions for their products.

Lesson 4 105

Family Life Cycles

Because of the increased interest in nonfamily households,the concept of family life cycles may need to be renamedhousehold or consumer life cycles. Regardless of the name,this is a very important concept, which has a strong influenceon consumer behavior. Table 12.1 on pages 492 and 493breaks down the various life cycles of consumers. Notice thatnot every consumer passes through each of the stages. Asyou read over this the information in this table, see howmany of the stages you can identify as ones you, your family,or your friends have passed through. Which ones are you,your family, and friends in now? Think about how the variousstages affect consumers’ needs, disposable income (Figure 12.4on page 494), and spending. Can you see why it’s helpful formarketers to identify the life cycle stage in which most oftheir consumers lie?

Changing Family and Household Structure

Consider the following trends and think about how theyaffect marketing efforts:

■ People are getting married at a later age.

■ More marriages end in divorce.

■ There’s a growing number of second divorces as remarriages also fail.

■ The increase in the divorce and remarriage rate means there’s an increase in blended families (families composed of stepchildren, siblings ofthe multiple families, and former spouses).

■ There are more single people today because peoplechoose not to marry or to marry later in life.

■ The average size of households has dropped.

■ The number of single-parent households has increased.

■ Household income is increasing.


Changing Roles of Women and Men

The changing role of women is important to marketers becausewomen buy many products for the family. And these roleshave changed rather drastically during the past 50 years.Probably the most dramatic change involves the increase inthe number of working mothers. This change has resulted in women who have multiple roles (for example, householdresponsibilities, children responsibilities, and employmentresponsibilities) and little time. Figure 12.10 on page 506shows the four types of moms as defined by the advertisingagency of Leo Burnett.

However, as women’s jobs become more career oriented andtheir paycheck makes a more significant contribution to family income, expectations for shared home responsibility isincreasing. As a result, masculine roles are also changing.Men are participating in more household and consumptionactivities, such as helping with the laundry or grocery shopping, and they take a greater role in child care. Suchchanges provide challenges not only for those marketing to the male population, but also to the employers of thisgroup of people.

Children and Household Consumer Behavior

Marketers should have a strong interest in the children’smarket because children are spending more money and they have more influence on purchase decisions for products they use. If you think that children aren’t an important element in family purchases, read pages 510 and 511.They explain the billions of dollars that are spent with theinfluence of children and the billions of dollars that children spend themselves. Looking at these pages certainly makes it clear why marketers are so interested in children in the household!

Children not only influence purchases, they also influenceretailing choice. Convenience stores are their first choice(maybe because they don’t yet care about higher prices).

Lesson 4 107

They also like to shop in specialty stores (just think about all the brand name clothes they wear). They often have afavorite grocery store. On the negative side, they see drug-stores and department stores as cold and boring places forgrown-ups.

What people learn during their childhood is very importantin many areas of their lives, including consumer behavior.Family communication about purchases is the key to children’s consumer socialization. Shopping with parentsis how people learn much of what they know about shop-ping. Different types of mothers and fathers communicateconsumer skills and knowledge in different ways. Retailerswho understand the role of children in buying can benefit byadjusting their marketing strategies and even their physicallayout to accommodate the influence of children.

Research Methodology forFamily Decision Studies

In this section, you’ll study the similarities and differencesbetween researching individuals and researching families.Because it’s often difficult to administer a questionnaire toan entire family at the same time, researchers must findother ways to get accurate results. Pages 514–515 explainshow researchers have attempted to do this.


Lesson 4

This completes your twelfth assignment. Review any materialyou found difficult. Then take Self-Check 12. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

109


adaptability 483 family of orientation 482

autonomic 487 household 482

buyer 486 household life cycle 490

cohesion 483 husband dominant 487

communication 483 influencer 486

consumer life cycle 490 initiator/gatekeeper 486

decider 486 instrumental roles 485

expressive roles 485 joint (syncratic) 487

extended family 482 nuclear family 482

family 482 sociological variables 483

family life cycle 490 structural variables 483

family marketing 486 user 486

family of procreation 482 wife dominant 487


Self-Check 12


_____ 1. When examining family decision making, researchers usually find it sufficient tointerview only one member of the family.

_____ 2. The median age for single women in America is much greater than the median age for single men.

_____ 3. Individual buying decisions normally aren’t influenced by other family members.

_____ 4. Research shows that husbands and wives jointly make their purchase decisionsregardless of the product being purchased.

_____ 5. Children exert direct influence over parental spending when they request specificproducts and brands.

_____ 6. The term household is becoming more important for marketers than theterm family, because of the rapid growth in nontraditional families and nonfamily households.

_____ 7. Decisions regarding family vacations are perhaps handled more democratically than most other decisions.

_____ 8. In America during the next decade, family households are expected to grow at a faster pace than nonfamily households.

_____ 9. Many products are purchased by a family unit.

_____10. Manufacturers of many types of household products have discovered that it makes little sense to target men in families because they rarely participate inshopping trips.

_____11. People learn most of their consumer behavior as children.

(Continued)

Lesson 4 111

Self-Check 12


Terms Definitions

____12. adaptability

____13. autonomic role category

____14. cohesion

____15. decider

____16. extended family

____17. family

____18. household

____19. influencer

____20. syncratic role category

____21. sociological variables

____22. structural variables

(Continued)

a. Characteristics that help explain how familiesfunction, such as cohesion, adaptability, and communication

b. The emotional bonding between family members

c. The nuclear family, plus other relatives

d. All persons, both related and unrelated, who occupy a housing unit

e. A family member whose opinions are sought concerning the criteria the family should use in making purchases and the products or brands mostlikely to fit those criteria

f. A situation in which an equal number of decisions is made by each spouse, but each decision is individually made by one spouse of the other

g. A situation in which most decisions are made by both the husband and the wife

h. A group of two or more people related by blood, marriage, or adoption who live together

i. The ability of a family to change its power structure,role relationships, and relationship rules in responseto situational and developmental stress

j. Characteristics such as age of the head of thehousehold, marital status, presence of children, and employment status

k. The person with the financial authority or power tochoose how a family’s money will be spent and onwhich products or brands


Self-Check 12


23. What individual roles are exhibited in family purchases?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

24. What is meant by the term “family life cycle” and why is it important?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 13Read this introduction. Then read Chapter 13, “Group andPersonal Influence,” pages 520–564, in your textbook,Consumer Behavior.

The opening vignette for Chapter 13 illustrates how digitalconnectivity has replaced many types of face-to-face contactbetween people. But does that mean that personal influenceon decision making has disappeared? Hardly. Chapter 13explores how this influence on consumer behavior has evenexpanded in today’s digital age.

Group and Personal Influences on IndividualsYour text defines a reference group as “any person or group ofpeople that significantly influences an individual’s behavior.”As you read the information on types of reference groups(pages 523–524), consider some of your own reference groupsand try to decide what type of group each one is. Rememberthat reference groups may be a combination of types.

How Reference GroupsInfluence IndividualsPages 525–532 continue the topic of reference groups.Reference groups influence individuals differently dependingon the characteristics of the individual and the product purchase situation. You’ve already thought about some ofyour own reference groups. As you read this section, thinkabout how some of these groups have affected your purchasedecisions—either directly or indirectly.

Your textbook points out that the need to comply to norms is decreasing in the Western world. Therefore, some of theinfluence of groups is also declining. The reason? Possiblyit’s the increase in urbanization, which leads to greater socialisolation and individualism. Nonetheless, celebrities and

Lesson 4 113

other reference groups are still used in advertising to appeal toconsumers. Figure 13.2 on page 523 shows when referencegroup influence is likely to be strong or weak for a particularbrand or product.

Transmission of Influence through Dyadic Exchanges

According to the dictionary, a dyad is “two individuals maintaining a sociologically significant relationship.”Therefore, a dyadic exchange is a situation in which twopeople exchange ideas, opinions, information, and so on. The two types of dyadic exchanges discussed in your textbookare the informal word-of-mouth (WOM) communication and themore formal service exchange. At one time, WOM was mostlylimited to people who knew each other. But with theincreased use of the Internet, WOM can now be transmittedto many people very quickly.

Service encounters occur when there’s personal communicationbetween a consumer and a marketer. This experience is like-ly to take place in a store. During the exchange, buyers andsellers assume specific roles. Salespeople play a key role inbuilding a relationship between the buyer and seller.

There are several theories on how personal influences aretransmitted. The models discussed in your textbook aretrickle-down, two-step flow, and multistep flow. The multistepflow is the accepted model today.

WOM and Opinion Leaders inAdvertising and Marketing Strategy

Once you’re learned how consumers communicate informa-tion about products and services, you’ll begin to study howadvertisers and marketers use WOM and opinion leaders topromote their products.

Occasionally, a business can rely on word-of-mouth communication instead of advertising. In that case, thecompany must somehow stimulate WOM. More often,


however, companies aim their marketing and advertisingefforts at opinion leaders. And, of course, there’s the problemof dealing with negative WOM that results from a companyaction, consumer dissatisfaction, or pure gossip.

Diffusion of Innovations

The remainder of Chapter 13 (page 544) deals with theintroduction of new and/or improved products into themarketplace, a process known as diffusion. As you read thismaterial, ask yourself—and answer—the following questions:

■ What is an innovation?

■ What are the different types of innovation?

■ What makes some innovations succeed and others fail?

■ How are innovations introduced to the buying public?(Figure 13.14 on page 551 shows the various stages ofthe diffusion process.)

■ What factors affect the diffusion of innovations?

■ How do consumers decide to purchase a new orimproved product? (Figure 13.15 on page 554 illustrates one model of the innovation decisionprocess. Notice that, according to this model, there are some conditions that must exist even before thecommunication process begins.)

■ What types of consumers are likely to adopt new orimproved products? (See Figure 13.16 on page 556.)

■ Do consumers always fall into the same adopter class?

The final section of Chapter 13 (pages 557–559) focuses on managerial perspectives on adoption and diffusion ofinnovation. Obviously, successful new products are criticalto profitability and long-term financial success. Developinga new product requires coordination between marketing, engineering, research, and the rest of the company.

Lesson 4 115



acceptance 526 membership group 524

adopters 555 monomorphic 556

anomie 530 multistep flow of communication model 539

aspirational group 524 nonadopters 555

cognitive innovators 557 normative influence 524

compatibility 548 observability 550

complexity 548 opinion leader 534

compliance 526 polymorphic 556

conformity 526 primary group 523

continuous innovation 546 product innovation 544

diffusion 550 product innovators 536

discontinuous innovation 546 reference group 522

dissociative group 524 relative advantage 547

dyadic exchanges 533 secondary group 523

dynamically continuous innovation 546 sensory innovators 557

early adopters 556 service encounter 537

early majority 556 surrogate consumer/surrogate shopper 536

formal group 523 trialability 549

informal group 523 trickle-down theory 539

informational influence 525 two-step flow of communication model 539

innovators 556 value-expressive influence 524

laggards 556 vertical coordination 553

late majority 556 virtual group 524

market mavens 536 word-of-mouth communication 533

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This completes your thirteenth assignment. Review any materialyou found difficult. Then take Self-Check 13. Check your answerswith those provided in the back of this study guide. Review thematerial for any of the questions you missed.

This also completes your fourth lesson. Review any materialfrom Assignments 11–13 that you found difficult. When you’resure you understand the information covered in Lesson 4, takeExamination 4.

After Examination 4, you’ll be ready to move on to Lesson 5,the final lesson in this course. Lesson 5 examines how companies influence consumer behavior. Chapter 14 covers the process of getting consumers’ attention, Chapter 15 focuses on how companies can shape product opinions held by consumers, and Chapter 16 explains how companies canhelp consumers remember things that increase the likelihoodof their becoming customers.


Self-Check 13


_____ 1. Public necessities are products for which reference groups have a strong influenceon consumers’ product category choice but a weak influence on consumers’ brand choice.

_____ 2. Famous athletes may serve as an aspirational reference group for young consumers.

_____ 3. If reference groups have a weak influence on consumers’ product category choices,then these groups automatically have a weak influence on consumers’ brand choices.

_____ 4. Word-of-mouth communication should never serve as a substitute for advertising.

_____ 5. The most important factor to examine when evaluating the potential success of a new product is its relative advantage.

_____ 6. Luxuries are less susceptible to social influence than necessities.

_____ 7. Reference group influence is often greater for publicly consumed products than for privately consumed products.

_____ 8. Dissociative groups exist when an individual wishes to adopt the norms, values,and behavior of the group.

_____ 9. Vertical coordination reduces the rate of diffusion.

_____10. Reference groups affect consumers in essentially the same ways.

(Continued)


Self-Check 13


Terms Definitions

_____11. compatibility

_____12. complexity

_____13. dissociative group

_____14. informational influence

_____15. innovator

_____16. laggard

_____17. normative influence

_____18. trickle-down model

_____19. two-step flow model

_____20. value-expressive influence

(Continued)

a. The degree to which a new product is consistent with an individual’s existing prac-tices, values, needs, and past experiences

b. The first consumer group to adopt products

c. A theory that alleges that lower classesoften emulate the behavior of their higher-class counterparts

d. A group from which an individual tries toavoid association

e. A theory that indicates that opinionleaders are the direct receivers of information from advertisements and that they interpret and transmit theinformation to others through WOM

f. A process that occurs when people have difficulty assessing product or brand charac-teristics by their own observation or contact

g. A process that occurs when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviors

h. A process that occurs when individuals alter their behaviors or beliefs to meet theexpectations of a particular group

i. The degree to which an innovation is per-ceived as difficult to understand and use

j. The last consumer group to adopt products


Self-Check 13


21. What is an opinion leader? When will an opinion leader be most influential?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

22. What are the main characteristics associated with successful new products?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


Lesson 4Environmental Influences on

Consumer Behavior



1. Marcus and Beverly have just converted two of the bedrooms

in their home to a master suite. They’re most likely in which

stage of the family life cycle stage?

A. Newly married couple C. Full nest II

B. Full nest I D. Empty nest I

2. The way a society reacts to uncertainty is one indication of its

A. core values. C. ethical evaluation.

B. cultural dimension. D. assertive response.

3. Before the introduction of money-access machines, people had

to arrange their schedules so they got to the bank during banking

hours to make deposits or get cash. Today, people can do

these things at their convenience. Therefore, the money-access

machine should be considered a _______ innovation.

A. usage-based

B. continuous

C. discontinuous

D. dynamically continuous

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4. A United States client wants to segment its market based on social class. Therefore, its

marketing research firm should

A. conduct personal interviews.

B. collect additional data from respondents.

C. send surveys to various zip codes.

D. discourage this kind of segmentation.

5. A drug company uses a celebrity popular with baby boomers to talk about a prescription

medicine for baldness. Eventually, members of this group try the medication and tell their

friends about it. This situation illustrates a process known as

A. compliance. C. innovation.

B. temporality. D. diffusion.

6. Mark, his mother, and his grandmother make up a/an

A. nuclear family. C. family of procreation.

B. family of orientation. D. household.

7. Roberto LaPluma, who grew up in the barrio and never graduated from college, earns

$8 million a year as a professional athlete. This is an example of

A. social stratification. C. social mobility.

B. status inconsistency. D. parody display.

8. Delilia belongs to a summer theater group in her resort town. Each summer the group

selects and performs a play. One thing she likes about the theater group is that anyone

can join, so different people become involved. During the summer, she spends many

evenings rehearsing and performing with the group. However, the rest of the year the

members may talk only when they run into each other in a store or on the street. The

theater group is an example of a _______ group.

A. membership C. formal

B. secondary D. dissociative


Stasi and her two sons, Larry and Mike, are planning a special family dinner for the father intheir family. Mike asks them what they think the menu should be. After some discussion,Stasi decides they’ll have turkey. Because Larry has the most free time the next day, he volunteers to go to the store and get the things they need.

9. In this situation, Larry takes the role of

A. initiator. C. decider.

B. influencer. D. buyer.

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10. In this scene, Mike’s role is known as

A. initiator. C. decider.

B. influencer. D. buyer.

11. An individual is least likely to be affected by group influence when purchasing which one

of the following items?

A. Bed sheets C. Tennis racket

B. Automobile D. Clothing

12. Computer hardware and software are examples of

A. cultural artifacts. C. core values.

B. abstract elements. D. structural variables.

13. A marketing research firm is gathering information about family influences on buying

decisions. They should probably gather information from

A. only the man of the house. C. only the children of the house.

B. only the woman of the house. D. both the husband and the wife.

14. Mark wonders what will become of society. He thinks the younger generation doesn’t

have the important values that his generation has. His wife, Martha, says that every

generation has felt that way about the next generation. She feels that as the younger

people grow older and more mature, their values will change and become more like

the values of their parents. Martha supports the concept of

A. assimilation. C. life-cycle explanation.

B. acculturation. D. generational change.

15. Jean teaches at a local community college. She would like to wear jeans and a jacket

to work because she’s most comfortable in this type of clothing. However, all of the

other faculty members wear business clothing, so Jean does too. Jean’s situation is an

example of _______ influence.

A. informational C. normative

B. value-expressive D. primary

16. Alex Trebek, the host of a popular TV game show, appears in an advertisement in which

he says how good a particular life insurance company is. He urges viewers to call the

company for free information. This is an example of

A. slice-of-life advertising. C. a testimonial.

B. an endorsement. D. expert appeal.

Lesson 5 123

17. Barbara is telling her friend Sally about the wonderful time she had on her cruise. She

had never been on a cruise before, but now she thinks it’s the best vacation to take.

Barbara is engaging in

A. WOM communication. C. service encounter.

B. public exchange. D. advertising.

18. Megan is a young married woman with a small child. She doesn’t work outside the home

because she believes mothers should be at home with their children while fathers work.

Megan is an example of a

A. June Cleaver: the sequel mom. C. strong shoulders mother.

B. tug-of-war mom. D. mother of invention.

19. When music companies first introduced CDs, music fans quickly adopted them because

they felt the sound quality of CDs was much better than that of records or tapes. This

situation is an example of

A. observability. C. compatibility.

B. complexity. D. relative advantage.

20. Which one of the following cohorts would be most likely to save their money?

A. Depression cohort C. The Boomers I Cohort

B. The Postwar cohort D. The Generation X cohort


Influencing ConsumerBehavior

ASSIGNMENT 14Read this introduction. Then read the introduction to Part Von page 565 and Chapter 14, “Making Contact,” pages 566–605,in your textbook Consumer Behavior.

The opening vignette for Chapter 14 isn’t about a particularcompany or product as many of the previous ones have been.This one is about how hard it has become for advertisers to getconsumers’ attention. It tells you that companies have triedeverything, even putting “billboards” in the sand on beaches.

Chapter 14 covers two important elements of making contactwith consumers: exposure and attention.

ExposureExposure involves getting a message to the proper consumermarkets. Pages 568–582 of your textbook enumerate andexplore the bewildering variety of ways marketers can reachconsumers in our digital world. In helping you through thismaze, your textbook concentrates on two guiding concepts:

1. Exposing people to a message may not be as easy as it seems, since many people deliberately try to avoidwatching or reading advertisements.

2. Too much exposure may cause ads to lose their effectiveness.

AttentionExposure alone isn’t enough to influence consumers.Companies have to get their attention, which means thatconsumers keep their minds closely on something. The direction in which you pay attention (for example, on thisstudy guide or on the TV in the next room) is the focusof attention. Focus is important to marketers, because consumers more often than not choose the item on which

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their attention is focused. The degree of attention given iscalled intensity. When attention is divided between two ormore stimuli, the intensity toward any one is reduced. Forexample, someone who is going to tell you something impor-tant may say, “May I have your undivided attention?” Thesepeople know that a person who focuses on more than onething at a time is losing something from each area.

Carefully study page 586, which explains the differencebetween sensory memory, short-term memory, and long-termmemory. Short-term memory is the mental capacity wherethinking occurs. Because information fades from short-termmemory quickly (30 seconds or less), marketers must carefully decide how to present product information to potential consumers.

One of the most formidable challenges facing business todayis grabbing consumers’ attention. On pages 586–599, yourtextbook presents a variety of ways in which businessesattempt to grab consumers’ attention.

The chapter concludes with a brief discussion of subliminalpersuasion—that is, stimuli below our conscious level ofawareness (page 600). Using subliminal messages to influenceconsumer behavior has often been a popular topic in themedia. However, no scientific evidence has ever been producedto prove or disprove its effectiveness. The ability of subliminalstimuli to affect consumer behavior is highly doubtful.

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Lesson 5

This completes your fourteenth assignment. Review anymaterial you found difficult. Then take Self-Check 14. Checkyour answers with those provided in the back of this studyguide. Review the material for any of the questions you missed.

127


advergaming 581 lower threshold 568

advertising wearout 583 mobile marketing 581

attention 585 permission marketing 587

e-mail marketing 574 sensory memory 586

exposure 568 short-term memory 586

focus 585 span of attention 586

habituation 583 subliminal persuasion 600

intensity 585 viral marketing 579

isolation 588 zapping 582

long-term memory 586 zipping 582


Self-Check 14


_____ 1. Using shorter commercials is one way advertisers can deal effectively with consumers’ limited attention span.

_____ 2. Consumers sometimes deliberately try to avoid television ads.

_____ 3. Besides black and white, all colors have the same attention-getting ability.

_____ 4. Advertising wearout describes ads that are effective because they wear out consumer resistance.

_____ 5. Being the focus of attention during decision making may increase a product’schance of being chosen.

_____ 6. Selective exposure essentially increases the size of the audience being reached.

_____ 7. Short-term memory is an unlimited mental resource.

_____ 8. Gaining exposure essentially means entering a person’s sphere of existence.

_____ 9. People are less attentive to stimuli perceived as relevant to their needs.

_____10. The number of people watching a particular program typically equals the numberexposed to a commercial within the program.

(Continued)

Lesson 5 129

Self-Check 14


Terms Definitions

_____11. attention

_____12. exposure

_____13. habituation

_____14. span of attention

_____15. advertising wearout

_____16. subliminal persuasion

Answer the following question in a short paragraph.

17. What is meant by the term exposure? Is more exposure always better?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


a. The notion that people are influenced by stimuli below our conscious level of awareness

b. A physical proximity to a stimulus that allowsone or more of our five senses the opportunityto be activated

c. A condition in which ads lose theireffectiveness because of overexposure

d. A condition in which a stimulus becomes so familiar and ordinary that it loses its attention-getting ability

e. The amount of thinking focused in a particular direction

f. The length of time short-term memory can befocused on a single stimulus or thought

ASSIGNMENT 15Read this introduction. Then read Chapter 15, “ShapingConsumers’ Opinions,” pages 606–653, in your textbook,Consumer Behavior.

The opening vignette in this chapter focuses on the “legroomwars” between American Airlines and United Airlines. As youread it, think about how the companies’ different ads wereaimed at shaping consumers’ opinions of the two airlines.In this chapter you’ll learn about opinion formation andopinion change.

Opinion Formation

Opinion formation refers to the first time people develop anattitude, feeling, or belief about something. What happensbetween exposure to some object or stimulus (Chapter 14)and the formation of beliefs, feelings, and attitudes is calledcomprehension. Comprehension refers to the interpretation of a stimulus.

In this section of Chapter 15, you’ll first study the process of opinion formation. Then you’ll learn how businesses goabout using this information to influence the opinions ofpotential consumers.

The first thing a consumer does in response to a stimulusis to ask, “What is it?” Carefully read the information under“Stimulus Categorization” on page 608. Have you ever misinterpreted the message an advertiser was trying to convey?Marketers must make sure that consumers understand whattheir product is. The examples in your textbook should helpyou to realize how easy it is for consumers to misunderstandand miscategorize a product. As you read on, you’ll discoverthat the amount of information a consumer processes from anad has a direct effect on that person’s understanding of theproduct. Do you like reading or listening to ads? Do you wantto spend a lot of time trying to understand their messages?Probably not. That’s why advertisers try to get their messagesacross in the simplest way possible.


Lesson 5

Classical conditioning (pages 610–613) is often associatedwith the study of behavior. Since advertisers are attemptingto influence consumer behavior, the principles associatedwith classical conditioning can be very helpful to them. Thosewho are attempting to promote a product or service oftencompare or relate their product with something consumersfind pleasant. For example, a company that sells flavoredcoffees may show old friends enjoying each other’s companyas they share a cup of this type of coffee. Viewers beginto associate the coffee with good times and special people.This is classical conditioning.

In addition to the amount of processing required, you shouldalso understand the content of processing (pages 613–617).Your textbook presents two different opinion formationprocesses: a central process and a peripheral process.

The central process involves forming opinions from athoughtful consideration of relevant information. Becauseproduct-relevant thinking is high in this type of processing,strong ad claims are most effective. Figure 15.6 on page 614shows the relationship between strong claims and strength of product opinions when product-related thinking is high.

Opinions that arise without thinking about relevant informa-tion follow a peripheral process. In this process, consumersmay form attitudes based on whether they like an ad ratherthan on information about the product itself. Figure 15.9 onpage 617 shows the increasing relationship between pictures(peripheral information) and product opinions as product-relevant thinking decreases.

The next part of Chapter 15 deals with “How BusinessesShape Consumers’ Opinions,” pages 622–647. Companieswith effective ads understand opinion formation and knowhow to use some of these techniques to influence the buyingpublic. As you read the material on these pages, concentrateon the examples your textbook cites. These real-life storiesshould help you to understand the principles behind thetechniques being used.

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Opinion Change

Why would a business want to change the opinions of consumers? The answer is relatively simple. Sometimes, thecurrent opinions of consumers make it unlikely that they’llbecome customers. As you read the material on changingcustomer opinions, try to answer these questions:

■ When should a company try to change consumer opinions?

■ Should a company ever change its product rather thantrying to change people’s opinions about that product?

■ Why do mature products (products that have beenaround for many years) often need to be changed?

■ What makes it so difficult to change consumers’ opinions?

■ What danger exists in changing consumer’s opinions?



affective responses 610 opinion formation 608

central process 614 peripheral cues 616

classical conditioning 610 peripheral process 616

cognitive responses 610 reference pricing 628

comprehension 608 scarcity effect 644

conditioned response 611 search claims 634

conditioned stimulus 611 stimulus generalization 625

differential threshold 619 subjective claims 635

experience claims 634 unconditioned response 610

match-up hypotheses 639 unconditioned stimulus 610

objective claims 635 Weber’s law 619

opinion change 618

This completes your fifteenth assignment. Review any materialyou found difficult. Then take Self-Check 15. Check youranswers with those provided in the back of this study guide.Review the material for any of the questions you missed.

Lesson 5 133

Self-Check 15


_____ 1. Product endorsers can’t serve as peripheral cues.

_____ 2. Strong, compelling ad claims lead to more favorable attitude formation as long as consumers follow a central process.

_____ 3. According to classical conditioning, pairing one stimulus that spontaneously evokes certain meanings and feelings with another can cause a transfer of thesemeanings and feelings from one to the other.

_____ 4. In an advertisement using classical conditioning, the product represents the conditioned stimulus.

_____ 5. It’s usually easier to influence opinions at the time they’re being formed than tochange pre-existing opinions.

_____ 6. Answering the question “What is it?” involves stimulus elaboration.

_____ 7. One key aspect of processing content is the extent to which it involves product-relevant thinking.

_____ 8. Comprehension involves the interpretation of a stimulus.

_____ 9. Reference pricing involves providing information about the price actually charged.

_____10. Pavlov is considered to be the father of classical conditioning.

(Continued)


Self-Check 15


Terms Definitions

_____11. affective response

_____12. cognitive response

_____13. conditioned response

_____14. differential threshold

_____15. objective claim

_____16. peripheral cue

_____17. subjective claim

_____18. unconditioned response

(Continued)

a. An advertising statement that focuseson factual information that isn’t subjectto individual interpretations

b. A stimulus devoid of product-relevantinformation

c. Behavior that results from pairing aconditioned and unconditioned stimulus

d. An advertising statement that mayevoke different interpretations from different individuals

e. The smallest change in stimulus intensity that will be noticed

f. The experiencing of certain thoughts

g. A stimulus known to evoke automaticallya particular response

h. The experiencing of certain feelings

Lesson 5 135

Self-Check 15


19. What is opinion formation?

__________________________________________________________________________

__________________________________________________________________________

20. How do product endorsers shape consumers’ product opinions?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

21. Is there any danger in changing consumers’ opinions? Explain your answer.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


ASSIGNMENT 16Read this introduction. Then read Chapter 16, “HelpingConsumers to Remember,” pages 654–686, in your textbook,Consumer Behavior.

In the opening vignette of Chapter 16, you’ll read how theGillette Company, maker of Duracell batteries, has tried toremind consumers that its pricier batteries last longer andmay be a better deal than the cheap “super heavy duty” onessold by Wal*Mart. Whatever your message, this assignmentfocuses on getting consumers to remember it.

Cognitive Learning

Before a business can help consumers to remember theirproduct, they must understand how consumers learn and howthey remember. Cognitive learning occurs when informationprocessed in short-term memory is stored in long-term memory. Your textbook discusses two factors that determinea person’s cognitive learning: rehearsal and elaboration.

Rehearsal, which involves the mental repetition of informationin short-term memory, serves two functions. First, it allowsfor the maintenance of information in short-term memory.Second, it involves the transfer of information from short-termto long-term memory.

Elaboration that occurs during the processing of informationaffects the amount of learning that takes place. Greater elaboration leads to greater learning. The amount of elabora-tion during information processing depends on the motivationand the ability of a person to elaborate. The motivationalstate has considerable influence on what is learned. Mostteachers soon learn that weaker students who are highlymotivated are often able to learn more than very bright students with little or no motivation.


Lesson 5 137

Retrieval

Retrieval is the process of moving long-term memory infor-mation into short-term memory. What good is learning some-thing if you’re unable to recall it when you need it?Marketers must be concerned with how well consumers canretrieve the product information they’ve processed. The material on pages 661–662 explains the factors that affectthe successful retrieval of information.

Forgetting is the failure to retrieve something from memory.Pages 662–663 discuss several theories that have been pro-posed regarding why people forget. If marketers are aware ofthe factors that cause people to forget, then they’re betterable to gear their advertisements to help them remember.

Retrieval also depends on whether the information to beremembered requires recognition or recall. Before you readthe material on “Recognition and Recall,” page 663, go backto page 338 to review the difference between these twoterms. In recognition, the strongest possible retrieval cue ispresented, the information itself. Recall, however, requires amore cognitive process since the consumer must rememberthe information rather than simply recognize it. For marketingpurposes, recognition and recall can be affected by productawareness and advertising awareness.

How Companies Can HelpConsumers to Remember

You’ve already studied how businesses can change consumers’opinions. Now you’re going to learn how these businessescan help consumers to remember what they’ve learned abouta particular product or service. Pages 667–681 enumeratesome of the methods marketers use to help consumersremember their products. As you study these pages, pay particular attention to the sample ads that illustrate eachtechnique. These examples should help you to remember!


This completes your sixteenth and final assignment. Reviewany material you found difficult. Then take Self-Check 16.Check your answers with those provided in the back of thisstudy guide. Review the material for any of the questions youanswered incorrectly.

This also completes your fifth, and final, lesson. Review anymaterial from Assignments 14–16 that you found difficult.When you’re sure you understand the information covered inLesson 5, take Examination 5.

You should be very proud of yourself for completing thiscourse. Some of the material was hard and some assignmentscovered a lot of material. It would have been easy to give up,but you didn’t! Congratulations.


abstract words 676 intentional learning 659

aided (cued) recall 663 interference theory 662

associative network 660 mental representations 659

cognitive learning 658 rehearsal 658

concrete words 676 retrieval 661

decay theory 662 retrieval cue 661

dual coding 659 self-referencing 673

elaboration 658 spreading activation 662

forgetting 662 unaided (free) recall 663

incidental learning 659

Lesson 5 139

Self-Check 16


_____ 1. Greater rehearsal usually interferes with the strength of the long-term memorytrace.

_____ 2. Multiple representations increase the number of possible mental pathways thatinformation can travel when a person is trying to remember something.

_____ 3. Many of the techniques suggested by memory experts for increasing one’s abilityto learn and remember new information rely on the benefit of elaboration.

_____ 4. Abstract words are easier to remember than concrete words.

_____ 5. The concept of dual coding proposes that information can be stored in both long-term and short-term memory.

_____ 6. Greater recall of advertising claims is a sure indicator that the ad is effective atproducing favorable product attitudes.

_____ 7. According to decay theory, memories grow weaker with the passage of time.

_____ 8. Research indicates that advertising isn’t effective at activating the consumer’smemory of past consumption experience.

_____ 9. According to interference theory, the chances of retrieving a piece of informationdecrease as interference from other information increases.

_____10. Rehearsing information in the same form in which it’s encountered is an exampleof elaboration.

(Continued)


Self-Check 16


Terms Definitions

_____11. cognitive learning

_____12. dual coding

_____13. elaboration

_____14. incidental learning

_____15. intentional learning

_____16. rehearsal

_____17. retrieval

_____18. retrieval cue

_____19. self-referencing

(Continued)

a. The mental repetition of information,or the recycling of information throughshort-term memory

b. Relating a stimulus to one’s own selfand experience

c. A stimulus that activates information inmemory relevant to the information tobe remembered

d. A deliberate effort to learn something inorder to remember it

e. A process in which information from short-term memory is stored in long-term memory

f. Learning that occurs despite the absence ofa deliberate effort to learn

g. The activation of information stored in long-term memory that’s then transferred intoshort-term memory

h. Integration between the stimulus andexisting knowledge

i. A concept that suggests that information canbe stored in both semantic and visual forms

Lesson 5 141

Self-Check 16


20. What are mental representations?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

21. How can companies help consumers retrieve information?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


NOTES


Lesson 5Influencing Consumer Behavior



1. As you’re watching TV, an advertisement that you’ve seen

many times comes on the screen. You feel very annoyed

by this particular ad. This situation is an example of

_______ response.

A. affective C. unconditioned

B. cognitive D. critical

2. Some time ago, Jim had a phone call from a telemarketer who

told Jim he would receive a free computer if he attended a

sales talk about a time-share condominium. The telemarketer

was employing the strategy called

A. habituation.

B. incentive marketing.

C. permission marketing.

D. classical conditioning.

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3. Suppose consumers form their consideration sets at the point of purchase. Given this, the

most relevant indicator of product awareness would be brand name

A. recall. C. retrieval.

B. recognition. D. familiarity.

4. In an advertisement for wine, a group of 30-something adults is shown in a social

environment. Everyone is drinking wine and having a good time. This ad uses

A. a central process. C. objective claims.

B. product-relevant information. D. peripheral cues.

5. Anna’s grandfather, who is 90 years old, sometimes has difficulty remembering things.

According to _______ theory, his age is the cause of his weaker memory.

A. decay C. spreading activation

B. retrieval D. interference

6. Toby bought a tape that says it can help him quit smoking. The tape sounds like ocean

waves, but it also includes messages that he can’t hear telling him all the reasons he

should quit smoking. This tape claims to have _______ messages.

A. isolational C. habituational

B. subliminal D. associational

7. People who watched the World Series viewed an ad for a shaving cream. They were then

asked to remember its brand name. This is an example of what type of memory measure?

A. Unaided recognition C. Aided recall

B. Unaided recall D. Aided recognition

8. Fanny saw an advertisement on TV last night for a brand new product. It was the first time

she had heard about the product, and she thought it looked like a really good idea. Fanny

went through a process of

A. opinion change. C. stimulus categorization.

B. opinion formation. D. comprehension.

9. Frank owns a small business. A local radio station has approached him to advertise on

their station. What question would most help Frank decide if an ad on that station would

reach his target audience?

A. What other companies advertise on your station?

B. What is the size of your listening audience?

C. What is the price of a 30-second ad?

D. What kind of music do you play?


10. Carl wants to remember the number 2740. The first two numbers are easy because

he’s 27 years old. Then he thinks, “It won’t be long until I’m 40!” Carl is using a process

known as

A. classical conditioning. C. repetition.

B. self-referencing. D. dual coding.

11. In an ad for a pickup truck, the automobile company shows the truck with a team of oxen

to symbolize strength. In this use of classical conditioning, the oxen represent the

A. unconditioned stimulus. C. conditioned stimulus.

B. unconditioned response. D. conditioned response.

12. At a commercial break during a TV show, you go to the kitchen when an ad opens with a

happy family at an ideal kitchen table. Your microwave popcorn has just started to pop

when you hear loud male voices and heavy-metal electric guitar chords. This second

commercial gets your attention because of its

A. isolation. C. entertainment.

B. novelty. D. intensity.

13. According to Weber’s law, which price increase would consumers perceive to be

the greatest?

A. A 10-cent increase over the original price of 25 cents

B. A 50-cent increase over the original price of $1

C. A $2 increase over the original price of $10

D. A $100 increase over the original price of $400

14. Because Mary is reading, she doesn’t hear her mother calling her. When her mother calls

louder, Mary hears her. Mary hears her mother the second time because her mother’s

increased volume exceeded Mary’s _______ threshold.

A. lower C. attention

B. subliminal D. differential

15. Susan’s father was quizzing her on the state capitals to help her prepare for a social studies

test. Her little brother, Raymond, was playing in the same room. When Susan’s father

asked her for capitals they’d already studied, Raymond was able to answer some of them

correctly too. Raymond’s knowledge is an example of

A. dual coding. C. elaboration.

B. retrieval. D. incidental learning.

16. The Jolly Green Giant is featured in television commercials and appears on each can of

Green Giant vegetables. The giant is an example of a/an _______ cue.

A. retrieval C. cognitive

B. associative D. rehearsal


17. Tiger Woods is an exceptionally good professional golfer. For which one of the following

products would he be the most effective by appearing in their advertisements?

A. Sports gear C. Toothpaste

B. Automobiles D. Cameras

18. Jim had a terrible experience regarding the warranty on his present car. He’s now in the

market for a new car and finds that he’s paying attention to the seven-year 100,000-mile

warranty protection in the commercial now playing on TV. Jim’s situation is an example of

a/an _______ response.

A. cognitive C. conditioned

B. affective D. unconditioned

19. A commotion erupts in the hall outside the door of a classroom. The likelihood that the

students in the classroom are paying attention to the teacher are diminished because

A. there are fewer stimuli competing for their attention.

B. there are more stimuli competing for their attention.

C. the attention span of the students is desensitized.

D. the attention span of the students is increased.

20. I remember that a particular vehicle handles well. This reminds me that the vehicle has

all-wheel drive and that the maker offers a roadside assistance option and a Global

Positioning System. What’s happening in my brain is called

A. retrieval. C. memory surge.

B. decay. D. spreading activation.

21. Which technique for helping consumers to remember relies on Gestalt psychology?

A. Consistency C. Closure

B. Elaboration D. Easy-to-remember stimuli

22. Two students are discussing advertising appeals. Student A says value-expressive

advertising must appeal to consumers’ actual self-image. Student B says that

value-expressive and utilitarian appeals mustn’t be used together. Who is correct?

A. Only Student A C. Both students

B. Only Student B D. Neither student

23. Which of the following statments about framing is true?

A. Gain-framed messages are based on loss aversion.

B. Consumers react better to 10% fat meat than to 90% lean meat.

C. Gain-framed messages work better than loss-framed ones.

D. When consumers are in a good mood, loss-framed messages are more effective.


24. Viral marketing seeks to create

A. positive moods. C. buzz.

B. loss aversion. D. blogs.

25. If a marketing e-mail is blocked by a recipient’s mail server,

A. the recipient perceives it as spam.

B. the e-mail is somehow deficient.

C. the recipient’s mailbox is full.

D. it’s a permission-based e-mail.


NOTES


Self-Check 11. True

2. True

3. True

4. False

5. False

6. True

7. a

8. c

9. i

10. j

11. g

12. b

13. f

14. e

15. h

16. d

17. We’ve entered an age in which consumers, individuallyand collectively, have tremendous power to make deci-sions. Consumers have unprecedented spending abilityand unprecedented freedom to exercise it. Satisfying theconsumer is the focus of most good firms across theworld.

18. The only thing that can close Wal*Mart doors is for thecustomer to stop coming in. As long as consumerschoose to patronize Wal*Mart, the doors will stay open.Walton believed that it’s the consumer who is the finaldecision maker as to which stores prosper and which fail.

19. A firm with a comprehensive consumer orientation hasmade a commitment to focus on how all organizations ina demand chain adapt to changing consumer lifestylesand behaviors. It also recognizes the role consumersplay in shaping aspects of society, including government,societal organizations, and all areas of life.

149

An

sw

ers

An

sw

ers

Self-Check 21. False

2. True

3. True

4. True

5. False

6. False

7. True

8. True

9. h

10. b

11. g

12. a

13. c

14. e

15. d

16. f

17. i

18. The goal is to identify groups of consumers that can betargeted more effectively and/or efficiently. Doing soenables a firm to increase the chances that consumerswill respond more favorably to its offerings. It may alsoallow the firm to charge a higher price. Ultimately, thegoal is to increase the firm’s profitability.

Self-Check Answers150

19. One of the most important tasks facing marketers isselecting the best target markets to serve. Because acompany’s resources are limited, a decision to select atarget market is directly related to the profits of a company. Four criteria are often considered in this decision: measurability, accessibility, substantiality, andcongruity. Measurability refers to the obtaining of infor-mation about the size, nature, and behavior of a marketsegment. Accessibility refers to the ability to reach segments through advertising programs or distributionchannels. Substantiality is the size of the market toserve. Congruity refers to the sameness of the segmentwith respect to consumer characteristics or behaviors.

Self-Check 31. True

2. False

3. False

4. False

5. True

6. False

7. True

8. False

9. True

10. True

11. e

12. c

13. f

14. a

15. b

16. d

17. By understanding how consumers make their purchasedecisions, companies are in a better position to imple-ment effective marketing strategies. Knowing where

Self-Check Answers 151

Self-Check Answers

consumers search for information, for example, providesguidance on where the company may wish to concen-trate its efforts. When analyzing consumers that aren’tcustomers, a company can determine at which stage inthe decision-making process potential customers arebeing lost. There are numerous ways in which an under-standing of consumer decision making is beneficial tocompanies.

18. (1) The degree of involvement, representing the level ofperceived personal importance and/or interest evoked by a stimulus within a specific situation; (2) the degree of differentiation between alternatives; (3) the amount oftime available for deliberation; and (4) the consumer’smood state.

Self-Check 41. True

2. True

3. False

4. True

5. False

6. False

7. e

8. b

9. h

10. d

11. f

12. j

13. g

14. c

15. a

16. i

152

17. Generic need recognition involves the need for an entireproduct category, whereas selective need recognitiondeals with the need for a specific brand within a productcategory. While most marketing activities attempt tostimulate selective need recognition, there are situationsin which it makes sense to stimulate generic need recognition. For example, producers in product categoriesthat have little meaningful product differentiation (forexample, the milk industry) may pool their resources to increase the entire product category. On the otherhand, producers of cleaning products may focus on theadvantages of their product over others in the same category. Even if product differentiation exists, the market leader may find it profitable to stimulate genericneed recognition as long as it captures its share of anynew business brought into the market. Finally, focusingon generic need recognition makes sense for a new product that has yet to worry about competitors.

18. Knowing how a consumer recalls a brand changes theemphasis of what a company should teach consumers. If consideration depends on consumers’ ability to recallthe company’s offering, then the company should educate consumers sufficiently so that they’re able to do so. In a situation like this, simply recognizing a brandname for product packaging isn’t sufficient. At othertimes, however, such recognition is sufficient—for example, many of the decisions made inside the super-market are based on product recognition. For theseinstances, teaching consumers about what the nameand packaging looks like is critical.

Self-Check 51. True

2. False

3. True

4. True

5. False


6. j

7. a

8. i

9. c

10. f

11. h

12. e

13. b

14. g

15. d

16. k

17. In a fully planned purchase, the consumer decides thetype of product and the brand he or she will buy priorto entering the purchase environment. In a partiallyplanned purchase, the consumer decides the producttype prior to entering the purchase environment but hasnot decided on the brand.

18. Many consumers view location in terms of travel timeand the amount of hassle it takes to get to a store.Cognitive maps or consumer perceptions and shoppingareas can be more important than actual locations.Cognitive maps represent the amount of a time a consumer perceives it will take to reach a store. Actualdistance may be relatively less important.

Self-Check 61. True

2. False

3. True

4. True

5. False

6. False

7. True


Self-Check Answers

8. True

9. c

10. d

11. e

12. a

13. b

14. Understanding how a product is used may give a retailerinsights on what motivates a consumer to purchase aproduct and how the retailer can influence purchasebehavior. For example, the text mentions the purchaseof rice. When consumers purchase rice to be served as a stand-alone dish, they’re willing to pay the higher pricecharged by a premium brand. But when they plan tomix the rice in a meal, they purchase and use a cheaper,competitive brand.

15. Consumers’ satisfaction is determined by how they perceive a produce, what their pre-purchase expectationsare, and what feelings they experience during product consumption.

Self-Check 71. True

2. False

3. True

4. False

5. False

6. True

7. True

8. True

9. True

10. True

11. d

12. h

155

13. b

14. f

15. i

16. g

17. c

18. a

19. j

20. e

21. Demographic analysis can be used in several ways tounderstand consumer behavior. First, market segmentsare usually described in terms of their demographiccharacteristics. This enables an advertiser to select thosemedia that offer the best match to the demographic profile of the target market. Demographic analysis isalso useful for anticipating market trends. For instance,if a particular demographic segment is expected to growsubstantially in the short term, the demand for productsconsumed by the segment can also be expected to grow.

22. Lifestyle refers to the patterns in which people live andspend time and money, reflecting a person’s activities,interests, and opinions (AIOs). By understanding con-sumers’ lifestyles, companies are able to more efficientlytarget, contact, and persuade consumers to buy theirproducts.

Self-Check 81. True

2. False

3. True

4. False

5. True

6. True

7. False

8. False


9. True

10. True

11. a

12. e

13. c

14. g

15. f

16. b

17. d

18. Chapter 8 discusses five ways companies can motivateconsumers: (1) overcoming price barriers, (2) providingother incentives for purchase, (3) enrolling customersinto a loyalty program, (4) enhancing the perceived riskof product purchase and consumption, and (5) arousingconsumers’ curiosity.

19. Consumer motivation is the starting point for under-standing why people become consumers. Before companies can implement a marketing concept, theymust first understand what needs are to be satisfied.Failure to do so is a recipe for disaster.

Self-Check 91. True

2. True

3. True

4. False

5. True

6. False

7. False

8. False

9. True

10. False


11. d

12. b

13. e

14. c

15. a

16. Consumer knowledge can be found in many places. Forexample, the opinions of others are often valuable, espe-cially when they’re perceived to be more knowledgeableabout the product in question. Consumer knowledge can also be found from nonpersonal sources such asmagazines like Consumer Reports, the Yellow Pages, andthe Internet. One of the best sources of knowledge usuallycomes from the consumer’s own experience. What theconsumer has learned about a product from using it canbe used in the next purchase.

17. An examination of consumer knowledge can assist in the development of customer recruitment activities.Understanding the product images of a firm’s competitorsshould enable it to see why consumers are buying thealternative product. When comparing its product with acompetitor’s, a firm can then decide on which changesin consumer knowledge are needed for recruiting a competitor’s customers.


2. True

3. True

4. False

5. True

6. True

7. True

8. False

9. True


10. False

11. c

12. d

13. a

14. b

15. e

16. Here’s the completed table for the Fishbein model.

Brand A’s total is 5, calculated as follows:

(+2 × +1) + (–2 × –1) + (+1 × –1) + (+1 × +2) =(+2) + (+2) + (–1) + (+2) = +5

Brand B’s total is also 5, calculated as follows:

(+2 × +2) + (–2 × 0) + (+1 × +3) + (+1 × –2) = (+4) + (0) + (+3) + (–2) = +5

Brand C’s total is –9, calculated as follows:

(+2 × –1) + (–2 × +4) + (+1 × 0) + (+1 × +1) = (–2) + (–8) + (0) + (+1) = –9

In the Fishbein model, the brand with the highest scoreis preferred; therefore, Brand C, with the lowest score, isleast likely to be selected.

17. Strong smell is considered an undesirable attribute asindicated by the negative number as its evaluation.


etubirttAnoitaulavE

(ei )

(sfeileB bi )


ecneinevnoC 2+ 1+ 2+ 1–

llemsgnortS 2– 1– 0 4+

stneidergnilarutaN 1+ 1– 3+ 0

tsocwoL 1+ 2+ 2– 1+

latoT Σbiei erocs

18. Here’s the completed table for the ideal-point model.

The score of Brand A is 19, calculated as follows:

[5 × ⎮(3 – 4)⎮] + [2 × ⎮(1 – 5)⎮] + [3 × ⎮(5 – 3)⎮] = (5 × 1) + (2 × 4) + (3 × 2) = 5 + 8 + 6 = 19

19. In the ideal-point model, the brand with the lowest scoreis the preferred brand; therefore, Brand B is most likelyto be purchased.

20. From a multiattribute attitude model perspective, thereare three basic ways for changing consumers’ attitudes:(1) change consumers’ beliefs about the product’s attrib-utes, (2) change the importance consumers attach to anattribute, and (3) change consumers’ preferences aboutwhat the ideal product would look like.

Self-Check 111. True

2. False

3. True

4. True

5. False

6. False

7. True

8. True

9. True

10. True


etubirttAecnatropmI

W(i)

tnioPlaedII(i)

(sfeileB Xi)

tnioPAdnarB Wi⎮⎮⎮⎮⎮I

iX—

i⎮⎮⎮⎮⎮

ecirP 5 3 4 5

ecneinevnoC 2 1 5 8

stneidergnI 3 5 3 6

latoTΣ W

i⎮⎮⎮⎮⎮I

iX-

i⎮⎮⎮⎮⎮ 91

11. e

12. a

13. g

14. c

15. h

16. d

17. b

18. f

19. Core values are basic to understanding the behavior of people and can be helpful to marketers in a variety of ways. They define how products are used in a society.For instance, core values dictate not only what types of food may be eaten, but also when and under what circumstances. Core values provide positive and negativevalences for brands and communication programs, andthey define acceptable market relationships. Cultureinfluences a firm’s business strategies, tactics, and practices in the global marketplace. Finally, core valuesdefine ethical behavior.

20. According to Hofstede, four cultural dimensions are useful in comparing and contrasting national cultures:

a. Individualism vs. collectivism (the relationshipbetween the individual and the other members of society)

b. Uncertainty avoidance (the ways in which societiesreact to the uncertainties in life)

c. Power distance (the degree to which a societyaccepts inequality in power at different levels oforganizations and institutions)

d. Masculinity-femininity (the extent to which societies hold values traditionally regarded as predominantly masculine or feminine)


21. Social class is influenced primarily by the family inwhich one is raised. Six other variables are important inunderstanding a consumer’s social class:

a. Occupation (the single best indicator of socialclass in most consumer research)

b. Personal performance (how well people achievecompared to others in the same profession)

c. Interactions (how well people interact withtheir contemporaries)

d. Possessions (the number and types of thingsowned by people)

e. Value orientations (the common set of convictions)

f. Class consciousness (the degree to which peopleare aware of themselves as a distinctive groupwith shared political and economic interests)


2. True

3. False

4. False

5. True

6. True

7. True

8. False

9. True

10. False

11. True

12. i

13. f


14. b

15. k

16. c

17. h

18. d

19. e

20. g

21. a

22. j

23. Individual roles in family purchases include

■ Initiator/gatekeeper, who is the initiator of familynorms about purchasing products

■ Influencer, whose opinions are used to decide thepurchase criteria and to identify which productsmost closely fit those criteria

■ Decider, who has the financial authority or powerto actually make the buying decision

■ Buyer, who acts as the purchasing agent, goes tothe store, and makes the purchases

■ User, who consumes the product

Each of these roles may be performed by different mem-bers of the family, or one member may play several roles.

24. The family life cycle refers to the series of stages thatoccur in families over time. Alternative names mayinclude household life cycle or consumer life cycle,which may become more appropriate as the nature of the family changes. Some of the stages are young singles, full nest, older singles, empty nest, solitary survivor, and retired solitary survivor.


The family life cycle is important because of the sub-stantial changes that occur in how consumers spendtheir money across the cycle. Businesses can anticipatewhich product categories may flourish or suffer becauseof changes in the number of consumers occupying aparticular stage in the family life cycle.


2. True

3. False

4. False

5. True

6. False

7. True

8. False

9. False

10. False

11. a

12. i

13. d

14. f

15. b

16. j

17. h

18. c

19. e

20. g

21. An opinion leader is the sender of information and opin-ions in the WOM (word-of-mouth) process. An opinionleader is most influential when a consumer has littleknowledge of a product or brand, the person lacks ability


to evaluate the product or service, the consumer doesn’tbelieve or trust advertising and other sources of infor-mation, other information sources have low credibilitywith the consumer, the consumer has a high need forsocial approval, strong social ties exist between senderand receiver, the product is complex, the product is diffi-cult to test against objective criteria, and the product ishighly visible to others.

22. The chapter discusses five main characteristics: (1) relative advantage—the degree to which consumersperceive a new product to offer substantially greaterbenefits than the product they currently use; (2) compat-ibility—the degree to which a new product is consistentwith the consumers’ existing practices, values, and needs;(3) complexity—whether a new product is perceived asdifficult to understand and use; (4) trialability—whetherconsumers can experiment with or try the new producton a limited basis, with limited financial risk; and (5)observability—whether results from using a new productare visible to friends and neighbors.

Self-Check 141. True

2. True

3. False

4. False

5. True

6. False

7. False

8. True

9. False

10. False

11. e

12. b

13. d


14. f

15. c

16. a

17. Exposure occurs when there’s physical proximity to astimulus that allows one or more senses to be activated.The stimulus must meet or exceed the lower threshold,which is the minimum amount of stimulus intensitynecessary for sensation to occur. No, more exposure isn’talways better. Too much exposure can backfire on a marketer. Habitation may set in if a stimulus becomesso familiar and ordinary that it loses its attention-gettingability. Advertising wearout describes the phenomenawherein ads lose their effectiveness over time because of overexposure. Overexposure is a problem because itnot only causes consumers to lose interest, but it alsomakes consumers more critical of an ad, thus loweringtheir opinion of the product.


2. True

3. True

4. False

5. True

6. False

7. True

8. True

9. False

10. True

11. h

12. f

13. c

14. e


15. a

16. b

17. d

18. g

19. Opinion formation is the initial development of a belief,feeling, or attitude about something.

20. Product endorsers shape consumers’ opinions in severalways: (1) Their association with the product may be reason enough for a person to buy it. (2) Endorsers canbe a rich source of meanings that companies may wishto associate with their products. (3) Endorsers may pro-vide testimonies of the product’s effectiveness. (4) Theymay cause consumers to become more accepting of anad’s claims. (5) They might serve as a peripheral cue.

21. Yes, changing consumers’ opinions can be very danger-ous. The basic problem is that a change made to appealto one group of consumers may alienate another group.One of the most famous cases occurred when the Coca-Cola Company decided to change its formula. The newformula wasn’t successful and the company had to bringback the original formula after protests by loyal Cokedrinkers. In the political field, changing a position onone issue may help with one constituency but may loseanother.


2. True

3. True

4. False

5. False

6. False

7. True

8. False


9. True

10. False

11. e

12. i

13. h

14. f

15. d

16. a

17. g

18. c

19. b

20. Mental representations refer to the particular way inwhich information is stored in long-term memory. Astimulus may be stored in the same form as it originallyappeared, or it can be stored according to a person’sperceptions. The same piece of information may beencoded in different ways. When a piece of informationis stored both semantically (according to its meaning)and visually (according to its appearance), dual coding is said to exist. Mental representations are thought to be organized as an associative network. These networksare organized like a spider’s web, with nodes containingvarious pieces of memory connected to other nodes in aseries of hierarchical networks.

21. Companies can help consumers remember about theirbrands in several ways: (1) by reminding them what thecompany wants them to remember, (2) by showing theirads repeatedly, (3) by encouraging consumers to engagein elaboration, (4) by providing consumers with multiplerepresentations, (5) by creating consistency among theelements in an ad, (6) by using easy-to-remember stimuli,and (7) by putting consumers in a good mood.


Documents

Study Guide Consumer Behavior - JustAnswer€¦ · 7/7/2014 · the University of Scranton, Scranton, Pennsylvania. She has taught business courses at the college level on a range