CH-9-12 Microcultures – CB Consumer Behaviour Canadian : Book Guide

This Document Contains Chapters 9 to 12 Chapter 9 Microcultures END OF CHAPTER MATERIAL CASE ANSWERS: The Ultimate Fighting Championship 1. How would you define the MMA microculture in terms of its audience demographics? Does it make sense to define this microculture in terms of age and gender? How about geography, generation, social class, or ethnic background? Answer: The MMA microculture is not unlike that of other major league sports in terms of its demographics. It tends to be younger and male with a bias toward the lower to middle socioeconomic status. Defining the microculture demographically, however, is likely to be problematic as the UFC also attracts a wide variety of viewers from different demographic segments. It is probably best to think about the microculture from a psychographic perspective—that is, the UFC audience is composed of people who are interested in combat sports and mixed martial arts competition. Microcultures are often difficult to define in terms of demographic and geographic variables alone. 2. What aspects of the UFC make it possible for the company to grow MMA into a mainstream sport, similar in size and scope to hockey, football, baseball, or basketball? Answer: The UFC is unique in that it is a major sports organization that is owned by a single entity that has a large number of athletes under contract and the ability to control the events that it promotes. The brand is closely managed and the fighters have few options for a professional MMA career outside the UFC. This is an important difference from the traditional major sports that are constantly struggling with managing the competing interests of owners, athletes, cities, and fans. Similarly, the UFC does not have the problems associated with building stadiums, rinks, or ballparks that most other professional sports have to contend with. Finally, the UFC has demonstrated that it has a strong global core group of fans that are willing to support it. The challenge will be in extending a sport known for violence—and often blood and gore—beyond those core segments. An important step in this direction is the multi-event deal that the UFC has recently signed with the Fox Network. A common property of all the major professional sports is distribution to a mass television audience. 3. What parts of the UFC appeal to the MMA microculture that might not appeal to a more general audience? Answer: The UFC is a combat sport. The athletes punch, kick, and grapple with each other in a violent manner that often results in both fighters being bruised and bloodied. Although many fights are determined by the judges’ score cards, many others end when one of the fighters is rendered unconscious. It remains to be seen how broad the appeal is for this level of violence. There may even be some stigmatization associated with being a fan of such a sport. However, boxing is similarly violent, yet it has enjoyed its status as a mainstream sport for a long time in North America. The organizational structure of the UFC gives it a number of advantages over boxing. In particular, there are fewer weight classes, only one champion per weight class, and the UFC has complete control over match making. As a result, while boxing has many uncompetitive and overhyped matches—and is often unable to get the best fighters into the ring together—the UFC is able to ensure it puts together the fights that it and its fans want. This gives the UFC much greater control over its brand image, which may allow it to create a product that is appealing to a more general audience. 4. Has the MMA microculture influenced the mainstream culture in North America? If so, how? If not, why not? Answer: Answers to this question are likely to depend on the extent to which the student is familiar with MMA and the UFC. In fact, although the impact of the UFC outside of its core audience segments has been relatively limited, hardcore fans are likely to see the UFC as growing rapidly from a small niche market to mainstream acceptance. Students unfamiliar with the UFC will see very little influence in the mainstream culture. This question provides the instructor with an opportunity to discuss how different a culture can look from the inside (when one is a member of that culture) versus the outside (when one does not belong to that culture). Yes, the MMA microculture has significantly influenced mainstream culture in North America. Its rise has popularized mixed martial arts as a legitimate sport, leading to increased media coverage, sponsorships, and the establishment of major organizations like the UFC. Additionally, MMA has shaped fashion trends, with fight gear and athleisure becoming more mainstream. The values of discipline, fitness, and resilience associated with MMA have also permeated broader lifestyle and wellness trends. Overall, the microculture has helped shift perceptions of combat sports and fitness in North American society. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] What are microcultures and how do they differ from culture? Answer: In simplest terms, a microculture is a smaller version of a culture. Consumers belong to both cultures and microcultures. Tastes, preferences, and behaviours are influenced by both. However, role expectations tend to be heavily influenced by microcultures. For example, in the Canadian culture it would be expected that women are treated very equally with men. In some religious microcultures, this is not the case. If this were found in one particular situation, we could say that microculture influences the consumer more strongly than does the culture. As such, the two concepts are similar, but distinct. 2. [LO1] What does it mean that culture is hierarchical? Answer: This statement implies that consumers belong to both an overall culture and various subcultures that are conceptualized as falling under the overall consumer culture. As stated in the first question, the influence of microculture can be very strong indeed. Problems occur when the role expectations of the various microcultures conflict with one another. 3. [LO2] What are the major Canadian microcultures? Answer: The major Canadian microcultures are: regional/tribe, sex role, age-based, generational, religious, ethnic, and income/social class. 4. [LO2] What is meant by Michael Adams’ tribes? Answer: The tribes identified originally in the book Sex in the Snow divide Canadians into 12 groups that are initially classified by age, but that also identify key differences in values and motivations. These differences strongly influence consumer behaviour among the tribes. 5. [LO3] To what extent do microcultures play a role in consumer behaviour outside of Canada? Answer: Microcultures are not solely a Canadian phenomenon. Microcultures exist throughout the world to varying degrees. Nearly all of the microcultures described in this chapter exist throughout the world and greatly impact consumer behaviour worldwide. 6. [LO3] How is the middle class microculture evolving in various regions of the world? Answer: The chapter discusses the middle class as it applies to the countries of China, Japan, and India. In both China and India the middle class microculture is growing. This is not the case in Japan, where researchers have noted that it is actually declining and the gap between the Upper and Lower classes is becoming more pronounced. The middle class microculture is evolving globally, shaped by factors like urbanization, increased education, and rising incomes. In emerging markets, a growing middle class is driving demand for consumer goods and services, leading to lifestyle changes that prioritize quality and brand. In developed regions, this group is becoming more health-conscious and environmentally aware, influencing purchasing behaviors. Additionally, digital connectivity fosters a shared global culture, blending local traditions with global trends. This evolution reflects both economic growth and shifting societal values. 7. *[LO4] What is meant by the term demographic analysis? Answer: A demographic analysis is used to develop a profile of a consumer group based on demographic variables. These analyses are often combined with geodemographic approaches. A major source of information for these analyses is the Statistics Canada website. 8. *[LO5] What are some major cultural and demographic trends? Answer: There are a number of these trends worldwide. One of the biggest trends in Western countries is the declining birth rate and increasing life expectancy. However, this trend does not hold true for every nation in the world. Consumer affluence is also growing in many parts of the world, particularly in Canada, the United States, India, and China. Growing cultural diversity has been witnessed throughout Europe, particularly with the growth of Islam. Cultural diversity has increased in the U.S. and Canada as well. In addition, Canada is experiencing a change in population growth trends, with the western provinces growing more rapidly than central and eastern Canada. This population growth shift has also been accompanied by a population shift toward urban centres. Street microcultures also continue to evolve worldwide. INTERACTIVE/APPLICATION EXERCISES 9. *Using the six class distinctions detailed in this chapter, how would you describe the social classes present at your university? Answer: There are no right or wrong answers here. The intent is to prompt students to think about the various social classes discussed in the chapter and apply them to their university’s student population. At my university, social classes can be categorized as follows: 1. Upper Class: Students from affluent backgrounds, often attending prestigious programs and involved in exclusive extracurricular activities. 2. Upper-Middle Class: Many students here have professional parents and prioritize education, engaging in internships and networking opportunities. 3. Middle Class: A significant portion of the student body, balancing work and studies, often reliant on scholarships or loans to finance their education. 4. Lower-Middle Class: Students who may struggle financially but demonstrate resilience, often working part-time jobs while pursuing their degrees. 5. Working Class: Individuals who attend university part-time or through community colleges, focusing on practical skills and vocational training. 6. Underclass: Those facing economic challenges, potentially enrolled in programs designed to support their education and career advancement. These distinctions highlight the diverse backgrounds and experiences within the university, influencing social interactions and opportunities. 10. Browse the Internet and find Web pages and advertisements that you think appeal to different social classes. How do the concepts of hedonic and utilitarian value apply to these ads or Web pages? Answer: Again, there are no right or wrong answers. Students often enjoy doing this exercise. Of course, targeting the Upper and Lower Upper classes often requires the use of well established status symbols. It is common to see ads for luxury automobiles, expensive jewellery, and perfumes aimed at this segment. Hedonic value is often emphasized. At the other end of the spectrum, ads often use utilitarian appeals to emphasize the problem solving abilities of very basic products. While browsing, I found luxury brand ads targeting upper-class consumers, showcasing high-end products that emphasize hedonic value through exclusivity and indulgence. In contrast, budget-friendly retailers appeal to the middle and lower classes, focusing on utilitarian value by highlighting practicality and affordability. For example, an advertisement for a luxury car emphasizes status and lifestyle, while a grocery store ad promotes discounts and savings. These approaches reflect how different social classes prioritize emotional gratification versus functional benefits in their purchasing decisions. Overall, the distinction between hedonic and utilitarian value is evident in how brands tailor their messaging to resonate with their target audience. 11. *Ask fellow students what occupations they hope to one day secure. How would you describe the social class that applies to these occupations? Also, ask your classmates if one reason for going to university is to achieve a higher social class. Answer: Although there are no right or wrong answers here, it is likely that university students will aspire to occupy positions that are at least Upper Middle, if not Upper class. And, a good majority of students do tend to hope to enjoy upward social mobility by earning a university degree. Many students will aspire to be business leaders, doctors, lawyers, or politicians. These occupations are generally considered to be in these social classes. 12. Search the Internet, using a tool such as “Google images” to search for photos of university aged students in various microcultures worldwide. For example, look for Emo or Goth consumers in a country that you consider to be foreign. Would these consumers appear to fit into your home culture? Why or why not? How are they different from Emos or Goths in your home country? Answer: Student responses will vary on this activity, and it should be fun for students to do. One example that students might find interesting are the Gothic Lolitas found in Japan. They do look quite different from Goths in Canada. Emos and Punks also differ significantly across countries and cultures. While searching for images of Emo and Goth consumers from various countries, I found that their styles often reflect unique cultural influences. For example, Emo individuals in Japan incorporate bright colors and anime aesthetics, differing from the darker, more somber tones common in my home country. These variations highlight how local culture shapes subcultural expressions, making them distinct from one another. Although the core elements of the Emo and Goth identities remain similar, such as music and emotional expression, the cultural context adds layers that influence their appearance and behaviors. Ultimately, these differences demonstrate how microcultures adapt to and are shaped by their surroundings. GROUP ACTIVITY Divide students into groups that are comprised of different microcultures. Of course, this will vary depending on the enrollment of your university or college. An easy choice would be different ethnic microcultures, but religious, income, or generation might apply as well. Have them discuss the differences in value that they receive from various products. Examples would include things like mp3 players, laptop computers, various kinds of music, different fashions, activities they enjoy in their spare time, etc. They could even discuss how they view things like sex roles. Ask the students to attempt to come to a better appreciation of how their peers in different microcultures view the value of these things. You could even have them report their findings and opinions to the class. This is a great way to emphasize a key aspect of Chapter 9—the value we receive from things is largely influenced by the microcultures that we belong to. CHAPTER VIDEO CASE To view the video case Flight 001: Capitalizing on the Culture of Travel,i go to the CB companion website www.icancb.com to select this video. Brad John and John Sencion, co-founders of Flight 001 [pronounced “Flight One”], began developing their business plan on an airplane trip in 1998. The plan was hatched “... aboard Air France flight 023 somewhere between New York and Paris. ... [They] were two business travelers who had spent far too much time preparing for their trip [and they] envisioned a travel store as streamlined as flight itself.”ii Sencion says, “We used to travel a lot, to Europe or to Asia. ... I was always running around to buy things for the trip, going to Duane Reade for one thing, to a bookstore for a map. We thought: Why not just put it all under one roof?”iii “Luckily for travelers of every kind, their ... [experiences] resulted in a jet setter’s dream: an all inclusive, retro-modern retail experience that satisfies the frequent traveler’s every need. For over 10 years now Flight 001 has been scouring the globe for products as functional and unique as the travelers that frequent the stores.”iv And so the inaugural journey of Flight 001 began with the establishment of a boutique type store located in Greenwich Village in New York City. The store, shaped like the interior of an airplane fuselage, targeted customers who travel—particularly by air. Originally a distributor of other companies’ brands of travel products, Flight 001 now sells its own branded products as well as other brands. A fundamental desire of Flight 001 is to infuse fun, glamour, and fashion into air travel through the products it sells. For example, Flight 001’s website enthuses: “Our Stewardess Collection will take you back to a time when flying was glamorous. Everything is in glossy vinyl and in brilliant blue or red colourways. You can choose from a train case or a hanging toiletry bag and take yourself back in time wherever you go!”v Among other products, Flight 001 now sells travel essentials, such as bottles, adapters, locks, and security devices, various kits, and umbrellas;vi carry-on, hard shell, and soft shell luggage;vii packing aids including packing bags, toiletry bags, and jewellery holders;viii in-flight comfort items such as neck pillows, eye masks, and ear plugs;ix and gadgets like power cubes and adaptors.x A wide range of colours and decorative designs are available to appeal to customers’ unique preferences. Over time the company has expanded from its original Greenwich village store to other New York City locations as well as ones in Chicago, Illinois; San Francisco and Los Angeles, California; Lima, Peru; and Sydney, Australia, among others.xi Not only is Flight 001 particularly attuned to the specific needs of air travellers, it also encourages cultural awareness among its customers through a promotion known as 001 Country Per Year. According to the company’s website, “001 Country Per Year brings the world together by challenging its citizens to actively seek and experience new cultures. Everyone is born with the number 001, their country of origin. Go away and grow your number!”xii Ask your students: 1. Describe the microcultures that Flight 001 is targeting with the product lines that it sells. Answer: Flight 001 sells a variety of travel-related products, including but not limited to: travel essentials, such as bottles, adapters, locks, and security devices, various kits, and umbrellas; carry-on, hard shell, and soft shell luggage; packing aids including packing bags, toiletry bags, and jewellery holders; in-flight comfort items such as neck pillows, eye masks, and ear plugs; and gadgets like power cubes and adaptors. The company seeks to infuse fun, glamour, and fashion into air travel through the products it sells. Although Flight 001 serves “travelers of every kind,” it especially focuses on frequent travellers and those who travel by air. In general, travellers transcend membership in regional, sex role, age-based, generation, religious, and ethnic microcultures. In other words, these microcultures do not necessarily provide a substantive basis for determining the preferences of travellers—particularly with respect to Flight 001’s customer base. However, the income/social class microculture and the street microculture concepts have considerable relevance for air travellers—especially frequent fliers. These customers are likely to be higher-income individuals of upper middle class status or above. Because of the frequency with which they fly—the street microculture—they are also likely to want the convenience of one-stop shopping for travel-related items. This last observation also relates to the other discussion question. Flight 001 targets several microcultures within the travel community. Primarily, they appeal to frequent travelers, such as business professionals and jet setters who seek convenience and functionality in their travel essentials. The brand also attracts fashion-conscious consumers who value stylish and glamorous travel accessories that reflect their personal identity. Additionally, cultural enthusiasts are targeted through promotions like "001 Country Per Year," encouraging exploration and cultural awareness. Finally, the store’s unique aesthetic and retro designs resonate with nostalgic travelers who appreciate the glamorous history of air travel. Overall, Flight 001 effectively caters to diverse preferences and lifestyles within the travel microculture. 2. How does Flight 001 reach customers in these microcultures? Answer: The Flight 001 business model emphasizes one-stop shopping for all kinds of travel-related products and accessories. This eliminates the necessity of shopping at multiple retailers to acquire the needed merchandise. In describing the travel experiences of cofounders Brad John and John Sencion, the Flight 001 website states: “Luckily for travelers of every kind, their ... [experiences] resulted in a jet setter’s dream: an all inclusive, retromodern retail experience that satisfies the frequent traveler’s every need.” The one-stop shopping concept for travel items gives Flight 001 a distinct competitive advantage in the marketplace in appealing to its desired target markets. Flight 001 also seeks to strengthen relationships with its customers by encouraging more frequent international travel, which obviously has implications for air travel. The company seeks to stimulate international travel on the part of its customers through the promotion known as 001 Country Per Year. According to the company’s website, “001 Country Per Year brings the world together by challenging its citizens to actively seek and experience new cultures. Everyone is born with the number 001, their country of origin. Go away and grow your number!” In addition to stimulating cultural awareness, this promotional program can also help stimulate sales of Flight 001’s merchandise. In short, the more that Flight 001’s customers travel, the greater the potential demand for the company’s merchandise. And the more that people travel, the more likely they are to place a premium on the convenience of purchasing travel-related items in one place—hence, this further benefits Flight 001’s business model. [SOURCE: This video case was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business Administration, Valparaiso University.] i All material is adapted from the Marketing: Flight 001 video presented by Cengage Learning, unless otherwise noted. ii About Us, Flight 001 Web page. Available online at: http://www.flight001/about-us. Accessed August 23, 2010. iii Vanderbilt, T. (2005, September 30). “Flight 001: Ready for Takeoff,” BusinessWeek Online. Accessed August 23, 2010. iv About Us, Flight 001 Web page. Available online at: http://www.flight001/about-us. Accessed August 23, 2010. v About Us, Flight 001 Web page. Available online at: http://www.flight001/about-us. Accessed August 23, 2010. vi Essentials, Flight 001 Web page. Available online at: http://www.flight001/shop-for-your-trip/essentials.html. Accessed August 23, 2010. vii Luggage, Flight 001 Web page. Available online at: http://www.flight001/shop-for-your-trip/luggage.html. Accessed August 23, 2010. viii In-Flight Comfort, Flight 001 Web page. Available online at: http://www.flight001/shop-for-your-trip/in-flight-comfort.html. Accessed August 23, 2010. ix Packing Aids, Flight 001 Web page. Available online at: http://www.flight001/shop-for-your-trip/packing-aids.html. Accessed August 23, 2010. x Gadgets, Flight 001 Web page. Available online at: http://www.flight001/shop-for-your-trip/gadgets.html. Accessed August 23, 2010. xi Store Locations, Flight 001 Web page. Available online at: http://www.flight001/store-locations. Accessed August 23, 2010. xii About Us, Flight 001 Web page. Available online at: http://www.flight001/about-us. Accessed August 23, 2010. Chapter 10 Group And Interpersonal Influence END OF CHAPTER MATERIAL CASE ANSWERS: Oasis Juice 1. What type of power were consumers wielding when they lashed out at Oasis Juice? Answer: Consumers were using coercive power in their online campaign against Oasis Juice. By posting negative messages and threatening to boycott the Oasis Juice brand, consumers were punishing the company for behaviour they considered to be inappropriate and unacceptable. Consumers are in a unique position to shape corporate policy through their support—or its withdrawal—of a company’s products at the cash register. Major brands such as Nike, Kathy-Lee Gifford, and Nestle have suffered boycotts when consumers “punished” them for using sweat shops to produce their products or inappropriately marketing baby formula to third world countries which could not use the product safely. 2. What type of benefit were consumers receiving from their participation in the campaign against Oasis Juice? Hedonic? Utilitarian? Answer: For participants in the campaign against Oasis Juice, the benefits of participation were purely hedonic. Forcing a larger, more powerful company to back away from its perceived harassment of a smaller organization would provide a feeling of satisfaction in having followed one’s conscience and values. In this instance it was the thrill of the fight and the sweetness of victory that was the participant’s reward. 3. After seven years of court battles, why did Oasis Juice give in so quickly to the negative WOM that they were receiving on Facebook and Twitter? Answer: In branding perception is reality, and once the public has formed a negative impression of the company’s behaviour it matters little what the legal “reality” may be. Negative WOM on the scale of the social media backlash against Oasis Juice can pose a serious threat to the brand’s image, goodwill with consumers, and its very survival. Consumers are highly motivated to find out what their reference groups (in this case on Facebook and Twitter) think about a situation, while they may not be aware of a court decision at all. 4. How important was the involvement of media personality Guy A. Lepage? Answer: The involvement of Guy A. Lepage was likely a key factor in the success of the online campaign. As an opinion leader, M. Lepage wields considerable influence, perhaps confirming those who were uncertain about the merits of the cause in taking up the fight. With a significant online following, M. Lepage also has the ability to reach a significant number of people to help the campaign attain the critical mass necessary to force change. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] What are the differences between primary and secondary reference groups? What primary and secondary groups do you belong to? Answer: A primary group includes members who have frequent, direct contact with one another. Social ties tend to be very strong in a primary group, and the family is a great example of this type of group. A secondary group is similar to a primary group, but contact between members is not as frequent as in a primary group. The social ties are weaker than in a primary group, but they are still present. Students will usually list their families as representing a primary group. They may also mention their fraternities or sororities, especially those students who are living far from home. Possible answers for secondary groups will likely include various clubs to which students belong. Perhaps there is a church-based group or an international group to which they belong. The focus here is to prompt students to consider the differences between primary and secondary groups. The key issue is the degree of contact and influence that group members have on students. 2. *[LO1] What are the differences between formal and informal reference groups? What formal and informal groups do you belong to? Answer: Formal groups have some type of formal membership process. They also generally have specific rules and expectations for membership. Informal groups do not have official membership or application processes, and they usually do not have explicitly stated rules or expectations for membership. Students may have formally become members of fraternities or sororities. They may become official members of certain campus organizations and may also be registered members of political parties. They may also be official members of various sporting groups. There are many examples of informal groups to which students may belong. They may report that there is a group of friends who meet regularly to play sports or even hang out at a bar. The intent of this question is to focus on the formal membership process. Is the student a formal member of the group or not? What type of application/membership process is involved? The key is to prompt students to realize that both formal and informal groups can impact their behaviour as consumers. 3. [LO1] How do reference groups influence value? Answer: Reference groups can influence both hedonic and utilitarian value by affecting how consumers view various products. As the text mentions, a tattoo can mean one thing to one group and something totally different to another group. By wearing the “brand,” consumers can perceive a great deal of value simply because the tattoo “means” something to them. A military veteran can perceive value from his or her tattoos because of the meaning associated with them, even if other consumers don’t understand the significance. You would have to be a part of the group to really understand the meaning, importance, and value of the tattoo. Groups can influence the value associated with other products as well. In a negative way, gang membership can be reflected by certain colours or styles of clothing or even by the way clothing is worn. Even though consumers who aren’t in the gang may not realize the significance at all, the clothing means something and is of value to the member. A more positive example would be a university letter jacket. To the athlete, the letter jacket contains value that is probably far greater than the amount of money spent on the jacket. However, not everyone will understand the importance, meaning, or value of the jacket. Someone would need to understand what the jacket signifies to relevant groups to understand its value. There are many different ways to answer this question. The focus here is to prompt students to consider how groups influence the perceived value that comes from product ownership. Most of the time, you must be a member (whether formal or informal) to understand this value. 4. [LO2] What are the various power bases of reference groups? Answer: Several different power bases are found in reference groups. Referent power exists when a consumer desires to be referred to as part of the group. As such, they will emulate group behaviour and express references to the group in daily conversation. Legitimate power exists when a group or person holds actual power over another and can, in some cases, control the other’s behaviour. For example, a fraternity may legitimately hold power over its members due to specific rules, expectations, and bylaws. Expert power is held when a group holds knowledge that consumers or group members themselves desire to have. For example, a consumer may seek advice from the Better Business Bureau on whether to do business with a company. Reward power exists when a group can give members or consumers something of value based on their behaviour. For example, the Chamber of Commerce may award a member as “businessperson of the year.” Finally, coercive power exists when a group can impose sanctions on their members because of their actions. For example, the College of Physicians and Surgeons may sanction a doctor for inappropriate or unprofessional behaviour. 5. [LO2] How are coercive and legitimate power related to one another? Answer: Coercive power and legitimate power are related to one another because sanctions are often stated officially in some type of membership document. The sanctions emerge from the legitimate position of those who hold power within the group. 6. *[LO2] How do the various power bases emerge in an online social networking setting? Or, do they? Answer: It is most likely that students will refer to expert and referent power in this question. Reward power might be mentioned as well. Many groups centre around certain issues where some group members may be considered experts. Members may also feel good to be referred to as a member of a group, whether it’s just for fun or if it’s serious. Reward power emerges when group members vote for each other for some type of online award, or congratulate each other on accomplishments. 7. [LO3] Distinguish between the informational, utilitarian, and value-expressive influence of reference groups. Answer: Informational influence exists when consumers use the behaviours and attitudes of reference groups as information that affects consumer decision making. Utilitarian influence exists when a consumer conforms to group expectations in order to receive a reward or avoid punishment from a group. Value-expressive influence exists when a consumer internalizes a group’s values or chooses group membership based on their own values that may be reflected in the membership. 8. [LO3] How does the value-expressive influence emerge for you in one of the reference groups to which you belong? Answer: Student answers will vary. Students usually have some strong values that affect their choice of reference group membership. For example, the text uses the example of a person being strongly opposed to drunk driving and joining Mothers Against Drunk Driving. Similarly, a student may feel strongly about environmental issues and join a group such as the Greenpeace Student Network. The value-expressive influence emerges strongly for me within my friend group, particularly when it comes to lifestyle choices and hobbies. We often share recommendations for books, music, and activities that align with our values, such as sustainability and creativity. This shared interest fosters a sense of identity and belonging, as we encourage each other to embrace products and experiences that reflect our collective values. For example, our discussions about eco-friendly brands influence my purchasing decisions, as I seek to align my consumer behavior with the principles we uphold together. Ultimately, this reference group helps shape not only my preferences but also my self-concept. 9. [LO3] How does informational influence emerge in one of the social networking groups that you belong to? Answer: Because most groups revolve around specific interests, consumers gain much information from belonging to these groups. This is particularly the case for fan pages on Facebook. 10. *[LO4] How does WOM influence consumers? Why isn’t all WOM equally influential? What type of WOM has the greatest impact on consumers? Answer: WOM greatly influences consumers. Quite simply, consumers are influenced heavily by other consumers. All types of WOM are not equally influential for many reasons. For example, organic WOM is usually more effective than amplified WOM, and negative WOM tends to be more influential than positive WOM. Consumers often tell more people about bad events than good events. In general, consumers tend to believe other consumers more than they believe advertisements, which is a major reason why WOM is so influential. 11. [LO4] How does the Internet help consumers to spread word-of-mouth? Answer: Online social networks have become very popular. Most students spend a great deal of time networking with others on various websites and chat rooms. Today, information can be spread to literally millions of consumers simply by posting on these websites. The www.facebook.com and www.twitter.com websites are great examples of this phenomenon. 12. [LO4] What role do social networks play in word-of-mouth? Answer: As in the previous question, social networks such as www.facebook.com and www.twitter.com are very powerful in spreading WOM. There are too many social networks to even discuss in this question, but the intent is to prompt students to consider how information can be disseminated by these popular sites. Social networks play a crucial role in facilitating word-of-mouth communication by providing platforms for sharing opinions and experiences. They allow users to quickly disseminate information about products and services to a wide audience, amplifying both positive and negative feedback. Additionally, social networks enable peer interactions, making recommendations more credible as users trust the experiences of friends and family. This immediacy and reach can significantly influence consumer behavior, as users often rely on social proof when making purchasing decisions. Overall, social networks act as powerful tools for shaping perceptions and driving conversations around brands. 13. [LO5] How do households influence consumer behaviour? How does your household influence you? Answer: Households represent primary reference groups that have a major influence on individual behaviour. There are many different responses that might be presented for this question. Students may have been influenced by their parents in their decision to attend your school. They might also have been heavily influenced when purchasing their cars or leasing their apartments by their family or household. The focus here is to prompt students to consider the many ways in which their households influence their decision making and behaviour. It should be stressed that the household does not necessarily refer to the family; however, the family will probably be brought up frequently in student responses. 14.[LO5] How does sex orientation influence the ways in which household decisions are reached? Answer: Families that have traditional SROs will largely look for the male head of household to make major decisions. Families with more contemporary SROs will look equally to both the male and female partners. It should be noted that females have been given more emphasis in decision making in recent years. It is also likely that students will bring up the issue of homosexual relationships. SROs will be different for these students, and there may be differences of opinion as to which partner has the most decision-making influence. INTERACTIVE/APPLICATION EXERCISES 15. Ask a group of friends what reference groups they consider to be most influential in their lives. Compare these to groups that are influential to you. Are they the same? If not, in what ways are they different? Ask the same question to members of a different demographic group, like your parents. Are the groups that they mention also influential to you? Answer: As with most activity questions, answers will vary. It is likely that parents and friends will be mentioned frequently. University students may refer to fraternity or sorority members as well. After these groups are mentioned, there will probably be a great deal of variety (e.g., church group, recreational sports groups). Parental input will probably differ in some ways. The focus of this activity is to reveal to students that reference group influence does change. 16. Locate two advertisements that use references groups to target you as a consumer. What types of reference groups are they using? Are they effective? Why or why not? Answer: There will be many different answers here. Anti-smoking ads will probably include reference groups, as will many “anti-behaviour” ads. Alcoholic beverage ads frequently show groups of consumers together having a good time. MBA programs may include statements such as “Be a [X] graduate.” The focus of this question is to prompt students to consider how reference groups can be used in marketing communications. 17. Write down the various power bases that you think your parents or immediate family members hold over you. In what ways do you yield to the power they exert? Or, do you resist the power they try to exert over you? If so, explain. Answer: Although all of the power bases can apply to this question, the expert, reward, and coercive bases will most often apply. Parents and family members often have knowledge about specific products that can be used in consumer-related decisions (expert), parents can reward their children for various deeds (reward), and parents can punish their children in various ways (coercive). 18. *Ask a group of classmates if they belong to any Facebook groups. How many do they belong to? Which groups are they? Are any of them for a company or a brand? Do you belong to any? What benefits do you (or your classmates) get from participating in these groups? Answer: There are many examples of Facebook groups that students might belong to, and answers will vary greatly. I asked my classmates about their Facebook group memberships, and most reported belonging to 3 to 5 groups. Common themes included hobby-related groups, such as photography and fitness, as well as school-related communities. Some classmates mentioned being part of brand-specific groups, like those for fitness apparel or tech gadgets, where they receive updates and exclusive offers. Personally, I belong to a couple of study and interest groups that provide resources and support. The benefits of participating include networking opportunities, access to valuable information, and a sense of community among like-minded individuals. 19. Follow some Twitter tweets or Facebook posts. In what ways do you see consumers influencing each other? What trends do you see? Answer: There are many ways in which this question can be answered. Message boards on these sites can be very active, and consumers can be influenced greatly by the content of these boards. Twitter is especially good for tracking trends of what is important. Following Twitter and Facebook, I observed that consumers heavily influence each other through shared experiences and recommendations. Many users post reviews of products, which can quickly sway opinions and lead to increased brand awareness. Trends include the rise of "unboxing" videos, where consumers showcase new purchases, generating excitement and encouraging others to buy similar items. Additionally, hashtags related to social causes or lifestyle choices are popular, promoting movements like sustainability or health. Overall, social media acts as a powerful platform for peer influence, shaping consumer behavior and trends in real time. 20. *Discuss with students the issue of sex role orientation as it pertains to household decision making. What differences emerge in student feelings about sex role orientation? How does this affect their behaviour? Answer: There will be variance in this answer. Some students will prefer the traditional SRO, while others will prefer a “modern” SRO. Depending largely on their living arrangements, student SROs will impact their behaviour. This is another interesting question for classroom discussion. GROUP ACTIVITY As the professor, visit the following website ahead of time, sign up to become a Bzz Agent, and present your experiences to the class. You can bring in samples of your programs and share your profile with your students. This is an activity that students really enjoy. Bring up the Bzz Agent website in class (www.bzzagent.com), and navigate it during class. You may assign them a semester-long homework assignment from this activity to become a Bzz Agent. Students will receive free merchandise (books, lattés, jeans), and they will have an opportunity to “bzz” other students in class. Students generally enjoy feeling the excitement of introducing new products before the rest of the world sees them, and you can have students provide an analysis of the companies they were able to “bzz.” CHAPTER VIDEO CASE To view the video case Teen Power: A Force to be Reckoned With, go to the CB companion website www.icancb.com to select this video. Cell phones, surfing gear, X-treme sports, video games—these are just some of the lucrative markets where companies focus major marketing dollars on some very important consumers— teenagers. Understanding youth trends and dynamics in the constantly changing teen market remains an ongoing challenge for companies needing to know how best to spend those dollars. That’s where Teen Research Unlimited (TRU) comes in. Started by youthful entrepreneur Peter Zollo in 1982, TRU was the first company to specialize in teen-focused market research. It keeps companies in touch with teen thinking, making it possible for them to forecast trends and remain a step ahead of the competition. Based in Northbrook, Illinois, TRU has worked closely with many of the world’s leading youth brands and advertising agencies, playing a key role in groundbreaking advertising and marketing campaigns and the development of successful products and services. TRU has worked with over half a million teenagers nationwide to assemble data for use in advertising campaigns, product development, store designs, and other strategic business activities. Last year TRU conducted more than 1,000 focus groups and personal in-depth interviews in addition to several major quantitative studies. TRU also applies its expertise to teen advocacy on important social issues and high-risk youth behaviours such as anti-tobacco and drug use, sexual assault, life safety, education, crisis management, and skin cancer. So how does TRU gather its data and help its clients create effective marketing strategies? When a burgeoning fashion retailer needed ethnographic research to learn more about their target consumer, they asked TRU to help them. TRU spent months scouring malls, sitting down with shoppers, and carrying out a comprehensive national quantitative analysis to gain a well-rounded view of the client and its competitors. At project completion, TRU was able to provide its client with a strategically sound, actionable plan that built on previous strengths, addressed areas requiring improvement, and set a benchmark for future measurements. In another study a leading manufacturer of backpacks and luggage hired TRU to explore “personal carrying device” trends. To meet the client’s research objective, TRU devised a series of in-home interviews focused on which bags people own, when they use them, and what they use them for. These interviews, as well as “intercepts” on snowy Chicago train platforms and the sunny Santa Monica pier, were videotaped to reveal an “on-the-street” take on emerging trends. The only full-service marketing-research firm dedicated solely to understanding teens, TRU’s initial vision remains in place today: to develop an unparalleled expertise in the teenage market, and to offer clients virtually unlimited methods for researching teens. And with more businesses than ever focused on marketing to teenage consumers—Abercrombie & Fitch, PepsiCo, Nintendo, and Nokia are just some of TRU’s prestigious clients—companies count on TRU’s research to remain in touch with what teenagers want. Ask your students: 1. What makes TRU’s research so important? Answer: TRU keeps companies in touch with teen thinking, making it possible for them to forecast trends and remain a step ahead of the competition. 2. In what way is the company unique? Answer: The company plays a key role in ground breaking advertising and marketing campaigns as well as the development of successful products and services. 3. How does TRU help its customers understand their target market and create effective marketing strategies? Answer: TRU spends months scouring malls, sitting down with shoppers, and carrying out national quantitative analyses. Their initial vision remains in place today: to develop an unparalleled expertise in the teenage market and to offer clients virtually unlimited methods for research teens. Sources: Adapted from the video “Teenage Research Unlimited,” http://www.swlearning.com; Parija Bhatnagar, “More Cheese for the ‘Mall Rats,’” CNN/Money, February 4, 2005; Ruth Laferla, “Teenagers Shop for Art of the Deal,” New York Times, September 22, 2005; Mary Ellen Podmolik, “Teen Stores Leading the Herd,” Chicago Tribune, January 14, 2006, p. 1; TRU corporate Website http://www.teenresearch.com, April 26, 2006. PART 3 VIDEO CASE To view the Part 3 video case, go to the CB companion website www.icancb.com to select this video. Fantasy Inn Time: This video is between 5 and 7 minutes long. Concepts Illustrated in the Video • Consumer culture • Subculture • Cultural norms • Tradition • Etiquette/manners • Reference groups Synopsis Vanessa, a Junior Account Executive, is scouting out locations to hold an upcoming event. She meets with Ivan, the General Manager of the Fantasy Inn. Vanessa is coordinating an upcoming event with people from around the world. Cultural sensitivity is a prime concern for her event. She’ll be serving foods that are both vegan and halal along with other dietary needs. She’s asked Ivan about alcohol and if the bar can be closed off—not to offend anyone. Ivan tries to convince Vanessa that he’s been working on similar events for the past 12 years and the Inn has experience with these types of needs. He’ll require a $1,500 deposit to hold the room for her. Vanessa would like to meet with the chef first to ease her nerves. Teaching Objectives for the Video Case • Understand how culture provides the true meaning of objects and activities • Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions Critical Thinking Questions—Suggested Answers • If you were Vanessa, what would you do if faced with a similar situation? Where could you get information on different cultures? Answer: Answers will vary whether or not they would give the deposit before meeting with the chef and the sources of information. If I were Vanessa facing a similar situation, I would start by researching the cultural norms and values of the group I'm interacting with to better understand their perspectives. I would seek information from various sources, such as cultural anthropology websites, travel blogs, and documentaries that focus on the specific culture. Additionally, I would consider joining online forums or social media groups dedicated to cultural exchange, where I could ask questions and gain insights from individuals with firsthand experience. Engaging with local community organizations or attending cultural events could also provide valuable context and foster a deeper understanding. Overall, a combination of research and active engagement would be my approach to navigating the situation effectively. • Explain the concept of consumer culture. How does it impact a business dinner in the United States? Answer: Consumer culture can be thought of as commonly held societal beliefs that define what is socially gratifying. Culture ultimately determines what consumption behaviours are acceptable. This would be an important point when serving guests from around the world. If hosting a dinner with Muslims, the American business would want to avoid serving pork and alcohol. • What would the expected cultural norm be for the upcoming business dinner that Vanessa’s company is hosting? Answer: The Fantasy Inn would need to determine if males and females could serve the meal. Also, the location of the bar area needs to be taken into consideration and also the mixing of the foods. Vegan and halal should not be mixed together. Ultimately, Vanessa needs to give the Fantasy Inn the parameters for the dinner and what countries will be represented. Chapter 11 Consumers In Situations END OF CHAPTER MATERIAL CASE ANSWERS: Pinterest: A Collection of Consumers 1. What types of shopping activities might Pinterest affect? Answer: Like most shopping environments, Pinterest affects more than one type of shopping activity. By offering a variety of information sources as well as the ability to obtain feedback on the alternatives one is considering for a future purchase, Pinterest represents an opportunity to partake in epistemic shopping, which is used to gather information prior to making an actual purchase decision. As both a social network— connecting consumers with one another—and a showcase for products and services, Pinterest also facilitates experiential shopping. By its very nature as a “digital scrapbook” of people’s favourite things, Pinterest creates an environment that can elicit highly emotional responses. Consumers may visit in order to relax and have fun. They may even experience excitement if the purpose of their visit is to research an upcoming vacation or wedding. The heightened state of emotional arousal, as well as the ease of making purchases with the simple click of a mouse button, can also lead to impulsive shopping based on the Pinterest website. 2. How does Pinterest impact a consumer’s personal shopping value? Answer: Like window shopping, browsing Pinterest can deliver both utilitarian and hedonic shopping value. To the extent the consumer uses Pinterest to gather information and compare alternatives which will make a future purchase more efficient or successful, Pinterest delivers utilitarian value. The ease of “clicking over” to a vendor’s site to complete a purchase increases the utilitarian value of shopping on Pinterest. On the other hand, the atmosphere of the Pinterest site, with its collections of attractive images artfully arranged, delivers highly hedonic value for consumers who are simply looking for a pleasant way to pass the time. 3. How might Pinterest encourage or discourage impulsive shopping? Answer: While online shopping cannot deliver the instant gratification of immediately wearing one’s new shoes or playing with that new computer, sites such as Pinterest can nevertheless encourage impulsive shopping behaviour. If browsing Pinterest can be an easy escape from an unpleasant situation (a boring day at the office), it is only one step more (the click of a mouse) to making an impulse purchase that will deliver that feeling of liberation or reward that we have surely earned for putting up with the daily grind. Filling in a credit card number or clicking on the PayPal icon instead of counting out actual cash can make the negative consequences less obvious, too. 4. Will Pinterest help consumers with self-control or make it more difficult? How does this compare with other popular social networks like Facebook or Twitter? Answer: Like a beautifully produced fashion magazine, Pinterest includes many situational factors that will discourage consumer self-control. The visually pleasing presentation of beautiful objects catering to a variety of interests is coupled with a social dimension that heightens emotional involvement and encourages unplanned purchases. Like a well-merchandised store, each Pinterest page leads to related products that can be added onto one’s purchase with a simple button click. Once a purchase is made, the “domino shopping effect” may lead to other purchases as well. This is not the case with Facebook or Twitter, neither of which has the visual appeal or breadth of product selection to encourage unplanned or impulse purchases to the same extent. This is borne out by the statistic that Bottica.com shoppers arriving from Pinterest spend $185 on average, while those originating on Facebook spend $85. 5. How does Pinterest affect the shopping atmosphere at Bottica.com? Do you think other retailers would experience similar success with Pinterest? How about service and hospitality companies? Answer: Pinterest creates an atmosphere that is conducive to impulse purchases and “domino shopping effects.” This can dramatically impact the success of sites offering impulse items such as jewellery, fashion, or electronics which are often purchased for their entertainment value or prestige. Other vendors that could benefit from an association with Pinterest would include online travel agents and tour operators, concert promoters, and others delivering primarily hedonic value through their products or services. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] What exactly are situational effects on consumer behaviour? Provide at least three examples of ways in which situational effects influence your own consumer behaviour. Provide at least one example of how situations influence brand preference, one example of how situations stimulate purchases, and one example of how situations cause you to pay more than you might otherwise pay. Answer: Situational effects are contextual effects, meaning that they are independent of enduring consumer, brand, or product characteristics that influence consumer decision making and the value received from consumption. Potential examples include the following: • Brand preference—A consumer might prefer Levis but, while shopping with friends, is encouraged to try 7 For All Mankind jeans. If shopping alone, the consumer may not have experienced this influence. Therefore, the social context influenced brand preference. • Stimulate purchase—A sudden rain shower may cause consumers to purchase an umbrella. Such behaviour can be seen in downtown areas and amusement parks, for example. • Pay more money—Time and place can come together to influence how much money a consumer will pay. Consumers going to Florida for Reading Week are probably prepared to pay more for a simple hotel room than they might otherwise. This situation would be compounded if the consumers arrive in Ft. Lauderdale late one night and only a few hotels have vacancies. 2. [LO1] How does a situational influence change value for consumers? For example, how does the value of different types of restaurants change for a consumer who only has 25 minutes to have lunch? Answer: The time limit may shift the consumer away from any hedonic motivation. Rather than finding a place for lunch that he or she would truly enjoy and find relaxing, the consumer will simply choose something nearby that provides a quick meal. Therefore, utilitarian value becomes a priority. 3. [LO2] Define the term temporal factors. What are the different ways in which temporal factors can influence consumer behaviour? Which do you think are strongest? Answer: The term temporal factors is sometimes used to refer to situational characteristics related to time. Temporal factors include time pressure, time of day, time of year, and time of life. Determining which factor possesses the strongest type of temporal influence is a matter of opinion. This part of the question focuses on generating some elaborative thinking on the part of students that will ideally prompt them to think of situations when temporal factors have played a role in their own consumption. Time pressure may be argued as the strongest factor because certain needs must be addressed right away (toothache). Time of year determines the type of clothes people wear, foods people eat, and activities that consumers enjoy. Time of day determines similar issues (e.g., office clothes, workout clothes, evening clothes; going to work, eating, sleeping). 4. *[LO2] How does time pressure affect consumer behaviour? Name at least two businesses or industries whose survival depends on consumer segments that experience high amounts of time pressure. Answer: Time-related factors, such as time pressure, can affect consumer thoughts, feelings, and behaviour, all of which coalesce to create differing perceptions of value. These factors illustrate how certain goods or services take on added value due to time pressure: • Staples—This establishment provides copying, printing, and other related services on demand at locations with convenient business hours. • Fast food restaurants—These establishments provide food for the segment of consumers without enough time for a more elaborate meal. • Express delivery services—These establishments exist for consumers who need to get packages or documents somewhere in a hurry. If the consumer has procrastinated, express delivery may be the only viable option (have students check the FedEx website for prices based on how fast a letter or package is delivered). 5. [LO2] What is the concept of advertiming? Is advertiming a good thing for marketers and for consumers? Answer: Companies occasionally buy advertising with a schedule that runs the advertisement primarily at times when customers will be most receptive to the message. Advertiming also can be based on seasonal patterns or even on day-to-day changes in the weather. The second part of the question should generate discussion to prompt students to consider the benefits and detriments of advertiming. Some students may form the opinion that advertiming is just another marketing ploy to generate sales; therefore, only marketers would win. Other students may form the opinion that advertiming allows consumers to satisfy their desires and receive value from timely purchases; therefore, both marketers and consumers win. 6. [LO3] Define shopping. What are the two key dimensions of PSV? Answer: Shopping can be defined as the set of value-producing consumer activities that directly increase the likelihood that something will be purchased. The two key dimensions of personal shopping value are utilitarian shopping value and hedonic shopping value. 7. *[LO3] What are the different types of shopping activities in which consumers participate? What types of value would you associate with each? Can a retail website be designed to cater specifically to each type of orientation? Explain. Answer: Exhibit 11.2 describes how value types might vary across different types of shopping activities. The different types of shopping activities are: • Acquisitional shopping—These activities carry predominantly utilitarian value, although acquisitional shopping does not rule out hedonic value. • Epistemic shopping—These activities could provide either or both types of value depending largely on whether consumers have ongoing or situational involvement in the category. • Experiential shopping—These activities are oriented toward hedonic value based on the role of the experience itself. • Impulsive shopping—Heightened emotion is associated with hedonic shopping value, but it does not rule out utilitarian value based on what might be purchased. A website can be designed to cater specifically to each value type based on the relative degree of functional versus affective qualities. The chapter contains a list of items that can influence impulse purchases. By building in some of these factors (e.g., making payment easy), websites can cater to impulsive buyers while also facilitating acquisitional shoppers. However, factors that may heighten the shopping experience, such as games or animations, may distract from acquisitional shopping value. 8. [LO4] Define impulse, unplanned, and compulsive shopping. List three examples of impulse, unplanned, and compulsive consumer behaviour. Explain each using the characteristics of each type of behaviour. Answer: Impulsive shopping can be defined as spontaneous shopping activities characterized by a diminished regard for consequences, heightened emotional involvement, and a desire for immediate self-fulfillment. Examples could include leaving for the weekend even though there is a big test on Monday, getting dessert in a restaurant even though you are on a diet, and buying a new outfit for yourself during your lunch hour instead of buying your sister’s birthday gift because the outfit had just been placed on the sales floor and you had not seen it previously. Unplanned shopping shares some, but not all, characteristics of truly impulsive shopping. Exhibit 11.4 illustrates the relationship between impulsive and unplanned consumer activity. The right side of the exhibit demonstrates that unplanned consumer acts are characterized by situational memory, utilitarian orientation, and spontaneity. Examples could include almost any item that consumers buy when they actually need the product but simply forget to buy it until they reach the point of sale. Grocery store items that are not on the shopping list also qualify. Compulsive shopping consumer behaviour can be distinguished from impulsive consumer behaviour. The three distinguishing characteristics are: • Compulsive shopping is harmful. • Compulsive shopping seems uncontrollable. • Compulsive shopping is driven by chronic depression. Examples could include excessive casino gambling to the point where harm is being done to the individual and/or the individual’s family or chronic buying of shoes to the point where a consumer cannot pay for all of the shoes purchased. Drug and alcohol purchase and consumption can become compulsive once the activities interfere with other personal responsibilities. 9. [LO4] What are the key distinctions between impulse, unplanned, and compulsive consumer behaviours? Answer: This answer is touched upon in the answer to Question 8. Impulsive consumer behaviour can be distinguished from unplanned consumer behaviour by heightened emotional involvement and diminished regard for any consequences as opposed to behaviour largely driven by situational memory and utilitarian value. Compulsive consumer behaviours are best distinguished from impulsive consumer behaviours based on their relative harmfulness. Impulse buying is a spontaneous decision to purchase without prior planning, often triggered by emotions or promotions. Unplanned buying occurs when consumers decide to buy something they had not intended to purchase but do so while shopping, influenced by situational factors like product placement. Compulsive buying, on the other hand, is a more problematic behavior driven by an uncontrollable urge, often linked to emotional distress or psychological issues. While impulse and unplanned buying can be relatively harmless, compulsive buying can lead to negative financial and emotional consequences. Each behavior reflects different motivations and decision-making processes. 10. *[LO5] What is the sequence of events through which atmosphere might encourage a purchase? Use an example to illustrate your answer. Answer: Atmosphere is the effect of the retail environment, and perceptions of the environment stimulate thoughts. The thoughts evoke feelings that influence behaviour, and this consumer behaviour generates value. For example, a consumer on vacation at Disneyworld’s Magic Kingdom has thoughts shaped by the festive atmosphere. These thoughts shape the consumer’s feelings, and these feelings make the consumer more likely to purchase a souvenir item (e.g., T-shirt, décor item, hat). 11. [LO5] Define atmosphere. List local dining establishments with unique atmospheres. What qualities make them unique? Are the restaurants distinguished more by functional or affective qualities? Answer: In consumer behaviour, atmospherics refers to the emotional nature of an environment or, more precisely, to the feelings created by the total aura of physical attributes that comprise the physical environment. The second part of the question prompts students to elaborate on the difference between the functional and affective qualities of environments by describing familiar eating establishments. For example, Jack Astor’s provides a fun and upbeat atmosphere that adds to the value of the dining experience. Signs are handwritten and illustrated in chalk, servers wear Tshirts with fun slogans, and the paper-covered tables are supplied with crayons which may encourage patrons to draw or play games. Jack Astor’s provides quick service at lunch, but often has long wait-times to be seated at dinner. If students have difficulty producing examples, you might contrast something like a Boston Pizza with a Hooters restaurant. 12. [LO5] A consumer is doing some virtual shopping. How might colour influence the perceived value of a product viewed on a retail website? Could music also influence the perceived value of the website product? Answer: The colour blue, or a cooler colour in general, is associated with higher product quality than warmer colours such as orange or red. However, warmer colours may attract attention to a specific part of the website. Music could also influence consumers by affecting the rate at which they shop and are willing to remain viewing a given page. Faster music would make the consumer go faster. These effects would mirror those found in real shopping environments. 13. [LO5] List at least three ways in which social influences affect consumer behaviour. Answer: Social influences affect consumer behaviour in the following ways: • An environment can be so crowded that a shopper becomes distressed and leaves without finishing the shopping experience. The distress lowers any potential hedonic value. If the originally intended items are not purchased, utilitarian value is also lowered. • An environment can also contain so few consumers that it becomes boring and potentially uncomfortable for a consumer to enter. If a consumer were the only one in a hair salon at a large mall, he or she may feel that the quality may not be high and also feel too much like the object of attention. • The number and type of salespersons can also influence consumers. More salespeople are generally associated with more purchasing. Salespeople should also look and act appropriately for the type of sales setting. • Attractive others can cause upward social comparisons that diminish the value of products and lower the chance of purchase. This is particularly true when the attractiveness has little to do with the value being delivered. • Other shoppers can also influence consumers. Shopping buddies, for example, are usually associated with increased purchasing. 14. [LO6] What is meant by antecedent conditions? How do they shape the value of objects? Answer: Antecedent conditions refer to situational characteristics that a consumer brings to a particular information-processing, purchase, or consumption environment. They can shape value in a situation by framing the events that take place. They include economic resources, consumer orientation, mood, and fears. 15. [LO6] What steps can a retailer take to deal with fear as a potential antecedent condition of consumers? Answer: Exhibit 11.10 illustrates some of these steps. They include: • Increase the number and visibility of security personnel. • Increase the number and prominence of security cameras in parking lots. • Have brightly lit parking lots. • Add carry-out service for consumers, particularly those shopping alone. • Maintain an uncrowded, open entrance. • Clearly mark all exits. • Prevent loitering. • Discourage gangs from visiting the centre. INTERACTIVE/APPLICATION EXERCISES 16. Earlier in the text, individual difference characteristics such as personality were discussed. Do you believe that situational characteristics or individual differences have a greater effect on consumer behaviour? Write a 300-word report explaining your choice. Answer: While some academic research addresses this issue and points to the relative strength of situational effects, there is no real right or wrong response here. However, the question does force students to review these aspects of the CVF and develop a deeper understanding of situational characteristics and individual differences. 17. If you were creating a fashion store to cater to students at your local university, how would you position it in terms of functional and affective qualities? What environment characteristics would be used to implement this positioning? Would this environment tend to be oriented more toward creating hedonic or utilitarian value? Answer: The focus is to have students use information summarized in Exhibit 11.7 to develop a position. Affective qualities are mostly associated with hedonic shopping value. Functional qualities contribute more strongly to utilitarian shopping value. Thus, the positioning really depends on whether students believe that the consumers in their local market are more functionally oriented and thus just looking for a place to buy clothes when they need them or are instead the types of shoppers who will go to this store whether they have something specific to buy or not. In other words, the latter group is looking for an experience that would be characterized by an emphasis on affective qualities and hedonic shopping value. Think also about the attractiveness of the salespeople and how that might influence the experience. 18. *Take a look at three to five Internet retail sites for multichannel retailers (meaning those with both physical stores and virtual shores), such as www.chapters.com. Is the real shopping environment or the virtual shopping environment likely to have a greater impact on consumer behaviour? Explain your choice. Answer: There is no right or wrong answer to this question. This is an opportunity for students to elaborate on the characteristics of situational influences by arguing that the place characteristics are either stronger or weaker in either real shopping or virtual shopping environments. 19. What characteristics can be used to encourage unplanned and/or impulse purchases? Is it morally right or ethical to take steps to encourage unplanned or impulse purchases? Prepare a short essay defending your choice. Answer: Exhibit 11.5 provides the list of factors that can encourage impulsive consumer behaviour, including purchasing behaviour. While students may develop various opinions, one key point is that both unplanned and impulsive shopping and consumer behaviour are viewed as relatively harmless compared with compulsive consumer behaviour. Because of the relative lack of harm, it may be easier to argue that neither is morally wrong. To encourage unplanned and impulse purchases, retailers can use characteristics such as strategic product placement, attractive packaging, limited-time offers, and engaging displays. These tactics create a sense of urgency and highlight products that consumers may not have initially considered. However, the ethical implications of encouraging such behaviors are complex. While it can boost sales and enhance consumer experience, it risks exploiting vulnerable individuals, leading to regret and financial strain. Retailers should balance promotional strategies with ethical responsibility, ensuring transparency and fostering informed consumer choices rather than manipulating emotions for profit. 20. Have someone describe to you a recent online shopping experience. Describe how situational factors may have influenced the outcome. Answer: The question gives a student an opportunity to apply many concepts in the class. Time pressure, for example, probably plays a role. Impulsive motivations may be at play as well as other shopping orientations. I spoke with a friend about their recent online shopping experience, where they purchased a pair of shoes. Situational factors like limited-time discounts and free shipping influenced their decision, creating a sense of urgency to buy. Additionally, the ease of navigation on the website and positive reviews reassured them about the purchase. The shopping environment, including the appealing product images and detailed descriptions, also played a role in their satisfaction. Ultimately, these situational elements contributed to a positive shopping experience and the decision to complete the purchase. *GROUP ACTIVITY Have students pair up to work on this group activity. Have each group describe a buyer’s level of involvement with purchasing a designer item (e.g., shoes or clothes), or a consumer’s level of involvement with his/her car. In both cases, the group should determine the different marketing stimuli. For the fashion items, determine how you might design a strategy for consumers who like to purchase items at discounters such as Winners. For the car example, determine a strategy that fits the DIY (do-it-yourself) market for those who are very involved in working on their cars. CHAPTER VIDEO CASE To view the video case High Sierra Climbs to New Heights, go to the CB companion website www.icancb.com to select this video. Long gone are the days when only hikers carried backpacks into the mountains or stuffed duffels with climbing gear and lashed them to the back of a mule or llama. Today, these bags are the gear of choice for students and savvy travellers of all types. They are lightweight, durable, and can be stowed easily under an airplane seat, on a bus, or in the back of an SUV. High Sierra Sport Company is one of the premier manufacturers of adventure bags—regardless of how you define adventure—and in less than 30 years has become the 10th largest outdoor company in the United States. High Sierra manufactures an impressive array of day packs, backpacks, and duffels. But the firm also makes book bags specifically for students, business and computer cases, bike messenger bags, yoga bags, hydration packs (packs with water reservoirs), lumbar packs, and ski and snowboard packs. Many of these items also come in wheeled models for easy transport. In short, whatever activity you do, High Sierra probably has a pack or bag made specifically for it. The firm even has a “Build-a-Bag” service for customers who can’t find exactly what they want. High Sierra distributes its goods through more than 1,500 retailers—both online and brick-and-mortar stores—including such outlets as MC Sports, Modell’s, Bag ’n Baggage, eBags, TravelGizmos.com, Kittery Trading Post, and Fogdog Sports. You can’t buy your bag directly from the company, but you can visit the site to view every single bag they make, read about the features, and even get some tips on how to get the perfect fit. In addition to retailers, High Sierra also has corporate accounts, providing bags and packs to companies. And the firm has a strong presence at the Travel Goods Association (TGA) convention, where travel industry experts eagerly examine more than 2,000 new product lines every year. High Sierra is always innovating with its designs and construction techniques. Its executives—including top officer Hank Bernbaum—and employees are travellers who use the products they make, and they constantly look for ideas to create new products and improve existing ones. New colours, lighter and more durable fabrics, additional security features, multiuse bags, and trendy accessories are often on the list of improvements. “Consumers are driving this continuing surge of innovation,” explains TGA president Michele Marini Pittenger. “They want to travel more safely and securely, with greater comfort. And manufacturers and retailers have learned just how fast they can adapt to those changing needs. Rather than a year to get a new product to market, they’re realizing they can do it in months.” High Sierra added to its reputation for quality and cutting-edge design a few years ago, when it became the official supplier of bags to the U.S. Olympic Ski Team and U.S. Olympic Snowboarding Team. The firm manufactures customized backpacks, boot bags, ski and board bags, and duffels for these teams. In addition, High Sierra makes a limited number of these models available for sale to consumers—with the official team logos—including the Loop Pack, the Jackknife Pack, the Mia Messenger Bag, and the Kahuna 70 Hydration Pack. So, a few lucky skiers and snowboarders can own the same bags the U.S. Olympians carry. All of these models and more are available through the U.S. Ski Team and Snowboarding Team websites. High Sierra has also won various awards for design and for customer service. High Sierra continues to reach new heights in supplying goods to travellers, students, skiers and boarders, hikers, and everyone else who wants durable, fashionable packs and bags. “You provide the adventure, we provide the gear,” says the company slogan. Whether you’re standing on a mountain summit or a street corner, High Sierra’s got a bag for you. Sources: U.S. Ski Team website, www.ussa.org, accessed August 1, 2006; High Sierra website, www.highsierrasport.com, accessed August 1, 2006; “Great Gifts for Grads,” USA Shopping News, www.usa101.com, accessed July 6, 2006; “High Sierra Sport Company,” Google Finance, www.google.com/finance, accessed July 6, 2006; Gear Trends, www.geartrends.com, accessed July 6, 2006; “Cyber Sidebar/Leader of the Pack,” Hemispheres, www.zipit.gear.com, accessed July 6, 2006; “About High Sierra,” Luggage.com, www.luggage.com, accessed July 6, 2006; “High Sierra Sport Company Wins Microsoft Pinnacle Award,” Sikich Worldwide, April 14, 2006, www.lcsadvantage.com. Ask your students: 1. How would you classify High Sierra’s products? Explain your choice. Answer: High Sierra’s offerings are consumer products, and most students will probably respond that they are in the shopping goods category because consumers would compare High Sierra’s bag features with others before purchasing. Consumers might visit several stores or websites before purchasing a backpack, book bag, or similar product. 2. Visit High Sierra’s website at www.highsierrasport.com to view the firm’s products. Briefly describe High Sierra’s overall product mix. Then choose a product line and outline the features that make it unique as well as those that make it fit the mix. Answer: Students will have a variety of responses depending on which product lines they choose, but High Sierra’s product mix generally includes product lines that focus on the needs of travellers, adventure seekers, students, athletes, and others. The mix includes bags, packs, and related accessories, all with design features, hardware, and fabric that give High Sierra a unified look and feel. This exercise should help students make the distinction between a firm’s product mix and its product lines. High Sierra's overall product mix includes a variety of outdoor gear and accessories, such as backpacks, travel bags, hydration packs, and camping equipment. One standout product line is their backpacks, designed for outdoor enthusiasts. Unique features include ergonomic designs, multiple compartments for organization, and water-resistant materials, catering to active users. These backpacks fit seamlessly into High Sierra's mix by emphasizing durability and functionality, appealing to both casual hikers and serious adventurers. Overall, the product line reflects the brand's commitment to quality and performance in outdoor activities. 3. Describe the factors that contribute to High Sierra’s brand equity. Answer: High Sierra is well known for its design innovations and high-quality materials, and the company has won awards for design and customer service. But perhaps one of the biggest contributors to its brand equity is its association with the U.S. Olympic Ski Team and U.S. Olympic Snowboarding Team. Olympic athletes need the best equipment available to compete in their sports, so High Sierra gains brand equity by being their supplier. These goods display both the High Sierra name and the U.S. Ski or Snowboarding Team logo, and consumers must purchase them through the team websites, creating a strong association in consumers’ minds between High Sierra and Olympic performance. 4. High Sierra sells its products through retailers and through the U.S. Ski and Snowboarding Teams. Do you view this as an effective distribution strategy? Why or why not? Answer: Students are encouraged to use their own judgment in answering the question. High Sierra relies on its relationships with marketing intermediaries because it does not sell directly to consumers. So, the channel is longer than it would be if the firm sold directly to consumers. Consumers buy High Sierra’s goods from retailers both online and in brick-and-mortar stores. With online retailing, customers cannot pick up or try on the packs, although they can learn about fit from High Sierra’s website. With brick-and-mortar stores, customers must rely on the knowledge or helpfulness of the salespeople on hand. In the current situation, High Sierra can concentrate on what it does best—creating innovative designs for many types of consumers. However, if High Sierra suddenly began to sell its goods directly to consumers, its relationship with intermediaries might change significantly. Yes, this distribution strategy is effective because it leverages both retail visibility and the credibility of association with the U.S. Ski and Snowboarding Teams. This dual approach enhances brand exposure while targeting passionate outdoor enthusiasts who value performance and quality. Chapter 12 Decision Making I: Need Recognition and Search END OF CHAPTER MATERIAL CASE ANSWERS: Amazon Sets the Pace in Online Retailing in Canada 1. How do utilitarian and hedonic value influence the choices that consumers make when shopping with Amazon? Answer: Purchase decisions often involve both utilitarian and hedonic value. For example, when purchasing a new computer, the consumer may satisfy the utilitarian need for a computer that will better allow her to take notes in class, research and write term papers, and develop and send out resumes. In this case the computer is the means to an end—notes, assignments, or a job. On the other hand, a super-thin, sleek new laptop can deliver the purely hedonic value of owning the latest and best new gadget, as well as making Facebook and YouTube experiences more enjoyable. In this case it is the experience that matters. Buying the computer on Amazon can also deliver utilitarian value, making the purchase more convenient—a few keystrokes while sitting at one’s desk as opposed to driving down to the local Future Shop. Being greeted by name when she enters the site, reviewing personalized recommendations, and browsing a multitude of options can add hedonic value to the shopping experience. 2. How does Amazon try to influence consumers’ learned responses to the environment? Answer: A well-designed website can affect consumers’ behavioural decision making in much the same way as a well-designed store. Website designers understand that elements such as colour, the number of items on a page, loading speed, ease of navigation, personalization, relevance, and many other factors greatly influence the amount of time a consumer is willing to spend on a particular site. Amazon uses personalized recommendations and featured items much the same way a bricks-and-mortar store uses end-cap displays—to gain consumer attention and encourage impulse purchases. Once an item is selected for purchase, the Amazon site displays a selection of add-ons that others buying the selected item have also bought. Amazon’s site is well designed to keep the consumer browsing and, hopefully, making purchase decisions based largely on environmental factors. 3. What consumer risks does Amazon alleviate? Does it create risks that wouldn’t exist in a bricks-and-mortar shopping environment? Answer: As a trusted online retailer with an industry-leading customer satisfaction rating, Amazon may somewhat reduce the financial risk of purchase decisions involving expensive items such as high-end fashion or electronics. On the other hand, customers are unable to touch, try out, or try on the items they are about to purchase, increasing performance risk if the goods do not deliver the quality, fit, or performance expected by the consumer. Physical risk may also be more difficult to gauge in the absence of in-store expert assistance. Time risk may be reduced when shopping and buying online from one’s desk, but the time required to return an unsuitable or defective item in the absence of a bricks-and-mortar store may increase time risk associated with a purchase. 4. How does Amazon influence consumer search and the creation of a consideration set? Answer: Amazon endeavours to make external search easier for its customers, and to place its suppliers’ products in customers’ awareness and, hopefully, consideration sets. By making browsing easy, offering information about products, and including consumer reviews of the products it sells, Amazon strives to satisfy consumers’ external search needs. Customer reviews are a critical component of this process, providing an unbiased, third-party opinion that may carry more weight than anything the manufacturer or Amazon itself may say. The range of products offered in each category, along with recommendations and featured products, may place products or brands in the consumer’s awareness and consideration sets through mere exposure and the endorsement implied by their availability on a trusted retail site. ONLINE CASE ANSWERS Visit www.icancb.com.com to access the online case studies for CB. 1. How does the need recognition portion of the consumer decision-making process apply to this case? What need is being addressed? Answer: The issue in this case is “need.” Does the consumer truly “need” bottled water? Of course, consumers do need water to survive; however, many people would argue that public water systems do an adequate job of providing healthy water. As the case points out, other consumers would strongly disagree, and it is true that many older consumers do not perceive the need. The need arises largely because younger consumers are growing up in a time period that highlights healthy living. Everyone knows that life doesn’t exist without water. However, is bottled water really necessary? This is the real issue in the case. 2. What brands of bottled water are you familiar with? Do these brands easily come to mind when you think of bottled water? Explain this issue from the perspective of the consideration set. How would you describe your consideration set for bottled water? Answer: Student responses to these questions will vary. Numerous brands of bottled water are available on the market. Some are national brands (e.g., Aquafina), while others are local. The extent to which these brands easily come to mind measures the concept of the consideration set. Students should discuss issues related to the universal set, awareness set, and consideration set. There will likely be many brands found in student consideration sets. I'm familiar with brands like Evian, Dasani, and Fiji. These brands easily come to mind due to their strong marketing and availability, forming my consideration set, which consists of well-known and trusted options that I recall when making a purchasing decision about bottled water. 3. The next time you are in the classroom, take note of how many students are drinking bottled water compared with pop, energy drinks, or other beverages. Does this surprise you? Ask a friend why he or she chooses bottled water to drink. Can you relate? Do you agree with his or her reasoning? Answer: This is a great avenue for classroom discussion. It is quite common that university classrooms (that allow drinks) will be full of bottled water, and students should not be surprised by this fact. Students’ friends will have many opinions as to why bottled water should (or shouldn’t) be selected. In the classroom, I noticed that most students were drinking bottled water rather than pop or energy drinks, which surprised me given the popularity of those options. When I asked a friend why they choose bottled water, they mentioned health and hydration, which I relate to and agree with, as I also prioritize healthier beverage choices. 4. Go to a website that markets bottled water. Does it explain the health benefits of the product? If so, what does it claim? Why do you believe or disbelieve the information that you have found? Do you believe that the water is significantly better for you than tap water? Explain. Answer: Students can visit numerous websites that discuss bottled water. An obvious choice would be www.cocacola.com. Another site is www.bottledwaterweb.com. Most students will likely believe in the health benefit claims of bottled water marketers and that bottled water is much better than tap water. Student responses to these questions will vary. I visited a bottled water website that highlighted health benefits such as improved hydration and essential minerals. I find the information credible due to the emphasis on quality and safety standards, but I believe that, while bottled water can be convenient, it is often not significantly better for you than tap water, which is generally safe and more environmentally friendly. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] What are the activities that comprise the consumer decision-making process? Answer: Decision-making processes generally include five activities: • Need recognition • Search for information • Evaluation of alternatives • Choice • Post-choice evaluation 2. *[LO1] Describe how social networking sites relate to each of the steps in consumer decision making. Answer: Student responses will vary. However, some general themes should be included. Consumers realize the need for products and services by observing others. As such, they may learn about new products from social network sites. The sites obviously work very well with assisting consumers with information search. Fan pages on Facebook are a good example here. They also help give consumers input into which alternatives to choose. Group members may specifically give advice on which brands should, and shouldn’t, be purchased. Group input can also directly influence the final choice. Consumers can also report back to the group their perceptions of the purchase after the fact. This information can be shared with others who may not yet have made a purchase. Social networking sites influence consumer decision-making by enhancing information search through user reviews and recommendations, shaping evaluation of alternatives with peer opinions, and facilitating post-purchase evaluation via feedback sharing. They also create awareness and interest by showcasing products through targeted ads and influencer promotions. 3. [LO1] Why are these behaviours referred to as activities rather than steps? Answer: The reason is that consumers do not always proceed through the activities in sequential fashion and don’t always complete the entire process. These behaviors are referred to as activities rather than steps because they are ongoing processes that consumers engage in throughout their decision-making journey, rather than a linear sequence. This perspective acknowledges the dynamic nature of consumer behavior, where individuals may revisit activities as new information or experiences arise. 4. [LO2] What are the three major decision-making perspectives? Answer: The three major decision-making perspectives are the rational decision-making perspective, the experiential decision-making perspective, and the behavioural influence decision making perspective. 5. [LO2] What are the differences among these perspectives? Answer: The three perspectives differ in important ways and are similar to the attitude hierarchies discussed in Chapter 7. According to the rational decision-making perspective, consumers carefully consider their decisions and are rational in what they choose to do. According to the experiential decision-making perceptive, the decisions that are made are influenced most heavily by feelings associated with the consumption activity. From the behavioural influence decision-making perspective, decisions are really responses to environmental influences and pressures. 6. [LO3] How do extended, limited, and habitual decision making differ from each other? Answer: When consumers engage in extended decision making, they search carefully for information that will help them reach a satisfactory decision. The process is generally rather lengthy. This process occurs most frequently when involvement is high and a significant amount of purchase risk is involved with the decision. When consumers engage in limited decision making, they usually search for very little information and often reach decisions based on prior beliefs about products and their attributes. Consumers usually make very few, if any, comparisons across brands. This type of decision making usually occurs when there are relatively low amounts of purchase risk and product involvement. With habitual decision making, consumers often do not seek information at all, and the ultimate choice or decision is often based on habit. 7. *[LO3] What types of products are generally purchased after an extended decision-making process has occurred? What types of products are purchased after a habitual decision-making process? Answer: There are many products that students may use as product examples. The focus is for students to realize that extended decision making is used when the product being considered includes some type of risk. Products purchased with habitual decision making are those that the consumer doesn’t generally think much about at all. Products that are usually purchased after extended decision making include big purchases such as vacation packages, appliances, or computer systems. Products that are usually purchased after habitual decision making include products such as soft drinks, chewing gum, or breath mints. 8. [LO4] How does the consideration set influence decision making? Answer: When consumers enter into a problem situation, they first consider those alternatives that are found in their internal memories. The consideration set plays an important role here because it includes all of those brands that are actually considered as possible solutions to problems. It is very important for marketers to ensure that their products are in the consideration set of their targeted consumers. 9. *[LO4] What are the differences between the awareness set, consideration set, inert set, and inept set? Answer: The awareness set includes the set of brands or alternatives of which a consumer is aware. The other sets included in this question are found within the awareness set. The consideration set includes the brands or alternatives that are considered acceptable for further consideration in decision making. The inept set contains those alternatives that consumers find unacceptable as solutions. The inert set includes those alternatives to which consumers are indifferent or toward which strong feelings are not held. 10. [LO5] What factors influence the amount of search a consumer performs? Answer: Several factors influence the amount of search that a consumer performs including their experience with the product, their involvement, the perceived risk, the overall value of the search effort itself, their time availability, and their attitude toward shopping, personal factors, and situational influencers. 11. [LO5] What types of sources are generally viewed as being most valued by consumers? Answer: Consumers usually value sources that are objective, trustworthy, and provide timely information. In addition, sources that provide information easily are generally valued more highly. 12. [LO5] How do consumers use social networking sites when searching? Answer: Consumers frequently use social networking sites when searching for product-related information. Sites like Facebook are very useful for this purpose. By joining fan pages, or groups, consumers are able to get the latest information available about all types of products and services. INTERACTIVE/APPLICATION EXERCISES 13. Describe a recent consumption experience that you have had by using the concepts found in the basic consumption process framework. How did the decision-making model discussed in this chapter apply? Answer: Student responses to this question will vary greatly. The focus of the question is to prompt students to apply the decision-making concepts presented in the general framework to situations they have faced in their everyday lives. As students move through the consumption process, various decision-making activities take place. Students should discuss the problems that they’ve faced, how they searched for information, how they evaluated alternatives, and the final decision they made. Furthermore, students should briefly discuss the way they felt after the decision (and consumption) had taken place. Recently, I purchased a new laptop, which involved recognizing a need for better performance (problem recognition) and researching options (information search) based on user reviews. The decision-making model applied as I evaluated alternatives and ultimately chose a brand that balanced quality and price, leading to a satisfying purchase experience. 14. *Visit a Facebook fan page, like Honda, for example. What types of information about the product can you find on the site? What types of topics are discussed on the site? Answer: Student responses will vary. Information obtained on these sites tends to be very useful for input into consumer decisions. Group members are usually able to help each other out with various comments and pieces of advice. On the Honda Facebook fan page, I found information about new car models, promotional offers, and customer testimonials. Discussions often revolve around vehicle performance, maintenance tips, and community events, fostering engagement among fans and potential buyers. 15. *Compare a number of automobile-buying websites. What types of information are shown? What site features do you find to be most valuable? Answer: It is likely that students will be aware of several websites. The information contained on the websites is generally of the same type (makes, models, engines, warranties, serviceability); however, general website designs will likely vary greatly between the sites. Features that are valued across the websites will also vary by student. Chances are that students will value the overall information content of the websites and the ease with which they can find information. Automobile-buying websites like Autotrader, Cars.com, and CarGurus typically display information such as vehicle specifications, pricing, reviews, and dealer contact details. Many sites also offer comparison tools, financing options, and vehicle history reports. Features like user reviews and detailed filters for make, model, and price range are particularly valuable, helping buyers make informed decisions. Additionally, price analysis tools that show market trends can provide insight into whether a deal is fair. Overall, comprehensive information and user-friendly navigation enhance the buying experience. 16. Find a copy of the Maclean’s Guide to Canadian Universities. What type of information is given about the schools? Which information do you think is most valuable to a student who is trying to select a university? Answer: The type of information provided in the Guide should lead to some classroom discussion. As for the most valuable type of information, these results will likely be interesting. Most students will have recently made a decision as to which university to choose, and there will likely be variance in the responses given for this part of the question. The Maclean’s Guide to Canadian Universities provides information on academic programs, admission requirements, campus facilities, student demographics, and tuition fees. For a student selecting a university, the most valuable information would likely be the program offerings and academic reputation, as these directly impact their educational and career goals. Additionally, details about campus life and support services can also be crucial for making an informed decision. 17. Think of a recent purchase that you believe included a significant amount of risk for you. What type(s) of risk were involved? How did you attempt to minimize risk? (If you did not attempt to minimize your risk, explain your thinking.) Answer: Many different examples may surface with this question. Students may discuss how they chose the university, how they recently purchased a car or computer, how they selected a smartphone and carrier, or how they chose a place to live. Many types of risks will be involved, from monetary risks to social risks. Students may have sought to minimize these risks as much as possible by searching for external information, asking friends or family members what they should do, or taking considerable time in making the decision. Student responses are likely to vary. A recent purchase of a used car involved financial risk and performance risk. To minimize risk, I conducted extensive research, read reviews, and had a trusted mechanic inspect the vehicle before buying, ensuring I made a more informed decision. 18. Think of a few brands of products to which you consider yourself loyal. Why are you loyal to these brands? Answer: This is always an interesting question for class discussion. Students may discuss brands of cereal, beer, and cigarettes or types of cars. There will be many reasons for the loyalty that they express. It is common that family influences play a big role in student loyalty toward products. For example, it’s not uncommon to hear students say that their entire family is made up of “Chevy people.” I am loyal to brands like Apple, Nike, and Coca-Cola because they consistently deliver quality products, innovative features, and positive experiences. Their strong brand identity and effective customer engagement also foster a sense of trust and emotional connection. GROUP ACTIVITY Have groups of two to three students work together on this activity, or it can be completed on an individual basis. Instruct students to collect 10 magazine ads that represent products that they use on a regular basis (the instructor may choose to bring in a handful of magazines). Then have students divide into teams (number of students is not a critical factor) to complete a top-10 product list. Once the list is complete, each student should select two items on the list and locate an advertisement or promotion for each of the selected products. The two advertisements or promotions then serve as the medium for a discussion. For the discussion, analysis of each advertisement is broken down into three sections. 1. Students must identify four to six consumer behaviour concepts used in the advertisements. Answer: The ads utilized concepts such as brand loyalty, emotional appeal, social proof, and lifestyle positioning. 2. Ask students to identify and explain the demographic and psychographic segments to which the ad was designed to appeal. Answer: The Nike ad targeted young, active individuals (demographic) who value fitness and self-expression (psychographic), while the Dove ad appealed to consumers seeking authenticity and self-esteem. 3. Students should explain whether they fit into the identified target market. Answer: I fit into the target market for both ads; I prioritize quality athletic wear and resonate with Dove's message of real beauty and confidence. CHAPTER VIDEO CASE To view the video case Consumer Behavior at Scholfield Honda, go to the CB companion website www.icancb.com to select this video. If you want to study consumer behaviour, probably the best place to start would be a car dealership. Cars are a big investment. Most people spend upwards of $20,000 on a new car and $6,000 or more on a pre-owned vehicle. In Canada, where we drive pretty much everywhere, your car is your first contact with the world. One look at someone’s car and you might get an idea of their politics, bank account, occupation, education, musical tastes, and favourite weekend activities. It’s the ultimate fashion accessory. Does it have a lot of cup holders and a DVD player in the headrest? Family car. Cute little convertible? Twenty-five-year old with her first real job. That Italian sports car? Retail therapy for the mid-life crisis. That person in the 2009 Honda Fit hybrid who just stole your parking space? Likely some smug, twentysomething activist. But looks can be deceiving. When the Honda Insight, Honda’s first consumer hybrid car, hit the market in 2000, Roger Scholfield, owner of Scholfield Honda in Wichita, Kansas, thought he had it all figured out. For one thing, Wichita isn’t exactly known as the epicentre of ecoconsumerism. He’d probably sell a handful of the hybrid cars to a couple of single twentysomethings. The car had only two seats and seemed pretty flimsy with its lightweight aluminum body. And with a sticker price of $20,000, it was pretty pricey. The first Insight he sold went to a 63-year-old. The second person to buy one was 65. As it turns out, Roger’s experience was consistent with Honda’s market research. They determined that the typical Insight customer was older, highly educated, probably with an engineering or science background—a person who tended to be very research-driven. Vinnie Koc, a sales consultant at Scholfield Honda, relies more on his experience than the data to sell cars. “The vehicle pretty much sells itself,” says Vinnie. “Most of my customers are previous owners or someone in their family owns a Honda that wants them to buy a Honda.” Vinnie’s customers don’t just show up and hop in the first car they see. Most of them have spent time on the Scholfield and Honda websites, researching and comparing models before they come in. They know what they want, are unlikely to be upsold on additional bells and whistles, and are clear on how much they are willing to pay. “Our job is to present the vehicle,” says Vinnie. It usually takes a few test drives to complete the sale, but he is patient. It is all part of Scholfield Honda’s low-pressure environment. “I love my Scholfield Honda” is the tagline on many of the dealership’s television and radio ads. “The Scholfield reputation is 100 percent why the customers are here,” says Koc. In a market where the anonymous experience of shopping online is the norm for so many consumers, providing opportunities for customers to feel special and paid attention to can really make a difference, especially in car sales, an industry where trust so often is lacking. Owner and general manager Roger Scholfield takes the time to meet with customers, and consultants like Vinnie take the time to follow up on every meeting—from test drive to final sale. “If they see that you are able to provide the information they need, they feel comfortable with you and that makes them happy.” It is not unusual for Vinnie’s customers to drop by on their lunch hour just to say “thanks” and gush about how much they are enjoying their new Honda. Ask your students: 1. Name the top influence(s) impacting a consumer’s decision to buy a car from Scholfield Honda. Answer: According to the video, the following factors influence customer purchases at Scholfield Honda: positive recommendations from friends and family members, prior ownership of Honda vehicles, desire to drive more environmentally friendly cars, Honda’s reputation for quality and fuel efficiency, the dealership’s friendly sales associates and clean showroom environment. 2. Go to www.honda.com and view the different Hondas to select the car you would be most likely to purchase. Answer: Students’ answers will vary. However, students should be able to assess their own needs and motives for selecting a vehicle. Additionally, they should be able to associate their buyer motives with various interpersonal determinants of consumer behaviour (cultural, social, and family influences) and personal determinants of consumer behaviour (needs and motives, perception, attitudes, learning, and self-concept) as discussed in the text. After exploring the Honda website, I would be most likely to purchase the Honda Civic due to its reputation for reliability, fuel efficiency, and modern features. Its combination of practicality and style makes it an appealing choice for my needs. 3. Lee Lindquist says that customers evaluate certain trade-offs when they consider whether or not to buy a hybrid vehicle. What are those trade-offs, and what decision would you make in that situation? Explain. Answer: Lee Lindquist says that consumers who shop for hybrid vehicles must weigh the high cost of hybrids against their unique features, such as superior gas mileage and intangible “green” benefits. Student answers will vary on what choice they would make in that situation and why. When considering the purchase of a hybrid vehicle, customers evaluate trade-offs such as initial cost versus long-term fuel savings, environmental impact versus performance, and technology features versus maintenance needs. For example, while hybrids often have a higher upfront cost, their fuel efficiency can lead to significant savings over time, alongside reduced emissions. Personally, I would prioritize long-term savings and environmental benefits, opting for a hybrid. This decision aligns with my values of sustainability and cost-effectiveness, despite the initial investment. 4. Is buying a car a high-involvement purchase decision or a low-involvement purchase decision? Does car shopping typically require limited problem solving or extended problem solving? Explain. Answer: Purchase decisions that have a high level of social or economic consequences are said to be high-involvement purchase decisions—buying a car qualifies as a high-involvement purchase decision. Car shopping also requires extended problem solving. Solution Manual for CB Consumer Behaviour Canadian Barry J. Babin, Eric Harris, Kyle B. Murray 9780176555283