CH-6 Consumer Decision Making – MKTG: Principles of Marketing : Book Guide

CHAPTER 6 Consumer Decision Making This chapter begins with the learning outcome summaries, followed by a set of lesson plans for you to use to deliver the content in Chapter 6. • Lecture (for large sections) on page 3 • Company Clips (video) on page 5 • Group Work (for smaller sections) on page 6 Review and Assignments begin on page 7 • Review questions • Application questions • Application exercise • Ethics exercise • Video assignment • Case assignment Great Ideas for Teaching Marketing from faculty around the country begin on page 16 LEARNING OUTCOMES 6-1 Explain why marketing managers should understand consumer behavior An understanding of consumer behavior reduces marketing managers’ uncertainty when they are defining a target market and designing a marketing mix. 6-2 Analyze the components of the consumer decision-making process The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled want. If additional information is required to make a purchase decision, the consumer may engage in an internal or external information search. The consumer then evaluates the additional information and establishes purchase guidelines. Finally, a purchase decision is made. 6-3 Explain the consumer’s post purchase evaluation process Consumer post purchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer’s general level of self-confidence. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product. 6-4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement Consumer decision making falls into three broad categories: routine response behavior, limited decision making, and extensive decision making. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. By contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), and social visibility. A purchase decision can be highly involved due to a wide range of factors, including product involvement, situational involvement, shopping involvement, enduring involvement, and emotional involvement. 6-5 Identify and understand the cultural factors that affect consumer buying decisions Cultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture are the values, language, myths, customs, rituals, laws, and the artifacts, or products, that are transmitted from one generation to the next. The most defining element of a culture is its values. A culture can be divided into subcultures on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs. 6-6 Identify and understand the social factors that affect consumer buying decisions Social factors include such external influences as reference groups, opinion leaders, and family. Consumers seek out others’ opinions for guidance on new products or services and products with image-related attributes or because attribute information is lacking or uninformative. Consumers may use products or brands to identify with or become a member of a reference group, or to follow an opinion leader. Family members also influence purchase decisions; children tend to shop in similar patterns as their parents. 6-7 Identify and understand the individual factors that affect consumer buying decisions Individual factors that affect consumer buying decisions include gender; age and family life cycle stage; and personality, self-concept, and lifestyle. Beyond obvious physiological differences, men and women differ in their social and economic roles, and that affects consumer buying decisions. A consumer’s age generally indicates what products he or she may be interested in purchasing. Marketers often define their target markets in terms of consumers’ life cycle stage, following changes in consumers’ attitudes and behavioral tendencies as they mature. Finally, certain products and brands reflect consumers’ personality, self-concept, and lifestyle. 6-8 Identify and understand the psychological factors that affect consumer buying decisions Psychological factors include perception, motivation, and learning. These factors allow consumers to interact with the world around them, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. Perception allows consumers to recognize their consumption problems. Motivation is what drives consumers to take action to satisfy specific consumption needs. Almost all consumer behavior results from learning, which is the process that creates changes in behavior through experience. TERMS aspirational reference group Maslow’s hierarchy of needs selective exposure cognitive dissonance motive selective retention connected self-schema need recognition self-concept consumer behavior non-aspirational reference group separated self-schema consumer decision-making process nonmarketing-controlled information showrooming culture norm social class evoked set (consideration set) opinion leader socialization process extensive decision making perceived value source external information search perception source hedonic value personality stimulus ideal self-image primary membership group stimulus discrimination internal information search real self-image stimulus generalization involvement reference group subculture learning routine response behavior utilitarian value limited decision making secondary membership group value marketing-controlled information selective distortion want LESSON PLAN FOR LECTURE Brief Outline and Suggested PowerPoint Slides: Learning Outcomes and Topics PowerPoint Slides LO1 Explain why marketing managers should understand consumer behavior 6-1 The Importance of Understanding Consumer Behavior 1: Consumer Decision Making 2: Learning Outcomes 3: Learning Outcomes 4: The Importance of Understanding Consumer Behavior 5: Understanding Consumer Behavior 6: Value LO2 Analyze the components of the consumer decision-making process 6-2 The Consumer Decision-Making Process 7: The Consumer Decision-Making Process 8: Consumer Decision-Making Process 9: Exhibit 6.1: The Consumer Decision-Making Process 10: Need Recognition 11: Stimulus 12: Need Recognition 13: Understanding Needs and Wants 14: Information Search 15: External Information Searches 16: Evoked Set 17: Evaluation of Alternatives and Purchase 18: Purchase LO3 Explain the consumer’s post purchase evaluation process 6-3 Post purchase Behavior 19: Post purchase Behavior 20: Cognitive Dissonance 21: Post purchase Behavior LO4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement 6-4 Types of Consumer Buying Decisions and Consumer Involvement 22: Types of Consumer Buying Decisions and Consumer Involvement 23: Consumer Buying Decisions and Consumer Involvement 24: Involvement 25: Exhibit 6.2: Continuum of Consumer Buying Decisions 26: Routine Response Behavior 27: Limited Decision Making 28: Extensive Decision Making 29: Factors Determining Level of Consumer Involvement 30: Not All Involvement Is the Same 31: Marketing Implications of Involvement LO5 Identify and understand the cultural factors that affect consumer buying decisions 6-5 Cultural Influences on Consumer Buying Decisions 32: Cultural Influences on Consumer Buying Decisions 33: Factors Influencing Buying Decisions 34: Components of Culture 35: Culture is . . . 36: Subculture 37: Social Class 38: Exhibit 6.4: U.S. Social Classes 39: Social Class Measurements 40: The Impact of Social Class on Marketing LO6 Identify and understand the social factors that affect consumer buying decisions 6-6 Social Influences on Consumer Buying Decisions 41: Social Influences on Consumer Buying Decisions 42: Social Influences 43: Exhibit 6.5: Types of Reference Groups 44: Influences of Reference Groups 45: Opinion Leaders 46: Family LO7 Identify and understand the individual factors that affect consumer buying decisions 6-7 Individual Influences on Consumer Buying Decisions 47: Individual Influences on Consumer Buying Decisions 48: Individual Influences 49: Gender 50: Age and Family Life Cycle Stage 51: Personality, Self-Concept, and Lifestyle LO8 Identify and understand the psychological factors that affect consumer buying decisions 6-8 Psychological Influences on Consumer Buying Decisions 52: Psychological Influences on Consumer Buying Decisions 53: Psychological Influences 54: Perception 55: Marketing Implications of Perception 56: Motivation 57: Exhibit 6.6: Maslow’s Hierarchy of Needs 58: Learning 59: Chapter 6 Video Suggested Homework: • The end of this chapter contains assignments for the Ski Butternut video and for the Netflix case. • This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and other resources that can be assigned or used as the basis for longer investigations into marketing. LESSON PLAN FOR VIDEO Company Clips Segment Summary: Ski Butternut Ski Butternut is a ski and snowboard mountain in the Berkshires. Because the mountain is a “soft” mountain, Ski Butternut collects large amounts of data based on rentals and Web traffic to make sure that they understand who the customer is and to whom they need to market. Matt Sawyer also discusses how they change the mountain itself to meet the needs of the customer. PRE-CLASS PREP FOR YOU: PRE-CLASS PREP FOR YOUR STUDENTS: • Preview the Company Clips video segment for Chapter 6. This exercise reviews concepts for LO1, LO2, LO5, and LO6. • Review your lesson plan. • Make sure you have all of the equipment needed to show the video to the class, including the DVD and a way to project the video. • You can also stream the video HERE • Have students familiarize themselves with the following terms and concepts: consumer behavior, need recognition, want, culture, social class, and opinion leader. • Review the Ski Butternut Web site with those terms in mind: http://www.skibutternut.com/. VIDEO REVIEW EXERCISE ACTIVITY Warm Up Begin by asking students, “What is the relationship between a marketing strategy and consumer behavior?” [you cannot build the first without understanding the second] In-class Preview • Ask students to draw a line down the center of a sheet of paper. The title of the first column should be “What I Want” and the second column “What I Need.” • Give students a few minutes to fill their columns. • Then ask students to circle items from the “Want” column that were definitely influenced by someone’s marketing strategy. Draw arrows from any entry in the “Need” column into the “Want” Column for that same reason. • Finally, have students mark each entry in each column with a “C” if they want or need was culturally influenced, or an “S” if it was socially influenced. (If necessary, refer students to review Learning Outcomes 5 and 6 for a summary of cultural and social factors.) • Segue into a discussion of the consumer decision-making process. • Write the five steps of the process on the board. Consider using the graphic Exhibit 6.1, Consumer Decision-Making Process as your diagram. Viewing (Solutions below.) 1. Why is the perception of Butternut as a fun place so important? 2. In general, which type of consumer behavior is described in this video, for new skiers? What involvement factors are likely to be associated with choosing which ski resort to visit? Follow-up • Have students break into groups of up to four students to describe the cultural, social, and psychological influences that are likely at work on Ski Butternut patrons. What are the implications for Butternut’s marketing managers, given these influences? Give students about five minutes and then come back together as a class to share results. Solutions for Viewing Activities: 1. Why is the perception of Butternut as a fun place so important? Answer: Being perceived as fun is important for Ski Butternut to ensure that it builds a loyal set of young customers. Without the social influence of opinion leaders who enjoy Butternut’s terrain park, Butternut would lose many of its customers as soon as they were old enough to ski or board at another mountain with a more “fun” perception. 2. In general, which type of consumer behavior is described in this video, for new skiers? What involvement factors are likely to be associated with choosing which ski resort to visit? Answer: Consumers making infrequent, expensive, or unfamiliar purchases, such as new skiers, engage in extensive decision making. If a customer has had previous positive experiences with skiing in general or at Ski Butternut in particular, his or her involvement may be lower than another customer with no previous experience. If a consumer is concerned with [perceived] social visibility, his involvement may remain high, particularly in the teen age group. In addition, the statistic that the first time skier makes seven trips to the same mountain before trying another mountain suggests that enduring involvement would be a factor. Based on the pricing offered to first timers and the addition of the terrain parks to entertain youths, Ski Butternut is well aware of the importance of these factors of involvement. LESSON PLAN FOR GROUP WORK • For “Class Activity – Consumer Buying Behavior,” divide the class into small groups of four or five people. Provide the information and the questions asked by the class activity. • Application Questions 3 and 5 lend themselves well to group work. For this activity, divide the class into small groups of four or five people. Each group should read the question and then use their textbooks, or any work that was completed previously, to perform the exercise. Then each group should discuss or present their work to the class. Class Activity – Consumer Buying Behavior Have students select a product such as athletic shoes or jeans and determine the way in which their selection of that particular brand reflects their self-concept. Then have them determine a slogan and sketch a print ad that would appeal to consumers who seek to express this same self-concept through their product purchase. REVIEW AND ASSIGNMENTS FOR CHAPTER 6 REVIEW QUESTIONS 1. The type of decision making a consumer uses for a product does not necessarily remain constant. Why? Support your answer with an example from your own experience. Answer: Students’ answers should address some of the following points. Once a consumer has had experience in purchasing a particular product, extensive decision making may no longer be necessary. For example, if a consumer has owned a Nikon camera and been satisfied with its performance, he or she may opt to buy another Nikon without seeking further information about alternatives. Thus, buying behavior changes from extensive to routine. Moreover, if a routinely purchased product is not available or no longer satisfies, a consumer may engage in limited or extensive decision making to explore other alternatives. Consumer decision-making can vary due to factors like changing needs, experiences, and external influences. For example, I used to consistently choose a specific brand of shampoo, but after experiencing hair damage, I switched to a more nourishing brand based on research and recommendations. This shift illustrates how personal experiences and evolving priorities can lead to different decision-making processes over time. 2. Describe the three categories of consumer decision-making behavior. Name typical products for which each type of consumer behavior is used. Answer: Although students’ answers will vary, they should address some of the following points. Consumers engage in routine response behavior when making inexpensive, habitual purchases of familiar brands. Items in this category include shampoo, cigarettes, catsup, margarine, and bread. Limited decision making is used for occasional purchases such as compact discs, clothing, and minor household appliances. Limited decision making is also employed for evaluating unfamiliar brands in familiar product categories. Consumers engage in extensive decision making when making infrequent, expensive, or unfamiliar purchases. Such purchases might include stereo components, personal computers, and major household appliances. The three categories of consumer decision-making behavior are: 1. Routine Decision-Making: Involves low-involvement purchases that consumers make habitually. Typical products include groceries like bread and milk. 2. Limited Decision-Making: Involves moderate involvement and some research before purchase. Typical products include electronics, like headphones or kitchen appliances. 3. Extensive Decision-Making: Involves high involvement and significant research, often for expensive items. Typical products include cars or houses. 3. Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple’s Web site at http://www.apple.com simplifies or complicates the process for the average consumer? Explain. Answer: Answers may vary according to students’ characterizations of the average consumer and personal experience. Generally, consumers making infrequent, expensive, or unfamiliar purchases, such as a computer, engage in extensive decision making. Buying a new computer typically involves high involvement due to the significant financial investment and the impact on daily life. Factors influencing this involvement include brand reputation, product specifications, personal needs, and reviews. Apple's website generally simplifies the process for the average consumer. Its user-friendly design, clear product comparisons, and helpful resources make it easier to navigate options and find the right computer. However, the variety of models and configurations might overwhelm some users, but overall, it enhances the purchasing experience. 4. How do beliefs and attitudes influence consumer behavior? How can negative attitudes toward a product be changed? How can marketers alter beliefs about a product? Give some examples of how marketers have changed negative attitudes about a product or added or altered beliefs about a product. Answer: Beliefs are organized patterns of knowledge that an individual holds as true about his or her world. Consumers tend to develop a set of beliefs about a product’s attributes and then, through those beliefs, form a brand image—a set of beliefs about a particular brand. An attitude is a learned tendency to respond consistently toward a given object. Beliefs help form the basis for attitudes, as do values. Often, the marketer’s goal is to change attitudes toward a brand. This goal might be accomplished in three ways: changing beliefs about the brand’s attributes, changing the relative importance of those beliefs, and adding new beliefs. For example, Harley Davidson, through strict quality control, has changed the belief about the quality of their product. And by limiting production they have added a new belief that it is an exclusive and sought-after product. APPLICATION QUESTIONS 1. Visit CarPoint’s Web site at http://carpoint.msn.com/home/New.asp. How does the site assist consumers in the evaluation stage of choosing a new car? Develop your own hypothetical evoked set of three or four car models and present your comparisons. Which vehicle attributes would be the most important in your purchase decision? Answer: This Web site provides a select list of cars, price points, and outside reviews of each car. Thus, the consumer can evaluate an evoked set with somewhat objective information, as opposed to information provided by a subjective source, such as a friend or the dealership. 2. Recall an occasion when you experienced cognitive dissonance about a purchase. In a letter to a friend, describe the event, and explain what you did about it. Answer: Although students’ answers will vary, the following example shows some of the points students should address. I decided to replace the two front tires on my car because they were beginning to look worn. I suspected that my tires probably could hold out longer, but I wanted to be on the safe side. When I went to shop for tires at a place that had been recommended to me, the mechanic advised me to replace all four. Putting faith in his recommendation, I spent more than I had planned and bought all four tires. Afterward, because I had spent so much money for tires that I wasn’t even sure I needed, I experienced cognitive dissonance about the decision. Hoping to dispel my doubts, I compared prices of tires at other places and discussed my decision with people who had experience buying tires. The evidence I collected convinced me that I had used good judgment in replacing my old tires. I also realized that I had gotten a good bargain. Hey [Friend's Name], I wanted to share a recent experience I had with cognitive dissonance after buying a new phone. I splurged on a high-end model, thinking it would be a great upgrade. However, once I had it, I started questioning whether I really needed all those features, especially given the cost. To resolve my discomfort, I did some research and found ways the phone genuinely improved my daily tasks—better camera quality for my photography hobby and faster performance for apps I use frequently. I also reminded myself that investing in quality often pays off in the long run. Ultimately, I felt more at ease with my decision! Hope you’re doing well! Best, [Your Name] 3. You are the new marketing manager for a firm that produces a line of athletic shoes to be targeted to the college student subculture. For your boss, write a memo in which you list some product attributes that might appeal to this subculture, list the steps in your customers’ purchase process, and recommend some marketing strategies that can influence their decision. Answer: Students’ answers should address some of the following points. American college students represent a large and powerful subculture. Marketers frequently promote products to this group by appealing to social motivations, such as the desire for love and acceptance. Advertisements might show groups of friends having fun, participating in street basketball, hiking, or just hanging out at the local pub. A status appeal is also important to this group as they are frequently drawn to the current fad or fashion. Technological improvements in athletic shoes are also appealing to this group. Memo To: [Boss's Name] From: [Your Name], Marketing Manager Date: [Current Date] Subject: Marketing Strategy for Athletic Shoes Targeting College Students Product Attributes: 1. Style and Design: Trendy colors and unique designs that resonate with college culture. 2. Comfort: Cushioned insoles and breathable materials for all-day wear. 3. Affordability: Competitive pricing or student discounts to accommodate budgets. 4. Sustainability: Eco-friendly materials and practices to appeal to socially conscious consumers. 5. Brand Community: Collaboration with influencers or athletes who resonate with the student lifestyle. Customer Purchase Process: 1. Need Recognition: Students realize they need new athletic shoes. 2. Information Search: Research through social media, reviews, and peers. 3. Evaluation of Alternatives: Compare different brands and styles. 4. Purchase Decision: Choose a brand based on factors like price, style, and peer influence. 5. Post-Purchase Evaluation: Assess satisfaction with the purchase. Recommended Marketing Strategies: 1. Social Media Campaigns: Leverage platforms like Instagram and TikTok to showcase shoes in relatable, student-focused content. 2. Influencer Partnerships: Collaborate with popular college influencers to drive authenticity and reach. 3. Campus Events: Sponsor athletic events or host pop-up shops on campus for direct engagement. 4. Promotions and Discounts: Offer limited-time discounts for students to encourage immediate purchases. 5. Sustainability Messaging: Highlight eco-friendly practices in marketing materials to attract environmentally conscious students. Let me know if you have any questions or need further details! Best, [Your Name] 4. Family members play many different roles in the buying process: initiator, influencer, decision maker, purchaser, and consumer. Identify the person in your family who might play each of these roles in the purchase of a dinner at Pizza Hut, a summer vacation, Froot Loops breakfast cereal, an Abercrombie & Fitch sweater, golf clubs, an Internet service provider, and a new car. Answer: Although students’ answers will vary, they should note that some categories of purchases involve more people. 1. Dinner at Pizza Hut: • Initiator: Child suggests pizza. • Influencer: Parent discusses toppings. • Decision Maker: Mom chooses the restaurant. • Purchaser: Dad orders. • Consumer: Whole family eats. 2. Summer Vacation: • Initiator: Parent proposes a trip. • Influencer: Kids suggest destinations. • Decision Maker: Dad decides location. • Purchaser: Mom books it. • Consumer: Family enjoys the vacation. 3. Froot Loops Cereal: • Initiator: Child requests it. • Influencer: Parent considers health. • Decision Maker: Mom picks the brand. • Purchaser: Dad buys groceries. • Consumer: Kids eat it. 4. Abercrombie & Fitch Sweater: • Initiator: Teen wants a new sweater. • Influencer: Friends suggest styles. • Decision Maker: Teen chooses design. • Purchaser: Parent buys it. • Consumer: Teen wears it. 5. Golf Clubs: • Initiator: Dad wants new clubs. • Influencer: Friends recommend brands. • Decision Maker: Dad decides which to buy. • Purchaser: Mom buys as a gift. • Consumer: Dad uses them. 6. Internet Service Provider: • Initiator: Parent needs better service. • Influencer: Kids discuss streaming needs. • Decision Maker: Dad compares plans. • Purchaser: Mom signs up. • Consumer: Family uses the internet. 7. New Car: • Initiator: Mom suggests an upgrade. • Influencer: Dad discusses features. • Decision Maker: Both decide on model. • Purchaser: Dad negotiates. • Consumer: Family drives it. This highlights how each family member plays a distinct role in purchasing decisions! 5. Assume you are involved in the following consumer decision situations: a) renting a video to watch with your roommates, b) choosing a fast-food restaurant to go to with a new friend, c) buying a popular music compact disc, and d) buying jeans to wear to class. List the factors that would influence your decision in each situation and explain your responses. Answer: Students’ answers will vary, but they should include the importance of cultural, social, psychological, and individual factors in their purchase decision. a) Renting a Video with Roommates • Roommate Preferences: Input on genres. • Availability: What’s in stock. • Reviews: Ratings and recommendations. • Mood: Group mood for movie choice. b) Choosing a Fast-Food Restaurant with a New Friend • Friend’s Preferences: Dietary needs and favorites. • Location: Proximity and convenience. • Menu Options: Variety and appeal. • Ambiance: Comfortable setting for conversation. c) Buying a Popular Music CD • Artist’s Popularity: Interest in the artist. • Reviews: Ratings and recommendations. • Price: Budget considerations. • Format: Preference for CD vs. digital. d) Buying Jeans for Class • Fit and Style: Desired fit and fashion. • Price: Budget constraints. • Brand Reputation: Trust in quality brands. • Comfort: Importance for all-day wear. These factors shape my decisions in each scenario! APPLICATION EXERCISE Principles of consumer behavior are evident in many areas of marketing. Perhaps the easiest place to see this critical foundation of marketing activity is in print ads. Activities 1. Review the main concepts in this chapter and create a checklist that itemizes them. Then, comb through your favorite magazines and newspapers for advertisements that illustrate each concept. To get a wide variety of ads, you will need to look through several magazines. If you don’t have many magazines at your disposal, go to the campus library periodical room. Photocopy the ads you select to support this chapter. 2. Because pictures can help reinforce understanding, consider doing this exercise for each chapter in the book. At the end of the semester, you will have a portfolio of ads that illustrate the concepts in the entire book, which can help you study. Simply look through your portfolio and try to recall the concepts at work in each advertisement. This exercise can be a prelude to a longer study session for comprehensive exams. Purpose: This exercise requires students to closely examine print ads to see how they use the principles of consumer buying behavior to make their message more successful. By collecting ads and creating a portfolio showcasing different products, different ad styles, and so forth, students will see how many marketing concepts discussed in the book are played out in print media. Setting It Up: Students may not subscribe to a diverse enough set of magazines to create a varied portfolio. Also, they may be unwilling to spend a large sum photocopying ads in the library periodical section. Encourage them to select 10 concepts from the chapter and find ads to illustrate them. If your class is small and conducive to group work, you can have student group their ads according to chapter concepts and then compare how advertisers convey their messages. Alternatively, you could have students group ads by product categories and see if any consumer behavior concepts are more prevalent in ads for certain products. For example, which kinds of products seem to rely on opinion leaders, on self-concept, and so on? This exercise was inspired by the following Great Idea in Teaching Marketing: P.J. Forrest Mississippi College PRINT AD PROJECTS FOR CONSUMER BEHAVIOR If you use a managerial approach to teaching Consumer Behavior (i.e., this is the concept, this is what you do with it), you might find the use of Print Ad Projects very helpful. This project has evolved over the years from my asking the students to bring in a single magazine ad that related to the topics we were discussing in class that day, to requiring a portfolio of ads that illustrates each of the topic areas we cover. One of the main benefits for the student in using this project is simple: “A picture is worth a thousand words.” For example, one undergraduate would not be convinced that the automobile market specifically targeted women. I handed her a Chevy ad, which showed a young woman and the phrase “this is not my boyfriend’s truck.” In gathering ads that are examples for the various consumer behavior concepts, the students are forced to look at dozens of ads in a critical thinking manner. They must analyze both the ads they chose to use and the ones that are unsuitable for the topic they are trying to illustrate. Over the years I have kept the “best of” ads from the student projects, and as a result I now have a thick folder of ads for every chapter in the text. After I lecture on a topic, I whip out a bundle of ads that illustrate the concept and show them how it is used. It is much easier to create understanding when you can show them the differences in ads that use latent motives versus manifest motives, or a series of ads that are directed at each of the VALS 2 lifestyle segments. Generational marketing is also very interesting and illustrates the changes that must be made when advertising to baby boomers, generation X or generation Y. And you would be amazed at the true depth and breadth of the “Where’s your mustache?” milk campaign—I must have 50 different print ads. Depending on the size of the class, I sometimes use this as an individual project or group project. Sometimes I require a presentation, and sometimes I have the students turn in a portfolio of ads. This project has been a major contribution to the learning process in my consumer behavior classes and has made them more interesting—for the students and for me. ETHICS EXERCISE Eye Onu operates a Web filter service for public schools and libraries to protect students from inappropriate material on the Internet. Like the industry as a whole, the company’s market share has been stagnant for the past two years. Looking for new sources of revenue, the company is considering selling the data it has collected about student surfing habits to marketers trying to learn more about students’ behavior on the Web. The data are anonymous, but privacy advocates are concerned about the precedent of selling information about children to marketers. Questions 1. What should Eye Onu do? Should it protect the students’ data or should it take the opportunity to create new revenues? Answer: Eye Onu could create new revenues from its information, but in order to comply with the Children’s Online Privacy Protection Act of 1998 (COPPA), the company could not make use of personal data, including name, address, age, telephone number, e-mail address, or any other information that would allow someone to contact the child. Likewise, information on hobbies, interests, or other information collected through cookies is off limits when it can be tied to individually identifiable information. Therefore, by collecting completely anonymous information, Eye Onu can sell its clickstream data without compromising its ethics. The value of such completely general information is dubious, however, because the information cannot be sifted out according to age, gender, or any other common segmentation variables. 2. Does the AMA Code of Ethics address this issue? Go to http://www.marketingpower.com and review the code. Then write a brief paragraph on what the AMA Code of Ethics contains that relates to Eeyou’s dilemma. Answer: Although the AMA Code of Ethics does not specifically mention collecting information from children, it does state, “Information collected from customers should be confidential and used only for expressed purposes. All data, especially confidential customer data, should be safeguarded against unauthorized access.” This language puts the marketer in the position of trustee of the data—someone who has access and control over the data, and who is responsible and accountable for it and its use as well. The obligation of the marketer in this role is not negligible. Under COPPA, the marketer is severely restrained in the use of data collected from children. VIDEO ASSIGNMENT: Ski Butternut Ski Butternut is a ski and snowboard mountain in the Berkshires. Because the mountain is a “soft” mountain, Ski Butternut collects large amounts of data based on rentals and Web traffic to make sure that they understand who the customer is and to whom they need to market. Matt Sawyer also discusses how they change the mountain itself to meet the needs of the customer. 1. For Ski Butternut, racers, first-timers, and terrain-park enthusiasts would be considered A. opinion leaders B. lifestyle groups C. subcultures D. high-risk categories Answer: C These would be considered a subculture—a homogenous group of people who share elements of the overall culture (skiers/snowboarders) as well as cultural elements unique to their own group (racing, beginners, and terrain park users) 2. Matt Sawyer says that first time skiers tend to stay with their first mountain for as many as seven visits before trying another ski area. That makes choosing Ski Butternut what for the first-time skier? A. a want B. a consideration set C. a highly visible decision D. an enduring involvement decision Answer: D Because the first time skier exhibits such loyalty for their first mountain, choosing Butternut becomes a decision with high, enduring involvement. 3. When Ski Butternut put in the terrain park, it A. began to change the belief that Butternut was only for first-timers by adding a cool and fun feature for more advanced skiers and snowboarders. B. changed the importance of the mountain being for families by adding a feature that was not geared towards families. C. changed the psychographic make-up of people on the mountain. D. created a new self-concept for people who visit Ski Butternut. Answer: A By adding a terrain park, Ski Butternut offered a new attribute that helped change youth perception about the mountain: it became a place where everyone could have fun and find something, not just for first timers. 4. Ski Butternut surveys allows them to compile a database, which reveals A. typical family life cycle stage for individuals and families. B. each person’s primary reference group. C. family subcultures. D. motivation for skiing. Answer: A Ski Butternut’s database shows what stage of the family life cycle most of its customers are in. It may allow them to guess what the primary reference group is, but that would be less clear. 5. By understanding how its customers search for ski options, Butternut is able to direct potential customers to A. a place where they will be tagged by cookies and monitored for Butternut’s database. B. a marketing controlled information source C. listen to its radio ad D. a Web site with a Ski Butternut pop-up ad. Answer: B By targeting customers searching for words such as “ski resort” or “beginner skiing,” Butternut can place an ad for their Website—a marketing controlled information source. 6. By using images of families skiing and people using the terrain park, Ski Butternut is forming an: A. primary membership group B. need C. subculture D. aspirational membership group Answer: D By showing other families having fun or other skiers/boarders shredding the terrain park, Ski Butternut creates a group that other families or terrain park enthusiasts want to emulate—an aspirational membership group. 7. Customers visiting the Ski Butternut mobile Web site are responding to: A. some kind of stimulus. B. something from their subculture. C. an evaluation of an alternative Web site. D. one of their consideration set. Answer: A Visiting a web site occurs in response to some kind of stimulus: an internal need for information, and external request for Butternut’s hours, etc. CASE ASSIGNMENT: Netflix In February 2013, Netflix debuted House of Cards, a smoldering political drama starring Kevin Spacey and featuring direction by Hollywood heavyweights like David Fincher and Joel Schumacher. The streaming video service made all 13 episodes of the original series’ first season available at once—a bold strategy in a television industry seemingly pulled in opposite directions by tradition and technological advancement. House of Cards proved an instant hit among critics and Netflix customers alike—according to a Cowen and Co. survey, 86 percent of subscribers said that the availability of House of Cards made them less likely to cancel their subscriptions. A majority of respondents also said, however, that they would cancel their subscription if Netflix raised its $7.99-a-month price. According to Netflix CEO Reed Hastings, House of Cards “met all of (our) expectations.” Netflix quickly made plans to follow the series with a broader lineup of exclusive shows including the second season of Lily hammer (Netflix’s first foray into original programming), gothic horror series Hemlock Grove, cult classic Arrested Development, and science-fiction epic Sense8. Although such programming is proving popular—to say the least—among subscribers, the company has no plans to abandon its role as a hub for licensed television shows and movies. “I don't want you guys to think that suddenly we're the original content company,” said Hastings. “It’s phenomenally successful for us, but it's not the center of the company.” David Lieberman, “’House of Cards’ Was ‘a Great Success’ Netflix Chief Says,” Deadline, February 25, 2013, www.deadline.com/2013/02/netflix-reed-hastings-says-house-cards-success (Accessed March 27, 2013); Emma Roller, “House of Cards Is Paying Off for Netflix,” Slate, February 21, 2013, www.slate.com/blogs/moneybox/2013/02/21/house_of_cards_netflix_subscribers_say_the_series_will_make_them_less_likely.html (Accessed March 27, 2013); Maria Sciullo, “Netflix Debuts Original Series ‘House of Cards,’” Pittsburgh Post-Gazette, February 1, 2013, www.post-gazette.com/stories/ae/tv-radio/netflix-debuts-original-series-house-of-cards-672954 (Accessed March 27, 2013) “Wachowskis to Make Sci-fi Series for Netflix,” Miami Herald, March 27, 2013, www.miamiherald.com/2013/03/27/3309370/wachowskis-to-make-sci-fi-series.html (Accessed March 27, 2013). TRUE/FALSE 1. If a consumer enjoys Netflix’ original series offerings today, he will enjoy them tomorrow, and on into the future. Answer: False Consumers’ product and service preferences are constantly changing. 2. A consumer conducting an internal information search on Netflix might seek out and watch trailers for the company’s original series. Answer: False Watching trailers would be part of an external information search. 3. Membership in a television-based subculture might influence a person’s decision whether to purchase a Netflix subscription. Answer: True 4. On Maslow’s hierarchy of needs, a Netflix subscription best satisfies the physiological level. Answer: False Physiological needs include the most basic human needs—food, water, and shelter. 5. A consumer will only purchase a Netflix subscription after engaging in extensive decision making. Answer: False Consumers practice extensive decision making when buying an unfamiliar, expensive product or an infrequently bought item like a car or house. This process is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer. MULTIPLE CHOICE 1. Suppose a consumer wants to watch House of Cards and has discovered that a Netflix subscription is the only way to do so. She’s done a great deal of research, but still isn’t sure if a subscription is worth the price. What stage of the consumer decision-making process is she in? A. Need recognition. B. Information search. C. Evaluation of alternatives. D. Purchase. E. Post purchase. Answer: D Ultimately, the consumer has to decide whether to buy or not buy. This is done during the purchase stage. 2. Suppose that after purchasing a Netflix subscription, a consumer finds she doesn’t have any interest in the programs offered and uses the service much less than she expected. The inner tension she feels is called: A. Cognitive discord. B. Cognitive dissonance. C. Cognitive disagreement. D. Cognitive difference. E. Cognitive dissent. Answer: B When people recognize inconsistency between their values or opinions and their behavior, they tend to feel an inner tension called cognitive dissonance. 3. Which of the following is not a cultural factor that might affect a consumer’s decision whether to purchase a Netflix subscription? A. The convenience of streaming movies rather than driving to a video rental store. B. The popularity of the service among socioeconomic peers. C. Multi-language audio and subtitle track offerings for popular programs. D. Parental controls that prevent children from watching violent programs. E. All of these are cultural factors that might affect a consumer’s decision whether to purchase a Netflix subscription. Answer: E Of all the factors that affect consumer decision making, cultural factors exert the broadest and deepest influence. 4. Who in the Johnson family is likely to be the influencer in the decision to subscribe to Netflix? A. Susie Johnson, the daughter who brought up the idea of possibly subscribing to Netflix. B. Brian Johnson, the son who watches television shows voraciously. C. Michael Johnson, the grandfather whose sage advice is always valued. D. Loretta Johnson, the mother who pays for the Netflix subscription every month. E. Bo Johnson, the family dog who prefers running around the yard to watching television. Answer: C Influencers are members of the family whose opinions are valued. 5. A Netflix fan who tends to forget news he reads about the company’s battles with content providers and declining subscriber numbers, instead focusing on news about new original series and social networking features, demonstrates this element of perception: A. Selective retention. B. Selective exposure. C. Selective distortion. D. Selective perception. E. None of these. Answer: A Selective retention is remembering only information that supports personal feelings or beliefs. The consumer forgets all information that may be inconsistent. GREAT IDEAS FOR TEACHING CHAPTER 6 James S. Cleveland, Sage College of Albany DISCUSSION BOARD TOPICS TO ENCOURAGE PARTICIPATION Discussion board questions provided to students to encourage them to engage in thinking and writing about the content of the Principles of Marketing course usually take the form of a provocative statement to which students are asked to respond. An example of this would be “All PR is good PR.” Discussion topics such as this one are abstract and often require that the instructor provide an initial reply to show students what is expected of them in their own replies. For students with limited work experience, this approach may be quite appropriate. For adult students with extensive experience as employees and consumers, however, the abstract nature of such topics can be frustrating. I have developed, therefore, a series of discussion board questions to use with experienced, adult students. These questions are designed to encourage them to use their experiences as employees and consumers as doorways to better understand the course material, and to make their own responses more interesting to themselves and to the other students in the class who will read and comment on them. Each question has three parts: 1. First, there is a sentence or two from the students’ textbook introducing the topic. By using the text author’s own words, students are enabled to locate relevant material in the text more easily, the text content is reinforced, and confusion resulting from use of variant terms or expressions is minimized. 2. Second, there is a reference to text pages the student should review before proceeding. Since the goal of the exercise is for students to apply the course content to their own experiences, reviewing the content first is important. 3. Third, there is a request for the student to think about or remember some specific situation in their experience to which they can apply the text material, and a question or questions for them to address in their reply. Here are additional such discussion board questions developed for Chapter 6 of MKTG10. Each is written to fit the same text cited above but could easily be rewritten and revised to fit another text. Series A 1. All consumer buying decisions generally fall along a continuum of three broad categories: routine response behavior, limited decision making, and extensive decision making. 2. Review this process in section 6-4 of your text. 3. Then describe a purchase you have made that involved extensive decision making in terms of the five stages of the consumer decision-making process. Series B 1. Culture is the essential character of a society that distinguishes it from other cultural groups. 2. Review the components of American culture in section 6-5 of your text. 3. Then describe how one or more of these cultural components resulted in recent purchases you made. Mark Andrew Mitchell, Coastal Carolina University COGNITIVE DISSONANCE AND THE UNIVERSITY EXPERIENCE The selection of an institution for higher education or the selection of particular degree programs within that institution is a decision of considerable involvement for most individuals. The choice of one alternative (college or university of discussion) over another alternative institution can cause the decision maker some psychological discomfort (cognitive dissonance) as he or she grapples with the relative correctness of the decision. The same can be said for the selection of a particular discipline of study (i.e., business, education, arts, sciences, nursing, communications) as other options are bypassed. Given the level of involvement of the college or university decision, some individuals may feel this psychological discomfort at some point in their academic careers. The challenge for marketing organizations (including the institution of discussion) is to effectively deal with this phenomenon in order to achieve the highest levels of consumer satisfaction. In a university setting, the presence of this phenomenon is vital to student retention efforts. Simply stated, some students (customers) may act upon this level of discomfort by removing themselves from the university in favor of other institutions or other employment or training opportunities. Purpose of the Project The purpose of the project is to provide students with the opportunity to integrate marketing theory with marketing practice. Simply put, students analyze the concept (cognitive dissonance) and its presence on their particular campus, and offer creative marketing solutions for consideration by university administrative personnel. The institution is used as the focal point of the project in the interest of building the students’ sense of belonging and commitment to their institution. The inclusion of this project in a Marketing course provides the following outcomes: 1) the realization of an institutional desire for operational and management effectiveness, 2) the provision of experiential learning outcomes, 3) the realization of the learning objectives for the course, and 4) student participation in the strategic planning processes of the institution. Student Applications This application can be administered in a Principles of Marketing course or a specialized Consumer Behavior course. The project is developed with the students over the life of the term with the final output delivered to university administrative personnel for consideration. The project may be done on an individual group basis depending on the nature of the audience or desires of the instructor. Suggested Focus Areas The following focus areas are suggested as contributors to the problem of cognitive dissonance on a college or university campus: 1. Freshman students during their first year experience 2. Students transferring from other institutions 3. Students entering upper-division degree programs 4. Students selecting particular academic programs in favor of others 5. Students selecting academic/service/professional organizations for membership and participation 6. Mature students returning to the university to complete partially completed degree programs 7. Ongoing efforts: student academic counseling; student academic tutoring; student career counseling; student counseling (more personal in nature); scheduling of classes; payment of fees; financial aid assistance; library accessibility; student on-campus activities; adequacy of physical campus Note: The above list is meant to be illustrative and not exhaustive. The students should consider all aspects of the undergraduate experience and provide direct actions for dealing with the presence of cognitive dissonance on a college or university campus. Suggested Outline The following outline is offered to guide the preparation of the documents and/or presentation to be made available to university personnel for consideration and implementation: 1. Illustrate your understanding of the concept of cognitive dissonance. (What problem are you addressing?) 2. Briefly discuss why a college or university should be concerned with the presence of cognitive dissonance within its student population. (Why are you concerned?) 3. What solutions can you suggest to address the presence of cognitive dissonance on a university campus? (What are your solutions?) a. focal point b. target group c. discuss specific action d. desired outcomes 4. Attempt to integrate your actions into a short-term plan that can be operationalized and put into action by university officials. (How should your solutions be implemented?) Tom Hicky, Oswego State University of New York LEARNING THROUGH COMPETITIVE CASE PRESENTATION I have applied the following process to the case in my Consumer Behavior course and referred to the process as a “competitive case presentation.” Students are formed into two consulting management teams and present the same case to me, as the president of the client company. First, this really livens up a case presentation since the teams must 1) pick out “unique selling propositions,” 2) evaluate the competitive position, and 3) develop the appropriate presentation. Second, each presenting team must listen very carefully to the competitor’s statements and use the information in either a contributory or an offset response. Third, the students seem to become very strongly interested in the environments of the competition and customers. That is really helpful in getting across the idea of consumer behavior. Barbara-Jean Ross, Louisiana State University Laura A. Williams, Tulane University COMMUNICATING CONSUMER BEHAVIOR: AN EXERCISE USING PERSONAL CONSUMPTION JOURNALS In consumer behavior, it is vital that upon completion of the course students have acquired a sound understanding of how consumers search for, purchase, and use products and services. Furthermore, students should also be exposed to the social and psychological influences on these behaviors. Finally, to have garnered the most benefit, students should understand how to integrate the theoretical concepts into their real-world experiences. To achieve these broad objectives, a large amount of information must be presented by the instructor and then processed by the students. The purpose of this paper is to describe the use of consumption journals. This exercise enables students to not only observe and record their own consumption habits, but also to explore the social and psychological factors that may be influencing their and others’ purchase decisions. Furthermore, the greatest benefit is that they enjoy the learning process. Exercise Overview This exercise is designed to be an incremental three-part assignment. The first part requires students to maintain a personal consumption journal. In the second part, each student is told to construct a portrait of themselves as a consumer by developing a list of ten products or services typically purchased. The third portion of the assignment is an advertisement evaluation. This requires students to select two products from their ten-product list and locate advertisements or promotions for them. For each advertisement selected, students are required to identify four to six consumer behavior concepts used in the ad, to describe the demographic and psychographic segments to which the ad was targeted, and to explain the reasoning for their conclusions. Finally, students are asked to assess whether or not they are representative of these segments. Consumption Journal Each student is responsible for maintaining a consumption journal that describes the products and services they purchase. Descriptions include what products and services are purchased, where the items are purchased, why the items are purchased, and what feelings are associated with the purchase. Students are required to complete a minimum of two entries each week. Students are asked to submit the preceding weeks’ entries with the new entries, allowing the instructor to view the weekly progress and making the students more aware of the patterns present in their consumption behavior. An example journal entry template should be provided to the students at an introduction of the assignment. Date: Place of Purchase: Items(s) Purchased: Brand Name (for each item): Price (for each item): Other Descriptive Information: Reason for Purchase: Feelings Associated with Purchase: The length of time that students are required to main consumption journals is at the discretion of the instructor, but four submissions should be the minimum as students only begin to understand and appreciate the assignment around the fourth submission. Ten Product List After the third submission of the consumer journal, students should be instructed to review their consumption behavior and to create a list of ten products or services they own and/or regularly use. Students are asked to select only those products and services that best portray their personality, values, and lifestyle. Similar to the journal entry, the list is required to contain detailed information (such as brands, sizes, colors, and/or models) about the products and services. Advertisement Analysis Once the ten-item product list is complete, each student should select two of the items on the list and locate an advertisement for each of the selected products. The two advertisements then serve as the medium for a short analysis paper. For the paper, the analysis of each advertisement is broken down into three sections. First, students have to identify between four and six consumer behavior concepts used in the advertisements. Second, students are asked to identify and explain the demographic and psychographic segments to which the ad was designed to appeal. Finally, students explain whether or not they fit into the identified target market. Benefits to Students The consumption journals allow students to immediately begin to understand the relevance of studying consumer behavior. Additionally, it allows them to apply their own experience to the material presented in class lectures. In all three parts of the assignment, students use consumer behavior theory and principles to justify their points. This exercise allows students to demonstrate an understanding of segmentation, motivation, personality, psychographics, learning, attitudes, and reference group influence. Perhaps most importantly, journals can move students from a passive state of learning to participatory learning. Conclusion A class exercise that integrates class material with students’ lives increases their interest in learning the core concepts. This increased interest is highly desirable and the use of consumption journals provides this advantage. Via the journal entries, the ten-product list, and advertisement analysis, students learn about their personal consumption habits. This self-discovery is an exploration of the social and psychological factors that influenced their consumption behavior and how their behavior could be generalized to others. Thus, although the instructor’s investment in developing this exercise is considerable, students’ return is well worth the effort! Anita Jackson, Central Connecticut State University REFERENCE GROUP – LECTURE ALTERNATIVE AND CLASS PARTICIPATION EXERCISE Instructions: The students are instructed to come to the next class displaying some symbol that identifies them with a reference group. They are told that they will have to identify the reference group, what type of reference group it is, its influence, and its power structure. On the day of class, the students ask to find their reference group peers among the other students and to form groups based on their reference symbols. Allow the groups several minutes to discuss and define themselves as a group and to choose a spokesperson for their group. Begin with a series of questions and follow with an open discussion of the material. Sometimes you have to lead the students through this exercise; other times they proceed without much assistance. The following questions are those that I have found successful in covering the material; however, they are just suggestions. Feel free to improvise as you go along. Each group represented in class is asked the following questions: 1. What type of reference group do you represent (formal or informal)? Explain. 2. What type of social influence does the group have on its members (normative or informational)? Explain. 3. Why do group members conform to the standards of the group (cultural pressure, fear of deviance, commitment)? Explain. 4. Do group size, unanimity, expertise, or sex differences cause greater or lesser conformity within the group? Explain. 5. Next ask the spokesperson for each of the groups to define how the group influences consumption of its members (informational, utilitarian, value-expressive). 5a) After the spokesperson has expressed his or her view, ask if there is a difference of opinion within the group. This can lead to a discussion of the social power of the group and whether members conform to the dictates of the group by private agreement or by surveillance. 6. Now ask if there is agreement or disagreement with any of the positions that have been expressed by the groups’ spokespersons. Allow an open discussion for several minutes. 7. Ask if the spokesperson is the opinion leader of the group. Answers will vary and leave room for further discussion on the topic of opinion leadership. 8. Then ask the spokesperson: Did the comments of your group change your perception of your position within the group? This allows you to discuss group opinion and social power of the group. 9. Next, ask what types of power the group has on its members (referent power, information power, legitimate power, expert power, reward power, or coercive power). Make sure that you link this to conformity. There are usually students who do not have similar symbols and cannot find a reference group within the class. If you have independents within the class: 10. Ask if they avoid groups because of their power structure. This allows the class to discuss the need for uniqueness or freedom. A discussion of social comparison theory is a good idea at this point. 11. Finally, ask the students if word of mouth information from a group they belong to or aspire to has more influence on them than word of mouth from a stranger. This exercise covers most of the material on reference group influences. It also involves the students and they feel free to open up in class. Al Rosenbloom, Benedictine University FIT TO BE TIED: UNDERSTANDING THE CONCEPT OF INVOLVEMENT Teaching Objectives 1. To reinforce, through an in-class activity, the concept of “levels of involvement” 2. To demonstrate how levels of involvement relate to other marketing variables, especially segmentation All introductory marketing texts introduce the concept of levels of involvement in their chapters on consumer behavior. Generally, texts treat levels of involvement as being either high or low. I expand on this with the following mini-lecture. Henry Assael has further developed the concept of involvement by correlating levels of involvement with decision-making. He creates a matrix as follows: Assael further describes each cell. Complex decision-making is complicated, is high risk, involves an extensive information search, and results in the “best” decision for the consumer. Complex decision-making results in brand loyalty through habit. Brands serve as shortcuts, thereby reducing the amount of time consumers need to search. The inertia cell represents traditional low- involvement products, that is, those products that mean little to consumers. They are generally low cost, don’t result in serious consequences when a “bad” decision is made, and don’t reflect on one’s social image. Consumers don’t care very deeply about inertia products and, as a result, don’t spend much time thinking about them. Limited decision-making occurs when consumers are forced to spend time thinking about a low involvement product, as when, for example, an item is out of stock and they must decide what to do. In-Class Activity This activity divides students into teams and asks them to create profiles of consumers who fall into each box of the Assael matrix. Students are given a common product—in this case, a man’s necktie. Students are given old, out-of-fashion ties as prompts to get them to think more completely about tie buying and about ties as a product. In addition, each student team is given one page of newsprint on which to develop their profile. The exercise works best with the following beginning statement: “Think about a consumer who is buying a tie that is described by your cell in the matrix. First, develop a mental picture of who that consumer is: what motivates your consumer to buy that tie, what kinds of stores will that consumer go to, what media will that consumer look at (if any), what specific feature will they look for in a tie, and most importantly, what does a tie mean to that consumer? Now, write those ideas on the newsprint.” This generally is enough to get the activity going. This activity takes about 30 minutes total (including the time needed for teams to report out their consumer profiles). Activity Learning Points 1. Consumers can—and often do—see a common product in very different ways. Inductively this demonstrates that there are different market segments for ties. 2. Different marketing strategies are required to reach consumers in different matrix cells. 3. Products are complex entities. It is the consumer who gives meaning to products, not necessarily the marketer. Although, obviously, marketers attempt to influence the meaning! 4. There is an inertia market for ties. This suggests that every product might have an inertia market segment. Marketers have an obligation to understand the size of each segment and make decisions about whether this is a segment worth pursuing. 5. Women may do some of the tie purchasing. It’s important not to stereotype your target market. 6. Brands function as short cuts for consumers in the decision-making process. Brands are promises that products, even ties, will perform in consistent ways. When brands fail to meet consumer expectations, then consumers go back into complex decision making. 7. A level of involvement is a critical component of consumer behavior. It leads the marketer into thinking about market segments, target markets, marketing strategy, and brand equity. 8. Consumer segments can have different motivations, beliefs, and attitudes from the students in each team. Marketers (and students) must get past their own specific biases and not project their own attitudes onto consumers. This is perhaps the most important learning. Part 2, Ch. 6, Analyzing Marketing Opportunities: How changes in consumer trends increased L.L.Bean’s boot sales. They’re called duck boots. They’re waterproof and durable and kind of ugly. And L.L.Bean is selling more of them than ever before. A few years ago, L.L.Bean sold its line of outdoor footwear at a moderate, sustainable rate. L.L.Bean boot-making facilities (all of which operate in the United States) were keeping pace with consumer demand. But then, between 2011 and 2014, consumer demand changed in a very big way. By December 2014, more than 100,000 people were on a waiting list to buy L.L.Bean boots. Many of these people were young, urban consumers, not duck hunters. There are several consumer trends that the duck boot can thank for its resurgence among trendy Millennials. The lumberjack aesthetic is “in” among many consumer groups. Flannel, wool socks, distressed wood, and, yes, big leather boots, all fall under the lumberjack look. For the time being, L.L.Bean is capitalizing on that trend. Another trend that shows no sign of slowing is the appreciation for handmade or “Made in the USA” products—and L.L.Bean can lay claim to both labels. Another key selling point that American consumers are valuing more is the durability of L.L.Bean’s duck boots. The company sources quality materials, trains and hires professional stitchers, and promises a lifetime warranty for every product it sells. So, if customers are unhappy about the fit of their duck boots or ruin their boots on a cross-country hike, L.L.Bean guarantees them a full refund or replacement. However, there’s no guarantee that these consumer trends will stay. The company is taking advantage of its current opportunities to sell more duck boots. If it’s smart, L.L.Bean will also use these opportunities to build long-lasting relationships with new customers so that they keep buying, even if the lumberjack trend fades. Sources: Lam, B., “Why L.L. Bean’s Boots Keep Selling Out,” The Atlantic, October 19, 2015, http://www.theatlantic.com/business/archive/2015/10/llbean-duck-boot-labor-shoes-maine/410863/. Northrup, L., “Why Are 100,000 People on a Waiting List to Buy Duck Boots from L.L. Bean?” National Public Radio, December 5, 2014, http://www.npr.org/2014/12/18/371413482/new-popularity-of-l-l-bean-boots-sparks-scramble-to-fill-orders. Sharp, D., “L.L. Bean Boot Gets a Kick from Retro Trend,” Consumerist, December 30, 20111, http://consumerist.com/2014/12/05/why-are-100000-people-on-a-waiting-list-to-buy-duck-boots-from-l-l-bean/. Bain, M., “L.L. Bean’s Duck Boots Are Ugly—So Why Do They Keep Selling Out?” QZ.com, September 30, 2015, http://qz.com/513203/ll-beans-duck-boots-are-ugly-so-why-do-they-keep-selling-out/. Solution Manual for MKTG: Principles of Marketing Charles W. Lamb, Joe F. Hair, Carl McDaniel 9781305631823, 9781285860145, 9781337116800