CH-1 An Introduction to Consumer Behaviour – Consumer Behaviour: Buying, Having, Being : Book Guide

Chapter 1 An Introduction to Consumer Behaviour CHAPTER OBJECTIVES When students finish this chapter they should: •Understand that consumer behaviour is a process. •Be aware that marketers need to understand the wants and needs of different consumer segments. •Understand that popular culture is both a product of and an inspiration for marketers. •Understand that the Internet has changed patterns of consumer behaviour. •Understand that there are many ethical issues to consider in the domain of marketing and consumer behaviour. •Understand that various behaviours can have negative impacts on consumers and society, and these are sometimes referred to as the “dark side” of consumer behaviour. •Understand that many different research methodologies can be used to understand consumer behaviour. CHAPTER SUMMARY •Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, and use or dispose of products, services, ideas, or experiences to satisfy needs and desires. •A consumer may purchase, use, and dispose of a product, but these functions may also be performed by different people. •Market segmentation is an important aspect of consumer behaviour. Consumers can be segmented along many dimensions, including product usage, demographics (the objective aspects of a population, such as age and gender), and psychographics (psychological and lifestyle characteristics). The importance of relationship marketing means that marketers are much more attuned to the wants and needs of different consumer groups over the long term. This is especially important as people are empowered to construct their own consumer space—accessing product information where and when they want it and initiating contact with companies online instead of passively receiving marketing communications. In addition, consumers may be thought of as role players who need different products to help them play their various parts. •Marketing activities exert an enormous impact on individuals. Consumer behaviour is relevant to our understanding of both public policy issues (e.g., ethical marketing practices) and the dynamics of popular culture. •The Web has transformed the way consumers interact with companies and with each other. Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations. The benefits are accompanied by potential problems, including the loss of privacy and the deterioration of traditional social interactions as people spend more time online. •Consumer behaviour can also have a “dark side,” which includes outcomes such as addictive consumption, compulsive consumption, and illegal activities. •Secondary research refers to research that has been conducted by another party that can be applied to the research question at hand. Primary research is research that is conducted specifically to address the research question at hand. •While the majority of consumer research has traditionally been conducted using surveys, a number of other research methodologies are being used by marketers that seek consumer insight. Focus groups, in-depth interviews, observation, qualitative methods, and experimental approaches represent additional research methods that can be utilized to understand consumer behaviour. LECTURE/DISCUSSION IDEAS Lecture Suggestions:
(a) The outline below closely follows the outline in the text. (b) Marked with  you will find additional Real World Applications of the principles and concepts of consumer behaviour not included in your text. You may want to include some of these in your lecture.
(c) In italics, you will find suggestions for Class Interaction Opportunities that should help get a discussion started. It is virtually impossible to do everything that is included here in your course. One way to use the Lecture/Discussion Ideas is to highlight with a the portions of the outline you would like to use in class, the questions you would like to pose, and the slides you will need to help a class flow more smoothly. I. INTRODUCTION A. Consumer Behaviour: People in the Marketplace—covers topics such as demographics, psychographics, reference groups, consumption communities, brand loyalty, market segmentation strategies B. What Is Consumer Behaviour? – It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Use Power Point Slide 1-4 here C. Consumer Behaviour is a Process – Ongoing, not a static situation Marketers now recognize that consumer behaviour is an ongoing process, not merely what happens at the moment a purchase is made. See figure 1.1 (Some Issues That Arise during Stages in the Consumption Process). II. CONSUMERS' IMPACT ON MARKETING STRATEGY – Consumer research is useful in defining and redefining a market A. Segmenting Consumers – Often begins with observing demographics, geography and psychographics o Demographics: •Age
Gender
Family structure and life stage
Social class and income Ethnicity o Geography o Psychographics Class Interaction Opportunity: What are some products that are primarily segmented by demographics? What are some products (brands) that use psychographics? Why? B. Segmenting by Relationship and Big Data o Relationship marketing involves making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with the company over time. o Database Marketing- tracking consumer buying habits and crafting products and messages tailored to people’s wants and needs based on this information. o Big Data involves the collection and analysis of extremely large datasets o Types of relationships a person might have with a product: • Self-concept attachment • Nostalgic attachment • Interdependence • Love Class Interaction Opportunity: How can database marketing help an organization improve its relationship marketing? What databases are you in? How did you get there? III. MARKETING'S IMPACT ON CONSUMERS – We are "at the mercy" of marketers to inform us A. Marketing and Culture – Popular culture - music, movies, sports, books, celebrities, and other entertainment, such as the Stanley Cup, Barbie, recycling, smoking, and the Pillsbury Doughboy are a product of, and inspiration for, marketers. The era of Web 2.0 shows consumers as producers of culture and not just consumers of culture. Class Interaction Opportunity: Give some examples of products that might be consumed strictly for image. Have students offer some examples of products that they purchase for this reason. How does the image of the product enhance your sense of self when you use or consume the product? B. The Meaning of Consumption – People often buy products not for what they do, but for what they mean. The emergence of the global consumer and virtual consumption speak to the ever-changing meanings that consumers attach to their purchases and the decision processes they employ. Class Interaction Opportunity: What are some of the roles you play in life? What kinds of "costumes" do you have in your closet? What products do you purchase for each of your roles? C. The Global Consumer – Movement toward people around the world being united by common devotion to brands, movie stars, and celebrities. Technological improvements encourage linkages with companies and between individuals/ groups. 1. Virtual Consumption – Electronic marketing; business-to-consumer and consumer-to-consumer o Horizontal Revolution: characterized in part by the prevalence of social media, the online means of communication, conveyance, collaboration, and cultivation among interconnected and interdependent networks of people, communities, and organizations enhanced by technological capabilities and mobility. Class Interaction Opportunity: What are the pros and cons of the virtual world? How has this virtual world altered your lifestyle? What will the future bring with respect to this topic? D. Marketing Ethics and Public Policy – Conduct business honestly and maximizing consumer well-being 1. Business Ethics – Rules of conduct that guide actions in the marketplace; socially responsible behaviour Class Interaction Opportunity: Name an organization that shows social responsibility in the actions it takes. Do you think most companies are socially responsible? Name an organization or a person that you think has been socially irresponsible. Why do you say so? Do you think this stance is important to consumers? 2. Prescribing Ethical Standards of Conduct—AMA's Code of Ethics • Disclose all substantial risk with product
• Identify optional features that add to price
• Avoid false and misleading advertising • Reject high-pressure and misleading sales tactics • Prohibit selling under the guise of market research  Coke pulled back on its original launch of Dasani bottled water in France and Germany after a health scare in the UK. The water was found to contain illegal levels of bromate, which is believed to increase the risk of cancer and was ridiculed for being sourced from processed tap water in southeast London. Although the continental Europe product would be sourced from a spring in Belgium, the adverse publicity was thought to make it hard to compete with established European brands.i IV. NEEDS AND WANTS: DO MARKETERS MANIPULATE CONSUMERS? A. Do Marketers Create Artificial Needs? – Moral breakdown? Pursuit of secular humanism? Buy off revolutionaries? Response: Needs are biologically based motives; marketers create awareness of how these needs might be satisfied. B. Are Advertising and Marketing Necessary? – Mass reach of advertising? Arbitrary links to desirable social attributes? Response: Advertising communicates product availability; it is an information source. C. Public Policy and Consumerism – Laws, regulations, study of consumer behaviour D. Consumer Activism and Its Impact on Marketing – Culture jamming, corporate social responsibility (CSR), social marketing, cause related marketing, green marketing, transformative consumer research  The food industry, especially fast food outlets, have been blamed – even sued – for causing obesity in the US. As fast food outlets change their menus (e.g., many, like McDonald’s and Wendy’s, now have salad and ‘healthy alternative’ options), the US Congress has twice passed a bill preventing consumers from suing the food industry for making them fat (although the bill subsequently failed to be approved by the Senate both times). Many states however have successfully implemented similar bills.ii V. THE DARK SIDE OF CONSUMER BEHAVIOUR – Negative behaviour due to excesses or immorality A. Addictive Consumption – Physiological and/or psychological dependency on products, e.g., drugs, tobacco, alcohol, chocolate, shopping, technology  Gamblers can be segmented by lifestyle and demographic variables. Statistics Canada shows that wealthier people, on average, spend more money on wagering. But gamblers who have less money spend a larger percentage of their income on gaming activities.iii Research in the US shows that slot and keno players are more likely to be Protestants who go to church regularly, while the craps table has a better chance of being patronized by non-practicing Catholics (the religious group with the highest gambling frequency). Fundamentalists and atheists are the two religious groups least likely to gamble at all. Gambling is more popular in urban areas than rural ones and more widespread in the northern United States than in the South.iv  It is not uncommon for people to be addicted to more than one thing at a time. Cross- addition is found, for example, among sexaholics, who are often also addicted to drugs or alcohol. These people do not consume sex for recreation, but rather to manage pain or anxiety, much as a chemical may be taken to relieve depression.v B. Compulsive Consumption – “Born to shop", "repetitive and excessive shopping"; gambling - gamblers have a "high" followed by depression, e.g. lottery, slot machines, etc. Class Interaction Opportunity: What are some of the major compulsive behaviours in people your age? Why is it so hard for people to break these habits? C. Illegal Activities – Consumer crimes against business, e.g., shoplifting, arson, fraud 1. Consumer Theft – Losses caused by scams, shoplifting, employee theft, and the abuse of exchange and return policies 2. Anticonsumption – Products and services deliberately defaced or mutilated, e.g., product tampering, graffiti, billboard destruction. Culture resistance-subculture modifies an object of value to the dominant class, e.g., peace symbols on military uniforms, body piercing, dress codes Class Interaction Opportunity: How important do you think the virtue of honesty is in a democratic society? Can democracy survive if the citizens can't be trusted? VI. HOW DO WE FIND OUT ABOUT CONSUMERS? THE ROLE OF CONSUMER RESEARCH Class Interaction Opportunity: Why do you suppose most business programs require marketing majors to take a course in consumer behaviour? A. Primary Research—in all types of organizations working on many types of topics. 1. Survey Research 2. Focus groups 3. Interviews 4. Observational research 5. Qualitative research 6. Experimental research VII. TAKING IT FROM HERE: THE PLAN OF THE BOOK  The wheel of consumer behaviour presented in the text is a simple, integrated perspective that encompasses the major issues considered in the text and emphasizes their interrelatedness. Instructors who are interested in a more traditional perspective may prefer to introduce the field by referring to one of the more elaborate models of consumer decision-making, such as the well-known Engel-Kollat-Blackwell Model, that attempts to organize relevant variables pertaining to information processing and decision-making. o Broadly speaking, the text considers: • Consumers as Individuals • Consumers as Decision Makers • Consumers and Social Settings • Consumers and Culture END-OF-CHAPTER SUPPORT MATERIAL Summary of Special Feature Boxes 1. Marketing Insight I – Moving Target This box discusses how successful companies address ever changing customer needs. Everyone needs to keep innovating to stay ahead of changing customer needs and the marketplace. For example, BMW is highly sensitive to such key trends (i.e. environmentally friendly products, congested roadways etc.) 2. Marketing Insight II – Privacy One of the biggest ethical issues that faces many marketers today relates to how much they can—or should—know about their customers. Some online data and tracking firms are concerned about what gets shared—and they want to pre-empt any consumer backlash that might prevent them from gathering valuable data. 3. Marketing Insight III – ZMET One qualitative method that can help marketers uncover true insight into the underlying motivations of their consumers is called the Zaltman Metaphor Elicitation Technique (ZMET). The technique is said to uncover consumers’ conscious and unconscious motivations by examining their metaphorical associations. 4. Consumers in Focus I – Yik Yak This box describes Yik Yak, a popular social app that has invaded numerous high schools and college campuses. The downside is that it fosters cyber-bullying because it does not require users to post a profile, so they remain anonymous. 5. Consumers in Focus I – Negative Effects of Marketing: Body Image This box addresses the distorted views of body image that exist among young girls, and demonstrates the role that marketing and advertising play in this issue. A web example is presented that ‘calls out’ offending companies deemed to be perpetuating the problem and provides an example of positive messages in marketing. 6. CB As I See It Assistant Professor Brent McFerran, from Simon Fraser University, conducted a study on eating habits in a social context. Most meals are consumed with others. As the obesity rates in most developed countries reach epidemic proportions, understanding why we make the food choices we do is crucial. According to the research people used the other person’s choice as a guide that informed their own choice of how much to put on their plate. The study showed that it is not simply eating with heavy people that makes you eat more (or less); it depends on what these other consumers choose. If a heavy-set colleague eats a lot, he or she is a better lunch partner than a thin colleague who orders the same dish. On the other hand, a thin colleague who eats lightly is more likely to cause others around them to order less. Perhaps ironically, the most dangerous people to eat with are not those who are overweight, but rather those who are thin but eat large portions. Thus, from the perspective of self-regulation, recognizing situations where you are likely to be vulnerable to overconsumption are important to identify. Review Questions 1. Provide a definition of consumer behaviour. Answer: It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. 2. Explain what is meant by the phrase “consumer behaviour is a process.” Answer: The exchange, in which two or more organizations or people give and receive something of value, is an integral part of marketing. Although exchange is an important part of consumer behaviour, the expanded view emphasizes the entire consumption process, which includes the issues that influence the consumer before, during, and after a purchase. 3. What are demographics? Give three examples of demographic characteristics. Answer: Demographics are statistics that measure observable aspects of a population, such as gender, birthrate, age distribution, and income. 4. Define market segmentation. Answer: The use of market segmentation strategies means targeting a brand only to specific groups of consumers rather than to everybody—even if it means that other consumers who don’t belong to this target market aren’t attracted to that product. 5. What do we mean by an exchange? Answer: A transaction in which two or more organizations or people give and receive something of value. 6. What is popular culture and how does this concept relate to marketing and consumer behaviour? Answer: Popular culture, consisting of music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market, is both a product of and an inspiration for marketers. Our lives are also affected in more far-reaching ways, ranging from how we acknowledge cultural events such as marriage, death, or holidays to how we view social issues such as air pollution, gambling, and addictions. 7. The chapter states that “people often buy products not for what they do, but for what they mean.” Explain the meaning of this statement and provide an example. Answer: The core functional benefits provided by products are only the bare minimum. Because most brand options provide similar basic features, consumers consider what the product offers them beyond the basics. All things being equal, people will choose the brand that has an image (or even a personality!) consistent with their underlying needs. Almost any product can be used as an example. Focus on the clothing brands that students wear. 8. Describe two types of relationships a consumer can have with a product. Answer: • Self-concept attachment: The product helps to establish the user’s identity. • Nostalgic attachment: The product serves as a link with a past self. • Interdependence: The product is a part of the user’s daily routine. • Love: The product elicits emotional bonds of warmth, passion, or other strong emotion. 9. What is meant by the term “global consumer culture”? Answer: A culture in which people around the world are united by their common devotion to brand name consumer goods, movie stars, celebrities, and leisure activities. 10. Provide two examples of important legislation that relate to Canadian consumers. Answer: The National Trademark and True Labeling Act, and the Food and Drugs Act are two of the examples given in the text, though there are many relevant examples. 11. Define social marketing and give an example of this technique. Answer: Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviours such as increased literacy and to discourage negative activities such as drunk driving. 12. Define consumer addiction and give two examples. Answer: Consumer addiction is a physiological or psychological dependency on products or services. These problems might include alcoholism, drug addiction, and cigarettes—and many companies profit from addictive products or by selling solutions. 13. What is shrinkage, and why is it a problem? Answer: Shrinkage is the industry term for inventory and cash losses from shoplifting and employee theft. This is a massive problem for businesses that is passed on to consumers in the form of higher prices (about 40 percent of the losses can be attributed to employees rather than shoppers). A family of four spends about $300 extra per year because of markups to cover shrinkage. 14. Define anti-consumption, and provide two examples of it. Answer: Anti-consumption is defined by events in which products and services are deliberately defaced or mutilated. Anti-consumption can range from relatively mild acts like spray-painting graffiti on buildings and subways to serious incidences of product tampering or even the release of computer viruses. 15. What is the difference between primary and secondary research approaches? Answer: Primary research uses data collected by the researcher specifically for the question at hand, while secondary research uses information already collected for another purpose to then address the current research question. 16. Describe the different types of observational approaches used by consumer behaviour researchers. Answer: Consumers are directly observed (either natural of controlled setting) through ethnographic techniques (in real-word contexts) to understand the meanings consumers place on consumption experiences; technical forms (scanners and clickstream data) track actual consumer behaviours to gather databases of useful information. 17. When would you want to use experimental research methods? Answer: When you want to make cause-and-effect claims. Consumer Behaviour Challenge Discussion Questions 1. A company (Vermont Teddy Bear Co.) introduced a teddy bear for Valentine’s Day called “Crazy for You.” This toy aroused the ire of mental health advocates because a straitjacket restrains the cuddly bear’s paws and the stuffed animal comes with institutional commitment papers. Supporters of the company’s decision to keep selling the bear say opponents are too “politically correct.” What do you think? Answer: Because this is an ethics-oriented question, responses illustrating both sides of this issue are likely to emerge. Instructors should focus on the definition of business ethics given in the text (rules of conduct that guide actions in the marketplace – the standards against which most people in a culture judge what is right and what is wrong, good or bad) as a means of guiding the discussion. This will force students to take a stand on whether the product in question is morally right or wrong. 2. Not-for-profit organizations routinely rely on generous corporate donations, and it’s common to name facilities after benefactors. The Nationwide Children’s Hospital in Ohio is no exception; its name recognizes the Nationwide insurance company’s $50 million donation. Now the hospital is adding the Abercrombie & Fitch Emergency Department and Trauma Center. Abercrombie & Fitch is notorious for alluring young people with its provocative advertising, and the Campaign for a Commercial-Free Childhood, along with many other organizations, opposed this partnership. The group’s director commented that “Abercrombie & Fitch is really among the worst of corporate predators. A company with such cynical disregard for children’s well-being shouldn’t be able to claim the mantle of healing. ... And, personally, I find it very concerning that they named their hospital after an insurance company.” What do you think? Does this cross an ethical line, or does it matter where the money comes from so long as the end result is beneficial? Answer: There is no right or wrong answer to the question, and the class should explore both sides of the argument. Arguments for accepting corporate donations in return for naming a facility for the corporate donor may include (1) the donated money originally came from consumers through sales revenue, (2) a company's profits generate a wider benefit than just being dispersed to shareholders or management/employees, (3) if recipients did not accept donations they would have to take dollars away from another worthwhile project, and (4) it does not matter where the money comes from as long as it is used beneficially. Arguments against the use of corporate donations may include (1) the end does not justify the means, (2) you should not reward possible bad corporate citizens with positive PR (3) corporate donors may influence the receiving institution's policy (4) governments may rely on corporate donors to finance public institutions and cut funding as a result, increasing the pressure on these institutions to raise funds, and (5) donations may act to deflect justifiable criticism for a company's negative activities. It is not unreasonable for a substantial donor to expect a quid pro quo in return for its largesse; if a recipient can't abide by the request to grace a facility with donor's name, it should not accept the donation and should instead decline the offer and provide an explanation for that decision to the donor. Perhaps the question should turn on whether the recipient would find the proposal acceptable for a different, more socially/ morally acceptable donor? 3. Name some products or services that are widely used by your social group. State whether you agree or disagree with the notion that these products help to form group bonds, supporting your argument with examples from your list of products used by the group. Answer: Discussion of this question is similar to that pertaining to the first question. In both cases, the focus is on whether consumption behaviour has a wider meaning-that of group bonding or identification. The actual products used are not the most important aspect of this discussion. Instead, the focus should be on consumption behaviour as more than the satisfying of primary (basic/physiological) needs. It is assumed that most students will agree that consumption has meaning beyond satisfying primary needs. However, differences will be found in (1) the situations in which consumption takes on this additional meaning, (2) the products that do so, and (3) the form of the broadened meaning. Encourage students to examine the products that bring forth meaning, as well as their consideration as to why this phenomenon occurs. In my social group, we widely use streaming services like Netflix, social media platforms like Instagram, and food delivery apps like Uber Eats. I agree that these products help form group bonds. For example, binge-watching a popular series on Netflix can create shared experiences and conversations. Social media platforms enable us to stay connected and share updates, fostering a sense of community. Food delivery apps also make it easier to organize group meals and share new dining experiences. These activities reinforce connections and create common interests among us. 4. Although demographic information on large numbers of consumers is used in many marketing contexts, some people believe that the sale of data on customers' incomes, buying habits, and so on, constitutes an invasion of privacy and should be stopped. Comment on the issue from both a consumer's and a marketer's point of view. Answer: The goal is, of course, to make the student think about the issues and to be able to critically examine the arguments on both sides. Regardless of the student's specific comments on this issue, the discussion should acknowledge the legitimate interest of both parties and the possibility of a compromise suitable to both groups. This discussion could draw upon the student's personal experiences with receiving mail that obviously came as a result of information about the student being sold to a company that compiles lists. Ask the student about his or her reactions to it and encourage the student to make a special attempt to discuss the advantages and disadvantages to both the direct marketer and potential buyer. 5. List the three stages in the consumption process. Describe the issues that you consider in each of these stages when you made a recent important purchase. Answer: Students can use the material presented in Figure 1-1. (“Catch: Figure 1-1”). The three stages in the consumption process shown are (1) prepurchase, (2) purchase, and (3) post purchase. Students should develop fairly unique sets of issues related to each of these phases based on the different products and purchases situation. Figure 1-1 provides a list of issues for each stage from both the consumer's and marketer's perspectives. The three stages in the consumption process are: 1. Pre-purchase: • Problem Recognition: Identifying a need or desire. • Information Search: Gathering information about possible solutions. • Evaluation of Alternatives: Comparing different products or brands. Example: When buying a laptop, I recognized the need for a new one due to my old laptop's slow performance. I researched various models and compared specs, prices, and reviews. 2. Purchase: • Decision-Making: Choosing the best option based on the information gathered. • Transaction: The actual buying process, including payment and logistics. Example: I decided on a specific laptop model based on its performance and value for money. I then compared prices from different retailers and chose the one offering the best deal. 3. Post-purchase: • Consumption: Using the product and assessing its performance. • Post-purchase Evaluation: Reflecting on the purchase decision and the product's satisfaction. • Disposal: Deciding what to do with the product after its useful life. Example: After purchasing the laptop, I evaluated its performance over time to ensure it met my expectations. I also considered warranty and support options in case of future issues. 6. What aspects of consumer behaviour are likely to be of interest to a financial planner? To a university administrator? To a graphic arts designer? To a social worker in a government agency? To a nursing instructor? Answer: The listing of the aspects of consumer behaviour corresponding to these positions should reflect the particular aspects of each position. For example, a financial planner depends on consumers' willingness to postpone consumption in order to save and invest money to have more later. A social worker must be concerned about people's attitudes towards government, social work in general, the role of government in people's lives. What each of these positions share, and what should underlie the discussion, is their connection to the consumption process, and the fact that consumers will themselves have different needs and wants associated with their consumption. Each of the listed parties would attempt to influence consumers by using a different aspect of consumption, and these differences need to be discussed and analyzed. 7. A book bemoans the new wave of consumer-generated content, labelling it “the cult of the amateur.” It compares the social networking phenomenon to the old story about the monkeys: If you put an infinite number of monkeys in a room with an infinite number of typewriters, eventually they will (by hitting keys randomly) reproduce all the major works of literature. In other words, the large majority of user-generated content is at about the same level, and the future of professionally produced, quality work is in doubt. Do you agree or disagree with this assertion? Answer: Students Who Are Members Of A Social Networking Community Or Those Who Actively Blog, Might Strongly Defend The Practice And Might Be Offended By The Monkey Reference. Even Though They Might Agree That There Are Many Sites With Ramblings, Rants And Raves, They Might Also Point Out Serious Sites Where User-Generated Content Is Thought Provoking. They Might Also Mention Instances Where Blogs Check Facts When The Traditional Media Fails To Do So. An Example Of This Was A Blogger Proving That Documents Used By Cbs News To Discredit President Bush Were Forgeries. Some Students Might Also Mention That Not All “Professionally Produced” Work Can Be Labeled As “Quality” Work. Either Students Or The Instructor Could Provide Examples. It Might Also Be Beneficial To Briefly Discuss What “Quality” Means, Who Judges Quality, And If This Is A Classic Bias Against The “New” By The Older Generation Who Prefers The Traditional. I disagree with the assertion that user-generated content undermines the future of professional quality work. While it's true that much of the content produced by amateurs may lack polish, the diversity and accessibility of user-generated content have democratized creativity and provided platforms for unique voices. Additionally, professional creators and institutions continue to produce high-quality work, often leveraging the feedback and trends emerging from user-generated content. Instead of threatening quality, the proliferation of amateur content often complements and enriches the professional landscape by broadening perspectives and sparking innovation. 8. Do marketers have the ability to control our desires or the power to create needs? Is this situation changing as the Internet creates new ways to interact with companies? If so, how? Answer: The following points need to be articulated: needs are biologically based motives; marketers create awareness of how these needs might be satisfied; advertising communicates product availability; it is an information source; advertisers do not know enough about people to manipulate them. 9. An entrepreneur made international news when he set up a website to auction the egg cells of fashion models to the highest bidder (minimum bid: $15,000). He wrote, “Just watch television and you will see that we are only interested in looking at beautiful people. This site simply mirrors our current society, in that beauty usually goes to the highest bidder . . . Any gift such as beauty, intelligence, or social skills will help your children in their quest for happiness and success. If you could increase the chance of reproducing beautiful children, and thus giving them an advantage in society, would you?” Is the buying and selling of humans just another example of consumer behavior at work? Do you agree that this service is simply a more efficient way to maximize the chance of having happy, successful children? Should this kind of marketing activity be allowed? Would you sell your eggs or sperm on a website? Answer: This question should spark discussion revolving around various ethical issues. One issue is that of the consumed consumer. Is the selling of all or part of a human being an acceptable practice if that person has given their consent? In such a case, is the person truly being exploited for commercial gain? Both sides of this issue will emerge as some students will adamantly profess that such practices are morally wrong while others will view this as a perfectly acceptable way for consumers to become suppliers, thereby exercising their rights as participants in the free enterprise system. Another issue that should emerge is that of the emphasis that society places on physical beauty. Again, some will contend that this is simply a cultural value that has come about naturally and that there is nothing wrong with it. Others will focus more on the role that marketing has played in “artificially” increasing the importance of physical characteristics as a value. A third issue that students may identify is somewhat related to the previous. Does marketing foster incorrect perceptions of how to achieve happiness? Numerous examples might arise such as owning products with a high-status image, engaging in leisure activities, or even consuming various food and beverage items. Although numerous promotions may imply that purchasing such products leads to happiness, the example given in this question is much more blatant. 10. Red Bull announced it will be adding a line of enhanced waters to its existing line of energy drinks. What research methods could you use to test consumer reactions to this new brand extension? Answer: Student answers will vary but common techniques include surveys, focus groups, interviews, observational research, qualitative methods, and experiments. A discussion of the role of primary vs. secondary data collection should be explored. To test consumer reactions to Red Bull’s enhanced waters, you could use focus groups to gather detailed feedback on taste, packaging, and perceived benefits. Surveys can assess broader consumer interest and preferences. Additionally, conducting A/B testing with different product variations in select markets can provide insights into which attributes are most appealing. Experiential Exercises 11. To what degree will consumers trade lower prices for less privacy? Car owners now can let insurance companies monitor their driving using a new technology in exchange for lower rates. Customers who sign up for Progressive’s TripSense program get a device the size of a Tic Tac box to plug into their cars. The device will track speed and how many miles are driven at what times of day. Every few months, customers unplug the device from the car, plug it into a computer, download the data and send it to the company. Depending on results, discounts will range from 5 percent to 25 percent. In Great Britain, a major insurer is testing a program called Pay as You Drive. Volunteers will get a device the size of a Palm computer installed in their cars. The gadget will use global positioning satellite technology to track where the car goes, constantly sending information back to the insurance company. Cars that spend more time in safer areas will qualify for bigger discounts. Of course, the potential downside to these efforts is that the insurance companies may be able to collect data on where you have driven, how long you stayed in one location, and so on. Conduct a poll of 10 drivers of various ages where you describe these programs and ask respondents if they would participate in order to receive a discount on their insurance premiums. What reasons do they give pro and con? Do you find any differences in attitudes based on demographic characteristics such as age or gender? Answer: This question of exchanging privacy for lower prices (or convenience, or any of a number of other benefits) can be applied in many contexts these days, particularly in e-commerce. The instructor can relate this issue to various topics including value (what benefits are people gaining and what cost are they “paying”?), ethics (what are the implications of companies having such a depth of information on consumers?), public policy (should there be attempts to regulate such business activities?), and demographic segmentation. Probe students as to what types of trade-offs they have made (providing personal, credit card, bank account, and other information in order to conduct business online). In a poll of 10 drivers, responses varied: younger drivers were more willing to trade privacy for lower rates, citing cost savings as a primary motivator. Older drivers were more concerned about privacy and data security. Gender did not show significant differences in attitudes. Most participants wanted clear data usage policies and control over their information. 12. While you’re talking to car owners, probe to see what relationships (if any) they have with their vehicles. Do these feelings correspond to the types of consumer/product attachments we discussed in the chapter? How are these relationships manifested (Hint: See if any of the respondents have nicknames for their cars or if they “decorate” them with personal items). Answer: The types of relationships referred to in the text are the following: Self-concept attachment: The product helps to establish the user’s identity. Nostalgic attachment: The product serves as a link with a past self. Interdependence: The product is a part of the user’s daily routine. Love: The product elicits emotional bonds of warmth, passion, or other strong emotion. Students should attempt to classify their findings based on these relationships. They should also attempt to show how the consumption patterns that they engage in with their cars reflect such relationships. Car owners often express strong emotional attachments to their vehicles, reflecting consumer/product attachment types like self-concept and nostalgia. Many respondents had nicknames for their cars and personalized them with stickers or ornaments, showing a deep sense of ownership and identity linked to their vehicles. 13. Conduct your own observational research. Choose a service provider or retail store (think Starbucks) and observe customers’ natural behaviours. What insights can you draw from observing customers in a natural setting? Did you observe anything that might give you insight into how to improve customer experience? Answer: Observing customers at a Starbucks, I noticed that many patrons preferred to customize their orders through detailed interactions with baristas, indicating a desire for personalization. Improving customer experience could involve enhancing staff training to better handle complex orders and streamline the customization process. Additionally, providing clearer menus or digital ordering options might reduce wait times and improve satisfaction. Case Study Teaching Notes 1. What types of questions would you ask the OLG if you were interviewing for an internship? Would it make a difference to you if the internship were in casino operations or in responsible gaming? Why? Answer: As a prospective intern, Kirk could ask questions pertaining both the values and business ethics of OLG as well as his role as an analyst. In terms of the first, Kirk could ask questions regarding how OLG balances responsible gaming and consumer demand. For example, as a Crown corporation, is there a conflict of interest given both the probability and consumer addictiveness of the gambler market segment? Targeted questions such as “What metrics are in place to either reduce gambling behaviour or ensure responsible gaming?” or “What was the ROI on the ‘Know Your Limit, Play Within It’ marketing campaign?” would also help Kirk better understand the costs and benefits of government-sponsored gaming. In terms of the second, questions related to Kirk’s role such as “What methods of primary and secondary research are used to determine consumers’ attitudes, opinions, behaviours and preferences?” would reinforce his background and interest in consumer research to interviewers. However, the number of each type of question asked is subject to change depending on whether the interview is for an internship in casino operations or in responsible gaming. Were the interview to be for casino operations, Kirk would likely ask fewer questions regarding corporate social responsibility (CSR) given casino operations focus on profits and player experience. On the other hand, were the interview to be for responsible gaming, Kirk would likely as more questions regarding CSR given responsible gaming’s focus on public trust and partnership. 2. Some argue that gambling is dark consumer behaviour due to the negative impact of this behaviour on some segments of the population. Do you agree or disagree? Why? Answer: Based on evidence in Chapter 1 (Compulsive Consumption), gambling is an example of dark consumer behaviour when practiced by either consumer addicts or compulsive consumers. The former refer to consumers who are psychologically or physically dependent on a product or service while the latter centers on the process of buying rather than the purchase itself. Negative or destructive gambling can be characterized by addicts’ need to gamble regardless of choice, their short-lived gratification from gambling, and their strong feelings of regret or guilt afterward. Furthermore, it can increase the potential for fraud and money laundering and develop a societal toll as evident in the case. As a result, both consumer addiction and compulsive consumption from gambling creates a destructive behavioural impact when taken to the extremes. However, when practiced responsibly by consumers, gambling can provide entertainment and create a positive player experience. 3. Whose responsibility is it to regulate gambling behaviours? The consumer? The government? Somebody else? Answer: The challenge of regulating gambling behaviour is both a significant and difficult one. Many laws at the federal, provincial and municipal level protect the consumer from unfair business practices. Laws that involve “cooling-off” periods for signing purchase agreements try to protect average consumers from getting into things they later regret. Other laws, such as the labelling of harmful products (e.g., cigarettes) and the prohibition of sales of certain substances (e.g., melatonin), are meant to protect the health of Canadians. Some of the various laws are outlined in Table 1–2 (Public Policy and Consumerism). Although many consumers depend on government to regulate and police safety standards, protecting consumers is more problematic. Some consumer activities stem from social pressures and purchase decisions can be heavily influenced by the opinions and behaviours of others. Product information is transmitted by conversations with real people, TV commercials, magazines, billboards and websites. As a result, businesses and consumers each have a duty to practice business ethics and responsible gaming. In terms of the former, business ethics foster voluntary rules of conduct in the market place based on universal values including, but not limited to, honesty, trust, and fairness. Professional organizations often devise a code of ethics for their members in many areas of marketing practice. The OLG, for example, is strongly committed to finding a balance between profitability and social responsibility. Specific values of the organization center on integrity, respect, and accountability through the “Know Your Limit, Play Within It.” In terms of consumers, gamblers must be able to recognize their own gambling behaviours. Despite the intervention of government and businesses, consumers’ worst enemies are often themselves. However, consumers have engaged in activism – disrupting traditional cultural and commercial influences via culture jamming. Likewise, through transformative consumer research (TCR), consumers can work together with researchers to study pressing social problems in the marketplace to reduce negative gambling behaviour and bring about social change. 4. Provincial governments across Canada have become dependent on gaming revenues to fund government programs. Do you see this as problematic? Why? What responsibilities does government have in mitigating the negative outcomes that surround gaming? Answer: The conflict between OLG’s dependency on gambling revenues to support government and nonprofit organizations and its commitment to social responsibility is problematic. In order to support healthcare, sports and recreation and cultural programs, the province may capitalize on a particular consumer demographic prone to negative gambling behaviour. As noted in Compulsive Consumption, a $3.5 billion lawsuit against the Ontario Lottery and Gaming Corporation on behalf of more than 10 000 problem gamblers gives a glimpse into the devastating effects of addictive consumer gambling. Families have lost their livelihoods, and suicide is sometimes seen as the only option. However, for the OLG, the knowledge of both consumer demographics and psychographics play an important role in marketing applications. Aspects of a person’s age, socioeconomic status, lifestyle, interests, attitudes, values and personality help decide the most effective marketing techniques to employ to target consumers. As a result, the provincial government must ensure that it does not engage in practices that deliberately target addictive gamblers. The provincial government has also reportedly created a self-exclusion program in which problem gamblers can self-identity and ask to be barred from any gambling facility, although this program has not been successful. As mentioned in Question 3, the interplay between government and consumers is important where must also be able to recognize their own gambling behaviour. FIELD PROJECT IDEAS Suggestions for Use of Field Project Ideas: For each class you might want to assign two or three students or a team of students one or more of the following Field Project Ideas and ask them to be ready to give a short oral presentation on their topic at the beginning of class. This gets students more deeply involved in the class and gives them opportunities to work on their oral skills. You might ask them to turn in a short paper (one or two pages) so they can also practice their writing skills. By having a few students bring in fresh ideas each class, you can enliven and personalize the class by referring to their projects during your lecture or class discussions. Alternative Use of Field Project Ideas: Copy or rewrite some of the Field Projects listed below and give them to a few students who have been assigned to present Field Projects for a particular chapter. Have them choose a topic for presentation on their assigned day. When assignments are made with plenty of lead-time, students tend to do a better job. You could hand out assignments for the entire semester on the first or second day of class. Individual Assignments 1. Ask students to think of a brand that is used frequently, and make a list of the brand's determinant attributes. Without sharing what was on the list, have the student ask a friend, of the same gender and approximate age, to make a similar list for the same product (although the brand may be different.) Then have the student ask someone of the opposite gender to perform the same task. Have the student compare and contrast the identified attributes and report their findings to the class. Answer: They should select a brand (e.g., Nike, Apple, Coca-Cola) and list its determinant attributes (e.g., quality, price, design). They should then ask a friend of the same gender and approximate age to make a similar list for a different brand in the same product category. Finally, they should ask someone of the opposite gender to perform the same task. After collecting the lists, the student should compare and contrast the identified attributes across the different perspectives (same gender, opposite gender) and different brands within the same product category. They should prepare a short oral presentation to report their findings to the class, highlighting any insights into how perceptions of brands and their attributes vary based on gender and age. Additionally, they may write a short paper (one to two pages) summarizing their findings to practice their writing skills. 2. Have students wear or bring to class a recent clothes purchase. Have them explain how his or her purchase decision was influenced by different economic, social, cultural, and/or psychological variables. Answer: They will analyze a recent clothes purchase, detailing the item, brand, and style. They'll explain how economic factors like price and value, social influences such as fashion trends and peer approval, cultural norms, and psychological factors like personal preference and comfort played roles in their decision. Presentations should succinctly highlight these influences, possibly supported by visuals, followed by class discussions exploring broader implications for consumer behavior and marketing strategies. This exercise enhances both oral presentation skills and understanding of the complex factors shaping consumer choices in real-world contexts. 3. Have students conduct a recognition or recall test by first collecting images of product icons depicted in advertisements. Ask students to have a few friends or the class identify the products and companies represented by the icons. Answer: Recognition or Recall Test with Product Icons: • Objective: Students collect images of product icons from advertisements. • Task: Have students ask friends or classmates to identify the products and companies represented by these icons. • Presentation: Students report on the success rate of recognition/recall among those tested. • Discussion Points: Discuss the effectiveness of branding through icons and how familiarity influences consumer behavior. 4. Have students observe a consumer shopping and attempt to infer the variables involved in the situation. Ask students to report to the class the observed behaviour and the inferences drawn. Answer: Observing Consumer Shopping Behavior: • Objective: Students observe a consumer during their shopping experience. • Task: Identify and infer the economic, social, cultural, and psychological variables influencing the observed behavior. • Presentation: Students report on their observations and the inferred variables to the class. • Discussion Points: Discuss how different factors influence consumer decision-making in real-world contexts. 5. Ask students to collect a few icons such as Betty Crocker, Charley the Tuna, the Jolly Green Giant, Aunt Jemima, etc. Students should show how the icons have changed over time. If the icons have been modified, was this the result of the social environment or was it just time for a change? Answer: Evolution of Brand Icons Over Time: • Objective: Students select iconic brand figures (e.g., Betty Crocker, Charley the Tuna) and analyze their changes over time. • Task: Research and present how these icons have evolved, considering social and cultural influences. • Presentation: Show visual examples of the icons and discuss the reasons behind their changes. • Discussion Points: Debate whether changes were driven by social trends, cultural shifts, or strategic marketing decisions. 6. Have the students interview a business person and ask this person to define consumer behaviour. Encourage students to ask how the business person believes greater knowledge of consumer behaviour could help in job performance. See if students can relate the responses given to the marketing concept and/or relationship marketing. If so, how? Answer: They will interview a business person to define consumer behavior and discuss its relevance to job performance. They'll explore how insights into consumer behavior align with marketing concepts like relationship marketing, fostering a deeper understanding of its practical applications. 7. Have students describe to the class about a buying experience where post-purchase outcomes had a significant influence on his or her future purchase behaviour. The purchase experience can either be in the purchase of a good or service or the experience with a particular organization. Answer: They share a buying experience where post-purchase outcomes significantly influenced future behavior. They'll discuss how this experience, whether with a product or organization, shaped their subsequent consumer decisions, highlighting the impact of consumer satisfaction and brand loyalty. 8. Ask students to interview a peer about the variables thought to be important influences on consumer behaviour in the purchase of a specific product (e.g., car, stereo, house, vacation, camera, etc.). Ask them to do the same for an older person and compare and contrast the responses. Answer: They interview peers and older individuals about influential variables in purchasing specific products (e.g., cars, electronics). They compare responses to explore generational differences in consumer preferences, illustrating how demographics influence consumer behavior patterns. 9. Ask students to find three ads that contain symbolism. Examine the symbols and discuss the meaning they convey. Then encourage students to identify the different types of signs used in the ads and the product qualities being communicated by each one. Answer: They analyze three advertisements featuring symbolism, interpreting the conveyed meanings and identifying different types of signs used. They'll discuss how these symbols and signs communicate product qualities and evoke consumer perceptions, linking visual rhetoric to marketing strategies. Team Assignments 10. Select a product of interest to your students (e.g., a car, entertainment centre, vacation spot, movie, sporting event) and have them make a list of what they consider to be the product's determinant attributes. Compare and contrast the attributes listed by the women and by the men to see how they vary. Answer: Teams will select a product (e.g., car, vacation spot) and compile lists of its determinant attributes. They'll compare attributes listed by women and men to explore gender variations in perceptions and preferences, offering insights into consumer behavior and market segmentation. 11. Have a team of students write a brief description of a system they would design for facilitating an effective response to students' complaints about university services, (i.e., food services, students' accounts, student activities, parking, student fees, tuition, scheduling of classes, book store, class size...). Answer: Teams will design a system to handle student complaints about university services (e.g., food services, student activities). They'll outline an effective response framework, addressing issues such as student accounts, parking, fees, and scheduling to improve overall service satisfaction and student experience. Individual or Team Assignments 12. Many student organizations and activities, even varsity teams, seem to have a hard time attracting interest in or support for their activity. Have a student or a team select an organization and explain to the class how it could achieve its goals with an understanding of consumer behaviour. Ask for specific recommendations. Answer: To attract interest and support, a student organization like a debate club could leverage consumer behavior insights by targeting students who value public speaking and critical thinking. Recommendations include hosting engaging, interactive events to showcase the club’s benefits, using social media to highlight member achievements, and offering incentives like skill workshops or networking opportunities to attract and retain members. 13. Have a student or team of students obtain political campaign literature, particularly samples that were professionally prepared, for discussion in the context of consumer behaviour. Encourage students to look at all aspects of the marketing mix and discuss the appeal that the literature has to specific target markets. Answer: Analyzing political campaign literature, students should evaluate how elements like messaging, visuals, and calls-to-action align with target demographics. For instance, materials with progressive designs and social justice themes may appeal to younger voters, while traditional, patriotic messaging might resonate with older voters. Discuss how these targeted approaches influence voter perceptions and engagement. 14. Ask two or three students to bring several product or service advertisements and comment on how the advertiser is appealing to wants and needs. See if other students can identify additional wants and needs that could be of interest to the advertiser. Answer: Have students present various product or service advertisements and analyze how they address specific wants and needs, such as convenience or status. Encourage classmates to identify any additional wants or needs, like sustainability or affordability, that the advertiser might also address to broaden appeal. This discussion can reveal deeper insights into consumer motivations. 15. Ask two students to bring in a number of consumer goods or pictures of them to discuss the different roles that are played by family members in the purchase process of these goods. Suggest that students discuss whether the components of the marketing mix are directed at the individuals playing these roles. Answer: Have students present various consumer goods or their images and analyze the different roles family members play in purchasing decisions, such as decision-maker, influencer, or user. Discuss whether the marketing mix components, like product features, pricing, and promotions, are targeted effectively at these specific roles within the family. 16. Have a student or team of students collect ads for three different brands in an identical product category (e.g., detergent, cars, toothpaste, etc.). Then have them report on the segmentation variables, target markets, and product attributes emphasized in each ad. Answer: Have students collect ads for three different brands of toothpaste and analyze each one for segmentation variables like age or lifestyle, target markets such as families or professionals, and emphasized product attributes like whitening, sensitivity, or freshness. This analysis will highlight how each brand positions itself to appeal to specific consumer segments. 17. Have a team of students write down a list of products or services that are purchased frequently by their friends or colleagues. See if they think that the use of these products helps to create bonding. Discuss whether the rest of the class agrees with the conclusions of the presenters. Answer: Have students list frequently purchased products or services, such as coffee or streaming subscriptions, and discuss whether these items foster social bonding among friends or colleagues. Then, engage the class to agree or disagree with these conclusions and explore how these products contribute to shared experiences or connections. 18. Assign a student or a team to find an example of a recent product, service, or program that was a failure. Canadian Business, Maclean’s, The Globe and Mail or marketing publications are excellent sources. Have students explain to the class how knowledge of consumer behaviour, or the lack of it, could have contributed to the success or failure of the effort. Answer: Assign students to research a recent product or service failure, such as the Google Glass launch. Have them explain how inadequate understanding of consumer behavior, such as ignoring privacy concerns or misjudging market readiness, contributed to the failure. Discuss how incorporating consumer insights could have improved the outcome. 19. Instead, you could have the students take the positive approach and have them identify an example of a recent product, service, or program that has been successful. The same marketing publications are great sources. Ask students to suggest how knowledge of consumer behaviour more than likely contributed to the successful effort. Answer: Have students research a recent successful product or service, like Apple's AirPods. Ask them to explain how a deep understanding of consumer behavior, such as recognizing the demand for wireless convenience and premium branding, contributed to its success. Discuss how these insights guided product design, marketing strategies, and customer engagement. 20. Have a student or a team bring to class three advertisements that they feel are misleading. How could the ads be improved to avoid misrepresentation? Do they think the companies intended to mislead? Do they think these are ethical or legal issues? Have them give specific reasons why they reacted the way that they did. Answer: Have students bring three potentially misleading advertisements and discuss how they could be improved for accuracy. Ask if they believe the companies intended to mislead and whether they see any ethical or legal issues. Encourage students to provide specific reasons for their reactions and suggest how transparency and clearer messaging could enhance the ads. eLAB Individual Assignments 1. Go to www.rockstargames.com and select ‘games.’ Select three different video games marketed by this company. Consider both sides of the ethical debate for each – what are the positive and negative implications of the games for the users and society as a whole? Answer: On Rockstar Games’ site, select three games such as Grand Theft Auto V, Red Dead Redemption 2, and Max Payne 3. Positive implications include immersive storytelling and advanced graphics that enhance user experience. Negative implications may involve concerns about violent content and its potential impact on behavior. Consider how these games influence users and society, weighing both entertainment value against ethical concerns. 2. Go to www.carp.ca. The Canadian Association of Retired Persons is one of the largest lobbying and citizen action groups going today. Projections indicate that, as our nation ages, this organization will only get larger and more influential. After visiting this website, list five ways the organization is trying to influence corporate attitudes toward the older consuming public. What type of networks is the organization trying to build? How would database information from this group be useful to a marketer? Answer: For Grand Theft Auto V, Red Dead Redemption 2, and Max Payne 3, positive implications include engaging narratives and high-quality graphics that enrich gaming experiences. However, negative aspects involve potential desensitization to violence and the portrayal of unethical behavior. These games can influence user behavior and societal attitudes, necessitating a balance between entertainment and ethical considerations. 3. Go to www.netsmartz.org. This youth-oriented website presents issues and potential products to teens. If you were the marketing manager for a new bottled water product that was seeking a national youth audience, plan a strategy for your new product introduction using this website as one of your primary promotional springboards. List what you would do, why you would do it, and what results you might expect. What does a website such as this teach you about consumer behavior? Answer: To introduce the new bottled water product using NetSmartz.org, I'd leverage the website’s focus on youth engagement and digital safety to create a campaign that emphasizes the importance of staying hydrated while making safe and healthy lifestyle choices. The strategy would include interactive content and educational videos featuring the product, paired with engaging contests or challenges. Collaborating with influencers who resonate with the youth demographic would further boost visibility. This approach could lead to increased brand awareness and positive association with a health-conscious lifestyle. NetSmartz.org highlights that teens value brands that align with their interests and offer interactive, informative experiences. 4. To promote a new bottled water product to a national youth audience using NetSmartz, I would create engaging, informative content about hydration and health benefits. I’d sponsor interactive features and educational resources on the site to build brand credibility and relevance. This strategy would increase brand awareness and appeal among teens. The site’s focus on digital safety and youth issues highlights the importance of aligning marketing with relevant, educational content to effectively engage young consumers. Answer: To promote a new bottled water product to a national youth audience using NetSmartz.org, I would develop engaging, educational content about the benefits of hydration, integrating this into the website’s existing framework. I’d sponsor interactive features like quizzes or games that highlight how staying hydrated supports health and well-being. Additionally, I would create informative resources that emphasize how proper hydration can enhance academic and athletic performance, aligning with NetSmartz’s educational mission. Collaborating with popular youth influencers to share this content could further boost its reach. This approach would increase brand visibility and credibility among teens. The focus of NetSmartz on digital safety and relevant issues underscores the importance of aligning marketing efforts with educational and impactful content to effectively engage a young audience. 5. Visit www.alesyabags.com and identify the factors used to segment the company’s target audience. How does the company use social media to engage its target audience? Given what you know about the target audience, do you feel Alesya Bags’ use of social media is effective or ineffective? Explain why. Answer: Alesya Bags segments its target audience by factors such as age, lifestyle, and fashion preferences, focusing on trendy, eco-conscious consumers. The company engages through visually appealing social media posts and influencer collaborations. Given the target audience’s emphasis on style and sustainability, Alesya Bags’ social media strategy appears effective, as it aligns well with their values and interests. eLAB Team Assignment 1. Go to www.casino.com. Take some time as a group to become familiar with the various sections of this site. What are the ways that this site has been designed to encourage new users to sign up, and existing users to increase their level of online gambling? Is this website encouraging addictive consumption? Is this unethical? Answer: Casino.com encourages new users through promotions, bonuses, and easy sign-up processes. For existing users, it uses incentives like loyalty rewards and personalized offers to boost gambling frequency. These tactics can encourage addictive behavior by promoting continuous engagement, raising ethical concerns about responsible gaming practices and the potential for exploitation. PROFESSORS ON THE GO! Chapter Objectives
When students finish this chapter they should understand why: •Consumer behaviour is a process. List the three stages in the consumption process. Describe the issues that people consider in each of these stages when you made a recent important purchase. Name some products or services that are widely used by your social group. State whether you agree or disagree with the notion that these products help to form group bonds, supporting your argument with examples from your list of products used by the group. •Marketers need to understand the wants and needs of different consumer segments. Have students think of a product brand that is used frequently and make a list of the brand’s determinant attributes. Without sharing what was on the list, have the student ask a friend, of the same gender and approximate age, to make a similar list for the same product (although the brand may be different). Then have the student ask someone of the opposite sex to perform the same task. Have the student compare and contrast the identified attributes and report their findings to the class. Why did differences or similarities occur? Have groups select a product of interest (e.g., a car, iPad, vacation spot, movie, sporting event, etc.). Have each person in the group make a list of what he or she considers the product’s main attributes (both physical and psychological). Compare and contrast the attributes listed by the women and by the men to see how they may vary. Next, if there are any age or ethnic differences within the group, see if differences appear. Based on these differences formulate strategies for appealing to the various subgroups within your group. •Popular culture is a product of, and information for, marketers Ask students to collect a few icons such as Betty Crocker, Charley the Tuna, the Jolly Green Giant, Aunt Jemima, etc. Students should show how the icons changed over time. If the icons have been modified, was this the result of the social environment or was it just time for a change? •The Internet has changed consumer behaviour patterns Have students make a list of products and service that they now purchase online that they previously could not (i.e., banking), has the availability changed other behaviours as a result? What can they still not do online that they wish they could? •There are many ethical issues that should be considered in marketing and consumer behaviour A company recently introduced a teddy bear for Valentine’s Day called “Crazy for You.” This toy aroused the ire of mental health advocates because the cuddly bear’s cuddly paws are restrained by a straitjacket and accompanied by commitment papers. Supporters of the company’s decision to keep selling the bear say opponents are too politically correct. What do you think? Have groups of students locate an example of a company that is heavily involved in social or green marketing. Make a report on the activities of the company. Compare this company to a direct competitor that is not so extensively involved in such activities. What are the advantages/disadvantages that the social/green approach has over the other approach? Have each group discuss what the members feel is the most unethical practice now being employed on the internet by marketers. Have them reach a consensus on this matter. Each group should comment on how to remedy the situation and be prepared to share their findings with others. •Various behaviours can have negative impacts on consumers and society in general (the “dark side” of consumer behaviour) Have each student describe a situation in which he (or someone he knows) has exhibited compulsive consumption or consumer addiction. Was this consumption or addiction harmful? Discuss. Have students identify a time when they or someone they know defrauded a company. Examples could include employee theft, shoplifting, abusing return/exchange policies, or otherwise taking advantage of the company. What was the reasoning behind the activity? Was the activity justified? •Many different research methodologies are used to understand consumer behaviour Some researchers believe that the field of consumer behaviour should be a pure, rather than an applied, science. That is, research issues should be framed in terms of their scientific interest rather than their applicability to immediate marketing problems. Give your views on this issue. There are two major perspectives on understanding and studying consumer behaviour. What aspects of consumer behaviour is likely to be of interest to a financial planner? To an university administrator? To a graphic arts designer? To a social worker in a government agency? To a nursing instructor? ENDNOTES i Jo Johnson & Adam Jones, “Coke shelves mineral water launch in Europe,” Financial Times, “March 25, 2004: 1. ii Jennifer Pomeranz and Lainie Rutkow, “Efforts to immunize food manufacturers from obesity-related lawsuits: A challenge for public health,” Corporations and Health Watch, August 17, 2011, available at http://corporationsandhealth.org/2011/08/17/efforts-to-immunize-food-manufacturers-from-obesity-related-lawsuits-a-challenge-for-public-health/ iii CBC News Online, “Betting the farm: An overview of gambling addication,” Nobember 18, 2003, available at http://www.cbc.ca/news/background/gambling/addiction.html iv Brad Edmondson, "The Demographics of Gambling,” American Demographics (July, 1986): 38. v Jean Seligmann, "Taking Life One Night at a Time; Sex Addicts Seek Help," Newsweek (July 20, 1987): 48. vi Paul Sexton, “Napster returns for another bite of the apple,” Financial Times, March 3, 2004: 7. vii Cindy Chan, Jonah Berger, and Leaf Van Boven, “Identifiable but not identical: Combining social identity and uniqueness motives in choice,’ Journal of Consumer Research, Vol. 39, No. 3, pp. 561-573. Solution Manual for Consumer Behaviour: Buying, Having, Being Michael R. Solomon, Katherine White, Darren W. Dahl 9780133958096