CH-13 Decision Making II: Alternative Evaluation and Choice – CB Consumer Behaviour : Book Guide

Chapter 13 Decision Making II: Alternative Evaluation and Choice End of Chapter Material Review Questions (*) Indicates material on prep cards. 1. Describe evaluative and determinant criteria. What is the difference between them? What attributes do you consider to be evaluative and determinant criteria in the selection of a new apartment? Answer: Evaluative and determinant criteria both play important roles in consumer decision processes. Evaluative criteria are the attributes, features, or product benefits that consumers consider when evaluating possible solutions to a problem. These criteria include features or benefits associated with a potential solution. Determinant criteria are the criteria that are most carefully considered when an actual choice is made. Several attributes may be evaluative when selecting an apartment including rent, security, location, and amenities like a fitness center. Rent is likely to be a determinant criterion that most heavily influences choice for most students. 2. What roles do features and benefits play in the evaluation of alternatives? Do consumers pay more attention to features or benefits? How can benefits be utilitarian or hedonic? Answer: Both features and benefits play a role in the evaluation of alternatives. Usually, consumers seek benefits rather than features. The presence of a feature allows a certain benefit to be obtained, so both benefits and features are important. Ultimately, however, it is benefits that consumers seek. Benefits can deliver practical solutions to problems, thereby being utilitarian in nature. They can also bring about emotional or symbolic outcomes that are associated with consumption. In this way, benefits can be classified as being utilitarian or hedonic. 3. *What is the relationship between utilitarian and hedonic value and the evaluation of alternatives? Answer: Consumers seek both utilitarian and hedonic value and this emerges in the evaluation of alternatives process. Value plays a very important role in alternative evaluation. To evaluate literally means to set a value or worth to an object. As the chapter points out, benefits represent an important part of the value equation, and value is a function of both benefits and costs. Both utilitarian and hedonic value influence alternative evaluation. 4. Describe how utilitarian attributes and hedonic attributes deliver value to consumers. Answer: Utilitarian attributes deliver value to consumers by providing functional or economic benefits to consumers. A safe, for example, provides the benefit of storage of valuable items. Hedonic attributes deliver hedonic benefits. Expensive clothing provides hedonic benefits. 5. What role does product categorization play in the alternative evaluation process? Answer: When consumers identify a new product or object, they rely on the knowledge they possess regarding the relevant product category, and knowledge about the existing category is transferred onto the novel item. Consumers generally consider categories first at the superordinate level and then at subordinate levels. Comparisons become more detailed as the consumer considers subordinate levels. 6. What is the difference between perceptual and underlying attributes? How are they related to one another? Answer: Perceptual attributes are visually apparent and easily recognizable. Underlying attributes are not. Consumers often infer the presence of underlying attributes from the presence of perceptual attributes. Perceptual attributes therefore serve as signals for underlying attributes. 7. *At what level do product comparisons across features or attributes take place according to the product categorization approach? What examples can you think of for product comparisons at this level? Answer: Product comparisons at the feature or attribute level takes place at the subordinate level. Student responses will vary, but the book uses the example of sport drink comparisons by feature across the G, Powerade, and All-Sport brands. 8. Discuss the major types of non compensatory decision-making rules. How are they different from compensatory rules? Answer: Compensatory rules differ from non compensatory rules in that they allow for a product that performs poorly on an attribute to be eventually selected. The reason is that the attribute that is poorly rated is compensated for by another attribute that is rated highly. Non compensatory rules set cutoff points for attributes. The conjunctive rule is a rule where the option selected must surpass a minimum cutoff point on all relevant attributes. The disjunctive rule is a rule where the option selected surpasses a relatively high cutoff point on any attribute. The lexicographic rule is a rule where the product that is selected scores the highest on the most important attribute. The elimination-by-aspects rule is a rule where the consumer begins evaluating options by first looking at the most important attribute and seeing if each brand exceeds a minimum cutoff point. The consumer then moves to the next most important attribute and continues the evaluation process until a choice is made. 9. *In what ways does the conjunctive rule differ from the elimination-by-aspects rule? Answer: The conjunctive rule is a rule where the option selected must surpass a minimum cutoff point on all relevant attributes. The elimination by aspects rule is a rule where the consumer begins evaluating options by first looking at the most important attribute and seeing if each brand exceeds a minimum cutoff point. The consumer then moves to the next most important attribute and continues the evaluation process until a choice is made. The choice will be the same if the same cutoff point is used. 10. Which non compensatory rule is most common? Answer: Research reveals that the lexicographic model is the most common rule used by consumers. However, it is most appropriate to answer this question by commenting that a combination of rules is probably the most common occurrence in consumer decision making. Group Activity *Form groups of size five to six (depending on class size) and assign each group a specific product category. There assignment will be to visit a local retailer and evaluate three different options of the category using the four non compensatory rules and the ATO approach that was discussed in Chapter 7. The following list of products provides examples: TV’s, car stereos, washing machines, laptops, refrigerators, automobiles, motorcycles, cell phones, video game consoles, watches, and apartment complexes. Ask students how realistic the various non compensatory approaches were in their opinion. Also, ask them to compare the non compensatory approaches with the ATO approach. Which did they think was most appropriate? Have them report their findings to class. Answer: Depending on the choice of the product. The four rules: conjunctive, disjunctive, lexicographic, and elimination-by-aspects could be revised through this activity. 1. Group Formation and Assignment: Divide the class into groups of five to six students and assign each group a specific product category from the provided list (e.g., laptops, cell phones, refrigerators). 2. Visit to Local Retailer: Instruct each group to visit a local retailer that offers options within their assigned product category. They should aim to evaluate three different options available at the retailer. 3. Evaluation using Non compensatory Rules and ATO Approach: • Non compensatory Rules: Each group should evaluate the three options using four non compensatory decision-making rules: lexicographic, elimination by aspects, conjunctive, and lexicographic semiorder. They should consider factors such as price, features, brand reputation, warranty, etc., based on the rules. • ATO Approach: Additionally, each group should assess the options using the ATO (Additive, Threshold, Outranking) approach, considering both the positive and negative aspects of each option. 4. Assessment of Realism and Comparison: • After the evaluations, ask students within each group to discuss how realistic they found the various non compensatory approaches in the context of their assigned product category. • Encourage students to compare the effectiveness and appropriateness of the non compensatory rules with the ATO approach. Which approach provided a more comprehensive evaluation of the options? Were there any limitations or challenges encountered with either approach? 5. Reporting Findings to Class: • Each group should prepare a brief presentation to report their findings to the class. They can summarize their evaluations, discuss the strengths and weaknesses of the different approaches, and share insights gained from the activity. Insights and Discussion Points: • Students may find that certain non compensatory rules are more applicable or effective for specific product categories. For example, the elimination by aspects rule might be particularly relevant for evaluating cell phones based on features like camera quality, battery life, and storage capacity. • The ATO approach allows for a more nuanced evaluation by considering both positive and negative attributes of each option. Students may appreciate the holistic nature of this approach but also recognize its complexity compared to the simpler non compensatory rules. • Discussion can also focus on the trade-offs involved in decision-making, such as sacrificing certain features for others based on predetermined criteria. Overall, this activity provides a hands-on opportunity for students to apply decision-making concepts learned in class to real-world scenarios, fostering critical thinking and analytical skills. Assignment 11. Compare websites for major auto manufacturers such as Honda.com and Toyota.com. How helpful do you consider the websites to be for alternative evaluation? What aspects of the websites did you like? Answer: When comparing websites for major auto manufacturers such as Honda.com and Toyota.com, several factors come into play to assess their helpfulness for alternative evaluation: 1. Information Accessibility: Both Honda.com and Toyota.com should provide easy access to essential information about their vehicles, including specifications, features, pricing, and available options. Clear navigation and well-organized content contribute to the user's ability to compare different models effectively. 2. Visual Presentation: High-quality images and videos showcasing the vehicles from various angles, both interior and exterior, are crucial for allowing potential buyers to visualize themselves in the car. Virtual tours or interactive features can enhance the browsing experience and aid in the decision-making process. 3. Customization Options: The ability to customize and build the desired vehicle online, with options for choosing colors, trims, packages, and accessories, is a significant aspect. It enables users to tailor the vehicle to their preferences and needs, facilitating a more accurate evaluation. 4. User Reviews and Ratings: Including user reviews and ratings can provide valuable insights into real-world experiences with the vehicles. Prospective buyers often rely on these reviews to gauge reliability, performance, and overall satisfaction with the product. 5. Comparative Tools: Features that allow users to compare different models side by side, highlighting key differences in specifications, pricing, and features, can simplify the decision-making process and aid in narrowing down options. 6. Online Assistance: Live chat support, FAQs, and other forms of online assistance can help address specific questions or concerns that users may have during their research process. 7. Mobile Compatibility: In today's mobile-driven world, ensuring that the website is optimized for mobile devices is crucial. A responsive design that adapts seamlessly to various screen sizes and devices enhances accessibility and user experience. In terms of what I like about these websites, both Honda.com and Toyota.com typically excel in providing comprehensive information about their vehicles, offering intuitive navigation, high-quality visuals, and customization options. Additionally, they often feature tools for comparing models and accessing user reviews, enhancing the user's ability to evaluate alternatives effectively. Their commitment to user experience, informative content, and interactive features contributes to making the websites valuable resources for potential car buyers. 12. Ask fellow students what they consider to be evaluative and determinant criteria in the decision to choose their college. In what ways are their responses similar to your opinion? In what ways do they differ? Answer: Understanding what fellow students consider as evaluative and determinant criteria in choosing their college can shed light on various perspectives. Here's how their responses might align or differ from my own opinion: Similarities: 1. Academic Programs: Many students might prioritize the availability and quality of academic programs relevant to their interests and career goals. This aligns with my belief that academic offerings are crucial in selecting a college. 2. Reputation and Prestige: It's common for students to consider the reputation and prestige of a college, as it can impact future opportunities. I might share this view, recognizing the importance of a college's standing in the eyes of employers and graduate schools. 3. Location: The location of the college, including factors like proximity to home, climate, and surrounding amenities, could be a significant consideration for both fellow students and me. Location can influence the overall college experience and lifestyle. 4. Cost and Financial Aid: Many students likely prioritize affordability and the availability of financial aid options. Similarly, I might emphasize the importance of cost-effectiveness and financial support in my decision-making process. Differences: 1. Campus Culture and Environment: While some students might prioritize factors like campus culture, diversity, and social scene, I might place less emphasis on these aspects and focus more on academic and career-related considerations. 2. Extracurricular Opportunities: Fellow students might value extracurricular activities, sports, clubs, and community engagement opportunities highly. While I recognize the importance of a well-rounded college experience, my personal focus might be more on academic pursuits. 3. Size of the Institution: Some students might prefer smaller, more intimate college settings, while others might thrive in larger, more bustling environments. My own preference regarding the size of the institution could differ from those of my peers based on my individual comfort and learning style. 4. Career Services and Alumni Network: While career services and alumni networks are essential for post-graduate success, the weight given to these factors might vary among students. I might prioritize these resources more heavily, recognizing their long-term impact on career prospects. Overall, while there may be shared priorities among fellow students and me, there will also be nuanced differences based on individual preferences, goals, and values. Understanding these variations can provide valuable insights into the diverse considerations that influence the college decision-making process. 13. In what ways do your friends influence the types of information that you seek about products? Think of a time when a friend led you to consider specific information about a product that you hadn’t previously considered. How did this affect your decision making? Answer: As the text explains, consumers are often guided by friends concerning what types of information to seek, especially for socially visible products. Perhaps a friend knows more about a particular product than the student does. Differences are likely to be found across product types. 14. When searching for a job, what type of decision-making process that is discussed in this chapter would apply best to your decision of which job to take? Why? Answer: They should most likely answer either the compensatory approach, or the elimination-by-aspects or lexicographic approaches. The lexicographic approach would probably be the least likely answer, although some students might say “I want the job that pays the best!” Chances are either the ATO approach or the EBA approach would be most realistic. 15. The next time you go shopping, take note of all the green products you find in the store. How are these products promoted? Do you think they’re as effective as other products? Why or why not? Answer: When observing green products in stores, you might notice various promotional tactics aimed at highlighting their environmentally friendly attributes. These promotions often include: Labeling and Certifications: Many green products feature labels or certifications indicating their eco-friendly credentials. These may include symbols such as the Energy Star logo for energy-efficient appliances or certifications like USDA Organic for food products. Packaging: Green products often utilize eco-friendly packaging materials, such as recycled cardboard or biodegradable plastics. Packaging may also include messaging about sustainability efforts or instructions for proper disposal or recycling. Advertising and Marketing: Companies promoting green products often emphasize their commitment to sustainability through advertising campaigns and marketing materials. This may involve showcasing environmental initiatives, such as renewable energy usage or carbon footprint reduction efforts. Price Promotions: In some cases, green products may be promoted through price incentives, such as discounts or rebates, to encourage consumers to choose environmentally friendly options over conventional ones. As for their effectiveness compared to other products, it depends on various factors: Consumer Perception: The effectiveness of green products often hinges on consumer perception. Some shoppers prioritize environmental sustainability and actively seek out green products, while others may prioritize factors like price or convenience. Quality and Performance: Green products must compete with conventional alternatives based on factors like quality, performance, and durability. If green products can match or exceed the performance of traditional products while offering environmental benefits, they may be perceived as more effective. Transparency and Trust: Consumers may be more inclined to purchase green products from brands they trust or perceive as genuinely committed to sustainability. Transparency about environmental claims and certifications can enhance consumer trust and confidence in the product. Availability and Accessibility: The availability and accessibility of green products in stores can impact their effectiveness. If green options are limited or difficult to find, consumers may opt for conventional products out of convenience. In conclusion, the effectiveness of green products compared to other products depends on consumer preferences, perceptions, and the ability of green products to meet quality and performance standards. Effective promotion strategies that highlight environmental benefits and address consumer concerns can enhance the appeal and adoption of green products in the marketplace. 16. *Compare the websites of three major retailers like Sears, Target, and Walmart to their in-store atmosphere. How well do the websites represent the physical stores? Which combination of website and brick-and-mortar store do you think is best? Why? Answer: Comparing the online representation of three major retailers—Sears, Target, and Walmart—to their physical in-store atmosphere reveals varying degrees of alignment between the digital and physical experiences. Sears, historically known for its large department stores, has struggled in recent years, which is reflected in both its website and in-store experience. The website may lack the modern design and functionality of its competitors, and the in-store atmosphere might feel dated or lacking in vibrancy compared to the other two retailers. Target, on the other hand, has managed to create a cohesive brand experience across its website and brick-and-mortar stores. The website mirrors the clean, contemporary aesthetic of Target stores, offering a seamless transition for customers moving between online browsing and in-store shopping. The atmosphere in Target stores tends to be welcoming and trendy, reflecting the retailer's focus on style and affordability. Walmart, similar to Target, has made significant efforts to integrate its online and offline experiences. The website features a wide range of products and services, mirroring the vast selection available in Walmart stores. However, while Walmart stores may lack the sleek aesthetic of Target, they compensate with a focus on accessibility and value, catering to a broad demographic. In terms of which combination of website and brick-and-mortar store is best, it ultimately depends on the preferences and needs of the individual shopper. Target offers a seamless and stylish experience both online and in-store, making it a top choice for those who prioritize aesthetics and convenience. However, Walmart's expansive selection and commitment to affordability may make it the preferred option for budget-conscious shoppers who value variety above all else. Sears, while once a retail giant, may struggle to compete with the more modern and cohesive experiences offered by Target and Walmart. Chapter Video Summary To view the video case Ford Motor Company, go to the CB companion website login.cengage.com to select this video. Ford Motor Company Shopping for a fuel-efficient SUV was easy in 2005 when Ford introduced the Escape, the first and only hybrid on the market. But today there are dozens of alternative energy models on the road, and consumers looking for the most environmentally friendly SUV have many options from which to choose. The Ford brand continues to benefit from its association with historic firsts in auto manufacturing, but some consumers ignore brand history and simply choose the vehicle that performs best on a single important feature, such as fuel economy. Ask your students: 1. *Why would Ford create a hybrid SUV? What makes the Escape attractive to consumers? Answer: Until oil prices started to soar, Americans loved to buy and drive the luxurious, yet sporty SUVs. Once oil prices began to rise, SUVs were traded in and consumer’s started purchasing fuel efficient cars. Ford recognized consumers’ desire for the SUV and fuel efficiency, and merged the two together. Americans now drive their large SUVs while getting 38 miles per gallon. 2. *How did Ford approach the pricing of the Escape? What effect does this have on consumers’ decisions? Answer: Ford started by looking at the prices of other SUVs and other hybrids in the marketplace. They also conducted price elasticity research to determine what consumers were willing to pay for a fuel efficient SUV. Ford also lobbied the government for incentives to promote hybrids and make the Escape as affordable as possible. 3. Discuss how Ford was socially responsible and how marketers fostered environmentally conscious behavior. Answer: The Escape claims to be the cleanest, most fuel-efficient SUV on the planet. The Escape also has the lowest emissions out of any SUV. In 2005, the Escape was rated number twelve of any vehicle for overall fuel economy. Marketers set out to prove these claims with their “Manhattan on a Tank of Gas” campaign. This heightened the visibility of the SUV and demonstrated its environment-friendly characteristics. CB Scenario Video Several experts on choice discuss the counterintuitive effects large numbers of options have on consumers. Rather than increasing the likelihood of consumers finding the best options for them, a variety of choices distresses, confuses, or overwhelms consumers—and may even prevent them from making a purchase. Ask your students: 1. What strategies are used in this video to make the point about choices and that “more isn’t essentially better?” Answer: An interview with a researcher illustrates that though shoppers love the idea of choices, it can lead to confusion and may not translate into a purchase. An expert on choice also agrees with this premise adding credibility to the research finding. An actual experiment is shown to demonstrate the point made by the video. 2. How is the consumer affected by all these choices offered to her? Answer: Consumers get physically and emotionally tired and lose a lot of time when they are overwhelmed with choices. In fact, the researcher points out that this can affect the immune system and the consumers become susceptible to flues and colds. Part 4 In-Text Case Answers Case 4-1 Smartphones, Tablets, Laptops, and PC’s: What’s the World Coming To? 1. What type of decision making approach do most consumers use when deciding between smartphones, tablets, laptops, or desktop computers? Answer: Most consumers will engage in extended decision making. Smartphones, tablets, laptops, and PCs represent significant purchases for most consumers and they are usually fairly expensive. Involvement will likely be high for most consumers, given the purchase price and the frequency of use of the product. It is harder to justify limited or habitual decision making processes for these purchases. 2. What factors influence the amount of search that most consumers will exert when buying a smartphone or a tablet? Answer: Each of the factors listed in the text that pertain to amount of search apply here. It is likely that moderated experienced consumers will search the most for smartphone or tablet information. Experts will know exactly what they want, while novices will likely not be able to understand all the product differences. Involvement with the purchase, perceived risk, and the value of the search effort will also affect amount of search. Personal factors, time availability, and situational influencers will also apply. 3. How does superordinate and subordinate categorization apply to this case from a consumer’s perspective? Answer: There are a number of ways in which a student might address his question. It seems reasonable that one superordinate level will be “computers”, with subordinate levels “PC”, “Laptops”, “Smartphones”, and “Tablets”. Then, each brand under consideration will fall into the next level, with the lowest, most subordinate level, being specific features. 4. What factors do consumers consider when making judgments about smartphones? Answer: Consumers will most likely consider the presence of various features (e.g., “does this phone have a camera”), the levels of the features (e.g., “does it have forward and backward facing lenses?), the benefits associated with the feature (e.g., “I could use FaceTime or Skype,”) the value associated with the benefit (e.g., “that would be fun”), and how the phone is different from others (e.g., “the other phone doesn’t have this”). 5. What type of decision rule would a consumer most likely use when selecting between smartphone brands? How could they use such a rule? Answer: It is likely that consumers would use a compensatory decision rule. However, non-compensatory rules could equally apply. Lexicographic (e.g., select the phone that has the highest quality camera) or elimination by aspects rule would probably be best for this purchase. Case 4-2 New Balance, Out of Step? Explain the consumer decision making process when purchasing a new pair of sneakers. Answer: Consumers decision process is comprised of 5 steps; determining a need for a product in this case a need for a new pair of running sneakers, search for information such as using the Internet or reading reviews in Runner’s World magazine, evaluation of alternatives; should one purchase the New Balance 875 or the Nike’s and finally making the choice; going to a store or purchasing online. The last step is the post choice evaluation. Does one make the right decision to purchase New Balance over Nike? What is the consumer’s motivation for wanting to have the customized pair of 875 New Balance sneakers? Explain. Answer: Motivations are individual and personal. They are the driving forces or inner reasons behind addressing our needs; buying a new pair of sneakers. They could be rational or emotion depending on how the shoe will be used. A professional athlete will need a top of the line shoe but a weekend warrior at the gym may just want to look good while working out. Should New Balance consider a specialty sneaker for the Boston market? If so, what do you envision? Answer: Many students will speculate about possible sports teams such as the Red Sox, Patriots, and the Celtics as potential fits for a specialty sneaker. Creating a specialty sneaker tailored specifically for the Boston market could be a strategic move for New Balance, given the brand's strong ties to the city. Here's what I envision for such a sneaker: 1. Heritage Design: Drawing inspiration from Boston's rich history and culture, the sneaker could feature design elements that pay homage to iconic landmarks, such as the Freedom Trail, Fenway Park, or the Boston Harbor. 2. Performance and Comfort: Given New Balance's reputation for quality athletic footwear, the specialty sneaker should prioritize performance and comfort. It could incorporate innovative technologies for cushioning, support, and durability, making it suitable for both casual wear and athletic activities. 3. Limited Edition: To create excitement and exclusivity, New Balance could release the specialty sneaker as a limited edition, available only in select stores in the Boston area. Limited quantities would enhance its appeal and encourage customers to act quickly to secure a pair. 4. Collaboration Opportunities: New Balance could explore collaboration opportunities with local artists, designers, or cultural institutions to infuse the sneaker with authentic Boston flair. Collaborative designs could resonate with local customers and strengthen the brand's connection to the community. 5. Marketing and Branding: Leveraging its ties to Boston, New Balance could launch a targeted marketing campaign highlighting the sneaker's Boston-inspired design and its significance to the city. Engaging storytelling through social media, advertising, and in-store displays could amplify the sneaker's appeal and drive sales. Overall, a specialty sneaker tailored for the Boston market presents an opportunity for New Balance to deepen its roots in the city while offering customers a unique and meaningful footwear option that captures the spirit of Boston. What is the effect of the New Balance brand on consumers’ judgment to buy or not to buy? Answer: Consumers use a variety of criteria selection when determining whether to purchase from a brand. The many criteria include; situational influences, product knowledge about the brand, expert opinions from magazines such as Runner’s World, social influences such as friends, family and reference groups, online sources such as consumerreports.com, and marketing communications. There are several issues that affect consumer judgment: just noticeable differences, attribute correlation, quality perceptions and brand name associations. For New Balance, the brand name association could signal quality but New Balance uses a numbering system for their sneakers which may confuse consumers. Discuss the atmospherics of the two shopping areas; Legacy Place in Dedham, MA, and the Flatiron district in New York City. Answer: Legacy Place in Dedham, MA, and the Flatiron district in New York City offer distinct atmospheres shaped by their surroundings, demographics, and the types of retailers and experiences they offer. Legacy Place: Suburban Charm: Situated in Dedham, MA, Legacy Place exudes a suburban charm with its outdoor layout, landscaped walkways, and ample parking. The atmosphere is relaxed and family-friendly, catering to residents of nearby suburbs seeking a convenient shopping and dining destination. Lifestyle Center: Legacy Place functions as a lifestyle center, blending retail, dining, entertainment, and community spaces. The open-air environment creates a leisurely shopping experience, allowing visitors to stroll between stores and enjoy outdoor seating areas. Upscale Offerings: The tenant mix at Legacy Place includes a mix of upscale and mainstream retailers, along with popular dining options. Brands such as Lululemon, Apple, and Whole Foods Market cater to the affluent demographic of the surrounding suburbs. Community Events: Legacy Place hosts community events, seasonal festivals, and outdoor concerts, fostering a sense of community and encouraging repeat visits. These events contribute to the vibrant atmosphere and make Legacy Place a social hub for locals. Flatiron District: Urban Energy: Situated in the heart of Manhattan, the Flatiron district pulsates with urban energy, characterized by bustling streets, towering skyscrapers, and a diverse mix of businesses. The atmosphere is fast-paced and dynamic, reflecting the vibrant spirit of New York City. Architectural Landmarks: The Flatiron district is known for its iconic architectural landmarks, including the Flatiron Building and Madison Square Park. These landmarks add to the district's allure and serve as focal points for both locals and tourists. Fashion and Design Hub: The Flatiron district is a fashion and design hub, home to flagship stores, boutique shops, and design studios. Retailers like Eataly, ABC Carpet & Home, and numerous fashion boutiques contribute to the district's reputation as a destination for style and creativity. Culinary Diversity: The Flatiron district offers a diverse culinary scene, with acclaimed restaurants, trendy cafes, and gourmet food markets. Visitors can enjoy a wide range of cuisines, from fine dining establishments to casual eateries, reflecting the cosmopolitan nature of New York City. In summary, Legacy Place in Dedham, MA, and the Flatiron district in New York City offer contrasting atmospheres shaped by their respective settings and offerings. Legacy Place embodies suburban charm and a relaxed lifestyle, while the Flatiron district pulsates with urban energy and creativity. Both shopping areas provide unique experiences tailored to their demographics and surroundings. Visit three stores selling sneakers. Describe how the atmospherics differ across the stores. Why do these differences exist? Answer: 1. Urban Streetwear Boutique: This store is located in a trendy downtown area and caters to a younger demographic interested in streetwear fashion. The atmosphere here is vibrant and energetic, with loud music playing, colorful and graffiti-inspired decor, and dim lighting that highlights the merchandise. The layout encourages exploration, with sneakers displayed on shelves against exposed brick walls and mannequins styled in edgy outfits. The staff are dressed casually in streetwear brands, and they engage with customers in a relaxed and informal manner. The store aims to create a sense of belonging and excitement, drawing customers in with its cool and urban vibe. 2. High-End Luxury Sneaker Boutique: Situated in an upscale shopping district, this store targets affluent customers who appreciate luxury brands and exclusivity. The atmosphere is sleek and sophisticated, with minimalist decor featuring marble floors, sleek glass display cases, and soft, flattering lighting. The layout is organized and spacious, allowing each pair of sneakers to stand out as a premium product. The staff are impeccably dressed in tailored attire, exuding professionalism and expertise. Customers receive personalized attention and assistance, enhancing the sense of exclusivity and luxury. The store aims to create an atmosphere of refinement and indulgence, appealing to customers who value status and quality. 3. Athletic Performance Store: Located in a busy shopping mall, this store caters to athletes and fitness enthusiasts seeking high-performance sneakers. The atmosphere here is dynamic and active, with bright lighting, motivational posters, and displays showcasing the latest technology in athletic footwear. The layout is functional and organized, with sneakers categorized by sport and activity. The staff are knowledgeable about fitness and training, offering expert advice and assistance to customers trying on shoes. The store aims to create a sense of energy and motivation, inspiring customers to pursue their fitness goals with the right footwear. These differences in atmospherics exist because each store targets a different customer segment with unique preferences and needs. The atmosphere is carefully curated to resonate with the target demographic, creating a memorable and engaging shopping experience that aligns with their lifestyle and aspirations. Whether it's the edgy vibe of the urban streetwear boutique, the luxury ambiance of the high-end sneaker boutique, or the active atmosphere of the athletic performance store, each store leverages its atmospherics to attract and retain customers in a competitive market. Case 4-3 Consumer Confidence: Preparation Pays Off Based on the various perspectives of consumer decision making, what type of a shopper is Maya and why? Answer: The case suggests that Maya was a logical type of person who is more interested in utilitarian aspects of the car. This type of perspective seem dominant in her compared to the emotional perspective. Apply the consumer decision making process stages to Maya’s actions as a consumer, or describe Maya’s actions within the framework of consumer decision making process. Answer: In the case, the customer has gone through three stages so the decision making process: need recognition, information search and alternative evaluation. Her need recognition state was realizing that she wanted a car given the impending change in her life situation. With regard to information search, Maya not only had internal information but also actively reviewed magazines and websites. Finally, based on the knowledge gathered, she had selected certain criteria and narrowed her choices to four cars. She has not yet evaluated the dealerships, financing options, and insurance coverage. Is Maya utilizing the affect-based or attribute-based evaluation process? Justify your answer. Answer: Given the logical nature of the customer, she seems more interested in comparing brands based on individual attributes or features (such as MPG, body style, etc.) rather than the overall feel or look of the car. In other words, attribute-based evaluation is more dominant in the case of this customer and affect-based evaluation process seems secondary. Based on the information provided in the case, what are the determinants of the evaluative criteria that the customer is using? Explain each in detail. Answer: Some of the determinants in selection of evaluative criteria are situational influences (changes in her life), product knowledge (having read Consumer Reports and also driving a Prius for a while), expert opinions (that of her dad and brother), social influences (from her family and friends), and online sources (websites she visited to gather information.) In your opinion, which decision rule (compensatory or non-compensatory) is being utilized by Maya in her car buying process? Answer: Since Maya uses criteria such as minimum 40 MPG, only leather seats, etc., students might conclude that she is using the non-compensatory rule. Yet others might conclude that she might be using a combination of the rules as it happens in the real world. The statement that Maya knows that she might have “to compromise on a few items along the way,” indicates that she might also be using a compensatory type of rule. Part 4 Online Case Answers Visit www.login.cengage.com to access the online case studies for CB. Consumer Decision Making with Compensatory, Non-Compensatory Models Do you believe brand personality plays a major part in decision making? Explain. Answer: Brand personality does play a major role in decision-making, especially if the consumer is using the Compensatory Model with Implied Behavioral Intentions Model. With the Lexicographic and Compensatory Models in Tables A and B, the brand personality is not considered as much of a factor in decision-making. With those who are more subject to the Implied Behavioral Intentions Model, the reference groups and subjective norms are likely to influence the consumer towards purchasing one brand over another. After evaluating Table A, which alcohol brand will Greg be most likely to purchase? Answer: The Lexicographic Model points to Belvedere because quality is the most important attribute for Greg. Belvedere ranked a 9 on his belief scale which shows that he finds that vodka brand to have the highest level of quality among the four brands. He believes he is being very rational with his decision, though he is likely being influenced somewhat by the status appeal of Belvedere. Using Table B and taking Angelina’s shopping habits into consideration, which brand of alcohol will she buy? Answer: All attributes are considered in terms of beliefs and evaluations with the Compensatory Model. The Compensatory Model results with Grey Goose as Angelina’s selection because the weighted attributes scored the highest with that brand. Even with the price and bottle design as negative evaluations, Angelina’s strong beliefs about quality and quantity have Grey Goose as the distinct winner. The quality and quantity beliefs overrule the lower scores for price and bottle design. Looking at Table C and considering what you know about Bella’s decision-making style, which brand is she likely to purchase? Answer: Assume that Bella thinks that all these attributes are important at a minimal level, and establishes a cutoff point of 5 on the belief attribute with the Conjunctive Approach. With this in mind, the Absolut vodka would be the brand most likely to be purchased because it meets the cutoff of 5 on all attributes. However, given the implication of subjective norms and friends opinions mentioned in the case, there is the possibility that Bella could go with the Smirnoff because it has the highest ratings on opinions and subjective norms. These choices correlate with each of the decision-making models. If she chooses to go with the Smirnoff, she would be using a Lexicographic Model whereas if she goes with Absolut, she would be using the Compensatory Model. How might the decision-making processes for each consumer change if shopping for the product at a warehouse store like Costco as opposed to an upscale wine shop in Florida? Answer: Note: None of these decisions are likely to change if they go into an upscale wine shop because all of the considerations are going to still be there and this is a specialty purchase. Greg is unwavering from his Lexicographic decision-making process. He would still find perceived quality the most important and buy Belvedere vodka. Angelina is prone to purchasing Grey Goose because she is rational with higher involvement purchases and would like to make a good impression her guests. Using the Compensatory Model, she is taking all attributes into consideration and is likely to still buy the Grey Goose. Bella goes into Costco for an impulsive shopping spree before her trip. She is by herself where her friends’ opinions have lost their impact. The imagery with the bottle of Absolut catches her eye in the store. She makes her purchase based off of this individual attribute using the disjunctive approach. This implies that there is a high cutoff point, but it is not attribute specific. Note that imagery and attractiveness of the spokesperson both have scores of 9. Redefining Good Cleaning Products What temporary situations or changes in life circumstances might influence a consumer to recognize a need for a cleaning product, in general, or a green cleaner in particular? How might a marketer leverage this knowledge? Answer: Situational Influence: Most Americans view cleaning products as a household essential,*so the primary driver of need recognition is an ‘out-of-stock’ condition as opposed to time and place situational influences. That said, ‘spring cleaning’ might serve as a time influence and a place influence may occur when shopping given in that stores may have prominent displays or entire aisles devoted to cleaning products (making the product category salient). Marketers can use trade promotion to ensure prominent retail placement and may increase promotions during spring cleaning time. *Instructor note: Americans’ affluence and strong value on cleanliness and material solutions, probably means that Americans are more likely to feel a need for lots of specific types of cleaning products (supporting wide product lines) and branded cleaners as opposed multi-functional materials like vinegar and baking soda. Life Circumstances: Other than out-of-stock conditions, consumers are likely to recognize a need when (1) they move to a new location, especially when living independently for the first time and (2) have children or develop medical conditions making them especially sensitive to health affects of cleaners. Marketers can target consumers in experiencing these life changes. What types of purchase decisions were made by Jack, Jill, and Elena: (a) extended decision making, (b) limited decision making, or (c) habitual decision making: brand inertia vs. brand loyalty? Explain. Answer: Extended decision making: Elena is concerned for her new baby’s health, so she has high involvement with the product category and decision process. Thus, she engages in more search (drives to a new store, reads packages carefully, visit websites), after is willing to pay a higher price for the safest brand. Limited decision making: Jill has low involvement with the product category and decision process—she engages in just enough search in the store aisle to find the best product on the singe attribute of price. Habitual decision making: Jack repeatedly buys the same brand without any alternative evaluation. The case doesn’t provide enough information to know if this is due to loyalty (he likes the smell of his laundry and knows he won’t get a skin rash) or inertia (it makes for very quick grocery shopping) Instructor Note: A first time Method purchaser could make either an extended decision (research into environmental aspects) or a limited decision (“I like the style of the bottle”). The latter shows the influence of hedonic value. Green cleaners can be sought for utilitarian value (safer health-wise) or hedonic value (I feel proud that I protect the planet for others). How do perceptual attributes and packaging characteristics of the brands in this case study signal product quality in terms of the underlying environmental and health benefits? Answer The Environmental and health aspects of the product (i.e., underlying attributes) are similar to ‘perceived quality’ because consumers don’t have knowledge of—or expertise to evaluate—product ingredients and manufacturing-and-distribution processes. Consumers make environmental and health evaluations by relying on perceptual attributes and visual characteristics such as: Eco-labels and certifications [note: a side discussion can address the value of the various types of labels and the difference between rigorous certifications and consumers awareness of certifications.] The eco-image of the store in which the product is sold (health food store) Brand name: “Green” Works and Seventh Generation, which comes from an Iroquois belief that decision makers should consider consequences of actions on multiple generations. Product color: Green Work’s green liquid Package and label design: nature imagery (flower) and ‘utilitarian’ packages that convey a meaning of anti-big-business-and-slick-marketing Price: nontoxic cleaners must cost more, in the same way the other types of quality are perceived as costing more How are consumers who shop at Whole Foods (a natural food store) and those who shop at Walmart likely to differ in terms of their consideration sets, determinant criteria, and use of a compensatory or non compensatory rule when factoring environmentally-preferred attributes? How does product categorization explain Method’s decision to initially deemphasize green features when the product was launched? Answer:

Consumers divide cleaning products (i.e., superordinate level) into subordinate categories of green and conventional. Method did not want to be categorized as a green product, even though it was, because the green category has been associated with the perception of ineffectiveness. Bottled Water Case How does the need recognition portion of the consumer decision-making process apply to this case? What need is being addressed? Answer: The issue in this case is “need.” Does the consumer truly “need” bottled water? Of course, consumers do need water to survive; however, many people would argue that public water systems do an adequate job of providing healthy water. As the case points out, other consumers would strongly disagree, and it is true that many older consumers do not perceive the need. The need arises largely because younger consumers are growing up in a time period that highlights healthy living. Everyone knows that life doesn’t exist without water. However, is bottled water really necessary? This is the real issue in the case. What brands of bottled water are you familiar with? Do these brands easily come to mind when you think of bottled water? Explain this issue from the perspective of the consideration set. How would you describe your consideration set for bottled water? Answer: Numerous brands of bottled water are available on the market. Some are national brands (e.g., Aquafina), while others are local (e.g., Ozarka). Many universities also market their own brands of water (e.g., Oklahoma State has H2OSU). The extent to which these brands easily come to mind measures the concept of the consideration set. Students should discuss issues related to the universal set, awareness set, and consideration set. There will likely be many brands found in student consideration sets. The next time you are in the classroom, take note of how many students are drinking bottled water compared with soda. Does this surprise you? Ask a friend why he or she chooses bottled water over soda. Can you relate? Do you agree with his or her reasoning? Answer: This is a great avenue for classroom discussion. It is quite common that college classrooms (that allow drinks) will be full of bottled water, and students should not be surprised by this fact. Students’ friends will have many opinions as to why bottled water should (or shouldn’t) be selected. Go to a website that markets bottled water. Does it explain the health benefits of the product? If so, what does it claim? Why do you believe or disbelieve the information that you have found? Do you believe that the water is significantly better for you than tap water? Explain. Answer: I can't browse the internet, but I can give you an idea of what you might find on a bottled water website regarding health benefits. Many bottled water brands do claim health benefits on their websites. These claims often include statements about the purity and cleanliness of the water, its mineral content, and its potential hydration benefits. Some brands may highlight specific features like pH balance or electrolyte content as being beneficial for overall health and well-being. Whether or not you believe these claims depends on various factors, including your trust in the brand, your understanding of water quality and health, and any supporting evidence provided by the brand. In general, bottled water is subject to regulations and standards to ensure safety and quality. However, it's essential to recognize that tap water in many developed countries also meets rigorous safety standards and is regularly tested for contaminants. Whether bottled water is significantly better for you than tap water is a matter of debate. In terms of hydration, both bottled and tap water can effectively quench thirst and support overall health. However, there are environmental and cost considerations associated with bottled water, as well as questions about the sustainability of its production and packaging. Ultimately, the choice between bottled water and tap water may depend on personal preferences, accessibility, and individual health concerns. It's essential to stay informed about the sources of your water and any potential contaminants, whether you're drinking bottled or tap water. Camera Case What types of decision-making rules can be used for selecting a digital camera? How would they apply to this case? Answer: Because buying a digital camera is usually a high-involvement decision with significant risk, it is likely that compensatory rules would apply. It is likely that the attitude-toward-the-object rule would also be used. However, non compensatory rules could also be used. For example, perhaps the consumer wants to purchase the camera that he or she thinks is best regarding the most important attribute. If resolution were the most important attribute, then Camera A would be selected. The consumer might use a conjunctive process by deciding that the camera that is selected cannot exceed $1,200. In this case, Camera A would be rejected. The consumer could then evaluate cameras B & C further. How can consumers deal with the problem of missing information for one, or several, of the alternatives? Answer: If information is missing, the consumer would probably pay close attention to the information that is consistent across the choices and decide on the brand that performs best on the consistent information/variable. What role does the brand name of a camera play in the selection process? Answer: Brand names can be very strong signals. Although they can signal many things, they usually signal quality. Several brand names generally signal quality including Canon, Sony, or Nikon. Compare two popular websites, such as www.bestbuy.com and www.myproductadvisor.com, on their presentation of alternatives and explanation of differences between cameras. How helpful do you find these sites to be? Answer: At the time of this writing, www.myproductadvisor.com appears to do a very good job at recommending cameras. Its website starts by asking general questions such as how the camera will be used, what price range is acceptable, and even specific attributes that are desired by the consumer. Ultimately, the site recommends specific cameras based on these preferences. www.bestbuy.com also does a good job explaining different brands and models, but does not begin with consumer preferences. Rather, this website asks for specific categories of products that the consumer is seeking (e.g., number of megapixels, resolution). At this time, it did not recommend specific brands. Students will probably vary in the extent to which they find the sites to be helpful. Part 4 Video Case To view the part 4 video case, go to the CB companion website login.cengage.com to select this video. Wireless Zone & Verizon Time: This video is between 5-7 minutes long. Concepts Illustrated in the Video Situational influences Time pressure Shopping activities Shopping value Decision making Evaluative criteria Synopsis Claire, a volunteer teacher is shopping at the Wireless Zone/Verizon for a replacement cell phone. She hasn’t done her research (i.e. talked to friends or gone on the Internet) on which phone to purchase and she’s pressed for time. Walter, the Sales Associate asks Claire about her cell phone needs in terms of features. Will she need Bluetooth, a camera, email, texting, etc.? Claire is indecisive and decides she’s looking for a product similar to the iPhone. She ends up spending $499 on a new phone and leaves the store wondering whether she was ripped off and if she made the right choice given her lack of knowledge when it comes to technology. Teaching Objectives for the Video Case Understand how value varies with situations Know the different ways that time affects consumer behavior Distinguish the concepts of unplanned, impulse and compulsive consumer behavior Understand the consumer decision making process Understand the factors that influence the amount of search performed by consumers Comprehend how value affects the evaluation of alternatives Critical Thinking Questions—Suggested Answers 1. Which situational influences affected Claire’s decision? Answer: All three situational influences affected her decision: time, place, and conditions. Time and conditions are represented by the fact that she was in a hurry to get to the airport. She was leaving on a trip in less than three hours and would be gone for the entire summer on a volunteer teaching experience. Place represents the Wireless Zone and her lack of comfort with technology products. 2. If you were Claire, what would you have done in that situation? Did Walter service her needs? Do you think she got ripped off? Explain. Answer: If Claire feels unsatisfied with the service or product provided by Walter, she might consider several actions: 1. Communicate Concerns: Claire could express her dissatisfaction directly to Walter, providing specific feedback about her experience and any issues she encountered. This communication might lead to a resolution or clarification of misunderstandings. 2. Seek Refund or Compensation: Depending on the nature of the problem, Claire might request a refund, exchange, or some form of compensation for her dissatisfaction. This could involve returning the product or discussing the service-related concerns with Walter. 3. Review Options: Claire could explore alternative sources for the product or service she needs, especially if she feels that Walter's offering did not meet her expectations or requirements. Regarding whether Walter serviced her needs adequately, it would depend on the specifics of Claire's situation and the extent to which Walter fulfilled her expectations. If Walter provided the product or service as agreed upon and met Claire's requirements, then he might have serviced her needs effectively. However, if there were misunderstandings, mistakes, or deficiencies in the product or service, Claire might feel that her needs were not adequately addressed. As for whether Claire got ripped off, it depends on whether she received fair value for what she paid. If Claire feels that she did not receive adequate value or if she believes she was misled or overcharged, she might perceive that she got ripped off. However, if she received the product or service as promised and it met her expectations, she might consider the transaction fair. Ultimately, the assessment of whether Claire's needs were serviced and whether she got ripped off is subjective and depends on her individual perspective and the specifics of her interaction with Walter. 3. Describe Claire’s consumer decision-making process for purchasing her new cell phone. Answer: Claire went through the five steps: need recognition, search for information, alternative evaluation, choice, and postchoice evaluation. First, Claire determined that her broken cell phone needed to be replaced. Second, she visited the Wireless Zone for a new phone. Third, she spoke to the Associate for alternative choices. Fourth, she chose a phone similar to an iPhone. Fifth, she pondered over the purchase as to whether she was ripped off or received what she needed. 4. What type of decision-making qualities did Claire possess in the video? How do you compare yourself with Claire when purchasing high-ticket items? Answer: Claire possessed decision-making and emotional qualities. Claire was obviously unsure of what she was looking for in a phone and therefore regarded this purchase as a difficult decision because of her lack of technological knowledge. Students’ answers will vary when they compare themselves with Claire. Some students will be extremely budget conscious, while others will spend freely without regard to price tags. 5. Explain the evaluative criteria for purchasing a new cell phone or piece of technology. Use product, feature, and benefit in your answer. Answer: Depending on their comfort levels with technology. If continuing with the cell phone example as the product, the features include a camera, email, text-messaging capabilities, and music. Consumer benefits are that the user has the freedom to connect to the Internet at any time and any place, and the user also has a device that can play music and serve as a cell phone in one compact unit. Solution Manual for CB Consumer Behaviour Barry J. Babin, Eric G. Harris 9781305403222, 9781305577244