Consumer Behavior: Understanding Consumer Decision Making and Influences, Study Guides, Projects, Research of Consumer Behaviour

This document delves into the intricacies of consumer behavior, exploring key factors that influence consumer decisions. It examines the role of culture, reference groups, perception, learning, and memory in shaping consumer choices. The document also discusses the impact of situational influences, problem recognition, information search, and decision-making processes on consumer behavior. It provides valuable insights into how marketers can effectively target and influence consumers.

Typology: Study Guides, Projects, Research

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Chapter 2
1. Explain the concept of culture, and discuss why is it important to study for understanding consumer
behavior.
Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other
capabilities and habits acquired by humans as members of society. It is important to study culture for
several reasons. First, culture is a comprehensive concept and includes almost everything that influences
an individual's thought processes and behaviors. Second, culture is acquired. It does not include inherited
responses and predispositions, and because much of human behavior is learned rather than innate, culture
does affect a wide array of behaviors. Third, the complexity of modern societies is such that culture
seldom provides detailed prescriptions for appropriate behavior. Instead, in most industrial societies,
culture supplies boundaries within which most individuals think and act. Finally, the nature of cultural
influences is such that we are seldom aware of them. One behaves, thinks, and feels in a manner
consistent with other members of the same culture because it seems "natural" or "right" to do so. Thus, it
is important to study culture for understanding consumer behavior because it is pervasive and influences
consumers' behavior, often in ways they are unaware of. Marketers must understand this influence to
effectively serve customers' needs and desires.
2. Compare and contrast (a) other-oriented values, (b) environment-oriented values, and (c) self-oriented
values.
a. Other-oriented values reflect a society's view of the appropriate relationships between individuals
and groups within that society.
b. Environment-oriented values prescribe a society's relationship to its economic and technological as
well as its physical environment.
c. Self-oriented values reflect the objectives and approaches to life that the individual members of
society find desirable.
Of the 18 values discussed in this chapter (see Table 2-1 for a summary), some are more important in
societies than others based on their value orientation.
3. Jason is planning a business trip to Japan, and it is his first time doing business in that country. Discuss
some value differences between Japanese culture and American culture that are most relevant to him in a
business meeting situation.
One key area where there are substantial differences between the Japanese and American cultures is the
area of "other-oriented" values. Individualism is a defining characteristic of American culture, whereas
the Japanese are more collective in their orientation. While American society is clearly youth oriented,
many Asian cultures have traditionally valued the wisdom that comes with age. Cultures with more
masculine and individualistic orientations such as the United States tend to value competitiveness and
demonstrate it openly, but collectivists cultures, even highly masculine ones such as Japan, tend to find
openly competitive gestures offensive as they cause others to "lose face." Finally, Japan and other
collectivist cultures tend to place a strong value on uniformity and conformity, whereas other cultures,
such as the United States, value diversity more.
Another area where there are differences between the Japanese and American cultures is the area of
"self-oriented" values. Americans are much more prone than the Japanese to take an action-oriented
approach to problems.
4. Name the seven factors influencing nonverbal communications, and describe four of them.
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Chapter 2

  1. Explain the concept of culture, and discuss why is it important to study for understanding consumer behavior. Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society. It is important to study culture for several reasons. First, culture is a comprehensive concept and includes almost everything that influences an individual's thought processes and behaviors. Second, culture is acquired. It does not include inherited responses and predispositions, and because much of human behavior is learned rather than innate, culture does affect a wide array of behaviors. Third, the complexity of modern societies is such that culture seldom provides detailed prescriptions for appropriate behavior. Instead, in most industrial societies, culture supplies boundaries within which most individuals think and act. Finally, the nature of cultural influences is such that we are seldom aware of them. One behaves, thinks, and feels in a manner consistent with other members of the same culture because it seems "natural" or "right" to do so. Thus, it is important to study culture for understanding consumer behavior because it is pervasive and influences consumers' behavior, often in ways they are unaware of. Marketers must understand this influence to effectively serve customers' needs and desires.
  2. Compare and contrast (a) other-oriented values, (b) environment-oriented values, and (c) self-oriented values. a. Other-oriented values reflect a society's view of the appropriate relationships between individuals and groups within that society. b. Environment-oriented values prescribe a society's relationship to its economic and technological as well as its physical environment. c. Self-oriented values reflect the objectives and approaches to life that the individual members of society find desirable. Of the 18 values discussed in this chapter (see Table 2-1 for a summary), some are more important in societies than others based on their value orientation.
  3. Jason is planning a business trip to Japan, and it is his first time doing business in that country. Discuss some value differences between Japanese culture and American culture that are most relevant to him in a business meeting situation. One key area where there are substantial differences between the Japanese and American cultures is the area of "other-oriented" values. Individualism is a defining characteristic of American culture, whereas the Japanese are more collective in their orientation. While American society is clearly youth oriented, many Asian cultures have traditionally valued the wisdom that comes with age. Cultures with more masculine and individualistic orientations such as the United States tend to value competitiveness and demonstrate it openly, but collectivists cultures, even highly masculine ones such as Japan, tend to find openly competitive gestures offensive as they cause others to "lose face." Finally, Japan and other collectivist cultures tend to place a strong value on uniformity and conformity, whereas other cultures, such as the United States, value diversity more. Another area where there are differences between the Japanese and American cultures is the area of "self-oriented" values. Americans are much more prone than the Japanese to take an action-oriented approach to problems.
  4. Name the seven factors influencing nonverbal communications, and describe four of them.

Nonverbal factors influencing nonverbal communications include time, space, symbols, relationships, agreements, things, and etiquette. Students can discuss any four of the following: a. Time —The meaning of time varies between cultures in two major ways: time perspective, which is a culture's overall orientation toward time, and the interpretations assigned to specific uses of time. Time perspectives can be monochronic (i.e., one thing at a time, promptness, adhering to plans, etc.) or polychronic (i.e., doing many things at once, committed to relationships, change plans often, etc.). b. Space —Personal space is the nearest that others can come to you in various situations without your feeling uncomfortable, and this space varies among cultures. c. Symbols —Colors, animals, shapes, numbers, and music have varying meaning across cultures. d. Relationships —While Americans form relationships and make friends quickly and easily and drop them easily also, in many other parts of the world, relationships and friendships are formed slowly and carefully because they imply deep and lasting obligations. Chinese relationships are complex and described under the concept of guanxi. e. Agreements —Americans rely on an extensive and generally, highly efficient legal system for ensuring that business obligations are honored or for resolving disagreements. Many other cultures have not developed such a system and rely instead on relationships, friendship, and kinship, local moral principles, or informal customs. f. Things —The different meanings that cultures attach to things, including products, make gift-giving a particularly difficult task. g. Etiquette —Generally accepted ways of behaving in social situations represent etiquette. Behaviors considered rude and obnoxious in one culture may be quite acceptable in another. Meishi in Japan (i.e., the exchange of business cards) is an important part of Japanese business etiquette.

  1. List and describe the three trends in the global youth market. Several recent trends in the global youth market are critical for global marketers to understand. These include:
    • Technology is mainstream —Wired teens are a global phenomenon not restricted to developed countries. Fifty-six percent of teens globally are "superconnectors," meaning they use two or more electronic devices (e.g., cell phone and Internet) daily.
    • U.S. teens no longer lead the way —Now it's more about mind-set and the "creatives" are leading the way. Creatives are most prevalent in Europe (not the United States), are open to new ideas, and like expressing themselves in various ways, including personal web pages and art.
    • U.S. brands are not currently the leaders —U.S. brands used to be the leaders among global teens. Now the top three are Sony (Japan), Nokia (Finland), and Adidas (Germany).
  2. List and explain four of the seven factors that Unilever utilizes in order to successfully sell its laundry products globally.
    • Cultural homogeneity —In the global laundry market, heterogeneity, even within a country, can occur. For example, Brazil's Northeast and Southeast regions are very different. One difference is that in the poorer Northeast region, most laundry is done by hand and more bar soap than powder is used. In the more affluent Southeast region, most laundry is done in a washing machine and more powder detergent is used than bar soap in the process.
    • Needs —Hand washing versus machine washing leads to different laundry product needs. In addition, in developing countries which are an important focus for Unilever, products must be adapted to meet strength of cleaning needs related to removing sweat, odors, and tough stains due to physical labor.
    • Affordability —Clearly, affordability is a component in pricing the laundry detergents themselves to be competitive. However, Unilever also faces the situation that a transition from hand washing to washing machines depends in large part on the economic prosperity of a country or region as this determines the

a. Providing incentives such as free products and coupons b. Providing information or solutions to consumer problems c. Asking for feedback on products and services d. Finding new ways to interact

  1. You are a marketing manager and want to use the power of reference groups to influence consumers. Reference group influence can take three forms. Name and describe each, and explain how you could use each type of influence in an advertisement. Reference group influence can take three forms: informational, normative, and identification. Informational influence occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information. This influence is based on either the similarity of the group's members to the individual or the expertise of the influencing group member. An ad that depicts typical members of a group or an expert explaining the benefits of a brand could provide relevant information to consumers. Normative influence , sometimes referred to as "utilitarian" influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction. This type of influence is strongest when individuals have strong ties to the group and the product involved is socially conspicuous. Ads that promise social acceptance or approval if a product is used (or nonacceptance or disapproval if it not used) are relying on normative influence. Identification influence , also called "value-expressive" influence, occurs when individuals have internalized the group's values and norms. Advertisers need to understand the values of their target audience so as to mirror those back in their advertisements.
  2. Discuss the five determinants of the degree of reference group influence on a consumer. a. Group influence is strongest when the use of the product or brand is visible to the group. b. Reference group influence is higher the less of a necessity an item is. c. In general, the more commitment an individual feels to a group, the more the individual will conform to the group norms. d. The more relevant a particular activity is to the group's functioning, the stronger the pressure to conform to the group norms concerning that activity. e. The individual's confidence in the purchase situation also affects the degree of reference group influence.
  3. Compare and contrast the categories of innovations, and give an example of each. Any new product can be placed somewhere on a continuum ranging from no change to radical change, depending on the target market's perception of the item. This continuum is often divided into three categories or types of innovations: a. Continuous innovation— adoption requires relatively minor changes in behavior or changes in behaviors that are unimportant to the consumer. Examples of this type of innovation are the addition of a whitening agent in toothpaste, DVD players, or a new type of snack bar. b. Dynamically continuous innovation— adoption requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual. Examples of this type of innovation include digital cameras, personal navigators, and skin lotion that also reduces the need for shaving. c. Discontinuous innovation— adoption requires major changes in behavior of significant importance to the individual or group. Examples include Norplant contraceptive, becoming a vegetarian, and the Segway Human Transporter.
  4. You are a marketing manager and want to use the power of reference groups to influence consumers. Reference group influence can take three forms. Name and describe each, and explain how you could use

each type of influence in an advertisement. Reference group influence can take three forms: informational, normative, and identification. Informational influence occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information. This influence is based on either the similarity of the group's members to the individual or the expertise of the influencing group member. An ad that depicts typical members of a group or an expert explaining the benefits of a brand could provide relevant information to consumers. Normative influence , sometimes referred to as "utilitarian" influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction. This type of influence is strongest when individuals have strong ties to the group and the product involved is socially conspicuous. Ads that promise social acceptance or approval if a product is used (or nonacceptance or disapproval if it not used) are relying on normative influence. Identification influence , also called "value-expressive" influence, occurs when individuals have internalized the group's values and norms. Advertisers need to understand the values of their target audience so as to mirror those back in their advertisements.

  1. Discuss the five determinants of the degree of reference group influence on a consumer. f. Group influence is strongest when the use of the product or brand is visible to the group. g. Reference group influence is higher the less of a necessity an item is. h. In general, the more commitment an individual feels to a group, the more the individual will conform to the group norms. i. The more relevant a particular activity is to the group's functioning, the stronger the pressure to conform to the group norms concerning that activity. j. The individual's confidence in the purchase situation also affects the degree of reference group influence.
  2. Compare and contrast the categories of innovations, and give an example of each. Any new product can be placed somewhere on a continuum ranging from no change to radical change, depending on the target market's perception of the item. This continuum is often divided into three categories or types of innovations: d. Continuous innovation— adoption requires relatively minor changes in behavior or changes in behaviors that are unimportant to the consumer. Examples of this type of innovation are the addition of a whitening agent in toothpaste, DVD players, or a new type of snack bar. e. Dynamically continuous innovation— adoption requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual. Examples of this type of innovation include digital cameras, personal navigators, and skin lotion that also reduces the need for shaving. f. Discontinuous innovation— adoption requires major changes in behavior of significant importance to the individual or group. Examples include Norplant contraceptive, becoming a vegetarian, and the Segway Human Transporter.
  3. Apple recently came out with the video iPod, which allows users to download video content from the Internet. Very soon after the introduction of this innovation, television shows were made available for consumers to purchase or to obtain for free. This has brought about a rather radical change in the way viewers consume television, and some have predicted that this will create significant changes in the current business model for television networks and program producers. Discuss five of the many factors discussed in the chapter that will influence the spread of this innovation. The rate at which an innovation is diffused is a function of the following 10 factors, and students can discuss any five of them:

attended to more so than ones appearing later in a commercial pod. Isolation— separating a stimulus object from other objects tends to enhance attention to the stimulus. In advertising, the use of "white space" is based on this principle. Format— refers to the manner in which the message is presented, and simple, straightforward presentations receive more attention than complex presentations. Elements in an advertisement that increase the effort required to process the message tend to decrease attention. Contrast and expectations— consumers pay more attention to stimuli that contrast with their background than to stimuli that blend with it. Expectations drive our perceptions of contrast. Interestingness— factors that increase curiosity can increase interest and the attention paid to the stimulus. Information quantity— represents the number of cues in the stimulus field. Information overload occurs when consumers are confronted with so much information that they cannot or will not attend to all of it. Discuss the individual factors that affect attention. Consumer motivation and ability are the major individual factors affecting attention. Motivation is the drive state created by consumer interests and needs. Interests are a reflection of overall lifestyles as well as a result of goals and needs. Product involvement indicates motivation or interest in a specific product category, and it can be temporary or enduring. Either way, product involvement motivates attention. Ability refers to the capacity of individuals to attend to and process information and is related to knowledge and familiarity with the product, brand, or promotion. Experts can attend to more information, more quickly and more effectively than novices and tend to be less plagued by information overload. Brand familiarity is an ability factor related to attention, and those with high brand familiarity may require less attention to the brand's messages due to their high existing knowledge.

  1. Define "interpretation," and discuss individual characteristics affecting it. Interpretation is the assignment of meaning to sensations and is related to how we comprehend and make sense of incoming information. Individual characteristics affecting interpretation are traits, learning and knowledge, and expectations. Inherent physiological and psychological traits , which drive our needs and desires, influence how a stimulus is interpreted. From a physiological standpoint, consumers differ in their sensitivity to stimuli. From a psychological standpoint, consumers have natural cognitive, emotional, and behavioral predispositions. Learning and knowledge affects interpretations. For example, meanings attached to such "natural" things as time, space, relationships, and colors are learned and vary widely across cultures. Consumers also learn about marketer-created stimuli like brands and promotions through their experiences with them. Finally, individuals' interpretations of stimuli tend to be consistent with their expectations, an effect referred to as the expectation bias. Consumers' expectations are the result of learning and can be formed very quickly, wielding enormous influence and can be hard to change.
  2. What is meant by the term "inference," and how do consumers use inferences? Interpretation often requires consumers to make inferences. An inference goes beyond what is directly stated or presented. Consumers use available data and their own ideas to draw conclusions about information that is not provided. Consumers use quality signals, images, and missing information to draw inferences regarding message interpretation. Consumers draw inferences about product quality through a number of quality signals, such as price, advertising intensity, and warranties. Others include country of origin as well as brand effects. In general, quality signals operate more strongly when consumers lack the expertise to make informed judgments on their own, when consumer motivation or interest in the decision is low, or when other quality-related information is lacking. Consumers also infer meaning from images, such as from pictures placed in an advertisement. Marketers must understand the meanings

their audiences assign various images and words and use them in combination to construct messages that will covey the desired meaning. When data about an attribute are missing, consumers may assign it a value based on a presumed relationship between that attribute and one for which data are available. Chapter 9

  1. Name and describe the two components of memory. Memory consists of two interrelated components: short-term memory and long-term memory. These are not distinct physiological entities. Instead, short-term memory (STM) or working memory is that portion of total memory that is currently activated or in use. Long-term memory (LTM) is that portion of total memory devoted to permanent storage. STM memory is short lived, meaning that consumers must constantly refresh information through maintenance rehearsal or it will be lost. STM also has limited capacity, thought to be in the range of 5 to 9 bits of information. Organizing individual items into groups of related items that can be processed as a single unit is called chunking. Finally, elaborative activities occur in STM. Elaborative activities are the use of previously stored experiences, values, attitudes, beliefs, and feelings to interpret and evaluate information in working memory as well as to add relevant previously stored information. Long-term memory (LTM) is viewed as an unlimited, permanent storage. Semantic memory is the basic knowledge and feelings an individual has about a concept, and episodic memory is the memory of a sequence of events in which a person participated. Two important memory structures are schemas and scripts. A pattern of associations around a particular concept is termed a schema, and schematic memory is a complex web of associations. Memory of how an action sequence should occur is known as a script.
  2. Bryan is the brand manager for a brand of paper towels and knows that consumers' involvement with this product is low. Name and briefly describe learning theories that are appropriate for this situation, and provide an example of how Bryan can use each to influence consumers to purchase his brand. Classical conditioning and iconic rote learning tend to occur in low-involvement situations. Vicarious learning/modeling is also common in this situation, although it is also common in high-involvement situations. Classical conditioning is the process of using an established relationship between one stimulus (e.g., music, beautiful outdoor scene) and response (e.g., pleasant feelings) to bring about the learning of the same response (e.g., pleasant feelings) to a different stimulus (e.g., the brand). Bryan could pair a pleasant stimulus in advertising, such as a sparkling clean kitchen, with the brand of paper towel, which could increase the likelihood that consumers will like the brand. Iconic rote learning involves learning a concept or the association between two or more concepts in the absence of conditioning. That is, there is neither an unconditioned stimulus (i.e., classical conditioning) nor a direct reward or reinforcement (operant conditioning) involved. Numerous repetitions of a simple message that occur as the consumer scans the environment may result in the essence of the message being learned. Thus, Bryan could use mere repetition of ads to enable consumers to learn about the characteristics or attributes of the brand. In vicarious learning/modeling , it is not necessary for consumers to directly experience a reward or punishment to learn. Instead, they can observe the outcomes of others' behaviors and adjust their own accordingly. A substantial amount of learning occurs in low-involvement situations. Throughout the course of their lives, people observe others using products and behaving in a great variety of situations and do not pay much attention most of the time. However, over time they learn that certain behavior, and products, are appropriate in some situations and others are not. Bryan needs to ensure that users of his brand are portrayed in advertisements.

displays or package cues that link directly back to the advertisements for that brand.

  1. Compare and contrast the terms "brand image," "brand equity," "product positioning," and "brand leverage." Brand image refers to the schematic memory of a brand. It contains the target market's interpretation of the product's attributes, benefits, usage situations, users, and manufacturer/marketer characteristics. It is what people think of and feel when they hear or see a brand name. It is, in essence, the set of associations consumers have learned about the brand. The ability to benefit from a brand image is called brand equity. Product positioning is a decision by a marketer to try to achieve a defined brand image relative to competition within a market segment. That is, marketers decide that they want the members of a market segment to think and feel in a certain way about a brand relative to competing brands, and product positioning is most commonly applied to decisions concerning brands. The terms product position and brand image are often used interchangeably. In general, however, product position involves an explicit reference to a brand's image relative to another brand or the overall industry. Brand image generally considers the firm's image without a direct comparison to a competitor. Brand equity is the value consumers assign to a brand above and beyond the functional characteristics of the product. Brand equity is based on the product position of the brand. Brand leverage , often termed family branding, brand extensions, or umbrella branding, refers to marketers capitalizing on brand equity by using an existing brand name for new products. Chapter 10
  2. List Maslow's hierarchy of needs, in order from lowest to highest, and the four premises on which the hierarchy is based. Maslow's hierarchy of needs, from lowest to highest, are physiological, safety, belongingness, esteem, and self- actualization. This hierarchy is based on four premises: a. All humans acquire a similar set of motives through genetic endowment and social interaction. b. Some motives are more basic or critical than others. c. The more basic motives must be satisfied to a minimum level before other motives are activated. d. As the basic motives become satisfied, more advanced motives come into play.
  3. Name and describe McGuire's cognitive preservation motives. The four cognitive preservation motives are: a. Need for consistency (active, internal)— a basic desire to have all facets or parts of oneself consistent with each other. These facets include attitudes, behaviors, opinions, self-images, view of others, and so forth. b. Need for attribution (active, external)— this set of motives deals with our need to determine who or what causes the things that happen to us. c. Need to categorize (passive, internal)— people have a need to categorize and organize the vast array of information and experiences they encounter in a meaningful yet manageable way. So they establish categories or mental partitions that allow them to process large quantities of information. d. Need for objectification (passive, external)— reflects needs for observable cues or symbols that enable people to infer what they feel and know.
  1. Regulatory focus theory suggests that consumers will react differently depending on which broad set of motives is more salient. Name and describe the two prominent sets of motives, and describe how consumers will react when each set of motives is more noticeable. The two prominent sets of motives are termed: a. Promotion-focused motives— which revolve around a desire for growth and development and are related to consumers' hopes and aspirations. When promotion-focused motives are more salient, consumers seek to gain positive outcomes, think in more abstract terms, make decisions based more on affect and emotion, and prefer speed versus accuracy in their decision making. b. Prevention-focused motives— which revolve around a desire for safety and security and are related to consumers' sense of duties and obligations. When prevention-focused motives are more salient, consumers seek to avoid negative outcomes, think in more concrete terms, make decisions based more on factual substantive information, and prefer accuracy over speed in their decision making.
  2. The Five-Factor Model of personality identifies five core traits. Name each trait, and explain the manifestation of each. The five core traits are: a. Extroversion— prefer to be in a large group rather than alone, talkative when with others, and bold b. Instability— moody, temperamental, and touchy c. Agreeableness— sympathetic, kind to others, and polite with others d. Openness to experience— imaginative, appreciative of art, and find novel solutions e. Conscientiousness— careful, precise, and efficient
  3. Brand personality is a set of human characteristics that become associated with a brand. What are the basic dimensions of brand personality and their facets? The basic dimensions of brand personality and their facets are: a. Sincerity— down-to-earth, honest, wholesome, cheerful b. Excitement— daring, spirited, imaginative, up-to-date c. Competence— reliable, intelligent, successful d. Sophistication— upper class, charming e. Ruggedness— outdoorsy, tough Chapter 11
  4. A local Kia automobile dealership owner conducted some informal market research and found that many consumers had negative attitudes toward this brand. Explain what can be done to change the cognitive component of consumers' attitudes.

brand attitudes. Trustworthiness —despite being paid for their endorsements, celebrities often develop strong and credible public personas that consumers trust, and trust translates into purchases. Expertise —some celebrities are also experts, particularly in music and sports. Aspirational aspects— consumers may identify with or desire to emulate the celebrity, and as a consequence, they may imitate the behavior and style of a celebrity through purchases of similar brands and styles. Meaning transfer— consumers may associate known characteristics of the celebrity with attributes of the product that coincide with their own needs or desires.

  1. Compare and contrast one-sided and two-sided messages, and explain why marketers would use a two-sided message. In advertisements and sales presentation, marketers generally present only the benefits of their product without mentioning any negative characteristics it might possess or any advantages a competitor might have. These are one- sided messages because only one point of view is expressed. The idea of a two-sided message , presenting both good and bad points, is counterintuitive, and more marketers are reluctant to try such an approach. However, two-sided messages are generally more effective than one-sided messages in changing a strongly held attitude. One reason is because they are unexpected and increase consumer trust in the advertiser. They are particularly effective with highly educated consumers. However, product type, situation variables, and advertisement format influence the relative effectiveness of the two approaches. Chapter 12
  2. Compare and contrast the independent self-concept and the interdependent self-concept. The independent self-concept emphasizes personal goals, characteristics, achievements, and desires. Individuals with an independent self-concept tend to be individualistic, egocentric, autonomous, self-reliant, and self-contained. They define themselves in terms of what they have done, what they have, and their personal characteristics. An interdependent construal of the self is based more on the common Asian cultural belief in the fundamental connectedness of human beings. This interdependent self-concept emphasizes family, cultural, professional, and social relationships. Individuals with an interdependent self-concept tend to be obedient, sociocentric, holistic, connected, and relation oriented. They define themselves in terms of social roles, family relationships, and commonalities with other members of their groups. Independent and interdependent self-concepts are not discrete categories; rather, they are constructs used to describe the opposite ends of a continuum along which most cultures lie.
  3. In general, consumers prefer brands that match their self-concepts. However, the degree to which such "self-image congruity" influences brand preference and choice depends on various factors. Explain these factors. The degree to which "self-image congruity" matters depends on a number of product, situational, and individual factors. First, self-image congruity is likely to matter more for products such as perfume, where value-expressive symbolism is critical, than for more utilitarian products. Second, self-image congruity (especially ideal social self) is likely to matter more when the situation involves public or conspicuous consumption (e.g., having a beer

with friends at a bar) than when consumption is private (e.g., having a beer at home). Finally, self-image congruity is likely to matter more for consumers who place heavy weight on the opinions and feelings of others (called high self-monitors ) than for consumers who do not (called low self-monitors ), particularly in public situations where consumption behaviors can be observed by others.

  1. You are a marketing manager and want to measure the lifestyles of the various market segments served by your company. Discuss typical variables you should include in your studies. Psychographic or lifestyle studies typically include the following: a. Attitudes— evaluative statements about other people, places, ideas, products, and so forth. b. Values— widely held beliefs about what is acceptable or desirable. c. Activities and interests— nonoccupational behaviors to which consumers devote time and effort, such as hobbies, sports, public service, and church. d. Demographics— age, education, income, occupation, family structure, ethnic background, gender, and geographic location. e. Media patterns— the specific media the consumers utilize. f. Usage rates— measurements of consumption within a specified product category; often consumers are categorized as heavy, medium, light, or nonusers.
  2. Discuss the two dimensions on which the VALS typology is based. The two dimensions on which the VALS typology is based are primary motivation and resources. The VALS system identifies three primary motivations: a. Ideals motivation— these consumers are guided in their choices by their beliefs and principles rather than by feelings or desire for social approval. They purchase functionality and reliability. b. Achievement motivation— these consumers strive for a clear social position and are strongly influenced by the actions, approval, and opinions of others. They purchase status symbols. c. Self-expression motivation— action-oriented consumers strive to express their individuality through their choices. They purchase experiences. The second dimension, termed resources, reflects the ability of individuals to pursue their dominant self-orientation. It refers to the full range of psychological, physical, demographic, and material means on which consumers can draw.
  3. You've just started working at a company, and your supervisor wants to use the PRIZM lifestyle segmentation scheme but is a bit confused because there are so many segments (i.e., 66 individual segments). While it does seem like a lot to understand, you are also aware that these segments are organized into broader social and life stage groups. Explain these broader groups. The broadest social groupings are based on "urbanicity," which is determined by population density, relates to where people live, and is strongly related to the lifestyles people lead. The four major social groups are:

d. Crowding— generally produces negative outcomes for both the retail outlet and the consumer. While crowding may have a negative influence on Pablo's non-Hispanic customers, this may not be a significant factor for Pablo's Hispanic consumers.

  1. Tim is looking for a gift for his relatively new girlfriend—he likes her a lot but is not sure if she's "the one." He's facing somewhat of a dilemma with this gift because he doesn't want to send the wrong message to her, but he doesn't want to appear cheap, either. Moreover, he's not sure how she really feels about him. Explain the types of symbolic meaning the gift he selects might hold. Gifts communicate symbolic meaning on several levels. The gift item itself generally has a known, or knowable, price that can be interpreted as a measure of the esteem the giver has for the receiver. The image and functionality of the gift implies the giver's impression of the image and personality of the receiver. It also reflects on the image and thoughtfulness of the giver. Finally, the nature of a gift can signify the type of relationship the giver has or desires with the receiver, or it can alter the relationship between the giver and receiver.
  2. Explain why ritual situations are important to marketers. A ritual situation can be described as a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning. Ritual situations are of importance to marketers because they often involve prescribed consumption behaviors. While there is significant variation across individuals and households, there is enough shared behavior that marketers can develop products and promotions around the common ritual situations that arise each year. Marketers also attempt to change or create consumption patterns associated with ritual situations. However, marketers must also be aware that ritual situations can also result in injurious consumption (i.e., binge or excessive drinking).
  3. You are tasked with the responsibility of developing a situation-based marketing strategy. Explain how you would go about doing that. Because most people "create" many of the situations they face, a marketer needs to identify the different situations that might involve the consumption of a product and determine which products or brands are most likely to be purchased or consumed across those situations. One method of approaching this is to jointly scale situations and products, and Figure 13-3 provides an illustration. Determining how products are currently used across situations can help the marketer develop appropriate advertising and positioning strategies. Or a marketer may try to change the situation for which a product is used. Another approach for developing situation-based marketing strategies is to follow these five steps: a. Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage situations that influence the consumption of the product. b. Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment. c. Construct a person-situation segmentation matrix. The rows are the major usage situations and the columns are groups of users with unique needs or desires. Each cell contains the key benefits sought. d. Evaluate each cell in terms of potential (sales volume, price level, cost to serve, competitor strength, and so forth). e. Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your

capabilities. Chapter 14

  1. Name and describe the three types of consumer decision making, and discuss the factor that influences the type consumers will use. The three types of consumer decision making are nominal, limited, and extended. As the consumer moves from a very low level of involvement with the purchase to a high level of involvement, decision making becomes increasingly complex. Purchase involvement is the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase. While purchase involvement is a continuum, it is useful to consider nominal, limited, and extended decision making as general descriptions of the types of processes that occur along various points along the continuum. Nominal decision making , sometimes referred to as habitual decision making , in effect involves no decision per se. A problem is recognized, internal search provides a single preferred solution, that brand is purchased, and an evaluation occurs only if the brand fails to perform as expected. Nominal decisions occur when there is very low involvement with the purchase, and there are two distinct categories: brand loyal decisions and repeat purchase decisions. Limited decision making involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little postpurchase evaluation. It covers the middle ground between nominal decision making and extended decision making. Extended decision making involves an extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant postpurchase evaluation. It is the response to a high level of purchase involvement. After the purchase, doubt about its correctness is likely and a thorough evaluation of the purchase takes place.
  2. Explain what is meant by the term "problem recognition." Problem recognition is the first stage in the consumer decision process and is the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process. An actual state is the way an individual perceives his or her feelings and situation to be at the present time. A desired state is the way an individual wants to feel or be at the present time. Any time the desired state is perceived as being greater than or less than the actual state, a problem exists. It is important to note that it is the consumer's perception of the actual state that drives problem recognition, not some objective reality.
  3. Joan currently drives a Toyota automobile, and it has been a very reliable car. However, she desires to own a BMW, but her finances cannot support such a purchase because she has to pay her mortgage, utilities, and her son's college tuition. Explain the two factors that affect one's desire to resolve a particular problem, and specify which one most likely is influencing Joan's inaction to resolve this discrepancy between her actual state and her desired state. The level of one's desire to resolve a particular problem depends on two factors: (a) the magnitude of the discrepancy between the desired and actual states and (b) the relative importance of the problem. Joan has an automobile that works just fine, so the magnitude of the discrepancy is not large enough to spur her to action. However, if her car were damaged in an accident, then the magnitude of the discrepancy would become much larger. To Joan, she has other, more important financial commitments that preclude her from solving this problem. Compared to her other more important problems, this one is perceived as relatively unimportant.
  4. List the four concerns marketing managers have related to problem recognition. First, they need to know the problems consumers are facing. Second, they must know how to develop the marketing mix to solve consumer problems. Third, managers occasionally want to cause consumers to recognize problems. Finally, there are times when they desire to suppress problem recognition among consumers.
  5. Alex is a brand manager tasked with discovering consumer problems related to the several products and brands his company manufactures. Name and describe three of the several approaches discussed in the

b. How can they drive consumers to their information? This is a daunting and important task given the explosion in the amount and sources of information on the Web. Offline media are one way for calling attention to a website. Banner ads are another way to drive traffic to websites. Behavioral targeting (i.e., tracking consumer click patterns on a website and using that information to decide on banner ad placement) appears to improve banner performance across various outcomes including click-through rates. Search engine optimization (SEO) involves techniques designed to ensure that a company's Web page appears high on a results list. Website design is also critical, and driving ongoing and repeat traffic to a website requires such factors as relevant and frequently updated content. c. How (if at all) can online selling be utilized or integrated with existing channels? (This issue is addressed in Chapter 17.)

  1. Discuss the market characteristics that influence the expected benefits and perceived costs of search. Market characteristics include the number of alternatives, price range, store distribution, and information availability. It is important to keep in mind that it is the consumer's perception of, or beliefs about, the market characteristics that influence shopping behavior, not the actual characteristics. The greater the number of alternatives available to resolve a particular problem, the more external search there is likely to be. The perceived range of prices among equivalent brands in a product class is a major factor in stimulating external search. If the consumer perceives a wide variation on prices, efficient shopping would lead to significant financial gain. Store distribution —the number, location, and distances between retail stores in the market—affects the number of store visits a consumer will make before purchase. Because store visits take time, energy, and in many cases money, a close proximity of stores will often increase this aspect of external search. In general, information availability, including format, is directly related to information use.
  2. Grant is the marketing manager for a consumer package goods manufacturer. He realizes that consumers use nominal decision making when purchasing his products. Explain how the marketing strategies and tactics he should use would differ if his company's brand is in the consumers' evoked set compared to when it is not. The two marketing strategies appropriate for consumers using nominal decision making are maintenance strategy and disrupt strategy. Maintenance strategy is appropriate if the brand is purchased habitually by the target market and the marketer's strategy is to maintain that behavior (i.e., brand is in evoked set). This requires consistent attention to product quality, distribution (avoiding out-of-stock situations), and a reinforcement advertising strategy. In addition, the marketer must defend against the disruptive tactics of competitors. If the brand is not part of the evoked set and the target market engages in nominal decision making, the marketer's first task is to disrupt the existing decision patterns. This is a difficult task because the consumer does not seek external information or even consider alternative brands before a purchase. Low-involvement learning over time could generate a positive product position for the marketer's brand, but this alone would be unlikely to shift behavior. In the long run, a major product improvement accompanied by attention-attracting advertising could shift the target market into a more extensive form of decision making. In the short run, attention-attracting advertising aimed specifically at breaking habitual decision making can be successful. Sales promotions, striking package designs, and point-of-purchase displays may disrupt a habitual purchase sequence. Comparative advertising is also often used for this purpose. Chapter 16
  3. Compare and contrast the three types of consumer choice processes. The three types of consumer choice processes are affective choice, attitude-based choice, and attribute- based choice. Affective choices tend to be more holistic in nature. The brand is not decomposed into distinct components, and the components are not evaluated separately from the whole as they are in the attribute-based choice. The evaluation of such products is generally focused on the way they will make the user feel as they are used. The evaluation itself is often based exclusively or primarily on the immediate emotional response to the product or service. Attribute-based choice requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands. Attitude-based choices , on the other hand, involve the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice. There can also be combinations of these forms. Motivation, information availability, and situational factors interact to determine which choice process will be used. The greater the motivation to make an optimal decision,

the more likely an attribute-based choice will be made. In general, the importance of making an optimal decision increases with the value of the item being considered and consequences of a nonoptimal decision.

  1. Evaluative criteria are the various dimensions, features, or benefits a consumer looks for in response to a specific problem. Discuss the two types. The type of evaluative criteria a consumer uses in a decision varies from tangible cost and performance features to intangible factors such as style, taste, prestige, feelings generated, and brand image.
  2. Amelia is a marketing researcher and conducts studies to determine which evaluative criteria consumers use in a given purchase situation, their judgments of brand performance on specific criteria, and the relative importance they place on evaluative criteria. Explain how Amelia does this. Determination of which evaluative criteria are used. To determine which criteria are used by consumers in a specific product decision, the marketing researcher can utilize either direct or indirect methods of measurement. Direct methods include asking consumers what criteria they use in a particular purchase or, in a focus group setting, noting what consumers say about products and their attributes. Direct measurement techniques assume that consumers can and will provide data on the desired attributes. Indirect measurement techniques differ from direct in that they assume consumers will not or cannot state their evaluative criteria. Hence, frequent use is made of indirect methods such as projective techniques, which allow the respondent to indicate the criteria someone else might use. Perceptual mapping is another useful indirect technique for determining evaluative criteria. Determination of consumers' judgments of brand performance on specific evaluative criteria. A variety of methods are available for measuring consumers' judgments of brand performance on specific attributes. These include rank ordering scales, semantic differential scales (most widely used), and Likert scales. Determination of the relative importance of evaluative criteria. The importance assigned to evaluative criteria can be measured either by direct or by indirect methods. No matter which technique is used, the usage situation should be specified as attribute importance varies with the situation. The constant sum scale is the most common method of direct measurement, and the most popular indirect measurement approach is conjoint analysis.
  3. Explain the difference between a compensatory decision rule and a noncompensatory decision rule. Noncompensatory rule means that a high level of one attribute cannot offset a low level of another. A compensatory rule means that consumers average across attribute levels, allowing for a high level of one value to offset a low value of another.
  4. Think of a major purchase decision you (or your family) have made. Identify from the decision rules