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Chapter-by-chapter aids: Chapter 5
targeting the growing Hispanic subculture in California (and other areas). Some of the changes
in "product" include more "familiar" brands imported from Mexico and different varieties of food,
different types of potatoes. Place would be important. Stores should be located in places that
are convenient to Hispanics. There might be some problems in maintaining inventories or
getting timely deliveries of some products – especially if they are not ones that are readily
Hispanic shoppers tend to be less accepting of self-service grocery shopping than is typical for
some segments of the U.S. population. In addition, "local" media – such as Hispanic radio
stations and newspapers – oriented toward Hispanic shoppers might be the best bet for
Hispanics are not in the top income groups. While that is true, it is nevertheless the case that
lower-income Hispanics are willing to pay a bit extra to be able to shop at a store where the
products and service offered match their taste.
his target market – and then determine his four Ps accordingly. An upscale restaurant
(product) might seek a prestigious location and price its menu accordingly. Further, the
promotion might seek to establish an image for the restaurant that would attract the desired
different image and combination of the four Ps. For example, the university bar might provide
good hamburgers, and encourage singing and other activities that would make it an attractive
meeting place, whereas the neighborhood bar might seek a quieter atmosphere.
Personal examples are required to deepen understanding. In reviewing students' examples, it
may be useful to highlight the distinction between reference groups with whom a student has a
the type of reference group, the effect of reference groups – not only as a direct influence on
consumer behavior but also as a basis of social comparison – is important in many buying
5-11. Personal examples here will vary. The purpose of the examples is to prompt students to think
about how purchase situation has influenced them personally. The text discussion of purchase
situation emphasizes the reason for a purchase, time factors (when a purchase is made, time
5-12. Personal examples here will vary. The purpose of the examples is to prompt students to think
about the varied information sources that might be used when making a purchase that involves
extensive problem-solving. The text discussion of extensive problem-solving (see section “The
Consumer Decision Process”) suggests that extensive problem-solving is more likely to occur
discuss as "marketing" sources (retail salespeople, advertising, product brochures, company
"hot-lines," etc.) and "nonmarketing" sources (friends, parents, opinion leaders, articles in
Part IV
IV-5-4 Perreault, Cannon, & McCarthy
Consumer's Report, etc.). At the end of the discussion, it is useful to "wrap up" by pointing out
that many of the sources consulted are not controlled by marketing management, and that
means that word-of-mouth can be especially important for purchases that involved extensive
problem-solving.
lead-in to the consumer product classes – convenience, shopping, specialty, and unsought
products. The student should not be expected to use these terms. Rather, the instructor should
encourage the students to develop their own terminology and generalizations rather than
reading ahead. Later, the words they use can easily be related to the product classes. As an
extension of this exercise, it will be worthwhile to have the students group these products into
somewhat similar categories based on the characteristics they have discussed. Such a
grouping will make the traditional terms much more meaningful when they are introduced later.
The table on the next page is in the format suggested in the question. A useful way to
approach class discussion is to put the empty table on the board and then ask volunteers to
begin to "fill in" the empty boxes.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter-by-chapter aids: Chapter 5
Product
How
consumers
would shop?
How far
would they
go?
Would they
buy by
brand?
Would they
compare with
other brands?
Other factors
they'd
consider?
Haircut
Little, once a
good solution
is found
Moderate
Yes (favorite
haircutter)
No – hard to
compare
without risk
convenience
(getting an
appointment,
etc.)
Shampoo
Convenience
Not far
Probably
Unlikely
Past
experience
Digital
Camera
Search for
information
Far – if
needed
Brand might
be important –
quality
Yes
Might need
expert advice,
perhaps from
salesperson
Tennis
Racket
Extensive
Moderate
Probably
Yes
See intro to
Chapter 1
Dress Belt
Want choice
Must be
convenient to
other clothes
Probably not
No
Must match
other items
Cell Phone
Quite a bit of
search
Far
Yes
Yes
Decide on
features and
compare on
price, brand
Insurance
Unsought
Not far
Perhaps – as
a way to
reduce risk
Yes
Not unsought
for young
parents, etc.
Ice Cream
Cone
Impulse
Not far
No
No
Must be at the
right place at
right time!
Checking
Account
Some
comparison
Not far – must
be convenient
Yes
Yes
Focus on low
fees if
services seen
as the same
The "answers" provided in this template are a starting point, but they should not be taken as
"correct" or the only answer. In fact, it is very likely that different students will come up with
consumers. The tennis racket, dress belt, cell phone, and digital camera probably are shopping
products for most consumers and this also affects the other three Ps. Haircuts and checking
accounts are services, and it is hard to evaluate the service in advance. Life insurance is also
a service, but it is probably an unsought product for many consumers – at least for many
college students. Of course, any of these products except life insurance might achieve a
Part IV
IV-5-6 Perreault, Cannon, & McCarthy
Essentials of Marketing to illustrate and highlight, in an integrated way, many of the key
concepts introduced in each chapter (or related set of chapters). The Apple case is illustrative.
It illustrates a wide array of concepts related to consumer behavior that appear in Exhibit 5-2
and are expanded in Exhibit 5-8. After students have highlighted some of the concepts that are
illustrated in this case, it might be useful to encourage them to look for and think about the
o Experience after the purchase – word of mouth, blogs, and buying accessories (all of
these were examples of sharing experiences with others)
• Postpone decision – some consumers may be waiting for the cell phone model
• Feedback based on prior – the need for accessories and concerns about the iPod no
longer being cool, the feeling of betrayal early adopters felt when the iPhone price was
later reduced.
interviewing skills and shows them how much they can learn about consumer behavior by
talking to someone about how and why he buys. The two purchase scenarios typically
demonstrate very different buying experiences.
This exercise works very well as a class discussion. The instructor may start by writing each of
the elements in Exhibit 5-8 horizontally across the board. On the far left side add two other
headings – student name and product purchased. Then call on a few students and walk them
through the elements of consumer behavior and routine purchase decisions. Then call on
some other students to ask them to describe their important purchase. The differences are
usually striking. For routine purchases, students typically find that their interviewees may have
trouble thinking about their purchases and that they skip some of the steps altogether. On the
other hand, the important purchases involve most (or all) of the stages and each step may take
considerable time. This exercise leads naturally into a discussion of the problem-solving
continuum (Exhibit 5-10) – comparing routinized response behavior, limited problem solving,
and extensive problem solving. An instructor might want to extend the discussion by asking
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter-by-chapter aids: Chapter 5
Instructor's Manual to Accompany Essentials of Marketing IV-5-7
students how their findings affect marketers. Choose a product from each of the above
categories and think about how the four Ps may differ.
DISCUSSION OF COMPUTER-AIDED PROBLEM 5: SELECTIVE PROCESSES
A marketing manager for a magazine subscription service is analyzing the direct mail promotion she uses
to sell subscriptions. She is using mailing lists to target her mail promotion. The different customers
reached with different lists respond to the mailing in different ways. In addition, the costs are different with
different lists. The problem emphasizes the importance of consumers' selective processes to promotion
planning, and shows how differences in selective processes among different segments of consumers can
affect the profitability of a marketing strategy.
The problem also introduces the student to some of the detail of how companies actually evaluate and
select "lists" for mail promotions. The problem is quite realistic in that regard. Thus, this problem could
also be used with Chapter 13 (promotion) where direct-response promotion is discussed in more detail.
The initial spreadsheet for the problem is given below:
P L U S - Spreadsheet
List 1
List 2
Cost per Mail Promotion Piece
0.32
*
0.36
*
Revenue from Subscription
3.12
*
3.12
*
Number of Items Mailed
25000
*
25000
*
Percent Bad Addresses on Mail List
10.00
*
8.00
*
Number of Consumers Who Receive Mailing
22500
23000
Percent Lost-Selective Exposure
8.00
*
7.00
*
Number of Consumers Who Read
20700
21390
Percent Lost-Selective Perception
70.00
*
65.00
*
Number of Consumers Who Understand
6210
7487
Percent Lost-Selective Retention
50.00
*
50.00
*
Number of Consumers Who Subscribe
3105
3743
Total Revenue from Publishers
9687.60
11678.16
Total Mail Promotion Cost
8000.00
9000.00
Expected Profit
1687.60
2678.16
Answers to Computer-Aided Problem 5:
a. Based on the initial spreadsheet (above), List 2 appears to be the best choice. This list costs
more per initial mailing, but it also reaches a more "interested" target audience. The expected
b. The firm will need to send out a mailing of about 32,665 items. The student should have selected
list 2 in the question above. Then, the What If analysis can be used to vary the number of items
mailed – to see what profit is produced by mailings of different sizes. Some students will not get
an exact answer – but instead will be in the "ballpark.” For the purposes here, this is all right
(unless, of course, you have emphasized that you want an exact answer). The reason there
might be some difference in responses because some students use the What If analysis
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Part IV
involved. Problems that follow will build on this approach. The spreadsheet with the "correct"
answer is given below.
Chapter-by-chapter aids: Chapter 5
This case can be used here to discuss different elements in the model of buyer behavior. To stimulate
discussion, the instructor might start by showing the students Exhibits 5-2 and 5-8. For example, family
buying behavior is particularly relevant since kids use the product but parents are likely paying for it. The
role of reference groups may also be relevant since there may be peer pressure to participate for fear of
others getting ahead. A discussion might also examine the needs that NOCO United Soccer Academy
addresses. The instructor might ask, “What needs does NOCO United fill?” and “What other needs could
This case can be used to show how different customers' attitudes affect their shopping and buying
behavior. The owner of this motel must understand these different market segments and select a strategy
that fits with what some customers want and what he can or is willing to offer. The case frames the issues
in terms of whether the owner of the motel should join the Holiday Inn motel group, the Days Inn motel
group, or stay an independent. However, in point of fact, the chains are focused on serving different
market segments with different needs. See case discussion.
Part IV
Situation: You are a marketing assistant for Auntie Em’s Cookie Company, which makes and distributes
packaged cookies through grocery stores. Your company recently ran a test market for a new brand of
low-fat cookies called Tastee DeeLites. The new brand meets government standards to be labeled and
advertised as “low fat,” so the ads and package used in the test market highlighted that benefit. Test-
market sales were very promising. However, now a consumer activist group has created a website
(www.TasteeDeLIES.com) that claims Tastee DeeLites package and ads are misleading because the
This scenario raises questions about consumer attitudes and beliefs. Do consumers that read “low fat”
assume “low calorie”? If so, would that make the ads and packaging deceptive? The AMA Statement of
Ethics (Exhibit 1-7) indicates that marketing communications should not be deceptive. In discussing this
scenario in class, an instructor might start with the question of deception. An instructor could poll the
CHAPTER 5 – COMMENTS ON USE OF CREATING MARKETING PLANS
QUESTION WITH THIS CHAPTER
The Marketing Plan Coach software on the text website includes a sample marketing plan for Hillside
Veterinary Clinic. Look through the “Customers” section and consider the following questions.
This chapter includes consumer behavior models that evaluate the consumer behavior process and
influences on it. Influences include the following: 1) economic needs, 2) psychological variables, 3) social
influences, and 4) purchase situation. An instructor might ask why the marketing plan provides so little
information about these factors – “Do they matter in the selection of a veterinary clinic or the services
purchased?” The answer is probably that this information can be difficult and costly to obtain in a large
Chapter-by-chapter aids: Chapter 5
sample. On the other hand, the clinic staff may have some ideas about the relative influence of each of
the factors. A low-cost way to learn more would be to interview staff members about HVC’s customers.
Animal health care services are largely driven by situational factors – a new puppy requires shots, a sick
cat requires a vet visit, or a dog’s injured paw needs attention.
The plan has more information on the consumer decision process: 1) need awareness, 2) problem-
solving [searching for information, identifying alternatives, setting criteria, and evaluating alternatives], 3)
purchase decision, and 4) experience after the purchase. The survey in Appendix A indicates criteria
important to the selection of a vet clinic (see questions 7 – 11). This survey also includes data about
which services are used and the frequency of visits. A review of HVC’s customer records might also
indicate which services are used most frequently – and HVC personnel could offer ideas about how
Dr. Hardy would like to sell more preventative services – like dental care. It might help to know more
about consumer attitudes for services – and their interest in these services. It might also be helpful to
know how consumers make decisions on elective (as opposed to required) treatment for their pets. Does
the purchase process differ? Is there a time of year when such services might be more affordable? What
information would be helpful to consumers before making these decisions?
Part IV
