978-0134129938 Chapter 1 Solution Manual

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REVIEW QUESTIONS

1-1. Provide a definition of consumer behavior.

(1 minute, Chapter Objective 1, AACSB: Application of Knowledge

1-2. What are demographics? Give three examples of demographic characteristics.

(1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge)

1-3. What is market segmentation? Give three examples of market segments.

The use of market segmentation strategies means targeting a brand only to specific groups of

consumers rather than to everybody—even if it means that other consumers who do not belong to

(1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge)

1-4. What is role theory, and how does it help us to understand consumer behavior?

The perspective of role theory takes the view that much of consumer behavior resembles actions in a

play. As in a play, each consumer has lines, props, and costumes necessary to put on a good

(1.5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)

1-5. What do we mean by an exchange?

(1 minute, Chapter Objective 2, AACSB: Application of Knowledge)

1-6. Why is it important for businesses to learn about their heavy users?

Because heavy users account for a substantial proportion of revenues. They are the customers that

(1.5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)

1-7. What is “big data”?

Big data refers to the collection and analysis of extremely large datasets. For example,

(1 minute, Chapter Objective 5, AACSB: Information Technology)

1-8.What is popular culture, and how does this concept relate to marketing and consumer behavior?

Popular culture, consisting of the music, movies, sports, books, celebrities, and other forms of

(1 minute, Chapter Objective 3, AACSB: Reflective Thinking)

1-9. What do we mean by the term global consumer culture?

(1 minute, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments)

1-10. What is the difference between C2C and B2C e-commerce?

(1.5 minutes, Chapter Objective 5, AACSB: Application of Knowledge)

1-11. Name two different disciplines that study consumer behavior. How would their

approaches to the same issue differ?

Two disciplines that study consumer behavior are psychology and sociology. Psychologists study

(1.5 minutes, Chapter Objective 6, AACSB: Application of Knowledge)

1-12. This chapter states “people often buy products not for what they do but for what they mean. “

Explain the meaning of this statement and provide an example.

Role theory suggest that when people act out different roles in their lives, they also alter their

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking)

1-13. What are the major differences between the positivist and interpretivist paradigms in consumer

research?

A positivist approach to consumer behavior emphasizes that human reason is supreme and that

there is a single, objective through that science can discover. This stresses functionality, technology

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking)

CONSUMER BEHAVIOR CHALLENGE

Discussion Questions

1-14. Name some products or services that your social group uses a lot. State whether you agree or

disagree with the notion that these products help to form group bonds. Support your argument with

examples from your list of products your group uses.

Discussion of this question is similar to that pertaining to the first question. In both cases, the focus is

on whether consumption behavior has a wider meaning—that of group bonding or identification. The

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking)

1-15. What aspects of consumer behavior would interest a financial planner? A university

administrator? A graphic arts designer? A social worker in a government agency? A nursing

instructor?

The listing of the aspects of consumer behavior corresponding to these positions should reflect the

particular aspects of each position. For example, a financial planner depends on consumers’

willingness to postpone consumption in order to save and invest money to have more later. A social

worker must be concerned about people’s attitudes toward government, social work in general, and

(7 minutes, Chapter Objectives 3 and 6, AACSB: Application of Knowledge and Reflective

Thinking)

1-16. Critics of targeted marketing strategies argue that this practice is discriminatory and unfair,

especially if such a strategy encourages a group of people to buy a product that may be injurious to

them or that they cannot afford. For example, community leaders in largely minority neighborhoods

have staged protests against billboards promoting beer or cigarettes in these areas. However, the

Association of National Advertisers argues that banning targeted marketing constitutes censorship

and thus is a violation of the First Amendment. What are your views regarding this issue?

It is important to guide discussion to the legitimate interests on both sides. In this situation, however,

the discussion should also examine the legitimacy of each side’s basic point. For what groups should

target marketing not be allowed? On the other hand, under what specific circumstances should

1-17. The chapter discussed a study that compared and contrasted people who lead “happy” lives versus

those with “meaningful” lives. How does this distinction relate to the way you decide to spend your

time and money? How does it relate to consumer behavior more generally?

Students should be able to differentiate between a want and a need. The discussion should identify

how meaningfulness relates to activities that express personality and impact others in a positive way.

1-18. A book bemoans the new wave of consumer-generated content, labeling it “the cult of the

amateur.” It compares the social networking phenomenon to the old story about the monkeys: If you

put an infinite number of monkeys in a room with an infinite number of typewriters, eventually they

will (by hitting keys randomly) reproduce all the major works of literature. In other words, the large

majority of user-generated content is at about the same level, and the future of professionally

produced, quality work is in doubt. Do you agree or disagree with this assertion?

Students who are members of a social networking community or those who actively blog, might

strongly defend the practice and might be offended by the monkey reference. Even though they might

Some students might also mention that not all “professionally produced” work can be labeled as

1-19. Will the Web bring people closer together or drive each of us into our own private virtual

worlds? Wired Americans are spending less time with friends and family, less time shopping in

stores, and more time working at home after hours. More than one-third of consumers who have

access to the Internet report that they are online at least 5 hours a week. Also, 60 percent of Internet

users say they have reduced their television viewing, and one-third say they spend less time reading

newspapers—those that still remain as many fold due to a lack of readership and advertising

revenue. However, a study by the Pew Internet and American Life Project reported that more than

half of users the group surveyed feel that e-mail actually strengthens family ties. Users reported far

more off-line social contact than nonusers. These results argue that people spend more time than ever

with others. It is just that they form strong relationships over the Internet instead of in person. But

the author of the first survey disagrees. As he observes, “If I go home at 6:30 in the evening and

spend the whole night sending e-mail and wake up the next morning, I still haven’t talked to my wife

or kids or friends. When you spend your time on the Internet, you don’t hear a human voice and you

never get a hug.”

A follow-up study found that it works both ways—extroverts tend to make even more friends on the

Web, whereas introverts feel even more cut off from the rest of the world. This has been termed the

“rich get richer” model of Internet use. What is your take on this issue? Is our wired world turning us

into “digital hermits” or does it help us to expand our boundaries by interacting with other people

whom we might not otherwise meet? What are the good and bad consequences of this profound

change in how we interact with other people?

This is another question that does not have an objectively right or wrong answer. The goal is to

make the student think about the pros and cons of computer-mediated interactions and to be able to

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking)

Apply

1-20. Talk to car owners and probe to see what (if any) relationships they have with their vehicles.

Do these feelings correspond to the types of consumer/product attachments we discussed in this

chapter? How are these relationships acted on (hint: see if any of the respondents have nicknames

for their cars, or if they “decorate” them with personal items)? The types of relationships referred

to in the text are the following:

Self-concept attachment: The product helps to establish the user’s identity.

Nostalgic attachment: The product serves as a link with a past self.

Interdependence: The product is a part of the user’s daily routine.

Love: The product elicits emotional bonds of warmth, passion, or other strong emotion.

Student reports should attempt to classify their findings based on these relationships. They should

(5 minutes, Chapter Objectives 1 and 2, AACSB: Analytic Thinking and Reflective Thinking)

1-21. The specific way we choose to satisfy a need depends on our unique history, learning

experiences, and cultural environment. For example, two classmates may feel their stomachs rumble

during a lunchtime lecture. If neither person has eaten since the night before, the strength of their

respective needs (hunger) would be about the same. However, the ways each person goes about

satisfying his need might be quite different. Conduct this exercise with classmates: “As you probably

know, a prisoner who is sentenced to die traditionally gets to choose his or her ‘last meal’. If you had

to do this (let’s hope not), describe your last meal in detail.” Compare the responses you get,

especially among people from different ethnic or cultural backgrounds. What similitatires and

differences emerge?

Student reports should attempt to classify their findings based on these relationships. They should

(5 minutes, Chapter Objectives 1 and 2, AACSB: Analytic Thinking and Reflective Thinking)

CASE STUDY TEACHING NOTES

Honda’s ASIMO

Summary of Case

Honda’s ASIMO is a robot. He’s not available for purchase yet, but already people are ready for features

like Facial Recognition Technology. FRT can do many things relevant for marketers such as estimate

your general physical characteristics and interface with devices using apps like Facedeal.

Suggestions for Presentation

It is suggested that this case be presented with the content related to technology and consumer behavior ()

in the chapter.

Suggested Answers for Discussion Questions

CS 1-1. What are the most likely consumer market segments for robots? Which consumer

charactersitics would be important to determine these market segments? What types of roles

do you envison robots playing for these consumers?

(5 – 7 minutes, Chapter Objectives 3 and 5, AACSB: Analytic Thinking)

CS 1-2. Reflect on the value of FRT as a marketing tool. Give one example that illustrates how this

technology can be most effectively used by marketers?

(10 – 12 minutes, Chapter Objectives 4 and 5, AACSB: Ethical Understanding and Reasoning

Abilities and Analytic Skills)

CS 1-3. Discuss the “creepiness” concerns that some consumers have about robots and FRT. How can

marketers address or even overcome these issues?

(10-12 minutes, Chapter Objectives 4 and 5, AACSB: Ethical Understanding and Reasoning Abilities and

Analytical Skills)

Additional Support Material

STUDENT PROJECTS

Individual Projects

1. Ask students about their involvement with social networking sites and/or blogs. Ask them to

explain why they are using them. What benefits do they derive from them? Who are the target

audiences for their information? Have them explain their concerns about privacy, if any.

Student responses about their involvement with social networking sites and blogs will vary, and

(7 minutes, Chapter Objective 5, AACSB: Reflective Thinking)

2. This assignment can really be fun for the class and the presenter. Have a student wear or bring

to class a recent clothes purchase. Have them explain how his or her purchase decision was

influenced by different economic, social, cultural, and/or psychological variables.

The individual responses to this activity will be as varied as the personalities of the students in

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking

3. This activity can be done as an extension to or independent of assignment number 2. Have

students explain why they chose the clothes they are wearing to class. Probe on this one. Was

there any implied symbolism? Do all students seem to be dressed in a similar fashion? Why does

this occur? Can marketers learn from this? Do marketers strategically contribute to this?

This activity is likely to generate some discussion about how consumers use clothing to identify

(5 minutes, Chapter Objectives 2 and 3, AACSB: Reflective Thinking and Analytic Skills)

4. Assign students to identify at least five instances where a specific marketing tactic employed by

an organization (for profit or non-profit) has had an impact on popular culture. Examples may

include such things as an actual product, product icon, promotional campaign, celebrity

endorsers, corporate sponsorship, product placement, or others. This impact may be short term

(the public temporarily adopting catch-phrases such as Donald Trump’s “You’re fired!” or

Budweiser’s “Whaaaaazup!”) or long term (the influence of anti-smoking campaigns in reducing

the number of smokers).

This activity provides students with the opportunity to recognize that just as marketers adapt to

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)

5. Have students identify examples of consumer-product relationships in society or in their own

lives. The text identifies four specific types: self-concept attachment, nostalgic attachment,

interdependence, and love. Have students come up with an example of each of these.

Students should describe one example of each of the following relationships:

This project will help students differentiate between the four types and relate each to their

own personal experiences.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking

6. Ask students to consider their own consumption practices over the past decade. Have them list

the ways that online consumption activities have replaced or modified their real- world

consumption activities.

This activity asks students to reflect on their personal experiences with the web and how those

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking

Group Projects

1. Have groups select a product of interest (e.g., a car, mp3 player, vacation spot, movie, sporting

event, etc.). Have each person in the group make a list of what they consider to be the product’s

main attributes (both physical and psychological). Compare and contrast the attributes listed by

the women and by the men to see how they may vary. Next, if there are any age or ethnic

differences within the group, see if differences appear. Based on these differences formulate

strategies for appealing to the various subgroups within your group.

The project gives students the opportunity to see whether preferences differ across demographic

variables that marketers use to segment customers. The responses will vary depending on the

(15-20 minutes, Chapter Objective 2, AACSB: Application of Knowledge and

Communication Abilities)

2. Have groups collect information on at least three companies that have recently expanded into

countries where they have not previously marketed their products. What kind of success/failure

have they met with? Has each had any kind of impact on the society or culture entered?

The responses and reasons for success/failure will vary. This project can be used to reinforce the

(15-20 minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments

and Reflective Thinking

3. Have groups of students find an example of a recent product, service, or program that was a

failure. Business Week, U.S.A. Today, the Wall Street Journal, Fortune, Forbes or some other

marketing publications are excellent sources. Have students explain to the class how knowledge

of consumer behavior, or the lack of it, could have contributed to the success or failure of the

effort.

Similar to #2, the responses and reasons for failure will vary. The project should reinforce the

(15-20 minutes, Chapter Objective 2, AACSB: Application of Knowledge)

eLAB

Individual Assignments

1. Visit www.facebook.com, www.myspace.com, or www.orkut.com and determine to whom they

are trying to appeal. Are these sites appealing to the same target audience or to different

segments? If the audience is the same, what is each site doing differently to market themselves?

If the audience is different, who are they? Are their privacy policies raising any concerns for

you?

This activity is similar to Group Activity #4, and provides students with an opportunity to think

(10-15 minutes, Chapter Objective 2, AACSB: Reflective Thinking)

2. Go to www.rockstargames.com. Click on the link for “games.” Select three different video

games marketed by this company. Discuss both sides of an ethical debate for each. This activity

(20 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities)

3. Go to www.aarp.org . The American Association of Retired Persons is one of the largest

lobbying and citizen action groups going today. Projections indicate that, as our nation ages, this

organization will only get larger and more influential. After visiting this website, list five ways

the organization is trying to influence corporate attitudes toward the older consuming public.

What type of networks is the organization trying to build? How would database information

from this group be useful to a marketer?

This activity provides students with an opportunity to get more familiar with the needs of a large

(10-15 minutes, Chapter Objective 2, AACSB: Application of Knowledge)

4. Go to www.netsmartz.org . This youth-oriented website presents issues and potential products to

teens. If you were the marketing manager for a new bottled water product that was seeking a

national youth audience, plan a strategy for your new product introduction using this website as

one of your primary promotional springboards. List what you would do, why you would do it,

and what results you might expect. What does a website such as this teach you about consumer

behavior?

Netsmartz.org is run by the National Center for Missing and Exploited Children and has

(10-15 minutes, Chapter Objectives 2 and 5, AACSB: Application of Knowledge and

Reflective Thinking)

5. Go to www.moveon.org . What is the main variable that this site uses to segment the American

public? What is the resulting segment to which this site is attempting to appeal? Extensively,

describe this segment in terms of demographic and psychographic variables. What issues seem

to be raised on this site? If you were an advertiser, would it be a good idea to sponsor a

message on this site? Explain.

Moveon.org is a civic action group that segments the American public based on political ideals.

(15 minutes, Chapter Objective 3, AACSB: Application of Knowledge and Reflective Thinking)

6. Visit www.alesyabags.com and identify the factors used to segment the company’s target

audience. How does the company use social media to engage its target audience? Given what

you know about the target audience, do you feel Alesya Bags’ use of social media is effective

or ineffective? Explain why.

Students should identify the company segments the target audience based on gender, age,

(10-15 minutes, Chapter Objective 2, AACSB: Reflective Thinking)

Group Assignment

Go to www.casino.com . Take some time as a group to become familiar with the various sections of this

site. What are the ways that this site has been designed to encourage new users to sign up, and existing

users to increase their level of online gambling? Is this website encouraging addictive consumption

(where consumer addiction is defined as physiological and/or psychological dependency on products or

services)? Is this unethical? After having completed this portion of the assignment, visit

www.ballygaming.com . What is the product being sold by this company? In what ways could this

company be contributing to unethical behaviors?

Casino.com is likely to raise varied responses based on student opinions of gambling as entertainment

(20-25 minutes, Chapter Objective 3, AACSB: Application of Knowledge and Reflective

Thinking)