APPLY
9-36 Find examples of electronic recommendation agents on the Web. Evaluate these. Are they
helpful? What characteristics of the sites you locate are likely to make you buy products you
would not have bought on your own?
Amazon.com and Mysimon.com have intelligent agents. The students may have to spend
a fair amount of time to come up with actual recommendation agents. Their responses to
(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking)
9-37 Sometimes a company actually invents a determinant attribute: Pepsi-Cola accomplished
this when it stamped freshness dates on soda cans. It spent about $25 million on an advertising
and promotional campaign to convince consumers that there’s nothing quite as horrible as a stale
can of soda-even though people in the industry estimate that drinkers consume 98 percent of all
cans well before this could be a problem. Six months after it introduced the campaign, lo and
behold, an independent survey found that 61 percent of respondents felt that freshness dating is
an important attribute for a soft drink!. Devise a similar strategy for another product category by
coming up with a brand new product attribute. How would you communicate this attribute to
your customers?
In order for a marketer to effectively recommend a new decision criterion, its
communication should convey three pieces of information:
1. It should point out that there are significant differences among brands on the
2. It should supply the consumer with a decision-making rule, such as if (deciding
among competing brands), then . . . (use the attribute as a criterion). It should
3. These things should be applied to coming up with a new attribute and
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
9-38 Define the three levels of product categorization described in the chapter. Diagram these
levels for a health club.
The text discusses the following levels of product categorization:
1. Superordinate—the broadest and most abstract level (e.g., health clubs).
2. Basic—the most useful category to classify products because these items have much
(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
9-39 Choose a friend or parent whom grocery shops on a regular basis, and keep a log of
their purchases of common consumer products during the term. Can you detect any evidence of
brand loyalty in any categories based on consistency of purchases? If so, talk to the person about
these purchases. Try to determine if his or her choices are based on true brand loyalty or on
inertia. What techniques might you use to differentiate between the two?
To begin with, the instructor should ask the students to differentiate between brand
loyalty and inertia. Brand loyalty is represented by a pattern of repeat product purchases,
For example, a student said that her mother buys the same cereal every week. In
discussing the reason for buying the cereal, her mother said she bought it because it was
(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
9-40 Hershey’s stresses the determinant attribute of product authenticity when the chocolate
company states: “Hershey, PA is where it all started more than 100 years ago, and it’s still where
the famous Hershey’s Kisses are made. Find examples of other companies that appeal to their
heritage. How effective are these messages.
Student responses will vary some may include Coors, Sam Adams, Smucker’s,
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10)
9-41 Form a group of three. Pick a product and develop a marketing plan based on either
cognitive or habitual decision making. What are the major differences in emphasis between the
two perspectives? Which is the most likely type of decision-making process for the product you
selected?
Answers will vary.
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
9-42 Identify a person who is about to a major purchase. Ask that person to make a chronological
list of all the information sources he or she consults before deciding what to buy. How would you
characterize the types of sources he or she uses (i.e., internal versus external, media versus
personal, etc.)? Which sources appeared to have the most impact on the person’s decision?
Student responses will vary. Several issues may be considered including bounded rationality and
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking
9-43 Perform a survey of country of origin stereotypes. Compile a list of five countries and ask
people what products they associate with each. What are their evaluations of the products and
likely attributes of these different products? The power of a country stereotype can also be
demonstrated in another way. Prepare a brief description of a product, including a list of features,
and ask people to rate it in terms of quality, likelihood of purchase, and so on. Make several
versions of the description, varying only the country from which it comes. Do ratings change as a
function of the country of origin?
Students may have strong associations for many countries tied to specific products or product
categories. Examples might include European import/luxury cars, French wines, Italian leather
goods, Swedish crystal, and Japanese electronics. It may be interesting to expand the notion of
country of origin and ask students to talk about areas in the United States that are particularly
(60 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
9-44 Ask a friend to “talk through” the process he or she used to choose one brand over others
during a recent purchase. Based on this description, can you identify the decision rule that was
most likely employed?
The instructor might begin by reviewing the two types of decision rules, namely, compensatory
and non-compensatory. Compensatory decision rules involve averaging information about
attributes of competing products where a poor rating on one attribute can be offset by a good
(20 minutes, Chapter Objective 2, AACSB: Analytic Thinking)
9-45 Think of a product you recently shopped for online. Describe your search process. How did
you become aware that you wanted or needed that product? How did you evaluate alternatives?
Did you wind up buying online? Why or why not? What factors would make it more or less
likely that you would buy something online versus in a traditional store?
Student responses will vary.
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
9-46 Can you replicate Richard’s decision-making process as he chose a TV brand for other
consumers or other products? Create a grid for a different product category that lists available
brands and the features each offers. (Hint: Product Web sites for computers, cars, and other
complex products often generate these grids when they allow you to choose the “compare
products” option.) Present this grid to several respondents and ask each to talk aloud as they
evaluate their options. Based on their description, can you identify which decision rule they seem
to use?
Student answers will vary. Grids will likely have an indication of features, prices, and quality
issues. Decisions may be based on cognitive, habitual, or affective processes. There may be
(20 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
9-47 Extraneous characteristics of the choice situation can influence our selections, even though
they wouldn’t if we were totally rational decision makers. Create two versions of this scenario
(alternate the text you see in parentheses as directed) and ask a separate group of people to
respond to each: You are lying on the beach on a hot day. All you have to drink is ice water. For
the past hour you have been thinking about how much you would enjoy a nice cold bottle of your
favorite brand of beer. A companion gets up to go make a phone call and offers to bring back a
beer from the only nearby place where beer is sold (either a fancy resort hotel or a small,
run-down grocery store, depending on the version you’re given). He says that the beer might be
expensive and so asks how much you are willing to pay for it. What price do you tell him?
When researchers gave both versions of this question to respondents, they found that the median
price participants who read the fancy-resort version gave was $2.65, but those who got the
grocery-store version were only willing to pay $1.50. In both versions, the consumption act is the
same, the beer is the same, and they don’t consume any “atmosphere” because they drink
the beer on the beach. How do these results compare to yours?
Student responses will vary based on who was interviewed.
(30 minutes, Chapter Objective 7, AACSB: Application of Knowledge)
9.48 Arrange to interview two married couples, one younger and one older. Prepare a response
form that lists five product categories—groceries, furniture, appliances, vacations, and
automobiles—and ask each spouse to indicate, without consulting the other, whether purchases
in each category are made by joint or unilateral decisions, and to indicate whether the unilateral
decisions are made by the husband or the wife. Compare each couple’s responses for agreement
between husbands and wives relative to who makes the decisions, and compare both couples’
overall responses for differences relative to the number of joint versus unilateral decisions.
Report your findings and conclusions.
Student responses will vary based on the interviews.
(45 minutes, Chapter Objective 7, AACSB: Application of Knowledge)
9.49 Collect ads for three different product categories that target families. Find another set of
ads for different brands of the same items that don’t feature families. Prepare a report comparing
the probable effectiveness of the two approaches. Which specific categories would most likely
benefit from a family emphasis?
Student responses will vary based on products and ads chosen. Categories that would most likely
benefit from a family emphasis might include non-specialized products. If some family members
(45 minutes, Chapter Objective 7, AACSB: Reflective Thinking)
9-50 Pick three married couples and ask each husband and wife to list the names of all cousins,
second cousins, and so on for both sides of the family. Based on the results, what can you
conclude about the relative role of men and women in maintaining the kin-network system?
Responses will vary but should identify the role women play in managing the kin-network.
(45 minutes, Chapter Objective 7, AACSB: Reflective Thinking)
CASE STUDY TEACHING NOTES
Chapter 9 Case Study: Tesla Motors: Driving Forward With A New Consumer Decision
Journey
Summary of Case
The consumer decision-making process is undergoing major change and will never be the same.
Consumers are more informed than ever, with access to virtually endless information. But that
wealth of information is leading to many distractions and frustrations along the path to purchase.
What experts used to illustrate as a linear or funnel-like decision making path now looks more
like a circular, looping journey where distractions often lead consumers to revisit information
search and alternative evaluation, just when it seemed like a purchase decision should have been
reached.
Suggestions for Presentation
This case can be taught as part of the decision-making process. If used in class, you can ask
students to outline the stages of the decision-making process for choosing a new vehicle.
Suggested Answers for Discussion Questions
CS9-1. How does Tesla Motors’ marketing strategy connect with the changes going on in the
consumer decision journey today? Do you believe that they can be successful over the
long-term with this kind of an approach?
Tesla strategy is to connect with consumer’s changing attitudes on fossil fuel, so they want to
CS9-2. The chapter identifies three different categories of consumer decision making: cognitive,
habitual, and affective. How does Tesla seem to view the type of decision making that
consumers go through when they purchase their vehicles?
Tesla views the decision making process for an electric car as either cognitive or affective.
(5 minutes, Chapter Objectives 1 and 3, AACSB: Reflective Thinking)
Additional Support Material
STUDENT PROJECTS
Individual Projects
1. As an in-class activity, discuss with the class the concept of risk. Distribute a list of
several different consumer products or have a student do this. Then ask students what
types of risk they would associate with each of the products. How could the risk be
reduced?
Students may mention monetary, functional, physical, social and/or psychological risk.
Seeking information is one way to reduce risk. Providing safety information, third party
(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
2. Have individual students evaluate a recent purchase of a large-scale item (e.g., expensive
clothing, car, stereo system, appliance, furniture, etc.) based on the stages in the
Consumer Decision Making Process. Ask them if they think they gathered enough
information before making their decision. See if they were satisfied with the quantity or
quality of the information they had at their disposal.
(15 minutes, Chapter Objectives 1 and 2, AACSB: Reflective Thinking)
3. Have students choose a specific type of product. Then, have them find product-rating
reports from Consumer Reports or a similar organization that tests products. The students
should evaluate the rating system the organization used. What other information would
have been useful?
Students should select a higher involvement product if they want the information to be
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
4. Ask a student to compile a description of three products that include both features and
country of origin. Then have the student ask a few people to rate the quality of the
products and whether they would probably buy them. See if he or she can find out why
the respondents feel this way.
Some respondents may indicate that the country of origin is part of the issue, but many
(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
5. It is often revealing when a student interviews a manager of a local retail store to
determine how the store is attempting to meet the consumer’s need for information. After
the interview, suggest that the student use powers of observation to determine how
effective the approach seems to be.
Retail products with high margins may use salespeople to provide information. Other
(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
6. In this field project, have a student design a project to illustrate when customers use
internal versus external sources of information and deliberate versus accidental sources of
information during the search process.
The design of the project will likely include some form of interview with consumers about
(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
7. Have a student identify countries-of-origin of popular U.S. cars. Find out how many cars
that we identify as “American” are made in other countries and how many cars we
identify as “foreign” are assembled in the United States. A variation on this would be to
do the same with heavy equipment (such as John Deere) or with motorcycles or cars that
are considered to be of Japanese origin.
Students may be surprised to learn about foreign brands that are assembled in the United
(45 minutes, Chapter Objective 3, AACSB: Dynamics of the Global Economy)
8. What sources of information are most valuable to you when making a decision on
purchasing (a) a computer, (b) an expensive piece of jewelry, (c) selecting a place to
worship, and (d) something online? Explain.
Student responses may vary, particularly for d) something online, which is very vague.
(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
9. Have the students keep a diary listing their highest and lowest involvement product
purchases or service transactions for each day for a week. Have them identify the
decision process they went through and how satisfied they were with their decision. Then
have them write a short paper describing the lessons they learned from the purchases.
What mistakes were made?
Students should be given enough time to reflect on the purchases so they have lessons
they learned from the purchases available. Students should recognize the different
(25 minutes, Chapter Objectives 1 and 2, AACSB: Reflective Thinking)
10. Ask a student to bring to class an advertisement that is designed to activate the
problem-recognition process. Does the student think that the ad works on the consumer’s
actual state or ideal state? See if the student can improve the problem recognition features
of the advertisement.
This exercise will help students differentiate between the actual and the ideal state. Look
(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
Group Projects
1. This project will require student groups to conduct consumer interviews. They should
contact people (acquaintances, friends, etc.) and ask them questions about a recent
purchase or consideration of a purchase. Specifically, they should ask the consumer what
factors led them to problem recognition. They should also ask the respondents to explain
the similarities or differences that existed between their choices at decision time.
Students should ask for specific stimuli that led to problem recognition and note if the
(120 minutes, Chapter Objectives 2, AACSB: Reflective Thinking)
2. Student groups should consider the product category of gas/electric hybrid vehicles.
Based on the consumer decision-making process, they should design a strategy for a
company selling this product. They should cover each stage of the decision-making
model used in the chapter.
Students should include problem recognition, information search, evaluation of
(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
3. In groups, students should discuss popular stereotypes that discriminate against a
company, person, country, or product. Having selected one of these, they should design a
strategy that would help to reduce the stereotype’s negative effects.
Stereotypes will vary, but students should recognize that they are often the result of
associations that developed at some point in time (either through direct experience or
(25 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
4. Have student groups devise taxonomy of categories for a product category. Then, have
them reposition certain brands at the subordinate level by modifying that taxonomy. How
could the companies carry out such a repositioning?
Students should include the superordinate (abstract), basic (broad) and subordinate
(brand) levels in their taxonomy and label each level accordingly. For the repositioning,
(25 minutes, Chapter Objective 2, AACSB: Reflective Thinking5. Compile a list of four or five
foreign countries or have a student do it. Ask the class to identify products or classes of products
that they usually associate with that country. After they have selected their product categories,
have the class evaluate the quality of the products that typically come from each country. What
stereotypes were involved?
Student responses will vary. This exercise will help reinforce the concept of stereotypes.
(60 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
eLAB
Individual Assignments
1. Go to www.bose.com. What makes the SoundDock Portable iPod docking station worth
more than similar products by competitors? Demonstrate how a consumer might evaluate
such a purchase. What decision rules might be used? What strategies might Bose use to
educate the consumer as to the value of their product? The same question can be applied
to iPhone from www.apple.com.
Students should consider heuristics (including brands and the price-quality heuristic)
and consider compensatory and non-compensatory decision rules in their responses. For
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
2. Go to www.peapod.com. Online grocery is alive and well. Although most grocery
purchases that we make fall into the category of habitual decision-making, somehow, this
concept is working for some people. Spend some time on this site and assemble a grocery
order. What are the pros and cons of using an online service for habitual decision-making
decisions?
Peapod.com and other grocery services allow you to recall your past grocery lists, which
saves time and effort associated with choosing each product you want each time. This is
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
Group Assignments
1. Go to www.casino.com. Become familiar with the concept of prospect theory. Spend
some time as a group on this or other online gambling websites. What examples do you
find of applying prospect theory?
Consumers may feel they are missing the jackpot. People are less willing to gamble with
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
2. Go to www.conagrafoods.com. One of the mega-conglomerates of the modern age,
ConAgra Foods boasts dozens of brands in numerous different product categories. As a
group, create a categorization chart with at least three levels of abstraction to show how
the brands of ConAgra fit under one umbrella category.
Students should include the superordinate (abstract), basic (broad) and subordinate
(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking)