978-0134492513 Chapter 5 Solutions Manual

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Discussion Questions

5-1 Define the consumer market and describe the four major sets of factors that influence

consumer buyer behavior. Which characteristics influenced your choice when deciding on the

school you would attend? Are those the same characteristics that would influence you when

deciding what to do on Saturday night? Explain. (AACSB: Communication; Reflective

Thinking)

Answer:

The consumer market is all the individuals and households that buy or acquire goods and

Student answers will vary when discussing which characteristics influenced their choice of

school and would influence their decision about Saturday night plans.

 5-2 What is a total market strategy, and why do marketers use this approach? Provide a recent

example of a product or service that uses the total market strategy approach and discuss the

components that make it effective or ineffective. (AACSB: Communication, Diversity,

Reflective Thinking)

 5-3 What is subculture? Describe at least two subcultures to which you belong and identify any

reference groups that might influence your consumption behavior. (AACSB:

Communication; Diversity; Reflective Thinking)

5-4 Briefly describe the four psychological factors influencing consumer buyer behavior. Explain

their importance to marketers. (AACSB: Communication; Reflective Thinking)

Answer:

The four psychological factors are motivation, perception, learning, and beliefs and attitudes.

Motivation is the action taken by a person to satisfy an unmet need. Consumers do not always

know the emotions and attitudes they carry about products. Motivation theories help

Marketers need to understand how customers think and feel to develop products and

 5-5 Name and describe the stages in the adoption process. How might a student go through the

adoption process when choosing a college or university? (AACSB: Communication;

Reflective Thinking)

Critical Thinking Exercises

5-6 Researchers study the role of personality on consumer purchase behavior. One research

project—Beyond the Purchase—offers a range of surveys consumers can take to learn more

about their own personality, in general, and their consumer personality, in particular. Register

at http://www.beyondthepurchase.org/ and take the “Spending Habits” surveys along with any

of the other surveys that interest you. What do these surveys tell you about your general and

consumer personality? Do you agree with the findings? Why or why not? (AACSB:

Communication; Use of IT; Diversity; Reflective Thinking)

Answer:

Students’ answers will vary, as there are currently several “Spending Habits” surveys, in

5-7 Discuss the steps of the consumer buying process for a new product. Next, identify a new

product that you have recently adopted into your daily lifestyle. What is the new product that

was adopted? As a consumer, did you use the adoption stages as outlined in the chapter? Why

or why not? (AACSB: Communication; Reflective Thinking)

Answer:

A new product is a good, service, or idea that is perceived by some potential customers as

5-8 The characteristics of a new product affect its rate of adoption. Identify the five

characteristics that influence the rate of adoption and describe how each factor will influence

the rate of adoption of the Apple Watch. (AACSB: Communication; Reflective Thinking)

Answer:

The five characteristics that influence an innovation’s rate of adoption are:

a. Relative advantage. The degree to which the innovation appears superior to

APPLICATIONS AND CASES

Online, Mobile, and Social Media Marketing: Digital Influencer Credibility

Fashion and lifestyle bloggers that are multimillionaires? Believe it. Simple fashion blogs have

blown up to become huge income sources. Bloggers have integrated affiliate marketing, built their

own brands or brand collaborations, and included sponsored content in their blogsites. Companies

now see fashion bloggers as increasingly relevant digital influencers. Firms have also found that

bloggers can drive more sales volume than celebrity endorsements. Therefore, brands are building

more influencer campaigns into their marketing budgets. Ultimately, this means that bloggers can

earn significant incomes. For example, the Refinery29 blog started out as a regular fashion blog

with its bloggers earning an average income of $55,000 a year. It quickly turned into a fashion

and lifestyle empire for Refinery29 founders Justin Stefano and Philippe von Borries. The site

now makes $24 million a year, partially from revenue generated when these influencers push sales

to affiliates through links embedded in the blog. To learn more about how much money the

world’s top fashion and lifestyle bloggers earn and about Refinery29’s journey, visit

www.inc.com/rebecca-borison/ refinery29-chat.html and www.whowhatwear.com/how-do-

bloggers-make-money.

5-9 Find an example of a blog on a topic that interests you. Are there advertisements on the blog?

Does the blogger appear to be sponsored by any companies? Is there information regarding

sponsorship? Write a brief report of your observations. (AACSB: Use of IT; Communication;

Reflective Thinking)

Answer:

Students’ answers will vary. Resources to find blogs include Blog Catalog

Students will be able to find other blogs in a similar way. For example, see

http://stylecaster.com/best-fashion-blogs-you-have-not-discovered-yet/ or

5-10 Digital influencers can shape consumer product acceptance and adoption. Discuss the

process of making a purchase through a podcast, blog, or social media account based on the

recommendation of a digital influencer. Are sponsored content, paid advertisements, unpaid

advertisements, or product testimonials on blogsites credible information sources? Why or

why not? (AACSB: Communication, Reflective Thinking)

Answer:

Students’ answers will vary based on the blog, podcast, or social media account they use to

Marketing Ethics: Ultimate Water

Water is water, right? Not so! Beverly Hills 90H20 claims to be designed “by a world-class team

of experts, including a water sommelier.” The winner of the World’s Best Water Award, this water

is sourced in the California mountains. At $72 for a case of 24 bottles, this is not your everyday

drinking water. The 7.5 alkalinity “silky” water is loaded with minerals and electrolytes. It is

available in fine restaurants, gourmet markets, and luxury hotels but is sold only in California.

Beverly Hills 90H20 isn’t the only luxury water, and it’s actually somewhat of a bargain. Fillico

Beverly Hills (from Japan) costs $100 per bottle. That’s without the gold or silver crown cap—

you can double the price if you want that. Acqua di Cristallo Tributo a Modigliani gold-bottled

water tops them all at $60,000 per bottle!

5-11 What buying factors are most likely affecting consumers who purchase luxury bottled water?

(AACSB: Communication; Reflective Thinking)

Answer:

Cultural, social, and personal factors will be the most likely factors to impact this purchase.

Among the cultural factors, social class is likely to be a prime factor. Consumers in a given

5-12 Discuss the ethical issues surrounding the bottled water industry. (AACSB:

Communication; Ethical Reasoning)

Answer:

Marketing by the Numbers: Evaluating Alternatives

One way consumers can evaluate alternatives is to identify important attributes and assess how

purchase alternatives perform on those attributes. Consider the purchase of a tablet. Each

attribute, such as screen size, is given a weight to reflect its level of importance to that consumer.

Then the consumer evaluates each alternative on each attribute. For example, in the table below,

price (weighted at 0.5) is the most important attribute for this consumer. The consumer believes

that Brand C performs best on price, rating it 7 (higher ratings indicate higher performance).

Brand B is perceived as performing the worst on this attribute (rating of 3). Screen size and

available apps are the consumer’s next most important attributes. Operating system is least

important.

Importance Alternative Brands

Attributes Weight (e) A B C

Screen size 0.2 4 6 2

Price 0.5 6 3 7

Operating System 0.1 5 5 4

Apps available 0.2 4 6 7

A score can be calculated for each brand by multiplying the importance weight for each attribute

by the brand’s score on that attribute. These weighted scores are then summed to determine the

score for that brand. For example, ScoreBrand A = (0.2 x 4) + (0.5 x 6) + (0.1 x 5) + (0.2 x 4) = 0.8 +

3.0 + 0.5 + 0.8 = 5.1. This consumer will select the brand with the highest score.

5-13 Calculate the scores for brands B and C. Which brand would this consumer likely choose?

(AACSB: Communication; Analytical Reasoning)

Answer:

5-14 Which brand is this consumer least likely to purchase? Discuss two ways the marketer of

this brand can enhance consumer attitudes toward purchasing its brand. (AACSB:

Communication; Reflective Thinking; Analytical Reasoning)

Answer:

This consumer is least likely to select brand B because it has the lowest score. The marketer

can attempt to change consumer attitudes toward its brand in three ways.

a. Change beliefs—if consumers believe a brand does not perform well on an attribute,

b. Change attribute importance—the marketer of brand B can attempt to influence how

consumers evaluate product attributes. Brand B performs very well on screen size and

c. Add a new attribute to consider—the marketer of brand B could attempt to get

consumers to consider an attribute that is not on the list, such as video streaming

Company Case Notes

GoldieBlox: Swimming Upstream against Consumer Perceptions

Synopsis

While pursuing a degree in engineering, Debbie Sterling recognized the blight of women in that

field. As she researched possible reasons for this, she discovered that societal perceptions about

gender roles and appropriate activities for boys and girls are influenced by the toy industry. While

the blue aisle is full of building oriented toys than challenge the mind, the pink aisle is geared

toward princess and fashion play. Sterling decided to do something about this by changing

people’s perceptions about gender roles. She created GoldieBlox, a new toy company that is out

to change how people think of toys for girls with the message that success comes not from

playing with dollhouses, but from building them.

Teaching Objectives

The teaching objectives for this case are to:

1. Provide a practical application for the buyer decision process.

2. Learn the factors that influence consumer behavior.

3. Illustrate the importance of emotions in making purchase decisions.

4. Highlight the factors that affect the development of consumer attitudes.

Discussion Questions

5-18 Of the factors that influence consumer behavior, which category or categories (cultural,

social, personal, or psychological) best explain the existence of a blue toy aisle and a pink toy

aisle? Why?

There is no wrong answer to this question, but any response should make a solid case for the

5-19 Choose the specific factor (for example, culture, family, occupation, attitudes) that most

accounts for the blue/pink toy aisle phenomenon. Explain the challenges faced by GoldieBlox

in attempting to market toys that “swim against the stream” or push back against the forces of

that factor.

5-20 To what degree is GoldieBlox bucking the blue/pink toy aisle system?

This response should be based on the debate between advocates of the GoldieBlox solution

and those who oppose it. On the one hand, Sterling claims that GoldieBlox is a totally

different toy company with the mission to inspire young girls to pursue STEM careers by

disrupting the pink aisle phenomenon. But while GoldieBlox makes building block sets for

girls, opponents point out that “You cannot create a toy meant to break down stereotypes

5-21 If GoldieBlox succeeds at selling lots of its toys, will that accomplish the mission of

increasing the presence of females in the field of engineering?

Again, responses to this question are subjective and will likely follow the reasoning for any

Teaching Suggestions

Ask students to think of a favorite toy they had when they were a child. Call on students to share

what the toy was and why it was a favorite. As the discussion ensues, create two lists on the board

under the headings “Boys” and “Girls”. How do the results play out? Ask for input from the class

on identifying any patterns and why they think those patterns exist.

This case was developed for use with Chapter 5. This case also works well with the advertising

chapter (Chapter 15) and the sustainable marketing chapter (Chapter 20).

Go to mymktlab.com for the answers to the following Assisted-graded writing questions:

5-22 Explain the stages of the consumer buyer decision process and describe how

you or your family went through this process to make a recent purchase.

5-23 Discuss how lifestyle influences consumers’ buying behavior and how marketers measure

lifestyle.

ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES

Projects

1. Every culture contains smaller subcultures. In the United States, the rapidly increasing

Hispanic market holds opportunities for many businesses. Look around your community and

make a list of those businesses that may prosper from this increasing subculture. Why do you

think this is so?

2. What social class do you belong to? Why? What would it take for you to move up a class?

3. Think about online social networks such as Facebook or Twitter. How are marketers trying to

use these networks to promote their products?

Small Group Assignments

1. Form students into groups of three to five. Each group should read the opening vignette to the

chapter on Harley-Davidson. Each group should then answer the following questions and

share the answers with the class.

a. Do you ride a motorcycle or are you interested in purchasing one? What is the attraction

for you? What kind of riding do you do? What brand of motorcycle do you ride or will

you consider? Why?

b. Visit the Harley-Davidson website at www.harley-davidson.com. Beyond making

well-engineered motorcycles, how has the company become a favorite among motorcycle

enthusiasts?

c. Beyond what is discussed in the case, what are ways that Harley-Davidson can continue to

expand its customer base?

2. Form students into groups of three to five. Each group should read Real Marketing 5.1:

Tapping Social Media Moms as Brand Ambassadors. Each group should then answer the

following questions and share the answers with the class.

a. Discuss examples of companies that have attracted you by reaching out through social

media. How did you respond? Did the contact result in a purchase? Did you or your

friends participate in the brand conversation?

b. Recall examples of companies who have somehow failed at using social media. Why did

this occur? What did the company miss? Did its attempts at building brand conversations

use effective messengers, i.e. credible bloggers or authentic stories? Explain.

c. If you are a user of social media, do you believe it can serve as an effective marketing

tool, or is it simply a nuisance to users? Can brand conversations influence you? Justify

your answer.

d. Do you believe that social media is a smart investment for marketers, or are they just

“shooting in the dark”? Why do you believe this? How do you personally react to

marketing messages you receive via word-of-mouth marketing? How does that play into

your belief abut the effectiveness of brand conversations and word-of-mouth marketing?

e. Reviewing the examples as well as the concept of mom-to-mom influence, do you believe

it can be effective? Why or why not? Think of similar efforts, for example man-to-man

outreach on a primarily male subject. Would your reaction be the same or different? Why?

Individual Assignments

1. Take a look at the Web sites for Apple (www.apple.com), Dell (www.dell.com), and

Hewlett-Packard (www.hp.com). Which types of consumers are each of these companies

appealing to through their marketing approaches? Are they targeting personalities, using

technical comparisons, or something else? Based on what you have read in this chapter, why

do you believe each company chose this marketing approach?

2. Check out the Web site for consumer information giant Acxiom (www.acxiom.com). Explore

the services they provide to marketing organizations and describe those services in a

500-word report. How does the company gather its information, and how is it used? How does

Acxiom’s approach differ from that of its competitors? In your report, be sure to cite specific

examples from this chapter.

Think-Pair-Share

Consider the following questions, formulate an answer, pair with the student on your right, share

your thoughts with one another, and respond to questions from the instructor.

1. Describe a cultural shift that has impacted marketers in a major way.

2. Highlight some of the more significant differences in purchase habits between

Asian-Americans and the U.S. Hispanic market.

3. What factors determine social class in the United States?

4. How are online social networks changing the face of marketing?

Outside Examples

1. Age and lifecycle changes have a dramatic impact on the many types of products we purchase

and consume. Go to Jeep’s Web site (www.jeep.com) and examine their complete product

offering. How has Jeep tried to reach consumers of all ages and stages of the lifecycle,

especially mature consumers?

Possible Solution:

Over the past 20 years, Jeep has excelled at reaching a diverse customer base. From a review

2. When asked about their least favorite aspect of TV viewing, most people say it’s the

commercials. Although most consumers understand that commercials support free

programming, they are bothered by the growing number of commercial interruptions. One

way to avoid all the clutter is to channel surf and bypass commercials. But digital video

recorders (DVRs) offer another solution—skip commercials altogether while still watching

your favorite show on your own schedule.

Consumers are attached to their DVRs and love the freedom they find through services like

TiVo. The service allows consumers to automatically record shows and skip commercials

during playback. Statistics show that DVR users watch more TV, channel surf less, and move

many prime-time week shows to the weekend, when they have more leisure time.

Will DVRs put an end to commercial dominance and put the consumer in the driver’s seat?

This question assumes that television will continue its long-running domination as the

number-one outlet for program content. But the nature of how consumers are getting their

news, sports, and entertainment programming is in flux like never before.

For starters, more and more consumers are opting to purchase their favorite show on DVD or

through download or streaming services like iTunes, Hulu, Netflix, Amazon Prime, and Roku.

As with the DVR option, this can cut out commercials altogether. But for the launch of a

recent season, the four major networks (ABC, NBC, CBS, and FOX) made a landmark move.

Each began offering full episodes of many of their top programs through their websites. The

episodes are available the day after they air on television, are delivered in high-resolution

streaming video, can be viewed full screen, and are available 24/7. The price? They are free,

but viewers must watch a single commercial five or six times during a one-hour show. Not

exactly commercial-free, but far less than the 18 or so minutes per hour devoted to ads on

television.

What a novel concept: deliver the content for free, and pay for the programming through ad

revenues. And while the delivery of program content will likely evolve for some time to come,

the bottom line is consumers will choose the viewing method and options that give them the

features they value most. Big screens? High resolution? No ads? Convenience? On-demand?

Only time will tell.

1. What social and personal factors might influence the purchase of a DVR or a streaming

option?

2. How would you market this product in order to create a need in the consumer’s mind?

Possible Solution:

1. A multitude of social and personal factors may have influence here. Age, economic

2. It is necessary to market this product as a time-saving convenience, on the cutting edge of

technology to effectively reach the target market.