978-1259870538 Chapter 6 Exercise

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Chapter 6 - Consumer Behavior M:Marketing 6th
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1
Instructors Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features from the
sixth edition of M: Marketing that can be used as springboards for class discussion; it also provides best practices for
how to utilize the full product suite (from the textbook to SmartBook® to Connect®). In addition, this manual
includes a variety of supplemental teaching resources to enhance your ability to create an engaging learning
experience for your students. Regardless of whether you teach in face-to-face traditional classrooms, blended
(flipped) classrooms, online environments, or hybrid formats, you’ll find everything you need in this improved
resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each learning
objective. To ease your class preparation time, we’ve included references to relevant PowerPoint slides that can be
shown during class. Note that you can adjust slides as needed to ensure your students stay actively engaged
throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following Instructor
Resources:
Instructor’s Manual
PowerPoint Presentations (Accessible)
Test Bank
Author Newsletter Blog
Video Library
Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment of feature
summaries, examples, exercises, and Connect® Integration assignments intended to enhance your students’ learning
and engagement.
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PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
Chapter Learning Objectives
Key examples
Key exhibits
Key concepts and frameworks
Progress checks
Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank such as
Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay to test student
mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the evolving needs around
generating high-quality print test experiences, McGraw-Hill Education provides a free copy of the industry-leading
test generation software TestGen® to users (more details can be found within the Instructor Resources tab under
“Test Bank”). Furthermore, due to its limitations to function with the latest browsers and operating systems,
McGraw-Hill Education has discontinued EZ-Test Online. Some of the robust new features present in TestGen®,
include:
Cross-platform software compatibility with Windows and Mac
Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that are no
longer available as assignments, but that remain available as an additional resource. These videos can be directly
streamed from within the library that is located in the Instructor’s Resource tab. Accompanying each video is a brief
video guide that summarizes the key concepts of the video.
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Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the course. It
lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with each exercise.
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both students
and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive and
individualized study tools designed for students, it creates for them a personalized learning experience, giving them
the opportunity to practice and challenge their understanding of core marketing concepts. The reporting tools within
SmartBook® show where students are struggling to understand specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to cover as well
as the number of probes the student will see for each assignment. You can also set the number of points a
SmartBook® module is worth in the course. Usually, applying a minimal number of points for completion of each
module is enough to encourage students to read the chapter. Many instructors assign these modules to be completed
before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to understand.
Below is the set of adaptive assignment reports available in SmartBook®:
Progress Overview: View student progress broken down by module
Student Details: View student progress details plus completion level breakdown for each module
Module Details: View information on how your class performed on each section of their assigned modules
Practice Quiz: This gives you a quick overview of the quizzes results for your students
Missed Questions
Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal where in
the chapters students might be struggling. The module gives the chapter section, average time spent, average
questions per student correct/total, and the percentage of correctness (based in number of assigned items).
Information about the most challenging sections for students can help you refine the focus of the next face-to-face,
hybrid, or online session.
The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below you will
find a recreation of the Metacognitive Skills report. In it, you can see that the second student is confident and mostly
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correct (see the 91% in the Correct and Aware column) while the first student “doesn’t know what she doesn’t
know” (see the 39% in the Incorrect and Unaware column).
STUDENT
CORRECT
and
AWARE
CORRECT and
UNAWARE
INCORRECT
and
AWARE
Student 1
61%
0%
0%
Student 2
91%
0%
3%
Student 3
81%
0%
0%
Student 4
83%
0%
0%
Student 5
76%
0%
3%
Student 6
66%
0%
9%
Student 7
77%
0%
3%
Student 8
91%
0%
2%
Student 9
93%
0%
2%
Student 10
70%
0%
6%%
APPLICATION EXERCISES, QUIZZES, AND TEST BANK
Book-level Resources
Application Exercises require students to apply key concepts to close the knowing and doing gap; they provide
instant feedback for the student and progress tracking for the instructor. Before getting into chapter-level
assignments, let’s first look at the book-level assignments available.
Three exercise types are available for instructors to assign beyond the chapter materials. These are 1) Marketing
Plan Prep Exercises, 2) Marketing Analytics Exercises, and 3) Marketing Mini Simulation.
2) Marketing Analytics exercises are data analytics activities that challenge students to make decisions using
3) Marketing Mini Simulation helps students apply and understand the interconnections of elements in the
marketing mix by having them take on the role of Marketing Manager for a backpack manufacturing
company. The simulation can be assigned by topic or in its entirety.
Chapter-level Resources
Chapter-level Application Exercises are built around chapter learning objectives, so you can choose which ones to
assign based on your focus for each specific chapter. Several types of Application Exercises are available in each
chapter. These are 1) iSeeit! Animated Video Cases, 2) Case Analyses, 3) Video Cases, and 4) Click-and-Drag
exercises.
1) The iSeeit! Video series comprises short, contemporary animated videos that provide engaging
introductions to key course concepts. These are perfect for launching lectures and assigning as either pre-
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or post-lecture activities. Each animation is accompanied by three to four multiple-choice questions to
check student attention and comprehension.
2) Case Analyses and Video Cases each feature real-world firms and industries different than those discussed
3) Click-and-Drag exercises help students actively demonstrate their understanding of the associated learning
objectives. Some require students to match examples to concepts, to place series of steps in the correct
sequence, or to group examples together under their correct categories.
Application Exercises can be assigned as preparatory exercises due before class (this is especially good for flipped
classrooms), or after class as concept comprehension checks. Consider assigning two or three Application Exercises
per chapter.
Applications Exercises will generally be assigned as homework or practice as part of the overall class grade. A
general rule of thumb would be to make application exercises worth 5 to 10 points each, since these require more
time and thought than a test bank question might.
To find the Applications in Connect®, go to “Add Assignment” and select “Question Bank.” Within this question
bank will find a drop-down menu of all the book-level assignments and chapter-level assignments. You can then
select the ones you wish to assign.
Chapter-level quizzes and full chapter test banks are also found in the Question Bank’s drop-down menu. Apply a
relatively low value to each questionfor example, 1 or 2 points eachsince numerous questions are typically
assigned for each chapter. You can decide when to surface the feedback to students. Selecting to display feedback
after the assignment due date helps to prevent cheating; that is, it keeps students from sharing the correct answers
with other students while the questions are still open and available. For this reason, it is suggested that no feedback
to quizzes and test bank exams be made available until after the assignment is due.
ASSIGNING EXERCISES AND GRADING POLICIES: BEST
PRACTICES
To fully utilize the power of the digital components, it is recommended that you assign the SmartBook® reading and
adaptive learning probes before class meets. Application Exercises can be completed either before or after class; if
they are completed before class, they can sometimes serve as good springboards for class discussions. The chapter
quiz makes a good check on comprehension of the material and may work best if assigned after each class period.
The test bank serves as a good resource for building mid-term or final exams.
More detailed information on SmartBook® and Connect® is available through several resources at McGraw-Hill. A
good starting point is your local Learning Technology Representative, who can be found here:
http://www.mheducation.com/highered/platforms/connect/features-educators.html
Connect® gives instructors a wide array of flexibility in making assignments and creating grading policies.
Instructors may choose to:
assign as many assignments as appropriate given the level and time commitment expected for the class,
determine point values for each question/application that works within the total course percentages,
make available multiple attempts per assignment with options of accepting the highest score or averaging all the
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attempts together (several attempts are particularly good for homework assignments),
deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
show feedback on application/questions immediately upon submission or at the time the assignment is due for
the whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
Throughout the IM for each chapter, we integrate materials from the PowerPoint slides and provide summaries for
each of the Connect® Application Exercises at the end of each chapter. These summaries are intended to give you a
sense of the learning goal behind each exercise. We hope this integration of resources will help you to convey core
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Chapter 6
Consumer Behavior
Tools for Instructors
Chapter Overview
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline
PowerPoint Slides
Additional Resources
Connect Application Exercises
Chapter Overview
This chapter focuses on the consumer buying decision and describes the cognitive process that
consumers experience when evaluating that purchasing decision. It also focuses on the dynamics of what
influences the consumer buying decision.
Brief Chapter Outline
The Consumer Decision Process
Factors Influencing the Consumer Decision Process
Involvement and Consumer Buying Decisions
Learning Objectives
LO 6-1 Articulate the steps in the consumer buying process.
The consumer buying process consists of five main steps: First, during need recognition, consumers
LO 6-2 Describe the difference between functional and psychological needs.
LO 6-3 Describe factors that affect information search.
The information search that people undertake varies depending on both external and internal factors.
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Social and Mobile Marketing 6.1: Using Snapchat to Reduce Risk at Rent the Runway describes
how Rent the Runway is using Snapchat to reduce actual and perceived risk. What are the actual and
perceived risks to using Rent the Runway?
Ethical & Social Dilemma 6.1: “Certified” May Not Mean Safe: New FTC Ruling Creates Confusion
for Used Car Buyers provides an example of physiological risk. Do students agree with the FTC that the
ruling empowers consumers? Can they think of other products that involve physiological (safety) risk?
How do marketers deal with these risks?
1. Attribute Sets (PPT 6-11)
2. Consumer Decision Rules (PPT 6-13)
a. Compensatory
2. Postpurchase Cognitive Dissonance (PPT 6-16)
4. Undesirable Consumer Behavior (PPT 6-18)
1. Name the five stages in the consumer decision process.
2. What is the difference between a need and a want?
3. Distinguish between functional and psychological needs.
4. What are the various types of perceived risk?
5. What are the differences between compensatory and noncompensatory decision rules?
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Slide 3 of the Instructor PowerPoints for this chapter contains a link to an ad from Nike’s Snow Day
campaign. Nike began advertising on the Weather Channel app. What other apps do consumers use that
may present an opportunity for a partnership?
Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
Activity
Type
Learning Objectives 06-
01
02
03
04
05
06
The Camp Car in the U.S. Market
Case Analysis
X
X
X
The Perfect Haircut: Consumers’ Search Process
Click & Drag
X
Video Streaming Service: The Consumer Decision
Process
Click & Drag
X
Netflix and Consumer Behavior
Video Case
X
X
X
Helping Consumers Decide: Yelp
Video Case
X
X
X
Weight Watchers, Jenny Craig, and Slim-Fast
Case Analysis
X
X
X
X
X
ISeeIt Video Case: Consumer Decision Process
Video Case
X
X
X
The Camp Car in the U.S. Market
Activity Type: Case Analysis
Learning Objectives: 06-03, 06-05, 06-06
Difficulty: Hard
Activity Summary: This case discusses a hypothetical product called the “camp car,” which is
somewhat like a Smart Car. Students are asked questions relating the case to course concepts.
Activity
Introduction: In this activity, you'll be reviewing the features and popularity of a fictional ultra-
compact car, the camp car. This car is already the rage in Europe and is now making its way across
the pond to the U.S. market. This case discusses why the camp car has been so popular in Europe
as well as what challenges the company faced in adapting to the unique consumer behavior of U.S.
auto buyers. Review the case and answer the questions as instructed.
Concept Review: The consumer decision process can be influenced by several factors, including
psychological factors (internal influences such as motives, attitudes, perception, and learning), social
factors (such as family, reference groups, and culture), and situational factors (such as the purchase
situation, the store environment, and the time of day).
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Follow-Up Activity
Internet research challenge: Ask students to find recent data on the most popular car models (note:
models, not brands) in Europe vs. the U.S. Then compare the cars, visiting websites for some of the
models. To what extent do the features of the popular cars support what the case says about the
differences between American and European drivers? Remind the students that they should consider
good Internet research practices, including credibility of the source and currency of the information.
Here are some websites that, as of this writing, have current data:
http://www.best-selling-cars.com/ - This is a blog written by a freelance writer in Switzerland, so his
credibility over the subject matter isn’t well established; however, the wealth of data he has on his site
at least suggests that he’s invested in the accuracy of the information provided.
http://focus2move.com/ - An automotive consulting company’s website
The Perfect Haircut: Consumers’ Search Process
Activity Type: Click & Drag
Learning Objectives: 06-03
Difficulty: Medium
Activity Summary: Different risk factors in the consumer decision process, and their impact on
information search, are applied to a scenario of two consumers choosing a place to get a haircut.
Students click and drag factors into the appropriate categories.
Activity
Introduction: Two consumers are searching for new hair salons and have very different belief
systems and needs that affect the way they search for information. Categorize the following
statements according to the factors that affect consumers' search processes.
Concept Review: The second step in the consumer decision process, after a consumer recognizes a
need, is to search for information about various options that exist to satisfy that need. The length and
intensity of the search are based on the degree of perceived risk associated with purchasing the
product or service.
The student will need to mouse over each of the ten boxes presented in order to understand the ten
items. The statements that appear identify the individual (Joleen or Ginger) and give more insight into the
consumer’s thought process.
Follow-Up Activity
Ask the students to work in small groups to choose a product category in which many different types of
consumers make purchases (some suggestions: shoes, jeans, or a meal in a restaurant). Then describe
two very different purchasing scenarios, as in the haircut example above. For each scenario, identify the
key risk factors that will affect the amount of information search.
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Video Streaming Service: The Consumer Decision Process
Activity Type: Click & Drag
Learning Objectives: 06-01
Difficulty: Medium
Activity Summary: The steps of the consumer decision process are explored in the context of a
hypothetical choice of a video streaming service.
Activity
Introduction: Eva Carlyn is a college student making a decision about a video streaming service. As
part of her decision-making process she asks herself, "Which alternative gives me the best overall
valuethe best selection and convenience at the lowest price?" and, "Which alternative is more likely
to attract friends over to watch movies?" Read about Eva's process and then assemble the decision-
making model as instructed.
Concept Review: To understand consumer behavior, we must learn why people buy products.
Generally, a consumer chooses a good or service because she or he perceives it to be the best
value; that is, the ratio of benefits to costs is higher for that good or service than for any other. The
consumer decision process model represents the steps that consumers go through before, during,
and after making purchases.
First, the student is asked to read a short case about a video streaming purchase decision. Then, the
student categorizes each example according to the step of the consumer decision process it represents.
Follow-Up Activity
Writing prompt: Ask each student to identify two recent purchasesone that was a simple choice, and
another that was more complex. Then, the student should write a short essay describing each purchase
situation, and classifying what happened according to the step of the consumer decision process that
each action or thought process represented.
Netflix and Consumer Behavior
Activity Type: Video Case
Learning Objectives: 06-01, 06-02, 06-03
Difficulty: Medium
Activity Summary: This video case explores the origins of Netflix and the services it offers. After the
video ends, students are asked questions about the video and related course concepts.
Activity
Introduction: Instead of driving to a video store, Netflix subscribers create online lists of DVD
selections from the company's inventory of over 100,000 titles, receive DVDs in the mail, keep them
for as long as they wish, and then mail them back in prepaid envelopes. On an average day, Netflix
ships two million DVDs to its 10+ million subscribers. Despite this high volume, service is prompt and
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efficient, and 90% of Netflix customers say that they actively recommend the service to friends and
family. "Watch It Now" streaming movies are also available to subscribers who want to choose a
movie and watch it immediately. Follow the evolution of Netflix in the video, which discusses the role
of consumer behavior in the firm's success.
Concept Review: To understand consumer behavior, we must learn why people buy products.
Generally, a consumer chooses a good or service because she or he perceives it to be the best
value; that is, the ratio of benefits to costs is higher for that good or service than for any other. Using
principles and theories from sociology and psychology, marketers have been able to decipher many
consumer actions and develop basic strategies for responding to, or anticipating, their behavior.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
At the time that the video was recorded, Netflix’s business was primarily in DVD delivery, and its primary
competitor was Blockbuster. Much has changed since then, particularly in the area of on-demand
streaming of entertainment. But for this activity, we will focus on the DVD rental business, where a new
competitor has emerged: Redbox. Rather than offer a subscription service, Redbox has reinvented the
“DVD rental store” model in a lower-cost format, creating self-service kiosks where consumers can rent
movies quickly and inexpensively, and placing these kiosks in grocery stores and other high-traffic
locations.
In small groups, have students compare Netflix’s DVD services to those offered by Redbox. What types of
customer needs are met by each service? How much information search does each alternative require?
Which one involves more risks? Would you expect each to adopt a transactional or a relational orientation
(this concept is from Chapter 1)?
Helping Consumers Decide: Yelp
Activity Type: Video Case
Learning Objectives: 06-01, 06-02, 06-03
Difficulty: Medium
Activity Summary: This video case discusses Yelp, where consumers can review local businesses,
and relates it to different factors that impact the consumer decision process. After the video ends,
students are asked questions about the video and related course concepts.
Activity
Introduction: Founded in 2004, Yelp is a website/service that connects consumers with many types
of local businesses. These businesses range from restaurants to dentists to beauty salons. The site
has grown tremendously and its international community of users call themselves Yelpers. In January
of 2011, Yelp had more than 45 million unique visitors. Yelpers have written over 15 million local
reviews. All of these word-of-mouth reviews are locally indexed, the starting point for Yelp searches.
Yelp has grown to be a valuable resource to aid consumer decision making.
Concept Review: Many consumer decisions require searching for and evaluating information. There
are psychological factors that affect the search process such as past experience, locus of control, and
perceived risk. When consumers evaluate alternatives, they often use decision rules regarding
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determinant attributes. After evaluation, consumers are typically ready to buy. There are also a
number of factors that influence the overall decision process. In this activity, you will be examining
these factors as they relate to Yelp.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
For class discussion or writing prompt:
One problem with online review sites is the writing of “shill” reviews. For example, a hotel owner or
employee might post reviews of his/her own hotel, or might offer customers an incentive (such as a
discount) to post five-star reviews regardless of the customer’s true opinion.
But even omitting false reviews, there are still challenges in using online reviews to aid in decision
making. For almost any product or service, you can find a wide range of opinions, from wildly positive to
just as wildly negative.
How do you decide which reviews are the best predictors of how you will feel about the product or
service? What cues cause you to trust or mistrust a review? How do you identify your online “reference
group” among those reviewers: the ones who are most likely to share your wants, needs, and attitudes?
Weight Watchers, Jenny Craig, and SlimFast
Activity Type: Case Analysis
Learning Objectives: 06-01, 06-02, 06-03, 06-04, 06-05
Difficulty: Hard
Activity Summary: A short case compares and contrasts the products and services offered by
Weight Watchers, Jenny Craig, and SlimFast. Students are asked questions relating the case
material to course concepts.
Activity
Introduction: The weight loss industry, worth over $60 billion in 2010, is growing steadily because
lifestyles and food choices keep working against people's desire to lose weight. Many Americans
spend their days sitting in front of a computer and their evenings sitting in front of a television.
Restaurant meals, prepared foods, and high-fat/high-sugar snacks have replaced home-cooked
meals, whole grains, and fresh produce. Exercise is limited to clicking a mouse or turning an ignition
key. Three recognized diet-aid behemoths, Weight Watchers, Jenny Craig, and SlimFast, share a
substantial piece of the pie of this highly lucrative market.
Concept Review: It is vital that marketers study consumer behavior to understand why people buy
specific products or services and not others. Generally, people buy one product or service instead of
another because they perceive it to be the better value for them; that is, the ratio of benefits to costs
is highest for the product or service they purchase. But buyer behavior is far more complex than that,
and the best value is not always chosen. The consumer decision-making process model represents
the steps that consumers go through before, during, and after making purchases. In this decision
process, consumers use decision rules that are a set of criteria used consciously or subconsciously to
quickly and efficiently select from among several alternatives. Marketers need to consider that the
consumer decision process is influenced by several factors: social, psychological, situational, and the
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marketing mix itself. In general, consumers make two types of buying decisions, depending on their
level of involvement: extended problem solving; and limited problem solving, which includes impulse
buying and habitual decision making.
ISeeIt Video Case: Consumer Decision Process
Activity Type: Video Case
Learning Objectives: 06-01, 06-03, 06-05
Difficulty: Medium
Activity Summary: This video case explores the consumer decision process, using the selection of a
flight home for the holidays as the context.
Activity
Introduction: Behind the act of making a purchase lies a complex and important decision-making
process. Buyers typically pass through a five-stage process where they must decide between a set of
possible options to meet their needs. Take for instance Gabbie and her need to fly home to see her
parents during the holiday season. With her limited budget and even less experience, she relied on
her parents, her boyfriend and the Internet as sources of information to help guide her decision. Upon
finding a series of alternatives which met her budgetary and personal requirements, she decided to
purchase a flight with Jet Green. While she enjoyed her flight, the airline lost Justin’s luggage, which
left her with a somewhat negative opinion of an otherwise satisfying experience. While this negative
opinion may impact Gabbie’s immediate evaluation of the experience, her future purchasing needs
along with motivation, personality, and perception will also influence potential travel purchases with
Jet Green.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.

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