Marketing Chapter 2 Selection The Store May Carry The Products And The Brands She Wants

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selection. The store may carry the products and the brands he or she wants. The products

are of high quality and offered at a fair price. In addition, the store’s products appeal to

them in terms of tastes and design.

BUSPROG: Reflective Thinking

DISC: Product

LO: 2-3

Topic: A-head: Marketing Strategy and Consumer Value

Bloom’s: Evaluation

Difficulty: Moderate

4. What types of utilitarian and hedonic value does Sears presently provide to its customers?

5. Can Sears be revived? If so, what should their new value equation be? If not, explain.

Topic: A-head: Value and Its Two Basic Types

Bloom’s: Analysis

Difficulty: Moderate

Part 1 Online Case Answers

Visit www.login.cengage.com to access the online case studies for CB.

Total Marketing Strategy: You Won’t Come Back by Chance

1. What is the perceptual map for the gas station companies in France (Elan, Elf, Total, and

the hypermarkets)? What would be the two dimensions you would use to best describe the

portfolio of brands that Total Group has in its market?

2. Based on the perceptual map, propose a set of marketing actions beyond those that have

been mentioned, that should be used by Total brand. Use the 4Ps (price, product, place,

promotion) framework to propose these actions and link each action to the CVF

framework.

3. What are the things that may build utilitarian and hedonic value when consumers go to a

gas station? Describe how an Elf store might increase value in consumers’ shopping

experience.

4. What are the marketing segments that each store is trying to cover? What are the

fundamental benefits that consumers in each of those segments are seeking when choosing

a gas station? Do you think Total Group has done a good job identifying market segments

and appealing to these segments? Are some segments left unserved by Total?

Not Buying Organic? Why not?

1. The Consumer Value Framework (Exhibit 2.1) lists consumer psychology, consumer

personality, the social environment, and situation as internal and external influences on

consumption. How have these influenced the consumer behavior mentioned in this case

study? How does organic food provide utilitarian and hedonic value to Jill and her aunt?

2. What is Jill’s Value Equation (Exhibit 2.2) for regular carrots? How do changes in the

value equation explain Jill’s purchase of mini-carrots over organic carrots? What is an

example of your own consumption in which you gave up something to get something else?

3. How is product differentiation and/or relationship marketing used—by farmers, food

companies, or retailers—to add value for consumers and thus increase repeat sales in the

organic food industry?

4. What kind of information could a researcher find out by engaging in (a) quantitative

research and (b) interpretive research? Are you surprised that survey reports are biased in

that consumers say they are willing to pay a higher price for organic food than they

actually are?

interpretative research helps researchers understand the subjective aspects of

consumption that surveys can’t capture, especially when consumers lack insight into

their own behavior (which is the case when consumers say that they are willing to

pay more but often don’t). Thus, interpretive research can help explain Jill’s

inconsistencies in behavior or why green products are more successful in some

product categories than others. Interpretive research can help marketers uncover their

consumers’ deep-seated motives, emotional connections with a product, and

symbolic meaning associated with a product. It will also help marketers understand

how organic products fit into their consumers’ lives. For example, one group of

consumers might associate organic products with purity and simplicity, and they may

buy these organic products as a defense against modernity. Some parents might buy

organic baby food regardless of its price to lessen the insecurities they feel when

parenting a vulnerable infant.

Learning About CB: Is Your Coke OK?

1. Define marketing and consumer behavior. Provide your own definition (not the textbook

definition) of consumer behavior. How can consumer behavior be applied to your life

experiences?

2. Compare/contrast human behavior and consumer behavior. Why do marketers study

consumer behavior? What activities of Randy’s would you identify as being examples of

consumer behavior, and why?

3. What factors do you think contributed to the failure of New Coke and OK Soda? Do you

think these products could be successfully re-marketed today?

4. Keep a log of your daily activities for three days. List and describe those activities that you

would categorize as consumer behavior. How might your activities be studied by a

consumer behavior researcher?

CVS Case

1. Visit the CVS/pharmacy website (http://www.cvs.com). What other benefits does CVS

provide to ExtraCare customers? Provide examples of both utilitarian value and hedonic

value.

2. Suppose a major competitor launches its own customer value card program. How might

CVS respond? What recommendations would you give CVS to improve the ExtraCare

program?

3. What are the advantages and disadvantages of not requiring personal information from

customers for participating in the ExtraCare program?

4. What ethical issues would CVS need to consider before changing their ExtraCare policy to

require an address and phone number?

Vous Vois Vision Case

4. Why might Blaire be interested in hiring a researcher to do some interpretive research

about consumers and eyewear?

Part 1 Video Case

To view the Part 1 video case, go to the CB companion website login.cengage.com.

North Face Shopping Experience

Time: This video is five to seven minutes long.

Concepts Illustrated in the Video

• Value

• Consumption

• Consumer value framework

• Relationship marketing

• Relationship quality

• Internal influences

• External influences

Synopsis

warranties. Price is a concern for Patrick, so he asks Andy to show him alternatives to the

original fleece version that sells for $150. Patrick finally settles on a jacket retailing for $79 and

presents the store with a coupon for added savings. After Patrick’s hiking trip, he returned to the

store to purchase the original jacket that Andy had originally recommended—the $150 jacket!

Ironically, the temperature on the summit had reached a record low of 10 degrees Fahrenheit in

June!

Teaching Objectives for the Video Case

• Introduce students to the consumption process.

• Define consumer value and compare two key types of value.

Critical Thinking Questions—Suggested Answers

1. Explain what is meant by relationship marketing. How many touchpoints were illustrated

in the video?

2. What is the value of a North Face jacket? Does the salesperson in the video clearly

communicate the value of the jacket? Explain your answer.

3. List the internal influences and external influences that Patrick faced in purchasing the

jacket.