Marketing Chapter 5 Homework Sheet Starbucks Via Ready Brew Iced Coffee

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subject Authors Roger Kerin, Steven Hartley

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Chapter 05 - Understanding Consumer Behavior
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3. What are the possible situational, psychological and sociocultural influences on the
Coppertone consumer purchase decision process?
Answer:
4. What specific marketing activities does Coppertone utilize to help Coppertone grow
in the marketplace?
Answer:
5. What challenges does Coppertone face in the future? What actions would you
recommend related to each challenge?
Answers:
Coppertone faces several challenges in the future:
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Epilogue
Coppertone is now owned by Bayer, which is a global enterprise with products and
services designed to benefit people and improve their quality of life. In fact, the Bayer
advertising tag line is “Science for a Better Way of Life.” A recent Bayer ad for a position as a
Coppertone Global Brand Leader states, “At Bayer you have the opportunity to be part of a
culture where we value the passion of our employees to innovate and give them the power to
change.”
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TEACHING NOTE FOR APPENDIX D CASE D-5
DECODING A PURCHASE DECISION
Synopsis:
When and how does a buying decision actually get made? This case describes the series
of events preceding the purchase of an espresso machine by Brock and Alisha Jamison. The
description follows the couple from the summer of 2014 when they first saw an espresso
machine to January 29, 2016, when Brock and Alisha purchased their own espresso machine. A
student’s task in analyzing this case is to diagnose the purchase decision process. By doing this,
a student will hopefully come to understand and apply the behavioral concepts discussed in
Chapter 5.
Teaching Suggestions:
This case is suited for use after Chapter 5 has been discussed. In teaching this case,
instructors should try to illustrate and expand on the behavioral concepts affecting a buying
decision that is brought out in the chapter.
Answers to Questions:
1. Which of the Jamisons decided to buy an espresso machine? The Krups brand?
2. When was the decision to buy made?
Answer:
a. This question is purposely vague on what constitutes a “decision.” At least six
reasonable decision points could be raised. They are:
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3. What were the important attributes in the evaluation of the Krups brand?
Answer:
4. Would you characterize the Jamisons’ purchase decision process as routine
problem solving, limited problem solving, or extended problem solving? Why?
Answers:
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ICA 5-1: IN-CLASS ACTIVITY
Buying Process for Starbucks VIA Refreshers Instant Coffee1
Learning Objectives. To illustrate the consumer purchase decision process for coffee.
Nature of the Activity. To relate the consumer buying process to purchasing a cup of
Starbucks coffee.
Estimated Class Time and Teaching Suggestions. This ICA runs about 20 minutes,
taught in class in 4-person teams.
Materials Needed.
Instructors may want to purchase the Starbucks VIA Refreshers Instant Coffee at
a local Starbucks store or grocery store (where available) for about $10 for a bag
of 12 packets.
Instructors may want to “brew” several of the Starbucks VIA Refreshers Instant
Coffee to bring to class (if permissible) to have students taste this product.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
1 The authors wish to thank Maggie Jantzen, Corporate Communications of Starbucks, who assisted in the development of this ICA.
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Coffee is a commodity. People can buy a cup of coffee almost anywhere in the world
or make it themselves. With most commodities, firms cannot charge a premium
price. However, Starbucks does charge a higher price for a cup of coffee because it
result, on September 29, 2009, Starbucks introduced its VIA Ready Brew Instant
Coffee in North America. The instant coffee was launched in other countries in 2010.
Interestingly, Starbucks only sells its VIA Ready Brew Instant Coffee in packages
ranging from six ($6.95) to 50 servings ($35.95)it does NOT sell the instant coffee
in its signature short (hot drinks only), tall, grande, and venti sizes. Starbucks VIA is
reached $100 million in global sales within the $300 million single serve coffee
category! Starbucks VIA Ready Brew Instant Coffee customers consume the drink
in the following manner: 55% drink it at home; 25% at work; and 20% ‘on-the-go.’
At this point in its history, Starbucks VIA Ready Brew Instant Coffee is now
available in 37,000 ‘points of distribution,’ which includes grocery, drug, mass
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In July 2012, Starbucks launched Starbucks Refreshers beverages that are made
with green coffee extract and fresh fruit “for a boost of natural energy” to attempt an
entry in the $8 billion energy drink market. Starbucks Refreshers are sold in stores
5. Have the student teams write down their ideas on the purchase decision process they
use to buy a cup of coffee and then rank the top three factors.
7. Figure 5-1: Purchase Decision Process. Call on one or two student teams to answer
each of the following questions about the purchase decision process for a cup of
coffee:
Question 1: What triggers the decision to buy a cup of coffee? Is it a need?
A want?
Question 2: How do you seek information about the purchase of a cup of
coffee, knowing that coffee is a commodity?
Question 3: What evaluative criteria do you use when deciding to purchase a
particular coffee brand?
Question 4: What is your consideration set of coffee brands?
Question 5: When and where do you buy a cup of coffee?
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Question 6: With respect to the purchase of your last cup of coffee, did you
experience any cognitive dissonance? If dissatisfied, what was deficient? Did
you tell anyone? Will you go back? What marketing activities could be
undertaken to reduce this?
Question 7: Do any of you drink instant coffee? How does it compare to
fresh brewed coffee? What do you think of Starbucks’ VIA Ready Brew
Instant Coffee? What, if any changes in your purchase decision process
would this product cause? Would you be willing to pay $2.95 for a 3-pack?
Why or why not?
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Connect Application Exercises
Application Exercise 1: Psychological Influences
Activity Summary: In this click and drag activity, students are exposed to psychological
influences on consumer behavior including values, beliefs and attitudes, perception, lifestyle,
learning, and motivation and personality. Students drag each of the examples to the appropriate
psychological influences. The examples include home security system purchase, exposure to
television commercials, driving a car, being a thrifty shopper, and being an avid bowler.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Psychological Influences
Learning Objectives: LO 05-03: Identify the major psychological influences on consumer
behavior.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could expand on the psychological factor overview presented in
the activity, focusing on consumer lifestyle. Allow students to take the VALS survey online
Application Exercise 2: Purchase Decision Process
Activity Summary: In this click and drag activity, students are provided with the five stages of
the consumer purchase decision process: problem recognition, information search, alternative
evaluation, purchase decision, and post purchase behavior. Students are provided a lunch
purchase scenario broken into 5 stages; growling stomach, talking to friends, evaluating pros and
cons, choosing a restaurant, and feeling full and happy, which are dropped onto the correct stage
of the consumer purchase decision process.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Consumer Purchase Decision Process
Learning Objective: LO 05-01: Describe the stages in the consumer purchase decision process.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 1 Easy
Follow-Up Activity: Instructors could ask students to compare and contrast the difference
between planning a dinner out with their closest friend and planning a dinner out with their boss
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Application Exercise 3: Situational Influences
Activity Summary: In this click and drag activity, students classify situational influences into
one of five categories; purchase task, social surroundings, physical surroundings, temporal
effects, or antecedent states. Examples of the situational influences include buying a wedding
present, the installation of hardwood floors in a store, extended drive-thru hours, a department
store credit card, and a store greeter. Students mouse over the situational influences to reveal a
brief hint before dropping the situational influence into the correct category.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Situational Influences
Learning Objectives: LO 05-02: Distinguish among three variations of the consumer purchase
decision process: extended, limited, and routine problem solving.
AACSB: Knowledge Application
Blooms: Analyze
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to imagine that they planned on opening an
upscale boutique toy store that targets an affluent clientele. Its product lines include
Application Exercise 4: Consumer Lifestyle: VALS
Activity Summary: In this click and drag activity, students are given eight dragable items (CFO
Corbin, Judge Smith, Mary Margaret, Fred Flashy, Mike Money, Ace Adventure, Bette Baker,
and Suzy Struggle) which give students a description of the consumer’s lifestyle, including their
resources and motivation. The eight items are then dragged and dropped onto the appropriate
location in U.S. VALS Framework.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Psychological Influences
Learning Objective: LO 05-03: Identify the major psychological influences on consumer
behavior.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could access Claritas’ free PRIZM Segmentation, My Best
Segments, to show students how lifestyle, demographics, and geographics are used to create
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reviewing the segments, ask students to suggest products and/or marketing tactics that would be
appropriate for the PRIZM segment.
Application Exercise 5: Groupon: Helping Consumers with Purchase Decisions
Activity Summary: In this 8-minute video case, Groupon’s service, growth, and history is
presented to students by Groupon employees. Groupon’s function as intermediary is clearly
explained as it creates value for its merchants and its customers. Students also see how
Groupon’s uses its technology and understanding of consumer behavior in its business model.
Students are asked a series of five questions covering the topics of risk, consumer buying
decision model, value, word of mouth, and attitude.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Consumer Purchase Decision Process, Word of Mouth
Learning Objectives: LO 05-01: Describe the stages in the consumer purchase decision
process.
LO 05-03: Identify the major psychological influences on consumer
behavior.
LO 05-04: Identify the major sociocultural influences on consumer
behavior.
AACSB: Knowledge Application
Blooms: Apply, Understand
Difficulty Level: 2 Medium
Follow-Up Activity: Since its introduction in 2008, Groupon has faced significant criticism and
competition. Instructors can ask students to perform online research on Groupon’s recent history.
Application Exercise 6: iSeeit! Video Case: Consumer Decision Process
Activity Summary: In this straightforward whiteboard animation video, the consumer decision
process is explored in the context of a student choosing an airline for her travel home for the
holidays. After watching the 3-minute video, students are asked five follow-up questions related
to the consumer decision process.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Consumer Purchase Decision Process, Psychological Influences, Word of Mouth
Learning Objectives: LO 05-01: Describe the stages in the consumer purchase decision
process.
LO 05-03: Identify the major psychological influences on consumer
behavior.
LO 05-04: Identify the major sociocultural influences on consumer
behavior.
AACSB: Knowledge Application
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Blooms: Understand
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to record the consumer decision process that
they experienced as they chose where they were going to attend college. Once the students have
Application Exercise 7: Understanding Problem-Solving Variations
Activity Summary: The consumer purchase decision process is fundamental to this click and
drag activity which focuses on the difference between extended, limited, and routine problem
solving. Students are given six purchase scenarios including the purchase of a smartphone, a
microwave oven, breakfast cereal, a car, running shoes, and a candy bar which must be dropped
onto the appropriate problem-solving variation (extended, limited, or routine).
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Consumer Purchase Decision Process, Psychological Influences, Word of Mouth
Learning Objective: LO 05-02: Distinguish among three variations of the consumer purchase
decision process: extended, limited, and routine problem solving.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 1 Easy
Follow-Up Activity: Instructors can reinforce the importance of involvement in a follow-up
activity in which students are asked to list ten products for each purchase category (extended,
Application Exercise 8: Coppertone
Activity Summary: In this video, Coppertone’s attention to the ever-changing needs of its
customers is discussed. The importance of understanding the consumer’s mindset, behavior and
attitudes is linked to managerial decision making. After viewing the video, students are asked
questions about information sources, sociocultural influences, and the consumer purchase
decision model.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Consumer Purchase Decision Process, Psychological Influences, Word of Mouth
Learning Objective: LO 05-01: Describe the stages in the consumer purchase decision
process.
LO 05-02: Distinguish among three variations of the consumer purchase
decision process: extended, limited, and routine problem solving.
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LO 05-03: Identify the major psychological influences on consumer
behavior.
LO 05-04: Identify the major sociocultural influences on consumer
behavior.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could create a classification game out of index cards that
summarizes the major concepts in consumer behavior. Each set of cards should be in a different
color. The first set of cards would contain the purchase process: problem recognition,

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