PART IV
CASE SOLUTIONS
CASE 4-1 SCENT MARKETING REACHES CONSUMERS’ EMOTIONS
1) Chapter 13 discusses aromas as a situational characteristic that influences consumer
behavior. Assemble a small group of consumers and perform a focus group about their
impressions of scent marketing. Also, investigate what effects consumers believe these
scents have with their behavior. Compare and contrast these conscious reactions with
what behavioral effects we know that scents have based on existing research.
2) Chapter 14 discusses the nature of problem recognition. Discuss the role that scent
marketing might play in problem recognition in terms of actual state and desired state.
Scents can affect both the actual and the desired state of consumers. For example, a
3) Chapter 16 discusses consumer choice processes. Does scent marketing most impact
affective choice, attitude-based choice, or attribute-based choice? Justify your answer.
4) Chapter 16 also discusses bounded rationality, which is consumers’ limited capacity for
processing information. Many retailers who use scent diffuser use such small amounts of
scent that consumers may not realize that the retailer’s scent is playing a role. Discuss the
ethical implications.
5) When it comes to the ethical implications of scent marketing, do you feel that there is a
difference in retailers that use natural scents (like food retailers baking in the retail space)
versus retailers that use artificially manufactured scents?
6) Brainstorm a short list of brands, make sure that some are typically involved with
nominal decision making and others are typically associated with extensive decision
making. Then, imagine you are a marketer for those brands and describe the types of
aromas that would match with each brand.
7) Visit a local shopping mall and the lobbies of several major hotel chains. Pay attention to
the smells that you encounter while in each retail establishment. Prepare a short report
that compares and contrasts the scents that you encounter in each location.
CASE 4-2 AMAZON PRIME AIR PREPARES FOR TAKEOFF
1) Chapter 15 and 17 discuss information search and shopping. If Amazon is successful with
its launching Amazon Prime Air how could this change the information search in the
consumer decision process and could it result in more online purchases?
As online shopping is increasingly adopted by consumers, there is a lot of opportunity for
Amazon. Many consumers use omnichannel retailing (see Chapter 17), meaning using
2) Chapter 16 discusses evaluative criteria and chapter 18 discusses post-purchase cognitive
dissonance. What could are some things that Amazon could do to aid consumers in
making decisions about a product and the evaluative criteria they are considering
purchasing? Could this help make consumers feel more comfortable about purchasing a
product online and reduce post-purchase guilt and dissonance?
Answers will vary, but Amazon could do many things to encourage purchases online.
First, Amazon could increase the quantity of evaluative criteria on each product.
3) Chapter 17 discusses perceived risks. What perceived risk is Amazon reducing? How?
Amazon is rethinking its value proposition to consumers and addressing consumers’
4) Chapter 17 also discusses characteristics of online shoppers and provides a typology of
online shopping segments. Justify your response. (Hint: multiple segments could be
correct depending on your justification).
a. Which of these segments would be most likely to adopt Amazon Prime Air?
b. Which of these segments would be least likely to adopt Amazon Prime Air?
a. Answers may vary, however here is one answer. Upscale Clicks and Bricks are
most likely to use Amazon Prime Air because they are 68 percent more likely
5) Chapter 13 discusses situational characteristics. Which situational characteristics might
play a role in a consumer’s decision to purchase with Amazon Prime Air? Explain.
Temporal perspectives are situational characteristics that deal with the effect of time on
consumer behavior. The convenience of Amazon Prime Air would be appealing for
6) Chapter 7 discusses types of innovation. Is Amazon Prime Air best described as a
continuous, dynamically continuous, or discontinuous innovation?
Amazon Prime Air is best described as a discontinuous innovation because it is a ground
CASE 4-3 TARGET RESISTS THE CHRISTMAS CREEP
1) Chapter 13 defines and discusses the role of ritual situations in shopping behavior. What
ritual situations play a role in this case?
A ritual situation is defined as “a socially defined occasion that triggers a set of interrelated
2) How is Target using a multi-channel strategy to better focus Christmas Creep messages on
those customers who they know do their holiday shopping earlier?
Target is holding back on the mass-advertising of Christmas and of holiday décor and
3) Chapter 14 focuses on the problem-recognition portion of the consumer decision-making
process. By engaging in Christmas Creep, what role do marketers play regarding problem
recognition?
By running holiday-themed promotions that depict an ideal holiday scene, marketers are
helping consumers recognize their problem: that there is a difference in their actual state and
4) Chapter 17 discusses how retail managers may manipulate atmospherics to create specific
mood responses from customers. Using the text, the case, and your own experiences, how
might decorating retail stores in a holiday theme well before Thanksgiving, or even
Halloween, affect the atmospherics of the store? Why are atmospherics important?
Atmospherics encompass many environmental variables, including music, color, lighting,
5) Chapter 3 discusses several cultural values that play a role in consumer behavior. Which
value(s) discussed in the text are relevant to Christmas Creep and holiday shopping? Why?
Several of the cultural values in Chapter 3 are relevant to this case:
• Religious versus secular – with the religious focus of the holiday being replaced with
CASE 4-4 NETFLIX CONTINUES TO CHANGE THE FACE OF IN-HOME
MOVIES AROUND THE GLOBE
1) Chapter 10 discusses how consumers cope with product and service encounters including
product and service failures. Describe in what sense Netflix’s change in pricing strategy
could be seen as a product or service failure and the coping strategies that its customers
appear to be utilizing.
Dissatisfaction is caused when product or service performance falls below customer
2) What factors do you feel contributed to customers’ high levels of anger toward Netflix’s new
pricing policy? How might Netflix have handled this situation better? Explain.
Any number of reasons could account for the anger including:
• Need for Attribution – attribute Netflix strategy to profit motive rather than a move
based on the desire to enhance customer satisfaction.
3) Netflix, as well as its competitors, use the internet as part of a multi-channel strategy.
Research the product and service offerings of two or more of Netflix’s competitors in the in–
home movie industry, such as Blockbuster, Walmart, Amazon Prime or Redbox. Compare,
contrast, and explain how the competitors you chose are using a multi-channel strategy.
Students should be encouraged to create a table with the various features, including channel
4) Chapter 17 describes several segments of Internet shoppers that were identified by Experian
based on their attitudes and behaviors. Which of these segments are most likely to fit the
target market for digital movie delivery? Multiple segments may be correct. Explain the basis
for your answer.
The Upscale Clicks and Bricks, Virtual Shoppers, and Status Strivers groups are the most
5) Chapter 15 discusses information search in the consumer decision-making process. Explain
which of the strategies relating to information search patterns shown in Table 15-3 could
Netflix’s competitors best use to capture market share in light of Netflix’s new pricing?
If you assume choosing an in-home movie provider is a limited decision and that these new
6) Netflix has begun the process of expanding its online-video-streaming service globally.
According to the case, Netflix already has a strong presence in the Western Hemisphere and
is considering expansion into other countries.
a) Using Table A and what you’ve learned about cross-cultural marketing and culture
variations, explain why Netflix may be interested in expanding into Europe.
Europe possesses 26 percent of the global demand for digital movie delivery services.
b) Which of the European countries in Table B would be especially attractive for Netflix to
enter? Justify your answer.
The United Kingdom would be a likely candidate for Netflix’s first entry into Europe. It
c) What considerations should Netflix make when approaching a foreign market?
Students should be encouraged to examine the seven considerations discussed in Chapter
CASE 4-5 MACY’S EMBRACES BEACON TECHNOLOGY
1) Would this shopBeacon technology be best targeted to individuals engaged in the
nominal, limited, or extended decision making process (or more than one)? Justify your
response.
This technology would likely be targeted at the nominal decision makers since the quick
and specific promotions or push notifications would likely be most useful at that one
2) Chapter 17 discusses omni-channel shoppers. Do you think the benefits of this
technology will outweigh the possible nuisance of push notifications as they move
through the store and simultaneously receive information on their smartphones?
Answers will vary. The following is one possible answer. Some individuals who see a
3) Chapter 15 discusses mobile search and details five segments of mobile phone users.
Which of these segments do you feel will be most accepting of shopBeacon technology?
Which would be least accepting? Why?
Answers may vary, but the important part is that students justify their answers. Here are
some likely responses.
• The most likely segment to adopt this technology is the Mobirati segment because
4) Chapter 15 also discusses marketing strategies based on information search patterns.
Which of these strategies is best complimented by location-based technology? (Hint:
more than one could be correct with a logical explanation). Explain your answer.
Four of the strategies that this technology could serve well.
5) Chapter 17 discusses the nature of unplanned purchases. How would Macy’s shopBeacon
program affect
a. Planned purchases
b. Unplanned purchases
a. It can be used to reinforce and support repeat, planned purchases by ensuring that
6) Assemble a small group of consumers and conduct a focus group on their perceptions of
location-based technology like shopBeacon. Would they download the app to engage
with it? Would they opt-in for some retailers and not others? Why? Would it play a role
in their selection of retailers to patronize?
7) Chapter 9 discusses brand image and product positioning. Think about Macy’s and other
department store’s brand images. One axis should be high versus low technology
adoption. The other axis could be any bi-polar set of adjectives of your choosing. Then,
construct a perceptual map that includes several department stores.
8) Chapter 7 discusses types of innovation. Is shopBeacon best described as a continuous,
dynamically continuous, or discontinuous innovation?
CASE 4-6 TESLA’S NOVEL AND ENVIRONMENTAL APPROACH
DRIVES AMAZING BRAND LOYALTY
1) Chapter 9 discusses schemas, which are also known as schematic memories and
knowledge structures. Construct a schema diagram for Tesla.
Answers will vary, but likely answers will involve something to do with environmental
2) Describe at least two segments of the market for Tesla electronic vehicles. List the
different needs, demographics, and psychographics for owning a Tesla for each of these
segments.
Students should be encouraged to create a grid in which they list various segments and
3) Based on your analysis in the previous question, develop ads for each segment. Be sure
to include key positioning statements, key copy points, visuals, and so forth for each and
defend your decisions.
evidence in the previous question.
4) Evaluate Tesla’s website (www.teslamotors.com).
Always check the site prior to assigning this question. However, the most recent look
5) In this age of $4-per-gallon gasoline and concerns about carbon emission, discuss how
Tesla can be both a utilitarian decision and a value-expressive decision.
The high price of fuel can be a utilitarian factor. The climate issue can be a dimension on
6) In general, how do gas prices or fuel costs factor into the decision-making process for
consumers in terms of influencing the consideration set and decision making rule used in
selecting a transportation option? In the context of Tesla’s high sticker price, does your
answer change? If so, how? Detail and explain. (Hint: consider the marketing strategies
based on information search patterns in Chapter 15).
High fuel costs increase the likelihood that electric vehicles are in the consideration set.
7) To which of the eight “Shades of Green” segments discussed in Chapter 3 does Tesla
appeal most? Explain you answer.
Several of the segments could be correct, but the important part is that students justify
their answers.
Eco-centrists – high environmental concern backed up by consistent behaviors. Also, this
8) Chapter 7 discusses types of innovation. Is a Tesla best described as a continuous,
dynamically continuous, or discontinuous innovations? Explain your answer.
A Tesla electric vehicle is best described as a dynamically continuous innovation because
CASE 4-7: GILT GROUPE’S INNOVATIVE APPROACH TO LOYALTY
PROGRAMS
1) Define loyalty as you understand it from the text. Do you think the Gilt Insider Program
at Gilt Groupe helps create loyalty? Explain.
Answers will vary but students should refer to both a behavioral and emotional or
2) Conduct a small focus group of consumers who you think may fit the Gilt Groupe target
market. Ask the participants about their perceptions of the Gilt Insider Program. How
effective to they think this loyalty program will be in generating engagement and loyalty?
What is their opinion of the rewards that are offered as part of the program? Then, repeat
this exercise with another group of consumers who you think would not be part of the
Gilt Groupe target market.
3) This loyalty program was designed to achieve two goals, namely, increasing consumer
engagement with Gilt Groupe and increasing sales from Gilt Groupe.
a. How well do you think that the Gilt Insider Program will meet each of these
goals?
b. Which of the goals do you think will be best achieved by this loyalty program?
c. This program was launched in 2013. Since some time has passed since then,
perform an internet search to discover any reports on the Gilt Insider Program’s
progress. How well did your predictions from part a and part b perform?
a. Gilt’s program should effectively increase engagement and sales.
4) Many Gilt Groupe members will likely log in to Gilt.com to browse the flash sales daily
in order to accumulate points in the Gilt Insider Program. This engagement will expose
them to sales and many are likely to make unplanned purchases. Chapter 13 discusses
situational influences. What situational characteristics are likely to play a role in these
purchase decisions? (Hint: more than one category could apply)
Answers will vary. However, one probable response is temporal perspectives. Because
5) Chapter 17 discusses internet retailing and provides a typology of online shopping
segments.
a. Which segments are very likely to enroll in the Gilt Insider Program? Why?
b. Which segments are very unlikely to enroll in the Gilt Insider Program? Why?
a. Answers may vary, but Upscale Clicks and Bricks is a likely response because
6) Chapter 9 discusses schemas, which are also known as schematic memories and
knowledge structures. Construct a schema diagram for Gilt Groupe.
4-8 ALBERTSONS DITCHES SELF-CHECKOUT IN FAVOR OF HUMAN
CONTACT
1) The presence of self-service checkout lanes and/or service employees are part of the physical
surroundings in Albertsons’ store atmosphere, or environment.
a) Using the Typology of Service Environments in Figure 13-2, describe where Albertsons
would be positioned within the grid.
A typical shopping trip to Albertsons is relatively short in duration and may serve both
b) Does having more human contact and fewer self-checkout lanes influence Albertsons’
position?
Having more human contact could satisfy social needs and influence customers’ behavior
2) Chapter 17 discusses the relationship between involvement, sales personnel, and the
likelihood of self-service. Cashiers are a basic form of sales personnel. Describe Albertsons
service environment in terms of involvement and the appropriateness of sales personnel
versus self-service.
According to the text, self-service is predominant in low-involvement purchases, and the
3) Interpret the information in Tables A, B, and C.
a) What are the primary needs that self-service checkouts satisfy for those customers who
prefer them?
The primary need that is fulfilled for the segment of customers who prefer self-checkout
b) What other industries present the best opportunities for the self-service checkout industry
to grow?
Several other industries in Table C are poised for growth of self-service technology,
4) Chapter 10 discusses Maslow’s hierarchy of needs. What need is Albertsons attempting to
fulfill by increasing the company’s human contact with its customers? Explain.
By shedding self-checkout in favor of more human contact, Albertsons is attempting to
5) Chapter 7 discusses categories of innovations. What type of innovation is self-service
checkout technology?
Self-service technology does require a moderate change in behavior as consumers must learn