Alex is developing the marketing strategy for a brand of men's clothing. Before hedevelops his strategy, Alex will conduct research to better understand his customers.Briefly describe a conceptual model that includes the factors he should consider in hisresearch.Page: 26-29 Difficulty: moderateAnswer:This question is attempting to get students to broadly discuss the elements of theoverall model of consumer behavior illustrated in Figure 1-3 and discussed in thechapter. Factors Alex should consider include external influences (i.e., culture,subculture, demographics, social status, reference groups, family, and marketinginfluences) and internal influences (i.e., perception, learning, memory, motives,personality, emotions, and attitudes). These external and internal factors shapeconsumers' self-concepts and lifestyles. These self-concepts and lifestyles produceneeds and desires, many of which require consumption decisions to satisfy.

Jason is planning a business trip to Japan, and it is his first time doing business in thatcountry. Discuss some value differences between Japanese culture and Americanculture that are most relevant to him in a business meeting situation.Page: 46-53 Difficulty: hardAnswer:One key area where there are substantial differences between the Japanese andAmerican cultures is the area of “other-oriented” values. Individualism is a definingcharacteristic of American culture, whereas the Japanese are more collective in theirorientation. While American society is clearly youth oriented, many Asian cultureshave traditionally valued the wisdom that comes with age. Cultures with moremasculine and individualistic orientations such as the U.S. tend to valuecompetitiveness and demonstrate it openly, but collectivists cultures, even highlymasculine ones such as Japan, tend to find openly competitive gestures offensive asthey cause others to “lose face.” Finally, Japan and other collectivist cultures tend toplace a strong value on uniformity and conformity, whereas other cultures, such as theU.S., value diversity more.Another area where there are differences between the Japanese and American culturesis the area of “self-oriented” values. Americans are much more prone than theJapanese to take an action-oriented approach to problems

The company you work for wants to integrate its philanthropic charitable giving withits own corporate performance. Explain how this can be accomplished, and discusshow consumers might respond to this effort.Page: 95-97 Difficulty: moderateAnswer:Cause-related marketing (CRM) is marketing that ties a company and its products toan issue or cause with the goal of improving sales or corporate image while providingbenefits to the cause. Research has shown that CRM increases consumers' trust in thecompany, claim that a company's commitment to a social cause is important whendeciding what to recommend to other people, and that they are willing to switchbrands based on CRM when price and quality are equal. However, four segments ofconsumers have been identified: (a) Skeptic (i.e., doubt sincerity or effectiveness ofCRM), (b) Balancer (i.e., believe in CRM but generally don't act accordingly), (c)Attribution-oriented (i.e., concerned about motives behind CRM), and (d) Sociallyconcerned (i.e., driven by desire to help).

You just started your first marketing job, and your supervisor wants you to becomemore knowledgeable of the mature market because she sees this market as a growingopportunity. Name and describe the four segments of the mature market that havebeen identified through gerontographics.Page: 124-125 Difficulty: hardAnswer:Healthy Indulgers --This segment is physically and mentally healthy, has the most incommon with the baby boomers than any other segment, and will increasingly becomposed of baby boomers as they age. Both spouses are generally still alive, andthey have prepared for retirement both financially and psychologically. They arecontent and set to enjoy life and often sell their large family homes and move intosmaller dwellings. They like activities, convenience, personal service, and high-techhome appliances and are a strong part of the market for cruises and group travel.Ailing Outgoers--They have experienced health problems which limit their physicalabilities and frequently their financial capability. They are a key market for retirementcommunities and assisted-living housing. They acknowledge their limits, maintainpositive self-esteem, and seek to get the most out of life. Independence andsocializing are important as is remaining stylish in their dress. Limited funds andphysical ability are issues. Value pricing and discounts are viewed positively as areease and convenience.Healthy Hermits--These individuals retain their physical health, but life events (i.e.,death of a spouse) have reduced their self-concept and have caused them to becomewithdrawn. Many resent the isolation and the feeling that they are expected to act likeold people, and they do not want to stand out. They prefer clothing styles that arepopular with other seniors and will pay a premium for well-known brands. They tendto stay in the homes in which they raised their families and are an important part of thedo-it-yourself market.

Frail Recluses--They have accepted their old-age status and have adjusted theirlifestyles to reflect reduced physical capabilities and social roles. They focus onbecoming spiritually stronger and tend to stay at home. They are a major market forhealth care products, home exercise and health testing equipment, and emergencyresponse systems. Locational convenience is a critical factor for this group.

A German electronics manufacturer is expanding into the United States. Thiscompany has commissioned your company, a marketing research firm, to explain thevarious subcultures in this country. Explain the concept of subcultures, and brieflydescribe the three main subcultures discussed in this chapter.Page: 158 -187 Difficulty: moderateAnswer:A subculture is a segment of a larger culture whose members share distinguishingvalues and patterns of behavior. The unique values and patterns of behavior shared bysubculture group members are based on the social history of the group as well as on itscurrent situation. Ethnic groups are the most commonly described subcultures, butreligious and geographic regions are also the bases for strong subcultures in the UnitedStates. An ethnic subculture is one whose members' unique shared behaviors arebased on a common racial, language, or national background. The major ethnicsubcultures in the United States include African Americans, Hispanics, AsianAmericans, Native Americans, Asian-Indian Americans, and Arab Americans. Thedifferent religions in America prescribing differing values and behaviors constitute

several religious subcultures. The primary religious subcultures in the United Statesinclude Christian subcultures (i.e., Roman Catholics, Protestants, and Born-AgainChristians) and non-Christian subcultures (i.e., Jewish, Muslim, and Buddhist).Finally, distinct regional subcultures arise as a result of climatic conditions, thenatural environment and resources, the characteristics of the various immigrant groupsthat have settled in each region, and significant social and political events. The fourU.S. census regions are Northeast, North Central, South, and West.

Target, the national retailer, is opening several new stores in predominantly Hispaniccommunities. Explain how Target should modify its business to adequately serve theneeds of this market.Page: 171-174 Difficulty: moderateAnswer:The primary retailing responses to this market have been increasing the number ofbilingual salespeople; the use of Spanish language signs, directions, and point-ofpurchasedisplays; and merchandise assortments that reflect the needs of the localHispanic community. Additionally, though, since Target also will be communicatingwith these consumers through advertising, for example, store managers need to beaware that Hispanics often speak Spanish and often prefer Spanish-language media.Serious attempts to target Hispanics will often involve Spanish-language media aswell as mass media. There are several Spanish-language TV networks in the UnitedStates as well as widespread Spanish language radio, magazines, and newspapers.Successfully communicating to Hispanic consumers involves more than directlytranslating ad copy from English to Spanish.

Monica is a new mother and reads several magazines and books to better understandhow her son will develop. One book she used explained Piaget's stages of cognitivedevelopment. Based on these stages, explain what Monica can expect as her childgrows up.Page: 216 Difficulty: moderateAnswer:Piaget's stages of cognitive development are:Stage 1: The period of sensorimotor intelligence (0 to 2 years). During this period,Monica can expect her child's behavior to be primarily motor. The child does not yet“think” conceptually, though cognitive development is seen.Stage 2: The period of preoperational thoughts (3 to 7 years). Monica will noticeher child developing language and rapid conceptual development.Stage 3: The period of concrete operations (8 to 11 years). During these years, thechild develops the ability to apply logical thought to concrete problems.Stage 4: The period of formal operations (12 to 15 years). During this period,Monica will see her child reach his greatest level of development, and he becomesable to apply logic to all classes of problems.

You are a marketing manager and want to use the power of reference groups toinfluence consumers. Reference group influence can take three forms. Name anddescribe each, and explain how you could use each type of influence in anadvertisement.Page: 235-236 Difficulty: moderateAnswer:Reference group influence can take three forms: informational, normative, and

identification.Informational influence occurs when an individual uses the behaviors and opinionsof reference group members as potentially useful bits of information. This influence isbased on either the similarity of the group's members to the individual or the expertiseof the influencing group member. An ad that depicts typical members of a group or anexpert explaining the benefits of a brand could provide relevant information toconsumers.

Normative influence, sometimes referred to as utilitarian influence, occurs when anindividual fulfills group expectations to gain a direct reward or to avoid a sanction.This type of influence is strongest when individuals have strong ties to the group andthe product involved is socially conspicuous. Ads that promise social acceptance orapproval if a product is used (or nonacceptance or disapproval if it not used) arerelying on normative influence.Identification influence, also called value-expressive influence, occurs whenindividuals have internalized the group's values and norms. Advertisers need tounderstand the values of their target audience so as to mirror those back in theiradvertisements.

Apple recently came out with the video iPod, which allows users to download videocontent from the Internet. Very soon after the introduction of this innovation,television shows were made available for consumers to purchase or to obtain for free.This has brought about a rather radical change in the way viewers consume television,and some have predicted that this will create significant changes in the currentbusiness model for television networks and program producers. Discuss five of themany factors discussed in the chapter that will influence the spread of this innovation

Answer:The rate at which an innovation is diffused is a function of the following 10 factors,and students can discuss any five of them:a. Type of group--some groups are more accepting of change than others. Ingeneral, young, affluent, and highly educated groups accept change readily.b. Type of decision--this refers to an individual versus a group decision. The fewerthe individuals involved in the purchase decision, the more rapidly an innovationwill spread.c. Marketing effort--rate of diffusion is influenced by the extent of marketingefforts involved, so the rate of diffusion is not completely beyond the control ofthe firm.d. Fulfillment of felt need--the more manifest or obvious the need that theinnovation satisfies, the faster the diffusion.e. Compatibility--the more the purchase and use of the innovation are consistentwith the individual's and group's values or beliefs, the more rapid the diffusion.f. Relative advantage--the better the innovation is perceived to meet the relevantneed compared to existing methods, the more rapid the diffusion.g. Complexity--the more difficult the innovation is to understand and use, the slowerthe diffusion.h. Observability--the more easily consumers can observe the positive effects ofadopting the innovation, the more rapid its diffusion will be.i. Trialability--the easier it is to have a low-cost or low-risk trial of the innovation,the more rapid is its diffusion.

j. Perceived risk--the more risk associated with trying an innovation, the slower thediffusion.

Your family owns an upscale jewelry store. Because you are a marketing major, yourfather asked you to develop an advertisement for the store. You know that it isimportant for consumers to pay attention to your ad or else the money you've spent onmedia exposure is wasted. Define attention, discuss how five of the several stimulusfactors influence attention to a stimulus, and explain how you can use each in youradvertisement.Page: 288-294 Difficulty: moderateAnswer:Attention occurs when the stimulus activates one or more sensory receptor nerves,and the resulting sensations go to the brain for processing. Attention requiresconsumers to allocate limited mental resources toward the processing of incomingstimuli. Several stimulus factors influence attention (students only have to discussfive of them):Size--larger stimuli are more likely to be noticed. For example, taking out a large adin a local newspaper is more likely to be noticed than a smaller ad.Intensity (e.g., loudness, brightness, length) --can increase attention. For this type ofretail store, sparkling jewelry might attract viewers' attention.Attractive Visuals--individuals tend to be attracted to pleasant stimuli and repelled byunpleasant stimuli. Use of attractive people in an ad, especially for this productcategory, can attract viewers' attention.Color and Movement--both serve to attract attention, with brightly colored andmoving items being more noticeable. A color advertisement, especially in anewspaper ad, is likely to catch attention. Of course, movement is possible withtelevision advertising.Position--refers to the placement of an object in physical space or time. In printcontexts, ads on the right-hand page receive more attention, and high-impact zonestend to be more toward the top and left of a printed ad. Vertical banner ads attractmore attention than do horizontal ones. Finally, in television, first appearingcommercials tend to be attended to more so than ones appearing later in a commercialpod.Isolation--separating a stimulus object from other objects tends to enhance attention tothe stimulus. In advertising, the use of “white space” is based on this principle.Format--refers to the manner in which the message is presented, and simple,straightforward presentations receive more attention than complex presentations.Elements in an advertisement that increase the effort required to process the messagetend to decrease attention.Contrast and Expectations--consumers pay more attention to stimuli that contrastwith their background than to stimuli that blend with it. Expectations drive ourperceptions of contrast.Interestingness--factors that increase curiosity can increase interest and the attentionpaid to the stimulus.

Information Quantity--represents the number of cues in the stimulus field.Information overload occurs when consumers are confronted with so muchinformation that they cannot or will not attend to all of it.

Bryan is the brand manager for a brand of paper towels and knows that consumers'involvement with this product is low. Name and briefly describe learning theories thatare appropriate for this situation, and provide an example of how Bryan can use eachto influence consumers to purchase his brand.Page: 330-335 Difficulty: hardAnswer:Classical conditioning and iconic rote learning tend to occur in low-involvementsituations. Vicarious learning/modeling is also common in this situation, although it isalso common in high-involvement situations.Classical conditioning is the process of using an established relationship between onestimulus (e.g., music, beautiful outdoor scene) and response (e.g., pleasant feelings) tobring about the learning of the same response (e.g., pleasant feelings) to a differentstimulus (e.g., the brand). Bryan could pair a pleasant stimulus in advertising, such asa sparkling clean kitchen, with the brand of paper towel, which could increase thelikelihood that consumers will like the brand.Iconic Rote Learning involves learning a concept or the association between two ormore concepts in the absence of conditioning. That is, there is neither anunconditioned stimulus (i.e., classical conditioning) nor a direct reward orreinforcement (operant conditioning) involved. Numerous repetitions of a simplemessage that occur as the consumer scans the environment may result in the essenceof the message being learned. Thus, Bryan could use mere repetition of ads to enableconsumers to learn about the characteristics or attributes of the brand.In Vicarious Learning/Modeling, it is not necessary for consumers to directlyexperience a reward or punishment to learn. Instead, they can observe the outcomesof others' behaviors and adjust their own accordingly. A substantial amount oflearning occurs in low-involvement situations. Throughout the course of their lives,people observe others using products and behaving in a great variety of situations, anddo not pay much attention most of the time. However, over time they learn thatcertain behavior, and products, are appropriate in some situations and others are not.Bryan needs ensure that uses of his brand are portrayed in advertisements.

Motivation Research, Inc. is a consumer research firm that specializes in motivationresearch techniques. Name and describe the three broad categories of motivationresearch techniques that this company most likely uses, and discuss an example of aspecific technique used in each.Page: 374 Difficulty: moderateAnswer:Motivation research techniques are described in Table 10-2 and can be broken downinto three broad categories: association techniques, completion techniques, andconstruction techniques.Association techniques include word association, successive word association, andanalysis and use.Completion techniques include sentence completion, story completion, and analysisand use.Construction techniques include cartoon techniques, third-person techniques, pictureresponse, and analysis and use.

Tish owns a home decor store and has asked your assistance in helping her understandshoppers' motives. You know that research has uncovered six hedonic shoppingmotives related to McGuire's typology. Explain these to Tish, and discuss how shecan use them to enhance her business.Page: 376 Difficulty: moderateAnswer:The six hedonic shopping motives related to McGuire's typology are:a. Adventure shopping--refers to shopping for fun and adventure and relates to theneed for stimulation. Tish could feature a unique assortment of merchandise thatis not found in chain stores.b. Social shopping--refers to the enjoyment that comes from socializing and bondingwhile shopping and relates to the need for affiliation. Tish could hold a sale orevent where someone accompanied by a friend or family member receives adiscount or special gift.c. Gratification shopping--relates to shopping to reduce stress or as a self-rewardand relates to the tension reduction need. Tish can make the environment in herstore relaxing with soothing music, pleasant fragrances, etc.d. Idea shopping--involves shopping to keep up with trends and fashions and relatesto categorization and objectification needs. Tish could hold decorating workshopsor feature invited speakers from decorating magazines to her store.e. Role shopping--relates to the enjoyment that consumers feel from shopping forothers and relates to the identification motivation. Tish can offer gift ideas for thatspecial someone.f. Value shopping--involves shopping for deals and relates to assertion needs. Tishcan inform her customers that she can obtain lower prices on furniture thanconsumers would normally pay at retail.

A local Kia automobile dealership owner conducted some informal market researchand found that many consumers had negative attitudes toward this brand. Explainwhat can be done to change the cognitive component of consumers' attitudes.Page: 405-406 Difficulty: moderateAnswer:Four basic marketing strategies are used for altering the cognitive structure of aconsumer' s attitude:a. Change Beliefs--involves shifting beliefs about the performance of the brand onone or more attributes. Attempts to change beliefs generally involve providingfacts or statements about performance.b. Shift Importance--most consumers consider some product attributes to be moreimportant than others. Marketers often try to convince consumers that thoseattributes on which their brands are relatively strong are the most important.c. Add Beliefs--add new beliefs to the consumer's belief structure.d. Change Ideal--change perceptions of the ideal brand or situation.

Harrison is very involved with any type of electronic product, such as televisions,sound systems, cellular phones, and computers. According to the elaborationlikelihood model (ELM), explain how marketers of these types of products cansucceed in influencing Harrison.Page: 409-410 Difficulty: moderateAnswer:The ELM suggests that involvement is a key determinant of how information is

processed and attitudes changes. High involvement, which describes Harrison, resultsin a central route to attitude change by which consumers deliberately and consciouslyprocess those message elements that they believe are relevant to a meaningful andlogical evaluation of the brand. These elements are elaborated on and combined intoan overall evaluation. As a result, the ELM suggests that vastly differentcommunications strategies are required to communicate effectively with high- versuslow-involvement consumers. In general, detailed factual information (central cues) iseffective in high-involvement, central route situations (i.e., Harrison).

You are a marketing manager and want to measure the lifestyles of the various marketsegments served by your company. Discuss typical variables you should include inyour studies.Page: 442 Difficulty: moderateAnswer:Psychographic or lifestyle studies typically include the following:a. Attitudes--evaluative statements about other people, places, ideas, products, andso forth.b. Values--widely held beliefs about what is acceptable or desirable.c. Activities and interests--nonoccupational behaviors to which consumers devotetime and effort, such as hobbies, sports, public service, and church.d. Demographics--age, education, income, occupation, family structure, ethnicbackground, gender, and geographic location.e. Media patterns--the specific media the consumers utilize.f. Usage rates--measurements of consumption within a specified product category;often consumers are categorized as heavy, medium, light, or nonusers.

You've just started working at a company, and your supervisor wants to use thePRIZM lifestyle segmentation scheme but is a bit confused because there are so manysegments (i.e., 66 individual segments). While it does seem like a lot to understand,you are also aware that these segments are organized into broader social and lifestagegroups. Explain these broader groups.Page: 451 Difficulty: moderateAnswer:The broadest social groupings are based on “urbanicity,” which is determined bypopulation density, relates to where people live and is strongly related to the lifestylespeople lead. The four major social groups are:a. Urban--major cities with high population density.b. Suburban--moderately dense “suburban” areas surrounding metropolitan areas.c. Second City--smaller, less densely populated cities or satellites to major cities.d. Town & Country--low-density towns and rural communities.The broadest lifestage groups are based on age and the presence of children. The threemajor lifestage groups are:a. Younger Years--singles and couples under 45 years of age with no children.b. Family Life--middle aged (25-54) families with children.c. Mature Years--singles and couples over 45 years of age.

Pablo is planning on opening a Mexican restaurant in the town where he lives. He isconsidering how to design the physical environment of the restaurant. Discuss thecomponents of the physical surroundings that can influence consumption behavior andmake some recommendations to Pablo regarding each component.Page: 490-491 Difficulty: moderateAnswer:Four components of the physical environment were discussed in the text:a. Colors--certain colors and color characteristics create feelings of excitement andarousal which are related to attention. Bright colors are more arousing than dullcolors, and warm colors such as reds and yellows are more arousing that coolcolors such as blues and greys. The best colors to use depends on the type of storeor, in this case, restaurant. Cool colors tend to increase sales and customersatisfaction and appear to reduce wait time perceptions by inducing feelings ofrelaxation. Warm colors grab attention and can drive impulse purchases (e.g.,ordering dessert in a restaurant).b. Aromas--while there is increasing evidence that odors can affect consumershopping, it seems reasonable that they also affect consumption behavior in aservice environment such as a restaurant.c. Music--music influences consumers' moods, which influence a variety ofconsumption behaviors. One study found that slow tempo music resulted in anincreased gross margin, but that was true because of a greater amount of barpurchases. If Pablo does not have a bar, he might want to consider faster tempomusic so he can have a quicker customer turnover.d. Crowding--generally produces negative outcomes for both the retail outlet and theconsumer. While crowding may have a negative influence on Pablo's non-Hispanic customers, this may not be a significant factor for Pablo's Hispanicconsumers.

Tim is looking for a give for his relatively new girlfriend that he likes a lot but is notsure if she's “the one.” He's facing somewhat of a dilemma with this gift because hedoesn't want to send the wrong message to her, but he doesn't want to appear cheap,either. Moreover, he's not sure how she really feels about him. Explain the types ofsymbolic meaning the gift he selects might hold.Page: 494 Difficulty: moderateAnswer:Gifts communicate symbolic meaning on several levels. The gift item itself generallyhas a known, or knowable, price that can be interpreted as a measure of the esteem thegiver has for the receiver. The image and functionality of the gift implies the giver'simpression of the image and personality of the receiver. It also reflects on the imageand thoughtfulness of the giver. Finally, the nature of a gift can signify the type ofrelationship the giver has or desires with the receiver, or it can alter the relationshipbetween the giver and receiver.

Joan currently drives a Toyota automobile, and it's been a very reliable car. However,she desires to own a BMW, but her finances cannot support such a purchase as she hasto pay her mortgage, utilities, and her son's college tuition. Explain the two factorsthat affect one's desire to resolve a particular problem, and specify which one mostlikely is influencing Joan's inaction to resolve this discrepancy between her actualstate and her desired state.Page: 516-517 Difficulty: moderate

Answer:The level of one's desire to resolve a particular problem depends on two factors: (a)the magnitude of the discrepancy between the desired and actual states, and (b) therelative importance of the problem. Joan has an automobile that works just fine, so themagnitude of the discrepancy is not large enough to spur her to action. However, ifher car was damaged in an accident, then the magnitude of the discrepancy wouldbecome much larger. To Joan, she has other, more important financial commitmentsthat preclude her from solving this problem. Compared to her other more importantproblems, this one is perceived as relatively unimportant

Alex is a brand manager tasked with discovering consumer problems related to theseveral products and brands his company manufactures. Name and describe three ofthe several approaches discussed in the chapter that he could use to identify consumerproblems.Page: 520-521 Difficulty: moderateAnswer:There were five approaches discussed in the chapter, and students can discuss anythree:a. Activity Analysis--focuses on a particular activity and attempts to determine whatproblems consumers encounter during the performance of the activity.b. Product Analysis--similar to activity analysis but examines the purchase or use ofa particular product or brand.c. Problem Analysis--starts with a problem and asks respondents to indicate whichactivities, products, or brands are associated with (or perhaps could eliminate)those problems.d. Human Factors Research--attempts to determine human capabilities in areassuch as vision, strength, response time, flexibility, and fatigue and the effect onthese capabilities of lighting, temperature, and sound.e. Emotion Research--examines the emotions associated with certain problems.

Grant is the marketing manager for a consumer package goods manufacturer. Herealizes that consumers use nominal decision making when purchasing his products.Explain how the marketing strategies and tactics he should use would differ if hiscompany's brand is in the consumers' evoked set compared to when it is not.Page: 551-553 Difficulty: hardAnswer:The two marketing strategies appropriate for consumers using nominal decisionmaking are maintenance strategy and disrupt strategy. Maintenance strategy isappropriate if the brand is purchases habitually by the target market, and themarketer's strategy is to maintain that behavior (i.e., brand is in evoked set). Thisrequires consistent attention to product quality, distribution (avoiding out-of-stocksituations), and a reinforcement advertising strategy. In addition, the marketer mustdefend against the disruptive tactics of competitors. If the brand is not part of theevoked set and the target market engages in nominal decision making, the marketer'sfirst task is to disrupt the existing decision patterns. This is a difficult task since theconsumer does not seek external information or even consider alternative brandsbefore a purchase. Low-involvement learning over time could generate a positiveproduct position for the marketer's brand, but this alone would be unlikely to shiftbehavior. In the long run, a major product improvement accompanied by attentionattractingadvertising could shift the target market into a more extensive form of

decision making. In the short run, attention-attracting advertising aimed specifically atbreaking habitual decision making can be successful. Sales promotions, strikingpackage designs, and point-of-purchase displays may disrupt a habitual purchasesequence. Comparative advertising is also often used for this purpose.

Amelia is a marketing researcher and conducts studies to determine which evaluativecriteria consumers use in a given purchase situation, their judgments of brandperformance on specific criteria, and the relative importance they place on evaluativecriteria. Explain how Amelia does this.Page: 575-576 Difficulty: hardAnswer:Determination of Which Evaluative Criteria Are Used. To determine whichcriteria are used by consumers in a specific product decision, the marketing researchercan utilize either direct or indirect methods of measurement. Direct methods includeasking consumers what criteria they use in a particular purchase or, in a focus groupsetting, noting what consumers say about products and their attributes. Directmeasurement techniques assume that consumers can and will provide data on thedesired attributes. Indirect measurement techniques differ from direct in that theyassume consumers will not or cannot state their evaluative criteria. Hence, frequentuse is made of indirect methods such as projective techniques, which allow therespondent to indicate the criteria someone else might use. Perceptual mapping isanother useful indirect technique for determining evaluative criteria.Determination of Consumers' Judgments of Brand Performance on SpecificEvaluative Criteria. A variety of methods are available for measuring consumers'judgments of brand performance on specific attributes. These include rank orderingscales, semantic differential scales (most widely used), and Likert scales.Determination of the Relative Importance of Evaluative Criteria. The importanceassigned to evaluative criteria can be measured either by direct or by indirect methods.No matter which technique is used, the usage situation should be specified as attributeimportance varies with the situation. The constant sum scale is the most commonmethod of direct measurement, and the most popular indirect measurement approachis conjoint analysis.

Think of a major purchase decision you (or your family) have made. Identify from thedecision rules discussed in the text the specific rule you used (or combination ofrules), define that rule, and describe how you used that rule to select the alternativethat you purchased. If you cannot think of a recent major purchase in your life,explain the decision rule you would use to make a major purchase decision (e.g.,purchasing a car, computer, home, etc.).Page: 580-587 Difficulty: hardAnswer:Consumers commonly use five decision rules, and students should use one (or acombination) of these to answer this question (students' applications will vary):a. Conjunctive--establishes minimum required performance standards for eachevaluative criterion and selects the first or all brands that meet or exceed theseminimum standards. Any brand falling below any of these minimum standards(cutoff points) would be eliminated from further consideration.b. Disjunctive--establishes a minimum level of performance for each importantattribute (often a fairly high level). All brands that meet or exceed theperformance level for any key attribute are considered acceptable.

c. Elimination-by-Aspects--requires the consumer to rank the evaluative criteria interms of their importance and to establish a cutoff point for each criterion. Allbrands are first considered on the most important criterion. Those that do not meetor exceed the cutoff point are dropped from consideration. If more than one brandremains in the set after this first elimination phase, the process is repeated on thosebrands for the second most important criterion. This continues until only onebrand remains.d. Lexicographic--requires the consumer to rank the criteria in order of importance.The consumer then selects the brand that performs best on the most importantattribute. If two or more brands tie on this attribute, they are evaluated on thesecond most important attribute. This continues through the attributes until onebrand outperforms the others.e. Compensatory--the brand that rates highest on the sum of the consumer'sjudgments of the relevant evaluative criteria will be chosen, which is the same asthe multiattribute attitude model discussed in Chapter 11.

Stacy owns a retail store specializing in home decor products. She is consideringusing price advertising but is not sure what all she needs to consider before doing so.She knows you are a marketing major and has asked your advice. Discuss threedecisions she needs to consider when using price advertising.Page: 612-613 Difficulty: hardAnswer:Retailers face three decisions when they consider using price advertising:a. How large a price discount should be used?b. Should comparison or reference prices be used? Showing a comparison priceincreases the perceived savings significantly. However, the strength of theperception varies with the manner in which the comparison or reference price ispresented. Most consumers understand external reference prices (i.e., thosepresented by the marketer) and are influenced by them but do not completelybelieve them because of the perception that retailers inflate reference prices.c. What verbal statements should accompany the price information? The bestapproach for retailers seems to be to present the sale price and either the dollaramount saved if it is large, the percentage saved when it is large, or both if both arelarge. The regular price could be shown in any of these conditions. Such words orphrases as “now only,” “compare at,” or “special” appear to enhance the perceivedvalue of a sale. However, this varies by situation, initial price level and discountsize, consumer group, and retail outlet.

Jacqueline went to Walgreens to purchase some cold medicine, but the brand shewanted was not on the shelf. There was an empty space on the shelf where it shouldhave been. Explain the variable that most likely will influence Jacqueline's branddecision right now and the impact of this situation.Page: 623-624 Difficulty: moderateAnswer:This is an example of a stockout, which means the store being temporarily out of aparticular brand. Jacqueline must now decide whether to buy the same brand but atanother store, switch brands, delay the purchase and buy the desired brand later at thesame store, or forgo the purchase altogether. In addition, her verbal behavior andattitude may change. With respect to verbal behavior, she may make negativecomments to peers about the original store and/or positive comments to peers aboutthe substitute store and/or brand or product. With respect to attitude, she may developa less favorable attitude toward Walgreens and/or a more favorable attitude toward thesubstitute store and/or brand or product. Three types of perceived costs affect thelikely response of a consumer to a stockout. Substitution costs refer to the reduction insatisfaction a consumer believes a replacement size, brand, or product will provide.This is a function of the consumer's commitment or loyalty to the preferred brand andthe perceived similarity of potential substitutes. Transaction costs refer to the mental,physical, time, and financial costs of purchasing a substitute product or brand.Opportunity costs are the reduction in satisfaction associated with forgoing orreducing consumption of the product. How these costs will be perceived and thuswhich of the outcomes will occur depends on the particular consumer, product, andsituation.

Bob and Stephanie purchased a new high definition television, and they spend over$3,000. After they got it home, Stephanie started feeling anxious about this purchaseand wondered if they should have shopped a little more and become more informedabout these types of TVs and looked at a few more alternatives than just the ones theydid before purchasing this one. Stephanie is experiencing postpurchase dissonance.Explain what she can do to reduce it.Page: 639-640 Difficulty: moderateAnswer:After the purchase is made, the consumer may utilize one or more of the followingapproaches to reduce dissonance:a. Increase the desirability of the brand purchased.b. Decrease the desirability of rejected alternatives.c. Decrease the importance of the decision.d. Reverse the purchase decision (return the product before use).