Principles of Marketing 16th Edition Kotler Solutions Manual 1

Solution Manual for Principles of Marketing
16th Edition Kotler Armstrong 0133795020

9780133795028
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Chapter 5
CONSUMER MARKETS AND
CONSUMER BUYER BEHAVIOR
MARKETING STARTER: CHAPTER 5
GoPro: Be a HERO!
Synopsis
You likely have heard of GoPro, the small but fast-growing company that makes tiny, wearable HD video
cameras. Few brands can match the avid enthusiasm and intense loyalty that GoPro has created in the
hearts and minds of its customers. A growing army of GoPro customers—many of them extreme sports
enthusiasts—are now strapping amazing little GoPro cameras to their bodies, or mounting them on
anything from the front bumpers of race cars to the heels of skydiving boots, in order to capture the
extreme moments of their lives and lifestyles. Then, they can’t wait to share those emotion-packed GoPro
moments with friends. GoPro’s rich understanding of what makes its customers tick is serving the young
company well. Its enthusiastic customers are among the most loyal and engaged of any brand. For example,
GoPro’s Facebook fan base is more than 6.6 million and growing fast. All that customer engagement and
enthusiasm has made GoPro the fastest-growing camera company in the world. GoPro knows that deep
down, it offers customers much more than just durable little video cameras. More than that, it gives them a
way to share action-charged moments and emotions with friends.
Discussion Objective
A focused 10-minute discussion of the GoPro story will help students appreciate the many levels of factors
that affect how customers feel about, buy, and consume products. The goal is to explore the reasons why
customers buy GoPro cameras, and what the product adds to their lives. Beyond making a durable little video
camera, GoPro has fostered an almost fanatically loyal fan base by challenging customers to shoot the most
extreme footage possible and then share it with friends across social media channels. It is likely that some of
your students will know about GoPro cameras and a few may have their own stories to share with the class.
You will want to capitalize on these students’ testimonials as you explore the GoPro brand together.
Copyright© 2016 Pearson Education

Starting the Discussion
Start this discussion by asking students what GoPro is really selling its customers. Of course, the company
makes micro-sized video cameras that can survive almost anything. But what are the unique customer insights
that have fueled GoPro’s explosive growth? What does GoPro understand about its customers better than the
competition? Tour the GoPro website at www.gopro.com. Peruse the tabs across the top, concentrating on
the extreme videos and photos submitted by its loyal fans. How does the company encourage its customers
to “be a hero?” The goal is to show that GoPro’s allure results from much more than just the functional
attributes of its product—it’s all about the customers and how the cameras help them capture their most
exciting life experiences. As the discussion progresses, search for GoPro on www.youtube.com and check
out some of the more extreme applications that fans have discovered for this device. Use the questions below
to guide the discussion.
Discussion Questions
1. Beyond a small, durable video camera, what is GoPro really selling its customers? How does this
product enable users to highlight the best moments of their lives? (To start with, the camera is
extremely tough and versatile. It can capture high-quality video under almost any conditions. But
ultimately, the GoPro camera enables its fans to experience and document the adventures that touch
and thrill them. In turn, users deeply care about sharing these moments with friends and fellow
enthusiasts through social media channels, which has only intensified their passion for the GoPro
brand.)
2. GoPro’s company slogan is “Be a Hero.” How does GoPro encourage customers to do so?
(Customers become heroes through four essential steps in their storytelling and emotion-sharing
journeys: capture, creation, broadcast, and recognition. Capture is what the cameras do—shooting
pictures and videos. Creation is the editing and production process that turns raw footage into
compelling videos. Broadcast involves distributing the video content to an audience. Recognition is
the payoff for the content creator. Recognition might come in the form of YouTube views or LIKES
and SHARES on Facebook. More probably, it’s the enthusiastic oohs and ahs that their videos evoke
from friends and family. The company’s slogan sums up pretty well the consumer’s deeper
motivations: GoPro—Be a Hero.)
3. One industry expert has noted, “Some of the most amazing companies of the coming few years will
be businesses that understand how to wrap technology beautifully around human needs so that it
matters to people.” How does this quote apply to GoPro? (This brand is all about what its cameras
let customers do. GoPro users don’t just want to take videos. More than that, they want to tell the
stories and share the adrenalin-pumped emotions of the extreme moments in their lifestyles. As
GoPro notes, “Enabling you to share your life through incredible photos and video is what we do.
We help people capture and share their lives’ most meaningful experiences with others—to celebrate
them together.”)
4. How does the chapter-opening GoPro story relate to the major concepts in the consumer behavior
chapter? (The GoPro story highlights the depth of factors that affect how consumers think, feel, and
act toward brands. GoPro really understands what makes consumers tick and, as a result, delivers
an exceptional brand experience to loyal consumers. Keep the GoPro example active as you discuss
characteristics affecting consumer behavior, types of buying decision behavior, the buyer decision
process, and other chapter topics.)
CHAPTER OVERVIEW
Use Power Point Slide 5-1 Here
In this chapter, we continue our marketing journey with a closer look at the most important
element of the marketplace—customers.
The goal of marketing is to affect how customers think about and behave toward the
organization and its market offerings. But to affect the whats, whens, and hows of buying
behavior, marketers must first understand the whys.
We look first at final consumer buying influences and processes and then at the buying
behavior of business customers.
CHAPTER OBJECTIVES
Use Power Point Slide 5-2, 5-3, and 5-4 Here
1. Define the consumer market and construct a simple model of consumer buyer behavior.
2. Name the four major factors that influence consumer buyer behavior.
3. List and define the major types of buying decision behavior and stages in the buyer
decision process.
4. Describe the adoption and diffusion process for new products.
CHAPTER OUTLINE
p. 140 p. 141
INTRODUCTION Photo: GoPro
You likely have heard of GoPro, the small but fast-growing
company that makes tiny, wearable HD video cameras.
Few brands can match the avid enthusiasm and intense
loyalty that GoPro has created in the hearts and minds of its
customers, many of whom are extreme sports hobbyists.
Its customers are among the most loyal and engaged of any
brand. Intense customer engagement and excitement has
made GoPro the fastest-growing camera company in the
world.
GoPro knows that deep down, it offers customers much more
than just durable little video cameras. It gives them a way to
share action-charged moments and emotions with friends.
➢ Opening Vignette Questions

1. How does GoPro successfully differentiate itself
from its competitors in today’s crowded
electronics marketplace?
2. What does GoPro mean when they encourage their
customers to “be a hero”?
3. How has GoPro successfully used social media
channels to promote its products?

p. 142 Define the consumer market and construct a simple model Learning Objective
PPT 5-5 of consumer buyer behavior. 1
Consumer buyer behavior refers to the buying behavior of p. 142

PPT 5-6 final consumers—individuals and households who buy goods Key Terms:
and services for personal consumption. Consumer Buyer
Behavior,
All of these consumers combine to make up the consumer Consumer Market
market.
The American consumer market consists of more than 316

million people.
➢ Assignments, Resources
Use Critical Thinking Exercise 5-6 here
Use Small Group Assignment 1 here
p. 143 Model of Consumer Behavior p. 143

PPT 5-7 Figure 5.1: Model
The central question for marketers is: How do consumers of Buyer Behavior
respond to various marketing efforts the company might use?
The starting point is the stimulus-response model of buyer

behavior shown in Figure 5.1.
Marketing stimuli consist of the four Ps: product, price, place,

promotion.
Other stimuli include major forces and events in the buyer’s

environment: economic, technological, social, and cultural.
The marketer wants to understand how the stimuli are changed

into responses inside the consumer’s “black box,” which has
two parts.
1. The buyer’s characteristics influence how he or she

perceives and reacts to the stimuli.
2. The buyer’s decision process itself affects the buyer’s
behavior.
PPT 5-8 Review Learning Objective 1: Define the consumer market

and construct a simple model of consumer buyer behavior.
p. 143 Name the four major factors that influence consumer Learning Objective
PPT 5-9 2

buyer behavior. p. 143
PPT 5-10 Figure 5.2: Factors
Characteristics Affecting Consumer Behavior Influencing
Consumer Behavior
p. 144 Cultural Factors
PPT 5-11 p. 144
Culture is the most basic cause of a person’s wants and Key Term: Culture,
behavior. Subculture
Marketers are always trying to spot cultural shifts.

PPT 5-12
Subcultures are groups of people with shared value systems
based on common life experiences and situations. p. 144
Ad: Chrysler
The U.S. Hispanic market consists of more than 55 million
consumers.
p. 145
By 2013, the nation’s more than 42 million African-American
consumers will have a buying power of more than $1 trillion.
p. 145
Asian Americans are the most affluent U.S. demographic Ad: AT&T
segment.
p. 146
Many marketers now embrace cross-cultural marketing—the p. 146
practice of including ethnic themes and cross-cultural Key Terms: Cross-
perspectives within their mainstream marketing. Cultural Marketing,
Social Class
PPT 5-13 Social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests, and
behaviors.
Social class is not determined by a single factor, but is

measured as a combination of occupation, income, education,
wealth, and other variables. p.
Figure 5.3
Major American
PPT 5-14 Major American Social Classes: Social Classes
• Upper Class
• Middle Class
• Working Class
• Lower Class
Social classes show distinct product and brand preferences in

areas such as clothing, home furnishings, travel and leisure
activity, financial services, and automobiles.

Use Discussion Question 5-1 here
Use Additional Project 1 and 2 here
Use Think-Pair-Share 1 to 3 here
p. 147 Social Factors
PPT 5-15 p. 147
Groups and Social Networks. A person’s behavior is Key Term: Group
influenced by many small groups, including membership
groups, aspirational groups, and reference groups.
p. 147
PPT 5-16 Marketers use word-of-mouth influence and buzz marketing to Key Term: Word-
spread the word about their brands. of-Mouth Influence,
Opinion Leader
Opinion leaders are people within a reference group who,
because of special skills, knowledge, personality, or other p. 147
characteristics, exert social influence on others. Ad: Philips
This small percentage of Americans is referred to as the

influentials or leading adopters.
Online social networks are online communities where people p. 148

socialize or exchange information and opinions. Key Term: Online
Social Network
Family is the most important consumer buying organization
in society. p. 148
p. 148 Ad: Timberland
PPT 5-17 • Of men ages 18 to 64, 52 percent identify themselves
as primary grocery shoppers in their households, and p. 150
39 percent handle most of their household’s laundry. Photo: Go-Gurt
• Women account for 60 percent of all technology

purchases and influence two-thirds of all new car
purchases.
• The nation’s 36 million kids age 9 to 13 control an

estimated $43 billion in disposable income
Roles and Status. A role consists of the activities people are

expected to perform. Each role carries a status reflecting the
general esteem given to it by society.
Use Real Marketing 5.1 here
Use Additional Project 3 here
Use Think-Pair-Share 4 here

p. 151 Personal Factors p. 151
PPT 5-18 Photo: Nielsen’s
Age and Life-Cycle Stage. People change the goods and PRIZM
services they buy over their lifetimes.
Tastes in food, clothes, furniture, and recreation are often age-

related. Buying is also shaped by the stage of the family life
cycle.
Marketers often define their targets in terms of life-cycle stage

and develop appropriate products and marketing plans for
each stage.
Consumer information giant Nielsen’s PRIZM Lifestage

Groups system places U.S. households into one of 66
consumer segments and 11 life stage groups. For example:
The Young Achievers” group includes subsegments like
“Young Digerati,” “Bohemian Mix,” and “Young
Influentials.” This group consists of hip, single twenty-
somethings who rent apartments in or close to metropolitan
neighborhoods.
PPT 5-19 Occupation. A person’s occupation affects the goods and

services they purchase.
p. 152 Economic Situation. A person’s economic situation will

affect store and product choice. The situation includes trends
in spending, personal income, savings, and interest rates.
Lifestyle is a person’s pattern of living as expressed in his or

PPT 5-20 her psychographics. p. 152
Key Term: Lifestyle
This involves measuring major AIO dimensions such as
activities (work, hobbies, shopping, sports, social events), p.
interests (food, fashion, family, recreation), and opinions Ad: KitchenAid
(about themselves, social issues, business, products).
Personality and Self-Concept

p. 153
PPT 5-21 Personality refers to the unique psychological characteristics
that distinguish a person or group. p. 153
Key Term:
A brand personality is the specific mix of human traits that Personality
may be attributed to a particular brand. One researcher
PPT 5-22 identified five brand personality traits: p. 153
Ad: JetBlue
1. Sincerity (down-to-earth, honest, wholesome, and
cheerful)
2. Excitement (daring, spirited, imaginative, and up-to-
date)
3. Competence (reliable, intelligent, and successful)
4. Sophistication (upper class and charming)
5. Ruggedness (outdoorsy and tough)
The basic self-concept premise is that people’s possessions

contribute to and reflect their identities; that is, “we are what
we have.”
Psychological Factors
p. 153
PPT 5-23 Motivation p. 153
Key Term:
PPT 5-24 A motive (or drive) is a need that is sufficiently pressing to Motive (Drive)
direct the person to seek satisfaction.
Psychoanalyst Sigmund Freud suggested that a person’s
buying decisions are affected by subconscious motives that
even the buyer may not fully understand.
p. 155 Motivation research refers to qualitative research designed to

probe consumers’ hidden, subconscious motivations.
PPT 5-25 Abraham Maslow sought to explain why people are driven by
particular needs at particular times. He determined that human
needs are arranged in a hierarchal fashion. p. 155
p. 156 Figure 5.4:
PPT 5-26 Perception is the process by which people select, organize, Maslow’s Hierarchy
and interpret information to form a meaningful picture of the of Needs
world.
p. 156
PPT 5-27 Selective attention is the tendency for people to screen out Key Term:
most of the information to which they are exposed. Perception
Selective distortion describes the tendency of people to

interpret information in a way that will support what they
already believe.
p.
Selective retention is the retaining of information that supports Ad: American
their attitudes and beliefs. Association of
Advertising
Subliminal advertising refers to marketing messages received Agencies
without consumers knowing it. Studies have established no
link between subliminal messages and consumer behavior.
p. 157 Learning describes changes in an individual’s behavior
PPT 5-28 arising from experience.
A drive is a strong internal stimulus that calls for action. p. 157

Key Term: Learning
A drive becomes a motive when it is directed toward a
particular stimulus object.
Cues are minor stimuli that determine when, where, and how
the person responds.
Beliefs and Attitudes p. 157

p. 157 Key Terms:
A belief is a descriptive thought that a person has about Belief, Attitude
PPT 5-29 something.
Attitude describes a person’s relatively consistent p. 157

evaluations, feelings, and tendencies toward an object or idea. Ad: Vidalia Onion
Attitudes are difficult to change. Committee
Review Learning Objective 2: Name the four major factors

PPT 5-30 that influence consumer buyer behavior.
Use Real Marketing 5.2 here
Use Marketing Ethics here
Use Discussion Question 5-2 here
Use Video Case here
Use Outside Example 1 here
PPT 5-31 List and define the major types of buying decision Learning Objective
behavior and the stages in the buyer decision process. 3
p. 158 Types of Buying Decision Behavior

PPT 5-32
PPT 5-33 Figure 5.5 shows types of consumer buying behavior based on p. 158
the degree of buyer involvement and the degree of differences Figure 5.5: Four
among brands. Types of Buying
Behavior
p. 158 Complex Buying Behavior
Consumers undertake complex buying behavior when they

are highly involved in a purchase and perceive significant
differences among brands.
p. 158

Consumers may be highly involved when the product is Key Term:
expensive, risky, purchased infrequently, and highly self- Complex Buying
expressive. Behavior
Typically, the consumer has much to learn about the product

category.
Marketers of high-involvement products must understand the

information-gathering and evaluation behavior of high-
p. 158 involvement consumers.
Dissonance-Reducing Buying Behavior p. 158

Key Terms:
Dissonance-reducing buying behavior occurs when Dissonance-
consumers are highly involved with an expensive, infrequent, Reducing Buying
or risky purchase, but see little difference among brands. Behavior, Habitual
Buying Behavior
After the purchase, consumers might experience postpurchase
dissonance (after-sale discomfort) when they notice certain
disadvantages of the purchased brand or hear favorable things
about brands not purchased.
To counter such dissonance, the marketer’s after-sale

communications should provide evidence and support to help
consumers feel good about their brand choices.
p. 158
Habitual Buying Behavior
Habitual buying behavior occurs under conditions of low

consumer involvement and little significant brand difference. p. 159
Ad: Cheerios
Consumer behavior does not pass through the usual belief-
attitude-behavior sequence.
Consumers do not search extensively for information about

the brands, evaluate brand characteristics, and make weighty
decisions about which brands to buy.
They passively receive information as they watch television

or read magazines.
Because buyers are not highly committed to any brands,

marketers of low-involvement products with few brand
differences often use price and sales promotions to stimulate
buying.
p. 152
Variety-Seeking Buying Behavior
p. 159
Consumers undertake variety-seeking buying behavior in Key Term: Variety-
situations characterized by low consumer involvement but Seeking Buying
significant perceived brand differences. Behavior
In such cases, consumers often do a lot of brand switching.
Use Critical Thinking Exercise 5-5 and 5-7 here
Use Individual Assignment 1 here
➢ Troubleshooting Tip
By and large, students have not been exposed to the
consumer behavior concepts in this chapter before. If
they have taken a sociology or human behavior course,
chances are very high that the concepts were not
presented in a way that allowed the students to
understand them as they apply to business in general
and marketing in particular. After presenting the
concepts of consumer behavior, have the students
discuss the concepts in terms of their own buying
habits, their backgrounds, and how they differ from
others in the class.
The Buyer Decision Process
p. 159 The buyer decision process consists of five stages:

PPT 5-34 p. 159
1. Need recognition Figure 5.6: Buyer
2. Information search Decision Process
3. Evaluation of alternatives
4. Purchase decision
5. Postpurchase behavior
Need Recognition
The buyer recognizes a problem or need triggered by either p. 160

p. 160 an: Key Term: Need
PPT 5-35 • Internal stimuli, or Recognition
• External stimuli
p. 160
Information Search Ad: National
Geographic Kids
Information search may or may not occur.
p. 160
Consumers can obtain information from any of several p. 160
PPT 5-36 sources.
Key Term:
• Personal sources (family, friends, neighbors, Information Search
acquaintances)
• Commercial sources (advertising, salespeople, Web
sites dealers, packaging, displays)
• Public sources (mass media, consumer-rating
organizations, Internet searches)
• Experiential sources (handling, examining, using the
product)
Commercial sources inform the buyer.
Personal sources legitimize or evaluate products for the buyer.
Evaluation of Alternatives
p. 160 Alternative evaluation is how the consumer processes p. 160

PPT 5-37 information to arrive at brand choices. Key Term:
Alternative
How consumers go about evaluating purchase alternatives Evaluation
depends on the individual consumer and the specific buying
situation.
In some cases, consumers use careful calculations and logical

thinking.
At other times, the same consumers do little or no evaluating;

instead they buy on impulse and rely on intuition.
Purchase Decision
p. 161 Generally, the consumer’s purchase decision will be to buy p. 161

the most preferred brand. Key Term: Purchase
Decision
Two factors can come between the purchase intention and the
purchase decision.
PPT 5-38
1. Attitudes of others
2. Unexpected situational factors
Postpurchase Behavior
p. 161 The difference between the consumer’s expectations and the p. 161
perceived performance of the good purchased determines how Key Terms:
PPT 5-39 satisfied the consumer is. Postpurchase

If the product falls short of expectations, the consumer is Behavior, Cognitive
disappointed; if it meets expectations, the consumer is Dissonance
satisfied; if it exceeds expectations, the consumer is said to be
delighted.
p. 156
Cognitive dissonance, or discomfort caused by postpurchase Photo: Shopping
conflict, occurs in most major purchases.
PPT-5-40
Review Learning Objective 3: List and define the major
types of buying decision behavior and the stages in the buyer
PPT 5-41 decision process.
Use Online, Mobile, and Social Media Marketing here
Use Marketing by the Numbers here
Use Outside Example 2 here
PPT 5-42 Describe the adoption and diffusion process for new Learning Objective
products. 4
p. 162 The Buyer Decision Process for New Products p. 162

PPT 5-43 Key Terms: New
A new product is a good, service, or idea that is perceived by Product, Adoption
some potential customers as new. Process
The adoption process is the mental process through which an

individual passes from first learning about an innovation to
final adoption. Adoption is the decision by an individual to
become a regular user of the product.
p. 162 Stages in the Adoption Process
Consumers go through five stages in the process of adopting

a new product:
1. Awareness: The consumer becomes aware of the new p. 162

product, but lacks information about it. Ad: SodaStream
2. Interest: The consumer seeks information about the
new product.
3. Evaluation: The consumer considers whether trying
the new product makes sense.
4. Trial: The consumer tries the new product on a small
scale to improve his or her estimate of its value.
5. Adoption: The consumer decides to make full and
regular use of the new product.

Individual Differences in Innovativeness
p. 163 People differ greatly in their readiness to try new products.
People can be classified into the adopter categories shown in

Figure 5.7.
PPT 5-44 The five adopter groups have differing values.

p. 163
1. Innovators are venturesome—they try new ideas at Figure 5.7: Adopter
some risk. Categories Based on
2. Early adopters are guided by respect—they are Relative Time of
opinion leaders in their communities and adopt new Adoption of
ideas early but carefully. Innovations
3. The early mainstream are deliberate—while rarely
leaders, they adopt new ideas before average persons.
4. The late mainstream are skeptical—they adopt an
innovation only after a majority of people have tried
it.
p. 163 5. Lagging adopters are tradition bound—they are
PPT 5-45 suspicious of changes and adopt the innovation only
when it has become something of a tradition itself.
Influence of Product Characteristics on Rate of Adoption
Five characteristics are important in influencing an

p. 163-4 innovation’s rate of adoption.
PPT 5-46
1. Relative advantage: The degree to which the
innovation appears superior to existing products.
2. Compatibility: The degree to which the innovation fits
the values and experiences of potential consumers.
3. Complexity: The degree to which the innovation is
difficult to understand or use.
4. Divisibility: The degree to which the innovation may
be tried on a limited basis.
5. Communicability: The degree to which the results of
using the innovation can be observed or described to
others.
Review Learning Objective 4: Describe the adoption and

PPT 5-47 diffusion process for new products.
Use Discussion Question 5-3 and 5-4 here
Use Company Case here
Use Small Group Assignment 2 here
Use Individual Assignment 2 here
➢ Troubleshooting Tip
Explaining that consumer behavior is usually offered
as a course unto itself can actually relieve some of the
students’ anxiety. Also helpful is continually
reminding them of how they can apply this material to
more fully appreciating their own motivations for their
purchases. This can then lead them to recognize how a
marketer could approach understanding consumers’
motives in general.
END OF CHAPTER MATERIAL

 5-1 What is subculture? Describe at least two subcultures to which you belong and
identify any reference groups that might influence your consumption behavior.
(Objective 2) (AACSB: Written and Oral Communication; Diverse and multicultural
work environments; Reflective Thinking)
Answer: Refer to the Mylab for answers to this and all starred Mylab questions.
 5-2 Why are marketers interested in consumer lifestyles and what dimensions do they
use to measure lifestyle? Describe your lifestyle along those dimensions and identify
consumption-related activities based on your lifestyle. (Objective 2) (AACSB:
Written and Oral Communication; Reflective Thinking)
5-3 What is a “new product” and how do consumers go about deciding whether to adopt a
new product? (Objective 4) (AACSB: Written and Oral Communication)
Answer:
A new product is a good, service, or idea that is perceived by some potential

customers as new, even though it may have been around for a while. Marketers are
interested in how consumers learn about products for the first time and make a
decision on whether to adopt them. The adoption process is a mental process in
which an individual learns about an innovation to finally adopting it. The stages in
the adoption process are:
a. Awareness: The consumer becomes aware of the new product, but lacks
information about it.
b. Interest: The consumer seeks information about the new product.
c. Evaluation: The consumer considers whether trying the new product
makes sense.
d. Trial: The consumer tries the new product on a small scale to improve his
or her estimate of its value.
e. Adoption: The consumer decides to make full and regular use of the new
product.
 5-4 What characteristics of a new product affect its rate of adoption? How will each
factor influence the rate of adoption of electric automobiles? (Objective 4) (AACSB:
Written and Oral Communication; Reflective Thinking)
Critical Thinking Exercises
5-5 Researchers study the role of personality on consumer purchase behavior. One
research project—Beyond the Purchase—offers a range of surveys consumers can
take to learn more about their own personality, in general, and their consumer
personality, in particular. Register at http://www.beyondthepurchase.org/ and take the
“Spending Habits” surveys, along with any of the other surveys that interest you.
What do these surveys tell you about your general and consumer personality? Do you
agree with the findings? Why or why not? (Objective 2) (AACSB: Written and Oral
Communication; Information Technology; Diverse and multicultural work
environment; Reflective Thinking)
Answer:
Students’ answers will vary, as there are currently several “Spending Habits” surveys,
in addition to Personality and Values, and Happiness surveys. Material purchases
are evaluated, as are experiential purchases, and compared to other survey
respondents. Happiness is factored in, as well.
5-6 Malcolm Gladwell published a book entitled The Tipping Point. He describes the
Law of the Few, Stickiness, and the Law of Context. Research these concepts and
describe how understanding them helps marketers better understand and target
consumers. (Objective 2) (AACSB: Written and Oral Communication; Reflective
Thinking)
Answer:
One resource is http://brandgenetics.com/the-tipping-point-speed-summary/. From

this site: The Law of the Few relates to opinion leaders who adopt a product or idea
and spread the word. Gladwell identifies three key types of infectious opinion
leaders: mavens, connectors, and salesmen. Opinion leaders are also called influential
or leading adopters. They provide strong social influence on others. The Stickiness
Factor specifies that products that are “sticky” “can have a massive effect on
success.” Ten factors can make a product sticky. They include uniqueness, aesthetics,
association (positive), excellence, expressive value, functional value, nostalgic value,
personification, and cost. Developing products, or marketing products, with some of
these characteristics can significantly impact sales and success. The Power of Context
states that consumers will adopt a product if it fits the context, situation, or occasion
they find themselves in. They can be attracted at the point of purchase or through
effective personal selling. Factoring in various psychological principles of influence
can aid the marketing effort. These principles include scarcity, majority, authority,
beauty, reciprocity, and consistency.
5-7 In a small group, imagine that you work in an upscale international hotel that caters
to guests from around the world. Discuss what you would serve at a breakfast, lunch,
or dinner buffet. Research what consumers eat in at least one country from every
continent. The goal is to have a wide enough variety to satisfy all of the guests’ tastes
based on their cultures. Create a presentation with pictures of food that you would
include in your buffet. (Objective 2) (AACSB: Written and Oral Communication;
Information Technology; Diverse and multicultural work environment; Reflective
Thinking)
Answer:
Students’ answers will vary with the choice of countries. A source for information
includes Hungry Planet: What the World Eats (http://time.com/8515/hungry-planet-
what-the-world-eats/). Additional information can be found by searching terms such
as “food choices around the world.”
MINICASES AND APPLICATIONS
Online, Mobile, and Social Media Marketing: Digital Influencers
Jen Hsieh is a college student with a love for fashion who shares outfits and fashion sense
on Jennifhsieh, her fashion blog. Her social influence earned an invite to Kate Spade’s
New York fashion week presentation, after which she blogged, “I had to keep myself
from drooling” when describing the collection. Digital influencers like Jen are often paid
to write product reviews on their blogs and to post pictures of themselves on sites such as
Pinterest and Instagram wearing clothes given to them by the sponsor. Some are given
all-expense paid trips to events. For example, Olivia Lopez, a personal-style blogger with
a site called Lust for Life, was invited by Samsung to the South by Southwest and
Lollapalloza music festivals, and provided a phone with which to post pictures for her
90,000 Instagram followers. The hashtag, “#thenextbigthing,” which is used in
Samsung’s product promotions, was included in her posts. Otherwise, Olivia included no
indication that Samsung provided sponsorship.
5-8 Find an example of a blog on a topic that interests you. Are there advertisements on
the blog? Does the blogger appear to be sponsored by any companies? Is there
information regarding sponsorship? Write a brief report of your observations.
(Objective 3) (AACSB: Information Technology; Written and Oral Communication;
Reflective Thinking)
Answer:
Students’ answers will vary. Resources to find blogs include Blog Catalog
(www.blogcatalog.com), 10 Ways to Find Blogs You’ll Love
(mashable.com/2011/04/11/blog-discovery/) and Five Blog Search Engines
(http://websearch.about.com/od/internetresearch/a/newsblog.htm)
5-9 Summarize the FTC’s disclosure rules on using social media to promote products and
services. Does the blogger you reviewed in the previous question follow these rules?
Explain. (Objective 3) (AACSB: Written and Oral Communication; Reflective
Thinking)
Answer:
Students’ answers will vary based on the blog they reviewed previously.
From http://www.business.ftc.gov/documents/bus71-ftcs-revised-endorsement-
guideswhat-people-are-asking, the revised Guides—issued after public comment and
consumer research—reflect three basic truth-in-advertising principles:
• Endorsements must be truthful and not misleading;
• If the advertiser doesn’t have proof that the endorser’s experience represents what
consumers will achieve by using the product, the ad must clearly and
conspicuously disclose the generally expected results in the depicted
circumstances; and
• If there’s a connection between the endorser and the marketer of the product that
would affect how people evaluate the endorsement, it should be disclosed.
Marketing Ethics: Liquid Gold
Water is water, right? Not so! The maker of Beverly Hills 90H20 bills its “champagne of
waters” as “The World’s First Sommelier-Crafted Water.” Champagne producers in
France (the only region that can legally use the “champagne” label) were not pleased,
especially since the water is sourced in California’s Sierra Nevada Mountains. At $14 a
bottle, this is not your everyday drinking water. The 7.5 alkalinity “silky” water is ideal
for pairing with food and wine and comes in a hand-finished, triple-sealed, diamond-like
bottle. It is only available in fine restaurants, gourmet markets, and luxury hotels. The
10,000 limited-edition bottles are individually numbered and decorated with custom art,
making the bottle a collector’s item. This isn’t the first for luxury water, though, and is
actually somewhat of a bargain. Fillico Beverly Hills (from Japan) costs $100 per bottle.
That’s without the gold or silver crown cap—you can double the price if you want that.
Acqua di Cristallo Tributo a Modigliani gold-bottled water tops them all at $60,000 per
bottle!
5-10 What buying factors are most likely affecting consumers who purchase luxury
bottled water? (Objective 2) (AACSB: Written and Oral Communication; Reflective
Thinking)
Answer:
Cultural, social, and personal factors will be the most likely factors to impact this
purchase. Among the cultural factors, social class is likely to be a prime factor.
Consumers in a given social class tend to exhibit similar buying behavior. Social
classes also show distinct product and brand preferences in various product
categories. Reference groups, particularly peer groups (as determined by education,
occupation, wealth, income, or social class) will be a social factor as they impact a
person’s attitudes and behavior. Roles and status will also be social factors to
consider. Age and life-cycle stage will factor in, inasmuch as younger consumers may
be in a position to spend $14 for a bottle of water, but not $100 or more. Lifestyle is
tied to income, social class, and wealth.
 5-11 Is it ethical to sell water, which is basically all the same, in a way that commands
such high prices? Explain why or why not. (Objective 3) (AACSB: Written and Oral
Communication; Ethical Thinking)
Marketing by the Numbers: Evaluating Alternatives
One way consumers can evaluate alternatives is to identify important attributes and assess
how purchase alternatives perform on those attributes. Consider the purchase of a tablet.
Each attribute, such as screen size, is given a weight to reflect its level of importance to
that consumer. Then the consumer evaluates each alternative on each attribute. For
example, in the table below, price (weighted at 0.5) is the most important attribute for this
consumer. The consumer believes that Brand C performs best on price, rating it 7 (higher
ratings indicate higher performance). Brand B is perceived as performing the worst on
this attribute (rating of 3). Screen size and available apps are the consumer’s next most
important attributes. Operating system is least important.
Importance Alternative Brands

Attributes Weight (e) A B C
Screen size 0.2 4 6 2
Price 0.5 6 3 7
Operating System 0.1 5 5 4
Apps available 0.2 4 6 7
A score can be calculated for each brand by multiplying the importance weight for each
attribute by the brand’s score on that attribute. These weighted scores are then summed
to determine the score for that brand. For example, ScoreBrand A = (0.2 x 4) + (0.5 x 6) +
(0.1 x 5) + (0.2 x 4) = 0.8 + 3.0 + 0.5 + 0.8 = 5.1. This consumer will select the brand
with the highest score.
5-12 Calculate the scores for brands B and C. Which brand would this consumer likely
choose? (Objective 3) (AACSB: Written and Oral Communication; Analytical
thinking)
Answer:
ScoreBrand B = (0.2 x 6) + (0.5 x 3) + (0.1 x 5) + (0.2 x 6)

= 1.2 + 1.5 + 0.5 + 1.2 = 4.4
ScoreBrand C = (0.2 x 2) + (0.5 x 7) + (0.1 x 4) + (0.2 x 7)

= 0.4 + 3.5 + 0.4 + 1.4 = 5.7
Based on this analysis, the consumer would probably select Brand C because it has
the highest score.
5-13 Which brand is this consumer least likely to purchase? Discuss two ways the
marketer of this brand can enhance consumer attitudes toward purchasing its brand.
(Objective 3) (AACSB: Written and Oral Communication; Reflective Thinking;
Analytical thinking)
Answer:
This consumer is least likely to select brand B because it has the lowest score. The
marketer can attempt to change consumer attitudes toward its brand in three ways:
a. Change beliefs—if consumers believe a brand does not perform well on an
attribute, then the marketer can attempt to change that belief. This consumer
believes brand B doesn’t have as good of price as the other alternatives. If
this brand is the same as the others, then the marketer needs to educate
consumers of this fact. If the brand truly doesn’t perform well on that
attribute, then the product must be improved and then beliefs must be changed
as well. This is the most important attribute for consumers, so the marketer
needs to address this.
b. Change attribute importance—the marketer of brand B can attempt to
influence how consumers evaluate product attributes. Brand B performs very
well on screen size and apps available, but these attributes are not rated as
very important. Increasing the importance weight on those attributes will help
this brand considerably because it performs better than both competitors on
screen size and almost as well at brand C on apps available.
c. Add a new attribute to consider—the marketer of brand B could attempt to get
consumers to consider an attribute that is not on the list, such as video
streaming speed. The added attribute needs to be something that will be
considered important by consumers and be one that the brand would be
perceived as better than the competition for this to be successful.
Company Case Notes
Veterinary Pet Insurance: Health Insurance for Our Furry⎯or Feathery⎯Friends
Synopsis
Veterinary Pet Insurance is the leading provider of pet insurance in the U.S. As pet
ownership increases and the cost of veterinary care also increases, the concept of buying
health insurance for pets is increasingly becoming an option that pet owners are
considering. VPI is making great efforts to make pet owners aware of the costs associated
with proper veterinary care and the pitfalls of not being able to afford that care. The more
it succeeds in this educational process, the more customers are signing up.
Teaching Objectives
The teaching objectives for this case are to:
1. Provide a practical application for the buyer decision process.

2. Illustrate the importance of emotions in making purchase decisions.
3. Highlight the factors that affect the development of consumer attitudes.
Underscore the extent to which consumer behavior affects the growth and development of
a company.
5-17 Analyze the buyer decision process for a pet insurance customer.
Need recognition – a person needs a pet to begin with. Then, it is important that a
person perceive that there is a reasonable possibility that their pet will need
veterinary care at some point, and that that care will cost more than the person is
able to afford at any one time.
Information search – With the need recognized, the consumer will seek out
information on ways to solve the problem. This may happen by reading news
articles or blogs, gathering information from company Web sites, or talking to
fellow pet owners about how they have dealt with the issue.
Evaluation of alternatives – This may be a brand-to-brand comparison. It may
also be a comparison between purchasing and not purchasing the item at all.
Whatever the case, the options are compared with respect to the features and
benefits that are most important to the customer.
Purchase decision – the consumer decides to buy or not to buy. Buying involves
agreeing to a contract and making the payment. This decision has been facilitated
by the Web interfaces of most every pet insurance company, including VPI.
Postpurchase behavior – how much the person seeks veterinary care, the degree
to which that care is covered, the ease of filing a claim, the nature of customer
service, and many other factors that happen postpurchase will affect the attitude
that a customer holds toward VPI.
5-18 Is the decision to buy pet insurance strictly an economic decision? Explain.
A strictly economic decision is one where a consumer weighs the costs and
benefits of a decision and chooses the option that leads to a greater economic
outcome. Where pet insurance is concerned, it is far more likely that a consumer
will pay more than they will ever receive back in terms of monetary benefits. In
fact, this is the case with all insurance products, or the insurance company would
be out of business. Thus, if the decision of whether or not to buy pet insurance
were strictly economic, no one would buy it. Rather, the decision involves a great
deal of emotion. People become attached to their pets. Insurance provides them
with the peace of mind that in the event of a costly medical expense, they will have
the coverage they need to properly care for their pet. No emotional bond with the
pet, no need for insurance.
5-19 Explain how both positive and negative attitudes develop toward a brand like VPI.
How might VPI change consumer attitudes toward the brand?
This question is based entirely on the factors that develop and modify attitudes. In
short, attitudes are the product of all beliefs, emotions, and even behaviors that a
person has toward an attitude object (in this case, VPI insurance). A negative
belief or emotion contributes negatively to the overall attitude just as a positive
belief or attitude contributes positively. It is important for marketers to
understand that different beliefs and emotions are also weighted differently for
different customers.
People develop beliefs and emotions based on the experiences they have with
respect to VPI. These include promotional efforts, word-of-mouth, publicity, and
experience with the product and company itself. These are all things that VPI can
control to some extent. Thus, if a VPI wants customers to have the most positive
attitudes possible, they must identify the most important beliefs and emotions that
consumers hold with respect to pets and pet insurance. Then, they must seek to
influence those beliefs and emotions through promotion, word-of-mouth, customer
service, product pricing, product features, and all aspects of the customer
experience.
5-20 What explains the difference between pet insurance usage in the United States
versus Great Britain or Sweden?
One of the key factors may simply be the fact that pet insurance has been available far
longer in European countries than it has been in the U.S. The first pet insurance policy
was sold in Great Britain in 1947, whereas the first pet insurance policy was sold in
the U.S. in 1982. But there are likely other reasons for the greater consumption of pet
insurance in Europe. Consider that birth rates in Europe are lower than they are in the
U.S. It is possible that with some individuals and couples having fewer children, pets
take on a greater importance in their lives. This begs the question, are there other
factors that have led the average European to have stronger emotional bonds with their
pets than the average U.S. citizen?
5-21 Will VPI continue to grow as it has in the past? Why or why not?
As a discussion question, students could certainly create a case for either answer.
However, there seems to be a strong case for pet insurance as a category and VPI as a
company to continue to grow. First, Americans are not shying away from pets. Pet
ownership is increasing. Also, the amount of money people spend on pets is increasing.
But more importantly, the cost of veterinary care is increasing. More and more
treatments and specialties are becoming available. With such, more costs are incurred.
As people become aware of this, the option of hedging against catastrophic loss through
pet insurance will be more attractive.
Teaching Suggestions
Ask how many of the students have a pet (either with them at college, or at home). Ask
them how emotionally attached they are to that pet. Then ask them to write down a price
that they would be willing to pay to keep their pet alive and/or healthy. It is that exact
decision that most pet owners are never faced with that influences people to make the pet
insurance purchase. Use these questions to begin a discussion of just whether or not there
is such a price that can be put on making the decision to put a pet down.
This case also works well with the marketing environment chapter (Chapter 3) and the
global marketing chapter (Chapter 19).
Go to mymktlab.com for the answers to the following Assisted-graded writing

questions:
5-22 Define the consumer market and describe the four major set of factors that
influence consumer buyer behavior. Which characteristics influenced you would
attend? Are those the same characteristics that would influence you when
deciding what to do on Saturday night? Explain. (AACSB: Communication;
Reflective Thinking)
5-23 Explain the stages of the consumer buyer decision process and describe how
you or your family went through this process to make a recent purchase.
(AACSB: Communication; Reflective Thinking)

ADDITIONAL PROJECTS, ASSIGNMENTS, AND
EXAMPLES
Projects
1. Every culture contains smaller subcultures. In the United States, the rapidly increasing
Hispanic market holds opportunities for many businesses. Look around your
community and make a list of those businesses that may well prosper from this
increasing subculture. Why do you think this is so?
2. What social class do you belong to? Why? What would it take for you to move up a
class?
3. Think about online social networks such as Facebook or Twitter. How are marketers
trying to use these networks to promote their products?
Small Group Assignments

1. Form students into groups of three to five. Each group should read the opening vignette
to the chapter on GoPro. Each group should then answer the following questions and
share the answers with the class.
a. Are you an outdoor enthusiast? An extreme sports lover? If so, how might you use
a GoPro camera? Once you captured your video, how might you share it with
friends?
b. Visit the GoPro website at www.gopro.com. Beyond making well-engineered video
cameras, how has the company become a favorite among adventure enthusiasts?
c. Beyond the applications discussed in class, which new uses can you think of for the
GoPro camera?
2. Form students into groups of three to five. Each group should read Inside Real
Marketing 5.1: Word-of-Mouth Marketing: Sparking Brand Conversations and
Helping Them Catch Fire. Each group should then answer the following questions and
share the answers with the class.
a. Discuss examples of companies that have attracted you by reaching out through
social media. How did you respond? Did the contact result in a purchase? Did you
or your friends participate in the brand conversation?
b. Recall examples of companies who have somehow failed at using social media.
Why did this occur? What did the company miss? Did its attempts at building brand
conversations use effective messengers, i.e. credible bloggers or authentic stories?
Explain.
c. If you are a user of social media, do you believe it can serve as an effective
marketing tool, or is it simply a nuisance to users? Can brand conversations
influence you? Justify your answer.
d. Do you believe that social media is a smart investment for marketers, or are they
just “shooting in the dark”? Why do you believe this? How do you personally react
to marketing messages you receive via word-of-mouth marketing? How does that
play into your belief abut the effectiveness of brand conversations and word-of-
mouth marketing?
Individual Assignments
1. Take a look at the Web sites for Apple (www.apple.com), Dell (www.dell.com), and
Hewlett-Packard (www.hp.com). Which types of consumers are each of these
companies appealing to through their marketing approaches? Are they targeting
personalities, using technical comparisons, or something else? Based on what you have
read in this chapter, why do you believe each company chose this marketing approach?
2. Check out the Web site for consumer information giant Acxiom (www.acxiom.com).
Explore the services they provide to marketing organizations and describe those
services in a 500-word report. How does the company gather its information, and how
is it used? How does Acxiom’s approach differ from that of its competitors? In your
report, be sure to cite specific examples from this chapter.
Think-Pair-Share
Consider the following questions, formulate and answer, pair with the student on your
right, share your thoughts with one another, and respond to questions from the instructor.
1. Describe a cultural shift that has impacted marketers in a major way.

2. Highlight some of the more significant differences in purchase habits between Asian-
Americans and the U.S. Hispanic market.
3. What factors determine social class in the United States?
4. How are online social networks changing the face of marketing?
Outside Examples
1. Age and lifecycle changes have a dramatic impact on the many types of products we
purchase and consume. Go to Jeep’s Web site (www.jeep.com) and examine their
complete product offering. How has Jeep tried to reach consumers of all ages and stages
of the lifecycle, especially mature consumers?
Possible Solution:
Over the past 20 years, Jeep has excelled at reaching a diverse customer base. From a
review of their Web site and product offerings, it becomes evident that they design and
produce vehicles to satisfy consumers of all ages and stages of the lifecycle. In addition,
if you pay attention to the individual options offered on some of the vehicles, it becomes
clear that certain vehicles are targeted to consumers in particular stages of the lifecycle.
2. When asked about their least favorite aspect of TV viewing, most people say it’s the
commercials. Although most consumers understand that commercials support free
programming, they are bothered by the growing number of commercial interruptions.
One way to avoid all the clutter is to channel surf and bypass commercials. But digital
video recorders (DVRs) offer another solution—skip commercials altogether while still
watching your favorite show on your own schedule.
Consumers are attached to their DVRs and love the freedom they find through services
like TiVo. The service allows consumers to automatically record shows and skip
commercials during playback. Statistics show that DVR users watch more TV, channel
surf less, and move many prime-time week shows to the weekend, when they have
more leisure time.
Will DVRs put an end to commercial dominance and put the consumer in the driver’s
seat? This question assumes that television will continue its long-running domination
as the number-one outlet for program content. But the nature of how consumers are
getting their news, sports, and entertainment programming is in flux like never before.
For starters, more and more consumers are opting to purchase their favorite show on
DVD or through download services like iTunes. As with the DVR option, this cuts out
commercials altogether. But for the launch of a recent season, the four major networks
(ABC, NBC, CBS, and FOX) made a landmark move. Each began offering full
episodes of many of their top programs through their Web sites. The episodes are
available the day after they air on television, are delivered in high-resolution streaming
video, can be viewed full screen, and are available 24/7. The price? They are free, but
viewers must watch a single commercial five or six times during a one-hour show. Not
exactly commercial-free, but far less than the 18 or so minutes per hour devoted to ads
on television.
What a novel concept: deliver the content for free, and pay for the programming
through ad revenues. And while the delivery of program content will likely evolve for
some time to come, the bottom line is consumers will choose the viewing method and
options that give them the features they value most. Big screens? High resolution? No
ads? Convenience? On-demand? Only time will tell.
1. What social and personal factors might influence the purchase of a DVR?
2. How would you market this product in order to create a need in the consumer’s
mind?
Possible Solution:
1. A multitude of social and personal factors may have influence here. Age, economic
situation, and lifestyle may all come into play. Younger consumers are typically
more adventurous and more likely to try the newer technologies. Associatively,
although DVRs are not terribly expensive, it is necessary to have a certain degree
of discretionary income (or excess income available to spend) in order to purchase
the product. Finally, active lifestyles, given their somewhat more busy schedules,
are more likely to find this product to be useful.

2. It is necessary to market this product as a time-saving convenience, on the cutting
edge of technology to effectively reach the target market.

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Copyright© 2016 Pearson Education

➢ Opening Vignette Questions

Copyright© 2016 Pearson Education

Consumer buyer behavior refers to the buying behavior of p. 142

The American consumer market consists of more than 316

p. 143 Model of Consumer Behavior p. 143

The starting point is the stimulus-response model of buyer

Marketing stimuli consist of the four Ps: product, price, place,

Other stimuli include major forces and events in the buyer’s

The marketer wants to understand how the stimuli are changed

1. The buyer’s characteristics influence how he or she

PPT 5-8 Review Learning Objective 1: Define the consumer market

Copyright© 2016 Pearson Education

Marketers are always trying to spot cultural shifts.

Social class is not determined by a single factor, but is

Social classes show distinct product and brand preferences in

Copyright© 2016 Pearson Education

This small percentage of Americans is referred to as the

Online social networks are online communities where people p. 148

• Women account for 60 percent of all technology

• The nation’s 36 million kids age 9 to 13 control an

Roles and Status. A role consists of the activities people are

Copyright© 2016 Pearson Education

Tastes in food, clothes, furniture, and recreation are often age-

Marketers often define their targets in terms of life-cycle stage

Consumer information giant Nielsen’s PRIZM Lifestage

PPT 5-19 Occupation. A person’s occupation affects the goods and

p. 152 Economic Situation. A person’s economic situation will

Lifestyle is a person’s pattern of living as expressed in his or

Personality and Self-Concept

The basic self-concept premise is that people’s possessions

p. 155 Motivation research refers to qualitative research designed to

Selective distortion describes the tendency of people to

A drive is a strong internal stimulus that calls for action. p. 157

Beliefs and Attitudes p. 157

Attitude describes a person’s relatively consistent p. 157

Review Learning Objective 2: Name the four major factors

p. 158 Types of Buying Decision Behavior

Consumers undertake complex buying behavior when they

Copyright© 2016 Pearson Education

Typically, the consumer has much to learn about the product

Marketers of high-involvement products must understand the

Dissonance-Reducing Buying Behavior p. 158

To counter such dissonance, the marketer’s after-sale

Habitual buying behavior occurs under conditions of low

Consumers do not search extensively for information about

They passively receive information as they watch television

Because buyers are not highly committed to any brands,

In such cases, consumers often do a lot of brand switching.

p. 159 The buyer decision process consists of five stages:

The buyer recognizes a problem or need triggered by either p. 160

Commercial sources inform the buyer.

Personal sources legitimize or evaluate products for the buyer.

p. 160 Alternative evaluation is how the consumer processes p. 160

In some cases, consumers use careful calculations and logical

At other times, the same consumers do little or no evaluating;

p. 161 Generally, the consumer’s purchase decision will be to buy p. 161