Chapter 1: BUYING, HAVING, and BEING
CHAPTER OBJECTIVES
When students finish this chapter, they should understand why:
1. We use products to help us define our identities in different settings.
2. Consumer behavior is a process.
3. Marketers need to understand the wants and needs of different consumer segments.
4. The Web is changing consumer behavior.
5. Our beliefs and actions as consumers strongly connect to other issues in our lives.
6. Many different types of specialists study consumer behavior.
7. There are two major perspectives on consumer behavior.
CHAPTER SUMMARY
After reading this chapter, students should understand why:
We use products to help us define our identities in different settings.
A consumer may purchase, use, and dispose of a product, but different people may perform these
functions. In addition, we can think of consumers as role players who need different products to
help them play their various parts.
Consumer behavior is a process.
Consumer behavior is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Marketers need to understand the wants and needs of different consumer segments.
Market segmentation is an important aspect of consumer behavior. Consumers can be segmented
according to many dimensions, including product usage, demographics (the objective aspects of
a population, such as age and sex), and psychographics (psychological and lifestyle
characteristics). Emerging developments, such as the new emphasis on relationship marketing
and the practice of database marketing, mean that marketers are much more attuned to the wants
and needs of different consumer groups. This is especially important as people are empowered to
construct their own consumer space—accessing product information where and when they want
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Section 1: Consumers in the Marketplace
it and initiating contact with companies on the Internet instead of passively receiving marketing
communications.
The Web is changing consumer behavior.
The Web is transforming the way consumers interact with companies and with each other.
Online commerce allows us to locate obscure products from around the world, and consumption
communities provide forums for people to share opinions and product recommendations.
Potential problems accompany these benefits, including the loss of privacy and the deterioration
of traditional social interactions as people log more time online.
Our beliefs and actions as consumers strongly connect to other issues in our lives.
Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to
our understanding of both public policy issues (e.g., ethical marketing practices) and the
dynamics of popular culture.
Many different types of specialists study consumer behavior.
The field of consumer behavior is interdisciplinary; it is composed of researchers from many
different fields who share an interest in how people interact with the marketplace. These
disciplines can be categorized by the degree to which their focus is micro (the individual
consumer) or macro (the consumer as a member of groups or of the larger society).
There are two major perspectives that seek to understand and study consumer behavior.
There are many perspectives on consumer behavior, but we can roughly divide research
orientations into two approaches: The positivist perspective emphasizes the objectivity of science
and the consumer as a rational decision maker. The interpretivist perspective, in contrast, stresses
the subjective meaning of the consumer’s individual experience and the idea that any behavior is
subject to multiple interpretations rather than to one single explanation.
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Chapter 1: Consumers Rule
CHAPTER OUTLINE
I. Consumer Behavior: People in the Marketplace
A. The average consumer can be classified and characterized based on demographics (e.g.
age, gender, income, occupation) and psychographics (lifestyle and personality). The
average consumer’s purchase decisions are heavily influenced by the opinions and
behaviors of their family, peers, and acquaintances.
B. Community heavily influences us.
1. The growth of the Web has created thousands of online consumption communities
where members share opinions and product recommendations.
2. As members of a large society, U.S. consumers share certain cultural values or
strongly held beliefs about the way the world should be structured.
3. Subcultures, or smaller groups within the culture, also share values (e.g. Hispanics,
teens, Midwesterners).
4. The use of market segmentation strategies may be used to target a brand to only
specific groups of consumers rather than to everybody.
C. Brands often have clearly defined images or “personalities” created by product
advertising, packaging, branding, and other marketing strategies that focus on positioning
a product in a certain way.
D. When a product succeeds in satisfying a consumer’s specific needs or desires it may be
rewarded with many years of brand loyalty, a bond between product and consumer that is
difficult for competitors to break.
II. What Is Consumer Behavior?
Consumer behavior is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs
and desires.
A. Consumer behavior is a process.
1. Most marketers recognize that consumer behavior is an ongoing process, not merely
what happens at the moment a consumer hands over money or a credit card and in
turn receives some good or service (buyer behavior).
2. The exchange—a transaction where two or more organizations or people give and
receive something of value—is an integral part of marketing. However, the expanded
view of consumer behavior emphasizes the entire consumption process. This view
includes issues that influence the consumer before, during, and after a purchase.
***** Use Figure 1.1 Here; Use Consumer Behavior Challenge Here *****
Discuss #6
B. Consumer behavior involves many different actors.
1. A consumer is a person who identifies a need or desire, makes a purchase, and then
disposes of the product during the three stages in the consumption process.
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Section 1: Consumers in the Marketplace
2. The purchaser and user of a product might not be the same person. A separate person
might be an influencer. This person provides recommendations for or against certain
products without actually buying or using them.
3. Consumers may be organizations or groups (in which one person may make the
decision for the group or a large group of people may make purchase decisions).
***** Use Consumer Behavior Challenge Here *****
Discuss #5
III. Consumers’ Impact on Marketing Strategy
A. Understanding consumer behavior is good business.
1. Marketers can only satisfy consumer needs to the extent that they understand the
people or organizations that will use the products and services they sell.
2. Consumer response is the ultimate test of whether a marketing strategy will succeed.
3. Data about consumers help organizations define the market, identify threats to and
opportunities for a brand, and help ensure a product continues to appeal to its core
market.
B.
Consumers Are Different! How We Divide Them Up
1. Society is evolving from a mass culture to a diverse one, which makes it more
important to identify diverse market segments and to develop specialized messages
and products for those groups.
a. A shift from television spending to alternative media by companies as
McDonald’s provide evidence of this trend.
b. One alternate way of reaching diverse consumers, ARGs (alternate reality
games), integrates multiple media channels (TV, email, SMS, snail mail) to
engage a community of players to solve a complex puzzle.
***** Use Exhibit 1.3 Here *****
2. The process of market segmentation identifies groups of consumers who are similar
to one another in one or more ways and then devises strategies that appeal to one or
more groups. There are many ways to segment a market.
a. Companies can define market segments by identifying their most loyal, core
customers or heavy users. Marketers use the 80/20 rule as a rule of thumb,
where 20% of users account for 80% of sales.
b. Demographics are statistics that measure observable aspects of a population,
such as birth rate, age distribution, and income.
3. Important demographic dimensions include:
a. Age
b. Gender
c. Family structure
d. Social class and income
e. Race and ethnicity
4. Geography and Lifestyles (a psychographic variable) are other important bases for
segmenting consumers.
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Chapter 1: Consumers Rule
Discussion Opportunity—Have students describe themselves demographically. Ask: Does this
have any bearing on your purchase patterns? How could a marketer find out about you in a
demographic sense? Describe one purchase occasion where a demographic dimension had an
impact on your purchase decision.
C. Relationship and Database Marketing
1. Relationship marketing occurs when a company makes an effort to interact with
customers on a regular basis, giving customers reasons to maintain a bond with the
company over time.
Discussion Opportunity—Provide the class with an example of relationship marketing. Ask:
What types of organizations can make best use of relationship marketing? Have students offer
additional examples of relationship marketing.
2. Database marketing involves tracking consumers’ buying habits very closely and
creating products and messages tailored precisely to people’s wants and needs based
on this information.
Discussion Opportunity—Ask: How can database marketing help an organization improve its
relationship marketing? What databases are you in? How did you get there?
***** Use Consumer Behavior Challenge Here *****
Discuss #10
IV. Marketing’s Impact on Consumers
A. Popular Culture
1. Popular culture consists of the music, movies, sports, books, celebrities, and other
forms of entertainment consumed by the mass market; it is both a product of and an
inspiration for marketers.
2. Product icons (e.g. Pillsbury Doughboy, Jolly Green Giant) often become central
figures in popular culture.
B. What Does It Mean to Consume?
1. A fundamental premise of consumer behavior is that people often buy products not
for what they do, but for what they mean.
2. People, in general, will choose the brand that has an image (or even a personality)
that is consistent with his or her underlying needs.
3. Role theory takes the view that much of consumer behavior resembles actions in a
play. Consumers have roles and they may alter their consumption decisions
depending upon the role being played at the time.
***** Use Consumer Behavior Challenge Here *****
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Section 1: Consumers in the Marketplace
Discuss #1
Discussion Opportunity—Give some examples of products that might be consumed strictly for
image. Have students offer examples of products that they purchase for this reason. Ask: How
does the image of the product enhance your sense of self when you use or consume the product?
4. People may have various relationships with a product:
a. Self-concept attachment—the product helps to establish the user’s identity.
b. Nostalgic attachment—the product serves as a link with a past self.
c. Interdependence—the product is a part of the user’s daily routine.
d. Love—the product elicits emotional bonds of warmth, passion, or other strong
emotion.
Discussion Opportunity—Ask students to give an illustration of a product that they have a strong
attachment for and explain the relationship. How did this relationship develop?
***** Use Consumer Behavior Challenge Here *****
Application #2
C. The Global Consumer
1. A global consumer culture is one where people around the world are united by their
common devotion to brand name consumer goods, movie stars, and musical
celebrities.
2. When companies expand overseas, it increases the pressure to understand how
customers in other countries are the same or different from those in one’s own
country.
D. The Digital Native: Living a Social [Media] Life
1. The digital revolution is one of the most significant influences on consumer behavior.
2. Electronic marketing has increased convenience by breaking down barriers of time
and location.
3. There is now B2C e-commerce (businesses selling to consumers) and C2C ecommerce (consumers selling to consumers).
4. Virtual brand communities are often brought together by their interests, which
expand consumption communities beyond those available in local communities.
Discussion Opportunity—Have students describe the characteristics of their virtual
communities. Ask: How do these interactions shape your consumption behaviors?
5. Digital natives are consumers who grew up “wired” in a highly networked, alwayson world where digital technology always existed.
6. Consumers are part of a horizontal revolution, where each consumer can
communicate with huge numbers of people by a click on a keypad so information
flows across people instead of just coming from big companies and governments.
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Chapter 1: Consumers Rule
7. Social media are the online means of communication, conveyance, collaboration and
cultivation among interconnected and interdependent networks of people,
communities and organizations enhanced by technological capabilities and mobility.
Discussion Opportunity—Ask students to give some examples of social media platforms they use.
Have students offer examples of brands they interact with via social media. Ask: How do these
interactions relate to your relationship with the brand?
8. User-generated content, where everyday people film commercials, voice their
opinions about products, brands and companies on blogs, podcasts and social
networking sites, is part of the Web 2.0 era, which shifted the Internet from a oneway transmission medium to a social, interactive medium.
***** Use Consumer Behavior Challenge Here *****
Discuss #9
9. Social media is characterized by synchronous (real-time) and asynchronous
interactions across social media platforms that enable a culture of participation.
V. Marketing Ethics and Public Policy
A. Business ethics are rules of conduct that guide actions in the marketplace—the standards
against which most people in a culture judge what is right and what is wrong, good, or
bad.
***** Use Consumer Behavior Challenges Here *****
Discuss #2, 3 and Application #3
1. There are various universal values and many culture-specific ones (which influence
whether business practices like bribery are acceptable).
2. Some marketers violate consumer trust (using illegal mislabels on packages or using
bait-and-switch selling).
3. Some marketers engage in practices that are legal but have detrimental effects on
society.
***** Use Consumer Behavior Challenge Here *****
Discuss #8
B. Needs and Wants: Do Marketers Manipulate Consumers?
1. Consumer space is an environment where individuals dictate to companies the types
of products they want and how, when, and where, or even if, they want to learn about
them (a shift from marketer space where companies called the shots).
2. Do marketers create artificial needs? There are arguments to support both sides of this
question.
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Section 1: Consumers in the Marketplace
a. A need is a basic biological motive; a want represents one way that society has
taught us to satisfy that need.
b. A basic objective of marketing is to create awareness that needs exist, not to
create needs.
C. Are Advertising and Marketing Necessary?
1. Products are designed to meet existing needs; advertising helps communicate their
availability.
2. The economics of information perspective suggests advertising provides an
important source of consumer information which consumers are willing to accept
because it reduces the economic cost associated with searching for products.
D. Do Marketers Promise Miracles?
1. Advertisers do not know enough about people to manipulate them.
2. The failure rate for new products ranges from 40 to 80 percent.
E. Public Policy and Consumerism
1. Table 1.1 presents consumer legislation that is designed to protect consumers.
2. The Department of Agriculture, Federal Trade Commission, Food and Drug
Administration, Securities and Exchange Commission, and Environmental Protection
Agency are federal agencies that oversee consumer-related activities.
3. Congress passed the Pure Food and Drug Act in 1906 and the Federal Meat
Inspection act in 1907 in response to Upton Sinclair’s 1906 book The Jungle, which
exposed awful conditions in the Chicago meatpacking industry.
4. Recently, the Obama Administration issued voluntary guidelines that food products
targeted to children ages 2-17 would have to provide a meaningful contribution to a
healthy diet and would have to meet limits for harmful ingredients.
Discussion Opportunity—Ask students whether they feel advertising for foods that are high in
sodium, saturated fat and added sugars contributes to child obesity. Do they believe the
guidelines should be voluntary? Why or why not?
5. Consumer activism: America™
a. Adbusters is a nonprofit organization that discourages rampant commercialism
and advocates for social activism.
b. These organizations use culture jamming, a strategy aimed to disrupt efforts by
the corporate world to dominate our cultural landscape.
Discussion Opportunity—Ask: Has cultural jamming ever affected you and your consumption
behavior? Any of your friends? If so, why do you think the behavior occurred?
c. Some consumer researchers are not only seeking to study consumer responses but
to rectify what they see as pressing social problems in the marketplace. This is
known as participatory action research (PAR) or Transformative Consumer
Research (TCR).
F. Social Marketing and Green Marketing
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Chapter 1: Consumers Rule
1. Social marketing uses marketing techniques normally employed to sell beer or
detergent to encourage positive behaviors such as increased literacy and to discourage
negative activities such as drunk driving.
*****Use Exhibit 1.5 Here*****
2. As a response to consumer efforts, many firms have chosen to protect or enhance the
natural environment as they go about their business activities. This practice is known
as green marketing.
Discussion Opportunity— Many consumers mistrust green marketing claims because of a history
of companies “greenwashing,” (positioning a product or service as environmentally friendly
when it does not reduce harm to the environment, diverting attention from a company’s
environmental wrongdoings, or overstating a product’s green benefits). Ask: Which companies
do students associate with green marketing? Which companies are they skeptical of green
marketing claims? Why?
VI. Consumer Behavior as a Field of Study
A. Where Do We Find Consumer Researchers? Just about anywhere, we find consumers.
B. Interdisciplinary Influences on the Study of Consumer Behavior – Many fields shape the
field of consumer behavior. Table 1.2 provides an example of interdisciplinary research
issues about magazine usage. Figure 1.2 lists the disciplines in consumer research.
*****Use Figure 1.2 Here; Use Table 1.2 Here*****
C. Should Consumer Research Have an Academic or an Applied Focus?
It is still a debate. Some argue in favor of an applied focus that improves the
effectiveness of marketing practice. Others argue for a focus on understanding
consumption for its own sake.
D. Two Perspectives on Consumer Research
1. One general way to classify consumer research is in terms of the fundamental
assumptions the researchers make about what they are studying and how to study it.
This set of beliefs is known as a paradigm. A paradigm shift may now be underway.
2. The dominant paradigm currently is called positivism (or sometimes called
modernism). It emphasizes that human reason is supreme, and that there is a single,
objective truth that can be discovered by science. Positivism encourages us to stress
the function of objects, to celebrate technology, and to regard the world as a rational,
ordered place with a clearly defined past, present, and future.
3. The emerging paradigm of interpretivism (or postmodernism) questions the
previous assumptions. Proponents argue that there is too much emphasis on science
and technology in our society, and that this ordered, rational view of consumers
denies the complex social and cultural world in which we live. Others say positivism
puts too much emphasis on material well being, and that this logical outlook is
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Section 1: Consumers in the Marketplace
dominated by an ideology that stresses the homogeneous views of a culture
dominated by white males.
4. Interpretivists instead stress the importance of symbolic, subjective experience and
the idea that meaning is in the mind of the person because we live a world composed
of a pastiche, or mixture of images.
***** Use Table 1.3 Here *****
Discussion Opportunity—Ask students to consider whether they are more of a “positivist” or an
“interpretist.” Do not allow them to take the easy way out by saying “both.” All are to some
extent.
VII. Taking It from Here: The Plan of the Book
The plan is simple—it goes from micro to macro. Each chapter provides a “snapshot” of
consumers, but the lens used to take each picture gets successively wider. The topics
covered are depicted as a “wheel of consumer behavior,” as shown in Figure 1.3.
*****Use Figure 1.3 Here *****
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Chapter 1: Consumers Rule
End-of-Chapter Support Material
SUMMARY OF SPECIAL FEATURE BOXES
1.
Sony Walkman Then and Now
The once successful Sony Walkman is used, as an example of how consumer knowledge can
help a company ensure its product continues to appeal to core market needs.
2.
The Lost Ring
Describes McDonald’s use The Lost Ring, an ARG (alternate reality game), to engage gamers
from all over the world in an online branding campaign using YouTube, Flickr, micro sites, and
offline locations.
3.
The Tangled Web
This box examines the controversial issue of the widespread availability of consumers’ personal
information online. Discussed is whether consumers care about and want to protect their privacy
online. This feature supports the section “Business Ethics.”
4.
Consumer Activism: AmericaTM
This box discusses consumer activism, with a focus on Adbusters, a nonprofit social activism
group, and books and efforts that shaped the consumer activism movement in the 1960s and
1970s.
5.
CB As I See It
Professor Julie Ozanne discusses how consumer research can benefit society. She notes that
consumer researchers have the potential to act as honest brokers working with consumer interest
groups, public policy makers, and business leaders to foster positive social transformation.
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Section 1: Consumers in the Marketplace
REVIEW QUESTIONS
Individual
1. Provide a definition of consumer behavior.
It is the study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services, ideas, or experiences to satisfy needs and desires.
(1 minute, Chapter Objective 2, Course Learning Outcome 1)
2. What are demographics? Give three examples of demographic characteristics.
Demographics are statistics that measure observable aspects of a population, such as
birthrate, age distribution, and income.
(1.5 minutes, Chapter Objective 3, Course Learning Outcome 1)
3. What is market segmentation? Give three examples of market segments.
The use of market segmentation strategies means targeting a brand only to specific groups of
consumers rather than to everybody—even if it means that other consumers who do not
belong to this target market are not attracted to that product. Examples may include product
usage, demographics (e.g. age, sex, income), and psychographics (psychological and lifestyle
characteristics).
(1.5 minutes, Chapter Objective 3, Course Learning Outcome 1)
4. What is role theory, and how does it help us to understand consumer behavior?
The perspective of role theory takes the view that much of consumer behavior resembles
actions in a play. As in a play, each consumer has lines, props, and costumes necessary to
put on a good performance. Because people act out many different roles, they sometimes
alter their consumption decisions depending on the particular “play” they are in at the time.
The criteria they use to evaluate products and services in one of their roles may be quite
different from those used in another role.
(1.5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome
1)
5. What do we mean by an exchange?
A transaction in which two or more organizations or people give and receive something of
value.
(1 minute, Chapter Objective 2, Course Learning Outcome 1)
6. Why is it important for businesses to learn about their heavy users?
Because heavy users account for a substantial proportion of revenues. They are the
customers that are more likely to be loyal. These customers represent the best opportunity to
cross-sell and up-sell.
(1.5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome
1)
7. What is database marketing?
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Chapter 1: Consumers Rule
Database marketing involves tracking specific consumers’ buying habits very closely and
creating products and messages tailored precisely to people’s wants and needs based on this
information.
(1 minute, Chapter Objective 3, AACSB: Use of Information Technology, Course Learning
Outcome 1)
8. What is popular culture, and how does this concept relate to marketing and consumer
behavior?
Popular culture, consisting of the music, movies, sports, books, celebrities, and other forms
of entertainment consumed by the mass market, is both a product of and an inspiration for
marketers. Our lives are also affected in more far-reaching ways, ranging from how we
acknowledge cultural events such as marriage, death, or holidays to how we view social
issues such as air pollution, gambling, and addictions.
(1.5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome
1)
9. What is the primary difference between Transformative Consumer Research and other kinds
of consumer research?
Transformative consumer research is a new movement of consumer researchers who want to
improve consumer well being. Regular consumer research does not have this additional
objective of improving the situation being studied.
(1.5 minutes, Chapter Objective 6, AACSB: Analytic Skills, Course Learning Outcome 2)
10. This chapter states “people often buy products not for what they do but for what they mean.”
Explain the meaning of this statement and provide an example.
The core functional benefits provided by products are only the bare minimum. Because most
all brand options provide these, consumers go beyond the basics. All things being equal,
people will choose the brand that has an image (or even a personality!) consistent with their
underlying needs. Almost any product can be used as an example. Focus on the clothing
brands that students wear.
(2 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 1)
11. What do we mean by the term global consumer culture?
A culture in which people around the world are united by their common devotion to brand
name consumer goods, movie stars, celebrities, and leisure activities.
(1 minute, Chapter Objective 5, AACSB: Dynamics of the Global Economy, Course
Learning Outcomes 1 and 17)
12. What is the difference between C2C and B2C e-commerce?
B2C is businesses conducting transactions with consumers. C2C is consumer-to-consumer
business, made possible by websites like www.etsy.com, www.craigslist.com, and
www.ebay.com.
(1.5 minutes, Chapter Objective 4, AACSB: Analytic Skills, Course Learning Outcome 1)
13. The economics of information perspective argues that advertising is important. Why?
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Section 1: Consumers in the Marketplace
This view emphasizes the economic cost of the time spent searching for products.
Accordingly, advertising is a service for which consumers are willing to pay, because the
information it provides reduces search time.
(2 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 1)
14. Provide two examples of important legislation that relate to American consumers.
The Pure Food and Drug Act in 1906, the Federal Meat Inspection Act in 1907, the Foreign
Corrupt Practices Act in 1977 and the 2010 Dodd–Frank Wall Street Reform and Consumer
Protection Act are examples given in the text.
(2 minutes, Chapter Objective 5, Course Learning Outcome 1)
15. Define social marketing and give an example of this technique.
Social marketing uses marketing techniques normally employed to sell beer or detergent to
encourage positive behaviors such as increased literacy and to discourage negative activities
such as drunk driving.
(1.5 minutes, Chapter Objective 5, Course Learning Outcome 1)
16. Name two different disciplines that study consumer behavior. How would their approaches to
the same issue differ?
Two disciplines that study consumer behavior are psychology and sociology. Psychologists
study consumer behavior from a mental / brain information processing perspective while
sociologists study consumer behavior from a group behavior perspective.
(1.5 minutes, Chapter Objective 6, AACSB: Analytic Skills, Course Learning Outcome 1)
17. What are the major differences between the positivist and interpretivist paradigms in
consumer research?
Positivism (or sometimes modernism) has significantly influenced Western art and science
since the late sixteenth century. It emphasizes that human reason is supreme, and that there
is a single, objective truth that can be discovered by science. Positivism encourages us to
stress the function of objects, to celebrate technology, and to regard the world as a rational,
ordered place with a clearly defined past, present, and future.
The paradigm of interpretivism (or postmodernism) questions these assumptions. Proponents
of this perspective argue that there is too much emphasis on science and technology in our
society, and that this ordered, rational view of behavior denies the complex social and
cultural world in which we live. Others feel that positivism puts too much emphasis on
material well-being, and that its logical outlook is directed by an ideology that stresses the
homogenous views of a culture dominated by (dead) white males. Interpretivists instead
stress the importance of symbolic, subjective experience, and the idea that meaning is in the
mind of the person—that is, we each construct our own meanings based on our unique and
shared cultural experiences, so there are no right or wrong answers.
(3 minutes, Chapter Objective 7, AACSB: Analytic Skills, Course Learning Outcome 2)
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Chapter 1: Consumers Rule
CONSUMER BEHAVIOR CHALLENGE
Discussion Questions
Individual
1. This chapter states that people play different roles and that their consumption behaviors may
differ depending on the particular role they are playing. State whether you agree or disagree
with this perspective, giving examples from your personal life. Try to construct a “stage set”
for a role you play—specify the props, costumes, and script that you use to play a role (e.g.,
job interviewee, conscientious student, party animal).
Most students will be able to identify the different roles that individuals play at different
times, so agreement should be almost universal. After agreeing with this notion, the student
will be more likely to accept the idea that consumption behavior is intimately tied with the
role itself. The goal of this exercise is to make the student aware that consumption helps to
define the roles consumers play and is a central part of those roles. For example, many
family social occasions are accompanied by food and drink, and the consumption of these
goods acts as a shared bond that the group uses to define membership in that group. Another
example is the style of clothing worn by young people to define their group membership.
Each student’s stage set will be unique to his or her own “role.” Each student should also
relate these “roles” to consumer behavior.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 1)
2. A company introduced a teddy bear for Valentine’s Day called “Crazy for You.” This toy
aroused the ire of mental health advocates because a straitjacket restrains the cuddly bear’s
paws and the stuffed animal comes with institutional commitment papers. Supporters of the
company’s decision to keep selling the bear say opponents are too “politically correct.” What
do you think?
Because this is an ethics-oriented question, responses illustrating both sides of this issue are
likely to emerge. Instructors should focus on the definition of business ethics given in the text
(rules of conduct that guide actions in the marketplace – the standards against which most
people in a culture judge what is right and what is wrong, good or bad) as a means of
guiding the discussion. This will force students to take a stand on whether the product in
question is morally right or morally wrong.
(5 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning Abilities,
Course Learning Outcome 1)
3. Nonprofit organizations routinely rely on generous corporate donations, and it is common to
name facilities after benefactors. The Nationwide Children’s Hospital in Ohio is no
exception; its name recognizes the insurance company’s $50 million donation. Now the
hospital is adding the Abercrombie & Fitch Emergency Department and Trauma Center and
there is the Limited Too & Justice Main Lobby. Abercrombie & Fitch is notorious for its use
of alluring young people. The Campaign for a Commercial-Free Childhood opposes this
partnership. The group’s director commented, “Abercrombie & Fitch is really among the
worst of corporate predators. A company with such cynical disregard for children’s well
being shouldn’t be able to claim the mantle of healing. . . . And, personally, I find it very
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Section 1: Consumers in the Marketplace
concerning that they named their hospital after an insurance company.” What do you think?
Is this over the line, or does it matter where the money comes from so long as the result is
beneficial?
Students will vary in their response to this challenge as both sides present important points.
Abercrombie recognizes the positive publicity, which will be generated from such a donation,
and charities need funding. At the same time, the center may feel that it is selling out to
accept money from an organization, which behaves at times as though it lacks concern for
children.
(5 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning Abilities,
Course Learning Outcome 1)
4. From time to time advertisers use dark humor to get their messages across, as when a lonely
calorie, repairman, or robot considers suicide. On the other hand, an ad may imply that a
shopper is “mentally ill” if they buy retail. Are these appeals a legitimate way to
communicate a message, and if so under what circumstances?
Such appeals are meant to be humorous rather than fear or guilt based. Humor appeals are
legitimate. The issue is whether this form of humor is in good taste and a good choice for the
brand in question.
(3 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning Abilities,
Course Learning Outcome 1)
5. Name some products or services that your social group uses a lot. State whether you agree or
disagree with the notion that these products help to form group bonds. Support your
argument with examples from your list of products your group uses.
Discussion of this question is similar to that pertaining to the first question. In both cases, the
focus is on whether consumption behavior has a wider meaning—that of group bonding or
identification. The actual products used are not the most important aspect of this discussion.
Instead, the focus should be on consumption behavior as more than the satisfying of primary
(basic/physiological) needs. It is assumed that most students will agree that consumption has
meaning beyond satisfying primary needs. Differences will be found, however, in 1) the
situations in which consumption takes on this additional meaning, 2) the products that do so,
and 3) the form of the broadened meaning. Encourage students to examine the products that
bring forth meaning, as well as their consideration as to why this phenomenon occurs.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking and Analytic Skills, Course
Learning Outcome 1)
6. List the three stages in the consumption process. Describe the issues that you considered in
each of these stages when you made a recent important purchase.
Students can use the material presented in Figure 1.1. The three stages in the consumption
process shown are: 1) prepurchase, 2) purchase, and 3) post purchase. The student selected
should develop unique sets of issues related to each of these phases based on the different
products and purchase situations. Figure 1.1 provides a list of issues for each stage from
both the consumer and marketer’s perspectives.
(3 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcomes
1, 10)
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Chapter 1: Consumers Rule
7. What aspects of consumer behavior would interest a financial planner? A university
administrator? A graphic arts designer? A social worker in a government agency? A nursing
instructor?
The listing of the aspects of consumer behavior corresponding to these positions should
reflect the particular aspects of each position. For example, a financial planner depends on
consumers’ willingness to postpone consumption in order to save and invest money to have
more later. A social worker must be concerned about people’s attitudes toward government,
social work in general, and the role of government in people’s lives. What each of these
positions share, and what should underlie the discussion, is their connection to the
consumption process and the fact that consumers themselves will have different needs and
wants associated with their consumption. Each of the listed parties would attempt to
influence consumers by using a different aspect of consumption, and these differences need to
be discussed and analyzed.
(7 minutes, Chapter Objectives 5 and 6, AACSB: Analytic Skills and Reflective Thinking,
Course Learning Outcome 1)
8. Critics of targeted marketing strategies argue that this practice is discriminatory and unfair,
especially if such a strategy encourages a group of people to buy a product that may be
injurious to them or that they cannot afford. For example, community leaders in largely
minority neighborhoods have staged protests against billboards promoting beer or cigarettes
in these areas. However, the Association of National Advertisers argues that banning targeted
marketing constitutes censorship and thus is a violation of the First Amendment. What are
your views regarding this issue?
Discussion of this question closely parallels discussion of question 2. It is important to guide
discussion to the legitimate interests on both sides. In this situation, however, the discussion
should also examine the legitimacy of each side’s basic point. For what groups should target
marketing not be allowed? On the other hand, under what specific circumstances should
target marketing be allowed? Is the argument that target marketing unduly influences those
who cannot resist its appeal reasonable? Is the counterargument that banishing target
marketing amounts to censorship and is unconstitutional equally specious? Discussion
should initially focus on the validity of each argument and then evolve toward a compromise
that will protect target-marketing efforts while recognizing the needs of society.
(5 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities,
Course Learning Outcome 1)
9. A recent book bemoans the new wave of consumer-generated content, labeling it “the cult of
the amateur.” It compares the social networking phenomenon to the old story about the
monkeys: If you put an infinite number of monkeys in a room with an infinite number of
typewriters, eventually they will (by hitting keys randomly) reproduce all the major works of
literature. In other words, the large majority of user-generated content is at about the same
level, and the future of professionally produced, quality work is in doubt. Do you agree or
disagree with this assertion?
Students who are members of a social networking community or those who actively blog,
might strongly defend the practice and might be offended by the monkey reference. Even
though they might agree that there are many sites with ramblings, rants and raves, they
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Section 1: Consumers in the Marketplace
might also point out serious sites where user-generated content is thought provoking. They
might also mention instances where blogs check facts when the traditional media fails to do
so. An example of this was a blogger proving that documents used by CBS News to discredit
President Bush were forgeries.
Some students might also mention that not all “professionally produced” work can be
labeled as “quality” work. Either students or the instructor could provide examples. It
might also be beneficial to briefly discuss what “quality” means, who judges quality, and if
this is a classic bias against the “new” by the older generation who prefers the traditional.
(7 minutes, Chapter Objective 4, AACSB: Analytic Thinking and Use of Information
Technology, Course Learning Outcome 1)
10. A firm called Global Rainmakers Inc. (GRI) announced a partnership with Leon, a large city
in Mexico, to deploy iris scanning technology it developed to make Leon “the most secure
city in the world." The city is creating a database of irises. It will automatically scan
criminals’ eyes when they are convicted, though other citizens will have the option to choose
whether they want their data included. When residents catch a train or bus, or take out
money from an ATM, they will submit to an iris scan rather than swiping a card. They will
not have to present ID at a bar or a liquor store. The police will monitor these actions, so for
example a convicted shoplifter might not be allowed to enter a certain store. The company’s
CEO claims, "There's a lot of convenience to this--you'll have nothing to carry except your
eyes. In ten years, you may just have one sensor that is literally able to identify hundreds of
people in motion at a distance and determine their geo-location and their intent--you'll be
able to see how many eyeballs looked at a billboard… You can start to track from the point a
person is browsing on Google and finds something they want to purchase, to the point they
cross the threshold in a Target or Walmart and actually make the purchase. You start to see
the entire life cycle of marketing." Therefore, lots of convenience and enhanced security
may be in our future. Is the tradeoff in terms of our privacy worth it, or is “Big Brother”
knocking at the door?
This is a question that does not have an objectively right or wrong answer. The goal is to
make the student think about the issues and to be able to critically examine the arguments on
both sides. The key issue is the trade-off betwen the enhanced convenience/security and the
loss of privacy. Students will have different opinions about whether the trade-off is worth it.
(Some students may bring up the movie “Minority Report” in their response. In the movie,
there is a black market for replacement eyes for people who do not want to be identified.
Others may relate this example to more widespread efforts by cell phone and Internet
companies to track users’ locations and preferences.) The discussion can be related to the
following topics from the chapter: understanding consumer needs; market segmentation;
database/relationship marketing; marketing ethics (particularly how tracked information
might used) and public policy (the ability to avoid targeting advertisements to protected
groups). You may want to bring up efforts by Kraft kiosks to use facial recognition to identify
shopper needs at the point of sale, which brought up similar issues. (See
http://www.fastcompany.com/1716684/whats-for-dinner-intel-and-kraft-can-help-with-thatvideo).
(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities,
Analytic Thinking and Use of Information Technology, Course Learning Outcome 1)
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Chapter 1: Consumers Rule
11. Will the Web bring people closer together or drive each of us into our own private virtual
worlds? Wired Americans are spending less time with friends and family, less time shopping
in stores, and more time working at home after hours. More than one-third of consumers who
have access to the Internet report that they are online at least 5 hours a week. Also, 60
percent of Internet users say they have reduced their television viewing, and one-third say
they spend less time reading newspapers—those that still remain as many fold due to a lack
of readership and advertising revenue.
However, a study by the Pew Internet and American Life Project reported that more than half
of users the group surveyed feel that e-mail actually strengthens family ties. Users reported
far more off-line social contact than nonusers did. These results argue that people spend more
time than ever with others. It is just that they form strong relationships over the Internet
instead of in person. However, the author of the first survey disagrees. As he observes, “If I
go home at 6:30 in the evening and spend the whole night sending e-mail and wake up the
next morning, I still haven’t talked to my wife or kids or friends. When you spend your time
on the Internet, you don’t hear a human voice and you never get a hug.”
A follow-up study found that it works both ways—extroverts tend to make even more friends
on the Web, whereas introverts feel even more cut off from the rest of the world. This has
been termed the “rich get richer” model of Internet use. What is your take on this issue? Is
our wired world turning us into “digital hermits” or does it help us to expand our boundaries
by interacting with other people whom we might not otherwise meet? What are the good and
bad consequences of this profound change in how we interact with other people?
This is another question that does not have an objectively right or wrong answer. The goal is
to make the student think about the pros and cons of computer-mediated interactions and to
be able to critically examine the arguments on both sides. Look for examples where the
student relates these issues to their implications for consumption behavior,including the role
of virtual communities in the decision-making process and how communications and
products have changed to adapt to digital natives. You may want to probe students to take
an additional step to talk about how services have utilized virtual connections to encourage
people to meet offline (e.g. Match.com/eHarmony.com; Meetup.com). For your own
reference, the New York Times published an article on August 10, 2011 called “For the
Plugged In, Too Many Choices,” by Stepanie Rosenbloom that talked about “digital fatigue”
and the potential for alienation through social networking.
Students may have observed the decline in civic clubs (e.g. Rotary, Free Masons, etc.) in the
United States (these organizations are still growing in countries where industry is growing
quickly, drawing people from rural areas to cities, like India and South Korea). Some
suggest there is less need for offline community ties in the United States due to online
connections through facebook and LinkedIn.
(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking and Analytic Skills, Course
Learning Outcome 1)
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Section 1: Consumers in the Marketplace
Application Questions
1. Will consumers trade lower prices for less privacy? Car owners now can let insurance
companies monitor their driving using a new technology in exchange for lower rates.
Customers who sign up for Progressive’s TripSense program get a device the size of a Tic
Tac box to plug into their cars. The device will track speed and how many miles are driven at
what times of day. Every few months, customers unplug the device from the car, plug it into
a computer, download the data, and send them to the company. Depending on results,
discounts will range from 5 to 25 percent. In Great Britain, a major insurer is testing a
program called Pay as You Drive. Volunteers will get a device the size of a Palm computer
installed in their cars. The gadget will use global positioning satellite technology to track
where the car goes, constantly sending information back to the insurance company. Cars that
spend more time in safer areas will qualify for bigger discounts. Of course, the potential
downside to these efforts is that the insurance companies may be able to collect data on
where you have driven, how long you stayed in one location, and so on. Conduct a poll of 10
drivers of various ages where you describe these programs and ask respondents if they would
participate in order to receive a discount on their insurance premiums. What reasons do they
give pro and con? Do you find any differences in attitudes based on demographic
characteristics such as age or gender?
This question of exchanging privacy for lower prices (or convenience, or any of a number of
other benefits) can be applied in many contexts these days, particularly in e-commerce. As
the student reports are discussed, the instructor can relate this issue to various topics. These
include value (what benefits are people gaining and what cost are they “paying”?), ethics
(what are the implications of companies having such a depth of information on consumers?),
public policy (should there be attempts to regulate such business activities?), and
demographic segmentation. Probe students as to what types of trade-offs they have made
(providing personal, credit card, bank account, and other information in order to conduct
business online).
(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities,
Analytic Thinking and Use of Information Technology, Course Learning Outcome 1)
2. While you are talking to car owners, probe to see what (if any) relationships they have with
their vehicles. Do these feelings correspond to the types of consumer/product attachments we
discussed in this chapter? How are these relationships acted on (hint: see if any of the
respondents have nicknames for their cars, or if they “decorate” them with personal items)?
The types of relationships referred to in the text are the following:




Self-concept attachment: The product helps to establish the user’s identity.
Nostalgic attachment: The product serves as a link with a past self.
Interdependence: The product is a part of the user’s daily routine.
Love: The product elicits emotional bonds of warmth, passion, or other strong emotion.
Student reports should attempt to classify their findings based on these relationships. They
should also attempt to show how the consumption patterns that they engage in with their cars
reflect such relationships.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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Chapter 1: Consumers Rule
(5 minutes, Chapter Objectives 1 and 3, AACSB: Analytic Thinking and Reflective
Thinking, Course Learning Outcome 1)
3. Many college students “share” music by downloading clips from the Internet. Interview at
least five people who have downloaded at least one song or movie without paying for it. Do
they feel they are stealing? What explanations do they offer for this behavior? Try to identify
any common themes because of these interviews. If you were devising an ad campaign to
discourage free downloading, how might you use what you have learned to create a
convincing message?
Obviously, ethical issues of right and wrong should emerge here. These issues should reflect
the ethical behavior of the consumer (is it wrong to download for free?), as well as that of
the corporations (are they ripping customers off by charging too much?). Reports should
also revolve around “dark side” issues. Specifically, is this activity stealing? Is it on the
same level as shoplifting? Certainly, the explanations given will fall into the category of
justification. Thus, from the marketer’s perspective, the suggested ad campaign should be
designed in a way to persuade consumers that their justified behavior is wrong.
(5-10 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning
Abilities, Course Learning Outcome 1)
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Section 1: Consumers in the Marketplace
CASE STUDY TEACHING NOTES
UNICEF Wages Guerrilla Warfare
Individual
Summary of Case
This case highlights UNICEF’s use of guerrilla marketing tactics (non-traditional methods to
break through the clutter of competing messages in public areas) to raise money for clean
drinking water and raise awareness of landmine dangers. The case connects guerrilla marketing
to social media.
Suggestions for Presentation
It is suggested that this case be presented with the content on social marketing. The concepts,
which are covered with this case, include social marketing, the horizontal revolution, and the
importance of the social media for marketers.
Suggested Answers For Discussion Questions
1. Do you think UNICEF’s campaigns will be effective? Why or why not?
The focus of this response should be on whether the messages would resonate with
UNICEF’s target audience. Students may recall guerrilla-marketing efforts that did not have
the desired effect (e.g. the Cartoon Network “bomb scare” in Boston, the Sony PSP graffiti
campaign), and may make inferences about whether it is more/less acceptable for a nonprofit
organization to use guerrilla tactics. This discussion can be related to culture and shared
values. You can probe students regarding whether they would be likely to spread the
message by sharing the campaign with others via their social media networks. Students may
also debate whether the guerrilla tactics are appropriate to attract attention to the issues or
whether they may annoy consumers, ultimately doing more harm than good for the
organization, which is related to the second question.
(5 - 7 minutes, Chapter Objectives 3 and 5, AACSB: Analytic Thinking, Course Learning
Outcome 1)
2. Guerrilla marketing tactics deliberately intend to “ambush” consumers in public places. Is
this an effective marketing technique, or is it a violation of our right to go about our business
undisturbed? Do these tactics intrude on our lives – is there a point where they cross a line?
The tactics consumers find appropriate are likely to vary. Thus, students are likely to vary in
their opinions of whether these tactics are acceptable. In this case, students may move the
line of what is acceptable because the efforts are related to a nonprofit organization. On the
other hand, students may be more apt to point out that the machines may deceive thirsty
customer or the landmine stickers create litter/waste, which they may find less acceptable
from a nonprofit organization than they would from a for profit organization. You can relate
the potential for a public outcry/negative response to these efforts to the horizontal
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Chapter 1: Consumers Rule
revolution (not just whether the message will be shared via social media but whether the
message will be shared in a positive or negative light).
(10 - 12 minutes, Chapter Objectives 4 and 5, AACSB: Ethical Understanding and Reasoning
Abilities and Analytic Skills, Course Learning Outcome 1)
3. What are other ways UNICEF can spread the word about their causes such as the dangers of
dirty water?
Students are likely to come up with creative responses to this question. Student responses
may include public relations efforts, social media campaigns, other guerrilla marketing
efforts, and traditional media campaigns.
(5 minutes, Chapter Objectives 4 and 5, AACSB: Communication Abilities and Reflective
Thinking, Course Learning Outcome 1)
NIELSEN NUGGETS
Individual
EXERCISE #1 for Chapter 1: Consumers Rule
Scenario: Awesome Beans is a manufacturer with offerings across many categories. While they
have experienced flat sales in coffee over the past few years, the category has recently begun to
show slight growth. Awesome Beans would like to capitalize on this trend, ensuring they are
receiving at least their fair share of the category growth. The company recently conducted an
attitudinal segmentation study. Survey research resulted in differentiating coffee consumers into
four categories based on their common needs and buying motivation.
Challenge: Awesome Beans wants to identify which of the four segments offers the greatest
opportunity for sales growth. In addition, the company hopes to better understand this attitudinal
segment demographically to determine how best to reach these coffee buyers in terms of
placement and message.
After reviewing the data provided:
1. Determine which segment Awesome Beans should choose to target more aggressively.
Premium People are an attractive target because they are willing to spend more on coffee
and represent at greater than average dollar index in terms of market value (145), but
represent a lower than average Buyer Index for Awesome Beans (96).
(5 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 1)
2. Determine which of the household types identified would be the most appropriate
demographically to target with promotions.
Adult Households are an appropriate target for promotions since 32% of Adult Households
are Coffee Bingers, who are more likely than average to buy from Awesome Beans, while
41% are Premium People, who have a high value and are an attractive market for Awesome
Beans’ growth.
(5 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 1)
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Section 1: Consumers in the Marketplace
3. Which of the demographic dimensions discussed in this chapter should be considered as
potential segment defining variables?
Age and family structure are the defining variables for the third table, but students may also
mention other variables (i.e. income, ethnicity, geography), which are likely to impact
consumption patterns.
(1 minute, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 1)
Attitudinal Group
Coffee Bingers
Café Callers
Flavour Followers
Premium People
% Buyers
29
33
13
24
% Value
25
27
12
35
Index
86
83
96
145
$ Value (000’s)
$74,323
$80,295
$36,433
$102,471
Attitudinal Groups were segmented based on their responses to survey questions. The data above shows:

The size of each group, in terms of share of coffee buyers (% Buyers)

The percent of coffee dollar sales (% value sales)

Dollar Index (% Value/% Buyers x 100). A score of 100 is average.

$ Value – Total Coffee $ spend by consumer segment
Buyer Index vs. All
Shoppers
AWESOME
BEANS
COMPETITOR 1
COMPETITOR 2
COMPETITOR 3
Coffee
Bingers
103
Café Callers
98
95
88
100
Flavour
Followers
104
Premium
People
96
97
101
113
110
95
103
100
105
100
Buyer Index = % Buyers within each group/%Buyers of Total Respondents *100
Demographic
Young Families
Older Families
Older Singles and Couples
Adult Households
Coffee
Bingers
20
15
33
32
Café Callers
12
25
35
28
Flavour
Followers
16
13
45
26
Column figures indicate the percentage each demographic represents within attitudinal segments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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Premium
People
24
10
25
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Chapter 1: Consumers Rule
Additional Support Material
STUDENT PROJECTS
Individual Projects
1.
Ask students about their involvement with social networking sites and/or blogs. Ask
them to explain why they are using them. What benefits do they derive from them? Who
are the target audiences for their information? Have them explain their concerns about
privacy, if any.
Student responses about their involvement with social networking sites and blogs will
vary, and can be used to generate discussion about how consumers influence one another
through electronically mediated communications, to remind the class about the concepts
(e.g. digital natives, virtual communities) and to connect how the web and the horizontal
revolution are changing consumer behavior to students’ personal experiences.
(7 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning
Outcome 1)
2.
Have students explain what it means to be a green consumer. They could report on what
they have done to be “green” and how their behaviors have changed. Have they tried to
influence anybody else to go “green” and how?
The chapter introduces the idea of green marketing, but student perceptions of green
consumers are likely to be based on outside experiences, including their own efforts to be
more environmentally responsible, which will vary. Some students may view green
consumers as the small subset of consumers who willingly make sacrifices to protect the
environment. Others may characterize green consumers as idealistic tree-huggers.
Research indicates most consumers fall somewhere on a spectrum from green to brown
based on their environmental values and their beliefs in their ability to make a difference.
The question about their attempts to influence others can be related to the idea of
consumption communities and group influences on consumption behavior.
(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning
Outcome 1)
3.
This assignment can really be fun for the class and the presenter. Have a student wear or
bring to class a recent clothes purchase. Have them explain how his or her purchase
decision was influenced by different economic, social, cultural, and/or psychological
variables.
The individual responses to this activity will be as varied as the personalities of the
students in your class, but it is a good opportunity to remind students about how
consumers often consume products because of what they mean, not because of what they
do. This assignment can also work well as a collage, where students use images of
products to tell rest of the class about them (and may include products they currently use
or aspire to use in the future). This project can also lead to the discussion of the
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Section 1: Consumers in the Marketplace
connection of the products to the student’s self-concept/identity and provide the student
with the opportunity to explore the economic, social, cultural and/or psychological
variables that make the product desirable.
(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning
Outcomes 1 and 7)
4.
This activity can be done as an extension to or independent of assignment number 3.
Have students explain why they chose the clothes they are wearing to class. Probe on this
one. Was there any implied symbolism? Do all students seem to be dressed in a similar
fashion? Why does this occur? Can marketers learn from this? Do marketers strategically
contribute to this?
This activity is likely to generate some discussion about how consumers use clothing to
identify themselves as part of a group (or distinguish themselves as not part of a group).
You can give students the opportunity to make the connection between group influences
and marketers’ attempts to segment their target audiences. You may also direct students
to consider the role of popular culture in their clothing choices. This activity provides an
opportunity remind students about the concept of economics of information, and to ask
them how advertising and/or product placements contributed to their senses of style.
(5 minutes, Chapter Objectives 3 and 5, AACSB: Reflective Thinking and Analytic
Skills, Course Learning Outcomes 1 and 7)
5.
Assign students to identify at least five instances where a specific marketing tactic
employed by an organization (for profit or non-profit) has had an impact on popular
culture. Examples may include such things as an actual product, product icon,
promotional campaign, celebrity endorsers, corporate sponsorship, product placement, or
others. This impact may be short term (the public temporarily adopting catch-phrases
such as Donald Trump’s “You’re fired!” or Budweiser’s “Whaaaaazup!”) or long term
(the influence of anti-smoking campaigns in reducing the number of smokers).
This activity provides students with the opportunity to recognize that just as marketers
adapt to changing consumer needs, which reflect the influence of movies, music, sports,
books, celebrities, etc., marketers also influence popular culture through products,
advertisements, product placements, and celebrity giveaways. Student examples may also
be tied to the influence of popular culture on rituals (e.g. Sweet Sixteen parties,
weddings, etc.) and social issues.
(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning
Outcome 1)
6.
Have students identify examples of consumer-product relationships in society or in their
own lives. The text identifies four specific types: self-concept attachment, nostalgic
attachment, interdependence, and love. Have students come up with an example of each
of these.
Students should describe one example of each of the following relationships:
 Self-concept attachment: The product helps to establish the user’s identity.
 Nostalgic attachment: The product serves as a link with a past self.
 Interdependence: The product is a part of the user’s daily routine.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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Chapter 1: Consumers Rule

Love: The product elicits emotional bonds of warmth, passion, or other strong
emotion.
This project will help students differentiate between the four types and relate each to
their own personal experiences.
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning
Outcome 1)
7.
Ask students to consider their own consumption practices over the past decade. Have
them list the ways that online consumption activities have replaced or modified their realworld consumption activities.
This activity asks students to reflect on their personal experiences with the web and how
those experiences affected offline consumption activities. It is a good opportunity to
remind students about the availability of niche products, virtual communities, consumer
recommendations, and C2C commerce. It may also provide an opportunity to ask
students about how their online consumption activities are tracked/monitored by
marketers, and what value they receive in exchange for the loss of privacy.
(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning
Outcome 1)
8.
Have each student locate an example of a marketing activity (a promotion itself or a news
article about the actions of a company) is ethically questionable. Have them either write
about or come to class prepared to discuss why they find it questionable. What moral
principle does it violate?
Moral principles are the related to what an individual feels is right/wrong, and usually
reflect the principles of the group(s) and/or culture that influence the individual. For
that reason, students will have different examples of ethically questionable activities.
These examples could include efforts by marketers that have higher social costs than
social benefits; actions that violate what the students consider fundamental human
rights; practices that are unfair to one group, even as they may favor another group; or
examples where a marketer was dishonest or violated consumer trust. Students are likely
to generate diverse examples, and may disagree about when an action was ethically
questionable vs. when the buyer should have known better, alleviating the marketer’s
responsibility.
(15 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning
Abilities, Course Learning Outcome 1)
Group Projects
1.
Have groups select a product of interest (e.g., a car, mp3 player, vacation spot, movie,
sporting event, etc.). Have each person in the group make a list of what they consider to
be the product’s main attributes (both physical and psychological). Compare and contrast
the attributes listed by the women and by the men to see how they may vary. Next, if
there are any age or ethnic differences within the group, see if differences appear. Based
on these differences formulate strategies for appealing to the various subgroups within
your group.
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Section 1: Consumers in the Marketplace
The project gives students the opportunity to see whether preferences differ across
demographic variables that marketers use to segment customers. The responses will vary
depending on the product and the students. You can also ask students to consider how
individual lifestyles affect the attributes of interest, which may help explain similarities
across ethnic and age groups. Students are likely to think about the media they will use
to appeal to different subgroups Encourage them to think retail distribution, the
messages they will use to communicate with their target audiences, the price, and the
characteristics/features of the product they will use to appeal to the different subgroups.
This will demonstrate how knowledge of consumer needs and wants relates to market
strategy.
(15-20 minutes, Chapter Objective 3, AACSB: Analytic Skills and Communication
Abilities, Course Learning Outcome 1)
2.
Have groups collect information on at least three companies that have recently expanded
into countries where they have not previously marketed their products. What kind of
success/failure have they met with? Has each had any kind of impact on the society or
culture entered?
The responses and reasons for success/failure will vary. This project can be used to
reinforce the effects of culture and group influences on consumer behavior, the demand
to have a thorough understanding of consumer behavior of your target audience, and can
be related to the question of whether marketers create needs.
(15-20 minutes, Chapter Objective 5, AACSB: Dynamics of the Global Economy and
Reflective Thinking, Course Learning Outcomes 1 and 17)
3.
Have groups of students find an example of a recent product, service, or program that
was a failure. Business Week, U.S.A. Today, the Wall Street Journal, Fortune, Forbes or
some other marketing publications are excellent sources. Have students explain to the
class how knowledge of consumer behavior, or the lack of it, could have contributed to
the success or failure of the effort.
Similar to #2, the responses and reasons for failure will vary. The project should
reinforce the idea that marketers need to have a thorough understanding of consumer
behavior of their target audiences to understand how to meet their needs and wants. It
can be related to the question of whether marketers create needs. Look for students to
“diagnose” the reasons for failure in a way that goes beyond the surface clues in the
article. It may be a good opportunity for students to explore other sources at the same
time to look for additional clues (e.g. Census data, economic indicators, Lifestyle
Analyst, profiles of competitors, etc.).
(15-20 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning
Outcome 1)
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Chapter 1: Consumers Rule
4.
Have your group go online to three Web pages of your choice. Demonstrate how the Web
pages segment markets, collect information from the consumer (after the person has
come to the Web page), and might be used to build a database.
The bases for segmentation and information the websites collect will depend on the
websites you select. This project provides an opportunity to reinforce the different ways
marketers segment their target audiences, the role of database marketing in consumer
behavior and the way the Web is changing consumer behavior.
(10-15 minutes, Chapter Objectives 3 and 4, AACSB: Reflective Thinking and the Use of
Information Technology, Course Learning Outcome 1)
5.
Each group should locate an example of a company that is heavily involved in social or
green marketing. Make a report on the activities of the company. Compare this company
to a direct competitor that is not so extensively involved in such activities. What are the
advantages/disadvantages that the social/green approach has over the other?
Student responses should reflect an understanding of what social or green marketing is.
Some students may confuse social marketing with marketing via social media, so it is
important to identify differences between the two concepts. The comparison with the
competitor should consider the way the company uses or does not use their social/green
marketing efforts to position their offerings. If possible (it will depend on the
company/industry), students should analyze how social/green marketing efforts relate to
the company’s bottom line, consumer attitudes toward the company, and brand loyalty.
(20 minutes, Chapter Objective 5, AACSB: Analytic Skills, Course Learning Outcome 1)
6.
Have each group discuss what the members feel is the most unethical practice being
employed on the Internet by marketers. Have them reach a consensus on this matter. Each
group should comment on how to remedy the situation and be prepared to share their
findings with others.
Similar to individual project #8, students will have different examples of unethical
practices. Asking students to discuss why the practices are unethical and to reach
consensus is a good way to force students to clarify their stances on the issue and
highlight individual differences between consumers. This will require students to analyze
the evidence and support their arguments regarding what is “wrong” and what is “most
wrong.” Asking students how to remedy the situation takes the exercise a step further
since students not only have to agree on the problem, but also on the best way to solve
the problem. Some students may favor public policy changes, while others may argue in
favor of self-regulation. You may find it useful to have groups debate about why the
practice they chose is the most unethical.
(15-20 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning
Abilities, Analytic Skills and Communication Abilities, Course Learning Outcome 1)
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Section 1: Consumers in the Marketplace
eLAB
Individual Assignments
1.
Visit www.facebook.com, www.myspace.com, or www.orkut.com and determine to
whom they are trying to appeal. Are these sites appealing to the same target audience or
to different segments? If the audience is the same, what is each site doing differently to
market themselves? If the audience is different, who are they? Are their privacy policies
raising any concerns for you?
This activity is similar to Group Activity #4, and provides students with an opportunity to
think about market segmentation, positioning an offering based on the target audience’s
needs, and privacy concerns on the Internet. Look for students to demonstrate
understanding of market segmentation, why it is used, how it is used, and the trade-offs
associated with collecting information about consumers.
(10-15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning
Outcome 1)
2.
Go to www.rockstargames.com. Click on the link for “games.” Select three different
video games marketed by this company. Discuss both sides of an ethical debate for each.
This activity provides students with an opportunity to think not only think about what they
consider right and wrong, but also to analyze the issue from the opposite perspective.
Encourage students to try to support the debate from each side, rather than making one
side obviously weaker so their preferred side is a clear winner. It is good practice for
building arguments and thinking critically about issues.
(20 minutes, Chapter Objective 5, AACSB: Ethical Understanding and Reasoning
Abilities, Course Learning Outcome 1)
3.
Go to www.aarp.org. The American Association of Retired Persons is one of the largest
lobbying and citizen action groups going today. Projections indicate that, as our nation
ages, this organization will only get larger and more influential. After visiting this
website, list five ways the organization is trying to influence corporate attitudes toward
the older consuming public. What type of networks is the organization trying to build?
How would database information from this group be useful to a marketer?
This activity provides students with an opportunity to get more familiar with the needs of
a large and important demographic segment and shows an example of how one group is
taking action to address those needs. It also provides an opportunity to revisit the
concept of database marketing and why it is useful to marketers.
(10-15 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning
Outcome 1)
4.
Go to www.netsmartz.org. This youth-oriented website presents issues and potential
products to teens. If you were the marketing manager for a new bottled water product that
was seeking a national youth audience, plan a strategy for your new product introduction
using this website as one of your primary promotional springboards. List what you would
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Chapter 1: Consumers Rule
do, why you would do it, and what results you might expect. What does a website such as
this teach you about consumer behavior?
Netsmartz.org is run by the National Center for Missing and Exploited Children and has
different areas dedicated to parents, educators, law enforcement, teens, tweens and kids.
Look for students to identify how they would position the product and utilize the selected
portion(s) of the website that reaches their target audience. This project provides an
opportunity to explore the differences between the person who buys the product, the
person who consumes the product, and the person who influences the purchase.
(10-15 minutes, Chapter Objectives 3 and 4, AACSB: Analytic Skills and Reflective
Thinking, Course Learning Outcome 1)
5.
Go to www.moveon.org. What is the main variable that this site uses to segment the
American public? What is the resulting segment to which this site is attempting to
appeal? Extensively, describe this segment in terms of demographic and psychographic
variables. What issues seem to be raised on this site? If you were an advertiser, would it
be a good idea to sponsor a message on this site? Explain.
Moveon.org is a civic action group that segments the American public based on political
ideals. Opinions are one of the facets of psychographic segmentation (activities,
interests, opinions). The website notes the organization is a non-partisan effort to give
the public a voice in policymaking. However, the separate PAC by the same name raises
money to support Democrat candidates. Unlike other political action groups, its donors
tend to give small donations via the web. Students may make inferences about the
demographics and psychographics of the group’s audience based on the issues raised on
the website, and the group’s use of the web as a primary communication vehicle. Student
opinions of whether it would be a good idea to sponsor a message on the site may depend
on these inferences, but students may also point out that site sponsorship by corporate
interests contradicts the group’s mission to reduce corporate America’s influence over
Washington. An advertiser for a social initiative may not be as susceptible to this
challenge.
(15 minutes, Chapter Objective 5, AACSB: Analytic Skills and Reflective Thinking,
Course Learning Outcome 1)
6.
Visit www.alesyabags.com and identify the factors used to segment the company’s
target audience. How does the company use social media to engage its target audience?
Given what you know about the target audience, do you feel Alesya Bags’ use of social
media is effective or ineffective? Explain why.
Students should identify the company segments the target audience based on gender, age,
occupation, income, and lifestyle. Students should also recognize the role of social media
in the target segments’ lives and the role of engagement via social media tools in
developing a lifestyle brand.
(10-15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning
Outcome 1)
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Section 1: Consumers in the Marketplace
Group Assignment
Go to www.casino.com. Take some time as a group to become familiar with the various sections
of this site. What are the ways that this site has been designed to encourage new users to sign up,
and existing users to increase their level of online gambling? Is this website encouraging
addictive consumption (where consumer addiction is defined as physiological and/or
psychological dependency on products or services)? Is this unethical? After having completed
this portion of the assignment, visit www.ballygaming.com. What is the product being sold by
this company? In what ways could this company be contributing to unethical behaviors?
Casino.com is likely to raise varied responses based on student opinions of gambling as
entertainment and gambling as a societal threat. There may be different opinions within the
group. This conversation can be tied back to the question of whether marketers create needs and
can introduce a discussion about marketer responsibility for consumer addiction to gambling.
(20-25 minutes, Chapter Objective 5, AACSB: Analytic Skills and Reflective Thinking, Course
Learning Outcome 1)
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