Under what conditions would a firm attempt to influence Generic problem recognition Why?

What is meant by the term situation? Why is it important for a marketing manager to understand situational influences on purchasing behavior?

• Situational Influence - is all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior.
• marketers must understand how purchase situations influence consumers in order to develop marketing strategies that enhance the purchase of their products

What are the four broad categories of situations (when they affect the consumer)?

1. Communications
2. Purchase
3. Usage
4. Disposition

What are the five key dimensions or characteristics of situation (what happens to affect the consumer)?

1. Physical surroundings 2. Social surroundings 3. Temporal perspective 4. Task definition 5.Antecedent states

What is store atmosphere? What is atmospherics? What is a servicescape?

• Store atmosphere - The sum of all physical features of a retail environment.
• Atmospherics - The process mangers use to manipulate the physical retail environment to create specific mood responses in shoppers.
• Servicescape - Refers to atmosphere when describing a service business such as a hospital, bank, or restaurant

How do the four components of physical surroundings affect consumer behavior?

Physical surroundings – include décor, sound, aromas, lighting, weather, and configurations of merchandise or other materials surrounding the stimulus object

Components: Colors, Aromas Music, Crowding

1. Color-certain colors and color characteristics create feelings of excitement and arousal that are related to attention
2. Aromas- scent fragrances are highly individualized
3. Music- influences consumers' moods
4. Crowding the store generally produces negative outcomes for both the retail outlet & consumer

How might the receipt of a gift affect the relationship between the giver and the receiver? What is a self-gift?

a)  Task definition- the reason the consumption activity is occurring

b)  Gifts are given to elicit return favors in the form or actions or other gifts

c)  Gifts communicate symbolic meaning on several levels

• Price is a measure of esteem the giver has for the receiver
  
• image and functionality of the gift implies the giver's impression of the image and personality of the receiver
• reflects on image and thoughtfulness of the giver

d) self-gift- buying things for yourself rather than others

How does time pressure affect consumer behavior?

What is the difference between moods and momentary conditions?

a)  Antecedent states – features of the individual person that are not lasting characteristics such as momentary moods or conditions

• Moods – are transient feeling states that are generally not tied to a specific event or object
• Momentary conditions – reflect temporary states of being such as being tired, having extra money, being broke.

Flowers are "appropriate" gifts for women for many situations but seem to be appropriate for men only when they are ill. Why is this so? How might 1-800-FLOWERS change this?

a)      Women tend to receive flowers b/c that’s the one known item that is specifically intended for women, if men receive flowers others might assume that he is incompetent.

b)    Have a beer bucket with flowers

c)      Give flowers that have significant value to the man or choose an item that the individual man appreciates.

How might your physical surroundings affect you during a communication situation (when you hear/see an ad)?

How might your physical surroundings affect you during a purchase situation?

How might your physical surroundings affect you during a usage situation?

How might your physical surroundings affect you during a disposition situation?

How might your social surroundings affect you while grocery shopping?

How might your social surroundings affect you while clothes shopping?

How might your social surroundings affect you while gift shopping?

How might your antecedent state affect you during a communication situation (when you hear/see an ad)?

How might your antecedent state affect you during a purchase situation?

How might your antecedent state affect you during a usage situation?

How might your antecedent state affect you during a disposition situation?

What are the stages of the consumer decision process?

1.Problem recognition 2. Information search 3. Alternative evaluation and selection 4. Outlet selection and purchase5. Post-purchase processes

What is meant by purchase involvement? How does it differ from product involvement? How does purchase involvement affect the consumer decision process?

a)      Purchase involvement – is the level of concern for, or interest in the purchase process triggered by the need to consider a particular purchase

i)        Short term involvement

b)      Product involvement – long term involvement, enduring, the level of concern for or interest in the product

c)      The higher the involvement in the purchase, the more complex the decision is for the consumer.

d)      The consumer puts forth more effort the higher the involvement

How do nominal, limited, and extended decision making differ? How do the two types of nominal decision making differ?

Nominal decision making = habitual problem solving = habitual decision making — Repeat purchase versus brand loyalty Limited decision making = limited problem solving Extended decision making = extended problem solving

What products do you purchase using nominal, limited, and extended decision making? Under what conditions would these products be associated with a different form of decision making?

Describe a recent consumption decision you made using (be sure to talk about your level of involvement) nominal decision making (repeat purchase)?

Describe a recent consumption decision you made using (be sure to talk about your level of involvement) nominal decision making (brand loyal)?

Describe a recent consumption decision you made using (be sure to talk about your level of involvement) limited decision making?

Describe a recent consumption decision you made using (be sure to talk about your level of involvement) extended decision making?

What is problem recognition? 

-Problem recognition – is the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision making process

What influences the consumer?s motivation to resolve a recognized problem? 

Types of consumer problems

1. Active problem – is one the consumer is aware of or will be aware of in the normal course of events

• Require the marketer to only convince consumers that its brand is the superior solution
  

2. Inactive problem – is one of which the consumer is not aware

• Marketers must convince the consumer that they first have a problem and then that their brand is the solution
  

What is the difference between an active and an inactive problem?

-Actual state – is the way an individual perceives his or her feelings and situation to be at the present time

-Desired state – is the way an individual wants to feel or be at the present time (1)  The desire to resolve recognized problems depends on two factors:

(2)  The magnitude of the discrepancy between desired and actual states

(3)  The relative importance of the problem

Name a recent problem you recognized and describe your actual and desired state, your level of motivation, and whether you solved the problem or not.

What are the methods for discovering problem recognition?

Intuition- analyze a given product category and logically determine where improvement can be made

Survey- asks relatively large numbers of individuals about the problems they are facing

Focus groups– composed of 8-12 people brought together to discuss a particular topic

A

Five approaches to discovering consumer problems using methods listed above:Activity analysis, Product analysis, problem analysis, (these three use surveys and focus groups) human factors research, and emotion research

Activity– focuses on a particular activity

Product– examines the purchase of a particular product or brand

Problem– starts with a problem & asks respondents to indicate which activities, products, or brands are associated w/ those problems

Human factors – attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effects on these capabilities of lighting, temperature and sound

Emotion-

How do marketers respond to consumer problems?

Structure the marketing mix to solve the problem

Responding to consumer problems (p507)

• Ex. After graduation you will have to solve problems w/the onset of financial independence and a major change in lifestyle.
• Reflects how various firms' knowledge that many individuals in your same situation face problems that their products will solve
• Ex.weekend and night store hours and the rapid growth of Internet stores are a response of retailers to the consumer problem of limited weekday shopping opportun.

How would you discover and then solve consumer problems relevant to the marketer of health food store?

How would you discover and then solve consumer problems relevant to the marketer of public library?

How does generic problem recognition(GPR) differ from selective problem recognition(SPR)? Under what conditions would a firm attempt to influence generic problem recognition? Why?

GPR-involves a discrepancy that a variety of brands within a product category can reduce
~A firm will attempt to influence generic problem recognition when the problem is latent or of low importance and one of the following conditions exist   (1) Early in the product life cycle   (2) Firm has high % of market share

(3) E xternal search after PR is apt to be limited

(4) Industry wide cooperative effort

SPR involves a discrepancy that only one brand can solve

How could you activate problem recognition among college students for the following: the student recreation center

How could you activate problem recognition among college students for the following: using a designated driver when drinking.

How can a firm suppress problem recognition? For kinds of products would firms want to suppress problem recognition?

marketers don't want current customers to recognize problems with their brands

• effective quality control and distribution are imp. in this effort
• packages and package inserts that assure the consumer of the wisdom of the purchase are also common

Ex. A Newport cigarette advertisement showed a happy, laughing couple under the headline , "alive with pleasure"-- interpreted as an attempt to minimize any problem recognition caused by mandatory warning at the bottom of the advertisement

How do the company websites featured in the chapter opening example help consumers with their information search?

1. Nike created a site not just for information about the products but for workout use as well to keep consumers coming back
2. Kraft- provides quick and easy help with food planning and preparation
3. Kodak- has various sections that provide product information to both amateur consumers and professional users

relevant information from long- term memory is used to determine if a satisfactory solution is known, what the characteristics of potential solutions are, what are appropriate ways to compare solutions

the search process is focused on external information relevant to solving the problem, which can include independent sources, personal sources, marketer-based information and product experience

What is ongoing research?

is done both to acquire information for possible later use and because the process itself is pleasurable

What are the types of information sought in an external search for information? Give examples of each.

Evaluative Criteria-the desired product characteristics Appropriate Alternatives

• Awareness set – brands that are initially thought as potential solutions
  
• Evoked /consideration set – brands/products one will evaluate the solution of a particular consumer problem
  
• inept set- brands/products found unworthy of further consider.
• inert set- brands aware of, but indifferent toward

Alternative Characteristics- Requires the consumer to gather information about each band on each pertinent evaluation criterion

What are the sources of information search? Which are most credible? *credible

• Internal (memory) *prior searches on the web
  
• Personal sources – friends and family *chatrooms, blogs, social network sites
  
• Independent – consumer groups, paid professionals, govt agencies *online consumer advocacy groups, govt agencies
  
• Marketing – advertising, sales personnel * less credible—banner ads, corporate web sites
  
• Experiential (not experimental) – inspection or product trial * virtual experiences (videos, Intellifit technology)
  

List your evoked set, inert set, and inept set for the following product categories.  Record the number of alternatives in each column. a) beer; b) wireless phone providers; c) deodorant; d) gasoline; e) candy.

a)      Beer

b)      Wireless phone providers

c)      Deodorant

d)      Gasoline

e)      Candy

List sources of information college students might use for the following. a) movies; b) restaurants; c) apartment; d) dorm/apartment furnishings; e)) Business suit; f) Father's day gifts.

a)      Movies

b)      Restaurants

c)      Apartment

d)      Dorm/apartment furnishings

e)      Business suit

f)      Father’s Day gifts

What is behavioral targeting? What is search engine optimization?

• Behavioral targeting – involves tracking consumer click patterns on a website and using that information to decide on banner ad placement
  
• Search engine optimization – involves techniques designed to ensure that a company’s web pages “are accessible to search engines and focused in ways that help improve the chances they will be found”
  

How do nonsearchers, limited information searchers, and extended information searchers differ in their search for information?

• Nonseachers – little or no sear
  
• Limited information seachers – low to moderate searching
  
• Extended information searchers – high search
  

What are the costs and benefits of search?

How do market characteristics influence a consumer?s information search effort?

• Market characteristics include the number of alternatives, price range store distribution, and information availability.
  
• Consumers perceptions of, or beliefs about, the market characteristics influence shopping behavior, not the actual characteristics
  
• Perceived range of prices among equivalent brands in a product class is a major factor in stimulating external search
  
• Store distribution – affects the number of store visits a consumer will make before purchase
  
• Info. avail- directly related to info use
  

How do consumer characteristics influence a consumer's information search effort?

satisfying exp. w/ a particular brand is a positively reinforcing process

External search tends to increase w/ various measures of social status

Age of shopper is inversely related to info search People moving into new stages of the household life cycle have a greater need for external info than established households

Consumers highly involved w/a product category generally seek info relevant to product category on a ongoing basis

Perceived Risk- associated w/unsatisfactory product performance

How do product characteristics influence a consumer?s information search effort?

• Product differentiation – feature and quality variation across brands – is associated with increased external search
  
• Positive products – those whose acquisition results in positive reinforcement
  
• Negative products – shopping for is less pleasant

How do situational characteristics influence a consumer?s information search effort?

• Temporal perspective – the amount of time available to do information searches is inversely related to the amount of searching
  
• Lower energy shoppers will gather less information
  
• Pleasant physical surroundings increases the tendency to search for information, at least within that outlet
  
• Social surroundings will affect the search depending on the situation
  

What are the differences between affective, attribute-based, and attitude-based choice processes?

• Attribute-based choice – requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparison across brands
  
• Attitude-based choice – involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of purchase
  
• Affective – choice based on feelings and emotions, how the choice makes the user feel, more holistic
  

What are the differences between consummatory motives and instrumental motives?

• Consummatory motives – underlie behaviors that are intrinsically rewarding to the individual involved, bought the product just to consume the product
  
• Instrumental motives – activates behaviors designed to achieve a second goal
  

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a present for your romantic partner. Why?

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a present for your Mom and Dad. Why?

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a movie. Why?

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a motorcycle. Why?

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a cat. Why?

Would you use an attribute-based, attitude-based, or affective choice process for each of the following: a smart phone. Why?

Which evaluative criteria would be important in the purchase of each of the products in question #3?

Discuss surrogate indicators that could be used to evaluate perceived quality for each of the following. a) a new shampoo; b) a personal trainer; c) a new movie; d) a cat; e) a university; f) a business suit.

a)      a new shampoo

b)      a personal trainer

c)      a new movie

d)      a cat

e)      a university

f)      a business suit

Name a product category for which (justify your selections) the brand is generally selected first and the outlet second.

Ex. A consumer considering buying a notebook computer may first select a brand and then purchase it from the outlet with the lowest price, easiest access, best image, best service, or other relevant attributes 

Name a product category for which (justify your selections) the outlet is selected first and the brand second.

Ex. The consumer might be familiar with one store-- Campus Computers-- and decide to visit the store and select a computer from the brands available there

Name a product category for which (justify your selections) one for which brand and outlet are made simultaneously.

Ex. A consumer might choose between a second-preferred computer at a store with friendly personnel and excellent service facilities vs. a favorite computer at an impersonal outlet with no service/facilities

What is a retail outlet? What is in-home shopping?

• Retail outlet: refers to any source of products or services for consumers.
  
• In-home shopping: occurs when consumers acquire products through mail, telephone or computer orders.
  

What is multi-channel shopping and what implications does it hold for retailer strategy? How can marketers convert browsers to buyers (CI-17-1)?

Multi channel shopper – is any consumer who browse and purchase in more than one channel

• Often use information that was gathered in one channel and then purchase it in a different channel
  

Outlet image: a) What is a store image and what are its dimensions and components?

Store image–given consumer’s/target market’s perception of all the attributes associated w/retail outlet

• Merchandise–quality, selection, style, & price
  
• Service–layaway plan, sales personnel, easy return, credit, delivery
  
• Clientele–customers
  
• Physical facilities–cleanliness, store layout, shopping ease, attractiveness
  
• Convenience–location and parking
  
• Promotion– advert.
  
• Store atmosphere–congeniality, fun, excitement, comfort
  
• institutional- store reputation
  
• post-transaction-satisfaction
  

Outlet image: b) Compare/contrast Internet retailer image and bricks-and-mortar store image.

• Usefulness – good product offers and information, value aligned with interests
  
• Enjoyment – fun, attractive, pleasant to browse
  
• Ease of use – easy to use and navigate, flexible site
  
• Trustworthiness – reputation, information safety and security
  
• Style – helpful, friendly, knowledgeable, calm
  
• Familiarity – advertising online and offline, general familiarity
  
• Settlement – fast and flexible delivery and transactions
  

Outlet image: c) Does the image of a retail outlet affect the image of the brands it carries?

Outlet image: d) Do the brands carried affect the image of the retail outlet?

Store brands - Closely related to store image this occurs when the store or outlet is the brand

Describe your store image for the following. Be sure to mention some of the dimensions of store/online retailer image from p. 594. a. Nordstrom; b) Wal-mart; c) JC Penney; d) Amazon.com; e) Expedia.com

How is selection of a store and purchase behavior affected by its own store brands, the types of advertising and specials it has, its location, and its size?

What social, physical, and/or economic (financial, time, effort) risks might be associated with the following products and how might the risks affect the outlet choice behavior of consumers? How can retailers reduce the risk? A. Business suit; b) Haircut; c) Moutain bike d) Mouthwash; e) DVD Player;

Describe someone you know (not by name) who matches the following motivation-based shopping orientations of college students described in the text. Explain your answer. A)Chameleons; b)Collectors/Gathers; c)Foragers; d)Hibernants; e) Predators; f) Scavengers.

What are unplanned purchases? What are the categories of unplanned purchases?

Unplanned purch – made in a retail outlet that are different from those the consumer planned to make prior to entering that retail outlet

• Specifically– a specific brand/item decided on before visiting the store & purchased as planned
  
• Generally– a pre-store decision to purchase a product category such as vegetables but not a specific item
  
• Substitute– change from a specifically/generally planned item to a functional substitute
  
• in-store decision= generally planned+substitute+unplanned purchases
  

Give an example of each type of in-store and/or online influence that can influence brand and product choice. A) Point of puschase display b) Price reductions and promotional deals c) Outlet atmosphere d) stockouts e) Website functioning and requirements f) Sales personnel

• Point-of-purchase display (POP) – any item displayed at the point of sale to try to lift sales
  
• Price reductions & promotional deal – generally accompanied by the use of some POP, once again trying to lift sales
  
• Outlet atmosphere– same as store atmosphere
  
• Stockouts- when product desired by consumer is out of stock
  
• Sales personnel– can enhance the purchase process for consumers in high involve. situations
  
• Web site functioning & require.- managing charges, buying process, prevent stockout
  

What is postpurchase dissonance? What characteristics of a purchase situation are likely to contribute to postpurchase dissonance? What actions do consumers take to avoid postpurchase dissonance before the purchase?

Describe 4 tactics consumers use to reduce dissonance after a purchase? A) Increasing the desirability of the brand purchased; b) decreasing the desirability of rejected alternatives; c) decreasing the importance of the purchase decision; d) reversing the purchase decision.

What specific action would you recommend to the marketer to prevent or reduce postpurchase dissonance, and what effect would you intend it to have on the consumer for the following? A) Charitable donation; b) airline vacation package; c) dance lessons; d) new car; e) microwave overn; f) tropical fish

What is use innovativeness? How can use innovativeness increase sales? Can use innovativeness hurt a firm? How?

Use innovativeness – refers to a consumer using a product in a new way

Can increase sales by increasing the potential market for the product

If the use is potentially harmful to the customer or others then the firm could be harmed.

• Product non-use – occurs when a consumer actively acquires a product that is not used or used only sparingly relatively to its potential use
  

What is meant by the disposition of products and product packaging, and why does it interest governmental regulatory agencies and marketers? What is e-waste and why is it a growing concern? Is the US more wasteful than other countries?

• Disposition is nothing more than the disposal of the product and or its packaging before, during, or after consumption
  
• E-waste –Waste caused by an exploding demand and short product life-spans for high-tech gadgets such as cell phones, personal computers, and various other personal electronics devices.
  

What factors influence consumer satisfaction and how do they influence it? What is the difference between instrumental and symbolic performance? What is affective performance?

Determinants of satisfaction and dissatisfaction

• core service failure, service encounter failure, price, inconvenience,      responses to service failure, attraction by competitors, ethical problems and involuntary switching

Instrumental performance – related to the physical functioning of the product

Symbolic performance – relates to aesthetic or image-enhancement performance

Affective performance – is the emotional response tat owning or using the product or outlet provides

What courses of action can a consumer take in response to dissatisfaction? Which are used most often?

Firms need to satisfy consumer expectations by:

• Creating reasonable expectations through promotional efforts
  
• Maintaining consistent quality so the reasonable expectations are fulfilled
  
• Try to satisfy the dissatisfied consumer to the best of their ability
  
• Use buzz to their favor
  

Describe the last time you were dissatisfied with a purchase. What action did you take? Why?

Name a brand, service, or outlet for which you are a committed customer and one for which you are a mere purchaser and explain why.

How do relationship marketing and customer loyalty programs help develop brand loyalty and committed customers?

What is CARU? What does it do? What are some of its rules?

Children's Advertising Review Unit(CARU)- the American advertising industry's primary self-regulatory body, the National Advertising Division (NAD), maintains a special unit to review advertising aimed at children Rules:

What are the major concerns in marketing to children (see pages 700-709)?

Describe the following types of messages and your attitudes toward them (e.g., favorable/unfavorable, cognitive, affective, behavioral components): a) in-school ads; b) ads in classrooms; c) corporate-sponsored educational materials and programs; d) corporate-sponsored contests and incentive programs

What rules, if any, should govern advertising and promotional messages presented in the classroom?

Describe the key provisions of The Rule under COPPA. Is it fair that nonprofits are not covered by these rules?

What are the 3 major concerns with marketing communications targeting adults?

What are the major regulatory issues with respect to products?

What are the major regulatory issues with respect to prices?

A television advertisement for General Mills? Total cereal made the following claim: ?It would take 16 ounces of the leading natural cereal to equal the vitamins in 1 ounce of fortified Total.? The Center for Science in the Public Interest filed a petition against General Mills claiming that the advertisement is deceptive. It was the center?s position that the claim overstated Total?s nutritional benefits because the cereal is not 16 times higher in other factors important to nutrition. a) Is the claim misleading? Why?; b) How should the FTC proceed in cases such as this?; c) What are the implications of cases such as this for marketing management?

Turkey ham looks like ham and tastes like ham but it contains no pork; it is all turkey. A nationwide survey of consumers showed that most believed that the meat product contained both turkey and ham. The USDA approved this label based on a dictionary definition for the technical term ham: the thigh cut of meat from the hind leg of any animal. One court ruled the label to be misleading but was overruled by a higher court. a) is the label misleading? Why?; b) Discuss how consumers might process this information and form perceptions about the product using the stages of the perception process; c) How should the FTC proceed in cases such as this?

How much and what type, if any, advertising should be allowed on television programs aimed at children? A) under 6; b) 6-9; c) 10-12

Are the self-regulatory attempts by the food and beverage industry enough in regard to regulating food marketing to children? What, if anything, additional would you propose? Explain.

?Since riding tricycles is a major cause of accidental injury to young children, the product should be banned.? State and defend your position on this issue (the first part of the statement is true).

To what extent, if at all, do you use nutrition labels to guide your purchases? Why?

Look at Study Questions Chapter 16 # 7!!!!

From Dr. Smith's web page there is a link to the text book that has additional flashcards.  Review them!

How can a firm cause problem recognition?

What is Generic problem recognition?

What role does problem recognition play in the consumer decision making process?

What are the two factors that determine the level of a consumer's desire to resolve recognized problems?