Chapter 5 Consumer Markets and Consumer Buyer Behavior

Learning Objectives 1. Define the consumer market and construct a simple model of consumer buyer behavior. 1. Name the four major factors that influence consumer buyer behavior. 2. List and define the major types of buying decision behavior and stages in the buyer decision process. 3. Describe the adoption and diffusion process for new products. Chapter Overview In this chapter, we continue our marketing journey with a closer look at the most important element of the marketplacecustomers. The goal of marketing is to affect how customers think about and behave toward the organization and its market offerings. However, to affect the whats, whens, and hows of buying behavior, marketers must first understand the whys. In this chapter, we look at final consumer buying influences and processes. Chapter Outline 1.0 INTRODUCTION Few brands engender such intense loyalty as that found in the hearts of core Apple buyers. What makes Apple buyers so loyal? Ask the true believers, and theyll tell you that Apples products work better, do more, and are easier to use than other products. However, the behavior of Apples customers has much deeper roots. Because owning an Apple product is an act of self-expression, Apples top priority is to understand its customers at a deep, personal level. Apples obsession with understanding customers and deepening their Apple experience shows in everything the company does. This obsession has helped Apple to build a core segment of enthusiastic disciples. For example, a recent survey showed that Apple has the strongest repurchase intent of any personal computer brand: 81 percent of households with an Apple as their primary home personal computer plan to repurchase an Apple. This consumer love affair has tripled Apple sales to a record $36.5 billion and earnings have quadrupled, in spite of the worst economic conditions since the Great Depression. To say Apple is hot is an understatement. Gadget geeks around the world have crowned Apple as the keeper of all things cool. Opening Vignette Questions 1. Apple is the keeper of all things cool. What does this statement say about the typical consumer of Apple products? 2. What are Macolytes? 3. Are consumers of Apples products simply buying good hardware and software?

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The Apple example shows that factors at many levels affect consumer buying behavior,atermthatreferstothebuyingbehavioroffinalconsumersindividuals and households that buy goods and services for personal consumption. All final consumers make up the consumer market, which consists of more than 6.8 billion people worldwide who consume an estimated $70 trillion worth of goods and services each year. This chapter examines the fascinating array of factors that affect the behavior of consumers. 2.0 MODEL OF CONSUMER BEHAVIOR Marketers can study actual consumer purchases to find out what they buy, where, and how much; however, learning the whys of consumer behavior is not so easy. The central question for marketers is as follows: How do consumers respond to various marketing efforts the company might use? The starting point is the stimulus-response model of buyer behavior (see Figure 5.1, p. 159 in your textbook). Marketing stimuli consist of the four Ps: product, price, place, promotion. Other stimuli include economic, technological, political, and cultural events in the buyers environment. Marketers want to understand how the stimuli lead to responses inside the consumers black box, which contains his or her characteristics and decision process. 3.0 CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR Cultural, social, psychological, and personal characteristics affect consumer purchases. Even though they cannot control such factors, marketers must consider them. 3.1 Cultural Factors Marketers need to understand the role played by the buyers culture, subculture, and social class. 3.1.1 Culture

Culture is the most basic cause of a persons wants and behavior. Every group or society has a culture, and its influence on buying behavior varies from country to country. A failure to adjust to these cultures can result in ineffective marketing and embarrassing mistakes. Marketers are always trying to spot cultural shifts. 3.1.2 Subculture

Subcultures are groups of people with shared value systems based on common life experiences and situations. Because subcultures make up important market segments, marketers often design products and marketing programs targeted to their needs. Hispanic American Consumers. The nations nearly 50 million Hispanic consumers have an annual buying power of over $950 billion, a figure that is expected to grow to $1.4 trillion by 2013. Although Hispanic consumers share many characteristics and behaviors with the mainstream buying public, there are also distinct differences. Companies such as P&G, AT&T, McDonalds, Toyota, Walmart, Burger King, and many others have developed special targeting efforts for this large group of consumers.

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African American Consumers. With an annual buying power of $913 billion, estimated to reach $1.2 trillion by 2013, the nations 42 million African American consumers also attract much marketing attention. In recent years, many companies have developed special products, appeals, and marketing programs for African Americans. For example, P&G sponsors the My Black Is Beautiful movement, which includes traditional television programming and Webisodes featuring interviews, vignettes, and style tips focusing on the beauty of African American women. Asian American Consumers. Asian Americans now number nearly 15 million in the United States, and they wield more than $500 billion in annual spending power, expected to reach $750 billion in 2013. Many firms such as State Farm, Walmart, McDonalds, Verizon, and Toyota are now targeting the Asian American market. Mature Consumers. As the U.S. population ages, mature consumers are becoming a very attractive market. By 2015, people ranging in age from 50 to 75 will account for 40 percent of adult consumers; by 2030, adults 65 and older will represent nearly 20 percent of the population. Moreover, the 50-plus consumer segment now accounts for nearly 50 percent of all consumers spending, more than any current or previous generation. Todays mature consumers create an attractive market for convenience services; and their desire to be active and look as young as they feel makes them good candidates for cosmetics and personal care products, health foods, fitness products, and more. 3.1.3 Social Class

Social classes are societys relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social class is not determined by a single factor; rather, it is a combination of occupation, income, education, wealth, and other variables. Marketers are interested in social class because people within a given class tend to exhibit similar buying behavior. 3.2 Social Factors A consumers behavior is also influenced by social factors, such as his or her small groups, family, and social roles and status. 3.2.1 Groups and Social Networks

Many groups affect a persons behavior. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups provide direct (face-to-face) or indirect points of comparison or reference in forming a persons attitudes or behavior. Word-of-Mouth and Buzz Marketing. Word-of-mouth influence can have a powerful impact on the buying behavior of consumers. Most word-of-mouth happens naturally; however, marketers can help create positive conversations about their brands. Marketers want to reach opinion leaderspeople within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Buzz marketing involves enlisting or creating opinion leaders to serve as brand ambassadors who spread the word about a companys products. Online Social Networks. Online communities where people socialize or exchange

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opinions and information are called online social networks. This new form of consumerto-consumer or business-to-consumer dialogue has big implications for marketers. In an effort to promote their products and build closer customer relationships, marketers are using social media to interact with consumers, thereby becoming a part of their lives and their conversations. However, marketers must be careful when tapping into word-ofWeb opportunities, because results are difficult to measure and control. 3.2.2 Family

As the most important consumer buying organization in society, family can strongly influence the behavior of buyers. Marketers are interested in the roles and influence of husband, wife, and children on the purchase of different products and services. Husband-wife involvement varies widely by product category and by stage in the buying process. The lifestyles of consumers also affect buying roles, such the increasing number of women in the workforce, and the growing number of stay-at-home dads. Marketers in industries that have sold their products to only men or only women now have to court the opposite sex. However, they must be careful to avoid insensitive stereotypes. Children also have a strong influence on family buying decisions. Not including the $30 billion in disposable income of children from 8 to 12 years of age, they influence an additional $150 billion that their families spend on them in other areas, such as food, clothing, and entertainment. 3.2.3 Roles and Status

A person belongs to many groups; his or role in each one consisting of the activities he or she is expected to perform. Each role carries a status, based on how society perceives the group. People usually choose products that are appropriate to their roles and status. 3.3 Personal Factors A buyers decisions are also influenced by personal characteristics, such as age and lifecycle stage, occupation, economic situation, lifestyle, and personality and self-concept. 3.3.1 AgeandLifeCycleStage Peoplechangethegoodsandservicestheybuyovertheirlifetimes.Tasteingoods, clothes,furniture,andrecreationareoftenagerelated.Moreover,buyingisshaped by the stage of the family life cycle. Marketers often define their target markets in termsoflifecyclestageanddevelopappropriateproductsandmarketingplansfor eachstage. 3.3.2 Occupation A persons occupation affects the goods and services that he or she will buy. Marketers try to identify the occupational groups that have an aboveaverage interest in their products and services. A company can even specialize in making productsneededbyagivenoccupationalgroup. 3.3.3 EconomicSituation

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A persons lifestyle is the pattern of living reflected in his or her psychographics. Lifestyle captures something more than the persons social class or personality. It profiles apersons whole patternof acting and interactingin theworld. Marketers canusethelifestyleconcepttounderstandhowconsumervaluesarechangingand how those values affect buying behavior. Consumers dont just buy products; they buythevaluesandlifestylesthoseproductsrepresent. 3.3.4 PersonalityandSelfConcept Personality refers to the unique psychological characteristics that distinguish a person or group. Personality can be useful in analyzing consumer behavior for certain products or brands. The idea is that brands also have personalities, and consumers are likely to choose brands with personalities that match their own. One researcher identified five brand personality traits: Sincerity (down-to-earth, honest, wholesome, and cheerful) Excitement (daring, spirited, imaginative, and up-to-date) Competence (reliable, intelligent, and successful) Sophistication (upper class and charming) Ruggedness (outdoorsy and tough)

The basic self-concept premise is that peoples possessions contribute to and reflect their identities; i.e., we are what we have. Thus, to understand consumer behavior, marketers must first understand the relationship between consumer self-concept and possessions. 3.4 Psychological Factors Four major psychological factors also influence a persons buying choices: motivation, perception, learning, and beliefs and attitudes. 3.4.1 Motivation

A person has many needs at a given time. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. The theories of Sigmund Freud suggest that a persons buying decisions are affected by subconscious motives that even the buyer may not understand fully. Motivation research is qualitative research designed to probe consumers hidden, subconscious motivations. Because consumers often dont know or cant describe why they act as they do, researchers use a variety of probing techniques to uncover underlying emotions and attitudes toward brands and buying situations. Abraham Maslow sought to explain why people are driven by particular needs at particular times. His answer is that human needs are arranged in a hierarchy, with the most pressing needs at the bottom and the least pressing needs at the top (see Figure 5.4, p. 172 in your textbook). Reading from the bottom up, these needs are physiological, safety, social, esteem, and self-actualization. According to this theory, a person tries to satisfy the most important need first. As each important need is met, the next most important need will come into play. 3.4.2 Perception

Amotivatedpersonisreadytoact;however,hisorherperceptionofthesituation

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will influence the way the person acts. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can form different perceptions of the same stimulus because of three perceptual processes. Selective attention is the tendency for people to screen out most of the information to which they are exposed. Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe. Selective retention is the retaining of information that supports their attitudes and beliefs. Some consumers worry that they will be affected by marketing messages without even knowing itthrough subliminal advertising. However, numerous studies have found little or no link between subliminal messages and consumer behavior. 3.4.3 Learning When people act, they learn. Learning describes changes in an individuals behavior arising from experience. Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement. A drive is a strong internal stimulus that calls for action. A drive becomes a motive when it is directed toward a particular stimulus object. Cues are minor stimuli that determine when, where, and how the person responds; and cues will influence a consumers response to his or her interest in buying a particular product. If the experience with that product is rewarding, then the persons decision to purchase it will be reinforced. 3.4.4 Beliefs and Attitudes

Through the process of doing and learning, people acquire beliefs and attitudes that will influence their buying behavior. A belief is a descriptive thought that a person has about something. Marketers are interested in the beliefs that people formulate because they affect buying behavior. In addition, people have attitudes about religion, politics, clothes, music, goods, and more. A persons attitude is his or her relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitudes put people in a frame of mind of liking or disliking things. Such attitudes are difficult to change. Thus, a company should try to fit its product into existing attitudes rather than attempt to change them. 4.0 TYPES OF BUYING DECISION BEHAVIOR Buying behavior differs greatly for a tube of toothpaste, a smartphone, financial services, or a new car. Figure 5.5 (p. 175 in the textbook) shows types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands. 4.1 Complex Buying Behavior Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly selfexpressive. Typically, the consumer has much to learn about the product category. Marketers of high-involvement products must understand the information-gathering and evaluation behavior of high-involvement consumers.

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4.2 Dissonance-Reducing Buying Behavior Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. After the purchase, consumers might experience post-purchase dissonance (after-sale discomfort) when they notice certain disadvantages of the purchased brand or hear favorable things about brands not purchased. To counter such dissonance, the marketers after-sale communications should provide evidence and support to help consumers feel good about their brand choices. 4.3 Habitual Buying Behavior Habitual buying behavior occurs under conditions of low consumer involvement and little significant brand difference. Consumer behavior does not pass through the usual belief-attitude-behavior sequence. Consumers do not search extensively for information about the brands, evaluate brand characteristics, and make weighty decisions about which brands to buy. They passively receive information as they watch television or read magazines. Ad repetition creates brand familiarity rather than brand conviction. 4.4 Variety-Seeking Buying Behavior Consumers undertake variety-seeking buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching. In such product categories, market leaders may try to encourage habitual buying behavior through product placement and frequent advertising. Challenger firms will encourage variety seeking by lower prices, coupons and free samples, and advertising that presents reasons for trying something new. 5.0 THE BUYER DECISION PROCESS The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior (see Figure 5.6, p. 176 in the textbook). These five stages embody all the considerations that arise when a consumer faces a new and complex purchase situation. 5.1 Need Recognition

The buying process starts with need recognitionthe buyer recognizes a problem or need. The need can be triggered by either internal stimuli or external stimuli. 5.2 Information Search

An interested consumer may or may not search for information. If the drive is strong and a satisfying product is nearby, the consumer is likely to buy it. If not, then the consumer may store the need in memory and conduct an information search related to the need. Consumers can obtain information from personal sources (family, friends, neighbors, acquaintances); commercial sources (advertising, salespeople, websites, dealers, displays); public sources (mass media, consumer rating organizations, Internet searches); and experiential sources (handling, examining, using the product). As more information is obtained, the consumers awareness and knowledge of available brands increases. A company must design its marketing mix to make prospects aware of

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its brands. It should also identify consumers sources of information and the importance of each source. 5.3 Evaluation of Alternatives Marketers need to know about alternative evaluationhow the consumer processes information to arrive at brand choices. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating, instead buying impulsively, and relying on intuition. Sometimes consumers make their own buying decisions; sometimes they seek advice from friends, online reviews, or salespeople. 5.4 Purchase Decision

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumers purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. The second factor is unexpected situational factors. Thus, preferences and purchase intentions do not always result in an actual purchase. 5.5 Postpurchase Behavior The marketers job does not end when the product has been purchased. The consumer will be either satisfied or dissatisfied and will engage in postpurchase behavior of interest to the marketer. The difference between the consumers expectations and the perceived performance of the product will determine how satisfied the consumer is. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. Some levelofcompromiseisinvolvedinalmostallmajorpurchases.Therefore,customers willexperiencecognitivedissonance, or discomfort caused by postpurchase conflict. Why is it important to satisfy customers? Customer satisfaction is a key to building profitable relationships with consumerskeeping and growing consumers and reaping their customer lifetime value. Satisfied customers buy more products, speak favorably about their purchases, and pay less attention to competing brands. Dissatisfied customers do not purchase more products and respond to their dissatisfaction with bad word-ofmouth, which can quickly damage a companys reputation. 6.0 THE BUYER DECISION PROCESS FOR NEW PRODUCTS This section examines how buyers approach the purchase of new products. A new product is a good, service, or idea that is perceived by some potential customers as new. The adoption process is the mental process through which an individual passes from first learning about an innovation to final adoption. Adoption is the decision by an individual to become a regular user of the product. 6.1 Stages in the Adoption Process Consumers go through five stages in the process of adopting a new product: (1) Awarenessthe consumer becomes aware of the new product, but lacks information. (2) Interestthe consumer seeks information about the new product. (3) Evaluation: the

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consumer considers whether trying the new product makes sense. (4) Trial: the consumer tries the new product on a small scale to assess its value. (5) Adoption: the consumer decides to make full and regular use of the new product. This model suggests that marketers should think about how to help consumers move through these stages. 6.2 Individual Differences in Innovativeness

People differ greatly in their readiness to try new products. People can be classified into five adopter categories, all of which have differing values. Innovators are venturesome they try new ideas at some risk. Early adopters are guided by respectthey are opinion leaders in their communities and adopt new ideas early but carefully. Members of the early majority are deliberatealthough they rarely are leaders, they adopt new ideas before the average person. Members of the late majority are skepticalthey adopt an innovation only after a majority has tried it. Laggards are tradition boundthey are suspicious of changes and adopt the innovation only when it has become something of a tradition itself. 6.3 Influence of Product Characteristics on Rate of Adoption

The characteristics of a new product will affect its rate of adoption. Five characteristics are especially important in influencing an innovations rate of adoption. Relative advantage is the degree to which the innovation appears superior to existing products. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers. Complexity is the degree to which the innovation is difficult to understand or use. Divisibility is the degree to which the innovation may be tried on a limited basis. Communicability is the degree to which the results of using the innovation can be observed or described to others. Other characteristics also influence the rate of adoption; e.g., initial and ongoing costs, risk and uncertainty, and social approval. Marketers must research all these factors when developing a new product and its marketing program. Student Exercises 1. Key Term: Cultural Shifts

Culture is not a static phenomenon. It is constantly changing and evolving. This leads to cultural shiftsthe shifting of culture to incorporate these changes. Companies have to pay attention and adapt to these shifts if they are to remain viable businesses. The cigarette industry is a great example. Pay an online visit to R.J. Reynolds Tobacco Company online at (www.rjrt.com). How is RJRT adapting to the cultural shift toward the use of tobacco products in the United States? 2. Key Term: Subculture

Every culture contains subcultures, or smaller groups of people with shared value systems based on common life experiences and situations. A subculture is a group having social, economic, ethnic, or other traits distinctive enough to distinguish it from others within the same culture or society (see www.dictionary.reference.com). Many subcultures make up important markets and marketers design products and programs tailored to their specific needs. Browse the Internet to locate an advertisement targeted to a subculture in the United States. How does the ad target that subculture?

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3.

Key Term: Hispanic Market

The Hispanic market now contains more nearly 50 million consumers, with a current annual purchasing power of more than $950 billion. They tend to be family oriented and tend to make shopping a family affair; furthermore, they are brand loyal and favor brands and sellers that show an interest in them. How does Burger Kings FTBOL KINGDOM cater to this important subculture in the United States? 4. Key Term: Social Groups

Nearly every society has some form of social class structure. Social classes are a societys relatively permanent and ordered divisions, whose members share similar values, interests, and behaviors. Go to Bentley Motorcars (www.bentleymotors.com). What social class does this company target? What makes you say that? Visit Scion (a marquee of Toyota Motors USA) at (www.scion.com). What social class does this company target? What makes you say that? 5. Key Term: Opinion Leader

An opinion leader is a person within a reference group who (because of special skills, knowledge, personality, etc.) exerts social influence on others. Googles Android operating system is the worlds best selling platform for smartphones. Browse the Internet to locate two examples of how Google is using opinion leaders to exert social influence on potential customers. 6. Key Term: Family

The family is the most important consumer buying organization in our society. Many companies focus on the family with their products and promotions. Of course, husbands and wives influence family buying decisions. Children also have a strong influence on those decisions. Browse the Internet and locate two examples of advertisements that aim to influence family buying decisions by offering products that appeal to children. 7. Key Term: Lifestyle

A lifestyle is a persons pattern of living as expressed in his/her psychographics. It is based around AIO dimensionsactivities (work, school, hobbies, shopping, etc.), interests (fashion, recreation, food, etc.), and opinions (about themselves, the community, business, anything). Think of someone you know well. What is that persons lifestyle? How does that lifestyle influence the products that he or she purchases? 8. Key Term: Motive

A person has many needs at a given time. A motive (or a drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Check out the Triumph Motorcycles Web page at (www.triumph.co.uk/usa/). What could motivate a person to purchase a Triumph motorcycle? 9. Key Term: Need Recognition

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The buying process starts with need recognitionthe buyer recognizes a problem or need. The need can be triggered by internal stimuli when a normal need (such as hunger or thirst) reaches a high enough level to become a drive. A need can also be triggered by external stimuli. Visit the websites of Pepperidge Farm (www.pepperidgefarm.com), Mrs. Smiths Pies (www.mrssmiths.com), and Keebler (www.keebler.com). Obviously, these sites are intended to promote need recognition. Decide whether you think that the need recognition would be triggered by internal stimuli, external stimuli, or a combination of both. What is the basis for your decision? 10. Key Term: Cognitive Dissonance

Almost all major purchases result in some form of cognitive dissonance. Cognitive dissonance is buyer discomfort caused by post-purchase conflict. There is a tendency for consumers to feel some level of post-purchase dissonance (or discomfort) for every purchase. Companies want to do what they can to help lessen this post-purchase anxiety. Pay a visit to Zappos (www.zappos.com). What does Zappos do to help its customers avoid cognitive dissonance and remain happy and satisfied? Marketing ADventure Exercises 1. Ad Interpretation Challenge: Cultural Shifts Ad: Student Choice

Marketers are always trying to spot cultural shifts, in order to discover whether there might be a potential market for new products and services. In the past, the United States was likened to a melting pot, where diverse groups from many nations and cultures melted into a single, more homogenous whole. Today, the United States seems to have become more of a salad bowl in which various groups are mixed together, yet they remain diverse, by retaining and valuing important ethnic and cultural differences. In your opinion, what new products and services will be needed because of this major cultural shift? 2. Ad Interpretation Challenge: Subcultures Ad: AutosState Farm Insurance

Each culture contains multiple subculturesthose groups of people with shared value systems based on common life experiences and situations. Asian Americans are the most affluent U.S. demographic segment. They now number nearly 15 million and wield more than $500 billion in annual spending power, expected to reach $750 billion in 2013. No wonder businesses are starting to pay attention. How does the ad for State Farm Insurance on p. 162 in your textbook appeal to this important subculture? 3. Ad Interpretation Challenge: Subcultures Ad: AutomobilesJeep

Mature consumers are becoming increasingly important to American business. The 50plus consumer segment now accounts for nearly 50 percent of all spending by consumers, more than any current or previous generation. For decades, many marketers stereotyped mature consumers as doddering, impoverished shut-ins who were unwilling to try new things. As a group, however, todays mature consumers are anything but stuck in their ways. How does the ad for Jeep on p. 163 in your textbook appeal to this important subculture?

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4.

Ad Interpretation Challenge: Online Social Networks Ad: Kitchen AppliancesBlendtec

Marketers are using the Internet to interact with consumers and become a part of their conversations and lives. Blendtec has developed a sort of cult following for its Will It Blend? videos (see www.willitblend.com). Why are these videos attracting such interest? How do they help Blendtec connect with consumers? 5. Ad Interpretation Challenge: Online Social Influence Ad: Word of WebReal Marketing 5.1

Marketers are harnessing the power of social networks and other word-of-Web opportunities to promote their products and build closer customer relationships. As discussed in the Real Marketing segment featured in this chapter (pp. 166167), marketers are working feverishly to connect with consumers and build ongoing relationships with them, and Coca-Cola and Pepsi are no exception. Review this segment to learn about Coca-Colas Expedition 206 and Pepsis DEWmocracy campaigns. In your opinion, which of the campaigns will be most effective in creating brand conversations and cultivating long-term customer relationships? What is the basis of your opinion? 6. Ad Interpretation Challenge: Life-Cycle Ad: Global Interactive Marketing ServicesAcxiom PersonicX

People change the products and services they buy over the course of their lifetimes. Tastes in food, clothes, transportation, and recreation are often age related. Browse the Internet to find an ad that is targeted to a specific stage of the life-cycle. To whom do you believe this ad is targeted? In what ways could this ad be changed to target a different stage of the life-cycle? 7. Ad Interpretation Challenge: Postpurchase Behavior Ad: LexusReal Marketing 5.2

After purchasing a product, a customer will be either satisfied or dissatisfied, and he or she will engage in postpurchase behavioraction taken based on satisfaction or dissatisfaction with a product. According to the Real Marketing 5.2 feature in this chapter, Lexus knows that good marketing doesnt end with making a sale. Keeping customers happy after the sale is the key to building lasting relationships (p. 179-180). What steps does Lexus take to delight customers and keep them coming back? 8. Ad Interpretation Challenge: Brand Personality Ad: Student Choice

Brand personality is the specific mix of human traits that may be attributed to a particular brand. There are five brand personality traits: sincerity, excitement, competence, sophistication, and ruggedness. Select one of the five personality traits and browse the Internet to locate an advertisement for a product that that personifies that trait. In what ways does the advertisement convey that personality trait? 9. Ad Interpretation Challenge: The Adoption Process Ad: AutomobilesHyundai

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The adoption process is the mental process through which an individual passes from first hearing about a product to final adoption (the decision by an individual to become a regular user of the product). During the recent recession, Hyundai developed a unique program to help customers get past evaluation and make a positive purchase decision about a new Hyundai (pp. 181 in your text). Check out Hyundai online at (www.hyundaiusa.com/assurance/). Has Hyundai added any new elements to the customer assurance program discussed in your textbook? How can Hyundais customer assurance initiatives help consumers move past the stage of evaluating its vehicles? 10. Ad Interpretation Challenge: Information Search Ad: Student Choice

Information search is the stage of the buyer decision process in which the consumer is aroused to search for more information. At this time, the person may simply have heightened attention or may go into an active information search. In January 2010, Apple introduced the iPad, a groundbreaking device that reenergized the market for tablet computers. According to Apple Insider, the iPad accounted for 74 percent of tablet shipments in the first quarter of 2011. However, at the International Consumer Electronics Show in January 2011, over 100 companies announced their intentions to enter the marketplace for tablet computers, so competition for market share will be fierce. Suppose that you want to either purchase your first tablet computer or upgrade your existing one. Browse the Internet for information that will help you compare Apples latest version of the iPad with top competitors, such as HP Compaq, Lenovo, Motorola, and Samsung.

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