72ST 3 Critical Thinking in Consumer Behavior Cases and Experiential Exercises Second Edition Judy Graham, Ph.D. Saint John Fisher College Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River ‘Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toro Canvey S a Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei TotTABLE OF CONTENTS Foreword iv by David Bakken, Ph.D. Preface v SECTION 1: The Importance of Customer Centricity 1 1. Customer Retention and Profitability 3 2. Measuring Customer Loyalty with the Net Promoter Score™ 4 3. Customer Experience Management 9 SECTION II: Customer Perception 23 = 4, Information Overload 25 5. The Just Noticeable Difference 27 6. Perceptual Maps 29 SECTION IJ: Customer Learning and Memory 37 - 7. Behavioral Learning: Classical and Operant Conditioning 39 8, Memorable Taglines 44 9. Memory Models and Promotional Strategies 49 SECTION IV: Customer Motivation and Personality 55 — 10. The Great Debate 37 11. Maslow’s Need Hierarchy and Customer Motivation 61 - 12. Appealing to the Id, Superego, and Ego 65 SECTION V: Segmenting, Targeting, and Positioning 67 13. VALS™ Segmentation Categories 6 14. Positioning Strategies 74 15. Adopter Categories 16 SECTION VI: Reference Group Influence and Diffusion of Innovation 81 ~ 16. Forms of Reference Group Influence 3 17, Types of Reference Groups 87 ~ 18. Diffusion of Innovation 39SECTION VII: Customer Attitudes 91 19, Hierarchies of Effects 93 20. The Fishbein Model of Attitude Measurement 97 21. The Extended Fishbein Model 100 SECTION VIM: Marketing Communication and Attitude Change 105 22. Multiattribute Models and Attitude Change Strategies 107 23. The Elaboration Likelihood Model 110 24. Social Judgment Theory and Attitude Change 113 25. Balance Theory and Spokesperson Strategies 116 SECTION IX: Customer Decision Making 123 26. Group/Family Decision Making 125 27. Decision Heuristics 127 28, Decision Rules I: Introduction to Decision Rules 132 29. Decision Rules II: The Application of Decision Rules 137 SECTION X: Qualitative and Interpretive Consumer Research 139 30. Projective Techniques 141 31. Laddering Interviews and Means-End Analysis 146 32, Information Display Boards 152 SECTION XI: Cultural and Subcultural Influences 157 33. The Diversity of Customer Behavior 159 34, Culture and Customer Behavior 160 35. The Chinese Consumer 164