Questions
The rate at which an innovation is diffused is a function of the following 10 factors, and
There are several types of groups that share a set of norms,
values, or beliefs. Discuss any three of them.
You are a marketing manager and want to use the power of
reference groups to influence consumers. Reference group
influence can take three forms. Name and describe each, and
explain how you could use each type of influence in an
advertisemen
Apple recently came out with the video iPod, which allows
users to download video content from the Internet. Very soon
after the introduction of this innovation, television shows were
made available for consumers to purchase or to obtain for
free. This has brought about a rather radical change in the way
viewers consume television, and some have predicted that
this will create significant changes in the current business
model for television networks and program producers. Discuss
five of the many factors discussed in the chapter that will
influence the spread of this innovation.
Your family owns an upscale jewelry store. Because you are a
marketing major, your father asked you to develop an
advertisement for the store. You know that it is important for
consumers to pay attention to your ad or else the money
you've spent on media exposure is wasted. Define attention,
discuss how five of the several stimulus factors influence
attention to a stimulus, and explain how you can use each in
your advertisement
List Maslow's hierarchy of needs, in order from lowest to
highest, and the four premises on which the hierarchy is
based.
Name and describe McGuire's cognitive preservation motives.
The Five-Factor Model of personality identifies five core traits.
Name each trait, and explain
the manifestation of each.
Companies spend millions of dollars each year for celebrities
to appear in their marketing communications. Explain why
this might be a good investment. That is, discuss the reasons
why celebrity endorsers are effective
Compare and contrast one-sided and two-sided messages,
and explain why marketers would
use a two-sided message
Joan currently drives a Toyota automobile, and it's been a very
reliable car. However, she desires to own a BMW, but her
finances cannot support such a purchase as she has to pay her
mortgage, utilities, and her son's college tuition. Explain the
two factors that affect one's desire to resolve a particular
problem, and specify which one most likely is influencing
Joan's inaction to resolve this discrepancy between her actual
state and her desired state.
List the four concerns marketing managers have related to
problem recognition.
Alex is a brand manager tasked with discovering consumer
problems related to the several
products and brands his company manufactures. Name and
describe three of the several
approaches discussed in the chapter that he could use to
identify consumer problems.
Answers
students can discuss any five of them:
a. Type of group--some groups are more accepting of change than others. In general, young, affluent, and highly educated groups
accept change readily.
b. Type of decision--this refers to an individual versus a group decision. The fewer the individuals involved in the purchase decision, the
more rapidly an innovation will spread.
c. Marketing effort--rate of diffusion is influenced by the extent of marketing efforts involved, so the rate of diffusion is not completely
beyond the control of the firm.
d. Fulfillment of felt need--the more manifest or obvious the need that the innovation satisfies, the faster the diffusion.
e. Compatibility--the more the purchase and use of the innovation are consistent with the individual's and group's values or beliefs, the
more rapid the diffusion.
f. Relative advantage--the better the innovation is perceived to meet the relevant need compared to existing methods, the more rapid
the diffusion.
g. Complexity--the more difficult the innovation is to understand and use, the slower the diffusion.
h. Observability--the more easily consumers can observe the positive effects of adopting the innovation, the more rapid its diffusion will
be.
i. Trialability--the easier it is to have a low-cost or low-risk trial of the innovation, the more rapid is its diffusion.
j. Perceived risk--the more risk associated with trying an innovation, the slower the diffusion
Normative influence - (utilitarian influence) occurs when an individual fulfills group expectations to gain a direct reward or to avoid a
sanction.
Identification Influence- (value expressive influence) occurs when individuals have internalized the groups values and norms
Informational Influence- occurs when an individual uses the behaviors and opinions of reference group of members as potentially useful
bits of information
The five main factors affecting the spread of this innovation include
- Features offered by this innovation
- The environmental conditions like expectations, rewards, prices and incentive to adopt this innovation
- Awareness in the target audiences about the availability of such innovation
- Complexities involved in using it
- Compatibility with the needs, trends and values of the target audiences
Attention occurs when the stimulus activates one or more sensory receptor nerves, and the resulting sensations go to the brain for
processing. Attention requires consumers to allocate limited mental resources toward the processing of incoming stimuli
Several stimulus factors influence attention:
Size: larger stimuli are more likely to be noticed. For example, taking out a large ad in a local newspaper is more likely to be noticed than
a smaller ad.
Intensity (e.g., loudness, brightness, length):can increase attention. For this type of retail store, sparkling jewelry might attract viewers'
attention.
Isolation: seperating a stimulus object from other object. For this type of advertisment use of white space attract audiences
Colour and Movement: it attracts attention of customers. A two paged coloured advertisment in magazine or newspaper or a coloured
video advertisment would attract audience
Position: it is placement of obejct in physical space or time . for jewellery store advertisment a high impact zone of print ads can be used
which attarct the customers more
Maslow's hierarchy of needs is a motivational theory in psychology. It has five stages of needs usually represented in the shape of a
pyramid. In which the basic needs are at bottom and the higher needs are at the peak. The hierarchy is basically based on the 5 levels:
The most basic needs are at the bottom which are called physiological needs. Physiological needs are the basic needs for human
survival. Water, food, clothing, house, sleep and sex etc. are examples of such type of needs. Maslow says if physiological needs are not
fulfilled of a person. One will not be able to work properly. And these needs are most important of all.
Second most important needs are the safety needs. Once the physiological needs are fulfilled. The needs of safety and security becomes
important. These needs are fulfilled by the family, friends, society and government. Emotional safety, financial safety, freedom from fear,
social stability and health safety are examples of this.
Third important needs are love and belongings. Once physiological and safety needs of a person are fulfilled, the need of belongingness
becomes salient. It is the need of social belongingness. The relationships and social connectedness is the belongingness. Love, trust,
friendship and affection are the examples of this.
The fourth most important need is esteem needs. Once the three needs mentioned above are fulfilled, the need of esteem is important.
The esteem is the feeling of self respect, self worth and reputation. Which is most commonly desirable in teens and adolescents, Maslow
said.
The fifth and top most needs are self actualization needs. Self actualization means the realisation of one's potential, personal growth
and self fulfilment. According to Maslow, these needs consist of the desire of getting everything one can.
Informational Influence- occurs when an individual uses the behaviors and opinions of reference group of members as potentially useful
bits of information
The five core traits are:
a. Extroversion--prefer to be in a large group rather than alone, talkative when with others,
and bold.
b. Instability--moody, temperamental, and touchy.
c. Agreeableness--sympathetic, kind to others, and polite with others.
d. Openness to experience--imaginative, appreciative of art, and find novel solutions.
e. Conscientiousness--careful, precise, and efficient
Celebrity sources are effective for a variety of reasons:
Attention--celebrities may attract attention to the advertisement. Consumers tend to be curious about celebrities and are drawn to ads
in which they appear.
Attitude toward the ad--A celebrity's likeability and popularity often translate into higher Aad which can enhance brand attitudes.
Trustworthiness--despite being paid for their endorsements, celebrities often develop strong and credible public personas that
consumers trust, and trust translates into purchases.
Expertise--some celebrities are also experts, particularly in music and sports.
Aspirational aspects--consumers may identify with or desire to emulate the celebrity, and as a consequence, they may imitate the
behavior and style of a celebrity through purchases of similar brands and styles.
Meaning transfer--consumers may associate known characteristics of the celebrity with attributes of the product that coincide with their
own needs or desires.
In advertisements and sales presentation, marketers generally present only the benefits of their product without mentioning any
negative characteristics it might possess or any advantages a competitor might have. These are one-sided messages, since only one
point of view is expressed. The idea of a two-sided message, presenting both good and bad points, is counterintuitive, and more
marketers are reluctant to try such an approach. However, two sided messages are generally more effective than one-sided messages in
changing a strongly held attitude. One reason is because they are unexpected and increase consumer trust in the advertiser. They are
particularly effective with highly educated consumers. However, product type, situation variables, and advertisement format influence
the relative effectiveness of the two approaches.
The level of one's desire to resolve a particular problem depends on two factors: (a) the magnitude of the discrepancy between the
desired and actual states, and (b) the relative importance of the problem. Joan has an automobile that works just fine, so the magnitude
of the discrepancy is not large enough to spur her to action. However, if her car was damaged in an accident, then the magnitude of the
discrepancy would become much larger. To Joan, she has other, more important financial commitments that preclude her from solving
this problem. Compared to her other more important problems, this one is perceived as relatively unimportant
First, they need to know the problems consumers are facing. Second, they must know how to develop the marketing mix to solve
consumer problems. Third, managers occasionally want to cause consumers to recognize problems. Finally, there are times when they
desire to suppress problem recognition among consumers.
There were five approaches discussed in the chapter, and students can discuss any three:
a. Activity Analysis--focuses on a particular activity and attempts to determine what problems consumers encounter during the
performance of the activity.
b. Product Analysis--similar to activity analysis but examines the purchase or use of a particular product or brand.
c. Problem Analysis--starts with a problem and asks respondents to indicate which activities,
products, or brands are associated with (or perhaps could eliminate) those problems.
d. Human Factors Research--attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and
fatigue and the effect on these capabilities of lighting, temperature, and sound.
e. Emotion Research--examines the emotions associated with certain problems
 Although culture is basically are secular, many of its traditions and values are derived from the Judeo- Christian Heritage of the majority
Much of the American value system and the resultant political
of the americans. Some subculture s of Christianity are as followed:
and social institutions are derived from the Christian beliefs of
- Roman Catholic 21% of adults are, they have a pope
the early settlers. Discuss the forms Christianity takes in this
- Protestant 45%
country.
- Born Again Christian
Single and Multi-item index are measurements used when dealing with social status:
Single-item Index estimates social status on the basis of a single dimension such as education, income, or occupation.
Discuss the two basic approaches to measuring social status
Multi-item Index takes into account numerous variables simultaneously and weight these according to a scheme that reflects societal
view.
Culture is the complex whole that includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by
humans as a member of society.

- It is a comprehensive concept and includes almost everything that influences an individual's thought processes and behaviors
Explain the concept of culture, and discuss why is it important
- Culture is acquired, it is learned
to study for understanding consumer behavior
- Seldom provides detailed prescriptions for appropriate behavior
- The nature of cultural influences is such that we are aware of them

It is important to study culture for understanding consumer behavior because it is pervasive and influences consumers' behaviors
(a) Other-oriented values: reflect a society's view of the appropriate relationships between individuals and groups within a society
Compare and contrast (a) other-oriented values, (b)
(b) Environment-oriented values: prescribe a society's relationship to its economic and technological as well as its physical environment
environment-oriented values, (c) self-oriented values
(c) Self-oriented values: reflect the objectives and approaches to life that the individual members of society find desirable
One key area is the area of "Other-oriented" values.
- Individualism is a defining characteristic of American culture, whereas Japanese are more collective in their orientation.
- While American society is youth oriented, many Asian cultures have traditionally valued the wisdom that comes with age.
Jason is planning a business trip to Japan, and it is his first
- U.S. culture is more masculine and individualistic orientations that value competitiveness openly, whereas Japan is collectivist and find
time doing business in that country. Discuss some value
openly competitive gestures offensive
differences between Japanese culture and American culture
- Japan tends to place high value on uniformity and conformity, whereas U.S. values diversity
that are most relevant to him in a business meeting situation.
Self-Oriented differences:
- Americans are more prone than the Japanese to take an action-oriented approach to problems
7 factors: Time, space, symbols, relationships, agreements, things, etiquette

TIME:
the meaning of time varies between cultures in two major ways: time perspective (a culture's overall orientation toward time, can be
monochronic or polychronic) and the interpretations assigned to specific uses of time.
SPACE:
Name the seven factors influencing nonverbal
personal space is the nearest that others can come to you in various situations without making you feel uncomfortable, this space varies
communications, and describe four of them.
among cultures
SYMBOLS:
colors, animals, shapes, numbers, and music have varying meaning across cultures
ETIQUETTE:
generally accepted ways of behaving in social situations. behaviors considered rude and obnoxious in one culture may be quite
acceptable in another.
Technology is mainstream: wired teens are a global phenomenon not restricted to developed countries. 56% of teens are globally
"superconnectors"

U.S. teens no longer lead the way: it's more about mid-set and the "creatives" are leading the way. creatives are more prevalent in Europe,
List and describe the three trends in the global youth market
are open to new ideas and like expressing themselves in various ways (personal web pages and art)

List and explain four of the seven factors the Unilever utilizes
in order to successfully sell its laundry products globally
A German electronics manufacturer is expanding into the
United States. This company has commissioned your
company, a marketing research firm, to explain the various
subcultures in this country. Explain the concept of
subcultures, and briefly describe the three main subcultures
discussed in this chapter.
Target, the national retailer, is opening several new stores in
predominantly Hispanic communities. Explain how Target
should modify its business to adequately serve the needs of
this market.
Consumers learn new knowledge about brands and store in
their long-term memory. Brand image refers to the schematic
memory of a brand. It contains the target market's
interpretation of the product's attributes, benefits, usage
situations, users, and manufacturer/marketer characteristics.
Give an example of Pepsi's brand image
Bob and Kim purchased a new, 55-inch high-definition OLED
television, and they spent more than US $1500, they got it
home, Kim started feeling anxious about this purchase and
wondered if they should have shopped a little more and
become more informed about these types of TVs and looked
at a few more alternatives than just the ones they did before
purchasing this one. Stephanie is experiencing post purchase
dissonance. Explain what the retailer can do to AVOID this.
Harrison is very involved with any type of electronic product,
such as televisions, sound systems, smart phones, and
computers. Based on the elaboration likelihood model (ELM)
for attitude changing, explain how marketers of these types of
products can succeed in persuading Harrison.
A local Honda motorbike dealership owner in Ho Chi Minh City
conducted some informal market research and found that
many consumers had negative beliefs toward this brand.
Shortly explain what strategy can be employed by Kia to
change the cognitive component of consumers' attitudes,
then suggest certain marketing activities Kia may carry out for
accomplish the change in this case.
For what type of product category does the reference group's produce to sell.
influence exert more strongly? Compare the reference group's
infuence exerted in the purchase of daily vitamins and
running shoes
U.S. brands are not currently the leaders: U.S. brands used to be the leaders among global teens, now the top three at Japan (Sony),
Finland (Nokia) and Germany (Adidas)
NEEDS: hand washing versus machine washing leads to different laundry product needs. In developing countries an important factor for
Unilever, products must be adapted to meet strength of cleaning needs related to removing sweat, odors, and tough stains
AFFORDABILITY: Unilever faces the situation that the transition from hand washing to washing machines depends in large on the
economic prosperity of a country or a region as this determines the affordability of washing machines.
INFRASTRUCTURE: a broad infrastructure issue in laundry is access to hot water. many developing countries don't have access to or large
amounts of water. Unilever responded to India with Surf Excel Quick Wash
COMMUNICATION: Unilever pushes more environmental friendly products, Europeans traditionally cleaned their clothes in much hotter
water but they have begun to wash in cooler temperatures to save energy.
Subculture: a segment of a large culture whose members share distinguishing values and patterns of behavior based on social history
and current situation
Ethnic Subcultures: one whose members' unique shared beliefs are based on a common racial, language, or national background. Major
ethnic subcultures in the US are: African Americans, Hispanics, Asian Americans, Native Americans, Asian-Indian Americans and Arab
Americans
Religious Subcultures: different religions in America prescribing differing values and behaviors constitute several subcultures. Most
common religious subcultures: christian subculture (roman catholics, protestants, born-again christians) and non-christian subculture
(jewish, muslim, buddhist)
Regional Subcultures: a result of climate conditions, the natural environment and resources, the characteristics of the various immigrant
groups in each region, and significant social and political events. U.S. census regions are Northeast, North Central, South and West
- Increase number of bilingual salespeople
- Increase use of spanish language signs, directions and point-of-purchase displays
- Merchandise assortments that reflect the needs of the local hispanic community
- Increase use of spanish-language advertisements, media, mass media, radio, magazines, and newspapers
The stores should feature signage, layout, and production assortments designed to appeal very specifically to the hispanic market. Store
managers need to be aware of the language and have spanish speaking workers. It involves more than just translating an english
message to a spanish one. You have to understand the culture and how to better word things in a way that they could understand and
relate to. Examples: open-air marketplace,cafe options.
Pepsi brand image revolves around smartness, youthfulness, and fun. The advertisements that the brand uses also syncs with the young,
free, and bold reflection of its customers. The brand personality that Pepsi projects here are youthful and smart.
1. To know how well the Product is installed and is working, the seller needs to contact the buyer and ask them if they have any issues.
2. The seller needs to know if the product is requiring any extra costs which he has to consider for the utilization of the product because,
the customer had paid the full amount to enjoy and use the product, not to incur extra costs on it. This can be done through phone calls
to the customers and visiting them through a sales guy for taking the review.
3. If the buyer has any issue or second thought, seller needs to provide with alternatives and other options within the budget or some
other products with price increments. And also consider guarantee and warranty. He needs to inform the customer initially about the
product it's it's specifications and Alternative options so that customers can compare and analyse what they want and reduce any regret
later on.
The ELM suggests that involvement is a key determinant of how information is processed and attitudes changes. High involvement,
which describes Harrison, results in a central route to attitude change by which consumers deliberately and consciously process those
message elements that they believe are relevant to a meaningful and logical evaluation of the brand.
These elements are elaborated on and combined into an overall evaluation. As a result, the ELM suggests that vastly different
communications strategies are required to communicate effectively with high- versus low-involvement consumers. In general, detailed
factual information (central cues) is effective in high-involvement, central route situations (i.e., Harrison).
Four basic marketing strategies are used for altering the cognitive structure of a consumer' s
attitude:
a. Change Beliefs--involves shifting beliefs about the performance of the brand on one or
more attributes. Attempts to change beliefs generally involve providing facts or statements
about performance.
b. Shift Importance--most consumers consider some product attributes to be more important
than others. Marketers often try to convince consumers that those attributes on which their
brands are relatively strong are the most important.
c. Add Beliefs--add new beliefs to the consumer's belief structure.
d. Change Ideal--change perceptions of the ideal brand or situation
Here the reference groups exert their influence on the consumer goods. Consumer goods are those products & services that we design or
Explanation: the reference group will exert it's influence in the purchase of daily vitamins & running shoes. In this pandemic period they
will prefer to spend more on the vitamin tablets as they directly contribute to the immunity and health of a person. On the other hand
they will not purchase shoes everyday. But when they will buy running shoes they will look for branded ones.