Deck 1: Introduction

Question 1

What is involved in the competitor analysis phase of market analysis in Figure 1-1

Answer 1

The behavior that a consumer displays at the time of, the search, evaluation, purchase, use, and disposal of that products and services which will satisfy his needs according to his expectations is called consumer behavior.
Marketing Strategy means the combination of all formulated plans in a single plan to achieve common marketing objective of the organization.
Following are the points involved in the competitor analysis phase of marketing analysis:
• The weakness of the competitors: It includes the study of the points on which a competitor is lacking in the market.
• The strategy of the competitor: It includes the study of the strategy of the competitor in terms of advertising, pricing, product quality etc.

Question 2

Describe the consumer decision process.

Answer 2

The behavior that a consumer displays at the time of, the search, evaluation, purchase, use, and disposal of that products and services which will satisfy his needs according to his expectations is called consumer behavior.
The process of consumer decision-making process is as follows:
1. Need recognition: The first step in the buying decision process is need recognition. The person has realized first the need of something. The need of a product is generated in three ways; (a). The basic need of the product to survive, (b) the consumer buys to try something new, (c) when the consumer buys after influence from the marketing of the product.
2. Information search: The next step is information search. It is the basis for evaluating and selecting the best product from the number of alternatives. A consumer collects information from various sources including websites, advertisements, friends etc. He searches information before the purchase to select the best product, after the purchase whether the product he bought good or not and continuous search to keep them up-to-date.
3. Evaluation of alternatives: In the next step a consumer compares the alternatives on some parameters. These parameters are product attributes (quality, features, price etc.), the degree of importance, brand beliefs, total satisfaction, social influence etc.
4. Purchase decision: After evaluating the various alternatives a consumer selects a particular brand. However, it may be trial or first time purchase, repeat purchase or long-term commitment purchase.
5. Post-purchase behavior: Post-purchase evaluation is the reaction come after the purchase of the product. A consumer is either satisfied or dissatisfied with his purchase decision. A consumer has two stage of reaction after purchase, first anxiety and tension before the use of the product either his decision of buying the product is good or not and second when he starts using the product.

Question 3

Interview the manager or marketing manager of a retail firm. Determine how this individual develops the marketing strategy. Compare this person's process with the approach described in the text.

Answer 3

NO ANSWER

Question 4

What is involved in the conditions analysis phase of market analysis in Figure 1-1

Question 5

Why would someone shop on the Internet Buy an iPod Eat at TGI Friday's frequently
a. Why would someone else not make those purchases
b. How would you choose one outlet, brand, or model over the others Would others make the same choice in the same way

Question 6

Interview the managers of a local charity. Determine what their assumptions about the consumer behavior of their supporters are. To what extent do they use marketing strategy to increase support for the organization or compliance with its objectives

Question 7

Describe the process of market segmentation.

Question 8

Respond to the questions in Consumer Insight 1-1.

Question 9

Interview five students. Have them describe the last three restaurant meals they consumed and the situations in which they were consumed. What can you conclude about the impact of the situation on consumer behavior What can you conclude about the impact of the individual on consumer behavior

Question 10

What is marketing strategy

Question 11

Of what use, if any, are models such as the one in Figure 1-3 to managers

Question 12

Visit one or more stores that sell the following items. Report on the sales techniques used (point-of-purchase displays, store design, salesperson comments, and so forth). What beliefs concerning consumer behavior appear to underlie these techniques It is often worthwhile for a male and a female student to visit the same store and talk to the same salesperson at different times. The variation in salesperson behavior is sometimes quite revealing.
a. Books and magazines
b. Cellular phones
c. Pet supplies
d. Expensive art
e. Expensive jewelry
f. Personal computers

Question 13

What is a marketing mix

Question 14

What changes would you suggest in the model in Figure 1-3 Why

Question 15

Interview individuals who sell the items listed below. Try to discover their personal models of consumer behavior for their products.
a. Expensive jewelry
b. Pets
c. Golfing equipment
d. Plants and garden supplies
e. Flowers
f. Car insurance

Question 16

What is a product

Question 17

Describe your lifestyle. How does it differ from your parents' lifestyle

Question 18

Interview three individuals who recently made a major purchase and three others who made a minor purchase. In what ways were their decision processes similar How were they different

Question 19

What does an effective communications strategy require

Question 20

Do you anticipate any changes in your lifestyle in the next five years What will cause these changes What new products or brands will you consume because of these changes

Question 21

Need Sets of Mall and Factory Outlet Shoppers
What do you look for in a retail experience Entertainment Branded merchandise Convenient parking It turns out that all of these are important, but not all of them are important to every consumer. Thus, retailers must know what need sets exist and what segments exist around those need sets. One research study that gives some insight into this found four basic need sets for traditional malls and factory outlets: 8
1. Mall Essentials - basic requirements including
•Cleanliness
•Décor
•Employee service and friendliness
•Safety and security
•Parking
2. Entertainment - fun extras such as
•Fast food
•Movie theatres
•Other services such as banks and hair specialists
•Friends who shop the retailer
3. Convenience - factors that make shopping easier including
•Close to work and\or home
•Accessible to home and\or work
4. Brand-name Merchandise - brand availability as follows:
•Brand-name stores
•Current fashions
•New products
•More stores
As you can see, each need set represents a related cluster of characteristics. In addition, however, consumers can be grouped (segmented) in terms of their similarity regarding the importance they place on the different need sets. For example, there is the "Basic" shopper segment that only cares about mall essentials; an "Enthusiast" shopper segment that cares about all the need sets, with a particularly high emphasis on entertainment; a "serious shopper" who cares about brand-name merchandise and convenience; a "Destination" shopper who cares about mall essentials and brand-name merchandise; and a "Brand" shopper who only cares about brand-name merchandise. Clearly all shoppers are not the same, and retailers must work hard to adapt to the differing need sets of different shopper segments.
Think of various retailers you are aware of. Can you match these different retailers to the different shopper segments

Question 22

How is the field of consumer behavior defined

Question 23

What is a price How does the price of a product differ from the cost of the product to the consumer

Question 24

Describe a recent purchase you made. To what extent did you follow the consumer decision-making process described in this chapter How would you explain any differences

Question 25

Need Sets of Mall and Factory Outlet Shoppers
What do you look for in a retail experience Entertainment Branded merchandise Convenient parking It turns out that all of these are important, but not all of them are important to every consumer. Thus, retailers must know what need sets exist and what segments exist around those need sets. One research study that gives some insight into this found four basic need sets for traditional malls and factory outlets: 8
1. Mall Essentials - basic requirements including
•Cleanliness
•Décor
•Employee service and friendliness
•Safety and security
•Parking
2. Entertainment - fun extras such as
•Fast food
•Movie theatres
•Other services such as banks and hair specialists
•Friends who shop the retailer
3. Convenience - factors that make shopping easier including
•Close to work and\or home
•Accessible to home and\or work
4. Brand-name Merchandise - brand availability as follows:
•Brand-name stores
•Current fashions
•New products
•More stores
As you can see, each need set represents a related cluster of characteristics. In addition, however, consumers can be grouped (segmented) in terms of their similarity regarding the importance they place on the different need sets. For example, there is the "Basic" shopper segment that only cares about mall essentials; an "Enthusiast" shopper segment that cares about all the need sets, with a particularly high emphasis on entertainment; a "serious shopper" who cares about brand-name merchandise and convenience; a "Destination" shopper who cares about mall essentials and brand-name merchandise; and a "Brand" shopper who only cares about brand-name merchandise. Clearly all shoppers are not the same, and retailers must work hard to adapt to the differing need sets of different shopper segments.
Can you characterize the different shopper segments in terms of various demographic traits such as age, gender, income, family role, and so on

Question 26

What conclusions can be drawn from the examples at the beginning of this chapter

Question 27

How is service defined in the text

Question 28

Describe several total products that are more than their direct physical features.

Question 29

Need Sets of Mall and Factory Outlet Shoppers
What do you look for in a retail experience Entertainment Branded merchandise Convenient parking It turns out that all of these are important, but not all of them are important to every consumer. Thus, retailers must know what need sets exist and what segments exist around those need sets. One research study that gives some insight into this found four basic need sets for traditional malls and factory outlets: 8
1. Mall Essentials - basic requirements including
•Cleanliness
•Décor
•Employee service and friendliness
•Safety and security
•Parking
2. Entertainment - fun extras such as
•Fast food
•Movie theatres
•Other services such as banks and hair specialists
•Friends who shop the retailer
3. Convenience - factors that make shopping easier including
•Close to work and\or home
•Accessible to home and\or work
4. Brand-name Merchandise - brand availability as follows:
•Brand-name stores
•Current fashions
•New products
•More stores
As you can see, each need set represents a related cluster of characteristics. In addition, however, consumers can be grouped (segmented) in terms of their similarity regarding the importance they place on the different need sets. For example, there is the "Basic" shopper segment that only cares about mall essentials; an "Enthusiast" shopper segment that cares about all the need sets, with a particularly high emphasis on entertainment; a "serious shopper" who cares about brand-name merchandise and convenience; a "Destination" shopper who cares about mall essentials and brand-name merchandise; and a "Brand" shopper who only cares about brand-name merchandise. Clearly all shoppers are not the same, and retailers must work hard to adapt to the differing need sets of different shopper segments.
What do you think the need sets are for online retailers

Question 30

What are the four major uses or applications of an understanding of consumer behavior

Question 31

What is involved in creating satisfied customers

Question 32

Describe the needs that the following items might satisfy and the total cost to the consumer of obtaining the benefits of the total product.
a. Digital video recorder (e.g., TiVo)
b. Lasik eye surgery
c. Motorcycle
d. SUV

Question 33

Consumption Meaning and Motivation
Consumer behavior is the study of why consumers buy. Understanding consumer behavior is at the heart of marketing strategy and a major focus of this text. Government agencies must "sell" ideas and services (e.g., The Affordable Care Act, tax increases) to citizens. Nonprofits must convince consumers to contribute to their organizations (e.g., Salvation Army). Companies must persuade consumers to buy their products and services. Some products and services are essential. However, much of consumption is not need-based, at least in a functional sense. Many companies spend considerable money and effort convincing consumers to buy products, services, or brands they don't really need. And consumers often want products and services they cannot afford, which, if acted on, can lead to negative financial consequences such as crushing credit card debt. In this insight we explore some of the factors driving consumer purchases that drive at the deeper meaning of consumption beyond mere function and necessity.
Meaning in the mundane -Sometimes consumers know what they want-from simple and relatively inexpensive everyday things like milk, bread, and socks, which require little decision effort, to more expensive items such as cars, TVs, and homes, which require considerable decision effort. Even in these situations where products meet basic needs, there can be far more meaning in the objects purchased than might meet the eye. Cars and homes can take on important meanings over time when they are associated with major events such as a first date, a child's first step, and so on. Even truly mundane products can attain heightened meaning if associated with important events or people in one's life. Chapter 12 deals with this idea of products becoming a part of the extended self and as a consequence taking on much deeper meanings than might initially seem possible.
Meaning in avoidance -Consumers often know what they don't want-at least at the broadest level-and make consumption choices accordingly. Consumers don't want fear of physical harm in their lives-so they buy cars with safety enhancements and products such as smoke alarms and carbon monoxide detectors to reduce physical risk. Consumers don't want financial risk in their lives-so they buy insurance and extended warranties, and hire financial planners. Risk and risk avoidance are an important part of consumer behavior and decision making, as discussed in Chapter 3 and Chapter 16.
Meaning in innovative brands -The iPhone is unquestionably a marketing success. It has helped to make Apple one of the most profitable companies in the world. 20 Consumers willingly wait in long lines for hours to have the chance to buy a new version of the iPhone. And yet, consumers didn't know they wanted that product until it already existed. The iPhone is clearly more than just a phone. It has many meanings to consumers-including innovative, cutting-edge, sophisticated, intellectual-that consumers buy as much or more than the phone. In fact, a brand's personality can be as much a driver of purchase as how well it meets functional requirements, as discussed in Chapter 10.
The more radical the innovation, the more marketers must be able to see the match between customer core needs and the possibilities created by emerging technology. Below are a few quotes about the challenges of innovating ahead of the customer.
You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. 21
-Steve Jobs
It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them. 22
-Steve Jobs
The iPhone is a marketer's dream. However, most new products do not succeed. Why this is so and how marketers can adapt their strategies is a key aspect of Chapter 7.
Meaning beyond function -Women's hair removal is highly popular in the United States and has led to a thriving industry including razors, chemical depilatories, and electrolysis. However, women in other parts of the world-France, Italy, China-do not shave. 23 Crest's introduction of "Whitestrips" in 2001 created a new over-the-counter product to whiten teeth that has since grown to a multimillion-dollar market. 24 Such examples highlight the fact that "needs" come in various forms. While being hair-free under one's arms or having whiter teeth may not improve one's physical well-being, in many countries and cultures, such attributes are related to the need to belong or to be respected, as discussed in Chapter 10. Some consumer groups argue that marketers create unnecessary needs on the part of the consumer and worry about their consequences for both the individual and society, as discussed in Chapter 20.
How and why do you think products acquire meaning to consumers

Question 34

What is social marketing

Question 35

What are the major outcomes for the firm of the marketing process and consumers' responses to it

Question 36

How would you define the product that the Hard Rock Cafe provides What needs does it meet

Question 37

Consumption Meaning and Motivation
Consumer behavior is the study of why consumers buy. Understanding consumer behavior is at the heart of marketing strategy and a major focus of this text. Government agencies must "sell" ideas and services (e.g., The Affordable Care Act, tax increases) to citizens. Nonprofits must convince consumers to contribute to their organizations (e.g., Salvation Army). Companies must persuade consumers to buy their products and services. Some products and services are essential. However, much of consumption is not need-based, at least in a functional sense. Many companies spend considerable money and effort convincing consumers to buy products, services, or brands they don't really need. And consumers often want products and services they cannot afford, which, if acted on, can lead to negative financial consequences such as crushing credit card debt. In this insight we explore some of the factors driving consumer purchases that drive at the deeper meaning of consumption beyond mere function and necessity.
Meaning in the mundane -Sometimes consumers know what they want-from simple and relatively inexpensive everyday things like milk, bread, and socks, which require little decision effort, to more expensive items such as cars, TVs, and homes, which require considerable decision effort. Even in these situations where products meet basic needs, there can be far more meaning in the objects purchased than might meet the eye. Cars and homes can take on important meanings over time when they are associated with major events such as a first date, a child's first step, and so on. Even truly mundane products can attain heightened meaning if associated with important events or people in one's life. Chapter 12 deals with this idea of products becoming a part of the extended self and as a consequence taking on much deeper meanings than might initially seem possible.
Meaning in avoidance -Consumers often know what they don't want-at least at the broadest level-and make consumption choices accordingly. Consumers don't want fear of physical harm in their lives-so they buy cars with safety enhancements and products such as smoke alarms and carbon monoxide detectors to reduce physical risk. Consumers don't want financial risk in their lives-so they buy insurance and extended warranties, and hire financial planners. Risk and risk avoidance are an important part of consumer behavior and decision making, as discussed in Chapter 3 and Chapter 16.
Meaning in innovative brands -The iPhone is unquestionably a marketing success. It has helped to make Apple one of the most profitable companies in the world. 20 Consumers willingly wait in long lines for hours to have the chance to buy a new version of the iPhone. And yet, consumers didn't know they wanted that product until it already existed. The iPhone is clearly more than just a phone. It has many meanings to consumers-including innovative, cutting-edge, sophisticated, intellectual-that consumers buy as much or more than the phone. In fact, a brand's personality can be as much a driver of purchase as how well it meets functional requirements, as discussed in Chapter 10.
The more radical the innovation, the more marketers must be able to see the match between customer core needs and the possibilities created by emerging technology. Below are a few quotes about the challenges of innovating ahead of the customer.
You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. 21
-Steve Jobs
It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them. 22
-Steve Jobs
The iPhone is a marketer's dream. However, most new products do not succeed. Why this is so and how marketers can adapt their strategies is a key aspect of Chapter 7.
Meaning beyond function -Women's hair removal is highly popular in the United States and has led to a thriving industry including razors, chemical depilatories, and electrolysis. However, women in other parts of the world-France, Italy, China-do not shave. 23 Crest's introduction of "Whitestrips" in 2001 created a new over-the-counter product to whiten teeth that has since grown to a multimillion-dollar market. 24 Such examples highlight the fact that "needs" come in various forms. While being hair-free under one's arms or having whiter teeth may not improve one's physical well-being, in many countries and cultures, such attributes are related to the need to belong or to be respected, as discussed in Chapter 10. Some consumer groups argue that marketers create unnecessary needs on the part of the consumer and worry about their consequences for both the individual and society, as discussed in Chapter 20.
Can you see any potential negative consequences to marketing attempts to encourage purchases of products consumers don't need

Question 38

What is customer value, and why is it important to marketers

Question 39

What are the major outcomes for the individual of the marketing process and consumers' responses to it

Question 40

To what extent, if any, are marketers responsible for injurious consumption involving their products

Question 41

Consumption Meaning and Motivation
Consumer behavior is the study of why consumers buy. Understanding consumer behavior is at the heart of marketing strategy and a major focus of this text. Government agencies must "sell" ideas and services (e.g., The Affordable Care Act, tax increases) to citizens. Nonprofits must convince consumers to contribute to their organizations (e.g., Salvation Army). Companies must persuade consumers to buy their products and services. Some products and services are essential. However, much of consumption is not need-based, at least in a functional sense. Many companies spend considerable money and effort convincing consumers to buy products, services, or brands they don't really need. And consumers often want products and services they cannot afford, which, if acted on, can lead to negative financial consequences such as crushing credit card debt. In this insight we explore some of the factors driving consumer purchases that drive at the deeper meaning of consumption beyond mere function and necessity.
Meaning in the mundane -Sometimes consumers know what they want-from simple and relatively inexpensive everyday things like milk, bread, and socks, which require little decision effort, to more expensive items such as cars, TVs, and homes, which require considerable decision effort. Even in these situations where products meet basic needs, there can be far more meaning in the objects purchased than might meet the eye. Cars and homes can take on important meanings over time when they are associated with major events such as a first date, a child's first step, and so on. Even truly mundane products can attain heightened meaning if associated with important events or people in one's life. Chapter 12 deals with this idea of products becoming a part of the extended self and as a consequence taking on much deeper meanings than might initially seem possible.
Meaning in avoidance -Consumers often know what they don't want-at least at the broadest level-and make consumption choices accordingly. Consumers don't want fear of physical harm in their lives-so they buy cars with safety enhancements and products such as smoke alarms and carbon monoxide detectors to reduce physical risk. Consumers don't want financial risk in their lives-so they buy insurance and extended warranties, and hire financial planners. Risk and risk avoidance are an important part of consumer behavior and decision making, as discussed in Chapter 3 and Chapter 16.
Meaning in innovative brands -The iPhone is unquestionably a marketing success. It has helped to make Apple one of the most profitable companies in the world. 20 Consumers willingly wait in long lines for hours to have the chance to buy a new version of the iPhone. And yet, consumers didn't know they wanted that product until it already existed. The iPhone is clearly more than just a phone. It has many meanings to consumers-including innovative, cutting-edge, sophisticated, intellectual-that consumers buy as much or more than the phone. In fact, a brand's personality can be as much a driver of purchase as how well it meets functional requirements, as discussed in Chapter 10.
The more radical the innovation, the more marketers must be able to see the match between customer core needs and the possibilities created by emerging technology. Below are a few quotes about the challenges of innovating ahead of the customer.
You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. 21
-Steve Jobs
It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them. 22
-Steve Jobs
The iPhone is a marketer's dream. However, most new products do not succeed. Why this is so and how marketers can adapt their strategies is a key aspect of Chapter 7.
Meaning beyond function -Women's hair removal is highly popular in the United States and has led to a thriving industry including razors, chemical depilatories, and electrolysis. However, women in other parts of the world-France, Italy, China-do not shave. 23 Crest's introduction of "Whitestrips" in 2001 created a new over-the-counter product to whiten teeth that has since grown to a multimillion-dollar market. 24 Such examples highlight the fact that "needs" come in various forms. While being hair-free under one's arms or having whiter teeth may not improve one's physical well-being, in many countries and cultures, such attributes are related to the need to belong or to be respected, as discussed in Chapter 10. Some consumer groups argue that marketers create unnecessary needs on the part of the consumer and worry about their consequences for both the individual and society, as discussed in Chapter 20.
Do marketers create needs

Question 42

What is required to provide superior customer value

Question 43

What are the major outcomes for society of the marketing process and consumers' responses to it

Question 44

How could social marketing help alleviate some of society's problems

Question 45

What is a total product

Question 46

What is product position

Question 47

Respond to the questions in Consumer Insight 1-2.

Question 48

What is involved in the consumer analysis phase of market analysis in Figure 1-1

Question 49

What is meant by injurious consumption

Question 50

Is the criticism of Nike for creating a shoe that is symbolic of success to some groups valid Why or why not

Question 51

What is involved in the company analysis phase of market analysis in Figure 1-1

Question 52

What is meant by consumer lifestyle

Question 53

Robert's American gourmet snack foods produces herbal-based snacks such as Spirulina Spirals and St. John's Wort Tortilla Chips. According to the company president, "We're selling like crazy. We don't do research. We react as sort of a karma thing." 25 How would you explain the firm's success What are the advantages and risks of this approach