CHAPTER 7

2, Describe the ABC model of attitudes.

ABC model of attitudes is affect, behavior and cognition. Affect refers
to the way a consumer feels about an attitude object. Behavior
involves the person intention to do something regard to an attitude
object an intention does not always result in an actual behavior.
Cognitive refers to the beliefs a consumer has about an attitude
object.
The model emphasizes the interrelationship among knowing, feeling
and doing. Consumers attitude towards a product cannot be
determined by simply identifying their beliefs about it. Example, a
researcher may find that shoppers know a particular camcorder has
an 8:1 power zoom lens, auto focus and flying erased head, but such
finding do not indicate whether they feel these attributes are good,
bad , or irrelevant, or whether they would actually buy the camcorder.
All three components of an attitude are important, but their relative
importance will vary depending on a consumers level of motivation
with regard to the attitude object, whether they are light or heavy
users, and so on.
3, List the three hierarchies of attitudes and describe the major
differences among
them.
- High-Involvement Hierarchy: Customers use a problem-solving
process to reach buying decisions about a product, usually when
contemplating an important purchase, such as the latest portable
electronic device. We actively study product features and benefits; and
what we learn our cognitions become beliefs about a product. These
beliefs then lead to our forming affective (positive or negative) feelings
about the product.
Beliefs -> Affect -> Behavior -> Attitude: Based on cognitive
information processing
- Low-Involvement Hierarchy: The purchase is usually insignificant and
we do not prefer one brand over another; here, we act before forming
firm attitudes, and our attitudes emerge after we have used and
evaluated a product. We may select a product out of habit or
availability, such as paper towels.
Beliefs -> Behavior -> Affect -> Attitude: Based on behavioral learning
processes.

- Experiential Hierarchy: Consumers are interested in enjoying the

product and its symbols and emotional meanings before learning about
its features and benefits.
Affect -> Behavior -> Beliefs -> Attitude: Based on hedonic
consumption
8, According to balance theory, how can we tell if a triad is balanced or
unbalanced?
How can consumers restore balance to an unbalanced triad?
Components of a triad can be either positive or negative. More
importantly, people alter these components in order to make relations
among them consistent. The theory specifies that people desire
relations among elements in a triad to be harmonious, or balanced. If
they are not, a state of tension will result until somehow the person
changes his perceptions and restores balance.
11, What is a subjective norm, and how does it influence our attitudes?
Subjective norms are influenced by our perceptions of the beliefs of
those around us: parents, friends, colleagues, partners, etc. Consumers
have a sense or belief about whether or not these individuals and
groups would approve or disapprove of the behavior. But we also have
to factor in how motivated we are to comply with their views. This can
vary from one situation to another.
The value of SN is arrived at by including two factors: (1) the intensity
of a normative belief (NB) that others believe an action should be
taken or not taken, and (2) the motivation to comply (MC) with that
belief (i.e., the degree to which the consumer takes others anticipated
reactions into account when evaluating a course of action or a
purchase).

CHAPTER 8
1, Why do we say that mindless decision making can actually be
more efficient?
Mindless decisions can cut down time that could be used for something
else and overthinking starts to come into the equation as well and we
will talk ourselves out of the decision all together. If we used rational
decision making processes for every decision we would have to no time left to enjoylife.
Sometimes the decision-making process is almost automatic; we seem
to make snap judgments based on very little information. At other
times, coming to a purchase decision begins to resemble a full-time
job. A person may literally spend days or weeks thinking about an

important purchase such as a new home, even to the point of

obsession.
4, What is the difference between the behavioral influence and
experiential perspectives on decision making? Give an example of the
type of purchase that each perspective would most likely explain.
Behavioral Influence Perspective explores decisions
conditions of low involvement.

made

under

Consumers may be highly involved in a decision, but still the decisions

can
not
wholly
be
explained
rationally. Experiential
Perspective stresses the Gestalt, or totality, of the product or service.
Under the circumstances of the behavioral influence perspective,
managers must concentrate on assessing the characteristics of the
environment, such as the design of a retail outlet or whether a package
is enticing, that will influence members of a target market. In other
cases, no single quality is the determining factor. Instead,
the experiential perspective stresses the Gestalt, or totality, of the
product or service.
7, What is prospect theory? Does it support the argument that people
are rational decision makers?
Prospect theory, a descriptive model of how people make choices, finds
that utility is a function of gains and losses, and risk differs when the
consumer faces options involving gains versus those involving losses.
This basically says that the factors of decision making are relative.
That would imply that we are not rational.
9, List three types of perceived risk, giving an example of each.
Monetary Risk (eg. Real estate values dropping)
Functional Risk (eg. Drill bits, if not used properly will break)
Physical Risk (eg. Buying a motorcycle)
Social Risk (eg. Wearing the wrong clothing)
Psychological Risk (eg. Blood diamonds, fur
There are five types of perceived risk listed in the text: monetary (high
dollar items), functional (product use requires exclusive commitment),
physical (things that are perishable or potentially hazardous), social
(socially visible or symbolic goods), and psychological (goods that may
engender guilt).
Functional perceived risk: One of the most common types of perceived
risk, functional or quality risk refers to the fear that a product or
service will fail to deliver promised functions or benefits. A new

computer, for example, might fail to run the resource-intensive, audio

editing program a sound engineer needs to perform her job.
Physical Risk
Physical risk refers to the perceived potential for a purchase to cause
bodily harm to a person or loved one. A firearm, for example, might
create a high level of perceived physical risk in the minds of some
customers. A book or magazine, by contrast, prompts physical risk
concerns in few customers.
Social Risk
Social risk refers to the possibility that buying a product or using a
service can reduce a persons status with friends, family or neighbors.
If, for example, someone purchases a pure-bred dog and finds his
friends consider adopting animals from shelters the socially responsible
behavior, he suffers a loss of status.
Psychological Risks
Consumers also face questions about whether a given purchase is the
morally right choice. For example, a customer may want to buy from a
particular company because it offers inexpensive alternatives, but feel
ambivalent due to the companys labor practices.
Monetary Risk
Financial risk boils down to a fear that a potential purchase can tax or
outstrip a persons monetary resources, now or in the future. Financial
risk operates on both a subjective and objective level. A person with
low or variable income can experience a high level of subjective
financial risk, even with low-cost items. The purchase of a home, on
the other hand, often means an objectively high level of risk, even for
those with stable finances.

CHAPTER 9
1, What do we mean by situational self-image? Give an example for
this phenomenon.
Situational Self-Image is the role a person plays at any one time help
to determine what he/she wants to buy or consume. For example,
party girl vs. academic student.
3, What is the time poverty, and how can it influence our purchase
decision?
Time Poverty is polychronic Activity or Multi-Tasking. Consumers
believe they are more pressed from time then ever before.

5, List three separate motivations for shopping, and give an example

for each.
- Many people have no place else to go to spend their leisure time
(stores have replaced the traditional town square)
- Sharing of Common Interests: Stores frequently offer specialized
goods that allow people with shared interests to communicate.
- Interpersonal Attraction: Natural place to congregate. (Hangout for
teens, safe for seniors)
- Instant Status: Some people like the feeling of being waited on, even
if they arent buying anything.
- Thrill of the Chase: Some people pride themselves on their knowledge
of the marketplace. Bargaining as a sport.
7, List three factors that help to determine store image.
Store Image is stores personality composed of such attitudes as
location, merchandise suitability, and the knowledge and congeniality
of the sales staff. It can be a crucial part of the shopping experience.
Features of a store profile typically work together to create an overall
impression.

CHAP 10
1, Name two dimensions that influence whether reference groups
affect an individual's purchase decisions.
informational influence (seek knowledge and info about product),
utilitarian influence (to satisfy others, influenced by their prefs),
value-expressive influence (enhance their image, trying to be
somebody)
2, List three types of social power, and give an example of each.
Referent group - make a decision because you want to identify
with someone (Lady Gaga uses polaroids)
Information group - person who possess information that others
would like to know (Women's Wear Daily can make or break a
company with their reviews)
Legitimate power - Darth Vader (authority of police officers)
Expert power (Hawking promotes US Robotics bc of his
knowledge and experience in the area)
Reward power (approval of judges on American Idol) Coercive
power (threats from bullys)

3, Which tend to influence our behavior more: large formal

groups or small informal groups? Why?
Small informal groups, because we will conform to the social
group of people we trust more than the masses that are informed
by corporations. Informal groups share similar goals and
interests.
Small informal groups - more a part of our day to day lives higher on normative influence
4, What is a brand community, and why is it of interest to
marketers?
A brand community is a group of consumers who share a set of
social relationships based on usage of or interest in a product.
They illustrate trends in consumer behavior, and members
become emotionally involved in the company's welfare and will
serve as brand missionaries.
A community that comes together because of a shared loyalty
to a certain brand. They carry the marketing message to others
- they can coach newbies to maximize the enjoyment of a
product.
5, Describe the difference between a membership and an
aspirational reference group and give an example of each kind.
Membership reference groups (married women) consist of people
we actually know, whereas we don't know those in an aspirational
reference group(USA Gymnastics team), but we admire them
anyways.
Membership - members of the group know them - using ordinary
people in commercials
Aspirational - not known - using celebrities
6, Name one factor that makes it more likely a person will
become part of a consumer's membership reference group.
Propinquity (physical nearness), Mere Exposure (we like
persons/things if we see them more often), Group Cohesiveness
(group members are attracted to each other

7, Define "deindividuation" and give an example of this effect.

A process whereby individual identities become submerged within
a group. We sometimes behave more wildly at costume parties or
on Halloween than we do when other individuals can easily
identify us.
Individual identity becomes subject to the group. People are
more likely to dress up in a group than they would by
themselves
8, What is the risky shift, and how does it relate to shopping with
friends?
Refers to the observation that group members tend to consider
riskier alternatives after the group discusses an issue than they
would if each member made his or her own decision without
talking about it with others.
Diffused responsibility - you are more likely to take risks in a
group, so shopping with friends will increase your chances of
irresponsible spending
9, What is the difference between normative and informational
social influence?
People who model their behavior after others because they take
others' behavior as evidence of the correct way to act are
conforming because of informational social influence; those who
conform to satisfy the expectations of others or to be accepted by
the group are affected by normative social influence.
Normative: based on social norms
Informative: tupperware party

10, Define "conformity" and give an example of it. Name three

reasons why people conform. How does the Principle of Least
Interest relate to your success in a romantic relationship?
Conformity is a change in beliefs or actions as a reaction to real
or imagined group pressure, for example, we stop for traffic
lights. People conform because of cultural pressures, fear of
deviance, commitment, group unanimity, size, and expertise, and
susceptibility to interpersonal influence. According to the
Principle of Least Interest, the person who is least committed to

staying in a relationship has the most power because that party

doesn't care as much if the other person rejects him.
A change in beliefs or actions as a result to real or imagined
group pressure.1- Cultural pressures: encourage conformity to a
greater or lesser degree. An example would be how America
pushes products to be made in america.2 - Fear of Deviance:
individuals may have reason to believe that group will apply
sanctions if conformity is not met. 3 - Commitment: The more
people are dedicated to a group, the greater their motivation to
conform to the group's wishes
11, What is "social comparison"? To what type of person do we
usually choose to compare ourselves?
We determine our own worth based on how we stack up
compared to others. We compare ourselves to opinion leaders
and other people in the same social standing as us.
Comparing ourselves to group leaders
12, What is the difference between independence and anti
conformity?
The latter's objective is to ultimately defy the group, while the
former seeks only to show self-reliance and individual uniqueness
13, What is word-of-mouth, and how can it be more powerful than
advertising?
Product information that is transmitted by individuals to
individuals; often more reliable than formal marketing channel's
recommendations since it comes from people we know.
Information shared between two individuals - causes more
social pressure and comes from a trusted source
14, Which is more powerful: positive or negative word of mouth?
Negative comments are weighed more heavily than positive
ones.
15, What are 3 factors that encourage WOM?

1. High involvement which leads to taking pleasure in talking

about the product
2. High knowledge which leads to discussion with others to
show said knowledge about the product
3. Genuine concern for another
Use agents to try out products and spread information about the
product online
16, What is viral marketing? Guerrilla marketing? Give an
example of each.
Guerrilla marketing uses promotional strategies that use
unconventional means and venues to push products; the
marketer "ambushes" unsuspecting recipients (street teams).
Viral marketing is the strategy of getting visitors to a Web site to
forward information on the site to their friends in order to make
still more consumers aware of the product (online mini giraffe
craze).
Guerrilla marketing.Unconventional marketing that catches the
eye
17, What is an opinion leader? Give three reasons why they are
powerful influences on consumers' opinions. What are some
characteristics of opinion leaders?
Opinion leaders are individuals who are frequently able to
influence others' attitues or behaviors. They have social power for
one of several reasons, such as they are technically competent
(expert power), socially active, similar to consumers, and among
the first to buy new products.
Someone who is frequently able to influence others' attitudes or
behaviors. They are technically competent - seen to possess
expert power. Socially active and highly interconnected in their
communities. Convincing to the extent that they are
homophilous - degree to which a pair of individuals are similar in
terms of education, status, and beliefs. Characteristics: Socially
active, Involved in culture, Narcissistic.

18, Is there such a thing as a generalized opinion leader? Why or

why not?
This is someone we look to for reccomendations for all types of
purchases. They are very rare if they even exist; people may be
experts in multiple categories, but not every area.
19, What is the relationship between an opinion leader and an
opinion seeker?
Opinion leaders are also likely to be opinion seekers. They are
generally more involved in a product category and actively seek
information.
20, What is the difference between a market maven and a
surrogate consumer?
A market maven is a person who likes to transmit marketplace
information of all types. A surrogate consumer is a person who
we retain to provide input into our purchase decisions(interior
decorators, professional shoppers).
21, How can marketers use opinion leaders to help them promote
their products or services?
Target opinion leaders by studying interactions among consumers
to see where they get their info (sociometry) or ask individuals if
they consider themselves opinion leaders (self-designation).
22, What are sociometric techniques? Under what conditions does
it make sense to use them?
They trace commnication patterns among members of a group. It
is most precise but difficult to implement. It's bestto apply in a
closed, self-contained social setting, where members are largely
isolated from other social networks.
Sociometric methods: research methods that traces patterns
among groups best to apply in a closed, self-contained social
setting

CHAP 11
1, What are some factors that influence how an organizational
buyer evaluates a purchase decision?
Expectations of supplier
Organization climate of own company
Buyers assessment of his own performance

5, List at least three roles employees play in organizational

decision making process.
Decisions become very important due to great responsibility for
others
Buyers perception of purchase situation is affected by
expectations of supplier, organizational climate of own company,
and buyers assessment of own performance
Organizations members share information and develop
organizational memory
9, What is the FLC, and why is it important to marketers
FLC is factors that determine how couples spend money/time,
combining trends in income and family composition with change
in demands, based on income whether they have children or the
woman works.
Using FLC concept to segment households
As we age, our preferences/needs for products and activities
tend to change
Pivotal events alter role relationships and trigger new stages of
life that alter our priorities
Family life cycle gives the characteristics of evolutionary phases
of families as the changing pattern determines these phases as
theyage,marry,havechildrenandretire
For example, Johnson & Johnson They launch their products
according to the family Life cycle. It has products ranging from
Baby care, Skin care for young, Wound care for all age groups,
etc.
Family Life Cycle is a very important tool from marketing
perspective as it gives marketers a clue or idea about buying
strategies of families according to the stage of the families
development.
1. impart lifestyle and consumption values to their members
2. influential in consumption decisions
3. make several joint purchase decisions
4. prime target market for goods and services

12, What is the difference between an autonomic and a syncretic

decision?
Autonomic decision vs. syncretic decisions
Autonomic decision is the decision when one family member
chooses a product for the whole family while Syncretic Decisions
purchase decision that is made jointly by both spouses.
Wives tend to have most say buying groceries, toys, clothes,
and medicines
Both make decisions for cars, vacations, homes, appliances,
furniture, home electronics, interior design, and long distance
phone services
As education increases, so does syncretic decision making
Even after death, spouses seem to still consider the one who
has died when making household decisions