How can marketers stay on top of changes in lifesyle trends?
> In year 1, Aldo sold investment land with a $61,000 tax basis for $95,000. Payment consisted of $15,000 cash down and the purchaser’s note for $80,000. The note is being paid in 10 annual installments of $8,000, beginning in year 2. a. Compute Aldo’s rec
> In year 1, Maxim sold investment land with a tax basis of $77,000. Payment consisted of $10,000 cash down and the purchaser’s note for $90,000. The note is payable in equal installments of $45,000 in years 2 and 3. a. Compute Maxim’s realized gain on the
> Refer to the facts in the preceding problem. a. Compute the difference between TPW’s book and tax income resulting from the installment sale method. b. Is this difference favorable or unfavorable? c. Using a 21 percent tax rate, determine the effect of t
> Lento Inc. owned machinery with a $30,000 initial cost basis. Accumulated book depreciation with respect to the machinery was $12,000, and accumulated tax depreciation was $19,100. Lento sold the machinery for $13,000 cash. Lento’s marginal tax rate is 2
> In year 0, Jarmex paid $55,000 for an overhaul of a tangible operating asset. Jarmex has a 21 percent marginal tax rate and uses a 7 percent discount rate to compute NPV. a. Compute the after-tax cost of the overhaul if Jarmex can deduct the $55,000 paym
> Hansen Company, a cash basis taxpayer, paid $50,000 for an asset in year 0. Assume it can deduct one-half of the cost in year 0 and the remainder in year 1. Assume a 21 percent tax rate and 8 percent discount rate. a. Calculate the net present value of H
> Refer to the facts in problem 6. Now assume that Firm A borrowed $50,000 to purchase the asset. In each year, it paid $3,800 annual interest on the debt. The interest payments were deductible. a. How does this change in facts affect Firm A’s net cash flo
> Taxpayer Y, who has a 30 percent marginal tax rate, invested $65,000 in a bond that pays 8 percent annual interest. Compute Y’s annual net cash flow from this investment assuming that: a. The interest is tax-exempt income. b. The interest is taxable inco
> Mr. JK, a U.S. citizen and resident of Vermont, owns 100 percent of the stock of JK Services, which is incorporated under Vermont law and conducts business in four counties in the state. JK Services owns 100 percent of the stock of JK Realty, which is in
> What is cognitive dissonance?
> Explain the difference between a need and a want.
> How does learning new information make it more likely that we’ll forget things we’ve already learned?
> How do different types of reinforcement enhance learning? How does the strategy of frequency marketing relate to conditioning?
> Describe three types of motivational conflicts, citing an example of each from current marketing campaigns.
> Name the two basic measures of memory and describe how they differ from one another.
> What is motivation and why is this idea so important to marketers?
> If a consumer is familiar with a product, advertising for it can work both ways by either enhancing or diminishing recall. Why?
> How is associative memory like a spider web?
> What are the major differences between the positivist and interpretivist paradigms in consumer research?
> A group of psychologists argued that we need to revise Maslow’s Hierarchy of Needs. They propose we should delete “self-actualization” from the pinnacle and replace it with “parenting.” Right below this peak, they added “mate retention” and “mate acquisi
> This chapter states “people often buy products not for what they do but for what they mean. “ Explain the meaning of this statement and provide an example.
> List the three types of memory, and explain how they work together.
> What are some strategies marketers can use to increase consumers’ involvement with their products?
> Give an example of an episodic memory.
> What is popular culture, and how does this concept relate to marketing and consumer behavior?
> How can marketers use repetition to increase the likelihood that consumers will learn about their brand?
> What is the major difference between behavioral and cognitive theories of learning?
> What is the difference between classical conditioning and instrumental conditioning?
> What is role theory, and how does it help us to understand consumer behavior?
> What is market segmentation? Give three examples of market segments.
> Many college students “share” music by downloading clips from the Internet. Interview at least five people who have downloaded at least one song or movie without paying for it. Do they feel they are stealing? What explanations do they offer for this beha
> Give an example of a halo effect in marketing.
> What is the difference between an unconditioned stimulus and a conditioned stimulus?
> Describe a multi-attribute attitude model, listing its key components.
> According to balance theory, how can we tell if a triad is balanced or unbalanced? How can consumers restore balance to an unbalanced triad?
> What is the foot-in-the-door technique? How does self-perception theory relate to this effect?
> We sometimes enhance our attitude toward a product after we buy it. How does the theory of cognitive dissonance explain this change?
> List the three hierarchies of attitudes, and describe the major differences among them.
> Describe the ABC model of attitudes.
> What is an avatar, and why might an advertiser choose to use one instead of hiring a celebrity endorser?
> Describe the Theory of Reasoned Action. Why might it not be equally valuable when it is applied to non-Western cultures?
> Does money buy happiness? Why or why not?
> Describe the Elaboration Likelihood Model, and summarize how it relates to the relative importance of what is said versus how it’s said.
> What are three obstacles to predicting behavior even if we know a person’s attitudes?
> What is a subjective norm, and how does it influence our attitudes?
> Do humorous ads work and if so under what conditions?
> How does the Two-Factor Theory explain the effects of message repetition on attitude change?
> When should a marketer present a message visually versus verbally?
> Marketers must decide whether to incorporate rational or emotional appeals in a communications strategy. Describe conditions that are more favorable to one or the other.
> How does Freud’s work on the the unconscious mind relate to marketing practice?
> How did tattoos originate?
> Define a schema and provide an example of how this concept is relevant to marketing.
> How do Eastern and Western cultures tend to differ in terms of how people think about the self?
> What does “the looking glass self” mean?
> Have ideals of beauty in the United States changed over the last 50 years? If so, how?
> How might the “digital self” differ from a consumer’s self-concept in the real world, and why is this difference potentially important to marketers?
> Compare and contrast the real versus the ideal self. List three products for which a person is likely to use each type of self as a reference point when he or she considers a purchase.
> Describe two factors that can lead to stimulus adaptation.
> What is a positioning strategy? What are some ways marketers can position their products? A positioning strategy is a fundamental part of a company’s marketing efforts as it uses elements of the marketing mix (i.e., product design, price, distribution, a
> What do we mean by the concept of augmented reality? Give an example that is not discussed in the chapter. How does this concept differ from virtual reality?
> What is greenwashing, and why is it a problem for marketers?
> Why is market access an important aspect of consumer well-being? What are some important reasons why consumers can experience limited market access?
> Visit www.izod.com. Is a multi-attribute model a good one to apply to this product to explain how attitudes are formed? Why or why not? Suggest an alternative model.
> What is the primary difference between transformative consumer research and other kinds of consumer research?
> Does subliminal perception work? Why or why not?
> Define hedonic consumption and provide an example.
> State two important criticisms of marketing and provide the pros and cons for each.
> How does the sense of touch influence consumers’ reactions to products?
> What are business ethics, and why is this an important topic?
> Describe how opinion leaders can be formed and found on the Internet. Describe the advantages and disadvantages of using opinion leaders on the Web. How would this form of opinion leadership be different from any other form of opinion leadership (if at a
> Assign groups of students to go to an airport (or other location where they will find lots of foot traffic) to people watch. Have them classify as many people as possible according to social class based on the appearance and behaviors of individuals. Hav
> Have student groups devise a list of traditional male traits with respect to personal care and hygiene. Then, have them visit a cosmetics section of a major department store and interview salespeople with respect to the nature of their male customers. W
> Have each student interview four people (one each in their 20s, 30s, 40s, and 50s) to determine how important appearance is on the job. Then have students form groups in class to discuss their findings. In addition, have them discuss their own opinions o
> Go to www.specialized.com. Specialized Bicycles is one of the leading manufacturers and marketers of all types of bikes. Browse their website. Give a brief description of their different product lines. How does Specialized motivate consumers to get into
> Collect ads for three different product categories that target families. Find another set of ads for different brands of the same items that don’t feature families. Prepare a report comparing the probable effectiveness of the two approaches. Which specif
> Swiss Legend, a watch brand, gets famous people to wear its colorful timepieces. One way it does this is to give away its product at awards shows. Publicists call this common practice “gifting the talent”: Companies provide stars with “goody bags” full
> As more people enter virtual worlds like Second Life and Kaneva, family decision-making research may have to include our virtual partners (and children?) as well. Do you agree? How do you think consumer researchers could use a virtual world to help them
> The Federal Trade Commission recently sponsored a conference on “Blurred Lines: Advertising or Content?” that reflects the agency’s concerns about the resemblance between native ads and “real” articles. The chapter discusses the problem of sock puppeting
> Why would a marketer consider saying negative things about his or her product? When is this strategy feasible? Can you find examples of it?
> Ask a friend to “talk through” the process he or she used to choose one brand over others during a recent purchase. Based on this description, can you identify the decision rule that was most likely employed?
> Construct a multi-attribute model for a set of local restaurants. Based on your findings, suggest how restaurant managers can improve an establishment’s images via the strategies described in this chapter.
> Devise an attitude survey for a set of competing automobiles. Identify areas of competitive advantage or disadvantage for each model you include.
> A recent sociometric study on obesity (similar to the one we read about regarding clusters of smokers) provides a striking example of how our social networks influence what we do. The researchers analyzed a sample of more than 12,000 people who participa
> Industrial purchase decisions are totally rational. Aesthetic or subjective factors don’t – and shouldn’t – play a role in this process. Do you agree?
> Go to http://shop.vans.com. Find the link for creating your own custom pair of Vans shoes. Go through the process and print an example of your shoes to take in to class and share. Describe the experience. Did the experience contribute to the level of inv
> Watchdog groups have long decried product placements because they blur the line between content and advertising without adequately informing viewers. The networks themselves appear to be divided on how far they want to open the gate. According to one stu
> Define the three levels of product categorization described in the chapter. Diagram these levels for a health club.
> Sometimes a company actually invents a determinant attribute: Pepsi-Cola accomplished this when it stamped freshness dates on soda cans. It spent about $25 million on an advertising and promotional campaign to convince consumers that there’s nothing quit
> Research supports the argument that the way we pay for a product changes the way we perceive it. More specifically, credit cards prime people to focus less on the costs of the item and more on the benefits. Using plastic decouples the expense of the purc
> Discuss some conditions that would cause you to advise a marketer to use a comparative advertising strategy.
> The sleeper effect implies that perhaps we shouldn’t worry too much, about how positively people evaluate a source. Similarly, there is a saying in public relations that “any publicity is good publicity.” Do you agree?
> A flog is a fake blog a company posts to build buzz around its brand. Is this ethical?
> The Coca-Cola Company pulled a UK Internet promotion campaign after parents accused it of targeting children by using references to a notorious pornographic movie. As part of its efforts to reach young social media users for its Dr. Pepper brand, the com
> Google updated its terms of service to allow shared endorsements though it’s likely most users don’t read these terms too carefully. Not everyone is thrilled about finding out his or her comments appear in an ad without giving explicit permission. Users
> The Great Recession is over, so things ar elooking up for many consumers. Still, is frugality the “new normal” or will many of us revert to the free-spending dys before the bubble burst in 2008?
> Is there such a thing as personality? If so, how might you intergrate knowledge about consumer’s personality traits into a marketing strategy?
> Commercial Alert, a consumer group, is highly critical of neuromarketing. The group's executive director wrote, “What would happen in this country if corporate marketers and political consultants could literally peer inside our brains and chart the neura
> Go to www.peapod.com. Online grocery is alive and well. Although most grocery purchases that we make fall into the category of habitual decision-making, somehow, this concept is working for some people. Spend some time on this site and assemble a grocery
> One way to clearly see the impact of shifting cultural values on consumption is to look at the increasing emphasis on the importance of health and wellness. In recent years, top-performing new food/beverage products featured items with natural or organic
> You may wish to encourage students to explore TripAdvisor before discussing this case. As an exercise, you could ask them to plan out a sample Spring Break trip using TripAdvisor reviews. 1. How comfortable should consumers be in letting the review of o
