SOLUTION MANUAL FOR CB : CONSUMER
BEHAVIOUR 3RD CANADIAN EDITION BY BARRY J.
BABIN (ALL CHAPTERS) A+
What is consumer behaviour? - (ANSWER)The study of the processes involved when
individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences
to satisfy needs and desires
Define the term consumer society - (ANSWER)A Consumer Society is one in which the
possession and use of an increasing number and variety of goods/services is the principal cultural
aspiration and the perceived route to personal happiness, social status, and national success
Explain the concept of the prosumer - (ANSWER)As the social web has grown and tools like
Twitter, blogs, Facebook and YouTube have allowed communications to flow faster and farther
than ever before -- inevitably causing the world to shrink and real-time to be the expectation --
people have changed. Those changes affect most aspects of our daily lives, including our roles as
individuals with buying power, and that's a shift that businesses and their employees need to
understand if they want to stay profitable in the future.
In simplest terms, people have moved from being CONsumers to PROsumers with far more
influence than ever before.
The term "prosumer" isn't a new one. It's been around the marketing world for years, but in
today's world of the social web, it has taken on a new importance that business leaders and
marketers can't ignore.
The term "prosumer" has transformed from meaning "professional consumer" to meaning
"product and brand advocate." Rather than simply "consuming" products, people are becoming
the voices of those products and significantly impacting the success or failure of companies,
products, and brands, particularly through their involvement on the social web.
No longer are businesses completely in control of their products, brands and messages. Today,
consumers are in control. The leaders of this shift are the members of the social web — bloggers,
,microbloggers, forum posters, social networking participants, and so on, who spread messages,
influence people around the world, and drive demand.
Prosumers are the online influencers that business leaders and marketers must not just identify
but also acknowledge, respect and develop relationships with in order for their products and
brands to thrive.
The high level steps to leveraging the power of prosumers are as follows:
Identify the key online influencers for your product, brand, business or
Give examples of the prosumer trend - (ANSWER)Participatory Society: Customer as partner in
co-construction of market value •http://www.jonessoda.com/ •http://uk.mymuesli.com/
•Crowd Shaped
•DIY Health
•Anti-consumerism and Voluntary Simplicity
Why do we say that consumption goes beyond the function? - (ANSWER)People's motivators
for consumption goes beyond simple function. Consumers also derive value from reasons that
span moral, experiential, social and identity .
What is the role of consumer behaviour in the organization? - (ANSWER)-Understanding of
market demand
-At the core of a company value proposition
-Drives customer segmentation/targeting
-Drives branding decisions
-Drives marketing communication decisions
Name some characteristics of today's environment that influences the changing role of
consumers - (ANSWER)•Global Inequality and the Rise of Nationalism •Learning from Base of
Pyramid Markets; "Buy American/British"; Cultural Responsibility; •Global Middle Class +
Luxury consumers from Emerging Markets •Citysumers -> 2/3 rd of world population expected
,to live in cities •Digital Economy, Social Media, + AI/Robots •Sustainability and Wellness
•Sharing Economy
Name some consumer trends that reflect the changing role of the consumer - (ANSWER)1)
prosumerism
2) nostalgia
3) instant entrepreneurship
4) tribalism
5) multisensationalism
6) authenticity
What are some implications of living in a consumer society? - (ANSWER)- competitive
acquisition
-overconsumption
-compulsive buying disorder
-techno stress
Define the term perception - (ANSWER)-Process by which stimuli is transformed into meaning:
where sensations are selected, organized, and interpreted.
Explain the stages in the perceptual theory - (ANSWER)The model applies the concept of
sensory perception to marketing and advertising. It pertains to how individuals form opinions
about companies and the merchandise they offer through the purchases they make. They use it to
develop marketing and advertising. Goes through three perception self, price and benefit.
sensory stimuli- sensory receptors- attention-interpretation- response - perception
Explain the term experiences as it relates to consumer behaviour - (ANSWER)experiences are
private events that occur in response to some stimulation. -Not self-generated! -Engage
consumers! •An experience occurs when a company intentionally uses services/retail space as
the stage, and goods as props, to engage customers in ways that creates memorable events. -
, Products are subjective symbols that precipitate feelings and promise fun and the possible
realization of fantasies.
Why are sensory systems so important when it comes to experiential marketing? - (ANSWER)-1.
Influences consumer attention, emotional reactions, behaviors, and meanings/perceptions. -2.
Sensory stimuli are part of business decision and integrated marketing strategy •Packaging;
design; ads; retail; logo; etc.
Give an explame of an ad that leaned heavily on the strength of perception - (ANSWER)The
subjective nature of perception is demonstrated by a controversial advertisement developed for
Benetton. Because a black man and a white man were handcuffed together, the ad was the target
of many complaints about racism after it appeared in magazines and on hoardings, even though
the company has a reputation for promoting racial tolerance. People interpreted it to mean that
the black man had been arrested by a white man.1 Even though both men are dressed identically,
people's prior assumptions shaped the ad's meaning. Of course, the company's goal was exactly
that: to expose us to our own perceptual prejudice through the ambiguity of the photo.
How do marketers exploit vision? - (ANSWER)Marketers rely heavily on visual elements in
advertising, store design and packaging. Meanings are communicated on the visual channel
through a product's size, styling, brightness and distinctiveness compared with competitors. They
also use colours as colour choices are made with regard to packaging, advertising, and even shop
fittings. Indeed, there is evidence to suggest that some colours (particularly red) are arousing
while others (such as blue) are relaxing. The power of colours to evoke positive and negative
feelings makes this an important consideration in advertising design.
Why is odour an effective marketing tool? - (ANSWER)Odours can stir the emotions or have a
calming effect. They can invoke memories or relieve stress. Some of our responses to scents
result from early associations with other experiences. As one marketer noted, an example 'is a
baby-powder scent that is frequently used in fragrances because the smell connotes comfort,
warmth, and gratification'
Why is music/ sound an effective marketing tool? - (ANSWER)-Affects behavior and feelings
•Music tempo influences pace of in-store traffic flow and sales volume -Important component of
store/brand positioning •Fit between store image/positioning and music
How is touch used in marketing? - (ANSWER)Although relatively little research has been done
on the effects of tactile stimulation on consumer behaviour,common observation tells us that this
BEHAVIOUR 3RD CANADIAN EDITION BY BARRY J.
BABIN (ALL CHAPTERS) A+
What is consumer behaviour? - (ANSWER)The study of the processes involved when
individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences
to satisfy needs and desires
Define the term consumer society - (ANSWER)A Consumer Society is one in which the
possession and use of an increasing number and variety of goods/services is the principal cultural
aspiration and the perceived route to personal happiness, social status, and national success
Explain the concept of the prosumer - (ANSWER)As the social web has grown and tools like
Twitter, blogs, Facebook and YouTube have allowed communications to flow faster and farther
than ever before -- inevitably causing the world to shrink and real-time to be the expectation --
people have changed. Those changes affect most aspects of our daily lives, including our roles as
individuals with buying power, and that's a shift that businesses and their employees need to
understand if they want to stay profitable in the future.
In simplest terms, people have moved from being CONsumers to PROsumers with far more
influence than ever before.
The term "prosumer" isn't a new one. It's been around the marketing world for years, but in
today's world of the social web, it has taken on a new importance that business leaders and
marketers can't ignore.
The term "prosumer" has transformed from meaning "professional consumer" to meaning
"product and brand advocate." Rather than simply "consuming" products, people are becoming
the voices of those products and significantly impacting the success or failure of companies,
products, and brands, particularly through their involvement on the social web.
No longer are businesses completely in control of their products, brands and messages. Today,
consumers are in control. The leaders of this shift are the members of the social web — bloggers,
,microbloggers, forum posters, social networking participants, and so on, who spread messages,
influence people around the world, and drive demand.
Prosumers are the online influencers that business leaders and marketers must not just identify
but also acknowledge, respect and develop relationships with in order for their products and
brands to thrive.
The high level steps to leveraging the power of prosumers are as follows:
Identify the key online influencers for your product, brand, business or
Give examples of the prosumer trend - (ANSWER)Participatory Society: Customer as partner in
co-construction of market value •http://www.jonessoda.com/ •http://uk.mymuesli.com/
•Crowd Shaped
•DIY Health
•Anti-consumerism and Voluntary Simplicity
Why do we say that consumption goes beyond the function? - (ANSWER)People's motivators
for consumption goes beyond simple function. Consumers also derive value from reasons that
span moral, experiential, social and identity .
What is the role of consumer behaviour in the organization? - (ANSWER)-Understanding of
market demand
-At the core of a company value proposition
-Drives customer segmentation/targeting
-Drives branding decisions
-Drives marketing communication decisions
Name some characteristics of today's environment that influences the changing role of
consumers - (ANSWER)•Global Inequality and the Rise of Nationalism •Learning from Base of
Pyramid Markets; "Buy American/British"; Cultural Responsibility; •Global Middle Class +
Luxury consumers from Emerging Markets •Citysumers -> 2/3 rd of world population expected
,to live in cities •Digital Economy, Social Media, + AI/Robots •Sustainability and Wellness
•Sharing Economy
Name some consumer trends that reflect the changing role of the consumer - (ANSWER)1)
prosumerism
2) nostalgia
3) instant entrepreneurship
4) tribalism
5) multisensationalism
6) authenticity
What are some implications of living in a consumer society? - (ANSWER)- competitive
acquisition
-overconsumption
-compulsive buying disorder
-techno stress
Define the term perception - (ANSWER)-Process by which stimuli is transformed into meaning:
where sensations are selected, organized, and interpreted.
Explain the stages in the perceptual theory - (ANSWER)The model applies the concept of
sensory perception to marketing and advertising. It pertains to how individuals form opinions
about companies and the merchandise they offer through the purchases they make. They use it to
develop marketing and advertising. Goes through three perception self, price and benefit.
sensory stimuli- sensory receptors- attention-interpretation- response - perception
Explain the term experiences as it relates to consumer behaviour - (ANSWER)experiences are
private events that occur in response to some stimulation. -Not self-generated! -Engage
consumers! •An experience occurs when a company intentionally uses services/retail space as
the stage, and goods as props, to engage customers in ways that creates memorable events. -
, Products are subjective symbols that precipitate feelings and promise fun and the possible
realization of fantasies.
Why are sensory systems so important when it comes to experiential marketing? - (ANSWER)-1.
Influences consumer attention, emotional reactions, behaviors, and meanings/perceptions. -2.
Sensory stimuli are part of business decision and integrated marketing strategy •Packaging;
design; ads; retail; logo; etc.
Give an explame of an ad that leaned heavily on the strength of perception - (ANSWER)The
subjective nature of perception is demonstrated by a controversial advertisement developed for
Benetton. Because a black man and a white man were handcuffed together, the ad was the target
of many complaints about racism after it appeared in magazines and on hoardings, even though
the company has a reputation for promoting racial tolerance. People interpreted it to mean that
the black man had been arrested by a white man.1 Even though both men are dressed identically,
people's prior assumptions shaped the ad's meaning. Of course, the company's goal was exactly
that: to expose us to our own perceptual prejudice through the ambiguity of the photo.
How do marketers exploit vision? - (ANSWER)Marketers rely heavily on visual elements in
advertising, store design and packaging. Meanings are communicated on the visual channel
through a product's size, styling, brightness and distinctiveness compared with competitors. They
also use colours as colour choices are made with regard to packaging, advertising, and even shop
fittings. Indeed, there is evidence to suggest that some colours (particularly red) are arousing
while others (such as blue) are relaxing. The power of colours to evoke positive and negative
feelings makes this an important consideration in advertising design.
Why is odour an effective marketing tool? - (ANSWER)Odours can stir the emotions or have a
calming effect. They can invoke memories or relieve stress. Some of our responses to scents
result from early associations with other experiences. As one marketer noted, an example 'is a
baby-powder scent that is frequently used in fragrances because the smell connotes comfort,
warmth, and gratification'
Why is music/ sound an effective marketing tool? - (ANSWER)-Affects behavior and feelings
•Music tempo influences pace of in-store traffic flow and sales volume -Important component of
store/brand positioning •Fit between store image/positioning and music
How is touch used in marketing? - (ANSWER)Although relatively little research has been done
on the effects of tactile stimulation on consumer behaviour,common observation tells us that this
