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Chapter 5

CONSUMER MARKETS AND


CONSUMER BUYER BEHAVIOR
MARKETING STARTER: CHAPTER 5
GoPro: Be a HERO!

Synopsis
You may never have heard of GoPro, the small but fast-growing company that makes tiny, wearable HD video
cameras. Yet few brands can match the avid enthusiasm and intense loyalty that GoPro has created in the hearts and
minds of its customers. A growing army of GoPro customersmany of them extreme sports enthusiastsare now
strapping amazing little GoPro cameras to their bodies, or mounting them on anything from the front bumpers of
race cars to the heels of skydiving boots, in order to capture the extreme moments of their lives and lifestyles. Then,
they cant wait to share those emotion-packed GoPro moments with friends. GoPros rich understanding of what
makes its customers tick is serving the young company well. Its enthusiastic customers are among the most loyal
and engaged of any brand. For example, GoPros Facebook fan base is more than 1.7 million and growing fast. All
that customer engagement and enthusiasm has made GoPro the fastest-growing camera company in the world.
GoPro knows that deep down, it offers customers much more than just durable little video cameras. More than that,
it gives them a way to share action-charged moments and emotions with friends.

Discussion Objective
A focused 10-minute discussion of the GoPro story will help students appreciate the many levels of factors that
affect how customers feel about, buy, and consume products. The goal is to explore the reasons why customers buy
GoPro cameras, and what the product adds to their lives. Beyond making a durable little video camera, GoPro has
fostered an almost fanatically loyal fan base by challenging customers to shoot the most extreme footage possible
and then share it with friends across social media channels. It is likely that some of your students will know about
GoPro cameras, and have a few of their own stories to share with the class. You will want to capitalize on these
student testimonials as you explore the GoPro brand together.

Starting the Discussion


Start this discussion by asking students what GoPro is really selling its customers. Of course, the company makes
micro-sized video cameras that can survive almost anything. But what are the unique customer insights that have
fueled GoPros explosive growth? What does GoPro understand about its customers better than the competition?
Tour the GoPro website at www.gopro.com. Peruse the tabs across the top, concentrating on the extreme videos and
photos submitted by its loyal fans. How does the company encourage its customers to be a hero? The goal is to
show that GoPros allure results from much more than just the functional attributes of its productits all about the
customers and how the cameras help them capture their most exciting life experiences. As the discussion progresses,
search for GoPro on www.youtube.com and check out some of the more extreme applications that fans have
discovered for this device. Use the questions below to guide the discussion.

Discussion Questions
1. Beyond a small, durable video camera, what is GoPro really selling its customers? How does this product
enable users to highlight the best moments of their lives? (To start with, the camera is extremely tough and
versatile. It can capture high-quality video under almost any conditions. But ultimately, the GoPro camera
enables its fans to experience and document the adventures that touch and thrill them. In turn, users deeply
care about sharing these moments with friends and fellow enthusiasts through social media channels, which
has only intensified their passion for the GoPro brand.)
2. GoPros company slogan is Be a Hero. How does GoPro encourage customers to do so? (Customers
become heros through four essential steps in their storytelling and emotion-sharing journeys: capture,
creation, broadcast, and recognition. Capture is what the cameras doshooting pictures and videos.
Copyright 2014 Pearson Education
Creation is the editing and production process that turns raw footage into compelling videos. Broadcast
involves distributing the video content to an audience. Recognition is the payoff for the content creator.
Recognition might come in the form of YouTube views or LIKES and SHARES on Facebook. More
probably, its the enthusiastic oohs and ahs that their videos evoke from friends and family. The companys
slogan sums it up pretty well the consumers deeper motivations: GoProBe a Hero.)
3. One industry expert has noted, Some of the most amazing companies of the coming few years will be
businesses that understand how to wrap technology beautifully around human needs so that it matters to
people. How does this quote apply to GoPro? (This brand is all about what its cameras let customers do.
GoPro users dont just want to take videos. More than that, they want to tell the stories and share the
adrenalin-pumped emotions of the extreme moments in their lifestyles. As GoPro notes, Enabling you to
share your life through incredible photos and video is what we do. We help people capture and share their
lives most meaningful experiences with othersto celebrate them together.)
4. How does the chapter-opening GoPro story relate to the major concepts in the consumer behavior chapter?
(The GoPro story highlights the depth of factors that affect how consumers think, feel, and act toward
brands. GoPro really understands what makes consumers tick and, as a result, delivers an exceptional brand
experience to loyal consumers. Keep the GoPro example active as you discuss characteristics affecting
consumer behavior, types of buying decision behavior, the buyer decision process, and other chapter
topics.)

CHAPTER OVERVIEW
Use Power Point Slide 5-1 Here

In this chapter, we continue our marketing journey with a closer look at the most important
element of the marketplacecustomers.
The goal of marketing is to affect how customers think about and behave toward the organization
and its market offerings. But to affect the whats, whens, and hows of buying behavior, marketers
must first understand the whys.
We look first at final consumer buying influences and processes and then at the buying behavior
of business customers.

CHAPTER OBJECTIVES
Use Power Point Slide 5-2 Here

1. Define the consumer market and construct a simple model of consumer buyer behavior.
2. Name the four major factors that influence consumer buyer behavior.
3. List and define the major types of buying decision behavior and stages in the buyer decision
process.
4. Describe the adoption and diffusion process for new products.

Copyright 2014 Pearson Education


CHAPTER OUTLINE

p. 134 INTRODUCTION
You may never have heard of GoPro, the small but fast- p. 135
growing company that makes tiny, wearable HD video Photo: GoPro
cameras.
Yet few brands can match the avid enthusiasm and intense
loyalty that GoPro has created in the hearts and minds of its
customers, many of whom are extreme sports hobbyists.
Its customers are among the most loyal and engaged of any
brand. Intense customer engagement and excitement has
made GoPro the fastest-growing camera company in the
world.
GoPro knows that deep down, it offers customers much more
than just durable little video cameras. It gives them a way to
share action-charged moments and emotions with friends.
Assignments, Resources
Use Web Resource 2 here
Opening Vignette Questions
1. How does GoPro successfully differentiate itself
from competitors in todays crowded electronics
marketplace?
2. What does GoPro mean when they encourage
their customers to be a hero?
3. How has GoPro successfully used social media
channels to promote its products?

PPT 5-3 Consumer buyer behavior refers to the buying behavior of Chapter Objective 1
final consumersindividuals and households who buy
goods and services for personal consumption. p. 136
Key Terms:
All of these consumers combine to make up the consumer Consumer Buyer
market. Behavior,
Consumer Market
The American consumer market consists of more than 313
million people.

Assignments, Resources
Use Critical Thinking Exercise 1 here
Use Small Group Assignment 1 here
Use Web Resource 1 here

Copyright 2014 Pearson Education


p. 136 Model of Consumer Behavior p. 137
PPT 5-4 Figure 5.1: Model
The central question for marketers is: How do consumers of Buyer Behavior
respond to various marketing efforts the company might use?

The starting point is the stimulus-response model of buyer


behavior shown in Figure 5.1.

Marketing stimuli consist of the four Ps: product, price,


place, promotion.

Other stimuli include major forces and events in the buyers


environment: economic, technological, social, and cultural.

The marketer wants to understand how the stimuli are


changed into responses inside the consumers black box,
which has two parts.

1. The buyers characteristics influence how he or she


perceives and reacts to the stimuli.
2. The buyers decision process itself affects the buyers
behavior.

p. 137 Characteristics Affecting Consumer Behavior Chapter Objective 2


PPT 5-5
p. 137 Cultural Factors p. 138
Key Term: Culture
PPT 5-6 Culture is the most basic cause of a persons wants and
behavior. p. 137
Figure 5.2: Factors
Marketers are always trying to spot cultural shifts. Influencing
Consumer Behavior
PPT 5-7 Subcultures are groups of people with shared value systems p. 138
based on common life experiences and situations. Key Term:
Subculture
The U.S. Hispanic market consists of more than 50 million
consumers. p. 138
Ad: Nestle
By 2013, the nations more than 40 million African-
American consumers will have a buying power of $1.2 p. 139
trillion. Ad: Procter &
Gamble
Asian Americans are the most affluent U.S. demographic
segment.
Copyright 2014 Pearson Education
Many marketers now embrace cross-cultural marketingthe
practice of including ethnic themes and cross-cultural
perspectives within their mainstream marketing.
PPT 5-8 p. 140
Social classes are societys relatively permanent and ordered Key Term: Social
divisions whose members share similar values, interests, and Class
behaviors.
PPT 5-9 Social class is not determined by a single factor, but is p. 141
measured as a combination of occupation, income, Figure 5.3
education, wealth, and other variables. Major American
Social Classes

Assignments, Resources
Use Discussion Question 1 here
Use Additional Project 1 and 2 here
Use Think-Pair-Share 1 to 3 here
Use Video Case here

p. 140 Social Factors

PPT 5-10 Groups and Social Networks. A persons behavior is p. 140


influenced by many small groups. Key Term: Group,

Marketers use word-of-mouth influence and buzz marketing


to spread the word about their brands.

PPT 5-11 Opinion leaders are people within a reference group who, p. 141:
because of special skills, knowledge, personality, or other Key Term: Opinion
characteristics, exert social influence on others. Leader

This small percentage of Americans is referred to as the p. 140


influentialsorleadingadopters. Ad: ShoeDazzle

PPT 5-12 Online social networks are online communities where p. 142
people socialize or exchange information and opinions. Key Term: Online
Social Network
p. 143
Ad: Ford
p. 144
PPT 5-13 Family is the most important consumer buying organization Ad: Timberland
in society.
p. 145
Of men ages 18 to 64, 51 percent identify themselves Photo: IKEA,
as primary grocery shoppers in their households, and Family Buying
39 percent handle most of their households laundry.
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Women account for 50 percent of all technology
purchases and influence two-thirds of all new car
purchases.

The nations 36 million kids age 8 to 12 control an


estimated $30 billion in disposable income

Roles and Status. A role consists of the activities people are


expected to perform. Each role carries a status reflecting the
general esteem given to it by society.

Assignments, Resources
Use Real Marketing 5.1 here
Use Additional Project 3 here
Use Think-Pair-Share 4 here
Use Web Resources 3 and 4 here

p. 145 Personal Factors


p. 146
PPT 5-14 Age and Life-Cycle Stage. People change the goods and Ad: PersonicX
services they buy over their lifetimes.

Tastes in food, clothes, furniture, and recreation are often


age-related. Buying is also shaped by the stage of the family
life cycle.

Marketers often define their targets in terms of life-cycle


stage and develop appropriate products and marketing plans
for each stage.

Consumer information giant Acxioms PersonicX life-stage


segmentation system places U.S. households into one of 70
consumer segments and 21 life stage groups. For example:

1. The Taking Hold group consists of young, energetic,


well-funded couples and young families who are
busy with their careers and personal interests.
2. Transition Blues are blue-collar, less educated, mid-
income consumers contemplating families.
3. Potential Rebounders are those likely to loosen up on
spending sooner following a recession.

PPT 5-15 Occupation. A persons occupation affects the goods and


services they purchase.

Copyright 2014 Pearson Education


Economic Situation. A persons economic situation will
affect store and product choice.
p. 147
PPT 5-16 Lifestyle is a persons pattern of living as expressed in his or Key Terms:
her psychographics. Lifestyle,
Personality
This involves measuring major AIO dimensions such as
activities (work, hobbies, shopping, sports, social events), p. 148
interests (food, fashion, family, recreation), and opinions Ad: Benjamin Hotel
(about themselves, social issues, business, products).

PPT 5-17 Personality and Self-Concept

Personality refers to the unique psychological character-


istics that distinguish a person or group.

PPT 5-18 A brand personality is the specific mix of human traits that p. 149
may be attributed to a particular brand. One researcher Ad: Gucci
identified five brand personality traits:
1. Sincerity (down-to-earth, honest, wholesome, and
cheerful)
2. Excitement (daring, spirited, imaginative, and up-to-date)
3. Competence (reliable, intelligent, and successful)
4. Sophistication (upper class and charming)
5. Ruggedness (outdoorsy and tough)

The basic self-concept premise is that peoples possessions


contribute to and reflect their identities; that is, we are what
we have.

Psychological Factors
p. 149
PPT 5-19
p. 149
Motivation Key Term:
PPT 5-20 Motive (Drive)
A motive (or drive) is a need that is sufficiently pressing to
direct the person to seek satisfaction.

Psychoanalyst Sigmund Freud suggested that a persons


buying decisions are affected by subconscious motives that
even the buyer may not fully understand.

Motivation research refers to qualitative research designed to


probe consumers hidden, subconscious motivations.
PPT 5-21
Copyright 2014 Pearson Education
Abraham Maslow sought to explain why people are driven
by particular needs at particular times. He determined that p. 150
human needs are arranged in a hierarchal fashion. Figure 5.4:
Maslows Hierarchy
Perception is the process by which people select, organize, of Needs
PPT 5-22 and interpret information to form a meaningful picture of the
world.

Selective attention is the tendency for people to screen out p. 150


PPT 5-23 most of the information to which they are exposed. Key Term:
Perception
Selective distortion describes the tendency of people to
interpret information in a way that will support what they
already believe.

Selective retention is the retaining of information that p. 151


supports their attitudes and beliefs. Ad: American
Association of
Subliminal advertising refers to marketing messages Advertising
received without consumers knowing it. Studies have Agencies
established no link between subliminal messages and
consumer behavior.

PPT 5-24 Learning describes changes in an individuals behavior p. 151


arising from experience. Key Term: Learning

A drive is a strong internal stimulus that calls for action.


p. 150
Photo: Selective
A drive becomes a motive when it is directed toward a Perception
particular stimulus object.

Cues are minor stimuli that determine when, where, and how
the person responds.

Beliefs and Attitudes


p. 151 p. 150-151
A belief is a descriptive thought that a person has about Key Terms:
PPT 5-25 something. Belief, Attitude

Attitude describes a persons relatively consistent p. 152


PPT 5-26 evaluations, feelings, and tendencies toward an object or Ad: Vidalia Onion
idea. Attitudes are difficult to change. Committee

Assignments, Resources
Copyright 2014 Pearson Education
Use Outside Example 1 here
Use Web Resource 5 here
p. 152 Chapter Objective 3
PPT 5-27 Types of Buying Decision Behavior

PPT 5-28 Figure 5.5 shows types of consumer buying behavior based
on the degree of buyer involvement and the degree of
differences among brands.

p. 152 Complex Buying Behavior


p. 152
Consumers undertake complex buying behavior when they Key Term: Complex
are highly involved in a purchase and perceive significant Buying Behavior
differences among brands.

Consumers may be highly involved when the product is


expensive, risky, purchased infrequently, and highly self-
expressive.

Typically, the consumer has much to learn about the product


category.

Marketers of high-involvement products must understand the


information-gathering and evaluation behavior of high-
involvement consumers.
p. 153
p. 153 Dissonance-Reducing Buying Behavior Key Terms:
Dissonance-
Dissonance-reducing buying behavior occurs when Reducing Buying
consumers are highly involved with an expensive, Behavior, Habitual
infrequent, or risky purchase, but see little difference among Buying Behavior
brands.

After the purchase, consumers might experience


postpurchase dissonance (after-sale discomfort) when they
notice certain disadvantages of the purchased brand or hear
favorable things about brands not purchased.

To counter such dissonance, the marketers after-sale


communications should provide evidence and support to help
consumers feel good about their brand choices.

p. 153 Habitual Buying Behavior

Habitual buying behavior occurs under conditions of low


consumer involvement and little significant brand difference.
Copyright 2014 Pearson Education
p. 153
Consumer behavior does not pass through the usual belief- Ad: Charmin
attitude-behavior sequence.

Consumers do not search extensively for information about


the brands, evaluate brand characteristics, and make weighty
decisions about which brands to buy.
p. 153
They passively receive information as they watch television Figure 5.5: Four
or read magazines. Types of Buying
Behavior
Because buyers are not highly committed to any brands,
marketers of low-involvement products with few brand
differences often use price and sales promotions to stimulate
buying.
p. 153
p. 152 Variety-Seeking Buying Behavior Key Term: Variety-
Seeking Buying
Consumers undertake variety-seeking buying behavior in Behavior
situations characterized by low consumer involvement but
significant perceived brand differences.

In such cases, consumers often do a lot of brand switching.

Assignments, Resources
Use Discussion Question 2 here
Use Video Case here
Use Individual Assignment 1 here
Troubleshooting Tip
By and large, students have not been exposed to the
consumer behavior concepts in this chapter before. If
they have taken a sociology or human behavior
course, chances are very high that the concepts were
not presented in a way that allowed the students to
understand them as they apply to business in general
and marketing in particular. After presenting the
concepts of consumer behavior, have the students
discuss the concepts in terms of their own buying
habits, their backgrounds, and how they differ from
others in the class.

p. 154 The Buyer Decision Process

PPT 5-29 The buyer decision process consists of five stages:

1. Need recognition
Copyright 2014 Pearson Education
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Postpurchase behavior

p. 154 Need Recognition p. 154


PPT 5-30 Key Term: Need
The buyer recognizes a problem or need triggered by either Recognition
an:
Internal stimuli, or
External stimuli

p. 154 Information Search p. 154


Figure 5.6: Buyer
Information search may or may not occur. Decision Process

Consumers can obtain information from any of several


sources. p. 153
Ad: Snickers
PPT 5-31 Personal sources (family, friends, neighbors,
acquaintances)
Commercial sources (advertising, salespeople, Web
sites dealers, packaging, displays)
Public sources (mass media, consumer-rating
organizations, Internet searches)
Experiential sources (handling, examining, using the
product)

Commercial sources inform the buyer.

Personal sources legitimize or evaluate products for the


buyer.
p. 155
Evaluation of Alternatives p. 155
PPT 5-32 Key Term:
Alternative evaluation is how the consumer processes Alternative
information to arrive at brand choices. Evaluation

How consumers go about evaluating purchase alternatives


depends on the individual consumer and the specific buying
situation.

In some cases, consumers use careful calculations and


logical thinking.

Copyright 2014 Pearson Education


At other times, the same consumers do little or no
evaluating; instead they buy on impulse and rely on intuition.
p. 155
Purchase Decision p. 155
Key Term: Purchase
Generally, the consumers purchase decision will be to buy Decision
the most preferred brand.
PPT 5-33
Two factors can come between the purchase intention and
the purchase decision.

1. Attitudes of others
2. Unexpected situational factors
p. 156
Postpurchase Behavior p. 156
PPT 5-34 Key Terms:
The difference between the consumers expectations and the Postpurchase
perceived performance of the good purchased determines Behavior, Cognitive
how satisfied the consumer is. Dissonance
PPT-5-35
If the product falls short of expectations, the consumer is
disappointed; if it meets expectations, the consumer is p. 156
satisfied; if it exceeds expectations, the consumer is said to Photo: Shopping
be delighted.

Cognitive dissonance, or discomfort caused by


postpurchase conflict, occurs in most major purchases.
Assignments, Resources
Use Real Marketing 5.2 here
Use Discussion Question 3 here
Use Critical Thinking Exercise 2 here
Use Marketing Technology here
Use Marketing by the Numbers here
Use Outside Example 2 here

p. 156 The Buyer Decision Process for New Products Chapter Objective 4
PPT 5-36
A new product is a good, service, or idea that is perceived p. 156
by some potential customers as new. Key Terms: New
Product, Adoption
The adoption process is the mental process through which Process
an individual passes from first learning about an innovation
to final adoption. Adoption is the decision by an individual to
become a regular user of the product.

p. 157 Stages in the Adoption Process


Copyright 2014 Pearson Education
Consumers go through five stages in the process of adopting
a new product:

1. Awareness: The consumer becomes aware of the new


product, but lacks information about it.
2. Interest: The consumer seeks information about the p. 157
Ad: Best Buy
new product.
3. Evaluation: The consumer considers whether trying
the new product makes sense.
4. Trial: The consumer tries the new product on a small
scale to improve his or her estimate of its value.
5. Adoption: The consumer decides to make full and
regular use of the new product.
p. 157
Individual Differences in Innovativeness

People differ greatly in their readiness to try new products.

People can be classified into the adopter categories shown in


Figure 5.7.

The five adopter groups have differing values.

PPT 5-37 1. Innovators are venturesomethey try new ideas at


some risk.
2. Early adopters are guided by respectthey are
opinion leaders in their communities and adopt new
ideas early but carefully.
3. The early mainstream are deliberatealthough they
rarely are leaders, they adopt new ideas before the
average person.
4. The late mainstream are skepticalthey adopt an
innovation only after a majority of people have tried
it.
5. Lagging adopters are tradition boundthey are
suspicious of changes and adopt the innovation only p. 158
when it has become something of a tradition itself. Figure 5.7: Adopter
p. 158 Categorization on
Influence of Product Characteristics on Rate of Adoption the Basis of
PPT 5-38 Relative Time of
Five characteristics are important in influencing an Adoption of
innovations rate of adoption. Innovations
1. Relative advantage: The degree to which the
Copyright 2014 Pearson Education
innovation appears superior to existing products.
2. Compatibility: The degree to which the innovation
fits the values and experiences of potential
consumers.
3. Complexity: The degree to which the innovation is
difficult to understand or use.
4. Divisibility: The degree to which the innovation may
be tried on a limited basis.
5. Communicability: The degree to which the results of
using the innovation can be observed or described to
others.

Assignments, Resources
Use Discussion Question 4 here
Use Marketing Ethics here
Use Company Case here
Use Small Group Assignment 2 here
Use Individual Assignment 2 here
Troubleshooting Tip
There is a lot of material in this chapter; although it
hits only the high points of consumer behavior.
Explaining that consumer behavior is usually offered
as a course unto itself can actually relieve some of
the students anxiety. Also helpful is continually
reminding them of how they can apply this material
to more fully appreciating their own motivations for
their purchases. This can then lead them to recognize
how a marketer could approach understanding
consumers motives in general.

END OF CHAPTER MATERIAL


Copyright 2014 Pearson Education
Discussion Questions

1. Review the black box model of buyer behavior. Which buyer characteristics that affect
buyer behavior influence you most when selecting a restaurant? Are those the same
characteristics that would influence you when making a smartphone purchase? Explain.
(AACSB: Communication; Reflective Thinking)

Answer:

Figure 5.1 shows the stimulus-response model of buyer behavior in which marketing and
other stimuli enter the consumers black box and produce certain responses. Marketing
stimuli consist of the Four Ps (product, price, place, and promotion). Other stimuli include
major forces and events in the buyers environment, such as economic, technological,
political, and cultural forces. All these inputs enter the buyers black box, where they are
turned into a set of observable buyer responses: the buyers brand and company relationship
behavior and what he or she buys, when, where, and how often.

The buyers characteristics influence how he or she perceives and react to stimuli. These
factors include:
Culture: includes overall culture, subculture, and social class.
Social influences: reference groups, family, and roles and status.
Personal factors: age and life cycle stage, occupation, economic situation, lifestyle,
and personality and self-concept.
Psychological factors: motivation, perception, learning, and beliefs and attitudes.

Students responses regarding which characteristic(s) would have the greatest impact on their
purchase decisions will vary.

2. What is an opinion leader? Describe how marketers attempt to use opinion leaders to help
sell their products. (AACSB: Communication; Reflective Thinking)

Answer:

Opinion leaders are people within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exert social influence on others. Some
experts call this group the influentials or leading adopters. When these influentials talk,
consumers listen. Marketers try to identify opinion leaders for their products and direct
marketing efforts toward them. Buzz marketing involves enlisting or even creating opinion
leaders to serve as brand ambassadors who spread the word about a companys products.
Many companies now create brand ambassador programs in an attempt to turn influential but
everyday customers into brand evangelists.

Copyright 2014 Pearson Education


3. Name and describe the types of buying decision behavior and describe a personal example
for each. (AACSB: Communication; Reflective Thinking)

Answer:

The types of consumer buying decision behavior are: (1) complex buying behavior, (2)
dissonance-reducing buying behavior, (3) habitual buying behavior, and (4) variety-seeking
buying behavior. Figure 5.5 shows these types based on the degree of buyer involvement and
the degree of differences among brands.

Complex buying behavior occurs when consumers are highly involved in a purchase and
perceive significant differences among brands.

Dissonance-reducing buying behavior occurs when consumers are highly involved with an
expensive, infrequent, or risky purchase, but see few differences among brands.

Habitual buying behavior occurs under conditions of low consumer involvement and little
significant brand difference.

Variety-seeking buying behavior is undertaken in situations characterized by low consumer


involvement but significant perceived brand differences.

Students examples will vary.

4. What is a new product and how do consumers go about deciding whether to adopt a new
product? (AACSB: Communication)

Answer:

A new product is a good, service, or idea that is perceived by some potential customers as
new, even though it may have been around for a while. Marketers are interested in how
consumers learn about products for the first time and make a decision on whether to adopt
them. The adoption process is a mental process in which an individual learns about an
innovation to finally adopting it. The stages in the adoption process are:
a. Awareness: The consumer becomes aware of the new product, but lacks
information about it.
b. Interest: The consumer seeks information about the new product.
c. Evaluation: The consumer considers whether trying the new product makes
sense.
d. Trial: The consumer tries the new product on a small scale to improve his or her
estimate of its value.
e. Adoption: The consumer decides to make full and regular use of the new product.

Copyright 2014 Pearson Education


Critical Thinking Exercises

1. Form a small group of four or five students. Have each group member interview ten
consumers about if and when they purchased their first smartphone. Research when
smartphones were first introduced, and based on each respondents answer, identify which
adopter category best describes that consumer. Create a chart similar to Figure 5.7 to present
your results for all group members interviews. How far along are smartphones in their
adoption cycle? (AACSB: Communication; Diversity; Reflective Thinking)

Answer:

This should be an interesting exercise for students. Smartphones have actually been around
for a long time1993but didnt become a mass market product until relatively recently.
Students should be able to find considerable information on the Internet regarding the history
of smartphones. One source they will likely use is http://en.wikipedia.org/wiki/Smartphone.

2. Go to the Strategic Business Insights (SBI) Web site and complete the VALS survey at
www.strategicbusinessinsights.com/vals/presurvey.shtml. What does VALS measure and
what is your VALS type? Does it adequately describe you? On what dimensions are the
VALS types based and how can marketers use this tool to better understand consumers?
(AACSB: Communication; Use of IT; Reflective Thinking)

Answer:

VALS is a tool to measure values and lifestyles. The eight VALS types are innovators,
thinkers, achievers, experiencers, believers, strivers, makers, and survivors. The two
dimensions of the VALS typology are resources/innovation and primary motivations (ideals,
achievement, and self-expression). Consumers are segmented into groups based on their
values and lifestyles, which enables marketers to better understand their behavior.

Marketing Technology: Mourning 2.0

Every culture has rituals for mourning the dead, but technology is now changing many of our
long-held cultural norms. The conservative funeral industry is slowly embracing new
technologies, resulting in new mourning behaviors. High-definition video screens play video
homage to the deceased, live-streamed funerals reach all corners of the globe, digital guest books
remain permanently active, e-mails remind the bereaved of the anniversary of a loved-ones
death, and digital candles remain perpetually lit on memorial pages. The deceased can now
live on in cyberspace and friends can visit them on Facebook long after they have passed on.
Quick-response code chips (QR codes) affixed to tombstones can bring a person back to life
virtually on a smartphone. With nearly half of all Americans owning smartphones, 20 percent
owning tablets, 80 percent on the Internet, and almost 70 percent visiting social media sites, the
time is now right for the funeral industry to capitalize on these digital trends. And with the still-
sluggish economy and new competitors (for example, Walmart and Cosco now sell caskets

Copyright 2014 Pearson Education


online) squeezing profit margins, the funeral industry is more open than ever to ways to satisfy
consumers mourning needs digitally.

1. Research mourning customs of other cultures. What role do products and services play in
making the experience meaningful for mourners? Is technology changing customs outside of
the United States? (AACSB: Communication; Diversity; Reflective Thinking)

Answer:

Students answers will vary. There are several sources on the Internet, such as
http://en.wikipedia.org/wiki/Mourning, that summarize mourning behavior in different
cultures and the role of products and technology in shaping the experience.

2. Describe the characteristics of a new product that affect its rate of adoption. Which
characteristics will impact how quickly the new services described for the funeral industry
will be accepted by mourners in the United States? (AACSB: Communication; Reflective
Thinking)

Answer:

Students examples will vary, but they should discuss these five characteristics that are
especially important in influencing an innovations rate of adoption:
Relative advantage: the degree to which the innovation appears superior to existing
products. The new technologically-based services, such as Web-streaming of
funerals, are better than traditional funerals because people not able to attend a
funeral personally can still be present. However, some students might argue that
the event is no longer personal and many people may simply choose to watch it on
the Internet and not interact personally with fellow mourners.
Compatibility: the degree to which the innovation fits the values and experiences of
potential consumers. While the Internet and social media are almost second nature to
younger consumers, these services are not compatible with older consumers values
and experiences related to funerals. However, the decline of religiosity in the United
States may enhance the acceptance of digital mourning.
Complexity: the degree to which the innovation is difficult to understand or use. For
younger consumers, using new technology is not a problem, but for older consumers
this may not be the case. One person in the industry suggests that the younger
generation embraces this technology, and the holdouts will eventually die off and
take their traditional values with them.
Divisibility: the degree to which the innovation may be tried on a limited basis. Its
not likely that consumers can try before they buy for these types of services, so
this characteristic will slow the rate of adoption.
Communicability: the degree to which the results of using the innovation can be
observed or described to others. The services can be communicated easily,
increasing the rate of adoption.

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Marketing Ethics: Vanity Sizing

What does an 8 mean to you? Well, if you are a female, then it means a lot, especially if you
really are a 12 size, that is. Marketers know that, too, and the trend is for larger sizes to be
labeled with smaller numbers. Sizing was standardized in the 1940s and 1950s when women
started purchasing mass-produced clothing. But sizes fluctuated in the following decades and the
Department of Commerce abandoned sizing standardization in 1983. Now, the size number can
mean anything the marketer wants it to mean. Marketers know that a size-12 woman who finds
out she can fit into an 8 will get a self-esteem boost and likely purchase more. This practice,
known as vanity sizing, has the potential to pay off big for clothing manufacturers. With 34
percent of adults in the United States overweight and another 40 percent obese, that adds up to a
sizable market potential. Plus-sized clothing designer Torrid caters to the full-sized woman with
sizes ranging from 0-5, where a size 4 is actually a size 26. If a large number on the size label
really bothers you, stick to the more expensive brandsthey tend to be the ones using vanity
sizing most.

1. Which factors are clothing marketers using to influence consumers? Ask five female and
five male friends how much the size labeled on clothing influences their behavior. Write a
brief report of your findings. (AACSB: Communication; Reflective Thinking)

Answer:

This is an example of cultural and psychological influences on consumer behavior.


Specifically, this is an example of attempting to influence perceptions, beliefs, and attitudes.
Many of our perceptions, beliefs, and attitudes are influenced by culture. For example, most
consumers, especially women, want to be smaller because thin is in culturally. Students
reports after talking to other consumers will vary, but women will probably indicate that the
size number matters to them.

2. Should manufacturers be allowed to pick whatever measurements they want and attach any
size number they want to them? Should the government or business set standardized sizes?
(AACSB: Communication; Ethical Reasoning)

Answer:

Students responses will vary. This will likely draw a heated argument against vanity sizing
from females, not only because of the attempt to manipulate a consumers self-esteem but
also because it makes it very difficult to purchase clothing without trying it on. In defense of
clothing manufacturers, however, women are shaped differently than men and differently
from each other, and clothing styles vary, making standardization difficult.

Marketing by the Numbers: Evaluating Alternatives

One way consumers can evaluate alternatives is to identify important attributes and assess how
purchase alternatives perform on those attributes. Consider the purchase of an automobile. Each
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attribute, such as gas mileage, is given a weight to reflect its level of importance to that
consumer. Then the consumer evaluates each alternative on each attribute. For example, in the
table below, gas mileage (weighted at 0.5) is the most important attribute for this consumer. The
consumer believes that Brand C performs best on gas mileage, rating it 7 (higher ratings indicate
higher performance). Brand B is perceived as performing the worst on this attribute (rating of 3).
Styling and price are the consumers next most important attributes. Warranty is least important.

Importance Alternative Brands


Attributes Weight (e) A B C
Styling 0.2 4 6 2
Gas mileage 0.5 6 3 7
Warranty 0.1 5 5 4
Price 0.2 4 6 7

A score can be calculated for each brand by multiplying the importance weight for each attribute
by the brands score on that attribute. These weighted scores are then summed to determine the
score for that brand. For example, ScoreBrand A = (0.2 x 4) + (0.5 x 6) + (0.1 x 5) + (0.2 x 4) = 0.8
+ 3.0 + 0.5 + 0.8 = 5.1. This consumer will select the brand with the highest score.

1. Calculate the scores for brands B and C. Which brand would this consumer likely choose?
(AACSB: Communication; Analytic Reasoning)

Answer:

ScoreBrand B = (0.2 x 6) + (0.5 x 3) + (0.1 x 5) + (0.2 x 6)


= 1.2 + 1.5 + 0.5 + 1.2 = 4.4

ScoreBrand C = (0.2 x 2) + (0.5 x 7) + (0.1 x 4) + (0.2 x 7)


= 0.4 + 3.5 + 0.4 + 1.4 = 5.7

Based on this analysis, the consumer would probably select Brand C because it has the
highest score.

2. Which brand is this consumer least likely to purchase? Discuss two ways the marketer of
this brand can enhance consumer attitudes toward purchasing its brand. (AACSB:
Communication; Reflective Thinking; Analytic Reasoning)

Answer:

This consumer is least likely to select brand B because it has the lowest score. The marketer
can attempt to change consumer attitudes toward its brand in three ways:
a. Change beliefsif consumers believe a brand does not perform well on an attribute,
then the marketer can attempt to change that belief. This consumer believes brand B
doesnt have as good of gas mileage as the other alternatives. If this brand is the
same as the others, then the marketer needs to educate consumers of this fact. If the
Copyright 2014 Pearson Education
brand truly doesnt perform well on that attribute, then the product must be improved
and then beliefs must be changed as well. This is the most important attribute for
consumers, so the marketer needs to address this.
b. Change attribute importancethe marketer of brand B can attempt to influence how
consumers evaluate product attributes. Brand B performs very well on styling and
price, but these attributes are not rated as very important. Increasing the importance
weight on those attributes will help this brand considerably because it performs better
than both competitors on styling and almost as well at brand C on price.
c. Add a new attribute to considerthe marketer of brand B could attempt to get
consumers to consider an attribute that is not on the list, such as environmental
impact. The added attribute needs to be something that will be considered important
by consumers and be one that the brand would be perceived as better than the
competition for this to be successful.

Company Case Notes

Porsche: Guarding the Old While Bringing in the New

Synopsis

This case presents a very interesting story about a luxury carmaker, Porsche. Like many
marketers of luxury goods, Porsche has had to wrestle with the challenge of serving its core of
loyal customers while also making products that appeal to a less traditional, but growing,
segment of customers. The case describes the Porsche faithful who like their Porsches only one-
way: 2 doors, six cylinders in the rear, and lots of pure sports car performance. The problem that
Porsche has faced at various times throughout its existence is that being confined to one kind of
customer with one kind of car inevitably results in maturation and stagnation. Sales flatten out,
then decline, and so do profits.

This case describes recent efforts by Porsche to broaden its product line and appeal to multiple
segments of customers. Most notably, Porsche now makes an SUV (the Cayenne) and a four-
door sedan (the Panamera). Both of these efforts are designed to appeal to a different kind of
customer than the ones who typically buy 911s. But these vehicles are not soft around the edges.
They perform like, well, the Porsche of SUVs (and sedans). Porsche has identified two types of
customers that are sustaining these vehicles and keeping the company on a growth trend. These
are Porsche customers who grew up and have practical needs of hauling people and stuff, and the
emergence of wealthy people in China, India, and other parts of the world who have more
interest in a daily driver.

As the economy recovers, Porsche is poised to serve various customer types with a portfolio of
outstanding vehicles.

Copyright 2014 Pearson Education


Teaching Objectives

1. Apply a specific product situation to the buyer decision process.


2. Contrast the way that different customer experience the buyer decision process.
3. Explain how and why social, psychological, and personal factors affect the manner in
which consumers solve their problem.
4. Gain practical experience by applying the concepts of attitude, self-concept, and
reference groups.

Discussion Questions

1. Analyze the buyer decision process of the traditional Porsche customer.

Need recognition: This can come from internal stimuli (basic needs such as hunger,
thirst, protection) or external stimuli. The traditional Porsche buyer needs a car that
reflects their self-image. That is, the are not part of the regular world, but exceptions to
it. Such buyers need a car that goes beyond the basic utilities provided by most cars.
They need (want) a car that can be enjoyed. They want a car that can be worn like an
accessory. They want a car that performs without being flashy or phony.

Information search: Again, this can be internal or external. However, the nature of
internal/external influences is different for this phase. Potential Porsche customers could
draw from either source. They draw from internal (i.e., experiential) sources (their own
knowledge based on previous experience or exposure to product information) based on
how familiar they are with the brand. For those very familiar with the brand, frequent
purchasers, they may not gather information beyond internal information. However,
many will draw from external sources, including friends and acquaintances or company
advertising/point-of-purchase displays/sales people.

Evaluation of alternatives: Methods used for evaluating alternatives vary widely. Thus,
it is difficult to illustrate what the traditional Porsche customer might do for this phase.
However, one thing is consistent across individuals as they go through this phase.
Consumers compare the option(s) in question to a set of criteria. For the traditional
Porsche customer, there may only be one alternative (it must be a Porsche). But for those
who are open to multiple brands, the evaluation of alternatives will be compared to those
traits outlined in the need recognition phase.

Purchase decision: The traditional Porsche customer will chose the vehicle that best
satisfies the stated criteria. There are additional considerations that may pop up at this
phase, including the opinion of friends and unexpected changes to any of the factors
considered during evaluation of alternatives.

Postpurchase behavior: During this phase, consumers form impressions that will have
an effect on future purchase and word-of-mouth. Much of this boils down to the concept
of satisfaction: How do consumers perceive the products performance relative to their
expectations prior to purchase? Porsche customers expectations could be based on
Copyright 2014 Pearson Education
things already mentioned in the previous steps of the buyer decision process. If they are
confirmed or exceeded, then the consumers develop some level of satisfaction or delight.
They then are more likely to spread positive word-of-mouth and purchase again. If the
Porsche customers expectations are not met, they are then dissatisfied.

2. Contrast the traditional Porsche customer decision process to the decision process for a
Cayenne or Panamera customer.

Need recognition: This customer may still be looking to satisfy some of the same needs
as the traditional customer (self-image, performance, a car to be enjoyed, one that isnt
flashy or phony). But these customers add to this list more practical needs, such as
carrying 4-5 people, hauling gear and cargo, roominess, ability to navigate through all
kinds of weather, and a large back seat (for those who want to be chauffeured).

Information search: This customer is more likely to research external sources (Internet,
company promotional material, sales people, etc.).

Evaluation of alternatives: The newer type of customer is more open to comparing


alternatives from various brands. They may not be a previous Porsche owner, but a
person who has always wanted a Porsche.

Purchase decision: Similar to the traditional Porsche customer, the new customer will
chose the vehicle that best satisfies the stated criteria. However, the criteria, as noted
above, is different for this customer.

Postpurchase behavior: The traditional customer will not be affected by things that
might affect the new customer. A traditional, loyal customer is more likely to put up with
issues such as lack of creature comforts, impracticality of reduced cargo space, and even
unreliability. Thus, the traditional customer may be very satisfied even if there are
negatives in these areas. The new Porsche customer will likely be more demanding on
these issues that affect daily driving.

3. Which concepts from the chapter explain why Porsche sold so many lower-priced models
in the 1970s and 1980s?

The biggest factor that contributed to the high numbers of people who purchased more
affordable Porsches during those decades is that of social groups. Specifically, reference
groups. The text specifies aspirational groups, on to which an individual wishes to
belong. Prior to the less expensive Porsches, only the more wealthy could afford one. But
with affordability, people of lesser means signed up for the image that went along with
owning a Porsche. They wanted to become members of the high achieving, successful,
elite. However, this social desire ultimately backfired for Porsche. The traditional
Porsche buyer felt that the brand was being high-jacked and diluted. It wasnt as
attractive. The entry level buyer of the time found that Porsches werent all they were
cracked up to be. Indeed, they were purchasing lower performing vehicles. And, they had
Copyright 2014 Pearson Education
to put up with all the Porsche idiosyncrasies that bother most care buyers.
Other concepts from the chapter that may help to explain this issue are roles and status,
culture and subculture, and personality and self-concept.

4. Explain how both positive and negative attitudes toward a brand like Porsche develop.
How might Porsche change consumer attitudes toward the brand?

As noted in the chapter, attitudes are comprised of evaluations (thoughts or beliefs),


feelings, and tendencies (behaviors) toward an object. Thus, when a belief that is positive
and important to a customer is present, that contributes to a positive attitude. Likewise,
when customers experience a positive emotional response from using (or witnessing
other use) a Porsche, this becomes a factor in a more positive attitude. The same can be
said for negative inputs.

Thus, if companies want to improve consumer attitudes toward the brand, they need to
identify beliefs and emotions that are important to customers. For example, the emotion
of that results from the sound, vibration, and feel of a Porsche as it hugs a corner is
much more important than the emotion that results from knowing the car is built to high
safety specifications. In Porsches promotional efforts as well as the performance of the
finished product, the emotional hot buttons must be touched. Additionally, relevant
information (beliefs) must also be engendered.

5. What role does the Porsche brand play in the self-concept of its buyers?

Self-concept is based on the premise that peoples possessions contribute to and reflect
their identities. Porsche is a brand that caters to self-concept. As the case notes, Porsche
buyers want a car that mirrors their self-imageit stands for the things owners like to
see in themselves and in their lives. And the way that they like to see themselves is as
successful people who set high goals and work doggedly to meet them.

Teaching Suggestions

There is an interesting trend that has been identified among youth and young
adults today. Cars are not the status symbol for these people that they are for
previous generations of folks. This may be due to the fact that the younger
generation is more environmentally conscious and views cars as polluting
machines, necessary for transportation. There may be other factors that
contribute to this as well. And this may not be true universally, but is true in the
aggregate. The younger generations derive status from clothing and gadgets
(laptops, MP3 players, smart phones).

Ask students if there is something that they aspire to own? Work this discussion to
move beyond things like a house. What are the things that they want right
now? When they graduate? Cars may be on the list, but pry in order to determine
the type of cars that they want. At the same time, use some of the other items that
Copyright 2014 Pearson Education
they suggest to compare to the issues brought up in this case. What items
contribute to their self-concept? What items fulfill aspirational needs? What items
do the want badly, even if they arent practical?

This case also works well with the marketing environment chapter (Chapter 3) and the market
targeting chapter (Chapter 6).

ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES


Projects

1. Every culture contains smaller subcultures. In the United States, the rapidly increasing
Hispanic market holds opportunities for many businesses. Look around your community and
make a list of those businesses that may well prosper from this increasing subculture. Why
do you think this is so? (Objective 2)
2. What social class do you belong to? Why? What would it take for you to move up a class?
(Objective 2)
3. Think about the online social networks such as Facebook or Twitter. How are marketers
trying to use these networks to promote their products? (Objective 2)

Small Group Assignments

1. Form students into groups of three to five. Each group should read the opening vignette to
the chapter on GoPro. Each group should then answer the following questions and share the
answers with the class. (Objective 2)

a. Are you an outdoor enthusiast? An extreme sports lover? If so, how might you use a
GoPro camera? Once you captured your video, how might you share it with friends?
b. Visit the GoPro website at www.gopro.com. Beyond making well-engineered video
cameras, how has the company become a favorite among adventure enthusiasts?
c. Beyond the applications discussed in class, which new uses can you think of for the
GoPro camera?

2. Form students into groups of three to five. Each group should read Inside Real Marketing
5.1: Harnessing the Power of Online Social Influence. Each group should then answer the
following questions and share the answers with the class. (Objectives 2 and 4)

a. Discuss examples of companies that have attracted you by reaching out through social
media. How did you respond? Did the contact result in a purchase?
b. Recall examples of companies who have somehow failed at using social media. Why did
this occur? What did the company miss?
c. If you are a user of social media, do you believe it can serve as an effective marketing
tool, or is it simply a nuisance to users? Justify your answer.

Copyright 2014 Pearson Education


d. Do you believe that social media is a smart investment for marketers, or are they just
shooting in the dark? Why do you believe this?
Individual Assignments

1. Take a look at the Web sites for Apple (www.apple.com), Dell (www.dell.com), and Hewlett-
Packard (www.hp.com). Which types of consumers are each of these companies appealing to
through their marketing approaches? Are they targeting personalities, using technical
comparisons, or something else? Based on what you have read in this chapter, why do you
believe each company chose this marketing approach? (Objective 2)
2. Check out the Web site for consumer information giant Acxiom (www.acxiom.com). Explore
the services they provide to marketing organizations and describe those services in a 500-
word report. How does the company gather its information, and how is it used? How does
Acxioms approach differ from that of its competitors? In your report, be sure to cite specific
examples from this chapter. (Objective 2)

Think-Pair-Share

Consider the following questions, formulate and answer, pair with the student on your right,
share your thoughts with one another, and respond to questions from the instructor.

1. Describe a cultural shift that has impacted marketers in a major way. (Objective 2)
2. Highlight some of the more significant differences in purchase habits between Asian-
Americans and the U.S. Hispanic market. (Objective 2)
3. What factors determine social class in the United States? (Objective 2)
4. How are online social networks changing the face of marketing? (Objective 2)

Outside Examples

1. Age and lifecycle changes have a dramatic impact on the many types of products we
purchase and consume. Go to Jeeps Web site (www.jeep.com) and examine their complete
product offering. How has Jeep tried to reach consumers of all ages and stages of the
lifecycle, especially mature consumers? (Objective 2)

Possible Solution:

Over the past 20 years, Jeep has excelled at reaching a diverse customer base. From a review
of their Web site and product offerings, it becomes evident that they design and produce
vehicles to satisfy consumers of all ages and stages of the lifecycle. In addition, if you pay
attention to the individual options offered on some of the vehicles, it becomes clear that
certain vehicles are targeted to consumers in particular stages of the lifecycle.

2. When asked about their least favorite aspect of TV viewing, most people say its the
commercials. Although most consumers understand that commercials support free
programming, they are bothered by the growing number of commercial interruptions. One
way to avoid all the clutter is to channel surf and bypass commercials. But digital video

Copyright 2014 Pearson Education


recorders (DVRs) offer another solutionskip commercials altogether while still watching
your favorite show on your own schedule.

Consumers are discovering DVRs and love the freedom they find through services like TiVo.
The service allows consumers to automatically record shows and skip commercials during
playback. Statistics show that DVR users watch more TV, channel surf less, and move many
prime-time week shows to the weekend, when they have more leisure time.

Will DVRs put an end to commercial dominance and put the consumer in the drivers seat?
This question assumes that television will continue its long-running domination as the
number-one outlet for program content. But the nature of how consumers are getting their
news, sports, and entertainment programming is in flux like never before.

For starters, more and more consumers are opting to purchase their favorite show on DVD or
through download services like iTunes. As with the DVR option, this cuts out commercials
altogether. But for the launch of a recent season, the four major networks (ABC, NBC, CBS,
and FOX) made a landmark move. Each began offering full episodes of many of their top
programs through their Web sites. The episodes are available the day after they air on
television, are delivered in high-resolution streaming video, can be viewed full screen, and
are available 24/7. The price? They are free, but viewers must watch a single commercial five
or six times during a one-hour show. Not exactly commercial-free, but far less than the 18 or
so minutes per hour devoted to ads on television.

What a novel concept: deliver the content for free, and pay for the programming through ad
revenues. And while the delivery of program content will likely evolve for some time to
come, the bottom line is consumers will choose the viewing method and options that give
them the features they value most. Big screens? High resolution? No ads? Convenience? On-
demand? Only time will tell.

1. What social and personal factors might influence the purchase of a DVR? (Objective 2)
2. How would you market this product in order to create a need in the consumers mind?
(Objective 3)

Possible Solution:

1. A multitude of social and personal factors may have influence here. Age, economic
situation, and lifestyle may all come into play. Younger consumers are typically more
adventurous and more likely to try the newer technologies. Associatively, although DVRs
are not terribly expensive, it is necessary to have a certain degree of discretionary income
(or excess income available to spend) in order to purchase the product. Finally, active
lifestyles, given their somewhat more busy schedules, are more likely to find this product
to be useful.

2. It is necessary to market this product as a time-saving convenience, on the cutting edge of


technology to effectively reach the target market.

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Web Resources

1. http://247.prenhall.com
This is the link to the Prentice Hall support link.

2. www.GoPro.com
GoPros home page.

3. www.facebook.com
If you are not familiar with social networking, take a look at Facebook and Twitter below.

4. www.twitter.com
Twitters home page.

5. www.jeep.com
Go to this site to learn about Jeep and its marketing strategies.

Copyright 2014 Pearson Education

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