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Harvard Business School Publishing

Case Map for


Blackwell/Miniard/Engel: Consumer Behavior, 10th Edition
(Thomson, 2007)

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Case/Article Institution, Geographical and Abstract, Key Subjects


Title HBSP Industry Setting,
Product Company Size,
Number, Time Frame
Length,
Teaching
Note
Chapter 1 Consumer Behavior and Consumer
Research
TiVo KEL132 United States; Addresses a new product launch into the emerging
8p Television; small; interactive television industry and the role of market
2001 research in shaping the strategic marketing plan.
Illustrates the challenges of measuring and
understanding probable consumer response and
adoption behaviors given a technically innovative
product offering. The competitive environment is
dynamic, with competitors also poised to launch. But
this company hopes to retain its first-mover
advantage, which also gives it the burden of educating
the right consumers quickly and driving rapid
adoption.
Inside Intel 502083 California; In early 2002, Pamela Pollace, vice president and
Inside 24p Semiconductor director of Intel's worldwide marketing operations, is
TN#504093 industry; $26 debating whether the company should extend its "Intel
billion revenues; Inside" branding campaign to non-PC product
83,000 categories, such as cell phones and PDAs. The "Intel
employees; 2002 Inside" campaign has been one of the most successful
branding campaigns in history. However, the
campaign is more than ten years old, and growth in
the PC market appears to be stagnating. In contrast,
sales of portable digital devices--such as PDAs and
cell phones--appear to be growing at a healthy rate.
Pollace is debating whether the "Intel Inside"
campaign will work in these other product categories,
even though Intel doesn't dominate these other
markets like it does the PC market, and it isn't clear
that consumers will associate Intel with these other
markets.

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Case Map for


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Chapter 2 Creating Marketing Strategies for


Customer Centric Organizations
IKEA Invades 504094 Asia; Europe; In 2002, the IKEA Group is the world's top furniture
America 13p North America; retailer, with 154 stores worldwide. In the United
TN#504095 Scandanavia; States, IKEA operates 14 stores, all of which have
Sweden; Furniture been enormously popular despite their self-service
industry; Home requirements. The company's goal is to have 50 stores
furnishings; Retail in operation in the United States by 2013. Explores
industry; $12.2 various options for managing this growth strategy.
billion sales;
70,000
employees; 1926-
2003
Confronting SMR147 Every industry leader lives in fear of the low-end
Low-End 8p competitor--a company offering much lower prices
Competition for a seemingly similar product. The vast majority of
such low-end companies fall into one of four types:
strippers, predators, reformers, or transformers. Each
of these is defined by the functionality of product and
the convenience of purchase. Strippers, for instance,
typically enter a market with a bare-bones offering,
reduced in function and usually in convenience.
Industry leaders have significant advantages for
combating low-end competition, but they often
hesitate because they're afraid their actions will
adversely affect their current profit margins. The
answer, then, is to find the response that is most likely
to restore market calm in the least disruptive way. An
industry leader could choose to ride out the challenge
by ignoring, blocking, or acquiring the low-end
competitor. Or it could decide to strengthen its own
value proposition by adding new price points,
increasing its level of benefits, or dropping its prices.
Such tactics can be effective in the short term, but the
industry leader also needs to consider strategic retreat,
particularly when certain conditions make future low-
end challenges inevitable.

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Chapter 3 The Consumer Decision Process


Land Rover 596036 United States; Charles Hughes, president and CEO of Land Rover
North America, 32p Automotive North America, Inc., is debating product positioning
Inc. TN#597043 industry; 80 options for the new Land Rover Discovery. The
employees; 1994 positioning decision must consider the role of the
Discovery vis-`a-vis other vehicles in the LRNA line,
the brand's strengths and weaknesses versus
competition, and the positioning of the Land Rover
umbrella brand in the U.K. An allocation of marketing
funds across brands and mix elements must also be
determined and decisions on the company's innovative
retailing strategy and experience marketing initiatives
made. The case contains rich consumer behavior data.
Includes color exhibits.
Chapter 4 Pre-Purchase Processes: Need
Recognition, Search and Pre-Purchase Evaluation
The Three Faces CMR289 Sales promotions targeted at consumers (e.g.,
of Consumer 24p coupons, sweepstakes, free offers) are becoming a
Promotions large and growing part of marketing budgets
worldwide. Presents a framework that examines the
effect of managerially controllable actions--
specifically, designing and communicating a sales
promotion--on increasing the incentive for different
segments of consumers to purchase a product. Sales
promotions have three distinct aspects: an economic
aspect that provides both incentives and disincentives
to purchase a brand; an informational aspect that
consumers use to make purchase decisions; and an
affective aspect that influences how consumers feel
about their shopping transaction, both positively and
negatively. How a promotional offer is designed and
communicated determines both its information value
and its affective appeal, which then enhances or
diminishes the attractiveness of the offer beyond the
economic incentive it provides. Companies'
promotion strategies should attempt to maximize the
positive informative and affective aspects, as these
can lessen the need for a large economic incentive and
thereby increase the promotions' profitability.
The Passion of 505025 Hollywood, CA; Bob Berney, president of Newmarket Films, must
the Christ (A) 17p United States; decide on a distribution and marketing strategy for
Entertainment Mel Gibson's controversial new movie, The Passion
industry; Film of the Christ. Fueled by Gibson's star power as well as
industry; Movie an extensive prescreening campaign among Christian
studio; $400 leaders and others representing likely target audiences
million revenues; in the summer of 2003, the religious movie had
20 employees; started to generate publicity in mainstream media.
2003-2004 Five months prior to the film's scheduled opening on
February 25, 2004, Berney has to choose whether to

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Case Map for


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(Thomson, 2007)

continue with the prescreening campaign to stimulate


further word-of-mouth among core audiences or
switch to a mainstream media advertising campaign
more commonly used to promote new movies. He also
has to determine the appropriate distribution strategy,
in particular whether to opt for a wide or limited
release and whether to change the timing of the
release.
Chapter 5 Purchase
The Dimensions 500083 Food industry An in-depth study of consumer thoughts and feelings
of Brand Equity 56p about a branded candy bar.
for Nestle
Crunch Bar, A
Research Case
A.1. Steak Sauce: KEL010 United States; Chuck Smith, senior brand manager of A.1. Steak
Lawry's Defense 8p Food industry; Sauce, learns that Lawry's will soon be launching a
TN#KEL011 $100 million steak sauce product. He has to determine whether A.1.
annual sales; 2003 should defend its business and, if so, what A.1. should
do. In formulating the recommendation, he has to
consider competitive dynamics and work through the
financial implications.
Chapter 6 Post-Purchase Process: Consumption and
Post-Consumption Evaluations
Starbucks: 504016 United States; Starbucks, the dominant specialty-coffee brand in
Delivering 20p Coffee; $3.3 North America, must respond to recent market
Customer TN#504089 billion revenues; research indicating that the company is not meeting
Service 60,000 customer expectations in terms of service. To increase
employees; 2002 customer satisfaction, the company is debating a plan
that would increase the amount of labor in the stores
and theoretically increase speed-of-service. However,
the impact of the plan (which would cost $40 million
annually) on the company's bottom line is unclear.
Kinko's 506024 United States; Over the decades, Kinko's had forged a deep
23p Printing industry; emotional bond with consumers by easing their
$2 billion anxiety and helping them solve pressing document
revenues; 21,000 processing problems. By 2003, however, consumer
employees; 2003 research revealed that a confusing retail experience
had eroded some of this good will. Challenged to
increase revenues for this segment and the company
as a whole, Kinko's CEO and president faced a
momentous decision: Should he radically overhaul the
retail business, or should he shift resources to Kinko's
healthier commercial business, "harvesting" the retail
business for short-term profit? Includes color exhibits.

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Case Map for


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Chapter 7 Demographics, Psychographics and


Personality
The SMR197 Despite considerable research on customer retention
Microeconomics 8p and word-of-mouth referrals, it has always been
of Customer difficult quantifying their contributions to the bottom
Relationships line. Using a metric known as "net promoter score"
(NPS), the author believes firms can measure the
dollar value of customers based on satisfaction levels.
A survey of thousands of customers in six industries
reveals that customers tend to cluster into one of three
categories: promoters, passives, and detractors.
Promoters represent more than 80% of the positive
referrals a company receives, whereas detractors
represent more than 80% of the negative word-of-
mouth. NPS is determined by subtracting the
percentage of detractors from the percentage of
promoters. Using this data, a firm can quantify the
value of a customer by tracking five categories:
retention rate, profit margins, spending, cost
efficiencies, and word-of-mouth. The firm can then
use NPS to make strategic decisions by targeting its
efforts to leverage the most value for its customer
service dollar.
Kansai Digital 106006 Japan; Mobile Ted Katagi, marketing strategy manager of Kansai
Phone: Zutto, 15p phone; 56 billion Digital Phone (KDP), utilizes customer lifetime value
Gaining Japanese yen revenues; as a key metric to prioritize initiatives in an
Loyalty 1997 emergency plan to turn around the company. KDP is a
regional phone company in Japan with less than
stellar performance. Katagi is sent from the U.S.
partner, Airtouch (later Vodafone), to assemble a team
to design and implement a plan that improves
company to performance. Katagi must quickly
prioritize actions and then assess the expected
economic impact.
Chapter 8 Consumer Motivation
The Harvard 505059 Massachusetts; Harvard Real Estate Services executives need to
Graduate Student 33p Education design the 2005 Graduate Student Housing Survey for
Housing Survey industry maximum impact in anticipation of Harvard's long-
term expansion project in Allston. Students are
challenged to help executives in charge to (1) draw
the lessons from their earlier survey experience: what
survey data had most--or least--impact and why? and
(2) imagine what survey data--accounting for the
power and limits of survey research--could be most
useful for the Allston initiative. Provides a complete
template for survey research, while at the same time
raises critical issues--technical issues as well as more
managerial questions related to the proactive
management of market research in organizations.

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Do Customer SMR031 A company that initiates a customer loyalty program


Loyalty 14p usually wants to retain existing customers, maintain
Programs Really sales levels and profits, increase the potential value of
Work? existing customers, and encourage customers to buy
its other products as well. But, based on a review of
behavioral loyalty research, the authors posit that the
schemes do not fundamentally alter market structure
and, instead, increase market expenditures without
really creating any extra brand loyalty. Research
shows that only about 10% of buyers for many types
of frequently purchased consumer goods are 100%
loyal to a particular brand over a one-year period.
Consumers do not buy only one brand. For any
loyalty program to be effective, say the authors, it
must leverage the value of the product to the
customer. Therefore, the program must have: (1) a
direct or indirect effect, such as the General Motors
rebate scheme that builds up savings toward a new
car; (2) a perception of value, such as cash; and (3)
timing--when rewards are available. The more
delayed the reward, the less powerful. The authors
suggest ways to design an effective program: ensure
that it enhances the value proposition of the product or
service, fully cost the program, maximize the buyer's
motivation to purchase again, and consider the market
conditions when planning.
Chapter 9 Consumer Knowledge
Samsung: 904A16 Canada; In less than a decade, Korea's Samsung has
Redefining a 20p Electronics transformed itself from a maker of low-end consumer
Brand TN#804A16 industry; 2003 electronics into a legitimate rival to Japanese industry
giants such as Sony and Panasonic. Success has been
due largely to efforts to reposition Samsung as a
provider of stylish, leading-edge digital technology.
But shadows of the old brand image remain, spurred
on by the continued availability of several of the
company's traditional products. The president of
Samsung Electronics Canada has been directed to
solve this problem, prompting difficult choices
regarding product, pricing, distribution, and
promotion that threaten to hurt sales and short-run
profits.

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Case Map for


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Chapter 10 Consumer Beliefs, Feelings, Attitudes


and Intentions
Vans: Skating on 502077 California; Vans is best known for selling footwear and apparel to
Air 22p Footwear skateboarders, surfers, and other alternative sports
TN#505008 industry; $350 athletes. In April 2002, Gary Schoenfeld, the CEO, is
million revenues; facing a number of challenges. With respect to
1,700 employees; footwear, he must decide what to do about two
2002 product lines that are struggling--the outdoor line of
hiking shoes and the women's collection. More
broadly, Vans is currently embarking on a number of
new ventures, some of with which the company has
little experience. For example, Vans is in the process
of promoting a full-length movie, creating its own
record label, and working with video-game developers
to develop games based on its sporting events. Traces
the up-and-down history of a niche fashion brand in a
market in which consumers are notoriously fickle. In
recent years, the CEO appears to have revived the
brand; however, it is unclear whether the company is
in danger of losing its hardcore customer base as it
ventures into the consumer mainstream.
Building Brand 501015 Milwaukee, WI; The second Harley-Davidson Posse Ride, a grueling
Community on 37p Motorcycle; 1999 2,300 mile, 10-day trek from South Padre Island,
the Harley- Tex., to the Canadian Border is billed "for serious
Davidson Posse riders only." Harley Owner's Group (H.O.G.) Director
Ride Mike Keefe must decide whether this rolling rally
deserves a place in the H.O.G. product line, and if so,
what philosophy and tactics to adopt in future design.
This case helps students get inside one of the world's
strongest brands to consider issues of brand loyalty,
close-to-the-customer philosophy, the cultivation of
brand community, and the day-to-day execution of
relationship marketing programs. What benefits
accrue from relationship programs such as this? Can
brand community be built? How? What is the role of
the marketer in this process? Is it better to develop
customer intimacy or empathy when executing close-
to-the-customer goals? Can management really
balance apparently disparate subcultures such as the
retired bikers, Yuppie Weekend Warriors, and serious
outlaws within one community? Includes color
exhibits.

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Chapter 11 Culture, Ethnicity and Social Class


Virgin Mobile 504028 United States; Dan Schulman, the CEO of Virgin Mobile USA, must
USA: Pricing for 19p Telephone develop a pricing strategy for a new wireless phone
the Very First TN#504108 industry; $5.2 service targeted toward consumers in their teens and
Time billion revenues; twenties, many of whom are believed to have poor
200 employees; credit quality and uneven usage patterns. Contrary to
2002 conventional industry wisdom, Schulman is
convinced that he can build a profitable business
based on this underrepresented target segment. The
key is pricing. Schulman is currently debating three
pricing options: 1) adopting a pricing structure that is
roughly equivalent to the major carriers, 2) adopting a
similar pricing structure, but with actual prices below
the major carriers, or 3) coming up with a radically
different pricing structure. With respect to the third
option, Schulman is considering various alternatives,
including a reliance on prepaid (as opposed to post-
paid) plans and the total elimination of contracts.
Includes color exhibits.
Chapter 12 Family and Household Influences
TiVo in 2002: 502062 Japan; Mobile Brodie Keast is anxious to understand the sharp
Consumer 14p phone; 56 billion contrast between the inertia of prospects and the deep
Behavior TN#506067 yen revenues; emotional response shown by converted users of
1997 TiVo. After an overview of the company's situation
and problems, the case focuses on different kinds of
data (sales results, satisfaction and usage data,
purchase influence, demographics, attitude data, and
behavioral data) and explains how that data emerged
over time as the company was more and more
pressured to explore the essence of its value
proposition.
Chapter 13 Group and Personal Influence
Sony EyeToy 505024 Europe; In early 2004, less than a year after its launch, Sony's
22p Videogame; $62 EyeToy, a unique video gaming concept, had become
TN#505074 billion revenues; a tremendous success across Europe. Developed for
162,000 use with Sony's PlayStation 2 console, the
employees; 2004 revolutionary technology allowed users standing in
front of a small camera to interact with game objects
appearing on a television screen just by moving their
bodies. Sales for the first EyeToy product ("Play"), a
bundle of the camera and software, exceeded all
expectations. However, sales for the second product
("Groove") were disappointing. Was it time for the
EyeToy team to rethink its product development and
marketing strategy? How could the team sustain
EyeToy's initial success and prove that the concept
was not a fad?

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Chapter 14 Making Contact


Aqualisa Quartz: 502030 United Kingdom; Harry Rawlinson is managing director of Aqualisa, a
Simply a Better 18p Manufacturing major U.K. manufacturer of showers. He has just
Shower TN#503058 industries; 8 launched the most significant shower innovation in
million sterling recent history: the Quartz shower. The shower
(pounds); 2001 provides significant improvements in terms of quality,
cost, and ease of installation. In product testing, the
Quartz shower received rave reviews from both
consumers and plumbers alike. However, early sales
of the Quartz have been disappointing. Rawlinson is
now faced with some key decisions about whether to
change his channel strategy, promotional strategy, and
the overall positioning of the product in the context of
his existing product line.
Callaway Golf 501019 Carlsbad, CA; Describes a situation faced by Mr. Ely Callaway, the
Co. 23p Golf; $800 80-year-old founder, chairman, and CEO of Callaway
TN#501082 million revenues; Golf Co., in the fall of 1999. After a decade of
1999 stunning success with the marketing concept,
Callaway suffered a significant loss and witnessed a
steep decline in sales in 1998. Mr. Callaway had built
a $800 million business by making a truly more
satisfying product for the average golfer, making it
pleasingly different from the competition and
communicating the benefits to the consumer. The
results in 1998 forced Mr. Callaway to reconsider the
marketing program that had successfully supported
the product until now.
Chapter 15 Shaping Consumers’ Opinions
Choosing the SMR157 Green marketing has not lived up to the hopes and
Right Green 8p dreams of many managers and activists. Although
Marketing public opinion polls consistently show that consumers
Strategy would prefer to choose a green product over one that
is less friendly to the environment when all other
things are equal, those "other things" are rarely equal
in the minds of consumers. For example, when
consumers are forced to make trade-offs between
product attributes or helping the environment, the
environment almost never wins. And hopes for green
products also have been hurt by the perception that
such products are of lower quality or don't really
deliver on their environmental promises. And, yet, the
news isn't all bad, as the growing number of people
willing to pay a premium for green products--from
organic foods to energy-efficient appliances--attests.
How, then, should companies handle these issues?
They must always keep in mind that consumers are
unlikely to compromise on traditional product
attributes, such as convenience, availability, price,
quality, and performance. It's even more important to

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Case Map for


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(Thomson, 2007)

realize, however, that there is no single green


marketing strategy that is right for every company.
The authors suggest that companies should follow one
of four strategies, depending on market and
competitive conditions, from the relatively passive
and silent "lean green" approach to the more
aggressive and visible "extreme green" approach--
with "defensive green" and "shaded green" in
between.
Chapter 16 Helping Consumers to Remember
Brand Report 501004 Designed primarily to give students the opportunity to
Card Exercise 11p evaluate brands by breaking down individual
attributes and analyzing performance in these areas. In
doing so, students will be able to isolate a brand's
distinct characteristics and decide which areas are the
most important for improving brand performance.

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