Exam 5: Advertising Integrated Brand Promotion and Consumer Behavior

Scenario 5-1 As clothing and accessories retailer Gap, Inc.attempted to carry its brand to greater heights, executives felt that a great way to refresh the company's logo would be to change it all together.However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision.A number of consumers stated that the new logo looked "cheap, like a crummy PowerPoint presentation," and that was all company executives needed to hear.Gap admitted that the idea of changing the company's logo was probably not the right move nor was it the right time to do so.The company will look for other ways to develop the brand.Clearly, Gap's reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions. (Iko Han, "Gap's New Logo Proves the Company Knows How to Listen." Cornerline News, October 13, 2010.) -(Scenario 5­1) Gap's loyal customers generally believed the company's products are high­end and sophisticated. Judging by the initial responses, consumers felt Gap's new logo represented lower­end products, and would, Therefore, appeal to a lower social class.This concept of differing social levels is called:

Social class, race, and ethnicity are ways in which members of a culture are classified by systematic inequalities that affect their social standing and is known as stratification.

Which of the following has been found regarding advertising and gender?

While purchases based on brand loyalty are merely consumption simplifiers, purchases based on habit are the result of a strong commitment to a brand.

One of the main reasons why social class may not be completely reliable in predicting the preferences and tastes of Americans is that:

How does the extended problem solving mode of decision making differ from the limited problem solving mode of decision making?

Scenario 5-2 Since its introduction to the market in 2007, Apple Inc.'s iPhone dominated other smartphones in terms of units activated per year.However, several years later, Apple faced stiff competition from Google's Android software and Research in Motion, the maker of the Blackberry.The problem for Apple is that its competition, primarily phones powered by Android operating systems, largely outnumber the iPhone in terms of available options.In the U.S.alone, there are over twenty smartphones that run on the Android operating system, compared to Apple's one iPhone.Americans are now buying more Android phones than iPhones.Experts claim that if the trend continues, Android will have erased the iPhone's once enormous lead in the high-end smartphone market in a little over a year.Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies. -(Scenario 5-2) After purchasing a cell phone, Melody states that she should have purchased an iphone rather than the one she purchased because the iphone is more popular and elegant.This is an example of .

An individual would tend to have higher involvement in a purchase of an item if it is of a lower price.

The concepts of need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation represent the four stages of the:

An internal search for information is never sufficient and requires an external search for consumers to find what they want.

Scenario 5-4 Torque, a car manufacturer, aims to make its slogan "Burn Rubber" known to every individual in a way that they immediately associate it with the firm.The company has created a social media page where almost a thousand fans have registered.However, there are two competitors who advertise the same features as those of Torque's cars.The firm has a large number of customers who think it manufactures the best cars and there is no other manufacturer better than Torque. -(Scenario 5-4) Torque advertises its slogan in a way in which people will immediately associate it with its cars. Torque is using advertising which involves the .

The text explores the concept of consumer behavior from two perspectives.These two perspectives are .

Scenario 5-5 Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix the beverages that he knew his guests would like.Having never purchased a blender before, Jerome felt that he needed to shop carefully and take his friends' suggestions on which brand to buy.After visiting several stores and examining numerous models and brands, Jerome settled on a Kitchen-Aid model that cost $100. -(Scenario 5-5) Jerome mentions to another shopper at the store that low-quality blenders are made of plastic and high­quality blenders have a stainless steel base.This comment represents Jerome's:

can tap into information that has accumulated in one's memory as a result of repeated advertising exposure.

Although cultures participate in rituals, consumers do not participate in rituals.

The basic idea of cultural branding is to find some rift in the seams of society and then use it to offer a solution in the form of a branded good.

Which of the following statements would be made by someone experiencing cognitive dissonance?

Discuss how emotion plays an important role in consumer behavior.

Advertisements-like books, movies, posters, and paintings-can act as sociocultural "texts" that are read and interpreted by consumers.In this case, advertising:

Evaluative criteria are universal traits or attributes that pertain to all product categories and are used as rating factors when making purchases.