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Instructor’s Manual
Instructor’s Manual by:
David L. Mothersbaugh
(dmothers@cba.ua.edu)
&
Integrated Solutions, LLC
(lindam82@hotmail.com)
(205) 394-4682
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PART II
Case Solutions
CASE 2-1 BMW TAPS THE EMERGING CHINESE LUXURY MARKET
1) There is often a natural tendency to assume that in collectivist cultures such as that in China,
luxury products would not be popular.
a) Explain how luxury products such as the BMW automobile might fulfill needs even
within the traditional collectivist value set of China.
Luxury products and brands are important to consumers in both individualistic and
collectivistic cultures but for different reasons as discussed in Chapter 2 and summarized in
the table below.
Reason Luxury Item is
Purchased
Reason for Conspicuous
Consumption of Luxury
Items
Individualistic Culture
To stand out as a means of
self-expression
Collectivistic Culture
To feel a sense of
membership in the group of
people who have that brand
To convey a sense of
individuality
To demonstrate in-group
identity and show concern for
group norms
Thus, when promoting products in a collectivist country such as China, marketers will often
have to position the product as a path to acceptance in an in-group.
b) Explain other factors that might be driving the desire for luxury in China.
The text is also clear, however, that changes in traditional values are happening in developing
countries such as China, particularly among the wealthy, young, urban set. Thus, companies
can and do successfully use self-expressive and individualistic marketing messages even
within China.
2) Develop a sample advertisement for BMW in China. Include the major theme, the key copy
points, and the visual that you would utilize. Explain and defend your choices based on the
case and materials in Chapter 2.
This question builds nicely on Question 1. Students who choose to target older wealthy
Chinese should note that collectivist values are likely to dominate. Ad themes and copy
points would need to reflect this value set.
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Alternatively, students who choose to target a younger upscale urban consumer may argue
that individualistic values predominate. Ad themes and copy points would need to reflect
this value set.
3) Growth in car ownership is expected to explode in China within the next 20 years. This will,
for many Chinese, involve buying and owning a car for the very first time. In terms of
adoption of innovation (see Chapter 7) for these first-time buyers:
a) What type of innovation is the car for Chinese consumers who have never owned one?
Explain.
Discontinuous. Because it requires major changes of significant importance to the
individual or household. Owning a car requires a substantial amount of learning (driving,
maintenance, to name a few) and adaption of lifestyle (driving in a car versus walking,
riding a bike, taking public transportation, etc.).
b) The current car owners in China, comprising 5 percent of the population, would fall into
which adoption categories?
Figure 7-9 labels the first to adopt as innovators. Students, depending on how they
interpret the 5 percent figure, will likely say innovators and possibly some early adopters.
c) Analyze the likelihood that such growth can be achieved using Table 7-3 as a structure.
Students' answers will vary. The following is one example solution and is entirely
subjective of the part of the author:
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Nature of group
5
Given low ownership rates, the nature of the Chinese
consumer group as a whole is likely to be
conservative or even risk-averse to this product.
Type of decision
--
The decision to purchase an automobile could be an
individual or a personal decision, depending on the
consumer.
Marketing effort
9
BMW is a heavily-marketed and well-known brand
name that stands for luxury, tradition and quality.
Felt need
3
This could be a major barrier. There are many other
traditional modes of transportation that the average
Chinese consumer is more comfortable with. BMW
may need to actually encourage “problem
recognition” to spur growth.
Compatibility
2
Not at all compatible for those who have never owned
a car. A MAJOR barrier.
Relative advantage
2
Another major hurdle. Those using more traditional
modes of transportation may see more disadvantages
(traffic jams, parking, driving itself) than advantages
for a car in general.
Complexity
1
High complexity of all the interrelated processes that
must be learned is again a barrier.
Observability
9
Observability is high, so this could aid in adoption.
Trailability
2
Low trialability (beyond test driving) could hinder
adoption.
Perceived risk
2
Risks are high both financially and socially. These
risks could be barriers to adoption.
d) Do you think the values and desires of later adopters in china will be different from the 5
percent who currently own cars?
The later adopters will have different values than the innovators. The first group of
consumers (innovators) to adopt are generally younger, better educated, more socially
mobile, and more risk-taking. The later adopters (or late majority) are older, have less
social status, and are skeptical about innovations.
The case also indicates that the road systems are being put in place for more rural areas.
These rural areas, though a source of potential customers, likely involve customers with
more conservative and traditional values who may be harder to convince to purchase an
automobile.
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4) The automobile is an innovation that is not as widespread in China as in other countries.
Chapter 7 discusses the innovation process and factors affecting the spread of innovations.
Figures 7-7 through 7-9 give examples of various diffusion curves based on different
diffusion rates. Draw two separate adoption curves, one for rural consumers, and one for
urban consumers in China. Defend your answer based on demographics, values and lifestyle
factors.
The rural adoption curve should be much slower than the urban adoption curve. In Figure 79, the rural curve would look something like the left panel, while the urban curve would look
something like the right panel. The rural consumer is less wealthy, more traditional, and
likely more conservative with respect to risk taking. They may also prefer their traditional
modes of transportation and be reluctant and therefore slower to adopt.
5) BMW and other foreign automakers are adapting their products to better suit the Chinese
market. To what extent should BMW customize its offerings to local tastes and preferences?
What are the risks of extreme customization?
Students’ answers may vary from recommending major customization to only minor
customization. An argument for major customization is that China is already the biggest
market for BMW. Therefore, it probably pays to make the necessary adaptations. Notice that
BMW appears to think so too, since it just launched a “China only” hybrid. Some students
may argue for a more conservative approach, stating concerns about other markets. In
general, such concerns are warranted. However, given the size and potential of China,
companies such as BMW may simply choose to make China the “norm” or make China-only
models given the scale-economies such a large market can create.
6) Developing guanxi is a vital part of business in China. Using the text and case, explain how a
Western company could build guanxi with its Chinese business partner.
As defined in the text, guanxi is personal connections/relationships on which an individual
can draw to secure resources or advantages when doing business as well as in the course of
social life. Its main characteristics are (1) the notion of a continuing reciprocal relationship
over an indefinite period of time, (2) favors are banked, (3) it extends beyond the relationship
between two parties to include other parties within the social network (it can be transferred),
(4) the relationship network is built among individuals not organizations, (5) status matters—
relationships with a senior will extend to his subordinates but not vice versa, and (6) the
social relationship is prior to and a prerequisite to the business relationship.
Thus, building strong interpersonal relationships based on trust is important and often
requires more time to develop than in other countries or cultures. Students might note the
possible legal issues around the “banking of favors.” For companies from many other
countries, such “banking of favors” could be interpreted in terms of “bribes.” Care and legal
counsel is necessary in navigating global relationships.
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7) China is not the only Asian country with a large population that represents opportunity for
new customers who have their own unique tastes. Similar to BMW Brilliance, BMW India
serves the Indian market and launches certain models especially for India. Discuss factors
that make India attractive to BMW. Compare and contrast India and China in terms of the
key elements that BMW must address.
Clearly, like China, India is a developing East-Asian country with a large population and a
growing middle and upper class. Such trends favor luxury products such as a BMW
automobile. In addition, however, similar barriers such as traditional modes of
transportation, poor road systems in rural areas, and so on exist.
One way to approach this is to have students attempt to gather information outside of class
and do a diffusion analysis for India and then make the relevant comparisons. An element of
focus should be the differential role (if it is different) of luxury automobiles in the Indian
culture. Another, of course, will be language considerations. India’s education system is
built around the British English system and educated Indians typically speak three languages
(English for school, Hindi, the primary official language of India, and a local/regional
dialect). Also, cultural differences, even for these two East-Asian countries, must be
considered.
CASE 2-2 THE CREST WHITESTRIPS CHALLENGE
This case is very useful because it exposes students to, and forces them to work with, the types of
demographic data that are readily available to marketers. This data is available in most
university libraries and at most large ad agencies.
1) Based on Table A, describe the typical user of whiteners overall, gel whiteners, and whitener
strips in one paragraph each.
Overall, the typical whitener user is female, younger, educated, professional occupation,
Black or Hispanic, located in the Southeast, higher income, and single or divorced.
The typical gel user is female, younger (though somewhat older than strip users), somewhat
less educated, somewhat more blue-collar though also professional, Black and to a lesser
degree Hispanic, in the South, higher and lower incomes, and single or divorced.
The typical strip user is female, younger, educated, professional occupation, white, located in
the Southeast and Pacific, higher income, and single.
2) Conduct an innovation analysis of Crest 3D 2 Hour Express using Table 7-3 as the basis.
What insights does the innovation analysis provide into its probable sales growth?
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The diffusion analysis below is entirely subjective on the part of the author.
Nature of group
7
Younger consumers, as a group, tend to be more
innovative, thus may be quicker to adopt new oral
hygiene products. This assumes the target for this
product is younger.
Type of decision
9
Would involve only the purchaser.
Marketing effort
7
Crest seems to own this niche and wants to hold
onto it. Their resources as a P&G company
should be substantial. Though the market appears
to be declining, they are still investing heavily in
new products and marketing. The question is,
how long.
Felt need
3
This will likely vary and is one of the major
overall barriers – with so many products to
whiten teeth besides whitener strips – including
mouthwash and toothpaste; the felt need may be
low which might explain the low penetration rate.
Compatibility
3
Another barrier. Consumers are used to brushing,
flossing, and rinsing but not putting strips in their
mouths.
Relative advantage
2
A problem that Crest is trying to overcome with
its advertising, but not only may it be difficult
with less expensive and easier to use alternatives
like toothpaste with whitener, but it also may fall
short perceptually to a professional treatment by a
dentist.
Complexity
7
Complexity is relatively low; it is just not
something people are use to doing.
Observability
1
Brand is not observable, nor is the type of method
used. This won’t help to encourage the use of
Crest or its specific strips over other methods.
Trailability
2
Difficult to try a little – you use it or not.
Perceived risk
7
May be lessening, but later adopters may still be
concerned about damage to their teeth. This
could be particularly true for this option since it is
more powerful and faster acting.
3) Using demographics, describe the best target market for Crest 3D Whitestrips.
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The typical strip user is female, younger, educated, professional occupation, white, located in
the Southeast and Pacific, higher income, and single. This may be one ideal segment.
However, students should be encouraged to think of other “attractive” segments that could be
targeted if some of the barriers to adoption and use could be overcome.
4) What value does the Crest 3D 2 Hour Express tap into that its other whitener products do
not? Explain.
As stated in the press release for this product, Express offers instant gratification which is the
immediate gratification value discussed in Chapter 3. None of the other products offer the
one-time treatment feature and require consumers to wait from 10 days to 6 weeks for full
results.
5) What areas of opportunity does Table A suggest for Crest to expand the total market for
whiteners beyond 15 percent of the adult market? What barriers exist to adoption of whitener
products by these groups?
Lower users of strips are men, older, lower educated, blue collar, Hispanic, lower income,
and widowed. Barriers include cultural (men, widowed, blue collar, Hispanic), and economic
(income). Whitestrips are relatively inexpensive compared to dental treatments, but still
expensive for lower income consumers. Having a strip that is lower priced could help. But
cultural barriers for such groups as men, who may not feel the necessity or appropriateness of
engaging in such high-end treatments and would rather opt for traditional approaches, may be
more difficult challenges to overcome. Overcoming them, however, could result in stronger
sales growth.
6) Which ethnic groups are more inclined to use whitener products? For each ethnic group
listed, develop an advertising campaign including key positioning statement (how you want
your brand to be perceived), and key advertising elements such as spokesperson, copy points,
and other symbolic elements.
Overall, Blacks and to a lesser degree, Hispanics, are more likely to use whitener products.
Students should utilize all the information about these ethnic subcultures in coming up with
their advertising campaigns for these groups.
7) What type of reference group and reference group influence is being used by having Amanda
Peet and Katie Cassidy promote the Crest 3D Whitestrips? Explain.
These are both examples of aspirational reference groups. They represent a positive, nonmember, weak tie (the group being professional attractive female actresses). The type of
reference group influence appears mostly to be identification. The group in this case has no
way of rewarding or punishing and what appears to be the goal is to have consumers
internalize the goals and values of the group, such as the importance of having beautiful
white teeth.
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Some students may say informational influence because actresses are professionals who
count on their teeth being white and who would be seen as being relatively knowledgeable
about the options out there. This would draw on their presumed expertise in the area.
8) Do an HLC analysis relating to age and household structure. What aspects emerge that help
to explain why consumers of various age groups and marital status are more or less likely to
use whiteners.
Single, divorced, and young trend strongly toward this product. This is when dating is
common and there is a need to impress others and “look your best.” It would be interesting
to see if single men were more likely users of this product than married – something this data
does not allow us to examine.
Older and widowed trend away from this product. Age may engender a lack of
innovativeness in this category. Dentures are also more common with aging. Also, widowed
status may at least temporarily dampen the amount of socializing and thus decrease the felt
need for this product.
9) What do you feel are the major barriers to growing the whitening market overall? Discuss
how these might be overcome.
Various reasons may account for the decline in this market including a significant older
population where dentures are more common, alternative whitener avenues in the over-thecounter (OTC) market such as toothpastes and mouthwashes that include whiteners, and the
emergence of lower-priced dental procedures which are often perceived to be more effective
than OTC options.
Indirectly, Crest and other oral care companies may be contributing to better hygiene and
longer lasting teeth, thus overcoming the age barrier. Aging boomers are very different from
their parents’ generation; and thus, may be more innovative in this category and may also be
more “vain” in terms of appearance, and as a result, gravitate more toward OTC products to
help them. Competition from cheaper alternatives and more expensive and better alternatives
(as perceived by the customer) may be hard to overcome. The overabundance and over focus
on whitening in all the oral hygiene products may make this category hard to differentiate and
expand. Changing effectiveness perceptions may take more than a few simple
advertisements, though product trial results reported in the ads could go a long way in
increasing the credibility of those claims.
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CASE 2-3 CAMRY GOES INTERACTIVE TO ATTRACT BLACK
WOMEN
1) There are three types of reference group influence – informational, normative, and
identification. Assuming Bianca is a representative for the group consisting of successful,
urban, professional African American women, which type(s) of group influence do you see
operating in this campaign?
Informational influence is a potential since a member of the target group is implicitly saying,
“You are like me and I like this car, so you will too”.
Normative influence is not really being utilized in this campaign. There is no threat of
punishment or promise of a reward by the group for compliance (buying the Camry).
Identification influence is likely the strongest influence being utilized. The goal here is to
have the target market identify and internalize group values and beliefs and then act on them.
The implicit belief is that Camry is part of an active, adventurous, urban lifestyle. Notice the
strategy of showing a member of the target group using the automobile which is consistent
with an identification influence strategy.
2) What are the primary core American values that this campaign is attempting to tap into?
Active (rather than passive) – the excitement and adventure aspect of the espionage theme,
along with the “on-the-go” professional woman.
Change – this campaign is based on the reality of existing females and African-American
professionals as role models, not stereotypes.
Individual – this campaign revolves around Bianca and her individual accomplishments.
Diversity – this campaign is reaching out to African American professional women and
indicating their desire to be their car of choice.
Youth – this campaign is clearly targeting a youth audience – Bianca is a young urban
professional.
3) What values and aspirations does this campaign tap into relating to the sub-groups of
professional women and professional African American women?
This campaign taps into both professional women and African American women – values
and aspirations relating to modern gender roles and upward mobility and status for women
and blacks and so on.
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4) In Chapter 5, we describe 11 African American market segments identified by Yankelovich.
Which group or groups do you think the target market of professional African American
women best represents? Explain.
Answers will vary here and there is no perfect match. The closest would be the female
members of the Black Onliners followed by the female members of the New Middle Class.
Black Onliners come close in that they fit the age and income demographics and are tech
savvy and brand conscious, which fits the description of the target professional African
American women, and fits the featured aspects of the car and the Interactive nature of the
campaign. While this group trends male, the female members of this group could be
targeted. This group is described in the text as follows:
Black Onliners (7 percent) – Younger (18-34), male, middle/upper income, brand
conscious, place strongest importance on being around people of own ethnicity, most
stressed about work, family, academics, and straddling black and white worlds, heaviest
users of such technology as blogs and IM.
The New Middle Class is also a good match to the demographics of the target professional
African American women and the tech savvy nature of this group would fit the campaign as
mentioned earlier. Given the suburban nature of this group, this may be the most receptive
audience to the Camry even if it never becomes truly a trend setter. This group is described
in the text as follows:
New Middle Class (5 percent) – Younger (25-44), highest education and income (1 in 4
earns $100k or more), most suburban, high tech use (55 hours a week Internet), positive
about future, self-describe as black, feel “black slang” should be avoided.
NOTE 1: Digital Networkers (female members) might be identified by some students as a
good future market to begin targeting. Though a little young in some cases, they like
shopping online, are tech savvy, and as they age are likely to move into the higher income
category that Toyota is targeting.
NOTE 2: You might also push students to identify one or more groups that are not such a
good fit. There are many including “Boomer Blacks” due to the fact that they are out of the
target age range, and “Sick and Stressed” who don’t match the age or income characteristic of
the target group.
5) Does the target market of professional African American women fit the message and media
that Camry used in this campaign? Be specific in your explanations for both message (what
you thought the overall themes were) and media (what types of media such as print and
Internet) they used and how they fit the target audience.
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The message is that Camry fits the lifestyle of hip, urban, young professional Black women.
This, according to Toyota’s research, is what needs to be conveyed since that is what this
target audience wants but currently sees as lacking in the Camry.
The media are well selected – Chapter 5 notes the importance of utilizing media with an
African American target audience, which Camry has done. Chapter 5 also notes that
educated African Americans are among the highest users of the Internet – hence the Internet
strategy fits well here also.
6) Beyond simply replacing a young white professional woman with one who is black, is this
campaign at its core truly tapping into the unique cultural aspects of African American
women? Explain.
Students may have different views, but the author’s view, having seen some of the episodes
and viewed the site, is the level of customization is minimal beyond having an African
American as a heroine and as characters in the story. Certainly urban, youth, and friendship
are conveyed, but these transcend ethnicity. You might have students debate whether this
level of customization is enough in this situation.
7) Why do you think Camry officials chose to try to change perceptions of their car rather than
changing the car itself?
Camry has been highly successful in reaching a mass audience and leading car sales in the
United States. And while it might at first seem odd that Camry tried to change perceptions
rather than reality, it is worth noting that for such a “mass-market” brand, major changes to
the product and product position could hurt it in the mass market. After all, the Camry has
been “conservatively designed” for decades and that hasn’t stopped its market dominance.
Students should be encouraged to estimate the size of the target niche here which will be
considerably smaller than the 13 percent of the total population that the African American
market represents.
8) Do you think this campaign succeeded in changing the perceptions of African American
professional women? Explain. How might you have altered your approach to have a
stronger impact?
Answers will vary here depending in part on whether they think the level of customization to
African American women was enough. Students will also argue that the car hasn’t changed
much if at all, so Camry is really just trying to change perceptions and not reality and that
such a short-lived effort will not be able to achieve this. Students might suggest sub-models
of Camry or option packages that make the Camry more exciting and also more of an
ongoing campaign targeting professional African American women.
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CASE 2-4 HOW SOCIAL MEDIA NEARLY BROUGHT DOWN UNITED
AIRLINES
1) When Dave Carroll posted his video on YouTube, it went viral. What American value do
you feel motivated consumers to pass along this “video complaint” to others?
One of the American values discussed in chapter three that applies to this situation is the
value of problem-solving. Many Americans take pride in solving problems and feel that most
problems can be fixed with enough persistence. After persisting in his attempts to reason with
United Airlines for nine months, Carroll found another way to solve his problem: by
spreading negative WOM through his online videos. Aside from finding the videos
entertaining, others who viewed Carroll’s videos may have felt a sense of providing aid to
Carroll in solving his problem by spreading his videos to others.
Another American value that students may mention is immediate gratification. Passing along
“juicy” information may provide some influences with an immediate sense of pleasure.
2) Of the three groups of influencers identified by Forrester, which group or groups do you think
were most likely responsible for Dave Carroll’s video going viral? Explain.
The group of influencers that would most likely be responsible for Carroll’s video going viral
is the group in the middle of the pyramid: the Mass Influencers. This group communicates
with the largest audience of viewers. Mass Influencers are not extremely motivated to spread
a message, unless the message is entertaining or gossip-laden. Carroll’s video fits that
description and so it spread quickly throughout social media with the help of these
consumers.
3) Based on your answers to 1 and 2, develop a marketing strategy for United to “recover” from
their service failure. Specifically, address the following:
a) What “message” should United be sending to the general public?
United Airlines was shamed (and their stock took a dive) in response to Dave Carroll’s
videos telling the world how they provide terrible service from the baggage handlers to
the customer service representatives. So United should focus their message on
apologizing for the failure and letting consumers know that their service will be better in
the future. Consumers need to trust that United will address their issues appropriately,
should any issues arise. Research suggests that apology and problem correction (in this
case reimbursing Carroll for his loss) can be effective in handling a problem or failure.
b) What “media” outlets (traditional, online, social) should they be using?
Because the attack on their brand was launched via online social media, that same outlet
should be one of the most heavily used in a damage control/image rebuilding campaign.
However, other types of media may be used in conjunction with online social networks to
reinforce the message.
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c) Develop a video or ad concept that United could place on social media that could help
offset consumer anger over its service failure.
Student responses will vary. However, the key is that their proposed message should be
consistent with their previous answers.
d) Identify which of the three Forrester groups United should focus on with its recovery
campaign and defend your answer.
Of the three Forrester groups, United should focus on the Mass Influencers because it is
likely the group that spread the initial videos due to their entertainment value. So these
consumers would already have an interest in United and its service. In addition, Mass
Influencers create the most impressions among the general population.
4) Chapter 7 defines and discusses opinion leaders. Are the individuals that create viral
complaint video opinion leaders? Why or why not?
The key aspect of opinion leaders is that they are product specific based on enduring
involvement with the product category. Influencers, as discussed in this case, do not meet
this criteria. They are general influencers who are interested in numerous categories of
information, news, and gossip. Indeed, it appears that the “gossip” value, not enduring
involvement with airlines or guitars, was the motivation behind the videos going viral.
5) Chapter 7 also discusses guiding principles that marketers should use when engaging in
social media. How have United Airlines or other companies who have had similar issues
operate based on these principles?
The text lists three guiding principles: transparency, being part of the community, and
leveraging the unique characteristics of the venue.
Clearly, United and others who find themselves embroiled in a product or service failure
situation need to clearly and honestly communicate about what went wrong and how they
plan to fix it (transparency). Being part of the community can simply in these types of cases
mean that the marketer “monitor” online “chatter” about the situation in order to better
understand and respond to consumer reactions. It may also mean that recovery is not a onetime campaign, but an ongoing conversation about the progress being made by the company
with the online community at large over time. Students will have various suggestions about
the unique characteristics of each venue. Facebook fan pages offer the “wall” for posting of
ongoing news items and Twitter feeds can allow the company to push their recovery message
to large numbers of users quickly.
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6) Several companies are using crowdsourcing as a way for customers to help solve one
another's problems. How might companies harness the power of crowdsourcing to combat
instances of viral negative WOM?
Companies can use crowdsourcing in multiple beneficial ways. The most relevant to this case
is for companies to set up forums in which customers can seek advice from one another,
provide ideas for product improvements, and provide feedback. It is important that
companies monitor these forums for signs of discontent among the users and address their
issues promptly before dissatisfied customers start a negative WOM campaign. Another
beneficial use for crowdsourcing is to hold contests for consumer-generated advertising,
which is engaging to the participants and saves the company promotional funds that would
have been spent at an advertising agency.
7) Besides being a method of communication, online social networks are also innovations that
are being diffused. Are online social networks continuous, dynamically continuous, or
discontinuous innovations?
Students may suggest that online social networks are dynamically continuous or
discontinuous innovations. Either of those options could be correct if the student gives a
logical rationale.
8) Describe the typical user of each of the three social networks described in Table A.
YouTube: Users trend younger, with kids, African American, Hispanic, and Asian
American, and less educated.
Twitter: Users trend female, younger, with kids, African American and Hispanic, higher
income, and less educated.
Facebook: Users trend female, younger, with kids, African American, Asian, higher income,
and less educated.
CASE 2-5 RICH, ANGRY BIRDS
1) The Angry Birds game is a type of innovation.
a) Identify whether it is a continuous, dynamically continuous, or discontinuous innovation.
Angry Birds is a continuous innovation for consumers who already use mobile apps. On
the other hand, consumers who have not yet used apps may find this to be a discontinuous
innovation.
b) Conduct an innovation analysis of Angry Birds using Table 7-3 as the basis (for the
purposes of analysis, focus on college students who already use mobile apps).
Students' answers will vary. The following is one example solution and is entirely
subjective of the part of the author:
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Nature of group
9
College students are heavy users of mobile
devices and are often motivated by the
entertainment value of mobility as much or
more than the functionality.
Type of decision
9
The decision to download Angry Birds is an
individual decision, which is conducive to the
faster spread of innovations.
Marketing effort
9
Angry Birds is heavily marketed which
encourages diffusion.
Felt need
3
With so much competition, this could be a
barrier moving forward.
Compatibility
8
For apps users it is very compatible.
Relative advantage
--
This is hard to gauge. The app seems very
popular, which would suggest a perceived
relative advantage. Again, competition could
easily erode this advantage.
Complexity
9
Low complexity – easy game to use.
Observability
5
Moderate visibility, but not massively
conspicuous unless the user wishes to show
others.
Trailability
9
Several free download versions make this very
trialable.
Perceived risk
9
Little or no risk – the free or nominal fee (99
cents) means that financial risk is not a
concern.
2) Rovio is engaging in cause-related marketing by teaming up with BirdLife International, a
nonprofit organization. How well does this cause “fit” Angry Birds? Discuss the impact that
this cause-related marketing partnership could have for Angry Birds.
Students may give a variety of answers. Some students will agree that there is a good fit
between Angry Birds and BirdLife International because they are both related to the fight
against bird extinction and that their partnership will be mutually beneficial.
Others might think that the partnership between Rovio and BirdLife is ridiculous or a
publicity stunt because Rovio is merely raising awareness, not donations. In the case of those
consumers who negatively view the partnership, the efforts could actually backfire.
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3) Examine the four cause-related marketing (CRM) consumer segments in Chapter 3. Detail
each segment’s likely response to the CRM partnership that Angry Birds has with BirdLife
International.




Skeptics doubt the sincerity and effectiveness of CRM. So, this group would say that
Rovio is not raising money for endangered birds and is only trying to get publicity and
jump on the cause-related marketing bandwagon.
Balancers believe in CRM, but don’t act accordingly. So, this group would be pleased to
hear that Rovio and BirdLife International are partnering for a good cause, but will not go
out of their way to benefit either organization.
The attribution-oriented group is concerned behind the motives of CRM. They will
evaluate what Rovio and BirdLife each have to gain from the partnership. Members of
this group may conclude that Rovio may be attempting to gain awareness for Angry
Birds, more so than to help BirdLife International.
The socially-concerned group is driven by their desire to help. This group will be pleased
at the thought of CRM and will support both organizations, without thought to motives.
4) Angry Birds and many other apps are available in numerous countries. What are some factors
that app-designers should consider when entering into a foreign market?
Students should use the factors listed at the end of Chapter 2 to answer this question. Any
number of factors including unique values, needs, communication patterns, distribution
networks, and affordability can come into play.
5) Angry Birds is appealing to young children because of its simplicity and cartoonish quality.
Clearly, children are one of the market segments that Angry Birds is targeting. They are, or
are planning such initiatives as clothing, toys, and Angry Birds Happy Meals. Chapter 6
discusses marketing to children and the consumer socialization process. What ethical
concerns should Rovio consider when marketing to children?
The biggest ethical concern that Rovio should consider is that young children have a limited
ability to process information and make informed decisions. Students will have various
opinions of what specific practices are ethical. Some students may feel that marketing to
children is unethical under any circumstances, including Happy Meals. Others may feel that
there is little or nothing wrong with marketing to children and it is up to the parents of the
children to watch over them and teach them how to be responsible consumers. One area of
concern is in-app purchases. Parents may allow their children to play Angry Birds freely and
then the children make other in-app purchases as part of the game. Unfortunately, the charges
that the parents later receive are not a game. This is a ripe area for class discussion.
6) Angry Birds has been widely popular among Americans. What American values discussed in
Chapter 3 help explain why Angry Birds is appealing to such a large audience? Defend your
answer.
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Two American values discussed in Chapter 3 apply to Angry Birds: immediate gratification
and competition. Downloading and playing Angry Birds can satisfy needs for immediate
gratification because it is available literally at the fingertips of consumers with touch-screen
technology. Angry Birds is consistent with the American value of competition because within
the game, the players compete with the egg-stealing pigs.
CASE 2-6 READY CLEATS STICK-ON GOLF CLEATS
1) What type of innovation is the REDe stick-on golf cleat? Evaluate it as an innovation using
Table 7-3 as a structure.
This is probably a dynamically continuous innovation. For those who would wear the REDe
Cleats instead of shoes, it requires buying the packets, sticking on the cleats in the proper
places and so on. Thus, there is investment in time and effort that would not be required if
golf shoes were purchased.
The diffusion analysis below is entirely subjective on the part of the author.
Nature of group
2
This target (golfers) are not particularly prone to
change. It is steeped in tradition. However,
younger golfers are more prone to change.
Type of decision
8
Likely to involve only the purchaser.
Marketing effort
--
Uncertain given this is a relatively new company.
Felt need
--
Probably depends on the situation – for travel
maybe high – this could be the basis of a
situational-based campaign.
Compatibility
2
The concept is incompatible with current attitudes
and behavior, particularly of more serious players.
Relative advantage
5
This depends on what dimension. On ease of use
they are high. On effective traction, it is less clear
and they wouldn’t likely replace metal cleats for
professional golfers. Though corporate materials
suggest that they are easier on the golf course than
“hard cleats.”
Complexity
9
Not complex to use.
Observability
--
Depends on the type of shoe worn – lots of styles
out there mimic sneakers, so unless sole of shoe
shown, may not be noticeable.
Trailability
9
It is easy to have a small trial.
Perceived risk
9
Very limited.
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2) How can the firm use opinion leaders to help its PRO LINE Round Savers succeed?
Focus the students on developing a mass communication plan. Have them identify who the
opinion leaders would be for this industry and product. Then have them discuss how they
can be used. There are many different formal organizations that can be identified and
leveraged in this situation.
3) How can the firm use reference group influence to help its PRO LINE Round Savers succeed?
There are numerous reference groups here. There is the aspirational group of professional
players, the golf pros at a players golf club, and members of a players regular playing group.
These groups will all have different influences. The professionals could serve as information
and identification influence. The pros and players at a golfer’s own club could involve
normative influence (chuckles and jokes made about those “funny” cleats, too cheap to buy
“real” shoes, and so on).
4) What values will help this product succeed?
Active (over passive), performance (over status), change (over tradition), and individualism
will all help this product.
5) Would you target professionals or amateurs? How would your approach differ between the
two groups?
Professionals might be targeted, but as noted in the case they tend to use even more
specialized gear. They could be a reference group if converted, but their conversion would be
difficult. Amateurs would be the most likely target. With the professionals, performance
would have to be the number one aspect. With amateurs such aspects as convenience, price,
and comfort would all come into play.
6) What demographic groups would you target?
Golf is attracting an ever-wider demographic. However, it is still expensive to play. It might
make sense to go after two demographics as follows:
First, go after the high-end golfer who travels frequently to golf. Stress the performance and
convenience angle.
Second, go after the lower-income golfer who is younger and perhaps who doesn’t golf
frequently and target the cost savings (versus regular shoes).
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7) Develop an advertisement for REDe Golf’s PRO LINE Round Savers. Be sure to articulate
the advantages of the product and also utilize reference group influence.
Strategies would vary from information laden with facts about the product and its
effectiveness, ease, and comfort, to opinion-leader strategies such as a club pro making a
recommendation, to informational reference group strategies such as the fact that the major
regulator bodies in golf have recognized the product as acceptable.
8) How would you market the REDe Golf’s PRO LINE Round Savers in these countries?
a) Japan
b) European Union
c) Mexico
Golf is becoming increasingly popular in Japan and Mexico and has been popular in the EU
for centuries. It is important to have students recognize the standardization of marketing
strategies. Can a standardized strategy be used in other countries and cultures? What factors
must be adapted? Push students to develop a list of factors that would influence the success
of a strategy across countries.
CASE 2-7 TIDE GOES AFTER GREEN WITH NEW PODS
1) Table 3-1 describes a green segmentation scheme of consumers that includes psychographic
and demographic information. Choose four of the eight segments and describe the likely
reaction that each segment will have to the introduction of Tide Pods.

Eco-Centrists (16 percent): Highly committed to and concerned about the environment.
Beliefs reflected in their consumption behaviors across a wide range of products. Will
pay more for eco-friendly products. Cynical about corporate green efforts – viewed as
merely marketing tactics. This group is likely to buy Tide Pods, even at a premium. But,
they may question P&G’s motives behind its greener offering.

Respectful Stewards (7 percent): Most highly concerned about environment. Beliefs
reflected in their consumption behaviors. Will pay more for eco-friendly products. Not
cynical about corporate green marketing efforts. This group is likely to buy Tide Pods,
even at a premium.

Proud Traditionalists (14 percent): Environmental efforts focused on keeping home
running efficiently and effectively (insulation and water-efficient products). Focused on
family and hard work. This group may be interested in Tide Pods because of the
increased efficiently of reduced waste (water, detergent, wear on the washer).
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
Frugal Earth Mothers (18 percent): Environmental efforts focused on running a more
efficient home to save money (buy used, wash in cold water, air dry clothes). Focused on
practicality and lowering day-to-day costs. This group may be attracted to the fact that
Tide Pods waste less detergent.

Skeptical Individuals (13 percent): Believe in environmental issues like global warming
and carbon emission concerns. Skeptical of corporate green efforts. This group is likely
to buy Tide Pods because of its green characteristics, but will be wary of any
“greenwashing,” or deceptive environmental claims.

Eco-Chic (14 percent): Environmentally concerned, but actions don’t match beliefs.
More interested in appearing to be green to “ride the wave of environmental
consciousness.” May try eco-friendly products but tend to return to their favorite nongreen brands. This is not a group for Tide Pods to rely on for long-term growth.

Green Naives (11 percent): Environmental issues have not registered with this group in
terms of beliefs or actions. This group would not buy Tide Pods based on its
environmental impact. However, they may be interested in other aspects of Tide Pods,
such as ease of use.

Eco-Villians (7 percent): Highly dismissive of environmental concerns. Don’t believe
global warming exists. Highly suspicious of corporate green efforts and seen as
marketing ploys. This group would not buy Tide Pods based on environmental impact,
but other aspects such as convenience, may be appealing.
2) Chapter 7 discusses diffusion of innovations.
a) Identify whether Tide Pods is a continuous, dynamically continuous, or discontinuous
innovation.
Tide Pods is a continuous innovation because it requires little change in consumers’
behaviors. Instead of pouring or scooping detergent into a cup and adding it to the laundry
(along with fabric softeners, etc.), consumers simply drop a small tablet into the wash.
b) Then, evaluate Tide Pods as an innovation based on Table 7-3 (use college students as the
group of consumers for this example).
Students will provide various answers. The following is one example solution and is
entirely subjective on the part of the author:
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Nature of group
8
College students are typically more open to change and their
laundry habits may not yet be well formed which is good for
Tide Pods.
Type of decision
9
Likely an individual decision which aids diffusion.
Marketing effort
9
Heavily marketed - $150 million marketing effort.
Felt need
3
Solve the “too much detergent” problem. However,
consumers are often unaware of this and marketing will need
to focus on creating awareness of the problem.
Compatibility
7
Fairly compatible – still putting product in washer with
clothes. Though some users who have well established habits
of “mixing” their own solutions may find it incompatible.
Relative advantage
7
Have a relative advantage due to convenient “all-in-one”
formulation. Competition may erode this in the future.
Complexity
9
Not complex to use.
Observability
1
Low which limits diffusion rate.
Trailability
9
Free samples and coupons will make this product highly
triable.
Perceived risk
8
Low absolute risk involved.
3) Consumer tests show that some people are reluctant to use premeasured laundry tablets
because they learned to do laundry differently from their parents.
a) How does this apprehensive attitude toward Tide Pods relate to the consumer
socialization process discussed in Chapter 6?
During the consumer socialization process, parents are role models of consumer behavior
to their children. Sometimes, parents explicitly instruct their children on how to consume
products through instrumental training. Other times children learn from observing their
parents through modeling. Parents can also educate their children through mediation, or
altering a child’s initial interpretation of stimuli. A major part of the consumer
socialization process is that parents impart consumption-related preferences to their
children. The majority of Americans have grown up seeing their parents use liquid or
powder detergents in the laundry, not premeasured tablets or sachets. Some parents may
have specifically told their children which types of detergent are preferable. Thus, many
Americans have been socialized to use detergent in a way similar to their parents.
b) Recall and discuss examples of how your family has influenced your own consumer
behaviors.
Students will have a wide variety of examples of how their parents socialized them as
consumers. Some popular examples are automobile brands, clothing, methods of cooking,
and beauty care products.
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4) Chapter 7 discusses influencers.
a) Who are likely to be the influencers for Tide Pods?
Student answers may vary. However, the attributes of Tide Pods suggest several different
influencers.

The convenience aspect suggests that busy professional women might be
influencers since the product provides so much value in time savings and
simplicity for this task. Busy moms would also fit here due to the convenience.

The green aspect suggests that environmentally conscious consumers might serve
as influencers here as well.
b) How can P&G best target and utilize them?
If P&G can find influential bloggers (so-called “mommy bloggers” or environmental
bloggers), they might use product sampling (in which case new blogger rules would
apply). Other aspects might be through social media such as Twitter and Facebook.
5) How could P&G build buzz or WOM for Tide Pods?
Marketers can create buzz or WOM in many ways, such as communicating with, and giving
product samples to, influencers, using product placement, getting celebrities to mention the
product, and conducting guerrilla marketing campaigns such as flash mobs.
6) Using the demographic characteristics of green cleaners listed in the case develop a
marketing campaign including (a) core theme, (b) body copy, (c) key visual aspects, and (d)
media considerations for one or more target groups.
Answers will vary depending on the target group. The key is that all aspects of the campaign
tie into the selected group. For example, if it is households with children, the convenience
theme may be appropriate, along with a visual of a mom or dad overwhelmed with daily tasks
using the Tide Pods to make laundry a snap. If targeting one of the ethnic groups,
considerations of cultural heritage and values as well as language (Hispanics) need to be
addressed.
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CASE 2-8 TAPPING THE ETHNIC HOUSING MARKET
Questions 3 and 4 could be the basis of a longer term project.
1) What are the opportunities and challenges facing housing lenders and real estate agents
across ethnic subcultures?
Opportunities include the fact that while there are some common motivations across ethnic
subcultures in terms of why people want to purchase a home (e.g., good place to raise and
educate children, paying rent is bad). The fact that there are also different motivations can
also be an opportunity for those realtors and lending agencies who understand and market to
those differences (e.g., owning a home as a signal of status, as a good retirement investment).
Also the size, growth, and purchasing power of the various ethnic subcultures are increasing
which represents an opportunity within these markets.
Challenges include (a) language – in the case of Spanish Hispanics, (b) lower knowledge
levels, (c) anxiety about the buying process, and so on. The differences in underlying
motives for buying a house could also be seen as a challenge to those realtors and lenders
who are unwilling or unable to adjust their products, services, and marketing messages across
ethnic subcultures.
2) Based on the information in Tables A, B, and C develop an overall marketing strategy for
targeting each of the following groups:
a) African Americans
b) English Hispanics
c) Spanish Hispanics
This is an interesting and useful exercise. Students should be encouraged to combine
information from Chapter 5 along with information in the tables to identify core marketing
strategy issues, opportunities, and challenges across the ethnic subcultures.
3) Based on the information in Tables A, B, and C develop advertising campaigns including (i)
overall positioning strategy and core theme, (ii) key advertising copy points, (iii) visual
elements, and (iv) key media outlets for:
a) African Americans
b) English Hispanics
c) Spanish Hispanics
This is an interesting and useful exercise. Students should be encouraged to combine
information from Chapter 5 along with information in the tables to identify core marketing
strategy issues, opportunities, and challenges across the ethnic subcultures.
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Clearly core themes for African Americans and Hispanics can focus on some common
themes such as “good investment,” “live in community that shares my values,” and “symbol
of success.” Some differences include the fact that African Americans are less motivated
than are Hispanics by convenient location to work, family, and friends, and a home as a good
place to raise/educate your kids. Having some key core values may help the general themes
to be similar in many cases across African Americans and Hispanics. However, the
execution of these themes will require adaptation in terms of such things as ethnicity of the
spokesperson, country-of-origin for Hispanics, language for Hispanics, media outlets, and so
on.
4) Based on the information in Tables A, B, and C develop training materials for lenders and
real estate agents to enhance their interactions with consumers from various ethnic
backgrounds. Analyze lenders and real estate agents separately and develop materials
relating to both verbal (written and oral) and nonverbal communication.
This can drive interesting and useful discussions relating to the communications challenges
across ethnic subcultures (both verbal and nonverbal) and how these issues then can be
incorporated into training materials. Analyzing lenders and real estate agents separately
requires them to consider the specific dynamics involved in those separate aspects of the
home-buying process and the unique challenges and opportunities facing each based on the
case information.
You might encourage students to interview the owners or managers of local real estate
companies or banks who target various ethnic subcultures, when possible, as a way to gain
specific insights into the opportunities and challenges involved.
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