Consumer Behavior

A. Read Chapter 9 and then answer the following:

Imagine that you work for a well-known marketing research firm. Your supervisor has asked you to use the expectancy disconfirmation model to evaluate a consumer’s post-hoc satisfaction level for a recent purchase of running shoes.

Your Challenge:

1. Identify three determinant attributes for this consumer (e.g., comfort, style, durability).

2. Determine the consumer’s importance weights for each attribute, such that they total 100%. For example, comfort = 30%, style = 10%, and durability = 60%.

3. On a 1 to 7 scale, ask the consumer to rate how he expected the brand to perform on each of these attributes, prior to purchase (for example, comfort = 6, style = 4, and durability = 6).

4. Also on a 1 to 7 scale, ask the consumer to rate his actual perceptions of how the shoe has performed on each of these attributes.

5. Plug in the weights, expectations, and perceptions into the formula: S = Σw(p−e). Does the outcome of the function suggest that this consumer is satisfied, delighted, or dissatisfied? To see if the model is consistent with the consumer’s response, ask the consumer if he is satisfied.

B. Read Chapter 10 and then answer the following:

In the early 1980s, a format war took place between VHS and Betamax videotapes for video storage. VHS ultimately won. History always repeats itself. Between 2000 and 2008, another format war took place between Sony’s Blu-Ray and Toshiba’s HD DVD (high density optical disc for video storage). Blu-Ray ultimately won. But why? HD DVD had several advantages over Blu-Ray. HD DVD was the pioneering brand, or the first brand to enter the market, plus it was less expensive than Blu-Ray. Initially, almost as many movie titles appeared in HD DVD as did in Blu-Ray. Using the concepts in Chapter 10, how would you compare and evaluate these differences? In January 2008, an important event tipped the scale in favor of Blu-Ray when Warner Brothers Studios decided to support Blu-Ray exclusively. Because Sony Blu-Ray already had the exclusive support of Sony Pictures (including MGM/Columbia Tristar), Disney (including Touchstone and Miramax), Fox, and Lions Gate, the Warner decision gave Blu-Ray the support of 70% of the movie studios. Toshiba was unable to overcome this advantage. In addition, Blu-Ray discs hold more data than HD DVD discs (50 GB versus 30 GB). The Sony PlayStation 3 can also play PS3 games, Blu-Ray discs, and standard DVDs. Using the concepts in Chapter 10, how would you compare and evaluate these differences?

Your Challenge:

1. What strategies could HD DVD have used to beat Blu-Ray?

2. What strategies could Blu-Ray have used to beat HD DVD more quickly?

3. After Warner Brothers decided to support only Blu-Ray in January 2008, Toshiba reduced the price of HD DVD players to $150. Explain why this was too little, too late. In February 2008, Net Flix, BestBuy, and Walmart announced that they would phase out HD DVD. After these announcements, Toshiba announced that they would stop producing HD DVD players. Explain why Toshiba needed the support of Warner Brothers, Net Flix, BestBuy, and Walmart.

4. In what other product categories do you currently see a format war? What steps can competing companies take to try to avoid format wars?

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