Unit 8
[MT459: Consumer Behavior]
Unit 8 Assignment
Review Table 14.2 Time Line for Selecting an HDTV. Review the Adopter Categories on 441-442.
Create a 2–3 Page APA paper on why these steps are important to the selection process as a
consumer, and then identify what type of Adopter you are from the categories and why?
As with all material you submit to the Instructor, check for correct spelling, grammar, punctuation,
mechanics, and usage. Please refer to the Online Communications Guidelines for Paper Submission
Standards.
Assignment Checklist:
1.
2.
3.
4.
5.
6.
Determine the psychology of consumer decision-making
Assess when social factors impact consumer decisions
Determine the five factors that influence decision by consumers
Paper should be 2 to 3 pages
Paper should be in APA format and citations style
Review the grading rubric (below) before starting this assignment
Directions for Submitting your Assignment
Compose your Assignment in a Microsoft Word document and save it as Username MT459
Assignment-Unit8.doc (Example: TAllen- MT459 Assignment Unit 8.doc). Submit your file by
selecting the Unit 8: Assignment Dropbox by the end of Unit 8.
Unit 8
[MT459: Consumer Behavior]
Unit 8 Assignment Grading Rubric = 30 Points
Criteria
Maximum
Percent
Maximum
Points
Content
Assignment nswer provides correct and complete information:
50%
15
1. Determine the psychology of consumer decision-making.
2. Assess when social factors impact consumer decisions.
3. Determine the five factors that influence decision by consumers.
Analysis and Critical Thinking
Answer demonstrates critical thinking:
Provides a synopsis of situation
Analyzes key issues
Defines the problem
Presents alternative solutions
Selects a solution
Implements solution
Makes recommendations
Writing Style and Grammar
30%
9
10%
3
APA Format and citation style
10%
3
TOTAL
100%
30
TABLE 14.2 Time Line for Selecting an HDTV
440441
WEEK
0
PRECIPITATING SITUATIONS/FACTORS
Janet, a group account director for an advertising agency, has been living and working
in Manhattan since graduating college 10 years ago. Last Spring she purchased a onebedroom apartment in a very nice “doorman” building in Manhattan, in a location that
allows her the luxury of being able to walk to work. This apartment replaced the studio
she had been renting—one that was small and was not suitable for entertaining friends
(at least not more than one or two at a time). Since moving into her new home she has
been planning to replace her old inexpensive furniture with more fashionable furniture.
But it takes her several months of living in her new home to have some idea of what
style she wishes to decorate in and what pieces of furniture she wants to purchase. Also,
because of the expense of moving, having the apartment painted, purchasing window
blinds, etc., it takes about four months before she feels she is ready to being decorating.
DECISION PROCESS BEGINS
16–20 Janet visits a number of furniture stores and talks to salespeople about the pros and cons
of various types and styles of furniture. She also, when visiting friends, carefully
evaluates how they have decorated their apartments.
Janet’s parents live in a suburb of New York City and are presently redecorating a
21
number of rooms in their home. At her mother’s suggestion, Janet has her mother’s
decorator visit her in her new apartment to discuss decorating options and colors.
A TV STORAGE UNIT IS PURCHASED
22
23
24
25-27
When shopping at a branch of a national furniture store chain, Janet sees a TV unit that
she falls in love with. It is about 100 inches wide, and consists of a central storage
piece—made for an HDTV set to sit on top—flanked by a tall thin bookcase on each
side. She feels that this unit would be perfect for the long wall in her living room, and
she purchases it.
The new furniture is delivered.
CONSUMER ACQUIRES A MENTOR (OPINION LEADER)
Janet knows that her younger brother, who also lives and works in Manhattan, is pretty
much of an expert on anything and everything electronic, including TVs. Her brother
has been helping her for years with computer problems and whenever she moved he
was the person who connected her TV to the cable box and DVD, got her broadband
Internet service working properly with her wireless modem, and so on. So Janet asks
her brother which HDTV sets she should consider buying.
FEATURES AND BRAND OPTIONS ARE REVIEWED
While the wall unit can handle a 50-inch HDTV set, Janet decides that there is a limit to
how much money she is willing to spend, because she still plans to purchase a dining
room table and chairs in the very near future. She and her brother decide that a 40- to
WEEK
PRECIPITATING SITUATIONS/FACTORS
42-inch HDTV set would look very good on top of her unit, and that the picture quality
from a 720p set will be fine (rather than spending hundreds of dollars more for a 1080p
picture). With the advice of her brother, and after visiting a number of electronics stores
with him, Janet narrows down her choice to one Panasonic model, one Sony model, and
one Samsung model. While the Panasonic is a plasma set, the other two are LCD
HDTVs.
Janet revisits several electronics stores to again look at the Panasonic, Sony, and
Samsung models of interest. She also spends time on the CNET Web site reading about
these TVs. She concludes that all HDTVs look great to her. Her brother suggests that
28-29 since the Panasonic is available in the 42-inch size, while the others are only available
in a 40-inch size (she doesn’t want to spend the extra money for the next size up, which
is 46 inches), she might be better off purchasing the larger TV, since it got a very good
review on CNET and its price is comparable.
WEEK PRECIPITATING SITUATIONS/FACTORS ORDERING THE HDTV
Janet prices the Panasonic HDTV model she is interested in. Big electronics stores in
Manhattan (each is part of a national chain) are asking about $800 for the TV. She also
prices the set online. While several e-tailers are asking $770–$780, with free delivery,
the price on Buydig.com is $750 (again, with free delivery). Both her father and her
uncle have purchased HDTVs from Buydig.com, and both were very pleased with this
e-tailer. So Janet orders the set on a Sunday afternoon, using her laptop, and pays for
the purchase with a credit card.
30
Janet receives an e-mail Monday afternoon that her HDTV set has been shipped and
that the trucking company will call her the day before delivery to give her a time. The
e-mail also tells Janet that the truck driver will take off the top of the box for her so that
she can inspect the screen for cracks. Janet receives a call on Wednesday telling her to
expect delivery between 9:00 a.m. and 11:00 a.m. on Thursday. She lets her boss know
that she will be coming to work a little late Thursday morning. A 9:15 a.m. Thursday
morning the doorman in her building lets her know that a large package has arrived,
and the deliveryman wants to bring it up to her apartment. Janet tells the doorman to
please let him come into the building, and four minutes later the deliveryman and her
new TV are in her apartment. The deliveryman takes off the top of the carton, Janet
inspects the TV, which is in perfect condition, tips the deliveryman, and then heads off
to her office. While walking to her office she calls her brother to let him know that her
HDTV set has been delivered, and he promises to come over to her apartment after
work that evening to hook it up. By 7:00 p.m. Janet’s new HDTV set is sitting on top of
her TV unit, connected, and Janet is marveling at how great the picture is. She thanks
her brother and says to him “I’m buying, where would you like to eat dinner?”
Adopter Categories
The concept of adopter categories stems from a classification scheme that depicts where
consumers stand in relation to other consumers in terms of their time of purchase of a new
product or service (i.e., an innovation). Generally, five adopter categories are identified in the
diffusion literature: innovators (first 2.5 percent to adopt), early adopters (next 13.5 percent to
adopt), early majority (next 34 percent to adopt), late majority (next 34 percent to adopt), and
laggards (last 16 percent to adopt). If drawn, these five adopter categories take on the shape of a
normal or bell shape distribution, like the one appearing in statistics textbooks (see Figure 14.5
Part A).
The following is a concise description of the five adopter-categories in the context of the
diffusion of a new product—a mini netbook PC (i.e., a small, light, thin, and wireless personal
computer):
CONSUMER ADOPTER CATEGORY 1—INNOVATORS
are the earliest consumers to buy the mini netbook. The innovative consumers of hi-tech
products or services are often members of the “geek class” (see Chapter 10) who love
technology, perceive little risk in adopting new 441442products, and are even willing to pay
higher prices for newly-introduced products because they enjoy being the first to own such
gadgets. They are also very likely to provide information and advice to potential later adopters
(i.e., to be opinion leaders in the realm of hi-tech products).
CONSUMER ADOPTER CATEGORY 2—EARLY
ADOPTERS
are consumers who are likely to buy the mini netbook within a short period of time following its
introduction (but not as early as the innovators). Within their local neighborhoods or circles of
friends, early adopters are also quite likely to provide information and assistance to others who
are evaluating a new product like a mini netbook, and thus they are also likely to be opinion
leaders.
CONSUMER ADOPTER CATEGORY 3—EARLY
MAJORITY
are members of the first half of the “mass market” of consumers who would purchase the now
somewhat-established mini net-book. When the product was first introduced, they perceived
purchasing it as risky because it was new. After a relatively small but not insignificant number of
consumers purchased the product (and probably after the price of the product has gone down),
these consumers concluded that purchasing the product is wise.
CONSUMER ADOPTER CATEGORY 4—LATE
MAJORITY
consumers are the second half of the “mass market” of consumers who purchase the now even
older (possibly at or heading toward “maturity”) mini netbook. The members of the “late
majority” category of adopters have taken a relatively long time to evaluate whether or not they
would benefit by owning a mini netbook and, most likely, perceive more risk in all consumption
situations than members of the three preceding adopter groups. Together, the early and late
majority adopter categories constitute the large and maturing market for any innovation.
CONSUMER ADOPTER CATEGORY 5—LAGGARDS
are the very last group of consumers to purchase the mini netbook. When they get around to
purchasing the product, the innovators and early adopters are already probably switching to more
advanced innovations in this product category. Laggards are generally high risk-perceivers and
the last ones to recognize the value of innovative products.
Clearly, in the case of most products, not all members of a given society are likely to adopt an
innovation. In some cases a very large percentage of consumers purchase a product innovation
within a social system and; in other cases a very small percentage of consumers will purchase. In
either case, only those who adopted a product or service are included in one of the five
categories. The remaining members of a particular society or consumer social system, that is,
those who are not accounted for in the five categories, are called “non-adopters” or “nonpurchasers.”
As far as the exact percentage of consumers belonging to each of the five adopter-categories,
marketing practitioners and researchers have not used the first 2.5 percent limit to classify
consumers as “innovators.” Instead, they have generally defined “innovators” as approximately
the first 10 percent of the total purchasers or adopters of a particular products or services. This
figure stems from considering real world historical data collected from various industries where
product innovations are common. As an example, following the same practice, marketers might
estimate the percentages of consumers belonging to the remaining four adopter categories as
follows: early adopters as 15 percent, early majority as 30 percent, late majority as 30 percent,
and laggards as 15 percent. Figure 14.5 Part B depicts the distribution of adopter categories that
are formed from the above assumed percentages for each of the five adopter categories. In
reality, while there are not fixed rules for defining the size of a product’s or service’s diffusion
curve, there are patterns for various industries that serve as guidelines.
All Nonadopters May Not Be Equal
A recent research study that explored the diffusion of Internet banking services found that not
only did differences exist between adopters and nonadopters, but there were also differences
between “prospective adopters” (consumers likely to adopt Internet banking within the next 12
months) and “persistent nonadopters.”21 In this study, prospective adopters were most often
heavier users of ATMs, phone banking, and used computers for work. In contrast, persistent
442443nonadopters were generally less familiar with technology. There was also little difference
between current adopters and prospective adopters with regard to such adoption factors as
compatibility and experience with technology. Overall, the differences between adopters and
prospective adopters were perceptual, while the differences between prospective adopters and
persistent nonadopters reflected varying degrees of technological sophistication (of the lack if it).
Perhaps the most important lesson to be learned from this research is that demographic
characteristics alone are generally not an effective way to profile adopters versus nonadopters.
Purchase answer to see full
attachment