634 Part 7: Comprehensive Cases with Computerized Databases
Name Description
SD1 Low Quality–High Quality
SD2 Dislike–Like
SD3 Unfavorable–Favorable
SD4 Negative–Positive
SD5 Easy–Difficult
SD6 Restful–Tiring
SD7 Comfortable–Uncomfortable
SD8 Calm–Tense
The experiment was conducted in a university union. Subjects were
recruited from the food court area. RESERV employees approached
potential subjects and requested their participation in a study that
examined how customers really bought things. Subjects would each
receive vouchers that could be exchanged for merchandise in return
for their participation. Each potential subject was informed that the
participation could take between 20 and 40 minutes to complete.
Upon agreeing to participate, subjects were escorted to a waiting
area where they were provided with further instructions and min-
gled with other participants before entering a small room that was
set up to resemble an actual retail clothing counter.
Each subject was told to play the role of a customer who had
just purchased some dress slacks and a shirt. The employee was to
complete the transaction. Once the subject entered the mock retail
environment, a research assistant who was playing the role of the
retail employee entered the room. As a retail sales associate, one
important role was to suggest add-on sales. Several dozen accessory
items ranging from socks and handkerchiefs to small jewelry items
were displayed at the counter.
As a result of this experimental procedure, each subject was
randomly assigned to one of four conditions, each corresponding to
a unique combination of the experimental variables described above.
In other words, the employee was either:
1. Dressed professionally and used a soft close (i.e., “Perhaps you
would like to see some additional accessories”) in trying to sell
merchandise beyond the slacks and shirt.
2. Dressed unprofessionally and used a soft close.
3. Dressed professionally and used a hard close (i.e., “You really
need to match this up with some coordinated accessories which
happen to be on sale today only”) in trying to sell merchandise
beyond the slacks and shirt.
4. Dressed unprofessionally and used a hard close.
Thus, RESERV wishes to use this information to explain how
employee appearance encourages shoppers to continue shopping
(TIME) and spend money (SPEND). Rather than simply ask pur-
chase intentions, researchers gave each subject $25 (in one-dollar bills)
which they were allowed to spend on accessories. This allowed each
subject to participate in an actual transaction. In addition, the experi-
ment did not provide explicit instructions on what was to be done
with the money that was left over. Once the simulated shopping trip
was complete, subjects were taken to another small room where they
answered a questionnaire containing the semantic differential scales
and demographic information which they completed while alone
and at their own pace. Because the instructions did not specifically
tell subjects what to do with the money they possessed following the
experiment, this allowed the researchers to operationalize a behavioral
dependent variable (KEEP) that simulated questionable behavior based
on the implied assumption that the money was to be either handed to
the research assistant when the shopping trip was complete or turned
in along with the questionnaire. In other words, subjects who kept
money were considered as behaving less ethically than those who left
the money behind or turned it in to a member of the research team.
1. Develop at least three hypotheses that correspond to the
research questions.
2. Test the hypotheses using an appropriate statistical approach.
3. Suppose the researcher is curious about how the feelings cap-
tured with the semantic differentials influence the dependent
variables SPEND and KEEP. Conduct an analysis to explore this
possibility. Are any problems present in testing this?
4. Is there a role for factor analysis in any of this analysis?
5. Critique the experiment from the viewpoint of internal and
external validity.
6. What conclusions would be justified by management regarding
their employee appearance policy?
Case 3 Values and the Automobile Market
(Download the data sets for this case from www.cengage.com/
marketing/zikmund or request them from your instructor.) In the
last decade, the luxury car segment became one of the most com-
petitive in the automobile market. Many American consumers who
purchase luxury cars prefer imports from Germany and Japan.
A marketing vice president with General Motors once com-
mented, “Import-committed buyers have been frustrating to us.”
This type of thinking has led industry analysts to argue that to suc-
cessfully compete in the luxury car segment, U.S. carmakers need to
develop a better understanding of consumers so that they can better
target market segments and better position their products via more
effective advertising. Insight into the foreign-domestic luxury car
choice may result from examining owners’ personal values in addi-
tion to their evaluations of car attributes, because luxury cars, like
many other conspicuously consumed luxury products, may be pur-
chased mainly for value-expressive reasons.
Industry analysts believe it would be important to assess whether
personal values of consumers could be used to explain ownership of
American, German, and Japanese luxury cars. Further, they believe
they should also assess whether knowledge of owners’ personal val-
ues provides any additional information useful in explaining owner-
ship of American, German, and Japanese luxury cars beyond that
obtained from their evaluations of the cars’ attributes.
Personal values are likely to provide insights into reasons for
ownership of luxury cars for at least two reasons. First, Americans
have always had very personal relationships with their cars and have
used them as symbols of their self-concepts. For instance, people who
value a sense of accomplishment are quite likely to desire a luxury car
that they feel is an appropriate symbol of their achievement, whereas
people who value fun, enjoyment, and excitement are likely to desire a
luxury car that they perceive as fun and exciting to drive. An adver-
tiser trying to persuade the former segment to purchase a luxury car
should position the car as a status symbol that will help its owners
demonstrate their accomplishments to others. Similarly, an advertiser
trying to persuade the latter segment to purchase a luxury car should
position the car as a fun and exciting car to drive. In other words,
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Comprehensive Cases 635
effective advertising shows consumers how purchasing a given prod-
uct will help them achieve their valued state, because brands tied
to values will be perceived more favorably than brands that deliver
more mundane benefits.
Second, when a market is overcrowded with competing brands
offering very similar options—as is the case with the luxury car
market—consumers are quite likely to choose between brands on
the basis of value-expressive considerations.
METHOD
Data were collected via a mail survey sent to 498 consumers chosen
at random from a list obtained from a syndicated research company
located in an affluent county in a southern state. The list contained
names of people who had purchased either an American luxury car
(Cadillac or Lincoln Mercury), a German luxury car (Mercedes or
BMW), or a Japanese luxury car (Infiniti or Lexus) within the last
year. A cover letter explained that the survey was part of an aca-
demic research project. People were asked to return the question-
naires anonymously to a university address. (A postage-paid envelope
was provided with each survey.) A notice was included that stated
that the project was approved by the University Internal Review
Board and emphasized the fact that participation was voluntary.
Beyond an appeal to help the researchers, respondents were not
offered any other incentive to complete the surveys. Of the 498
questionnaires originally sent, 17 were returned by the post office
as undeliverable. One hundred fifty-five completed surveys were
received, for a response rate of 32.2 percent.
The Survey Instrument
The survey included questions on (1) various issues that people
consider when purchasing new cars, (2) importance of car attributes,
(3) importance of different values, and (4) demographics (sex, age,
education, and family income). Questions relating to the issues that
people consider when purchasing new cars were developed through
initial interviews with consumers and were measured with a 7-point
Likert scale with end anchors of “strongly agree” and “strongly dis-
agree.” (See Case Exhibit 3.1.) A list of 12 car attributes was devel-
oped from the initial interviews with consumers and by consulting
Consumer Reports. (See Case Exhibit 3.2.) The importance of each
attribute was measured with a 7-point numerical scale with end
points labeled “very important” and “very unimportant.” The List
of Values (LOV) scale in Case Exhibit 3.3 was used to measure the
importance of values. Respondents were asked to rate each of the
eight values—we combined fun, enjoyment, and excitement into
one value—on a 7-point numerical scale with end points labeled
“very important” and “very unimportant.”
Having a luxury car is a major part of my fun and excitement.a (Issue 1)
Owning a luxury car is a part of “being good to myself.” (Issue 2)
When I was able to buy my first luxury car, I felt a sense of
accomplishment. (Issue 3)
I enjoy giving my friends advice about luxury cars. (Issue 4)
Getting a good deal when I buy a luxury car makes me feel better
about myself. (Issue 5)
I seek novelty and I am willing to try innovations in cars. (Issue 6)
I tend to buy the same brand of the car several times in a row. (Issue 7)
I tend to buy from the same dealer several times in a row. (Issue 8)
I usually use sources of information such as Consumer Reports in
deciding on a car. (Issue 9)
I usually visit three or more dealerships before I buy a car. (Issue 10)
I would read a brochure or watch a video about defensive driving.
(Issue 11)
When I buy a new luxury car, my family’s opinion is very important to
me. (Issue 12)
My family usually accompanies me when I am shopping for a new
luxury car. (Issue 13)
I usually rely upon ads and salespersons for information on cars. (Issue 14)
I usually rely upon friends and acquaintances for information on cars.
(Issue 15)
When I shop for a car, it is important that the car dealer make me feel
at ease. (Issue 16)
Most of my friends drive luxury import cars. (Issue 17)
Most of my friends drive luxury domestic cars. (Issue 18)
I think celebrity endorsers in ads influence people’s choices of luxury
cars. (Issue 19)
I would not buy a luxury car if I felt that my debt level were higher
than usual. (Issue 20)
CASE EXHIBIT 3.1 Issues That Consumers Consider when Buying Luxury Automobiles
a Note: Subjects’ responses were measured with 1 as “strongly agree” and 7 as “strongly disagree.”
Attribute Code Attribute Code
Comfort Comfort Low maintenance cost Lomc
Safety Safety Reliability Rely
Power Power Warranty Warrant
Speed Speed Nonpolluting Nonpol
Styling Styling High gas mileage Gasmle
Durability Durabil Speed of repairs Repairs
CASE EXHIBIT 3.2 Car Attributes
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636 Part 7: Comprehensive Cases with Computerized Databases
The Sample
Of the 155 respondents in the sample, 58 (37.4 percent) owned an
American luxury car, 38 (24.5 percent) owned a European luxury
car, and 59 (38.1 percent) owned a Japanese luxury car. The majority
of the sample consisted of older consumers (85 percent were 35 years
of age or above), more educated consumers (64 percent were col-
lege graduates), and economically well-off consumers (87.2 percent
earned $65,000 or more).
CODING
Case Exhibit 3.4 lists the SPSS variable names and identifies codes
for these variables. (Note that this data set is also available in
Microsoft Excel.)
Value Code Value Code
Fun-enjoyment-excitement Fun Sense of accomplishment Accomp
Sense of belonging Belong Warm relationship Warm
Being well respected Respect Security Security
Self-fulfillment Selfful Self-respect Selfres
CASE EXHIBIT 3.3 List of Values
ID—Identification number
AGE (categories are 2 35 years and under, 3 36–45 yrs, 4 46–55 yrs, 5 56–65 yrs, 6 65 yrs)
SEX (1 male, 0 female)
EDUC—Education (1 less than high school, 2 high school grad, 3 some college, 4 college grad, 5 graduate degree)
INCOME (1 less than $35,000, 2 $35–50,000, 3 $50,001–65,000, 4 $65,001)
CAR—Type of luxury car (American car, European car, Japanese car)
ISSUES—The sequence of issues listed in Case Exhibit 4.1. (Strongly agree 1; strongly disagree 7)
ATTRIBUTES—The sequence of car attributes listed in Case Exhibit 4.2. (Very important to you 1; very unimportant to you 7)
VALUES—The sequence of values listed in Case Exhibit 4.3. (Very important 1; very unimportant 7)
CASE EXHIBIT 3.4 List of Variables and Computer Codes
ADDITIONAL INFORMATION
Several of the questions will require the use of a computerized data-
base. Your instructor will provide information about obtaining the
VALUES data set if the material is part of the case assignment.
Questions
1. Is the sampling method adequate? Is the attitude-measuring scale
sound? Explain.
2. Using the computerized database with a statistical software pack-
age, calculate the means of the three automotive groups for the
values variables. Do any of the values variables show significant
differences between American, Japanese, and European car
owners?
3. Are there any significant differences on importance of attributes?
4. Write a short statement interpreting the results of this research.
Advanced Questions
5. Are any of the value scale items highly correlated?
6. Should multivariate analysis be used to understand the data?
Case materials based on research by Ajay Sukhdial and Goutam Chakraborty, Oklahoma State University.
Case 4 TABH, INC., Automotive Consulting
(Download the data sets for this case from www.cengage.com/
marketing/zikmund or request them from your instructor.) TABH
Consulting specializes in research for automobile dealers in the
United States, Canada, Mexico, and Europe. Although much of
their work is done on a custom basis with customers such as dealer-
ships and dealership networks selling all major makes of automobiles,
they also produce a monthly “white paper” that is sold via their
Web site. This off-the-shelf research is purchased by other research
firms and by companies within the auto industry itself. This month,
they would like to produce a white paper analyzing the viability of
college students attending schools located in small college towns as a
potentially underserved market segment.
TABH management assigns a junior analyst named Michel
Gonzalez to the project. Lacking time for a more comprehensive
study, Michel decides to contact the traffic department at Cal Poly
University in Pomona, California, and at University of Central Mis-
souri in Warrensburg, Missouri. Michel wishes to obtain data from
the students’ automobile parking registration records. Although both
schools are willing to provide anonymous data records for a limited
number of students, Cal Poly offers Michel a chance to visit during