MKTG 753 Chapter 8 Homework Due: Monday, September 20, beginning of class • Please submit your homework via CANVAS but have it available for you to view during class

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MKTG 753 Chapter 8 Homework Due: Monday, September 20, beginning of class • Please submit your homework via CANVAS but have it available for you to view during class. • I will call on 3 to 4 people at the beginning of class to provide their answers, and we will discuss as a class. Questions: THEORY OF REASONED ACTION (THE EXPECTANCY-VALUE MODEL) You are the marketing manager of “Corner Wahoo Pizzeria,” or CWP, that produces deep-dish Chicago Style Pizza. You have recently noticed a significant drop in the number of people eating at CWP. You want to find out if this drop in clientele is related to current consumer attitudes, and use this information to draw up a marketing plan to combat it. The Expectancy-Value model (Fishbein and Ajzen 1975) suggests consumers’ attitude towards an object (or action), o, can be represented as: Attitudeo = ?biei where bi is the strength of the belief that object o possesses attribute i, and ei is the evaluation of this belief. After a lot of thought you come up with four attributes that are important to your consumers: taste, calories, fat content, and price. You commission a study to build an expectancy-value model of consumers’ attitudes. The study questions, and the typical response for each question, are listed below: 1. How likely is it that a CWP pizza tastes good? Very Unlikely 2. 0 1 2 3 Very Likely -3 -2 -1 0 1 2 3 Very Likely -3 -2 -1 0 1 2 3 Very Likely How likely is it that a CWP pizza is low priced? Very Unlikely 5. -1 How likely is it that a CWP pizza has high fat content? Very Unlikely 4. -2 How likely is it that a CWP pizza has low calories? Very Unlikely 3. -3 -3 -2 -1 0 1 2 3 Very Likely -1 0 1 2 3 Very Good If a pizza tastes good, that is… Very Bad -3 -2 1 6. If a pizza has low calories, that is … Very Bad 7. -2 -1 0 1 2 3 Very Good -1 0 1 2 3 Very Good -1 0 1 2 3 Very Good If a pizza has high fat content, that is … Very Bad 8. -3 -3 -2 If a pizza is low priced, that is … Very Bad -3 -2 Question 1 Use the typical responses above to calculate consumers’ current attitude towards CWP Pizza. Attitudeo = ?biei Further study of the Theory of Reasoned Action (TORA) reveals that attitude toward the product is only one of two components that affect behavior, the other one being subjective norms (SN o). Subjective Normo = ?NBkMCk where NBk is the normative belief of person k, and MCk is the motivation to comply with person k. You then study a group of target consumers, who are split into three categories: opinion leaders (OLs), group members (GMs), and trend followers (TFs). The questions posed, and the typical response for each question, are listed below: 9. What do the [opinion leaders] think about eating at CWP? Not eat at CWP -3 -2 -1 0 1 2 3 Eat at CWP 2 3 Eat at CWP 2 3 Eat at CWP 3 Care deeply 3 Care deeply 3 Care deeply 10. What do the [group members] think about eating at CWP? Not eat at CWP -3 -2 -1 0 1 11. What do the [trend followers] think about eating at CWP? Not eat at CWP -3 -2 -1 0 1 12. How much do you care about what the [opinion leaders] think? Don’t care at all -3 -2 -1 0 1 2 13. How much do you care about what the [group members] think? Don’t care at all -3 -2 -1 0 1 2 14. How much do you care about what the [trend followers] think? Don’t care at all -3 -2 -1 0 1 2 2 Question 2 Calculate the Subjective Norm towards eating at CWP. Subjective Normo = ?NBkMCk Question 3 What appears to be the source of CWP’s problem? 3