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MCS 3600 Study Guide - Midterm Guide: Detroit Free Press, Likert Scale, Selective Perception

Marketing and Consumer Studies
Course Code
MCS 3600
Lefa Teng
Study Guide

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CIP Midterm Review
Case Example: Nonprofit Organizations Are Warm, For-Profit Organizations
Are Competent
Nonprofit organizations are seen as warm and for-profit organizations are
seen as competent
Stereotypes matter
Why do consumers perceive non-profit companies as less competent?
oHigher willingness to buy from a for-profit company…
Where are stereotypes derived and can perceptions be changed?
Important to understand that consumers may have a lower willingness to
pay Non-profit companies they’re satisfied because of warmth but it’s
not enough to boast their desires
Nonprofits need to target perceptions and gain trust and credibility
oHypothesis: when a firm is perceived to demonstrate both warmth
and competence, the consumer’s desire to buy will increase
o2 sample groups shown DOTCOM vs DOTORG associated traits
using Likert scale
DOTCOM was viewed more competent and DOTORG more
oCompetency and warmth related to willingness to purchase
How a boost in perceived competence of non-profit
organization affects consumer’s willingness to purchase
oLaptop bags sold by World of Good presented as for-profit or
non-profit and given a high and low credibility source (Wall Street
Journal and Detroit Free Press)
Then measured willingness to buy with Likert scale
oWith strong endorsement, nonprofits benefit because of an
increased willingness to buy due to a combination of warmth and
oHypothesis: Providing cues that increase perceptions of a non-
profit as competent will increase consumers‘ willingness to buy
from the non-profit firm
Potential Marketing Applications:
oFor-profits can try to have a “warmer” image using CSR
oNonprofits can market themselves as competent by stating facts,
quantifying accomplishments, etc.
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