Introduction to Consumer Behavior

What is Consumer Behavior (CB)?

Definition

Model of CB + Course Layout

Why is CB important?

Illustrative examples

What is Consumer Behavior?

Those activities directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions

Note that definition says

CB = Entire Decision process

Not just how you choose a brand What happens in your mind before you buy:

What makes you like the brand? (advertising, friends opinions, family influence) What makes you remember brand information you see in an ad (memory issues?)

Also: what happens after you buy

Are you satisfied/dissatisfied?

So, a large part of CB = mind of consumer!

Topic List: Introduction

What is Consumer Behavior (CB)?

Definition

Model of CB + Course Layout

Why is CB important?

Course Layout

Introduction (I) Types of Decision Making

Complex Decision Making (II) Habit and Low Involvement Decision Making (III)

Individual Consumer/Information Processing (IV)

How the Consumer Makes Sense of Information/what goes on inside the Consumers Mind:

Attention, Perception, Memory Attitudes

Environmental Influences (V)

Family, Culture, etc.

Next, some important announcements

(after that, importance of CB and examples)

Introductory Comments for Mark242: Consumer Behavior

Announcement: Class is overbooked!

No more quotas can be added!!

If you have special requests (e.g., double major; need the course to graduate), please DONT contact me
Contact: Roxanne Lau (mkrox@ust.hk); 2358-7711

But requests such as swapping sections, jumping waiting list etc. cannot be accommodated

Announcements

Readings for Next Class: Involvement (Assael: pg. 65-75) Problem Recognition/Need Arousal Handout (please read!)

Announcements

GROUP LIST NEEDED BY FEB 19th:

name; student id; email Send by email: mkjaisen@ust.hk

FEB 12th: Individual details (3 x 5 card) photo; name; id; email

Quiz Dates: Tentative

Q1: Feb 26 Q2: March 18th (7-8pm) OR March 19th 6-7pm

Holidays start on March 20th

Q3: April 10 Q4: May 29 Time: 7-8 pm

Any clashes (e.g., class during the same time)? Note: having another quiz on the same day will not count as a clash

Research Participation (2%)

Required by department for all Marketing core courses

Participation in 2 expts of 1 hour each

Complete instructions are available on the course webpage

COMING BACK TO LAST TOPIC FOR TODAY

Importance of studying Consumer Behavior.

Successful Marketing Tactics are Based on Knowing Consumer Behavior.

Unsuccessful Tactics Are A Result of Ignoring the Consumer

Some Examples of Marketing Tactics.

Example 1

The Logo of Giordano is Much Bigger in mainland China than Hong Kong

Why??

Example 2

Marketers sometimes sell products below cost. This guarantees a loss

McDonalds Ice-cream for 1 dollar.

Why do they do this?

Example 3

Marketers often price an item as x.99

A 3-pack of soap: 10.99

Why not 11?

Example 4

Dim Lighting in upscale restaurants Why?

Example 5.

In the US, the Marlboro cowboy is usually shown alone

Example 5.Continued

In the US, the Marlboro cowboy is usually shown alone

In Japan, the cowboy is shown in a group Why?

Example 6

Coca-Cola was a big failure when it was first introduced in mainland China

Why?

Example 7

McDonalds in India: no beef in their hamburgers!

Why?

Example 8

During periods when consumers are not shopping much (e.g., bad economy), store managers often play slow music within stores

During busy periods (e.g., holiday season), fast music is played Why?

Example 9

Mercedes-Benz sponsors certain sports Which types does it sponsor? Which does it not sponsor? Why?

Example 10

Commercials for San Miguel Beer (O&M) Do you think these ads are good or bad?

Example 11

The Levis brand name stands for which product?? Yet, in the 1980s, Levis introduced a very different kind of pant called Dockers

Loose, semi-formal

Why?

Thats all for today!!

See you next Tuesday

Kung Hei Fat Choi!!