Introduction to Consumer Behavior

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Introduction to Consumer Behavior

• What is Consumer Behavior (CB)?
• Definition
• Model of CB Course Layout
• Why is CB important?
• Illustrative examples

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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
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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!

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Topic List Introduction

• What is Consumer Behavior (CB)?
• Definition
• Model of CB Course Layout
• Why is CB important?

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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.

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Next, some important announcements

• (after that, importance of CB and examples)

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Introductory Comments forMark242 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_at_ust.hk) 2358-7711
• But requests such as swapping sections, jumping
  waiting list etc. cannot be accommodated

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Announcements

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

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Announcements

• GROUP LIST NEEDED BY FEB 19th
• name student id email
• Send by email mkjaisen_at_ust.hk
• FEB 12th Individual details (3 x 5 card) photo
  name id email

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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

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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

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COMING BACK TO LAST TOPIC FOR TODAY

• Importance of studying Consumer Behavior.

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Successful Marketing Tactics are Based on Knowing
Consumer Behavior.

• Unsuccessful Tactics Are A Result of Ignoring the
  Consumer

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Some Examples of Marketing Tactics.
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Example 1

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

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Example 2

• Marketers sometimes sell products below cost.
  This guarantees a loss
• McDonalds Ice-cream for 1 dollar.
• Why do they do this?

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Example 3

• Marketers often price an item as x.99
• A 3-pack of soap 10.99
• Why not 11?

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Example 4

• Dim Lighting in upscale restaurants
• Why?

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Example 5.

• In the US, the Marlboro cowboy is usually shown
  alone

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Example 5.Continued

• In the US, the Marlboro cowboy is usually shown
  alone
• In Japan, the cowboy is shown in a group
• Why?

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Example 6

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

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Example 7

• McDonalds in India no beef in their
  hamburgers!
• Why?

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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?

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Example 9

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

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Example 10

• Commercials for San Miguel Beer (OM)
• Do you think these ads are good or bad?

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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?

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Thats all for today!!

• See you next Tuesday
• Kung Hei Fat Choi!!