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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 disposingof 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 inan 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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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 ofInformation/what goes on inside the ConsumersMind: Attention, Perception, Memory Attitudes

Environmental Influences (V) Family, Culture, etc.

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Next, some importantannouncements

(after that, importance of CB and

examples)

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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 thecourse 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

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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@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 LASTTOPIC FOR TODAY

Importance of studying Consumer

Behavior.

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Successful Marketing Tactics

are Based on KnowingConsumer Behavior.

Unsuccessful Tactics Are A Result

of Ignoring the Consumer

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Example 1

The Logo of Giordano is Much Biggerin mainland China than Hong Kong

Why??

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Example 2

Marketers sometimes sell productsbelow 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 isusually shown alone

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Example 5.Continued

In the US, the Marlboro cowboy isusually shown alone

In Japan, the cowboy is shown in agroup

Why?

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Example 6

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

Why?

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Example 7

McDonalds in India: no beef in theirhamburgers!

Why?

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Example 8

During periods when consumers are notshopping 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? Whichdoes it not sponsor?

Why?

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Example 10

Commercials for San Miguel Beer (O&M)

Do you think these ads are good orbad?

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Example 11

The Levis brand name stands for whichproduct??

Yet, in the 1980s, Levis introduced a verydifferent kind of pantcalled Dockers

Loose, semi-formal

Why?

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Thats all for today!!

See you next Tuesday

Kung Hei Fat Choi!!

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