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 Consumer’s 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 DON’T 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
 McDonald’s 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
 McDonald’s 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 Levi’s brand name stands for which
product??

 Yet, in the 1980’s, Levi’s introduced a very

different kind of pant – called “Dockers”
 Loose, semi-formal

 Why?
That’s all for today!!
 See you next Tuesday…

 Kung Hei Fat Choi!!