MKTG 102:

Consumer Behaviour

PLEASE DISPLAY NAME TAGS

TODAY AND EVERYDAY!
 First week’s agenda
• Course introduction
• Introduction to consumer behavior/research
– Beginning with a refresher “what is marketing?”

• Describe how consumer behavior is related to

marketing
 For all course related enquiries
• Please ask me directly
– In person, in class
– Or on the forum created on eLearn
• Please create appropriately detailed “subject” titles for
your posts on the forum and also check first to see if
someone else has already asked the same question
before
• Please avoid emailing questions to me – asking on the
forum is far more efficient and fair to everyone
– Office hour by appointment
 Course Materials
• Textbook: Consumer Behavior 7th Edition, Wayne D. Hoyer | Deborah J
MacInnis | Rik Pieters, Cengage Learning.

– It is recommended that you buy the text.

– Materials covered in class are not always from the recommended text, and all
materials from the text will not be covered in class. However, note that all
quizzes, assignments and exams will be based only on the materials covered
in class.
 Course Assessment
• Components
– Class participation: 10%
– Individual assignment (article critique): 10%
– 2 non-cumulative quizzes: 25%
• 15% for better quiz, 10% for worse
– Group project: 25%
• 10% presentation + 15% report
• Possible individual variations based on peer evaluation
– Final exam 30%
 Course Participation 10%
• To facilitate interaction and discussion,
there will be several in-class
cases/exercises.
– About 10-15 minute group break-out where
you will sit with 3 or 4 of your classmates and
discuss a consumer behavior
problem/vignette.
– In-class cases/exercises may require a 1-page
summary analysis.
 Individual Assignment 10%
Summary, Critique, and Application of
an Academic Research Paper in Consumer Behavior
 Bellezza, Silvia, Francesca Gino, and Anat Keinan (2014), “The Red Sneakers Effect: Inferring Status
and Competence from Signals of Nonconformity,” Journal of Consumer Research, 41 (1), 35–54.

 Henrik Hagtvedt and Adam Brasel (2016), “Cross-Modal Communication: Sound Frequency
Influences Consumer Responses to Color Lightness,” Journal of Marketing Research, 53 (4), 551–62

 Kwan, Canice. M.C., Xianchi Dai, and Robert S. Wyer Jr. (2017), “Contextual Influences on Message
Persuasion: The Effect of Empty Space,” Journal of Consumer Research, 44 (2), 448–64.

 Lembregts, Christophe and Mario Pandelaere (2019), “Falling Back on Numbers: When Preference
for Numerical Product Information Increases after a Personal Control Threat,” Journal of Marketing
Research, 56 (1), 104–22.

 Winterich, Karen Page, Rebecca Walker Reczek, and Julie R. Irwin (2017), “Keeping the Memory but
Not the Possession: Memory Preservation Mitigates Identity Loss from Product Disposition,” Journal
of Marketing, 81 (5), 104–20.
 Group Project 25%
Diagnosing the Status of a Market Laggard

Report (15%) and presentation (10%) of a group

project that involves applying the theory learned in
this course due in the 13th week
 Course Content Outline
• Introduction
• Methods of consumer research
– Observation research
– Qualitative research
– Surveys
– Experiments
• The “Psychological Core”
– Motivation and Values
– Exposure, Attention, Perception, and Comprehension
– Memory and Knowledge
– Attitudes and Persuasion
 Course Content Outline
• The Process of Making Decision
– Problem Recognition and Information Search
– Decision Making

• Social Influences on Consumer Behavior

• Marketing, Ethics, and Social Responsibility
What is Marketing?
 What is marketing?
A Pre-MKTG 101 perspective

• Marketing is about making people buy things

(that they do not need).
• “The Art of Selling Products”  Sales?
• Advertising is the same as marketing.
• Marketing activities add little value to the product.
– Marketing activities lead to higher prices.
• Marketing is propaganda in favor of a materialistic
life.
Marketing: Post-101 perspective

An organizational function and a set of processes for creating,

capturing, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit the
organization and its stakeholders
 Marketing is
About meeting needs, not just making and selling products.

About creating value, not just charging prices above costs.

About maintaining relationships, not just winning transactions.

About long term profits, not short term sales.

Consumer Behavior
the science behind marketing
 Market Outcomes
BLACK BOX OF
Marketing Variables CONSUMER Market share,
BEHAVIOR Sales,
Profits, etc.

Marketing Mix; 4Ps

• Product
• Price Memory and
• Promotion Motivation knowledge
• Place and Value Exposure, attention,
perception, and
comprehension Situation
Attitudes Social
Decision- influences
making Culture

Inside the Black Box Outside the Black Box

 U.S. Auto Sales Brand Rankings – June 2019 YTD
230,000
210,000
190,000
170,000
150,000
130,000
110,000
90,000
70,000
50,000
Ford Toyota Chevrolet* Honda Nissan Jeep Ram Hyundai Subaru Kia

2018 Sales in SG
16,000

12,000

8,000

4,000

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“The best way to shift perceptions is
by people seeing and physically
touching the car, and to see how far
we’ve come in terms of quality and
design.”

David Hilbert, Kia Marketing Director

 Consumer Behavior
• the science behind marketing
– explaining, rather than just predicting consumer
behavior
– based on a number of different basic disciplines
• psychology, sociology, economics, statistics,
anthropology
 Consumer Behavior
• Most businesspeople develop rules of thumb
or some instincts about marketing practices
– They have little time or motivation to
systematically evaluate these rules
– Do “whatever works” or “whatever has worked”
» the “why” and “how” don’t matter that much to them
– Most of these rules are context specific to a
certain consumer market, and time period and
location
• Academics are concerned with the
“timeless” and context-free questions of
“why” and “how”
CB Theory explains what works
and how it works
• How do you evaluate the success of a
marketing effort?
– What marketing metrics/measures can be used other
than sales?
• How can a manager affect these
metrics?
– What is the process through which these managerial
actions leads to changes in the metrics?
 Some examples of the
academic approach to CB
• For each these print ads …
– Think about what is special about the ad, relative
to other ads in the same product category, or even
the average ad in other product categories
• In terms of impact on consumer behaviour
 BTS recently signed on as the official endorsement models of
sportswear brand FILA!
 A commercial marketing research
study of advertising
• Is this advertisement successful
– in generating the expected response
• Exposure
• Trial
• Purchase
– in the specific target market in the specified
geographical location at a specific time period
 An Academic/CB study of advertising

• What is the process through which advertising leads to

sales?  Focus on WHY!

• What are the other causal effects of advertising?

– knowledge
– memory
– attitudes
– resistance to efforts of competitors
 Academic v/s Commercial Research

• Explanation vs. Description/Prediction

• Aimed at uncovering broad underlying
generalizable principles vs. Focus on
specific consumer, product and location
• Levels of abstraction – high versus low
 Definition of
Consumer Behavior
• Reflects totality of consumers’ decisions with
respect to the acquisition, consumption, and
disposition of goods, services, time, and ideas
by (human) decision-making units (over time).
What is Consumer Behavior?
(Exhibit 1.1 from Hoyer and MacInnis text)
Why Study Consumer Behavior?
• Marketing managers
– Need consumer behavior insights to understand
what their customers value; only then they can
develop, communicate, and deliver appropriate
goods and services
– To improve business performance
Why Study Consumer Behavior?
• Public Policy Makers and
Regulators
– Understanding consumer behavior is critical in
developing policies and rules to protect
consumers from unfair, unsafe, or inappropriate
marketing practices.
Why Study Consumer Behavior?
• Consumers and Society
– Understanding consumer behavior enables
marketers and other organizations to provide
tools for more informed decision-making.