Introduction

BA 362 - Fall 2000

Syllabus

Work experience forms, NDA Materials Team memberships, team “case” topic selections Assignments

– Discussion questions (30% of grade)– “Cases” based upon experiences - sample on web

site (25% of grade)– Final project with Online Insight (45% of grade)– Grading - distribution

Bulletin board, web site Honor Code

Why is understanding consumer behavior important?

Knowing the customer, being customer-driven New technologies (e.g., Internet)

– One-to-one more possible - issues– Privacy issues– Understanding implications of broadband, wireless

Understanding and serving growing diversity– Global– Subcultures

What types of decisions can be helped by consumer behavior knowledge?

Segmentation and diversity, positioning, mix Previous projects

– Close-Up– Taurus– Kraft Handi-Snacks

Knowing the customer and who’s in charge Cultural issues (HMOs example) Policy

– Ethical issues – Information presentation (e.g., warning labels for

cigarettes - Canadian labels, thetruth.com ads)

What is consumer behavior like?

Consumer behavior is often constructive, contingent There is no single model; each case requires

individual analysis - products and attributes differ in their properties

Different types of decisions– Processing limitations– Complex vs. simple

Components– Individual: Motivation and Personality, Segmentation,

Attention and Perception, Memory and Decision Making, Attitudes and Persuasion, Learning

– More macro factors: Interpersonal Influence, Social Class and Culture