Introduction BA Fall 2000

Syllabus n Work experience forms, NDA n Materials n Team memberships, team “case” topic selections n 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 n Bulletin board, web site n Honor Code

Why is understanding consumer behavior important? n Knowing the customer, being customer-driven n New technologies (e.g., Internet) – One-to-one more possible - issues – Privacy issues – Understanding implications of broadband, wireless n Understanding and serving growing diversity – Global – Subcultures

What types of decisions can be helped by consumer behavior knowledge? n Segmentation and diversity, positioning, mix n Previous projects – Close-Up – Taurus – Kraft Handi-Snacks n Knowing the customer and who’s in charge n Cultural issues (HMOs example) n Policy – Ethical issues – Information presentation (e.g., warning labels for cigarettes - Canadian labels, thetruth.com ads)

What is consumer behavior like? n Consumer behavior is often constructive, contingent n There is no single model; each case requires individual analysis - products and attributes differ in their properties n Different types of decisions – Processing limitations – Complex vs. simple n 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