11© 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/evans

Consumer Behaviour, Second Edition

Martin Evans, Ahmad Jamal Gordon FoxallCardiff Business School

ISBN:978-0-470-99465-8

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The Book Consists of 13 chapters

Chapter1 : Consumer Motives & Values Chapters 2-3-4-9-10: Consumer Response

to Marketing Actions & purchase and post-purchase behaviour

Chapter 5: Consumer Demographics Chapter 6: Consumer Psychographics Chapter 7: Social Group Influences Chapter 8: Cultural Influences Chapter 12: Consumer Misbehaviour

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Common thread in our discussions

The consumer Consumer Response to Marketing

Actions: Hierarchical Approach

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Hoyer & MacInnis, 2008

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Sequential Model of Marketing

Post purchase

Action

Attitude

Learning

Perception

Attention

Exposure

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Why Study Consumer Behaviour?

2–7

The New Coke…

2–8

New Coke: the Launch

• New Coke was introduced on April 23, 1985 with the slogan "The Best Just Got Better".

• Production of the original formulation ended that same week.

• The new coke was a rapid reaction to competitive pressures.

• Consumer data provided mixed results • When Pepsi heard that the Coca-Cola company was

changing its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to declare the victory.

2–9

New Coke: the disaster

• 1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought back in addition to the new one. This was greatly due to dropping market share and consumer protest.

• The market share fell from a high of 15 percent to a low of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the market.

• The Coca-Cola company's eight hundred number received eighteen thousand calls of gratitude. One caller said they felt like a lost friend had returned home.

• The comeback of old Coke drove stock prices to the highest level in twelve years. This was said to be the only way to regain the lead on the cola wars.

2–10

What went Wrong?

2–11

Lessons Learned

• Each marketing move requires a strategy• Marketing Strategy starts with an understanding

of customer needs and the environment• Consumer Behaviour can be complicated based

on cognitive and emotional elements• A product rollout should be done incrementally

and supported by the other Ps• Do not forget about the power of the brand:

consumer emotions and loyalty.