Consumer Behavior Course Syllabus

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TRƯỜNG ĐẠI HỌC LUẬT THÀNH PHỐ HỒ CHÍ MINH

KHOA QUẢN TRỊ


Bộ môn: MARKETING

TÀI LIỆU HƯỚNG DẪN HỌC TẬP


CÁC LỚP CHẤT LƯỢNG CAO

Môn học: Consumer Behavior


Năm học : 2024-2025

1
TRƯỜNG ĐẠI HỌC LUẬT THÀNH PHỐ HỒ CHÍ MINH
KHOA QUẢN TRỊ
Bộ môn: MARKETING

ĐỀ CƯƠNG MÔN HỌC


Môn: Consumer Behavior
Chương trình đào tạo dành cho các lớp Chất lượng cao

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HO CHI MINH CITY UNIVERSITY OF LAW
Faculty: management
Division: Marketing

Course Name: Consumer Behavior


Course Code:
Course type:  Credit points: 2
1. General knowledge  Contact hours: 30
2. Major knowledge
 Lecturing hours: 24
a) Foundation knowledge
 Tutorial/Experiential hours: 6
b) Industry-specific knowledge
Compulsory course
Elective course
c) Supplementary knowledge
d) Minor thesis
Program: Full-time Bachelor of Management and Law,
Full-time Bachelor of Management (advanced program,
conducted in English)
Pre-requisite courses: Fundamental of Marketing
Other requirements: N/a
Language of teaching: English

1. Description of course content (short presentation):


Based on psychological knowledge and behavioral economics, the course provides the
in-depth definition of consumer behavior, and the decision-making process in
purchasing products. During the course, students can research the data of individual
decision making as well as group behavior and understand the correlation between
needs, wants, demands, and interests, thus capturing the psychological mechanisms
lead to the decision of branded products. The course also provides information related
to pressure groups, herd behavior, and social learning theories to reduce the effect of
reference groups in decision making, hence designing effective communication
strategies. The focus of the course is learning about approach and techniques in
different aspects of consumer behavior,

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2. Objectives of the course
After studying this course, students will be able to:
- Knowledge:

CLO1: Understanding the definition, importance, and nature of consumer behavior


CLO2: Identify the factors that affect the consumer behavior
CLO3: Defining the consumer buying process and factors that impact the decision
making
CLO4: understanding the attention technique and impact in changing the behavior in
certain scenarios
- Skills

CLO5: Performing the data collecting techniques


CLO6: Criticizing the data and evaluating the data
CLO7: Evaluating the differences of groups in behavior context
CLO8: Explaining the information and performing presentation
CLO9: Manage a sales team
- Attitude

CLO10: rightfulness in judging consumer buying behavior


CLO11: Be honesty, integrity and transparency with information provided
CLO12: Compliance with rules and regulations without manipulating

The matrix of the course learning outcome (CLO) and Programme Learning Outcome
(PLO)
Programme Learning Outcome-PLO
CLO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
CLO 1 2 2 2 2 2 2
CLO 2 2 2 2 2 2 3
CLO 3 2 2 2 2 2 3
CLO 4 2 2 2 2 2 4
CLO 5 3 3 3 3
CLO 6 6 5 5 5
CLO 7 6 5 4 5
CLO 8 6 6 6 6
CLO 9 6 6 6 6
CLO 10 3 3 3 3 3
CLO 11 3 3 3 3 3
CLO12 3 3 3 3 3

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1. Course outline

Duration
No. Content
Theoretical Discussion Total
1 Chapter 1: Introduction to 5 1 6
consumer behavior and consumer
research
2 Chapter 2: Internal influences on 6 0 6
consumer behavior
3 Chapter 3: External influences on 7 2 9
consumer behavior
4 Chapter 4: consumer decision 6 1 7
making
5 Chapter 5: Experiential 2 0 2
consumption
Total 30 lessons

2. Course content
Chapter 1: Introduction to Consumer Behaviour and Consumer Research
Chapter 1 consists of an introduction to consumer behavior in the marketplace and
methods for research.
1.1. Introduction to Consumer Behaviour
1.2. Consumers vs customers
1.3. Consumer Behaviour and Marketing
1.4. Creating satisfied customers
1.5. Nature of consumer behavior
1.6. Market research and product research
1.6.1. The Transformative Consumer Research Movement
1.6.2. Methods in consumer research
1.7. Consumer Behaviour and Customer Behavior

Course material
- Course slides

5
- Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
- Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education
Chapter 2: Internal Influences on Consumer Behaviour
Chapter 2 focuses on the consumer as an individual and internal factors affect them.
Topics: perception, learning and memory, motivation and values, the self, personality
and lifestyles, attitudes, attitude change
2.1. Nature of perception and exposure
2.2. The psychological Core
2.2.1. Motivation and Affects
2.2.2. Consumer Perception & Emotion
2.2.3. Consumer Learning & Memory
2.2.4. Consumer Attitude Formation and Belief
2.3. The personal core
2.3.1. Demographic Factors
2.3.2. Self-Concept
2.3.3. Personality & Lifestyle
Course material
- Course slides
- Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
- Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education
Chapter 3: External Influences on Consumer Behaviour
Chapter 3 focuses on the consumer in a social context, including consumer behaviour
across cultures. Topics about external factors as family, subculture, society…
3.1. The Influences of Culture on Consumer Behaviour
3.1.1. Concepts and Characteristics of Culture

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3.1.2. The impact of culture on Consumer Behavior
3.2. Subcultures and Consumer Behaviour
3.3. Social Class and Consumer Behaviour
3.3.1. Types of social class of people
3.3.2. The impact of social class to Consumer Behavior
3.4. Reference Groups and Family
3.5. Consumer Influence and the Diffusion of Innovations
Course material
- Course slides
- Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
- Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education
Chapter 4: Consumer Decision Making
Chapter 4: consumer decision processes and decision theory - individual decision
making, buying, and disposing, group influence and opinion leadership, household
decision making,
4.1. Situation Influences
4.2. Consumer Decision Making Process Models
4.3. Consumer Buying Process
4.4. Post purchase Process
Course material
- Course slides
- Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
- Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education
Chapter 5: Experiential Consumption
Chapter 5: consumer behavior in reality, examples and application

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5.1. Consumerism and Ethics
5.2. Collectable experiences
Course material
- Course slides
- Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
- Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education
4. Lesson plan

Start Topic and module/chapter Assignments and Activities


date
1 Chapter 1: Introduction
to - [Student] read books and
PowerPoint at home.
Consumer Behaviour and
-[Students] Listen to the lecturer and
Consumer Research participate in the class
- [Teacher] uses the textbook,
1.1. Introduction to Consumer
projector, and case study to guide
Behaviour
1.2. Consumers vs customers
1.3. Consumer Behaviour and
Marketing

2 Review last lesson


- [Student] read the lesson at home.
1.4. Creating satisfied customers
1.5. Nature of consumer behavior -[Students] Listen to the lecturer and
participate in the class
1.6. Consumer Research - [Teacher] uses the textbook,
1.6.1. The Transformative projector, and case study to guide
Consumer Research Movement
1.6.2. Methods in consumer
research
1.7. Consumer Behaviour and

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Customer Behavior

3 Chapter 2: Internal Influences on


- [Student] read the lesson at home.
Consumer Behaviour
Classification of Internal Influences -[Students] Listen to the lecturer and
participate in the class
2.2. The psychological Core - [Teacher] uses the textbook,
2.2.1. Motivation and Affects projector, and case study to guide

2.2.2. Consumer Perception &


Emotion
2.2.3. Consumer Learning &
Memory
2.2.4. Consumer Attitude
Formation and Belief

4 Classification of Internal Influences


- [Student] read the lesson at home.
2.2. The psychological Core
-[Students] Listen to the lecturer and
2.2.1. Motivation and Affects
participate in the class
2.2.2. Consumer Perception & - [Teacher] uses the textbook,
Emotion projector, and case study to guide

2.2.3. Consumer Learning &


Memory
2.2.4. Consumer Attitude Formation
and Belief

5 The personal core


- [Student] read the lesson at home.
2.3.1. Demographic Factors
2.3.2. Self-Concept -[Students] Listen to the lecturer and
participate in the class
2.3.3. Personality & Lifestyle - [Teacher] uses the textbook,
projector, and case study to guide
6 Chapter 3: External Influences on
- [Student] read the lesson at home.
Consumer Behaviour
3.1. The Influences of Culture on -[Students] Listen to the lecturer and
participate in the class

9
Consumer Behaviour - [Teacher] uses the textbook,
projector, and case study to guide
3.1.1. Concepts and
Characteristics of Culture
3.1.2. The impact of culture
on Consumer Behavior

3.2. Subcultures and Consumer


Behaviour

7 3.1. The Influences of Culture on


- [Student] read the lesson at home.
Consumer Behaviour
3.1.1. Concepts and -[Students] Listen to the lecturer and
participate in the class
Characteristics of Culture - [Teacher] uses the textbook,
3.1.1. The impact of culture projector, and case study to guide
[teacher] conduct a scenario
on Consumer Behavior (retailing, services, telemarketing)
3.2. Subcultures and Consumer [Students] Provide opinions and
solutions
Behaviour

8 3.3. Social Class and Consumer


- [Student] read the lesson at home.
Behaviour
3.3.1. Types of social class of -[Students] Listen to the lecturer and
participate in the class
people - [Teacher] uses the textbook,
3.3.2. The impact of social projector, and case study to guide
class to Consumer Behavior
3.4. Reference Groups and Family
3.5. Consumer Influence and the
Diffusion of Innovations

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9 3.2. Social Class and Consumer
- [Student] read the lesson at home.
Behaviour
3.2.1. Types of social class of -[Students] Listen to the lecturer and
participate in the class
people - [Teacher] uses the textbook,
3.2.2. The impact of social projector, and case study to guide
class to Consumer Behavior
3.3. Reference Groups and Family
3.4. Consumer Influence and the
Diffusion of Innovations

How can culture affect your


behavior?

10 Chapter 4: Consumer Decision


- [Student] read the previous lesson
Making at home.
4.1. Situation Influences
-[Students] Listen to the lecturer and
4.2. Consumer Decision Making participate in the class
Process Models - [Teacher] uses the textbook,
projector, and case study to guide
4.3. Consumer Buying Process
4.4. Post purchase Process

11 Chapter 4: Consumer Decision


- [Student] read the lesson at home.
Making
2.1. Situation Influences -[Students] Listen to the lecturer and
participate in the class
2.2. Consumer Decision Making - [Teacher] uses the textbook,
Process Models projector, and case study to guide

2.3. Consumer Buying Process


2.4. Post purchase Process

12 Chapter 4: Consumer Decision


- [Student] read the lesson at home.

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Making
4.1. Situation Influences
4.2. Consumer Decision Making -[Students] Listen to the lecturer and
participate in the class
Process Models - [Teacher] uses the textbook,
4.3. Consumer Buying Process projector, and case study to guide

4.4. Post purchase Process

13 Chapter 5: Experiential
- [Student] read the lesson at home.
Consumption
5.1. Consumerism and Ethics -[Students] Listen to the lecturer and
participate in the class
5.2. Collectable experiences - [Teacher] uses the textbook,
projector, and case study to guide

14 Cases:
Luxury brand shopping during the - [Student] read the lesson at home.
holiday season
Using sex to sell – Carl Jr (source: -[Students] Listen to the lecturer and
Nielsen) participate in the class
- [Teacher] uses the textbook,
projector, and case study to guide
15 Brainstorming all Chapters

Revision

Mock Exam and model answer

4. Course references
a. Compulsory materials
 Pascale Quester, Simone Pettigrew, Sally Rao Hill, Foula Kopanidis, Del Hawkins
(2014), Consumer Behaviour: Implications for Marketing Strategy, (7th Ed.),
Australia: McGraw-Hill Irwin
 Leon Schiffman, Leslie Kanuk, and Mallika Das (2006), Consumer Behaviour,
Canadian (1st) edition, Pearson Education

12
b. Other materials
 Belk, Russell. W. (1988), “Possessions and the Extended Self,” Journal of
Consumer Research
 Fournier, Susan (1998), “Consumers and Their Brands: Developing Relationship
Theory in Consumer Research,” Journal of Consumer Research
 Goldstein, Noah, Robert B. Cialdini, and Vladas Griskevicius (2008). A Room with
a Viewpoint: Using Social Norms to Motivate Environmental Conservation in
Hotels. Journal of Consumer Research
 Richard Thaler and Cass Sunstein (2009), Nudge: Improving Decisions about
Health, Wealth, and Happiness
 Dan Ariely (2010), Predictably Irrational: The Hidden Forces That Shape Our
Decisions
5. Module assessment method:
5.1. Module assessment weighted
Mid term mark: 50%
Final mark: 50%

Item Ratios Weighted Due Date


based on
Type
the scale
of 10
Attendance 10%
Written based quiz Individual 20%
50%
Presentation Group work 20%
Student Assessment Group work 50%
Final Exam Written 100% 50% Based on the school
based schedule
Total 100%

5.2. Student assessment

You are an executive in a market research team and your company is about to
expand the market from offline to online retailing. However, before joining to the

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online retailing, you wish to understand how the behavior of the consumer as an
online buying behavior, so your team’s intention is going to conduct research for this
area
Requirement:
- You need to do short survey for the market segmentation that suitable to your
need (for instance: market segmentation can be the age of 18-25)
- The sample size for the assignment will be at least 40 samples.
- Based on the data collected, construct a short report for that situation (note that
you are not required to do any econometric techniques)
- Issue some solutions for the marketing strategy that can be able to achieve the
highest outcome
Submission requirement
- Your paper will be presented in a normal margin with Times New Roman Font
and size 12
- Submitting your paper via Email: nmdat@hcmulaw.edu.vn
- When you submit your paper, please do include the data collected (which mean
that your submission will be 3 files: Word, PDF, and Excel file)
Assessment Quantity Timed Weighted CLO
format
1 2 3 4 5 6 7 8 9 10 11
Attendance 15 Every 10 x x
session
Written 1 Announce 20 x x x x x
based quiz d 1 week
prior the
quiz
Presentation 1 9th and 10th 20 x x x x x x x x x
session
Group 1 Announce 50 x x x x x x x x x x x
assessement d by the
first day of
the course
Final Exam 1 School’s 100 x x x x x x x x x
Schedule

6. Rubrics matrix
Form of Criterion Minimum requirement for assessment
assessment

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A B C D F
(8.5-10) (7.0-8.4) (5.5-6.9) (4.0-5.4) (0.0-3.9)

Rubric 1: Attendance Students Students Students Students Student


attendance checklist join more join 12 join 11 join 10 join 9 days
than 13 days and days and days and and below
days in the below in below below
courses the course

Rubric 2: In class Students Students Students Student Students


Student paperwork/ can be able can be able can be able can be able are not
individual homework to answer to answer to answer to identify peform or
work and and and the issues submit the
express express express and use paper on
his/ her his/ her his/ her basic time
opinions opinions opinions techniques
about the about the about the to solve the
issues, also issues, the issues, the problems
tackling techniques techniques
them in a used is used is
clear and clear clear
innovate The paper
techniques formating
that go is nice and
along with neat
the process
The paper
formating
is nice and
neat

Rubric 3: In class Students Students Students Students Students


presentatio can speak, can speak, mostly poorly are not
n present present read the deliver the attend to
their work their work content of ideas and the
in a in a the do not presentatio
designated designated presentatio have any n day
time time n and media aid
The media The media media aid
aid should aid might might not
be clear for not be be

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viewer clear and available
tracking stay with or rewrite
Students the the content
are also be formating
able to Students
answer the can be able
questions to answer
from some
lecturer questions
and other from
students lecturer
and other
students

Rubric 4: Content of Student Students Students Students Not


Student the work can be able can be able hardly poorly submitting
assessment to tackle to tackle tackle the tackle the the paper
the the minumum minimum
minimum minimum requiremen requiremen
requiremen requiremen t of the t of the
t of the t of the student student
student student assessment assessment
assessment assessment , some , work
, thus , the work work flow flow is
perform flow might might just missing
extrodinary not be stay a random and
and along with idea solutions
innovate the process are random
solutions or might idea
unclear

Formating Students Students Students Poorly


of the work perform perform perform perform
the the the the
appropriate appropriate appropriate appropriate
formating formating formating foratting of
of a of a of a a
document document document document

Rubric 5 Final exam Students Students Students Students Not


can be able can be able can be ale can be able attending

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to perform: to to to the exam
Define the Define the Define the Define the
issue issue issue issue
Evaluate in Evaluate Evaluate Example
deep of the some limited
issue perspective ideas
Examples of the issue
Example

7. Class regulation
Lecturer  Properly fulfill the obligations and responsibilities of
teaching the course
 Provide sufficient materials and knowledge for students
in the course
 Always update new knowledge for students
 Create conditions and opportunities for self-development
Students  Attend classes fully and on time
 completing assigned readings from both texts and sup-
plemental articles
 Serious in learning, conscious and responsible for as-
signed tasks, assignments, and homework
 Know how to apply theories to solve human resource
management situations in practice
 Demonstrate vision, cognitive thinking skills, problem
analysis, self-study skills, teamwork skills and presenta-
tion skills
 Submitting assignments for each learning module on the
due date.
Class attendance and  Attend classes fully and on time
participation  Attendance will be tracked every lesson, marking based
on attendance will be discussed in class
 Students must attend at least 80% (12/15 days) of the
course or he/she loses 10% of midterm mark
 Student has Absent with permission (AP) will counted
as half day
 Students attend below 50% (8/15 days), the lecturer has
the right to giving 0 in midterm mark
 Participate and contribute ideas for the lesson
Behavior  No absences or late in class
 Absences need to be noticed 1 day before the class start,
then the attendance will be marked as AP
 Do not use electronic devices for personal purpose in the
classroom

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 Listen, participate in lectures
 Maintain order in the classroom

8. Compiled by lecturer
Department: Marketing Division, Management Faculty, Ho Chi
Minh University of Law
Office address: A 204, No. 02 Nguyễn Tất Thành, District 4, HCM.
Telephone: 0934104568
Person in charge: Dr. Nguyễn Minh Đạt, MBA. Tran Thuy Nhung
Email: nmdat@hcmulaw.edu.vn; ttnhung@hcmulaw.edu,vn

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CÂU HỎI VÀ BÀI TẬP TÌNH HUỐNG
1. Choose and use a survey method so that collect information about X, Y, Z
generation. Describe those differences.
2. What are the differences between Adler and Jung's psychology?
3. Are gender distinctions consistent across cultures?
4. What is Freud's term for the primitive side of personality? Explaining about
Freud’s motivation theory.
5. What is the relationship between person perception and social cognition?
6. How do you decide at what point you should step into the technology price curve
for a given product; are you an early adopter?
7. Would you look at a label to determine whether you would buy athletic shoes or a
garment based on its eco-friendliness? Would you be willing to pay more for these
items?
8. Examine why understanding consumer behavior is important for an organization.
9. What are rational and emotional behaviors a consumer has when purchasing a new
smartphone?
10. Are perceptions of value important to consumers?
11. With reference to Porter's analysis and Maslow’s model, determine the factors that
incline buyers to substitute products?
12. What are the causes of consumer involvement?
13. What are the models of consumer involvement? Describe about differences and
make a table for that.
14. What are the steps in decision making process?
15. After 2000, what are some changes in Vietnamese culture?
16. What is Individualism versus Collectivism (Pursuit Of Self- Or Group Interest)?
17. What is Power Distance ( Social Inequality and Submission to Authority)?
18. Which differences are between Masculinity/Femininity notion in Vietnam and
another countries’ one?

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19. In what aspects an urban consumer will be different from a rural consumer?
20. What are the tangible benefits of global brand building?
21. What is the relationship between a drive, a need, and a want? List the primary
needs displayed in Maslow's hierarchy of needs. Give an example of a product that
fits each need. Does opinion leadership influence a consumer’s need or want?
22. What is influence of family to consumer’s decision? Give an example in reality.

CASE STUDY 1: USING SEX TO SELL


It’s not uncommon for advertisers to use sexual imagery to help sell their brand –
especially when they’re trying to appeal to a certain demographic. But what’s the end
goal? Some advertisers use sexual imagery to stand out from the crowd. Others may
simply rely on sexual imagery to define their brand and their offering. So how do
advertisers know if it’s effective?
To counter their run-of-the-mill burger ads, quick-service restaurant Carl’s Jr. has
leveraged sexual imagery in a number of its television ads in recent years. A deep-
dive using Nielsen TV Brand Effect and Creative Evaluation compared Carl’s Jr.
creatives that used sexual imagery with those that didn’t to better understand their
effectiveness in advertising. While industrywide conclusions cannot be drawn from
one advertiser’s strategy, this analysis makes one thing clear: audience matters.
Burger joint Carl's Jr. is famous for ads featuring Heidi Klum licking a burger to
seduce a man, Kim Kardashian eating salad while writhing around on a bed and in a
bathtub, and other mostly naked female celebrities like Paris Hilton and Kate Upton in
sexualized scenarios that all include devouring fast food. But a new ad for the chain
says it plans to go easy on the skin from now on.
It starts off with the fictional founder Carl Hardee Sr.'s son, Carl Hardee Jr., fooling
around with VR glasses with one of the models. Photos of disembodied lips, a naked
woman with burgers covering her breasts, and women in bathing suits cover the walls.
Carl Sr. explains that when he gave his son control of the business, "he sowed his wild
oats, as a young man is wont to do, and well, he got a little…distracted." To illustrate,
we see a video of Carl Jr. chomping down on burgers with three scantily clad women
to his father's disapproval.

20
Then Carl Sr. explains the history of the company, complete with clips of women
dressed in conservative clothing from decades past—to represent the good old days
when women ate burgers modestly, we guess?
"See, this is what I've been talking about: food, not boobs," Carl Jr. says to
demonstrate his comprehension. Food-porn-like photos of burgers replace the sexy
pin-ups, and then we see the restaurant's new tagline: "Pioneers of the great American
burger."
The company's rationale for its makeover reflects the same view of women as
"distracting" (and men as unable to resist sexualizing them) as the ad. “It was time to
evolve,” the ad agency 72andSunny 's executive creative director Jason Norcross told
Ad Week. “Some of the product attributes got lost because people were too busy
ogling girls.”
The old Carl's Jr. was a textbook case of objectification, but the new one's not much
better. Similar to sexist dress codes and purity culture, taking bikini-clad women out
of ads because they're supposedly a distraction just sexualizes them more.
If Carl's Jr. were rebranding itself to depict women as multidimensional human
beings, that would be commendable. But it looks like the revised brand image still
portrays them as objects—just objects that don't belong in burger ads endorsing
traditional American values. The new commercial's women may be wearing more
clothes, but they're still being viewed with the same sexist attitude.
(Source: Nielsen)

CASE STUDY 2: DOING BUSINESS IN CHINA


Although the times have changed, the citizens of the United States cannot help but
recollect on the history of an unstable political system, corruption, environmental
degradation, the lack of intellectual property protection and last, but not least, a
variety of different cultures in the far East; so with that said, why would any American
business organization want to pursue business in China? What was once a small-town
audio store called Sounds of Music had an epiphany back in 1966 that has currently
yielded pay dirt. Nearly twenty years later, Sounds of Music transformed into an
electronic conglomerate known as Best Buy Inc, Co. This S & P Fortune 500

21
company is currently known as the largest consumer electronics retailer in the United
States. Best Buy chose to pursue this “uphill battle” due to the fact that it was near
impossible for them to ignore their ever growing free market economy and the
urbanization that is taking place within it.
Best Buy is sophisticated enough to distinguish between what makes them profitable
within the United States and what will make them unsuccessful in other parts of the
world, in particular to this study, China. In order to truly understand China and the
complexities of expanding there, one must know how to do business in China. It may
sound implausible to the average domestic business man/woman to think there is
much of a difference in doing business in China, than what it is here in the United
States, but it is indeed a credible fact. Developing a SWOT analysis could aid in the
many challenges of trying to conduct business in China, but this evaluative method
doesn’t change intangible circumstances such as time and return on investment. Best
Buy had both of these conditions present during their feasibility study. Realizing the
opportunistic possibilities and competitive advantage of the situation, Best Buy didn’t
hesitate to conduct thorough due diligence before doing business in China. This paper
will discuss some of the important aspects of their research as it covers the basic
understanding of doing business in China and how Best Buy emerged from being just
a face in the crowd to achieving commendable status in Shanghai, China. This report
will elaborate on Best Buy’s experience as they try to tap into a foreign market for the
first time ever knowing that the potential risk could be irreversibly negative. Best Buy
Inc, plans to prove that it is indeed possible to enter into the Chinese Market for
consumer electronics.
Best Buy announced on April 1, 2006 that they would be opening their first branded
store in China. Best Buy did not just enter the market but they were wise about it as
well. They wanted to hedge the risks involved in any possible way. On May 12, 2006,
the company made a purchase of a majority stake in Jiangsu Five Star, which is the
fourth biggest Chinese appliance and electronics retailer. By purchasing this majority
stake, Best Buy saved a tremendous amount of time that is necessarily needed to
create a comparable sized organization through grown. They now had their presence
in China in 136 stores, as well as the close to 1,000 stores that they have successfully

22
opened in both the United States and Canada. The purchase of this stake also helped
Best Buy get a feel of what Chinese customer’s needs and wants were.
Even though the acquisition had substantial advantages, it also had a lot that worked
against the company’s ability to succeed as well. Best Buy’s business model was not
suited very well to Chinese consumers at all. “The basic business model is to grow as
fast as they can to get sales volume, so they can get bigger discounts,” says Graham
Matthews. The completion that Best Buy faced was fierce from homegrown business
already in place. Best Buy focused heavily on the customer centricity, which meant
that they emphasized understanding the needs of customers. In China, this may not
necessarily be a positive thing because friendly service is considered suspicious. Best
buy is a fairly clean organization and has very nice stores which are definitely
successful in North America; however this may be a negative aspect as well, because
consumers would feel as if they are spending their money in your organization just for
you to keep the place nice looking. Regardless of quality, the only way China
consumers would typically purchase from an American store would be if the prices
within that store became significantly low.
Best buy is doing everything within its power to ensure that this expansion becomes a
success. They are conducting a lot of research and development activities from both
residential and business surveys. The company plans to implement the dual- branding
strategy that has proven to be successful in Canada. The company learned a significant
amount of information and applications from running two brands in Canada and they
plan on taking what they have learned and applying it to the current strategy of China.
China has been very quiet when it comes to its plans and movements within this
situation, but with that, one could wonder if a successful American company could
cross over into China and be just as successful in late stages of the year. The answer to
this question remains to be seen, but if there is any chance for dealing to take place,
Best Buy must first know the significance of the industry they wish to solicit. Doing
business in Shanghai could be very profitable if a company can build that rapport via
business etiquette and embrace the culture.
When trying to do business in China there are some very important concepts that an
entrepreneur must understand about Chinese culture. According to the Harvard

23
Business Review on Doing Business in China, there are eight elements that underline
Chinese negotiations. The first element is the social concept of “personal connection”
called guanxi. Personal connection is essential in Chinese business culture because it
is the basis of trust and no Chinese business man/woman will do business with those
they do not trust. In other words one would have to know the right people to meet the
right people. The representative’s mianzi (face) must be in good standing as well. This
means that the representative’s reputation must be dignified and prestigious because it
is seen as a person’s most important measurement of self worth. That is where the
concept of “the intermediary,” or zhongjian ren arrives.” The zhongjian ren is the
associate who connects clients to the right people and develops guanxi with them.
This person is used to set up a meeting with executives since all Chinese meetings are
characterized by distrust and uncertainty of strangers. The zhongjian ren is not just a
translator- he/she is an interpreter of Chinese business moods, the initiator of the
business proposal, and often settles differences between the two parties in order to
accomplish the pursued goal.
It is important to understand that the Chinese culture is a Confucian culture. They lay
huge importance on obedience and respectful submission to one’s superiors. Therefore
the idea of shehui dengji (social status) is crucial when trying to do business in China.
If one wants an important business deal to go through with a Chinese company then
he/she will have to send someone in his/her company that has “weight” or status in the
company. Not just an errand boy. Whoever is sent represent the company to Chinese
businesspeople better have great renji hexie (interpersonal harmony).
Although, social status is important, if the representatives affairs are not in order the
Chinese see that as a symbol of how they do business. That representative also needs
to know a lot of information about the deal at hand because he will be interrogated
about the proposal and its benefits. This is when the concept of chiku nailao
(endurance) comes into play. The Chinese place a lot of value in hard work, so
endurance is very honorable to them. As pertaining to a business meeting they see
endurance in the amount of questions asked, the amount of research one has
conducted, and the patience one displays in their decision making process. American
people are more about individualism and sequencing but the Chinese have always

24
been about zhengti guannian, or “holistic thinking.” They are concerned with the deal
as a whole, not just the pricing part, then the quantity part, and so on, and so forth.
They discuss all of those topics all at one time. Not to say that these topics are not
very important to the Chinese. They will still be very concerned with those matters
and take pricing very seriously. This can be seen in their concept of jeijian (thrift).
They will ask questions like, “How did you come up with that amount?” or negotiate a
seemingly reasonably low price. No matter the level of evaluation and examination,
being honest and firm is the key.
Maintaining management consistency, being able to adapt, having patience,
developing respect, having a great attitude, and being clear are all relevant
characteristics any foreign company must adhere to collaborate with China.
Relationships cannot be stressed enough when dealing with China. The importance of
the guanxi is also very important and maybe the most vital tool one would need to
acquire. The guanxi is built upon respect, and also it means to build healthy
relationships within one’s affiliations. Basically, the guanxi means in street terms is
that “you scratch my back and ill scratch your back.” By using the guanxi efficiently a
company can minimize risks and frustrations when doing business in China. The
guanxi can hurt business relations also if not managed right. “Often what happens is
the senior local Chinese managers cultivate strong relationships with their direct
reports and should that the senior local managers leave, he or she is likely to take a
large portion of their staff with them on to their next assignment, suddenly leaving
huge gaps of employees to fulfill.” So basically, relationships with others play a major
role (indirectly) in conducting business in China. Relationships are not just before
deals take place but an ongoing process.
The holistic picture of business transactions and contracts hold more weight than the
actual contract. “For the Chinese, contracts are nothing more than a formalized piece
of paper to document what we have agreed upon within the principles of mutual
benefit and cooperation.” If these implied principles were violated, the contract
basically isn’t worth anything. If the Chinese feel they have been tricked into taking a
bad deal, the contract will not prevail- as in the West. A person must have respect and
trust basically before any negotiations. Chinese negotiate tough contracts but a person

25
must know when to walk away. In the case of Best Buy’s joint venture into Shanghai,
there was no need to walk away from negotiations.

In conclusion, we can see why Best Buy, the world’s largest electronic retailer,
decided to integrate their quality products into China’s most prominent and
commercial hub, Shanghai. Best Buy took all of the correct measures to execute the
transaction in a way that wasn’t cocky, confident in its yield for both parties.
Understanding the importance of the negotiation within the ranks of China can be
complex to a foreigner. Despite the odds, Best Buy utilized their business savvy and
competitive edge to embark on this overseas project and has succeeded as projected.
They strategized their entrance into the Chinese industry mainly by minimizing their
risk by purchasing stake in Five Star Appliances. This acquisition helped its effort of
shaving a decade off the time Best Buy would have needed to develop a comparably
sized business through organic growth. The investment also helped Best Buy figure
out what Chinese customers want and boost its foreign sourced, private label
initiatives for U.S. stores.
This was a high risk, high reward negotiation for Best Buy and today, it is apparent
that the rewards are prevailing. The business aptitude of the Western based company,
Best Buy, was able to digest the eastern culture in which they embarked upon. The
practicality of knowing and utilizing the for C’s of China has yielded satisfactory
results. The Continuity was established via acquisitions of the majority stake in
Jiangsu Five Star; a brand people knew and trust. The Context was displayed in the
way the store was set up and how top executives handled what they specialized in-
regardless of which cultural background led the project; in this case, products where
set up on shelves in order of best to worst. The Confucianism theory helped the
humbled Best Buy quickly adapt and learn the perspectives of the typical eastern
consumers and their behaviors. The last C represented Change and as it is all too
obvious, that this entire experience was new to both parties and the profits will
ultimately dictate its overall success. Only the future holds how GDP and how GNP
will pan out with this venture, but experiment couldn’t take place without China and

26
Best Buy opening up to the concept of globalization- and since they both have
accepted the keen possibilities of this merger.
(Source: Ukessays.com)

CASE STUDY 3: LUXURY BRAND SHOPPING DURING THE Q4/HOLIDAY


SEASON
Luxury retailers are facing a challenge to adapt to consumer behaviors as the shift in
retail continues its path towards e-commerce rather than in store shopping. This in-
depth analysis of luxury shopping trends shows what current luxury brand shoppers
are doing, what brands and publishers should watch for, and what to expect during the
2017 holiday shopping season.

Luxury shoppers are no longer the small group of people who live a completely-lavish
lifestyle. Today, shoppers are diverse in many aspects such as age and income. A
brand may not mean “luxury” as much as a style or look does. Aside from the
definition of “luxury” varying to each buyer, the needs of experiencing merchandise
(touching and trying products on in person) is not as strong as it once was. Today’s
consumers will go far beyond the immediate reach of nearby brick and mortar stores.
Shoppers are willing to buy online from retailers across the country, and even shop
international, to get the look they desire. This has led to a demise of brick and mortar
sales, as well as an opportunity for luxury retailers to capitalize on digital growth as
the entire sector of e-commerce, continues to boom.
In December 2016, a report from Euromonitor and cited by eMarketer showed an
increased compound annual growth rate of 8% for digital versus just 2% for brick and
mortar luxury sales. Additionally, the study also shows that digital purchase will make
up 25% of personal luxury goods sales in 2025. What’s more, the same study
concluded that April of 2017 showed 70% of total luxury buys were influenced by at
least one digital interaction. This concludes that although not all shoppers are
converting via online purchases, their purchases are being driven by promotions and
brand awareness on the web.

27
Not only is there a shift in where consumers are shopping, but there is a larger number
of millennials who are becoming prominent in this retail sector. By 2025 Millennials
are predicted to make up 45% of the global luxury goods market. Deloitte concluded
that digital channels make up 42% of luxury purchases among millennials. This is due
to their technological advances of constantly being plugged into their phones and
tablets, as well as the willingness to express themselves and shop by look rather than
brand, while defining what “luxury” means to them.
Due to this shift in age within the vertical’s demographic, luxury shopping is
becoming less brand and status focused than it used to be. Like the average shopper,
luxury buyers are swayed more with convenience and low prices which are offered
more frequently through online shopping versus in store. A study done by Business
Insider showed that last year, luxury brands overspent on print media (with the
majority of money spent going to magazine ads) during the critical holiday season.
So where does this leave high-end retailers when consumers are self-defining the
meaning of luxe, and exploring innovative ways to find goods? Luxury retailers need
to shift their spend into digital media and get in touch with younger shoppers by
engaging with them through various channels. With the holidays around the corner, it
is crucial for brands to begin these shifts if they haven’t already. Advertisers should be
focused on maintaining and possibly stealing more market share and brand
recognition amongst competitors.
Holiday Shopping Trends: What to Watch For
We have seen a year over year shift in traffic share from publishers within the
Rakuten Affiliate Network with whom retailers are optimizing with throughout the
holiday season. While shopping sites used to make up a majority of traffic coming
from the luxury consumer, there has been a decline year over year. In 2015 the
shopping category made up over 38% of traffic in the luxury space, and dropped to
only 30% in 2016. This consumer that once focused on shopping sites shifted to the
influencer vertical, as well as sub-networks and deal sites.
We can see a clearer shift month over month in Q4 during 2016. In November, where
many shoppers convert, according to the National Retail Federation, buyers were
looking for the best bang for their buck.

28
Deal sites made up most of the overall holiday shopping traffic for luxury brands at
about 32%, which is almost 11% higher than 2015. According to a podcast with The
Wall Street Journal, retailers are finding that their affluent shoppers have had enough
of the price climbs and would rather find a deal. Shoppers are becoming more deal
focused when shopping ever since merchants began raising their prices upwards of 9%
per year about a decade ago. Furthermore, other merchants are coming into the space
giving the consumer more options, more competitive pricing, and more internet
exposure to compare products and price tags.
Throughout December we saw slight change year over year, however, most of our
growth was found in the influencer and content publisher type. Looking at January,
we saw consumers were browsing on shopping sites more, which held about 40% of
the overall traffic from the luxury vertical, followed by sub-networks making up about
22% of the traffic, and deals site still being prominent with 17% traffic share.
What Luxury Brands Can Expect in the 2017 Holiday Shopping Season
Looking ahead at the upcoming holiday season, eMarketer expects US e-commerce
sales to continue their growth, climbing up 16.6% while foot traffic continues to fall in
store. Retailers must have a strong playbook for the holiday season as early as
possible. According to the National Retail Federation, more than half of the surveyed
shoppers began research in October or earlier. Although their research was just the
start of their end purchase, nine out of ten said something convinced them to complete
a purchase they were hesitant about, and more than half of them purchasing a
recommendation from the retailer online.

One way consumers can gain ground in the marketplace, is by optimizing via mobile
opportunities, specifically smartphones, in order to captivate more consumers, and a
younger demographic. Smartphone commerce is expected to rise by an estimated
57.8% in 2017 overall. Many publishers have these opportunities within their media
kit for retailers to take advantage of, such as Ebates, and RetailMeNot. There are ways
to still optimize with sites as a luxury retailer and remain brand conscious, which is a
concern for most luxury advertisers. Brands can keep their cash back low and still
have a presence on sites with paid media. Focusing on specific placements or sections

29
of sites, such as the Ebates Luxury Collection, will help a brand gain exposure without
potentially losing sight of brand sensitivity.
As the consumer demographic continues to change, and the world of online shopping
evolves and progresses, now more than ever, luxury retailers need to define where
they belong within the shopping landscape and adapt to stay afloat with the
competition.
(By Daniel James, rakutenmarketing.com)

CASE STUDY 4: Coke For All


Any opinions, findings, conclusions or recommendations expressed in this material
are those of the authors and do not necessarily reflect the views of UK Essays.
Introduction
This case study examines how consumer behavior has successfully been used to
promote Coca-Cola brand in Thailand while the market share of company has
declined.
First of all, this case study states a short history of Coca-Cola and explains the
problem background of the company regarding in Thailand.
Secondly, the analysis of how consumer behaviour theories used to solve the problem
will be provided.
Finally, there are conclusion and limitations of the case study.
Background
Today, Coca-Cola took the top position among the Top 10 Global Brands 2008 for the
eighth year in a row (Economictimes 2008), since it was created in 1886 by John
Pemberton, a pharmacist in Atlanta, United States. In 2003, Coca-Cola became the
world's largest manufacturer, marketer, and distributor of nonalcoholic beverage
concentrates and syrups. Now Coca-Cola sells more than 400 brands in 200 countries
(Coca-Cola, 2008) and had the highest market share amongst other carbonate drinks in
the world by more than 70% of its income outside the United States (Euromonitor,
2008).

30
For many years that Coca-Cola is known as the world leader in carbonated soft drink
especially in Europe and South America. But in some Asia markets including
Thailand, Coca-Cola still trail its biggest rival, PepsiCo (Euromonitor, 2008).
Regarding to the loss of business situation in Thailand, although Coca-Cola is a global
brand available in most countries in the world, sharing strategic principles,
positioning, marketing including carrying the same brand name or logo (Mooij, 2005).
The company is also recognised by the importance of adaptation/localisation in
overseas by responding to each target market's need and want, focusing more on the
market; economy, culture and region (Hollenson, 2007). Moreover, Coca-Cola tries to
approach the target consumers by decentralising the operation and marketing, trusting
more on the ideas and decisions made by individual local company not from its
Atlanta head quarter (NewYork Times, 2000). These are the ways to reach every
target consumer in the world as the mantra of CEO and Chairman of the company,
Doug Daft in 2000 said:
“To be within an arm's search of desire.....Always, everywhere Coca-Cola”
“think local, act local”
“people don't buy drinks globally”
“We need to make our advertising as relevant as possible to local markets”
(FT, 2001 strategieseurope, February 2001)
With mixing these two components (global brand and localisation), Coca-Cola is still
found to lose connection with Thai consumers, according to Sasie Vadhanapanich, a
chief ideation officer of a marketing research company in Thailand acknowledged
Thai's perception for Coca-Cola that the brand stands for ‘youthful spirit', ‘cool' and
‘hip'. But for many years ago, the company had not excited the market or consumers
anymore whether through new product innovations or impactful breakthrough
campaigns. Although many attempts were provided to reconnect with young
consumer, the impact was so short-lived (Mulchan, 2004).
This problem of Coca-Cola in Thailand can be explained in term of the conflict
between being global brand and localization. Though Coca-Cola said it has applied
adaptation/localisation strategy but their advertising campaigns in Thailand before
2007 still were global advertisings, the company still adapt one global advertising

31
with promote amusements, cool and hip of teenager with Coca-Cola in the term of
global brand. This situation is considered as wrong principle and impossible in
practice because global advertising can be effective to consumer in global market not
to Thailaind or other market where consumers' values and cultures are different from
the values and cultures in the advertising campaign (Mooij, 2004), also the consumer's
culture of local country is different from the global brand's country of origin because it
is less affluent world of marketization and globalism but more becoming creolized
(Belk and Ger, 1996 ). Until 2007, Coca-Cola decided to launch a new advertising
campaign named ‘Coke for everyone' (figure 1. see appendix) in Thailand that was
totally different and more successful than in the past, because this advertising is
expressed Coca-Cola's good understanding of Thai hoods through telling simple
stories of Thai, using Coca-Cola bottle/can as a person to present their differences
since physical body, roles in society, attitudes, values, cultures through the most
important aspect, their ‘identities' in term of self, family, society and nation.
Conclusion
After ‘Coca-Cola for everyone' campaign was launch to promote the brand and
increase sales in Thailand for a month. It was been reported from BangkokBizweek, a
local newspaper in Thailand that the advertisement was accepted very well from Thai
by approaching 80% of the target consumer that led to increasing of national brand
preference by 36.28% (bizweek.com, 2007).
The reason that this ‘Coke for all' become a successful advertisement is because the
company consider creating the meaningful associations, the structure in the human
mind where attributes and benefited are linked with user or brand, to make the
advertising relevant and have meaningful to the consumers (Mooij, 2005) (figure 3.
see appendix). Moreover, a lot of self identities of Thai were expressed very obviously
and the advertisement contained consumers' feelings and emotions. Finally all of these
aspects were considered related culture influences, the most important element.
Overall, this advertisement can be seen as the perfect tool for Coca-Cola in promoting
the brand and persuading Thai consumers to drink Coca-Cola, no matter who they are
or what they involve with, while Coca-Cola still remain being global brand that can
reach local consumers.

32
Limitations
One limitation to this case study is there are only two consumer behavior theories
been used; self identity and culture dimension in analysis. However, there many other
theories which could be looked at when analysing advertising. Another limitation is
the fact I am of Thai nationality and I have looked at Coca Cola advertising in
Thailand, this could be seen as an subjective view point, where are an objective view
point from someone from another country who is able to see both sides without bias,
which would be more affective.
(Source: UKEssays)

CASE STUDY 5: LUCK BE A LADY: CIROC VODKA ADVERTISIMENT


Virtually every rapper today is citing British alcohol maker Diageo’s CIROC Ultra-
Premium Vodka in their lyrics. The brand seems to have found an interesting niche,
more specifically that of the premium liquor market. CIROC’s “Luck Be a Lady”
advert, synonymous with the song of the same name made famous by Frank Sinatra,
calls upon a all-star cast with public celebrities like hip-hop entrepreneur and investor
in CIROC Sean ‘P. Diddy’ Combs, and a assortment of male actors and female
models. The men are elegantly dressed in suits with Combs (2011) first statement
suggesting the strategy of the campaign, “We have arrived.” He urges them to go out
and amass millions of dollars, wanting the practice become a regular habit. Combs
(2011) first full statement is, “Fellas, we have arrived…we gone win a couple million,
break the bank out here, then we gone do it all over again.” The ads next scene is them
disembarking a private jet in Las Vegas, where there are beautiful women to greet
them with actual shots of CIROC. (Jernigan, Ostroff & Ross, 2005) says, “In modern
alcohol markets, the advertising and promotion of alcohol are central to the product
itself. Whereas in earlier eras, alcohol may have been marketed based on the quality,
purity, and price of the product, now the identity of the brand is paramount” (p. 314).
This campaign strives to tell the story that connects a life of luxury and leisure with
the product itself. The commercial successfully fills the objective of the formerly
mentioned narrative, and encapsulates the sensation of attainment one can appreciate
with having consumed CIROC. However, the representation of this lifestyle

33
associated with a brand can have false consequences when classism and consumption
becomes more than the product itself (in this case CIROC), and more about trying to
keep up with the exemplified way of life. It is of no surprise that the ad echoes the
culture of which Sean ‘P. Diddy’ Combs is a pioneer; that of hip-hop, which today is
full of images purporting classism, consumerism and to put in urban vernacular, swag
over substance. The campaign pays homage to Sinatra and his contemporaries the ‘Rat
Pack’, with Combs (2011) telling Soul Culture Magazine that, "The Rat Pack defined
the art of celebrating in style. I cannot imagine a Spirit more suitable for
commemorating life with family and friends than CIROC; a brand that has become
synonymous with celebratory occasions.”
Thorstein Veblen (1979) says that, “In order to gain and to hold the esteem of men it
is not sufficient merely to possess wealth of power. The wealth or power must be put
in evidence, for esteem is awarded only on evidence” (p. 24). As Combs (2011)
declares, “We have arrived”, it not only takes into account the physical arrival at a
private jet facility, but the arrival to a height of social status. The depiction of this
status in the ad is realized through the collection of luxury products exhibited; from
the Escalades, private jet, the many of beautiful women, and of course Las Vegas,
which is symbolic for infamous gambling, one of many facets that endorse pleasure as
a main motivation for using it as a location to film. Merchandise like this form the
basis, or give confirmation to what Veblen (1979) notes as, “putting wealth and power
in evidence” (p. 24). It is contrasted with the fact that they are just drinking a brand of
vodka; it connects CIROC to these high-end products. Essentially, the ad is making
the statement that CIROC is not just one of the many premium liquor brands, it
exceeds the others’. Particular focus is given to excess—gambling in the casinos.
While the characters mention that they are looking to “rake a couple million” and
“break the bank”, inferences are that they are looking to spend a great amount of
money. If they are talking about millions, expandable wealth is no object to them.
Throughout the advertisement we are bombarded with messages that say if you are not
a part of the wealthy class, then you are not worthy. Likewise, if you buy CIROC then
you will become just as happy, attractive, and successful as the people portrayed in the
commercial. It has been corporate practice that marketers feed—off the uncertainties

34
of individuals who adopt a classist attitude, seeking to elevate themselves up the
economic and social ladder. Debra Goldman (2002) states, “New-luxury consumers
account for a lot of this recession resistance. They are paying premium prices not just
for material things (which the old mass market supplied very efficiently) but for
emotional ones: comfort, adventure, identity, and esthetic pleasure.” The commercial
advocate that anything less than CIROC means you are missing out on the true
emotional significance of successes and all that entails.
Sean ‘P. Diddy’ Combs in an interview with the publication Adweek (2011) was
asked, “What do you think your brand stands for?” Combs (2011) responded by
saying:
“I think I stand for aspiration. [That] hard work pays off. People from all walks of life
and all over the world look at me and know my humble beginnings and know that
everything I’ve done has been through hard work. People respect me as a marketer
and brand builder.”
As mentioned beforehand, there are countless references of CIROC in hip-hop culture
today, so much so that the brand epitomizes the approach to the music. Such adoration
toward alcohol in music, and specifically in hip-hop is not unique to CIROC. For
example, MOET and CRISTAL, rightly having been observed as premium brands,
have been used in the lyrics of Combs protégé the late Notorious BIG (1994, 1997) in
which he says, “The back of the club sipping ‘Moet’ is where you’ll find me” and
“Take their spots, take their keys, make my faculty/Live happily ever after in
laughter/Hah, never seen ‘Cristal’ pour faster/And to those bastards, knuckleheads
squeeze lead.” Miller and Muir (2004) note that, “As a cultural and commercial force,
hip-hop’s impact is formidable: Coke, Pepsi, Gucci, Bacardi, Burberry, Mercedes,
Nike and McDonald’s are among the brands that have used hip hop to sell
themselves” (p. 178). While hip-hop was shaped from much more serious questions
than which bottle to ‘pop’ in the club, it is thanks to endorsements from rappers in
various lyrics that certain brands have enjoyed a substantial boost in popularity.

The campaign suggests another cultural perception, and that is how the women are
represented. Amico (1998) says that, “Advertisements promoted the image of women

35
as childlike and sexy” (p. 19). From the onset of the commercial, the women appear in
a role that is subservient and playful, regarding them as another expression of the
luxurious life. The women have one speaking part; following a trend in advertising
that rarely do female characters have a voice in a commercial unless it is for
something directly marketed to women. Wood (1999) notes, “To be feminine in the
United States is to be attractive, differential, unaggressive, emotional, nurturing, and
concerned with people and relationships” (as cited in Turow & McAllister, 2009, p.
193). These concepts are depicted in the commercial and emphasize the historic belief
about gender roles that women as the protagonist are expected to serve the male.
Although the women are dressed in attire that suggests professionalism, as with many
modern women, when they are portrayed this way, women are seen as having to work
their “second job” when they arrive home. There is less evidence than usual to suggest
this advert is working to undercut any progress made for women’s rights. However,
the message sent to the viewers here is that the men is the one with authority—the one
in control, and the woman's role is to serve; and just because the women appear
successful and having a good time, it is only on the condition that she still carries out
her principal duties as hostess.
The campaign, “Luck Be a Lady” debuted in mid-December 2011 on both US
televisions as well as online. Diageo said that the ad will run on various channels that
predominantly are dedicated to music and sports. The 30 second version of the ad
campaign aired over the holiday season collection of NBA games; however the
original format is that of a short film. CIROC (2011) has stated in their campaign
marketing that, “Ciroc has taken the stance that their marketing video needed not
backstory, narrative arc or a connection to reality. No one in a decision-making
capacity on their marketing team thought to ask whether it mattered that, there’s no
reason for these people to be hanging out, that nothing remotely interesting goes on
outside of the visual, and that it’s just kind of weird.” The reason for this strategy
forms the basis of advertising success. The intertextuality with the “Rat Pack” gives
fundamental basis to what the commercial is endorsing. Olsen et al. (2003, 1993,
1995, and 2004) notes that:

36
“Advertisements have become an integrated part of popular culture which they
parody, and by drawing upon socially situated codes, myths, cultural discourse, and
national ideologies to develop resonant associations for consumer goods,
advertisements both constitute prevailing ideologies and construct new mythologies
and ideologies for commodities through these dialogical and intertextual
relationships.”
(as cited in Turow & McAllister, 2009, p. 134)
The references made to the ‘Rat Pack’ are deliberate because the target market is
already familiar with them and what they symbolize as CIROC is used as a form of
product placement. It isn’t a blatant use of it, but still generates links that are already
drawn by the audience’s knowledge.
Just as actors, musicians, artist and the like come to personify their brand, Sean ‘P.
Diddy Combs has come to personify CIROC. There are very few places and very few
songs nowadays that don’t associate the two. In ‘Luck Be a Lady’ a variety of roles
become closely tied to the message of luxury and success. The image of the ‘Rat
Pack’ according to Combs was considered because it sought to emphasize what
Strasser (2009) says that, “Through advertising, leisure becomes a goal of modern
living, not just an attribute used to sell a product” (as cited in Turow & McAllister,
2009, p. 25). Having the resources to live life the way the campaign projects, is a
desire of most western consumers. The commercials statement is made more striking
knowing the success Combs has attained personally; that this could actually be a day
in the life of Sean ‘P. Diddy’ Combs. The “match-up hypothesis” is described by Till
& Busler (2013) as, “The differential impact that different types of endorsers, often
celebrities, have on the endorsed brand” (p. 2). Diageo notes the business has had
significant growth since they affiliated Sean “Diddy” Combs. Marketing and Research
Company Symphony IRI says that, “Sales (of CIROC) jumped 41% to $6.8 million in
the year ended Oct. 3 2007.” Initial brand management before Combs tended to focus
on the grape according to MediaCom, CIROC’s media agency until January 2011.
When Aegis’ Carat (2011) took over responsibilities they said, “That whole grape
story just didn’t work, because nobody really cared. It didn’t carry around enough
cachet.” Through the success of advertising campaign; “Lady Be Luck”, CIROC is

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now positioned as a brand amongst the most successful in the world with The Spirits
Business (2012) reporting that, “The sale of 1.5m cases in 2011 has helped Ciroc to
become the second largest ultra-premium vodka in the US.” Combs statement to
Andrew Hampp (2007) in Ad Age, summed up his relevance to the brand and the
brands success in the market. He said, “I’ve branded myself as the king of celebration,
and that’s what this alliance is all about.”

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