Consumer Behavior by Dr. Babak Hayati

Dr. Babak Hayati, a visiting faculty member from the Asian Institute of Management in the Philippines teaching from Manila, conducted a lecture on “Consumer Behavior”, an elective module for the Masters in Management (MIM) program. He introduced students to several predictive models that influence managerial decisions on innovative products from their inception as ideas to their production, advertisement, and sale.

Starting with Everett Roger’s oft-cited Diffusion of Innovation theory describing the spread of new ideas in the marketplace, Dr. Hayati explained how models such as these influence other models, such as the Bass Diffusion Model of product adoption. Understanding the interaction between early adopters and late adopters, respectively known as “innovators” and “imitators,” provides insight that shapes marketing strategy based on variables P, marketing effect, and Q, word of mouth.

Mathematical models such as these are essential tools today’s managers need to have equipped in order to understand and predict the measurable impact their decisions will have on tomorrow’s business.