Red Bull Consumer Behaviour

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

1.1.1 History of Red Bull

According to the Red Bull Website, in the mid of 1980’s an Austrian entrepreneur was inspired by an energy drink named “Krating Daeng”; currently known as REDBULL Thailand which was first invented by Chaleo Yoovidhya and mainly to be sold in the Southeast Asia. The Austrian Entrepreneur took the idea back to Austria and recreated and modified the energy drink’s formula to suit the preference of the westerners and called it Red Bull Energy Drink. Dietrich Mateschitz, the founder of Red Bull Energy Drink, made partnership with Chaleo and formed Red Bull GmbH in Austria then developed a unique strategic marketing concept to advertise Red Bull in his country thus for the

In other words, what was meant by Belch and Guolla is that a Consumer Behaviour is the study on how consumers purchase a product, what product were to be purchased, when does the consumers need the product and why that specific product, which the final results leads to personal satisfaction of wants and needs. Consumer Behaviour considers a wide range of factors influencing the consumer, and acknowledges a broad range of consumption activities beyond purchasing. These activities commonly include; need recognition, information search, evaluation of alternatives, the building of purchase intention, and an act of purchasing, consumption and finally

Moreover, perceptual and cognitive models assume that brand knowledge (i.e. brand awareness and image) affects consumer response to the brand, defined as perceptions, preferences and, most important, behavior arising from marketing mix activity. To assess this brand impact, we propose to distinguish two dimensions of consumer behavior: current behavior and intended future behavior. Current behavior can refer to the purchase of the brand as well as its usage; future behavior refers to intentions to purchase the brand in the future. Following the customer-based brand equity model, we predict that brand knowledge (awareness and image) affects current purchase and usage of brands.

H2. Brand awareness has a positive effect on current purchase.

H3. Brand image has a positive effect on current purchase.

Moreover, it has been argued that brand equity does not have only immediate value but also long-term value by guaranteeing future revenue streams (Aaker, 1991; 1996).

Therefore, we expect brand knowledge (awareness and image) to affect intended future behavior as well.

H4. Brand awareness has a positive effect on future purchase.

H5. Brand image has a positive effect on future purchase.

2.3 EFFECTIVENESS OF BRAND