GMSI405 Consumer Behavior Final

7/27/2019 GMSI405 Consumer Behavior Final

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GMSI405: Consumer Behavior

Semester-III

Module Handbook: 2014

PGDBM

Module Leader: Vipin Agrawal

Email: [email protected]

Phone Extn. 3142


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GDGWILancaster University

ContentsIntroduction: .................................................................................................................................... 3

Module Objectives: ......................................................................................................................... 3

Coverage: ........................................................................................................................................ 4

Learning outcomes: ......................................................................................................................... 4

Assessment structure:...................................................................................................................... 5

Contact hours: ................................................................................................................................. 5

References: ...................................................................................................................................... 6

Weekly coverage:............................................................................................................................ 7

1. Individual report (30%):........................................................................................................ 8

2. Group Exercise & Presentation (30% +10%):...................................................................... 8

3. End Term Examination (30%):............................................................................................... 9

LUMS Marking Criteria for Postgraduate Course ........................................................................ 10

Support for your learning .............................................................................................................. 11

Expectations .................................................................................................................................. 11

Week 01: Consumer BehaviorAn Introduction ........................................................................ 12

Week 02: Motivation, Involvement and Personality .................................................................... 13

Week 03: Perception and its marketing implications ................................................................... 14

Week 04: Learning Theories and Memory ................................................................................... 15

Week 05: Consumer Attitude........................................................................................................ 16

Week 06: Self Concept and Lifestyle ........................................................................................... 17

Week 07: Culture and subculture .................................................................................................. 18

Week 08: Social Class & Reference Groups ................................................................................ 19

Week 09: Family purchase decision and its marketing implications ............................................ 20

Week 10: Opinion Leadership & Diffusion of Innovation ........................................................... 21

Week 11-12: Consumer Decision Process .................................................................................... 22

Week 13: Organizational buying behavior ................................................................................... 24

Week 14: Ethics and CB ............................................................................................................... 25

Week 15: Revision ........................................................................................................................ 26

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CONSUMER BEHAVIOR

Introduction:

All organizations, whether classified as for-profit or not-for-profit entities, have an objective ofcreating and exchanging value within their chosen target segments. This conception of value

and hence its creation and successful exchange presumes that the organization (marketer) has a

fairly good understanding of consumer needs, wants, desires on one hand and the way they

action their purchase (or exchange) on the other. The idea is to try and understand how

consumers, both individual and organizational, select, purchase, use and dispose of products and

services. The study of consumer behavior hence as a cornerstone of understanding the

motivations, determinants and buying decision processes has hence gained considerable

importance and has now become an integral part of marketing education. This course is designed

to initiate and sensitize participants to the finer nuances of consumer behavior such that they are

able to make informed and well researched marketing decisions.

Module Objectives:

The course intends to develop an understanding of consumer behavior in the context of what

factors determine the buying behavior and delineate the buying decision process followed by

individual as well as institutional buyers. The specific objectives of this course are

Subject Specific: Knowledge, Understanding and Skills:

The module will develop knowledge, understanding and the ability to apply skills relating to:

the differentiation and similarities between individual and organisational buying

behaviour.

the recognition and evaluation of the internal determinants of consumer behaviour.

the recognition and evaluation of the external determinants of consumer behaviour.

the evolution of the consumer decision making process.

General: Knowledge, Understanding and Skills:

Upon completion students will demonstrate the ability to:

analyse markets and business environments

develop skills of information sourcing, problem identification and its resolution. develop analytical skills through case study analysis.



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Coverage:

Consumer Behavior: Definition, importance, scope, limitations and its applications.

Understanding Consumer & Market Segment: Demographic and Psychographics life style

segment: Positioning products.

Internal influences: Understanding the psychological foundation of buying behavior:

Motivation & Involvement, types of motives, motive arousal, dimensions of involvement and its

marketing implications; Personality- theories, self-concept and its marketing implications;

Perception- dynamics perceptions, subliminal perception and its marketing implications;

Learning theories & attitudes- Learning theories & memories - definition, classification, theories

characteristics, memory systems, retrieval of information, advertising application; Consumer

attitudesdefinition characteristics, theories, sources of attitude development.

Environmental or external influences: Culture & subculture - definition and relevance to

market: decisions. Social class & groups - nature & process of social stratification, reference

groups, nature of influence. Family, Family life cycle, family purchasing decision, marketingimplications

Personal influence & diffusion of innovation: Opinion leadership, adoption and diffusion of

Innovations, marketing implication of personal influence.

Consumer decision process: Problem recognition, search, evaluation of alternatives, purchase

and post purchase behavior, Models of CB, lifestyle marketing.

Organizational buying behavior, Ethics & Consumer Behavior

Learning outcomes:

Subject Specific: Knowledge, Understanding and Skills:

On successful completion of this module students will be able to demonstrate the ability to:

develop an in-depth understanding of how marketers use internal and external factors

to influence buyer decision making.

differentiate between the individual and organizational buying and understand the

determinants of organizational buying.

develop an appreciation and understanding of social issues connected toconsumer behaviour.

evaluate the impact of social and ethical issues on consumer behaviour.



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General: Knowledge, Understanding and Skills:

On successful completion of this module students will be able to demonstrate the ability to:

Develop information sourcing skills.

Problem identification and resolution skills

Develop critical thinking Work effectively on an individual and team basis.

Communicate in formal and informal environments.

Assessment structure:

1. 30% - Individual Report

2. 40%- Group Exercise (30%) &Presentation (10%)3. 30%- End Term Exam

Contact hours:

30 hoursLecture

15 hoursTutorials/Workshops/Seminars



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References:

Core Text:

Hawkins, D.I., Mothersbaugh, D.L. and Mookerjee, A. (2010), Consumer Behavior - Building

Marketing Strategy, 11/e, New Delhi: McGraw Hill

Other References:

1. Assael, Henry (2003), Consumer Behavior: A Strategic Approach, Houghton Mifflin

College Div.

2. Bagozzi, R., Gurhan-Canli Z. and Priester J.R. (2002), The Social Psychology of

Consumer Behaviour, 1st Edition; McGraw Hill.

3. Cathrine V. Jansson-Boyd (2010), Consumer Psychology, 1/e, McGraw Hill.

4. De Mooij M. (2004), Consumer Behaviour and Culture Consequences for GlobalMarketing and Advertising, London: Sage Publications.

5. Dubois B. (2000), Understanding the Consumer, London: Pearson Education Ltd.

6. Blackwell, Roger D., Miniard, Paul W, Engel, James F.(2006),Consumer behavior,1/E ,

Cengage Learning , New Delhi

7. Hoyer,Wayne D. ,MacInnis, Deborah J.(2010),Consumer Behavior - A Marketer's Tool

Cengage Learning , New Delhi

8. Kotler, P. and Keller K. (2008), Marketing Management, (International Edition), 13/e

Delhi, India: Pearson Education

9. Peter J. P. and Olson J.C. (2010), Consumer Behavior, 9/e, McGraw Hill.

10.Peter J.P., Olson J.C. and Grunert K. (1999), Consumer Behaviour and Marketing

Strategy (European edition). London: McGraw Hill.

11.Schiffman L.G. and L.L. Kanuk (2009), Consumer Behavior, 9/e. Delhi, India: Pearson

Education

12.Sheth, Jagdish N. Mittal, B. and Newman B.I. (2002) Customer Behavior: A Managerial

Perspective, South-Western College Pub.

13.Solomon, M.R. (2008), Consumer Behavior (International Edition), 8/e.



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Weekly coverage:

Week Coverage

1 Week 1 IntroductionCB and marketing strategy

2 Week 2 Motivation, Involvement and

Personality

3 Week 3 Perception and its Marketing

implications

4 Week 4 Learning Theories and Memory

5 Week 5 Consumer Attitude

6 Week 6 Self concept and lifestyle

7 Week 7 Culture and subculture

8 Week 8 Social Class & Reference Groups

9 Week 9 Family purchase decision and

marketing implications

10 Week 10 Opinion Leadership & Diffusion of

Innovation

11 Week 11-12 Consumer decision making process

12 Week 13 Organizational buying behavior

13 Week 14 Ethics and CB

14 Week 15 Revision



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1. Individual report (30%):

Topic:

Select THREE marketing stimulus (i.e. a product including packaging and labeling, an

advertisement, and a retail store environment) that manifests the usage of any of thepsychological influences (i.e. motivation, perception, learning, attitude and self concept) that is

part of your course curriculum. Discuss the way in which the particular marketing stimulus tries

to influence the consumer behavior with reference to the factors that you have identified.

3000 words report (Font size: 12, Times New Roman, single space) excluding Appendix

Appendix: Include a brief description of the selected product, advertisement (print advertisement

can be included and if its an audio-visual advertisement, then you should write/describe the

story line in brief) and retail store in the appendix.

Submission deadline: Week 8 (Class day) 10:00 A.M.

2. Group Exercise & Presentation (30% +10%):

Topic:

Based upon secondary research, discuss the application of consumer behavior in the

segmentation and positioning of any one of the following product/service in the Indian market.

- Passenger cars (A Class; B Class; C Class and D Class) (Any one of these)

- Energy drinks ( like Red Bull )- Motorcycles (Up to 175 cc capacity; Above 175 cc) (any one)

- Smart Phones ( like i-Phone )

- Ethnic Indian restaurants( like Haldiram)

- Casual apparels ( like jeans)

- Branded Jewelry ( like Tanishq)

Group size and composition:

3 - 5 members per group;

Group will be defined by the faculty member.

Group Exercise Report (30%): 4000 word report (Font size: 12, Times New Roman, single

space)

Submission deadline: Week 15 (Class day) 10:00 A.M.

Group Presentation (10%): A 20 minute presentation with 10 minutes Q&A



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Common guidelines for all submissions:

1. Your work must be original and fully referenced (using Harvard Referencing System).

For Harvard Referencing System guidelines, download the Manual from the GDGWI

server.

2. Any kind of plagiarism would lead to severe penalties amounting to a resubmission ormarks reduced to zero.

3.End Term Examination (30%):

This would be a two hour duration close-book examination.

Note: The complete assessment schedul e wi ll be noti f ied separately.



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LUMS Marking Criteria for Postgraduate Course

Result Broad Percentage Primary verbal descriptors for attainment Class

Descriptor range of

Intended Learning Outcomes

Pass Excellent 70-100 Exemplary range and depth of attainment ofintended learning outcomes, secured by

discriminating command of a comprehensive

range of relevant materials and analyses, and Distinctionby deployment of considered judgement

relating to key issues, concepts and

procedures

Pass Good 60-69 Conclusive attainment of virtually allintended learning outcomes, clearly

grounded on a close familiarity with a wideMeritrange of supporting evidence, constructively

utilised to reveal appreciable depth ofunderstanding

Pass Satisfactory 50-59 Clear attainment of most of the intendedlearning outcomes, some more securelygrasped than others, resting on a Pass

circumscribed range of evidence and

displaying a variable depth of understanding

Fail Marginal 40-49 Attainment deficient in respect of specificfail intended learning outcomes, with mixed

evidence as to the depth of knowledge andweak deployment of arguments or deficient

manipulationsFail Fail 30-39 Attainment of intended learning outcomes

appreciably deficient in critical respects,lacking secure basis in relevant factual and

analytical dimensionsFailFail Poor fail 20-29 Attainment of intended learning outcomes

appreciably deficient in respect of nearly all

intended learning outcomes, with irrelevantuse of materials and incomplete and flawed

explanation

Fail Very poor 0-19 No convincing evidence of attainment of any

fail intended learning outcomes, such treatmentof the subject as is in evidence being

directionless and fragmentary



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Support for your learning

The main form of support will be through your module leaders and seminar/workshop leaders,

who are available on appointment. Also, the online support in the form of material available on

the GDGWI server regarding your module should be used to keep oneself updated.

The library resources are extended through the availability of electronic databases, containing

Research Journals and various other types of publications that provide you with enhanced

readings and facilitate your understanding.

Expectations

There are a number of expectations for your study on this module which you should be aware of.

These are that you will:

Adhere to the guidelines vis--vis submission deadlines; weekly readings and tasks;

practice tests schedule

Regularly log-in to check on the GDGWI server for announcements (and material)

pertaining to this module

Attend all the face to face sessions and regularly connect with module/workshop leaders

for any clarification pertaining to the module

Be aware of the plagiarism norms of the GDGWI (LU) and take care to not to infringe

upon the any of the same



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Week 01: Consumer BehaviorAn Introduction

Learn ing Objectives:

To gain an overview of CB as a subject matter of study Understand how CB determines marketing strategy of organizations

Briefly revisit market segmentation and discuss how CB connects to this

Lecture Outl ine Week 01:

CB: Definition, importance, scope, limitations and its applications.

CB and marketing strategy

Understanding Consumer & Market Segment: Demographic and Psychographics life

style segment: Positioning products

Readings for Week 01:

Hawkins et al (2010): Chapter: 1

Schiffman and Kanuk (2009): Chapters: 1, 2, 3

Eric K. Clemons (2007) Resonance marketing in the age of the truly informed consumer:

creating profits through differentiation and delight, available from

http://opim.wharton.upenn.edu/~clemons/blogs/resonanceblog.pdf, accessed 2nd

June 2010.

Week 01 Seminar :

Overview of the assessmentsindividual and group assignments

Task f or Week-02 Seminar:

Larson, Dave (2002) Building a brand's personality from the customer up, Direct

Marketing, (Tuesday, October12 2002). Available at

http://www.allbusiness.com/marketing-advertising/branding-brand-development/411645-

1.html . Accessed 3rd June 2010.

Come to the seminar prepared, having read this paper and having written a one page summary of

the same (2 sides of an A4 sheet) for submission. You will be asked to present your conclusions

to the seminar group.



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Week 03: Perception and its marketing implications


To understand the nature of perception and how consumers receive stimuli and transform

them into meaningful information, storing them for future use, affecting buying behaviorand decision making


Exposure, Attention, Interpretation and Memory

Perception and marketing strategy



Schiffman and Kanuk (2009): Chapter : 6

Eva Martnez, Leslie de Chernatony, (2004) "The effect of brand extension strategies upon

brand image", Journal of Consumer Marketing, Vol. 21 Iss: 1, pp.3950

Moore, T. E. "Subliminal Perception:Facts and Fallacies." Skeptical Inquirer 16, (1992):

273-281

Week 03 Seminar :

Case discussion - TBC

Task f or Week 04 Seminar:

Read the caseTBC



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Week 04: Learning Theories and Memory


To understand the nature and characteristics of learning

To know the nature and functioning of memory To understand the application of learning and memory theories in developing product

positioning strategies


Nature of Learning

General Characteristics of Learning

Memory

Brand Image & product positioning



Schiffman and Kanuk (2009): Chapter: 7

Subodh Bhat, Srinivas K. Reddy, (1998) "Symbolic and functional positioning of brands",

Journal of Consumer Marketing, Vol. 15 Iss: 1, pp.3243

Week 04 Seminar :

Case discussionTBC


Read the caseTBC



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Week 05: Consumer Attitude


To understand the nature of attitude and its components (cognitive, affective, andbehavioral)

To understand the role each component plays in developing marketing strategies to

influence/change attitudes

To know the communications characteristics that can be varied to influence attitude.

To understand how attitudes can be used to segment markets


Attitude and its Components - Cognitive , Affective & Behavioral

Attitude Change Strategies

Individual & Situational Characteristics that influence attitude change

Communication Characteristics that influence attitude formation and change

Market Segmentation & Product Development Strategies based on attitudes



Schiffman and Kanuk (2009): Chapter: 8 Lefa Teng, Michel Laroche, Huihuang Zhu, (2007) "The effects of multiple-ads and

multiple-brands on consumer attitude and purchase behavior", Journal of Consumer

Marketing, Vol. 24 Iss: 1, pp.2735

Week 05 Seminar :



Read the caseTBC



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Week 06: Self Concept and Lifestyle


To understand the nature of the self-concept, how it is measured and used to positionproducts

To understand the relationship between self-concept and lifestyle

To understand how lifestyle influences the purchase and use of products and services


Nature of self concept

Measuring and using self concept to position products

Nature of lifestyle

Measurement of lifestyle (AIO, VALS) and its use to position products




J. M. Sirgy (1982). `Self-Concept in Consumer Behavior: A Critical Review'. The Journal

of Consumer Research 9(3):287-300

Week 06 Seminar :

Case discussionTBC


Read the caseTBC



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Week 07: Culture and subculture


To understand what culture is, and why and how it is influential in terms of consumerbehavior

To understand what cultural values are, and how they act to influence behavior

To be able to develop a cross-cultural approach to the design of marketing strategy


Concept of culture

Variations in cultural values

Cultural variations in NonVerbal communications

Crosscultural marketing strategy



Schiffman and Kanuk (2009): Chapter: 12 , 13

McCracken, Grant C. 1986 "Culture and Consumption: A Theoretical Account of the

Structure and Movement of the Cultural Meaning of Consumer Goods," Journal of

Consumer Research.

Saikat Banerjee, (2008) "Dimensions of Indian culture, core cultural values and marketing

implications: An analysis", Cross Cultural Management: An International Journal, Vol. 15

Iss: 4, pp.367378

Week 07 Seminar :

. Case discussionTBC


Read the caseTBC

Submission Deadline: Individual report due next week (class day 10:00 am)



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Week 08: Social Class & Reference Groups


To understand the influence of social class on marketing strategy

To understand the nature and importance of reference group influence on the consumptionprocess

To understand the marketing strategies based on reference group influences


Social Class & its influence on marketing strategy

Nature and types of groups

Reference group influence on the consumption process

Marketing strategies based on reference group influences



Schiffman and Kanuk (2009): Chapters: 11

Bearden, William O. and Michael J. Etzel, (1982) Reference Group Influence on Product

and Brand Purchase Decisions, Journal of Consumer Research, 9 (September), 183-194.

Coleman, R. (1983). The Continuing Significance of Social Class to Marketing. Journal

of Consumer Research, 10(3), 265-280. Retrieved from Academic Search Complete

database

Week 08 Seminar :

Case discussionTBC


Read the caseTBC



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Week 09: Family purchase decision and its marketing implications


To understand the concept of the household life cycle (HLC) To know the marketing implications of using household life cycle (HLC)

To understand how consumption decisions are made within the household unit


The household life cycle

Marketing strategy based on the household life cycle

Family Decision Making

Marketing Strategy and Family Decision Making




Murphy, P., & Staples, W. (1979). A Modernized Family Life Cycle. Journal of

Consumer Research,6(1), 12-22. Retrieved from Academic Search Complete database

Week 09 Seminar :

Case discussionTBC


Read the caseTBC



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Week 10: Opinion Leadership & Diffusion of Innovation


To understand opinion leadership and how marketers can utilize it

To understand the diffusion process To be able to develop a marketing strategy based on an innovation analysis


Communications within groups and opinion leadership

Situations in which opinion leadership occurs

Opinion leaders characteristics

Marketing strategy and opinion leadership

Diffusion of innovation




Stokburger-Sauer, N., & Hoyer, W. (2009). Consumer advisors revisited: What drives

those with market mavenism and opinion leadership tendencies and why? Journal of

Consumer Behaviour,8(2/3), 100-115. doi:10.1002/cb.276

Week 10 Seminar :

Case discussionTBC


Read the caseTBC



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Week 11-12: Consumer Decision Process

Week 11: Situational influences, Problem Recognition & Information

Search


To understand the types of situations and categories of situational variables and their

impact on marketing strategy.

To know the constraints that the situation may impose on marketing decisions

To understand the process of problem recognition and its influence on the marketing

strategy

To understand the nature and types of information search- Internal vs. External.

To understand how marketing strategies can be developed based on the information

search patterns


Nature of situational influence , situational characteristics and consumption behavior,

situational influences and marketing strategy

Types of consumer decisions , the process of problem recognition , marketing strategy

and problem recognition

Nature of information search type of information and sources of information ,

marketing strategies based on information search patterns


Hawkins et al (2010): Chapter: 13 , 14 , 16


SELA, A., BERGER, J., & LIU, W. (2009). Variety, Vice, and Virtue: How Assortment

Size Influences Option Choice.Journal of Consumer Research, 35(6), 941-951. Retrieved

from Academic Search Complete database

Week 11 Seminar :

Case discussionTBC


Read the caseTBC



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Week 12: Information Search, Alternative Evaluation and Selection,

Outlet Selection, Purchase, and Post Purchase Processes


To understand the evaluative criteria used by the consumers and to develop marketing

strategy based on knowledge of a target markets evaluative criteria.

To know the various decision rules that consumers use and to develop marketing strategy

based on consumer decision rules

To understand the consumer decision process is outlet selection based on unique attributes

of retail outlets (evaluative criteria) and its implications for marketing strategy

To understand the nature of in store influences that affect product and brand choice and be

able to develop marketing strategy based on them

To know the processes that occur after the purchase, and how these processes affect

marketing strategy

To know how consumers actually use and dispose of a product


How consumers make choice - evaluative criteria , individual judgment and evaluative

criteria , decision rules for attribute based choices and its implication for marketing

strategy

Outlet choice versus product choice ,attributes affecting retail outlet selection, consumercharacteristics and outlet choice, instore influences that affect brand choices

Purchase ,post purchase dissonance ,product use and non use and disposition


Hawkins et al (2010): Chapter: 16 , 17, 18


Bettman, J., & Zins, M. (1977) Constructive Processes in Consumer Choice. Journal of

Consumer Research,4(2), 75-85. Retrieved from Business Source Premier database

Mohammed M Nadeem. (2007). Post-Purchase Dissonance: The Wisdom of the 'Repeat'

Purchases. Journal of Global Business Issues, 1(2), 183-193. Retrieved July 21, 2010,

from ABI/INFORM Global. (Document ID: 1336315911).

Week 12 Seminar :



Read the caseTBC



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Week 13: Organizational buying behavior


To understand how marketers can use organizational buying behavior in developing

effective marketing strategies.

To understand the effects of purchase situation on type of purchasing process used by an

organization.

To develop an insight into successfully marketing to organizational buyers


Organizational purchase process

Decision making unit

Purchase situations

Steps in the organizational decision process



Sheth, J. (1973). A Model of Industrial Buyer Behavior.Journal of Marketing, 37(4), 50-56. Retrieved from Business Source Premier database

Week 13 Seminar :



Case StudyTBC



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Week 14: Ethics and CB


To understand the impact of marketing on children

To understand the impact of marketing on adults

To understand the regulatory and consumerism issues related with marketing


Regulation and Marketing to Children

Regulation and Marketing to Adults



Heath, M., & Heath, M. (2008). (Mis) trust in marketing: a reflection on consumers'

attitudes and perceptions. Journal of Marketing Management, 24(9/10), 1025-1039.

Retrieved from Business Source Premier database.

Week 14 Seminar :



Group exercise presentations.

Submission Deadline: Group exercise due next week (class day 10:00 am.)



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Week 15: Revision


Revision

Week 15 Seminar :

Group exercise presentations.

26 | GMSI405 A t 2014

GMSI405 Consumer Behavior Final

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