T.A.

PAI MANAGEMENT INSTITUTE (TAPMI), MANIPAL

CONSUMER BEHAVIOUR

Programme: PGDM
Batch: 2018-2020
Term: 4
Course Name: Consumer Behavior – MKT6006
Credits: 3 (30 Hours)
Course Instructors: Prof. Utkarsh (Core), Prof. Srinivasa Reddy (Core)

PART 1
INTRODUCTION
The course on consumer behavior provides students with in-depth knowledge of the
fundamentals of consumer behavior with emphasis on the consumer in the marketplace,
consumers as individuals, consumers as decision makers, and consumers as influenced by culture
and subculture. It emphasizes the process of consumer choice and the implications for marketing
efforts in businesses. Organizations are constantly gearing up to assess their customer needs
accurately with an intention to make effective decisions on what markets to target and the
variety of product/service offers to them. Therefore this course, in this rapidly changing market
place, assists managers to have an effective understanding of the current & future needs of the
market place and the related behavioral factors influencing them.

COURSE OBJECTIVES (CO)

1. To understand the fundamentals of consumer behavior, with emphasis on the consumer in
the role of an individual, group and organization
2. To enhance understanding of the processes involved in and the influences on consumer
behavior
3. To understand a coherent framework for interpreting consumer reactions to marketing
stimuli
4. To develop an appreciation for the value of knowledge of consumer behavior in developing
a successful marketing strategy

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COURSE LEARNING OUTCOMES (CLO)
By the virtue of the learnings gained in this course, students should be able to -

CLO 1: Find the predominant changes taking place in the consumer segments, and advise the
firms to proactively tailor-make their marketing approaches (PLG 1)

CLO 2: Formulate a communication strategy and tactic appropriate to the specific customer
segments of the firm (PLG 2)

COURSE CONTENT
 Assael’s Model of Consumer Behaviour: Complex Decision Making, Variety-Seeking
Behavior, Brand-loyalty, and Inertial orientations. Learning theories; Theories of low-
involvement decision making & situational decision making.
 Consumer Behaviour for the New Marketing: McKinsey model of the New Decision
Journey; Co-creation, online consumer behaviour, and impact of social media.
 Perceptions, stimuli selection, organization and interpretation.
 Attitude, and marketing strategy. Personality and the theories (Psycho-analytic , Self-
concept, Trait, Fruedian theories relevant to consumers)
 Demographics, Social class, Lifestyle, VALS framework; Group and Cultural influences;
Reference groups, Household decision making. Word of mouth, Diffusion processes and
Consumer engagement.

PRESCRIBED TEXT:
Leon G.Schiffman, Joseph Wisenblit and S. Ramesh Kumar (2016), Consumer Behavior, Pearson,
Delhi, 12/E.

OTHER READINGS AND REFERENCES:

a) Henry Assael (2010), Consumer Behaviour - A Strategic Approach, Biztantra Hemal
Impressions, New Delhi.
b) Blackwell Miniard Engel (2006), Consumer Behaviour, Cengage Learning.
c) Dan Ariely (2010), Predictably Irrational, Harpercollins, London.
d) Dan Ariely (2010), The Upside of Irrationality, Harpercollins, London.
e) Martin Lindstrom (2010), Buyology: Truth and Lies About Why We Buy, Broadway books,
Newyork.
f) Sheena Iyengar (2011), The Art of Choosing, Harper collins

POLICY ON PLAGIARISM:

2
 Plagiarism is strictly prohibited in this course and any cases identified will be subject to
disciplinary action as per the guidelines mentioned in the PGP Handbook.

ASSESSMENT SCHEME AND WEIGHTAGE:

a) MID TERM AND END TERM

Evaluation Weightage Duration Open/Close

(%) (in Minutes ) d CLO Tested
Book
End Term 40 120 Closed Book CLO 2

b) OTHER ASSESSMENTS

Unit of Weightage
S. No. Evaluation Item Time CLO
Evaluation (%)

1 Quiz-1 Individual 10 After Session 5 -

After Session -
2 Quiz-2 Individual 10
16

3 Case Analysis-1 Team 5 Session 3 -

4 Case Analysis-2 Team 5 Session 7 -

All sessions
5 Class Participation Individual 5
-

6 Mini Project 1 Team 5 Session 18 -

Field Research Project

7 Team 20 Before Session CLO 1
Report
18

PART 2: SESSION PLAN

3
 Pedagogy : Text Chapter
Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.
Video on “What
you interact with
1 Introduction to Consumer Consumption: The Pursuit of
influence you”
Behaviour Happiness
Discussion
Consumer decision- a) Low Involvement v/s
making, High Involvement
2 Buying
Five Stage Buying process b) Work and/or Fun-
Discussion 13 (Pg.366 to 382)
Measuring Hedonic and
Utilitarian v/s Hedonic
Utilitarian Shopping
consumption Value
Levels of involvement and
levels of decision-making.
a) Conceptual Models of
Case Discussion How Advertising
3 Case 1: Pluggin In the 13 (Pg.366 to 382)
works?
Consumer: The Adoption of b) Message In Bottle
Electrically Powered
Vehicles in the U.S.
Case-1 Assessment Wt-5%
Learning theory:
Classical Conditioning, Discussion &
Instrumental Video 5
4
Conditioning, Social presentations
learning.
a) The impact of
Low Involvement television
Consumer Behavior: Advertisement
5 Passive Learning, Social Discussion (Krugman’s Theory) 5
Judgement, Elaboration b) The Elaboration
Likelihood Model. Likelihood Model
c) Sherif’s Social
Judgement Theory
d) Consumer Buying
Behaviour (Assael’s
Model)
Quiz-1 Wt-10%

4
 Pedagogy : Text Chapter
Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.
Video on “What
you interact with
1 Introduction to Consumer Consumption: The Pursuit of
influence you”
Behaviour Happiness
Discussion
Pedagogy : Text Chapter
Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.

Qualitative Research –
a) Qualitative Research 3(Pg.86-87)
6 Concept and Application Discussion Methods Overview
Areas

Qualitative Research –
Methodology Case Discussion 15
7 Case 2: Saxonville (Pg.518-520)
Sausage
Case-2 Assessment Wt-5%
Discussion &
Consumer Perceptions; Video
a) Perception is Reality
8 Marketing stimuli & presentation on
b) Analyzing Consumer
characteristics. unconscious 4
Perceptions
processes

Situational Influences in
Decision-Making, Discussion
9 5 (Pg.191 to 197)
Information Acquisition,
and Processing
Consumer Attitude a) Understanding
10 Development and Consumer Attitudes by 6
Change. Discussion Gregory Dean

Role of Attitude in Video Caselets

Developing Marketing on four functions
Strategy a) Uncovering the
11 of attitudes & 6
customer experience
Discussion mystery

5
 Pedagogy : Text Chapter
Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.
Video on “What
you interact with
1 Introduction to Consumer Consumption: The Pursuit of
influence you”
Behaviour Happiness
Discussion

Marketing
12 communications for
Discussion 7
influencing consumer
attitudes

Pedagogy : Text Chapter

Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.
Online Consumer
Behavior: Co-creation, a) How customers decide
Social Media, and whether to buy from
Case Discussion your website by 1
McKinsey Model of the
13 Neufeld and
New Decision Journey Roghanizad
Case 3: Brandless: b) Making it Personal
Disrupting Consumer 2018
Packaged Goods
Personality (Freudian
a) http://www.strategicbu
Theory, Trait Theory and sinessinsights.com/vals 3
Self Concept) /
14 Discussion
Consumer Segmentation, b) Segmentation and
Lifestyle (VALS Targeting By Sunil Gupta,
(HBS)
Framework)
Consumer Segmentation,
Case 4: American Legacy: Rediscovering Market
15 Case Discussion 3
Segmentation (HBS)
Beyond the truth
Campaign
Household Decision-
Making. a) Hofstede’s National 10
16 Discussion Cultures (www.geert- 11 & 12
Group and Cultural
hofstede.com)
Influences: Cross-Cultural
and Global
Quiz-2 Wt-10%

6
 Pedagogy : Text Chapter
Session Topics Lecture / Case / Pre class / Post class readings readings
No. Simulation etc.
Video on “What
you interact with
1 Introduction to Consumer Consumption: The Pursuit of
influence you”
Behaviour Happiness
Discussion

Demographics and Social

Class & Reference Group The Power of Social Norm
Socio-Economic 9 (Pg. 314 to 328)
17 Influences Discussion
Classification 2011 – The New 14
Consumer Engagement, SEC System.
Ethics and Environment
Word of Mouth and 9 (Pg.330-to 347)
Innovation Diffusion Discussion a) Capture more Value 13(Pg. 466-473)
18 Process. b) Go for it America
Case 5: Apple Stores
Field Research Project
19 Discussion
Report
Discussion &
Field Research Project
20 Course review
Report
PLG MAPPING FOR THE COURSE

Addresse CLO
d by
PLG# Program Level Learning Goal No.
Course?

(Yes / No)

Application of Fundamentals
PLG1 Traits: Demonstrate application of functional / conceptual knowledge Yes CLO 1
to business situations

Problem Identification and Solution

PLG2 Traits: Demonstrate ability to identify a problem, critically assess Yes CLO 2
various alternatives and suggest appropriate solution

Integrative Thinking

PLG3 Traits: Demonstrate ability to identify inter-linkages among No -

functional areas within an enterprise and assess the impact of
external environment on its performance

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 Effective Communication
PLG4 No -
Traits: Demonstrate proficiency in Oral and Written Communication

Ethical Responsibility
PLG5 Traits: Demonstrate awareness and assess impact of ethical behavior No -
on business

Leadership
PLG6 Traits: Demonstrate capability to take leadership role in a business No -
situation

PART 3: SUPPLEMENTARY INFORMATION

Group Project details (Mini Project P1 and Field Research Project P2) are included in the course pack.

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Faculty: ___________________________ Endorsed by: _____________________________

Signature & Date: ________________________ Signature & Date ________________________