CONSUMER BEHAVIOR-2009-2011

CONSUMER BEHAVIOR Term IV, 2009-2011 PGDM-II/XPGDM Faculty in-charge: Dr. Neena Sondhi Office extension number: 108 E mail: neenasondhi@imi.edu NOTE: It is expected that each student will read and understand the material contained in this course syllabus. It is your responsibility to follow the course as outlined. The material in this syllabus will be explained fully in the first class meeting. If you miss the first class, you should examine this document thoroughly in detail. COURSE OBJECTIVES Consumer behavior is a cross-disciplinary area of study. Although the focus of consumer behavior generally falls under marketing, wise marketing professionals know that to best market their product (or service), they must understand how individuals gather information. What motivates their behavior, how attitudes are formed and maintained, and the personality and cultural traits that characterize individuals (e.g., obsessive-compulsive shoppers) and groups (e.g., social class, geographical region) which, in turn, may affect consumption. The goals of the course are: To provide a broad survey of the principles of consumer behavior. To acquire skills and techniques for implementing these principles in the business, especially marketing context. To be able to comprehend how a consumer would react to your or your Company and Competitors products/product offerings/promotions etc. To develop a foresight ultimately about the role and impact of consumer behavior activities in and on society. After taking this course, you should be able to identify and understand how human behavior is THE KEY to successful marketing. In addition, it should become clear that you have to consider the psychological principles or marketing strategies that influence consumer behavior PEDAGOGY The pedagogy of the course relies predominantly on case discussions and interactive discussions. Every class would require active inputs from each one of you .The assignments would be a mix of individual and group assignment .However everything is hands on .Those who are active every day of the trimester are the ones who will survive and learn. Start paying attention to how advertising and marketing approaches are targeted differentially for different groups of people. Start looking at products, services and advertisements with a new perspective. What strategies could the marketer be adopting? What consumer needs is he targeting? What is going on in the consumers mind etc? The value of the course is greatly enhanced when students are active participants. Each student is a consumer in his/her own right and can add value to our course on Consumer behavior. Therefore, each student is strongly encouraged to contribute to our class discussions. Outside materials, such as articles, advertisements, and personal experiences brought to class for discussion or presentation is welcome.
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EVALUATION CLASS PARTICIPATION (Individual)

10%

This is based on participation and contribution to discussion. Repeated absences will result in a lower grade. More important, however is the contribution you make while you are in discussion. Every student is expected to come to class prepared to discuss any of the assigned discussion questions. Students will be called upon at random to contribute to the class discussion based on the assigned reading or case to be prepared. Participation will also be evaluated in every discussion session. Anyone could be called upon at any time. The pedagogy relies heavily on case discussion. Since Consumer behavior is a very individualistic subject, everyones perspective on the case is EXTREMELY important. Thus the onus of preparing and responding to the case questions and application of concepts for the day is entirely yours. It is assumed that the participant is well versed in the art of case discussion and would contribute meaningfully as a would be manager to the discussion. PROJECTS (1) (Individual) 15% During the semester, you are to complete ONE project that will give you the opportunity to apply and to critique consumer behavior principles as they relate to real world examples. A list of projects is provided at the end of the syllabus. Projects correspond to the material covered in the course and class. A few alternatives are provided under each project heading to give you some freedom to choose within each section. You are to pick one of these examples and complete the project. The projects are to be accomplished Individually. The procedure and the technicalities will be explained in the first session. Projects should be typed and in the format of a project report. You should identify the question to which you are responding. And when appropriate, print ads or copies should be submitted along with your analysis and critique. Projects must be handed-in on the specified due date by the end of class. No late projects will be accepted COMPULSORY PROJECT (Group) PHASE I 10% PHASE II 10% PHASE III & IV 15% You are required to complete a compulsory project as part of the course. The project details will be divided into Four phases. The details are enumerated at the end of the course plan. END TERM EXAMINATION 40% The exam will be case based and require your understanding of the Consumer Behavior process in totality. There will be no choice in attempting the questions. TOTAL 100%

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TEXTBOOK &REFERENCE MATERIAL Required Text: Hawkins D.I, Best R.J, Coney K.A and Mookerjee. A.: Consumer Behavior Building Marketing strategy, ninth edition, 2008, Tata McGraw Hill (Hereafter referred to as HBC) A course packet of readings and cases would be circulated at the commencement of the course (hereafter referred to as RM) References Schiffman L.G. & Kanuk L.L.: Consumer Behavior 9th ed. 2007, Pearson Education (hereafter referred to as SK) Loudon D.L. & Della Bitta A.J.: Consumer Behavior Concepts and Applications 4th ed., 1993 Mcgraw Hill International Edition (hereafter referred to as LB) Blackwell R.D.; Miniard P.W. & Engel J.F.: Consumer Behavior India ed. 2009(Hereafter referred to as BME) Mowen J.C. & Minor M.: Consumer Behavior 5th ed. 1997, Prentice Hall of India Sheth J.N. Mittal B &Newman B.I.: Consumer Behavior Consumer Behavior and Beyond 1999 The Dryden Press MAGAZINES &JOURNALS: HBR, Journal of consumer Research, Business Today, Economic times (Brand Equity) and Strategic Marketing supplement etc.

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SESSION PLAN
Session 1 Topic Introduction
What is Consumer behavior? Why study consumer behavior?

References/Cases
R:HBC : Ch 1 RM: The quest for customer focus Torment your customers (they will love it) P: Course overview and interactive discussion on consumer behavior

MODULE 1 Session Topic References/Cases

Consumer decision making -I

R: HBC: Ch.13-15 C: Raam Naam satya hai! R: HBC: Ch.16 C: Princess for a day

Types of decision making Problem recognition Information search process

Marketing implications

Consumer decision making -II Alternative evaluation methods Decision rules Marketing implications Consumer Decision Making-III
Why do people shop? Choosing a store In store purchase behavior Non store purchase behavior Purchasing patterns
Post purchase evaluation

R: HBC: Ch. 17;LB: Ch. 17 RM :Linking retail strategy, atmosphere design and shopping behavior C: Prerna Stores R: HBC:Ch.18 C: Gayab tu ho ja gayab MODULE I

Consumer Decision making-IV

Product disposition

WORKSHOP & PRESENTATION

CONSUMER BEHAVIOR-2009-2011

MODULE II Session 7 Topic Cross-cultural consumer behavior

The imperative to be multinational Cross-cultural consumer analysis Cross cultural segmentation Cross-cultural strategies for reaching the global customer

References/Cases
R: SK:Ch.14; HBC: Ch. 2 RM: Convergence and divergence in consumer behavior: implications for international retailing

Localization: The revolution in consumer market

C: Lord Stows Bakery

The effect of culture and subculture on consumer behavior

The meaning of culture Characteristics of culture Cultural values, Asian cultural values Cultural change and countercultures. Defining sub-culture& typologies of sub-culture

C: Shoppers stop: targeting the young

R: SK: pp393-403; LB:Ch.5 RM: Social class influence on purchase evaluation criteria

Social class: influences on CB

Social Structure and social class Measurement of social class Profiling the social classes Consumer behavior applications of social class

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Family structures & family influences

The concept of family and its influence on Consumer behavior Roles & Functions of the family The family life cycle dynamics of family decision making

C: Big Bazaar R: HBC: Ch.6; LB: Ch. 7

RM: The mother of all markets

C: Fisher-Price Toys Inc.

R:HBC: Ch. 7

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Reference groups and their effect

Classification and properties of groups Reference groups: What are they? Factors influencing group formation and conformity

C: Inner City: where the stores are not R: SK: Ch. 15; LB: Ch. 8.

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Personal influence and diffusion of innovations

Dynamics of the opinion leadership & communication process The diffusion & adoption process Implications for marketing
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C: Prince Tennis Racket

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strategies

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WORKSHOP & PRESENTATION MODULE III

MODULE II

Session 14

Topic References/Cases Consumer personality & self concept R:HBC:Ch.12 ; SK: Ch. 5
Theories of Personality The implications of consumer personality on marketing The concept of self & Different self images Self concept and CB The motivation process Nature of Motivation Classifying motives Motive Arousal Needs & theories of needs Motivational research Information acquisition Perceptual encoding Marketing implications RM: Products and personality Selling to the Indian Male C: Fair & Handsome: Come color my world R: SK:Ch. 4; HBC: Ch. 10-motivation RM: Tyranny of things Exploring Consumer needs

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Consumer motivation

C: Multiple Sclerosis Society.

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Consumer perception

R: HA:Ch.7; BME: ch.14 C: The Changing perceptions of Bud Rileys

R: HA: Ch.8; LB: Ch. 12;BME: Ch.16

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Consumer learning & memory

The learning process Classifying learning-theories Implications of consumer learning Memory & consumer behavior

P: questions listed in the RM for this session

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Formation of consumer attitudes

Consumer attitudes Characteristics of attitudes Functions of attitudes Sources of attitude development Attitude theories & models

R: HBC: Ch.11; LB: Ch. 13

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Changing of consumer attitudes

The need for attitude change Strategies of Attitude change Process of attitude change

C: PSI India: Will Balbir Pasha help fight AIDS?(A) R: LB: Ch. 14 ; ; BME: Ch. 15

C: PSI India: Will Balbir Pasha

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WORKSHOP & PRESENTATION

help fight AIDS?(B) MODULE III

CONSUMER BEHAVIOR-2009-2011