consumer behaviour course outline

Consumer Behavior

School of Business Management , NMIMS

FT MBA II Year Trimester IV 2013-2014

Instructor: Prof Neeta Acharya Ext. – 5854 Email: [email protected]

Goals:

Post liberalization, companies in India that earlier had a very product oriented or sales oriented approach realized the need for customer orientation. It hence became imperative to know the customer not only on quantitative measures (What, how much), but also on qualitative measures (the Whys & Haws). This meant understanding the external & individual determinants affecting consumer decision-making process. The course is structured in this context.

Objectives: 1) To sensitize students to the behavioral dimensions that affect consumer

decision-making.2) To develop their skills in making effective marketing strategy decisions.

Pedagogy – Will involve many tools, in light of the qualitative nature of the subject. The participants will be learning through assignment, class exercises, case analysis, and article presentation besides final written examination.

Evaluation criteria – Marks out of 100.

1) Final exam – 45%

2) Assignments with presentation – 25% (Individual evaluation)

3) 2 Class exercises – 10% (Group evaluation)

4) Book /Article Presentation – 10%(Group Evaluation)

5) Case Analysis – 10% (Group evaluation)

Essential reading (Prescribed text )

Consumer Behaviour - Leon G. Schiffman & Leslie Lazar Kanuk - latest edition, Prentice Hall of India/Pearson Education India.

Consumer Behaviour (Xth Edition – 2010) Leon G. Schiffman & Leslie Lazar Kanuk & S.Rameshkumar(Pearson Publication India)

mailto:[email protected]

Other Texts (Recommended)

- Consumer Behavior – David L. Loudon & Albert J. Della Bitta, Latest edition, Tata McGraw Hill.

- Consumer Behavior – Michael R. Solomon, Latest edition, Pearson.

Note: Essential Readings in the following course outline mentions chapter numbers on the basis of 6th edition (International edition).

SESSION DETAILS

SESSION TOPIC1 & 2 CONSUMER BEHAVIOUR INTRODUCTION

Why Consumer Behavior is important Defining Consumer Behavior 70’s framework Buying roles Use of Consumer behavior, Problems in measurement Decision Process framework Perspectives to Consumer Behavior Consumer Research Use of secondary sources like Retail audit, readership survey, census,

Tata statistical outline, Marketing white book. Qualitative V/s Quantitative research & use in Consumer behavior

Essential Reading

Chapter 1 - The Diversity of Consumer Behavior Chapter 2 - Consumer Research

Chapter 3 - Market Segmentation

Recommended Reading Get Inside the Lives of Your Customers. By: Seybold, Patricia B. Harvard Business Review. May2001, Vol. 79 Issue 5, p80-89. 10p. 1 Diagram, 1 Chart, 1 Cartoon or Caricature.

3 Exercise 1 : PRODUCT ANALYSIS (All groups)

Show how Consumer Behavior has affected designing of a product and suggest additions/deletions (Vicarious/interviews).

4 External Determinants (A) -CULTURE & SUBCULTURE

Changes in Indian socio-cultural environment & impact on consumer behavior

Sub-cultural differences

Essential Reading Chapter 14 – The Influence of Culture on Consumer Behavior Chapter 15 – Sub cultural Aspects of Consumer Behavior

Recommended Reading :

We are like that only : Understanding the logic of Consumer India by Rama Bijapurkar (Published by Penguin India).

Do men and women really shop differently? An exploration of gender differences in mall shopping in India. By: Kuruvilla, Shelja J.; Joshi, Nishank; Shah, Nidhi. International Journal of Consumer Studies. Nov2009, Vol. 33 Issue 6, p715-723. 9p. 12 Charts. DOI: 10.1111/j.1470-6431.2009.00794.x.

GENDER AND MALL SHOPPING: An Anaysis Of Patronage Patterns, Shopping Orientation And Consumption Of Fashion Of Indian Youth. By: Kuruvilla, Shelja Jose; Ranjan, K. International Journal of Business Insights & Transformation. Apr-Sep 2008, Vol. 1 Issue 2, p1-8. 8p.

Cultural values and branding in an emerging market: the Indian context. By: Kumar, S. Ramesh; Guruvayurappan, Nitya; Banerjee, Madhurjya. Marketing Review. Fall2007, Vol. 7 Issue 3, p247-272. 26p. 3 Diagrams, 6 Charts. DOI: 10.1362/146934707X230086.

Why the consumer should not be the king in India. (cover story) By: Dabas, Jitender. Market Leader. Summer2008, Issue 41, p31-34. 4p. 1 Illustration.

BOOK/ARTICLE PRESENTATION (GROUP 1)

5External Determinants (B)- CROSS CULTURAL CONSUMER BEHAVIOR - Hofstede’s dimensions

Essential Reading

Chapter 16 – Cross –Cultural Consumer Behavior: An International \ Perspective.


The Culture Code : An Ingenious way to understand why People Around the world live & buy as they do by (Clotaire Rapaille)


6 External Determinants (C) - SOCIAL CLASS, REFERENCE GROUP & FAMILY

Socio– economic class segmentation v/s income segmentation Social group, aggregation & category Social groups & reference group power Changing roles in family.

Essential Reading

Chapter 13 – Social class and Consumer Behavior Chapter 11 – Group Dynamics and Consumer Reference Groups Chapter 12 – The Family


Examining Celebrity Expertise and Advertising Effectiveness in India. By: Aggarwal-Gupta, Meenakshi; Dang, Priya Jha. South Asian Journal of Management. Apr-Jun2009, Vol. 16 Issue 2, p61-75. 15p.

Impact of Promotional Campaigns Featuring Kids on the Purchase Behavior of Customers. By: Malik, Garima; Guptha, Ch Abhinav. IUP Journal of Marketing Management. Feb2013, Vol. 12 Issue 1, p43-58. 16p. 9 Charts, 2 Graphs.

ARTICLE PRESENTATION (GROUP 3)

7 External Determinants (D)- OPINION LEADERSHIP & INNOVATION DIFFUSION

Characteristics of Opinion Leadership Innovation diffusion model Adoption v/s. diffusion

Essential Reading

Chapter 17 – Personal Influence and the Opinion Leadership Process Chapter 18 – Diffusion of Innovations

Recommended Reading What were they thinking? Marketing lessons you can learn from products that flopped By Robert McMath

Winning in the Indian Market by Rama Bijapurkar (Wiley & Sons)

New Product Launches and Consumer Insights: A Recounting. By: Rao, S. L. IIMB Management Review (Indian Institute of Management Bangalore). Sep2003, Vol. 15 Issue 3, p103-109. 7p.


8 CASE STUDY : EXPLORING CATEGORY BENEFITS FOR BRAND BUILDING : KAYA & THE BEAUTY CARE MARKET (HBR Case)


9 INDIVIDUAL DETERMINANTS (A) – Motives, Brand Personality

Consumer Motives & Involvement Brand personality V/s User personality & self-image

Essential Reading

Chapter 4 – Consumer Needs and Motivations Chapter 5 – Personality and Consumer Behavior

Recommended Reading

Marketing Metaphoria : What Deep Metaphors Reveal about the Minds ofConsumers by Gerald Zaltman.

Scaring India To Save It. By: Shaftel, David. Bloomberg Businessweek. 10/29/2012, Issue 4302, p18-19. 2p.


10 ASSIGNMENT - Culture & its impact on marketing strategy of a product in India(look at cultural changes, symbols, taboos, subculture, etc.) (GROUP 1)

ASSIGNMENT - Cross cultural behavior for a product category by comparing the Marketing strategies in 3 countries : One in Europe or US, One in Asia / Africa and in India (GROUP 2)

11 INDIVIDUAL DETERMINANTS (B) – INFORMATION PROCESSING & PERCEPTIONS

Schema Selective exposure, attention, distortion & retention Learning Theories

Essential Reading

Chapter 6 : Consumer Perceptions

Recommended Reading: How customers think : Essential Insights into the Mind of the Marketing By Gerald Zaltman


12 ASSIGNMENT - Analyze a product for 2 social classes e.g. Car or refrigerator or Waterpurifier or Retail outlet & show how social class differences impact

reference group, family decision-making & marketing mix strategy using secondary and primary sources. (GROUP 3).

ASSIGNMENT -Take a innovation that has succeeded & analyse the reasons. Take failed innovation & analyse. Also suggest opinion leader for the product. (GROUP 4).

13 INDIVIDUAL DETERMINANTS (C) – ATTITUDE FORMATION & COMMUNICATION

Essential Reading

Chapter 8 – The Nature of Consumer Attitudes Chapter 9 – Consumer Attitude Formation and Change Chapter 10 – Communication and Persuasion.

Recommended Reading: Media Consumption and Information Usage in India. By: Singh, Devinder Pal; Punjabi, Bikramjit. Singapore Management Review. 2011 1st Half, Vol. 33 Issue 1, p111-126. 16p.


14 CONSUMER MAKING PROCESS

Institutional v/s. Consumer Behaviour Consumer Behaviour for FMCG v/s. Consumer Durables v/s. Services

Essential Reading

Chapter 19 – Consumer Decision Making: Choosing and Consulting

Recommended Reading: Defeating Feature Fatigue, by Rust, Roland T.; Thompson, Debora Viana;, Hamilton, Rebecca W., Harvard Business Review; Feb2006, Vol. 84 Issue 2, p98-107, 10p, 2 Illustrations, 1 Graph

Consumers' purchase intention toward foreign brand goods. By: Son, Junghwa; Jin, Byoungho; George, Bobby. Management Decision. 2013, Vol. 51 Issue 2, p434-450. 17p. DOI: 10.1108/00251741311301902.


15 CASE STUDY : XYLYS(HBR Case)


16 CLASS EXERCISE 2 - Advertisement analysis (GROUP 1,2,3,4 & 5)

17 CLASS EXERCISE 2 - Advertisement analysis (GROUP 6,7,8,9 & 10)

18 ASSIGNMENT -Show how marketers are affected by perceptions (perceptions as limiting factors) or are using perceptions (perceptions are used to advantage) in marketing strategy (brand, colours, music, pricing, packaging, reference groups, etc). (secondary,primary research) (GROUP 5)

ASSIGNMENT - Conduct depth interview on 20 consumers on their choice of brand of Cigarettes/ Perfumes & discover the motives & match the brand personality with user personality & image. (GROUP 6)

Recommended Reading:

The 7 Golden Rules. By: Grapentine, Terry H.; Weaver, Dianne Altman. Marketing Management. Jul/Aug2007, Vol. 16 Issue 4, p40-44. 5p. 1 Color Photograph.

19 ASSIGNMENT – Consumer behavior urban VS rural for a product category. (GROUP 7)

ASSIGNMENT – Institutional VS Consumer behavior for a product category. (GROUP 8)

20 ASSIGNMENT - Analyse 2 ads – one a high involvement & another a low involvement-product for the beliefs, attitudes it is trying to supply & communication strategy used. Interview 20 students on campus for belief & attitudes that they have acquired. (GROUP 9)

ASSIGNMENT - Interview consumers who have bought a laptop/AC & delineate the consumer decision – making process and show its impact on marketing strategy. (GROUP 10)

Group Formation:

The Class will be divided into 10 groups of equal number of participants.

-The groups names will be given to the CR before Session 2 & the instructor will allot random numbers to the groups.

Assignment Presentation

Each group will do one assignment (it will be evaluated individually). The assignment will involve presentation by the group in class for 30 minutes followed by 10 minutes Q & A. The group will also present a hard copy of assignment in class to the instructor just before beginning the presentation.

Book / Article Presentation

Each group will present either a gist of a book mentioned in recommended reading or relevant articles on the subject of that class for 20 – 22 minutes followed by 8 – 10 minutes of Q &A. The group will also present a hard copy of assignment in class to the instructor just before beginning the presentation.

Class exercises

-Each group will do 2 class exercises.

The product analysis class exercise will involve looking at a current product

and analyzing the Consumer Factors affecting the design of the product. The group may also suggest additions/ deletions to the product based on vicarious experience or interviews. Each group will present the class exercise for 8 minutes each.

The Advertisement analysis class exercise will involve analyzing Advertisements and understanding what consumer behavioural dimensions both environmental and individual appear in the advertisement. Each group will present the class exercise for 10 minutes followed by 5 minutes of Q & A.

Prepared by Faculty : Prof. Neeta Acharya Signature : _____________

Recommendation by Area Chairperson / Prog. Chairperson: Signature : _____________

Approved By Dean SBM : Signature : _____________

consumer behaviour course outline

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