GMSI405 Consumer Behavior Final

GMSI405: Consumer Behavior
Semester-III

Module Handbook: 2014

PGDBM

Module Leader: Vipin Agrawal
Email: vipin@gdgoenka.ac.in
Phone Extn. 3142
GDGWI Lancaster University

Contents
Introduction: .................................................................................................................................... 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 Behavior An 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

2 | GMSI405: August 2014

CONSUMER BEHAVIOR

Introduction:

All organizations, whether classified as for-profit or not-for-profit entities, have an objective of
creating 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.


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
attitudes definition 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, marketing
implications

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


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 hours Lecture
15 hours Tutorials/Workshops/Seminars


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 Global
Marketing 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.


Weekly coverage:

Week Coverage

1 Week 1 Introduction CB 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


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 the
psychological 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


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 or
marks reduced to zero.

3. End Term Examination (30%):

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

Note: The complete assessment schedule will be notified separately.


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 of

intended learning outcomes, secured by

discriminating command of a comprehensive

range of relevant materials and analyses, and Distinction

by deployment of considered judgement

relating to key issues, concepts and

procedures

Pass Good 60-69 Conclusive attainment of virtually all

intended learning outcomes, clearly

grounded on a close familiarity with a wide
Merit

range of supporting evidence, constructively

utilised to reveal appreciable depth of

understanding

Pass Satisfactory 50-59 Clear attainment of most of the intended

learning outcomes, some more securely

grasped 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 specific

fail intended learning outcomes, with mixed

evidence as to the depth of knowledge and

weak deployment of arguments or deficient

manipulations

Fail Fail 30-39 Attainment of intended learning outcomes

appreciably deficient in critical respects,

lacking secure basis in relevant factual and

analytical dimensions
Fail

Fail Poor fail 20-29 Attainment of intended learning outcomes

appreciably deficient in respect of nearly all

intended learning outcomes, with irrelevant

use of materials and incomplete and flawed

explanation

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

fail intended learning outcomes, such treatment

of the subject as is in evidence being

directionless and fragmentary


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


Week 01: Consumer Behavior An Introduction

Learning 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 Outline 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 2
nd
June 2010.

Week 01 Seminar:

Overview of the assessments individual and group assignments

Task for 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.


Week 02: Motivation, Involvement and Personality


To delve into the nature and concept of motivation and personality as determinants of
human behavior
To understand the role of motivation and personality in shaping consumption behavior
To understand how marketing strategy gets affected by these variables


Motivation Maslows hierarchy; McGuires psychological motives
Dimensions of Involvement and its marketing implications
Motivation and marketing strategy
Personality theories (selected)
Use of personality in marketing


Schiffman and Kanuk (2009): Chapters: 4 ,5
Jennifer L Aaker (1997) Dimensions of brand personality, JMR, Journal of Marketing
Research; Aug 1997; 34, 3; ABI/INFORM Global pg. 347

Week 02 Seminar:

Discussion on Building a brand's personality, based on the paper by Larsen (2002)

Task for Week03 Seminar:

Read the case - TBC (to be communicated)


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 behavior
and 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.39 50
Moore, T. E. "Subliminal Perception: Facts and Fallacies." Skeptical Inquirer 16, (1992):
273-281

Week 03 Seminar:

Case discussion - TBC

Task for Week 04 Seminar:

Read the case TBC


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.32 43

Week 04 Seminar:

Case discussion TBC


Read the case TBC


Week 05: Consumer Attitude


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


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.27 35

Week 05 Seminar:



Read the case TBC


Week 06: Self Concept and Lifestyle


To understand the nature of the self-concept, how it is measured and used to position
products
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 discussion TBC


Read the case TBC


Week 07: Culture and subculture


To understand what culture is, and why and how it is influential in terms of consumer
behavior
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 Non Verbal communications
Cross cultural 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.367 378

Week 07 Seminar:

. Case discussion TBC


Read the case TBC

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


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 consumption
process
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 discussion TBC


Read the case TBC


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 discussion TBC


Read the case TBC


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 discussion TBC


Read the case TBC


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 discussion TBC


Read the case TBC



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, consumer
characteristics and outlet choice, in store 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 case TBC



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 Study TBC



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.)


Week 15: Revision


Revision

Week 15 Seminar:

Group exercise presentations.


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