AURO UNIVERSITY

(INDIA)
The School of Management & Entrepreneurship
Master of Business Administration

Module Consumer Behaviour

Semester-II Block III (2012-2014)
Module Leader Dr. Rohit Singh

www.aurouniversity.edu.in

Contents
Introduction:..............................................................................................................................................3 Module Objectives:....................................................................................................................................3 Coverage:...................................................................................................................................................4 Learning outcomes:....................................................................................................................................5 Assessment structure:.................................................................................................................................5 Contact hours:............................................................................................................................................5 References:................................................................................................................................................6 Weekly coverage:.......................................................................................................................................7 Assessments (detailed instructions):..........................................................................................................7

1. Individual report (20%):................................................................................................................7 2. Group Exercise (20%):......................................................................................................................8 3. End Term Examination (50%):..........................................................................................................8 4................................................................................................................................................ Cla
ss Presentation (10%)...........................................................................................................................09 Support for your learning.........................................................................................................................10 Expectations.............................................................................................................................................10 Using unfair means in assessments..........................................................................................................10 Week 01: Consumer Behavior - An Introduction.....................................................................................12 Week 02: Internal Influences: Motivation and Personality.......................................................................13 Week 03: Internal Influences: Perception & Learning.............................................................................14 Week 04: Internal Influences: Self Concept and Lifestyle.......................................................................15 Week 05: External Influences: Culture & Social Class............................................................................16 Week 06: External Influences: Reference Groups & Family....................................................................17 Week 07: External Influences: Opinion Leadership & Diffusion of Innovation.......................................18 Week 08: Consumer Decision Process.....................................................................................................19

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 to -

Define consumer behavior in the context of individual as well as institutional buying and
understand its influence on corporate strategy

Analyze marketing environments and segment them on the basis of consumer behavior Understand internal and external/environmental determinants of consumer behavior Use the
information on consumer behavior to select appropriate marketing tools to influence consumer decision making.

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 - Learning Theories & Memories - Definition, Classification, Theories, Characteristics, Memory Systems, Retrieval of Information, Advertising Application;

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 Consumer Behaviour, Lifestyle Marketing.

Learning Outcomes:
After completing this course successfully you will have -

Developed an understanding and appreciation of consumer behavior as an integral part of

marketing effort and strategy.

Identified and understood the impact of the individual or internal influences that
determine consumer behavior.

Identified and understood the implications of the external or environmental determinants

of consumer behavior.

Delineated, dissected and analyzed the buying decision process and map (impact of) the
internal and external determinants to each phase of the process.

Understood the departures between individual and institutional buying behavior. Developed an appreciation and understanding of ethical issues connected to consumer
behavior.

Assessment Structure:
1. 20% - Individual Report 2. 20%- Group Exercise (10%) &Presentation (10%) 3. 50%- End Term Exam 4. 10%-Class Presentation

Contact Hours:

24 hours Lecture 16 hours - Tutorials/Workshops/Seminars

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. East, R. (1997), Consumer Behaviour: Advances and Applications in Marketing, FT
Prentice Hall, UK

7. Kotler, P. and Keller K. (2008), Marketing Management, (International Edition), 13/e Delhi,
India: Pearson Education

8. Hawkins, Del I ; David L, Mothersbaugh and Mookerjee , Amit(2010), Consumer Behavior Building Marketing Strategy , Eleventh Edition , McGraw Hill ( Core Text)

9. Loudon, D. L. and Della, A.J. (1993), Consumer Behavior, 4/e, McGraw Hill, 1993. 10. Peter J. P. and Olson J.C. (2010), Consumer Behavior, 9/e, McGraw Hill. 11. Peter J.P., Olson J.C. and Grunert K. (1999), Consumer Behaviour and Marketing Strategy
(European edition). London: McGraw Hill.

12. Schiffman L.G, L.L. Kanuk & S R Kumar(2010), Consumer Behavior, 10/e. Delhi, India:
Pearson Education

13. Sheth, Jagdish N. Mittal, B. and Newman B.I. (2002) Customer Behavior: A Managerial
Perspective, South-Western College Pub.

14. Solomon, M.R. (2011), Consumer Behavior (International Edition), 9/e. 15. Wilkie, W. L. (1990), Consumer Behavior, John Wiley & Sons.
Note: You must regularly peruse business newspapers and magazines to gather cues for this course.

Weekly Coverage:
S. No. 1 2 3 4 5 6 7 8 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week Coverage Introduction - CB and Marketing Strategy Internal Influences: Personality Motivation and

Internal Influences: Perception & Learning Internal Influences: Self Concept and Lifestyle External Influences: Culture & Social Class External Influences: Reference Groups & Family External Influences: Opinion Leadership & Diffusion of Innovation Consumer Decision Process

Assessments (detailed instructions):

1. 20% - Individual Report 2. 20%- Group Exercise (10%) &Presentation (10%) 3. 50%- End Term Exam 4. 10% - Class Presentation

1. Individual Report (20%):

Topic: Select THREE recent advertisements from the Indian print, television or internet that manifests the usage of any of the internal influence(s) that is part of your course curriculum. Discuss the way in which the particular advertisement tries to influence the consumer behavior with reference to the factors that you have identified. You will present your findings and conclusions during seminar hour. Page Limit: 6 pages of A4 size. (Font size: 12, Times New Roman, single space) Excluding Appendix

Appendix: Include the print advertisement in the appendix. If it's an audio-visual advertisement, then you should write/describe the story line in brief and include in the Appendix. Submission deadline: Week 4 (Class day) 10:00 A.M.

2. Group Exercise (20%):

Topic: Based upon primary and secondary data, 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) Filter cigarettes Motorcycles (Up to 175 cc capacity; Above 175 cc) (any one) Chocolate bars Shampoo Haldiram (Restaurant) Potato Chips Graduate B-Schools

Group Size & Composition of 2 members per group. Group will be defined by the faculty member. Page Limit: Up to 10 pages of A4 size. (Font size: 12, Times New Roman, single space) Submission deadline: Week 7 (Class day) 10:00 Common guidelines for all submissions: A.M.

1. Your work must be original and fully referenced (using Harvard Referencing System). For
Harvard Referencing System guidelines, download the Manual from the VLE. 2. Any kind of plagiarism would lead to severe penalties amounting to a resubmission or marks reduced to zero. 3. Any delay in submission from the deadline given will attract penalties as under:

a. Under 48 hours after the deadline: Marks reduced to a maximum of 50 percent b. Beyond 48 hours of the deadline: Marks reduced to zero

3. End Term Examination (50%):

The End Term Examination will be of 50% weightage and it will comprise of two sections. Section I will be Essay Type Long Answer Questions. Section II will be a Case Study.

Case Study will be given a day prior to an Examination and students can go through it without discussing with the Module teacher. They will come next day prepared and will be issued a same Case Study; questions based on to it will be given and answered during the exam hours. Case study will be a compulsory question for all.

*
.

Class Presentation (10%)

Students are required to give presentation on the topics assigned during the lecture week on the

topics covered. It will be assessed on the following parameters:

Delivery Content of Assigned Topic Art of Making Power Point Presentation Time Management

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 VLE 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-a-vis - submission deadlines; weekly readings and tasks; practice
tests schedule

Regularly log-in to check on the VLE 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 AURO and take care to not to infringe upon the any of the same

Using Unfair Means in Assessment

All assessments are intended to determine your individual skills, abilities, understanding and knowledge. Cheating is defined as obtaining an unfair academic advantage and any of you found using any form of cheating, attempting to cheat or assisting someone else to cheat may be subject to disciplinary action in accordance with the AURO's Disciplinary Procedure. The Institute takes this issue very seriously and you may be expelled or have your degree withheld for cheating in assessments. If you are having difficulty with your work it is important to seek help from your tutor rather than be tempted to use unfair means to gain marks. Do not risk losing your degree and all the work you have done. AURO defines a number of different forms of cheating, although any form of cheating is strictly forbidden. These are:

* Submitting other people's work as your own - either with or without their knowledge. This
includes copying in examinations; using notes or unauthorised materials in examinations

* Impersonation - taking an assessment on behalf of or pretending to be another student, or

allowing another person to take an assessment on your behalf or pretend to be you Plagiarism taking or using another person's thoughts, writings or inventions as your own. To avoid plagiarism you must make sure that quotations, from whatever source, are clearly identified and attributed at the point where they occur in the text of your work by using one of the standard conventions for referencing. It is not enough just to list sources in a bibliography at the end of your essay or dissertation if you do not acknowledge the actual quotations in the text. Neither is it acceptable to change some of the words or the order of sentences if, by failing to acknowledge the source properly, you give the impression that it is your own work

* Collusion - except where written instructions specify that work for assessment may be produced
jointly and submitted as the work of more than one student, you must not collude with others to produce a piece of work jointly, copy or share another student's work or lend your work to another student in the reasonable knowledge that some or all of it will be copied

* Duplication - submitting work for assessment that is the same as, or broadly similar to, work
submitted earlier for academic credit, without acknowledgement of the previous submission

* Falsification - the invention of data, its alteration, it's copying from any other source, or
otherwise obtaining it by unfair means, or inventing quotations and/or references.

Week 01: An Introduction: Consumer Behaviour & Marketing Strategy

Learning Objectives:

To understand what Consumer Behaviour is and the different Types of Consumers To gain an Overview of Consumer Behaviour as a subject matter of study Understand how Consumer Behaviour determines marketing strategy of organizations briefly
revisit market segmentation and discuss how CB connects to this

To understand why marketers do need to understand the wants and needs of different consumer
segments Lectures Outline: Consumer Behaviour: Definition, Importance, Scope, Limitations and its Applications.

Consumer Behaviour and Marketing Strategy Understanding Consumer & Market Segment: Demographic and Psychographics Life Style
Segment: Positioning Products

Customer Value, Satisfaction, Trust and Retention

Readings for Week 01:

Solomon. M.R (2011): Chapter 1 Schiffman and Kanuk (2010): 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, Week 01 Seminar: Overview of the assessments - individual and group assignments Reading for Week-02 Seminar

Larson, Dave (2002) "Building a brand's personality from the customer up," Direct Marketing, (Tuesday, October1, 2002).Available at http://www.allbusiness.com/marketing-advertising/brandingbrand-development/411645-1.html

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: Internal influences: Motivation and Personality

Learning Objectives:

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
Lecture Outline:

* Motivation - Maslow's Hierarchy; McGregor's Psychological Motives * Motivation and Marketing Strategy * Personality Theories (selected) * Use of Personality in Marketing * Behavioural Targeting
Readings for Week 02

Solomon. M.R (2011): Chapter 4 & 6 Schiffman and Kanuk (2010): 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 Week 03 Seminar: Read the Case - "The brave new world of subway advertising, & "The Dental Care Aisle of Confusion", make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this session.

Week 03: Perception & Learning

Learning Objectives:

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

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 Lecture Outline:

5. Exposure, Attention, Interpretation and Memory 6. Perception and Marketing Strategy 7. Nature of Learning * General Characteristics of Learning * Memory Brand Image & Product Positioning
Readings for Week 03:

Solomon. M.R (2011): Chapter 2 & 3 Schiffman and Kanuk (2010): Chapter : 6 & 7 Eva Martinez, 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): Subodh Bhat, Srinivas K. Reddy, (1998) "Symbolic and functional positioning of brands", Journal
of Consumer Marketing, Vol. 15 Is: 1, pp.32 - 43

Week 03 Seminar:

Case discussion - "The brave new world of subway advertising" as declared in Week 02. Case discussion - "The Dental Care Aisle of Confusion", as declared in Week 02
Task for Week 04 Seminar: Read the case - "BURNOL" & "The Magic of IPOD make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this session.

Week 03: Perception & Learning

Week 04: Internal Influences: Self Concept and Lifestyle

Learning Objectives:

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
Lecture Outline:

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
Readings for Week 04:

Solomon. M.R (2011): Chapter 5 & 6 Schiffman and Kanuk (2010): Chapter: 10 J. M. Sirgy (1982). 'Self-Concept in Consumer Behavior: A Critical Review'. The Journal of
Consumer Research 9(3):287-300

Week 04 Seminar:

Discussion on Case - "BURNOL" Case discussion - "The Magic of IPOD", as declared in Week 03
Week 05 Seminar:

Week 05: External influences: Culture & Social Class

Read the case - "Cola Crusade Comes to Africa" make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this sessionLearning Objectives:

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 To Understand the influence of Social Class on Marketing Strategy
Lecture Outlines:

Concept of Culture Variations in Cultural Values Cultural Variations in Non - Verbal Communications
Cross Cultural Marketing Strategy

Social Class & its Influence on Marketing Strategy

Readings for Week 05:

Solomon. M.R (2011): Chapter 12 & 15 Schiffman and Kanuk (2010): Chapter: 10 & 11 McCracken, Grant C. 1986 "Culture and Consumption: A Theoretical Account of the Structure 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 05 Seminar: Case discussion - "Cola Crusade Comes to Africa", as declared in Week 04 Task for Week 06 Seminar: Read the case - "Camry goes interactive to attract black women" make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this session. and Movement of the Cultural Meaning of Consumer Goods," Journal of Consumer Research.

Week 06: External Influences: Reference Groups & Family

Learning Objectives:

To Understand the Nature and Importance of Reference Group influence on the consumption
process

To Understand the Marketing Strategies based on Reference Group Influences 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
Lecture Outline:

Nature and Types of Groups Reference Group Influence on the consumption process marketing strategies based on reference
groups The Household Life Cycle

Marketing Strategy based on the Household Life Cycle Family Decision Making Marketing Strategy and Family Decision Making
Readings for Week 06:

Solomon. M.R (2011): Chapter 10 & 11. Schiffman and Kanuk (2010): Chapters: 10 & 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. Research, 6(1), 12-22. Retrieved from Academic Search Complete database. Week 06 Seminar: Case discussion - "Camry goes interactive to attract black women", as declared in Week 05 Task for Week 07 Seminar: Read the case - "Purchase of a Microwave Oven" make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this session Read the case - "Give the Kid a Cell phone" make your notes and come prepared for discussion. This is a group activity (2 members to a group) and you should be seated as groups during this session

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

Week 07: External Influences: Opinion Leadership & Diffusion of Innovation

Learning Objectives:

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
Lecture Outlines:

* Communications within Groups and Opinion Leadership * Situations in which Opinion Leadership occurs * Opinion Leaders characteristics * Marketing Strategy and Opinion Leadership * Diffusion of Innovation

Readings for Week 07:

Solomon. M.R (2011): Chapter 10 & 16 Schiffman and Kanuk (2010): Chapters: 13 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 07 Seminar: Case discussion - "Give the Kid a Cell Phone", as declared in Week 06 Case Discussion on "Purchase of a Microwave Oven" as declared in Week 06 Task for Week 08 Seminar:

Read the case - "Maruti 800 Passenger Car" make your notes and come prepared for discussion.
This is a group activity (2 members to a group) and you should be seated as groups during this session.

Read the case - "Nescafe Instant Coffee" make your notes and come prepared for discussion. This
is a group activity (2 members to a group) and you should be seated as groups during this session.

Week 08: Consumer Decision Process

Learning Objectives:

To understand types of situation and 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 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 To know the processes that occur after the purchase, to know how consumers actually use and dispose of a product

Lectures Outline:

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 Nature of Information Search - Type of Information , Sources of Information Marketing strategies based on Information Search Patterns 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 Disposition

Readings for Week 08:

Solomon. M.R (2011): Chapter 8 & 9 Schiffman and Kanuk (2010): Chapter: 14 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.

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 08 Seminar Case discussion - "Maruti 800 Passenger Car", Case discussion - "Nescafe Instant Coffee",