Consumer Behavior School of Business Management , NMIMS FT MBA II Year Trimester IV 2013-2014 Instructor: Prof Neeta Acharya neeta@nmims.

edu 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 1) 2) 3) 4) 5) Final exam 45% Assignments with presentation 25% (Individual evaluation) 2 Class exercises 10% (Group evaluation) Book /Article Presentation 10%(Group Evaluation) Case Analysis 10% (Group evaluation) Marks out of 100. Ext. 5854 Email:

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)

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 1&2 TOPIC
CONSUMER BEHAVIOUR INTRODUCTION Why Consumer Behavior is important Defining Consumer Behavior 70s 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.

Exercise 1 : PRODUCT ANALYSIS (All groups)

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

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, p3134. 4p. 1 Illustration. BOOK/ARTICLE PRESENTATION (GROUP 1)

External Determinants CONSUMER BEHAVIOR

(B)-

CROSS

CULTURAL

- Hofstedes dimensions Essential Reading Chapter 16 International \ Perspective. Cross Cultural Consumer Behavior: An

Recommended Reading : The Culture Code : An Ingenious way to understand why People Around the world live & buy as they do by (Clotaire Rapaille) BOOK/ARTICLE PRESENTATION (GROUP 2)

External Determinants GROUP & FAMILY

(C) - SOCIAL CLASS, REFERENCE v/s income

Socio economic class segmentation 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 Recommended Reading : 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)

External Determinants INNOVATION DIFFUSION

(D)-

OPINION

LEADERSHIP

&

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. BOOK/ARTICLE PRESENTATION (GROUP 4)

CASE STUDY : EXPLORING CATEGORY BENEFITS FOR BRAND BUILDING : KAYA & THE BEAUTY CARE MARKET (HBR Case) BOOK/ARTICLE PRESENTATION (GROUP 5)

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 of Consumers by Gerald Zaltman. Scaring India To Save It. By: Shaftel, David. Bloomberg Businessweek. 10/29/2012, Issue 4302, p18-19. 2p. BOOK/ARTICLE PRESENTATION (GROUP 6)

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 PROCESSING & PERCEPTIONS

(B)

INFORMATION

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 BOOK/ARTICLE PRESENTATION (GROUP 7)

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.

ARTICLE PRESENTATION (GROUP 8)

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.

ARTICLE PRESENTATION (GROUP 9)

15

CASE STUDY : XYLYS(HBR Case) BOOK/ARTICLE PRESENTATION (GROUP 10)

16

CLASS EXERCISE 2 - Advertisement analysis (GROUP 1,2,3,4 & 5) CLASS EXERCISE 2 - Advertisement analysis (GROUP 6,7,8,9 & 10) 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.

17

18

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