I d nI sit t o F r ig ni a n t ue f oe n Ta e rd Total Credits: 3 Trimester: III (2011-13)

Consumer Behavior
Course Coordinator: Dr. Saikat Banerjee Email: saikat.iift@gmail.com Introduction: In a competitive market field it is a well-accepted norm that every company should try to deliver maximum value to its customer to grab and retain market share. It is possible only by proper understanding of customers needs and wants. But it is not an easy task to map consumer mind and to gauge their evaluation pattern of any purchase decision. For this, continuous observation and interaction with consumers are almost essential. Aim of this course is to examine the critical issues of understanding the consumer (or customer or buyer). It is designed to assist students to understand buying processes of the consumer, and the way in which marketing strategists influence these processes. To make a right balance between theoretical and practical aspects, the course is structured to provide insights into consumer psychology and will also include a substantial scope to study consumer behavior through primary research methods to explain how consumer behavior can be shaped or influenced. The focus of this course is to enhance participants capability to formulate effective customer-oriented marketing strategies by understanding the complexity of consumer decision process and various deciding factors behind this. Prerequisite: Students should have a clear idea about concepts and terminology of Basic Marketing, Organisational Behavior, Business Research Methods and Economics courses for quick and proper understanding of this course. Objectives: The major objective of this course is to equipped participants with analytical and critical thinking skills to acquire a comprehensive understanding of the consumer decision process and factors influencing this decision process from the individual and group standpoint. Upon completion of this course, the student should be able to: 1. Develop a complete understanding of the complexity and variability of consumer behavior. 2. Understand cognitive and behavioral approaches to study consumer behavior 3. Acquire an understanding of decision-making, situational and individual bases for purchase behavior. 4. Conceptualize major issues of consumer behavior to relate and apply those to formulate marketing strategies. 1

Course Policies: Course policies will include lecture, in-class discussions, case studies, readings, assignments, quizzes, individual and/or group research project presentation, End term examination. Lectures will not be based entirely on the prescribed text. In relevant cases, it will go beyond the content of the text to address current developments in the subject area. The lecture will highlight the key concepts of the course and supplement this with the real life examples. Participants are therefore required to go through the appropriate chapters before the schedule session. Text Book: Consumer Behavior: Blackwell, Miniard, Engel; Cengage References & Additional Readings: Consumer Behavior: Building Marketing Strategy, Del I. Hawkins, Roger J. Best & Kenneth A. Coney, McGraw-Hill Shopper, Buyer and Consumer Behaviour: Theory and Marketing Implications, Jay Lindquist, Biztantra Understanding Consumer Behavior: Peter & Olson, Irwin McGraw Hill

Additional Readings: A well-chosen set of readings will be provided to keep informed participants about the current happenings of the field. These readings are divided as per the teaching modules. Participants are required to go through the prescribed readings well in advance.

Experiential Exercises:
1. Class Assignments (in Group): Class assignments are designed to reinforce important concepts from the readings, lecture, and case discussion. They are a significant portion of grade. Throughout the course, students may be required to complete small assignments. Each student is required to work in a group of 4-5 (depending on the class size) to complete the assignment related to consumer behavior topics. There will be written and oral presentation part of the assigned exercise. 2. Presentation of Readings (in Group): A well-chosen set of readings will be provided to keep informed participants about the current happenings of the field. These readings are divided as per the teaching modules. Participants are required to go through the prescribed readings well in advance. Assigned group (a member of 4-5) will be presenting summarized view of the readings in the class. This is a group exercise. Group should enrich the READING WITH SUITABLE INDIAN EXAMPLES for presentation. Participants will be picked-up at random to summarize the learning from the readings in the class. This component will be graded. 3. Observation of Buying Behavior (in group): Every group will be assigned a topic on consumer behavior to conduct a project. Participants will be provided with a list of topics from which they are to select one. Objective of the project is to apply and understand theoretical issues of consumer behavior. The study would involve both secondary and primary research. Based on the findings, the group would recommend possible marketing strategies. Project Deliverables: Consider the assigned topic for your group. Make a visit to places (at least SIX) that deal with that product. You are to observe the manner in which customers (at least TWELVE) make their purchase decision. Involve video observation, coupled with individual in-depth interviews (to know brand selection, use of incentives, shopping behavior, profile etc) as a means of generating valid referential accounts of customer behavior. You are requested to explore followings: a. How does consumer interpret information about marketing stimuli b. Which criteria of Marketing Mix are most important to consumer of this product? c. Describe the buyer's interaction with the product, the environment, and other customers. d. Now, identify and describe the purchasing behavior of what you believe was the "typical purchaser" you observed. e. List name of the place, address, and name of the contact person in which you made your observations.

On the basis of observation and in-depth interview, a QUESTIONNAIRE will be made and primary field survey will be conducted (sample size minimum 150 respondents). Final written report of the 'Observation of Buying Behavior' Project should cover followings: A cover page An executive summary A table of contents Introduction: Clearly refer the theoretical issues of consumer behavior principle being illustrated by the project Industry overview and market segmentation scenario Methodology of the study Findings (include table and charts) Implications and recommendations Appendix: Questionnaire/ video footage of consumer behavior for primary research Bibliography 'Observation of Buying Behavior' project will consist of the following components: o A project proposal o A final written report* of the consumer research study limited to 30 typed 1.5 spaced A-4 size pages (exclusive of tables, charts, diagrams, bibliography) This is a group assignment and all members will be awarded with same grade. In case of any debate about contribution issue, course coordinator is free to ask for peer evaluation where participants will be asked to assess each other. This will help course coordinator to moderate marks for all individuals within the group. Individual group should submit project report within the specified time frame as mentioned in the course outline. For this no request for extension will be granted. Any submission after the due date will incur a late submission penalty in the form of lowering the grade for that particular assessment parameter.

Group 'Observation of Buying Behavior' Project Topic

No. of members per Group: 9-10 GROUP 1 2 3 4 5 6 TOPIC

( To be announced after discussion with the class)

Evaluation Pattern:
Assessment will be a combination of the following elements:

Class participation, Class Assignment & Reading presentation Quizzes (TWO) Group Project End Term

25% 20% 30% 25%

The class participation mark is based on class discussion, attendance and completion of assignments meticulously and on time.

IMPORTANT DATES
Events
Quiz 1 Quiz 2 Group Project Class Assignment & Reading Presentation

Date/ Week of the Event

After Session 6 After Session 12 As per the schedule As per the schedule

Feedback
Within a week Within a week With Final Grade At the time of discussion

Consultation Times: By appointment through e-mail or phone.

TEACHING PLAN (Each Session of 2 hours Duration) Teaching Modules: Modules Introduction to the Course Consumer & Consumerism Dimensions of Consumer Behavior Marketing and Consumer Behavior Decision Making Processes of the Consumer Diffusion of Innovation Buying Decision Process Consumer Decision Rules & Heuristics External Influences on the Consumer Group Membership Influences & Family Decision Making Cultural Influences on Consumer Behavior Social Class & consumer Behavior Internal Dimensions of a Consumer Perception Learning & Memory Motivation The Self, Personality & Lifestyle Attitudes & Attitude Change Persuasive Role of Communication Managing Customers Customer Life Time Value(CLTV) Customer Equity Customer Satisfaction(CSAT) No. of Sessions Two

Three

Four

Four

Two

Detailed Curse Outline: MODULE I: INTRODUCTION TO THE COURSE Session 1-2: The marketer must be able to record the needs, wants and preferences of their customers. Task is to identify specific customer needs and wants to build share of customer. To do so, firms should hold unique proprietary knowledge about their consumers to outperform competition. Key Concepts Text : Consumer, Consumerism, Consumer Marketing and Consumer Behavior : Blackwell (Chapters 1,2) Research Paradigms,

MODULE II: DECISION MAKING PROCESSES OF THE CONSUMER Sessions 3-5: A complex integration between individual dimensions and external influences leads to consumer decision-making. As evaluation pattern of any purchase criteria differs on the basis of consumer type; identification of basic adoption process of target segment is the prime task of any marketer. Key Concepts : Text Industry Input Diffusion of Innovation: Role of Opinion Leaders, Diffusion and Adoption Process Buying Decision Process: levels, Modes of Consumer decision making Consumer Decision Making Model: Structure of the model, Application and Implications

: Blackwell (Chapters 3,4,5,6) 1

MODULE III: EXTERNAL INFLUENCES ON THE CONSUMER Sessions 6-9: External factors play a vital role behind consumer behavior. Consumers are surviving within the society, and influences of members of the society are very prominent to guide thinking process of any individual. Again cultural issues play a pivotal role to shape individual determinants of the consumer. Key Concepts : Group Membership Influences & Family Decision Making: Role of Reference Groups, Consumer Socialization Process, Family Life Cycle and Family Decision Cultural Influences on Consumer Behavior: Culture, Sub Culture, Cross Cultural Issues Social Class & consumer Behavior: Social Class Measurement, Social-Class Mobility, Role of Social Class 7

Text Industry Input

Behind Consumption Pattern : Blackwell (Chapters 11,12,13) 2

MODULE IV: INTERNAL DIMENSIONS OF A CONSUMER Sessions 10-13: Individuals perception, learning, motivation, personality and attitude are guiding forces behind his buying process. These determinants are enduring in nature and individuals response towards any stimuli is a result of these complex dimensions. An error free observation of individual determinants is obvious for any marketer to formulate its marketing mix strategies. Key Concepts : Perception: Elements, Dynamics, Consumer Imagery, Perceptual Mapping Learning & Memory: Measures of Learning, Brand Loyalty & Equity Motivation: Nature of Motivation, Motivation and Consumer Responses The Self, Personality & Lifestyle: Brand Personality, Self image, Lifestyle, Personality & Consumer Behavior Attitudes & Attitude Change: Formation and change, Attitude Scaling, Attribution Theories Persuasive role of Communication: Communication Processes, Persuasion and communication Strategies : Blackwell (Chapters 7,8,9,10) 3

Text Industry Input

MODULE V: MANAGING CUSTOMERS Session 14-15: In a fiercely competitive market wherein gaining and retaining customer is a challenge, marketers are banking upon more on data driven decision making to ensure success possibility of any marketing strategy. Key Concepts : Customer Life Time Value(CLTV), Customer Equity, Customer Satisfaction(CSAT)

Text

: Follow Module specific Readings

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