Ursuline College Accelerated Program

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BU 320 CONSUMER BEHAVIOR

Revised 7/05

Course Description
Consumer behavior is more than buying things, it also embraces the study of how having (or not having) things affects our lives and how our possessions influence the way we feel about ourselves and about each other. The study of consumer behavior is complex and includes the interrelationships between individual consumer and his or her social realities. Therefore, it is important to understand not only why people buy things, but how products, services, and consumption activities contribute to the social world we experience. We must also examine the influence of cultural concerns by studying the experience of consumers from around the world. Todays marketer must also analyze the affect online activity has on the buying process. Both the individual and organizational buyer uses the Internet. With it, consumers may gather information as well as interact directly with other people who live around the block or around the world. However, the Internet also has the potential to exploit consumers by invading privacy, preying on the curiosity of children, or providing false product information. These trends have a profound affect on marketing ethics. This course will examine how marketers attempt to understand consumers, including their influences, behaviors, needs and wants, to successfully market products in an ever-changing marketplace. Understanding the consumer and his or her environment will enable marketers to strategically plan for an organizations short term and long term success.

Course Objectives
1. Define consumer behavior and apply the definition to specific examples of consumer activity. 2. Identify the importance of perception in the consumer buying process. 3. Examine the role of behavioral and cognitive learning behaviors.

4. 5. 6. 7.

Explain the basic motivation process. Understand the self concept and its relationship to marketing practice and strategy. Describe the effect of personality and lifestyle on consumer buying behavior. Identify how attitudes are developed and how information processing is involved in attitude change. 8. Examine the purchasing process and decision rules that might be used to make choices. 9. Discuss how marketers use the purchasing process to segment markets and the differences between in-store and online shopping environments. 10. Analyze the importance of reference groups in influencing behavior and the role of opinion leadership. 11. Differentiate between organizational and household decision making. 12. Apply the concept of social class to the development of tastes and lifestyle. 13. Explain how ethnicity and subculture are related to marketing strategy. 14. Identify age groupings (cohorts) and their effect on consumer buying.

Materials of Instruction
Required text: Solomon, Michael R., Consumer Behavior: Buying, Having, and Being, Prentice Hall, New Jersey, 2004 ISBN: 0-13-140406-7 Recommended Resources: In addition to the text, students will be asked to utilize a wide variety of other resources to aid their understanding of consumer behavior. 1. Use of the Internet: The Internet is rapidly becoming a major source of data on consumer behavior. Internet assignments will be included in each class assignment. A section at the end of each chapter has Internet assignments. Because website names may change, an effort will be made to assure that these website locations remain accessible 2. Case studies: there may be assignments of case study material, some written and some video cases, in order to allow a more real world orientation to the material that will be studied. A methodology for case preparation is included in the course module. 3. Consumer Behavior Challenges: These are homework questions that require deeper analysis and thought about aspects of consumer behavior and how these aspects affect a companys marketing strategies and/or how consumers react to these strategies. 4. Video: Videos may be used in the classroom. These videos illustrate situations in which consumer behavior concepts and theories have been or can be applied to marketing practice. 5. Journal articles and magazines: These may be provided by the instructor and may include articles or advertisements from various journals. 6. The final project: This project applies the concepts and theories learned to a product or service of interest. The project can be done on an individual or group basis.

Preparation and Assignments

The accelerated pace of this course requires the student to assume initiative in mastering the content and completing the assignments before each class session.

The successful class integrates the text concepts and reading with knowledge, insight, and experience of each participant; the result is an enlightened participant and a fulfilling group experience. This module is designed to be the guide and academic standard for the course. Individual facilitators will distribute a course syllabus at the first class that will indicate any additions, deletions, or modifications from this module.

Grading Criteria
Specific assignments (cases, homework, and individual or group projects) and exams/quizzes used to determine the final letter grade will be determined by the individual facilitator and provided in written form in the course syllabus. The final grade is generally based on a variety of assignments or methods of evaluating student performance. The following grading scheme is typical: Class participation/Preparation Homework Assignments Research Project/Group Project Quizzes or Other Assessments 10-15% 20-25% 25-30% 30-40%

Notes to Students: The Case Method

Although there is no prescribed method for approaching case analysis in the UCAP program, there are some guidelines that can be helpful to students. The case method is different from other methods of teaching and it requires students to take a more active role in both case preparation and discussion. The case method places the student in a simulated business environment and substitutes the student in the place of the business manager as the person required to make a set of decisions. When analyzing a case, and subsequently writing it up or discussing it in class, the process of arriving at an answer is very important. The student will develop the ability to identity the problem, determine alternative courses of action, evaluate and choose a solution, put together a plan for implementation and monitoring the decision within the confines of the case information. Students using the case analysis method develop important critical thinking skills. The student will learn how to effectively reason when dealing with specific problems. The development of communication skills is also important, and students will learn to present their analysis in a cogent and convincing manner. In the class discussion, students may find that the opinions of other members of the class differ from their own. The exchange of new ideas and the discussion of points weighed more heavily by other students will enable the student to evaluate the information in new ways, thus enriching the educational experience of all participants. During the class discussion, the facilitator will act more as a moderator than a lecturer, guiding the discussion and calling on students for their opinions. A significant amount of learning will take place by participating in the discussion. The goal is for the students to integrate all their ideas, relating them to the goals of the company, the strengths and weaknesses of the company and its competition, the way consumers buy and the resources available.

Research Project Suggestions

Topics for research projects should be things that interest you, that you would like to learn more about, and/or that you can apply to your life or work. There are many topics that would be acceptable in terms of consumer behavior. The following are suggestions that would allow you to build on the topics covered in class. They are listed in no particular order, and should be used as idea generators for your choice of topics. Relationship Marketing and its Impact on Consumer Behavior Green Marketing and Ecologically-conscious Consumers Product Liability Direct Marketing and Home Shopping Consumer Activism or Consumerism Marketing in Political Campaigns Marketing of Religion Gay Marketing Gray Marketing Ethical Issues that Affect Marketers and Researchers (regarding consumers) The Changing Contemporary Family and Non-traditional Households Sports Marketing Cross-cultural Consumer Behavior and Marketing Practices Credit Misuse and Abuse Consumer Addictions (tobacco, alcohol, gambling, etc.) Business Fraud Against Consumers Business Fraud Against Businesses Business Recalls and Other Crisis Management Policies The Role of Opinion Leaders Institutional or Not-for-profit Marketing Marketing to Tweens and Teens How Marketers create Consumer Wants

Assignments to be completed PRIOR to Class #1

1. Read the course module thoroughly giving particular attention to the case method approach and the research project ideas. 2. Read Chapters 1 through 4 in the textbook 3. Prepare the following: Chapter 1 Assessment #1 Write a 1-2 page paper on a product of interest. Include a general description of the product and indicate what demographic traits of your own most influence your purchase decisions of this product. Determine how a marketer could find out about you in a demographic sense. The facilitator will collect the papers and students may receive a grade for the assignment. The paper should be typed and double-spaced as well as professional in appearance. Chapter 2 Find and bring to class 3 ads that contain symbolism. Identify the different types of signs used in the ads and the product qualities being communicated by each. Be prepared to share your ads with your classmates to discuss the symbols and the meaning the symbols convey. Chapter 3 In written form, answer question 6 in the Consumer Behavior Challenge. Be prepared to discuss your answers in a small group. Also, bring in one product slogan or jingle, for product jingle memory test to be done in class. Try to stump your classmates. Chapter 4 Go to www.benjerry.com. Using the website for Ben & Jerrys Ice Cream, determine their mission. What indications are there about the organizations commitment to the environment? What values does the company try to express? How might this expression help the organization market products? Be prepared to present your findings to the class. Spend some time looking at Table 4.4, pages 140-141 and be prepared to talk about the differences in teen marketing in various countries.

CLASS #1
Objectives: 1. 2. 3. 4. 5. 6. 7. 8. Define consumer behavior and apply specific examples to the purchasing behavior. Discuss how marketers use the variation of roles to their advantage. Differentiate between positivism and interpretivism. Identify the importance of perception in the consumer buying process. Analyze the importance of sensory perception to the marketing of products. Examine the role of behavioral and cognitive learning behaviors. Explore the concept of memory and memory reinforcement. Explain the basic motivation process.

Suggested Class Activities: 1. Facilitator introduces him/herself to the class and explains: a. Course objectives b. Course assignments including how assessment will be made c. Grading criteria d. Research project and case method 2. Facilitator led discussion of material from chapters 1 through 4. 3. Students will share their assignment on demographic traits. 4. Class discussion will take place about the ads containing symbolism. 5. A group discussion of Question 6 from Chapter 3 will focus on the use of populsar music to sell products to consumers. They are to determine why the advertiser chose these songs to be placed in the ad and describe the target market. 6. Students will break into small groups (2-3). Each group will compete in the product jingle memory test. 7. As a group, students will discuss Ben & Jerrys assignment. 8. Students will make up a list of their own most important values (5-10). They should discuss how these values transfer to purchase decisions. 9. The differences internationally in teen marketing will be discussed using Table 4.4 for as a beginning point for the discussion. 10. Video may be viewed and discussed.

Assignments to be completed PRIOR to Class #2

1. 2. 3. Read Chapters 5 through 8. Submit a proposal for the Final Project. This can be oral. Prepare the following:

Chapter 5 Assessment #2 Collect 4-5 advertisements. Provide a short paragraph for each ad describing the primary market for the product and the type of person who would (in your opinion) typically buy the product. Describe the information from self-concepts you used to make your evaluation. Facilitator will collect and grade the assignment. It must be typed, double-spaced and professional in appearance. Chapter 6 Using Table 6.1 as a guide, be prepared to discuss products that are purchased in order to fulfill these major motivations (other than those that are listed). Make a list of your choices. Chapter 7 Keep track of 5 television commercials that use celebrities to endorse brands. What were the products and what types of shows were these aired on? Was the celebrity the right person to use in representing the particular product or service to the public? Be prepared to share your insights. Chapter 8 Be prepared to discuss Consumer Behavior Challenge 1. Also, look at various websites that address the issue of designated drivers, including a not-for-profit organization as well as a company website, such as Anheuser Busch.

CLASS #2
Objectives 1. 2. 3. 4. 5. 6. Understand the self concept and its relationship to marketing practice and strategy. Discuss how consumers are influenced by advertising and how they are what they consume. Describe the effect of personality and lifestyle on consumer buying behavior. Explore the concept of psychographics and how they play a role in marketing decisions. Identify how attitudes are developed and how information processing is involved in attitude change. Analyze the basic communications model and the importance of communication to the consumer buying process.

Suggested Class Activities:

1. 2. 3. 4. 5. 6. Discussion of students proposed research topics for final project. Facilitator led discussion of the assigned chapters. Class will discuss advertising evaluations. Class discussion of Table 6.1 and student lists of products that fulfill major motivations. Students will share insights about their chosen television ads and the use of celebrities. Students will break into groups (approximately 3 people in each group) to discuss the Consumer Behavior Challenge #1. Each group will present their consensus to the class. 7. Video may be shown.

Assignments to be completed PRIOR to Class #3

1. Read chapters 9 through 12. 2. Be prepared to discuss progress on your final project. 3. Prepare the following: Chapter 9 Assessment #3 Write a 2-3 page paper discussing the information you find most valuable when you make a decision to purchase the following: Computer Expensive piece of jewelry A place of worship Something online Be sure to explain the decision applying the concepts from Chapter 9. The paper will be submitted to the facilitator and graded. It must be typed, double-spaced and professional in appearance. Chapter 10 Go to www.gap.com and www.oldnavy.com. Compare the two websites as to online atmosphere. Describe the differences or similarities to the experience you find when you shop in-store. Is there consistency between the approaches used on the Web versus the approaches used in the retail environment? Explain. What improvements would you suggest that either or both organizations make with respect to consumer buying? Be prepared to discuss. Chapter 11 Be prepared to discuss Consumer Behavior Challenge # 3, #9, and #10 in small groups.

Chapter 12 Bring in 3 advertisements that show the changing roles of men and women. Bring in 3 ads that show the traditional roles of men and women. Which ads do you like best? Which do you find more credible? Be prepared to share the ads with the class.

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Class #3
Objectives: 1. Examine the purchasing process and decision rules that might be used to make choices. 2. Illustrate how marketers use knowledge of decision rules to build, implement, or change strategy. 3. Discuss how marketers use the purchasing process to segment markets and the difference between in-store and online shopping environments. 4. Identify the causes of customer satisfaction and dissatisfaction and how marketers attempt to manage customer satisfaction. 5. Analyze the importance of reference groups in influencing behavior and the role of opinion leadership. 6. Differentiate between organizational and household decision making. 7. Examine the influence of sex-roles in the consumer buying process. Suggested Class Activities: 1. 2. 3. 4. 5. Discussion of students proposed research topics for final project. Facilitator led discussion of assigned chapters. Students will discuss their papers about the purchasing process. Class discussion of the Internet assignment. Break into groups (2-3) to discuss Consumer Behavior Challenge questions. Students will reconvene to discuss the groups answers to the case questions. 6. Students will discuss advertisements about sex-role influence. 7. Video may be shown and discussed.

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Assignments to be completed PRIOR to Class #4

1. Read chapters 13 through 15. 2. Be prepared to discuss progress on your final project. 3. Prepare the following: Chapter 13 Assessment # 4 Write a 2-3 page essay about the status symbols that motivate you to purchase? Do you make purchases based on the social class you are in currently or the social class that you aspire to? Pick an example product and give an illustration. Chapter 14 Bring examples of print ads that are aimed at the following cultural groups: a. African American b. Hispanic American c. Asian American d. A religious group Be prepared to discuss similarities and differences in language, models, social situation, use of color, products and/or product usage. Chapter 15 Choose a product geared toward each of the following markets: a. Teen market b. Baby Boomer market c. Senior market d. Generation X Prepare a summary of critical issues that affect a promotional campaign for these products. Be sure to discuss the values that each group holds that may play a role in their consumer buying behavior. Describe the best ways you feel a marketer could reach these markets.

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Class #4 Objectives: 1. Apply the concept of social class to the development of tastes and lifestyle. 2. Discuss some of the obstacles to measuring social class in todays society and ways to get around these obstacles. 3. Explain how ethnicity and subculture are related to marketing. 4. Discuss the ethical issues surrounding the exploitation of a subcultures special characteristics. 5. Identify age groups (cohorts) and their effect on consumer buying. Suggested Class Activities: 1. Instructor should discuss final project concerns with students. 2. Students will discuss their papers about status symbols and social class. 3. Go to any of the following websites to discuss the approaches each uses in attracting affluent customers: a. www.neimanmarcus.com b. www.maxlang.com c. www.porsche.com d. www.sharperimage.com 4. Students will share the print ads that target specific ethnic/racial groups. 5. Students are to discuss the assignment for Chapter 15. They will share their promotional campaigns with the rest of the class. 6. Video may be shown and discussed 7. Go to any of the following websites for continued discussion of age groups: a. www.aarp.org b. www.aetna.com or www.progressive.com c. www.mtv.com d. www.cosmogirl.com and www.cosmomag.com

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Assignments to be completed PRIOR to Class #5 1. 2. 3. 4. Read Chapters 16 and 17. Complete the final project following guidelines provided by facilitator. Prepare oral presentation of the final project. Prepare the following:

Chapter 16 Be prepared to discuss rituals followed by consumers in the following: a. Visiting a shopping mall b. Going to a movie theater c. Going to a restaurant d. Going to a football game Describe how marketers capitalize on these rituals. Chapter 17 Be prepared to discuss the Americanization of foreign cultures. Develop arguments for and against this issue.

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Class #5

Objectives: 1. 2. 3. 4. 5. Provide a comprehensive study of the issues discussed throughout the term Discuss the effect of rituals on consumer buying behavior. Identify modern myths and how marketers use myths to promote their products. Differentiate between the etic and emic perspectives. Discuss the diffusion of western culture through the exportation of western goods and services.

Suggested Class Activities: 1. Students present overviews of their final projects. 2. Class will discuss the effect of rituals on consumer behavior. 3. Students will break into groups to prepare an argument for or against the Americanization of foreign cultures. 4. Students complete course evaluation.

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