Consumer Behaviour

(2 Credits)
Facilitator:
Prof. Sanjeev Varshney
Email: sanjeevvarshney@xlri.ac.in
Phone (O): 3168
Introduction:
Consumer Behaviour aims at appreciating, understanding and integrating various concepts from
behavioral sciences (Psychology & Sociology) as applied to marketing so as to design and develop
effective marketing programs. The course aims to take a self & group learning approach, at the end of
which you will be able to critically evaluate various marketing programs from a customers stand
point. The course will introduce various domains along with new paradigms being used to discover the
world of consumer behavior and decision making with regard to the purchase of various products and
services. It will also introduce you to various methods, techniques and tools as well as frameworks to
understand consumer behaviour. Efficacy of these frameworks will be established through examples
and case studies in the class. Final peg in the boat of learning will be through hands-on experience in
understanding consumer behaviour via means of a live project.
Objectives
At the end of the course it is expected that the students will be proficient and knowledgeable about the
various disciplines contribution in understanding buyer behaviour in a holistic manner. They will be
familiar with the advances in consumer research in deciphering buyer motivation, and behaviour (prepurchase, purchase and post purchase) and impact of social and cultural variables on consumption
decisions. Further they will be equipped with frameworks to analyse consumer behaviour and use them
in designing marketing strategies and in enhancing the effectiveness of marketing programmes.
Books & Readings:
For the purpose of this course the following book shall be used as the textbook:

Hawkins, D.I. et al., (2013), Consumer Behaviour: Building Marketing Strategy, 12th edition,
Tata McGraw Hill, New Delhi

Other recommended books for the course are:

Schiffman, L.G. & Kanuk, L.L., (2007), Consumer Behaviour, 9 th edition, Prentice Hall of India
Pvt. Ltd., New Delhi
Loudon, D.L. and Bitta, A.J. D. (2002 ), Consumer Behavior, 4th ed., Tata McGraw Hill, New
Delhi
Blackwell et al.(2006), Consumer Behaviour, Cengage Learning India Pvt. Ltd. New Delhi.
In addition, the CB handout provides many classic articles and fresh research studies & papers.
Additional readings will be provided as separate handouts wherever necessary. You are also expected
to keep yourself abreast of the recent developments in the world of business using the lens of
Marketing & Consumer Behaviour by reading current business magazines.
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Pedagogy:
Pedagogy for this course will be a mix of lectures, group work, research work and class participation
based on reasoning. Class will be divided into 4 groups of 2-3 people each.
To benefit from this rich mix of pedagogical tools, the students are required to go thru the given
readings and cases for each class.
Evaluation:
Your performance will be evaluated on the following components. (However, if some components are
not seen leading to the desired learning effect, mid course correction and alteration would be done)
Case Analysis & Class Participation
Quiz
Project/Term paper
End Term Exam
Total

15%
20%
20%
45%
100%

Details for each of these components are as follows:

Case Analysis & Class participation

Anybody (group) can be asked to present the case facts to class. This will be followed by an open
discussion in the class. Groups and individuals will be evaluated on participation in class and
preparedness for the case in terms of analysis and solutions along with the approach taken for solving
the case.
QuizThere will be one MCQ type quiz after Module III in the course.
Group Project
The project for the class is to be undertaken in group. Please form your own groups by the evening of
first session; by that time, if any student is not yet part of a group, feel free to contact me and I will
randomly assign you to a group. Please note: Disputes between group members should be resolved
internally.
Project Overview As a team of consumer behaviour researchers, your assignment is to study the
consumer behaviour towards purchase of any one product category. The product chosen should be in
B2C domain. It is important that you take the approval of the instructor before going ahead with your
research.
You will have to carry out both secondary data based as well as primary data based study. In order to
provide useful recommendations, you will need an in-depth understanding of the product you are
studying, hence the first task will be to define and explain the product category.
A. Exploratory research: This requires that you conduct intensive net search/observations/qualitative
research and comment upon following things:
a. Attributes used in the purchase of the particular product.
b. Decision making process adopted in the purchase of the product.
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c. Environmental influences on the purchase of product

d. Literature view point on the factors influencing the purchase of the product category.
This will provide you the basis and model to frame your questionnaire for consumer survey. For the
sake of convenience you can keep two competing brands in the product category as the basis.
B. Consumer survey: Based on the particular product you are trying to study, create a consumer
questionnaire focusing on aspects such as consumers beliefs about the product, attitudes towards the
product, and purchase behaviour. This questionnaire should be administered to a relevant sample of
consumers (who are part of the target segment for your product category) the sample size should be
at least 60, and preferably closer to 100.
C. Analysis: After conducting some simple analyses on the collected data (mainly calculating average
scores on the different questions; and perhaps doing some segmentation of different consumer groups),
your group will then be ready to generate general recommendations with regard to the marketing of the
product category. Note: the recommendations should be based on a combination of data (primary &
secondary) and theory. Also analyze the standing of the two competing brands you had chosen on
the findings generated out of your analysis and make recommendations to the respective
companies.
It is advised that you keep working on your project along with course schedule. This will help
you in relating learnings in the class with the reality and will also enable you to generate a better
output from the project.
Alternatively:
You can write a term paper on consumer behavior of any product category. This would be
largely based on literature review and secondary review but authenticity of the sources used
should be established by the student before using any such source and should be clearly
mentioned in the report.
Project Evaluation: Group projects will be evaluated according to the following criteria: careful and
complete research, appropriate use of consumer behavior concepts, logical development of conclusions
and implications, originality, and quality of the written report. The final report should not exceed 15,
double-spaced, typed pages of text.
Time Line
Finalization of the product category and groups:
9 pm on the day of first session
Project Review (a one page write up on product and your approach):
6th session
Final Report:
Date to be announced
Policy on Plagiarism:
All submissions will be compulsory subjected to the evaluation by Plagiarism Software
subscribed by the institute. Any report or submission found to be having more than 40% copied
component will be directly given F in that component and the case will be recommended to the
Academic Council for further disciplinary action. This will apply for both individual and group
submissions. In case of group submissions entire group will be penalized for all such submissions.

Course Outline:
Session plan along with issues to be discussed and readings for each of the session are as follows:
Module I
Session 1:

Introduction
Consumer Behaviour - An Introduction & Key Foundations
Reading: Course Outline & Chapter 1 of Text book.
o Philip Kotler, Behavioural Modes for Analyzing Buyers Journal of Marketing,
Vol. 29(October), 1965, pp 37-45.

Module II

Consumer Decision Process

Session 2:

Determinants of Buyer Behaviour and Framework of Buyer Behaviour

Overview of the Stages in the choice process, factors affecting each stage, and Need
recognition.
Reading: Chapter 3 & 5 of Text Book
o Philip Kotler, Behavioural Modes for Analyzing Buyers Journal of Marketing,
Vol. 29(October), 1965, pp 37-45.
Class Exercise: Decision making Process

Session 3& 4: Information Gathering & Evaluation: Perceptual Mapping & Positioning: Value
perception
Information Search, Defining criterion for choice, mapping perceptions and value
perceptions of consumers. Evaluation rules used by consumers. Mapping attributes,
comparison of brands, positioning options, product and promotions related strategies.
Perceived value components, generating attribute lists, mapping methods.
Reading: Chapter 4 & 10 of Text Book
Analysing Consumer Perceptions by Robert Dolan (2001), HBR, December.
Case 1: Reviving the T8
Session 5:

Consumer Expectations & Perceptions: Satisfaction & Value

Postpurchase Processes, Measuring satisfaction and value, Value/Satisfaction delivery
process and programs. Satisfaction and retention. Quality and satisfaction
Readings: Chapter 3 of Text Book
Oliver, R.L. (1993), Cognitive, Affective and Attribute Bases of the Satisfaction
Response, JCR, 20(December), pp.418-430.
Dowling, G.R. and Uncles, M (1997), Do Customer Loyalty Programs Really
Work, Sloan Management Review, Summer.
Arnould, E.J. & Price, L.L. (1993), River Magic: Extraordinary Experience and the
Extended Service Encounter, JCR, 20(June), 24-45.
Case 2: Colgate-Palmolive:Cleopatra(IMD071

Module III

Individual Determinants of Buyer Behaviour and Internal Processes

Session 6:

Self Concept, Needs & Brand Choice

Need recognition process, gaps in self image and ideal image, why certain attributes are
used for evaluating brands, importance of attributes and need strength, identifying need
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areas. VALS and grouping consumers. Segmentation, targeting and positioning based on
self and brand images.
Readings: Chapter 11 of Text Book
Harold H. Kassarjian (1971), Personality & Consumer Behaviour: A Review,
Journal of Marketing Research, 8, 409-418.
Malhotra. N. (1981), A Scale to Measure Self-Concepts, Person Concepts, and
Product Concepts, JMR, Vol. 18(November), 456-64.
Case 3: Puriteen Cosmetics
Exercise: Mapping Self Concept
Session 7:

Consumer Personality and Consumer Motivation

Need identification and classification. Use of personality, purchase pattern to
understand needs and segment markets.
Readings: Chapter 11 & 8 of Text Book
Jennifer Aaker (1997), Dimensions of Brand Personality, JMR, 34, 347-356
Gardner, M.P. (1985), Mood States and Consumer Behaviour: A Critical Review,
JCR, 12(December), p.281-300.

Session 8:

Learning, Memory, Communication Applications and Behaviour Modification

Different learning methods used by consumers and marketers use of same. Learning
strength, generalization and discrimination, schema formation and change, positioning
and repositioning. Communication objectives and techniques, hierarchy of
communication effects.
Readings: Chapter 9 of Text Book
Nedungadi, P (1990), Recall & Consumer Consideration Set Formation:
Influencing Choice without Brand Evaluations, JCR, 17(Dec), 263-276.
Case 4: Calgene Inc v/s the Pure Food Campaign

Session 9:

Formation, Measurement and Modification of Consumer Attitudes

Concept of attitude, measurement methods, data analysis and identification of problem
areas. Attitude change methods. Market opportunity and promotional activities to assess
markets and change attitudes towards products and brands.
Readings: Chapter 7 of Text Book
Case 5: Attitudes towards recycling of Household waste

Module IV

External Influences on Consumer Behaviour

Session 10:

Family Influences on Buyer Behaviour

Joint Decision making process, influences, roles of different members, needs perceived
and evaluation rules. Factors affecting the need of the family, family life cycle stage and
size.
Readings: Chapter 6 of the Text Book
Case 6: Ranbir Singh Buying Insurance Policy

Session 11&12:Groups, Cultural & Social Influences on Consumer Behaviour

Understanding cultural and sub-cultural influences on individual, norms and their role,
customs, traditions and value system. Homogeneity of needs in social class, product
usage norms and evaluation rules within class. Social Class stratification in India SEC.
Opinion Leaders and Social Influences. In-group versus out-group influences, role of
opinion leaders in diffusion of innovation and in purchase process.
Readings: Chapter 13 of Text Book & Chapter 3& 4 of the Book by Hawkins et.al.
(2007) (Tata McGraw Hill)
Nelson, J.I. (2008), The Sociology of Consumer Behaviour.
Pre Class Assignment: Each group is expected to make presentation on Social
influences on people and changing behavior (To be supported by videos, stories etc.) or
else review of blog or a chain of mails/post discussing group influence on consumer
behaviour.
Session 13:

Consumer Research & Recap

Various methods and techniques of consumer research, reliability and validity,
generalization. New Developments in the field of Consumer Research. Narratives,
Hermeneutics, Appreciative Inquiry, Ethnography, Netnography and Cognitive
Psychology etc. Experimental Research.
Readings: Chapter 2 from Schiffman, L.G. & Kanuk, L.L., (2007), Consumer
Behaviour, 9th edition, Prentice Hall of India Pvt. Ltd., New Delhi
Kozinets, R.V., Kristine de Valck, Wojnicki, A.C. and Wilner, S.J.S. (2010),
Networked Narratives: Understanding WOM Marketing in Online Communities,
Journal of Marketing, Vol(74)- March , 71-89
For Experimental research refer to Baba Shiv article given in Session 3 & 4.