INSTITUTE of BUSINESS MANAGEMENT

College of Business Management

Department of Marketing

COURSE OUTLINE
Consumer Behavior

University: Institute of Business Management Faculty: Marium Mateen Khan

Course specifications

Program(s) on which the course is given: BBA (H)/MBA

Major or minor elements of program: BBA (H)/MBA
Department offering the program: College of Business Management
Department offering the course: Marketing
Academic Year/Level: Level 2 (semester 4)
Date of upgraded specification approval: May, 2018

A. Basic Information

Title: Consumer Behavior Code: MKT 509

Tutorial: 2 Practical: 1 Total: 3
Pre-requisite

B. Professional Information
1. Overall aims of course

This is core marketing course. The tenets of the course form the basis to all marketing elective
courses, making it a vital aspect of marketing. The course begins with providing an orientation
on the concept of consumer behavior and its evolution with changing times with a focus on
emerging segmentation and targeting. The course progresses on analyzing the consumer as an
individual and discusses theories and marketing applications based on motivation, personality,
learning, attitude and communication. After the student has acquired a comprehensive view on
the individual psychology the course advances in understanding how the social and cultural
settings have an effect on consumer decision making and dynamics of group dynamics. The
course concludes by intensively analyzing consumer decision making and the ethical and social
responsibility of marketers.

Page 1 of 23
2. Intended learning outcomes of course (ILOs)

a. Knowledge and understanding:

 The background and tools for a comprehensive understanding of consumer behavior
principles
 Study the internal dynamics of consumers and analyzing the ‘invisible self’ of the
consumer and how information is registered, absorbed and deciphered
 Study group influences in the form of reference groups, families, cultures and subcultures
help molds the consumers mind for product and brand choices
 Learn about dynamic process of consumer decision and the ethical and social
considerations that impact it.
 Students will examine the concept of innovativeness in the context of the buyer and
marketing of new products
 Appreciate the aims of the consumerism movement and marketing's responsibility to the
consumer and society

b. Intellectual skills:

Students will develop the ability to understand what entails consumer decision-making
in terms of product and brands. This process will be begin by evaluating how
consumers are segmented based not only geo-demographics but also psychological and
behavioral frameworks moving on to assessment of the consumer self interlinked with
group dynamics and eventually and influencing final decision making, consumption
and disposal.

c. Professional and practical skills:

Students will be able to apply the marketing and consumer behavior concepts in
evaluating a research based term project.

d. General and transferable skills:

Group working. Problem solving.

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Contents:

Topic Tutorial/

No. of hours
Practical/
Case

Lecture
Session

Studies/
Videos
etc.
Week 1 1.5 0.75 0.75
1
Class and course introductions.

Consumer behavior is interdisciplinary; that is, it is based on

concepts and theories about people that have been developed by
scientists in such diverse disciplines as psychology, sociology, social
psychology, cultural anthropology, and economics.
2 Consumer Behavior: Meeting Changes and Challenges 1.5 1.0 0.5

Orientation on the study of Consumer behavior and its

interdisciplinary linkages. The study of consumer behavior enables
marketers to understand and predict consumer behavior in the
marketplace; it is concerned not only with what consumers buy but
also with why, when, where, and how they buy it.
Skilled marketers make the customer the core of the company’s
organizational culture and ensure that all employees view any
exchange with a customer as part of a customer relationship, not as a
transaction.

Learning Outcomes

1. Understand what consumer behavior is and the different types of

consumers.
2. Understand the relationship between consumer behavior and the
marketing concept, the societal marketing concept, as well as
segmentation, targeting, and positioning.
3. Understand the relationship between consumer behavior and
customer value, satisfaction, trust and retention.

Pedagogy

 Lecture discussion
 Article review

Teaching Material:
Book Chapter: Chapter 1, Technology Driven Consumer Behavior
Article 1: What we Really know about Consumer Behavior? (John

Page 3 of 23
 Deighton, 2011, HBR)
Article 2: Kick Ass Customer Service (Matthew Dickson, Lara
Ponomareff, Scott Turner, & Rick Delisi, 2017, HBR)
Article 3: Stop Trying to Delight Your Customers (Matthew Dixon;
Karen Freeman; Nicholas Toman, 2018, HBR)
Article 4: Changing Consumer Behavior a Challenge For
Sustainable Business Growth, (Sunanda Sharma & Dr. Kashmiri Lal,
2012)
Scenario: What Panasonic Learned in China (Toshiro Wakayama;
Junjiro Shintaku; Tomofumi Amano, 1 Dec, 2012, HBR)
Video: What Consumers Want, TED Talk
(https://www.ted.com/talks/joseph_pine_on_what_consumers_want)
3 Week 2 1.5 1.0 0.5
Consumer Research

The field of consumer research developed in part as an extension of

the applied field of marketing research and as part of the scholarly
interests of academicians pursuing a more basic understanding of
consumers. In both cases, the goals have been to enlarge the
understanding of consumers.
Consumer research can also be divided in terms of a qualitative or
quantitative perspective.
The consumer research process begins with secondary data
collection and goes on to develop the primary research plan focusing
on research instruments, sampling and data collection and
interpretation

Learning Outcomes

1. Highlight the steps in the consumer research process.

2. Emphasize on setting specific research objectives as the first step
in the design of a consumer research project.
3. Appreciate the purposes and types of secondary consumer
research that is available for making decisions or planning future
consumer research.
4. Instill specific features and applications of different research
methods to be carried out in consumer research studies.
5. Follow how each element of the consumer research process adds
to the overall outcome of the research study.

Pedagogy

 Lecture discussion on Consumer Research

 Student discussion with the instructor as the moderator
 Case led Study

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 Teaching Material:
Book Chapter: Chapter 15, Consumer Research
Article 1: Research: Consumers Prefer Products Created by Mistake
(Daniella Kupor; Rosanna K Smith; Taly Reich, 20 Sept, 2017,
HBR)
Article 2: Research: Missing Product Information Doesn't Bother
Consumers as Much as It Should (Daniel Read & Sunita Sah, 28
Sept, 2017 , HBR)
Case Study 1: KITKAT in Japan: Sparking a Cultural Revolution
(Philip Sugai & Adrian Sossna, 14 July, 2017, Ivey Publishing)
Scenario 1: Listening begins at Home (James R. Stengel, Andrea L.
Dixon, & Chris T. Allen, 1 Nov, 2003, HBR)
Scenario 2: Advertising Testing among Hispanics
Video: Consumer Psychology and Research towards Consumer
Buying Behavior: https://youtu.be/aGfdubLAtY8
4 Segmentation and Targeting 1.5 1.0 0.5

Market segmentation is the opposite of mass marketing and is part of

the segmentation, targeting, and positioning framework.
Segmentation is defined as the process of dividing a potential market
into distinct subsets of consumers with a common need or
characteristic and selecting one or more segments to target with a
specially designed marketing mix. Besides aiding in the development
of new products, segmentation studies assist in the redesign and
repositioning of existing products, in the creation of promotional
appeals, and the selection of advertising media.

In order to be a viable target market, a segment must be identifiable

(by some criteria such as demographics, lifestyles, or others),
sizeable (i.e., large enough to be profitable), stable or growing,
accessible (i.e., can be reached economically), and congruent with
the marketer’s objectives and resources.

Learning Outcomes

1. Understand the Criteria for Targeting Selected Segments

Effectively.
2. Appreciate the Bases for Segmenting Consumers.
3. Understand the link between Segmentation and Strategic
Targeting Are Carried Out

Pedagogy

 Lecture discussion on the topic on Market segmentation and

Strategic Targeting
 Analysis of Print Advertisements

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 Teaching Material:
Book Chapter: Chapter 2, Segmentation, Targeting and Positioning
Article 1: Rediscovering Market Segmentation (Daniel Yankelovich
& David Meer, 1 Feb, 2006, HBR)
Article 2: Choosing the Right Customer (Robert Simons, March
2014, HBR)
Scenario: A Hair-Raising Global tracking Study
Case Study 1: Kraft Foods Canada: Targeting the Millennials
(Allison Johnson & Ramasastry Chandrasekhar, 6 June, 2016, Ivey
Publishing)
Case Study 2: Paytm: Targeting More Pockets for Its Mobile Wallet
(Sandeep Puri, Shivani Upadhyay, Siddharth Agarwal & Debasish
Chatterjee, 22 Feb, 2016 ,Ivey Publishing)
Advertisements: Current Print & Video ads selected by the faculty
5 Week 3 1.5 1.0 0.5
Motivation and Defense Mechanism

Motivation is the driving force within individuals that impels them to

action. This driving force is produced by a state of uncomfortable
tension, which exists as the result of an unsatisfied need. All
individuals have needs, wants, and desires. The individual’s
subconscious drive to reduce need-induced tensions results in
behavior that he or she anticipates will satisfy needs and thus bring
about a more comfortable internal state. Motivation can be either
positive or negative.
All behavior is goal oriented. Goals are the sought-after results of
motivated behavior. The form or direction that behavior takes—the
goal that is selected—is a result of thinking processes (cognition)
and previous learning (e.g., experience).
Failure to achieve a goal often results in feelings of frustration.
Individuals react to frustration in two ways: “fight” or “flight.”

Learning Outcomes

1. Understand the types of human needs and motives and the

meaning of goals.
2. Understand the dynamics of motivation, arousal of needs, setting
of goals, and interrelationship between needs and goals.
3. Learn about several systems of needs developed by researchers.
4. Understand how human motives are studied and measured.
5. Understand how people deal with unfulfilled motives using
defense mechanism

Pedagogy

 Lecture discussion on the topic on Motivation

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  Critical evaluation of Advertisements
 Demonstrate application of consumer motivation strategies
 Video on Motivation by Gail Tom
 Handout on Marketing Strategies and Maslow’s hierarchy of
needs

Teaching Material:
Book Chapter: Chapter 3 Consumer Motivation and Personality
Article 1: The Elements of Value (Eric Almquist, John Senior &
Nicholas Bloch, 1 Sept, 2016, HBR )
Video 1: Delving Inside the Consumer's Mind (Martin Lindstrom,
World of Business Ideas)
(https://www.youtube.com/watch?v=fAAihnJEbDE)
Video 2: Motivation by Gail Tom :https://youtu.be/fjdVCxn67Yc
Video 3: Consumer Decision Making Process:
https://youtu.be/V6g03FsPF-k
6 Experiential Exercise or Case Study 1.5 0.5 1.0

Cafe Coffee Day: Brand Transformation through Repositioning

(Ashita Aggarwal Sharma & Lulu Raghavan, 19 August, 2016,
Ivey Publishing)

Or

TiVO in 2002: Consumer Behavior (Harvard Business school, 26

July, 2002)

Learning Outcomes
1. To involve the students physically and emotionally in the
application of Consumer Behavior so far covered in the
course
Pedagogy
 An experiential exercise that the students work in groups for 35-
45 mins.
 Random group presentations, 30 mins.
 A debriefing and concluding session by the instructor, 15 mins.
OR
A 90 mins case study and discussion, illustrating the application of
concepts discussed so far
7 Week 4 1.5 1.0 0.5
Personality

Personality can be described as the psychological characteristics that

both determine and reflect how a person responds to his or her
environment. Although personality tends to be consistent and
enduring, it may change abruptly in response to major life events, as

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well as gradually over time.
Three theories of personality are prominent in the study of consumer
behavior: psychoanalytic theory, neo-Freudian theory, and trait
theory. Marketers are very interested in the link between personality
and consumer behavior.
Each individual has a perceived self-image (or multiple self-images)
as a certain kind of person with certain traits, habits, possessions,
relationships, and ways of behaving. Consumers frequently attempt
to preserve, enhance, alter, or extend their self-images by purchasing
products or services and shopping at stores believed to be consistent
with the relevant self-image(s) and by avoiding products and stores
they perceive are not. With the growth of the Internet, there appear
to be emerging virtual selves or virtual personalities. Consumer
experiences with chat rooms sometimes provide an opportunity to
explore new or alternative identities.

Learning Outcomes

1. Understand how personality reflects consumers’ inner

differences.
2. Application how Freudian, neo-Freudian, and trait theories each
explain the influence of personality on consumers’ attitudes and
behavior.
3. Understand how personality reflects consumers’ responses to
product and marketing messages.
4. Understand how marketers seek to create brand personalities-like
traits.
5. Appreciate how the products and services that consumers use
enhance their self-images.

Pedagogy

 Lecture discussion on the topic Personality and Consumer

Behavior
 Critical analysis of TVC’s and Print ads
 Demonstrative Video by Gail Tom

Teaching Material:
Book Chapter: Chapter 3 Consumer Motivation and Personality
Article 1: What Marketers Should Know About Personality-Based
Marketing (Christopher Graves & Sandra Matz, 2 May, 2018, HBR)
Article 2: Stop Trying to Delight your Customers (Matthew Dixon,
Karen Freeman & Nicholas Toman, 2010, HBR)
Article 3: How To Define Your Brand Personality (Fabian
Geyrhalter, 18 June, 2015, FINIEN)

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 Article 4: Building a Brand Personality That Resonates - Why and
How to Do It (Aaron Agius, 31 March, 2016, Louder Online)
Video 1: Freud's Psychoanalytic Theory on Instincts: Motivation,
Personality and Development: https://youtu.be/7vFf5CS27-Y
Video 2: Character Profiles/personalities of M&M Characters:
https://youtu.be/vCayoRqsUZ8
Video 3: Anthromorphism Local example:
https://youtu.be/WRuV_GhN06k
8- Week 4 and 5 3.0 2.0 1.0
9 Consumer Perception

Perception is the process by which individuals select, organize, and

interpret stimuli into a meaningful and coherent picture of the world.
Perception has strategy implications for marketers because
consumers make decisions based on what they perceive rather than
on the basis of objective reality.
Consumers perceive most sensory stimuli above the level of their
conscious awareness; however, weak stimuli can be perceived below
the level of conscious awareness (i.e., subliminally).
Consumers’ selections of stimuli from the environment are based on
the interaction of their expectations and motives with the stimulus
itself.
Just as individuals have perceived images of themselves, they also
have perceived images of products and brands. The perceived image
of a product or service (how it is positioned) is probably more
important to its ultimate success than are its actual physical
characteristics.

Learning Outcomes

1. Understand the sensory dynamics of perception and its elements

2. Appreciate the components of consumer imagery and their
strategic applications
3. Understand positioning of products and services
4. Understand how Brand ambassadors are chosen
5. Deduce how consumer imagery is applied in setting up a retail
store
Pedagogy

 Lecture discussion on Consumer Perception

 Discussion on perceptions created by brands selling bottled water
 Evaluation of ads in light of perception
 Movie clips
 Video by Gail Tom

Page 9 of 23
 Teaching Material:
Book Chapter: Chapter 4, Consumer Perception
Article 1: What Brands Need To Understand About Consumer
Perception (Alfredo Fraile, Sept, 2017, Brand Quarterly)
Article 2: Understanding and Managing Customer Perception
(Dagmar Recklies, 28 January, 2015)
Article 3: Inside the Mind of the Chinese Consumer (William
McEwen, Xiaoguang Fang, Chuanping Zhang & Richard
Burkholder, 2006, HBR)
Video 1: Perception: https://youtu.be/PnGaKYUAtQw
Video 2: Thresholds: https://youtu.be/O_nY1TM2RZM
Video 3: Just Noticeable Difference and its application:
https://youtu.be/bIOdygap24s
10 Week 5 1.5 0.5 1.0
Experiential Exercise or Case Study

Case: Dove Evolution of a Brand (Harvard Business School, 25

March, 2008)

Learning Outcomes
2. To involve the students physically and emotionally in the
application of Consumer Behavior so far covered in the
course
Pedagogy
 An experiential exercise that the students work in groups for 35-
45 mins.
 Random group presentations, 30 mins.
 A debriefing and concluding session by the instructor, 15 mins.
OR
A 90 mins case study and discussion, illustrating the application of
concepts discussed so far.
11 Week 6 1.0

12 1st Hourly Exam

Students will be tested on their conceptual and applicative grasp of
the fundamentals of consumer behavior and the individual self-
taught so far. The one hour test may be in two parts: 20 minutes for
multiple choice type testing and 40 minutes for two applicative tests.
13 Week 7 1.5 1.0 0.5

Consumer Learning

Consumer learning is the process by which individuals acquire the

purchase and consumption knowledge and experience they apply to
future related behavior. Although some learning is intentional; much
learning is incidental. Basic elements that contribute to an

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 understanding of learning are motivation (drives), cues, response,
and reinforcement.
There are two schools of thought as to how individuals learn—
behavioral theories and cognitive theories. Both contribute to an
understanding of consumer behavior.
Measures of consumer learning include recall and recognition tests
and attitudinal and behavioral measures of brand loyalty. Brand
loyalty consists of both attitudes and actual behaviors toward a
brand, as both must be measured. For marketers, the major reasons
for understanding how consumers learn are to teach them that their
brand is best and to develop brand loyalty.. Brand equity refers to the
inherent value a brand name has in the marketplace.

Learning Outcomes

1. Understand the process and four elements of consumer learning.

2. Explore with the class the study behavioral learning and
understand its applications to consumption behavior.
3. Evaluate information processing and cognitive learning and
understand their strategic applications to consumer behavior
4. Appreciate consumer involvement and passive learning and
understand their strategic affects on consumer behavior.
5. Gain insight on how consumer learning and its results are
measured.

Pedagogy

 Lecture discussion on Consumer Learning

 PowerPoint presentation
 TVC’s and Print ads
 Video by Gail Tom

Teaching Material:
Book Chapter: Chapter 5, Consumer Learning
Article: Keep it, Shave it, cut it: A Closer look into Consumers'
Video viewing Behavior (Kelly School of Business, 2018)
Article 2: What We’re Following in Consumer Behavior (1 October,
2010, HBR)
Article 3: To Keep Your Customers, Keep It Simple (Patrick
Spenner & Karen Freeman, May, 2012, HBR)
14 Week 7 and 8 3.0 2.0 1.0
-
15 Consumer Attitude Formation and Change

An attitude is a learned predisposition to behave in a consistently

favorable or unfavorable way with respect to a given object (e.g., a

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product category, a brand, a service, an advertisement, a Web site, or
a retail establishment). Each property of this definition is critical to
understanding why and how attitudes are relevant in consumer
behavior and marketing.
Of considerable importance in understanding the role of attitudes in
consumer behavior is an appreciation of the structure and
composition of an attitude. Four broad categories of attitude models
have received attention: the tricomponent attitude model, multi-
attribute attitude models, trying-to-consume attitude model, and
attitude-toward-the-ad model.
How consumer attitudes are formed and how they are changed are
two closely related issues of considerable concern to marketing
practitioners. When it comes to attitude formation, it is useful to
remember that attitudes are learned and that different learning
theories provide unique insights as to how attitudes initially may be
formed
These same factors also have an impact on attitude change; that is,
attitude changes are learned, and they are influenced by personal
experiences and the information gained from various personal and
impersonal sources. The consumer’s own personality affects both the
acceptance and the speed with which attitudes are likely to be
altered.

Learning Outcomes

1. Understand what attitudes are, how they are learned, as well as

their nature and characteristics.
2. Understand the composition and scope of selected models of
attitudes.
3. Understand how experience leads to the initial formation of
consumption-related attitudes.
4. Understand the various ways in which consumers’ attitudes are
changed.
5. Understand how consumers’ attitudes can lead to behavior and
how behavior can lead to attitudes.

Pedagogy

 Lecture discussion on Attitude formation and change

 Evaluation of TVC’s and Print ads
 Enhancing critical thinking Class Assignment

Teaching Material:
Book Chapter: Chapter 6, Consumer Attitude Formation and
Change
Article 1: Track Customer Attitudes to Predict Their Behaviors

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 (Werner Reinartz & Rajkumar Venkatesan, 11 Sept, 2014, HBR)
Article 2: Don’t Persuade Customers — Just Change Their Behavior
(Art Markman, 10 Feb, 2014, HBR)
Article 3: Change Consumer Behavior with These Five Levers
(Kieth Weed, 6 Nov, 2012, HBR)
16 Week 8 1.5 1.0 0.5

Communication

Appreciate the process of communication that companies use to

convey to consumers, ideas, information and persuade them to buy
their products. How creating a unique persuasive message involves
breaking through the noise with a convincing proposition using
verbal and non-verbal communication
The five components of communication are: the sender, the receiver,
the medium, the message, and feedback (the receiver’s response). In
the communications process, the sender encodes the message using
words, pictures, symbols, or spokespersons and sends it through a
selected channel (or medium).The receiver decodes (interprets) the
message based on his or her personal characteristics and experience,
and responds (or does not respond) based on such factors as selective
exposure, selective perception, comprehension, and psychological

Learning Outcomes

1. Revision of the steps in the communication process as studied in

Marketing and Communication Courses
2. Educate about advertising media and how to select the right
media when sending promotional message
3. Salience of understanding the consumer to send persuasive
messages
4. Explain how marketers measure effectiveness of promotional
messages

Pedagogy
 Refreshing of the AIDA process
 Lecture discussion on communication
 Class Assignment

Teaching Material:
Book Chapter: Chapter 7, Persuading Consumers
Article 1: The Key to Persuading Consumers (14 December, 2015,
eMarketing)
Article 2: How Advertising Works (Peter Voyer, 8 Aug, 2007, Ivey
Publishing)
Handout: Essential Marketing Models (Annmarie Hanlon and Dave

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 Chaffey, January, 2015, Smart Insights)
Video 1: Appeals: Fear & Humor:
https://youtu.be/NbwG9MXyNGw
Video 2: Axe AD: https://youtu.be/TfJJeVHt57o
Video 3: Abrasive Ad (Ariel): https://youtu.be/pBp1zSM0SkY
Video 4: Celebrity endorsement Ad:
https://youtu.be/H3HANQYwNfU
17 Week 9 1.5 0.5 1.0

Experiential Exercise or Case Study

Learning Outcomes
3. To involve the students physically and emotionally in the
application of Consumer Behavior so far covered in the
course
Pedagogy
 An experiential exercise that the students work in groups for 35-
45 mins.
 Random group presentations, 30 mins.
 A debriefing and concluding session by the instructor, 15 mins.
OR
A 90 mins case study and discussion, illustrating the application of
concepts discussed so far

Case Study: Sensory Branding – Oreo in Indian context (S. Ramesh

Kumar, Nalin Goel & Gireesh Gera, IIMB, 2015)
18 Week 9 1.5 1.0 1.5

The Family and Social class

For many consumers their family is their primary reference group for
many attitudes and behaviors. The family is the prime target market
for most products and product categories. As the most basic
membership group, families are defined as two or more persons
related by blood, marriage, or adoption who reside together
The members of a family assume specific roles in their everyday
functioning.
Social stratification, the division of members of a society into a
hierarchy of distinct social classes, exists in all societies and
cultures. Social class usually is defined by the amount of status that
members of a specific class possess in relation to members of other
classes. Social-class membership often serves as a frame of reference
(a reference group) for the development of consumer attitudes and
behavior.
Research has revealed social-class differences in clothing habits,
home decoration, and leisure activities, as well as saving, spending,

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 and credit habits. Thus, astute marketers tailor specific product and
promotional strategies to each social class target segment.

Learning Outcomes

1. Explain the Socialization Process and Other Roles of the Family.

2. Explain the Dynamics of Husband-Wife Decision Making, as
Well as the Influence of Children in Family Consumption
Decision Making.
3. Explain How Traditional and Nontraditional Family Life Cycles
Impact Consumer Behavior.
4. Explain what social class is and how it relates to consumer
behavior and its measures
5. Evaluate consumer behavior for the affluent consumer, the
middle-class consumer and the working class/ non affluent
consumers.

Pedagogy
 Lecture discussion on The Family and Social class
 PowerPoint presentation
 TVC’s and Print ads
 Video by Gail Tom

Teaching Material:
Book Chapter: Chapter 10, The Family and its Social Standing
Article 1: Children’s Influence on Family Decision Making (Anne
Martensen & Lars Grønholdt, 2008)
Article 2: Parental Influence On Consumer And Purchase Behaviour
Of Generation Y (Melanie Wiese & Liezl-Marié Kruger, 2016)
Handout 1: Family Buying Influences-Family Life Cycle and
Buying Roles
Handout 2: Social Class Mobility and Lifestyle Analysis
Article 3: A Theoretical Approach to the Influence of Social Class
on Consumer Behavior (Dr. Yakup Durmaz & Ahmet Taşdemir,
2014)
19 Week 10 3.0 2.0 1.0
-
20 Influence of Culture and Cross Culture on Consumer Behavior

The study of culture is the study of all aspects of a society. It is the

language, knowledge, laws, and customs that give society its
distinctive character and personality. In the context of consumer
behavior, culture is defined as the sum total of learned beliefs,
values, and customs that serve to regulate the consumer behavior of
members of a particular society
The impact of culture is so natural and ingrained that its influence on

Page 15 of 23
 behavior is rarely noted. Yet, culture offers order, direction, and
guidance to members of society in all phases of human problem
solving. Culture is dynamic, and gradually and continually evolves
to meet the needs of society.
Subcultural analysis enables marketers to segment their markets to
meet the specific needs, motivations, perceptions, and attitudes
shared by members of a specific subcultural group
Major subcultural categories in this country include nationality,
religion, geographic location, race, age, and sex. Each of these can
be broken down into smaller segments that can be reached through
special copy appeals and selective media choices.

Learning Outcomes

1. Describe what culture is and how it impacts consumer behaviors.

2. Explain how culture acts as an “invisible hand” that guides
consumption-related attitudes, values, and behavior.
3. Understand what subculture is, and its relationship to culture.
4. Understand nationality, religion, geography, age, race, etc. as
subcultural influence consumer behavior
5. Understand how multiple subcultural memberships jointly
influence consumer behavior.

Pedagogy

 Lecture discussion on Influence of Culture and Cross Culture

on Consumer Behavior
 Evaluation of TVC’s and Print ads
 Demonstrative Video by Gail Tom

Teaching Material:
Book Chapters: Chapter 11, Culture’s Influence on Consumer
Behavior & Chapter 12, Cross-Cultural Consumer Behavior: An
International Perspective
Article 1: The Influence of Culture on Consumer Behavior-Role of
Culture (Hitesh Bhasin, 14 Feb, 2018, Marketing91)
Article 2: The Mistake Companies Make When Marketing to Feb,
Different Cultures (Eddie Yoon, 17 Feb, 2015, HBR)
Article 3: Understanding the Arab Consumer (Vijay Mahajan, May,
2013, HBR)
Article + Video Ads: Don’t Be a Jerk: 6 Valuable Lessons From
Culturally Insensitive Ad Campaigns of Recent Months (Ami Foote,
5 May, 2017) http://landt.co/2017/05/valuable-lessons-culturally-
insensitive-ad-campaigns/
21 Week 11 1.0
22

Page 16 of 23
 2nd Hourly Exam
Students will be tested on their conceptual and applicative grasp of
consumer as an individual and in their social and cultural settings.
The one hour test may be in two parts: 20 minutes for multiple
choice type testing and 40 minutes for two-three applicative tests
23 Week 12 1.5 1.0 0.5

24 Consumers and the Diffusion of Innovation

The diffusion process and the adoption process are two closely
related concepts concerned with the acceptance of new products by
consumers. The diffusion process is a macro process that focuses on
the spread of an innovation (a new product, service, or idea) from its
source to the consuming public. The adoption process is a micro
process that examines the stages through which an individual
consumer passes when making a decision to accept or reject a new
product.
The definition of the term innovation can be firm oriented (new to
the firm), product oriented (a continuous innovation, a dynamically
continuous innovation, or a discontinuous innovation), market
oriented (how long the product has been on the market or an
arbitrary percentage of the potential target market that has purchased
it), or consumer oriented (new to the consumer). Market-oriented
definitions of innovation are most useful to consumer researchers in
the study of the diffusion and adoption of new products.

Learning Outcomes

1. Highlight what comprises of a new product within a social

system.
2. Understand how innovative products and services spread (or fail
to spread) within a social system.
3. Understand how individual consumers decide whether or not to
try and adopt a particularly innovative product or service.
4. Understand the personal characteristics of innovators.

Pedagogy

 Lecture discussion on Consumers and the Diffusion of

Innovation
 Critical analysis of TVC’s and Print ads
 Demonstrative video by Gail Tom

Consumer Decision Making and Beyond

The consumer’s decision to purchase or not to purchase a product or

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service is an important moment for most marketers. It can signify
whether a marketing strategy has been wise, insightful, and effective,
or whether it was poorly planned and missed the mark. Thus,
marketers are particularly interested in the consumer’s decision-
making process. For a consumer to make a decision, more than one
alternative must be available. (The decision not to buy is also an
alternative.)
A consumer decision-making model ties together the psychological,
social, and cultural concepts
The process of gift exchange is an important part of consumer
behavior. Various gift-giving and gift-receiving relationships are
evaluated.
Consumer behavior is not just making a purchase decision or the act
of purchasing; it also includes the full range of experiences
associated with using or consuming products and services.
Relationship marketing impacts consumers’ decisions and their
consumption satisfaction. Firms establish relationship marketing
programs (sometimes called loyalty programs) to foster usage
loyalty and a commitment to their products and services

Learning Outcomes
1. Discussion on what a consumer decision is.
2. Explain the three levels of consumer decision making.
3. Explain four different views or models of consumer decision
making.
4. Explain in detail the model of consumer decision making.
5. Explain the nature and scope of consumer gift giving.
6. Explain the significance of consuming and possessing.
7. Explain the need for relationship marketing.

Pedagogy
 Lecture discussion on Consumer Decision Making and
Beyond
 Evaluation of TVC’s and Print ads based on principles
studied in class
 Demonstrative video by Gail Tom

Teaching Material:
Book Chapter: Chapter 13, Consumer Decision Making and
Diffusion of Innovation
Article 1: Accelerating Customer Adoption at the Bottom of the
Pyramid Peter Frykman, 31, January, 2013, HBR)
Article 2: Why India is such a terrible place for innovation (Itika
Sharma Punit, 28 January, 2016, Quartz)
Article 3: The Social Acceptability of Disruptive Food Innovations
(Eddy Fougier, 24 October, 2017, Paris Innovation Review)

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 Article 4: Innovation and Product Innovation in Marketing Strategy
(Nagasimha Balakrishna Kanagal, Feb, 2015)
Handout: Diffusion of Innovation (USC, Marshall)
25 Week 13 1.5 1.0 0.5

Marketing Ethics and Social Responsibility

The marketing concept is sometimes incongruous with society’s best

interests. Since all companies prosper when society prospers,
companies must integrate social responsibility into all marketing
decisions and many adopted the societal marketing concept. The
societal marketing concept requires that all marketers adhere to
principles of social responsibility in the marketing of their goods and
services.
Since the study of consumer behavior allows marketers to
understand why and how consumers make their purchase decisions,
it also enables unethical marketers to exploit human vulnerabilities
in the marketplace and engage in other unethical marketing
practices.
Many not-for-profit organizations exist primarily to promote socially
beneficial behaviors such as contributing to charity and reduce such
negative behaviors as using drugs. Also, many companies try to
increase their credibility by being “good corporate citizens” and
integrating socially desirable practices into their operations

Learning Outcomes
1. Understand the meaning of marketing ethics and social
responsibility.
2. Learn about potential unethical marketing practices involving
targeting especially vulnerable or unaware consumers.
3. Learn how marketers can ambush consumers with unexpected
ads, tinker with their perceptions, and mislead them.
4. Understand how marketers can advance society’s interests via
such practices as advocating social benefits, cause-related
marketing, and green marketing.

Pedagogy
 Lecture discussion on Marketing Ethics and Social
Responsibility
 PowerPoint presentation
 Presentation of scenarios where ethics and social
responsibility was/was not applied.
 Class Group Project: Application of marketing
ethics in a given scenario

Book Chapter: Chapter 14, Marketing Ethics and Social

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 Responsibility
Article 1: Social Responsibility in Marketing (USC)
Article 2: Ethical Consumerism Isn’t Dead, It Just Needs Better
Marketing (Julie Irwin, 12, January, 2015, HBR)
Article 3: People Think Companies Can’t Do Good and Make
Money. Can Companies Prove Them Wrong? (Amit Bhattacharjee &
Jason Dana, 28 November, 2017, HBR)
26 Week 13 1.5 0.5 1.0

Experiential Exercise or Case Study

Learning Outcomes
4. To involve the students physically and emotionally in the
application of Consumer Behavior so far covered in the
course
Pedagogy
 An experiential exercise that the students work in groups for 35-
45 mins.
 Random group presentations, 30 mins.
 A debriefing and concluding session by the instructor, 15 mins.
OR
A 90 mins case study and discussion, illustrating the application of
concepts discussed so far.

Case Study:
OnePlus: Crossing the Chasm in the Smartphone Market (Mohanbir
Sawhney & Pallavi Goodman, 9 Dec, 2016, Kellogg School of
Management)

Or

Raju Omlet- Expanding in the United Arab Emirates (Kirti

Khanzode & Sandeep Puri, 2015, Ivey Publishing)
27 Week 14 3.0

28 Term Project presentations

29 Final Exam 3.0
30

4. Teaching and learning methods

 Lecture discussion on topics of Consumer Behavior

 Random spot Q&A session to evaluate student understanding
 Movie clips to show application of Consumer Behavior concepts to reinforce theory
 Brainstorming on marketing scenarios to reinforce learning
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  Case study to see firsthand application of concepts in a true marketing scenario
 Reading material in the form of articles and chapters from other reference books to
supplement prescribed text

5. Student assessment methods

Consumer Behavior Rubrics
Excellent/ Very Good Satisfactory Fail
Good
Understanding You clearly You understood the You seemed to You did not
of Topic understood the topic topic in-depth and understand the show an
in-depth and presented your main points of the adequate
presented your information with topic and understanding of
information so that ease. presented those the topic.
everyone can with ease but were
understand it. not as clear with
other aspects
Presentation You consistently You usually used You sometimes You had a
Style used gestures, eye gestures, eye contact, used gestures, eye presentation
contact, tone of tone of voice and a contact, tone of style that did not
voice and a level of level of enthusiasm voice and a level keep the
enthusiasm in a way in a way that kept the of enthusiasm in a attention of the
that kept the attention of the way that kept the audience.
attention of the audience. attention of the
audience. audience.
Information All information Most information Some information Information had
presented was clear, presented was clear, was clear and several
accurate and accurate and accurate, and/or inaccuracies OR
thorough. thorough but not all. thorough but not was usually not
all. clear.
Use of Every major point Most points were Only a few points Very few points
Facts/Statistics was well supported adequately supported were was were supported.
with several with relevant facts, supported with
relevant facts, statistics and/or facts, statistics
statistics and/or examples. and/or examples.
examples.
Sources – Sources were solid Sources were of a Sources were of a Sources were
quality and academically verifiable quality dubious nature Poor (wiki, blogs
grounded etc)
References/ Brief Citations/applications Citations/applicati No citations
Applications citations/application were provided for ons were provided /applications
s were provided for some facts for few facts were provided
each fact

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 Assessment … to access Assessment Weight age
methods schedule: week:
1 Quizzes Knowledge and understanding 3, 4, 5 5%
2 Assignments Knowledge and understanding 9 5%
3 1st Hourly Exam Knowledge and understanding 6 15%
4 2nd Hourly Exam Knowledge and understanding 11 15
5 Term report Professional and practical skills 12 to 14 20%
6 Final exam Professional skills 16 40%
Total: 100%

Formative assessments:
 In class support behavior
 Punctuality
 Attendance

6. List of references

Prescribed Text

 Consumer Behavior, Leon G. Schiffman, Leslie Kanuk, & Havard Hansen, (2015),
11th Edition, ISBN: 9332544786, 9789332544789

Recommended (Reference) books:

 Consumer Behavior by Frank R. Kardes, Maria L. Cronley, & Thomas W. Cline

(2012), ISBN 13: 978-0-538-74688-5
 Consumer Behavior, Del I. Hawkins, Roger J. Best, Kenneth A. Coney (2004), ISBN:
0077387678, 9780077387679
 Consumer Behavior, Global Edition, Michael R. Solomon (2015), ISBN:
1292057017, 9781292057019

7. Facilities required for teaching and learning

 PC with color printer with instructor
 Classroom multimedia with full sound system
 Classroom overhead projector
 Panoramic whiteboard across front class wall
 Access to a corporation for the term research project

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  Clock on back and front class wall

Head of Department Dean

Date: / / Date: / /

CONSUMER BEHAVIOR (MKT 509)

Semester-Long Experiential Learning Project

The class will be divided into groups of four-five students. Each group will be assigned a
Consumer Behavior related topic which has its roots in the concepts discussed in class
throughout the semester.

The students are to tap various ‘Sources of Information’ to put together a commentary on the
topic. However, it is mandatory for students to refer to at least two published research papers and
two published articles from marketing/consumer behavior journals and magazines in order to
convey knowledge and ideas that have been established on the topic. (Blogs are not acceptable)

The topic can be supported by advertisements, reports of company visits, small surveys to give
depth to their project.

At the end of the semester the groups are to present their topic to class in a formal presentation
and submit a copy of their term project complete with references and a list of their sources of
information.

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