1. Consumer Behavior
School of Business Management , NMIMS
FT MBA II Year Trimester IV 2012-2013
Instructor: Prof Neeta Acharya
Ext. – 5854
Email: 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 & Hows). This
meant understanding the external & individual determinants affecting consumer
decision-making process. The course is structured in this context.
Objectives:
1)
2)
To sensitize students to the behavioral dimensions that affect consumer
decision-making.
To develop their skills in making effective marketing strategy decisions.
Pedagogy – In light of the qualitative nature of the subject, the participants will
be learning through a series of field exercises (assignment) & class exercises
besides final group project.
Evaluation criteria – Marks out of 100.
1)
Final exam – 50%
2)
Assignments with presentation – 10% (Individual evaluation)
3)
2 Class exercises – 20% (Group evaluation)
4)
Final project report with presentation – 10% (Group evaluation) + 10%
(Individual evaluation)
Essential reading (Prescribed text )
Consumer Behaviour - Leon G. Schiffman & Leslie Lazar Kanuk - latest edition,
Prentice Hall of India/Pearson Education India.
Other Texts (Recommended)
-
Consumer Behaviour – David L. Loudon & Albert J. Della Bitta, Latest
edition, Tata McGraw Hill.
-
Consumer Behaviour – 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).

2. SESSION DETAILS
SESSION
TOPIC
1&2
SESSION 1 & 2 - CONSUMER BEHAVIOUR INTRODUCTION
• Why Consumer Behaviour is important
• Defining Consumer Behaviour
• 70’s framework (soft drink v/s health drink)
• Buying roles
• Use of Consumer behavior, Problems in measuring
• Decision Process framework
• Perspectives to Consumer Behaviour
• Consumer Research
• Use of secondary sources like Retail audit, leadership service, census
outline, Marketing white book.
• Qualitative V/s Quantitative research & use in Consumer behaviour
Essential Reading
Chapter 1 Chapter 2 Chapter 3 -
3&4
The Diversity of Consumer Behavior
Consumer Research
Market Segmentation
SESSION 3 – CULTURE & SUBCULTURE
- Changes in Indian socio-cultural environment & impact on consumer behavior
(Banking, cosmetics/ Tea/coffee)
- Differences in urban & rural culture.
Essential Reading
Chapter 14 – The Influence of Culture on Consumer Behavior
Chapter 15 – Subcultural Aspects of Consumer Behavior
CROSS CULTURAL CONSUMER BEHAVIOR
- Framework for cross cultural analysis
Essential Reading
Chapter 16 – Cross –Cultural Consumer Behavior: An International Perspective.
SESSION 4 – CLASS EXERCISE 1:
Show how CB has affected designing of a product and suggest additions/deletions
(Vicarious/interviews).
SESSION 5 – SOCIAL CLASS, REFERENCE GROUP & FAMILY
5&6
o
o
o
o
Socio– economic class segmentation v/s income segmentation
Social group, aggregation & category
Social groups & reference group power
Changing roles in family.

3. Essential Reading
Chapter 13 – Social class and Consumer Behavior
Chapter 11 – Group Dynamics and Consumer Reference Groups
Chapter 12 – The Family
SESSION 6 – OPINION LEADERSHIP & INNOVATION DIFFUSION
- Characteristics of Opinion Leadership
- Innovation diffusion model
Essential Reading
Chapter 17 – Personal Influence and the Opinion Leadership Process
Chapter 18 – Diffusion of Innovations
SESSION 7 –
7
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 (GROUP 2)
CLASS EXERCISE 2 - Advertisement analysis (GROUP 5)
8&9
SESSION 8 & 9 – INDIVIDUAL DETERMINANTS
- Consumer Motives & Involvement
- Brand personality V/s User personality & self-image
- Information processing & perceptions
Essential Reading
Chapter 4 – Consumer Needs and Motivations
Chapter 5 – Personality and Consumer Behavior
Chapter 6 – Consumer Perception.
10
SESSION 10 –
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).
CLASS EXERCISE 2 - Advertisement analysis (GROUP 8)
11 & 12
SESSION 11 – LEARNING & MEMORY, ATTITUDE FORMATION &
COMMUNICATION
Essential Reading
Chapter 7 – Learning and Consumer Involvement

4. Chapter 8 – The Nature of Consumer Attitudes
Chapter 9 – Consumer Attitude Formation and Change
Chapter 10 – Communication and Persuasion.
SESSION 12– CONSUMER DECISION MAKING PROCESS
Essential Reading
Chapter 19 – Consumer Decision Making: Choosing and Consulting
13
SESSION 13 –
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)
CLASS EXERCISE 2 - Advertisement analysis (GROUP 1)
SESSION 14 –
14 & 15
ASSIGNMENT – Consumer behavior urban VS rural for a product category.
(GROUP 7)
ASSIGNMENT – Institutional
category. (GROUP 8)
VS
Consumer
behavior
for
a
product
CLASS EXERCISE 2 - Advertisement analysis (GROUP 2)
SESSION 15 –
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)
CLASS EXERCISE 2 - Advertisement analysis (GROUP 3)

5. 16
FINAL GROUP PROJECT PRESENTATIONS (GROUP 1 & 2) & CLASS
EXERCISE 2 - Advertisement analysis (GROUP 10)
17
FINAL GROUP PROJECT PRESENTATIONS (GROUP 3 & 4) & CLASS
EXERCISE 2 - Advertisement analysis (GROUP 7)
18
FINAL GROUP PROJECT PRESENTATIONS (GROUP 5 & 6) & CLASS
EXERCISE 2 - Advertisement analysis (GROUP 9)
19
FINAL GROUP PROJECT PRESENTATIONS (GROUP 7 & 8) & CLASS
EXERCISE 2 - Advertisement analysis (GROUP 4)
20
FINAL GROUP PROJECT PRESENTATIONS (GROUP 9 & 10) & CLASS
EXERCISE 2 - Advertisement analysis (GROUP 6)
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 25 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.
Class exercises
-
Each group will do 2 class exercises. Each group will present the class
exercise for 8 minutes each & present hard copy to instructor
before beginning presentation.
Final project
Each group will work on a final project which will involve presentation by
the group for 25 minutes followed by 10 minutes of Q & A. A hard copy of
the final project has to be submitted to the instructor in the class before
presentation begins.
The final project will be a primary research project based on Quantitative or
Qualitative techniques on any one of the topics below:
1)
Conduct consumer behavior study for a product/brand & suggest
strategies
2)
Conduct a belief/attitude/usage study for a product/brand.
3)
Any other topic of interest – Social class, Family decision making,etc.
Prepared by Faculty : Prof. Neeta Acharya
Signature : _____________

6. Recommendation by Area Chairperson / Prog. Chairperson:
Signature : _____________
Approved By Dean SBM :
Signature : _____________

7. Recommendation by Area Chairperson / Prog. Chairperson:
Signature : _____________
Approved By Dean SBM :
Signature : _____________