For Private & Restricted Circulation only
PGPM 2019-21
Term IV
Course Title: Consumer Behavior
Instructor
Dr.Kirti Sharma
C-15, Scholars Building
Phone: 5313, email: [email protected]
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 1
For Private & Restricted Circulation only
Management Development Institute, Gurgaon
Post Graduate Programme in Management (2016-2018)
CONSUMER BEHAVIOR
Instructor – Dr.Kirti Sharma
This booklet contains the following:
1. Session-wise Course Outline
2. Evaluation Plan
3. General Guidelines
4. Assurance of Learning Guidelines
5. Cases & Reading Material
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 2
Consumer Behaviour
Instructors: Kirti Sharma
*Please do not use laptops during classes. Taking notes (though not mandatory) is likely to
make you familiar with the subject and establish links with the class lectures. Few power
point slides may be used in lectures (ppt’s do not define the structure of the course, you
would have to read up from the prescribed books and link class notes to understand the
subject)
Objectives of the course
It has been noted that consumers do not always act or react as economic theory would suggest. Consumer
preferences have always been changing and becoming highly diversified. Even in industrial markets, where
needs for goods and services were always more homogenous than in consumer markets, buyers are
exhibiting diversified preferences and less predictable purchase behaviour.
For the purposes of this course, we define Consumer Behaviour as those actions directly involved in
obtaining, consuming and disposing of products and services, including the decision processes that precede
and follow these actions.
This subject could then be approached from several perspectives - (i) Consumer influence; (ii) wholistic;
and (iii) inter-cultural. These perspectives do overlap to some extent. The subject is of interest to those,
who, for various reasons, desire to influence or change that behaviour, including those whose primary
concern is marketing, consumer education and protection, and public policy.
We would be approaching the subject of Consumer Behaviour from a marketing point of view with the sole
objective of phasing Consumer Research into Marketing Strategy.
Pedagogy
The course would proceed through conceptual discussions, examination of the theoretical foundations
through lectures, etc. The participants would be encouraged to enrich the learning through sharing of
ideas and information. The participants are expected to look up the prescribed readings in advance.
Cases to analyze specific contexts and application exercises to make the student to elaborately work
towards the application of concepts after reading relevant material, quizzes are provided to enable the
student to think about conceptual application quickly
It is to be noted that self and group learning through rigorous and group oriented processes, after being
exposed to the basics is an inherent part of the methodology. The student is expected to make the most
through this approach and students not oriented towards such a methodology are advised not to elect for
this elective.
Reference Material:
(1) Leon G. Schiffman & Leslie Lazar Kanuk: Consumer Behavior, Prentice Hall (Eleventh Edition)
(Referred later as SK)
(2) A Set of Readings and cases is provided. (Referred later as SR)
(3) James F. Engel, Roger D. Blackwell & Paul W. Miniard; Consumer Behaviour. The Dryden Press,
(Sixth Edition) (Referred later as EBM)
(4) Journal of Consumer Research (Referred later as JCR)
*Matters related to attendance not marked/late coming/other such aspects are to be taken up with the
PGP office. The course Prof will not get into these matters.
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 3
SESSION WISE COURSE OUTLINE
Session Topics/Assignments
1-2 INTRODUCTION AND OVERVIEW
What’s Consumer Behaviour all about, Right thinking about the Consumer, Improving Marketing
Effectiveness, Consumer Behaviour as a field of Academic Study, Consumer Decision Processes,
Making use of understanding about these processes. The underlying influences on Consumer
Behaviour.
Readings: 1. Chap-1 (SK)
2. Note on Market and Consumer Research(SR)
Case : Fisher-Price Toys, Inc. (for Session No.2)
3-4 CONSUMER BEHAVIOR: STRATEGIC APPLICATIONS
Consumer Decision Making & Marketing Implications, Modeling Consumer Behavior, Customer value,
Satisfaction and Retention, Consumer Research Process, Market Segmentation and Strategic Targeting.
Case : 1. VANS: Skating on Air
2. RKS Guitars
Readings : Chap- 2, 3 (SK)
5 INDIVIDUAL DIFFERENCES IN RESOURCES, MOTIVATION & KNOWLEDGE
Economic, Temporal and Cognitive Resources of Consumers, Involvement and Motivation,
Motivation as a Psychological force, Dynamics of motivation, Types and Systems of needs,
Measurement of motives.
Case : Ombre, Tie-dye … : Loreal Paris
Reading : Chap 4 (SK)
6 PERSONALITY AND CONSUMER BEHAVIOR
Theories of personality, Brand personality – Indian brands, Self and Self-Image, Personality and
Psychographics, Consumer Involvement and values, Emotion
Case : The Pepsi Refresh Project: A Thirst for Change
Reading : Chap- 5 (SK)
7-8 PERCEPTION AND LEARNING
Elements of perception, Dynamics of Perception, Perception and Technological products
Marketing Implications – Price, Retail, Advt. and Product / Package Design, Elements of
Consumer Learning, Memory, The Concept of Conditioning and Reality, Building relationship
programmes, Stages of Information Processing, Learning, Cognitive and Vicarious Learning,
Conditioning
Case : 1. (PRODUCT) RED (A)
2. Boston Beer
Readings : Chap- 6, 7 (SK)
9 INDIVIDUAL DIFFERENCES IN ATTITUDES AND BEHAVIOUR
Attitudes and their relationship with Behaviour, Multiattribute Attitude Models of Buyer
Behaviour, Attitude formation, Behaviour Modification.
Case : The Fashion Channel
Reading : Chap 8, (SK)
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 4
Session Topics/Assignments
10 COMMUNICATION AND PERSUATION
The Credibility of information sources, Involvement, Media, Behavior Theories and Persuasive
messages.
Reading : Chap 9, (SK)
11-15 CONSUMER ATTITUDE AND CHANGE
Forming attitudes, Attitude Models, Impact on Marketing Strategies,
CONSUMERS IN SOCIAL AND CULTURAL SETTINGS
Characteristics of Culture, Role of sub-culture, Reference Group and Family influences
Family Decision making and consumption related roles, Social Class and Consumer,
Behavior, Marketing to Social Class segments.
Case 1. Zipcar: Influencing Customer Behavior
2. TiVo
3. TiVo in 2002: Consumer Behavior
Readings : Chap 10, 11, 12(SK)
16-18 CONSUMER INFLUENCE & INNOVATION
Diffusing Product meanings Globally, Dynamics of Opinion Leadership
CONSUMER DECISION MAKING
Levels of Consumer Decision Making, Model of Consumers: Four Views of Decision Making,
Consumer in Market place : Outlet choice, Shopping orientation and style, Relationship
Marketing, Consumer Gifting Behavior
Case : 1. SONY Aibo: The World’s First Entertainment Robot
2. Propecia: Helping make hair loss History
Readings : Chap 13 & 14 (SK)
19-20 SUMMING UP AND PRESENTATIONS
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 5
EVALUATION PLAN
Quizzes, assignments, class participation, project and examination will be the major elements used for
evaluating the participant’s performance. Participant’s consistent attendance and involvement in the class
discussion constitute the grade for class participation.
Quizzes (Individual component) : 15%
Case Analysis & Presentation (Group component) : 10%
Case Critique (Group component) : 5%
Mid-Term (Individual component) : 20%
Project (Application Exercises) (Group component) : 20%
End Term Examination (Individual component) : 30%
GENERAL GUIDELINES
Important: Submission means before the session begins (unless it is otherwise specified). If a group is
unable to submit, there are trade-offs provided in the course guidelines and they will be followed.
1. Being in time for lecture classes is important.
If group presentation is involved, it cannot be delayed because of the non- availability of a group
member.
2. All members of the group are required to be present for any group presentation - absence will result in
loss of marks.
3. Class lectures / book chapters / special lectures / handouts will be included for respective quiz / Mid &
end-term.
4. Marks, cut-off and grades are not negotiable and hence the instructor would not like to take up
requests on these aspects. While the instructor would explain the answer frame (for quiz, cases etc),
the answer frame decided by the instructor will be final and binding.
5. Any clarification regarding the hand out can be had with the course Prof.
6. As time is short during regular class lectures, any specific clarification from the textbook (concepts /
examples) could be had with the instructor with a prior appointment. Issues which are prioritized in a
chapter will be the focus of class discussion.
7. Quiz schedule will be altered only in the likely hood of classes being cancelled due to unavoidable
reasons.
GUIDELINES -CASES
1. Cases have been chosen to reflect the concepts involved across the subject. Apply the relevant
concepts when you analyze the case using the ‘focus chapter’ indicated.
2. It is the conceptual approach which is important more than the suggestions which are given at the end.
While it could be stimulating to have different view points from different groups, a conceptual “back-
up” is required, (whatever stance is taken by the group).
3. If there are no questions at the end of the case, the group-can decide on the problems/questions it
would like to address. Identification of issues related to the focus chapter/concepts is important.
Indiscriminate use of concepts which have no relevance to the case will get no weight-age.
4. If quantitative information is involved, it could be used in several ways depending on how the group
“reads” the situation. Analysis could include why a particular piece of information is used or over-ruled.
Assumptions could be made wherever required.
5. It would be interesting to explore different ways of explaining a case provided it is done with the usage
of concepts and realistic assumptions.
6. Questions on case presentation will be asked after the respective group finishes its presentation.
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 6
7. Any group can be asked to make a presentation at random. All members of the group are required to
be present.
8. Each group could have twenty five minutes for the presentation (15 minutes for presentation and 10
minutes for discussion).
9. All cases would require sound knowledge of basics of marketing management
Quiz
1. Surprise quiz could be held during any of the sessions.
2. Conceptual answers from the book/class lecture are expected. No marks will be awarded for
general/incomplete answers.
3. Quiz may be of 10-20 minutes duration. Short answers will involve not more than two sentences or it
may be objective type or lO-20 lines.
4. Normally re-quiz is not conducted by the instructor-given the number of students in the class and the
variety of situations that are presented.
5. In exceptional cases (in the discretion of the instructor), a re-quiz may be conducted. The course Prof
will decide on the chapter in such cases.
GROUPS
1. Each group will consist of 5 members. Group composition will be decided in consultation with the
instructor in the first session.
2. Group size may be changed by the instructor if required in the first week (depending on the
registration to the elective).
Note-The readings provided (Pre and Post Class sessions) for cases enable you to understand the linkages
between the case and the readings: they may not present the exact solution and group’s thinking is
required on solving the case. Questions that may be found at the end of some: cases by themselves
may not be the issues involved; they broadly indicate areas of decision making.
SUBMISSION OF CASES MEANS BEFORE THE SESSION STARTS
• Both email and hard-copy submission of Case is required
• If cases are marked for specific groups, the course faculty may question any individual at random to
test the preparation. The student doing badly is likely to lose marks from case component (average)
• A group not submitting on time before the presentation will have the trade-offs in terms of marks
(for cases)
• Submission after the class is over (within 30 minutes)-50% (late entry of students not allowed after
presentation/session starts)
• Medical /other emergencies where leave is applied through PGP Chairperson be considered on the
merits of the case.
• A student absent for case/project presentation is not eligible for any marks obtained by the group
• Any other penalty will be decided by the Faculty as appropriate.
• Quiz will include respective chapter from the text book and class notes, Any type of questions may be
asked in the quiz (descriptive or multiple choice, short answers).
Please ensure appropriate decorum/behavior during the sessions. Being a post graduate course, the
course professor does not expect any kind of class room disciplinary problems. But should there be any
such occurrences, the concerned student/s is/are liable to lose their individual participation marks
completely in all such components /removed from the course/face any action deemed fit by the GP office.
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 7
MDI GURGAON
ASSURANCE OF LEARNING
ELECTIVE COURSE: CONSUMER BEHAVIOR
TERM IV – 2016-18 (PGPM)
The following LGs and LOs will be delivered and measured through this course.
LG4: Functional Competencies
LO1. Be able to understand and explain fundamental framework/concepts/competencies of the functional
area and their application on overall management decision making.
LO2. Be able to analyze and relate functional knowledge with the other functional areas
LG5: Analytical and Integrative Thinking
LO1. Be able to identify symptoms and key factors of the business problem. Clearly define a business
problem using key facts.
LO2. Be able to critically analyze defined business problem using widely used analytical techniques,
models, or frameworks in order to integrate different aspects of business
LO3. Be able to propose potential alternative solution, evaluate them and recommend an appropriate
solution
AOL Measurement
The assessment will be made in order to understand the student ability to appreciate the
“Functional Competencies”, and “Analytical and Integrative Thinking” in the context of the course.
There will be a continuous assessment of the student’s overall learning of the course objectives
using multiple methods such as quizzes, examinations, projects, assignments, and case analysis
and submissions, etc.
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 8
PGPM/LG4: FUNCTIONAL COMPETENCIES
Each student acquires the knowledge of at least one specific functional area, and relates it with
other functional areas. Each student shall be able to understand and explain fundamental
framework/concepts/competencies of the functional area and their application on overall
management decision making. The student shall also be able to analyze and relate the
functional knowledge with other functional areas.
PGPM/LG4 Unsatisfactory Satisfactory Exceeds
Expectations
LO1. Be able to Generic and Able to explain few (at Able to explain most
understand and inadequately (at least two) of the (multiple) of the
explain fundamental most one) explains fundamental fundamental
framework/concepts/ the fundamental frameworks/concepts/ frameworks/concepts/
competencies of the frameworks/concepts/ competencies of the competencies of the
functional area and competencies of the functional area and its functional area and its
their application on functional area. application on overall application on overall
overall management management decision management decision
decision making. making. making.
LO2. Be able to Study and explain the Able to relate the Able to relate the
analyze and relate functional area in functional knowledge functional knowledge
functional knowledge isolation, and unable with at least one with multiple
with the other to relate the more functional area functional areas
functional areas functional knowledge
with the other
functional areas
Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 9
PGPM/LG5: ANALYTICAL AND INTEGRATIVE THINKING
Each student acquires and demonstrates the sound knowledge of widely used analytical
methods, and develops an integrative thinking. Each student shall be able to identify symptoms
and key factors, and define the business problem using the key facts, analyze it using the widely
used analytical techniques, and integrate different aspects of business. The student is able to
propose potential alternative solutions, evaluate them, and recommend an appropriate solution.
PGPM/LG5 Unsatisfactory Satisfactory Exceeds
Expectations
LO1. Be able to Identifies at most one Identify at least two Identify multiple
identify symptoms and of the symptoms, of the symptoms and symptoms and key
key factors of the and/or factor affecting key factors of the factors of the
business problem. the business problem, business problem, business problem,
Clearly define a and therefore in and therefore and therefore clearly
business problem appropriately define appropriately define define the business
using key facts. the business problem the business problem problem using the key
using the key facts. using the key facts. facts.
LO2. Be able to Not able to Be able to analyze the Be able to critically
critically analyze appropriately analyze defined business analyze the defined
defined business the defined business problem using at least business problem
problem using widely problem. No or only one analytical using multiple
used analytical little traces of techniques, models or analytical techniques,
techniques, models, analytical thinking in frameworks in order to models, or
or frameworks in context of the integrate the some frameworks in order to
order to integrate business problem aspects of the integrate the most
different aspects of business decision aspects of the
business business decision
LO3. Be able to Not able to propose Be able to propose at Be able to draw out
propose potential any, or proposes at least two potential multiple potential
alternative solution, most one potential alternative solutions, alternative solutions
evaluate them and solution to the evaluate them and from the business
recommend an business problem provide self analysis, and not only
appropriate solution which may not recommendation evaluate them but
necessarily be propose a strong
feasible/optimal recommendation
with future
implications
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Consumer Behavior 2016-18; Instructor: Dr.Kirti Sharma Page 10
