MM 301 OBJECTIVE

CONSUMER BEHAVIOUR

This course provides a deeper insight into the consumer behaviour and decision making, with necessary theoretical foundations also offers many practical insights. It helps to provide the students a holistic view of the consumer; helping them to equip with knowledge of various modules and framework to understand consumer behaviour. COURSE OUTLINE: SECTION I CONSUMER BEHAVIOUR ISSUES AND CONCEPTS

1. Understanding consumer behaviour - Meaning, definition & need; Development of marketing concepts & discipline of consumer behavior; Customer value, satisfaction and customer retention; Factors influencing consumer behaviourcultural, social, personal, psychological 2. Consumer research and segmentation- Consumer research paradigms; Consumer research process; Segmentation bases- geographic, demographic, sociocultural, psychographic, hybrid, behavioral segmentation; Criteria for targeting segments-identification, sufficiency, stability, accessibility; Implementing segmentation strategies- concentrated versus differentiated marketing, counter segmentation 3. Models of Consumer Decision Making - Nicosia Model; Howard- Sheth Model; Engel- Kollat- Blackwell Model 4. Consumer Buying process Stages of consumers buying decision processproblem recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior Case study 1- Maruti 800 Passenger Car- (consumer decision making)

SECTION II CONSUMER BEHAVIOUR: INTERNAL INFLUENCES-I 1. Consumer Perception- Concept, Elements of perception- sensation, the absolute threshold, the differential threshold, subliminal perception; Dynamics of perception- perceptual selection, perceptual organization, perceptual interpretation; Consumer imagery- product positioning, positioning of services, perceived price, perception of colours, perceived quality, perceived risk 2. Learning and Consumer Involvement- Elements of learning- motivation, cues, response, reinforcement; Behavioral learning theories- strategic application of classical conditioning, instrumental conditioning, cognitive learning theory, involvement theory; Measures of consumer learning- recognition and recall, cognitive measures, attitudinal and behavioural measure of brand loyalty 3. Consumer Attitude formation and Change- Consumer beliefs, feeling and attitudes; Structural models of attitudes- tricomponent attitude model, multiattribute attitude models, theory of trying to consume model, attitude toward

the ad model; Attitude formation- sources of influence on attitude formation; Strategies of attitude change- changing the motivational function, associating the product with a special group, event or cause, resolving two conflicting attitudes, altering components of the mutiattribute model, changing beliefs about competitors brands. Case study 2- Lux- The beauty soap- (consumer belief and attitude formation)

SECTION III

CONSUMER BEHAVIOUR -INTERNAL INFLUENCES-II

1. Consumer Personality- Nature; Theories of personality- Freudian theory, NeoFreudian theory and Trait theory; Personality and understanding consumer diversity- consumer innovativeness and related personality traits. 2. Consumer Communication- Process- the message initiator, target audience, receivers response; Designing persuasive communication- communication strategy, target audience, media strategy, message strategies, message structure and presentation 3. Consumer Motivation and Motivational Approaches to Persuasion- Concept, Motivation as a psychological force- needs, goals, positive and negative motivation, rational versus emotional motives; Dynamics of motivation; Types and system of needs- hierarchy of needs, an evaluation of need hierarchy and marketing applications. Case study 3- Titan Watches (consumer Motivation)

SECTION IV

CONSUMER BEHAVIOUR-EXTERNAL INFLUENCES-I

1. Reference Groups and Family Influences- Concept; Factors affecting reference group influence- information and experience, credibility, attractiveness and power of the reference group, conspicuousness of the product; Consumer related reference groups- friendship groups, shopping groups, work groups, virtual groups or communities, consumer action groups; Celebrities and other reference groupscelebrities, the experts, common man, employee spokesperson, trade characters; Family decision making and consumption related roles- key family consumption roles, dynamics of husband wife decision making, working women, expanding role of children in family decision making, the family life cycle 2. Social Influence Principles- Social class and social status; Measurements of social class- subjective, reputational, objective measures; Consumers behavioural applications of social class- clothing, fashion and shopping, pursuit of leisure, saving, spending and credit, social class and communication. 3. Consumer Diversity- Introduction, Cultural learning- enculturation and acculturation, language & symbol, rituals, sharing of culture; Subculture; Manifestations of culture in India- traditional values, adopting western styles, family cultures; Impact of culture on product acceptance; Emergence of new consumer culture, Importance of cultural values- mixing culture with changing

trends, cultural traits in advertisements, cultural appeals; Western influence on Indian consumers Case study 4 - Dove Hair Care- western influence, Indian values and personality

SECTION V

CONSUMER BEHAVIOUR-EXTERNAL INFLUENCES-II

1. Opinion Leadership & Diffusion of Innovation- Dynamics of opinion leadership process- credibility, positive and negative product information, information and advice; Diffusion process- the innovation, channels of communication, the social system; Adoption process- stages in adoption process (awareness, interest, evaluation, trial, adoption/rejection) 2. Information & Communication Technology (ICT) and consumer BehaviourDeterminants of consumer motivation to buy online- pragmatic motivation, product motivation, economic motivation, service excellence motivation, demographic motivation, social motivation, hassle reduction motivation, situational motivation; Impact of ICT on consumers 3. Consumerism- meaning, consumer rights and social obligations, cost of consumer protection- economic, social, opportunity cost, and effects on society Case study 5- Nescafe Instant Coffee- consumption culture, personal factors in choice decisions

REFERENCES Books: 1. Schiffman, Leon G., Leslie Lazar Kanuk, Consumer Behaviour Prentice Hall of India Private Limited, New Delhi 2. Assael, Henry, Consumer Behaviour and Marketing action, Asian books Private Limited Thomas Learning, New Delhi 3. Loudon, David, Albert J. Della Bitta, Consumer Behaviour Concepts and Applications McGraw-hill International Editions 4. Kardes, Frank R., Consumer Behaviour and Managerial Decision Making, Pearson Education, Indian edition 5. Solomon, Michael R.,Consumer Behaviour Buying, Having, and Being, Pearson Education, Inc.,New Delhi 6. Bennet, Peter D., Harold H. Kassarjian, Consumer Behaviour, Prentice Hall of India Limited, New Delhi 7. Hawkins, Del I,Consumer Behaviour-Building Marketing Strategy, Tata McGraw-hill Publishing Company Limited , New Delhi Journals: 1. Advances in Consumer Research 2. Journal of Consumer Marketing

3. 4. 5. 6.

Journal of Consumer Research Journal of Consumer Behavior The Journal of Consumer Satisfaction, Dissatisfaction & Complaining Behavior's International Journal of Consumer Studies

E-Sources 1. www.marketingpractice.com 2. www.casestudyinc.com 3. www.drypen.com