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Consumer Behaviour: BM -2016

(3 Credits)
Facilitator:
Prof. Sanjeev Varshney
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 and exercises 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 (pre-purchase, 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.
Learning Goal:
Functional Knowledge: (a) Students will appreciate the consumer decisions and their impact on
marketing strategy (b) Students will demonstrate their proficiency in the fundamental facts related to
the consumer behaviour (c) Students will demonstrate that they can explain how consumer decisions
are made and how does its understanding affects marketing functions and strategy and business in
totality.
Pre-read: Students are expected to revise their learnings from QT 2 and BRM course and also
go through various market research techniques.
Books & Readings:
For the purpose of this course any one of 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 Books
Schiffman, L.G. & Kanuk, L.L., (2007), Consumer Behaviour, 9 th edition, Prentice Hall of
India Pvt. Ltd., New Delhi
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Loudon, D.L. and Bitta, A.J. D. (2002 ), Consumer Behavior, 4th ed., Tata McGraw Hill,
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.
Pedagogy:
Pedagogy for this course will be a mix of lectures, videos, role plays, in-class exercises, group
work, research work and class participation based on reasoning. Class will be divided into
groups of exactly 6 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
Assignments
Mid Term
Project/Video
End Term Exam
Total

10%
10%
20%
25%
35%
100%

Details for each of these components are as follows:


Case Analysis & Class participation

Individual groups are expected to carry out case analysis and submit one page case review
summary. Soft copy of the same should be submitted before 4.00 am on the day of class. While
submitting soft copy please mention mail subject line as Group No 4B: Name of the Case and
in the body of the submission do not forget to mention name of the Group with section and
members of the group along with their Roll Nos.
Any group can be asked to brief the case, analyse and lead the discussion in the class. While
doing so you are expected to present case facts and analysis along with details of theory being
used for the purpose of analysis. Focus less on recommendations. All other students are expected
to participate in discussion with their analysis on hand.
Marks for case analysis will be divided in the following manner:
Case submission and presentation :
50%
Participation in open discussion:
50%
Note: At any moment of time if it is felt by the instructor that desired output is not achieved by
the above mentioned style of case discussion, format will be changed along with the distribution
of marks.
Mid-term: There will be a MCQ based mid-term exam covering case facts, readings and
theoretical and practical issues
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Term Paper based Group Project


The project for the class is to be undertaken in group. Please form your own groups by the end 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
Step 1: A list of projects with briefs will be floated before 2 nd session to all the groups. Each group can
bid for any two projects. In case of too many groups asking for same project we will allocate the projects
basis lucky draw.
Step 2: Once allocated and based on the brief you can decide your action plan and submit the same to the
course facilitator by 4th session in form of a small ppt (maximum 5 slides). In this ppt you are expected to
detail out how you will approach the problem.
Step 3: After getting clarity on the process ahead you are expected to submit a mid-term review report by
end of 13th session. This should be a two page report as to what have you done so far, what has been the
output, what kind of problems are being faced, how have you tackled them and what is the way forward.
In case needed we can do mid-way correction in the research process as well.
Step 4: Final report should be submitted by 19 th session and a small group viva will be conducted for the
same. Report to the company will be sent only after vetting from my office. Post this you will be issued a
Live Project Certificate from the company/or otherwise. Focus in this report should be both on
process and output and should be submitted both in report and ppt format.
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, quality of the written report, timely submissions and performance in viva
voce. The final report should not exceed 20, double-spaced, typed pages of text.

Part I
Part II

Heading

Session

Mid Term review


Final Report

13th session
19th session

Unit
of Weightage
Analysis
Group
10 marks
Group
15 marks

In completing your project work, please follow the instructions given below. Ignoring any
of the rules below will lead to a deduction of 2 points as penalty for each rule:
1. Do not violate the page limit and pages must be numbered.
2. Do not use a file cover or assignment cover. Only staple your assignment pages.
3. Include a running header with your Group No, Section and product name as: Group No 4BBritannia Biscuits.
4. Text must be double spaced, use New Times Roman fonts number 12, 1 inch margins all
around.
5. Do not leave too much white space between the two paragraphs
Alternative - Video
Group can decide to prepare a video on any relevant issue of Consumer Behaviour.
The group is expected to choose any concept in Consumer behaviour on which they will like to
prepare a video and submit the idea in a one page note format by 4 th session. The same has to be
approved by the course facilitator before you proceed ahead.
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Mid term review of your video will be done by 13 th session and the final submission has to be
made by 19th session.
Video will be evaluated for your creativity, relevance, innovativeness, quality of the video,
research and depiction (story line etc.). It has to be in a documentary format.
The length of the video should not exceed 15 min by any chance.
Few selected videos will be submitted for next ACB conference along with the name of the
faculty as guide. This will be done provided they meet the requirement of the conference. Please
ensure that the concept you choose is novel, researchable, and the story has not been copied.
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.
Grading:
Some of the basic rules are as follows:
1. Evaluated answer scripts of mid-term and end term will be shown to the students and
time will be given to them to come back for any clarification or doubts.
2. Marks of class participation and assignments will be calculated at the end of course.
3. Faculty will make all attempts to declare minimum of 30% marks before end term exam.
4. Total of marks will be displayed to all the students before releasing final grades. Any
corrections or doubts have to be discussed at that time only.
5. Grades based on these final marks will be prerogative of the faculty and will be directly
submitted to the Deans office.
6. While releasing grades institute guidelines will be kept in mind and class will be
compulsorily divided into minimum of 6 grade points. Final criteria and highest and
lowest marks for each grade point will be decided at the time of finalizing the grades only
and is the prerogative of the course faculty.

Course Outline:
Session plan along with issues to be discussed and readings for each of the session are given
below. Students are expected to come prepared with readings and assignments/cases for
discussion in class without any further notice. Submissions have to be strictly made as per
session plan.
Module I
Session 1:

Introduction
Consumer Behaviour - An Introduction & Key Foundations
Reading: Course Outline & Chapter 1 of Text book.
o Holbrook, M.B. & Hirschman, E.(1982), The Experiential Aspects of
Consumption: Consumer Fantasies, Feelings and Fun, Journal of Consumer
Research, 9(September), 132-140.
o Vanessa A. Tetteh (2016), Consumer Behavior Overview, Research Starters,
1-5.

Module II
Session 2:

Consumer Decision Process


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.
o David Court, Dave Elzinga, Susan Mulder, and Ole Jorgen Vetvik, The
Consumer Decision Journey, McKinsey Quarterly, No. 3, 2009, 1-11.
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.
Baba Shiva & Alexander Fedorikhin (1999), Heart and Mind in Conflict: The
Interplay of Affect and Cognition in Consumer Decision Making, JCR,
26(December), 278-292.
Case 1: Reviving the T8
Session 5 & 6: Consumer Expectations & Perceptions: Satisfaction & Value
Postpurchase Processes, Measuring satisfaction and value, Appreciative
Inquiry,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.
Arnould, E.J. & Price, L.L. (1993), River Magic: Extraordinary Experience
and the Extended Service Encounter, JCR, 20(June), 24-45.
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Xavier Lhuer, Tunde Olanrewaju, Hyo Yeon, What it takes to deliver


breakthrough customer experiences, McKinsey Quarterly, November, 2015,
1-6.
Case 2: Colgate-Palmolive:Cleopatra(IMD071)/ The Bank of Brindaban:
Enhancing the Service Delivery
Module III
Session 7:

Individual Determinants of Buyer Behaviour and Internal Processes


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 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.
Case 3: Puriteen Cosmetics
Exercise: Mapping Self Concept

Session 8:

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 9&10:Learning, Memory, Perception, 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 11&12: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
Glasman, Laura R. and Albarracin (2006), Forming Attitudes that predict
future behavior: A Meta-Analysis of the Attitude-Behavior Relation,
Psychological Bulletin, 132 (5), 778-822.
Case 5: Attitudes towards recycling of Household waste
Session 13:

Situational Determinants of Buyer Behaviour Store Choice Behaviour, and


Shopper Marketing
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Temporal, social, physical, task, purchase, usage, disposition and other antecedent
states. Store choice behavior.
Readings: Chapter 13 of the Book by Hawkins et.al. (2007) (Tata McGraw Hill)
Belk, R.W. (1975), Situational Variables and Consumer Behaviour, JCR,
Vol. 2(December), 157-164.
Class exercise: Discussion on Visual merchandising and its impact
Module VI
Session 14:

External Influences on Consumer Behaviour


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 Book by Hawkins et.al. (2007) (Tata McGraw Hill)
Case 6: Ranbir Singh Buying Insurance Policy
Class Exercise: Influence of family members in adopting family planning
measures

Session 15:

Social Class & Social Stratification


Homogeneity of needs in social class, product usage norms and evaluation rules
within class. Social Class stratification in India SEC, NCAER, BBDO, NRS, IRS
classification of society etc. Changes in Gender perspectives.
Readings: Chapter 13 of Text Book & Chapter 3& 4 of the Book by Hawkins
et.al. (2007) (Tata McGraw Hill)
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.)

Session 16:

Reference Groups, Opinion Leaders and Social Influences


In-group versus out-group influences, role of opinion leaders in diffusion of
innovation and in purchase process. Application to social networking
Readings: Chapter 7 of the Book by Hawkins et.al. (2007) (Tata McGraw Hill)
Pre-class Assignment: Review of a Blog or a Chain of emails

Session 17:

Cultural Influences on Consumer Behaviour


Understanding cultural and sub-cultural influences on individual, norms and their
role, customs, traditions and value system.
Readings: Chapter 12 of the Text Book and Chapter 2 & 5 of the Book by
Hawkins et.al. (2007) (Tata McGraw Hill)
Much, N.C.(1997), A Semiotic View of Socialisation, Lifespan Development
and Cultural Psychology: with Vignettes from the Moral Culture of
Traditional Hindu Households, Psychology & Developing Societies, 9(1)
(1997).
Prothero, Andrea. et.al. (2011), Sustainable Consumption: oppurtunities for
Consumer Research & Public Policy, Journal of Public Policy & Marketing;
Spring2011, Vol. 30 Issue 1, p31-38
Pre Class Assignment: A video on cultural ethos of any culture. Analysis of that
culture and its impact on Consumption habit

Module V
Session 18:

Consumer Behaviour in New Millennium


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Consumer relationships with Brands, Consumer Behaviour in E-Marketplace,


Marketers, public Policy & Consumer Conscience
Readings: Chapter 14 & 15 of the Text Book
Fournier, S. (1998), Consumers and Their Brands: Developing Relationship
Theory in Consumer Research, JCR, 24(March), pp.343-373.
Azar et al. (2016), Motivations to interact with brands on Facebook-Towards
a typology of consumer-brand interactions, Journal of Brand Management,
23(2), 153-178.
Session 19:

Guest Lecture: Consumer Insights


How do companies generate and develop Consumer Insights in case of new
product launches or product failures or acceptance?

Session 20:

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.

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