BUS-MKTG 750 Consumer Behavior (Winter 2012) Fisher College of Business The Ohio State University Monday & Wednesday 5:30- 7:18 p.m. Schoenbaum 305 Instructor: Office: Phone: Office hours: E-mail: Karthik Easwar 560 Fisher Hall 292-1155 (O) Mon & Wed 4:00 pm- 5:00 p.m. or by appointment easwar.1@osu.edu COURSE TEXT Consumer Behavior, 4th edition, by Hoyer and MacInnis. Publisher: Haughton Mifflin. COURSE WEBSITE https://carmen.osu.edu/ COURSE DESCRIPTION An examination of contemporary theory and research on the topic of consumer behavior. COURSE OBJECTIVE (1) To understand consumer behavior from a variety of perspectives; (2) To develop the ability to apply the broad principles underlying human behavior in general and consumer behavior in particular in a variety of contexts and situations; (3) To appreciate and understand multiple roles played by marketing research, marketing strategy, and basic research on intra- and inter-personal processes in contemporary marketing practice; (4) To develop and enhance both analytical and presentation skills of students. 1 GRADING Your grade will be based on two exams, a team project, and class contribution. Exam 1 Exam 2 Team Project (oral presentation and written report) Class Contribution A AB+ B B- 930 – 1000 900 – 929 870 – 899 830 – 869 800 – 829 C+ C CD+ D E 300 300 300 100 770 – 799 730 – 769 700 – 729 670 – 699 630 – 669 0 – 629 (1) Exams (300 x 2) There are two exams. Each exam is independent and NOT comprehensive. They will cover lecture, discussion, and assigned readings. Exam format will consist of a variety of multiple choice, short answer questions and some longer (~ one paragraph) answer questions. You will be expected to know major concepts and be able to provide examples to illustrate these ideas. For exam 1, you will be responsible for the material in the first half of lecture as well as Ch.1, and 3 – 7. For exam 2, you will be responsible for the material in the second half of lecture as well as Ch.8-12, and 16. Missed Exams or Team Project Due Dates: Make-up examinations will only be given if you notify me prior to the exam. Please understand that you are responsible for arranging your schedule to accommodate your classroom obligations. Only if unforeseen circumstances seriously compromise your ability to complete an obligation will permission be given to postpone taking an exam. No points will be awarded to any exam that is not completed on schedule without prior approval. Turning in a team project assignment late will result in a 10% grade reduction (off the final grade) for each 24 hour period following the due date. Grading Policy. I will provide timely feedback and adopt a fair and equitable grading philosophy. Requests to have a grade reconsidered should be submitted in writing within 7 days of the assignment being returned to you. No re-grading will be considered after this 7 day window, unless it is a matter of a math error which will always be cheerfully corrected. Please do not approach me in class to discuss your grade on an exam or assignment. This tends to create confusion and I cannot make the necessary changes unless I have access to my computer. 2 (3) Team Project (300) At the end of the first class, I will be placing you into teams of 5- 6 students who will be working together on the team project. Your team is expected to conduct a research project on a product/company of your selection to examine consumer behavior problems facing companies/products today. The purpose of this project is to apply consumer behavior problems to specific situations. You can choose one of the following two consumer behavior project options: Option 1 – Company Study Describe a company, its target market, and decision process used by its customers. Specifically, your paper should include the following: 1. Introduction Who founded the company, and what is its current status? Describe the company’s principle product (or products) in terms of features and benefits as well as anything else that is important to note (e.g., unique product design). Has the product gone through any modifications/improvements, or have any line extensions been added? What stage of the product life cycle is this product currently in? Cite evidence such as trends in sales and profits, the nature of the competition, and the types of marketing strategies. 2. Identification of the target market(s) Who is (are) the primary target market(s) for this product? Describe these markets in terms of demographic, psychographic, and other relevant characteristics. Do the same if there are any secondary target markets. Are there any potential segments that you would recommend for this product? Describe these segments in terms of demographics (e.g., subcultural, social class, family life cycle stage, etc.), psychographics (personality and/or lifestyle), and buyer behavior (benefits sought, usage occasion, deal proneness, heavy usage, etc.) 3. Consumer decision making processes What type and amount of information about this product do consumers use? How involved are they? Which level of decision making are they in? How do consumers evaluate different brands in this product category (criteria and decision rules)? How do consumers go about shopping for this product? How do consumers dispose of this product after its usage? 4. Recommendations for the future of the company. (If no changes are suggested, then explain why the firm’s current strategy will probably be “on target” in the foreseeable future.) Target market and/or positioning changes Product decisions Pricing decisions Distribution decisions Promotion decisions 3 Option 2 – Evaluation of Use of Consumer Behavior Concepts by Two Competing Brands 1. Select a specific product category (e.g., dog food, laptop computers, cola drinks, airlines, perfume, fast food restaurants, automobiles, cosmetics, hotels, MP3 players, etc.) 2. Acquire and summarize background information on this product class in terms of each of the following areas (you need not acquire every type of data listed for each area): Market (size and growth rate of market; segments and their characteristics; number, names, and sizes of firms; shares of market; sales volumes; profitability, etc.) Description of this product category (definition of product; number of brands; types of variations such as line extensions and sub-product categories; features and benefits; functions and uses; branding and packaging; stage in product life cycle, etc.) Consumer behavior (consumer decision process, including level of involvement, level of decision making, types of consumer purchasing decision situations, sources of information consulted, criteria used in making a purchase decision and their relative importance, sociocultural and other environmental influences, psychological influences, attitudes, etc.) Pricing (price range, price points by brand, pricing strategies and techniques, etc.) Distribution (where sold, types of stores and other distribution channels including e-commerce, extent of availability, etc.) Promotion (promotional tools used, messages, media, spend level, etc.) 3. Select two brands within your product category with very different marketing/promotions strategies. Submit as exhibits items such as sample ads and/or other promotional materials, commercial transcripts/descriptions, packages, and any other relevant marketing artifacts. Compare each marketing/advertising campaign in terms of the sociocultural and psychological impact it should have on the consumer, citing specific behavioral science concepts. Which market segments (demographics, psychographics, and/or behavioral) is each marketer attempting to reach? How is each trying to position the product? How is each marketer trying to appeal to the consumer in behavioral terms? 4. Based upon the above discussion, identify which of the two marketing/advertising campaigns is more effective in application of consumer behavior concepts and discuss the reasons for your opinion. This should include an analysis of each marketer’s use of knowledge of consumer behavior as discussed above. During class on Jan 18, each group will meet with me to discuss your topic and research question. 4 Written Report (250 out of the 300) Each team should turn in a written report as outlined in the project option description. Your complete written summary should not exceed 20 pages double-spaced typed prose (1” margins, 12-point type), plus exhibits and appendices (e.g., tables, figures, references). Business style writing should be used, which means that there should be clearly identified section headings and bulleted lists can be used to indicate major findings, but not as an alternative to good writing. Each group will be asked to complete this report in two parts to encourage continued progress on the report. However, the report will not be graded until the final due date. The first half of the project must be completed and turned in on Feb 8 so that I can ensure your team is making progress. For option 1, the first half will consist of the Introduction and Consumer Decision Processes sections, as outlined in the option 1 description. For option 2, the first half will consist of the background information, as outlined in the option 2 description. After turning in the first half of the report, all team members are expected to see me to discuss your progress during class on Feb 15. Any late submissions at this checkpoint will be treated in accordance with the grading policy. The final project will be turned in on March 5. For option 1, this will consist of the first half completed earlier with any alterations and the Target Market and the Recommendations sections, as outlined. For option 2, this will consist of the first half completed earlier with any alterations and the Brand Comparison and the Evaluation of Advertising Campaigns sections, as outlined. The entire report will be graded after receipt of both sections together at this point in time. Each written report must include a list of references used. Any standard reference format may be used. I recommend that you list references alphabetically at the end of the paper. Then, use an in-text citation (e.g., 14). Also, cite the periodical and date for each ad that you use. Oral Presentation (50 out of the 300) All team members should present their research to the class on their assigned date in the final week of classes. You are expected to provide a copy of the presentation slides to me. Your presentation should be informative, insightful, and professional. Projects will be evaluated on the basis of the thoroughness, originality, and incorporation of class concepts in your research as well as your ability to clearly communicate. A significant component of the evaluation is how well you pull together a coherent, well-justified, and concise presentation. Every attempt should be made to relate the analytical tools and approaches discussed in class. Each team will have 15 minutes to present its research, followed by 5 minutes of questions and discussion. All class members are expected to attend presentations and actively participate by asking questions or making insightful comments to add to the discussion. 5 (4) Class Contribution (100) Participation is an important part of the learning process and I strongly encourage you to be actively involved! Course contribution does not mean the amount of time you talk in class, or simply your presence in class. Your class contribution grade is weighted heavily in favor of quality over quantity. Given that daily contribution is subjective and because my memory is not perfect, I recommend that you keep a personal log of your own contribution (jot down the date and comments you made). This will be useful if you feel that I have unfairly evaluated your contribution. Many people are intimidated by the "obligation" of speaking up in class. Don't be. Your anxiety will be reduced only through practice! Getting comfortable with public speaking will give you a HUGE career advantage. Here's the secret to cutting your stress level - BE PREPARED. I will call on people in class to share their opinions and perspectives. In addition you are welcome at any time to ask questions. Honor Code Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. Thus, The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University’s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.” The Ohio State University’s Code of Student Conduct (Section 3335-23-04) defines academic misconduct as: “Any activity that tends to compromise the academic integrity of the University, or subvert the educational process.” Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an examination. Ignorance of the University’s Code of Student Conduct is never considered an “excuse” for academic misconduct, so I recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct. If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that you have violated the University’s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University. If you have any questions about the above policy or what constitutes academic misconduct in this course, please contact me. Other sources of information on academic misconduct (integrity) to which you can refer include: • The Committee on Academic Misconduct web pages (oaa.osu.edu/coam/home.html) • Ten Suggestions for Preserving Academic Integrity (oaa.osu.edu/coam/tensuggestions.html) • Eight Cardinal Rules of Academic Integrity (www.northwestern.edu/uacc/8cards.html) 6 Class Schedule Week Date Topics Readings 1 1/4 What is Consumer Behavior? Ch.1 1/9 Consumer Motivations Ch.3 1/11 Consumer Perception Ch.4 1/16 MLK Day: No Class 1/18 Meeting Day 1/23 Consumer Knowledge and Categorization Ch.5 1/25 Attitudes Ch.6 and Ch.7 1/30 Exam I 2/1 Memory and Learning 2/6 Group Work Day 2/8 Information Search Ch.9 2/13 Judgment and Decisions Ch.10 and Ch.11 2/15 Meeting Day 2/20 Post-Decision Processing Ch.12 2/22 Social Influence Ch.16 2/27 Exam II 2/29 Group Work Day 3/5 Class Presentations 3/7 Class Presentations and Wrap-Up Team Project Due Dates Groups assigned 2 3 4 Topic and Research Question meeting 5 Ch.8 6 7 First Half of Report Project Update meeting 8 9 10 Final Written Report and Slides 7