1/14/16 BRANDEIS UNIVERSITY INTERNATIONAL BUSINESS SCHOOL Course Syllabus BUS 155a: Consumer Behavior Professor Jane E.J. Ebert Tuesdays, Fridays 9.30 – 10.50am Location: Lemberg 54 Professor: Jane E.J. Ebert, Ph.D. jebert@brandeis.edu (781) 736 2294 Office: Lemberg 250 Office hours: Tuesdays 11-1pm and by appointment TA: Melissa Peng mxuefeipeng@gmail.com 1 Course Description Current approaches to business emphasize the importance of adopting a customer focus. Marketing, in particular, is a customer-driven function that begins and ends with the customer—from identifying customer needs to trying to meet those needs and ensuring post-purchase satisfaction. While all of us are consumers, our intuitions about our own behavior as well as that of others are often inaccurate. In this course you will learn about fundamental theories and concepts in consumer psychology and about exciting new findings to enhance your understanding of how and why people choose, use, and evaluate goods and services the way they do. This knowledge will come from lectures, readings, and discussions in class, but also from hands-on experiential learning through your involvement in a semesterlong group project. During the course you will frequently be asked to consider two perspectives when thinking about the concepts we cover. You will take the perspective of a marketing manager, who needs to understand consumer behavior to develop, implement and evaluate effective marketing strategies. You will also take the perspective of the consumer and understand influences of marketing on your own behavior. Course Format We will use a variety of materials and approaches in this course to illustrate consumer behavior phenomena and to get us thinking about managerial implications of those findings. Material will be presented in lectures, discussions, articles, videos, in case analyses, and by a guest speaker. We will apply relevant theories and research to realworld consumer behavior problems. In addition, you will conduct a consumer behavior project as part of a team that will require you to draw upon and apply the knowledge you gained during class, to obtain greater insight into a specific area of consumer behavior. Learning Goals You will: • Learn key theories, research and methodologies from the behavioral sciences (e.g., psychology, sociology, economics) that help us understand consumer behavior • Apply these concepts and theories in developing and evaluating marketing strategies, understanding their value and their limitations. • Develop your skills in managing and implementing a multi-step group project and practice oral and written communication skills. Prerequisite: BUS 152a 2 Preparing for Class In each class, there will be some discussion of the readings assigned for that class, applying the knowledge gained from those readings to develop managerial insights about a variety of consumer behavior issues. To benefit from this approach, you must be wellprepared when you come to class. This means you must have read all the readings and thought about them in detail. For each class, you will be given several questions or an exercise that draw upon the readings to prepare for discussion. For a number of the classes you will have to hand in written answers to the questions, and later in the semester you will be examined on your understanding of the readings. If a case is assigned, you should have read the case and you should arrive ready to discuss your analysis and solution for the marketing opportunity or challenge in the case. To begin discussions of cases and other readings, I will typically “cold call” a student (randomly selected). Course Materials All reading materials listed below are required. Please note that the assigned readings are central to the learning in this class. They will form the basis of the two exams and of the discussions in class. In class, I will be assuming that you have completed all the readings. We will typically use time in class to discuss and explore some (but not all) of the concepts covered in the readings in greater detail. When reading, be sure to think about the relevance and importance of the concepts you encounter 1) to you as a consumer and 2) to marketers. a) Textbook: This is a custom book consisting of chapters taken from a textbook: Consumer Behavior (3e) Human Pursuit of Happiness in the World of Goods by Avery, Kozinets, Mittal, Raghubir, and Woodside. This book is available at the Brandeis bookstore. b) Harvard cases: Cases from Harvard publishing are contained in an electronic “coursepack” I have set up there. The link is provided on the course website on Latte. Using this link, please go to the website to purchase and download the readings. The discounted price is $3.95 for each of the three cases. You will need to register on the site. If you have any problems call the customer service at (800) 988-0886, and let me know. Please print out each cases to bring to class. c) Remaining readings: These will be electronic files and will be posted on the Latte site for the class for you to download at least a week in advance of the relevant class. (Most of these readings are available for free to the Brandeis community through the Brandeis Library electronic sources, e.g., Wall Street Journal, New York Times, and other media articles. The remaining files consist of shorter excerpts, e.g., a single chapter, from other books.) d) Class notes and questions to prepare: I will provide copies of the slides for each topic at the beginning of class. These slides provide a (detailed) outline of the class discussion, but you will need to take additional notes to fully capture the material discussed in class. Questions to prepare for class and for the homework that you will hand in will also be posted on the website. 3 Course Evaluation All assignments are required. Class attendance and participation (including homeworks)....25% Exam 1……………..………..............................……….........25% Exam 2 ...............................…………………………….........25% Group consumer behavior project……..………….….….......25% Class attendance and participation. First, I expect each student to come to class ontime, having thoughtfully prepared all readings and assignments due that day. Simply attending class is not enough to do well. You need to contribute to discussions. The three cases provide especially good opportunities for contributing, but every class will involve some discussion of the readings. So come to class prepared to speak up. Both the quality and quantity of your contributions matter. (I can’t judge quality if you never speak.) For many classes (8), you will be asked to write brief responses to several questions about the readings for that class. These homework assignments will help prepare you for class discussions and exercises and for the exams. They will be graded pass/fail as part of class participation. Students who are well prepared and who participate thoughtfully in many class discussions tend to do well in participation. If you are hesitant to participate in class, please come and see me. I am happy to work with you to help with this. You are permitted two absences for any reason (interviews, sickness, religious observance, sports events, other extra-curricular demands, etc) without penalty, but you are still responsible for any material you miss in those classes, i.e., assignments, readings, etc. For each additional absence, your participation grade will be reduced a half-step, e.g., A- becomes A-/B+; B becomes B/B-. If you have perfect attendance, but never actively participate in class discussions, your participation grade will be C+. Exams. Two exams (in class, open-book, no computers or other technology allowed) will be administered during the semester. They will consist of multiple-choice and short answer questions (from a few words to a couple of paragraphs in length) and will last up to 1 hour. You must remain in the classroom until you have completed the exam. The exams will test your understanding and knowledge of the readings and lectures. Exam 1 will assess the material covered in class up to that point. Exam 2 will assess the material covered from Exam 1 up to Exam 2. No make-up exams are given. Group field project on consumer behavior. This project provides a hands-on opportunity to understand specific behaviors that consumers engage in. The project will be conducted in a group. Projects must focus on understanding consumer behavior relating to a particular product, service, or other consumer offering that is relevant for students like you. You may want to pick an offering that is likely to have complex meaning for consumers, to benefit from the rich methods you will use in your research. This does not mean you have to choose a high-price item. For example, many consumers have complex feelings about Coke (positive personal meaning of the brand, but it is a relatively unhealthy high-sugar drink). Examples of past topics chosen by students include: car insurance, Gatorade sports drink, Facebook, Tom’s shoes. Whatever you choose, you may want to choose one of the following questions to explore about this 4 product, service or other offering: How do consumers make decisions about this product? How do they view this product relative to its competitors? How do they use this product? What benefits do consumers feel they get from this product? What you learn will help you to address marketing questions like: How might the companies change their marketing strategies to improve image and product positioning, to ease the acquisition process for consumers, to enhance consumer experience with the product, or to influence consumer satisfaction and loyalty? During the course of the semester, your group will investigate your topic using two exploratory research methods: a) focus groups and b) an additional method. This can be selected from the following methods, that are also used for exploratory marketing research: ZMET or another projective method like TAT, laddering, or an observation method. The course includes classes on these methods. The scope and sample size of the project make it similar to typical, exploratory consumer research projects that marketing groups in companies regularly commission and field. You will participate in the project in groups of 4 individuals (groups formed by you), and you will be graded as a group. All group members are expected to participate fully in the project, including attending group meetings, preparing and applying each research method, conducting analyses, and preparing and presenting the project in the final presentation. If there is a “free rider” problem in any group, the group should talk to the group member first to try to resolve the problem. If that doesn’t solve the problem, the group should meet with me to work it out. At the end of the class, I will also ask each group member to assess their fellow group members’ contributions to the project. These assessments can influence individuals’ project grades. The field project culminates in a presentation (about 20 minutes plus a few minutes for questions). More information on the project and the presentation will be provided in class. Class Conduct Use of technology in the classroom. To help you and your fellow students stay focused on the class, all laptops, tablets, and phones are prohibited. Please keep them turned off and in your bag during class. You may be marked as absent if you use one of these devices without permission during class. Arrive on time. Latecomers are distracting. Habitual tardiness will have a negative impact on your participation grade. Late assignments. Late assignments will not be accepted without my prior permission, and will incur a penalty unless the circumstances are exceptional (as judged by me). Academic honesty. You are expected to be honest in all of your academic work. Please consult Brandeis University Rights and Responsibilities 5 (http://www.brandeis.edu/studentlife/srcs/rr/) for all policies and procedures related to academic integrity. Students may be required to submit work to TurnItIn.com software to verify originality. Allegations of alleged academic dishonesty will be forwarded to the Director of Academic Integrity. Sanctions for academic dishonesty can include failing grades and/or suspension from the university. Citation and research assistance can be found at LTS - Library guides (http://guides.library.brandeis.edu/c.php?g=301723&p=2013447). Disabilities. If you are a student with a documented disability on record at Brandeis University and wish to have a reasonable accommodation made for you in this class, please see me immediately. Communications and Getting Help I will communicate any changes in the syllabus or additional instructions about requirements in class and via email. Please ensure that you check your Brandeis email address regularly. I hope you will enjoy participating in the class discussions. If you are hesitant to participate for any reason or if you have questions about anything, please come and see me. I am happy to help. Please don’t hesitate to contact me for assistance for any reason, or if you have questions, comments, or concerns about the course. I can be reached by email (jebert@brandeis.edu), by phone (office, 781 736 2294), or in my office (Lemberg 250). E-mail is typically the best way to contact me outside of class. Office hours are Tuesdays 11-1pm and by appointment (emailing at short notice for an appointment or stopping by my office is often fine). Also feel free to contact the teaching assistant for the class, Melissa Peng (mxuefeipeng@gmail.com), with questions or concerns. 6 Schedule of Classes and Assignments This schedule could change, e.g., to accommodate a speaker or due to weather-related school closings. Changes will be announced in class and over email. Clas s Date Module Topic Readings 1 F 1/15 2 T 1/19 Consumer decisions The decision-making process Avery Ch. 11 3 F 1/22 Consumer decisions Context effects 1) Ariely: The truth about relativity 2) Schwartz: Why everything suffers from comparison 3) NYT: How salad can make us fat 4 T 1/26 Consumer decisions Effects of choice 1) Schwartz: Let's go shopping; 2) Schwartz: When only the best will do 3) Thaler and Sunstein: Choice architecture 5 F 1/29 What affects consumer decisions Motivation 1) Avery Ch. 2 (up to, but not including, the section on Emotions) 2) NYT Who pays $600 for jeans? 3) Deloitte/CFO Journal: What Businesses Can Learn from Maslow’s Hierarchy of Needs 6 T 2/2 What affects consumer decisions Identity 1) Avery Ch. 5 2) Segmentation Resource chapter 3) Gulati: Building a resilient organization 7 F 2/5 Marketing research methods Marketing research: Qualitative methods Market Research Resource chapter 8 T 2/9 Marketing research methods Case: Boston Beer HBS Boston Beer Co.: Light Beer Decision Assignments due Introduction Readings homework #1 Readings homework #2 Readings homework #3 Names of CB group members due CB group project topic due 7 9 F 2/12 Marketing research methods Marketing research: Observation 1) Market Research Resource chapter (again) 2) Advertising Age: Behavior defines consumers 3) WSJ Studying messy habits to sweep up a market 4) CNN.com: The Spirit of Design Designing the Perfect Consumer T 2/16 NO CLASS F 2/19 NO CLASS 10 T 2/23 Project workshop Workshop 1: Focus group questions Focus group questions 11 F 2/26 Exam 1 Exam Review past lecture notes and readings for exam 12 T 3/1 Influencing consumers Attention and Sensory Perception 1) Avery, Ch. 3 (to 71 and 76 to end) 2) NYT Anywhere the eye can see 13 F 3/4 Influencing consumers Effects of expectations on perceptions 1) Avery, Ch. 3 (p.71-75) 2) Ariely: The effect of expectations; 3) Advertising Age: Why McDonald's hasn't cut the fat 14 T 3/8 Case Case: L'Oreal HBS L'Oreal of Paris: Bringing "Class to Mass" with Plenitude 15 F 3/11 Influencing consumers Attitudes and advertising Avery, Chs. 7, 8 Readings homework #5 16 T 3/15 Influencing consumers Social influence 1 1) Cialdini: HBR Harnessing the Science of Persuasion 2) Berger: Emotion 3) Berger: Public Short reports due on focus group results 17 F 3/18 Project workshop Workshop 2: Design method 2 As needed: Laddering; ZMET; Ethnography 18 T 3/22 Influencing consumers Social influence 2 1) Cialdini: Crafting Normative Messages to Protect the Environment Readings homework #4 Readings homework #6 8 2) NYT: The Destructive Influence of Imaginary Peers F 3/25 NO CLASS 19 T 3/29 Influencing consumers Marketing and Ethics 1) Sherman: Memo on Ethical awareness 2) Nwachukwu et al: Ethics and Social Responsibility in Marketing (p.107-109) 3) McGraw and Tetlock: Taboo Trade-offs, Relational Framing, and the Acceptability of Exchanges (p.2-4) 20 F 4/1 Case Case: Renova INS Renova Toilet Paper: Avant-garde Marketing in a Commoditized Category 21 T 4/5 Exam 2 Exam Review past lecture notes and readings for exam 22 F 4/8 Guest speaker 23 T 4/12 Project Project workshop CB project group presentations; Presentation slides due for all groups 24 F 4/15 Project Field project presentations CB project group presentations 25 T 4/19 Project Field project presentations CB project group presentations 26 Th 4/21 Project Brandeis Friday Field project presentations Brief wrap-up CB project group presentations Readings homework #7 9