CASE WESTERN RESERVE UNIVERSITY
THE WEATHERHEAD SCHOOL OF MANAGEMENT
MKMR 411
Consumer Behavior
Fall 2001
K4111: T 1.00 to 3.00pm
Instructor:
Office:
Phone:
Assistant:
E-mail:
Office Hours:
Tripat Gill
Enterprise Hall 536
368-4639
Patrick Leclair (368-2095)
tpg2@po.cwru.edu
Tuesday, 4.00pm to 6.00pm, or by appointment.
Course Description
The customer is the raison d’être (reason to be) for an organization. To the extent that an
organization adopts the marketing concept, understanding how customers behave in the
marketplace is critical. Consumer behavior is not limited to ‘behavior’ per se but also entails
understanding the underlying psychological mechanisms that drive behavior. The objective
of this course is to unpack the various elements of a consumer’s ‘black box’ and help
marketers see what lies behind that is seen.
The course comprises of lectures, case discussions and a group project. Lectures cover the
theoretical concepts relevant to consumer behavior and supplement them with evidence and
examples form the ‘real world’. The cases provide an opportunity to apply what has been
learnt in the classroom to real-life marketing issues. The group project enables you to go
beyond what has been learnt in class.
The in-class environment is expected to be interactive. The objective is to maximize learning
by utilizing the combined knowledge base and experience of all the students and the
instructor.
Learning Objectives
a. To know the theories and concepts relevant to various aspects of consumer behavior.
b. To understand how these concepts apply in the marketplace, e.g., in advertising, new
product development, consumer research and retail environments.
c. To apply these concepts to address real-life marketing issues, via case analysis.
d. To apply the consumer behavior model in the context of new product adoption.
Course Material
1. Text: “Consumer Behavior and Marketing Strategy” 6th Edition, by J. Paul Peter and
Jerry C. Olson. Publishers: McGraw Hill Irwin.
2. Course Pack: Comprising of cases and readings.
Course Requirements
Class Participation
It is expected that you come prepared with the readings assigned for each class and actively
participate in class discussions. As mentioned before we would like to maximize learning
through the combined knowledge base and experience of all students put together.
Class participation grades are based on both the frequency and quality of comments made
during class. You do not have to participate in every class, and certainly not for the sake of
it. Comments that add value to the discussion or raise new / important issues are worth the
most. Worthy comments include, asking questions, answering questions I throw to the class,
raising issues in case discussions and project presentations, etc.
Cases
There are four cases, that each gives an opportunity to apply what has been learnt in the
classroom to real-life marketing issues. The focus in analyzing these cases is on asking the
right questions and not providing the ‘right’ solution. As there is no one right solution to a
case. You should define the problem from a consumer researcher’s point of view, and not
from that of a marketing strategist. That is, focus on the consumer issues and how they can
be resolved, rather than trying to maximize short-term profits for the company.
You will need to turn in written case reports for all the four cases as a group. Each group
should comprise no more than 5 members and no less than 3. The write-up should not be
more than 5 pages (double-space) in length (excluding title page, appendices, figures, and
tables). Please hand in the write-ups at the beginning of each class. Late submissions will be
penalized 30% of the maximum grade for that particular case.
In order to allow for learning to take place, the mark distribution across the four cases is as
follows – Case1=3%; Case2=5%; Case3=5%; Case4=7%.
I shall provide you with thought questions for each case in order to guide your thinking.
Exam 1 and 2
The two exams provide an assessment of your knowledge and understanding of the theories
/concepts covered in class and in the text. Both the exams will be in the form of multiple
choice and short/long-answer type open-ended questions. The questions could be, but not
limited to, explaining a theory/concept, providing an example to illustrate a theory, or
recognizing a theory/concept in a given example.
Group Project
If the maxim that “80% of all new products fail” is true, then there is a lot to be said about
marketers understanding of their customers. In addition to knowing why consumers buy
what they do it is equally important to know why they not buy what they don’t. The focus of
the group project is precisely on this issue.
In this project you are required to identify and critically examine a new product failure. You
can proceed with this task in the following mannera. Identify a new product that was launched within the last 5 years and failed. You are
not limited to a new product, it could be a new service, a new advertising medium or
even a new concept (e.g., the dot.com phenomena). It is important that the failure of
the new product can be attributed primarily to consumer-related issues and not to
external factors such as product defects, availability, government regulations etc.
b. Develop a scenario depicting the marketer’s view of the new product launch. The
latter scenario is to be constructed by gathering detailed secondary/primary
information about the product at the time of its launch. That is, how it was
advertised, what was it positioning and what were the success factors identified by
marketers. (Some sources of information are mentioned below).
c. Now construct the consumer’s side of the scenario. In order to do this conduct indepth interviews with atleast 4 prospective customers of this product. Based on these
interviews identify the key reasons why customers did not adopt this product.
d. Link these reasons to the underlying theoretical dimensions of the consumer
behavior model that we study in class. That is, specify the factors underlying the
product’s failure - in terms of consumer motivations, categorization, comprehension,
attitude, decision processes, social/cultural influences etc.
e. Enumerate the key insights gained about consumer behavior in the context of new
product adoption.
f. Mention some reasons for marketer’s lack of anticipation of these consumer issues.
g. Suggest ways in which a marketer can anticipate and overcome the factors that
underlie consumer resistance to new product adoption.
{Some sources of information - Consumer Reports, American Demographics, Marketing
News, ABI-Inform (an electronic database), BusinessWeek, Fortune, BrandWeek, etc. and of
course, the Internet}.
We would discuss the group project details in class.
Group project reports
1. One page project proposal identifying the new product, and the data collection plan.
Due on September 25.
2. Three page interim progress report – should include preliminary insights gained from
secondary data and consumer interviews. Due on October 23.
3. Final report of no more than 15 pages (double spaced) excluding title page, figures,
tables, references and appendices. Due on December 4.
Course Evaluations
Class Participation
Group Case Reports
(Case1=3%; Case2=5%;
Case3=5%; Case4=7%)
Exam 1
Exam 2
Group Project - Oral
- Written
10%
20%
15%
20%
10%
25%
Honor Code
All students are required to comply with the guidelines prescribed in the Weatherhead
Standards of Academic Honesty. Failure to do so will result in appropriate penalties.
Index Card
All students are required to provide me an index card with their name, student ID number,
e-mail address and a recent photograph (could be a photocopy of the student ID). The latter
would help in my getting to know you and recognize you. You may include any other
information about you as well – e.g., your career and personal interests.
COURSE SCHEDULE
(** Note that under Readings, PO = Text: Peter & Olson; CP = Course Pack)
(Session) DATE
TOPIC
READINGS
(1) August 28
Introduction to Consumer Behavior
PO: Chap1,2
(2) September 4
Consumer Motivation
Discuss Group Projects
PO: Chap 4
CP: 1,2
(3) September 11
Attention and Perception
PO: Chap 5
CP: 3
(4) September 18
Knowledge and Categorization
PO: Chap 3, 4
Case: TiVo
(5) September 25
Attitude formation and change
Project Proposal Due
PO: Chap 6
CP: 7, 10
(6) October 2
Attitude formation and change
PO: Chap 6
Case: Pacific Western
(7) October 9
EXAM 1
All the material
from Session 1 to 7
(8) October 16
Consumer Decision Making
PO: Chap 7
CP: 5, 6
(9) October 23
Consumer Decision Making (contd.)
Interim Project Report Due
PO: Chap 7
CP: 9, 11
(10) October 30
Consumer Learning
PO: Chap 9
Case: L’Oreal
(11) November 6
Cultural Influences
Social Class, Reference Groups and Family
PO: Chap 12
PO: Chap 13, 14
(12) November 13
Individual Differences
Customer Satisfaction
PO: 13
CP: 13, 14.
(13) November 20
Consumer Behavior on the Net.
PO: Chap 19
CP: 15, 16
Case: Autobytel
(14) November 27
PROJECT PRESENTATIONS
(15) December 4
PROJECT PRESENTATIONS
Final Project Report
(16) December 11
(Tentative)
EXAM 2
All the material
Session 1 to 15
Course Pack – Readings and Cases
1. “Customer-driven Innovation,” Billington, Jim, Harvard Management Update.
[Product Number – U9807C, Publication Date: 7/1/98]
2. “The Fourfold Path to figure our what your customers really want,” Billington, Jim, Harvard
Management Update. [Product Number – U9809B, Publication Date: 9/1/98]
3. “Spark Innovation Through Emphatic Design,” Leonard, Dorothy & Rayport, Jeffrey, F.,
Harvard Business Review. [Product Number – 97606, Publication Date: 11/1/97]
4. Case: TiVo - Product Number – 501038, Publication Date: 1/18/01;
5. Analyzing Consumer Perceptions, Dolan, Robert J.
[Product Number – 599110, Publication Date: 6/28/00]
6. Analyzing Consumer Preferences, Dolan, Robert J.
[Product Number – 599112, Publication Date: 3/27/00]
7. “Discovering New Points of Differentiation,” MacMillan, Harvard Business Review, 1997.
[Product Number – 97408, Publication Date: 7/1/97]
8. Case: L’Oreal of Paris: Bringing “Class to Mass” with Plenitude:[Product Number – 598056, Publication Date: 10/23/97]
9. Should You Take Your Brand Where the Action Is? Harvard Business Review. Sept 1, 1997
(97501), Aaker, David A.
10. “Are you reaching your customers?”, Harvard Management Communication Letter, Bierck,
Richard. [Product Number – C0012B, Publication Date: 12/1/00]
11. “Discover Your Product’s Hidden Potential,” MacMillan Ian C. & McGrath Rita Gunther,
Harvard Business Review. [Product Number – 96305, Publication Date: 5/1/96]
12. Case: Pacific Western Brewing Co.: Going Organic
[Product Number: 99A006, Publication Date: 3/25/99]
13. “Want to Perfect Your Company's Service?: Use Behavioral Science,” Richard B. Chase ;
Sriram Dasu, Harvard Business Review Article
[Publication Date: 6/1/01 Product Number: R0106D]
14. “The Value of a Satisfied Customer” Harvard Publishing. April, 1995
[Product Number: IES055]
15. “Contextual Marketing: Real Business of the Internet,” Kenny, David & Marshall, John F.,
Harvard Business Review. [Product Number – R00608, Publication Date: 11/1/00]
16. “E-Loyalty: Your Secret Weapon on the Web,” Reicheld and Schefter, (HBR OnPoint
Enhanced Edition). [Product Number: 5181, Publication Date: 10/1/00]
17. Case: Autobytel.com. (9-500-015). [Product Number: 500015, Publication Date: 5/10/00]