1 Welcome to MKTG 333 - Consumer Behavior Western Illinois University, College of Business and Technology Accredited by AACSB, The International Association for Management Education Spring 2003 Instructor: Office: Telephone: Home Page: E-mail: Meeting Times: Location: Office Hours: Dr. John T. Drea, Associate Professor of Marketing 430-E Stipes 298-1272 (if there’s no answer, please leave a message or call 298-1198) www.cbt.wiu.edu/John_Drea/index.htm jt-drea@wiu.edu MKTG 333-41: TH 11:00-12:15 MKTG 333-42: TH 12:30-1:45 ST 210 TH 2-4:30 pm and by appointment COBT Mission The Mission of the College of Business and Technology at Western Illinois University is to provide a focus for educational excellence which promotes the intellectual and personal growth of participants and enhances their contributions to individuals, organizations, and society. Course Description (from the WIU catalog) The application of behavior science concepts and methods to the solution of marketing problems and the development of marketing strategies. Psychological and socio-cultural factors are examined in relation to the consumer decision-making process. Credits 3 semester hours Prerequisites MKTG 327 - Marketing Principles Text Hawkins, Del I., Roger J. Best, and Kenneth A. Coney (2001). Consumer Behavior: Building Marketing Strategy, Eighth Edition. Boston: McGraw-Hill. Course Goals Upon completion of this course, the student should be able to: 1. Understand the role and function of consumer behavior within the discipline of marketing. 2. Describe the role of values and gender play in consumer decision-making. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Analyze a commercial marketing database to determine characteristics of identified consumer groups. Define, compare, and contrast affect and cognition. Describe the intertwined relationship between affect and cognition. Describe the function of involvement in a cognitive portrayal of consumer behavior. Describe the function of product knowledge in a cognitive portrayal of consumer behavior. Understand the roles played by attention and comprehension in cognition. Describe how a marketer is more likely to get marketing communication information stored into consumer memory. Model the consumer decision-making process, using a cognitive approach. Use a behavioristic approach to explain consumer purchase behavior. Use classical and operant conditioning to explain consumer purchase behavior. Explain how consumers can acquire knowledge through vicarious learning, and how marketers can use this process to increase consumer product knowledge. Explain the external environmental influences on consumer behavior, including a. culture b. subculture c. reference groups d. family Use consumer behavior principles and concepts to develop strategies in the following areas: a. product strategy b. pricing strategy c. promotional strategy d. distribution strategy e. segmentation strategy Explain how innovations are typically diffused into a society. Have a practical understanding of the basis for making ethical judgments about marketing decisions related to consumer behavior. Course Outline Week 1 Dates 1/1416 2 1/2123 3 1/2830 Assignment Read Syllabus Read Chapter 1: Consumer Behavior and Marketing Strategy Read Chapter 3: The Changing American Society: Values Quiz #1, Chapter 3 (1/23) Read Chapter 4: The Changing American Society: Demographics and Social Stratification Quiz #2, Chapter 4 (1/30) Selection of Research Option In-class sign-up sheet (1/30) Tutorials Personal Values and Consumer Behavior (Cirillo) Psychographics (Pence) Baby Boomers (Bogardus) Bulletin Board #1, Pitino, “Establish Good Habits” (1/23) 3 4 5 2/4-6 2/1113 6 2/1820 7 2/2527 8 3/4-6 No class, 2/4 (Assessment Day) Read Chapter 5: The Changing American Society: Subcultures Quiz #3, Chapter 5 (2/6) Eastgate Liquor Problem Specification Due (2/6) Read Chapter 6: The American Society: Families and Households Quiz #4, Chapter 6 (2/13) Examination #1 (Chapters 1, 36) 2/18 Read Chapter 7: Group Influences on Consumer Behavior Read Chapters 8: Perception Quiz #5, Chapter 8 (2/27) Closure (Smith) Subliminal Perception (Thomas) Serial Position Effect (Mole') Read Chapter 9: Learning, Memory, and Product Positioning Eastgate Liquor Solution Due (3/4) Brand Equity (Fernbaugh) Classical Conditioning (Lybarger) Positioning (Adams) Operant Conditioning (Tabas) Stimulus Generalization and Discrimination (Luker) Schedules of Reinforcement (Harasimowicz) Vicarious Learning (Church) -9 3/1113 3/1820 10 3/2527 11 4/1-3 12 4/8-10 Cross Cultural Influences (Casper) African-American Subculture (Rainey) Hispanic-American Subculture (McCombe) Native-American Subculture (Wright) Consumer Socialization (Dickerson) Piaget's Stages of Cognitive Development (McAllister) #2, Tutorial Discussion, Weeks 1-5 (2/11) #3, Zymund, “The End of Marketing as We Know It” (2/27)) No Class - Spring Vacation Read Chapter 10: Motivation, Personality, and Emotion Quiz #6, Chapter 10 (3/20) Read Chapter 11: Attitudes and Influencing Attitudes Quiz #7, Chapter 11 (3/27) Examination #2, Chapters 7-11 (4/3) Read Chapter 13: Situational Influences Quiz #8, Chapter 13 (4/8) Read Chapter 14: Consumer Decision Process and Problem Recognition Tutorials Due (Option #1 only) (4/8) In-Class Review of Papers (4/10) Latent and Manifest Motives (Toda) Motivation Conflict (Zeng) Social Comparison (Scheid) Self-Concept (Allen) Central and Peripheral Processing (Briggs) #4, Tutorial Discussion, Weeks 7-9 (3/25) 4 13 4/1517 14 4/2224 15 4/295/1 Finals Week Read Chapter 15: Information Search Student reviews of tutorials distributed (4/15) Quiz #9, Chapter 15 (4/17) Read Chapter 16: Alternative Evaluation and Selection Revised Tutorials Due (4/24) Read Chapter 18: Post-Purchase Processes, Customer Satisfaction and Customer Commitment Read Chapter 20: Marketing Regulation and Consumer Behavior Quiz #10, Chapter 18 (5/1) Examination #3 (Chapters 1316, 18, 20) Section 41: Thursday, May 8, 10:00-11:50 Section 42: Tuesday, May 6, 1:00-2:50 Decision Rules (Hashimoto) Cognitive Dissonance (Morris) Customer Loyalty (Sutton) Course Evaluation This is a work-oriented course. Your ability to think clearly, to creatively solve problems, and to express your ideas clearly will have a significant influence on your grade. 50% of the course grade is determined from examinations, while 50% is from quizzes, assignments, and in-class work. The exams will test your knowledge of material from the text and class, as well as your ability to identify key consumer behavior issues and your skills at solving marketing problems. Exam #1 100 points Exam #2 100 points Exam #3 100 points Quizzes (10 quizzes - count the 9 highest scores) 90 points Participation in on-line discussion groups 20 points Eastgate Liquor, Problem Specification 15 points Eastgate Liquor, Solution 35 points Research Assignment (one of two options) 80 points Participation/Discussion 40 points Review of other student’s research 20 points TOTAL 600 points Grading Scale: 540 points or more 480-539 points 420-479 points 360-419 points 359 points or less = A (100-90%) = B (89-80%) = C (79-70%) = D (69-60%) = F (59% and less) Class Policies 5 Attendance and Class Participation: You are expected to attend each class. Attendance is a prerequisite for participation, but it is not the same thing as participation. To earn all class participation points possible, you need to be in class and actively participating in discussions in class and on the Internet in a meaningful way. This can be asking or answering questions, clarifying points, or even challenging statements made by the instructor or other students. Coming to class every day and not actively participating is a good way to earn a low C for a participation grade. Reading Assignments: All reading assignments for the semester are listed in the course outline. You are expected to have read the assignments prior to the class meeting, since the discussion in class will assume that you are knowledgeable of the material. Examinations: Exams will cover the chapters listed in the course outline, as well as material covered in class. Each exam consists of a combination of 25-30 multiple-choice questions, and 3-6 short answer/essay questions. There are three regular examinations scheduled throughout the semester. There are normally no make-up examinations. The primary exception to this policy involves absences for participation in university-sponsored activities (e.g., intercollegiate athletics, cheer leading, out-of-town conferences) that conflict with the scheduled examinations. In this case, your organization (e.g., a coach) must notify me in writing within the first two weeks of the semester, and I will make alternative arrangements for you. An unexcused absence for an examination will result in a grade of "0" for the missed examination. Missing an examination and then notifying me after the exam will be considered as an unexcused absence. Exam Review Sessions: Prior to each exam, there will be an optional review session (location and time to be announced). These are held at least two days prior to each exam. Attendance at review sessions is completely optional, and has no direct effect on the grade. The review session will feature a brief review of material covered in class. Each session also provides you with an opportunity to ask questions about material covered by the exam. A copy of sample examination questions will be distributed at these sessions. Past MKTG 333 students have noted that these sessions were valuable to them in their preparation for each examination, though some students have also done very well without attending these sessions. Tutorials: On the website for the course, there are tutorials available to help you with many topic areas covered in the course. These tutorials were all written by students previously enrolled in this course, and the tutorials cover a variety of topics. While I will not ask you specific exam questions based on these tutorials (e.g., not “What did Smith mean in her tutorial on closure when she stated…”), it is likely that I will ask essay questions related to some of the tutorial topics (e.g., “Define the term closure and provide a marketing example of the effective use of this principle.”) Reading the tutorials is another way of preparing for the exams, and past “A” and “B” students in this course have noted their helpfulness in preparing for the essay portions of exams. In addition, you will be required to read some of the tutorials and then to discuss them in the on-line bulletin board for this course. Quizzes: A total of ten (10) quizzes will be given throughout the semester. These quizzes address material exclusively from the text, with each quiz consisting of ten (10) multiple-choice questions. The purpose of the quizzes is to make sure you are keeping up on the reading, and that you understand the material from your reading. Quizzes are given at the start of the class session. As a result, it is important for you to be on time for class, especially on the days a quiz 6 is scheduled. If you are absent or late on the day of a quiz, a grade of zero may be given for the quiz. Your nine (9) highest quiz scores are counted towards your total points in the course. No make-up quizzes will be given, unless the absence is for participation in university-sponsored activities (e.g., intercollegiate athletics, cheer leading, required out-of-town conferences) or another pre-approved activity which conflict with the scheduled quiz date (going home early for a weekend is not an approved activity). In this case, your organization must notify me in writing within the first two weeks of the semester, and I will make alternative arrangements for you. Assignments: Each student is required to complete two assignments: a two-phase case analysis completed as a group, and a research assignment selected from one of two available options. These assignments typically integrate material covered from several sources, and are intended to reinforce course content. These assignments are to be completed individually and turned in to me by the date listed in the course outline. Follow the instructions in the assignments carefully, and be sure to be neat in your work. All assignments must be prepared on a word processor. Sloppy work will be graded significantly lower. This means using spell-check and grammarcheck (or other means to ensure a quality document), accessing a good quality printer, page number each page, stapling the pages of your work, and following the prescribed format for each assignment. Late assignments will be accepted. However, the assignment grade will be reduced by five points for every 24-hour period it is late. For example, a 50-point assignment due at 4:00 p.m. on Tuesday but submitted on Wednesday before 4:00 p.m. would lose five points. The same assignment submitted on Thursday would be two days late, a reduction of 10 points. After eight days, the assignment would receive a score of zero. An assignment due Thursday and submitted on the following Tuesday would be reduced by 25 points. If you know you will be unavailable on the day an assignment is due, it is your responsibility to make the necessary arrangements before the time it is due. Case Analysis: You are required to complete a case analysis dealing with consumer behavior. The case and guidelines for its completion will be distributed during the first two weeks of the semester. The case is to be completed as a group project (teams of 3-4 students) and is due in two phases: Problem specification (February 6) and problem solution (March 4). Bulletin Board: All students are expected to participate in the course’s on-line discussion group. There are four assigned topics. Most of these topics will require you to read an assignment and then post your thoughts on the topic. Details on the topics will be distributed in class at least one week prior to the due date for each bulletin board posting. Research Projects: A major component of the course will be the completion of a research project. There are two options available to you - you may choose any appropriate option. You must make a decision as to which option you will pursue by the end of week #4 (2/5). Select one of the following: Option #1: Developing a Tutorial – There is an old saying – the best way to learn something is to teach it to someone else. In this option, that is in essence what you would be doing – developing a tutorial on a specified Consumer Behavior topic. In this option, you are expected to choose from the provided list of topics (see below). You should then use materials other than your textbook or the course notes to develop a tutorial on the topic that 7 would fully explain the topic to another MKTG 333 student. Some tutorials may be included on a MKTG 333 web site for use by future MKTG 333 students. Format: Select a topic. Before you do this, though, do a little reading in the text on the topic. You’ll spend a lot of time on your topic, so don’t choose something that doesn’t interest you. Introduction. Define the topic. Explain in general what the topic is about. Why it is of significance in the field of consumer behavior and to practitioners in marketing? Explanation of the topic. In this section, indicate what others have written about this topic. Are there other concepts this topic is related to? Are there differences of opinion about this topic among researchers? Examples. You must find an example of this topic in practice. Good places to look would include the Internet, Business Week, Advertising Age, the Wall Street Journal, or Promo. DO NOT make up an example, or create a hypothetical example. This may take considerable effort, so start early in the semester. Relevant web sites. List the names and URLs of web sites relevant to your topic that should be linked. To be “relevant” the site should contain material which supports something you have mentioned in your paper, is an example of something in your paper, or would enhance the understanding of the topic by the reader if they went to the site, or is a home page for a company cited in your example. For example, if your example refers to something at Microsoft Corporation, it would be appropriate to include www.microsoft.com as a relevant web site. Test for understanding. At the end of your paper, write five multiple-choice questions over the material presented in your paper (provide the answers on a separate page). These questions should test readers to see if they understand the major concepts presented in your section. A good question is one that requires thought to answer, is not just common sense (i.e., one that could be answered without having read your paper), and has one answer that is clearly superior to the others. Your paper should be approximately ten pages (double-spaced) plus the references and the test questions, and should incorporate at least six different reference sources. These can be academic sources, such as the Journal of Consumer Marketing, or practitioner sources, like Business Week, or web sites related to the topic (corporate web sites, however, such as www.microsoft.com or www.pepsi.com typically would not be appropriate towards this total.) Be sure that your tutorial is not heavily based on only one particular reference source (i.e., a paper that does have the required six references, but 50% of the paper is drawn from only one source.) The text (Hawkins et. al) should be used as a source for no more than 10% of the material in your tutorial. Remember that you must reference any ideas that are not your own. This is typically done by restating someone else’s idea in your own words, providing a reference immediately after the statement (Smith and Jones, 1998), then providing the full bibliographic citation in the references at the end of the paper. Anytime you quote more than a few words verbatim from another author, you must put the quotation in quotation marks and indicate the exact page in your reference. In general, this should be done sparingly, and long quotes (two or more sentences) should be avoided. You should put things in your words – this shows that you understand what 8 the author is saying. Besides, your readers will understand it better if you put it in terms they will understand. Using an idea you have read without providing a reference is plagiarism and a violation of academic honesty. (Basically, it is academic theft – taking someone else’s stuff and passing it off as your own.) Be sure to properly cite all sources that you use, and never cut and paste material from a source into your paper. Failure to properly reference your work can result in a grade of F for the entire course – arguments by violators of “I didn’t know that was wrong” are not acceptable. PLEASE CONSIDER THIS TO BE YOUR FINAL WARNING ON THIS SUBJECT. Finally, be careful not to fall into a “book report” format. (Ex: “Smith said X about the relationship between A and B, while Jones said Y about the relationship between A and B. Brown also looked at this relationship and said Z, while Smythe said something like Smith did.”) Instead, integrate and synthesize your work. (Ex: “The consensus appears to be that the relationship between A and B is best explained by X, as supported by Smith and Smythe. Jones and Brown have provided alternative explanations about this relationship. However, most researchers seem to agree with Smith and Smythe because…”) Tutorial Topics for Spring 2003 Asian-American subculture Consumer behavior in (insert name of Arab-American subculture foreign nation) (take a specific foreign a Iconic rote learning and consumer behavior culture and compare/contrast it with the Attribution theory and consumer behavior a US) a Field theory and consumer behavior Marketing strategies based on information Seniors and consumer behavior (focus on search patterns (maintenance, disrupt, the buying behavior characteristics, the etc.) importance of seniors, and how to Product placements in TV and film successfully target them) Ashe phenomenon and consumer behavior a For these three topics, you would explain what the theory is and then show how it can be used to understand and explain consumer behavior. Be creative, and remember your target audience! The goal here is not to write a dry research paper - you are teaching your topic to other students. Present the material in such a way that you are factually correct, interesting to read, and that students are likely to remember the fundamental concepts in your paper. The best way to do this is to read everything you can on your topic, then make a listing of the major points you think other students should know about your topic. Be sure when you write your paper that these points are emphasized. Tables, graphs, charts, pictures, clip-art -- anything that helps to make your point and facilitate the recall of your points by students is appropriate. Selected tutorials will be loaded onto the College of Business and Technology server (and credited to you as the author, of course!) for use by future MKTG 333 students. You can see some good examples of this at http://www.cbt.wiu.edu/John_Drea/schoolho.htm. I’m proud of these students and their work. This is also a great way to show potential employers an example of your work. A minimum of three other students will review your work for its quality, professionalism, and ability to teach the topic. (Each student is required to write three reviews - students will be 9 randomly assigned to projects to review.) These students will provide you with a written copy of the reviews of your paper, and nine days to make any changes you feel are necessary based on these reviews Option #2 – Consumer Behavior Research. In this option, you are to create your own group (maximum of four students per group) and conduct an original piece of research related to consumer behavior. To pursue this option, at least one member of the group should have completed MKTG 329 - Marketing Research. The outline for this paper is as follows: I. What is the research question you are seeking to answer? II. Summarize what has been written that is relevant to this research question. III. Create a one or more hypothesis IV. Test the hypothesis (collect data and analyze) V. Report the results – what did you find, and what are the implications? (A presentation to the class is required) While there is no minimum or maximum associated with this paper, it is anticipated that papers in this option will be approximately 15 pages in length. While this is your project, I will help and advise you during its completion, so don’t be intimidated by the idea of doing original research. I will accept a maximum of three groups per section for this option. If you are interested in this option, you will need to create your own group and meet with me by January 28 to discuss possible topics for this paper. Previous research projects in this area have included the construction of models for predicting attendance behavior at WIU football games, the construction of models for predicting attendance behavior at WIU men’s basketball games, increasing utilization of the WIU bowling and billiards center, and evaluation of promotional ideas for the WIU bowling and billiards center. If your project is good, I will work with your group at the end of the semester to see if we can get the paper published at an academic conference or in a journal. (Yes, you could be a published author!) Academic Honesty: One of the foundations of any meaningful evaluation system is that each student is accountable for his/her own work. You are expected to do your own work. Copying information from another on exams or assignments (or allowing someone else to copy your work), faking research data of shopping observations, bringing unauthorized materials into a quiz/examination, writing information on table tops, or representing the work of another as your own (plagiarism) are all acts of academic dishonesty. Such incidents can result in severe penalties, including a grade of “F” for the entire course. If you are in doubt as to whether an action is academically honest, please see me in advance. Failure to understand that an action is academically dishonest is not an acceptable excuse. What If I Need Help? If you find you are struggling, please see me as soon as possible. WIU has many resources to help you succeed, and I will also do what I can to help you learn the material. If you will be 10 absent from class due to participation in athletics or other college extracurricular activities, please alert me to this early in the semester. If you have a disability that requires special accommodation, please contact the office of disability support services. Finally, feel free to stop by my office during scheduled hours, or see me outside of class whenever you have questions. Remember, the sooner you see me with any problems you are having, the sooner we can work together to help you master the material. If you are having trouble, see me early in the semester, and I may be able to recommend some changes in your examination preparation. The sooner you see me, the sooner we can get you on the right track. Unfortunately, many students wait until the end of the semester to indicate they are having trouble, and at that point there is little that can be done. Don’t wait if you are having difficulty -- come see me ASAP and I will help you if I can!