University of Florida MAR 3503 - Consumer Behavior Fall 2007 Dr. Joel B. Cohen 208 Bryan Hall Office Hours: Email: Class website: Section 0111 Section 2948 T, R. 4-5 MAT 108 T, R. 8-9 MAT 108 Tues. - Thurs.1-2:45 pm and by appointment joel.cohen@cba.ufl.edu http://bear.cba.ufl.edu/COHEN/MAR3503 TEXT: Consumer Behavior by Wayne D. Hoyer and Deborah J. MacInnis; Fourth Edition (Houghton Mifflin, 2007). STRUCTURE OF THE COURSE Course Objective : This section of MAR 3503 offers marketing majors and other interested students a rigorous introduction to the study of consumer behavior emphasizing underlying behavioral concepts and guiding principles. This is not a managerially-oriented presentation. Approach: My approach to the course relies on the active involvement of students in the learning process. My in-class presentations are based on the assumption that students have read and thought about the designated readings. I typically discuss new material that expands on concepts and issues introduced in the readings. Attendance, therefore, is essential as is a willingness to take an active role in class discussions, such as by asking clarifying questions. Students who prefer a more traditional lecture course format that highlights/summarizes the textbook and where they are more passive recipients of information are strongly advised to consider other course options. Assignments (to be discussed below) are designed to create a deeper understanding of the material as well as to stimulate class discussions. I hear and I forget; I see and I remember; I do and I understand--Chinese Proverb Academic Honesty You will be expected to follow the standards of the University of Florida with respect to academic honesty. When you enrolled at the University of Florida, you signed the following statement: "I understand that the University of Florida expects its students to be honest in all their academic work. I agree to adhere to this commitment to academic honesty and understand that my failure to comply with this commitment may result in disciplinary action up to and including expulsion from the University." Students with Disabilities Students requesting classroom accommodation must first register with the Dean of Students Office. The Dean of Students Office will provide documentation to the student who must then provide this documentation to the course instructor when requesting accommodation. COURSE GRADES There are two separate components of the course grade: tests and group project assignments. You must reach the designated total FOR EACH OF THE TWO COMPONENTS to receive each grade. So, a student earning a B in one component and a C in another will receive a C in the course. TESTS: There will be 13 tests (most will be a single question) with dates indicated on the next page. The purpose of these tests is to reward students who read and think about each of the readings at the specified times. The test items will not be difficult for those who have done so. You will receive 1 point for passing each test. CHAPTER ASSIGNMENTS: There are a total of 5 Chapter Assignments. You will be asked to form chapter assignment study teams to carry out these assignments. See the Chapter Assignment booklet (attached) for details Grades will be assigned as follows: A =6 B+ =5 B =4 C =3 Unsatisfactory = 0 Some assignments will be accompanied by group presentations. Students who do not participate in a group presentation will receive a full letter grade deduction from the project grade awarded to the group. OVERALL GRADES: Grade A Test Points Needed * 11 Project Points Needed 26 B+ 10 23 B 10 19 C+ 9 17 C 9 15 D+ 8 12 D 8 10 * For each test point above 11, students can add these to their project point totals. So a student earning 13 test points can add 2 points to their project point totals. Course Outline Date 8/23 8/28 8/30 9/4 9/6 9/11 9/13 9/18 9/20 9/25 9/27 10/2 10/4 10/9 10/11 10/16 10/18 10/23 10/25 10/30 Topic Perspectives on the Field of Consumer Behavior Cultural, Demographic and Household Influences Research in Consumer Behavior Test 1 (Ch 13-14) Research Design Issues I Research Design Issues II Test 2 Research Design Project Presentations Interpersonal Influence Symbolic Consumer Behavior Test 3 *** Diffusion of Innovations Needs Assessment and Motivation Test 4 Individual Differences in Motivation Chapter 15 Part 1 Project Presentations Discussion of Chapter 15 Part 2 Projects Test 5 Chapter 15 Part 2 Project Presentations Perception and Comprehension Test 6 Memory and Retrieval Test 7 Attitudes Based on High Consumer Effort Attitudes Based on Low Consumer Effort Test 8 No Class---Prepare Ch. 6 Project Reports Attitudes and Brand Management 11/1 11/6 11/8 11/13 11/15 11/20 11/22 11/27 Decision-Making Based on High Effort Test 9 Decision-Making Based on Low Effort The Post Decision Phase Test 10 Public Policy Issues Marketing and Advertising Regulation Test 11 Marketing and Social Responsibility Thanksgiving Holiday No Class Regulating Tobacco Advertising and Promotion Test 12 11/29 12/4 Assignment(s) Chapter 1 Chapter 13 and 14 Chapter 2 and Research Methods Chapter1 Note: This test includes material presented in class. Research Methods Chapter assignment due Chapter 16 Chapter 18 Chapter 17 Chapter 17 assignment due Chapter 3 Chapter 15 Chapter 15 assignment due (part 1) Expectancy Value Theory 1 Chapter 15 assignment due (part 2) Chapters 4 and 5 Chapter 8 A Spreading Activation Model 1, Chapter 7 Chapter 6 Conceptualizing, Measuring and Managing Customer-Based Brand Equity 1 Chapter 6 assignment due Chapters 9, 10 Chapter 11 Chapter 12 Chapter 19 Advertising Challenges,1 Deceptive Advertising Chapters1 Chapter 20 a. The FDA’s Proposed Rules Regulating Tobacco and Underage Smoking and the Commercial Speech Doctrine1, and b. Playing to Win: Marketing and Public Policy at Odds Over Joe Camel 1 Trademark Infringement and Consumer Confusion: The Effects of Brand Name Similarity on Brand Source Consumer Behavior in the Courtroom Test 13 Confusion: Implications for Trademark Infringement 1 Review *** From this point on, all tests include material from the last test on including the current day’s work. 1 These readings are found in the packet sold at Orange and Blue Textbooks - 309 NW 13th Street directly across from Krispy Kreme (3 blocks north of University Avenue) CHAPTER ASSIGNMENT BOOKLET Instructions Chapter Assignments: Chapter Assignments are described in the next several pages. Each addresses a particularly important issue in the course. The written discussions will typically require 3-6 pages to adequately address the issues. The due date for each assignment appears in the course outline along with the timing of project presentations by chapter assignment study teams. Although I have attempted to make each chapter assignment as clear as possible, you are expected to raise any questions you may have in class and sufficiently in advance of when a project is due to enable you to carry out your work with confidence. Chapter Assignment Study Teams: Without exception, Chapter Assignments are to be discussed and prepared by three person “study teams.” Students are responsible for forming their own study teams, and it is expected (but not required) that these will change over the course of the semester to allow students to gain exposure to others’ thinking. If a student does not make a substantial conceptual contribution to a particular assignment, that student’s name must not appear on the paper. Each team member is responsible for making sure that this policy is not violated. The Chapter 17 assignment asks you to discuss individual experiences as consumers. You must present these experiences individually and in a separate section compare and contrast them for additional insights. MAR 3503 Chapter Assignments ASSIGNMENT: Research Methods Chapter (outside reading) You are responsible for developing a promotional plan for a new digital audiotape machine. Because of the new technology and the fact that many consumers may not believe some of the claims you want to make (even though they are supported by engineering studies), you propose spending additional funds to use highly credible, expert spokespeople in your advertising. You are asked, however, to provide hard evidence that could justify these added expenditures, or they will not be made. You will need to demonstrate that consumers' responses to the claims will be more favorable if such spokespeople are used in the advertising rather than having the company itself make the same claims. . You first contact two research suppliers your firm has used and request proposals. 1. Evaluate the two study options that are proposed by these research suppliers. A. Introduce the digital audio tape machine in a test market. For the first month, use company-claim ads (without a high credibility/expert spokesperson). For the second month use the same ads, but with a high credibility/expert spokesperson making the claims. Compare the sales figures in the test market to see which approach is more effective. What does the reading tell you about the threats to the validity of this study? You must clearly identify/label each and be specific about such threats. You must also explain how/why these threats apply to this study? B. In a survey, ask people how likely they are to believe the claims: (1) if the company made them, and (2) if the particularly high credibility/expert spokesperson you are considering made them on behalf of the company. Briefly explain the procedure you believe they would use to see whether each person believes the claims more under presentation one or two. Based on the reading, what concerns are there about the validity of people’s answers in this study? (Do not discuss survey research issues in general—closed-end versus open-end questions, sampling, etc.) 2. Design and develop an experiment that would provide better evidence. Begin by stating your guiding hypothesis in as clear a fashion as possible. To do this, identify the independent (i.e., causal) and dependent (i.e., outcome) variables and what you expect the effect of the former to be on the latter. Exactly how will you manipulate the independent variable? What will be your operational definition of a "more favorable response" to the advertising? Identify/label the research design (based on the reading) and detail the realistic procedures you will use to test your hypothesis in this experiment. 3. While planning the experiment you learn that management is considering a change in marketing strategy. They want to focus separately on technically savvy consumers and a mass market audience. How would you change your experiment to provide evidence for both of these target markets and show whether the presence/absence of expert/credible spokespeople would impact differently on these two groups of consumers? How (realistically) would you select people for this study and guarantee their exposure to the identical ads? ASSIGNMENT: Diffusion of Innovations (Chapter 17) Consider your own or your family's first time purchase of (what for them is) a new and different product -- an innovation. This cannot be a “new” replacement product (e.g., replacing a computer). It can range from a major technological advance to a substantially new version of a product concept that has been around for a while but which your family has not purchased previously. According to the book, what type of innovation was this and why? Identify each of the key characteristics of innovations (use the discussion in the book to do this) and discuss their impact on either the likelihood or rate (speed) of adoption during the acquisition process (note: do not discuss how people responded to the innovation after acquisition) for this product. Explain how these characteristics impacted your family’s adoption process leading up to product acquisition. Your group provides “data” from families that vary in numerous ways for products that also vary in numerous ways. So, there are a number of different variables at work here. What tentative conclusions (or working hypotheses) about marketing innovations to consumers did your group develop after a thoughtful consideration of this available “data”? The Chapter 17 assignment asks you to discuss individual experiences as consumers. You must present these experiences individually and in a separate section compare and contrast them for additional insights. ASSIGNMENT: Consumer Attitudes (Chapter 6) This assignment is based on the expectancy-value model discussion starting on page 130 and the measures used in the TORA model (see page 133). For this assignment we will focus on the prediction of AACT and skip the SN part of the model. Your group should reach agreement on the information needed for steps 1 and 2 below. Following that, each person should separately provide the information needed in steps 3 through 7 below. Rely entirely on your data for steps 8-10. 1. Identify two cars (makes and models) that you think are fairly similar. Next, identify three cars that are moderately different (in various ways) from both of these. Place the names of these five makes and models of cars as column headings in a table. 2. Assume you have just graduated from college and have accepted an attractive job offer. Congratulations! You are now in the market for a new car. Decide what automobile characteristics / benefits / outcomes (e.g., aspects of performance, appearance, cost) you believe constitute salient beliefs that should affect your attitude, and list these as rows in this same table. (For this exercise, 5-7 salient beliefs would be fine.) 3. Assume you were going to buy one of these cars. Rank order the 5 cars in terms of your overall likelihood of buying each, with 5 being the most preferred and 1 being the least preferred. Put these rankings in the columns of your table. 4. Provide your set of evaluative (good/bad) ratings (ei) for each salient belief (e.g., fuel economy). 5. For each salient belief, assess the likelihood (bi) that this outcome will occur (or benefit will be realized) if you purchased each of the five cars that appear in the table. 6. Calculate your attitude toward buying each of these cars (AACT) as indicated at the top of page 133. (Note that you are not considering the subjective norm (SN) portion of the TORA model.) 7. Take the role of a consumer in a very different demographic/life cycle category (with respect to age, family situation, income, etc.) and describe this person in a sentence or two. Repeat steps three through six for this consumer. 8. How useful would this data be (assuming the data came from a large and sound consumer survey) in predicting peoples' brand preferences (and possibly behavior)? (Hint: if this assignment produced any evidence that would allow you to verify this opinion you should use it.) 9. Assume the data you generated came from a large nationwide sample. First, consider only the similarities and differences in certain scores as a function of person-to-person differences exhibited in steps 4, 5, and 7. What marketing concept is illustrated here? What insights does your data give you that should be important to these car manufacturers? Provide specific data-based examples. 10. Next, consider the similarities and differences in certain scores only as a function of car-to-car differences. Using only these data, give some specific examples as to how this research might guide a marketing/advertising program. (Take the role of a marketing executive for several car companies in discussing what the data is telling you.) ASSIGNMENT: Individual Differences and Market Segmentation (Part I) (Chapter 15) This is part one of a two-part assignment. In an overall sense, what you will be doing is identifying some fairly basic need, value or personality trait and carrying out a research study to see whether people who have different levels of that individual difference variable are led to behave differently as consumers. Part one (i.e., this assignment) consists of selecting some need, value or personality trait identified in this chapter or in Chapter 3 and then stating a hypothesis regarding how it may affect a consumer's behavior and, finally, developing measures to assess the resulting behavior (i.e., its presence or frequency). Part two will focus on the measurement of the individual difference variable itself and the collection of data to test your hypothesis. For this assignment, ignore part 2. Choose the need, value or trait carefully by thinking about how likely each is to be expressed in a person's consumer behavior. (1) Choose one of these needs, values or traits that, if strong (for a given consumer) or heightened (say by an advertising appeal), will affect some aspect of consumer behavior (e.g., what is purchased, what brand the consumer intends to purchase). The need/value you choose must be general and not product specific. (2) State a hypothesis indicating the relationship between high and low levels of the individual difference variable and its resulting effect on consumer behavior (e.g., "People who have higher levels of need "X" will eat more hot dogs; buy Palm Pilots; switch channels more often.”) (3) Since some of these relationships don’t appear to make good sense, explain why you think the need, value or trait you identified could have that specific effect on a consumer's behavior. Discuss whether or not you think there are substantial and enduring differences in the strength of that need, value or trait across people, or whether most people have about the same level, though its strength varies over time depending on situational factors. If you believe situational factors are important in altering need strength, discuss some of the most important situational factors. (4) For today's assignment assume that you will be able to identify people who have higher (and lower) levels of that need (i.e., you will deal with that issue in part two of the assignment). Your focus, here, is only on the dependent variable and how you will measure it. What will you do to determine if their consumer behavior was consistent with what you predicted it would be? Be specific. Could you simply observe what they did; is that practical? If not, develop a set of survey questions that will allow you to determine whether their behavior was consistent with your prediction. (“How many hot dogs did you eat last week?” “Are you likely to buy a PDA; which brand of PDA are you likely to buy?”) Note that you can combine an experimental manipulation (e.g., some aspect of an advertisement) intended to heighten the specific need with questions to determine whether people whose needs were heightened behaved as predicted. You may wish to review the outside reading material dealing with designing experiments. ASSIGNMENT: Individual Differences and Market Segmentation (Part II) (1) Develop 5 to 10 items designed to measure the need, value or personality trait you selected in Part I. To do this think about questions you would like to ask people if you wanted to know whether they had a high level of the particular need, value or personality trait. Imagine you are a “detective” interviewing the respondent. Consider what questions you would ask that would provide strong clues as to the strength of that particular need, value or personality trait. You cannot simply ask the person for a self-rating (e.g. “would you say you are an introvert or an extrovert?”) on the need, value or trait both because the person may not have thought enough about it (and so may not know) and because you may not get a truthful response to such a direct question. After all, some traits may seem “better” to have than others. Questionnaire items can deal with opinions, preferences, activities, interests or anything you think indicates the strength of that need, value or trait. Items typically require a response along an "agree-disagree," "always-never" or some similar continuum. You can also confront people with a choice if you think the choice they make provides evidence about whether a particular need is strong or weak. (“When I have free time I prefer to spend it doing x,y,z.”) Beware of items that people will give the same response to for very different reasons or to achieve different goals (e.g., most people prefer name brands, sometimes for higher perceived quality and sometimes for other reasons). It is also very important to avoid “circularity.” That is, your assessment of the strength of a person’s need, value or trait must capture that relatively unchanging aspect of the person, rather than some product preference that is narrowly linked to the consumer behavior you are trying to predict (i.e., a “need” for ice cream). (2) Gather the data you need to test the hypothesis you developed in the previous assignment. To do this you need to combine two separate sets of items in one questionnaire: (1) the individual difference-assessment inventory described above and, (2) the measures you developed in the previous assignment to assess the consumer behavior of interest. To be sure that your small and unrepresentative sample contains people who are high as well as low on the need you selected, deliberately pick half who you think are likely to be high and half who you think are likely to be low. Administer the total questionnaire to six people per study team member. (3) Graph your data by plotting each person’s score on the individual difference-assessment inventory (i.e., the independent variable) and his/her score on the consumer behavior of interest (i.e., the dependent variable). Every person, in essence, becomes a single point on the graph defined jointly by their scores on the two variables. Discuss and evaluate the relationship you found. Was your hypothesis confirmed: did the "highs" (on the need/value you chose) display different consumer behavior than the "lows"? Based on what you have learned why, aside from sampling issues, do you think your results turned out the way they did? Bring in insights from the readings and class discussions.