HKUST Course Syllabus Outline (experimental only) The purpose of this course syllabus outline is to help faculty and instructors plan systematically for the 4‐year undergraduate curriculum and the embedding of outcome‐based education in both undergraduate and postgraduate education. The list below does not reflect a prescribed order. •
Course Code Mark242 •
Course title Consumer Behavior •
Learning outcomes After each course learning outcome, please give in brackets the number(s) of the program learning outcome(s) aligned with it. Please include both taught outcomes and those provided as opportunities for development but not taught, such as teamworking through a group project task. Course Learning Outcomes Virtually all decisions involved in developing an effective marketing mix for a product or service rely on in‐depth knowledge of the consumers who comprise the target market. Thus, a clear understanding of the principles and concepts of consumer behavior is critical to successful marketing. In accordance with this premise, Mark242 has two broad course learning outcomes. A student who has taken this course should be able to: i) Attain a thorough understanding of the mental processes that guide consumer perceptions, attitudes, memory and choices ii) Analyze how these processes might differ as a consequence of social, cultural and group influences iii) Apply this knowledge to generate effective marketing tactics and, iv) Provide recommendations if needed for public policy to protect consumer rights With regard to the first major objective, this course initially focuses on the customer as an individual, with a particular emphasis on how consumers react to marketing information provided about a product. The topics discussed comprise an examination of basic psychological processes: i.e., exposure, attention, perception, memory, persuasion, and decision‐making. Advertising – and how consumers process ads – is the major vehicle used to clarify these concepts. Next, students will enhance their understanding of consumer behavior by examining its social and cultural context, including the influence of group members (such as family and other important referents) on decision making and perception, and the nature and importance of cultural differences in consumer behavior around the world. Thus, students of the course will emerge with both a micro and macro perspective of the factors influencing a customer. With regard to the second major objective, it is important to note that a strategic orientation permeates the course. At every step, the insights gained into the consumer’s mind will be accompanied by a discussion and illustration of how this knowledge may be put to use by marketing managers as they seek to influence consumer behavior. Thus (for example), a discussion of memory issues will address not only the question of how consumers store and retrieve information, but also how marketers can aid consumer recall of their brand name and features. Similarly, the module on attitudes will illustrate both how and why consumers evaluate certain products as good or bad, and also how marketers can use this knowledge to improve consumer attitudes towards their products. In sum, students of the course will be able to use their knowledge of consumer psychology to develop and refine multiple aspects of an overall marketing plan. SPECIFIC LEARNING OUTCOMES Module 1 (Complex Decision Making). Students who finish this module should be able to: a.
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Distinguish between high and low‐involvement consumer decision‐making Acquire an understanding of the different phases of complex decision making, including problem recognition, information search, information processing, comparative judgments and post‐purchase evaluations. Design effective marketing tactics for consumers engaged in complex decision‐making. Understand the causes of problem recognition, and how marketers can use this knowledge to induce problem recognition in consumers (e.g., by shifting the consumers’ desired states). Differentiate between different kinds of information search; recognize what types of information the consumer finds more credible and why; and how marketers can influence the information search process. Analyze different types of choice rules (e.g., lexicographic, conjunctive, disjunctive, EBA, etc.) Generate effective marketing tactics depending upon the type of choice rule being used by the target segment. Explore and evaluate basic market research techniques (e.g., MDS, conjoint analysis etc.) that illuminate the choice processes being used by consumers. Gain an understanding of three key theories derived from psychology (dissonance theory, disconfirmation theory, and attribution theory) in order to explore different facets of the post‐purchase evaluation process. Obtain insights into what drives consumer satisfaction; how to measure satisfaction; and how marketers should manage expectations in order to maximize satisfaction. Generate ideas related to crisis management based on attribution theory: i.e., what are some things the marketer can do when the consumer is dissatisfied? Module 2 (Learning and Habit). Students who finish this module should be able to: a.
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Understand key learning theories (classical and instrumental conditioning) and apply these theories to habitual decision making by consumers Generate tactics to engage consumers in habitual decision making (e.g., brand loyalty). Identify and select different methods of creating a conditioned positive response towards a brand. Evaluate the pros and cons of different reinforcement schedules used in instrumental conditioning, in the context of marketing promotions. Distinguish between brand loyalty and inertia. f.
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Measure and monitor the extent of brand loyalty; as well as understand the pros and cons of different measurement methods. Explain the low involvement hierarchy of effects as derived from Krugman’s theory of passive learning. Develop marketing recommendations for inertia‐based consumer decision making, drawing on the low involvement hierarchy of effects. Contrast high vs. low involvement message reception via a discussion of the elaboration likelihood model, and draw upon the differences therein to develop advertising recommendations for low‐involvement (vs. high‐involvement) decision settings. Integrate different theories of communication and persuasion (passive learning theory; ELM; social judgment theory) to generate a comprehensive model of low involvement decision making. Compare and contrast the model with that developed in the earlier module for complex decision making Generate a detailed marketing strategy (comprising tactics for promotion, distribution and pricing) for low involvement purchase situations. Module 3 (Information Processing). Students who finish this module should be able to: a.
Build a step‐wise model of how consumers make sense of marketing information, with a particular focus on advertising. b. Understand and differentiate between the different processes consumers use to select (and eliminate) specific marketing stimuli. c. Distinguish between voluntary and involuntary attention d. Generate tactics by which marketers can elicit involuntary attention from consumers. e. Acquire an understanding of absolute and differential sensory thresholds, the concept of just‐noticeable‐
difference, Weber’s law, and how marketers use these ideas to intrude into the consumers’ consciousness. f. Explain how and why perception is an inherently subjective process. g. Understand basic mechanisms (categorization; inferencing) underlying perception h. Build upon the inherent subjectivity in perception processes to generate ideas for how marketers can endow their brands with positive meaning. i. Distinguish between short‐term memory and long‐term memory, and their different functions. j. Explain how information is stored in and retrieved from long‐term memory, as well as how it may be suppressed. k. Build upon the associative network model of memory to generate tactics for how marketers can improve consumers’ long‐term memory for brand names and brand attributes. l. Recognize why the concept of “attitudes” is important to marketers. m. Understand different theoretical conceptualizations of attitude formation and change. n. Apply these conceptualizations to identify tactics for changing consumer attitudes under different conditions. o. Use the Fishbein model to evaluate and compare attitudes towards competing brands. p. Use the Fishbein model to come up with a detailed marketing plan for improving consumer attitudes. Module 4 (Consumer Characteristics and External Influences). Students who finish this module should be able to: a.
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Explain a basic communications model of advertising. Differentiate between source credibility and source attractiveness in terms of consumer influence. Analyze when and why different types of source factors can effectively influence consumer response to advertising. d.
Evaluate the pros and cons of different types of message tactics in advertising (e.g., fear appeals, sex appeals, humorous appeals, comparative formats, etc). e. Acquire a contingency understanding of what types of message tactics may be effective in different situations, and for different objectives. f. Within the context of an advertising model, measure the effectiveness of advertising in achieving objectives. g. Differentiate between direct and indirect measures of advertising effectiveness, and understand when a particular measure is required. h. Understand how various consumer characteristics (individual differences) exert a powerful influence on consumer behavior (and therefore, on marketing action); with a particular focus on personality and lifestyle differences. i. Apply concepts from psycho‐analytic theory and self‐concept theory to determine how consumer personalities can influence their brand attitudes. j. Identify marketing tactics that can capitalize on this influence. k. Distinguish between personality and lifestyle. l. Apply a standard measurement device (such as AIO) to assess lifestyle, and learn how to use lifestyle measurement for marketing actions such as segmenting and targeting. m. Understand how broader groups around an individual (such as family; reference groups etc.) can influence consumer behavior. n. Analyze aspects of family decision‐making, especially those that are different from individual‐level consumer decision making. o. Critique different methods of measuring joint decision‐making by couples. p. Distinguish between different types of reference group influence, and the various antecedents for such an influence. q. Evaluate what type of reference group influence works better in specific situations; and how marketers can use this knowledge. r. Analyze the role of culture in consumer behavior. s. Discuss the various factors that have led to the rise of global marketing t. Evaluate the effectiveness of different strategies (localization, standardization, glocalization) in global marketing. Class Project Finally, a critical learning tool used in this course is the group project. The central purpose of the project is to ensure that students can integratively apply the concepts learnt in the course to a real‐world marketing problem. In essence, each group is asked to examine consumer perceptions of and attitudes towards a brand of their choosing, as well as towards a competing brand. Based on a questionnaire survey and subsequent data analysis, the group is required to: a) achieve a comprehensive understanding of current problems and issues facing “their” brand; b) how its market position may be improved with regard to the competitor. The marketing plan developed by the group is both presented to the entire class and also written up as a project report. Engaging in this project work helps students to achieve the following learning outcomes: a.
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Integrating key concepts learnt throughout the course. Tying together consumer behaviour theory with real world application. Strengthening the links between this course and related courses, such as Market Research (e.g., through the questionnaire design and data analysis task). •
Course description The purpose of this course is to study the process of consumer decision making and its determinants, and the resulting implications for marketing strategy. Concepts and theories covered in this course are essential for consumer analysis and the development of effective marketing strategies. A strategic orientation will permeate most facets of this course. At the same time, a knowledge of consumer behavior requires an understanding of important theoretical concepts borrowed from fields such as psychology, sociology, economics etc. Accordingly, while marketing applications will be stressed throughout, you may expect this course to be a little heavier in theory than other marketing courses. Teaching approach This section outlines the instructional strategy and covers how the learning outcomes, the teaching and learning activities (e.g. lecture, interactive seminar, labs, case discussion, field‐trip, individual or group project, online learning, etc.) and the assessments are aligned with each other I expect you to be an active thinker, reader, observer and doer. Several of the ideas presented in this course were developed in Western countries in the expectation that basic theories of human behavior would apply to human beings all over the world. Throughout this course, I would like you to be alert to any differences you may note between what is taught, and what you have observed from your own experience as a consumer in Hong Kong/Asia, and raise these issues for discussion in class. Course material for this course is Henry Assael, Consumer Behavior and Marketing Action, 6th Edition, South‐Western College Publishing, 1998. •
Assessment scheme This includes the assessment type (exams, quizzes, written assignmenta, case assignments, presentations, etc), a brief description and the weighting. •
3 Quizzes (each 20 %) 60% Project Report 20% Project Presentation 10% Class Participation 8% Research Participation 2% Student learning resources This can include course textbook, course pack/Other Required readings, optional readings (please ensure any Library course support site/course reservations, as well as any URLs, which can be linked in the LMES course website, including Library course pages. ‐ Course textbook ‐ Course pack/Other required readings ‐ Optional readings (please ensure any Library course support site/course reservations, as well as any URLs, are linked in the LMES course website) •
Course schedule Lecture # 1‐2 I. Introduction a) Course Outline and Syllabus b) Importance of Consumer Behavior Topic Chapters** 1 II. Complex Decision Making a) Involvement b) Problem Recognition/Need Arousal 3 & 8; c) Information Acquisition + Assigned d) Comparative Evaluations Readings e) Post‐Purchase Issues Quiz 1 on Feb 26; no lecture 7‐11 III. Habitual Decision Making (Project Details) a) Learning and Habit 4 b) Low Involvement Decision Making 5 Quiz 2 on March 18; no lecture 12‐15 IV. Information Processing a) Attention and Perception 7 b) Memory 8 c) Attitudes 9 d) Persuasion 10 Quiz 3 on April 10; no lecture 16‐18 V. Consumer Characteristics and External Influences a) Marketing Communications 11 b) Personality and Lifestyle 13 c) Family and Reference Group Influences 17, 16 d) Cultural Influences 14,15 Quiz 4 on April 29; no lecture Final 3 sessions: May 6, May 8, May 13: Group Presentations 3‐6 •
Teaching staff contact details Faculty/instructors and TA(s) where appropriate Prof Jaideep Sengupta, room 4359, email: mkjaisen, tel: x.7718 Edrie/Florence, room 4371, email: edriecto, flolee, tel:x.7705 •
Academic honesty Please provide a link to the HKUST Academic Integrity site at http://www.ust.hk/vpaao/integrity/ You may also wish to include your subject/course‐specific arrangements for avoiding plagiarism. Any student who violates academic integrity, through such activities as duplication of another students’ work in whole or in part, plagiarism, etc. or other means of cheating, will receive an F for the course. There is no honor in taking someone’s work as your own. •
Learning environment In creating this section you may wish to refer to the HKUST good learning experience site at http://www.ust.hk/vpaao/conduct/good_learning_experience.pps/ You may also wish to discuss with your students your expectations of their classroom behavior. ‐ Arriving on time ‐ Arriving quietly, if you must be late ‐ Listening when I am talking ‐ Turning off your mobile phone ‐ Leaving only when the class is finished ‐ Keeping quiet when classmates are trying to listen ‐ Taking classmate’s questions and answers seriously ‐ Making the class a comfortable experience for everyone Follow‐up questions after completing the Course Syllabus Outline 1. Which of the course learning outcomes stated above already being addressed by the faculty/instructor(s) teaching this course? 2. Which of the course learning outcomes do you think are not being addressed, or need to be addressed more fully, and what would be your plan of action for addressing any gap(s)? 3. What support (resources, sharing, training), if any, do you think you need to accomplish the changes in 2 above?