MARKETING 537 -- CONSUMER BEHAVIOR Professor: Dr. Laura Flurry Office Phone: 257-3768 Email: lwflurry@latech.edu Office: Office Hrs: COBB 341 9:15 - 11:20a.m.; 1:45 – 3:00p.m. MWF, and by appt. COURSE DESCRIPTION: A review of the basic concepts of consumer behavior. Emphasis will be placed on issues surrounding consumers' search for, purchase, and use of products. The social and psychological influences on these various behaviors will also be explored. TEXT: Consumer Behavior: Building Marketing Strategy. Twelfth Edition. By Hawkins and Mothersbaugh. ISBN: 978-0-07-353004-8 (2013). Digital support available: www.mhhe.com/hawkins12e ADDITIONAL COURSE MATERIAL: Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions. By Dan Ariely. ISBN: 978-0-06-135324-6 (2010). Paperback and Kindle versions available. COURSE LECTURES and NOTES: All course materials will be available on Moodle. Class announcements will also be posted to Moodle throughout the quarter. EXAMS: Three exams will be administered during the quarter. Each will consist of essay questions with a heavy focus on the application of the concepts and theories discussed in class and in the text. All exams will be administered via Moodle and must be completed within the time allotted. Exams will require access to the Internet and may be taken at the student’s choice of location (e.g., computer lab, home, office, etc.). Exam responses MUST be typed in MS Word format and be received via email by the professor by the appointed deadline on exam day. Late Exams will not be accepted! Once exams are graded, scores will be posted on Moodle. LIFESTYLE DATA PROJECT: Included with the purchase of your text is a DDB Lifestyle Study Data Disk. Included on the disk are Excel spreadsheets summarizing the annual U.S. consumer lifestyle survey collected by DDB Worldwide, a leading advertising agency. Guided by this information, each student must identify a new product or service to which there is likely to be a need and a viable target market. The product must not be an existing product! Students are encouraged to be creative in their product selections. Product proposals are due on December 12. Once approved, each student must compose a marketing strategy plan for his/her product idea to include a description of the new product, identification of the target market, description of product positioning (differential advantage relative to competition), and a proposed marketing mix (product features, price level, promotional strategy, distribution strategy, and services). Appendix B is a useful resource. An outline of the required content is attached. The report is worth 100 points and must be submitted by 10:00 a.m. on March 2. COURSE GRADE DETERMINATION: Exams (100 points each) Lifestyle Project 300 points (75 % of course total) 100 points (25% of course total) Emergency Notification System (ENS): All Louisiana Tech students are strongly encouraged to enroll and update their contact information in the Emergency Notification System. It takes just a few seconds to ensure you’re able to receive important text and voice alerts in the event of a campus emergency. For more information on the system, please visit: http://www.latech.edu/administration/ens.shtml. In the event of a campus emergency, login to Moodle (http://moodle.latech.edu) within 36 hours of a University closure to receive instructions regarding the course. Accommodation for Special Needs: Students needing testing or classroom accommodations based on a disability are encouraged to discuss those needs with the professor as soon as possible. Required documentation from the DSS office (e.g., appropriate DSS memorandum) should be provided. Academic Misconduct: University policy with respect to academic misconduct will be strictly enforced. Academic misconduct will not be tolerated. Cheating on exams, plagiarism, or copying another student’s assignments will result in a grade of zero. In accordance with the Academic Honor Code (www.latech.edu/tech/students/honor-code.pdf), students pledge the following: “Being a student of higher standards, I pledge to embody the principle of academic integrity.” Any attempts at cheating, plagiarism, or facilitating academic dishonesty will be penalized. Students are advised to read the Academic Misconduct section of the current University Bulletin. Please be aware that misrepresentation of an excused absence is grounds for academic misconduct. Date (by week) December 3 December 5 December 8 December 10 December 12 December 15 December 17 December 19 January 5 January 7 January 9 January 12 January 14 January 16 January 19 January 21 January 23 January 26 January 28 January 30 February 2 February 4 -6 February 9 February 11 February 13 February 16 -18 February 20 February 23 February 25 -27 March 2 CLASS SCHEDULE Topic Chapter Course Overview Introduction to Consumer Behavior Consumer Research Consumer Decision-Making Process Product Proposal Due (submit via email) Information Search Alternative Evaluation and Selection Merry Christmas! (No Class Lecture) Outlet Selection and Purchase Post-purchase Processes, Consumer Satisfaction Situational Influences Exam 1 Cross-cultural Variations Changing American Values MLK Holiday Changing American Demographics Changing American Subcultures Changing American Families Group Influences Exam 2 Perception and Being Predictably Irrational Learning, Memory and Positioning Motivation, Personality, and Emotion Attitudes and Influencing Attitudes Mardi Gras Break Self-Concept and Lifestyle Exam 3 Lifestyle Project Work – no class lectures Lifestyle Project Due (submit via email) 1 Appx. A 14 15 16 17 18 13 2 3 4 5 6 7 8 9 10 11 12 Learning Objective To define consumer behavior To review research methods To overview the steps in decisionmaking process To discuss the process of search for, evaluation of and selection of product alternatives To describe outlet and item selection, post-purchase processes and situational factors To evaluate the impact of culture on consumer decisions To illustrate American culture To describe evolving population and cultural trends in the U.S. To examine forms of group influence on decision-making, including family and social class To introduce strategic implications of consumer perception To introduce learning theories To learn dynamics of individual differences affecting decisions To illustrate consumer lifestyle segmentation and theories of self THE PROFESSOR RESERVES THE RIGHT TO MAKE CHANGES TO THIS SCHEDULE WITH NOTICE TO THE STUDENTS Lifestyle Project Outline I. Product Description A. What is your product? (provide a name and a detailed description) B. What type of problem will your product satisfy? C. What type of innovation is your product? D. What is the expected diffusion rate of your product? (Evaluate your product using the characteristics which influence the adoption rate of a new product.) II. Target Market A. What is the target market for your product? Utilize the appropriate segmentation approaches (demographic, psychographic, usage, benefits, and geographic) to identify the target market for your product. Be sure to refer not only to the introductory class discussion of market segmentation, but also to the specific discussions on the individual and environmental influences which may be applicable to your product (i.e., personality and lifestyle, family life-cycle, culture / subculture, social class, etc.). B. Why is the selected target market the most appropriate segment? (Use the criteria for successful segmentation to justify your choice of target market.) C. What is your intended target market strategy (i.e, single or multiple segments)? Why? III. Situational Analysis Conduct secondary data analysis for your proposed product and market. This information should provide a justification as to why your product is needed in the marketplace and why your product has a competitive advantage. A. Situational Environment i. Demand / demand trends – industry trends ii. Social and cultural environment and trends iii. Demographic environment and trends iv. Economic environment and trends v. Technological environment and trends vi. Political and legal environment and trends B. Competitive Environment (What existing products currently satisfy the same need as your product? Is there any information about these products available to help formulate your strategy?) i. Detailed competitive evaluation, including detailed assessment of product, price, promotion and distribution IV. Product Positioning A. What will be differential advantage of your product? How will you position the product relative to the competitive alternatives? V. Marketing Mix A. Pricing Strategy a. At what price to you intend to offer your product? Why? B. Promotional Strategy a. What components of the promotional mix do you intend to use to promote your product? (i.e., advertising, sales promotion, public relations, personal selling) Why? C. Distribution Strategy a. Through what type of distribution channel do you plan to make your product available? Why? VI. Appendix (reference list, etc.)