Consumer Behavior
Fall Term 2012
Professor Amit Bhattacharjee
Office: Buchanan 101
Amit.Bhattacharjee@tuck.dartmouth.edu
Office Hours: Mondays 3:00 – 5:00pm
Class Meetings: Mondays and Tuesdays 10:15 – 11:45am
General Motors Classroom
Academic Coordinator: Brenda Gray
Office: Buchanan 009
Brenda.Gray@dartmouth.edu
Note: Please note that times and topics are tentative and subject to change. In particular, the timing of
some topics in the later parts of the course may change in accordance with guest speakers’ schedules. An
updated and final version of the syllabus will be posted as soon as possible.
Course Overview
___________________________________________________________________
Contemporary approaches to business emphasize the importance of adopting a consumer focus. Marketing,
in particular, begins and ends with the consumer—from determining consumer needs to ensuring postpurchase satisfaction.
The primary goal of this course is to enhance your understanding of consumer behavior. By the end of the
course you will be knowledgeable about consumer psychology and ways of better meeting people’s needs.
You will also appreciate how an understanding of consumer psychology can be used to develop powerful
marketing techniques and tactics. A richer understanding of the consumer experience is crucial for marketing
managers and businesses of all sorts. Hence, the course seeks to provide an important competitive advantage:
an ability to make more insightful business decisions that integrate a deeper understanding of human
psychology. In the process, you may come to better understand yourself as a target of marketing influence
and gain insight into your own decisions and behaviors.
Course Materials
___________________________________________________________________
Required:
1. The course is structured around two best-selling books: Robert Cialdini, Influence: Science and Practice; Paco
Underhill, Why We Buy: The Science of Shopping
2. The course packet includes the syllabus, cases, and a number of readings listed below.
3. TuckStreams: stay tuned for announcements, supplementary readings, additional assignments, lecture
notes, and other delightful surprises. Check frequently for updates. I will also post relevant news articles,
examples, or research papers for those who want to go deeper.
Recommended:
4. This textbook helps provide an integrative picture of the course concepts: Wayne D. Hoyer and Deborah
J. MacInnis, Consumer Behavior, 5th edition.
Performance Evaluation
___________________________________________________________________
2 Case Analyses (individual)
Social Influence paper (team)
Field Project paper (team)
Field Project presentation (team)
Class Participation (individual)
20%
20%
15%
15%
30%
Case Write-Ups (20%)
To facilitate good case discussions, each of you is responsible for submitting a case write-up via TuckStreams
by 10am on the day we discuss each of the following 2 cases:
Sep 18
Dove: Evolution of a Brand
Oct 2
Retail Promotional Pricing: When is a Sale Really a Sale?
Case preparation questions for each assignment will be posted on TuckStreams. Your write-ups should be no
more than 2 pages double-spaced. There is no need to go beyond the case for information. The case provides
all the company and background information you will need.
Social Influence Paper (20%)
This assignment requires your team to conduct an in-depth analysis of an organization from the perspective
of Robert Cialdini’s Influence. Your assignment is to choose an organization (profit or not-for-profit) that
interests you. Your team will then suggest how each “weapon of influence” could be used by marketers
within that organization to increase firm profitability and/or consumer welfare.
We all know what the book says, so do not spend time writing a book report that summarizes the chapters or
the weapons. Similarly, no need to provide extraneous detail about the organization you’ve chosen. Strong
papers will instead briefly (< 1 page) describe the organization with respect to consumer behavior (including
its current strengths and weaknesses), and then launch into an analysis of how each weapon could be used by
marketing managers and what the projected outcomes would be. Do not spend too much time discussing
current use of the weapons. Instead, focus your paper on recommendations to the organization leaders on
what they could do that they are currently not doing. The goal is to add value to the organization by
providing concrete, non-obvious, actionable suggestions for how managers could better use the weapons of
influence.
Your analysis should not exceed 12 double-spaced pages. (And minimize the font size and margin games.
Times New Roman 12-pt. or Arial 11-pt. font, 1 inch margins).
Field Project (30%)
Paco Underhill’s Why We Buy helps readers understand some of the critical factors that bring consumers into
stores, keep them there or drive them away, and eventually lead them to buy (or not). Your assignment is to
choose a local store as your “client”. It must be an independent, local store (no chains).
Your job will be to analyze the store layout and marketing, guided by the principles discussed in Why We Buy.
From a consumer behavior perspective, what is the firm doing right and what is it doing wrong? What can it
do to improve the quantity and quality of customers, increase profitability, enhance the customer experience,
and improve consumer satisfaction and loyalty? Be specific in your suggestions. The deliverable will be a
recommendation to the client on what they should keep and what they should change. While the cooperation
and engagement of the client may be beneficial for the project, it is not required. If you have a relationship
with the client, you can give store management a copy of the report if you’d like.
Please write a concise summary of your analysis, not to exceed 12 double-spaced pages (Times New Roman
12-pt. or Arial 11-pt. font), not including exhibits. Note that strong papers will use the ideas, theories, and
research discussed in Why We Buy and in class to frame the analysis and provide suggestions for improvement.
For the presentation of this project, each team will have 10 minutes to present your work to the class. Feel
free to create PowerPoint slides if that is helpful, but it’s not necessary. Also feel free to be creative and do
something interactive with the class, such as a demonstration or skit, etc. Presentations will be graded based
on whether you get the audience engaged and interested in the topic, whether the audience learns something
new from the presentation, and whether you communicate your ideas clearly and concisely.
Class Participation (30%)
There is a huge amount of collective knowledge in the class, and everyone will have something valuable to
contribute. This will be a better experience for everyone if you all share your thoughts, questions, and ideas.
Class participation is not about quantity. Class participation will be evaluated in terms of the quantity, but
more importantly, the quality, of your contributions. 25% of your total grade will be evaluated accordingly:
1. Attendance: Regular, punctual class attendance is a signal of your commitment to the course. This is
the easy part. As per the MBA Student Handbook, you must notify me or the Student Affairs Office
if you are unable to attend class due to illness or family emergency. Note that according to Tuck
School policy, missing a class for an interview or other recruiting activities is NOT an excused
absence. Of course, I recognize the importance of your job search and realize that some of these
conflicts may be unavoidable. If you must miss a class session because of recruiting activities, it is
your responsibility to: (a) notify me by email in advance of the class, indicating the name of the firm
and the reason for the absence, and (b) submit any answers to discussion questions or class exercises
prior to the class you will miss. Failure to do either of these will mean that the absence is not
excused.
2. Class preparation: Always be prepared to discuss the concepts, topics and issues for a particular
session. I will cold call as needed to facilitate a healthy discourse. Discussions with me and your
colleagues are the best way to internalize and apply the course concepts. Note that there are a few
assignments (e.g., VALS survey, IAT, Top 10 list) and quizzes that may not be officially graded but
are considered as elements of full participation.
3. Guest presentations: You will also earn class participation points by attending all guest presentations
and getting involved in the discussion (i.e., asking and responding to insightful questions). Due to
speaker schedules, the two guest lectures may be scheduled outside normal class times. Any updates
and changes will be posted on TuckStreams. If you have another class or other conflicts during these
times, please notify me in advance explaining your conflict.
5% of your total grade will be determined by you as an assessment of your own class participation. You will
be given the opportunity to evaluate your contributions to the course and assign yourself a participation
score. Your evaluation should consider the elements listed above. At the end of the semester, I will ask you
to prepare a one-page report that explains and justifies the participation grade that you have given yourself.
Class Policies
___________________________________________________________________
Electronic Devices
Out of respect for fellow students, visitors, and faculty, Tuck policy does not permit in-class use of laptops,
iPads, cell phones, electronic communication devices, or any other exotic gadgets. This applies to any class
sessions or guest speaker presentations.
Tuck Honor Principle
The Academic Honor Code is a critical aspect of the learning environment at Tuck. Much of your education
here will come from each other, and we encourage you to discuss the course concepts and material with your
classmates. However, it is important to distinguish between group and individual assignments. Obviously, any
group assignments should be worked on by the group as a whole. However, any individual assignments should
be only your own work. Group collaboration on individual assignments will be considered cheating.
Finally, the principal ingredient in the successful operation of the Tuck Honor Principle is good faith among
all parties. From time to time, situations are bound to arise in which the application of the Honor Principle is
unclear. In such circumstances, it is especially important to have the instructor's interpretation of the
situation. You are urged to ask for clarification at any point where the application of the Tuck Honor
Principle is unclear.
Course Schedule
Date
Topic
Description
Assignments Due
Week 1: What is Consumer Behavior?
Monday,
Sep 10
Tuesday,
Sep 11
Introduction: What is
Consumer Behavior?
H&M Chapter 1: Understanding Consumer
Behavior
Introduction: Marketing
Research
H&M Enrichment Chapter: Developing
Information
Consuming Rituals of the Suburban Tribe
Week 2: How Do Consumers Take in Information?
Monday,
Sep 17
Tuesday,
Sep 18
Theory Development:
Exposure, Attention and
Perception
Applied Insights: Case
Discussion
H&M Chapter 3: Exposure, Attention, and
Perception
Influence of Beer Brand Identification on
Taste Perception
Anywhere the Eye Can See, It’s Likely to
See an Ad
CASE: Dove: Evolution of a Brand
Submit Case
Analysis by 10am
Week 3: What Do Consumers Need and Know?
Monday,
Sep 24
Tuesday,
Sep 25
Theory Development:
Motivation
H&M Chapter 2: Motivation
Luxury for the Masses
Take the VALS
survey
Your Loyalty Program is Betraying You
Theory Development:
Knowledge and Learning
H&M Chapter 4: Knowing and Understanding
Studying Modern-Day Pavlov’s Dogs, of
the Human Variety
In-class exercise
Week 4: How Does Consumer Memory Work?
Monday,
Oct 1
Thursday,
Oct 4
Theory Development:
Memory
H&M Chapter 7: Memory and Retrieval
McDonald’s: Fries with That Salad?
The Good Ol’ Days of 20 Years Ago
Applied Insights: Guest
Speaker
Guest Speaker: Michelle Stacy (President,
Keurig)
Tentative time: 10:00am. Details to follow.
Week 5: What Influences Consumers?
Monday,
Oct 8
Tuesday,
Oct 9
Theory Development:
Attitudes and Social
Influence
Theory Development:
Nonconscious Influences
and Context Effects
H&M Chapters 5, 15: Attitude Formation and
Social Influence
Is Justin Timberlake a Product of
Cumulative Advantage?
Asch: Opinions and Social Pressure
H&M Chapters 6, 9: Attitude Formation and
Judgment and Decision Making
Implicit Predictors of Consumer Behavior
Voting-Booth Feng Shui
Influence: Science and
Practice should be
completed by now
Take IAT prior to
class
Submit Influence
paper by 10am,
Thursday, Oct 11
Managing the Total Customer Experience
Week 6: SECOND YEAR RECRUITING BREAK - NO CLASS OCT 15 - 19
Week 7: How Do Consumers Decide?
Monday,
Oct 22
Tuesday,
Oct 23
Theory Development:
Judgment and Decision
Making
H&M Chapter 10: Judgment and Decision
Making
Applied Insights: Case
Discussion
CASE: Retail Promotional Pricing: When
is a Sale Really a Sale?
Get Closer to Your Customers by
Understanding How They Make Choices
Submit Case
Analysis by 10am
Week 8: What Satisfies Consumers?
Monday,
Oct 29
Friday,
Nov 2
H&M Chapter 11: Post-Decision Processes
Theory Development:
Satisfaction
The One Number You Need to Grow
Want to Perfect Your Company’s Service?
Use Behavioral Science
Guest Speaker: David Roman (Chief
Marketing Officer, Lenovo)
Applied Insights: Guest
Speaker
Week 9: How Does the Marketplace Affect Consumers?
Monday,
Nov 5
Tuesday,
Nov 6
Theory and Application:
The Psychology of Money
If Money Doesn’t Make You Happy, Then
You Probably Aren’t Spending it Right
Theory and Application:
Policy and the Dark Side
of Marketing
H&M Chapter 18: Ethics and the Dark Side
Don’t!
Do Defaults Save Lives?
Week 10: Course Wrap-up
Monday,
Nov 12
Tuesday,
Nov 13
Applied Insights: Final
Presentations
Field Project Presentations
Why We Buy should
be completed by
now
Conclusions
Create a Top 10 list: what are the top 10
things people should know about
consumer behavior?
Top 10 List
Final Paper Due by Nov 15, 5pm
*All dates, activities and materials are subject to change.
Class participation
assessment by 10am