CONSUMER BEHAVIOR MK-450 School of Business & Economics Resource Person Program Prerequisite for the course Credit Hours Semester Class Timings Office Counseling Hours Telephone # E-mail Assistant Professor. Mobin ul Haque BBA Marketing Management 3 Spring 2014 Monday Tuesday, tuesday and Wednesday 11:00 to 1:00 and by Appointment 521-2801-b ext 353 mobin@umt.edu.pk THE BUSINESS OF BUSINESS IS GETTING AND KEEPING CUSTOMERS. Peter Drucker INTRODUCTION From the time we learn to walk and talk, we are all involved in consumer behavior on a daily basis. Whether we go to a retail store, shop via catalogue or on the Internet, sit at home eating breakfast; we are functioning as living, breathing consumers. All of us face a myriad of consumer decisions each day, for deciding which brands to use and buy, where and how to buy, and how to spend time and resources. If we consider all the encounters that we have each day with products, brands, and advertisements, not to mention people and time expenditure choices, we begin to understand something about the scope of the subject called Consumer Behavior. Far more than just a specialized area of marketing, consumer behavior affects nearly every aspect of our lives. UMT-School of Business and Economics - 1/10 - This course is a combination of both the theoretical concepts of consumer behavior and their application to marketing strategies and decision making in the private, public, and non-profit sectors. At the conceptual level, it seeks to present an integrated framework around which the major areas of consumer behavior knowledge can be discussed. Rather than just paying token attention, this course thoroughly incorporates marketing realism in several ways. First, throughout the course frequent reference is made to actual or potential applications of the concepts being discussed. Second, questions and projects at the end of each chapter offer opportunities for experiential learning. Here, research may be conducted, decisions made, or other creative activities undertaken, brining students closer to the real world of marketing. LEARNING OBJECTIVES Want to have fun learning? Then get ready for an exciting, interesting, and rich ride into the minds of consumers. We will go deep into the consumer’s buying decision process and discover the impacts of perception, information processing, learning, experience, belief, feelings, and attitude on consumer’s selection of branded and non-branded products and services. We will also identify the external influences on their purchasing behavior including culture, sub culture, social classes, and groups. We will play the roles of psychologists, sociologists, ecologists, anthropologists, and economists to anticipate consumer needs and develop strategies leading to consumer delight. As marketing managers you will be trained to seek out, analyse, and strategically act upon consumer behavioural insights to build your consumer franchises. You will be challenged to solve business case analyses focused on consumer behavior issues throughout the semester. Likewise, as part of a team, you will have the opportunity to expand your learning through the development of a Consumer Marketing Plan. By the end of the semester, you will develop an understanding of consumer behavior that will serve you in many on and off-line business solutions and thus will add value to your knowledge of marketing. UMT-School of Business and Economics - 2/10 - LEARNING METHODOLOGY TRAINING INSTRUMENTS Activities Reading Material Seminar Briefing Guest Speaker Lectures Focus Case Study & Presentation Skills Development Exercises Handouts Educational Visits (if required) Project Reports Weekend Tutorial Training Films Any Other RECOMMENDED TEXT BOOK 1. Consumer Behavior, 10th Edition, By Schiffman & kanuk REFERENCE BOOKS 1. CONSUMER BEHAVIOR BY NEAL, QUESTER & HAWKINS INTERESTING SITES TO VISIT AREA OF RESEARCH www.cuc.com www.adage.com www.adcritic.com www.did-it.com www.emarketer.com/how2/welcome.html www.cognitiative.com www.wilsonweb.com/articles www.ipro.com www.activmedia.com www.gap.com www.geocities.com www.pointcast.com www.ad-up.com On line shopping guide Advertising Ads on line with critique Direct and on line marketing E-Marketing reports Latest on consumer behavior Internet marketing A.C. Nielsen research data reports Research on online consumers Computer mediated buying Psychographic Segmentation Consumer information of interest Target Market selection on internet UMT-School of Business and Economics - 3/10 - ASSESSMENTS: All of the activities held during the semester will be evaluated; the final grades for the course will be as follows COURSE EVAULATION WEIGHTAGE Quizzes 15% Assignments 20% MID 20% Project 15% Final 30% Total 100% CLASS PARTICIPATION & ATTENDANCE Prior Preparation, Regular Attendance, and Professional Participation in all classes is Expected and Rewarded. Come to the Class prepared to lead the class discussion for analytical interpretations, alternative strategies, and persuasive solutions. Please arrive on time and leave as scheduled. Absences will negatively impact your grade. QUALITY of all communications, written and oral, will be evaluated. PERSONAL ETHICS We all live in a world that is heavily dependent upon a web of trust. This web knits together colleagues, superiors, and subordinates inside the organization and suppliers and customers outside the organization. The same trust also exist between a teacher and student (s). It is therefore strongly advised that individuals or team (as defined by the assignment or project) keep themselves clear from academic dishonesty. Cheating, plagiarism (submitting the language, ideas, thought or work of another as one’s own) or otherwise obtaining grades under false pretences will result in either a fine by the disciplinary committee or a failing grade in the course or both. UMT-School of Business and Economics - 4/10 - CALENDAR OF ACTIVITIES Starting Date: Session 1 Topic, Readings, Assignments & Projects Introduction Consumer as Individual Motivation Chapter 4 2 Assignment1: Bring two video ads that depict approach object and avoidance object concept. Briefly describe each. Assignment 2: in the light of the chapter concepts Interview five people who have bought expensive brands recently. Identify their motivation and need. Identify the link between intrinsic and extrinsic needs (page 91) Submission: 4th Class Personality 3 Perception Chapter 6 4 Assignment 5: Develop a perceptual map of a product category. Discuss implications Submission 6th class Consumer Learning Chapter 7 5 Consumer Attitude Formation and Change I Chapter 8 6 Assignment: Measure Consumer attitude of three products of a product category. Develop strategies to change attitudes for one product Submission: 8th class UMT-School of Business and Economics - 5/10 - Consumer Attitude Formation and Change II 7 8 Chapter 8 MID Presentation and QUIZ Consumer Decision Making Decision Process and Problem recognition 9 Read handout: Chapter 13 & 14 NOTE: Separate handouts will be given for lectures on Decision Making Information search & Alternative Evaluation 10 Outlet Selection and Purchase 11 Reference Groups and Family 12 Read Chapter 10 Schiffman The influence of Culture on Consumer Behavior 13 14, 15 Read Chapter 12 Schiffman Final Presentations UMT-School of Business and Economics - 6/10 -