OBJECTIVESCOURSE MATERIALSHBS CasesAdditional ReadingGRADINGDr. Lauren Block Consumer Behavior MKT B70.2347.70 Tues/Thurs 6:00 - 9:00 Summer 2004 – June 29 – Aug 5 Stern School of Business Phone: 646.312.3297 Office Hours: by appointment Email: [email protected]_______________________________________________________________________ OBJECTIVES This course introduces consumer behavior, providing students with an understanding of why buyers behave as they do in the marketplace. During the semester we will explore consumer behavior from two perspectives: 1) as a consumer who must make a multitude of decisions every day about what products to buy and 2) as a marketing manager who needs the knowledge of consumer behavior in order to develop, evaluate and implement effective marketing strategies. COURSE MATERIALS 1. TEXTBOOK Hoyer and MacInnis (2004) Consumer Behavior, Third Edition. 2. COURSE PACKET (Bookstore) HBR Readings Creating New Market Space Want to Perfect Your Company’s Service? Use Behavioral Science The Buzz on Buzz What Becomes An Icon Most The Hidden Traps in Decision Making HBS Cases The Dimensions of Brand Equity for Nestle Crunch Bar (HBS 9-500-083) G. Heileman Brewing Company (A): Power Failure at PowerMaster (HBS 9-592-017) Additional Reading Todd Wasserman, Sharpening the Focus, Brandweek Nov 3, 2003, Melanie Wells, Pushing Your Buy Button: Neuroscience Meets Marketing, Forbes, Sept. 1, 2003 Dangerous Supplements Still at Large, Consumer Reports, May 2004GRADING Exam 30% Mid-semester Paper 25% Presentation 25% Class Participation 20% Mid-semester Paper (25%) Students are required to turn in a two to three-page paper (doubled spaced, 11 point font, 1 inch margins) on July 15. The paper’s purpose is to provide you with an opportunity to integrate and apply the material learned in this class to a new product just introduced to the market (or planned in the near-term). By choosing a brand new product, you can discuss the elements of consumer behavior that need to be changed in order to successfully market this product. Depending on the particular product you choose, you may want to discuss some combination of the following: consumer research conducted prior to introduction; cognitive and affective beliefs; attitude change and formation; involvement; persuasion; decision making; consumption, use or disposition of the product. Please describe the product briefly (one to two paragraphs) and, if possible, include a sample, photo, or source article as an appendix. Trade magazines are a good source of information about new products. Try a marketing magazine (e.g., Brandweek) or a newspaper (e.g., NYT, WSJ) for inspiration. See the last page of the syllabus for examples of new products that would be easy to write a paper on. Feel free to discuss your ideas with me via email prior to the due date. Papers will be graded based on 50 points allocated as follows: A) 35 points: Integration and application of course content B) 10 points: Writing (e.g., cohesiveness, professionalism, grammar) C) 5 points: Creativity and suitability of topic/product Exam (30%) There will be one in-class exam consisting of multiple choice and/or short answer questions on the date indicated in the schedule. These questions will test not only your understanding of the basic consumer behavior concepts but also your ability to apply them appropriately to marketing situations and problems. I will provide more specific information about the nature of the questions closer to the test date. The exam is closed book and closed notes.Presentation (25%) The purpose of the presentation is to provide an opportunity to expand the consumer behavior topics covered in class with material of personal interest. Here are examples of what I mean (please be creative with your choice): 1. We will cover culture and subcultures generally, but we will not discuss any particular group in-depth. You might choose to present an overview of the teen market or the Hispanic market. 2. We will discuss how to create more involving advertisements. You might choose an advertising strategy (e.g., humor) or a particular ad to focus on in-depth. 3. You could choose to conduct primary research (survey, focus group, etc.) to explore a particular hypothesis you have about one aspect of consumer behavior. I can help you formulate your hypothesis and research method if you choose this route. Inspiration for topics comes from many sources: the textbook, magazines, television ads, your favorite products, etc. Feel free to discuss your ideas with me via email prior to your presentation date. Presentations will be graded based on 50 points allocated as follows: A) 35 points: Integration and application of course material B) 10 points: Presentation style; handling of questions C) 5 points: Creativity and suitability of topic Please give me a hard copy (notes: 4 to a page) of your slides. The cover slide must have your name and email address. Class Attendance and Participation (20%) Every session of the course will involve interaction in the form of class discussion. I expect each one of you to come to class on time and be prepared to contribute to any class session. To ensure credit for class participation, you must display your name card in every class session. Assigned readings are intended to provide the framework for understanding fundamental concepts and provide examples of their usefulness. The text and readings are intended to prepare you for case discussions and class participation. Please go over the readings prior to class. Lectures will not duplicate text or reading material: they will supplement and embellish the text, and offer alternate viewpoints. Keep in mind that your grade for class participation is not simply a function of the amount of "air time." Sheer quantity of participation is neither sufficient nor necessarily desirable. Your presentation and defense of your views are central to the course, and this is reflected in the grading scheme. You will be evaluated on how well you respond to questions and on how effectively you take into account the comments and analyses of your classmates. Here are some of the factors that I will consider when determining yourclass participation grade: Did your comments add to our understanding of the situation? Did you go beyond simple repetition of class facts? Do your comments show an