Consumer Behavior

Bachelors of Business Administration

CONSUMER BEHAVIOR
Subject Outline

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SUBJECT OUTLINE
Subject Details…………………………………………………………………………….. 3
Pre requisites and presumed knowledge …………………………………………………… 3
Synopsis ………………………………………………………………………………...... 3
Subject rationale ……………………………………………………………………………. 3
Study load ………………………………………………………………………………….. 3
Learning outcomes …………………………………………………………………………. 4
Graduate qualities ………………………………………………………………………….. 4
Content ……………………………………………………………………………………. 5
Resources ………………………………………………………………………………...... 9
Assessment ………………………………………………………………………………… 9
Choosing your company & International Business activity……………….……………….. 10
Project Proposal…………………………………………………………………………… 12
Final Presentation.………………………………………………………………………… 14
Exam ……………………………………………………………………………………… 14
Academic integrity: avoiding plagiarism, collusion and other issues …………………… 15
Background information ………………………………………………………………… 15
Learning materials ………………………………………………………………………… 15
Planning your subject study ………………………………………………...................... 15
Student feedback on subject ………………………………………………...................... 16
Appendix 1 - Marking Rubric for Reflective practice assignment…………………... 17
Appendix 2 - Assessment Grading Criteria – Oral presentation ……………………... 19

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Subject details

Subject Credit Points: 3

Course Level: INTERMEDIATE

Synopsis
The course enables students to study the consumer as decision maker. This course examines social and psychological influences on
purchasing decisions, emphasizing their implications on marketing strategy.

 Define key consumer behavior terms and concepts (content knowledge).

 Compare and contrast different types of consumers
 Demonstrate sound understanding of consumer behavior theory and research and its application to marketing practice.
 Demonstrate sound understanding of consumer purchase process.
 Discuss internal and external influences on consumer purchase process.
 Critically evaluate how cultural variables affect consumer decision making process

Subject rationale
To introduce the student to consumer psychology and key concepts of consumer behavior so that they can understand consumer
decisions, be able to evaluate marketing campaigns and create more effective marketing strategies.

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Study load
Aligned with the volume of learning requirements of the Higher Education Commission 3 credit point subject nominally involves 45
hours of study. Study-related activities may include class lectures, online videos, independent study, interaction with staff and peers,
reflection, application in the workplace, quizzes, assignment preparation, forum activities and other.

Learning outcomes
This table lists the learning outcomes (LOs) for the subject.

IU’s Subject LO categories On completion of this subject IU Graduate Qualities

participants should be able
to:

Knowledge LOs LO1: To gain a better  Conceptual

understanding of yourself as a Knowledge
consumer
LO2: To learn the concepts and
theories that underlies
consumer behavior
Comprehension LOs LO3: To gain a deeper  Critical Thinking
understanding of how the
consumer contributes to the
success of a brand or firm

Application LOs LO4: To learn how to  Critical Thinking

implement these theories and  Managerial
concepts into effective Knowledge
marketing strategies

Analysis LOs LO5: To intelligently express  Critical Thinking

your insights into consumer  Decision Making

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behavior in informal discussion,

formal presentation, and written
prose

Synthesis LOs LO6: Link this understanding to  Critical Thinking

current issues in the dynamic  Lifelong Learning
and rapidly changing
environment.

Content
1. Introducing consumer behavior
• What is consumer behavior?
• Consumer’s impact on Marketing strategy, consumers are different! How we divide them up
• Marketing’s impact on consumers, what does it mean to consume?
• Marketing ethics and public policy, do marketers manipulate consumers?
• Consumer behavior as a field of study
• Case Study: Tansique Watch marketing in India

2. Perception
• Sensory systems
• Exposure; sensory thresholds, augmented reality and subliminal perception
• How do marketers get our attention?
• Interpretation; Stimulus organization, interpretational bias
• Perceptual positioning

3. Culture & Subculture influences on consumer behavior

• What is culture?
• Cultural stories and Ceremonies, myths and rituals
• Sacred and profane consumption

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• Subcultures. Microcultures, and consumer identity

• Ethnic and Racial subcultures
• Religious subcultures
• Age subcultures, the youth market, Gen Y, Tweens, Gen X, the mature market.
• Cross-cultural values, does global marketing work?
• The diffusion of consumer culture
• Research Paper: De Mooij, M., & Hofstede, G. (2011). Cross-cultural consumer behavior: A review of research
findings. Journal of International Consumer Marketing, 23(3-4), 181-192.
• Assignment 1: Reading research papers related with influence of culture on consumer behavior and presentation of
summary

4. Identifying social classes and their impact on buying behavior

• Consumer Spending and Economic Behavior
• Social Class Structure
• Components of Social Class
• Status symbols
• How do we measure social class?

5. Family life cycle and consumer behavior

• The modern family
• Animals are people too! Nonhuman family members
• The family life cycle
• The intimate corporation: family decision making
• Sex roles and decision-making responsibilities
• Heuristics in joint decision making
• Children as decision makers: consumers in training.
• Research Paper: Thomsen, T. U., & Sorensen, E. B. (2006). The first four-wheeled status symbol: Pram consumption
as a vehicle for the construction of motherhood identity. Journal of Marketing Management, 22(9-10), 907-927.
• Case Study: Lego toys-the story of playful learning

6. Personal influence & diffusion of innovations

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• How do we decide to adopt an innovation?

• Behavioral demands of innovation
• Prerequisites for successful adoption
• Case Study: Technological innovation – The Philips Way

7. Personality and self-concept

• What is the self?
• Gender differences in consumers
• Freudian theory
• Neo-Freudian theories
• Brand personality

8. Motivation and involvement

• Motivational strength
• Needs versus wants
• How we classify consumer needs
• Maslow’s hierarchy of needs
• Levels of involvement: from inertia to passion
• The many faces of involvement

9. Learning and memory

• Behavioral learning theories
• Marketing Applications of Classical Conditioning Principles
• Marketing Application of Instrumental Conditioning Principles
• Cognitive learning theory
• How our Brain encodes information
• Memory systems
• How or memories store information
• How we retrieve memories when we decide what to buy
• What makes us forget?

10. Understanding and measuring attitudes

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• The ABC model of attitudes

• Hierarchies of effects
• How do we form attitudes? The consistency principle, self-perception theory, social judgement theory, attitude models
• Do attitudes predict behavior?
• How do marketers change attitudes?
• Case Study: Anti-smoking campaign

11. Purchase Decision Process

• Perspectives on decision making
• Types of consumer decisions
• Steps in decision marking process, problem recognition, information search, evaluation
• Mental Accounting: Biases in the Decision-making process
• How do we decide and select among alternatives?
• Heuristics: Metal Shortcuts
• Market beliefs: Is it better if I pay more for it?
• Do we choose familiar brand names because of loyalty or habit?
• Case Study: Star Airways
• Research Paper: Botti, S., & Iyengar, S. S. (2006). The dark side of choice: When choice impairs social
welfare. Journal of Public Policy & Marketing, 25(1), 24-38.

12. Buying and Disposing

• Situational Effects on Consumer Behavior; our social and physical surroundings, temporal factors
• The shopping experience; when the going gets tough, the tough go shopping
• E-Commerce: Clicks Vs Bricks.
• Retailing as theater
• Store image and instore decision making
• Post purchase satisfaction
• What can we do when we are dissatisfied
• Disposal Options
• Research Paper: Chowdhury, T. G., Ratneshwar, S., & Mohanty, P. (2009). The time-harried shopper: Exploring the
differences between maximizers and satisficers. Marketing Letters, 20(2), 155-167.

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Resources
Prescribed textbook

Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer behavior: Buying, having, and
being (12th edition). Pearson.

Optional resources

Schiffman, L. G., & Kanuk, L. L. (2000). Consumer behavior, 11th NY: Prentice Hall.

Periodicals
1) Journal of consumer behavior
2) Advances in consumer research
3) Journal of consumer psychology
4) Psychology and Marketing

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Assessment
Assessment item Brief Weighting Due date Related learning
description outcomes

Quizzes 3 quizzes of 5 10% Week 3, Week 7, LO1-LO6

marks each, Week 11.
(n-1)

Project 3000 word (plus 20% Week 13, 14 LO1-LO6

or minus 10%) (15% for report
written 5% for
assignment. presentation)
Details provided
below

Assignment 1 Details provided 5% Week 4 LO1-LO6

Presentations above

Mid-Term One mid-term 25% Please refer to LO1-LO6

your timetable
Final Exam 2.5 hour exam 40% Please refer to LO1-LO6
your timetable

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Project

Students can form groups of 4 to 5 by the second week.

Students will be required to choose a brand in Pakistan and study the behavior of consumer regarding it. They will have to research
and investigate consumer behavior aspects related to the brand such as motivation, learning, attitude, perception and personality of the
consumer, etc. Students are recommended to choose from categories like telecommunication, bank, chips, milk, snacks, cosmetics,
confectionary, tea, etc.
They will initially have to determine the consumer profile through surveys.
Then report the current marketing practices used by marketers to influence them.
They will analyze whether the strategy used by the brand is viable or not and make recommendations accordingly.

Each group will have to submit the name of the brand they will be working on by week 4. All groups need to choose different brands.
They will have to submit a 3000-word report which a margin of 10% allowed for word count.
The report will have a 15% weightage and presentation of the report will have 5% weightage so in total the project will have 20%
weightage.

Exam

There is a two and a half hour written exam at the end of this subject. Iqra’s exams are designed in such a way that all questions are
compulsory and there is no element of choice. Remember to always read the instructions carefully before starting the exam.
All students, unless otherwise stated, must sit in their exams halls till completion of the time.

Academic integrity: avoiding plagiarism, collusion and other issues

It is important to adhere to high standards of academic integrity. Academic integrity refers to ethical, honest and responsible conduct
in writing and reporting. Breaches of academic integrity include:

• Plagiarism – submitting another person’s words or ideas as your own without appropriate acknowledgement and referencing.

• Collusion – submitting work as if it is one’s own when in reality it has been completed with others, including assisting or being
assisted by another; receiving or giving assignment details to another; or publishing one’s work.

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• Contract writing (Ghost Writing) – submitting work that has been contracted out to others to complete on one’s behalf. This is a
form of collusion.

• Fabrication – submitting work with results or data that do not exist and that have been made up.

• Double submission – submitting substantially the same piece of work for more than one subject unless agreed upon with the
facilitators of the different subjects

Please note that IU checks assignments for plagiarism (using advanced text-matching software) and for other academic misconduct.
IU penalizes work and/or people found to have been in breach of academic integrity.

Background information
Learning materials

All of your materials and activities are provided online and are designed to lead you through the learning process for this subject.

Planning your subject study

Iqra has a four month semester model of study. In every study month there are some key dates which are outlined in the assessment
table above. You need to plan out regular study times – and stick to them. Plan out your study times and periods with the key dates.
You can do this by first allocating time for living and working activities (ensure you plan enough sleep, rest and relaxation) – and then
allocating your time for study periods. In addition you should:

• Plan how you will study for the exam.

• Identify your time ‘wasters’ and have strategies in place to manage them. For instance, if you procrastinate, make sure you stick to
study times, get started, and ‘divide’ the work into manageable pieces.

• Be disciplined. Stick to your plan and be realistic about what you can achieve.

The study planner below is provided as an example and it should be used as guidance only.

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Subject week* Suggested progress

4 weeks prior to subject start date Review Subject Outline for details on your
textbook. If possible, obtain your textbook four
weeks prior to the subject start date.

Month 1 subject starts Familiarize yourself with assessment tasks.

Plan your assignment.
Plan your learning over the next four weeks.
For example, for a 10 topic subject, study
topics 1–3 in the first month.
Month 2 Study topics 4–6.
Work on your assignment.
Month 3 Study topics 7–10.
Finalize your assignment and submit by the
due date.
Month 4 Revise all topics, practice exam techniques

*Some semesters may be shorter in duration; the sample study planner above is based on a 4 month semester.

Student feedback on subject

As part of our commitment at IU to improve the quality of our courses and teaching, we regularly seek feedback on your learning
experiences. Student feedback informs evaluation of subject and teaching strengths and areas that may need refinement or change.
Your Iqra end of Subject Survey is a formal and confidential method for you to provide feedback about your subjects and the staff
members teaching within them. You will get an option to give feedback on IULMS. We value your feedback and ask that you to
provide considered feedback for each of your subjects.

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Appendix 1 - Marking Rubric for Reflective practice assignment

High Distinction Distinction 75 % - Credit 65 % - 74

Key Components P1 55 % - 64 % P2 50%-54% Fail 0%-49% Weight
85 % - 100 % 84 % %
Understanding of The student has The student has The student has The student has The student has The student has 20
course content that demonstrated a demonstrated a demonstrated the demonstrated a just barely fulfilled demonstrated no
is used as the basis broad conceptual good conceptual ability to describe basic the minimum understanding of
for reflection
understanding of understanding of the main elements understanding of requirements of the concepts of
the concepts of the concepts of of the concepts of the concepts of using course leadership. The
leadership and has leadership and has leadership and has leadership. The concepts in the student has made
used the concepts used the concepts also attempted use student has made assignment as the no attempt to use
as the basis of the as the basis of the the concepts as the some attempt to basis of the the concepts as the
reflection. reflection. basis of the use the subject reflection. basis of the
reflection. concepts as the reflection.
basis of the
reflection.
Extent to which entry All entries All entries All entries The entries are The entries barely The entries do not 20
contains reflective provided by the provided by the provided by the mainly descriptive fulfil the minimum have any elements
writing student consist of student consist of student consist of and have very little requirements for of reflective
predominantly reflective some reflective reflection. reflective writing. writing.
reflective writing. elements. writing.
The entries The entries The entries The entries The entries The entries 20
Depth of reflection
and extent to which provided by the provided by the provided by the provided by the provided barely provided lack a
reflection is directed student student are more of student are student are fulfil the minimum depth of reflection
towards a purpose consistently apply a dialogic primarily a primarily requirements for and are not
an in depth critical reflection than an descriptive descriptive and depth of reflection directed towards a
reflection. The in depth critical reflection. The lack depth. The and the extent to purpose.
reflection has a reflection. The entries are student is which the
clear outcome and reflections are descriptive in attempting to reflection is
is directed towards stepping back from nature and lack direct towards a directed towards a
a purpose. events, taking depth, though there purpose but by purpose.
stock and are may be descriptive only conveying
directed towards a elements. information.
purpose.
Extent to which The entries have The entries have The entries have The entries have The reflective The reflective 10
personal experience personal personal personal personal entries barely fulfil entries have no
is incorporated in experience experience experience experience the minimum personal

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responses incorporated which incorporated and incorporated which incorporated which requirements of experience
reflect and review the personal values describes the only describes incorporating incorporated.
personal change. influence the personal values of personal events. personal
reflection. the student. experience.
Referencing The student has The student has The student has The student has The student has The student has 10
adhered to Author adhered to Author adhered to Author adhered to Author not adhered to not adhered to
date referencing date referencing date referencing date referencing Author date Author date
conventions. conventions. conventions with conventions with referencing referencing
The student has The student has minor errors. major errors. conventions. conventions.
used appropriate used appropriate The student has The student has The student has The student has
number of quality number of used appropriate used appropriate not used not used any
references. references. number of number of appropriate references.
The student has The student has references. references but they number of quality The student has
acknowledged acknowledged The student has lack academic references. not used any in
sources of facts sources of facts acknowledged quality. The student has text citations.
correctly. appropriately. sources of facts, The student has not acknowledged
but not in all cases. acknowledged sources of facts
sources of facts, appropriately.
but not in all cases.
Communication Highly developed Well-developed Good The assignment The assignment The assignment 20
and presentation communication communication communication was presented with did not conform to was not of a
style and presentation and presentation and presentation a basic structure the AIB Style professional
skills skills skills. and presentation. guide for standard. The
The referencing presentation, requirements laid
style had no major referencing, out in the AIB
issues. The communication, style guide were
communication style and language. not followed.
skills were
adequate.
Total 100

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