Universidad Adolfo Ibaez|

Sandra J. Milberg, Ph.D

Consumer Behavior
March 2015

Course Description
Consumer behavior is a sub-discipline concerned with the consumption activities of individuals more
so than markets. It lies at the crossroads of marketing, psychology, and economics. This course
integrates basic concepts, models, and theories explaining the buying and consumption behavior of
customers. Thus, the focus of this course is on understanding consumer characteristics such as,
perception, decision processes, and attitudes and how this knowledge can be used to develop
marketing strategies to influence consumer consumption.
Course Objectives
The marketing concept is consumer-oriented, integrated, and goal-oriented. This course is useful
because success as a marketer depends on knowing your customers, their wants, needs, motivations,
and capabilities as well as, knowing what factors influence people as consumers.
The goals of this course are:
1. To appreciate the importance of understanding the consumer for a firm's success
2. To introduce state-of-the-art knowledge of both theory and substantive findings about
consumer behavior
3. To provide concepts for understanding consumer reactions to marketing stimuli
4. To learn how to apply consumer behavior concepts in analyzing marketing problems and in
developing successful marketing strategies
5. To demonstrate that with understanding comes the possibility of influence
Required Readings-Course Packet
A packet of readings and cases are required for this course. Readings include articles from sources
such as, Harvard Business Review, Journal of Marketing Research, Journal of Consumer Research,
Journal of Marketing, and Business Week. In addition, book chapters (in Spanish) from Solomon
are included along with several cases.
Class Attendance and Participation
Students are required to attend at a minimum 75% of classes. Attending less than 75% of the
classes will result in failure of the course. Any classes missed, including those for illness, count
against the 75% attendance requirement. In other words, classes missed for illness will still
count as a missed class, even with a document from a doctor. If a student is signed into a class
period in which he/she did not attend it will also result in failure of the course. You are responsible for anything covered in class on the days missed. Much of the learning for this course will take
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place in the classroom. To help ensure a positive learning experience for everyone in the course,
students are expected to adequately prepare for and fully participate in class discussions. Class
discussions will be based on the assigned readings, which should be completed prior to class. The key
is to devote time after reading the material to thinking about the issues raised. Students should give
special thought to how the ideas set forth in the readings are/can be applied by practitioners.
Assignments and Grading
Grading in the course will be based on three case analyses, a group project and a final exam (see
below for more details). The weights assigned for each of these are as follows:
Case Analysis 1
Case Analysis 2
Case Analysis 3
Team Project
Final Exam

15%
15%
15%
25% (Part 1: 10%, Part 2: 15%)
30%

Case Analyses
Case analyses are useful in providing you with practical experience in dealing with strategic issues
faced in the real world. A two-page (12-point font, following the required format) analysis of
each case assigned will be due at the beginning of that class (unless specified differently). You
may not exceed two-pages in your case write-up. Cases can be written in Spanish or English.
Each case analysis is to be written individually (not with other students). It will be considered
cheating if the case analysis is prepared with other students or with any material which is from
other outside sources. Additionally, receiving help from outside people is also considered
cheating. Any copying or collaboration with other students will result in failure (1.0) of the
course.
Details for the analyses will be explained in class. Appropriate preparation is expected for all cases,
including the individually prepared, two-page analysis and readiness to discuss all aspects of the
case in class. Late work will not be accepted, as it makes little sense to read your case analysis
after our discussion of the case! Dont ask for extensions on cases. All late cases will receive a
grade of 1.0!
Team Project
Each team (5 person per team) is to be chosen by the students. The group will identify or create a
consumer product or service that is new to the Chilean market. It can be a product or service that
does not yet exist. It can be a product or service that is available in a market not in Chile or it
can be a brand extension.
The project will have 2 parts. Part 1 will be due on April 21 and Part 2 is due on May 19. For Part 1
students must provide a brief description of the product or service. In addition, students must
provide an analysis of the market (segments) to justify their choice of product or service that they
plan to introduce into the Chilean market.
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In Part 2 of the report the group will provide detailed descriptions and explanations of the
product/service, a competitor analysis, positioning, and price and distribution strategies. In addition,
groups must create an advertisement for the product/service. Finally, each team is required to make
an oral presentation in addition to writing a report. The report and presentation must be in
English. It should include the following information as it relates to theories, principles, and
empirical findings from consumer behavior (see below).
Reports must include the following sections:
Part 1 (10%)
Introduction: A brief description of the new product or service and why it is different from
offerings in the current Chilean market; include the brand name.
Market analysis: Based on segmentation variables (e.g., age, benefits sought, values, lifestyle,
etc.) your team should choose a market segment or segments it will target this new product or
service to. Describe your target market and explain why you chose it based on consumer behavior
theories and concepts. The group should interview several members of the segment (indicate number,
age, gender, etc.) to help identify and discuss the problems the product or service solves, consumer
motivation to buy the product, needs met, roles of the self-concept, values, perceived risk,
involvement, level of knowledge members of the segment have about the product/service) (including
familiarity, whether they search for information for the type of product/service (type of information,
where, source, etc.), etc.
In addition, to help with Part 2 through the consumer interviews the group should also assess what
product/service attributes are important, awareness of competitor products and brands (who are the
main competitors), how consumers evaluate and choose alternatives, etc.
Part 2 (15%)
Product description: Explain why the new product or service fits with your chosen market.
Describe and justify in detail the product concept, brand name, product/service attributes,
packaging, benefits, uses, varieties, etc. Make sure to relate use the interviews of consumers to
support your choices.
Competition analysis: Brief analysis of the main competitors (2-3), their strengths and
weaknesses.
Positioning: Choose and explain the positioning of the product.
Price and Distribution Strategies: Include a brief description and explanation of your pricing and
distribution strategies.
Advertising: Design an advertisement for the product or service (can be more than one). All
decisions the team makes regarding the design of the advertisement, including the objective of the
advertisement, the type of advertisement,advertisement elements (e.g., text, font, background,
spokesperson, colors, position of all advertisement elements, etc.) should be guided by theories and
principles from consumer behavior (e.g., segmentation, motivation, involvement, consumer
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perception, knowledge, comprehension, persuasion, attitudes, values, decision making, etc.). Make
sure to explain all decisions thoroughly relating them to consumer behavior concepts and theories as
well as the consumer interviews.
In addition, discuss briefly any other promotional strategies you believe are important.
All advertisements must be included in the report. All material used from secondary sources
must be properly referenced in the text and a bibliography must be included at the end of the
paper. Please include a title page and number pages.
Evaluation Team Projects
Report will be evaluated in terms of the depth, logic, creativity, and thoroughness, of the analysis
and application of consumer behavior theories and concepts. The report as well as the presentation
will also be evaluated on their clarity and organization.
Finally, due dates for the team project will also be strictly enforced. Assignments must be
turned in on the date specified. Late team project assignments will be downgraded, one
numerical grade for every day they are late (e.g., if the paper received an evaluation of 6 and
it is one day late the grade will be reduced to a 5). NO EXCEPTIONS

Suggestions for Team Projects and Presentations

1. In the early stages of the projects be sure that the roles of team members are clearly specified and
that the distribution of workloads is equitable. Determine a strategy for dealing with conflicts.
2. In preparing the reports, be sure to use headings and subheadings to give them a logical
organization.
3. Make sure that statements of fact in the text and tables are supported by footnotes or endnotes
showing the source (even if it is an interview with someone).
4. Refer to figures and tables in the text by number (e.g. as Table 1 shows ..., or (see Figure 1)). Do
not include tables or figures if you do not reference them in the text.
5. In the oral presentation, use audiovisual aids. Practice so that individual contributions merge
nicely and that the entire presentation does not exceed the allotted time. It is not required that
every team member present. Make sure that any overhead or slide used is simple and easy to read.
Final Exam
A final exam will be given during the exam week. It will cover both class presentations and readings.
Policy on Cheating
Any form of copying on exams, controls, case analyses, homeworks, reports, projects or any
other types of work will result in automatic failure (1.0) in a course. For works that are to be
completed individually, collaboration with other students or outside persons will also result in
failure (1.0) of a course. Finally, for courses that require attendance, anyone whose name
appears on the attendance form but who was not actually present during that class period will
also fail the course (1.0).

Course Overview
Class

Topics

March 10

Understanding the Importance

Of Customers and Consumer Behavior

March 17

The Consumption Process: Stage 1

Problem Recognition The
Role of Consumer Motivation,
Involvement, Self-Concept

Read Articles: 1-7 (see list below)

Read Solomon: Chapters 5 & 9

Stage 1: Problem Recognition (cont.)

Consumer Needs, Values,
and Perceived Risk

Read Solomon: Chapters 13-16

Problem Recognition: Identifying

Consumer Needs and Motivations

*Written Case Analysis 1:

Case to be determined
Read Articles: 8-16
Read Solomon: Chapter 6

*March 24

Assignments

Stage 2: Information Search

Exposure, Attention, and Recall
March 31

Information Search: Knowledge

Categorization, and Comprehension

Read Articles: 17-18

Evaluation of Alternatives
Attitudes, Beliefs, Intentions
*April 7

Evaluation of Alternatives (cont.)

April 14

No Class

*Written Case Analysis 2:

Case to be determined
Read Case: Procter and Gamble
Read Articles: 19-21
Read Solomon: Chapter 7

Class

Topics

*April 21
Due

Stages 3 & 4: continued

Assignments
*Part I of Team Project
Read Article: 22-23
Read Solomon: Chapter 8

April 28

Stage 5: Purchase

Read Articles: 24-26

Read Solomon: Chapter 10

*May 5

Stage 6: Post Purchase

*Written Case Analysis 3

Case to be determined
Read Articles: 27-35

May 12

Stage 6: Post Purchase (cont.)

Read Articles: 36
Ethical Issues:
Consumer Information Privacy
Advertising, Product Labeling, etc.

*May 19

*May 26

Team Project Presentations

*Team Project Written

Report Due in Class

*Final Exam

Reading List
Date

Articles

March 17
1.

Benson P. Shapiro (1988), What the Hell is Market Oriented, Harvard Business
Review.

2.

Grahame Dowling (2002), Customer Relationship Management, California

Management Review

3.

Gouillart, Francis J. and Frederick D. Sturdivant (1993), Spend a Day in the Life of Your
Customers, Harvard Business Review.

4.

Oran Harari (1997), Wrap Your Organization Around Each Customer, Management
Review.

5.

Weber, Alan M. and Heath Row (1997), How Can You Help Them, Fast Company.

6.

Fournier, Susan, Susan Dobscha, and David Glen Mick (2001), Preventing the Premature
Death of Relationship Marketing, Harvard Business Review

7.

MacMillan, Ian C. and Rita Gunther McGrath (1997), Discovering New Points of
Differentiation, Harvard Business Review.
Read Solomon: Chapters 5, 9, 13-16

*March 24
8.

MacMillan, Ian C. and Rita Gunther McGrath (1996), Discover Your Products Hidden
Potential, Harvard Business Review.

9.

Keki R. Bhote (1997), What Do Customers Want, Anyway? Management Review.

10.

Reynolds, Thomas J. and Jonathan Gutman (1988), Laddering Theory,Method, Analysis,

and Interpretation, Journal of Advertising Research.

11.

David B. Wolfe (1998), What Your Customers Cant Say, American Demographics.

12.

Jerry W. Thomas (1998), Finding Unspoken Reasons for Consumers Choices,

Marketing News.

13.

Daniel H. Pink (1998), Metaphor Marketing, Fast Company.

14.

Robert J. Dolan (2001), Analyzing Consumer Preferences, Harvard Business School.

15.

*Marshall Rice (1998), Conjoint Analysis,

www.yorka.ca/faculty/academic/mrice/index/docs/conjoint.htm

16.

Joseph Curry (1996), Understanding Conjoint Analysis in 15 Minutes, Quirks

Marketing Research Review.
Read and Analyze Case 1
Read Solomon: Chapter 6

March 31
17.

Shapiro, Stewart, Deborah J. MacInnis, and Susan E. Heckler (1997), The Effects of
Incidental Ad Exposure on the Formation of Consideration Sets, Journal of Consumer
Research.

18.

Hoyer, Wayne D. and Steven P. Brown (1990), Effects of Brand Awareness on Choice for
a Common, Repeat-Purchase Product, Journal of Consumer Research.

*April 7
19.

Case: Procter & Gamble The Sign and the Symbol Read Only for Class
Discussion

20.

MacInnis, Deborah J., Christine Moorman, and Bernard J. Jaworski (1991), Enhancing
and Measuring Consumers, Motivation, Opportunity and Ability to Process Brand
Information From Ads, Journal of Marketing.

21.

Robert J. Dolan (2001), Analyzing Consumer Perceptions, Harvard Business School

*Read and Analyze Case 2
Read Solomon: Chapter 7

April 21
22.

Raghubir, Priya and Kim Corfman (1999), When Do Price Promotions Affect Pretrial
Brand Evaluations? Journal of Marketing Research.

23.

C. Whan Park (1982), Joint Decisions in Home Purchasing: A Muddling Through

Process, Journal of Consumer Research.
Read Solomon: Chapter 8

April 28
24.

William M. Bulkeley (1998), Rebates Secret Appeal to Manufacturers: Few Consumers

Actually Redeem Them?

25.

Morwitz, Vicki G., Eric A. Greenleaf, and Eric J. Johnson (1998), Divide and Prosper:
Consumers Reactions to Partitioned Prices, Journal of Marketing Research.

26.

Wansink, Brian and Michael L. Ray (1996), Advertising Strategies to Increase Usage
Frequencies, Journal of Marketing.
Read Solomon: Chapter 10

May 5
27.

OBrien, Louise and Charles Jones (1995), Do Rewards Really Create Loyalty?
Harvard Business Review.

28.

Ted J. Rakstis (1996), How to Keep Customers, Kiwanis.

29.

Michael Barrier (1997), Ties That Bind, Nations Business.

30.

Pine, Joseph B II, Don Peppers, and Martha Rogers (1995), Do You Want to Keep Your
Customers Forever ? Harvard Business Review.

31.

Grahame R Dowling and Mark Uncles (1997), Do customer loyalty programs really
work?, Sloan Management Review

32.

Shelly Reese (1996), Happiness Isnt Everything, Marketing Tools.

33.

Frederick F. Reichheld (1996), Learning From Customer Defections, Harvard Business

Review.

34.

Elie Ofek (2002), Customer Profitability and Lifetime Value, Harvard Business School.

35.

Fred Reichheld (2006), The microeconomics of customer relationships, Sloan

Management Review
Read and Analyze Case 3

May 12
36.

David Court, Dave Elzinga, Susan Mulder, and Ole Jrgen Vetvik, The consumer
decision journey, McKinsey Quarterly
Read Solomon: Chapters 11 &12

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