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TECHNIKON MANGOSUTHU
DEPARTMENT OF MARKETING

STUDY GUIDE

CONSUMER BEHAVIOUR 1

SUBJECT CODE : COBE010


SAPSE CODE : 200701312

prepared by: Mr. S.Brewer


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CONSUMER BEHAVIOUR 1 ( 200701312) (COBE010)

1. INTRODUCTION

This is a study guide for consumer behaviour. This is a second year course in the Marketing Diploma
which focuses on the analysis of consumer’s needs and how marketers should try to satisfy them.

2. STATEMENT OF PURPOSE

Consumer Behaviour introduces the student to the discipline of consumer behaviour by defining and
describing its scope and importance in our daily activities. It is also in this course that the marketing
function is brought into the context of our behaviour and experiences as consumers.

3. AIM

To expose the students to the basic understanding of buying behaviour. This is done in conjunction with
the exposure to the foundations of the marketing concept.

4. EVALUATION

4.1 TESTS

There will be 3 (three) tests during the annual programme which will be utilised to determine the course
mark of 40%. The 1st test contributes 20% to the course mark and covers all the material till the test
in late March. The second (2nd) test contributes 30% to the course mark and covers all the material till
the test which includes material covered in the first test. The 2nd test is usually written during June. The
final (3rd) test contributes 50% to the course mark and includes all material covered until the test
which includes material covered from the 1st and 2nd tests. The 3rd test is usually written during
September.

NOTES:
A student must obtain a minimum coursemark of 40% to be permitted to write the final examination.

4.2 EXAMINATION

There will be 1 (one) three - hour examination paper. The final pass mark is 50% which is
determined as follows:
- 60% of the final examination mark
- 40% of the course mark

5. ABSENCE FROM TEST/EXAMINATIONS

A doctor’s certificate must be produced to motivate a student’s non-participation in a test or


examination. Any other reason for not writing a test or examination would only be entertained under
exceptional circumstances.
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6. CONTENTS
1. Introduction to the Study of Consumer Behaviour
2. The Consumer as an Individual
3. Consumer Decision Processes
4. Environmental Influences on Consumer Behaviour

6.1 INTRODUCTION TO THE STUDY OF CONSUMER BEHAVIOUR Ch 1 - 3

CHAPTER WEEKS
INTRODUCTION 1. 1
- What is Consumer Behaviour ?
- Why we study Consumer Behaviour ?
- Applying Consumer Behaviour Knowledge
- Ethics in Marketing
- Ethics and the Corporate Environment
- Types of Unethical Marketing Behaviour

2. 1
CONSUMER RESEARCH
- History of Consumer Research
- The Consumer Research Process
- Developing Research Objectives
- Collecting Secondary Data
- Designing Primary Research
- Data Collection
- Analysis
- Report Preparation
- Conducting a Research Study

- MARKETING SEGMENTATION 3. 3
-` Market Aggregation versus Market Segmentation
` - Geographic Segmentation & Geodemographic Clustering of Markets
- Demographic Segmentation
- Age
- Sex
- Marital Status/ Family Life Cycle
- Income
- Education
- Occupation
- Psychographic Segmentation
- Sociocultural Segmentation/Social Class/Cross-culture
- Usage Segmentation
- Volume Segmentation
- Brand-User Segmentation
- Loyalty Segmentation & Situation Segmentation
- Benefit Segmentation
- Hybrid Segmentation Approaches
- Criteria for Effective Targeting of Market Segments
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6.2 THE CONSUMER AS AN INDIVIDUAL CH 4 - 10

4 1

- CONSUMER NEEDS & MOTIVATION


- What is Motivation
- Needs & Goals
- Positive & Negative Motivation
- Rational versus Emotional Motives
- The Dynamic Nature of Motivation
- Frustration
- Arousal of Motives
- Types and Systems of Needs
- Maslow’s Hierarchy of Needs
- The Measurement of Motives
- Motivational Research

5 1

- PERSONALITY AND CONSUMER BEHAVIOUR


- What is Personality ?
- The Nature of Personality
- Theories of Personality
- Freudian Theory- Id, Superego, & Ego
- Stages of Personality Development/ Brand personality
- Jungian Personality Types
- Neo-Freudian Personality Theory
- Trait Theory
- Consumer Susceptibility to Interpersonal Influence
- From Consumer Materialism to Compulsive Consumption
- Consumer Ethnocentrism: Responses to Foreign-Made Products
- Self and Self-Image
- One or Multiple Selves
- The Makeup of the Self-Image
- The Extended Self /Altering the Self/
- Vanity & Consumer Behaviour
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- CONSUMER PERCEPTION 6 1
- What is Perception ?
- Perception
- Sensation
- Awareness Threshholds
- Absolute Threshold
- Terminal Threshold
- Differential Thresholds and the j.n.d
- Subliminal Perception
- Dynamics of Perception
- Perceptual Selection
- Nature of the Stimulus eg White space
- Important Selective Perception Concepts
- Perceptual Organization
- Perceptual Interpretation
- Consumer Imagery
- Product & Service Images
- Perceived Price
- Perceived Quality
- Retail Store Image
- Manufacturer’s Image
- Brand Image
- Perceived Risk
- Types of Perceived Risk
- How Consumers Handle Risk

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- LEARNING AND CONSUMER INVOLVEMENT
- What is Learning?
- Principle Elements of Learning/ Motives/Cues/Response/Reinforcement
- Behavioural Learning Theories/Applying concepts to Consumer
Behaviour
- Cognitive Learning Theory/Memory/
Characteristics of Memory Systems
- Sensory memory
- Short-Term Memory
- Long-Term Memory
- Chunking
- Retrieval of Information
- Involvement Theory
- High- and Low-Involvement Media
- Involvement Theory and Consumer relevance
- Brand Loyalty
- Developing Brand Loyalty
- Brand Equity

- ATTITUDES 8
1
- What are Attitudes ? Characteristics
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- Structural Models of Attitudes

9 1
- CHANGING ATTITUDES
- Attitude Formation
- How Attitudes are Learned
- Sources of Influence on Attitude Formation
- Attitude Change /Strategies
- Changing the Basic Motivational Function
- Behaviour can Precede or Follow Attitude Formation
- Cognitive Dissonance..Festinger Model
- Attribution Theory

10 1
- COMMUNICATION & PERSUASION
- Components of Communication
- The Communication Process
- The Message Initiator (The Source)
- The Target Audience (The Receivers)
- Feedback
- Designing Persuasive Communications - Strategy
- The World Wide Web
- Message Strategies
- Comparative Advertising
- Fear Appeals
- Humuor in Advertising
- Sex in Advertising
- Crisis Communication Strategies

6.3 PART 3 CONSUMERS IN THEIR SOCIAL & CULTURAL SETTINGS CH 11 - 16

11 1
- GROUP DYNAMICS & CONSUMER REFERENCE GROUPS
- What is a Group ?
- Classification of Groups /
- Types of Groups
- Consumer Relevant Groups
- Reference Groups
- Factors that Affect Reference Group Influence
- Applications of the Reference Group Concept
- Celebrities
- The Expert
- The “Common Man”
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- Other Appeals & benefits of the Reference Group Appeal


12 1
- THE FAMILY
- Functions of the Family
- Family Decision Making
- Family Roles
- Dynamic of Husband-Wife Decision Making
- Children
- The Family Life Cycle

13 1
- SOCIAL CLASS & CONSUMER BEHAVIOUR
- What is Social Class - division into strata of society
- The Nature of Social Class
- Social Classes Exhibit Status
- Social Classes are Multidimensional `
(Occupation/Education/Income)
- Social Classes are Hierarchical
( Coleman’s 7 levels of Social Classes)
- Social Classes Restrict Behaviour
- Social Classes are Homogeneous
- Social Classes are Dynamic
(Upward or Downward Mobility)
- Social Class Measurement & Categorisation
- The Subjective Method
- The Reputational Method
- The Objective Method
- Lifestyle Profiles of The Social Classes
- Geodemographic Clustering
- The Affluent &Nonaffluent Consumer
- Selected Consumer Behaviour Applications of Social Class

14 2
- CULTURE
- What is Culture/Culture Defined
- Characteristics of Culture
- Culture Satisfies Needs
- Culture is Learned
- Culture is Shared
- Culture is Dynamic
- The Measurement of Culture
- LOV/VALS2/Rokeach
- American Core values
- Relevance to Consumer behaviour
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15 2
- SUBCULTURE
- The Nature of Subculture
- South African Subcultures
- Religious ( eg Christian/Shembe/Jewish/Hindu/Moslem etc)
- Ethnic White/Black/Asiatic/Coloured
- Modes of Dress/ Eating/ Dance/ various traditions & taboos
- Demographic Characteristics
- Psychographic Characteristics
- The Youth Market
- The Mature & Elderly Consumer
- The Hispanic Subculture
- The African-American Consumer
- The Asian-American Consumer
- Religious Subcultures in the USA
- Age Subcultures Generation X Market
- The Baby Boomer Market
- Sex as a Subculture - The working woman

CROSS-CULTURAL CONSUMER BEHAVIOUR. 16 1


AN INTERNATIONAL PERSPECTIVE
- The Imperative to be Multinational
- Exposure to Other Cultures
- Cross-Cultural Consumer Behaviour
- Acculturation
- Alternative Marketing Strategies: Global versus Local
- “World Brand”
- Cross Cultural Psychographic Segmentation
- Marketing Mistakes :A Failure to Understand Differences

6.4 THE CONSUMER’S DECISION-MAKING PROCESS CH 17 - 19

-PERSONAL INFLUENCE AND THE OPINION LEADERSHIP PROCESS 17 1


- What is Opinion Leadership
- Dynamics of Opinion Leadership
- Measurement of Opinion Leadership
- Self-Designating Method
- Sociometric Method
- Key Informant Method
- Objective Method
- A Profile of the Opinion Leader
- Knowledge & Interest
- Consumer Innovators
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- Personal Characteristics
- Media Habits
- Frequency & Overlap of Opinion Leadership
- The “Market Maven”
- The Situational Environment of Opinion Leadership
- The Interpersonal Flow of Communication
- 2-step flow of communication theory
- Multistep flow of communication theory
- Opinion Leadership & the Firm’s Promotional Strategy
- Programs Designed to Stimulate Opinion Leadership
- Advertisments Simulating Opinion Leadership
- Word-of Mouth
- Creation of Opinion Leaders

18 1
- DIFFUSION OF INNOVATIONS
- The Diffusion Process
- The Innovation
- The Channels of Communication
- The Social System
- Time
- Adopter Categories
- Rate of Adoption
- The Adoption Process
- Stages in the Adoption Process
- The Innovation Decision Process
- The Adoption Process & Information Sources
- A Profile of the Consumer Innovator
- Defining the Consumer Innovator
- The Innovator is an Opinion Leader
- Personality Traits
- Purchase & Consumption Characteristics
- Media Habits
- Social Characteristics
- Demographic Characteristics
- Are the Generalized Consumer Innovators?

19 1
- CONSUMER DECISION MAKING:CHOOSING & CONSUMING
- What is a Decision?
- Levels of Consumer Decision Making
- Extensive Problem Solving
- Limited Problem Solving
- Routinized Response Behaviour
- Models of Consumers: 4 Views of Consumer Decision Making
- An Economic View
- A Passive View
- A Cognitive View
- An Emotional View
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- A model of consumer decision maaking


- Consumer Gifting Behaviour
- Beyond the Decision: Consuming & Possessing
- Products have special Meaning & Memories
- Relationship Marketing

6.5 PART 5 CONSUMER BEHAVIOUR & SOCIETY

- APPLICATIONS TO PROFIT & NON-PROFIT MARKETING


20 1
- Health Care Marketing
- Market Segmentation
- Health Care Advertising
- Political Advertising
- Voter Research
- Political Imagery
- Political Advertising
- The Marketing of Social Causes
- Social Marketing & Corporate Philanthropy
- Cause-related Marketing & Corporate Promotion
- Environmental Marketing: A Cause-Related Growth Industry
- Consumers’ Environmental Concerns & Behaviour

21 1
- PUBLIC POLICY & CONSUMER PROTECTION
- The Federal Communications Commission
- Deceptive Advertising & Consumer Research
- Corrective Advertising & Consumer Research
- Packaging -to-Price Deceptions
- Consumer Education
- Nutritional Labeling
- Consumer Behaviour Research Priorities

REFERENCE:

Prescribed Reading:
1. “Consumer Behaviour” - Schiffman & Kanuk - 6th Edition - Prentiss Hall

Additional Reading

1. “Consumer Behaviour - Implications for Marketing Strategy” - Hawkey Best Coney 6th
Edition - Irwin
2. “Consumer Behaviour “ Wayne Hoyer Deborah J MacInnis

3. “Consumer Behavior and Marketing Strategy” - J. Paul Peter Jerry C. Olson


4th Edition Irwin
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4. “Consumer Behavior and Marketing Action” - Henry Assael 5th Edition ITP

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