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TECHNIKON MANGOSUTHU
DEPARTMENT OF MARKETING
STUDY GUIDE
CONSUMER BEHAVIOUR 1
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
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
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
4
4 1
5 1
- 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
7 2
- 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
6
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
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”
7
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
8
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
- 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
10
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
4. “Consumer Behavior and Marketing Action” - Henry Assael 5th Edition ITP