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O LYMPIA B USINESS S CHOOL

School of Business and Marketing
ADVANCED DIPLOMA IN MARKETING

F ILO -T EXT
Consumer Behavior
October, 1998

R AFFLES E DUCATION G ROUP
Kuala Lumpur w Petaling Jaya w Penang w Singapore w Jakarta w Bangkok w Beijing w London w New-York

Olympia Business School

Consumer Behavior

Table of Contents
INTRODUCTION.......................................................................................................................................... 3 HOW TO USE THE FILO-TEXT? ............................................................................................................... 4 ASSESSMENT ............................................................................................................................................... 5 INDIVIDUAL ASSIGNMENT ............................................................................................................................ 5 MID-TERM ASSESSMENT .............................................................................................................................. 5 GROUP PROJECT ........................................................................................................................................... 5 FINAL E XAMINATION.................................................................................................................................... 6 ATTENDANCE.............................................................................................................................................. 6 FEES............................................................................................................................................................... 7 CONTACT-TIME.......................................................................................................................................... 7 FULL-TIME ................................................................................................................................................... 7 PART-TIME ................................................................................................................................................... 7 THE ACADEMIC PLANNER....................................................................................................................... 8 WEEK 1 ......................................................................................................................................................... 9 WEEK 2 ....................................................................................................................................................... 11 WEEK 3 ....................................................................................................................................................... 13 WEEK 4 ....................................................................................................................................................... 15 WEEK 5 ....................................................................................................................................................... 17 WEEK 6 ....................................................................................................................................................... 19 WEEK 7 ....................................................................................................................................................... 21 WEEK 8 ....................................................................................................................................................... 23 WEEK 9 ....................................................................................................................................................... 24 WEEK 10 ..................................................................................................................................................... 26 WEEK 11 ..................................................................................................................................................... 28 WEEK 12 ..................................................................................................................................................... 31

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Olympia Business School

Consumer Behavior

INTRODUCTION

The study of Consumer Behavior is the study of how individuals make decisions to spend their available resources (time, money, and effort) on consumption-related items. It includes the study of what they buy, why they but it, when they buy it, where they buy it, how often they buy it, and how often they use it. Take the simple product toothpaste. Consumer researchers want to know what types of toothpaste consumers buy (gel, regular, striped, in a tube, with a pump); what brand (national brand, private brand, generic brand); why they buy it (to prevent cavities, to remove stains, to brighten or whiten teeth, to use as a mouthwash, to attract romance); where they buy it (supermarket, drugstore, convenience store); how often they use it (when they wake up, after each meal, when they go to bed, or any combination thereof); and how often they buy it (weekly, biweekly, monthly). Although this subject on how and why consumers make decisions to buy goods and services, consumer behavior research goes far beyond these facets of consumer behavior and encompasses all of the behaviors that consumers display in searching for, purchasing using, evaluating, and disposing of products and services that they key expect will satisfy their needs. For example, a couple may experience dissatisfaction with their choice of an automobile, perhaps because of continuing service problems. They may communicate their dissatisfaction to friends and, in turn, influence their friends’ future automobile purchases. They may vow never to buy the same make or model again, limiting their own future selection decisions. Each of these possible consequences of consumer postpurchase dissatisfaction has significant ramifications for automobile marketers, who have to build postpurchase strategies into their promotional campaigns.

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Olympia Business School Consumer Behavior HOW TO USE THE FILO-TEXT? The Filo-text is a tool providing you guidance for this subject. It provides you a general information on the following: • • • • • Assessment Attendance Fees Contact time The academic planner For every week. between the lecture and the tutorial and after the tutorial Olympia Business School Page 4 . Additional reference material for your own research The objective(s) of the tutorial Questions to prepare for discussion during the tutorial Question for your personal research Use the Filo-Text to prepare yourself prior to the lecture. it then provides you with the following information: • • • • • • • • The topic The objective(s) of the lecture The textbook and the chapter(s) and page(s) related to the given topic The other reference books available to you in the library.

Olympia Business School Page 5 . The team will be comprise 5 students. GROUP PROJECT A Group Project will be assigned to the students on the week 3. which has be handed up on week 6. Individual Assignment Mid-Term Examination Group Project Final Examination Total 15% 15% 20% 50% 100% INDIVIDUAL ASSIGNMENT You will receive an individual assignment on week 2. The report of the group project will have to be submitted to the subject lecturer by no later than week 10 and will be presented on week 11. Absence without a valid reason will result in an automatic failure of the examination. No late submission will be entertained and would automatically result in no marks awarded.Olympia Business School Consumer Behavior ASSESSMENT Student assessment will be evaluated based on the following breakdown: 1. 2. MID-TERM ASSESSMENT A mid-term assessment will be held on week 8 and will be based on topics covered up to week 6. Failure to submit this assignment will result in an automatic failure in this assignment. 3. 4. The marked assignment will be returned on week 8. The assignment will be based on topics covered between weeks 1 and 4 and includes drilling and vocabulary exercises.

The format of the examination is as follows: • • Section A – Short Essay Questions (5) Answer All Section B – Essay Questions.Olympia Business School Consumer Behavior FINAL EXAMINATION The final examination will be conducted on week 13 or week 14 and the paper is 3 hours. The lecturer is entitled to refuse entry into the classroom to any student who is late. Any registrations made on week 10 and 11 will be subject to penalty charges. Olympia Business School Page 6 . Answer 4 out of 6 5*4 = 20 Points 4*20 = 80 Points ___________________________________________________________________________ • Total 100 Points A TTENDANCE Attendance for both the lecture and the tutorial is compulsory and absenteeism should be covered with medical certificate or written letter by the parent/guardian. Failure to provide such a document for absenteeism will be viewed as truancy by the student. Punctuality is equally important. No late registrations will be entertained after week 11. A minimum attendance of 80% is essential to justify attendance for any examination. Registration for the examination is open from week 6 and closes on week 9. Make sure you register on time.

C ONTACT -T IME FULL-TIME The duration of each class is 12 weeks and contact time is 1½ hours of lecture with 1½ hours of tutorials per week.Olympia Business School Consumer Behavior F EES The registration fee is to be paid upon enrolment. PART-TIME The duration of each class is 12 weeks and contact time is 1½ hours of lectures per week. Olympia Business School Page 7 . Failure to meet the (Deputy) Principal can result in the student being barred from attending class. Payment in full must be settled before the first lecture while payment by the semester is payable on the first day of each semester. by per semester or by instalments. The course fee may be settled either in full. For successful results an additional 4 hours is recommended for personal studies. Any difficulty experienced in the settlement of the fees must be communicated to the (Deputy) Principal. either individually or in a group. Payment by monthly instalment is due on the first day of class of each month.

Olympia Business School Consumer Behavior T HE A CADEMIC P LANNER Week 1 2 3 4 5 6 7 8 9 10 11 12 Date Topic The Diversity of Consumer Behavior Market Segmentation Consumer Needs and Motivation & Personality and Consumer Behavior Consumer Perception & Learning and Consumer Involvement The Nature of Consumer Attitudes & Communication and Persuasion Group Dynamics and Consumer Reference Groups and the Family Social Class and Consumer Behavior Mid -Term Exam The Influence the Culture and Cross-Culture on Consumer Behavior Personal Influence and the Opinion Leadership Process The Diffusion of Innovation Consumer Decision Making – Choosing and Consuming Final Examination Olympia Business School Page 8 .

Schiffman & Leslie L.Olympia Business School Consumer Behavior WEEK 1 Lecture Topic: The Diversity of Consumer Behavior Lecture Objective: *The Study of Consumer Behavior *Why we study Consumer Behavior *Why the field of Consumer Behavior developed *Ethics in Marketing *The Consumer Movement *Ethics and Corporate Environment Textbook: Chapter(s) Consumer Behavior – Leon G.20 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 9 . Sixth Edition 1 Pages 1 . Kanuk.

will this product. 5. (b) new product introduction. Discuss the difference involved in marketing fax machines to personal consumers and to organizational consumers. 5. and cultural factors that may influence consumers’ decisions regarding the purchase of this product. 3. Give an example of what you believe to be an unethical marketing practice. and (d) societal issues. Describe the interrelationship between the consumer behavior discipline and the marketing concept. How can this practice be stopped through government regulation? Can the industry stop this practice? If so. Explain the difference(s) between personal and organizational consumers. sociological. how? 2. as long as it was black. (c) product life-cycle strategy. Select a product you bought that has features you never used. 3. How can the study of consumer behavior assist marketers in segmenting markets and positioning products? You are the brand manager of new line of biodegradable diapers that includes separate versions for boys and girls. succeed of fail in the marketplace? Explain your answer. Would you say that the development of this product or services was guided by the marketing concept? If so. Could the president of Ford Motor Company make the same statement today? In your answer.Olympia Business School Consumer Behavior Areas For Applications During Tutorials: 1. Which one of the business orientations discussed in the text may have guided that development of this product? Find an advertisement for a new product. brand. 2. QUESTIONS AVAILABLE FOR SELF ASSESSMENT 1. discuss the changes in marketing philosophy that have occurred since the 1920s. The upper-lower and lower-lower social classes together constitute more than half the United States population. Is it ethical for marketers and the mass media to promote products that most members of the lower classes cannot afford? Explain your answer. Identify the psychological. or service that you bought or used because it was particularly suitable for your needs. 4. Describe how an understanding of consumer behavior is useful to you in term of: (a) market segmentation strategy. In your opinion. In the 1920s. 4. Henry Ford remarked that his customers could have any colour car they wanted. Olympia Business School Page 10 . how? Select a product.

77 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 11 . Sixth Edition 3 Pages 48 .Olympia Business School Consumer Behavior WEEK 2 Lecture Topic: Market Segmentation Lecture Objectives: *What is market segmentation? *Who uses market segmentation? *How market segmentation operates? *Bases for segmentation *Criteria for effective targeting of market segmentation *Implementing segmentation strategies Textbook: Chapter(s) Consumer Behavior – Leon G. Schiffman & Leslie L. Kanuk.

or (c) use situation? Club Med is a prominent company in the vacation and travel industry . Can demographics and psychographics be used together to segment markets? Illustrate your answer with a specific example. and (e) nonfat frozen yogurt. QUESTIONS AVAILABLE FOR SELF ASSESSMENT 1. Explain your choices. (b) soups. (d) portable telephones. 4. into which VALS 2 segment are you likely to belong five years from now? Explain. 2.Olympia Business School Consumer Behavior Area For Applications During Tutorials 1. What is market segmentation? How is the practice of market segmentation related to marketing concept? Discuss the advantages and disadvantages of using demographics as a basis for segmentation. Are market segmentation. and positioning interrelated? Illustrate how these three concepts can be used to develop a marketing strategy for a product of your choice. identify the segmentation based that you consider best for targeting consumers: (a) coffee. Do you agree or disagree with this view? For each of the following products. Does your lifestyle differ significantly from your parents lifestyle? If so. Olympia Business School Page 12 . (c) home exercise equipment. Under which circumstances and for what types of products should a marketer segment the market on the basis of: (a) awareness status. targeting. (b) brand loyalty. how are the two lifestyles different? What factors cause these differences? Do you anticipate any major changes in your lifestyle in the next 5 years? If so. Apply the criteria for effective segmentation to marketing product of your choice to college students. 3. Some marketers consider benefit segmentation as the segmentation approach most consistent with the marketing concept. 2. 5. 4.Describe how the company can use demographics and psychographics to identify TV shows and magazines in which to place its advertisements. 5. 3.

Olympia Business School Consumer Behavior WEEK 3 Lecture Topic: Consumer Needs and Motivation & Personality And Consumer Behaviour Lecture Objective: *What is motivation? *The dynamic nature of motivation *Types and systems of needs *What is personality? *Personality and understanding consumer diversity Textbook: Chapter(s) Consumer Behaviour – Leon G. Kanuk. Schiffman & Leslie L. Sixth Edition 4-5 Pages 83 -141 Reference Books: Consumer Behaviour by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 13 .

what factors cause their arousal? Give examples of ads for personal care products that are designed to arouse latent consumer needs. (a) Freudian theory. Consumers have both innate and acquired needs. Is their likely to be a difference in personality traits between individuals who readily purchase foreign-made products and those who prefer to American-made products? How can marketers use the consumer ethnocentrism scale to segment consumers? 4. needs preexist marketers.” Discuss this statement. 5. Describe personality trait theory. A marketer of health foods is attempting to segment his or her market on the basis of selfimage. contrast the major characteristics of the following personality theories. (b) Jungian theory. 5. (b) Can marketing efforts change consumers’ needs? Why or why not? 2. Gibe examples of each kind of need and show how the same purchase can save to fulfill either or both kinds of needs. (a) what is motivational research? (b) what are its strengths and weaknesses? (c) How did Dr. illustrate how each theory is applied to the understanding of consumer behavior. Why are consumers’ needs and goals constantly changing? What factors influence the formation of new goals? 3. How can a marketer of cameras use the research findings that the target market consists primarily of inner-directed or other-directed consumers? Of consumers who are high (or low) on innovativeness 3. (c) Neo-Freudian theory. Olympia Business School Page 14 . 4. (a)“Marketers don’t create needs. Give five examples of how personality traits can be used in consumer research 2. Most human needs are dormant much of the time. Describe the four types of consumer self-image and discuss which one(s) would be effective for the stated people. Ernest Dichter apply Freudian theory to consumer behavior? (d) How was motivational research used in the 1950s? (e) how do marketers use the technique today? Questions available for self-assessment 1. In your answer. and (d) trait theory.Olympia Business School Consumer Behavior Areas for application during tutorials 1.

Sixth Edition 7 Pages 194-228 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 15 .Leon g. Kanuk.Olympia Business School Consumer Behavior WEEK 4 Lecture Topic: Consumer perception & Learning and Consumer Involvement Lecture Objective: What is perception? The dynamics of perception Consumer imagery What is learning? Behavioural learning theories Cognitive learning theory Brand loyalty Textbook: Chapter(s) Consumer Behavior. Schiffman & Leslie L.

(b) increasing competition. (a) How can a marketer distinguish between real and spurious brand loyal buyers? Is it important for marketers to measure and understand the differences between the two group? Why or why not? (b) Describe the marketing errors in advertising. 5. (a) A cereal marketer is trying to use the concept of high. working memory. How does sensory adaptation affect advertising effectiveness? How can marketers overcome sensory adaptations? Describe how manufactures of chocolate bars can apply their knowledge of differential threshold to packages and prices during periods of: (a) rising ingredient costs. How should the marketer measure consumers’ level of involvement with cereal? (b) Can social judgement theory be used to market cereal more effectively? Explain your answer. How would you apply the knowledge of hemispheral lateralization to the design of TV commercials and print advertisements? 3. Questions available for self assessment 1. Olympia Business School Page 16 . How is perceptual mapping used in consumers research? Why are marketers sometimes forced to reception their products or services? Illustrate your answer with examples.and low. (a) Define the following memory structures: sensory store. 4. and in-store promotions that might occur of a marketer fails to distinguish between the two groups. Apply each of these concepts to the development of an advertising strategy. Does subliminal advertising work? Support your view. and (c) consumer nutrition concerns.involvement to target market segments. 2. Why is it more difficult for consumers to evaluate the quality of services than the quality of products? 3. (b) How does information overload affect the consumer’s ability to comprehend an ad and store it in his or her memory? 2. pricing. Discuss the differences between low-and involvement media. 5. (a) How can the principals of classical conditioning theory and neo-pavlovian theory be applied to the development of marketing strategies? (b) How is the classical conditioning concepts of repetition applied to advertising? 4.Olympia Business School Consumer Behavior Areas for application during tutorials 1. and longterm store.

Kanuk.Olympia Business School Consumer Behavior WEEK 5 Lecture Topic: Lecture Objective: • • • • • What are attitudes? Structural models of attitudes Components of communication The communication process Designing persuasive communication The Nature of Consumer Attitudes & Communication and Persuasion Textbook: Chapter (s) Consumer Behaviour – Leon G.Schiffman & Leslie L. Sixth Edition 8 & 10 Pages 234 – 255 280 – 313 Reference Books: Consumer Behaviour by Chirs Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 17 .

Should a marketer of luxury cars use the attitude-toward-object model. Discuss the reasons for the continued growth of direct marketing and the objectives of direct marketing. 2. a). Should marketers use more body copy that artwork in print ads? b). For what kinds of audiences would you considers using comparative advertising? Why? 5. What factors influence the perceived credibility of an informal communications source? List and discuss factors that determine the credibility of formal communications sources of product information. Explain how situational factors are likely to influence the degree of consistency between attitudes and behavior. What are the attributes on which you would like to evaluate your lecturer at the end of the semester? On which attributes would you evaluate this filotext? 5. Because attitudes are learned predispositions to respond. the attitudetoward-behavior model. How can a marketer overcome the communications barriers known as “noise”? 3. a). Multi attribute models examine attitudes in terms of selected product attributes. How can the marketer obtain and use each kind of feedback. b). List and discuss the effects of psychological barriers on the communications process. 2. What are the implication of the sleeper effect for selection of spokespersons and the scheduling of advertising messages? 4. Explain the differences between feedback from interpersonal communications and feedback from impersonal communications. Olympia Business School Page 18 . or the theory-of-reasoned-action model in assessing consumers’ attitudes toward the company’s cars? Explain your answer. why don’t marketers and consumer researches just measure purchase behaviour and forget attitudes? 3. Explain a person’s attitude toward visiting Disney World in terms of the tricomponent attitude model. Explain the difference(s) between direct mail and direct marketing.Olympia Business School Consumer Behavior Areas for application during tutorials 1. QUESTIONS AVAILABLE FOR SELF ASSESSMENT 1. 4.

Kanuk.Olympia Business School Consumer Behavior WEEK 6 Lecture Topic: Group Dynamic and consumer Reference Groups & The Family Lecture Objective: • • • • • • What is a group? Reference group Applications of the reference group Functions of the family Family decision making Family life cycle Textbook: Chapter(s) Consumer Behaviour – Leon G. Sixth Edition 11 & 12 Pages 320 – 342 346 . Schiffman & Leslie L.371 Reference Books: Consumer Behaaviour by Chirs Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 19 .

QUESTIONS AVAILABLE FOR SELF ASSESSMENT 1. (b). motor homes? Explain your answers.Olympia Business School Consumer Behavior Areas for application during tutorials 1. How would you use the assessments you listed above in advertising a new model TV set? 5. the stage of the decisionmaking process. What role do teenagers play in family decision making? c). telephone party line. compact disc players. 4. mutual funds. Which of the five stages of the traditional family life cycle constitute thee most lucrative segment(s) for the following products and services: (a). (d). Some consumer behavior researchers maintain that the family. Does the use of such celebrities in beer advertising constitute an unethical marketing practice? Discuss. In purchasing a new television set. What reference group factors are likely to influence a smoker’s decision as to whether or not to use a nicotine patch in the quest to quit smoking? 5. Describe the role of young children in the family consumption process. Many celebrities who are considered to be persuasive role models often appear in TV beer commercials. rather than the individual. Virtually all group develop norms and codes of behavior. a Club Med vacation. (b). 4. (c). In what ways have they influenced your consumption patterns? 2. how would you expect the following factors to influence the dynamics of husband-wife decision making: (a). (e). and (f). a). Are your fellow students a normative or comparative reference group for you? Explain. Domino’s pizza. What is the marketing significance of the increase in the number of latchkey kids and their distinctive lifestyle? Olympia Business School Page 20 . When is using an aspirational group likely to be a more effective advertising strategy than a contractual group? 3. How does the family influence the consumer socialization of children? What role does television advertising play in consumer socialization? 3. What are the advantages and disadvantages of using the family as the unit of analysis? 2. should be the unit of analysis in consumer behavior. and (c). The features of the product. the family’s role structure orientation. Identify five norms that guide the behavior of students and lecturers in your college. b). Describe one group that serves as an aspirational group for you and another that serves as an avoidance group.

Schiffman & Leslie L. Kanuk.Olympia Business School Consumer Behavior WEEK 7 Lecture Topic: Social Class and Consumer Behavior Lecture Objective: • • • • • What is social class? Measurement of social class Lifestyle profiles of social class Social class mobility Selected consumer behavior applications of social class Textbook: Chapter (s) Consumer Behavior – Leon G. Sixth Edition 13 Pages 376-402 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Resemary Philips & Craig Simmons Olympia Business School Page 21 .

4. which has a retail range starting at about $2000 for a stainlesssteel model to thousands of dollars for a solid-gold model. Consider the Rolex watch.. (b) vacations. one catering to upper-middle-class consumers and the other to lower-class consumer. (f) pocket-size cellular telephones. How do social-class differences influence each store’s: (a) product lines and styles. 5. You are the owner of two furniture stores. (b) opera subscriptions. Which is a more useful segmentation variable? Discuss. is the most appropriate segmentation base for: (a) expensive vacations. Which status-related variable. occupation. (c) the copy and communications style used in the ads. and (d) payment policies? 4. (b) advertising media selection.g. Classify each household into one of the social classes discussed in the text and analyze its lifestyle and consumption behavior. and (g) health clubs? 5. Under what circumstances would you expect income to be a better predictor of consumer behavior than a composite measure of social class (e. (c) People magazine subscriptions. Describe the correlation between social status (or prestige) and income. Marketing researchers generally use the objective method to measure social class. Select two households featured in two different TV series or sitcoms. education or income. (d) fat-free foods. How would you use the research evidence on affluent households to segment the market for: (a) home exercise equipment. Olympia Business School Page 22 .Olympia Business School Consumer Behavior Areas for applications during tutorials 1. Why is the objective method preferred by researches? 2. education and occupation)? When would you expect the composite social-class measure to be superior? 3. based on income. How can a marketer use knowledge of consumer behavior to develop financial services for affluent consumers? For “downscale” consumers? 3. and (c) banking services? 2. (e) personal computers. Prepare an Index of Stated Characteristics of your relatives and compute their social class. rather than the subjective or reputational method. How might the Rolex company use geodemographic clustering in its marketing efforts? Questions available for self assessment 1.

Olympia Business School Consumer Behavior WEEK 8 MID-TERM EXAM Olympia Business School Page 23 .

Kanuk. Sixth Edition 14 &16 Pages 406-436 472-493 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 24 .Olympia Business School Consumer Behavior WEEK 9 Lecture Topic: The Influence of Culture and Cross-culture on Consumer Behavior Lecture Objective: *What is culture? *Characteristics of culture *The measurement of culture *Cross-culture consumer analysis *Cross-culture psychographics segmentation Textbook: Chapter(s) Consumer Behavior – Leon G. Schiffman & Leslie L.

identify relevant cultural. Compact disc players Telephone answering machines Toothpaste Diet soft drinks Foreign travel Questions available for self assessment 1. Distinguish between beliefs. 5. The products and activities are: I. why are so many companies choosing to expand internationally? What are the advantage of expanding beyond the domestic market? 2. Illustrate how the clothing a person wears at different times or for different occasions is influenced by customs. b) Determine whether these values encourage or discourage use or ownership. in what direction. How can an understanding of the three forms of cultural learning be used in developing an effective strategy to target the intended market? 3. What is cross-cultural consumer analysis? How can multinational company use crosscultural research to design each factor in its marketing mix? Illustrate your answer with examples. 5. 3. What are the implications of these values for an advertising campaign designed to increase the consumption of citrus juices? 4. III. A manufacturer of fat-free granola bars is considering targeting school-age children by positioning its product as a healthy. IV. With all the problems facing companies that go global. consumption-specific. What are the advantages and disadvantages of global promotional strategies? 4.Olympia Business School Consumer Behavior Areas for application during tutorials 1. V. What advice would you give to an American retailer who wants to sell women’s clothing in Japan? Olympia Business School Page 25 . 2. and product-specific values for citrus juices as an alternative to soft drinks. values. II. The Citrus Growers of America is planning a promotional campaign to encourage the drinking of orange and grapefruit juice in situations in which many consumers normally consumer soft drinks. Should Head & Shoulders shampoo be sold worldwide with the same formulation? In the same package? With the same advertising theme? Explain your answer. Describe how a marketer can use some of the social trends to position a microwave oven. if so. nutritious snack food. Using the Rokeach Value Survey Instrument. For each of the products and activities listed below: a) Identify the core values most relevant to their purchase and use. and customers. c) Determine whether these core values are shifting and.

525 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 26 . Sixth Edition 17 Pages 500 .Olympia Business School Consumer Behavior WEEK 10 Lecture Topic: Lecture objective: Personal Influence and the Opinion Leadership Process * What is opinion leadership? * Dynamic of the opinion leadership * Frequency and overlap of opinion leadership * The situational and environment of opinion leadership * Opinion leadership and the firms promotional strategy Textbook: Chapter(s) Consumer Behavior – Leon G. Kanuk. Schiffman & Leslie L.

Are the circumstances during which you engaged in word-of-mouth communications consistent with those in the text’s material? Explain. 3. Briefly describe this modification and explain its relevance to the marketing strategist. 4. 5. Can you think of negative rumors that you have heard recently about a company or a product? If so. indicate the person’s relationship to you and your reasons for selecting him or her as the source of information and advice.Olympia Business School Consumer Behavior Areas for application during tutorials 1. 2. and (6) personal copiers. 4. Describe two situations in which you served as an opinion leader and two situations in which you sought consumption-related advice/information from an opinion leader. Why is an opinion leader a more credible source of product information than an advertisement for the same product? Are they any circumstances in which information from advertisements is likely to be more influential than word-of-mouth? Why would a consumer who has just purchased an expensive fax machine for home use attempt to influence the purchase behavior of others? Is an opinion leader for 35-mm cameras likely to be an opinion leader for Spandex clothing? Discuss. present them in class. (5) vacation destinations. Questions available for self assessment 1. The two step flow of communication theory has been modified to portray more accurately the flow of information. for each situation. indicate who you would go to for information and advice: (1) the latest fashion in clothes. (3) air travel. Indicate your relationship to the persons with whom you interacted. Olympia Business School Page 27 . For each of the following products and services. How can marketers combat negative word-of-mouth? Find ads that simulate and ads that stimulate opinion leadership and present them in class. 5. (4) the “hottest” night clubs. 3. (2) banking. 2.

Olympia Business School Consumer Behavior WEEK 11 Lecture Topic: The Diffusion of Innovations Lecture Objective: * The diffusion process * The adoption process * A profile of the consumer innovator Textbook: Chapter(s) Consumer Behavior – Leon G. Schiffman & Leslie L. Kanuk.554 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 28 . Sixth Edition 18 Pages 528 .

and a powerful processor. has a color screen. What are the essential difference between firm-product-. pricing. or a discontinuous innovation? Explain your answer. a dynamically continuous innovation. Toshiba has introduced a new laptop computer that weighs seven pounds. a) b) c) Sony’s Video Walkman (a portable TV and VCR) A PC fax/modem that enables the users to send and receive faxes directly from a personal computer A pocket-size cellular telephone 3. Select three of the products listed in Question 2 and describe the diffusion pattern that you except each product to have. and consumer-oriented definitions of a new products? Which definition do you feel is most suitable for the marketers of a Caller ID telephone service that displays the caller’s telephone number on the phone of the person being called? Explain your answer. market-. Justify your answer. Describe how manufacturer might use knowledge of the following product characteristics to spend up the acceptance of pocket-sized cellular telephones: (a) Relative advantage (b) Compatibility (c) Complexity 5.Olympia Business School Consumer Behavior Areas for application during tutorials 1. How can the company use the diffusion-of-innovations framework to develop promotional. into which a full-sized desktop screen and keyboard can be easily plugged. 2. Would you classify each of the following as a continuous innovation. and distribution strategies targeted to: a) Innovators b) Early adopters c) Early majority d) Late majority Olympia Business School Page 29 . 4.

Identify what type of innovation it is and describe its diffusion process up to this point in time. (a) What recommendations would you make to Sony regarding the initial target market for the new TV model? (b) How would you identify the innovators for this product? 4. What are the characteristics of people who adopted it first? what types of people did not adopt it? What features of the product. Among people you know. a picture-in-picture feature. With the advancement of digital technology. Olympia Business School Page 30 . How would you use both curve to develop a marketing strategy? 2. some companies plan to introduce interactive TV systems that will allow viewer to select films from “video libraries” and view them on demand. Compare and contrast the adoption and diffusion processes. Is the curve which describes the sequence and proportion of adopter categories among the population similar in shape to the products life cycle curve? Explain your answer. Sony is introducing a 60-inch TV with a built-in VCR. 3. and a feature that allows the viewer to simultaneously view frozen frames of the last signals received from twelve channels. identify two who are likely to be the innovators for such a new service and construct consumer profiles using the characteristics of consumer innovators. service.Olympia Business School Consumer Behavior Questions available for self assessment 1. or style that recently was adopted by you and/or some of your friends. service. or style are likely to determine its eventual success or failure? 5. Identify a product. Discuss each process in terms of the market acceptance of fax machines.

Schiffman & Leslie L.593 Reference Books: Consumer Behavior by Chris Rice Understanding Customers by Rosemary Philips & Craig Simmons Olympia Business School Page 31 . Sixth Edition 19 Pages 558 . Kanuk.Olympia Business School Consumer Behavior WEEK 12 Lecture Topic: Consumer Decision Making-Choosing and Consuming Lecture Objective: *What is a decision? *Levels of consumer decision making *A model of consumer decision making *Beyond the decision-consuming and possessing *Relationship marketing Textbook: Chapter(s) Consumer Behavior – Leon G.

How can a marketers of very light. “ Do you think that this quote applies to the development of the consumer decision-making model? 4. 5. passive. Identify the perceived risks associated with the purchase of this new product and outline a strategy designed or reduce these perceived risks during the product’s introduction. Discuss how the marketers of these products can reduce perceived risks. Compare and contrast the economic. did advertising play in your need recognition? 5. Which produces the highly successful Sensor shaving blade. Select a newspaper or magazines advertisement that attempts: (a) to provide the customer with a decision or (b) to reduce the perceived risks(s) associated with a purchase. 2. identify the perceived risks that a consumer is likely to experience before a purchase. cognitive. What kinds of marketing and sociocultural inputs would influence the purchase of (a) a TV with a built-in VCR. Olympia Business School Page 32 . has recently introduced a clear gel antiperspirant and deodorant for men. Identify three different products that you believe require a reasonably intensive prepurchase search by a consumer. and (c) fat –free icecream? Explain your answer. (b) a concentrated liquid laundry detergent. very powerful laptop computers use its knowledge of customers expectations in deigning a marketing strategy? Questions available for self assessment 1. 3. Evaluate the effectiveness of the ad you selected. How did it pair of sneakers? What role. 4. For each of the products that you listed.Olympia Business School Consumer Behavior Areas for application during tutorials 1. and emotional models of consumer decision making. if any. 3. How do consumers reduce postpurchase dissonance? How can marketers provide positive reinforcement to consumers after the purchase to reduce their dissonance? 2. Albert Einstein once wrote that “the whole of science is nothing more than a refinement of everyday thinking. Describe the need recognition process that look place before you purchased your last can of soft drink. The Gillette Company.