Course Title : Introduction to Consumer Psychology

Course Code : PSY3004

No. of Credits/Term : 3
Mode of Tuition : Sectional Approach
Class Contact Hours : 3 hours per week (2-hrs lecture; 1-hr tutorial)
Category : Major in Business Psychology (Required Course)
Discipline : Psychology
Prerequisite(s) : PSY2101 Introduction to Psychology
Instructors : Dr Sisi LIU (Office: WYL110; email: sisiliu@ln.edu.hk)
Lecture : Friday, 9:30pm - 11:29pm (MBG19)
Office Hour : Tue 11:00am-1:00pm, Fri 2:00pm-4:00pm. Please email
me to make an appointment

Brief Course Description

The rapid development in digital technology has ushered in a consumer mind-set that is
adventurous and exploratory. Hong Kong and global consumers have limitless options available
in the online and offline shops, providing new opportunities for merchants to improve marketing
performance and for consumers to improve economic wellbeing. This course introduces the
underlying psychological processes that explain choices of consumers and how they respond to
the influence of marketing, as well as the external stimuli that convince people to purchase
certain items. The benefits of studying this course have significant bearing on marketing and
public relations decisions. Consumer psychologists lay a critical role not only in in helping
sellers promote and market their products and services to buyers, but also in helping consumers
to make wise consumption decisions.

Aims
This course aims to:
1. Provide a thorough understanding of the internal and external factors that influence consumer
decisions;
2. Develop an appreciation of theories of consumer psychology;
3. Recall and critically evaluate current research in the field of consumer psychology;
4. Equip the capability to apply the knowledge gained during class to obtain greater insight into
a specific area of consumer psychology relating to a particular product.

Learning Outcomes (LOs):

Upon completion of this course, students will be able to:
1. Define principles of consumer psychology (LO1);
2. Summarize implications of major theories and current research in consumer psychology
(LO2);
3. Apply concepts and theories in understanding consumer behavioural patterns (LO3);
4. Develop and evaluate marketing strategies (LO4);
5. Offer counselling service to consumers to improve their decision making (LO5).

Indicative Content
1. Consumer Psychology: an overview

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2. Construal level theory
3. Affect & decision making
4. Choice & choice difficulty
5. Visual & pictorial elements in consumer psychology
6. Advertising psychology
7. Motivational determinants of consumer behavior
8. Self-control and ego depletion
9. Customer inertia: habits and brand loyalty
10. Decision-making over the life cycle: children, family, and aging
11. Consumers and the environment
12. Cross-cultural variations in consumer behavior

Teaching Method
There are one 2-hour lecture and one 1-hour tutorial each week. Classes will be held on the basis
of interactive lectures, in which the theory will be supplemented by practical examples,
analyzing and interpreting research articles. In the tutorial, students will be asked to work on a
group project with the assistance of the instructor.

Measurement of Learning Outcomes

1. Group project (30%): Students need to work in a group to apply knowledge in consumer
psychology to suggest ways to benefit a company. They will present their group project in about
30 minutes, including a Q & A session (usually takes 5-10 minutes). Students should choose a
particular brand and examine consumers’ perception of and attitude toward the brand of their
choice. They will analyze the problems faced by the brand (relative to its competitors) and think
about tactics that can help improve the brand and its market standing. They will present their
tactics or marketing plan, and group members share the same score. Students are also expected to
participate actively in class (LOs 1-4).

2. Mid-term test (20%) will be used to assess the students’ basic understanding of the scientific
theories that explain why consumer behave in certain ways from the psychological perspectives
(LOs 1-5).

3. Final exam (50%) will be used to assess the students’ in-depth understanding of consumer
psychology theories and the capacity of applying them to evaluate business cases (LOs 1-5).

Assessment
Continuous assessment : 50%
(Tutorial participation and presentation – 30%
Mid-term test – 20%)
Final examination : 50%

Required Reading
Jansson-Boyd, C. V. (2010). Consumer psychology. Berkshire, England: McGraw-Hill
Education.
Solomon, M. R., (2020/latest edition). Consumer Behavior, Global Edition, 13/E. Pearson,
ISBN-13: 9781292318103

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Recommended/Supplementary Readings
1. Babin, B. J., & Harris, E. (2021). CB, 9th Edition. Cengage, ISBN-13: 9780357518205 |
ISBN-10: 0357518209
2. Jacoby, J., & Morrin, M. (2015). Consumer psychology. In J. Wright (ed.) International
Encyclopedia of the Social & Behavioral Sciences: Second Edition (pp. 738-743). Elsevier
Inc..
3. Schmitt, B. (2013). The consumer psychology of customer–brand relationships: Extending
the AA Relationship model. Journal of Consumer Psychology, 23(2), 249-252.
4. Schmitt, B. (2012). The consumer psychology of brands. Journal of Consumer
Psychology, 22(1), 7-17.
5. Thomson, M., MacInnis, D. J., & Whan Park, C. (2005). The ties that bind: Measuring the
strength of consumers’ emotional attachments to brands. Journal of Consumer
Psychology, 15(1), 77-91.
6. Escalas, J. E., & Bettman, J. R. (2003). You are what they eat: The influence of reference
groups on consumers’ connections to brands. Journal of consumer psychology, 13(3), 339-
348.
7. Poiesz, T. B. (1989). The image concept: Its place in consumer psychology. Journal of
Economic Psychology, 10(4), 457-472.
8. Maheswaran, D., & Shavitt, S. (2000). Issues and new directions in global consumer
psychology. Journal of consumer psychology, 9(2), 59-66.
9. Loken, B., Barsalou, L. W., & Joiner, C. (2008). Categorization theory and research in
consumer psychology. Handbook of consumer psychology, 133-165.
10. Mandel, N., Petrova, P. K., & Cialdini, R. B. (2006). Images of success and the preference
for luxury brands. Journal of Consumer Psychology, 16(1), 57-69.
11. Chen, R. P., Wan, E. W., & Levy, E. (2017). The effect of social exclusion on consumer
preference for anthropomorphized brands. Journal of Consumer Psychology, 27(1), 23-34.
12. Lin, L., Dahl, D. W., & Argo, J. J. (2017). Refining the tightness and looseness framework
with a consumer lens. Journal of Consumer Psychology, 27(3), 392-397

Course Schedule

Week Date Lecture (2 hours) Tutorial (1 hour)

1 14 Jan S1. What is Consumer Behaviour Housekeeping, assessment

(Solomon Ch 1) criteria, Classroom Discussion
2 21 Jan S2. Consumer Perception  Case Study, Experiment
(Solomon Ch 3) demonstration or Research
Discussion
3 28 Jan S3. Learning and Memory (Solomon Ch 4) Case Study, Experiment
demonstration or Research
Discussion
4 Feb Chinese New Year Holidays
4 11 Feb S4. Motivation, Affect, and Consumer Case Study, Experiment
Involvement (Solomon Ch 5) demonstration or Research

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 Discussion
5 18 Feb S5. Self-Concept and Consumer Behaviour Case Study, Experiment
(Solomon Ch 6) demonstration or Research
Discussion
6 25 Feb S6. Personality and Consumer Identity Case Study, Experiment
(Solomon Ch 7) demonstration or Research
Discussion
7 4 Mar Case Study, Experiment
Mid-term Exam demonstration or Research
Discussion
8 11Mar S7. Consumer Attitudes and Persuasion  Mid-term Exam Feedback,
(Solomon Ch 8) Research Discussion
9 18 Mar S8. Consumer Decision-making (Solomon Case Study, Experiment
Ch 9) demonstration or Research
Discussion
10 25 Mar S9. Situational Effects on Consumer In-class Project Discussion &
Behaviour (Solomon Ch 10) Consultation, Class Discussion
11 1 Apr S10. Networked Consumer Behaviour Project Presentations (Group
(Solomon Ch 11) 1&2)
12 8 Apr S11. Cultural Influence on Consumer Project Presentations (Group
Behaviour (CB Ch 9; Solomon Ch 13 & 14) 3&4)
15 Apr
Good Friday
13 22 Apr Project Presentations (Group 5, 6, 7 &8)
14 TBD Final Examination

Important Notes
(1) Students are expected to spend a total of 9 hours (i.e. 3 hours of class contact and 6 hours
of personal study) per week to achieve the course learning outcomes.
(2) Students shall be aware of the University regulations about dishonest practice in course
work, tests and examinations, and the possible consequences as stipulated in the
Regulations Governing University Examinations. In particular, plagiarism, being a kind of
dishonest practice, is “the presentation of another person’s work without proper
acknowledgement of the source, including exact phrases, or summarised ideas, or even
footnotes/citations, whether protected by copyright or not, as the student’s own work”.
Students are required to strictly follow university regulations governing academic integrity
and honesty.
(3) Students are required to submit writing assignment(s) using Turnitin.
(4) To enhance students’ understanding of plagiarism, a mini-course “Online Tutorial on
Plagiarism Awareness” is available on https://pla.ln.edu.hk/.

Course policy

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Students shall be aware of the University regulations about dishonest practice in course work and
the possible consequences as stipulated in the Regulations governing University Examinations.

Warning against plagiarism

With regard to your group presentation in particular, you are reminded you must note the sources
of quotations, data and general information in the demonstration document. These
sources/references should appear in alphabetical order in your list of references/bibliography.
According to Lingnan University and Social Sciences Faculty policy, plagiarism is “presentation
of another person’s work without proper acknowledgment of the source”. Plagiarism
(unattributed copying) will be heavily penalized and may attract zero mark and disciplinary
action.

Missed examination
Supplementary assessment will only be arranged for students with medical or other compelling
reasons under exceptional circumstances. To be eligible for consideration, you must provide a
formal letter and supporting evidence to your instructor(s) within 24 hours of the missed exam.
Otherwise a missed exam will receive zero mark.

Early examination
Early examination application will NOT be granted for this course. To enroll for this course you
need to make sure you will be able to take the final exam in the normal examination period as set
out in the Academic Calendar.

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 PSY 3004 Rubrics
(1) Group presentation (30%)
Assessment Exceeds Expectations/ Meets Expectations/ Needs Improvement
Criteria Outstanding(80-100) Acceptable (60-79) (0-59)
Conceptual • Cover a good range of • Concepts/theories • Concepts/theories
understandi relevant concepts/ and important ideas and important
ng of subject theories pertinent to the ideas pertinent to
matter • Important ideas topic are accurately the topic are not
pertinent to the topic used accurately used
are skillfully applied
Analysis of • Thoroughly interpret • Information with • List information
Issues and evaluate the some without
information interpretation/evalu interpretation/eval
• Comprehensively ation uation
analyze and synthesize • Basic analysis or • Superficially
the issues from synthesis from two analyze or
multiple perspectives perspectives synthesize the
issue
• Single perspective
is discussed
Integration • Empirical evidence or • Empirical evidence • Much of
Content

of sources information or information information

and evidence (explanations, (explanations, included is not
examples, illustrations, examples, relevant and
statistics, analogies, illustrations, inadequate to
quotations from statistics, analogies, support the topic.
relevant authorities) is quotations from Some information
highly relevant relevant authorities) is inaccurate or
is generally relevant unverifiable
Responses to • Responds • Responds • is not able to
questions appropriately to all appropriately to the responds the spot
questions, with questions, with questions
answers that answers that
demonstrate demonstrate some
knowledge and knowledge and
understanding understanding
Transitions • The presentation • Fair coherent • Coherent
& Flow produces coherent understanding is understanding by
understanding demonstrated the listener is not
obtained
Presentation Skills

Uses good • Makes good eye • Makes fairly good • Make little or no
body contact with audience eye contact with eye contact with
language, • Shows enthusiasm and audience audience
eye contact, confidence • Shows some • Shows little or no
appropriate • Uses voice tone enthusiasm and enthusiasm and
voice tone effectively confidence confidence
• Uses voice tone
relatively
effectively
Appropriate • Allocated time • Marginally long or • Significantly too

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 Assessment Exceeds Expectations/ Meets Expectations/ Needs Improvement
Criteria Outstanding(80-100) Acceptable (60-79) (0-59)
time appropriately and marginally short but short or too long
allocation managed time uses time and did not use
and pace effectively reasonably time effectively
• Appropriate pace effectively • Pace is
• Reasonable pace significantly too
fast or too slow
Makes • Proper use of • Generally good use • Poor use of
effective use presentation tools with of presentation presentation tools
of little or no distractions tools. Some and/or many
presentation (e.g. appropriate distractions but they distractions (e.g.
tools animation/pictures, are not too much
(slides/hand appropriate overwhelming (e.g. animation/pictures
outs) information on one reasonable , too much
slide, clear titles, etc.) animation/pictures, information on
fair information on one slide, absence
one slide, fair titles, of titles, etc.)
etc.)

(2) Mid-term test (20%)

Excellent (80- Good (60-79) Fair (50-59) Pass (40-49) Failure (0-39)
100)
Understanding Comprehensive Clear Partial Superficial Very little
of topic (40%) understanding of discussion of understanding understanding of understanding
issues. Clearly relevant issues of the subject the issues. Does of the issues.
answer the matter, does not answer the Does not
questions not answer the question fully answer the
question question
directly
Critical Showing original Able to Able to The analysis is Not able to
analysis (40%) thinking and analyze the analyze the shallow and not analyze the
analysis issue to issue but the able to issue
develop good argument is not demonstrate
arguments in-depth original thinking
Structure of Presents a Clear structure Argument Structure is not Poor structure
argument convincing and and develop a needs further clear and the
(20%) well-developed sound development discussion is not
argument argument and more coherent
clarify of
structure

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(3) Final Exam (50%)
Excellent (80- Good (60-79) Fair (50-59) Pass (40-49) Failure (0-39)
100)
Understanding Comprehensive Clear Partial Superficial Very little
of topic (40%) understanding of discussion of understanding understanding of understanding
issues. Clearly relevant issues of the subject the issues. Does of the issues.
answer the matter, does not answer the Does not
questions not answer the question fully answer the
question question
directly
Critical Showing original Able to Able to The analysis is Not able to
analysis (40%) thinking and analyze the analyze the shallow and not analyze the
analysis issue to issue but the able to issue
develop good argument is not demonstrate
arguments in-depth original thinking
Structure of Presents a Clear structure Argument Structure is not Poor structure
argument convincing and and develop a needs further clear and the
(20%) well-developed sound development discussion is not
argument argument and more coherent
clarify of
structure