The Pennsylvania State University

Smeal College of Business

MKTG 541 - Consumer Behavior
Fall 2012, Mod V
TR 3:30 5:30 PM

124 Business Building

8/28 10/9/12

Professor: Dr. Meg Meloy

Email:

mmeloy@psu.edu

Office:

444 Business Building

Phone:

(814) 863-0687 (office); (814) 769-1485 (cell) (no texts please)

Office Hrs: Tuesdays 12:30 1:00 PM

Thursday 12:30 3:00 PM
and by appointment
COURSE OBJECTIVES
Contemporary approaches to business emphasize the importance of adopting a consumer focus.
Marketing, in particular, is a customer-driven function that begins and ends with the consumer
from recognizing his or her needs to ensuring post-purchase satisfaction. In this course, you will
enhance your understanding of how and why people choose, use, and evaluate goods and
services the way they do.
While all of us are consumers, our intuitions about our own behavior as well as that of others are
often inaccurate. In this class, we will use theories developed in marketing, psychology, and
other behavioral sciences to better predict how consumers will respond to different marketing
activities.

COURSE FORMAT
We will use several different kinds of materials and approaches in this course to illustrate
consumer behavior phenomena and to get us thinking about the managerial implications of those
findings. Material will be presented in lectures, discussions, articles, videos, by guest speakers,
etc. We will apply relevant theories and research to real-world consumer behavior problems. In
addition, you will be part of a team that will conduct a consumer behavior field project of your
choice, allowing you to draw upon the knowledge you gain during class in order to gain greater
insight into a specific area of consumer behavior.

LEARNING OBJECTIVES
The primary objective of this course is to provide key tools and frameworks for analyzing
consumer behavior in order to solve marketing problems and define effective marketing
strategies.
Specifically, you will:
Learn about relevant theories and research from the behavioral sciences (e.g.,
psychology, sociology, economics) that can help marketers understand and influence
consumer behavior.
Apply consumer behavior research when developing and evaluating marketing strategies.
Understand the strengths and limitations of specific, often competing theories for
interpreting particular consumer issues.
Improve your abilities to discover original consumer insights that go beyond surfacelevel intuitions.

COURSE POLICIES

Attendance is expected. Your ability to benefit from the course and contribute to the class
is largely dependent upon your attendance during class meetings. If you cannot attend
class, you will be responsible for everything covered or announced in class.
The classroom is a professional learning environment, and students in-class behaviors
should reflect this. Intrusive classroom exits and entrances, systematic tardiness, use of
laptop computers for surfing the web, email correspondence, and text messaging are rude,
disruptive, and discouraged.
We should all try to make the classroom atmosphere as congenial as possible to allow
everybody to contribute to the class. This does not, however, mean that you must agree
with every comment offered by your classmates (i.e., its ok to disagree with me and your
classmates as long as its done in a civil and constructive manner).
You should come to class ready to discuss the assignment for the day, be it a reading, an
assignment you are turning in, a case, etc.
Late assignments will not be accepted. The only exceptions are for documented
emergencies.

COMMUNICATION
The best way to reach me outside class is via email. I am often tied up in meetings or in the
behavioral lab. If you cannot attend my officially scheduled office hours, you can always email
me to set up an appointment for a different time that works with your schedule. I will use the
Angel system to post lecture materials and other information about the class (e.g., changes in the
syllabus, assignments, etc.). For more time-critical information, I will be emailing you at your
PSU email address. Please make sure that if you correspond with me via email, you do so via
your PSU account. The spam filters set up by the university often delay delivery of non-PSU
emails.

COURSE MATERIALS
Course Readings
A packet is available at the campus Bookstore for the HBR course readings and cases. Where
copyright has allowed, other required readings are available through Angel with a link to the
librarys electronic course reserve. (It was much cheaper that way.) The syllabus contains a list
of the readings and accompanying discussion questions.
Additional Readings (Recommended based on interest)
There are many text books and popular press book titles that cover issues related to our class
discussions. We will be reading excerpts from a number of these during the Module (listed
below). I am also happy to recommend additional books beyond the ones listed. My first
recommendation is a comprehensive consumer behavior text book that you may wish to purchase
as a supplement to the readings I post:

Hoyer, Wayne D. and MacInnis, Deborah J. (2008), Consumer Behavior, 5th edition. Mason,
OH: South-Western Cengage Learning.

I also highly recommend these books. We will be reading excerpts from many of these during
the Module (you are not required to purchase these, but you may wish to for your own,
independent reading):

Ariely, Dan (2008). Predictably Irrational: The Hidden Forces that Shape our Decisions,
Harper Collins.
Belsky, Gary and Thomas Gilovich (2000). Why Smart People Make Big Money Mistakes
and How to Correct Them: Lessons from the New Science of Behavioral Economics, Simon
and Shuster.
Brennan, Bridget (2009). Why She Buys, Crown Business.
Cialdini, Robert B. (2006). Influence: The Psychology of Persuasion, Harper Business.
Gilbert, Daniel (2005). Stumbling on Happiness, Random House.
Gladwell, Malcolm (2007). Blink: The Power of Thinking without Thinking, Back Bay
Books.
Heath, Chip and Dan Heath (2007). Made to Stick: Why Some Ideas Survive and Some Die,
Random House.
Kahneman, Daniel (2011). Thinking, Fast and Slow, Farrar, Straus and Giroux.
Lindstrom, Martin (2010). Buyology: Truth and Lies about Why We Buy, Broadway Books.
Russo, J. Edward and Paul J.H. Shoemaker (2002). Winning Decisions: Getting it Right the
First Time, Random House.
Schwartz, Barry (2004). The Paradox of Choice: Why More is Less, Harper Collins.
Thaler, Richard H. and Cass Sunstein (2009). Nudge: Improving Decisions about Health,
Wealth, and Happiness, Penguin.
Underhill, Paco (1999). Why We Buy: The Science of Shopping, Simon & Schuster.
Zaltman, Gerald (2003), How Customers Think: Essential Insights into the Mind of the
Market, Harvard Business School Press.

GRADING
Each students grade will be determined as follows:
Quizzes
Team Field Project
Individual Application Paper
Individual Participation

20%
40%
20%
20%
100%

Quizzes:
I will periodically, and at random, give a brief quiz that is based on the readings assigned for the
day. The quiz will ask you about the broad themes of the readings.
Field Project
This project provides a hands-on opportunity to understand specific consumer behaviors. In
teams comprised of approximately 3-4 members, students will investigate a consumer issue of
your selection. You will form your own teams. I have a few ideas in mind, but projects can focus
on any interesting consumer behavior issue. The scope of the project make is similar to typical,
consumer research projects that marketing departments regularly commission and field. You will
summarize your recommendations in a brief report and present it in class. See the document
titled Field Project Supplement for details, including milestones that must be reached before the
final presentation on the last day of class.
Individual Application Paper
This project provides an opportunity for you to examine a decision that you have made (or
encountered) through your work that didnt turn out as you (or others) expected. Please make
sure the decision is relevant to a particular consumer behavior outcome. Describe the decision
that you (they) faced, the factors that were considered as the decision was being made, and the
outcomes that resulted. Analyze the situation, applying the concepts you have learned in the
course. What factors impacted the choice process of the various decision makers? What factors
drove the decision outcome? What recommendations would you make to the decision makers
for how to improve their decision processes in the future?
Each person will turn in a 5-7 page analysis of the situation no later than Friday, October 5 at 5
PM . Please email me your paper at mmeloy@psu.edu.
It is a good idea to think about what decision you want to focus on as soon as possible. In your
write-up, please be sure to cover the following specific topics:
1. After explaining the situation, identify and define/explain the concept(s) that we
discussed in class that you wish to focus on in discussing the choice you were involved
with. Make sure that you accurately define this concept; if youre unclear on how to
define it, check the notes, the readings, or the textbook/books I have recommended.

2. Explain how the choice relates to these concepts (i.e., why is it an example of this
concept?). Feel free to also discuss any other related concepts from our class discussion
that are relevant to understanding the example youve identified.
3. Discuss the implications that arise from this example for the decision maker(s). For
example, are they showing a bias or making a poor strategic decision? How would you
suggest they correct it? What do you predict will happen in the future if the same decision
is faced and you/they make the changes you suggested/dont make the changes you
suggested?
This paper is an important component of the class. Be as integrative as possible and challenge
the obvious analysis. Make sure you provide enough details that I understand the choice you/they
faced. Connect your thoughts to the CB concepts weve discussed in class.
Please email me or call me if you have questions about this assignment prior to turning it in.
Individual Participation
Your participation grade will be determined by three components: (1) in-class contribution, (2)
quality of non-graded assignments/activities collected during class, and (3) contribution to your
teams field project.
In-Class Contribution. In-class contribution will be assessed based on the quality and
consistency of your contributions to the in-class discussions. You are neither expected to
have all the right answers in every class, nor to dominate every in-class discussion. However,
you are required to be prepared and contribute regularly. The quality of our class discussions
depends on how well prepared you are and your willingness to share the results of your
preparation with the class. This means that the quality of your contributions is a lot more
important than the quantity. It is entirely possible that you can talk a lot and receive a low
grade for in-class contribution. When evaluating your contribution to the class discussions,
factors such as the following are considered:

Does the participant attend class regularly and come to class on time? Is the participant
prepared?
Do comments add insight to our understanding of the marketing concept, the problem or
situation, or are others left with a so what feeling?
Do comments generate discussion by yielding a new perspective?
Is the participant a good listener? Are comments timely and do they advance the
comments recently made by others? Are they linked to the comments of others? Is there
a willingness to interact with other class members?

Quality of non-graded Assignments/Activities. I will periodically collect written

exercises/activities that you complete in class. These will be factored into your participation
grade as follows:

Does participant turn in all non-graded activities collected during class time?
Are non-graded activities high quality?

Field Project Contributions. Your contributions with respect to the field project will also be
a factor in assessing participation, including:

Meeting all milestones on field project by the specified dates

Peer evaluations on field project (i.e., how did your team members rate your contribution
to the team)?
Turning in evaluations of all field project presentations (i.e., your ratings of other teams
presentations).

ACADEMIC INTEGRITY
Academic integrity is essential to maintaining an environment that fosters excellence in teaching,
research, and other educational and scholarly activities. Thus, the Pennsylvania State University
and the Smeal College expect that all students have read and understand the Universitys Code of
Conduct and that all students will complete all academic and scholarly assignments with fairness
and honesty. Students must recognize that failure to follow the rules and guidelines established in
the Universitys Code of Conduct and this syllabus may constitute an academic integrity
violation. If I suspect that a student has committed academic misconduct in this course, I am
obligated by University to report my suspicions to the Academic Integrity Committee. If they
determine that you have violated the Universitys Code of Conduct (i.e., committed an academic
integrity violation), the sanctions for the misconduct could include a failing grade in this course
and suspension or dismissal from the University.
According to the Penn State Principles and University Code of Conduct:
Academic integrity is a basic guiding principle for all academic activity at Penn State University,
allowing the pursuit of scholarly activity in an open, honest, and responsible manner. According
to the Universitys Code of Conduct, you must neither engage in nor tolerate academic
dishonesty. This includes, but is not limited to cheating, plagiarism, fabrication of information or
citations, facilitating acts of academic dishonesty by others, unauthorized possession of
examinations, submitting work of another person, or work previously used in another course
without informing the instructor, or tampering with the academic work of other students. Any
violation of academic integrity will be investigated and, where warranted, corrective academic
and/or disciplinary action will be taken.
In addition, the Smeal College has adopted the following Honor Code:
We, the Smeal College of Business Community, aspire to the highest ethical standards and will
hold each other accountable to them. We will not engage in any action that is improper or that
creates the appearance of impropriety in our academic lives, and we intend to hold to this
standard in our future careers.

AFFIRMATIVE ACTION AND SEXUAL HARASSMENT

The Pennsylvania State University is committed to a policy where all persons shall have equal
access to programs, facilities, admission, and employment without regard to personal
characteristics not related to ability, performance, or qualifications as determined by University
policy or by Commonwealth or Federal authorities. Penn State does not discriminate against any
person because of age, ancestry, color, disability or handicap, national origin, race, religious
creed, gender, sexual orientation, or veteran status. Related inquiries should be directed to the
Affirmative Action Office, 328 Boucke Building.
AMERICANS WITH DISABILITIES ACT
The Smeal College of Business welcomes persons with disabilities to all of its classes, programs,
and events. If you need accommodations, or have questions about access to buildings where
Smeal College activities are held, please contact us in advance of your participation or visit. If
you need assistance during a class, program, or event, please contact the member of our staff or
faculty in charge. Access to Marketing courses should be arranged by contacting the Department
of Marketing in 455 Business Building, (814) 865-1869.
STUDENTS WITH LEARNING DISABILITIES
It is Penn States policy to not discriminate against qualified students with documented
disabilities in its educational programs. If you have a disability-related need for modifications in
your testing or learning situation, your instructor should be notified during the first week of
classes so that your needs can be accommodated. You will be asked to present to the Office of
Disability Services (located in 116 Boucke Building (814) 863-1807) documentation that
describes the nature of your disability and the recommended remedy. You may refer to the
Nondiscrimination Policy in the Student Guide to University Policies and Rules.

COURSE CALENDAR*
Day/Session Date

Topic

Assignment Due

SECTION ONE: INTRODUCTION TO CONSUMER BEHAVIOR

8/28
Introduction, Syllabus, and
Overview: What is Consumer
Behavior?
R/2
8/30
Methods to Study Consumer
Readings on Angel
Behavior and Consumer Trends
SECTION TWO: CONSUMERS AND THE PSYCHOLOGICAL CORE
T/3
9/4
Motivation, Ability, and Opportunity
Readings on Angel and
(MAO)
Case Preparation
Case: Boston Beer: Light Beer
Decision
R/4
9/6
Exposure and Attention
*All field project teams must
1
Curt Johnson Guest Speaker via
have a meeting with me (outside
Skype
of class) about their field project
by 3 PM TODAY
Readings on Angel
T/5
9/11
Perception and Memory
Readings on Angel
Field Project Proposal Due (one
per team)
R/6
9/13
Learning, Expertise and
Readings on Angel
Categorization
Megan DeStefano2 Guest Speaker
T/7
9/18
Non-Conscious Influences and
Readings on Angel
Emotions
R/8
9/20
Attitudes and Attitude Change
Readings on Angel and
Case: Plugging In the Consumer:
Case Preparation
The Adoption of Electrically
Powered Vehicles in the U.S.
SECTION THREE: CONSUMER DECISION MAKING
T/9
9/25
Consumer Decision Making I
Readings on Angel
R/ 10
9/27
Consumer Decision Making II
Readings on Angel
T / 11
10/2
Consumer Decision Making III and
Readings on Angel
Post-Decision Processes
R / 12
10/4
No class work day!
Individual Application Papers
Due on Friday, October 5 by 5 PM
(email them to mmeloy@psu.edu)
T/ 13
10/9
Social and Interpersonal Influences
Readings on Angel
on Consumer Decision Making
Final Exam
Field Project Presentations
Turn in Brief Report
Period
T/1

1
2

Curt Johnson is the President of CJ and Associates Marketing

Megan DeStefano is Marketing Manager, DuPont Nutrition & Health

* Course Schedule subject to change. All changes will be announced in class.

Required Readings and Discussion Questions

Class Procedure on Non-case Days:
Readings. The readings are a combination of background readings and specific applied
readings that we will spend time in class discussing. You should make sure that you have
taken a look at the questions that correspond to those readings. I will be pulling quiz
questions from those questions.
Extra Readings. These are readings designed to give you exposure to current research in
consumer behavior if you are interested in exploring the topic a bit more. These readings
may also give you some ideas for your field project.
Case Days:
Your primary reading for a case day will obviously be the case (and potentially other
supplementary readings). Case Study Questions are provided instead of discussion
questions. These questions are provided to help you prepare the case. It is in your best
interest to prepare good answers to these questions, as they will help guide the case
discussion.
I will ask you to turn in these Case Study Questions and they will contribute to your
participation grade.

Lecture 2: Methods to Study Consumer Behavior and Consumer Trends

Readings to Illustrate Key Concepts for Lecture:

Wasserman, Todd (2003), Sharpening the Focus, Brandweek, November 3, pp. 2832.
Underhill, Paco (2009), Chapter 1 in Why We Buy, A Science is Born pp. 11-26.
Stein, Joel (2011), Data Mining: How Companies Now Know Everything About
You, Time, March 10.
Lindstrom, Martin (2008), pp. 1-6 from the Introduction to Buyology: Truth and Lies
about Why We Buy, and pp. 25-28 from Chapter 1, A Rush of Blood to the Head.

Questions:

What kinds of marketing research methods are optimal for exploratory questions?
What about questions of causality?
Can companies ever have too much information about their consumers?
Do companies have a responsibility to protect consumer data beyond that required by
the law? What are the implications if a breach occurs?

Extra Readings:

Steel, Emily (2008), The New Focus Groups: Online Networks, Wall Street
Journal, January 14, B6.
Overly, Steve (2011), To Alter Consumer Behavior, Some Companies Reach Out to
Academics, The Washington Post, April 3.
Atalay, Selin and Margaret Meloy (2011), Retail Therapy: A Strategic Effort to
Improve Mood, Psychology and Marketing, 28 (6), 638-660.

Lecture 3: Motivation, Ability, and Opportunity

Readings

Brennan, Bridget (2009), Chapter 4 in Why She Buys, Pink is Not a Strategy, pp.
143-159.
Catchings-Castello, Gwendoyln (2000), The ZMET Alternative, Marketing
Research, 12 (2), 6-12.

Questions:
Why do some consumers find an ad interesting and engaging while others completely
ignore the same ad?
How do marketing managers use an understanding of consumers needs in developing
marketing strategy?
Even if consumers are extremely motivated to process information about a
product/brand and/or are motivated to buy that product/brand, what factors might
prevent them from doing so?
How does observing consumers in their homes help P&G marketers gain insight into
womens needs? How are the insights obtained different from what could be obtained
through survey-based research?
Case: Boston Beer Company
Case Study Questions:

Should Boston Beer attack the light beer market? If yes, why and how? If no, why
and what should they do instead?
What is the specific contribution of each form of market research to your
recommendation in the question above (i.e., specifically, what did you take away
from the taste tests, ZMETs, consumption data, etc.)?
How does Boston Beer get heard in such a noisy marketplace?
If we were to enter to enter the market, what proposal would you make (name, label,
bottle color, taste, target customer, target competitor, etc.)?
What questions would you need answered in order to decide whether to move
forward with your recommendations?

Case: Cyr, Linda A., Joseph B. Lassiter, and Michael J. Roberts (1998; revised 2001),
Boston Beer Co: Light Beer Decision, Harvard Business Publishing.
Supplemental Material: Zaltman, Gerald (1998), ZMET Research Process, Harvard
Business Publishing.

Lecture 4: Exposure and Attention

Readings:

Story, Louise (2007), Anywhere the Eye Can See, It's Now Likely to See an Ad,
The New York Times, January 15, A1.
Story, Louise (2007), Viewers Fast-Forwarding Past Ads? Not Always, The New
York Times, February 16, A1.
Heath, Chip and Dan Heath (2008), Chapter 2 in Made to Stick, Unexpected, pp.
63-70.
Teixeira, Thales (2012), The New Science of Viral Ads, Harvard Business Review.

Questions:

How can marketers ensure their target market is exposed to their marketing
messages?
What factors determine whether consumers will pay attention to a marketing
message?
Why do marketers eventually change ad campaigns that have proven to be very
successful?
What causes some ads to go viral while others do not?

Extra Readings:

Gorn, Gerald J., Yuwein Jiang, and Gita V. Johar (2008), Babyfaces, Trait Inferences
and Company Evaluations in a Public Relations Crisis, Journal of Consumer
Research, 35 (June), 36-49.
Wansink, Brian and Koert Van Ittersum (2003), Bottoms up! The Influence of
Elongation on Pouring and Consumption Volume, Journal of Consumer Research,
30, 455-463.

Lecture 5: Perception and Memory

Readings:

Bakalar, Nicholas (2007), If It Says McDonalds, Then It Must Be Good, The New
York Times, August 14, F7.
Gladwell, Malcolm (2005), Chapter 5 in Blink: The Power of Thinking Without
Thinking, Kennas Dilemma: The Right and Wrong Way to ask People What
They Want, pp. 155-166.
Zaltman, Gerald (2003), Chapter 8 in How Customers Think: Essential Insights into
the Mind of the Market, Memorys Fragile Power, pp. 165-179.

Questions:

What impact does a known brand name have on consumers product perceptions?
In general, which is more important in marketing: consumers perceptions of
products performance/attributes or objective product performance/attributes?
What cues (besides objective product taste) influence product taste perceptions in the
examples Gladwell discusses?
Why can consumers recall information about brands/products that they did not
actively try to learn (e.g., brand slogans/taglines)?
What types of cues or stimuli serve as retrieval cues for information about
brands/products?
What types of interactions with a brand are likely to create strong memory traces that
can be easily recalled?

Extra Reading:

Schacter, Daniel L. (1999), The Seven Sins of Memory: Insights from Psychology
and Cognitive Neuroscience, American Psychologist, 54, 182-203.

Lecture 6: Learning, Expertise, and Categorization

Readings:

Hoyer, Wayne D. and Deborah J. MacInnis (2010), Chapter 4 in Consumer Behavior,

5th edition, Knowledge and Understanding, pp. 100-105.
Trispas, Mary (2009), Its Brand New, but Make it Sound Familiar, The New York
Times, October 4, BU 4.
Ries, Al (2007), Nintendo Will Win Game Wars by Thinking 'Different,' Not
'Better', Advertising Age, February 19, 13.
Duhigg, Charles (2012), How Companies Learn Your Secrets, The New York Times,
February 16.

Questions:

Are all members of a category created equal? (in other words, are all members of a
category equally representative of that category)?
Is it more effective to organize categories in a retail setting using goal-derived or
taxonomic categories?
How does categorization relate to perception?
What type of information does knowing the category that a new product belongs to
give the consumer about that product? How does this information influence outcomes
a brand manager cares about, like satisfaction, purchase intentions, etc.?
Habits are learned, but we are often not conscious of the urges and cues that drive our
habits. Do you think most people are queasy when others point out their habits and
if so, what should marketers do if they can identify the habits driving consumer
behavior?

Extra Readings:

Lakshmanan, Arun, Charles D. Lindsey and H. Shanker Krishnan (2010), Practice

Makes Perfect? When Does Massed Learning Improve Product Usage Proficiency?
Journal of Consumer Research, 37 (December), 599-613.
Mogilner, Cassie, Tamar Rudnick, and Sheena S. Iyengar (2008), The Mere
Categorization Effect: How the Presence of Categories Increases Choosers
Perceptions of Assortment Variety and Outcome Satisfaction, Journal of Consumer
Research, 35 (August), 202-215.
Wright, Peter (2002), Marketplace Metacognition and Social Intelligence, Journal
of Consumer Research, 28 (Mar), 677-682.

Lecture 7: Nonconscious Influences and Emotions

Readings:

Epley, Nicholas, Kenneth Savitsky and Robert A. Kachelski (1999), What Every
Skeptic Should Know about Subliminal Persuasion, The Skeptical Inquirer,
September/October, 40-58.
Vlahos, James (2007), Scent and Sensibility, The New York Times, September 9.
Dunn, Elizabeth and Michael Norton (2012), Dont Indulge: Be Happy. The New
York Times, July 7.

Questions:

What is the distinction between subliminal perception and subliminal persuasion?

How do subliminal influences work with memory?
What is scent marketing?
What are some of the benefits marketers hope to obtain by using scents in a retail
environment?
What are some of the difficulties with doing so?
Are there ethical issues with using subliminal and scent marketing?
Do you think that subliminal and nonconscious influences on behavior wilt outside
of the hothouse of the lab?
What makes forecasting how we will feel in the future so difficult?
Does giving it away always make us happier than keeping it for ourselves?

Extra Readings:

Bargh, John A. and Tanya L. Chartrand (1999), The Unbearable Automaticity of

Being, American Psychologist, 54 (7), 462-479.
Dahl, Darren W., Jaideep Sengupta, and Kathleen D. Vohs (2009), Sex in
Advertising: Gender Differences and the Role of Relationship Commitment, Journal
of Consumer Research, 36 (August), 215-231.

Lecture 8: Attitudes and Attitude Change

Readings:

Heath, Chip and Dan Heath (2008), Chapter 4 in Made to Stick, Credible, pp. 130141.
Babin, Barry J. and Eric G. Harris (2009), Chapter 7 from CB, Attitudes and Attitude
Change, pp. 126-128.
Jia, Annnie (2009), How Understanding the Human Mind Might Save the World
from CO2," The New York Times, November 19.

Questions:

If a consumer is motivated to think carefully about a persuasive message, what type

of information will he/she find most credible?
Is a celebrity endorser who is known primarily for one thing (e.g., an athlete like
LeBron James) equally effective for all different types of products? Why or why not?
What does this depend on?
What is the say-do problem? What does it mean for environmental activists with an
interest in changing consumers behaviors? What does it mean for marketing
researchers with an interest in predicting buyer behavior?

Extra Readings:

Greenwald, Anthony G, Debbie E. McGhee, and Jordan L.K. Schwartz (1998),

Measuring Individual Differences in Implicit Cognition: The Implicit Association
Test, Journal of Personality & Social Psychology, 74(6), 1464-1480.
Litt, Ab and Zakary L. Tormala (2010), Fragile Enhancement of Attitudes and
Intentions Following Difficult Decisions, Journal of Consumer Research, 37
(December), 584-598.

Case: Plugging In the Consumer: The Adoption of Electrically Powered Vehicles in the
U.S.
Case Study Questions:

What are the barriers to and opportunities for the adoption of electric vehicles (EVs)
and plug-in hybrid electric (PHEVs)?
What attitudes will need to change before consumers fully embrace EVs?
What marketing actions would you recommend to firms to maximize the rate of
consumer uptake?
What role should government play in encouraging the adoption of non-fossil fuel
vehicles?
Do you believe we will all be driving EVs 25 years from now? Why or why not?

Case: Ofek, Elie and Polly Ribatt (2011), Plugging In the Consumer: The Adoption of
Electrically Powered Vehicles in the U.S., Harvard Business Publishing.

Lectures 9/10/11: Consumer Decision Making

We will cover decision making over three class days. I have grouped the readings into three parts
below, but this will probably not map onto the three class days exactly (this will depend on the
discussion). We should be able to cover the Part 1 readings on Day 1 and the Part 3 readings on
Day 3, but the material related to the Part 2 readings may start on Day 1 and will likely spill
over onto Day 3, so please plan your reading of this material accordingly.
Part 1 (Five-step Decision Making Process, Information Search, and Decision Rules):
Readings Part 1:

Court, David, Elzinga, Dave, Mulder, Susan and Ole Jorgen Vetvik (2009), The
Consumer Decision Journey, McKinsey Quarterly, Issue 3, 96-107.
Schwartz, Barry (2004), Chapter 3 in The Paradox of Choice: Why More is Less,
Chapter 3, Deciding and Choosing, pp. 52-61.

Questions for Part 1:

Where do consumers search for information about products/brands? What type of

information do consumers search for?
What biases can affect consumers information search?
Do you think consumers really use the decision rules you read about? Why or why
not? If so, what does it look like in the real world?

Extra Readings:

Russo, J. Edward, Kurt A. Carlson, and Margaret G. Meloy (2006), Choosing an Inferior
Option Psychological Science, 17 (10), 899-904.

Part 2 (Heuristics, Biases, and the Context of Judgments):

Readings Part 2:

Thaler, Richard H. and Cass Sunstein (2009), Chapter 1 in Nudge: Improving

Decisions about Health, Wealth, and Happiness, Biases and Blunders, pp. 17-31.
Ariely, Dan (2008), Chapters 1 and 2 in Predictably Irrational: The Hidden Forces
that Shape our Decisions, The Truth About Relativity, pp. 1-8 and The Fallacy of
Supply and Demand, pp. 25-33.
Johnson, Eric and Daniel Goldstein (2003), Do Defaults Save Lives?, Science,
1338-1339.

Questions Part 2:

Why do consumers use rules of thumb to make decisions?

Anchoring, which youll read about in more than one of todays readings, is one of
the three original heuristics identified in the heuristics and biases approach to
studying human decision making. Explain the other two.
What does Ariely mean when he says most people dont know what they want unless
they see it in context?
How would you use the concept of anchoring when pricing a new product?
What impact do defaults have on the adoption of new products?
Is it ethical to manipulate the default option?
After reading about prospect theory and reading the excerpts from Predictably
Irrational, one can easily argue that most consumers dont always make rational
decisions. As a marketer, how do you feel about using this knowledge of how
consumers make decisions to sell products? Is it exploitative? Are you tricking the
consumer? Or is it just good business?

Extra Readings:

Belsky, Gary and Thomas Gilovich (2000), Chapter 2 in Why Smart People Make Big
Money Mistakes and How to Correct Them: Lessons from the New Science of
Behavioral Economics, When Six of One Isnt Half a Dozen of the Other, pp. 5159.

Well be watching portions of Twelve Angry Men (MGM, 1957).

Part 3 (Framing, Situational Issues and Post-Decision Processes):

Readings Part 3:

Schwartz, Barry (2004), Chapter 4 in The Paradox of Choice: Why More is Less, Chapter
3, When Only the Best Will Do, pp. 77-96.

Questions Part 3:

Why do marketers care what happens after the sale?

Why is customer satisfaction important?
Why are too many choices potentially problematic for (1) consumers and (2)
marketers?
Why are too many choices more problematic for maximizers than for satisficers?
Schwartz argues that maximizers may experience anticipated regret even before
making a purchase. What can marketers do to minimize both anticipated and postpurchase regret? Would you recommend different approaches targeted towards
maximizers vs. satisficers?

Extra Readings:

Vandivier, Kermit (1972), Chapter 1, Why Should my Conscience Bother Me? in

Robert L. Heilbroner (Ed.), In the Name of Profit, Doubleday and Co., Inc., pp. 3-31.
Russo, J. Edward and Paul J. H. Schoemaker (2002), Chapter 2, The Power of Frames,
Winning Decisions: Getting It Right the First Time, pp. 19-31.
Underhill, Paco (1999), Chapters 3 and 4 in Why We Buy: The Science of Shopping,
The Twilight Zone and You Need Hands, pp. 45-59.
Brennan, Bridget (2009), Chapter 6 in Why She Buys, The Last Three Feet, pp. 242256.

Lecture 12: Social and Interpersonal Influences on Consumer Decision Making

Readings:

Thaler, Richard H. and Cass Sunstein (2009), Chapter 3 in Nudge: Improving

Decisions about Health, Wealth, and Happiness, Following the Herd, pp. 53-73.
Cialdini, Robert B. (2001), Harness the Science of Persuasion, (HBR OnPoint
Enhanced Edition), Harvard Business Review, 79 (9), 27-29.
Bughin, Jacques, Jonathan Doogan, and Ole Jorgen Vetvik (2010), A New Way to
Measure Word of Mouth Marketing, McKinsey Quarterly, Issue 2, pp. 113-116.

Questions:

Why do people follow the herd? That is, why do they conform to what others do
and/or to societys expectations?
How can marketers use the principles of persuasion you read about to persuade
consumers to comply with their requests (which are typically to buy their
product/service, but you can also think about other requests a retailer or marketing
manager might make of current or potential customers)?
When (i.e., for what types of purchases and in what types of situations) is word-ofmouth most important to consumers?
How can marketers encourage the three types of word-of-mouth described in the
article: (1) experiential, (2) consequential, and (3) intentional?
Word-of-mouth is often perceived by consumers as more reliable/trustworthy than
traditional marketing. Do you think this is objectively the case?

Extra Readings:

Cialdini, Robert B. (2007), Chapter 2 in Influence: The Psychology of Persuasion,

Reciprocation, pp. 17-24.
Cialdini, Robert B. (2007), Chapter 3 in Influence: The Psychology of Persuasion,
Commitment and Consistency, pp. 57-75.
Cialdini, Robert B. (2007), Chapter 4 in Influence: The Psychology of Persuasion,
Social Proof, pp. 114-119.

Field Project Supplement

This project provides a hands-on opportunity to understand specific consumer behaviors. In
teams comprised of 3-4 members, students will investigate a consumer issue or puzzle of your
selection. You will form your own teams. Projects can focus on public relations issues, product
and service categories, brands, media behavior, consumer segments and trends, or any other
interesting consumer behavior issue.
You should adopt a client for your project and address the specific question from that
organizations perspective. Topics need to be related to consumer behavior issues we have
discussed in class and have managerial and/or public policy relevance. You will need to focus on
basic issues of why, how, where, and when consumption takes place, rather than how many items
are consumed. The scope and sample size of the project make it similar to the type of exploratory
consumer research projects that marketing departments regularly commission and field. You will
summarize your recommendations in a report and present it in class.
Topic
The topic should meet a number of requirements:
1. It should be a consumer behavior phenomenon. It should be related to the purchase or
consumption of products, services, or ideas. It can also involve the disposition of those
products, services, or ideas.
2. It should be of managerial and/or public policy relevance. It should increase our
understanding of an aspect of consumer behavior in ways that can benefit firms, nonprofit organizations, and/or consumers.
3. It should be feasible. You should be able to examine the issue in a reasonable period of
time, using a methodology with which you are familiar.
Process
The project will proceed in several steps:
1. Select a team.
Please start talking to people in class right away about potential field project topics and team
composition. You will sign up for teams (including a team number, which determines when
you present) at the end of class on Wednesday, January 11. Each team should plan on being 4
members. This will be your field team for the entire module you may not get a divorce!
2. Meet with me.
No later than 3 PM on Thursday, September 6, you will need to schedule a brief meeting to
discuss your idea. The meeting will be held outside of class time, so please plan accordingly.
3. Submit research proposal
By Tuesday, September 11, submit a short research proposal, describing the topic you are
interested in. The proposal should:

Explain the issue that you would like to investigate. First, frame your issue or topic in
terms of one overall umbrella research question (e.g., what are consumers
attitudes towards remanufactured products?). Then break the big question down into
key sub-questions (e.g., do attitudes differ by product category?, do attitudes differ
by whether the individual considers him/herself environmentally conscious?)
Identify the client for whom these research questions will be relevant. This is the
client for whom you will develop insights based on the findings of your research. (I
will try to help you.)
Briefly review what the field knows so far about this topic. This should be based on
outside readings you have done (see Appendix III for sources available to you and
others that are relevant). Please reference a few (3-5) key resources (i.e., articles,
books, etc.) that you utilized most and that best reflect your thinking at this point.
Make a preliminary proposal about what your research will look like (everyone
should plan on data collection -- see Appendix for details).

Address these issues, using no more than two pages. The more precise you can be in
organizing your thinking and explaining your intentions, the easier it is for me to give you
feedback and help you with the project. But, remember, its only a proposal, and significant
details will emerge and evolve over time.
4. Feedback
I will provide feedback to your team after reading your proposal. However, there will
probably be many more questions we will need to discuss. I expect you to meet with me
outside class to discuss your project, particularly when it comes to your research design and
analyses. The amount of feedback you want throughout the module is up to you. I am happy
to make myself available to you at all stages of the project, from the proposal through final
analyses and implication development. It is up you how much you choose to take advantage
of me as a resource.
5. Field work
Conduct the empirical part of the project. Note that there are many approaches you can use to
answer your questions (a brief summary of different techniques is provided at the end of this
handout in the appendix). The method you decide to use should be compatible with the topic
of your project and the questions you are trying to address..
I highly recommend that for projects where little is understood, that you include an initial
exploratory phase (e.g., a focus group or a series of depth interviews) and then follow up
with a subsequent more quantitative phase that allows you to make descriptive statements
(e.g., a survey) or statements about causality (e.g., an experiment). Excellent projects tend to
evolve, using the results of the exploratory research to shape the more descriptive and causal
research. You dont have a lot of time though, so the sooner you develop the idea and receive
approval, the faster you can get started.

6. Data analysis and Development of Implications for Marketing Managers and/or Public
Policy
After you collect your data, you must analyze it, report the results, and discuss the
implications of your findings. This is not a trivial phase, so make sure your data collection is
complete in time to allow for a thorough and careful analysis.
7. Presentations
You will present your research project to the class during the final exam period. The
presentation should be clear and concise (about 15 minutes). The presentation will be
followed by an approximately 5 minute Q&A session. The entire class (i.e., not just me) will
rate your presentation along the following dimensions:
a. State of current knowledge
b. Your research questions/hypotheses
c. Research approach and findings
d. Implications for marketing managers and/or public policy
8. You should prepare a brief report a 3 page handout that summarizes your question(s),
method/design, results and implications to distribute at the presentation. Also include
a few (e.g., 3-5) key references that would serve as a starting point for somebody interested
in the topic.
Note that part of your individual class participation grade is determined by whether you are
there as an audience member for all presentations besides your own. I will pass out a rating
sheet for each presentation that you will put your name on and turn in at the end of each class
in which presentations are given. These evaluations will be shared with the presenting team
(with your name still on it much like evaluations in a corporate setting, these evaluations
will not be anonymous), so please be constructive.
9. Team Evaluations
You will be asked to evaluate the contribution of the other members of your team. This
evaluation will be confidential (only I will see what you write). Each team member will hand
this in to me separately on the same day your final presentations are made. Copies of the
evaluation sheet will be available on Angel for you to download and fill out.

Evaluation Criteria
The field project is worth 40% of your final grade and will be evaluated using these criteria:
1. Topic and issue fit with research design
2. Data quality (depth, extensiveness)
3. Analytic soundness (logic and support for findings and interpretations)
4. Quality of brief report
5. Quality of in-class presentation
A few additional comments
Background research
You should consult both academic and applied sources.
Journal, newspaper, and magazine articles are strongly preferred to pure web content for
two reasons:
They provide more reliable content because they have passed an editorial review
process. Anyone can post anything on a web site. Be critical!
They provide a permanent source that can be consulted by people who read your
report years from now. Web content tends to disappear.
Field research
Class members do not qualify as participants in your research project (e.g., interviewees,
focus group members, questionnaire respondents, etc.). However, other graduate students
(and undergraduate students) are OK, as are family members, friends, university staff
members, etc.
The number of observations you collect and how you spend your field time should be
appropriate given the methods you use. Most qualitative techniques make use of fewer
respondents but spend more time with each person. Quantitative techniques rely on
significantly larger samples, but tend to collect more specific and less deep information
from each respondent. It is important that you collect sufficient data given your methods
to draw informed conclusions!
Qualtrics Survey Software
If you elect to conduct an online survey, please let me know. We have access to a very
useful survey creation tool called Qualtrics. In my experience, it is much better than the
free accounts available at many websites Survey Monkey, Zoomerang because those
do not always let people access their full data, only summary statistics. We just need to
get an account set up for you.

APPENDIX: EXAMPLES OF PROJECTS

Below are examples of student projects for similar assignments. Note that these are just
illustrations of the kind of questions you may want to address and what methodologies you
could think about to address them. Obviously, you should not choose one of these examples
as your topic!

Effect of music in advertising: Examined the effects of obscure music versus pop music
on advertising recall. Pretested music to identify familiar and unfamiliar music for target
population (exploratory). Then developed an experiment in which a car ad was paired
with different types of music and a control condition with no music.

Consumer perceptions of and preferences for wine closures: Examined consumers

perceptions of different types of wine closures (e.g. screw top, cork, etc.) on both voiced
and revealed preferences. (Focus group followed up with consumer survey and blind taste
test).

Neutrogena for men: Studied consumers' reactions to a new Neutrogena product line for
men. Made recommendations for positioning the new product line to attract male
consumers without alienating the female market. (Depth interviews and focus group,
followed up with consumer survey).

Preference for Store Brands (aka Generics) across Product Categories: Studied whether
consumers are differentially interested in buying store brands across hedonic and
utilitarian product categories. (Initial depth interviews and observational research
photographing consumers pantries and refrigerators, followed up with conjoint analysis
to determine likelihood of buying store brands vs. national brands across hedonic vs.
utilitarian food categories).

Attitudes towards Body Grooming: Studied male consumers attitudes towards body
grooming (defined as hair removal below the neck), focusing on their attitudes towards a
new body grooming tool from Braun called the Body Cruzer. Would attitudes differ for
men in a relationship (whose attitudes were shaped by their romantic partners) vs. not.
(Initial focus group followed by consumer survey).

OVERVIEW OF RESEARCH METHODS

In an ideal world, all projects would include an initial exploratory phase (e.g., a focus group or a
series of depth interviews) and then a subsequent more quantitative phase that allows you to
make descriptive statements (e.g., a survey) or statements about causality (e.g., an experiment). I
realize that with the time being short during the semester, doing both is probably not feasible.
We will discuss many different research methods this Module. The methods shown in the
following table are most feasible for the scope of this project. I would encourage you to consider
an experimental design that will enable you to uncover causal relationships.

Qualitative
Exploratory
Generate ideas

In-depth interviews
Focus groups

Quantitative
Observational research
(in-store or in-home)

Descriptive
Generate numbers &
relationships

Surveys

Causal
Assesses Cause-Effect
relationships

Experiments

The most important criterion for selecting a research method is that it should be compatible with
the topic. The appropriate research method depends on the question you are trying to address.
A brief overview of these methods follows (with more information in the Methods to Study
Consumer Behavior Lecture).

Exploratory Methods:
o Depth interviews - Talk to people
Construct interview questions based on the literature review and your own insight
into the problem.
Conduct detailed interviews with a limited number of representative consumers.
Ask predetermined questions, but allow participants to bring up new issues
themselves (remain open to perspectives that have not been considered earlier).
Can also conduct ZMET into a longer depth interview.
Interpret results using relevant literature as well as your own common sense.
Summarize findings, draw conclusions.
o Focus Groups Have people talk to each other

Select discussion points based on the literature review and your own insight into
the problem.
Bring together 5 to 10 representative and relevant consumers.
Moderate the discussion: make sure that the discussion points you have identified
earlier are all covered, but stay open to alternative perspectives you had not
considered earlier.
Interpret results using relevant literature as well as your own common sense.
Summarize findings, draw conclusions.
o Observation Observe consumers in the marketplace or in their homes

Select observation locations, observation times, and relevant consumer behavior

discussion points based on the literature review and your own insight into the
problem.
If you wish to conduct in-store observations, it is very important that you get
permission to do so from the store manager first. I am happy to assist with this if
you run into difficulties.
Observe as many consumers as you judge necessary to be able to generalize your
findings.
Make sure you carefully note the behaviors you had judged relevant in advance,
but stay open to other relevant behaviors that you hadnt considered earlier.
Interpret results using relevant literature as well as your own common sense.
Summarize findings, draw conclusions.

Quantitative Descriptive and Causal Methods:

o Survey Administer a questionnaire (on-line or via paper and pencil)

Identify relevant concepts consumer knowledge, motivations, attitudes, beliefs,

intentions, or behaviors based on the literature review and your own insight into
the problem, as well as the results of the exploratory phase of your research.
Construct a questionnaire in which you measure these concepts.
Administer this questionnaire to a representative and relevant group of
consumers. Make sure your sample size is large enough to draw conclusions.
Analyze your findings.
Interpret results using relevant literature as well as your own common sense,
typically using descriptive statistics (means, frequencies, etc.) and correlations.
Summarize findings, draw conclusions.
o Experimental Research Manipulate X and see if it influences Y

Identify relevant relationships that you want to study based on the literature
review and your own insight into the problem, as well as the results of the
exploratory phase of your research.
Identify independent and dependent variables.
Operationalize the independent variable: find a way of manipulating the
independent variable in your experiment.
Choose a way of measuring the dependent variable (e.g., using an online or paper
and pencil questionnaire).
Recruit participants. (I can help you if you hope to do this.)
Carry out the experiment.
Analyze your findings.
Interpret results using relevant literature as well as your own common sense. Use
descriptive statistics and/or additional analysis (e.g., regression, ANOVA) as
needed.
Summarize findings, draw conclusions.

REFERENCE SOURCES
From our class readings you already have a good idea about the journals, magazines, and
newspapers relevant for marketers. Below is a list of sources, academic and more applied, that
you should look into when doing your background research.
Academic Journals (there are MANY other academic marketing journals, but I would prefer
you to stick to this set of journals that are fairly universally considered to be high quality):

Journal of Consumer Research

Journal of Consumer Psychology
Journal of Marketing
Journal of Marketing Research
Journal of Public Policy & Marketing
Journal of Retailing
Marketing Letters
International Journal of Research in Marketing
Journal of the Academy of Marketing Science

Non-academic (applied) Journals, Magazines, and Newspapers:

Adweek
Advertising Age
Brand Week
Business Week
Forbes
Harvard Business Review
McKinsey Quarterly
The Economist
The New Yorker
The Wall Street Journal
The New York Times

You may also find the popular press books listed in the syllabus helpful.