MKTGGB.2347.

30CONSUMERBEHAVIOR Spring2013 NewYorkUniversitySternSchoolofBusiness

ProfessorTomMeyvis Tuesday,6:00pm9:00pmKMC4120 Office:Tisch815 Phone:(212)9980529 EMail:tmeyvis@stern.nyu.edu OfficeHours:Monday/Wednesday,2:004:00,andbyappointment

CourseGoals Weareallconsumers.Webuygroceries,computers,andcars.Wepurchaseservices rangingfrombankaccountstocollegeeducations.However,wealsodifferfromeach other.Webuydifferentclothes,drivedifferentcars,andeatatdifferentrestaurants. Eventhesameconsumercanmakedifferentdecisionsdependingonthesituation.So howarewetoconstructcoherentmarketingstrategies? Inthisclassweexaminewhyconsumersbehavethewaythattheydo.Wewillexplore ourintuitionsaboutourownbehavior,learnabouttheoriesdevelopedinmarketing, psychology,andsociology,andusethesetheoriestopredicthowconsumerswill respondtomarketingactions. Thegoalsofthisclassareto: acquireknowledgeof: o aframeworkforanalyzingconsumerbehaviorproblems o relevantpsychologicalandsociologicaltheories o methodsforstudyingconsumerbehavior learntoapplythisknowledge: o tomeasurewhatconsumersbelieveandwant o topredicthowconsumerswillreacttodifferentmarketingstrategies o tosolverealworldconsumerbehaviorproblems

CourseResources RequiredCoursePacket (availablethroughtheNYUBookstore) Cases: 1. BostonBeerCompany:LightBeerDecision(HBS9899058) 2. ClaiborneAsksWebSurferstoNameNewLine(HBS9500055) 3. LOrealofParis:BringingClasstoMasswithPlenitude(HBS9598056) 4. SonyAIBO:TheWorld'sFirstEntertainmentRobot(HBS9502010) 5. Starbucks:DeliveringCustomerService(HBS9504016) 6. TiVoin2002(HBS9502062) 7. NandaHome:PreparingforLifeafterClocky(9511134) 8. GilletteFusion:Buildinga$1BillionBrand(Kellogg0841) 9. RenovaToiletPaper:AvantGardeMarketinginaCommoditizedCategory (INSEAD07/20105685) Articles: 1. Blakeslee,S.,IfYourBrainHasaBuyButton,WhatPushesIt?TheNewYork Times,Oct19,2004. 2. North,A.C.,D.J.Hargreaves,&J.McKendrick,InStoreMusicAffectsProduct Choice,Nature,390,Nov.1997. 3. Gourville,JandD.Soman,PricingandthePsychologyofConsumption,Harvard BusinessReview,2002(#1814) 4. Watts,D.,IsJustinTimberlakeaProductofCumulativeAdvantage?,TheNew YorkTimesMagazine,April15,2007. 5. ThetyrannyofChoice,TheEconomist,December16,2010. 6. Dolan,R.AnalyzingConsumerPerceptions,HarvardBusinessSchool#599110. 7. Simonson,I.Getclosertoyourcustomersbyunderstandinghowtheymake choices,CaliforniaManagementReview,Summer,1993(pp6884). 8. Salganik,M.J.,P.S.Dodds,&D.J.Watts,Experimentalstudyofinequalityand unpredictabilityinanartificialculturalmarket,Science,2006,Vol.311,pp.854 856. 9. Hsee,C.K.&R.Hastie,Decisionandexperience:Whydontwechoosewhat makesushappy?,TrendsinCognitiveSciences,Vol.10(1),2006,3137. 10. Duhigg,C.,Warning:Habitsmaybegoodforyou,TheNewYorkTimes,July13, 2008. 11. Gneezy,A.,U.Gneezy,L.D.Nelson,&A.Brown,Sharedsocialresponsibility:A fieldexperimentinpaywhatyouwantpricingandcharitablegiving,Science, 2010,Vol.329,pp.325327. 12. Hoch,S.J.&Y.Ha,Consumerlearning:Advertisingandtheambiguityofproduct experience,TheJournalofConsumerResearch,1986,Vol.13(2),221233.

13. Gladwell,Malcolm(2006),TheFormula,TheNewYorker,October10,2006. 14. Bertini,MarcoandJohnT.Gourville(2012)PricingtoCreateSharedValue, HarvardBusinessReview,June12012(#R1206F) 15. Spenner,PatrickandKarenFreeman(2012),ToKeepYourCustomers,KeepIt Simple,HarvardBusinessReview,June12012(#R1205G) 16. Dunn,ElizabethW.,DanielT.Gilbert,andTimothyD.Wilson(2011),Ifmoney doesn'tmakeyouhappy,thenyouprobablyaren'tspendingitright,Journalof ConsumerPsychology,21,115125. 17. Andersen,EricT.andDuncanSimester(2011),AStepbyStepGuidetoSmart BusinessExperiments,HarvardBusinessReview,March2011(#R1103H) OtherArticles&Exercises Additionalexercises,journalarticles,andrecentnewsfromthepopularbusinesspress willbeprovidedthroughoutthesemester.Thejournalarticleswillprovideyouwitha deeperinsightintoselectedtopicsandmethodsofconsumerbehaviorresearch.The businessnewsarticlesareusedtoillustratetheconceptualframeworkwithcurrentreal worldmarketingproblems.Thearticleswillbepostedontheclasswebsite. CourseWebsite http://sternclasses.nyu.edu Thiswebsitehasmanyusefulthingsonit,includingcontinuouslyupdatedinformation onassignments,readings,courseschedule,etc.Pleasecheckregularly. ClassNotes ThePowerPointslidesforeachclasswillbeavailablefordownloadingfromthewebsite andwillalsobehandedoutatthestartofclass.Note,however,thattheseslidesonly presentanoutlineoftheclassdiscussion.Youwillstillneedtotakeadditionalnotesto fullycapturethematerialdiscussedinclass. AdditionalLiterature Aspecialsectionontheclasswebsitewilllistoptionaladditionalreadingsaswellas usefullinkstoresourcesfortheteamproject.

StudentEvaluation Yourevaluationwillbebasedononefinalexam,8casestudypreparations,agroup project,andyourclassparticipation: FinalExam: 40% GroupProject: 20% CasePreparations: 20% ClassParticipation: 20% FinalExam 40% Thefinalexamwillbebasedonthelectures,classdiscussions,assignedreadings,and caseassignments.Theexamwillprimarilyconsistofshortessayquestions.Students whodonotattendthefinalexamandwhodonothaveaprioragreementwithmewill receiveazerofortheexamgrade. GroupProject 20% Asignificantpartofyourcoursegradewillbedeterminedbyateamproject.The objectiveofthisteamprojectistoexamineconsumersreactiontoanewcompany initiative.Youcanfindmoreinformationonthegroupprojectintheseparatehandout. CasePreparations 20% Youwillbeaskedtoprepare9casesforclassdiscussion.Tomakesurethatyouhave readandthoughtaboutthecasesinadvance,Iwillaskeveryonetouploada12page preparationsheetonBlackboardby10pmthedaybeforewediscussthecaseinclass. Youreightbestcaseprepswilleachcontribute2.5%towardsyourfinalgrade.Formore informationonthecasepreparations,pleaseseetheseparatehandout. ClassParticipation 20% Iexpectthatyouallrealizetheimportanceofattendingtheclasses.Attendingclassesis notoptional.Notonlywillitincreaseyourunderstandingoftheassignedreadings,but wewillalsobeaddressingmanyissuesthatarenotcoveredinthereadings.Itwillalso giveyoutheopportunitytoactivelyparticipateinclassdiscussionsandobtainabetter classparticipationgrade.Yourmerepresenceisnotsufficient.Whatmattersmoreisthe quantityand,especially,thequalityofyourcontributionstoclassdiscussions.

ClassPolicy

Beprepared:Makesurethatyouhavecarefullyreadtheassignedcasesand articles. Attendallclasses:Iexpecteveryonetoattendallclasses.Asidefrombeingan essentialpartofthelearningexperience,regularattendanceisanobvious prerequisiteforcontributingtoclassdiscussionsandreceivingagradeforclass participation.Pleasealsonotethatyouareresponsibleforknowinganychanges orassignmentsannouncedinclass. Arriveontime:Latecomersdisturbtheclass.Systematictardinesswillhavea negativeimpactonyourclassparticipationgrade. Respectassignmentdeadlines:Lateassignmentswillnotbeacceptedwithouta prioragreement. Behonest:CheatingandplagiarismwillresultinagradeofFforthe assignment/testforallpartiesinvolved.Allstudentsareexpectedtofollowthe SternCodeofConduct:http://www.stern.nyu.edu/uc/codeofconduct Laptopsandcellphonesareadisturbancetoyourfellowstudentsaswellasthe instructor.Allelectronicdevicesmustbeturnedoffpriortothestartofclass. Thisimplies: Youcannotuseyourlaptopinclass. Phonesmustbeturnedoffnotputonsilentorvibrate.