CONSUMER BEHAVIOR. Course Facts: Course Description: Academic Year: 2015/2016 Semester: 3rd Instructor: Daniel von der Heyde Fernandes
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1 CONSUMER BEHAVIOR Academic Year: 2015/2016 Semester: 3rd Instructor: Daniel von der Heyde Fernandes Course Facts: Course structure: Combination of plenary lectures and plenary case and paper discussions Course schedule: Thursday from 2:00 to 5:00 Grades: Exam (60%). Group work (40%). See below. Course Description: Understanding consumers is important to every business. However, consumers minds are not always easy to understand. This course provides an overview of theories that best explain how consumers arrive at their judgments and choices. The course will review important theories in economics and psychology that provide the foundation for behavioral marketing. This course will then apply these theories and principles to real-world marketing problems. Consumer behavior is influenced by many factors such as whether the market is retail or online, whether the consumer is a woman or a man, whether the product is hedonic or utilitarian... Students will be provided with an introduction to the psychology of perception, information processing, emotions and decision-making. This course will also examine the influences of the social environment, culture and situational factors on consumer behavior. The goals of this course are for you to be able to: (a) explore consumer behavior concepts by integrating and adapting theories developed in psychology and economics, (b) develop the ability to apply the theories discussed in class to common marketing problems, and (c) develop a set of skills important to successful performance in managerial positions. These include managing a research project, working successfully in a team, and improving your oral and written communication skills. In particular, we aim to generate in class the idea for a study. In session 5, students (in groups of 5) will meet with the professor to develop a research study. The outcome of this meeting will be an idea for a study that relates to the readings, e.g., a new study designed to extend the material discussed in class or to integrate it. At the end of the course (two weeks after the exam), the groups are responsible for delivering an approximately 5 to 10 (double-spaced) report specifying the research question, why it is important, a brief overview of the proposed design (e.g., the independent and dependent variables), the hypotheses and the findings.
2 Course Content: Consumer behavior topics include needs and motives, personality, perception, learning, attitudes, emotions and social/cultural influence. The standard economic model assumes that human behavior is determined by rationality. However, oftentimes the behavior of people deviates from rationality. This course will explain how attention/perception, memory, emotions, social norms, and other forces shape our behavior. About three-fourths of the time will be spent on the presentation and discussion of theories, concepts, tools, and empirical findings through lecture and class discussion. Lectures and class discussions are often accompanied by assigned articles and notes. It is important that you read and study the materials. The readings contain materials that I and other scholars think it is important for students to read. But I honestly don t expect that you will be able to read all that in the two months period of the course. Therefore, I will assign obligatory and supplementary readings. It is important to note, however, that what I discuss in class is not just a summary of what s in the obligatory readings. The lectures contain a lot of information (and provide structure) that is in the supplementary readings. So it s important that you participate in class and that you read at least the obligatory the materials. All the readings are available online and the links provided below. The remaining fourth of the time will be devoted to analysis and discussion of a particular paper or case. This will help you prepare for the group work. Each week we will discuss a new topic influenced by research from a social science discipline. The first 2 hours will be spent discussing background material. The remainder of the class session will be spent discussing 3-6 papers from the consumer research stream. The goal is to help you understand how (1) how basic social science research and consumer research differ, (2) how theories and concepts are applied, adapted, constrained, and combined when applied to consumer issues, and (3) how research streams evolve over time. Students will be asked to read one or two papers per week so that they can get a flavor for the type of research that is being conducted in an area. Grading: Evaluation of performance will be based on the group work (40%) and on the exam (60%). EXAM The exam consists of a mix of multiple choice and open-ended questions. The best way to prepare for the exam is to participate in class. GROUP WORK After the fourth class, each group (of 5 students) will discuss with the professor a research study to be conducted based on the classes and readings. In the remainder of the course, students will be required to conduct the proposed research. Evaluation will be based on the whole process of coming up with the idea, testing, and reporting it.
3 Bibliography: Week, Classroom Topic, and Readings First week: Introduction to the scientific study of consumer behavior First part: Introduction to consumer behavior and to experiments Second part: Irrational behaviors Obligatory Reading: Hammond, J. S., Keeney, R. L., and Raiffa, H. (1998). The Hidden Traps in Decision Making. Harvard Business Review, 84 (1), p Supplementary Reading: Anderson, E. T., and Simester, D. (2011). A Step-by-Step Guide to Smart Business. Harvard Business Review, March, p Supplementary Reading: Iyengar, S. S., and Lepper, M. (2000). When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology, 79 (6), Second Week: Cognitive factors of consumer behavior First part: Attention and perception Second part: Memory and learning Obligatory Reading: Fernandes, D., Puntoni, S., van Osselaer, S. and Cowley, E. (2015). When and why we forget to buy. Journal of Consumer Psychology, forthcoming. Supplementary Reading: Sweldens, S., van Osselaer, S., and Janiszewski, C. (2010). Evaluative conditioning procedures and the resilience of conditioned brand attitudes. Journal of Consumer Research, 37 (3), Supplementary Reading: Danziger, S., Levav, J., and Avnaim-Pesso, L. (2011). Extraneous factors in judicial decisions. Proceedings of the National Academy of Sciences, 108, Third week: Social factors of consumer behavior First part: Social influence Second part: Motivation Obligatory Reading: Ward, M. K. and Dahl, D. W. (2014). Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers Desire for the Brand. Journal of Consumer Research, 41 (3),
4 Supplementary Reading: Louro, M. J., Pieters, R., and Zeelenberg, M. (2007). Dynamics of multiple goal pursuit. Journal of Personality and Social Psychology, 93, Supplementary Readings: Kivetz, R., Urminsky, O., and Zheng, Y. (2006). The goal-gradient hypothesis resurrected: Purchase acceleration, illusionary goal progress, and customer retention. Journal of Marketing Research, 43, Fourth week: The science of persuasion First part: Persuasion Second part: Emotions Obligatory Reading: Cialdini, R. (2001). Harnessing the science of persuasion. Harvard Business Review, 79 (9), Supplementary Reading: Laran, J., Dalton, A., and Andrade, E. (2011). The Curious Case of Behavioral Backlash: Why Brands Produce Priming Effects and Slogans Produce Reverse Priming Effects. Journal of Consumer Research, 37 (April), Supplementary Reading: Laran, J., and Tsiros, M. (2013). An Investigation of the Effectiveness of Uncertainty in Marketing Promotions Involving Free Gifts. Journal of Marketing, 77 (March), Fifth Week: Individual and cultural differences. First part: Individual differences Second part: Cultural differences Obligatory Reading: Fernandes, D., and Mandel, N. (2014). Political conservatism and varietyseeking. Journal of Consumer Psychology, 24 (1), Supplementary Reading: Berger, J., and Heath, C. (2007). When consumers diverge from others: Identity signaling and product domains. Journal of Consumer Research, 34, Supplementary Reading: De Langhe, B., Puntoni, S., Fernandes, D. and van Osselaer, S. (2011). The anchor contraction effect in international marketing research. Journal of Marketing Research, 48 (2), Sixth Week: Course revision. This class will not have new content. We will make a summary and closure of the course.
5 Biography: Daniel Fernandes obtained his master s degree in 2008 in Business Administration at UFRGS in Brazil. During his bachelor and master s studies, he worked as a marketing manager and consultant. In 2008, Daniel started his PhD research in Marketing at Erasmus University. Daniel s research interest centers on consumer behavior and decision-making. He presented his research at various international conferences and published in the Management Science, the Journal of Marketing Research, the International Journal of Research in Marketing, and the Journal of Consumer Psychology. He was a visiting research scholar at the Colorado University in From September 2013, he serves as an Assistant Professor in Marketing at Católica- Lisbon School of Business and Economics. Contact(s) and Office hours: The best source of answers to many questions is in-class participation. However, if you still have doubts or if you didn t have the opportunity to clarify something, you should never hesitate to contact me. The best way to contact me is by (daniel.fernandes@ucp.pt). My office hours are after class on Fridays from 2 to 3 pm. I do not use a Discussion Forum on moodle.
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