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Commerce 3MB3 Consumer Behavior

Fall 2016 Course Outline

Marketing Area DeGroote School of Business

McMaster University

COURSE OBJECTIVE

This course is designed to introduce you to key theoretical concepts in consumer behavior and build your ability to apply these concepts to real-world marketing problems.

INSTRUCTOR INFORMATION

Section 2 Section 3 Section 4 Wednesday 8:30-11:20

Friday 2:30-5:20

Monday 11:30-2:20

DSB B105 DSB B105 DSB B105 Dr. Maureen Hupfer Instructor hupferm@mcmaster.ca Office: DSB 213 Office Hours: You can drop in any time Monday, Wednesday or Friday outside of class, but it would be a better idea for you to make an appointment to be sure that I will be in my office when you want to stop by. Tel: (905) 525-9140, x24101 Course Website: This course has an Avenue learning website at http://avenue.mcmaster.ca.

COURSE ELEMENTS

Credit Value: 3 Leadership: Yes IT skills: No Global view: Yes Avenue: Yes Ethics: Yes Numeracy: Yes Written skills: Yes

Participation: Yes Innovation: Yes Group work: Yes Oral skills: Yes Evidence-based: Yes Experiential: Yes Final Exam: Yes Guest speaker(s): No

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COURSE DESCRIPTION

Theory, Business Application and Perspectives How does who do what and why? The field of consumer behavior attempts to explain and predict the ways in which consumers think and behave in given situations. How do consumers interpret advertising information? Why do people buy? Why not? Who and what are consumers relying upon for information? How can marketers predict behaviors from attitudes? How do consumers make decisions? How do we consume and dispose of products? To answer these questions, consumer behavior draws heavily on the disciplines of psychology, economics, sociology and anthropology. In this course, you will survey the relevant theory and learn how to apply these concepts to real world marketing situations. Class-time discussion of theory always will be supported with examples drawn from past and current business practices as well as consumers’ everyday lives; we will be considering the social, ethical, regulatory, environmental and technological contexts in which consumers think and act. This course has a North American emphasis but we also will be comparing and contrasting international examples with consumer behavior in Canada and the United States. This course stresses understanding, application, and generalization rather than memorization. In every field that you are studying, the body of accepted knowledge is growing and changing at an increasingly rapid rate. Because your success as a marketer will depend in part on your ability to find out about new knowledge and apply it to your own marketing problems, your performance in this course will be evaluated in terms of how well you are able to integrate textbook theory with business facts to arrive at explanations and recommendations.

LEARNING OUTCOMES

Skills-related Objectives Upon successful completion of this course, students will have acquired experience in:

• preparation for and participation in classroom discussion; • group project management; • preparation of written reports that demonstrate professionalism and proficiency in

communication; • presentation skills.

Course Content Mastery Objectives Upon successful completion of this course, students will:

• understand current psychological, sociological and anthropological theories that provide insight into consumer behavior;

• recognize which theoretical concepts are relevant to a particular decision-making context (such as a case study or discussion question), demonstrate clearly how these principles apply, and provide responses that are supported with evidence;

• be able to apply theory to address real world marketing problems.

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COURSE MATERIALS AND READINGS

Consumer Behavior: Buying, Having and Being, 6th Canadian Edition. Solomon, White and Dahl, Prentice-Hall, 2014.

We are not using the most current 7th edition in order to keep costs down for you (approximately $70-80 for a used 6th edition text versus approximately $145 for a new 7th edition text). This text is recommended but not required; the bookstore has been asked to purchase some or you also could go to Amazon or Chapters/Indigo to shop around for a lower price. The PPT notes that will be posted on Avenue will be comprehensive outlines of what is covered in class and if you add your own notes or explanations, you might not need to purchase a text. You also might consider sharing one with a friend. Keep in mind, however, that you may want one of your own for exams because both the midterm and the final are open book.

Influence: Science and Practice, 5th edition. Robert B. Cialdini, Pearson, 2009.

This text is required for your group assignment but your group could buy just one or two and share. The older edition is titled Influence: The Psychology of Persuasion. Any edition is acceptable; again, the bookstore has been asked to stock this title but you may also be able to find used copies on Amazon or Chapters/Indigo. Depending on the edition that you purchase and where you buy it from, the cost should range from less than $10 to approximately $18.

Commerce 3MB3 Courseware.

There are four items in the courseware: 1) A chapter on Canadian Identity from an earlier edition of this textbook 2) Reading for the Perrier for Pets case that we will be discussing in class. Note that the

actual questions for you to answer are posted on Avenue. 3) Reading for the first case that you will be handing in for marking (BMW Taps the

Emerging Chinese Luxury Market). Again, the actual assignment questions are posted on Avenue, as well as instructions for completing and turning in the assignment.

4) Reading for the Marketing the California Avocado case that we will be discussing in class. Note that the actual questions are posted on Avenue. This estimated price for this coursepack price is approximately $5. Note that because I wrote your second case assignment, Marketing Cosmetics to Men, I own the copyright, and so was able to post that complete document on Avenue.

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Avenue Website On this site you will find: • PowerPoint lecture outline notes. Because of copyright restrictions, I am allowed to

show you ads and other images in class but I cannot post them on Avenue. Here is our policy: “Avenue to Learn must be used in a manner which does not contravene copyright law. In particular, you must not post copyrighted material on this system, unless you hold the copyright, or have determined that the work is in the public domain or is covered by a license permitting such use, or have first obtained written permission from the copyright owner. Further information about reproducing published works and materials may be found at: http://www.copyright.mcmaster.ca.”.What I can post with your PPT notes are links to items that are in the public domain, such as television/video ads from YouTube. I also am allowed to post diagrams provided by the publisher.

• Questions for the BMW Hand-in Case 1 and instructions for completing this assignment;

• The complete case (reading and questions) for the Marketing Cosmetics to Men second hand-in case assignment as well as instructions for completing it;

• One example of a past case assignment and its marking scheme; • In-class case applications and exercises; • Sample midterm and final exams, their marking schemes and exam writing tips for both

exams; • Course documents such as this outline, group member information, and any

amendments to the course schedule; • Your marks.

EVALUATION

Components and Weights

Component

Group

Individual %

Individual Case Assignments (1@10%, 1@15%) 25.0

Cialdini Group Presentation 15.0 Participation 10.0 Midterm Exam 20.0 Final Exam 30.0 Total 100.0

NOTE: The use of a McMaster standard calculator is allowed during examinations in this course. See McMaster calculator policy at the following URL: http://www.mcmaster.ca/policy/Students-AcademicStudies/UndergraduateExaminationsPolicy.pdf

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Grade Conversion At the end of the course your overall percentage grade will be converted to your letter grade in accordance with the following conversion scheme. LETTER GRADE PERCENT LETTER GRADE PERCENT A+ 90 - 100 C+ 67 - 69 A 85 - 89 C 63 - 66 A- 80 - 84 C- 60 - 62 B+ 77 - 79 D+ 57 - 59 B 73 - 76 D 53 - 56 B- 70 - 72 D- 50 - 52

F 00 - 49

Communication and Feedback Students who wish to correspond with instructors or TAs directly via email must send messages that originate from their official McMaster University email account. This protects the confidentiality and sensitivity of information as well as confirms the identity of the student. Emails regarding course issues should NOT be sent to the Administrative Assistant. Instructors are required to provide evaluation feedback for at least 10% of the final grade to students prior to Week #8 in the term. Instructors may conduct an informal course review with students by Week #4 to allow time for modifications in curriculum delivery. Students who wish to have a course component re-evaluated must complete the following form:

http://www.mcmaster.ca/policy/Students-AcademicStudies/Form_A.pdf In order for the component to be re-read: • the component must be worth 10% or more of the final grade in the course • students pay a fee of $50 in Gilmour Hall #209 and the receipt is then brought to Student

Experience - Academic Office (formerly the APO) in DSB 112 • the Area Chair will seek out an independent adjudicator to re-grade the component • an adjustment to the grade for the component will be made if a grade change of three points

or greater on the 12 point scale (equivalent to 10 marks out of 100) has been suggested by the adjudicator as assigned by the Area Chair

• if a grade change is made, the student fee will be refunded

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Course Component Descriptions Individual Case Assignments (2) Students will complete two individual case assignments that apply textbook theory to real-world marketing situations. Further information about the specific content and expected format of these assignments is posted on Avenue.

Participation I will be taking pictures in the first class so that I can learn your names as quickly as possible. I will be assessing your participation throughout the term using a four-level grading scheme (0 = not present, 1 = present but very little or no involvement, 2 = moderate involvement, 3 = active, thoughtful commentary). Marks will be recorded on Avenue and you should be checking these postings to ensure that they are consistent with your record of attendance and degree of contribution. Requests for review or changes to these grades must be made within a week of their posting. You cannot “make up” for low participation marks. You need to attend your own section unless it is necessary to switch on occasion. If you have a good reason for switching for a particular day (e.g. job interview, doctor or dentist appointment), you should let me know in advance so that I will be prepared to adjust your attendance and participation. Priority always will be given to students who are actually registered in the section. The order of content coverage in this class is Wednesday, Friday, Monday. I will be posting your participation marks on Tuesdays after this WFM cycle is complete in case some of you had to attend a different section. Group Work: Cialdini Presentation The task here is very flexible and its primary purpose is to provide you with an incentive to read Cialdini’s book. Your group is required to produce a 15-minute presentation for the class that links the concepts discussed by Cialdini with the concepts in your textbook. You could decide to put on a skit, create a quiz, develop a game show, etc. Further information about the specific content and expected format of this assignment is posted on Avenue. There also is an example of a past presentation for you to view. I will be going that PPT in our first class to explain how this presentation worked and point out what was really well done. Think about group membership as early in the term as possible and form a group of five (groups of four or six will be considered if necessary) with people that are in your own section. Sign-up spots will be allocated on a first-come first-served basis. I expect to hear from you by email on or before Fri. Sept. 23 concerning group membership. Signup sheets for your presentation time slot will be posted on my door on Tues. Sept. 27 and the first presentation is scheduled for Week 6 (Oct. 19, 21 and 24).

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Make sure that group members arrive at mutually agreeable standards concerning how often and in what manner you will communicate and how you will ensure that you meet deadlines. Everyone needs to know about individual expectations concerning quality of work and standards of performance. Think about how you will handle situations such as differences in ability and effort. A group that contains individuals with substantial variance in individual performance standards and/or work ethics is more likely to become dysfunctional than one in which members agree on expectations from the outset. Also make sure that everyone in your group understands the meaning of academic dishonesty in all of its forms. Midterm Exam The midterm exam is “open book” and will be one hour in length. This exam will consist of a short reading with five short answer questions that will require you to apply theory to consumer behavior problems. You are responsible for material covered in class. However, specific questions about the case applications, assignments, particular videos and the Cialdini material will not appear on the exam. This exam is tentatively set for the morning or afternoon of Saturday October 29. Confirmation of the date as well as the place and time of the examination will be communicated when it is available. Final Exam (non-cumulative) The final exam also is “open book”, is non-cumulative and will be two hours in length. This exam will be the same format as the midterm except that it will have a slightly longer reading and ten short answer questions instead of five. The Office of the Registrar will post the time, date and location near the end of the term.

ACADEMIC DISHONESTY

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

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It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at;

www.mcmaster.ca/academicintegrity

The following illustrates only three forms of academic dishonesty: 1.Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained; 2.Improper collaboration in individual work; 3.Copying or using unauthorized aids in tests and examinations. In this course we will be using a web-based service (Turnitin.com) to reveal plagiarism. Students will be expected to submit their work electronically to the Avenue DropBox with the Turnitin.com feature so that it can be checked for academic dishonesty. Students who do not wish to submit their work to Turnitin.com must still submit a copy to the instructor. No penalty will be assigned to a student who does not submit work to Turnitin.com. All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.). To see the Turnitin.com Policy, please go to;

http://www.mcmaster.ca/academicintegrity/turnitin/students/ As noted, in this course we will be using Avenue to Learn. Students should be aware that when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure, please discuss this with the course instructor.

REQUESTING RELIEF FOR MISSED ACADEMIC WORK

Students may request relief from a regularly scheduled midterm, test, assignment or other course component in the following ways: a) for absences from classes lasting up to three (3) days; or b) for absences from classes lasting more than three (3) days c) for conflicts arising from Student Experience - Academic Office approved events a) for absences from classes lasting up to three (3) days:

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Students must use the MSAF (McMaster Student Absence Form). This is an on-line, self-reporting tool, for which submission of medical or other types of supporting documentation is normally not required. Students may use this tool to submit a maximum of one (1) request for relief of missed academic work per term as long as the weighting of the component is worth less than 25% of the course weight. Students must follow up with their course instructors regarding the nature of the relief within two days of submitting the form. Failure to do so may negate the opportunity for relief. It is the prerogative of the instructor of the course to determine the appropriate relief for missed term work in his/her course. Details are described below. If the value of the component is worth 25% or more, students must report to their Faculty Office (the Student Experience – Academic Office for Commerce students) to discuss their situation and will be required to provide appropriate supporting documentation. Please visit the following page for more information about MSAF: http://academiccalendars.romcmaster.ca/content.php?catoid=13&navoid=2208#Requests_for_Relief_for_Missed_Academic_Term_Work b) for absences from classes lasting more than three (3) days Students cannot use the MSAF. They MUST report to their Faculty Office (the Student Experience – Academic Office for Commerce students) to discuss their situation and will be required to provide appropriate supporting documentation. Students who wish to submit more than one request for relief of missed academic work per term cannot use the MSAF. They must report to the Student Experience – Academic Office and discuss their situation with an academic advisor. They will be required to provide supporting documentation and possibly meet with the Manager. c) for conflicts arising from Faculty Office approved events Students unable to write a mid-term at the posted exam time due to the following reasons: religious; work-related (for part-time students only); representing university at an academic or varsity athletic event; conflicts between two overlapping scheduled mid-term exams; or other extenuating circumstances, have the option of applying for special exam arrangements. Please see the DeGroote Missed Course Work Policy for a list of conflicts that qualify for academic accommodation:

http://ug.degroote.mcmaster.ca/forms-and-resources/missed-course-work-policy/

Such requests must be made to the Student Experience – Academic Office at least ten (10) working days before the scheduled exam along with acceptable documentation. Non-Commerce students must submit their documentation to their own Faculty Office and then alert the Student Experience – Academic Office of their interest in an alternate sitting of the midterm. Adjudication of all requests must be handled by the Student Experience – Academic Office. Instructors cannot allow students to unofficially write make-up exams/tests.

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The MSAF cannot be used during any final examination period. If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for that component.

POLICY FOR APPROVED MISSED ACADEMIC WORK

Students who cannot write a test, and have advanced knowledge and permission as described above, will be given the opportunity to write an alternate version of the test at an alternate time. Students who did not write a test, and subsequently provide an MSAF submission, or documentation for which they have been approved by the Student Experience – Academic Office, will have the weight of the missed work reallocated across other course components or an alternate evaluation. The student must follow up with the instructor to understand this process and decision. Students who submit an MSAF, or have been approved by the Student Experience – Academic Office, for an assignment deadline, will be given an extension for the assignment at the discretion of the instructor. Please note, the student will ultimately be required to submit the assignment.

STUDENT ACCESSIBILITY SERVICES

Student Accessibility Services (SAS) offers various support services for students with disabilities. Students are required to inform SAS of accommodation needs for course work at the outset of term. Students who require academic accommodation must contact Student Accessibility Services (SAS) to make arrangements with a Program Coordinator. Academic accommodations must be arranged for each term of study. Student Accessibility Services can be contacted by phone 905-525-9140 ext. 28652 or e-mail sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation of Students with Disabilities:

http://www.mcmaster.ca/policy/Students-AcademicStudies/AcademicAccommodation-StudentsWithDisabilities.pdf

POTENTIAL MODIFICATIONS TO THE COURSE

The instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with the students will be given with explanation and the opportunity to comment

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on changes. It is the responsibility of the student to check their McMaster email and course websites weekly during the term and to note any changes.

ACKNOWLEDGEMENT OF COURSE POLICIES

Your registration and continuous participation in the various learning activities of Commerce 3MB3 (e.g. on Avenue to Learn, in the classroom, etc.) will be considered to be an implicit acknowledgement of the course policies outlined above, or of any other that may be announced during lecture and/or on Avenue to Learn. It is your responsibility to read this course outline, to familiarize yourself with the course policies and to act accordingly. Lack of awareness of the course policies cannot be invoked at any point during this course for failure to meet them. It is your responsibility to ask for clarification on any policies that you do not understand.

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Commerce 3MB3 Consumer Behavior

Fall 2016 Course Schedule This schedule is subject to change if necessary. Instead of adherence to the text’s organization, we will be following a framework that first places consumers in a broader social and cultural context, then examines consumers within smaller reference groups as well as their families. Next, consumers are discussed as individuals and the course finishes with additional strategy implications. Recommended readings for each class are indicated below. We will not cover everything in the textbook. However, I often add material for each week’s class that is not included in the textbook when I think that it is important. In addition to being ready to discuss the week’s content, you also should be prepared to work on in-class exercises (posted on Avenue) and in-class case applications (posted on Avenue). You also will need to be prepared for one longer case discussion at the beginning of the term (Week 3) to prepare you for analyzing written consumer behavior case material (“Perrier for Pets”). This case is in your coursepack and the questions are posted on Avenue. There is an additional longer case discussion (“Marketing the California Avocado”) in Week 9. This case also is in your coursepack with questions posted on Avenue. All of your in-class exercises and in-class case applications will be posted on Avenue in advance of class so that you can read them and print them yourselves if you want hard copy. I also will bring some copies to class for students who neglect to do this. Week Dates (W, F, M) Content

1 Sept. 7, 9, 12

Chapter 1 (course overview) Chapter 14: Cultural Influences on Consumer Behavior

In-class case application: Eat and Run (on Avenue)

2 Sept. 14, 16, 19 Chapter 15: The Creation and Diffusion of Culture

In-class case application: Let the Robot Pick it Up (on Avenue) Courseware: Canadian Identity and Ethnic Subcultures

3 Sept 21, 23, 26

Case Discussion: Perrier for Pets (case in courseware, questions on Avenue) Chapter 12: Income, Social Class and Family Structure (note that we will only cover Income and Social class this week) Chapter 13: Subcultures (we only will cover Age in this chapter) Chapter 11: Group Influence and Social Media

In-class exercise (on Avenue) Fri. Sept. 23 Notification of group membership due by email

4

Tues. Sept. 27 Signup sheets for Cialdini presentation posted on my door (DSB 213) at 10:30 am

Sept. 28, 30, Oct.3

Continue Chapter 11: Group Influence and Social Media In-class case application: No One Buys No Name Trainers (on Avenue)

Chapter 12: Income, Social Class and Family Structure (we will only cover Family Structure this week)

In-class exercise (on Avenue)

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5

Oct. 5, 7, 17

Chapter 2: Perception Chapter 3: Learning and Memory

In-class case application: The Pitfalls of Reinforcement (on Avenue)

Thurs. Oct. 6 Case Assignment 1 due 4:30 p.m

Oct. 10-Oct. 14

Midterm Recess: Enjoy!

6 Oct. 19, 21, 24 Chapter 3, continued Midterm Exam Format and Review CIALDINI #1

7 Oct. 26, 28, 31 Chapter 4: Motivation and Affect

In-class exercise (on Avenue) Chapter 5: The Self

Sat. Oct. 29 Tentative date for Midterm Exam (morning or afternoon requested)

8 Nov. 2, 4, 7

Chapter 5, continued In-class case application: Is There Such a Thing as Women’s Toothpaste? (on Avenue)

Chapter 6: Personality and Lifestyle In-class exercise (on Avenue)

CIALDINI #2 CIALDINI #3

9 Nov. 9, 11, 14

Case Discussion: Marketing the California Avocado (case in courseware, questions on Avenue) Chapter 7: Attitudes

In-class exercise (on Avenue) Chapter 8: Attitude Change and Interactive Communications CIALDINI #4

10 Nov. 16, 18, 21 Chapter 8, continued Chapter 9: Individual Decision Making CIALDINI #5

11

Tues. Nov. 22 Case Assignment 2 due 4:30 p.m.

Nov. 23, 25, 28

Course Evaluations Chapter 9, continued

In-class exercise (on Avenue) Chapter 10: Buying and Disposing CIALDINI #6 CIALDINI #7

12 Nov. 30, Dec. 2, 5

Chapter 10, continued CIALDINI #8 CIALDINI #9 Final Exam Review

13 Dec. 7 NO CLASS!