Faculty
Professor Petia K. Petrova
Objectives
This course is designed to provide knowledge of:
1) the psychological foundations of consumer behavior
2) the mechanisms of influence that are most likely to lead consumers to change their attitudes, their beliefs, and, most importantly their actions
3) how to engage these mechanisms in building persuasive communications
The focus of this class will be on the scientific research (of behavioral scientists from multiple disciplines) that illuminates the psychological processes underlying consumer behavior. Along with its implications for designing effective marketing communications, the course will provide broader practical knowledge on how to create and sustain change in business settings.
Course Format:
1) Lecture/Discussion
A portion of each class will consist of a period devoted to a lecture by the instructor on the topic of the session, coupled with a class discussion of the reading material assigned for that session.
2) Group Exercises
On several occasions participants will be asked to work in groups to craft a solution to a problem provided by the instructor. The group will be asked to employ the solution insights learned from the lecture/discussion and assigned reading of the week. Each team should be prepared to present its solution to the class as a whole.
3) Group Project
Groups will collaborate on an informational campaign designed to attack a marketing problem of team members’ choosing. The term “marketing” is used in its broadest sense here and is intended to include the marketing of products, services, or ideas to audiences both internal and external to an organization in any of a variety of contexts.
Please Note: Students need to form groups of 4 to 5 members by the end of the second week and will need to send an email to Marisue Valentine with the names of the group members.
Requirements
Classroom participation.Verbal interaction in the discussion and activities of the session is a crucial way to benefit from the course. Your grade will be influenced by the quality of that interaction, which in turn will be determined by the extent to which your comments are relevant to the topic at hand, constructive, timely, insightful, and judicious in their frequency (i.e., neither too many nor too few).
Personal accounts. On several occasions you will be asked to prepare a 1-2 paragraph account of how the psychological principles discussed in the readings for the week operated in a particular consumer setting of your choice. You can choose between one of the following three options.
1) report an experience in your business history demonstrating how the principle operated in a consumer setting.
2) report an experience that you had as a consumer relevant to the action of the principle.
3) describe a specific marketing practice reported in the press that demonstrates an application of the principle. (If you choose this option, you need to bring a copy of the article.)
Regardless of the option you choose, the account should describe the setting, relevant circumstances, and the way in which you used the principle or observed the principle being used in the situation to affect the outcomes there.
The assignment will be evaluated using the following criteria:
1) To what extent does the account provide an example of a novel and creative way in which these principles could be applied effectively?
2) To what extent does the account explain how and why the described psychological principle affected the observed outcomes or is expected to affect the outcomes in the situation?
3) Is the assignment completed on time? To facilitate class discussion, assignments should be dropped in the corresponding folder by 4 PM on the day before class.
Group exercises. During several of the class sessions you will work on a group exercise that would require applying the material learned in class.
Final group project. Toward the end of the term, each team will make an oral presentation of its solution to the marketing problem it selected at the beginning of the term. At the time of the oral presentation, teams will also be required to submit a paper that details the chosen problem and describes the selected procedures in terms of the psychological concepts covered in the course. The paper (and oral presentation) should also include a plan for measuring the success of the proposed attack on the problem. Page limit of the paper: 15 double-spaced pages not including references and appendices.
Group projects will be graded based on the following criteria.
1) To what extent does the paper adequately describe the target, features of the campaign, and the rationale for the selected strategies?
2) To what extent does the described campaign engage the concepts covered in the course? To what extent these concepts are engaged in a creative way?
3) To what extent does the paper explain how and why the psychological processes engaged in the campaign are expected to affect the outcomes?
4) Is there an adequate plan for measuring success of the proposed campaign?
Example of an outline
Please use as a guideline and fell free to modify it to fit your specific campaign.
Setting
Describe the setting in which you will conduct the marketing campaign and provide a brief analysis of the current situation. Depending on your specific campaign, you may provide general information about the industry, a general issue or problem, and other background information that is important for evaluating the campaign.
Objectives
What is the overall goal of the campaign?
Target
Who is the main target of the campaign?
Consumer insights
Describe marketing research that would be appropriate to conduct in order to learn more about the target consumer.
What would be a possible outcome of such research and how would you use it in building your marketing campaign?
General strategies
Describe the general strategies of the campaign.
Provide rationale for choosing those strategies focusing on their impact of consumers’ behavior. What are the specific actions that you plan to undertake and messages that you will communicate to the selected target audience?
Explain how and why the psychological processes engaged in the campaign are expected to affect the outcomes.
Implementation plan
How you will reach the target audience and implement the proposed strategies?
Evaluation plan
Describe your strategy for evaluating the campaign's impact on the intended audience.
Materials
Required reading:
1. Course Packet
The course packet contains chapters from the following sources:
Consumer Behavior, Third Edition, 2004, Hoyer/MacInnis, ISBN: 0-618-26482-5
Consumer Behavior and Managerial Decision Making, Second Edition, 2002, Frank R. Kardes, ISBN: 0-13-091602-1
Consumer Behavior - Buying, Having, and Being , Seventh Edition, 2007, Michael R. Solomon, ISBN: 0-13-218694-2
In addition, the course packet contains articles from sources such as Harvard Business Review, Sloan Management Review, and AdWeek.
2. Influence: Science and Practice, Fourth Edition, Robert B. Cialdini, ISBN:0-321-01147-3
Since a large portion of the reading material will be in the course packet, the Influence book will be the only book you will need to purchase if you don’t already own. The book is available at the Dartmouth Bookstore or Wheelock Books. We will use Influence as a framework for discussing 1) some of the basic concepts and psychological principles that will be studied in this course, 2) more recent scientific research into the mechanisms that drive consumer behavior, and 3) specific ways of implementing this knowledge and generating change.
3. Additional readings will be available as electronic links in the Tuckstreams Syllabus marked with an asterisk (*) in the schedule.
Optional Readings:
1. Why We Buy: The Science of Shopping, Paco Underhill, 1999
2. The Tipping Point, Malcolm Glawell, 2002
3. The Anatomy of Buzz, Emanuel Rosen, 2002
These books are on reserve at the Feldberg Library.
Honor Code:
In general, group discussion is encouraged for class preparation and assignments, but, ultimately, any work to which you put your name must reflect your understanding of the material.
Attendance Policy:
Much of the learning in this course will occur in class. Therefore, attendance at all class sessions is expected, and you cannot “make up” class participation with written work. Except in an unforeseen emergency, I expect to be informed beforehand if you need to miss a class. Please note that missing more than two class sessions for unexcused reasons (i.e., reasons other than family emergency, illness, or religious observance) will entail a grade penalty over and above the direct impact on class participation.
Grading
Classroom Participation 20%
(20 points)
Personal Accounts 30%
(30 points, 5 points each)
In Class Exercises 20%
(20 points, 5 points each)
Final Group Project 30%
(30 points)
Schedule
WEEK 1:
Mar 26, 27
Chapter 1 “Understanding Consumer Behavior” Consumer Behavior, Third Edition, Hoyer/MacInnis
Chapter 1 “The Scientific Study of Consumer Behavior” Consumer Behavior and Managerial Decision Making, Second Edition, Frank R. Kardes
Chapter 2 “Developing and Using Information about Consumer Behavior” Consumer Behavior, Third Edition, Hoyer/MacInnis
“Digging Deeper into Consumers’ Minds and Lives” Pages 6 – 7,Olson
*“Boost Your Marketing ROI with Experimental Design” Harvard Business Review, 2001
WEEK 2
April 2, 3
Chapter 2 “Perception” Consumer Behavior, Seventh Edition, Michael R. Solomon
Chapter 1 “Weapons of Influence” Influence: Science and Practice, Fourth Edition, Robert B. Cialdini
*"Mind Your Pricing Cues,"Harvard Business Review, September, 2003
"How to Make Your Web Site More Effective?" Inside Influence, 2002
"Voting-Booth Feng Shui," The New York Times, December 10, 2006
"There are Many Reasons to Drive a BMW," Inside Influence, 2002
*"Metacognitive Experiences in Consumer Judgment and Decision Making," Journal of Consumer Psychology, 2004
Personal account on the “Perception” chapter (Consumer Behavior, Solomon)
OR
the contrast effect (Influence, Chapter 1, p. 12-16). Due April 1st 4PM.
Form groups of 4-5 members and send e-mail to Marisue Valentine with group members’ names.
Due April 6th, 4 PM (sections 1 and 2)
WEEK 3
April 9, 10
Helen Kurtz will be a guest speaker on April 10th.
"Introducing New Coke", Harvard Business School Case Study
"Coca-Cola’s Big Fizzle", Time, July 22, 1985
Please be prepared to discuss the following questions:
1. What was Coca-Cola’s brand building strategy? What factors influenced consumers' perceptions of Coca Cola?
2. What was Pepsi’s meaning management game? How should Coke have responded to Pepsi’s meaning making advances?
3. What do you make of Keogh’s marketing insights (p.8-10), and Goizueta’s famous speech as chairman (p.9)? What were their core assumptions?
4. Hindsight is indeed 20/20, but putting this bias aside, what major factor do you think caused the failure of New Coke?
5. Coca-Cola invested $4 million researching the reformulation question, yet they still got it very, very wrong. Keogh claims that “all the time and money and skill poured into consumer research on the new Coke could not measure or reveal the deep and abiding emotional attachment to original Coca-Cola felt by so many people, the passion for original Coke.” Is Keogh right?
Helen W. Kurtz T'97
Helen received her B.A. from Pomona College with a major in Government. After Pomona she worked at Ashfield & Co., Inc. as an Associate specializing in trading, equity research and client support in San Francisco. Upon graduating from Tuck in 1997, she joined General Mills as an Assistant Marketing Manager. Helen's 10 year tenure at General Mills has included stints on Hamburger Helper, Bisquick and new products in Betty Crocker, Big G, and Yoplait. Helen is currently the Marketing Director on Salty Snacks & Transformational Growth. In her position, Helen is responsible for the Chex Mix, Bugles, Gardetto's and Pop Secret brands, and for bringing transformational ideas to life in Snacks. As Marketing Director, Helen has responsibility for these businesses - being the key point on strategy, volume, advertising, promotions, trade, pricing, and new products. Her job is intensely focused on working with cross-functional teams made up of Finance, R & D, Operations, Advertising, Promotions, and Trade. In her spare time, she loves running, biking, and skiing along many of the 10,000 Minnesota lakes.
WEEK 4
April 16, 17
Chapter 7 “Scarcity: The Rule of the Few,” Influence Science and Practice, Fourth Edition, Robert B. Cialdini
*"Puma Does Fancy Footwork to Stay Out of the Mainstream", The Wall Street Journal, February, 2004
*"Too Good for Lowe’s and Home Depot?" The Wall Street Journal, July, 2006
*"What’s in Fashion this Fall? Scarcity," Fortune, 2005
Personal account on the scarcity principle (Influence, Chapter 7) due April 15th 4 PM.
WEEK 5
April 23, 24
Chapter 11 “Group Influence and Opinion Leadership” Consumer Behavior, Seventh Edition, Michael R. Solomon
Chapter 2 “Reciproaction: The Old Give and Take..., and Take,” Influence Science and Practice, Fourth Edition, Robert B. Cialdini
Chapter 4 “Social Proof: Truths Are Us,” Influence Science and Practice, Fourth Edition, Robert B. Cialdini
*“How Companies Turn Buzz Into Sales” MIT Sloan Management Review
*"The Buzz on Buzz," Harvard Business Review
"Don’t Monkey Around, Fuel, Jan. 2007
*"The Hidden (in Plain Sight) Persuaders," New York Times.
*"Blogs Will Change Your Business," Business Week.
*"The New Quid Pro Quo," Adweek
1. Personal account on the social proof principle (Influence, Chapter 4)
OR
the reciprocity principle (Influence, Chapter 2).
Please write one account on one of the two chapters. Due April 22nd 4 PM.
2. There is a public service announcement known as the Crying Indian. You can find a copy of it at Google video and many other places.
http://video.google.com/videoplay?docid=-8165024777546661764&pr=goog-sl
This PSA has won a number of awards including two Clio awards. It has also been described as one of the best 50 commercials by Ad Age and 1 of the best 16 commercials by TV Guide.
Please watch the commercial and write a short commentary (less than a page) of its strengths and weaknesses. Apply the material from Week 1 through Week 5.
Due April 22nd 4 PM.
WEEK 6
April 30th, May 1
Chapter 8, “Attitude Change and Persuasive Communications," Consumer Behavior - Buying, Having, and Being, Seventh Edition, Michael R. Solomon, 2007
Chapter 5, “Liking: the Friendly Thief,” Influence: Science and Practice, Fourth Edition, Robert B. Cialdini
Chapter 6, “Authority: Directed Deference,” Influence: Science and Practice, Fourth Edition, Robert B. Cialdini
“What’s In A Name? Persuasion Perhaps” Association for Consumer Research, by Randy Garner
Personal account on the authority principle (Influence, Chapter 5) - Due April 29th 4 PM
OR
Personal account on the liking principle (Influence, Chapter 6)- Due April 29th 4 PM.
WEEK 7
May 7, 8
Chapter 3, “Commitment and Consistency: Hobgoblins of the Mind,” Influence: Science and Practice, Fourth Edition, Robert B. Cialdini
*“Pricing and the Psychology of Consumption,” Harvard Business Review, by John Gourville and Dilip Soman
Personal account on the consistency principle(Influence, Chapter 3) Due May 6th 4 PM.
WEEK 8
May 14, 17 *
* Note: The class session on May 15th will be moved to Thursday, May 17th at 4.45 PM for a guest lecture.
Chapter 12 “Cultural and Cross-Cultural Influences," Consumer Behavior and Marketing Strategy, Peter/Olson
*“What Becomes an Icon Most?” Harvard Business Review, by Douglas B. Holt, March, 2003
*“The New Superpower: China’s Emerging Middle Class,” Adweek, 2007
“From Made in China to Sold in China” McKinsey Global Institute, 2006
“Building Brands in China”, McKinsey Quarterly, 2006
Thursday, 5/17
GUEST SPEAKER - 4:45 pm
Lesley Bielby is Executive Director of Account Planning at Hill, Holliday (responsible for Customer Insights and works with the creative teams). While at Hill, Holliday she has led the consumer insight and positioning work for many clients including, Dunkin' Donuts, Smith Barney, USTA and American Red Cross. Prior to joining Hill, Holliday she worked at other agencies where she led the respositioning efforts for Audi and Mercedes Benz.
WEEK 9
May 21, 22
*"Of trick and tumors: Some little-recognized costs of dishonest use of effective social influence," Psychology and Marketing, Robert B. Cialdini, March, 1999
Chapter 20 “Consumerism and Public Policy Issues,” Consumer Behavior, Third Edition, Hoyer and MacInnis
Final projects due May 22nd
