international consumer behavior ects (1)

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INTERNATIONAL CONSUMER BEHAVIOR

Course code GRAV010

Course title International Marketing Management

Type of course Compulsory

Level of cours Graduate

Department in charge Graduate school

Year of study 1st

Semester 2nd

Number of credits 6 ECTS; 36 hours of class work, 124 hours of self-study, 2 hours of consultations (distant or direct form)

Lecturer Dr. Brent McKenzie

Prerequisites Undergraduate studies in social science

Form of studies Consecutive (evening)

Teaching language English

Objective of the course and learning outcomes:

The focus of this course is to introduce the complex role that consumer behaviour and consumption plays within an international context. Knowledge of customers is one of the cornerstones for developing sound business strategies, and there is a need to better understand the diverse aspects of consumer behaviour that marketers must cater to in the global marketplace. As the study of consumer behaviour draws upon marketing, psychology, economics, anthropology, and other disciplines, the added complexity of understanding it beyond ones’ home market results in additional challenges and opportunities. Consumer behaviour attempts to understand the consumption activities of individuals as opposed to markets, and as this course will demonstrate, consumption activities are not universal. The course will focus on both consumer behaviour theory, as well as the integration of regional, global, and cultural variables that marketers must account for in developing marketing programs in strategies. Topics such as global consumer culture, values and consumption, international consumer attributes, international social and mental processes, will be used to help comprehend and explain the convergence and divergence of consumer behaviour in the global marketplace. The goal of this course is to provide a more concrete understanding of how marketers account for similarities and differences in the development and implementation of marketing practices, in the field of advertising, product and service development and usage, retailing, and communications. International Consumer Behaviour is designed to integrate the fields of international marketing, consumer behaviour, culture, and globalization in order to provide an opportunity to both links with the international content from earlier courses in the MSc program, within the context of marketing practices and consumer decision making in a global environment. The aim of this course is to provide the necessary theory to better grasp how the decisions that consumers’ make and how organizations account for differences in terms of marketing programs and operations, converge or diverge beyond the domestic market. CourseLearning Outcomes:

Course learning outcomes (CLO) Study methods Assessment methods

CLO1. Contrast the role of consumers in various marketplaces

Lectures, seminars, self study, group work

Participation, case analysis, group assignments, final exam

CLO2. Critically explain the role of consumer behavior as an essential element of the global marketing process



CLO3. Contrast the key differences and similarities of European and foreign consumers



CLO4. Analyze consumer behavior as a mirror of cultural, social and environmental determinants.


Participation, case analysis group assignments, final exam

CLO5. Ability to work in groups, debate with peers in class and apply theoretical knowledge in real world scenarios

Group Activities Group Project

Group Assignment Papers and Group Project Presentation

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Weekly course content:

1 Introduction/Global Consumerism Outline of course and discussion of individual papers Discussions of class international consumer experiences Examples of international advertisements and televisions commercials Global markets Global consumers "Universal" consumer behaviour

Assigned reading: Kirkman, Lowe & Gibson (2006), “A quarter century of Culture’s Consequences: a review of empirical research incorporating Hofstede’s cultural values framework”, Journal of International Business Studies Comments: Forming Groups/Activity

2 Convergence/Divergence of Consumer Behaviour Convergence theory Modernization Measurement variables: Demographics Economic systems (Western markets, Transition markets,

Emerging markets) Urbanization Ethnicity

Assigned reading: (1) Lamoreaux & Morling (2012), “Outside the Head and Outside Individualism- Collectivism: Further Meta-Analyses of Cultural Products”, Journal of Cross-Culture Psychology (2) Schwartz et al (2001), “Extending the Cross-Cultural Validity of the Theory of Basic Human Values” Journal of Cross-Cultural Psychology Comments: Case – “Visit Scotland”

3 Consumer Attributes Culture and consumerism Models of consumer behaviour Brand personality Concept of self Identity and image Attitudes and behaviour Consumer lifestyles

Assigned reading: (1) Watkins, (2009), “The cross-cultural appropriateness of survey-based value(s) research”, International Marketing Review (2) Minkov & Hofstede (2012), “Is National Culture a Meaningful Concept?”, Cross-Cultural Research Comments: Case –“Starbucks in Asia”/Group Assignment #1

4 Social Processes Introduction to Consumer behaviour processes Social processes Motivation Emotion and advertising

Groups Assigned reading: Minkov & Hofstede (2011), “The evolution of Hofstede’s doctrine”, Cross

Cultural Management Comments: Case - “Wal-Mart International”

5 Mental Processes Cognition Learning and socialization Language (local, regional, and international influences) Perception Communication Decision making

Assigned reading: Comments: Case – “Euro Disney/Disneyland Paris”/Group Assignment #2

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6 International consumption "World" Brands Product and service usage Food Durable goods Non-durable goods Services

Assigned reading: Biswas, Hussain, & O’Donnell (2009), “Celebrity Endorsements in Advertisements and Consumer Perceptions: A Cross-Cultural Study”, Journal of Global Marketing Comments: Group Assignment #3

7 International Consumer Behaviour success/failures Think global, act local? Country of origin effects (COO) and consumer behaviour Unit of analysis (World, Region, Country, Local) "Universal" consumer behaviour

Assigned reading: Ritzer (1996), “The McDonaldization Thesis: Is Expansion Inevitable?”, International Sociology Comments: Video

8 Class Presentations – Part 1

Class discussions Comments: 1st Half of Class Presentations

9 Class Presentations – Part 2

Comments: 2nd Half of Class Presentations

Soft Copy of Project emailed no later than 17:00

Final Exam

Reading list: Readings and Cases – Posted on web site Teaching methods:

The focus of this course takes an international marketing perspective in general and consumer behaviour specifically, and is best delivered by both direct and participative learning methods. Thus, roughly ½ of the in class time focuses on traditional lectures with the balance of class time devoted to case and group discussions. The expectation is that you will learn from your fellow colleagues in the course as much as from lectures and outside reading. The course lectures will focus both on the theoretical underpinnings of international consumer behaviour, and will be linked to actual consumer behaviour experiences in order to demonstrate the application of the theories discussed.

Assessment methods:

TASK TYPE FINAL GRADE, %

Attendance 5

Individual Class Contribution 5

In Class Group Activities 15

Group Project - Presentation 15

Group Project – Write Up 15

Final Exam 45

Class Attendance (5%)

The class attendance mark of 5% involves attending all of the daily seminars. Upon decision of the Graduate School administration, the "1 missing class" rule shall be applied in this course. Prompt daily attendance in class is required. Individual Class Contribution (5%)

Beyond attendance, during the course member of this course are encouraged to share marketing examples that they come across, either directly or via the media, with the class. It is recommended that you keep this class in mind when reading newspapers, watching television, reading magazines, while shopping, etc., as often the most relevant learning comes from discussing actual examples of international consumer behaviour. In addition, the expectation is that everyone will have read the required materials prior to class, and thus the instructor my call upon individuals to answer questions pertaining to such material. All class members will be expected to actively contribute to these discussions, as this will have a direct impact on the class participation grade. In Class Activities (15%)

There will be three (3) group activities during the course. The activities will be announced, and written during class time. The assignment is to be completed by the group and emailed to the instructor. The activities can pertain to any of the material

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covered during the course with respect to the relevant topic areas, including those topics contained in class discussions. Each activity will be out of 5 marks. Final Exam (45%)

There will be a final exam for the course. The final exam can include multiple-choice, fill-in-the-blank, short answer, case(s) and/or short essay questions. Questions can pertain to any of the material covered during the course with respect to the relevant topic areas, and the class discussions. Group Project (30% - 15% presentation/15% Write Up)

The purpose of the group project is to provide an opportunity to apply the theories and ideas about international consumer behaviour discussed within the course with actual international consumer behaviour practice. Each group will be required to select a popular product/service/brand used/available in both Lithuania/Baltic States and also beyond the Baltic region. Each group will be assigned a product/service/brand during the first class on May 24th.

Requirements:

(1) You must get into a team of 4 or 5 (no more than 5) – NOTE: Each group will be given a name and this is your group for both the in class activities as well as the group project (more details will be provided during the first class on May 24th).

(2) For the Project, each group is required to:

a) Find an example of both a Lithuanian/Baltic State advertisement (print or video), and for that same product/service/brand, one from another country

b) Discuss how the company has/has not adapted the advertisement to the foreign market c) Each group will present their findings and their opinion as to how well you believe the company has done

in matching the advertisement to the international market in terms of consumer behaviour of the two markets (you should include concepts we cover in class/text and other outside research materials, if appropriate, in your discussion). The presentations will be made Sessions 4 and 5. The order of the presentations will be announced during the first week of classes.

d) The presentations must be between 15 and 20 minutes will another 10 – 15 minutes for questions. Each group will be judged by way of an evaluation sheet that will be completed by members of the class. These results together with the evaluation of the instructor will form the basis for the group’s presentation grade. NOTE: Each group is responsible for their own presentation equipment.

e) The write up of the completed paper must be between 3 and 5 pages in length (approximately 1200-2000 words – 1.5 line spacing, 12 font, 2.5 cm margins), plus appropriate appendices and references (see “General Format Requirements for Research Papers and Master’s Theses”). Each group must submit the report with student IDs to the Graduate School study office no later than 17:00 two days after the official course end. The report has to be type-written and accomplished in accordance with “General

Format Requirements for Research Papers and Master’s Theses” and title page format requirements for individual and group assignments (available on the intranet). In addition, each group must email a softcopy file (doc., pdf, ppt.) of the report to Graduate School Study Office ([email protected]) and me ([email protected]) no later than 17:00 two days after the official course end (NB. please ensure the files are =< 5mb in size in order for them not to be rejected by my email server).

Suggested Outline of the Write Up, and Suggested Pages (you may adapt if you’d like):

(1) Briefly summarize the product/service advertised, and the company/brand (2) Discuss the similarities and differences between the two advertisements (3) The groups’ opinions as to how the ads do/do not align with Int’l CB theory (4) Brief conclusion

Overall Length:

0.5-1.0 pgs. 1.0-1.5 pgs. 1.5-2.0 pgs. 0.5 pgs. 3.5-5.0 pgs.

Other Information: Suggested Sources for Advertisements:

In addition to visiting the web-sites of the specific companies/brands, domestic and international magazines/newspapers are the best bet (most will also have web-sites as well). General business publications and foreign or local magazines and trade publications, such as Time, Business Week, European Business, Forbes, and the Financial Times would be good places to start. Frequently Asked Questions:

(Q1) What if our group selects a foreign advertisement that is in a language we do not know? (A1) You could either try and find someone to help with the translation, but a better option would be to choose an advertisement that conveys a lot through it’s look, and not necessarily it’s text – you can then comment on the nature of the visuals and how they do/do not align with how your understand that consumer behaviour in that country would relate. (Q2) What is the best way to “know” about the consumer behaviour practices of my international advertisement country? (A2) As we will discuss during the course, there are a number of ways that different researchers have categorized consumer behaviour – one suggestion (and there are others) is that you use consumer behaviour models such as those discussed in class, and your readings, as a basis for your discussion of why you believe/do not believe the advertisements are appropriate to the culture and by extension the consumer behaviour of the two countries.

(Q3) Can we change the brand/product/service that is given to our group?

mailto:[email protected]

mailto:[email protected]

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(A3) No, the choice of products/brands were selected to provide a breadth of types of products/services, and also they all operate in a number of countries/cultures and thus represent truly global brands. Evaluation of the Project

The approximate weightings of the grading of the written project follow the suggested outline: (1) Introduction and summary of the brand/product/service: 10% (2) Overall clarity of the paper: 15% (3) Advertisement comparisons: 25% (3) Group opinions, application/Secondary research:*: 40% (4) Conclusion: 10% * All secondary/primary information sources must be properly referenced in APA style, i.e. clear to the reader as to the source (see “General Format Requirements for Research Papers and Master’s Theses”). Referencing is required and is in addition to the 3.5-5.0 page requirements.

REMARKS:

1. A student must score on all the assigned tasks by the lecturer (see Assessment Methods). No postponement

and/or retake of the assigned tasks to class contribution – i.e. group assignments, individual assignments, in-class participation and class attendance – shall be allowed.

2. Final cumulative grade shall be calculated according to a cumulative grading formula. Failing grades from final exam and other assignments shall not be calculated and will equal ‘0’.

3. A student, who fails to pass the exam or the course, has the right to retake the exam. A re-take exam shall consist of all course material and comprise 45 % of the final cumulative grade. The acquired passing grades from all course assignments (except for the final exam) shall be summed up and a final cumulative grade shall be given.

4. A student shall have no right to re-take an exam after he/she has received a passing final grade.

Role of the subject in reaching learning outcomes of International Marketing and Management programme

Special learning outcomes CLO

S1. Demonstrate knowledge and understanding of contemporary theories and their applications in the research field of international marketing and management that provides with opportunity for originality in developing, applying and implementing ideas in the areas of international management and international marketing

CLO2

S2. Analyse and assess internal and external international business environment and derive managerial decisions on company’s governance and international expansion and based on a set of environmental factors in particular business situation, having particular regard to the importance of cultural aspects in international business.

CLO1; CLO2; CLO3; CLO4

S3. Analyse and assess the peculiarities of global business environment and shifts in geo-economical situation, putting a particular emphasis on emerging economies and their role in international business environment.

CLO3; CLO4

S4. Have the ability to formulate judgments and take socially and ethically responsible decisions in global business environment.

CLO4; CLO5

S5. Be able to model various business situations using principles of system dynamics; be able to use contemporary modeling software for macro economical analysis

CLO5

S6. Analyse and critically evaluate various real-life business examples, situations and experiences in dealing with multiple international management functions (international human resource management, international consumer behaviour issues, international marketing and negotiation strategies, advanced corporate finance issues, innovation management and marketing communication matters); be able to analyse mentioned functions both separately and in integrative manner.

CLO1; CLO2; CLO3; CLO4; CLO5

S7. Conceptualize, research and write a state of the art review of a chosen area of investigation and generate empirical data on the phenomenon under investigation; be able to evaluate the appropriateness of the use of qualitative and quantitative research methods in particular context; be able to use advanced qualitative techniques and quantitative data analysis methods.

CLO5

General learning outcomes

G1. To apply modern information technologies in the data gathering, analysis and communication. CLO5

G2. To apply a systematic, critical and constructive thinking in problem identification and solving. CLO1: CLO4

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G3. Have abilities to communicate the knowledge to specialist and non-specialist audiences clearly and unambiguously.

CLO4; CLO5

G3. Develop a range of personal skills including argumentation, evaluation, problem identification and solving, interactive and group skills, self-appraisal, cross-cultural teamwork.

CLO5

G4. To prepare research papers according to proper language, writing style and general bibliographic citation requirements.

CLO1; CLO2; CLO3 CLO4; CLO5;

G5. To develop independent learning skills necessary to continue studies on a higher level. CLO1; CLO2; CLO3

international consumer behavior ects (1)

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