MARKETING AND BEHAVIORAL ECONOMICS (MKTG 101)

OVERVIEW

1. COURSE DESCRIPTION

This course will equip students with a comprehensive understanding of marketing and behavioral economics principles. The course integrates these two disciplines to provide insights into consumer behavior and decision-making processes. By the end of the course, students should be able to apply behavioral economic theories to marketing strategies, enhancing their ability to influence consumer behavior, drive customer engagement, and optimize business outcomes.

2. REASON FOR THE COURSE

Combining Marketing and Behavioral Economics, this interdisciplinary course offers a deep dive into the complex world of consumer behavior and decision-making processes. The course begins with exploring core marketing concepts, including market segmentation, targeting, positioning, and the marketing mix. Simultaneously, it introduces students to the principles of behavioral economics, focusing on how psychological, cognitive, emotional, cultural, and social factors influence the economic decisions of individuals and institutions.

The course then merges these two fields, offering a distinctive perspective to understand and influence consumer behavior. Students will learn how to apply behavioral economic theories to marketing strategies, using insights about human behavior to design more effective marketing campaigns and improve business performance.

Real-world case studies will be used throughout the course to illustrate the practical application of theories. By the end of the course, students will have a robust understanding of how marketing and behavioral economics intersect and will be equipped with the tools to influence consumer behavior and drive business success.

3. STUDY HOURS

 

4. ROLE IN CURRICULUM

Prerequisites:

There are no prerequisites for this course.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

On successful completion of this course, students will be able to:

Knowledge Level of
Learning		 Related PLO

Explain Marketing Concepts (CK1)
Explain the core marketing concepts, including market segmentation, targeting, positioning, and marketing mix.

 Understand PK1

Explain Behavioral Economics Concepts (CK2)
Explain the principles of behavioral economics, particularly how psychological, cognitive, emotional, cultural, and social factors influence economic decisions.

 Understand PK1
Cognitive Skills Level of
Learning		 Related PLO

Apply Behavioral Economics Theories (CC1)
Apply behavioral economics theories and cognitive biases in businesses.

 Apply PK2

Create Marketing Strategies (CC2)

Design marketing campaigns that effectively influence consumer behavior and improve business performance using insights from behavioral economics.

 Create   PK2
Communication, Information Technology, and Numerical Skills Level of
Learning		 Related PLO

Employ Information Technology (CCIT1)
Employ information technology tools like data analysis software (Google Looker Studio) to gather, analyze, and interpret consumer behavior and marketing performance data.

Apply

 PCIT2

Communicate Marketing Strategies and Behavioral Economics Concepts (CCIT2)
Communicate marketing strategies and behavioral economic theories, both orally and in writing.

Apply

 PCIT3
Interpersonal Skills and Responsibilities Level of
Learning		 Related PLO

Work in a Team (CIP1)
Work effectively in a team to create a business and apply both marketing and behavioral concepts.

Characterize

 PIP1

6. ASSESSMENT AND GRADING

  Grades will be determined based on the following assessments and score allocations:

SKILL Assessment Skill Weighting for Grade
Participation Assignment 1 Assignment 2
Explain Marketing Concepts (CK1) 20%  40% 40% 10%
Explain Behavioral Economics Concepts (CK2)  20%  40%  40%  10%
Apply Behavioral Economics Theories (CC1) 40% 30% 30% 25%
Create Marketing Strategies (CC2)  20% 40% 40% 25%
Employ Information Technology (CCIT1)     100% 10%
Communicate Marketing Strategies and Behavioral Economics concepts (CCIT2) 20% 40%  40%  10%
Work in a team (CIP1) 20%  40%  40%  10%

 

7. TEACHING METHODS

This course employs a blend of teaching methods to ensure a comprehensive understanding of Marketing and Behavioral Economics. Lectures provide foundational knowledge, introducing key concepts and theories. In-class exercises encourage active participation, fostering critical thinking and problem-solving skills. Case studies are used extensively to illustrate real-world applications of theories, enabling students to analyze and evaluate marketing strategies and behavioral economics concepts. Group projects promote collaboration and practical application of concepts. 

There is one assignment during this course:

Assignment 1: —

Assignment Rubric

  

Assignment 2:

Create Marketing Strategies for a New Product
Work Group:

Group of 2-3
Output format: Report & Presentation
Description:

Students will be provided with random products along with their specifications. They will then be tasked with developing comprehensive marketing strategies, which should include appealing packaging design.

Assignment Rubric

 —

8. STUDY PLAN

The course targets the 30 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 45 class hours.  The study plan below describes the skills to be learned in each lesson (learning outcome). Readings should be completed before the start of each class. Implementation of this study plan may vary depending on the progress and needs of students. References are supporting documents which students may optionally read for deeper understanding or clarification.

  Lesson Learning Outcomes

Teaching (T), and
Assessment (A) Methods
 1

Creating Customer Relationships and Value through Marketing

  • Define marketing and identify the diverse factors that influence marketing actions. (CK1)
  • Explain how marketing discovers and satisfies consumer needs. Distinguish between marketing mix factors and environmental forces.(CK1)
  • Explain how organizations build strong customer relationships and customer value through marketing.(CK1 )
  • Describe the characteristics of a market orientation. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Creating Customer Relationships and Value through Marketing.

Case Study: Bombas: Creating Socks with a Purpose!
2

Developing Successful Organizational and Marketing Strategies

  • Describe three kinds of organizations and the three levels of strategy in them. (CK1)
  • Describe core values, mission, organizational culture, business, and goals.(CK1)
  • Explain why managers use marketing dashboards and marketing metrics. (CK1)
  • Explain the planning and implementation phase of the strategic marketing process. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Developing Successful Organizational and Marketing Strategies

Case Study: IBM: Putting Smart Strategy to Work

 
3

Marketing Dashboard 

  • Introduce Google Looker Studio and demonstrate how to visualize marketing data. (CCIT1)
  • Workshop

Software: Google Looker Studio
4

Scanning the Marketing Environment

  • Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces. (CK2) 
  • Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing. (CK2)
  • Discuss the forms of competition that exist in a market and the key components of competition. (CK2)
  • Explain the major legislation that ensures competition and regulates the elements of the marketing mix. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Scanning the Marketing Environment
5

Ethical and Social Responsibility for Sustainable Marketing

  • Explain the differences between legal and ethical behavior in marketing. (CK2)
  • Identify factors that influence ethical and unethical marketing decisions. (CK2)
  • Describe the different concepts of social responsibility. (CK2)
  • Recognize unethical and socially irresponsible consumer behavior. (CC2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Ethical and Social Responsibility for Sustainable Marketing
6

Understanding Consumer Behavior

  • Describe the stages and processes in the consumer purchase decision process. (CC1)     
  • Identify the major psychological and sociocultural influences on consumer behavior. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Understanding Consumer Behavior

Case Study: Coppertone: Creating the Leading Sun Care Brand by Understanding Consumers
7

Understanding Organizations as Customers

  • Distinguish among industrial, reseller, and government organizational markets. (CC2)
  • Describe the key characteristics of organizational buying that differentiate it from consumer buying. (CC2)
  • Explain how buying centers and buying situations influence organizational purchasing. (CC2)
  • Recognize the importance and nature of online buying in industrial, reseller, and government organizational markets. (CCIT1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Understanding Organizations as Customers
8

Understanding and Reaching Global Consumers and Markets

  • Describe the nature and scope of world trade from a global perspective. (CK1)
  • Name and describe the alternative approaches companies use to enter global markets. (CK1) 
  • Explain the distinction between standardization and customization when companies craft worldwide marketing programs. (CK1)  
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Understanding and Reaching Global Consumers and Markets
9

Introduction to Behavioral Economics

  • Understand the basic principles of Behavioral Economics, its origins, and how it differs from traditional economic theories. (CC1) 
  • Discuss the importance of psychology in economic decisions. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Introduction to Behavioral Economics
10

Cognitive Biases and Heuristics

  • Identify and understand common cognitive biases and heuristics that influence decision-making. (CC1)
  • Discuss examples of these biases in real-world economic scenarios. (CC1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Cognitive Biases and Heuristics
11

Prospect Theory

  • Understand the principles of prospect theory, including loss aversion and decision-making under uncertainty. (CC1)
  • Analyze how these principles affect consumer behavior and market dynamics. (CC2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Prospect Theory
12

Time Discounting and Intertemporal Choice

  • Comprehend the concepts of time discounting and intertemporal choice. (CK1) 
  • Discuss their impact on economic decisions such as savings, investments, and consumption. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Time Discounting and Intertemporal Choice
13

Nudges and Choice Architecture

  • Recognize how nudges and choice architecture can influence decision-making and behavior. (CK2)
  • Discuss the ethical implications and effectiveness of these techniques. (CK2)
  • Discuss how can firms and governments influences our choices?  (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Nudges and Choice Architecture, How Can Firms and Governments Influence Our Choices?
14

Bounded Rationality 

  • Define bounded rationality, understand its role in behavioral economics, and analyze its impact on real-world economic decisions. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Bounded Rationality
15

Market Segmentation, Targeting, and Positioning

  • Explain what market segmentation is and when to use it. (CK1)
  • Identify the five steps involved in segmenting and targeting markets. (CK1)
  • Develop a market-product grid to identify a target market and recommend resulting marketing actions. (CK1)
  • Explain how marketing managers position products in the marketplace. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Market Segmentation, Targeting, and Positioning
16

Assignment 01: Construct a Business

  • Submission & Presentation
  • Assignment Submission
17

Developing New Products and Services

  • Recognize the various terms that pertain to products and services.​​​​​​​ (CK1)​
  • Explain the significance of “newness” in new products and services related to the degree of consumer learning involved. ((CK1)
  • Describe the factors contributing to the success or failure of a new product or service. (CK1)
  • Explain the purposes of each step of the new-product development process. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Developing New Products and Services
18

Managing Successful Products, Services, and Brands

  • Explain the product life-cycle concept. (CK1)
  • Recognize the importance of branding and alternative branding strategies. (CK1) 
  • Describe the role of packaging and labeling in product marketing. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Managing Successful Products, Services, and Brands
19

Services Marketing

  • Describe four unique elements of services. (CK1)
  • Explain how consumers purchase and evaluate services. (CK1)
  • Explain the role of the seven Ps in the services marketing mix. (CK1)
  • Discuss the important roles of internal marketing and customer experience management in service organizations. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Services Marketing

Case Study: Minnesota Lynx: Building a Team Brand and Being a Vehicle for Change!
20

Building the Price Foundation

  • Identify the elements that make up a price. (CC1)
  • Describe what price elasticity of demand means to a manager facing a pricing decision. (CK2) 
  • Explain the role of costs in pricing decisions and describe how various combinations of price, fixed cost, and unit variable cost affect a firm’s break-even point. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Building the Price Foundation
21

Arriving at the Final Price

  • Describe how to establish the “approximate price level” using demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches. (CK2) 
  • Recognize the major factors considered in deriving a final list or quoted price from the approximate price level. (CK2)  
  • Identify the adjustments made to the approximate price level based on discounts, allowances, and geography. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Arriving at the Final Price
22

Retailing and Wholesaling

  • Identify retailers in terms of the utilities they provide. (CC1)  
  • Describe the many methods of nonstore retailing. (CC1)
  • Classify retailers in terms of the retail positioning matrix and specify retailing mix actions. (CC1)
  • Explain changes in retailing with the wheel of retailing and the retail life-cycle concepts. (CC1
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Retailing and Wholesaling
23

Implementing Interactive and Multichannel Marketing

  • Describe interactive marketing and how it creates customer value, relationships, and experiences. (CC2)
  • Explain why certain products and services are particularly suited for interactive marketing, online shopping, and buying. (CC2).
  • Describe why consumers shop and buy online and how marketers influence purchasing behavior. (CC2)
  • Define cross-channel consumers and the role of multichannel marketing in reaching these consumers. (CC2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Implementing Interactive and Multichannel Marketing
24

Integrated Marketing Communications and Direct Marketing

  • Discuss integrated marketing communications and the communication process. (CCIT2)
  • Describe the promotional mix and the uniqueness of each component. (CK1)
  • Select the promotional approach appropriate to a product’s target audience, life-cycle stage, characteristics, and stages of the buying decision and channel strategies. (CK1)
  • Explain the value of direct marketing for consumers and sellers. (CK1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Integrated Marketing Communications and Direct Marketing
25

Advertising, Sales Promotion, and Public Relations

  • Explain the differences between product advertising and institutional advertising and the variations within each type. (CK1)
  • Describe the steps used to develop, execute, and evaluate an advertising program. (CC2)
  • Explain the advantages and disadvantages of alternative advertising media. (CCIT1)
  • Recognize public relations as an important form of communication. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Advertising, Sales Promotion, and Public Relations

Case Study: Fallon Worldwide: Creating a Competitive Advantage with Creativity
26

Using Social Media and Mobile Marketing to Connect with Consumers

  • Define social media and describe how they have transformed marketing communications. (CCIT1)
  • Identify the six most prominent social media and describe how brand managers integrate them into marketing actions. (CCIT1)
  • Describe the characteristics of a social media marketing program, including selecting social media and choosing social media content. (CCIT1)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Using Social Media and Mobile Marketing to Connect with Consumers

Case Study: Body Glove: Helping Consumers Do What They Love!
27

Personal Selling and Sales Management

  • Discuss the nature and scope of personal selling and sales management in marketing. (CC2)
  • Identify the different types of personal selling. (CC2)
  • Explain the stages in the personal selling process. (CC2)
  • Describe the major functions of sales management. (CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Using Social Media and Mobile Marketing to Connect with Consumers
28

Pulling It All Together: The Strategic Marketing Process

  • Explain how marketing managers allocate resources. (CK1)
  • Describe the generic business strategy and blue ocean strategy planning frameworks.(CK1)
  • Explain what makes an effective marketing plan.
  • Describe the levels and functions of an organization’s marketing department. (CK1)
  • Explain the use of marketing ROI, metrics, and dashboards in evaluating marketing programs.(CK2)
  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Pulling It All Together: The Strategic Marketing Process
29

Assignment 02: Create Marketing Strategies for a New Product 

  • Submission & Presentation (CC2)
  • Assignment Submission & Presentation
30

Assignment 02: Create Marketing Strategies for a New Product 

  • Submission & Presentation (CC2)
  • Assignment Presentation
 Total Hours = 45

9. TEXTBOOKS AND REFERENCES

Textbooks

  • Kerin, R., Hartley, S., & Rudelius, W. (2023). Marketing (16th ed.). McGraw Hill.
  • Huettel, S. (2014). Behavioral Economics: When Psychology and Economics Collide.

References

  1. Kotler, P., Kartajaya, H., & Setiawan, I. (2021). Marketing 5.0: Technology for Humanity. Wiley.
  2. Ariely, D. (2010). Predictably irrational: The hidden forces that shape our decisions. Harper Perennial.
  3. Earl, P. E. (2022). Principles of Behavioral Economics: Bringing Together Old, New and Evolutionary Approaches. Cambridge University Press.

Education Resources