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Lecture 09 consumer motivation concept

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  • 1. CONSUMER BEHAVIOUR LESSON 9: CONSUMER MOTIVATION CONCEPT Introduction activates, or moves and directs or channels behaviour It is important to understand fully why people might want to towards the goal. buy your product or use your service in order to better design • Motivating: This implies an activity engaged into by an the product and communicate relevant benefits. individual, by which he or she will channelise the strong For that matter you can take your own example, and see why motives in a direction that is satisfactory. you buy what you buy? • Motivation: Motivating can be described as the driving Note that for existing products, different people may seek force within individuals that impels them into action. For different benefits from the same product or though seeking the instance, at the basic level, our body has a need (say same benefits may regard them with differing degrees of hunger), which will translate into a drive (here the drive will importance. For instance, much computer advertising has been be to obtain food) and the goal will be to satisfy the need criticised as placing excessive emphasis on statements about (in this example to fee full in the stomach). This can be hardware specifications rather than telling people what the illustrated as under in figure 3.1 computer actually can do for them. For some knowledgeable Need Action Satisfaction people a statement of specifications may be easily interpreted in terms of benefits while for others, perhaps new to computers, such information may be meaningless. Note also that if a new product is far removed from people’s range of experience, it may be difficult for them to articulate the Fig 3.1 Need, action and satisfaction benefits they perceive such a product providing. Other tech- niques than simply asking them may need to be used in such 1.1 Emotional Versus Rational Motives cases. Traditionally, the term rationality is associated with persons who The benefits a consumer may seek from a product may vary are carefully weigh the pros and cons of all the alternatives and depending on the situation in which the product is to be used. then choose the one that gives them the greatest utility. We can For instance a consumer may approach the purchase of a bottle say that consumers who are rational generally select the goals of wine in quite a different way when the bottle is for own use after ascertaining the various objective criteria such as size, rather than to be given as a gift to a host at a party. In the weight price etc. As opposed to this, emotional motives are second instance the benefit sought from the bottle may well be those goals, which are selected on the basis of emotions to act as a symbol of the strength of friendship between host involvement. Most of the time, we select such goals purely on and guest, rather than for its taste. the basis of emotion’s involvement. In this lesson we will be looking at the difference between 1.2 Positive or negative Motivation motives and motivation, and the process of motivation. In the Motivation can be either positive or negative. A positive next sections we will be looking at Customer Involvement and motivation happens when an individual experiences a driving Values and how they affect the motivation status of consumers. force towards an object or person or situation. This is also called Objectives person motivation. On the other hand, a driving force compel- After studying this lesson you should be able to: ling the person to move away from someone or something will • Explain motivation. be known as negative motivation. • Understand positive and negative motivation. We can explain the difference between positive and negative motivation better if we take an example. • Explain the motivation process Lets say one of our students Rajesh, joins an organisation as an • Discuss consumer involvement executive. After some time he gets promoted, and transferred to • Apply consumer values a new place. He then join the local club (a positive goal) so as to 1. Motives and Motivation gain social recognition and make new friends. His wife may join Now that we know about needs and wants in details from the the kitty parties held by other executive’s wives to avoid a last lesson, we need to now move on the motivation. But negative goal (ridiculed by others as an unsocial person). So we before going into an in-depth discussion on these, we will first see in the above example how both positive and negative goals understand the distinct meanings of the three interrelated terms can motivate a person’s behaviour. motives, motivating, and motivation. • Motives: Motives give direction to human behaviour. We can say that a motive is an inner state that energizes, © Copy Right: Rai University 80 11.623.3
  • 2. 2. Consumer Motivation The above categories are by no means mutually exclusive. Some CONSUMER BEHAVIOURThe study of consumer motivation essentially addresses the 70% of the population visits a shopping mall at least once perquestion: “Why do people shop?” The answer, really, is that week and they are liable to do so for a variety of reasons at anypeople shop for a variety of reasons and it is very difficult to one time. Shopping is certainly far more than merely going to amake generalizations. Shopping for food can, on one level, is store to buy a product one needs or wants – people often go toseen as satisfying some basic survival need. The problem with the mall with no intentions of spending any money at all!that, however, is that most of us buy far more food than we Activity 1would actually need for basic subsistence and many of the items What was the last item you purchased in a store? Did you gowe purchase in a supermarket are “luxuries” (relatively speak- shopping specifically to look for it? Why did you buy it? Whoing). was involved in you purchasing decision? Were you happy withOne of the most influential studies of consumer motivation is the decision you made?that conducted by Tauber (1972). According to Tauber, there are Exercise: Make a list of all the things you noticed last time you wenttwo main categories of motivation for shopping: shopping. Include anything at all that crosses your mind, from thingsPersonal Motives you actually saw or did to things you felt. Save the list for later!Role Playing – some shopping activities are associated with a particular role in Motivation–The driving force of all human behaviour society (housewife, mother, student, • Drive–An internal state of tension that produces actions etc). purported to reduce that tensionDiversion – shopping can be a form or • Goal-object–Something in the external world whose recreation, or an escape from daily acquisition will reduce the tension routine. A very popular definition of motivation is:Self-Gratification – shopping can be mood-related, for instance where people engage in Motivation is a process that starts with a physiological or “retail therapy” to cheer themselves psychological deficiency or need that activates behaviour or a up or alleviate depression. drive that is aimed at a goal or incentive. (Fred Luthans)Learning – shopping is an ideal way to learn 3. The process of Motivation about new fashions and trends. • Approach motivation–Desire to attain a goal objectPhysical Activity – for some people, a stroll around the • Avoidance motivation–Desire to protect oneself from an mall can be their main form of object exercise. • Whatever the direction, motivation manifests in threeSensory Stimulation – shoppers often report that they facets: needs, emotions and psychographics. enjoy handling merchandise, the Stimulus sounds of background music, the scents of perfume counters, etc, and visit stores or malls to indulge in this.Social MotivesSocial Interaction – people enjoy the opportunities for Drive/arousal • Cognitive social interaction with friends, • Autonomic (physiological) • Emotive strangers, sales staff, etc.Peer Affiliation – certain shops allow customers mix Feedback with key reference groups; e.g. people with shared interests, members of a social category they either belong to or Outcome Identification aspire to, etc. • Experience of new state of goaldirecte behaviourStatus & Authority – shopping experiences are sometimes • Satisfaction seen as ways of commanding respect and attention; e.g. during encounters with sales staff.Pleasure of Bargaining – some shoppers love to “haggle”, a way Behaviour of obtaining goods at a better price or Approach or avoidance of priding oneself on the ability to make “wise” purchases. Fig 3.2 A model of the motivation process © Copy Right: Rai University11.623.3 81
  • 3. Customer Moods –Success and failure influence goalsCONSUMER BEHAVIOUR Moods are emotions felt less intensely and are short-lived. • Substitute goals • Marketing stimuli can induce positive or negative moods: • Frustration – Ambience of store or service delivery facility – Demeanour of salesperson 1 2 3 – Sensory features of the product Needs Wants tension – Tone and manner of advertising 4 5a 6a – Content of message from salesperson or ad. Action or Satisfaction Goal Behaviour Hedonic Consumption • The use of products/services for intrinsic enjoyment rather 5b 6b than to solve a problem in the physical environment Frustration Substitute Goal • Hedonic consumption creates pleasure through the senses: – Sensory pleasure from a bubble bath 7 – Aesthetic pleasure from an original work of art Defense Mechanism Aggression – Emotional experience from a scary movie Rationalization Regression – Fun and enjoyment from playing sport. Withdrawal Projection Identification Pause for Thought # 1 Identification Repression How involved with the product are most prospective buyers in the target market segment? Involvement is Fig 3.3 Needs –Satisfaction chain used here in a more precise way than in everyday language and refers to the degree to which people regard the product –Defense mechanisms (aggression, rationalization, as important and personally relevant. As indicated in the regression, withdrawal, Projection. Autism, Identification class, the more involved a person is with a product, the more likely they are to engage all the stages of the PDP and 4. Involvement Next we move on to the concept of Involvement and how it expend time and effort on making a choice. Conversely the helps motivate consumers to take any decision. less involved they are, the more likely it is that they will do less searching and less evaluation of alternatives. The But, what exactly is Involvement? implications of this are significant. If people will do only a • A person’s perceived relevance of an object based on small amount of searching for information you will have an inherent needs, values, and interests. advantage if you provide them with relevant information • The motivation to process information, or and make it available to them in an appropriate way and • The degree of personal relevance of an object, product or your competitors do not. For instance, it may be highly service to an individual. beneficial to offer inducements to salespeople in retail outlets to provide information about your brand if that –Enduring: the degree of interest on an ongoing basis information alone is largely all that is going to be used to –Situational: the interest in a specific situation/occasion decide which to purchase. Deep Involvement Alternatively one might try to influence the degree of • Deep involvement is a customer’s extreme interest in a involvement people have with a product. For instance the product/service on an ongoing basis. linkage between toothpaste and “cavity prevention” created through advertising and the advice of dentists is an attempt 4.1 Types of Involvement to increase the importance people attach to using tooth- • Product involvement: When we are involved more with paste. the product or service. • Advertising involvement: When we are involved with the 4. The Dynamic Nature of Motivation promotion message or specifically the advertisement of the WE can say that motivation is a highly dynamic concept, product or service. because it is constantly changing in reaction to life experiences. • Purchase situation involvement: IN this case we are To put it in a more comprehensive manner we say that motiva- involved mostly with the situation of the purchase rather tion has a dynamic nature because of the following reasons: than the product or service itself, or advertisement for that • Needs and goals are constantly changing matter –Needs are never fully satisfied –New needs emerge as old needs are satisfied © Copy Right: Rai University 82 11.623.3
  • 4. Activity 1 • When you choose a watch, it is not a big deal if you make a CONSUMER BEHAVIOURDraw out five examples for each of the three types of involve- mistake.ment from your daily life. • It is really annoying to purchase watches that are not suitable. • If, after I bought a watch, my choice proves to be poor, I would be really upset. • Whenever one buys a watch, one never really knows whether they are the ones that should have been bought. • When I face a shelf of watches, I always feel a bit at a loss to make a choice. Again, to quantify the measure we can use the various types of scale that we have studied before in chapter 2. For example, in measuring involvement for buying bread: Measuring Involvement To Me Sliced Bread Is: 1. Important___:___:___:___:___ unimportant 2. Boring___:___:___:___:___:___:___ interesting4.2 Conceptualizing Involvement 3. Relevant___:___:___:___:___:___:___ irrelevant• Person factors 4. Exciting:___:___:___:___:___:___ unexciting • Antecedents – needs, importance, interest, and values 5. Means nothing :___:___:___:___:means a lot to me • Involvement with – ads, products 6. Appealing__:___:___:___:___ unappealing • Results 7. Fascinating___:___:___:___:___:___ mundane • With ads – counter arguments, effectiveness of ads 8. Worthless:___:___:___:___:___:___ valuable • With products – importance of product class, 9. Involving:___:___:___:___:___uninvolving perceived differences in attributes, preference for 10 not needed___:___:___:___:___needed particular brand. Strategies to Increase Involvement• Object or Stimulus factors At the end, we can identify the following strategies to increase • Antecedents – differentiation of alternatives, source of consumer involvement with your product/service; advertise- communication, content of communication ments or purchase situation: • Involvement with – ads, products • Appeal to consumers’ hedonic need • Results • Use novel stimuli • With ads – counter arguments, effectiveness of ads • Use prominent stimuli • With products – importance of product class, • Include celebrity endorsers perceived differences in attributes, preference for • Build ongoing relationship with consumers particular brand.• Situational factors 5. Values• Antecedents – purchase/use, occasion What are values?• Involvement with – ads, purchase decisions Values are basically ideals about what is desirable. Values are• Results again of two basic types: Terminal values and instrumental • With ads – counter arguments, effectiveness of ads values. • With purchase decision – influence of price on brand • Terminal Values. choice, amount of information search, time spent deliberating alternatives, type of decision rule used in • End states desired by members of a culture (e.g., choice. Happiness, wisdom) • Instrumental values.4.3 Measuring Involvement • Goals endorsed because they are needed to achieveLet us take some examples from real life to understand how to terminal values (e.g., Behaving honestly, acceptingmake Involvement measurable. For instance, If you take the responsibility).situation of buying a watch, how involved do you get? Can wemeasure it? Let us look at the following statements: © Copy Right: Rai University11.623.3 83
  • 5. •CONSUMER BEHAVIOUR List of Values (LOV). Terminal values • Nine terminal values or goals for which we strive I. Self-respect II. Excitement Instrumental values III. Being well respected IV. Self-fulfillment V. Sense of accomplishment Psychological VI. Warm relationships with others Consequences VII. Security VIII. Fun and enjoyment with others IX. Sense of belonging Concrete Abstract Functional 5.1 Values and attributes attributes attributes consequences Fig 3.5 the expanded model Laddering Process Technique that traces linkages between a consumer’s values and the product attributes Self respect WE will understand the laddering process with the help of the Terminal values following: Healthy, better appearance • Basic model Instrumental values • Expanded model • Example Psychological Consequences Attributes Don’t get fat (Unattractive) Consequences Flavored strong Eat Values chip taste less Functional Concrete Abstract consequen ces attribute attributes Fig 3.4 the basic model The basic model above shows how attributes in a product lead Fig 3.5 the expanded model to consequences and then finally to the values. Now, what we will do is look at the example of flavoired chips Let us now understand the means –end chain model in detail as a snacks and try to put in the expnaded model. It may look with the help of an example as shown in the PowerPoint slide. something like this. Self respect Means - End Chain Model Terminal values If we take an example of a snacks named, Healthy Choice. Lets Healthy, better appearance say the main attributes are Low fat, many flavors, and high Instrumental values quality. As a direct consequence of these attributes, we can say that low fat would lead to healthy; many flavours would mean a variety of choices; and high quality would mean great tasting. Psychological Consequences Now the question is to link these consequences to the end values. Say for instance, the consequence of health could lead to Don’t get fat a value of self-respect and Wisdom; great tasting could lead to (Unattractive) happiness or pleasure. Now that we understand the means –end chain model let us look at the expanded version of the basic model. Flavored strong Eat chip taste less Functional Concrete Abstract consequen ces attribute attributes Fig 3.5 the expanded model © Copy Right: Rai University 84 11.623.3
  • 6. Thus we see how product attributes can be linked finally to Today, when we look at the global market, we need to realise CONSUMER BEHAVIOURinstrumental and terminal values. that at the most basic level all human beings share common physiological and safety needs as explained by Abraham MaslowAttribution Applications in his ‘hierarchy of needs’. What separates one customer in one• Advertisement. part of the world from another somewhere else are the complex• You see an ad making strong product claims. social, cultural and esteem needs each of them has, depending• You attribute it to the fact that the product is really good. upon the stage at which the civilisation/ nation is in the process• It is only an ad and that the firm is exaggerating. of development. And despite centuries of technological development, these needs have remained as crucial as ever. At• Purchase situation. best they have undergone changes or modifications due to• You are buying a product with lots of add-on features. cultural and social processes. The salesperson recommends a higher price model with The real challenges for a brand manager come when he has to added features. make the consumer aware about the product/service offered• You attribute it to the fact that the salesperson wants you using a distinctive pattern, perhaps with a name, logo or colour, to have the best model. so that the strategy enables the customer to correctly identify• More commission for the salesperson. and choose the brand from a cluttered basket. The brand’s strength is not confined to the degree of recognisability and theManagerial Applications of Attribution Theory quality of the product offering. Strong global brands cater toAt the end we summarise with the important managerial strong emotional needs. A brand such as Nike talks aboutapplications of the attribution theory. The major applications believing in one’s limitlessness, while one such as Rin speaksare to: about destroying dirt, which is presented as a threat that• Develop believable ads. disrupts the neat orderly world that we live in.• esolve product problems. A strong global brand while addressing a fundamental human• Assess sales promotions motivation caters to this motivation in a distinctive way. It is driven by a distinctive brand idea, with the product being seenArticle #1 in the marketplace merely as an expression of the brand idea.Taking a Brand Global The product merely translates the brand idea into a tangibleFor a brand to be truly global, it has to address a funda- form, with features and styles, which is delivered to themental consumer need, while consistently reflecting the consumer. For example, the brand idea associated with Dettol issame set of values across the world. the complete protection it provides users from dirt and infection. The company has adopted this idea across the globe irrespective of the cultural domain it targets. Consumers in all these countries experience the brand idea only through the strategic actions of the brand in the marketplace. These brands send market signals consistent with the idea they stand for. Starting from the tangible attribution of the brand through the product to the integrated marketing communica- tion, the brand consistently sends the same signal in every market. The more consistent this marketing signal, the clearer the brand image across the country for global brands. Research suggests that strong brands are built over time. Trust in a brand gets built over a large number of interactions across a range of situations. So a strong global brand is like a network of complex psychological and market structural issues that include situations, associations, behaviours, feelings and symbols held together by a strong and powerful central idea. A successful marketing strategy has two options in creating aDEVELOPING a global brand largely depends on the brand’s market presence. It can kill competition by constant communi-ability to explore fresh avenues and sustain its competitive cation and advertising or use communication to makeadvantages in terms of economies of scale and productivity. A customers experience the brand and discriminate in its favour. Aglobal brand is one that is perceived to reflect the same set of strong global brand creates associations in the consumers’ mindvalues around the world and removes national barriers and to make them see differently by guiding consumers to attachlinguistic blocks while being marketed internationally. The basics distinct functional and emotional benefits and appropriateof brand building apply to global branding strategy also. For a meanings and beliefs to the brand. As a response to this effort,brand to become successful, a genuine demand or a psychologi- the consumer is willing to pay a premium for these brands onlycal need must exist in the target market. if they represent added value whether as superior quality or a clear emotional benefit. © Copy Right: Rai University11.623.3 85
  • 7. CONSUMER BEHAVIOUR Britannia’s connection to health is known the world over. If globalisation pressures are weak and the company’s assets — including the brand — are not transferable, then the company Brand communication should also communicate and connect need not go in for a global brand. It should concentrate on to people. The links between Britannia and health are felt all creating a higher brand value in the domestic market. If over the world. This connectivity is the rational justification for globalisation pressures are weak and the company has transfer- people to overcome the extra spending required to acquire the able assets, then it should look at extending these to a similar brand. Successful brands live beyond generations due to this market using a global brand. ability to connect. It is also not just a question of satisfying The home advantage due to a strong brand proposition can be customers of different countries with varied cultural back- used as a platform for building brands in selective markets. By grounds, but also one of connecting with new generations of this the company can reap added revenue and scale economies consumers with new sets of values, hopes and ambitions. For a with valuable international marketing experience. This category brand to be successful globally, it has to click across the vertical of global brand extension goes in for looking at analogous class of generations and horizontal mass of global markets. international markets that are similar to the home market in In a global economy, organisations must reach customers in terms of consumer preference, geographic proximity, cultural markets far from their home base. Strong brands act as similarity or even government regulation. Bajaj Auto’s exten- ambassadors when companies enter new markets or offer new sion to the South Asian market for its three-wheelers is an products. They also help in rectifying the corporate strategy to example of brand success in an analogous market. The success define which initiatives fit within the brand concept. Profes- of Indian films with a typical emotional branding is another sional services companies such as Andersen Consulting example of brand success. re-branded as Accenture have realised that conveying a sense of Companies can look for countries with a common cultural and trust and shared mission is as important as technical compe- linguistic heritage. The success of Ramanand Sagar’s serial tence in winning multi-million dollar contracts across the globe. Ramayan in the Asian market is another example. The story of Information and the media have made us all global citizens. Asian Paints in the Indian market has made it to go in for This presents an organisation with the opportunity to broaden global branding in countries such as Nepal, Fiji and Korea with market scope by internationalising product and service market- its typical low cost formulations and service delivery proposi- ing in order to reap the benefits of economies of scale. tions to support the brand name ‘Asian Paints’. Issues in Developing a Global Brand Companies from emerging markets can also go global and There are various issues at the organisational level that influence launch global brands. However, for having a global brand one the global branding strategy. There are two strategic parameters has to take into consideration a different set of opportunities affecting decisions on global branding. They are the relative and constraints. The low cost of wages and proximity to raw strength of globalisation pressure in that particular industry and materials also gives domestic companies a competitive advan- the degree to which the company has internationally transferable tage to go global. If these players can overcome the deficiencies assets. in skills and financial resources, then launching a global brand will be a difficult proposition. The success of Infosys and Wipro as brands in the global market are examples of global branding successes in the hi-tech industry. However, there are many complex factors that can affect a global marketing strategy. These include the nature of the product (for example, consumer durable products being © Copy Right: Rai University 86 11.623.3
  • 8. more suited to standardisation than non-durables), features of Literature surveys carried out for this article examined the global CONSUMER BEHAVIOURa particular market and even organisational history. fast-food industry. It was found that there was a variation in the branding strategies of the companies involved, despite the factCommon Approaches to Global Branding that many were striving to develop some degree ofThe development of standardised marketing strategies can vary standardisation. This seems to indicate that the creation of adramatically. For example, should the strategy be based on the global strategy will meet considerable local obstacles. Thecommon features of a transnational mass market or upon the transition of the Marathon brand to Snickers and Opal Fruitsidentification of common clusters in different countries? The to Starburst may indicate that global branding tends to beproblem for a multinational organisation is that it operates in a developed incrementally. As we can see this leads to longnumber of countries and adjusts its products and practises in established brands in one country being sacrificed in order toeach at substantial cost. So, by standardising elements of the achieve harmonisation.marketing mix through an international strategy, the argumentis that efficiency can be greatly improved. Points to PonderBut question marks hover over the extent to which a uniformmarketing strategy can be implemented. A great deal of diversityexists in geographical markets in terms of physical conditionsand marketing infrastructure, not to mention political and Dynamic nature of motivationcultural issues which may have an impact at the brand andadvertising level. Cultural disparities can be a major stumbling • Needs and goals are constantly changingblock for the generation of transnational brand names.Initiatives such as the World Trade Organisation are obvious •Substitute goalsattempts to combat some of these problems by the removal ofnational differences and the creation of a borderless world. Theidea is that this will enable the rationalisation of product mixes •Frustrationto eliminate brands geared towards particular local requirements.Technology - A Catalyst to Product StandardisationThe development of the Internet and satellite television haspaved the way for cross-boundary advertising and promotion.But management experts have also recognised that a basicsimilarity in tastes between countries is an important factor.Significant commonalities exist in Japanese, American andEuropean lifestyle patterns and consumer demands. It is oftenargued that increasing travel and electronic communications willlead to the harmonisation of such tastes and preferences.Various factors affect the extent to which companies adopt auniform global branding approach. There are several types oftransnational approaches that can be adopted. The ‘geocentric’approach is of interest here as it may be viewed as beingsynonymous with the term ‘global branding’ — whereby acompany attempts to identify similarities among markets andimplement strategies with standard components. However,standardisation and globalisation are not necessarily synony-mous, as companies may adopt global branding strategies thatcan contain within them varying degrees of adaptation to localconditions.The standardisation of global branding will take account oftwo broad dimensions — the marketing process and themarketing mix. In terms of the marketing mix, the manner inwhich a brand is positioned can affect cross-border transferabil-ity. Price is also a key issue as it can reinforce the position andperception of a brand. Price can vary dramatically in differentcountries due to the competitive structure of the market andtaxation. Therefore, substantial pricing differences can lead todifferent brand strategies being pursued. But brand identity anda clear, consistent message across countries can be assertedthrough standardised packaging. © Copy Right: Rai University11.623.3 87
  • 9. CONSUMER BEHAVIOUR Means - End Chain Model Attributes Consequences Values Attributes Consequences Values Involvement Low fat fat Healthy Self-respect Self-respect Wisdom Wisdom Healthy Many Variety Freedom Freedom •A person’s perceived relevance of an Choice flavors flavors of choices choices (of choice) (of object based on inherent needs, Happiness, Great Happiness, values, and interests. High Pleasure quality Tasting Lack of self- control - Types of Involvement • Product involvement • Advertising involvement • Purchase situation involvement © Copy Right: Rai University 88 11.623.3