Consumer needs are the essence of the marketing concept. The key to company’s survival, profitability, & growth in a highly competitive market place is its ability to identify and satisfy unfulfilled consumer needs better and sooner then the competition.
An example:When the prices of 2 choc products – “A Swiss product known for its Superior taste” and “An American everyday chocolate item” were reduced by same amount, most consumers bought the high quality choc.However when the prices were further reduced by the same amount, but one that resulted in lower quality product being free, most consumers took the free, lower quality product, and gave up the chance to buy the superior choc. For a incredibly low price.it appears that, the word FREE triggered an emotional and irrational buying behaviour.
Needs are never fully satisfied – satisfaction is only temporary, clearly eating once wont satisfy our hunger forever. Also as soon as one need is satisfied, new needs emerge. After we have eaten a meal, we might next have the need to be with others (the need for affiliation). Thus needs are dynamic.
Behaviorist school : Considers motivation to be a mechanical process; behavior is seen as the response to a stimulus and the elements of conscious thought are ignored.Cognitive school : They believe that all the behavior is directed as goal achievement . Needs and past achievements are reasoned, categorized and transformed into attitudes and beliefs that helps an individual to satisfy needs; together these factors determine the action that a person takes to satisfy a particular need.
These needs can be subsumed within Maslow's need hierarchy; considered individually, however, each has a unique relevance to consumer motivation.
Consumer behaviour team motivation
Consumer MotivationPGDM FT 2011-13, Batch – V Presented By: Anant Sinha Mayank Dhamija Ruchin Sharma
Consumer motivation is an internal state that drives people to identify and buy products or services that fulfill conscious and unconscious needs or desires. The fulfillment of those needs can then motivate them to make a repeat purchase or to find different goods and services to better fulfill those needs.
Learning Objectives Understand the types of human needs, and motives, and the meaning of Goals. Understand the dynamics of motivation, arousal of needs, setting of goals, and Interrelationship between Needs, and Goals. To learn about several systems of needs developed by Researchers. To understand how human motives are studied and measured.
What is Motivation ?•Motivation refersto the driving forcewithin individualsthat impels them toaction.•This driving force isproduced by a stateof tension, whichexist as the result ofan unfulfilled need.
Needs (1/2) A need is something that is necessary for organisms to live a healthy life. Every individual has some needs. o Innate Needs (primary) – physiological needs which include needs for food water shelter, air, clothing etc. o Acquired Needs (secondary) – that we learn in response to our culture on environment, includes needs for self-esteem, prestige, affection, power etc.
Needs (2/2) Needs can also be classified as Extrinsic, and Intrinsic o Extrinsic Needs – It motivate an individual to achieve the end result. Ex- Buying a product that symbolizes status to impress others. o Intrinsic Needs – Ex- If an individual buys a car for his/her own comfort and enjoyment
Goals A goal is a desired result an person or a system plans and commits to achieve. To have success in life, goals are essential. o Generic Goals – If a student tell his parents that he wants to become an entrepreneur, he has started a Generic goal. o Product Specific goal – If a student says he wants to get an MBA degree from the IIM, he has expressed a Product-Specific goal.
The selection of Goals Positive Goal : Goal towards which behavior is directed (Approach object) Negative Goal : Goal from which behavior is directed away (Avoidance Object)
Rational v/s Emotional Motives The term Rationality implies that consumer select goals based on totally objective criteria such as Size, weight, price, or miles per liter. Emotional Motives imply the selection of goals according to personal criteria such as pride, fear, affection etc.
Dynamics of Motivation Needs and Goals change and grow in response to an individual’s physical condition, environment, interaction with others, and experiences. As individual attain their goals, they develop new ones. If they do not attain their goals they continue to strive for old goals or they develop substitute goals. Some of the reasons why need-driven human activity never ceases include the following: o Many of the needs are never fully satisfied. o As needs become satisfied, new and higher order needs emerge that cause tension. o People who achieve their goals, set new and higher goals for themselves.
Arousal of Motives Physiological Arousal : Needs at any specific moment in time are based on the individual’s physiological condition at that moment. Emotional Arousal: Sometimes day dreaming results in the arousal or stimulation of latent needs . Cognitive Arousal: Random thoughts can lead to a cognitive awareness of needs . The two opposing philosophies : Behaviorist school Cognitive school
Motivational Theories Maslow’s Hierarchy of Needs o Consumers respond to motivation according to levels of needs in this order: Physiological Safety/security Affiliation Esteem o If these needs are met, the person may then be motivated by growth needs
Trio of Needs (1/2) Some psychologies believe in the existence of trio of (basic) needs: o The needs for Power o The needs for Affiliation o The needs for Achievement Power – It relates to an individual’s desire to control his/her environment . It includes the need to control other persons and various objects. Affiliation – people with high affiliation needs tend to be socially dependent on others. They often select goods they feel will meet with the approval of friends.
Trio of Needs (2/2) Achievement – people with high needs for achievement tend to be more self confident, enjoy taking calculated risk, actively research their environments, and value feedback.
The Measurements of MotivesQualitative Methods : Motivational Research Self-reported measures of motives Qualitative measures of motives Subconscious meaning of Products
Self-Reported Measures of motives Part-A : A scale measuring security, social, esteem, autonomy, and self –actualization needs The scale includes 13 job related statements subjects responded on 7 point semantic differential scale ranging from “least important” to “Most important” Part-B : A scale measuring achievement , affiliation, autonomy and dominance The scale includes 20 behavioral statements subjects responded on 7 point semantic differential scale ranging from “Never” to “Always”
Qualitative Measures of Motives Metaphor Analysis: ZMET(Zaltman Metaphor Elicitation Technique) Storytelling Word Association and Sentence Completion Thematic Appreciation Test Drawing Pictures and Photos Sorts
Subconscious Meaning ofProducts Product personality Profiles Constructed by Earnest Ditcher Baking Automobiles Dolls Ice-cream
Evaluation of Motivational Research Qualitative Research enables the marketers to explore consumer reaction to ideas and advertisements at an early stage and avoid the costly errors resulting from placing ineffective and untested ads. It serves as a foundation of structured , quantitative marketing research studies conducted on larger, more representative samples of consumers
Culture and Need State Cultural aspect matters in a number of states Example: Pepsodent ad showed a mother scolding her child for eating snacks no the way to school 2 minutes Maggi Brand needs to make use of Cultural changes Example: Fairness creams for men