CB-Module2.pptx

Module 2-Internal determinants of Consumer behavior
• Consumer Needs and Motivation- Types & System of needs- Maslow’s Hierarchy
of Needs-McClelland’s Theory of need Achievement-Vroom’s Expectancy theory-
Freud’s Psychoanalytical theory- Meaning and nature of Personality- Freudian &
Trait theories of Personality-Self Concept - Self Images-Lifestyle and AIO
inventories-Brand Personality- Meaning and dynamics of Perception – Elements
of Perception- Absolute and Differential threshold-Selective Perception- learning
& memory; nature of consumer attitudes; consumer attitude formation and change

3-2
What Is Motivation?
• The driving force within individuals that impels them to action
• Produced by a state of tension due to an unfulfilled need
• Which leads to conscious/subconscious attempts to reduce the tension

Motivation
• Why consumer do what they do
• Occurs when a need is initiated that the consumer wishes to satisfy
• State of tension exists that drives the consumer to attempt to reduce or
eliminate the need
• Need
• Utilitarian
• Hedonic-Hedonic needs are consumed for luxury purposes, which are desirable
objects that allow the consumer to feel pleasure, fun, and enjoyment from
buying the product.
• Desired end state is the consumer’s goal
• Discrepancy between consumer’s present state and the ideal state - Drive

BUYING MOTIVE
A buying motive is the reason why the customer
purchases the goods. So, motive refers to thought, urge,
feeling, emotion and drive which make the buyer to
react in the form of a decision.
They buy the goods due to several motives such as
economic, social, psychological, etc.
MM1/ CB
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Reasons or benefits that cause people to purchase products to
satisfy their wants and needs

Classification of Buying Motives
Buying Motives
Product Buying Motives Patronage Motives
Emotional product
buying motive
Rational product
buying motive
Emotional patronage
buying motive
Rational patronage
buying motive

1. Product buying motives
• These are influences and reasons that encourage a buyer to select a particular product
over other product.
• The influence or reason may be design, shape, dimension, size, color, packaging, etc.
• Product buying motives are classified as
• Emotional product buying motive
• Rational product buying motive

a) Emotional product buying motives
• Here, the buyer purchases a product without thinking logically and carefully. The buyer
takes decision on the basis of emotions.
• The factors that affect the emotional product buying motives are
• Costumer’s pride is associated with the product.
• Customer tries to copy from others.
• Purchase goods for affection of family member.
• Product that provide comfort are purchased on emotions.
• Sexually appealing products are purchased on emotions.
• Recreational, hunger or habitual products are purchased emotionally.
• Products that provide uniqueness or individuality.

b) Rational product buying motives
• When buyers understand the advantages and disadvantages of purchasing a product and
then takes a decision, it is known as rational product buying motive.
• For taking rational decisions, the buyer takes following factors into consideration:
• The safety or security features of the product.
• The value for money provided by the product.
• Suitability and utility of the product.
• Durability of the product
• Convenience of the product
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2. Patronage buying motives
• These are reasons that make a buyer favor a particular shop in preference
to other shops while buying a product.
Patronage buying motives are classified into two categories
• Emotional patronage buying motives
• Rational patronage buying motives

a) Emotional patronage buying motives
• These are favoring a particular shop for purchase without any
logical thinking or reason.
• The factors that affect emotional patronage buying motives are:
• Appearance of the shop
• Visual merchandising in the shop
• Reference groups influence about a particular shop
• Shopping in a big mall is a prestige issue.
• Copying other reference groups’ members
• mall is a prestige issue.
• Copying other reference groups’ members
22

b) Rational patronage buying motives
• These motives arise after the buyer analyzes the shop carefully and
provides the information to reference group members.
• Rational patronage buying motives include the following:
• Convenience of the shop to the buyers.
• Value for money provided by the shops.
• Financial schemes and facilities provided by the shop.
• Availability of wide range of goods.
• Reputation of the shop in the area.
• Services provided by the sales executives.
• facilities provided by the shop.
• Availability of wide rangeof goods.
• Reputation of the shop in the area.
• Services provided by the sales executives.
23

Theories of motivation
Theories that you have learned in HR/OB
• Maslow’s hierarchy of needs
• McClelland’s theory of need achievement
• Vroom’s expectency theory

Needs Theories of Motivation
• Basic idea:
• Individuals have needs that, when unsatisfied, will result in motivation
• Herzberg’s two factor theory (motivation-hygiene theory)
• Alderfer’s ERG theory
• McClelland’s theory of needs

Maslow’s Need Hierarchy
• Physiological Needs:
These include the most basic needs that are vital to survival
• Security Needs: These include needs for safety and security. (Insurance)
• Social Needs: These include needs for belonging, love and affection.
• Esteem Needs: After the first three needs have been satisfied,
esteem need becomes increasingly important. These include the need for
things that reflect on self-esteem, personal worth, social recognition and
accomplishment.
• Self-actualizing Needs: This is the highest level of Maslow’s
hierarchy of needs. Self-actualizing people are self-aware, driven by drive
to attain one’s full potential.
MM1/ CB
27

Expectancy Relationships
• The theory focuses on three relationships:
• Effort-performance relationship
• The perceived probability that exerting a given amount of effort will lead to
performance.
• Performance-reward relationship
• The degree to which the individual believes that performing at a particular level will
lead to a desired outcome.
• Rewards-personal goals relationship
• The degree to which organizational rewards satisfy an individual’s personal goals or
needs and are attractive to the individual.

How Does Expectancy Theory Work?
Expectancy
Effort Performance Link
E=0
No matter how much effort
I put in, probably not possible
to memorize the text in 24 hours
Instrumentality
Performance Rewards Link
I=0
My professor does not look
like someone who has $1 million
Valence
Rewards Personal Goals Link
V=1
There are a lot of wonderful things
I could do with $1 million
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Conclusion: Though I value the reward, I will not be motivated to do this task.

Marketing implication of the theories
Enables marketers to devise suitable advertising appeals depending on the
need level of particular product.
Markets have used this for market segmentation and brand positioning
At times Ad appeals can address one or more levels of needs.
market segmentation

Social Needs/ Need for affiliation

Self actualization
• https://www.youtube.com/watch?v=3t5M10gBVCc

• Vroom’s expectency theory - Individuals motivation will be based on the expectation
from a particular behavior. Its based on the premise that a behavior will lead to a particular
outcome and preference (Valence) for that outcome. From a marketing point of view it can be said
that marketers must work at increasing the perceived value of the product/services in the eyes of
the customer. This will increase the motivation of consumer to buy and also raise the expectancy of
satisfaction which will result form the purchase of the product or service.

3-40
Motivation and Marketing
Strategy
• Identify the needs and goals of the target
market
• Use knowledge of needs to segment the market
and to position the product
• Use knowledge of needs to develop promotional
strategies

Why study motivation?
It is necessary to conduct researches for measuring motivation
because it is an important tool through which the marketers can
get deeper insights into many of the “whys” of consumer
behavior…….

Copyright © 2006
Pearson Education Canada Inc
42
Personality, Self-Image, and
Life Style

How Does This Marketing Message Apply
the Notion of the Id?
46
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Five Slide

It Captures Some of the Mystery and The
Excitement Associated With the “Forces” of
Primitive Drives.
47

Copyright © 2006 Pearson Education
Canada Inc. 4-49
Neo-Freudian personality theory
CAD theory
• Social relationships are fundamental to the formation
and development of personality
Individuals can be classified into:
• Compliant Personality
• One who desires to be loved, wanted, and appreciated
by others.
• Aggressive Personality
• One who moves against others (e.g., competes with
others, desires to excel and win admiration).
• Detached Personality
• One who moves away from others (e.g., who desires
independence, self-sufficiency, and freedom from
obligations).

Why Is Appealing to an Aggressive Consumer a Logical
Position for This Product?
50

Because its Consumer Seeks
to Excel and Achieve Recognition
51

Canada Inc. 4-52
Theories of Personality –
Cont’d
• Cognitive Theories of Personality
• Personality as differences in cognitive processes (how
consumers process and react to information)

Canada Inc. 4-53
Need for Cognition (NC)
• A person’s craving for enjoyment of thinking
• High NC consumers are likely to:
• Relate better to written messages
• Want product-related information
• Spend more time processing print ads
• Enjoy using the internet to get information

Canada Inc. 4-54
Visualizers Vs Verbalizers
• A person’s preference for information presented visually or
verbally
• Visualizers require strong visual elements in ads
• Verbalizers prefer written information, print ads, question-answer
format

Why Is This Ad Particularly Appealing to
Visualizers?
55

The Ad Stresses Strong
Visual Dimensions
56

Why Is This Ad Particularly
Appealing to Verbalizers?
57

It Features a Detailed Description
58

Canada Inc. 4-61

Canada Inc. 4-62
Trait Theories – Cont’d
• Fixed consumption behaviour
• Consumers fixated on certain products or categories of
products
• Compulsive consumption behaviour
• “Addicted” or “out-of-control” consumers

Canada Inc. 4-63
Consumer Innovativeness
• The degree to which consumers are
receptive to new products, new services or
new practices.

Canada Inc. 4-64
Consumer Materialism
• The extent to which a person is considered “materialistic”
• Possessions seen as for one’s identity
• Materialistic People
• Value acquiring and showing-off possessions
• Seek lifestyles full of possessions

Canada Inc. 4-65
Consumer Ethnocentrism
• Ethnocentric consumers feel it is wrong to purchase foreign-made
products
• They can be targeted by stressing nationalistic themes

Canada Inc. 4-66
Brand Personality
• Personality-like traits associated with brands
• Volvo - safety
• Perdue - freshness
• Nike - the athlete
• BMW - performance
• Levi’s 501 - dependable and rugged

Canada Inc. 4-67

Canada Inc. 4-68
(continued)

Canada Inc. 4-69
Figure 4-11 (continued)

Canada Inc. 4-72
Personality and Marketing Strategy
• Identify relevant personality traits
• Target consumers with the relevant personality traits
• Develop promotional messages that appeal to consumers with
specific personality traits
• Develop a personality for the brand

Canada Inc. 4-73
Opening Vignette
 Do you see yourself as beautiful?
 Only1% of all women see themselves as beautiful
 Most ads portray an ideal image that is unattainable

Canada Inc. 4-74
Self and Self-Image
• Self-image: A person’s perceptions of his/her self
• People have multiple selves
• Different selves in different situations

Canada Inc. 4-77
Actual Self-Image Ideal Self-Image
Ideal Social
Self-Image
Social Self-Image
Expected
Self-Image
Different Self-Images

Canada Inc. 4-80
Altering Self Images
• If actual and ideal self-images are different, consumers may use
products to alter their selves

Canada Inc. 4-81
Self Concept and Marketing Strategy
• Use self-concept for segmentation and positioning
• Market to consumers’ actual or ideal self-images
• Depends on the nature of the product
• Promote products as ways of altering or extending self-image
https://www.youtube.com/watch?v=litXW91UauE
https://www.youtube.com/watch?v=z2T-Rh838GA

Canada Inc. 4-82
Life Style and Psychographics
• Psychographic Segmentation
• Segmenting consumers on the basis of their activities, interests and
opinions
• Psychographic-demographic profiles
• Geodemographic segmentation

AIO
• What is AIO- Activities, Interests and Opinions?
• AIO or Activities, Interests and Opinions are parameters based on which customers are grouped
under psychographic segmentation.
• AIO facilitates in understanding the attitudes, motives, needs and perception regarding a product or
a brand based on the customer's activities, interests and opinions.
• The most common applications of AIOs are in market segmentation and advertising as it helps
companies to target them better.

AIO (Activities, Interests and Opinions) dimensions
Activities Interests Opinions
Work Family Themselves
Hobbies Home Social Issues
Social Events Job Politics
Vacations Community Business
Entertainment Recreation Economics
Club Membership Fashion Education
Community Food Products

AIO Process Methodology
• Marketers’ gives respondents long list of statements.
• Ask them to indicate how much they agree or disagree with each of the statements.
• Marketers then create profiles of customers in terms of activities and patterns of product usage
using data from large samples. This is an exhaustive process which yields qualitative data about the
customer.

Advantages of AIO
• Defining the target market – This method facilitates defining the target market beyond simple demographic or
product usage variations
• Create a new view of the existing market – Creating strategies with stereotyping in mind about a typical
customer in mind may not always match assumptions.
• Position the Product – Marketers can use psychographic information to emphasize features in a product that fits
with a person’s lifestyle
• Communicating product attributes in better way - Provides useful input to advertisers regarding a much richer
mental image of target consumer who are in the process of communicating something useful about the product.
• Product strategy development – Helps marketers identify new product opportunities, draft media strategies by
understanding how a product fits or does not fit into consumer lifestyle.
• Marketing Social and Political Issues – Psychographic segmentation becomes important in political campaigns
and policy makers for finding commonalities among consumers.

Canada Inc. 4-87
Life Styles and Marketing Strategy
• Use life styles for segmentation and positioning
• Develop media campaigns based on consumer life styles

Personality
…a broad concept that can be thought
of as a way of organizing and grouping how an
individual typically reacts to situations
Lifestyle
… a mode of living identified by a person’s
activities, interest, and opinions
useful for segmentation and targeting
Self-Concept
How consumers perceive themselves, including
attitudes, perceptions, beliefs and self-evaluations
ideal self-image vs. real self-image

Canada Inc. 5-89
Perception
The process by which an individual selects,
organizes, and interprets stimuli into a
meaningful and coherent picture of the world
How we see the world around us

Canada Inc. 5-90
Elements of Perception
• Sensation-The immediate and direct response of the sensory
organs to stimuli.
• Absolute threshold- The lowest level at which an individual can
experience a sensation.
• Differential threshold-The minimal difference that can be
detected between two similar stimuli. Also called j.n.d(just
noticeable difference)

Canada Inc. 5-91
Weber’s Law
• The stronger the initial stimulus, the greater the additional
intensity needed for the second stimulus to be perceived as
different

Canada Inc. 5-92
Marketing Applications
of the JND
• Need to determine the relevant j.n.d. for their products
• so that negative changes are not readily discernible to the public
• so that product improvements are very apparent to consumers

Selective perception
9/20/2023
93
Selective
perception
Screening out the
information that
causes discomfort
or that
contradicts our
beliefs
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Selective
Perception
The tendency to
selectively interpret
what one sees on the
basis of one’s
interests ,
background,
experience, and
attitudes

Learning
Types of
Learning
Description
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience

Canada Inc. 6-96
Consumer Learning
A process by which individuals acquire the purchase and
consumption knowledge and experience that they apply to future
related behaviour.

Canada Inc. 6-97
Importance of Learning
• Marketers must teach consumers:
• where to buy
• how to use
• how to maintain
• how to dispose of products

Canada Inc. 6-98
Learning and Marketing
Strategy
• Use rote learning to teach consumers
about the brand
• Use reasoning or problem solving for
complex or high-involvement products
• Use modelling to extinguish negative
behaviour
• Use knowledge of information processing
to help consumers store, retain and
retrieve messages.

How are attitudes learned?
• Shift from no attitude to an attitude is a result of learning
• Conditioning
• Follow the purchase and consumption of a product
• Information exposure

Sources of influence on attitude formation
• Personal experience
• Influence of family
• Direct marketing and mass media
• Internet

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