Cb 2.1
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Introduction to Consumer Behaviour; Consumer Behaviour and Marketing Strategy; Consumer Involvement – Levels of involvement, and Decision Making. Consumer Decision Process – Stages in Decision Process, Information Search Process; Evaluative Criteria and Decision Rules, Consumer Motivation – Types of Consumer Needs, Ways of Motivating Consumers. Information Processing and Consumer Perception. Consumer Attitudes and Attitude Change; Influence of Personality and Self Concept on Buying Behaviour, Psychographics and Lifestyles, Impuse Buying. Diffusion of Innovation and Opinion Leadership, Family Decision Making, Influence of Reference Group Industrial Buying Behaviour– Process and factors, Models of Consumer Behaviour – Harward Seth, Nicosia, E& D, Economic Model; Introduction to Consumer Behaviour Audit; Consumer Behaviour Studies in India.
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Cb 2.1
- 1. CONSUMER MOTIVATION Prof. Abhipsa Mishra
- 2. Motivation as a Psychological Force • Motivation is produced by a state of tension, by having a need which is unfulfilled. Consumers want to fulfill these needs and reduce the state of tension. Eg. Need for food • Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs Eg. Need for a pair of jeans Consumer Motivation I Prof. Abhipsa Mishra
- 3. Goals The sought-after results of motivated behavior • Generic goals are general categories of goals that consumers see as a way to fulfill their needs • Product-specific goals are specifically branded products or services that consumers select as their goals Consumer Motivation I Prof. Abhipsa Mishra
- 4. Holiday Travel Plan • How would you plan your next coming holiday? Or think of any plan that you had before. • What factors influence your decision making? 4Consumer Motivation I Prof. Abhipsa Mishra
- 5. The Selection of Goals • The goals selected by an individual depend on their: Personal experiences Physical capacity Prevailing cultural norms and values Goal’s accessibility in the physical and social environment Consumer Motivation I Prof. Abhipsa Mishra
- 6. Discussion Questions • What are three generic goals you have set for yourself in the past year? • What are three product-specific goals you have set in the past year? • In what situations are these two related? • How were these goals selected? Was it personal experiences, physical capacity, or prevailing cultural norms and values? Consumer Motivation I Prof. Abhipsa Mishra
- 7. Rational vs. Emotional Motives Rationality implies that consumers select goals based on totally objective criteria, such as size, weight, price, or miles per gallon Emotional motives imply the selection of goals according to personal or subjective criteria Consumer Motivation I Prof. Abhipsa Mishra
- 8. Arousal of Motives Physiological arousal (they get hungry) Emotional arousal (frustrated) Cognitive arousal (they read an ad that made them think about their needs) Environmental arousal (the weather becomes cold) Consumer Motivation I Prof. Abhipsa Mishra
- 9. Arousal of Motives Physiological arousal (they get hungry) Emotional arousal (frustrated) Cognitive arousal (they read an ad that made them think about their needs) Environmental arousal (the weather becomes cold) Consumer Motivation I Prof. Abhipsa Mishra
- 10. Arousal of Motives Physiological arousal (they get hungry) Emotional arousal (frustrated) Cognitive arousal (they read an ad that made them think about their needs) Environmental arousal (the weather becomes cold) Consumer Motivation I Prof. Abhipsa Mishra
- 11. Arousal of Motives Physiological arousal (they get hungry) Emotional arousal (frustrated) Cognitive arousal (they read an ad that made them think about their needs) Environmental arousal (the weather becomes cold) Consumer Motivation I Prof. Abhipsa Mishra
- 12. Consumer Motivation • Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption • Gives insights into why people buy certain products • Stems from consumer needs: industries have been built around basic human needs Consumer Motivation I Prof. Abhipsa Mishra
- 13. Types of Needs • Physiological (or biogenic) needs that are considered primary needs or motives Innate Needs • Learned in response to our culture or environment. Are generally psychological and considered secondary needs Acquired Needs Consumer Motivation I Prof. Abhipsa Mishra
- 14. Types of Needs • Safety and Health Needs Threats to our safety and health motivate purchases for personal security and protection • Need for Love and Companionship Services and products help individuals find and attract others Products are often used as symbols of love and caring Consumer Motivation I Prof. Abhipsa Mishra
- 15. Types of Needs • Need for Financial Resources • Social Image Needs Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image • Need for Pleasure Products, services, and consumption activities provide fun and excitement Consumer Motivation I Prof. Abhipsa Mishra
- 16. Types of Needs • Need for Financial Resources • Social Image Needs Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image • Need for Pleasure Products, services, and consumption activities provide fun and excitement Consumer Motivation I Prof. Abhipsa Mishra
- 17. Types of Needs • Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Plays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately • Need to Give Give something back to others or reward ourselves. Self-gifts let us motivate, reward, and console ourselves Consumer Motivation I Prof. Abhipsa Mishra
- 18. Types of Needs • Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Plays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately • Need to Give Give something back to others or reward ourselves. Self-gifts let us motivate, reward, and console ourselves
- 19. • Need for Information Plays an important role in persuasion —if an ad appears when consumers need information, they are more likely to pay attention than when they don’t need the information One reason we read or watch TV Fuels Internet usage • Need for Variety Marketers may introduce different versions of original brand Variety may become focus of product positioning Types of Needs Consumer Motivation I Prof. Abhipsa Mishra
- 21. The Dynamics of Motivation • Needs are never fully satisfied • New needs emerge as old needs are satisfied • People who achieve their goals set new and higher goals for themselves Consumer Motivation I Prof. Abhipsa Mishra
- 22. Substitute Goals • Are used when a consumer cannot attain a specific goal he/she anticipates will satisfy a need • The substitute goal will dispel tension • Substitute goals may actually replace the primary goal over time Consumer Motivation I Prof. Abhipsa Mishra
- 23. Frustration • Failure to achieve a goal may result in frustration. • Some adapt; others adopt defense mechanisms to protect their ego. Consumer Motivation I Prof. Abhipsa Mishra
- 24. Defense Mechanisms- Table 4.2 (excerpt) Construct Items Aggression In response to frustration, individuals may resort to aggressive behavior in attempting to protect their self-esteem. The tennis pro who slams his tennis racket to the ground when disappointed with his game or the baseball player who physically intimidates an umpire for his call are examples of such conduct. So are consumer boycotts of companies or stores. Rationalization People sometimes resolve frustration by inventing plausible reasons for being unable to attain their goals (e.g., not having enough time to practice) or deciding that the goal is not really worth pursuing (e.g., how important is it to achieve a high bowling score?). Regression An individual may react to a frustrating situation with childish or immature behavior. A shopper attending a bargain sale, for example, may fight over merchandise and even rip a garment that another shopper will not relinquish rather than allow the other person to have it. Withdrawal Frustration may be resolved by simply withdrawing from the situation. For instance, a person who has difficulty achieving officer status in an organization may decide he can use his time more constructively in other activities and simply quit that organization.
- 25. • Approach-approach: deciding between two or more desirable options • Avoidance-avoidance: deciding between two or more undesirable options • Approach-avoidance: behavior has both positive and negative consequences Types of Motivational Conflict Consumer Motivation I Prof. Abhipsa Mishra
- 26. A Trio of Needs Power (Ego needs) • Individual’s desire to control environment Affiliation (Social needs) • Need for friendship, acceptance, and belonging Achievement • Need for personal accomplishment • Closely related to egoistic and self-actualization needs Consumer Motivation I Prof. Abhipsa Mishra
- 27. Motivational Conflict and Need Priorities • Resolving motivational conflicts requires prioritizing needs • Maslow’s hierarchy Some needs take precedence over other needs—physiological needs take top priority Differences in the importance attached to various needs affects how consumers evaluate products Because of consumers’ different motivational priorities, companies use benefit segmentation: dividing consumers into different market segments based on benefits they seek from purchase and consumption Consumer Motivation I Prof. Abhipsa Mishra
- 29. To Which of Maslow’s Needs Does This Ad Appeal? Consumer Motivation I Prof. Abhipsa Mishra
- 30. Both Physiological and Social Needs Consumer Motivation I Prof. Abhipsa Mishra
- 31. To Which of Maslow’s Needs Does This Ad Appeal? Consumer Motivation I Prof. Abhipsa Mishra
- 32. Egoistic Needs Consumer Motivation I Prof. Abhipsa Mishra
- 33. Egoistic Needs Consumer Motivation I Prof. Abhipsa Mishra
- 34. To Which of Maslow’s Needs Does This Ad Appeal? Consumer Motivation I Prof. Abhipsa Mishra
- 35. Self-Actualization Consumer Motivation I Prof. Abhipsa Mishra
- 36. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involvement determine amount of effort consumers exert in satisfying needs Consumer Motivation I Prof. Abhipsa Mishra
- 37. The Challenge of Understanding Consumer Motivation Reasons underlying consumer motivation are not always “obvious” Research is necessary to discover real motivations behind behaviors People don’t always want to disclose real reasons for their actions People don’t always know why they do what they do — unconscious motivation Motivations change over time Consumer Motivation I Prof. Abhipsa Mishra
- 38. Motivating Consumers Motivating with Money • Price cuts, specials, rebates, and coupons motivate purchase • Resulting sales may increase, but profits may not • Attracts consumers less likely to repeat • Price reductions may increase price sensitivity Consumer Motivation I Prof. Abhipsa Mishra
- 39. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase Consumer Motivation I Prof. Abhipsa Mishra
- 40. Motivating Consumers Provide Other Incentives • Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase • There are limitations and shortcomings for this strategy in addition to the products offered as a premium being valued less (value- discounting hypothesis) Consumer Motivation I Prof. Abhipsa Mishra
- 41. Motivating Consumers Implement a Loyalty Program • Motivate repeat buying by providing rewards to customers based on how much business they do with the company • Tracks consumer purchases and provides estimates of Customer Lifetime Value Consumer Motivation I Prof. Abhipsa Mishra
- 42. Motivating Consumers Enhance Perceived Risk • Perceived risk: consumers’ apprehensions about the consequences of their behavior (buying and consuming the product) • Greater perceived risk increases search • Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk Consumer Motivation I Prof. Abhipsa Mishra
- 43. Motivating Consumers Provoke Consumers’ Curiosity • For new products, educating potential customers is crucial • Curiosity often leads to an enhanced need for information • May advertise a benefit that is not normally associated with the product Consumer Motivation I Prof. Abhipsa Mishra
Editor's Notes
- Continuing with our example of jeans, we can understand the types of goals that exist. When a consumer states they want a pair of jeans, they have stated a generic goal. When they announce they really want a pair of Calvin Klein jeans, then they have stated product-specific goals.
- Consumers have many possible goals when making decisions. They are strongly influenced by their experiences, personality, and others’ opinions and input. When choosing goals, they have to keep in mind what is socially acceptable and what they can physically attain. Think of a recent decision you might have made to go on a vacation. How was it influenced by personal experiences, the accessibility of the goal, and the social environment?
- There are many responses to this question based on your personality, family, experiences, friends, and teacher influences. Maybe your goals are educational, financial, and fitness related. Perhaps you have decided to attend a certain program at the college, join a gym, and open accounts at stock brokerage firms. In general, the product goals should fit in to the generic goals. It is interesting to reflect on how each of the influences and experiences in your life have led you to both your generic and your product-specific goals.
- There has been extensive research regarding rational versus emotional motives during purchase. Their existence has been tied to how consumers view marketing variables, including advertisements and pricing adjustments. Furthermore, it must be realized that the definition of emotional vs. rational motivation differs significantly from one consumer to another and in different situations.
- Eg. The need for food is more of an innate need and is considered a primary need. The need for a pair of jeans would be considered acquired. The need for clothing could be considered primary, but the need specifically for a pair of jeans is acquired, especially when they are a certain brand or designer jean.
- Motivation is highly dynamic and constantly changes in response to life experiences. Motivations change as we age, interact with others, change careers, acquire wealth, become ill, marry or divorce, or pursue education. Humans constantly have needs. This is due in part to the fact that our needs are never fully satisfied, or once satisfied, reappear. Hunger is a good example of a need that is often not satisfied and reappears. As humans, we also develop new needs as we satisfy existing needs. The hierarch of effects model shows how we meet our lower-level needs first and then move up the hierarchy. Finally, our needs are based on the goals that we set for ourselves. If one sets a goal to enter politics, they may feel they need a law degree. However, if they are unsuccessful in getting accepted at law school, their needs may change and they may want to pursue a few years of work experience first and need to find a job.
- It is very common that a consumer can not attain a goal. This may be due to a lack of money, ability, desire, or accessibility. In this instance, the consumer often substitutes a different goal to reduce the tension created from the existence of this need. In time, this substitute goal might replace the initial goal. For instance, if a consumer wanted a certain cable television service, but it was not available in their area, they might choose a satellite television provider. Over time, they may be very satisfied with this choice and feel that they actually prefer the satellite service over the cable television service.
- Failure to achieve a goal and the frustration that follows has been experienced by everyone at some time or another. Marketers must realize what consumers’ responses might be and how they can address these responses. Online education exists for those who are too far or do not have the structured time to attend college. The table on the next slide represents several defense mechanisms that consumers might exhibit when they are frustrated about not meeting a goal. The understanding of these defense mechanisms will help provide many opportunities to craft advertising messages to reach the emotional side of the consumers.
- Defense mechanisms are used when people cannot cope with frustration. They are often developed to protect one’s ego from feelings of failure when goals are not achieved. Perhaps you can identify a time when you used a defense mechanism when reacting to a difficult situation.
- Some psychologists believe that this trio of needs exists for most consumers and that marketers can find a tie to motivation. Power refers to the individual’s desire to control other people and objects – it is tied to a type of ego needs. Affiliation is similar to Maslow’s social need and suggests that behavior is influenced by the desire for social ties. Finally, the need for achievement, like the other needs, will vary from individual to individual.