Consumer Motivation

Key Concepts

Concept of Motivation Consumer needs Motivation Theories

What is Motivation?

Motivation refers to an activated state within a person that leads to goal-directed behavior.
It consists of the drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior. VLCC- Goal of fitness, Castrol GTX Extraavoidance motive

Motivation begins with the presence of a stimulus that spurs the recognition of a need. Need recognition occurs when a perceived discrepancy exists between an actual and a desired state of being Needs can be either innate or learned. Needs are never fully satisfied. Feelings and emotions (I.e., affect) accompany needs

Typology of Needs

Biogenic Needs- Those needs people are born with those elements necessary to maintain life such as food, water etc. Psychogenic Needs- Reflect the priorities of culture. And their effect on behaviour. Utilitarian Needs- Emphasize the tangible attributes of product such as amount of fat, protein in kabab, durability of pair of glasses. Hedonic Needs- Look for the product to meet our needs of excitement, self confidence to escape the routine aspects of life.

The Structure of Emotions

Ten Fundamental Emotions People Experience: Disgust Interest Joy Surprise Sadness Anger Fear Contempt Shame Guilt

Characterization of Motivation

Motivational Direction
Motivational Strength Motivational Conflicts

Types of Motivational Conflict

Approach-Approach Conflict- A choice between two desirable alternatives Approach-Avoidance Conflict- Involves a choice in which some aspects of product are positive and others are negative. Avoidance-Avoidance Conflict- Involves a choice between two negative alternatives.

Some General Theories of Motivation

Maslow hierarchy: physical, safety, belongingness, ego, and self-actualization. Parachute oil- Social Needs, Vicks Vapo rub- Safety needs, Ray Ban- self esteem needs, Swift Car- social needs Alderfer Hierarchy He developed hierarchy with ERG(Existence, relatedness, growth) McCllelands Theory(experiment with TAT)- Individuals with high need for achievement strongly value personal accomplishment. Need for affiliation(maslow social needs), need for power(maslow ego needs), need for achievement(BoostSachin) Vrooms expectancy Theory- Suggests that expectations of achieving desirable outcomes- positive incentives rather then being pushed from within motivate our behaviour.(process theory)

Motivation Research

Projective Technique
Means-End Chain Model

The Motivation to Avoid Risk

Perceived risk is a consumers perception of the overall negativity of a course of action based upon as assessment of the possible negative outcomes and of the likelihood that these outcomes will occur. Perceived risk consists of two major concepts the negative outcomes of a decision and the probability these outcomes will occur.

7 Types of Consumer Risks.

Financial Performance Physical Psychological Social Time Opportunity Loss

Factors Influencing Risk Perception

Characteristics of the persone.g., need for stimulation Nature of the task

Voluntary risks are perceived as less risky than involuntary tasks.

Characteristics of the productprice Salience of negative outcomes

Managerial Applications of Motivation

Positioning/differentiation: use discriminative stimuli distinguish one brand from another. Environmental analysis: identify the reinforcers and punishers that impact consumers; identify factors that influence risk perception. Market research: measure motivational needs (e.g., McClellands needs and need for arousal), measure risk perception. Marketing mix: use motivational needs to design products (e.g., safe cars) and to develop promotional strategy that meets needs. Develop messages to influence consumer attributions. Use in-store promotions to prime consumers. Segmentation: Segment market based upon motivational needs.

Consumer Perception

Elements of perception

Perception is defined as the process by which an individual selects, organize, and interprets stimuli into a meaningful and coherent picture of the world. Sensation: Sensation is the immediate and direct response of the sensory organs to stimuli. Stimulus: A stimulus is any unit of input to any of the senses.

Sensory receptors: Sensory receptors are the human organs that receive sensory inputs. Concepts Underlying Perception 1. Sensory Thresholds

The absolute threshold The lowest level at which an individual can experience a sensation is called the absolute threshold. Its the point where a consumer can detect a difference between something and nothing is that persons absolute threshold for that stimulus. Sensory adaptation In perception the term adaptation refers specifically to getting used to certain sensations, that is, becoming accommodated to a certain level of stimulation

The differential threshold The minimal difference that can be detected between two similar stimuli is called the differential threshold. Just noticeable difference between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus. Marketing applications: 1. Negative changes(eg. Reduction in product size or quality, increase in price) 2. Product improvement(eg. Improved or updated packaging, larger size or lower price)

2. Subliminal Perception:
Consumer sometimes are stimulated below their level of conscious awareness that is they can perceive stimuli without being consciously seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception because the stimulus is beneath the threshold or limen of conscious awareness through not beneath the absolute threshold of the receptors involved.

3. Webers Law

Weber found that the amount of change required for the perceiver to notice a change is systematically related to the intensity of the original stimulus.

Consumer Image & Marketing Perception

Semiotics- Is the study of the correspondence between signs and their roles in how we assign meanings. The object is the product that is the focus of the message. The sign is the sensory image that represents the intended meanings of the object. Perceptual mapping and product positioning- Our perception of a brand comprise both its functional attributes(features, price etc.),and its symbolic attributes (its image). We can use this information to construct a perceptual map. A University professor created a perceptual map for Toyota models for his class Middle eastern pedigree.

Perceptual Mapping
SAFETY
Brand X FERRARI

PRICE
VOLVO Brand Y

High

Low High Low

Brand Image- McDonalds brand make the difference.

Perception of the riskThe risk may be of five types 1. Financial Risk 2. Functional Risk 3. Social Risk 4. Psychological Risk 5. Physical Risk

Factors Influencing Perception

Internal
External

Adaptation refers to the degree in which consumers continue to notice a stimulus over time.

Process of Perception

Exposure
Attention Interpretation

Perceptual Process
1.

2.

3.

Selective Attention- The tendency of people to screen out most of the information to which they are exposed. This means that marketers would need to strive or work hard in order to attract the attention of consumers. Selective Distortion The lack of correspondence between the way a stimulus is commonly perceived and the way an individual perceives under the given conditions or circumstances. Selective Retention- Consumers are likely to remember good points made about competing brands.

Dynamics of perception

Individual are very selective as to which stimuli they recognize they subconsciously organize the stimuli they do recognize according to widely held psychological principles and they interpret such stimuli subjectively in accordance with their personal needs, expectations and experiences.

1.

2.

Consumers subconsciously exercise a great deal of selectivity as to which aspects of the environment they perceive. An individual may look at some things , ignore others and turn away from still others. In actuality people receive only a small fraction of the stimuli to which they are exposed. Which stimuli get selected depends on two major factors in addition to the nature of the stimuli itself Consumers previous experience as it affects their expectations Their motives at the time

Nature of the stimulus Marketing stimuli include an enormous number of variable that affect the consumers perception such as the nature of the product , its physical attributes the package design, the brand name, the advertisements and commercials, the position of the print ad or commercial or the editorial environment. Expectations People usually see what they expect to see and what they expect to see is usually based on familiarity, previous experience or preconditioned set.

Motives

People tend to perceive the things they need or want, the stronger the need, the greater the tendency to ignore unrelated stimuli in the enviornment.

Consumer Learning Process

Learning occurs intentionally (problem solving process) as well as un-intentionally. learning and memory theories are useful in understanding that how consumers wants and motives are acquired and how their tastes are developed, how frequently we are going to repeat our advertising , how visuals ,symbols ,sounds and other techniques can facilitates in regarding promotion.

Learning

Can be defined as relatively permanent change on behavior occurring as a result of experience. (experience may be of purchase and consumption)

Types of learned behaviors 1. Physical behavior

We learn many physical behaviors to respond to a situation e.g. learn to walk , talk , interact with others, Consumers learn certain physical activity through the process of modeling, in which they mimic the behavior of other individual such as celebrities. Traffic signs , McDonald's Golden arches, slogans etc. and also the cognitive process. Human learn to value certain elements of their environment and dislike others. As a result they develop certain favorable and unfavorable attitudes towards some product which depends upon their wants needs and goals .

2.

Symbolic Learning and problem Solving

3.

Affective Learning

4 Elements of learning

Motives

Motives arouse individuals and as a result they respond. This arousal function is essential because it activates the energy needed to engage in learning activity. By achieving the goal ,the arousal reduces, but have a greater tendency to occur again, that is why marketers put their product in a way that when relevant consumer motive arouse their products are their to satisfy the need. This result that consumer will learn a connection b/w the product and motive . Capable of providing direction i.e. it influences the manner in which respond to motive.e.g. hungry man is guided by restaurant signs or aroma of food. Mental or physical activity in reaction to a stimulus satiation. Anything that follows the response and increase the tendency of response to reoccur in a similar situation.

Cues

Response

Reinforcement

Two theories of learning

Behavioral learning theory. Based on the fact that learning occurs through the connection b/w an external stimuli and response (SR). This assumes that learning takes place as a result of responses to external events. Stimulus--Consumers--- Response Black Box Cognitive learning theory. Based on the fact that learning is more complex and involved certain mental psychological processes those are motivation, perception, attitude ,and integration processes.

Behavioral learning theory.

1. 2.

Two approaches of the theory Classical conditioning Operant conditioning Classical conditioning Says that learning is an associative process with an already existing relationship b/w a stimuli and response. e.g. of food and salivation that is not taught rather it already exists. or we can say food is unconditional stimuli and so as unconditional response salivation.

Unconditional stimuli

unconditional response

Food

salivation

Conditional stimuli

conditional response

Bell

salivation

Unconditional stimuli Unconditional Response

Family gathering/ Outdoor Activity

Fun and Enjoyment

Conditional Stimuli Conditional Response Lipton tea Fun and

Considerations while applying the theory

1.

2.

Contiguity : unconditional and conditional stimuli must be close enough in time and space Repetition: the more often the unconditional and conditional stumble occur together the stronger the association

Operant conditioning

Operant or instrumental conditioning occurs when we learn to perform behaviours that produce positive outcomes and avoid those that produce negative outcomes. Is that learner or consumer will discover the appropriate response that will be reinforced. i.e. instead of dog put a pigeon in the box .

conditional stimuli positive reinforcement or unconditional stimuli When the environment provides positive reinforcement in the form of reward this strengthens the response.

Button = Food =

1.

2.

3.

Involve an already established response to another stimuli The outcome is not dependant on consumers actions Influences and change the opinions

Distinction b/w theories

1.

2.

3.

No previous stimuli response relation The outcome is dependent on learners action Influences changes in goal oriented behavior.

Classical Conditioning

A neutral stimulus, such as a brand name, is paired with a stimulus that elicits a response. Through a repetition of the pairing, the neutral stimulus takes on the ability to elicit the response.

The conditioned stimulus (CS) is a previously neutral stimulus which is repeatedly paired with the eliciting stimulus. The unconditioned stimulus (UCS) is an eliciting stimulus. The conditioned response (CR) is the response elicited by the CS. The unconditioned response (UCR) is the reflexive response elicited by the unconditioned stimulus.

Requirements for Effective Conditioning

The neutral stimulus should precede in time the appearance of the unconditioned stimulus. The product is paired consistently with the unconditioned stimulus. Both the conditioned stimulus and the unconditioned stimulus are highly salient to the consumer.

Applications of Classical Conditioning

Applications: communications--advertising, public relations, personal selling. Goal: identify powerful positive stimulus and associate brand with it. Examples of powerful, emotion causing stimuli: beautiful, sexy people patriotic themes, religious symbols Music, beautiful scenes Also, negative stimuli can be associated with competitors. Credit card insignia may elicit spending responses

Operant Conditioning . . .
. . . is the process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior.

If positively reinforced, the likelihood of the behavior being repeated increases. If punished, the likelihood of the behavior being repeated decreases.

Reinforcement & Influencing Behavior

A reinforcer is anything that occurs after a behavior and changes the likelihood that it will be emitted again.

Positive reinforcers are positive rewards that follow immediately after a behavior occurs. Negative reinforcers are the removal of an aversive stimulus.

Secondary reinforcers . . .
. . . are a previously neutral stimulus that acquires reinforcing properties through its association with a primary reinforcer.

Over a period of time, previously neutral stimuli can become secondary reinforcers. In marketing, most reinforcers are secondary (e.g. a product performing well, a reduction in price)

Discriminative Stimuli . . .
. . . are those stimuli that occur in the presence of a reinforcer and do not occur in its absence.
Example: point of purchase display is a discriminative stimulus.

Stimulus Discrimination and Generalization

Stimulus discrimination occurs when an organism behaves differently depending on the presence of one of two stimuli. Goal of differentiation is to cause stimulus discrimination. Stimulus generalization occurs when an organism reacts similarly to two or more distinct stimuli. Goal of knock-off brands is to use stimulus generalization.

Shaping Consumer Responses . . .

. . . is creating totally new operant behaviors by selectively reinforcing behaviors that successively approximate the desired instrumental response.

Three important ideas:

People are viewed as symbolic beings who foresee the probable consequences of their behavior. People learn by watching the actions of others and the consequences of these actions (i.e. vicarious learning). People have the ability to regulate their own behavior.

Factors Increasing a Models Effectiveness

The model is physically attractive. The model is credible. The model is successful. The model is similar to the observer. The model is shown overcoming difficulties and then succeeding.

Three Major Uses of Learning Theory

A models actions can be used to create entirely new types of behaviors A model can be used to decrease the likelihood that an undesired behavior will occur The model can be used to facilitate the occurrence of a previously learned behavior

Cognitive Learning: Retrieval

Personal determinants: age State-Dependent Retrieval Familiarity Salience-prominence Pictures versus verbal cues

Culture

Environmental influences on consumer behavior

That includes knowledge , belief, art,morals,law, customs, and any other capabilities and habits acquired by man as a member of society. every thing that is socially learned and shared by the members of society.

Characteristics of culture Culture is learned

From one generation to an other

Culture is socially shared

culture in our society / TV programs etc.

e.g. calendar / education/ family/ music/ gestures/ housing etc. Cultural elements are handed down from generation to generations cant escape ur cultural heritage But in spite of resistance culture is changing gradually rate of change varies. Tends to form a consistent and integrated as a whole.

Culture are similar but diff.

Is persistent

Is adaptive

Organized as well as integrated.

Subculture Marketers can distinguish more homogeneous groups subgroups within the heterogeneous national society. Sindhi / Punjabi/ pathan etc.

Race , nationality, religion

Social class Social class Vs Status

Both can be of same social class but diff. in status

Reference/ social groups What role u are playing in the group

Cognitive learning theory

Goals leads to purposive behavior which leads to insight and then to goal achievement.

PERSONALITY

Personality - defined

The characteristic patterns of behaviour and thought that are a reflection of a consumers psychological systems

Personality theories

The following are approaches to personality theory:

Psychoanalytical theory
Social/environment theories Trait theory Self concept theory

Psychoanalytic personality theory

Based on the idea that adult behaviour is a reflection of childhood experiences Sigmund Freud believed that unconscious thoughts controlled the conscious mind and this plays a significant role in developing our personalities This is very much linked to the concepts of human motivation and drives
7-62

Psychoanalytic personality theory

Freud proposed that personality is made up of three parts:

Id
Our primitive instincts or drives Superego Our urge to do what is right achieving perfection Ego The balance between the id and the superego

Psychoanalytic personality theory

Application of Freuds ideas in marketing:

Appeal to underlying motivations and drives, e.g.:

Underlying sexual connotations in ads Show glamorous people using the product to social acceptance of the product rather practical uses

appealing than its

Communicate message that anxiety may be reduced with the use of a particular product/service
7-64

Psychoanalytic personality theory

Neo-Freudians

Those who further developed Freuds ideas but presented new ways of looking at personality Many consider that although the unconscious mind is important, other factors such as the conscious mind and external factors are also important influences on personality One of the best known Neo-Freudians is Carl Jung
7-65

Social/environment theories of personality

Jungian personality types Carl Jung believed that individuals engage in constant adaptation and creative development, based on the environment Suggested there are three components of personality: The ego Our current conscious thoughts The personal unconscious Where information is buried or stored day to day but can be remembered when there is a trigger The collective unconscious Comprises memory traces from an individuals ancestral past Believed the self came from a a mix of the conscious and unconscious Formed four classifications of psychological function personality types

Jungs psychological types

Other contributors to personality theory

Erik Erikson
See EXHIBIT 7.6 Advertisements reflect the expression of a consumers identity, page 200. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

Considered ego to be a major motivating force in human development and personality The stronger your self-identity, the more confident and assertive you are Implications for marketing are that people are more likely to buy brands that reflect their self image

Other contributors to personality theory

Alfred Adler

Believed that people are born with an inbuilt sense of inferiority We strive for something better - express our superiority We are influenced by heredity, the environment and intrinsic factors

Other contributors to personality theory

Karen Horneys basic anxiety theory

Argued that sociocultural factors could explain personality differences, not just basic gender differences She believed that basic anxiety leads to conflict and an intense need for approval and affection Marketers commonly appeal to needs for greater selfimprovement and social standing

See EXHIBIT 7.7 Peugeot makes you feel superior, page 201. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

Trait theories of personality

A trait is a personality characteristic, e.g. outgoing or shy Trait theories attempt to identify and categorise personality characteristics Marketers can use this information to identify characteristics of a certain market segment
7-71

The big five personality traits

Openness to experience

Interest in new things How methodical you are Degree of sociability Extent of a persons social likeability Perceived emotional stability

Conscientiousness

Extroversion/introversion

Agreeableness

Neuroticism

Self-concept theory

Based on the set of attitudes a person holds about themselves and is made up of selfimages and the evaluation of these images
Self-concept is made up of two elements

Self-image Self-esteem

Our self-concept can vary across situations

Self-image and buying behaviour

The different aspects of self-image that influence buying behaviour include: Real self How we perceive ourselves Ideal self How we think we are perceived by others Social self How others see us Consumers purchase products that reflect their sense of self

Self-image and fashion

A consumers choice of fashion is a reflection of their personality - it is an outward presentation of their self image Highly materialistic consumers are more likely to engage in indulgent purchasing behaviour

Their physical and material possessions convey status, success and prestige

Brand personality

Brands are often perceived as having a distinct personality Positioning is a technique to market a product so that it occupies a unique position within a consumers mindset Appeals used within advertisements and other promotional materials help establish this uniqueness

See EXHIBIT 7.13 Different brands have different personalities. In the tea category, Dilmah is unique, page 213. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

Consumer Attitude

An attitude is a lasting evaluation of people, objects, advertisements, or issues. Consumers have attitudes towards a wide range of attitude objects from very product specific behaviour.

Theories propounding Attitude

Functional Theory of AttitudesDaniel Katz developed the functional theory of attitudes to explain how attitudes facilitate social behaviour. According to this theory attitude exist because they serve some function for the person. They are determined by a persons motives.

Theories of Cognitive Dissonance

This states that when a person is confronted with inconsistencies among attitudes or behaviours, he will take some action to resolve this dissonance perhaps by changing an attitude or modifying a behaviour. According to this theory our motivation to reduce the negative feelings of dissonance makes us find a way for our beliefs and feelings to fit together.

Self Perception Theory

The self perception theory provides an alternative explanation of dissonance effects. The theory states that we maintain consistency by inferring that we must have positive attitude toward an object if we have bought or consumed it. This theory is relevant to the low involvement hierarchy because it involves situations where a person initially performs a behaviour in the absence of strong internal attitude.

Social Judgement Theory

This theory assumed that people assimilate new information about attitude objects in the light of what they already know and feel. One important aspect of this theory is that people differ in terms of the information they will find acceptable or unacceptable.

Balance or Congruity theory

The balance theory considers how a person perceives relations among different attitude towards objects and how he alters his attitudes so that these remain congruent or balanced. This perspective involves relations among three elements so we call the structure triad. Each triad contains 1. a person and his perceptions 2. an attitude object 3. some other person or object. This balancing act is at the heart of celebrity endorsements in which marketers hope that the stars popularity will transfer to the product.

Models of Attitude

ABC Model of Attitudes- Emphasizes the interrelationships among knowing, feeling, doing. We can not determine consumers attitude toward a product simply by identifying their beliefs about it. For example a researcher may find that shoppers know a particular mobile/smart phone has a 5 megapixel camera, dual sim card slots but simply knowing this does not indicate whether they feel these attributes are good, bad or irrelevant. The difference in university choice attributes are illustration of how a person combines these elements in different ways to create an attitude.

Multiattribute Attitude Models

Since attributes are so complex marketing researchers may use multiattribute attitude models to understand them. This type of model assumes that a consumers attitude toward an attitude object A0 depends on the beliefs he has about several of its attributes.

Fishbein Model

1.
2. 3.

The most influential multiattribute model is called Fishbein model. The model measures three components of attitude. Salient beliefs Object-attribute linkages Evaluation of each of these attributes.

Theory of reasoned action

Due to limitations of Fishbein model and in order to improve its predictive ability, this model has been sought. This model contains important additions to the original. This theory acknowledges the power of other people to influence what we do.
This model also measures attitude towards the act of buying rather than only the attitude towards the product itself.

Measurement of Attitudes

An attitude survey is like a snapshot taken at a single point in time.

It tells us a lot about a brands position at that moment. To accomplish that researchers develop an attitude tracking programme which involves collecting attitudinal data at periodic intervals. The dimensions of attitude tracking include the followingChanges in different age groups Scenarios about the future Identification of change agents

1. 2. 3.