C B f final

8/4/2019 C B f final

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Consumer Behaviour


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Cultural Diversity

INDIA - States & UT

Cultures and Sub-cultures

Food,cuisine,

Languages

practices,

traditions,Beliefs & myths,

consumption,

Religion(within), casts,

professions,


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Cultural Diversity

Hamlets diversity

Purchasing Power

Rural & urban,

developing and developed.

Niche Market for different products.


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Cultural Diversity

In India, more than 40% Indians, earn less than 1

dollar a day.

Culture Influences consumer preferences :

Kelloggs : when introduced cereal breakfast ( USP

Crispy), consumers were not in habit of using cold milk

in breakfast. culture


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Cultural Diversity

lifestyle and preferences,

Indian consumers reflect a range of behaviour

from price sensitive based value expectations to

showcasing brand symbolism.

Changing Lifestyles & Values TVS Streak &

Honda Pleasure Young aspiring independent

urban women different to male dominated

society.


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Cultural Diversity

Functional value associated with mass market

brand offering at lowest price FMCG Small

Serving 1-2 occasions Shampoos, tea, chocolate,

coffee, toothpaste, hair oil, detergents, soaps, cream

etc..

Brand Penetration India Max Films- maxcelebrities Film stars & sports


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Cultural Diversity

Diversity in Retail : - Kariana Shops.

Market need to develop sound business models after

considering psychological , cultural, socio-cultural,

socio-economic based consumer segmentation.


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Cultural Diversity

Unorganized Market Not branded offeringManufactured by small units,

low priced,Geographical units place of production

illegal duplicates are also part

Unorganized bigger than organisedEg. Watches, footwear, Detergent,

tea, CD, apparel, cooking utensil,

optical wear, bakery products etc.


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Customer and Consumer

Traditionally, customer was used to define the

people whom the organization dealt with

externally and

refers to the purchaser of the product or service.


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Customer and Consumer

However, 1990s witnessed a dramatic shift and

differentiation between customer and consumer, wherein

consumer refer to individual who purchases product and services

for personal consumption and are end user of a product or

service

addresses both internal and external system, purchases for

personal consumption

hence includes the process of obtaining, consuming and

disposing.


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Consumer Behaviour

Consumer behaviour is relatively new field of studydeveloped in the mid to late 60s by the marketingtheorists having borrowed concepts frompsychology, sociology, anthropology, economicsto form new marketing discipline.

Consumer behaviour was traditionally been a studyof why people buy as it becomes easier todevelopstrategies to influence consumers, oncemarketer knows the reasons people buy specific

products or brands.


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Consumer Behaviour

Eventually CB expended its domain to decisionmaking process involving the acts of consumer

directly involved in obtaining, using anddisposing of economic goods and services

Wherein CB means all Acts of Buying :Why,

where,

how,

what, and

how often.


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Consumer Behaviour

According to Loudon & Bita

CB may be defined as the decision process and

physical activity, individuals engage in, when

evaluating, acquiring, using or disposing of

goods and services.


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Consumer Behaviour

Schiffman and Kanuk CB can be defined as the

behaviour the consumer display insearching

for, purchasing, using, evaluating anddisposing of products, services and ideas,

which they expect will satisfy their needs.


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Consumer Behaviour

As per Blackwell activities people undertake

when obtaining, consuming, and disposing of

products and services Three primary activities included in the definition

are :

Obtaining,

Consuming and

Disposing


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Consumer Behaviour

Obtaining refers to the activities leading up toand including the purchase or receipt of a

product. These activities include searching forproduct features and choices, evaluatingalternative products or brands, and purchasing,how consumer buy, do they shop at special

stores/shoping malls/internet. Other issues include in obtaining are payment

mode, transportation, own consumption or

gift, information search, impact of brand on


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Consumer Behaviour

Consuming means how, where, when, and

under what circumstances consumer use

products.Eg. Usage for at home or office, usage as per

instructions or unique way, experience of using

product is entertaining or purely functional.Do they use entire product before disposing of

it or is some of it never consumed.


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Consumer Behaviour

Disposing refers to how consumers get rid ofproducts and packaging.

Consumer Analysts might examine CB from anecological standpoint: How do consumer dispose ofproduct packaging or product remains.

Are products biodegradable.Can they be recycled. Consumers might also choose to extend the life ofsome products by handing them down to youngerchildren, donating them to charity thrift shops or

selling them on eBay.


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Consumer Behaviour

Historically, the study of CB has focused on buyerbehaviour, or why people buy.

More recently researchers and practitioners havefocused on consumption analysis, which refers towhy and how people use products in addition to whyand how they buy.

Consumption analysis is a broader conceptualframework than buyer behaviour because it includesissues that arise after the purchase process occurs- issues that often affect how people buy and the

satisfaction they receive from their purchases.


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Consumer Behaviour

Consumer behavior is thus

a study of individuals,groups, or

organizations and

the processes they use to select, secure, use,

and dispose of products, services, experiences,

or ideas to satisfy needs and

the impacts that these processes have on the

consumer and society.


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Nature of Consumer Behaviour

External Influences

Internal Influences


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Implications of definition

Totality of Decisions (all decisions)

Whether?

What?

Why?

How?

When?

Where?

How much?

How often?


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Consumer Behaviour

Consumer behavior

may involveseveral people (decision making units)

is dynamic (changes over time)


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Applications of Consumer Behaviour

Marketing Strategy

Regulatory (Public) Policy Social Marketing

Personal / Professional Skills


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Orientations to study Consumer

Behaviour

Anthropology

Economics History and geography

Psychology

Sociology


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Consumer Behaviour is

Interdisciplinary


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Psychology

Study of human thinking and behavior

Some issuesPersonality

Personal development

Cognition (thinking), perceptionAttention and its limitations

Learninge.g., acquired tastes


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Anthropology

The study of people within and across

cultures Emphasis on cross-cultural differences

Questioning of assumptions within own

culture


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Economics

Basic economic issues Supply and demand

Rational decision making

Perfect information

Emphasis on predicting behavior

Complications in real life Behavioral economicse.g., mental accounting


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History and Geography

Origins of behavior, perspectives, and

traditions Impact of geography on individualsIsolation

Language development

Climate

Geographic determinism


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Sociology

Cultural and interpersonal influences on

consumptione.g.,Fads, fashions

Diffusion of innovation

Popular culture


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Marketing and Consumer Behaviour

Consumer Market

Consists of all the individuals andhouseholds who buy or acquire goods and

services for personal consumption.


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Two Consumer Entities


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Development of the

Marketing Concept

35


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Production Orientation

From the 1850s to the late 1920s

Companies focus on production capabilities

Consumer demand exceeded supply

36


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Sales Orientation

From the 1930s to the mid 1950s

Focus on selling

Supply exceeded customer demand

37


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Marketing Concept

1950s to current - Focus on the customer!

Determine the needs and wants of specific

target markets

Deliver satisfaction better than competition

Chapter One Slide


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Societal Marketing Concept

Considers

consumers long-run

best interest

Good corporate

citizenship

39


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The Marketing Concept

Consumer Research

Segmentation

Market Targeting

Positioning

The process and tools

used to study consumer

behavior

Embracing theMarketingConcept

40
http://www.acrwebsite.org/index.asp


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Consumer Research

Segmentation

Market Targeting

Positioning

Process of dividing the

market into subsets of

consumers with common

needs or characteristics

Implementing theMarketingConcept

41


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Consumer Research

Segmentation

Market Targeting

Positioning

The selection of one or

more of the segments

identified to pursue


42


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Consumer Research

Segmentation

Market Targeting

Positioning

Developing a distinct image for

the product in the mind of theconsumer

Successful positioning includes:

Communicating the benefits of

the product

Communicating a unique

selling proposition


Chapter One Slide


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The Marketing Mix

44


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Customer Value, Satisfaction,

Trust, and Retention

Chapter One Slide


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Successful Relationships

Customer Value

Customer

Satisfaction

Customer Trust

CustomerRetention

Defined as the ratio between

the customers perceived

benefits and the resources

used to obtain those benefits

Perceived value is relative

and subjective

Developing a valueproposition is critical

Value,Satisfaction,Trust, and

Retention

46


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Customer

Value

Customer

Satisfaction

Customer Trust Customer

Retention

The individual's perception

of the performance of the

product or service in relation

to his or her expectations.

Customer groups based on

loyalty include loyalists,apostles, defectors, terrorists,

hostages, and mercenaries


Retention

47


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Customer Value

CustomerSatisfaction

Customer Trust

CustomerRetention

Establishing andmaintaining trust

is essential.

Trust is thefoundation for

maintaining along-standingrelationship with

customers.


Retention

48


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A Simple Model of Consumer Decision Making

Chapter One Slide 49Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall


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Customer Value

CustomerSatisfaction

Customer Trust

CustomerRetention

The objective of providingvalue is to retain highlysatisfied customers.

Loyal customers are keyThey buy more products

They are less pricesensitive

Servicing them ischeaper

They spread positiveword of mouth


Retention

50


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Top 10 Ranked U.S. Companies in Terms of

Consumers Trust and Respect of Privacy

Table 1.2Top 10 Companies American Express

eBay

IBM

Amazon

Johnson & Johnson

Hewlett-Packard

U.S. Postal Service Procter and Gamble

Apple

Nationwide


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Customer Profitability-Focused

Marketing Tracks costs andrevenues ofindividual consumers

Categorizes them intotiers based onconsumptionbehavior

A customer pyramidgroups customersinto four tiers

52

THE TRADITIONAL MARKETINGCONCEPT

VALUE- AND RETENTION-FOCUSEDMARKETING


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53

CONCEPT MARKETING

Make only what you can sell instead of trying tosell what you make.

Use technology that enables customers tocustomize what you make.

Do not focus on the product; focus on the needthat it satisfies.

Focus on the products perceived value, as well asthe need that it satisfies.

Market products and services that matchcustomers needs better than competitorsofferings.

Utilize an understanding of customer needs todevelop offerings that customers perceive as morevaluable than competitors offerings.

Research consumer needs and characteristics. Research the levels of profit associated withvarious consumer needs and characteristics.

Understand the purchase behavior process and the

influences on consumer behavior.

Understand consumer behavior in relation to the

companys product.

Realize that each customer transaction is a discretesale.

Make each customer transaction part of anongoing relationship with the customer.


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The Consumer Research Process

Six steps

defining the objectives of the research

collecting and evaluating secondary datadesigning a primary research study

collecting primary data

analyzing the datapreparing a report on the findings


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Figure 2.1 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research

Method

Screener questionnaire Discussion guide

Prepare Report

Analyze Data

(Subjective)

Conduct Research

(Using highly trained

interviewers)Exploratory

Study

Prepare report

Analyze Data

(Objective)

Collect Primary Data

(Usually by field staff)

Design Quantitative Research

Method

Sample design Data collection instrument

F t I fl i C


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Factors Influencing Consumer

Behavior Personal

Psychological Social

Cultural


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Stages in Family Life-Cycle

1. Single

2. Newly Married Couples

3. Full Nesta. Full Nest I

b. Full Nest II

4. Empty Nest

a. Empty Nest I

b. Empty Nest II

5. Solitary Survivor


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Personal Factors

Age

Life-Cycle Stage Occupation

Economic Circumstances

Life Style


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Psychological Factors

Wants

Based on a want or desire to havesomething. Not a necessity.


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Motivation:

Freud Id

Ego

Super Ego

Maslow

Hierarchy of Needs


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Motivation

PerceptionPerception

The process by which an individual selects,organizes, and interprets inputs/stimuli to create

a meaningful picture of the world.

Selective Exposure

Selective Distortion

Selective Retention


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Motivation

Perception LearningLearning

Changes in an individuals behavior

arising form experience


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Motivation

Perception

Learning

BeliefsBeliefs

Descriptive thoughts that a person holds aboutsomething


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Motivation

Perception

Learning Beliefs

AttitudesAttitudes

Enduring favorable or unfavorable cognitiveevaluations emotional feelings and actiontendencies


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Functional Factors

Needs

Need over wants. Delivers to a realneed to have something.


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Social Class

Relatively homogenous, enduring

divisions in a society, hierarchically

ordered with members sharing similar

values, interests, and behaviors.


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American Social Classes

Upper Upper 1%

Lower Upper 2%

Upper Middle 12%

Middle 32%

Working 38%

Upper Lower 9%

Lower Lower 7%

Family Influence on Buying


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Family Influence on Buying

Behavior

Husband-Dominant Wife-Dominant

Equal


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Adoption Process

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Decision

6. Confirmation


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Culture & Subcultures

Cultures

The accumulation of values, knowledge, beliefs,

customs, objects, and concepts that a societyuses to cope with its environment

Subcultures

Groups of individuals who have similar valueand behavior patterns within the group but differ

from those in other groups.

Examples of Buying Motives:


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Psychological or Functional?

A girl wants to remember her grandmother

on her birthday.

Her primary motive is?

Psychological



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A homemaker needs a new automatic

washing machine and has had bad

experiences with semi-automatic machineHer primary motive is ?

Functional



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A teacher wants to buy a practical car to be

used for family transportation.

Her/His primary motive is ?

Functional



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A career woman always buys Westren

fashionable clothes.

Her primary motive is?

Psychological

http://www.lizclaiborne.com/product/index.jsp?productId=2179527&cp=1986587.1988213&parentPage=family


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An overweight 40 year old man wants to

loose weight so that he can reduce his blood

pressure.His primary motive is?

Functional



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A homeowner needs to mow their lawn.

Their primary motive is?

Functional

Consumer Buying Behavior Competency


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Functional Motive PsychologicalMotive

The price is 40 cents offthe regular price.

It never needs ironing.

Diamonds are forever.

Serving you since 1971.

Ninety-day warranty.



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Functional Motive Psychological

MotiveRunning shoe with built-in arch.

Its all the ragecoloredaction wear and style.

Wheatiesthe breakfastof champions!

Steel-belted radial tireswarranted for 40,000miles

A watcha gift she willtreasure always.


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Opinion

Leadership

The process by which

one person (the

opinion leader)

informally influences

the consumptionactions or attitudes of

others who may be

opinion seekers oropinion recipients.


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What is Opinion Leadership?

Opinion

Leader

Opinion

Receiver

Opinion

Seeker


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Examples of Opinion Leadership

During a coffee break, a co-worker talks

about the movie he saw last night and

recommends seeing it. A person shows a friend photographs of his

recent Australian Outback vacation and the

friend suggests that using a polarizing filtermight produce better pictures.


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Special Issues(Category Specific)

Opinion leaders are four times more likely to be

asked about political issues, three times more likely

to be asked about computers or investments, and

twice as likely to be asked about restaurants

Information seekers seek a strong-tie source

when they know little about a topic, and weak-tie

sources when they have some knowledge


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Reasons for the Effectiveness of

Opinion Leadership Credibility

Positive and Negative Product

Information Information and Advice

Opinion Leadership Is Category-

Specific Opinion Leadership Is a Two-wayStreet/communication


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Figure 15.1 Factors Leading to

Negative Word-of-Mouth Behavior

Individual Factors

Product Involvement

Situational Factors

Attitudinal Factors

Negative

WOM

Likelihoodof

Repurchase-

+

+

+

+


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Figure 15.2 Word-of-Mouth in Action

0% 20% 40% 60% 80%

Restaurants

Computer

Consumer Electronics

Travel

Automotive

Financial Services

% of

respondents

that used

a referralto make one

of these

purchases

over the

past year


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Motivations Behind Opinion

Leadership The Needs of Opinion Leaders

The Needs of Opinion Receivers


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The Needs of Opinion Leaders

Involvement

1. Self involvement

2. Social involvement3. Product involvement

4. Message involvement


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The Needs of Opinion Receivers

New-product or new usage information

Reduction of perceived risk

Reduction of search time Receiving the approval of the opinionleader


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Table 15.3 A Comparison of Motivations

(Excerpts)

OPINION LEADERS OPINION RECEIVERS

SELF-IMPROVEMENT

MOTIVATIONS

Reduce post-purchase uncertainty or

dissonance

Gain attention or status Assert superiority and expertise Feel like an adventurer

Reduce the risk of making a purchase

commitment Reduce search time

PRODUCT-INVOLVEMENT

MOTIVATIONS

Express satisfaction or dissatisfactionwith a product or service

Learn what products are new in the

marketplace

Learn how to use or consume a product

M t f O i i


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Measurement of Opinion

Leadership Self-Designating

Method

Sociometric Method Key Informant Method

Objective Method


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Table 15.5 Measuring Opinion Leadership

SELF-DESIGNATING

METHOD

Do you influence

other people in their

selection ofproducts?

Each respondent is asked a series

of questions to determine the

degree to which he or sheperceives himself or herself to be

an opinion leader.

OPINION LEADERSHIPOPINION LEADERSHIPMEASUREMENTMEASUREMENT

METHODMETHOD

SAMPLESAMPLE

QUESTIONS ASKEDQUESTIONS ASKEDDESCRIPTION OF METHODDESCRIPTION OF METHOD

SOCIOMETRIC

METHOD

Members of a social system are

asked to identify to whom theygive advice and to whom they go

for advice.

Whom do you

ask?Who asks youfor info about that

product category?


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Table 15.5 continued

OPINIONOPINIONLEADERSHIPLEADERSHIP

MEASUREMENTMEASUREMENT

METHODMETHOD

SAMPLESAMPLEQUESTIONSQUESTIONS

ASKEDASKED

DESCRIPTION OF METHODDESCRIPTION OF METHOD

KEY INFORMANT

METHODWho are the most

influential people in

the group?

Carefully selected key informants in

a social system are asked to

designate opinion leaders.

Artificially places individuals in a

position to act as opinion leaders and

measures results of their efforts.

Have you tried the

product?

OBJECTIVE

METHOD


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Table 15.6 Profile of Opinion Leaders

GENERALIZED

ATTRIBUTES ACROSS

PRODUCT CATEGORIES

CATEGORY-SPECIFIC

ATTRIBUTES

Innovativeness

Willingness to talkSelf-confidence

Gregariousness

Cognitive differentiation

Interest

KnowledgeSpecial-interest media exposure

Same age

Same social status

Social exposure outside group

Th I t l Fl f


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The Interpersonal Flow of

Communication Two-Step Flow

A communication model that portrays opinion

leaders as direct receivers of information frommass media sources who, in turn, interpret and

transmit this information.

Multistep Flow

A revision of the traditional two-step theory thatshows multiple communication flows

Fi 15 4 T St Fl f


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Figure 15.4 Two-Step Flow of

Communication Theory

Mass MediaMass Media OpinionLeaders

OpinionLeaders

Opinion

Receivers

(the masses)

Opinion

Receivers

(the masses)

Step 1 Step 2

Fi 15 5 M lti t Fl f


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Figure 15.5 Multistep Flow of

Communication Theory

Mass Media

Information

Receivers

Opinion

Receivers/

Seekers

Opinion

Leaders

Step 1a

Step 1b

Step 2

Step 3


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DiffusionDiffusion

ProcessProcess

The process by whichthe acceptance of an

innovation is spread by

communication tomembers of social

system over a period of

time.


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AdoptionAdoption

ProcessProcess

The stages throughwhich an individual

consumer passes in

arriving at a decision to

try (or not to try), to

continue using (or

discontinue using) a new

product.


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Elements of the Diffusion Process

The Innovation

The Channels of Communication

The Social System

Time


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Defining Innovations

Firm-oriented definitions

Product-oriented definitions

Market-oriented definitions Consumer-oriented definitions


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Product-Oriented Definitions

Continuous

Innovation

Dynamically

Continuous

Innovation

Discontinuous

Innovation

Figure 15.7 Telephone Innovations


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Telephone

Cell Phone

Fax Machine

Telephone answering machines

Call forwarding

Call waiting

Caller ID

Banking by telephone

Call-prompting systems

Hold button

Line-in-use indicator

Redial button

Auto dialing feature

Touch-tone service

800 Numbers

900 Numbers

Ability to send/receive email

Incorporate PDA functions

Calendar/Phonebook

Voice-activated dialing

Switch from analog to

digital

Include camera

Ringer styles

Play games

Fax modem

Mobile fax machines

Home office systems

(combined fax, copier,

computer printer)

Plain paper fax

Speed dial buttons

Delayed send

Copy function

Paper cutter

Discontinuous

Innovations

Dynamically Continuous

Innovations

Continuous

Innovations

Product Characteristics That


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Product Characteristics That

Influence Diffusion

Relative Advantage

Compatibility

Complexity

Trialability

Observability

Table 15 7 Characteristics That


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Table 15.7 Characteristics That

Influence Diffusion

CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES

Relative

Advantage

Air travel over train travel, cordless

phones over corded telephones

Compatibility

Gillette MACH3 over disposable

razors, digital telephone answering

machines over machines using tape

ComplexityElectric shavers


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Table 15.7 continued

CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES

Trialability

Trial size jars and bottles of new

products, free trials of software, free

samples, cents-off coupons

Observability

Clothing, such as a new Tommy

Hilfiger jacket, a car, wristwatches,

eyeglasses


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Time and Diffusion

Time

Adopter Categories

Rate of Adoption


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AdopterAdopter

CategoriesCategories

A sequence ofcategories that

describes how early (or

late) a consumer adoptsa new product in

relation to other

adopters.

Figure 15 9 Adopter Categories


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Figure 15.9 Adopter Categories

Innovators

2.5%

Early

Adopters

13.5%

Laggards

16%

Percentage of Adopters by Category Sequence

Early

Majority

34%

Late

Majority

34%


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Innovators: Description

2.5% of population Venturesome

Very eager to try new ideas Acceptable if risk is daring Communicates with other innovators


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Early Adopters: Description

13.5% of population Respected More integrated into the local social system The persons to check with before adopting a

new idea

Category contains greatest number of

opinion leaders Are role models


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Early Majority: Description

34% of population Deliberate

Adopt new ideas just prior to the averagetime

hold leadership positions Deliberate for some time before adopting


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Laggards: Description

16% of population Traditional The last people to adopt an innovation Most localite in outlook Oriented to the past Suspicious of the new

Table 15 11 Stages in Adoption Process


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Table 15.11 Stages in Adoption Process

NAME OFSTAGE

WHAT HAPPENS

DURING THIS

STAGE

EXAMPLE

Awareness

Consumer is first exposed

to the product innovation.

Janet sees an ad for a new MP3 player in

the magazine she is reading.

Interest

Consumer is interested inthe product and searches

for additional

information.

Janet reads about the MP3 player on themanufacturers Web site and then goes to

an electronics store near her apartment and

has a salesperson show her a unit.

Evaluation

Consumer decides

whether or not to believe

that this product or

service will satisfy the

need--a kind of mental

trial.

After talking to a knowledgeable friend,

Janet decides that this MP3 player will

allow her to easily download the MP3 files

that she has on her computer. She also feels

that the units size is small enough to easily

fit into her beltpack.

Table 15 11 Stages in Adoption Process


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Table 15.11 Stages in Adoption Process

Trial

Consumer uses the

product on a limited basis

Since an MP3 player cannot be tried like

a small tube of toothpaste, Janet buys the

MP3 player online from Amazon.com,

which offers a 30-day full refund policy.

Adoption

(Rejection)

If trial is favorable,

consumer decides to use

the product on a full,

rather than a limited

basis--if unfavorable, the

consumer decides to

reject it.

Janet finds that the MP3 player is easy to

use and that the sound quality is excellent.

She keeps the MP3 player.

NAME OF

STAGE

WHAT HAPPENS

DURING THIS

STAGE

EXAMPLE

Figure 15 11 An Enhanced Adoption


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Figure 15.11 An Enhanced Adoption

Process Model

Pre-existing

problem or

Need

Awareness Interest Evaluation Trial

Adoption

or

Rejection

Postadoption or

Postpurchase

Evaluation

Evaluation

Adoption or Rejection

Discontinuation

Discontinuation or

RejectionRejection


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Consumer and Motivation

Figure 4 1 Model of the Motivation


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Figure 4.1 Model of the Motivation

Process

LearningLearning

Needs

wants,

anddesires

Needs

wants,

anddesires

TensionTension

Goal or

need

fulfill-ment

Goal or

need

fulfill-ment

DriveDrive

BehaviorBehavior

Cognitive

processes

Cognitive

processes

Tension

reduction

Tension

reduction


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Types of Needs

Innate NeedsPhysiological (orbiogenic) needs that are

considered primary needs or motives

Acquired needsGenerally psychological (orpsychogenic) needs

that are considered secondary needs or motives


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Goals

Generic Goalsthe general categories of goals that consumers

see as a way to fulfill their needs

e.g., I want to get a graduate degree. Product-Specific Goals

the specifically branded products or services thatconsumers select as their goals

e.g., I want to get an MBA in Marketing fromKellogg School of Management.

S i f G


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The Selection of Goals

The goals selected by an individual dependon their:Personal experiences

Physical capacity

Prevailing cultural norms and values

Goals accessibility in the physical and social

environment

M i i d G l


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Motivations and Goals

Positive Motivation

A driving force

toward some

object or condition

Approach Goal

A positive goal toward

which behavior isdirected

Negative Motivation

A driving force

away from some

object or condition

Avoidance Goal

A negative goal from

which behavior isdirected away

Rational Versus Emotional


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Rational Versus Emotional

Motives

Rationality implies that consumers selectgoals based on totally objective criteria suchas size, weight, price, or miles per gallon

Emotional motives imply the selection ofgoals according to personal or subjectivecriteria

The Dynamic Nature of


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The Dynamic Nature of

Motivation

Needs are never fully satisfied

New needs emerge as old needs are

satisfied People who achieve their goals set new andhigher goals for themselves

Figure 4.6 New and Higher Goals


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Figure 4.6 New and Higher Goals

Motivate Behavior


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Figure 4.7

Changing

Consumer

Needs


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Frustration

Failure to achieve a

goal may result in

frustration. Some

adapt; others adopt

defense mechanisms

to protect their ego.


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DefenseDefense

MechanismMechanism

Methods by which

people mentally

redefine frustrating

situations to protect

their self-images and

their self-esteem.

Table 4 2 Defense Mechanisms


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Table 4.2 Defense Mechanisms

Aggression

Rationalization

Regression Withdrawal

Projection

Autism

Identification Repression

A l f M ti


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Arousal of Motives

Physiological arousal

Emotional arousal

Cognitive arousal Environmental arousal


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Figure 4.8

Cognitive

Need

Arousal

Philosophies Concerned With


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p

Arousal of Motives

Behaviorist School

Behavior is response to stimulus

Elements of conscious thoughts are to be ignored

Consumer does not act, but reacts

Cognitive School

Behavior is directed at goal achievement

Need to consider needs, attitudes, beliefs, etc. inunderstanding consumer behavior

Figure 4.9 Maslows Hierarchy of Needs


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Physiological Needs

(Food, water, air, shelter, sex)

Safety and Security Needs(Protection, order, stability)

Social Needs

(affection, friendship, belonging)

Ego Needs(Prestige, status, self esteem)

Self-Actualization

(Self-fulfillment)

Table 4.3 Murrays List of

P h i N d


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Psychogenic Needs

Needs Associated with Inanimate Objects:

Acquisition, Conservancy, Order, Retention, Construction

Needs Reflecting Ambition, Power,

Accomplishment, and Prestige:

Superiority, Achievement, Recognition, Exhibition, Infavoidance,

Inviolacy, Defedance, Counteraction

Needs Connected with Human Power:Dominance, Deferrence, Similance, Autonomy, Contrariance

Table 4.3 Murrays List of

P h i N d


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Psychogenic Needs

Sado-Masochistic Needs :

Aggression, Abasement

Needs Concerned with Affection between People:

Affiliation, Rejection, Nurturance, Succorance, Play

Needs Concerned with Social Intercourse:

Cognizance, Exposition

Figure 4.10 Appeal to Egoistic


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g pp g

Needs


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Figure 4.11

Appeal to Self-Actualization

A Trio of Needs


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A Trio of Needs

Powerindividuals desire to control environment

Affiliationneed for friendship, acceptance, and belonging

Achievementneed for personal accomplishment

closely related to egoistic and self-actualizationneeds


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Figure 4.12

Appeal toPower Needs


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Figure 4.13

Appeal to

Affiliation

Needs


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Figure 4.14

Appeal to

Achievement

Needs


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