Psychological Influneces on CB Part 1

8/12/2019 Psychological Influneces on CB Part 1

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CONSUMER BEHAVIOR:

ROLE OF MARKET RESEARCH

-THE CONSUMER AS AN INDIVIDUAL:

Psychological Influences on Consumer Decision Making:

Need/Motivation/Moods/Emotions/Involvement/Learning/

Perception/Personality/Attitudes/Communication

Instructor:

Mahendra Singh

Centre for Business Administration, CUJ, ranchi

Source: Schiffman and , Kanuk, Wells and Prensky,

Peter and Olson, Loudon and Bitta 1


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CONSUMER NEEDS AND MOTIVATION

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Needs are the essence of the marketing concept.

Marketers do not create needs; they however, make the consumers

more keenly aware of unfelt needs.

People tend to experience the same kinds of needs and motives; they

simply express these motives in different ways.

Thus, an understanding of human motives is very important to

marketers.

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All consumer behavior begins withmotivationthe process by which

an individual recognizes a need and begins to take action to satisfy it.

Aneed,in turn, is the discrepancy between an individual's current state

and some ideal state that he or she desires, that ideal state being a

goal.

Needs and goals are both necessary to motivate an individual to takeaction.

Consumer motivation is the drive to satisfy needs and wants, both

physiological and psychological, through the purchase and use of

products and services.

Consumer motivation can be viewed as a process through which needs

are satisfied.

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THE DYNAMIC NATURE OF MOTIVATION:

Needs and Goals are Constantly Changing:

Needs and goals are constantly growing and changing in responseto an individual's physical condition, environment, interactions with

others, and experiences.

As individuals attain their goals, they develop new ones.

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Some of the reasons why need-driven human activity never ceases

include the following:

-A Needs are never fully satisfied.

-New needs emerge as old needs are satisfied.

-Success and failure influence goals.

-Substitute goals.

Mult ip l ic i ty of Needs:

A consumer's behavior often fulfills more than one need.

In fact, it is more likely that specific goals are selected because theyfulfill several needs.

Needs and go als vary among indiv iduals

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Arousal of Motives:

Most of an individual's specific needs are dormant much of the

time.

The arousal of any particular set of needs at a specific point in timemay be caused by:

a) internal stimuli found in the individual'sphysiological

condition: hunger need.

b) emotionalor cognitiveprocesses: Cognitive: A young womanwho dreams of becoming a successful business leader may enroll

in graduate business school. Emotional: An advertisement that

provides reminders of home might trigger instant yearning to speak

with one's parents.

c) stimuli in the outside environment.For example, sight or

smell of bakery goods, fast-food commercials on television etc.

A most potent form of situational cue is the goal objectitself. Eg. a

man may suddenly experience a "need" for a new car when

passing a dealer's display window. 7


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TYPES AND SYSTEMS OF NEEDS:

a. Maslows Hierarchy of Needs:

Dr. Abraham Maslow, a clinical psychologist.

Maslow's theory postulates five basic levels of human needs, which

rank in order of importance from lower-level (biogenic) needs to

higher-level (psychogenic) needs.

It suggests that individuals seek to satisfy lower-level needs beforehigher-level needs emerge.

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An Evaluat ion o f the Need Hierarch y:

Wide acceptance in many social disciplines.

The five levels of need postulated by the hierarchy are sufficiently

generic to encompass most lists of individual needs.

Critics, however, maintain:

Consumers have many needs and goals and often act to satisfy

them simultaneously. At any given moment, a consumer may be

working to satisfy many needs and will not consider the relativelevels of those needs.

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Despite these criticisms, Maslow's hierarchy is a useful tool for

understanding consumer motivations and is readily adaptable tomarketing strategy:

For example:

- individuals buy houses, food, and clothing to satisfyphysiological needs;

- they buy insurance and radial tyres to satisfy safety and

security needs.

- almost all personal care products (cosmetics, mouthwash,

shaving cream) are bought to satisfy social needs.

- luxury products such as furs, jewels, or big cars are oftenbought to fulfill ego needs, and

- education, college training and professional courses are ways

of achieving self-fulfillment.

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Relevance fo r m arketers:

-The hierarchy offers a useful, comprehensive framework for

marketers trying to develop appropriate advertising appeals for

their products.

It is adaptable in two ways:

1. It enables marketers to focus their advertising, appeals on a

need level that is likely to be shared by a large segment of the

prospective audience;

2. It facilitates product positioning or repositioning.

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1) Segmentation Applications:

-The need hierarchy is often used as the basis for market segmentation,with specific advertising appeals directed to individuals on one or more

need levels.

For example, soft drink ads directed to teenagers often stress a social

appeal by showing a group of young people sharing good times as well as

the advertised product.

2) Positioning Applications:

-Deciding how the product should be perceived by prospective consumers.

Most manufacturers of luxury cars use status appeals and self-actualizing

appeals (Chevrolet) or even social appeals ("The whole family can ride in

luxurious comfort").

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3) Versatility of The Need Hierarchy:

This implies the usefulness of the need hierarchy in designing promotional

programs to show how workable appeals for a single product can be

developed from each level.

Consider, for example, the potential promotional appeals for home

exercise equipment.

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-an appeal tophysiologicalneeds: would show how the home exercise unit

can improve body tone and health;

-a safetyappeal would demonstrate how safe the equipment is for home

(and solo) use.

-a socialappeal might show how much fun it can be to exercise with a

friend or even how a streamlined figure would encourage social

encounters.

-Self-esteemis easily demonstrated through a narcissistic appeal such as

"be proud of your body."

Finally, an appeal to self actualization may suggest to career couples that

they deserve the convenience and the luxury of home exercise after a long

and challenging workday.

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b) Sheth's Consumer Motives:

-Developed as a classification scheme to predict consumer

decisions in travel;

Jagdish Sheth's consumer needs model applies equally well to

most other products.

Sheth isolated five dimensions of motivation, each oriented to

the achievement specific goals.

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a) The functional motive:involves the utility of a product or service or the

function it performs.

b) The aesthetic/emotionalmotive: the appearance or attractiveness of a

product or service.

c) The social motive:the status or esteem value of a product or service.

d) The situational motive:the unexpected benefit of a product or service,

such as discounted price or immediate availability.

E) The curiosity motive:the interest aroused by a product or service.

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Psychological Influneces on CB Part 1

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