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Consumer Motivation

Theories of Motivation

Drive and Expectancy Theories

McGuires Theory

McClellands Theory

Consumer Perception

Learning Theories

Consumer Personality and Self Image

Influences of Social Media on Consumer


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Traditionally marketers used to view

customers decision making process in the

form of a funnel. Marketers role was to move people from the

larger end to the smaller end.

Today marketers no longer dictate the pathpeople take nor do they lead the dialogue.


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What is Consumer Motivation?yA driving force which elicits a response leading to a

goal-directed behaviour in a person.

y Motivation as a psychological force:y Needs

y Desires

y Goals


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Hierarchy of Needs Based on the Maslows theory

There exists different needs at different points in ones life


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Motivation Theoriesy DriveTheory

y Desire for purchase is due to inner drives

y Could be physiological or psychological

y ExpectancyTheory

y Consumers are driven by expected desirable outcomes

eg. People switched from soap to facewash due to theexpectation of better, more gentle cleansing


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McGuires Theory

CognitivePreservation

Motives

a. Needfor Consistency

b. Need orAttribution

c. Need tocategorize

d. Need forobjectification

Cognitive Growth Motives

a. Need for Autonomy

b. Need for Stimulation

c. Teleological Need

d. Utilitarian Need

Affective PreservationMotives

a. Need for TensionReduction

b. Need for Expression

c. Need for Ego Defence

d. Need for Reinforcement

Affective Growth Motivesa. Need for Assertion

b. Need for Affiliation

c. Need for Identification

d. Need for Modelling

Signatur

e Tune

Largest

mobile

network

Express

YourselfExpress

Yourself


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Vrooms Expectancy Theory Itis based upon the following three beliefs:

Valence (It refers to the emotional orientations consumers hold with respectto outcomes [Problem solving, benefit etc]. The level of the desire may be extrinsic value

[money savings, rewards, benefits] Or Intrinsic satisfaction / rewards.

Expectancy(Consumers have different expectations and level of confidenceabout what they are capable of doing).

Instrumentality(Perception of the consumer whether they will actually getwhat they look for /desire or not in a particular choice). Marketers make their consumers aware of different Functional or Emotional

Value in a particular brand

Marketers deliver the promise of their respective value behind the choice.


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McClellands Theory of Learned Needs

y Achievementmotivation to strive for success.

y Need for affiliation motivatespeople to make friends, to

become members of groups, and to associate with others.


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y Need forpower leads to the desire to exercise control overothers.

y Need foruniqueness refers to desires to establish our choiceas unique and different.


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Motivation Process


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Consumers Involvementy Involvement is defined as a persons relevance of theobject based on his needs, values and interests

y Dimensions:

y Antecedentsy Involvement Properties

y Purchase Involvement:

y Personal Factors or Nature of consumer

y Object or Stimulus Factorsy Situational Factors like purchase use and occasion


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Degree of Involvement High Involvement Buying Car

Television

Low Involvement Buying

Soap

Toothbrush

RoutinedResposne

LimitedDecisionMaking

ExtensiveDecisionMaking

ImpulseBuying

Decision making patterns based onconsumers degree of involvement

Central Routeto Persuasion

PeripheralRoute to

Persuasion

The Elaboration Likelihood Model


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Sub conscious Motivations

Dichters Theory

Consumer motivation is mostlyunconscious.

-Attempted t o uncover underlying feelings,attitudes and emotions

External

Intern

al

Institutions of Influence

Educati

n

Faculty

MediaHistory

Religion

Product Personality

Recommendation

Cars To destroyControl death

Exxon Put atiger in your tank

Dolls Jealousy

Aspirational

Barbie full

bodied,fashionable


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Archetype and brand personality

HUL Ice creams on basis of emotional states

Nestle on the basis of biological clock


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Physiological ArousalExternal stimuliEg. Inducing Hunger Outback Steakhouse

Involuntary cues

Not necessarily impulse like Cadburys


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Emotional ArousalArouses emotion

Daydreams can cause arousal of latent needs

Driven ultimately into goal driven behaviour

Could result In brand loyalty


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Cognitive ArousalRandom Thoughts arouse cognitive

awareness

Eg. Reminders of home talking to

parents

Airtel for eg.


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Consumerperceive brand/product in their own way.

Perception is not limited to visual aspects.

Marketers can influence perceptions of consumersby a number ofmethodsSensory MeansPricingPackaging

PromotionDisplay atretail countersDistribution


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Sensory Perception

Ads used to stimulate the

customers about specific

distinguishing features


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Sensory PerceptionDettolVs SavlonSavlon having advantages like better scent

and non-stingingproperties miserably failed

in the Indian market.

This was because Savlon was trying to

differentiate on attributes which are not

considered to be important bytheconsumers.

What customers look for is effectiveness.


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Perceptual organizationy Organizing stimuli into groups and perceive them as

unified whole objects

y

Types:y Figure and Ground

y Grouping

y Closure


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Figure and Ground One part of a stimulus will dominate (the figure) and other

parts will recede into the background (the ground).

Vodafones Zoozoo campaign made the Zoozoos popular but consumers

could not relate it to Vodafone


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Groupingy Tendency to group stimuli so that they form a

unified picture of impression

y Coke wanted consumers to associate it with fast

food like Pizzas


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Colour Perception

Bisleri lost significantmarket share to Kinley and other competitors.

All competitors used similarpackaging as that ofBisleri, having a

Blue colored label.

Blue color signifies safety and security.

Bisleri repositioned itself from normal packaged drinking waterto

Natural Mountain water.

The Green colorrepresenting nature and freshness was ideal.


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Just Noticeable Difference

Bingo and Lays were sold earlier at Rs 10 for 35gm

pack.

Potato prices went up in 2008 resulting in higher

cost for manufacturer.

The wafer producers maintained the same

packet size but reduced the netweight to30 gm.

Wafers being the light product, consumers

couldntperceive the difference in weight.


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Stereotype

Baygons insecticides were known forthe strong

odour.

Mosquito repellents mats in Indian market like

goodnight and Casper gave out a pleasant smell.

WhenBaygon launched the mosquito repellentmats, people were discouraged to buy due to the

strong odour associated with the brand.

Thus being stereotyped led to the product failure.


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StereotypeAfter continuing with the same

taste for 99 years, Coke decided to

switch to a new formula in 1985

NewCoke, a sweeter version waslaunched to match arch-rival Pepsi

LoyalClassicCoke consumers were

notreadyto lower down to this

variant

Thus being stereotyped (in terms of

taste) led to the product failure.


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Aspects of Perception

SELECTION

Consumers subconsciously areselective as to what they

perceive.

Stimuli selected depends ontwo major factors

Consumers previous experienceConsumers motives

Selection depends on the

Nature of the stimulus

Expectations

Motives

ORGANIZATION

Figure and ground

Grouping

Closure

INTERPRETATION

Physical Appearances

Stereotypes

Jumping to Conclusions


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Effect of price ending

Certainprices have a psychological impact.

Aprice of Rs. 999 may be perceived as just below 1000

bringing it into the 900 bracket forthe consumer

The 1 unitremoved fromthe price may beperceived as a

discount.

Some companies do it on a regular basis and some do it for


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Perceived Risky Degree of uncertainty perceived by the consumer about theconsequences of a specific purchase decision.

y Types:

y Functional Risk

y Physical Risk

y Financial Risk

y Social Risk

y Psychological Risk

y Time Risk


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y Functional risk : Risk of non-performance

y Medicine,cosmetics or services like doctors or lawyers

y To minimise the risk the consumer will get more informationsabout goods or services or he will choose certain values eg. well

known brandsy Physical risk : the risk to self and others that the product

may pose

y The safety of product (gmo, cell phone)

y Psychological risk : doesnt fit the consumer personality

y Time risk : wastage of time in searching for the product

Perception ofRisk


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y Financial risk : the product will not be worth its price

y More expensive a product is, the more complex the purchaseproccess is

y The risk depends on the revenue of the consumer

y Not only the fruit of the purchase but on the fee of the delivery andthe accessories

y Social risk : risk of social embarrassment

y Only on visible consumption (clothes, hair cut, cellphone)

y

To be part of a group, one needs to conform

Perception ofRisk


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Perception based Positioning

y Perceptual Mappingaids marketers inpositioning and re-

positioning ofproducts/services

y Must determine whichare the important

attributes on whichperceptions formed

Cars available in the United States


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Consumer perception

price

Perceived price = reflect the value that the customerreceives from the purchase

Perception of prices unfairness affect consumers'perception of product value

Reference price is any price that a consumer uses as abasis for comparaison in judging another price

C i


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Consumer perception

Quality of a product

Perceived quality = based on a variety of informalsignals that they associate with the product can beintrinsic (physical characteristic) or extrinsic (what peoplesay) to the product

Packaging influences consumers'

perception of productex: Dorset cereals


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Thank You


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Behavioural Learning Theories

Cognitive Learning Theory


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Two sub-theories in this stream:

1.Classical conditioning2.Instrumental conditioning

One common basis:

Focus on the inputs and outputs, not on

the process between them.


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Two kinds of inputs/stimulus:

1.Unconditioned stimulus

Well-known brandname

and its logo

2.Conditioned stimulus Ad showing new

Productfeatures/attributes +

emotional elements


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Two kinds of outputs/response:

1.Unconditioned output Consumer perception

Consumer perception

=Brand name/logo+ Ad showing new Product

features/attributes + emotional elements

1.Conditioned output Purchase/use the brand

Purchase = Consumer perception +

Repeated Ads/promotions


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Behavioural Learning Theories Classical conditioning

Repetition (1)

Stimulus

generalizationStimulusdiscrimination

Three important basic concepts

Strengthen the association

between the conditioned andunconditioned stimuli

Slow down the pace/process offorgetting

Wear out phenomenon too much repetition = retentiondeclines


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Repetition (2)

Stimulus



Avoiding/decreasing Wear

out effect:Minor and Major variations in theadvertising message

Minimum number of

repetitions?At least three Each exposure has a different

objective


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Repetition (3)

Stimulus



First exposure: make the

customer aware of the product Second exposure: show

customers the relevance of theproduct + highlight uniqueness

Third exposure: Remind themthe benefits + the specific valueproposition


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Repetition

Stimulus

generalization (1)Stimulusdiscrimination


Customer tend to show similarresponse to slightly different

stimuli E.g. Dogs salivate even on

hearing somewhat similar soundto that of a bell

Consequence

:consumersconfuse them with the original

product they have seen oradvertised.


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Behavioural learning Theories Classicalconditioning

Repetition

Stimulus

generalization (2)Stimulusdiscrimination


Opportunities of this

phenomenon for marketers:

1. Product line extensions (e.g.Dove name used for shampooand soap)

2.Product form extensions (e.g.Dettol soap is extended in liquidform)

3. Product category extensions


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Repetition

Stimulus

generalizationStimulusdiscrimination (1)


Opposite of stimulusgeneralization

Key concept: positioning of thebrand

Objective:build a unique imageor position the product/service in

the mind of the consumer The brand has to be differentfrom the competition in themind of the consumer


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Repetition

Stimulus

generalizationStimulusdiscrimination (2)


Its often difficult to dislodge an

established brand once stimulusdiscrimination has occurred

The longer the period of learning

or associating a brands attributes

with a specific product, the morelikely the consumer will

discriminate


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Behavioural learning Theories Instrumentalconditioning

Learning occurs in a controlled

environment where individuals arerewarded or get a positive experience

(reinforcement) for choosing an

appropriate behaviour.

B.F. Skinner


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It exists three kind of reinforcement:

1. Positive: marketers have to privilege

them

2. Negative: marketers have to avoid them

3. Forgetting: At times, certain behaviour is

unlearned because of lack of use rather

than lack of reinforcement. Marketers try

to avoid this through repetition.


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What should be positively reinforce ?

1. Customer satisfaction: provide the bestproduct as possible and avoid raising

customer expectations for the

product/service beyond a point

2. Relationship between the companyand the clients


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A substantial amount of learning takesplace as a result of consumers own initiativeto solve a problem. Generally, cognitivelearning theory is based on mental activity,

and learning happens on mentalinformation processing or in response toproblem solving.


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Information processing is related to both cognitiveability and the complexity of the information.

The more experience a consumer has with a productcategory, the greater his/her ability to make use ofproduct information.

Sensory store: All information comes to our memorythrough our senses (sensory input) and is compiled as

a single image by the brain. Its easy for the marketerto enter this store. However, its harder to make alasting impression


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It exists two types of memory: short and

long-term.

Short-term memory:1. Its the working memory

2. If rehearsed, mental repetition of sensorymaterial takes place and information istransferred to the long-term memory.

3. If not rehearsed and transferred, its lost in afew seconds.


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Long-term memory:

1. All information and experiences encountered

by an individual end up in his long-termmemory.

2. These information and experiences may last

days, weeks or even years.

Movement from short-term to long-termmemory depends on rehearsal and encoding


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How to facilitate rehearsal and encoding? (1)

Focus on images rather than words accelerates

the process of encoding Limit the quantity of information to avoid

overloading Knowledgeable consumers can take in more

complex chunks of information than those whoare less knowledgeable in the product category Studies show that consumers tend to remember

the products benefits rather than its attributes


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How to facilitate rehearsal and encoding? (2)

The memorability of an ad is improved when as

messages are relevant to the customer, especially if

it helps him to solves his problems

The more the competition is intense, the less theconsumer will have a big ability to encode

information.


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Key

SocialPlatforms

Blogging

Photo

sharing

Microblogging

RSS

Widgets

SocialNetworking

Chat Rooms

MessageBoards

Podcasts

Video

Sharing


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Social Networking in India

Urban Population

250 Million

Literate Population

205 Million

English Knowing

77 Million

PC Literate

65 Million

Internet Users46 million

Active Users

32 Million

13.7 Million Social

Networking Users

Total Population

1120 Million

Internet is the fastest

growing mass medium in India

Every 8thUrban Indian is

online

Every second Internet userin India is an Social

networking Site user

Active internet users have

increased by more than 50 %

in 1 year


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` Companies can gain new insights and opinions` How product is used

` Discover their flaws

` Better way to communicate their message

` Express themselves through corporate blogs and other

social media channels


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Social media describes the online technologies and practices

that people use to share opinions, insights, experiences, andperspectives with each other.

Social media can take many different forms, including text,images, audio, and video.

Popular social mediums include blogs, message boards,

podcasts, wikis, and vlogs


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