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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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Behavioural Learning Theories Classical conditioning
Repetition (2)
Stimulus
generalizationStimulusdiscrimination
Three important basic concepts
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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Behavioural Learning Theories Classical conditioning
Repetition (3)
Stimulus
generalizationStimulusdiscrimination
Three important basic concepts
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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Behavioural Learning Theories Classical conditioning
Repetition
Stimulus
generalization (1)Stimulusdiscrimination
Three important basic concepts
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
Three important basic concepts
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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Behavioural learning Theories Classicalconditioning
Repetition
Stimulus
generalizationStimulusdiscrimination (1)
Three important basic concepts
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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Behavioural learning Theories Classicalconditioning
Repetition
Stimulus
generalizationStimulusdiscrimination (2)
Three important basic concepts
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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Behavioural learning Theories Instrumentalconditioning
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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Behavioural learning Theories Instrumentalconditioning
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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