Notes on Consumer Behavior

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MOTIVATION

Needs and Motivation

•

Needs

are the essence of the marketingconcept.

–

Marketers do not create needs but can makeconsumers aware of needs.

•

Motivation

–

is the driving force within individuals thatimpels them to action

–

refers to the processes that lead people tobehave as they do (occurs when a need isaroused that the consume wishes to satisfy)

–

refers to an activated state within a personthat leads to goal-oriented behavior; consists of drives, urges, wishes, or desires that initiate thesequence of events leading to a behavior

–

“what gets you going…and what keeps yougoing”

Types of Needs

•

Innate NeedsPhysiological (or biogenic) needsthat are considered primary needs or motives

•

Acquired NeedsLearned in response to ourculture or environment. Are generallypsychological and considered secondary needs

Goals.

The sought-after results of motivatedbehavior

•

Generic goals

are general categories of goalsthat consumers see as a way to fulfill theirneeds

•

Product-specific goals

are specifically brandedproducts or services that consumers select astheir goals

The Selection of Goals

•

The goals selected by an individual depend ontheir:

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Personal experiences

–

Physical capacity

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Prevailing cultural norms and values

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Goal’s accessibility in the physical and socialenvironment

Motivations and GoalsPositive

•

Motivation . A driving force TOWARD someobject or condition

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Approach Goal. A positive goal toward whichbehavior is directed

Negative

•

Motivation A driving force AWAY from someobject or condition

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Avoidance Goal. A negative goal from whichbehavior is directed away

Rational versus Emotional Motives

•

Rationality

implies that consumers select goalsbased on totally objective criteria such as size,weight, price, or miles per gallon

•

Emotional

motivesimply the selection of goalsaccording to personal or subjective criteria

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

Substitute Goals

•

Are used when a consumer cannot attain aspecific goal he/she anticipates will satisfy aneed

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The substitute goal will dispel tension

•

Substitute goals may actually replace theprimary goal over time

Philosophies Concerned with Arousal of Motives

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Behaviorist School

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Behavior is response to stimulus

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Elements of conscious thoughts are to beignored

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Consumer does not act, but reacts

•

Cognitive School

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Behavior is directed at goal achievement

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Needs and past experiences are reasoned,categorized, and transformed into attitudes andbeliefs

Abraham Maslow’s Hierarchy of Needs

5. Self-Actualization (self-fulfillment)4. Ego Needs (prestige, status, self-esteem)3. Social Needs (affection,friendship, belonging)4. Safety and Security Needs (Protection, Order)5. Physiological Needs (food, water, air)1

. Biological and Physiological needs

- air,food, drink, shelter, warmth, sex, sleep, etc.2.

Safety needs

- protection from elements,security, order, law, limits, stability, etc.3.

Belongingness and Love needs

- work group,family, affection, relationships, etc.4.

Esteem needs

- self-esteem, achievement,mastery, independence, status, dominance,prestige, managerial responsibility, etc.5.

Self-Actualization needs

- realizing personalpotential, self-fulfillment, seeking personalgrowth and peak experiences

1970’s Adapted Hierarchy of Needs

1. Biological and Physiological needs2. Safety needs -3. Belongingness and Love needs4. Esteem needs -5.

Cognitive needs

- knowledge, meaning, etc.6.

Aesthetic needs

- appreciation and search forbeauty, balance, form, etc.7. Self-Actualization needs

1990’s Adapted Hierarchy of Needs

1. Biological and Physiological needs2. Safety needs3. Belongingness and Love needs4. Esteem needs5. Cognitive needs6. Aesthetic needs7. Self-Actualization needs8.

Transcendence needs

- helping others toachieve self actualization.

Henry Murray’s List of Psychogenic NeedsNeeds Associated with Inanimate Objects:

•

Acquisition/Conservancy– obtainingthings/possessions

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Order– making things neat andorganized; arranging,organizing and being precise

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Retention– keeping things

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Construction– building or creatingthings

Needs Reflecting Ambition, Power,Accomplishment, and Prestige:

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Superiority– being above others

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Achievement– success,accomplishment and overcomingobstacles

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Recognition– displayingachievements, gaining approvaland social status

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Exhibition– shocking or thrilling otherpeople; attractingattention

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Infavoidance– avoiding failure,shame, humiliation,ridicule or concealing a weakness

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Defendance– defensive attitude;justifying actions

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Counteraction– counteractiveattitude; defending honor

Needs Connected with Human Power:

•

Dominance– controlling and leadingothers

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Deference– obeying and cooperatingwith others; followinga superior, serving

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Similance– empathizing with others;suggestible attitude

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Autonomy– independence andresistance; resisting othersand standing strong

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Contrariance– being unique; actingdifferently from others

Sado-Masochistic Needs :

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Aggression– injuring others

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Abasement– confessing andapologizing; surrendering andaccepting punishment

Needs Concerned with Affection betweenPeople:

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Affiliation– spending time with otherpeople; makingassociations and friendships

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Rejection– rejecting other people;excluding another

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Nurturance– taking care of anotherperson; nourishing,aiding, or protecting the helpless

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Succorance– being helped orprotected by others; seekingaid, protection or sympathy

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Play– having fun with others

Needs Concerned with Social Intercourse:

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Cognizance– seeking knowledge andasking questions; Inquiring attitude

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Exposition– educating others,providing information; expositiveattitude

A Trio of Needs(Developed by David McClelland)

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Need for Power (nPow)

–

individual’s desire to control environment(other persons, various objects)

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the desire to obtain and exercise control overothers; the goal is to influence, direct andpossibly dominate other people

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can have 2 directions: positive (resulting inpersuasive and inspirational power), or negative(resulting in the desire to dominate and obtainsubmission from others)

•

Need for Affiliation (nAff)

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need for friendship, acceptance, and belonging

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similar to Maslow’s belongingness needs

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what motivates people to make friends, joingroups and associate with others

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rank the desire to be with others ahead of theneed to succeed

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Need for Achievement (nAch)

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need for personal accomplishment

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closely related to egoistic and self-actualization needs

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seek to get ahead, strive for success, and takeresponsibility for solving problems

PERSONALITY

What Is Personality?

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The (enduring) inner psychologicalcharacteristicsthat both determine and reflecthow a person responds to his/her environment

–

Inner characteristics: specific qualities,attributes, traits, factors, mannerisms thatdistinguish one individual from other individuals

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Likely to influence product choices, responseto marketers’ promotional efforts, and when/where/how they consume particular products/services

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A person’s unique psychological makeupandhow it consistently influences the way a personresponds to his/her environment

The Nature of Personality

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Personality reflects individual differences

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No 2 individuals are exactly alike; manyindividuals may be similar in a single personalitycharacteristic but not in others

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Enables marketers to categorize customersinto different groups on the basis of one orseveral traits

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Personality is consistent and enduring

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Essential to explain/predict consumer behaviorin terms of personality

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Marketers cannot change consumers’personalities to conform to their products butcan attempt to appeal to the

relevant traits

(those influencing consumer responses) inherentin their target market/consumers

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Consumption behavior varies due topsychological, socio-cultural, environmental,situational factors [Personality is only 1 of acombination of factors that influence behavior]

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Personality can change

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By major life events

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By a gradual maturing process

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Personality stereotypes may change over time

Aspects of Personality

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Behavior shows consistency

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Behaviors distinguish one person from another

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Behaviors interact with the situation

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Single measures of personality cannot predictspecific behaviors, such as what brand aconsumer will purchase* Moral: Behavior must be measured on multipleoccasions to assess personality-behaviorrelationships accurately

Focus: 4

Aspect of Personality

•

Single measures of personality cannot predictspecific behaviors

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Moderates the effects of advertising messagesand marketing situations on consumer behavior

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Moderating variable: an individual-differencevariable that interacts with the consumersituation and/or type of message beingcommunicated

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Consumer situation: temporary environmentalfactors that form the context within which aconsumer activity occursEXAMPLE: the social context in whichpurchases take place

Researchers have found that consumers actdifferently when other people are observingtheir purchase behavior than when theybelieve they are unobserved.

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This situational variable may interact witha personality characteristic thatdistinguishes individuals on their tendencyto conform to social pressures when makingpurchases

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The ATSCI (attention to social comparisoninformation) scale has been developed tomeasure this disposition to conform

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Findings:

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A person who has a low tendency toconform will tend to make her desiredpurchases whether she is shoppingalone or with a group

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Someone with a high tendency toconform will make many more changesin purchase plans when shopping witha group than when shopping alone

Thus, the personality variable ATSCImoderates the impact of the situation onconsumer behavior.Theories of Personality

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Freudian theory

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Unconscious needs or drives are at the heartof human motivation

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Neo-Freudian personality theory

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Social relationships are fundamental to theformation and development of personality

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Trait theory

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Quantitative approach to personality as a setof psychological traits

Freudian Theory

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Sigmund Freud’s psychoanalytic theory of personality was built on the premise thatunconscious needs or drives, especially sexualand other biological drives, are at the heart of human motivation and personality

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Human personality results from a dynamicstruggle between inner physiological drives (e.g.hunger, sex, aggression) and social pressures tofollow laws, rules and moral codes.

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Warehouse of primitive or instinctual needsfor which individual seeks immediatesatisfaction

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Entirely oriented toward immediategratification

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The “party animal” of the mind

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Operates according to the pleasureprinciple

Superego

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Individual’s internal expression of society’smoral and ethical codes of conduct

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Counterweight of the id

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The person’s conscience

Ego

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Individual’s conscious control that balancesthe demands of the id and superego

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System that mediates between the id andthe superego

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Referee in the fight between temptationand virtue

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Balances opposing forces according to thereality principle

Freudian Theory andConsumer Behavior

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Consumer researchers using Freud’s personalitytheory see consumer purchases and/orconsumption situations as a reflection andextension of the consumer’s own personality

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A person channels his/her unacceptable desireinto acceptable outlets by using products thatsignify these underlying desires. This is theconnection between symbolism and motivaton:The product stands for or represents aconsumer’s true goal. By acquiring the product,the person is able to vicariously experience the“forbidden fruit”.

Neo-Freudian Personality Theory

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We seek goals to overcome feelings of inferiority

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We continually attempt to establishrelationships with others to reduce tensions

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Karen Horney was interested in child-parentrelationships and desires to conquer feelings of anxiety. Proposed three personality groups

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Compliant

move toward others, they desire tobe loved, wanted, and appreciated

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Aggressive

move against others,competes with others

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Detached

move away from others,desires independence, self-sufficiency,and freedom from obligations

Trait Theory

•

Personality theory with a focus onpsychological characteristics

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Primarily a quantitative/empirical approachwith the use of personality tests

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Trait - any distinguishing, relatively enduringway in which one individual differs from another

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Personality is linked to how consumers maketheir choices or to consumption of a broadproduct category - not a specific brand

Trait Theory

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Innovativeness

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Dogmatism

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Social character

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Need for uniqueness

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Optimum stimulation level

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Variety-novelty seeking

1. Innovativeness.

The degree to whichconsumers are receptive to new products, newservices, or new practices

2. Dogmatism.

Reflects the degree of rigidity aperson displays toward the unfamiliar andtoward information that is contrary to his/herown established beliefs

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If low in dogmatism (open-minded): likelyto prefer innovative products

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If high in dogmatism: more receptive to adsfor new products that contain an appealfrom an authoritative figure

3. Social character.

Ranges on a continuum:

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Inner-directedness

•

rely on own values when evaluatingproducts

•

consumer innovators

•

prefer ads that stress productfeatures/personal benefits

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Other-directedness

•

look to others

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less likely to be innovators

•

prefer ads that feature an approvingsocial environment or social acceptance

4. Need for uniqueness.

Consumers who avoidappearing to conform to expectations orstandards of others

5.Optimum stimulation level.

Measures thelevel or amount of novelty or complexity thatindividuals seek in their personal experiences

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Reflects a person’s level of lifestylestimulation

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High OSL consumers tend to accept riskyand novel/new products more readily thanlow OSL consumers.

6. Variety Novel-Seeking.

Measures aconsumer’s degree of variety seeking:

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Exploratory Purchase Behavior (brandswitching)

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Use Innovativeness (using an alreadyadopted product in a new/novel way)

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Vicarious Exploration (obtaininginformation about new and differentalterna-tives, then contemplating/daydreaming about the option)

Specific Traits Related to Consumer Behavior

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Innovativeness:

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The degree to which a person likes to try newthings

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Materialism:

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Amount of emphasis placed on acquiring/owning products

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Regarding possessions as essential to identitiesand lives

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Self-Consciousness

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The degree to which a person deliberatelymonitors and controls the image of the self thatis projected to others

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Need for Cognition:

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Degree to which a person likes to think aboutthings and expands the necessary effort toprocess brand information

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Frugality:

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Deny short-term purchasing whims, choosing toresourcefully use what they already own

VALS(Values and Lifestyle System)

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The original VALS system was built by consumerfuturist Arnold Mitchell to explain changing U.S.values and lifestyles in the 1970s.

•

A marketing and consulting tool that helpsbusinesses worldwide develop and execute moreeffective strategies.

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The system identifies current and futureopportunities by segmenting the consumermarketplace on the basis of the personalitytraits that drive consumer behavior.

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The basic tenet of VALS is that people expresstheir personalities through their behaviors. VALSspecifically defines consumer segments on thebasis of those personality traits that affectbehavior in the marketplace.

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Rather than looking at what people do andsegregating people with like activities, VALS usespsychology to segment people according to theirdistinct personality traits.

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The personality traits are the motivation—thecause. Buying behavior becomes the effect—theobservable, external behavior prompted by aninternal driver.VALS reflects a real-world pattern that explainsthe relationship between personality traits andconsumer behavior. VALS uses psychology toanalyze the dynamics underlying consumerpreferences and choices. VALS not onlydistinguishes differences in motivation, it alsocaptures the psychological and materialconstraints on consumer behavior.VALS is based on current personality researchinto specific components of social behavior. VALSasserts that people express their personalitiesthrough their behaviors. People with differentpersonalities engage in different behaviors orexhibit similar behaviors for different reasons.

The Big 5 Dimensions*

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The Big Five encompasses trait distinctions inmost cultures:

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Surgency/Extraversion

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Agreeableness

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Conscientiousness

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Emotional Stability

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Intellect

7 Mindsets of the Filipino Consumer*

Passive Survivors:“Life is a series of ups anddowns over which I have little control”Relationship-Centered:“My relationships,particularly with my family, matter to me morethan anything else in the world”Advisers:“I work to realize my full potential,contribute to society, and, in so doing, findmore meaning in my life.”Achievers:“I am success-oriented and confidentin all that I do”Happy Adventurers:“I am fun-loving. Iconstantly seek new and exciting experiences.” Approval-Seekers:“I want to be accepted and tobelong. I fear failure and losing face.”Control Seekers:“I am orderly and organized ineverything I do. I am focused and directed in allthe tasks I do.”

Cognitive Personality Factors

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Need for cognition (NC)

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A person’s craving for or enjoyment of thinking

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Individual with high NC more likely to respondto ads rich in product-related information of description

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More responsive to cool colors

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If low NC, more likely to be attracted to thebackground or peripheral aspects of an ad

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Spend more time on print content,have much stronger brand recall

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Plays a role in an individual’s use of theInternet

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Visualizers versus verbalizers

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A person’s preference for informationpresented visually or verbally

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Visualizers prefer visual information andproducts that stress the visual

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Verbalizers prefer written/verbal informationand products that stress the verbal over graphicsand images

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This distinction helps marketers knowwhether to stress visual or writtenelements in their ads

From Consumer Materialism to CompulsiveConsumption

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Consumer materialism

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The extent to which a person is considered“materialistic”

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A trait of people who feel their possessionsare essential to their identity

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Value acquiring and showing off possessions;self-centered and selfish; seek lifestyles full of possessions and their possessions do not givethem greater happiness

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Often linked to advertising

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Fixated consumption behavior

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Consumers fixated on certain products orcategories of products but still in the realm of normal and socially acceptable behavior

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Characterized by:

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Deep/passionate interest in a particularobject/product category

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Willing to go to considerable lengths to obtainmore of the desired object/product

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Dedicate considerable time and money tosearching for the object/product

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Includes collectors or hobbyists

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Compulsive consumption behavior

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“Addicted” or “out-of-control” consumers

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Their actions may have damagingconsequences to them and those around them

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In the realm of abnormal behavior

Brand Personality

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Personality-like traits associated with brands

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Examples

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Freshness

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Athlete

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Performance driven

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Dependable

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Can either be functional or symbolic

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