Consumer Needs

Sometimes a business is started to satisfy consumer

needs.

1.

Content theory: What motivates us?

2.

Process theory: Why and how motivation occurs?

3.

Reinforcement theory: How outcomes influence

behaviours.

Needs are things that are necessary for survival.

You need food, clothing.

Wants are things that are not necessary for survival,

but add comfort and pleasure to our lives.
You want a pizza, or new computer

-- Also write Maslows Theory

Content Theory
Mainly focuses on the internal factors that energize
and direct human behavior
1.

Maslow's hierarchy of needs

2.

Herzberg's motivator-hygiene theory

3.

Alderfer's ERG theory

4.

McClelland's three-needs theory

Define the Scope - Mission Statement

Gather Raw Data Interviews, Focus Groups ,
Observation

(1) Maslows Theory

Interpret Raw Data - Need Statements

Organize the Needs - Hierarchy

We each have a hierarchy of needs that ranges from

"lower" to "higher."

Establish Importance Surveys, Quantified Needs

Reflect on the Process - Continuous Improvement

Motivation

As lower needs are fulfilled there is a tendency for

other, higher needs to emerge.
Maslows theory maintains that a person does not feel
a higher need until the needs of the current level have
been satisfied.

Motivation is the characteristic -- that helps

you achieve your goal.

It is the drive -- that pushes you to work

hard.

It is the energy -- that gives you the strength

to get up and keep going - even when things
are not going your way.

An activated state -- within a person -- that

leads to -- goal directed behaviour.

3 common aspects of motivation

1.

Effort: concerns with magnitude or intensity of

employees work related behaviour.

2.

Persistence: concerns sustained efforts employee

manifested in work related activities.

3.

Direction: Quality of an employees work i.e.

investment of sustained efforts in a direction that
benefits the employer.

3 major theories of motivation

Physiological needs: The need for food, shelter, and

clothing.

Safety Needs: Provide a working environment which

is safe, relative job security, and freedom from
threats.

Social Needs: Generate a feeling of acceptance,

belonging by reinforcing team dynamics.

Esteem Motivators: Recognize achievements,

assign important projects, and provide status to make
employees feel valued and appreciated.

Self-Actualization: Offer challenging and meaningful

work assignments which enable innovation, creativity,
and progress according to long-term goals.

Work conditions

Company policy

PSS

(3) Alderfer ERG Theory

Existence Similar to - Maslows Physiological and

safety needs
Needs satisfied by factors such as food, air, water,
pay, and working conditions
Basic material existence requirement.

Limitations and criticism

Relatedness- Similar to - Maslows Social need and

external component of esteem need.

Maslows hierarchy makes sense but little evidence

supports its strict hierarchy.

Desire for maintaining social and interpersonal

relationships

Research has challenged the order imposed by

Maslows pyramid.
As an example, in some cultures, social needs are
regarded higher than any others.

Growth Similar to - Maslows esteem need and self actualization.

Intrinsic desire for personal development.

Little evidence suggests that people satisfy

exclusively one motivating need at a time.
ERG theory => More than one need may be
operative at the same time.
(2) Motivation-Hygiene Theory
Frederick Herzberg performed studies to determine
which factors in an employee's work environment
caused satisfaction or dissatisfaction.

Alderfer also deals with frustration regression.

I.e., a higher order need is frustrated, an individual
then seeks to increase satisfaction of a lower order
need.

Satisfiers: Motivators
Dissatisfies: Hygiene factors

(4) McClellands Need Theory

Motivating factors

Need For Achievement:

Desire to excel and accomplish something difficult.

Achievement

Recognition

Work itself

Responsibility

Need For Affiliation:

Advancement

Growth

Desire to spend time in social relationships and

activities.

RAW,

A need to accomplish and demonstrate competence

or mastery

A need for love, belonging and relatedness

Hygiene Factors
Need For Power:

Relationship w/Boss

Relationship w/Peers

Supervision

Salary

Desire to influence, coach, teach, or encourage others

to achieve.
A need for control over ones own work or the work of
others

Avoidance - is an attempt to show an employee what

the consequences of improper behaviour will be.
If an employee does not engage in improper
behaviour, he or she will not experience the
consequence.

Punishment - is an attempt to decrease the

likelihood of a behaviour recurring.
By applying negative consequences.
Ex: threats, docking pay, suspension

Extinction - is basically ignoring the behaviour of a

subordinate
Providing either positive or negative reinforcement.
This technique should only be used when the
supervisor perceives the behaviour --- as temporary,
not typical, and not serious.
Ex: Classroom teachers often use this technique when
they ignore students who are acting out to get
attention.

(2) Vroom's Valence / Expectancy / VIE Theory

Indicates that ones level of motivation depends on:

The attractiveness of the rewards sought and

The probability of the rewards obtained.

Process / Cognitive Theories of Motivation

(1) Reinforcement theory

Argues that the behaviour that results in

rewarding consequences is likely to be
repeated.

Whereas behaviour that results in punishing

consequences is less likely to be repeated.

There are four types of reinforcement that can

result from behaviour .i.e.
*

Positive reinforcement,

Avoidance,

Punishment and

Extinction.

Positive reinforcement - Rewards desirable

behaviour.
Ex: a pay raise or promotion, is provided as a reward
for positive behaviour
With the intention of increasing the probability that
the desired behaviour will be repeated.

In the case of employees feeling that they get the

value from business organizations and they put higher
effort of work effort.

Is based on three key variables:

(1) Valence,
(2) Instrumentality and
(3) Expectancy.

PAP

Valence - The feeling about specific outcomes is

termed valence. People prefer certain outcomes from
their behaviour to others.

Instrumentality - is the association between firstlevel outcomes and second-level outcomes.

Expectancy - is a relationship between a chosen

course of action and its predicted outcome.

performance because:

(3) Equity theory

Expresses that individuals perceptions on how they

are being treated by the organization comparing to
other employees in the similar organizational level.

Motivation is influenced significantly by others

rewards as well as by ones own rewards.

Most research has focused on pay, but employees

seem to look for equity in the distribution of other
rewards.

Historically, equity theory focused on distributive

justice. But increasingly equity is thought of from the
standpoint of organizational justice.

Managers should consider openly sharing information

on how allocation decisions are made, following
consistent and unbiased procedures.

(4) Goal setting theory

Individuals goal directed effort depends on: Goal

difficulty, specificity, acceptance and commitment -combine.

This effort when complemented by Appropriate

organizational support and individual abilities --- result
in good performance.

A theory that says that specific and difficult goals with

feedback, lead to higher performance.

According to Edwin Locke, intentions to work toward a

goal are a major source of work motivation.

Goals tell an employee what needs to be done and

how much effort will need to be extended.

More difficult the goal, higher the level of

Challenging goals help to get our attention

and tend to help us focus.

Difficult goals energize us because we have to

work harder to attain them.

When goals are difficult, people persist in trying to

attain them.

Difficult goals lead us to discover strategies that help

us to perform the job or task more efficiently.

People do better when they get feedback on how well

they are progressing toward their goals because
feedback helps to identify discrepancies between
what they have done and what they want to do; that
is , feedback acts to guide behavior.

Self-Efficacy Theory - (also known as social

cognitive theory or social learning theory)

Refers to an individuals belief that he/she is capable

of performing a task.

Higher your self-efficacy, the more confidence you

have in your ability to succeed in a task and respond
to negative feedback with increased effort and
motivation.

Perceptual Mapping

Perceptual mapping is a graphics

technique used by asset marketers that
attempts to visually display the perceptions of
customers or potential customers.
Typically the position of a product,
product line, brand, or company is displayed
relative to their competition.
Marketing research technique in which
consumer's views about a product are traced or
plotted (mapped) on a chart.
Respondents are asked questions about
their experience with the product in terms of its
performance, packaging, price, size, etc.
Theses qualitative answers are
transferred to a chart (called a perceptual map)
using a suitable scale (such as the Likert scale),
and the results are employed in improving the
product or in developing a new one.
Perceptual mapping is also called
positioning map which helps you to develop a
marketing positioning strategy for you product
or services.

Perceptual maps or positioning maps as

they are sometimes referred to, are often used
to help the organization identify a positioning
strategy.
When plotting a perceptual map two
dimensions are commonly used.
Any more is a challenge to draw and
confusing to interpret.

If we plot the INDIAN chocolate market we

can identify those brands which are high price
and high quality. Once completed the
perceptual map could help identify where an
organization could launch a new brand perhaps
at the medium price and quality range.

Consumer in most product categories try to evaluate

brands using the least amount of time and energy as
indicated by a research.

By first identifying and then using a relatively few

broad dimensions to compare brands or products the
goal is accomplished by the consumer.

The brands and products are evaluated in terms of

broad dimensions by a consumer as they save time
and energy.

Consumer refer to and use a smaller number of broad

dimenstions instead of having to perform much more
complex evaluations based on a larger set of narrower
individual attributes

Thus it is easier to remember and act upon 2 or 3

broader dimensions instead of remembering 20 to 30
attributes.
Perpetual Mapping is used to make these dimensions
explicit.

According to the type of perpetual map and the

corresponding differences in underlying data the
approach to dimension creation is different.

By doing an analysis of the underlying brand and

product attributes the dimensions of attribute based
perpetual mapping is created.

Lets take the example of gasoline. The dimensions

that the consumer use to evaluate alternative brands
of gasoline are performance and convenience.

Each dimension is made up of a number of individual

brand of product attributes.

Dimensions of gasoline performance include

attributes like no knock, no run or smooth

acceleration and quick acceleration.

Dimensions of convenience may contain the attributes

like many locations, location have many pumps, can
pay by cash, change or ATM., easy to pull in and out.

The dimensions which is created from an analysis of

customer evaluation of brand and product similarities
or attributes is based on a non-attribute perpetual
maps.

These dimensions reflect the implicit criteria which

the customer use to determine the similarities across
brands and overall brand preference.

towards products or brands into a reduced

number of dimensions (usually two or three)

Represent them graphically into a preference

map or perceptual map

It is also possible to show both objects and subjects

(the consumers) in the same graph through
multidimensional unfolding (MDU)

MDU is a technique which unfolds the coordinates for

consumers (or groups of consumers) on the basis of
their preferences or perceptions through an ideal
point model

MDS can be used to measure:

Multidimensional Scaling

In general, the goal of the analysis is to detect

meaningful underlying dimensions that allow the
researcher to explain observed similarities or
dissimilarities (distances) between the investigated
objects.

With MDS one may analyse any kind of

similarity or dissimilarity matrix, in addition to
correlation matrices.

A set of statistical techniques which allow one to

translate consumer preferences or perceptions

Image measurement

Market segmentation

New product development( positioning)

Assessing advertising effectiveness

Pricing analysis

Channel decisions

Attitude scale construction