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Consumer Behavior

Course Outline
Consumer Behavior

Twelfth Edition
Welcome…!!!

Aap me Aap ka swagat hai…!!!

4
Learning Objectives

1. Origin of CB
2. What Consumer Behavior Is and the Different
Types of Consumers.
3. To Understand the Relationship Between
Consumer Behavior and the Marketing Concept,
the Societal Marketing Concept, as Well as
Segmentation, Targeting, and Positioning.
4. To Understand the Relationship Between
Consumer Behavior and Customer Value,
Satisfaction, Trust, and Retention.
Chapter One Slide 5
Learning Objectives (continued)

5. To Understand How New Technologies Are


Enabling Marketers to Better Satisfy the
Needs and Wants of Consumers.
6. To Understand How Marketers Are
Increasingly Able to Reach Consumers
Wherever Consumers Wish to Be Reached.
7. Model of Consumer Behavior.

Chapter One Slide 6


scientific study
of the mind

It investigates the structure of


How all the stake holders makes
groups, organization and societies
choice about how to allocate the
and how people interact within
resources,
these contexts.

The study of human being , It deals with social


especially of their origin , interactions, including their
development, customs and origins and their effects on
beliefs the individual.

7
What is Consumer Behavior???
Consumer Behavior

The behavior that consumers display in


• searching for,
• purchasing,
• using,
• evaluating, and
• disposing of products and services that they
expect will satisfy their needs.

Chapter One Slide 9


Consumer Behavior

Defined
Consumer behavior is the study of consumers’ choices
during searching, evaluating, purchasing, and using
products and services that they believe would satisfy their
needs.
Why study of Consumer Behavior important?
Marketing

Defined
Marketing is the activity, set of institutions, and processes
for creating, communicating, and delivering offerings
that have value for customers, clients, partners, and
society.
What Can a Car Help Express About its
Owner?
Vices and Virtues

• Presence of healthy food option “licensed” consumers to


eat unhealthy food
• Estimated burger calories decreased over 100 calories
when accompanied by three celery sticks.
• How and why do consumers make decisions based on
other factors than facts and rationality?
Learning Objective 1.1

1.1 To understand the evolution of the marketing concept,


what consumer behavior is, and the components of
strategic marketing.
Two Consumer Entities
Organizational
Personal Consumer
Consumer
• The individual who • A business,
buys goods and government agency,
services for his or or other institution
her own use, for (profit or nonprofit)
household use, for that buys the goods,
the use of a family services, and/or
member, or for a equipment
friend. necessary for the
organization to
function.
16 Chapter One Slide
Development of the
Marketing Concept

Production Product Sales Marketing


Orientation Orientation Orientation Concept

17 Chapter One Slide


Production Orientation

• From the 1850s to the late 1920s-Ford


• Companies focus on production capabilities
• Consumer demand exceeded supply

Production Product Sales Marketing


Orientation orientation Orientation Concept

18 Chapter One Slide


Product Orientation

• Alfred Sloan 1923s-GM


• Companies focus on incorporating more Feature

Production Product Sales Marketing


Orientation orientation Orientation Concept

19 Chapter One Slide


Marketing Myopia

20
Sales Orientation

• From the 1930s to the mid 1950s


• Focus on selling
• Supply exceeded customer demand

Production Product Sales Marketing


Orientation Orientation Orientation Concept

21 Chapter One Slide


Marketing Concept

• 1950s to current - Focus on the customer!


• Determine the needs and wants of specific target markets
• Deliver satisfaction better than competition

Production Product Sales Marketing


Orientation Orientation Orientation Concept

22 Chapter One Slide


Holistic Marketing Dimensions
Societal Marketing Concept

• Considers consumers’ long-run best


interest

• Good corporate citizenship

24 Chapter One Slide


Core Marketing Concepts
• Needs: the basic human requirements such as for air,
food, water, clothing, and shelter

• Wants: specific objects that might satisfy the need

• Demands: wants for specific products backed by an


ability to pay
Marketing Concept Application

How does the Vans ad relate to the marketing concept?


Marketing Concept Requirements

• Market Segmentation
• Targeting
• Positioning
• The Marketing Mix (4 Ps)
– Product or service
– Price
– Place
– Promotion
Consumer Behavior in Digital Era
Marketing Mix : 4C’s
4 P’s
Product Cooperation
Place Communal Activation /
Community
Price Currency
Promotion Conversation
Learning Objective 1.2

To understand how technology has


benefited both :
1. Marketers and
2. Consumers.
• Traditional advertising v/s electronic communication
• Any thing just at a click of the button
• Value Exchange
• What do Consumers pay for free content
• Networked (Omni channels) buying convenience
• More information Comparing Product online
• Refined targeting, customize offering and promotion,
more effective pricing, shorter distribution channel and
long term relationship
• More precise targeting
– Data brokers and aggregators
– Data sold to exchange such as eXelate / Bluekai.
– Companies can bid and buy
– Mobile Advertise
– NFC Near field communication
– Selfies as Indicator
• Interactive Communication
– Instant reaction to marketer message
– Personalized coupons
– Involve customer in designing advt.
– Cross screen marketing
Discuss :

Is technology Good or Bad in long run ???


Cross-Screen Marketing

Defined
A promotional strategy that consists of tracking and
targeting users across their computers, mobile phones, and
tablets, and sending them personalized ads based on their
interests, as observed by marketers.
Learning Objective 1.3

1.3 To understand providing value and satisfaction and how


technology has enhanced customer loyalty and retention.
Power of Cultural context

• High and Low Cultural context


Successful Relationships (1 of 3)

Value, Satisfaction, • Defined as the ratio between


and Retention the customer’s perceived
benefits and the resources
• Customer Value
used to obtain those benefits
• Customer
• Perceived value is relative
Satisfaction
and subjective
• Customer Retention
• Developing a value
proposition is critical
Discussion Questions

• How does McDonald’s create value for the consumer?


• How do they communicate this value?
Successful Relationships (2 of 3)

Value, Satisfaction, and


Retention
• Customer Value
• The individual's perception
• Customer Satisfaction of the performance of the
product or service in relation
• Customer Retention
to his or her expectations.
Successful Relationships (3 of 3)

Value, Satisfaction, • The objective of providing


and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
Satisfaction – They buy more products
– They are less price
• Customer Retention sensitive
– Servicing them is cheaper
– They spread positive
word of mouth
Customer groups based on loyalty
include

• LOYALISTS,

• APOSTLES,

• DEFECTORS,

• TERRORISTS,

• HOSTAGES, AND
• MERCENARIES
Customer Relationships

For Discussion:
• Provide two examples where brands used technology to
engage consumers/enhance customer relationships.
• Provide two examples where technology was used to add
value to the consumer.
Measures of Customer Retention

• Customer valuation : categorizes customers


according to their financial and strategic worth

• Retention rates : examine the percentage of


customers at the beginning of the year who
are still customers by the end of the year

• Analyzing defections : root causes, not mere


symptoms
Profitability-Focused Segmentation

Miles Travelled Annually and Matching Revenues

Airplane’s Class At least At least At least


and Matching 250,000 150,000 100,000
Revenues per Mile Miles miles miles
First Class $ 1,000,000 $ 600,000 $ 400,000
($ 4 per mile) DIAMOND EMERALD EMERALD
Business Class $ 500,000 $ 300,000 $ 200,000
($ 2 per mile) EMERALD SAPPHIRE SAPPHIRE
Premium Economy $ 150,000 $ 90,000 $ 60,000
($ 0.6 per mile) ELITE SELECT SELECT
Economy $ 75,000 $ 45,000 $ 30,000
($ 0.3 per mile) SELECT
Technology and Customer Relationship
Engaging Consumers

▪ P&G
–Shampoo: Scalp Care handbook
–Detergent :-
• White and color fabric care,
•which temperature is best for which fabrics,
•how to handle different kind of stains

▪ Gillettee
–Shaving: Facial care and proper shaving
2 Forms of Engagement

• Emotional Bonds
– Personal commitment and attachment
– Social media attempts to get consumers to engage
emotionally with products and brands
• Transactional Bonds
– Mechanics and structures that facilitate exchanges
between consumers and sellers
– Factors like assortment and transaction ease could
shape the relationship

Social Media & Its importance


Determinants of Site Satisfaction

• Adaptation • Transaction ease


• Interactivity • Engagement
• Nurturing • Loyalty
• Commitment • Inertia
• Network • Trust
• Assortment
Adaptation measures whether purchase recommendations match customer’s
needs; the ability to order tailor-made products; personalized advertisements
and promotions; and whether the consumer feels unique and valued.
Interactivity measures whether the consumer can view merchandise offerings
from different perspectives; use a search tool to locate products; make
comparisons easy; and gain useful information.
Nurturing measures whether the consumer receives reminders about making
purchases; provides relevant information for purchases; acknowledges
appreciation; makes an effort to increase business with the customer; and
cultivates a relationship with the customer.
Commitment measures whether the company delivers goods on time; responds
to complaints; has customer-friendly return policies; and takes good care of
customers.
Network measures whether customers can share experiences about their
product purchases on the merchant’s website; whether the network is useful for
sharing experiences; and whether shoppers benefit from the community of
prospects and customers sponsored by the merchant.
Assortment measures depth and breadth of offerings, or whether the merchant has
a wide assortment/selection.
Transaction ease measures the intuitiveness of navigation; the ability to make a
purchase for the first time without help; and whether the site enables quick
transactions.
Engagement measures whether the site design is attractive and whether shopping is
enjoyable at the site. It also reflects whether the site is inviting and whether the
consumer feels comfortable shopping at the site.
Loyalty measures switching consideration; whether the consumer clicks on
merchant’s site whenever needing to make a purchase; whether the consumer likes
to navigate the site; and whether the site is from the favorite merchant with which
to do business.
Inertia measures whether changing to a new merchant would not be worth the
bother unless the consumer is really dissatisfied; whether the consumer finds it
difficult to stop shopping at the site; and whether the consumer feels that the cost in
time, money, and effort to change merchants are high.
Finally, trust measures whether the consumer feels s/he can count on the merchant
to complete purchase transactions successfully; whether the consumer trusts the
site’s performance; and whether the consumer believes that the merchant is reliable
and honest.
Review Question

• What is the difference between emotional and


transactional bonds?
• Identify and describe four of the eleven determinants of
customer satisfaction with online merchants.
Characterize each selected determinant as primarily
driven by emotion or stemming from the mechanics of the
transaction.
Learning Objective 1.4

1.4 To understand consumer decision-making as the


foundation for this book.
57
Consumer Decision Making (1 of 2)
• Inputs
– Firm marketing efforts
– Sociocultural influences
• Process
– Psychological factors
– Need Recognition, Decision Type, Prepurchase Search,
Evaluation of Alternatives
– Learning
• Outputs
– Purchase
– Post-purchase evaluation
Consumer Decision Making (2 of 2)
Personality
and
Consumer Behavior
Learning Objectives

1. To Understand How Personality Reflects


Consumers’ Inner Differences.
2. To Understand How Freudian, Neo-Freudian,
and Trait Theories Each Explain the Influence
of Personality on Consumers’ Attitudes and
Behavior.
3. To Understand How Personality Reflects
Consumers’ Responses to Product and
Marketing Messages.
Learning Objectives (continued)

4. To Understand How Marketers Seek to Create


Brand Personalities-Like Traits.
5. To Understand How the Products and
Services That Consumers Use Enhance Their
Self-Images.
6. To Understand How Consumers Can Create
Online Identities Reflecting a Particular Set of
Personality Traits.
Personality and
The Nature of Personality
• Scientist Disagreement:
– Heredity and early childhood experiences?
– Social and environmental influences?
– Unified vs. Specific Traits

• Definition: The inner psychological


characteristics that both determine and reflect
how a person responds to his or her
environment
Chapter Five Slide
Personality and
The Nature of Personality
• The Nature of Personality:
– Personality reflects individual differences
• No two individuals are exactly alike
• Personality enables marketers to categorize consumers into
different groups

– Personality is consistent and enduring


– Personality can change

Chapter Five Slide


Discussion Questions

• How would
you describe
your
personality?
• How does it
influence
products
that you
purchase?

Chapter Five Slide


Theories of Personality

• Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
• Neo-Freudian personality theory
– Social relationships are fundamental to the
formation and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits

Chapter Five Slide


Freudian Theory
• Id
– Warehouse of primitive or
instinctual needs for which
individual seeks immediate
satisfaction
• Superego
– Individual’s internal
expression of society’s
moral and ethical codes of
conduct
• Ego
– Individual’s conscious control
that balances the demands of
the id and superego

Chapter Five Slide


Neo-Freudian Personality Theory

• Social relationships are fundamental to personality


• Alfred Adler:
– Style of life
– Feelings of inferiority
• Harry Stack Sullivan
– We establish relationships with others to reduce tensions
• Karen Horney’s three personality groups
– Compliant: move toward others
– Aggressive: move against others
– Detached: move away from others

Chapter Five Slide


Why Is Appealing to an Aggressive Consumer a
Logical Position for This Product?

Chapter Five Slide


Because its Consumer Seeks
to Excel and Achieve Recognition

Chapter Five Slide


Trait Theory

• Focus on measurement of personality in terms


of traits
• Trait - any distinguishing, relatively enduring
way in which one individual differs from
another
• Personality is linked to broad product
categories and NOT specific brands

Chapter Five Slide


Soup and Soup Lover’s Traits
Table 5.2 (excerpt)
• Chicken Noodle Soup Lovers • Vegetable/Minestrone Soup
– Watch a lot of TV Lovers
– Are family oriented – Enjoy the outdoors
– Have a great sense of humor – Usually game for trying new
– Are outgoing and loyal things
– Like daytime talk shows – Spend more money than any
– Most likely to go to church other group dining in fancy
restaurants
• Tomato Soup Lovers – Likely to be physically fit
– Passionate about reading – Gardening is often a favorite
– Love pets hobby
– Like meeting people for coffee
– Aren’t usually the life of the
party

Chapter Five Slide


Personality and Understanding
Consumer Behavior

Consumer Social
Dogmatism
innovativeness character

Optimum
Need for Sensation
stimulation
uniqueness seeking
level

Variety-
novelty
seeking
Chapter Five Slide
Consumer Innovativeness

• Willingness to innovate
• Four Motivational factors:
– Functional Factors- Interest in Performance
– Hedonic Factors-Feeling gratified by using the innovation
– Social Factors-Desire to be recognized by others
– Cognitive Factors-mental Stimulation experienced by using innovation

• Further broken down for hi-tech products


– Global innovativeness
– Domain-specific innovativeness

Chapter Five Slide


Dogmatism

• A personality trait that reflects the degree of


rigidity a person displays toward the
unfamiliar and toward information that is
contrary to his or her own established beliefs

Chapter Five Slide


Conformity versus Individuality

• Ranges on a continuum for inner-directedness


to other-directedness
• Inner-directedness
– rely on own values when evaluating products
– Innovators
• Other-directedness
– look to others
– less likely to be innovators

Chapter Five Slide


Need for Uniqueness

• Consumers who avoid conforming to


expectations or standards of others

Chapter Five Slide


Optimum Stimulation Level

• A personality trait that measures the level or


amount of novelty or complexity that
individuals seek in their personal experiences
• LS=OSL Quite Satisfied
• LS<OSL Bored Vacation wt Thrill & Adventure
• LS>OSL Rest--> Seeks Quiet, Isolated, Relaxing Vacations
• High OSL consumers tend to accept risky and
novel products more readily than low OSL
consumers.
Chapter Five Slide
Sensation Seeking

• The need for varied, novel, and complex


sensations and experience. And the willingness to
take social and physical risks for the sensations.
– E.g. Heavy metal Music,

Chapter Five Slide


Variety-Novelty Seeking
• Measures a consumer’s degree of variety
seeking
1) Exploratory Purchase Behavior : Switching
brands to experience new, different & better
alternatives
2) Vicarious Exploration: Securing information
about new or diff. alternative and the
contemplating/day dreaming about that option
3) Use Innovativeness : Using an already adopted
product in new or novel way. Eg. Washing
Machine and Paints…

Chapter Five Slide


Variety Seeking and Behavior

• VS  Features of Products
• VS v/s Time of the Day
– Greater VS Arousal Low
• Leader’s brand fare better  Arousal Low
• Follower’s Brand do better Arousal is heightened
• VS is more  Purchasing for others…
Cognitive Personality Factors
Need for Visualizers versus
Cognition verbalizers
• Need for cognition (NFC)
– A person’s craving for enjoyment of thinking
– Individual with high NFC more likely to respond to
ads rich in product information
• High NFC Rich in Product info./Description
– Spend more time processing/recalling info
• Low NFC Attracted by back ground /
Peripheral aspect/attractive model/ celebrity
Chapter Five Slide
Cognitive Personality Factors

• Visualizers : Visuals and Pictures


– Object Visualisers :-Encodes and processes the
image as a single perceptual unit
• Artist
– Spatial Visualisers : Processes images piece by
piece
• Scientist

• Verbalizers : Written and Verbal


Chapter Five Slide
To whom this Ad Particularly
Appealing to?

Chapter Five Slide


Visualizers :The Ad Stresses Strong
Visual Dimensions

Chapter Five Slide


To whom this Ad Particularly
Appealing to?

Chapter Five Slide


Verbalizers as It Features a Detailed
Description

Chapter Five Slide


1.Materialism: Characteristics…

Acquire and show Self centered and


off possessions selfish

Materialistic
People

Do not get greater


Seek lifestyle full of
personal satisfaction
possessions
from possessions

Chapter Five Slide


From Consumer Materialism to
Compulsive Consumption
2. Fixated consumption behavior
– Consumers fixated on certain products or
categories of products
– Characteristics
• Passionate interest in a product category
• Willingness to go to great lengths to secure objects
• Dedication of time and money to collecting
• Deeply involved in the process also of acquiring the
product-”hunt”

Chapter Five Slide


From Consumer Materialism to
Compulsive Consumption
3. Compulsive consumption behavior :
Abnormal Behavior and dark side of
consumption.
 Gambling
 Drug Addiction / alcoholism
 Uncontrollable Shopping : Oniomania
• Self Gifting, impulse buying  way to influence
or manage their mood. (Depression
management)
• Women v/s Men
• Younger v/s Older Chapter Five Slide
Consumer Ethnocentrism and
Cosmopolitanism
• Ethnocentric consumers feel it is wrong to
purchase foreign-made products because of the
impact on the economy
• They can be targeted by stressing nationalistic
themes
• A cosmopolitan orientation would consider the
world to be their marketplace and would be
attracted to products from other cultures and
countries.

Chapter Five Slide


Strategies of Managing
Country of origin Effects
Marketing Mix Positive Negative
Product Emphasize “made in Emphasize Brand
India” name
Price Premium Price Low price to attract
value conscious
Place (Channel Exclusive Locations Establish supply
of Distribution) chain partners
Promotion Country Image / Brand Image /
Nation Sponsored Manufacturer
Sponsored
Brand Personality

• Personality-like traits associated with brands


– Cinthol and freshness
– Nike and athlete
– BMW is performance driven
• +ve Brand Personality favorable Attitude 
Brand Preference Higher Purchase
Intentions Brand Loyalty
• Brand personality which is strong and favorable will
strengthen a brand but not necessarily demand a
price premium
Chapter Five Slide
Discussion Questions

• Pick three of your favorite food brands.


• Describe their personality. Do they have a
gender? What personality traits do they
have?

Chapter Five Slide


Product Anthropomorphism &
Brand Personification

• Product Anthropomorphism :Attributing human


characteristics to objects
• ZooZoos (Vodafone)
• FidoDido(7 UP)
– Brand Personification
• Consumer’s perception of brand’s
attributes for a human-like character
Mr. Coffee is seen as dependable, friendly, efficient, intelligent and
smart.

Chapter Five Slide 50


A Brand Personality Framework
Figure 5.12

Chapter Five Slide


Product Personality Issues

• Gender
– Some products perceived as masculine (coffee and
toothpaste) while others as feminine (bath soap
and shampoo)
• Color
– Color combinations in packaging and products
denotes personality

Chapter Five Slide


Self and Self-Image

• Consumers have a
variety of enduring
images of themselves
• These images are
associated with
personality in that
individuals’
consumption relates
to self-image

Chapter Five Slide


One or Multiple Selves

• A single consumer will act differently in


different situations or with different people
• We have a variety of social roles
• Marketers can target products to a particular
“self”

Chapter Five Slide 55


Makeup of the Self-Image

• Contains traits, skills, habits, possessions,


relationships, and way of behavior
• Developed through background, experience,
and interaction with others
• Consumers select products congruent with this
image

Chapter Five Slide 56


Which Consumer
Self-Image Does This Ad Target, and Why?

Chapter Five Slide


Actual self-image because it tells middle-age women
who like their hair long to continue doing so.

Chapter Five Slide


Different Self-Images
Actual Self-Image • How consumers see themselves

• How consumer would like to see


Ideal Self-Image
themselves

Social Self-Image • How consumers feel others see them

Ideal Social • How consumers would like others to


Self-Image see them
Expected • How consumers expect to see
Self-Image themselves in the future
• Traits an individual believes are in her
Ought-to self
duty to possess
Chapter Five Slide
Extended Self

• Possessions can extend self in a number of


ways:
– Actually
– Symbolically
– Conferring status or rank
– Bestowing feelings of immortality

Chapter Five Slide 60


Altering the Self-Image

• Consumers use self-altering products to


express individualism by:
– Creating new self
– Maintaining the existing self
– Extending the self
– Conforming

Chapter Five Slide


Altering the Self
Virtual Personality

• You can be anyone…


– Gender swapping
– Age differences
– Mild-mannered to aggressive

Chapter Five Slide 63


Consumer
Motivation

1
2
Freud’s Theory and an Indian Youth Brand
Reflecting the importance of Personality

Fastrack - The Closet : https://www.youtube.com/watch?v=fmk9D53G6F8

 Fastrack Reflex Activity Tracker - Gear Up


For Some Action : https://www.youtube.com/watch?v=6gMIdvFprF0

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives

1. To Understand the Types of Human Needs and


Motives and the Meaning of Goals.
2. To Understand the Dynamics of Motivation,
Arousal of Needs, Setting of Goals, and
Interrelationship Between Needs and Goals.
3. To Learn About Several Systems of Needs
Developed by Researchers.
4. To Understand How Human Motives Are
Studied and Measured.
Chapter Four Slide 3
Motivation as a Psychological Force

• Motivation is the driving


force within individuals that
impels them to action.
• Needs are the essence of
the marketing concept.
Marketers do not create
needs but can make
consumers aware of needs.
• Needs are circumstances in
which something is
necessary or required some
course of action.
Chapter Four Slide 4
Model of the Motivation Process
Figure 4.2

Chapter Four Slide 5


Types of Needs
• Innate Needs
– Physiological / biogenic / Primary needs : as they
are needed to sustain biological life.
• E.g. Need for Food, Water, Air, Clothing, Shelter and Sex

• Acquired Needs
– (Psychogenic/Secondary) : Learned in response to
our culture or environment.
• E.g. Self Esteem, Prestige, Affection, Power & Learning
• Intrinsic v/s Extrinsic Needs

Chapter Four Slide 6


7
Goals

• The sought-after results of motivated behavior


• Generic goals are general categories of goals
that consumers see as a way to fulfill their
needs
• Product-specific goals are specifically branded
products or services that consumers select as
their goals

Chapter Four Slide 8


How Does this Ad Appeal to
One’s Goals?

Chapter Four Slide 9


It Appeals to Several Physical
Appearance-related goals.

Chapter Four Slide 10


Goals Contd…

• Consumers set goals that satisfy more than


one need.
• People with different needs may seek
fulfillment by selecting the same goal
• People with Same needs may seek fulfillment
via different goals

Chapter Four Slide 11


The Selection of Goals

• The goals selected by an individual depend on


their:
– Personal experiences
– Physical capacity
– Prevailing cultural norms and values
– Goal’s accessibility in the physical and social
environment

Chapter Four Slide 12


Discussion Questions

• What are three generic goals you have set for


yourself in the past year?
• What are three product-specific goals you have set in
the past year?
• In what situations are these two related?
• How were these goals selected? Was it personal
experiences, physical capacity, or prevailing cultural
norms and values?

Chapter Four Slide 13


Needs can have +ve/-ve Direction

+ve outcome
-ve Out come
Need, Want, Desire
Fear, Aversion

14
Motivations and Goals

Positive Negative
• Motivation • Motivation
• A driving force • A driving force away
toward some object from some object or
or condition condition
• Approach Goal • Avoidance
• A positive goal Goal
toward which • A negative goal from
behavior is directed which behavior is
directed away
Chapter Four Slide 15
Needs & Goals are Interdependent

• Neither exist without other


• Needs -Unaware- Goals-Aware

Factors that motivate people to Shop


1. Seeking Specific Goods
2. Recreational Shopping
3. Activity-Specific Shopping
4. Demand Specific Shopping

Chapter Four Slide 16


Rational versus Emotional Motives

• Rationality implies that consumers select


goals based on totally objective criteria, such
as size, weight, price, or miles per gallon
• Emotional motives imply the selection of
goals according to personal or subjective
criteria

Chapter Four Slide 17


Discussion Questions

• What products
might be purchased
using rational and
emotional motives?
• What marketing
strategies are
effective when there
are combined
motives?

Chapter Four Slide 18


The Dynamics of Motivation

• Needs are never fully satisfied


• New needs emerge as old needs are satisfied
• People who achieve their goals set new and higher goals
for themselves
• Success and Failure influences Goals:
– Success in achieving lower level of goals make them confident and
they raise their Level of Aspiration and vise se versa…eg. Dr.
Medical School----Dentist..
– Mkting Application : No Over Claim… Gap Btw Customer
Expectation and Objective Performance,

Chapter Four Slide 19


Substitute Goals

• Are used when a consumer cannot attain a


specific goal he/she anticipates will satisfy a
need
• The substitute goal will dispel tension
• Substitute goals may actually replace the
primary goal over time

Chapter Four Slide 20


Model of the Motivation Process
Figure 4.2

Chapter Four Slide 21


Frustration

• Failure to achieve a goal may result in


frustration.
• Some adapt; others adopt defense
mechanisms to protect their ego.

Chapter Four Slide 22


Defense Mechanisms- Table 4.2 (excerpt)
Construct Items
Aggression In response to frustration, individuals may resort to aggressive behavior
in attempting to protect their self-esteem. The tennis pro
who slams his tennis racket to the ground when disappointed with
his game or the baseball player who physically intimidates an umpire
for his call are examples of such conduct. So are consumer
boycotts of companies or stores.
Rationalization People sometimes resolve frustration by inventing plausible reasons
for being unable to attain their goals (e.g., not having enough
time to practice) or deciding that the goal is not really worth pursuing
(e.g., how important is it to achieve a high bowling score?).
Regression An individual may react to a frustrating situation with childish or
immature behavior. A shopper attending a bargain sale, for example,
may fight over merchandise and even rip a garment that another
shopper will not relinquish rather than allow the other
person to have it.
Withdrawal Frustration may be resolved by simply withdrawing from the situation.
For instance, a person who has difficulty achieving officer
status in an organization may decide he can use his time more
constructively in other activities and simply quit that organization.
Chapter Four Slide 23
Defense Mechanisms

• Aggression
• Rationalization
• Regression
• Withdrawal
• Projection
• Daydreaming
• Identification

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Arousal
of
Motives ???
25
Arousal of Motives / Need

• Physiological arousal- Eg.Drop of Blood Sugar, Stomach


Contraction, Hormones secretion, drop in body temperature
and shivering
• Emotional arousal , Day dreaming results in arousal of
latent needs Eg Young women daydreams of Torid Ramance will spend
time online on single chat room

• Cognitive arousal : -Ad reminds of home and triggers


instant yearning to speak with one’s parents eg. Telecom
campaig
• Environmental arousal: Rich V/s Poor Environ eg.
Television… Chapter Four Slide 26
How Does This Ad
Arouse One’s Needs?

Chapter Four Slide 27


The Ad Is Designed to Arouse One’s Yearning
for an Adventurous Vacation by Appealing to
the Sense of Touch

Chapter Four Slide 28


Types and Systems of Needs

• Henry Murray’s 28 psychogenic needs


• Abraham Maslow’s hierarchy of needs
• A trio of needs

Chapter Four Slide 30


Murray’s List of Psychogenic Needs
Needs Reflecting
Needs Associated Needs Connected
Ambition, Power,
with Inanimate with Human
Accomplishment,
Objects Power
and Prestige
Acquisition Superiority Dominance
Conservancy Achievement Deferrence
Order Recognition Similance
Retention Exhibition Autonomy
Construction Infavoidance Contrariance

Chapter Four Slide 31


Murray’s List of Psychogenic Needs
(continued)
Needs Concerned Needs Concerned
Sado-Masochistic
with Affection with Social
Needs
between People Intercourse

Affiliation
Aggression Cognizance
Rejection
Nurturance
Succorance
Abasement Exposition
Play
Chapter Four Slide 32
Murray’s Psychogenic Needs 33

Table 3.1 Strategic Applications Of Murray’s List


Need Illustrative Characteristics Promotional Applications
Achievement: Do the best and work hard in any Messages that encourage and illustrate
accomplish tasks, succeed, and undertaking. Be able to do things success(e.g., advertising education).
overcome obstacles. better than others.
Exhibition: Tell amusing jokes at parties. Say Messages showing attention from others
shock or thrill others and be the things that others regard as witty and when they notice one’s possessions
center of attention. clever. (e.g.,expensive cars).
Affiliation: Be loyal to and share things with Messages showing people enjoying
spend time, form strong friends. Help friends in trouble. Be themselves in large groups (e.g., vacations,
friendships and attachments confided in by others and told about shopping situations).
with others. their troubles.

Power/Dominance: Seek leadership in groups. Supervise Messages showing actual or symbolic


control, influence, and lead and direct the actions of others. dominance (e.g., being a chief executive;
others. owninga powerful car).
Change: Doing new and different activities, Messages stressing novelty, uniqueness, and
seek new experiences and avoid like eating in new restaurants, going breaking with routines (e.g., adventure
routine. on trips, and avoiding conventional travel and active vacations).
situations.
Order: Planning and organizing the details in Promoting devices that save space and keep
keeping things neat and any undertaking. Setting definite things firmly in place (e.g., dividers and
organized. times for activities. organizers for closets, drawers, and
garages).
Maslow’s Hierarchy of Needs
Figure 4.10
Inwardly Directed Ego Needs
Self acceptance, self-esteem, success,
independence and personal satisfaction.

Outwardly Directed Ego


Needs: Prestige, reputation,
status and recognition from
others.

Chapter Four Slide 34


To Which of Maslow’s
Needs Does This Ad Appeal?

Chapter Four Slide 35


Both Physiological and Social Needs

Chapter Four Slide 36


To Which of Maslow’s
Needs Does This Ad Appeal?

Chapter Four Slide 37


Egoistic Needs

Chapter Four Slide 38


To Which of Maslow’s
Needs Does This Ad Appeal?

Chapter Four Slide 39


???

Chapter Four Slide 40


????

Chapter Four Slide 41


???

Chapter Four Slide 42


Discussion Questions

• What are three types of products related to


more then one level of Maslow’s Hierarchy of
Needs?
• For each type of product, consider two
brands. How do marketers attempt to
differentiate their product from the
competition?

Chapter Four Slide 43


To Which of the Trio
of Needs Does This Ad Appeal?

Chapter Four Slide 47


Affiliation Need

Chapter Four Slide 48


Power And Achievement Needs

Chapter Four Slide 49


Motivational Research

• Term coined in the 1950s


by Dr. Ernest Dichter Clinical
Psychoanalyst joined Advertising agency in US

• Based on premise that


consumers are not always
aware of their motivations
• Figured out Why consumers did
what they did.
• Identifies underlying
feelings, attitudes, and
Chapter Four Slide 50
Examples of Insights

• Cigarettes and life savers – sexual symbolism


• Convertible cars – surrogate mistresses
• Baking cakes – reproductive yearnings
Measurement of Motives

• Researchers rely on a combination of techniques


• Qualitative research is widely used
• Projective techniques are often very successful in identifying
motives.

Chapter Four Slide 52


Qualitative Measures of Motives
Table 4.7 (excerpt)
• This method, including the tool termed
METAPHOR ZMET, was discussed in detail in Chapter 2.
ANALYSIS • DuPont used this method to study women’s
emotions regarding pantyhose.

• This method consists of having customers


tell real-life stories regarding their use of
STORYTELLING the product under study.
• Kimberly-Clark used this method to develop
pull-ups.

WORD ASSOCIATION • In this method, respondents are presented


AND SENTENCE with words, one at a time, and asked to say
COMPLETION the first word that comes to mind.

Chapter Four Slide 53


Projective Techniques
• Projective techniques
• Storytelling
• Sentence Completion
• Thematic Apperception Test
• Picture Drawing
• Photo Sorts

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