Consumer Motivation: Trademarks Used Herein Under License

Consumer
Motivation
COPYRIGHT 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are
trademarks used herein under license.
OUTLINE (CONT)
1. Definition
2. Types of Consumer Needs
3. Motivational Conflict and Need Priorities
4. Challenge of Understanding Consumer Motivation
Motivation is not obvious
Research behavior and motivation
Close reason
Unconscious motivation
Motivation is changeable
5. Motivating Consumers
Motivating with money
Provide other incentives
Implement a loyalty program
Enhance Perceived Risk
Arouse Consumers Curiosity
OUTLINE
1. Definition
2. Types of Consumer Needs
Physiologinal Needs
Safety and Health Needs
Needs for Love and Companionships
Need for Financial Resources and Security
Social Image Needs
Need for Pleasure
Need to Possess
Need to Give
Need for Information
Need for Variety
3. Motivational Conflict and Need Priorities
Prioritizing Needs
Maslows Hierarchy
Consumers different priorities
Companies use benefit segmentation
Dividing consumers into market segmentation
Consumer Motivation
Represents the drive to satisfy
both physiological and
psychological needs through
product purchase and
consumption
Gives insights into why people
buy certain products
Stems from consumer needs:
industries have been built around
basic human needs
Types of Consumer Needs
Physiological Needs
Fundamental human needs,
including food, water, and sleep
Safety and Health Needs
1. Threats to our safety and health
motivate purchases for personal security
and protection
2. Protecting our personal information
and computers represents new types of
safety needs
Businesses provide a variety of products
and services to appeal to safety and
health conscious consumers
Need for Love and Companionship
Humans are social creatures
who need to experience and
express love and
companionship
Need for Love and Companionship
Services and products help
individuals find and attract
others
Products are often used as
symbols of love and caring
Need for Financial Resources and
Security
A need that includes others
important to the individual
Social Image Needs
Conspicuous consumption:
purchases motivated to some
extent by the desire to show other
people how successful they are
Companies reinforce the notion

that products enable users to
communicate their social image
Need for Pleasure
Products, services, and
consumption activities provide
fun and excitement
Need to Possess
Consumers often acquire products
simply because of their need to own
such products e.g., collectors
Need to Possess
Consumers often acquire products
simply because of their need to own
such products e.g., collectors
Plays a role in impulse buying:

where consumers unexpectedly
experience a sudden and powerful
urge to buy something immediately
Need to Give
Give something back to others
or reward ourselves
Self-gifts let us motivate, reward,
and console ourselves
Need for Information
One reason we read or watch TV
Fuels Internet usage
Plays an important role in
persuasionif an ad appears
when consumers need
information, they are more likely
to pay attention than when they
dont need the information
Need for Variety
Marketers may introduce
different versions of original
brand
Variety may become focus of
product positioning
Motivational Conflict and
Need Priorities
Satisfying a need often comes at the
expense of another needthese
trade-offs cause motivational
conflict
Types of Motivational Conflict
Approach-approach: deciding between

two or more desirable options
Avoidance-avoidance: deciding between
two or more undesirable options
Approach-avoidance: behavior has both
positive and negative consequences
Need Priorities
Resolving motivational conflicts
requires prioritizing needs
Maslows hierarchy
Some needs take precedence over
other needsphysiological needs take
top priority
Differences in the importance attached
to various needs affects how
consumers evaluate products
Need Priorities
Because of consumers different
motivational priorities, companies
use benefit segmentation: dividing
consumers into different market
segments based on benefits they
seek from purchase and
consumption
Maslows Hierarchy of Needs
Motivational Intensity
Motivational intensity: how strongly
consumers are motivated to satisfy
a particular need
Depends on needs importance
Motivational Intensity
Motivational intensity: how strongly
consumers are motivated to satisfy
a particular need
Depends on needs importance
Involvement: degree to which an
object or behavior is personally
relevant
Motivational intensity and involve-
ment determine amount of effort
consumers exert in satisfying needs
The Challenge of Understanding
Consumer Motivation
Reasons underlying consumer
motivation are not always obvious
Research is necessary to discover real
motivations behind behaviors
People dont always want to disclose
real reasons for their actions
People dont always know why they do
what they dounconscious motivation
Motivations change over time
Motivating Consumers
Motivating with Money
Price cuts, specials, rebates, and
coupons motivate purchase
Resulting sales may increase, but
profits may not
Attracts consumers less likely to
repeat
Price reductions may increase price
sensitivity
Provide Other Incentives
Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
Provide Other Incentives
Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
There are limitations and
shortcomings for this strategy in
addition to the products offered as
a premium being valued less
(value-discounting hypothesis)
Implement a Loyalty Program
Motivate repeat buying by providing
rewards to customers based on how
much business they do with the
company
Tracks consumer purchases and
provides estimates of Customer
Lifetime Value
Participation in Loyalty Programs
Enhance Perceived Risk
Perceived risk: consumers
apprehensions about the
consequences of their behavior
(buying and consuming the product)
Greater perceived risk increases
search
Educating consumers about risks may
motivate them to make more informed
choices that reduce exposure to risk
Arouse Consumers Curiosity
For new products, educating
potential customers is crucial
Curiosity often leads to an enhanced
need for information
May advertise a benefit that is not
normally associated with the product

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Consumer

Companies reinforce the notion

Plays a role in impulse buying:

Approach-approach: deciding between

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