Consumer Psychology

BUS 318 Module

Semester A
2023

Session 2:
Understanding consumers
 Outline for today:
• Consumer Behaviour
– Test your knowledge (Chapter 1)
– Need Recognition, Goals Setting, Motivation (Chapter 2)
– Ability, & Opportunity Consumer Psychology (Chapter 2)
 Consumer Psychology Chapter 1:
• Test your knowledge:
All of the following are central domains of consumer behavior except…
a. the psychological core
b. the process of making decisions
c. the consumer's culture
d. consumer behavior outcomes
e. all of the above.
 Consumer Psychology Chapter 1:
• Test your knowledge:
All of the following are central domains of consumer behavior except…
a. the psychological core
b. the process of making decisions
c. the consumer's culture
d. consumer behavior outcomes
e. all of the above.
 Consumer Psychology Chapter 2:
• Today we will understand WHY people consume stuff

• Motivation
• Needs
• Goals
• Ability
• Opportunity
 Motivation
• Central questions for motivational psychology:
– What will you do?
– Why will you do it?
– For how long will you do it?
– How intensely will you do it?
 Motivation

What does it mean to be motivated?

 Motivation

What does it mean to be motivated?

Hollywood’s answer:
 Motivation
Scientific answer:

“. . . an inner state of arousal that [creates] . . . energy to

achiev[e] a goal.”

• Consumer motivation: “The needs, wants, drives, & desires of an

individual that lead him or her toward the purchase of products or ideas.
The motivations may be physiologically, psychologically, or
environmentally driven.” (AMA)
 Motivation
• Consumer Motivation at work

• Watch the following two (slightly biased...) commercials and answer

these questions:

1. What motivation is „created“?

2. How is this done?

• Asics running shoes: https://www.youtube.com/watch?v=D-ie_aFsfb8

• Dove shampoo for men: https://www.youtube.com/watch?v=yclM-IPP52w
 Motivation
• Consumer Motivation at work

• Asics running shoes:

– Outrun/survive your competiton = be faster, better, smarter...

• Dove shampoo for men:

– Social motives... Do not stand out of the crowd; group belonging
– Gender motives... Do not look like a women if you are a man... 
 Motivation
How and when motivation leads to consumption: The case of
friction
Friction is caused by difficulties to acquire an offering (e.g. remembering an URL)

Consumers vary Less friction =

in how motivated More conversions
they are…
 Motivation
An example (AMAZON) of how to motivate and reduce friction:

Inclu Includes free shipping

d es g
am e
s

Inclu
d es r
ating
s

Includes controller
 Motivation, Needs & Goals
Some Basic Terminology:
• Motivation = Processes that cause people to behave the
way they do (occurs when a need is aroused and the
individual wants to satisfy it)
• Need = a tention that must be fulfilled. Tension is the
difference between the person‘s present state and some
ideal state (leads to goal-directed behaviour)
• The forces that drive us to buy/use products:
– Goal = consumer‘s desired end state
– Drive = degree of consumer arousal
– Want (Desire) = manifestation of consumer need.
 Motivation, Needs & Goals
Wants are things that people like to have, such as:
 Motivation, Needs & Goals
Wants are things that people like to have, such as:

Needs are things people must have to live, such as:

Needs ≠ Wants
(e.g., 2 hungry people may display
different wants: burger vs. salad)
 Motivation, Needs & Goals
Maslow‘s Hierarchy of Needs

Adults

Teenagers

Infants
 Motivation, Needs & Goals
Examples of Needs and marketing slogans
• Physiological: painkillers
– Tylenol, Aspirin & Co

• Safety: pension, insurance, alarm systems

– Lloyd’s Life Insurance: “Cash if you die. Cash if you don’t.”

• Belonging (social): Clothing, party, communication

– Nokia “Connecting People”
– Pepsi “You’re in the Pepsi generation”
 Motivation, Needs & Goals
Examples of Needs and marketing slogans

• Esteem (ego): expensive cars, luxury goods

– Jaguar: „370 horse power leaves people no choice but to talk behind your
back“

• Self-actualization: education, travel, cultural experiences

– Windows „your potential, our passion“
– Adidas „Impossible is nothing“
– Nike „Just do it“
 Motivation, Needs & Goals
Limitations of Maslow‘s Theory:
• Certain needs can be placed in different areas
– (e.g., drinking – physiological and social)

• Intensity of needs are culture-bound

• Motivations can be driven by societal needs

– (e.g., going green, environmentalism, paying taxes)

• Each need does not have to be fully satisfied to move to the next

• Hidden motives – desires might be surface indicators of more basic

needs
– (e.g., desire for ice cream indirect expression of need for love…?)
 Motivation, Needs & Goals
Consumers buy benefits, not things:

It‘s not how you really are, but how the advertisement suggest you might
become. But does marketing sometimes promise the underliverable,
leading to consumer discontent?
 Motivation, Needs & Goals
Consumers buy benefits, not things:

It‘s not how you really are, but how the advertisement suggest you might
become. But does marketing sometimes promise the underliverable,
leading to consumer discontent?
 Motivation, Needs & Goals
Goals...

• are more concrete than needs BUT can also be abstract (e.g., I need
to study to be a good student)

• provide direction, mobilize, and sustain behaviour

• vary in effort.
 Motivation, Needs & Goals
Goals...

• regulate how consumers feel & what they do.

• can be promotion-focused or prevention-focused

– Positive/promotion-focused goals: consumers are motivated to approach the

goal and will seek out products that will be instrumental in attaining it.

– Negative/prevention-focused goals: consumers are motivated to avoid

negative outcomes, purchases or consumption activities.
 Motivation, Needs & Goals
Goals

• Approach vs. Avoidance example from class:

– Which of those reasons do explain why you study?

• Get a good mark?
• Be better than the others?
• Avoid getting a bad mark?
• Not be worse than the others?
 Motivation, Needs & Goals
Goals

• Approach vs. Avoidance example from class:

– Which of those reasons do explain why you study?

• Get a good mark?
Approach
• Be better than the others?
• Avoid getting a bad mark?
• Avoidance
Not be worse than the others?
 Motivation, Needs & Goals
The use of goals in advertising
 Motivation & Risk
Motivation Killer Perceived Risk…
• Perceived risk = “…the extent to which the consumer is
uncertain about the personal consequences of buying,
using, or disposing of an offering.”
 Motivation & Risk
Types of perceived risk: Circumstances causing
increased perceived risk:

• Performance • Lack of information

• Financial • Newness
• Physical (Safety) • High price
• Social • Complex technology
• Psychological • Brand differentiation
• Time (+ too many brands?)
 Motivation
The role of Ability & Opportunity in Motivation

The ability to consume The opportunity to consume

depends on: depends on:

• Financial ability • Time

• Cognitive ability
• Emotional ability
• Physical ability
• Social and Cultural ability
• Education and age
• Distraction
• Amount of Information
• Complexity of information
• Repetition of information
• Control of information.
 Motivation
Enhancing Ability & Opportunity for information
processing
• Repeat communications
• Simplify
• Reduce distractions/time pressure
• Reduce purchasing/using/learning time
• Provide information.
Any questions?
See you all next week!