CONSUMER Behaviour
CONSUMER Behaviour
CONSUMER Behaviour
Introduction
• The foundation of marketing is identifying and satisfying needs.
• Marketers do not create needs, although in many instances they strive to make
consumers more keenly aware of unfelt or dormant needs.
• Savvy companies define their business in terms of the consumer needs they
satisfy rather than the products they produce and sell.
Introduction Cont`d
• Because consumers’ basic needs do not change, but the products that satisfy them do,
a corporate focus on developing products that will satisfy consumers’ needs ensures
that the company stays in the forefront of the search for new and effective solutions.
• By doing so, such companies are likely to survive and grow despite strong
competition or adverse economic conditions.
• In contrast, companies that define themselves in terms of the products they make may
suffer or even go out of business when their products are replaced by competitive
offerings that better satisfy consumers’ needs.
Definition of Motivation
• Motivation – the driving force that impels people to act. It represents the reasons
one has for acting or behaving in a particular way.
• It occurs when a need is aroused that the consumer wishes to satisfy. The need
creates a state of tension that drives the consumer to attempt to reduce or
eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional
or practical benefit) or it may be hedonic (i.e., an experiential need, involving
emotional responses or fantasies).
Motivation Process
Personality,
Perception,
Learning
Attitude
Unfulfilled
Goal or Need
Wants, Needs & Tension Drive Behaviour Fulfillment
Desires
Tension
Reduction
Motivation Process
Needs – the basic human requirements such as for air, food, water, clothing, and
shelter. There are two types of human needs:
• Physiological needs are innate (biogenic, primary) and fulfilling them sustains
biological existence. They include the need for food, water, air, protection of the
body from the outside environment and sex.
• Psychological needs are learned from our parents, social environment, and
interactions with others. Among many others, they include the needs for self-
esteem, prestige, affection, power, and achievement.
Motivation Process
• Both types of needs affect our buying decisions. For example, all
individuals need shelter and therefore buy homes. However, the kind of
homes they buy is the result of psychological, learned needs
Motivation Process Cont`d
Goals – are the sought-after results of motivated behaviour, and all human
behaviour is goal-oriented.
Types of Goals
• Generic goals are outcomes that consumers seek in order to satisfy physiological
and psychological needs.
• Product-specific goals are outcomes that consumers seek by using a given
product or service.
Motivation Process Cont`d
Need Arousal -
• Most of an individual’s needs are dormant much of the time. The arousal of any
need at a specific moment in time may be caused by biological stimuli, emotional
or cognitive processes, or stimuli in the outside environment. A drop in blood
sugar level or stomach contractions will trigger awareness of a hunger need.
• Most of these physiological cues are involuntary, but they arouse needs that cause
uncomfortable tensions until they are satisfied. Physical changes in the body
caused by biological cues trigger need arousal.
Motivation Process Cont`d
• Motivation can be described in terms of its strength and its direction, and
can also be in conflict despite having a direction and strength.
• Because a purchase decision can involve more than one source of
motivation, consumers often find themselves in situations in which
different motives, both positive and negative, conflict with one another.
Motivational Direction - Motivation is goal-oriented in that it drives us to satisfy a specific
need.
• Most goals can be reached by a number of routes, and the objective of a company is to
convince consumers that the alternative it offers provides the best chance to attain the goal.
• For example, a consumer who decides that she needs a pair of jeans to help her reach her
goal of being accepted by others can choose among Levi’s, Wranglers and many other
alternatives, each of which promises to deliver certain benefits.
Motivational Strength – The degree to which a person is willing to expend
energy to reach one goal as opposed to another reflects his or her underlying
motivation to attain that goal.
• Psychologists share the basic idea that people have some finite amount of
energy that are directed towards certain goals.
Motivational Conflicts
• For instance, the option of either spending more money on an old car or
buying a new one. To deal with this situation, some car dealers offer you the
option to trade in your old car in part payment for a brand new one.
Typology of Needs
• Needs can take many different forms depending on whether they are natural or
artificial or learned.
• Some needs are biogenic; they arise from physiological states of tension such
as hunger, thirst, or discomfort.
• Other needs are psychogenic; they arise from psychological states of tension
such as the need for recognition, esteem, or belonging.
• Besides, some needs are utilitarian which emphasise the objective, tangible
attributes of products, such as the amount of fat, calories and protein in kebab;
or the durability of a product.
• Others are hedonic which are subjective and experiential, i.e., a search for a
product that meets our needs for excitement, self-confidence, or fantasy –
perhaps to escape the routine aspects of life.
Maslow’s Theory of Motivational Needs
Physiological Needs – are the first and most basic level of human needs.
• These primary needs, which are required to sustain biological life, include
food, water, air, shelter, clothing, and sex – all biogenic needs.
• According to Maslow, physiological needs are dominant when they are
chronically unsatisfied: for an extremely hungry man, no other interest exists
but food, e.g., he dreams, remembers, thinks, perceives, and wants only food.
Maslow’s Theory of Motivational Needs
Safety and Security Needs – are concerned not only with physical safety, but
also with order, stability, routine, familiarity, and control over one’s life and
environment. For example, health and the availability of health care are
important safety concerns. Savings accounts, insurance policies, education, and
vocational training are all means by which individuals satisfy the need for
security.
Social Needs – consists of love, affection, belonging, acceptance and
others.
Maslow’s Theory of Motivational Needs
Egoistic Needs – which can take either an inward or an outward orientation become
operational.
• Inwardly directed ego needs reflect an individual’s need for self-acceptance, self-
esteem, success, independence, and personal satisfaction.
• Outwardly directed ego needs include the needs for prestige, reputation, status, and
recognition from others.
Need for Self-Actualization – an individual’s desire to fulfill his or
her potential – to become everything that he or she is capable of
becoming.
Marketing Applications of Maslow’s Theory
Low-involvement purchases are not very important, hold little relevance, have
little perceived risk, and provoke limited information processing.
Forms of Involvement
• Involvement can be cognitive, as when a consumer who loves the game of cricket is
motivated to learn all he can about the latest rules, fixtures, results and even what is
happening in the player transfer market.
• It can also be emotional, as when the thought of a new travel deal gives a travel
enthusiast a sense of excitement. Indeed, the consensus is that there are actually several
broad types of involvement related to the product, the message, or the perceiver.
Forms of Involvement
Message-response Involvement
• Devotion to creating a consumer-generated commercial is an extreme example
of message– response involvement (also called advertising involvement), which
refers to the consumer’s interest in processing marketing communications.
• Vigilante marketing, freelancers and fans film their own commercials for
favourite products and post them on Web sites or other social networking sites.
Forms of Involvement