Consumer motivationBy group 1

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Motivation is the driving force within individuals that implies them to action…….

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TYPES OF MOTIVATIONPositive MotivationNegative MotivationExtrinsic MotivationIntrinsic Motivation

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Previous learning

Unfulfilled Needs,Wants and Desires

Tension Drive

BehaviourGoal or NeedFulfillment

CognitiveProcesses

TensionReduction

Motivation process

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

Motivation as a Psychological Force• Motivation is produced by a state of tension, by having a

need which is unfulfilled. Consumers want to fulfill these needs and reduce the state of tension. Eg. Need for food

• Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needsEg. Need for a pair of jeans

GoalsThe 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

Rational vs. 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

Arousal of MotivesPhysiological arousal (they get hungry)

Emotional arousal (frustrated)

Cognitive arousal (they read an ad that made them think about their needs)

Environmental arousal (the weather becomes cold)

Arousal of MotivesPhysiological arousal (they get hungry)

Emotional arousal (frustrated)

Cognitive arousal (they read an ad that made them think about their needs)

Environmental arousal (the weather becomes cold)

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 Needs

•Physiological (or biogenic) needs that are considered primary needs or motives

Innate Needs

•Learned in response to our culture or environment. Are generally psychological and considered secondary needs

Acquired Needs

Types of Needs• Safety and Health Needs

Threats to our safety and health motivate purchases for personal security and protection

• Need for Love and CompanionshipServices and products help individuals find and attract othersProducts are often used as symbols of love and caring

• Need for Financial Resources

• Social Image NeedsConspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they areCompanies reinforce the notion that products enable users to communicate their social image

• Need for PleasureProducts, services, and consumption activities provide fun and excitement

• Need to PossessConsumers often acquire products simply because of their need to own such products— e.g., collectorsPlays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately

• Need to GiveGive something back to others or reward ourselves. Self-gifts let us motivate, reward, and console ourselves

• Need for InformationPlays an important role in persuasion —if an ad appears when consumers need information, they are more likely to pay attention than when they don’t need the informationOne reason we read or watch TVFuels Internet usage

• Need for VarietyMarketers may introduce different versions of original brandVariety may become focus of product positioning

Types of Needs

A Trio of NeedsPower (Ego needs)

• Individual’s desire to control environment

Affiliation (Social needs)

• Need for friendship, acceptance, and belonging

Achievement

• Need for personal accomplishment• Closely related to egoistic and self-actualization needs

Motivational Conflict and Need Priorities• Resolving motivational conflicts requires prioritizing needs

• Maslow’s hierarchySome needs take precedence over other needs—physiological needs take top priorityDifferences in the importance attached to various needs affects how consumers evaluate productsBecause of consumers’ different motivational priorities, companies use benefit segmentation: dividing consumers into different market segments based on benefits they seek from purchase and consumption

The Challenge of Understanding Consumer Motivation

Reasons underlying consumer motivation are not always

“obvious”

Research is necessary to discover real motivations behind behaviors

People don’t always want to disclose real reasons for their actions

People don’t always know why they do what they do —unconscious motivation

Motivations change over time

Motivating ConsumersMotivating 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

Motivating ConsumersProvide Other IncentivesPremiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase

Motivating ConsumersProvide 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)

Motivating ConsumersImplement 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

Motivating ConsumersEnhance 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

Motivating ConsumersProvoke 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