Customer BehaviorCustomer Behavior

Module Six

Customer MotivationCustomer MotivationNeeds, Emotions & Needs, Emotions &

PsychographicsPsychographics

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Motivation

Motivation is what moves people – the

driving force for all human behavior. More

formally, it is defined as “The state of drive

or arousal that impels behavior toward a

goal – object.

motivation has two components:

– Drive or arousal

– Goal – object

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A drive is an internal state of tension that produces

actions purported to reduce that tension.

Arousal or drive provides the energy to act

A goal object is something in the external world whose

acquisition will reduce the tension.

goal object provides the direction for one to channel that

energy.

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The Process of Motivation

Drive/arousal

Cognitive

Autonomic (physiological)Emotive

Identification of goal-directed

behaviors

Experience of new stateSatisfaction

Outcome

Behavior

Approach or avoidance

Figure 1 A model of the Motivation Process

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Approach Avoidance Models

Approach motivationApproach motivation is the desire to attain a goal – objects (i.e.

objects that attract us) are sought or even longed for. For example,

most people seek vacations and good food. Their depravation

creates unhappiness.

Avoidance motivationAvoidance motivation is the desire to protect oneself from an object.

Avoidance goal objects might include traffic tickets and the measles.

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Facets of Motivation

Needs

Emotions,

Psychographics

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Customer Needs

The concept of needs and

wants is closely aligned to

the concept of motivation

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Maslow’s Hierarchy of Needs

Human needs and wants are arranged in a hierarchy.

hierarchy of needs consists of (from lowest to highest):

Figure 2 Maslow's Need Hierarchy

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Needs Identified by Marketing Scholars

Geraldine Fennel identified consumer motives for product

use based on use – situation-for example, aversive (to avert

an adverse situation) or positive (to gain a reward) product

use situation.

Consumer researcher Morris Holbrook has discussed the

hedonic (i.e. pleasure seeking) consumption motive,

distinguishing it from the more utilitarian consumption.

marketing professor Olli T. Ahtola has described utilitarian

and hedonic consumer attitudes toward products

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Marketing scholar J.N Sheth has proposed that individual choice behavior stems five

needs:

1. Functional – A product or service satisfies its physical or functional

purpose (for example: soaps for cleaning and medicines fro alleviating physical

ailments).

2. Social – A product or service satisfies the social need through its

associations with selected demographic, socioeconomic, or cultural –

ethnic segments of society (for example, wearing a polo brand of shirt to identify

with upper – income, successful people)

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Emotional – the product or service satisfies this need by

creating the appropriate feelings and emotions, such as joy,

love respect, a person experiences upon receiving a gift.

Epistemic – the product or service satisfies the human need to

know or learn something new: for example, buying and

reading a newspaper, watching TV news program, or

purchasing an encyclopedia, or books on history, science and

commerce.

Situational – Certain products or services satisfy needs that

are situational or contingent upon the time and place: for

example, an emergency car repair on an out-of town trip.

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A list of seven consumer need by Janice Hanna

1. Physical safety The need to consume products so as to avoid harm or danger in their use, and to preserve clean air and water in the environment.

2. material securityThe need to consume an adequate supply of material possessions

3. Material comfort The need to consume a large and / or luxurious supply of material possessions

4. Acceptance by others The need to consume products in order to be associated with significant other or a special reference group

5. Recognition from others The need to consume products in order to be acknowledged by others as having gained a high status in his or her community

6. Influence over others The need to feel one’s impact on others consumption decisions

7. Personal growth The need to consume products in order to be or become one’s own unique self

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Customer Emotions

Emotions lace our lives and guide everyday actions.

Although the experience of emotion, it is not easy to

define. The reason is that emotion is a complex set of

processes, occurring concurrently in multiple systems of

humans (i.e. both in the mind and in the body). Emotions

are Consciousness of the occurrence of some physiological

arousal followed by a behavioral response along with the

appraised meaning of both; this definition implies that

emotions have three components:

Physiological, behavioral and cognitive.

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A Model of Emotion

the experience of emotion depends on two factors,

autonomic arousal and its cognitive interpretation, or

meaning analysis.

Marketers can adapt or respond to customer emotions by:

– Designing the stimulus

– Aiding the meaning appraisals

AutonomicArousal

MeaningAnalysis

FeelingExperience

BehavioralResponse

FurtherAutonomicArousalStimulus

Figure 3 A Model of the Emotional Process

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The first intervention takes the form of making product or

service designs to fit appropriate consumption emotions.

The second takes the form of communication, such as in

attaching symbolism to products / services in advertising,

or explaining certain aspects of the market offering or

certain deviations from the expected market place events

or outcomes.

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Types of Emotions

Fear – ranging from timidity to terror. An individual customer might

experience this if, when driving on the expressway. A business

customer might experience fear upon learning that top management

is looking into the problems experienced with the lower – cost

computer network he or she was responsible for buying.

Anger – ranging from annoyance to rage. For a household customer

at the desk of a car rental agency, anger might result when the

agency employee explains that the car the customer reserved is not

available. A business customer might become angry upon realizing

that he company’s insurance agent sold the company a policy for

more coverage than necessary.

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Joy – ranging from serenity to ecstasy. An individual customer

might experience joy in an auto dealership, when the

customer spots a rare model he or she had been looking for. A

business customer might experience joy when the company’s

advertising agency delivers an awesome TV commercial.

Sadness – ranging from pensiveness to grief. For household

customer, sadness might result from calling the airline for a

last – minute reservation, only to be informed that the last

seat was just sold. For a business customer, a cause of

sadness might be the news that a favorite supplier has gone

out of business.

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Acceptance – ranging from tolerance to adoration. For a

household customer, acceptance might involve feelings about

a favorite restaurant. For a business customer, the feeling

might be preference for working with a particular salesperson.

Disgust – ranging from boredom to loathing. A household

customer might feel disgust at finding an insect in his or her

cola. A business customer might be disgusted to learn that no

insurance firm covers the risk of loss due to an act of war

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Anticipation – ranging from mindfulness to vigilance. For a household

customer, expectancy might include the wait for the announcement of

the winning lottery number. For a business customer, it might include

waiting for the results of a marketing research effort.

Surprise – ranging from uncertainty to amazement. A household

customer might feel surprise when his or her waiter announces that

desert will be on the house. For a business customer, surprise might be

the response to a call from the company's media buying agency,

saying that a long-sought television spot on the final championship

game has become available.

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Psychographics

Psychographics are characteristics of individuals that

describe them in terms of their Psychological and

behavioral makeup – how people occupy themselves

(behavior) and what psychological factors underlie

that activity pattern, they are manifestation of an

individual‘s underlying motivations.

Psychographics have three components: values,

self – concept, and lifestyle.

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Values

Psychologist Milton Rokeach has identified two groups of these: terminal and instrumental

THE ROKEACH VALUE SURVEY INSTRUMENT

Terminal values Instrumental values

A comfortable life (a prosperous life) Ambitious (hard- working- aspiring)

An existing life (a stimulating, active life) Broad – minded (open- minded)

A world at peace (free of war and conflict) Capable (competent – effective)

Equality (brotherhood, equal opportunity for all)

Cheerful (lighthearted, joyful)

Freedom (independence and free choice) Clean (neat, tidy)

Happiness (contentedness) Courageous (standing up for your beliefs)

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National security (protection from attack)

Forgiving (willing to pardon others)

Pleasure (an enjoyable life) Helpful (working for the welfare of others)

Salvation (saved, external life) Honest (sincere, truthful)

Social recognition (respect and admiration)

Imaginative (daring, creative

True friendship (close companionship)

Independent (self reliant, self – sufficient)

Wisdom (a mature understanding of life)

Intellectual (intelligent, reflective)

A world of beauty (beauty of nature and the arts)

Logical (consistent, rational)

Family security (taking care of loved ones)

Loving (affectionate, tender)

Self respect (self esteem) Polite (courteous, well mannered)

A sense of accomplishment (lasting contribution)

Responsible (dependable, reliable)

Inner harmony (freedom from inner conflict)

Self – controlled (restrained, self disciplined)

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Consumer researcher Lynn Kahle and his associates developed

a list of values (LOV), consisting of nine terminal values:

1. Self – respect

2. Self – fulfillment

3. Security

4. Sense of belonging

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5. Excitement

6. Sense of accomplishment

7. Fun and enjoyment

8. Being well respected

9. Warm relationships with others

This list of values corresponds well to the needs in

Maslow’s hierarchy, except that Maslow’s includes

physiological needs, and LOV adds values of fun and

excitement

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Linking Product Attributes to Customer Values

This linking is accomplished by drawing “means-end chain". Means–end chains are simply linkages between the products physical features and customers' fundamental needs and values. They are identified by a research technique called laddering, in which potential customers are asked repeatedly in iterative sequence

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Self-Concept

Everyone has a self-image ,This is called self-concept

The self-concepts influence a person’s consumption deeply, for

people live their self-concepts in large measure by what they

consume.

Marketers can apply the principle of self concept by obtaining a self

concept profile of customers in terms of selected personality traits,

then obtaining the consumer’s perceptions of a brand on the same

traits.

Businesses too have a self-concept, some think of themselves as a

company at the forefront of technology: others view their essence to

be in communications – wherever and in whatever form it may exist:

still others define their essence as innovation.

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A SCALE TO MEASURE SELF-IMAGE AND PRODUCT IMAGE

1- rugged 123456Delicate

2- Exciting 123456Calm

3- uncomfortable 123456Comfortable

4- Dominating 123456Submissive

5- thrifty123456Indulgent

6- pleasant 123456Unpleasant

7-Contemporary 123456Uncontemporary

8- organized 123456Unorganized

9- Rational 123456Emotional

10- youthful 123456Mature

11- Formal 123456Informal

12- Orthodox 123456Liberal

13- Complex 123456Simple

14- Colorless 123456Colorful

15-Modest 123456Vain

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Self-Concept as Users, Payers, and Buyers

a user could have the self – concept of a very discerning

connoisseur user, or a very involved (or alternatively, very

detached) user. The payer could have the self- concept of being

thrifty, financially prudent, or “money is no object to me” Finally

the buyer could have the self concept of being a convenience

seeker or service seeker or being very time conscious. They could

take shopping as a chore or a heroic activity where they have to

battle a proliferation of brands all clamoring for their attention,

and they have to triumph by making a wise purchase decision.

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Lifestyle

Lifestyles are determined by a) a customer's

personal characteristics, namely, genetics,

race, gender, age, and personality; b) his or

her personal context – namely, culture,

institutions and reference groups, and

personal worth; and c) needs and emotions.

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Compulsive Buying and Consuming

The psychographic profile of some

customers includes behavior we call

compulsive buying and consuming.

These two categories of behavior are

distinct but related.

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Compulsive Buying

Although some compulsive buying is harmless, when done in

excess, it becomes positively harmful. The example of a

benign compulsive buyer is someone who is always buying

things whenever they are on sale, accumulating them for

future use. Such a benign compulsive buyer is benign

because he or she limits the purchase to items he or she does

need and is generally very deliberative as to the "value" of

the purchase, buying it only if the item represents a good

bargain or a rare find; the compulsiveness resides in

constantly looking for opportunistic merchandise.

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Consumer researchers have defined the negative compulsive behavior

as "chronic repetitive purchasing that becomes a primary response to

negative events or feelings". This description implies that compulsive

buyers have been found to differ from other customers in a number of

respects. Compared with others, compulsive buyers have a lower self-

esteem, are more depressed, show a greater tendency to fantasize,

experience greater "emotional lift" at the time of purchase,

experience remorse in the post-purchase phase; and accumulate a

much higher debt. Moreover, research has found that compulsive

buying is motivated less by a desire to possess things, and more as a

means of maintaining self-esteem.

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Compulsive Consumption

In the consumer research literature, three

characteristics of compulsive consumption have

been reported. Compulsive consumers

experience a drive or urge to engage in a

behavior. A number of behaviors are examples of

compulsive consumption: eating disorder,

compulsive gambling, and compulsive exercising.

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The Motivational Process and the Three Customer Roles

User Payer Buyer

needs One or more needsconstitute the

primarypurpose of product or

service usage.

Fear of being ripped off (security,

esteem)Donors to worthy cause

(esteem)Payers for gifts (esteem,

socialneeds).

Personal safety in shopping areas.

Seek social interaction withsalespersons and serviceproviders.Need to protect and look toenhancing self – esteem in

marketplace experiences.

emotions Emotional value fromproducts and

services.

Emergency expenses andinvoluntary expenses causenegative emotions.Debt causes grief to many

payers.Spending on self and loved

onescauses positive emotions.

Shopping activity is sometimes

enjoyable, and, at other times

boring.

Finding a deal gives a thrill.

psychographic

Users seek and use many

products and services to

live their lifestyles, to fit

in with their psychographics.

Being a spend thrift or a bigspender, being a credit card

user ,accumulating debt or eager

to staydebt-free are

psychographics

Comparison shoppers, "shop till

you drop", shoppers at late night,

"shopper types"