Consumer Behaviour

Cultural Diversity
INDIA - States & UT
Cultures and Sub-cultures
Food,
cuisine,
Languages
practices,
traditions,
Beliefs & myths,
consumption,
Religion(within), castes,
professions,
regions etc.

Cultural Diversity
Hamlets diversity
Purchasing Power
Rural & urban,
developing and developed.

Niche Market for different products.

Cultural Diversity
Culture Influences consumer preferences :
Kelloggs : when introduced cereal breakfast ( USP
Crispy), consumers were not in habit of using cold
milk in breakfast. culture

Cultural Diversity
lifestyle and preferences,
Indian consumers reflect a range of behaviour
from price sensitive based value expectations to
showcasing brand symbolism.
Changing Lifestyles & Values TVS Streak &
Honda Pleasure Young aspiring independent
urban women different to male dominated
society.

Cultural Diversity
Functional value associated with mass market
brand offering at lowest price FMCG Small
Serving 1-2 occasions Shampoos, tea, chocolate,
coffee, toothpaste, hair oil, detergents, soaps, cream
etc..
Brand Penetration India Max Films- max
celebrities Film stars & sports

Cultural Diversity
Diversity in Retail : - Kariana Shops.
Market need to develop sound business models after
considering psychological , cultural, socio-cultural,
socio-economic based consumer segmentation.

Cultural Diversity
Unorganized Market Not branded offering

Manufactured by small units,

low priced,
Geographical units place of production
illegal duplicates are also part

Unorganized bigger than organised

Eg. Watches, footwear, Detergent,
tea, CD, apparel, cooking utensil,
optical wear, bakery products etc.

Cultural Diversity
Categories like Rice, wheat, jewelry branded
offering account for 1-3% only,
In such categories loyalty to middlemen than
products.

Indian Youth(15-25 years ) 200 to 215 millions.

Marketers to ensure the judicious mix of values,
customs, traditions, life styles, practices, theories
etc.

Customer and Consumer

Traditionally, customer was used to define the
people whom the organization dealt with
externally and
refers to the purchaser of the product or service.

Customer and Consumer

However, 1990s witnessed a dramatic shift and
differentiation between customer and consumer,
wherein consumer refer to
individual who purchases product and services
for personal consumption and are end user of a product
or service
addresses both internal and external system, purchases
for personal consumption
hence includes the process of obtaining, consuming and
disposing.

Consumer Behaviour
Consumer behaviour is relatively new field of study
developed in the mid to late 60s by the marketing
theorists having borrowed concepts from psychology,
sociology, anthropology, economics to form new
marketing discipline.
Consumer behaviour was traditionally been a study of
why people buy as it becomes easier to develop
strategies to influence consumers, once marketer
knows the reasons people buy specific products or
brands.

Consumer Behaviour
Eventually CB expended its domain to decision
making process involving the acts of consumer
directly involved in obtaining, using and
disposing of economic goods and services
Wherein CB means all Acts of Buying :

Why,
where,
how,
what, and
how often.

Consumer Behaviour
According to Loudon & Bita
CB may be defined as the decision process and
physical activity, individuals engage in, when
evaluating, acquiring, using or disposing of
goods and services.

Consumer Behaviour
Schiffman and Kanuk CB can be defined as the
behaviour the consumer display in searching
for, purchasing, using, evaluating and
disposing of products, services and ideas,
which they expect will satisfy their needs.

Consumer Behaviour
As per Blackwell activities people undertake
when obtaining, consuming, and disposing of
products and services
Three primary activities included in the definition
are :
Obtaining,
Consuming and
Disposing

Consumer Behaviour
Obtaining refers to the activities leading up to and
including the purchase or receipt of a product.
These activities include searching for product
features and choices, evaluating alternative
products or brands, and purchasing, how consumer
buy, do they shop at special stores/shoping
malls/internet.
Other issues include in obtaining are payment
mode, transportation, own consumption or gift,
information search, impact of brand on
consumer choice.

Consumer Behaviour
Consuming means how, where, when, and
under what circumstances consumer use
products.
Eg. Usage for at home or office, usage as per
instructions or unique way, experience of using
product is entertaining or purely functional.
Do they use entire product before disposing of
it or is some of it never consumed.

Consumer Behaviour
Disposing refers to how consumers get rid of
products and packaging.
Consumer Analysts might examine CB from an
ecological standpoint: How do consumer dispose of
product packaging or product remains.
Are products biodegradable.Can they be recycled.
Consumers might also choose to extend the life of
some products by handing them down to younger
children, donating them to charity thrift shops or
selling them on eBay.

Consumer Behaviour
Historically, the study of CB has focused on buyer
behaviour, or why people buy.
More recently researchers and practitioners have
focused on consumption analysis, which refers to
why and how people use products in addition to why
and how they buy.
Consumption analysis is a broader conceptual
framework than buyer behaviour because it includes
issues that arise after the purchase process occurs
- issues that often affect how people buy and the
satisfaction they receive from their purchases.

Consumer Behaviour
Consumer behavior is thus
a study of individuals, groups, or
organizations and
the processes they use to select, secure, use,
and dispose of products, services, experiences,
or ideas to satisfy needs and
the impacts that these processes have on the
consumer and society.

Nature of Consumer Behaviour

External Influences
Internal Influences

Implications of definition
Totality of Decisions (all decisions)

Whether?
What?
Why?
How?
When?
Where?
How much?
How often?

Consumer Behaviour
Consumer behavior
may involve several people (decision making units)
is dynamic (changes over time)

Applications of Consumer Behaviour

Marketing Strategy
Regulatory (Public) Policy
Social Marketing
Personal / Professional Skills

Orientations to study Consumer

Behaviour

Anthropology
Economics
History and geography
Psychology
Sociology

Consumer Behaviour is
Interdisciplinary

Psychology
Study of human thinking and behavior
Some issues

Personality
Personal development
Cognition (thinking), perception
Attention and its limitations
Learninge.g., acquired tastes

Anthropology
The study of people within and across
cultures
Emphasis on cross-cultural differences
Questioning of assumptions within own
culture

Economics
Basic economic issues
Supply and demand
Rational decision making
Perfect information

Emphasis on predicting behavior

Complications in real life
Behavioral economicse.g., mental accounting

History and Geography

Origins of behavior, perspectives, and
traditions
Impact of geography on individuals
Isolation
Language development
Climate

Geographic determinism

Sociology
Cultural and interpersonal influences on
consumptione.g.,
Fads, fashions
Diffusion of innovation
Popular culture

Marketing and Consumer Behaviour

Consumer Market
Consists of all the individuals and
households who buy or acquire goods and
services for personal consumption.

Two Consumer Entities

Development of the
Marketing Concept

35

Production Orientation
From the 1850s to the late 1920s
Companies focus on production capabilities
Consumer demand exceeded supply

36

Sales Orientation
From the 1930s to the mid 1950s
Focus on selling
Supply exceeded customer demand

37

Marketing Concept
1950s to current - Focus on the customer!
Determine the needs and wants of specific
target markets
Deliver satisfaction better than competition

Chapter One Slide

Societal Marketing Concept

Considers
consumers long-run
best interest
Good corporate
citizenship

39

The Marketing Concept

Embracing the
Marketing
Concept
Consumer Research
Segmentation
Market Targeting
Positioning

The process and tools

used to study consumer
behavior

40

The Marketing Concept

Implementing the
Marketing
Concept
Consumer Research
Process of dividing the
Segmentation
Market Targeting
Positioning

market into subsets of

consumers with
common needs or
characteristics

41

The Marketing Concept

Implementing the
Marketing
Concept
Consumer Research
The selection of one or
Segmentation
Market Targeting
Positioning

more of the segments

identified to pursue

42

The Marketing Concept

Implementing the
Marketing
Concept
Consumer Research Developing a distinct image for
Segmentation
Market Targeting
Positioning

the product in the mind of the

consumer
Successful positioning includes:
Communicating the benefits of
the product
Communicating a unique
selling proposition
Chapter One Slide

The Marketing Mix

44

Customer Value, Satisfaction,

Trust, and Retention

Chapter One Slide

Successful Relationships
Value,
Satisfaction,
Trust,
andValue
Customer
Retention

Customer
Satisfaction
Customer Trust
Customer
Retention

Defined as the ratio between

the customers perceived
benefits and the resources
used to obtain those benefits
Perceived value is relative
and subjective
Developing a value
proposition is critical

46

Successful Relationships
Value,
Satisfaction,
Trust,
and
Customer
Retention
Value
Customer
Satisfaction
Customer Trust
Customer
Retention

The individual's perception

of the performance of the
product or service in relation
to his or her expectations.
Customer groups based on
loyalty include loyalists,
apostles, defectors,
terrorists, hostages, and
mercenaries
47

Successful Relationships
Value,
Satisfaction,
Trust,
andValue
Customer
Retention
Customer
Satisfaction
Customer Trust
Customer
Retention

Establishing and
maintaining trust
is essential.
Trust is the
foundation for
maintaining a
long-standing
relationship with
customers.
48

A Simple Model of Consumer Decision Making

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Chapter One Slide 49

Successful Relationships
Value,
Satisfaction,
Trust,
andValue
Customer
Retention
Customer
Satisfaction
Customer Trust
Customer
Retention

The objective of providing

value is to retain highly
satisfied customers.
Loyal customers are key
They buy more products
They are less price
sensitive
Servicing them is cheaper
They spread positive
word of mouth
50

Top 10 Ranked U.S. Companies in Terms of

Consumers Trust and Respect of Privacy
Table
1.2
Top
10 Companies
American Express
eBay
IBM
Amazon
Johnson & Johnson
Hewlett-Packard
U.S. Postal Service
Procter and Gamble
Apple
Nationwide

Customer Profitability-Focused
Marketing

Tracks costs and

revenues of
individual consumers
Categorizes them
into tiers based on
consumption
behavior
A customer pyramid
groups customers
into four tiers

52

THE TRADITIONAL MARKETING

CONCEPT

VALUE- AND RETENTIONFOCUSED MARKETING

Make only what you can sell instead of trying

to sell what you make.

Use technology that enables customers to

customize what you make.

Do not focus on the product; focus on the need

that it satisfies.

Focus on the products perceived value, as well

as the need that it satisfies.

Market products and services that match

customers needs better than competitors
offerings.

Utilize an understanding of customer needs to

develop offerings that customers perceive as
more valuable than competitors offerings.

Research consumer needs and characteristics.

Research the levels of profit associated with

various consumer needs and characteristics.

Understand the purchase behavior process and

the influences on consumer behavior.

Understand consumer behavior in relation to

the companys product.

Realize that each customer transaction is a

discrete sale.

Make each customer transaction part of an

ongoing relationship with the customer.
53

The Consumer Research Process

Six steps
defining the objectives of the research
collecting and evaluating secondary data
designing a primary research study
collecting primary data
analyzing the data
preparing a report on the findings

Figure 2.1 The Consumer Research Process

Develop Objectives
Collect Secondary Data
Design Qualitative Research
Method
Screener questionnaire
Discussion guide

Design Quantitative Research

Method
Sample design
Data collection instrument

Conduct Research
(Using highly trained
interviewers)

Collect Primary Data

(Usually by field staff)

Analyze Data
(Subjective)
Prepare Report

Exploratory
Study

Analyze Data
(Objective)
Prepare report

Factors Influencing Consumer

Behavior

Personal
Psychological
Social
Cultural

Personal Factors
Age
Life-Cycle Stage

Stages in Family Life-Cycle

1.
2.
3.
a.
b.
4.
a.
b.
5.

Single
Newly Married Couples
Full Nest
Full Nest I
Full Nest II
Empty Nest
Empty Nest I
Empty Nest II
Solitary Survivor

Personal Factors

Age
Life-Cycle Stage
Occupation
Economic Circumstances
Life Style

Psychological Factors
Wants
Based on a want or desire to have
something. Not a necessity.

Psychological Factors
Motivation:
Freud- Id, Ego, Superego
Maslow - Hierarchy
Murray- 28 Psychogenivc
McClelland- Trio
Alderfers - ERG

Psychological Factors
Motivation
Perception
The process by which an individual selects,
organizes, and interprets inputs/stimuli to create
a meaningful picture of the world.
Selective Exposure
Selective Distortion
Selective Retention

Psychological Factors

Motivation
Perception
Learning
Changes in an individuals behavior
arising form experience

Psychological Factors

Motivation
Perception
Learning
Beliefs
Descriptive thoughts that a person holds about
something

Psychological Factors

Motivation
Perception
Learning
Beliefs
Attitudes
Enduring favorable or unfavorable cognitive
evaluations emotional feelings and action
tendencies

Functional Factors
Needs
Need over wants. Delivers to a real
need to have something.

Social Class
Relatively homogenous, enduring
divisions in a society, hierarchically
ordered with members sharing similar
values, interests, and behaviors.

American Social Classes

Upper Upper 1%
Lower Upper 2%
Upper Middle
12%
Middle 32%
Working
38%
Upper Lower 9%
Lower Lower 7%

Family Influence on Buying

Behavior
Husband-Dominant
Wife-Dominant
Equal

Adoption Process
1.
2.
3.
4.
5.
6.

Awareness
Interest
Evaluation
Trial
Decision
Confirmation

Culture & Subcultures

Cultures
The accumulation of values, knowledge,
beliefs, customs, objects, and concepts that a
society uses to cope with its environment

Subcultures
Groups of individuals who have similar value
and behavior patterns within the group but
differ from those in other groups.

Examples of Buying Motives:

Psychological or Functional?
A girl wants to remember her grandmother
on her birthday.
Her primary motive is?

Psychological

Examples of Buying Motives:

Psychological or Functional?
A homemaker needs a new automatic
washing machine and has had bad
experiences with semi-automatic machine
Her primary motive is ?

Functional

Examples of Buying Motives:

Psychological or Functional?
A teacher wants to buy a practical car to be
used for family transportation.
Her/His primary motive is ?

Functional

Examples of Buying Motives:

Psychological or Functional?
A career woman always buys Westren
fashionable clothes.
Her primary motive is?

Psychological

Examples of Buying Motives:

Psychological or Functional?
An overweight 40 year old man wants to
loose weight so that he can reduce his blood
pressure.
His primary motive is?

Functional

Examples of Buying Motives:

Psychological or Functional?
A homeowner needs to mow their lawn.
Their primary motive is?

Functional

Consumer Buying Behavior Competency

Functional Motive Psychological
Motive
The price is 40 cents
off the regular price.
It never needs
ironing.
Diamonds are forever.
Serving you since
1971.
Ninety-day warranty.

Consumer Buying Behavior Competency

Functional Motive Psychological
Motive
Running shoe with
built-in arch.
Its all the rage
colored action wear
and style.
Wheatiesthe
breakfast of
champions!
Steel-belted radial tires
warranted for 40,000
miles
A watcha gift she
will treasure always.

Opinion
Leadership

The process by which

one person (the
opinion leader)
informally influences
the consumption
actions or attitudes of
others who may be
opinion seekers or
opinion recipients.

What is Opinion Leadership?

Opinion
Leader

Opinion
Receiver

Opinion
Seeker

Examples of Opinion Leadership

During a coffee break, a co-worker talks
about the movie he saw last night and
recommends seeing it.
A person shows a friend photographs of his
recent Australian Outback vacation and the
friend suggests that using a polarizing filter
might produce better pictures.

Special Issues(Category Specific)

Opinion leaders are four times more likely to be
asked about political issues, three times more
likely to be asked about computers or investments,
and twice as likely to be asked about restaurants
Information seekers seek a strong-tie source
when they know little about a topic, and weaktie sources when they have some knowledge

Reasons for the Effectiveness of

Opinion Leadership
Credibility
Positive and Negative Product
Information
Information and Advice
Opinion Leadership Is CategorySpecific
Opinion Leadership Is a Two-way
Street/communication

Figure 15.1 Factors Leading to

Negative Word-of-Mouth Behavior
Individual Factors
Attitudinal Factors
Product Involvement

+
+
+

Situational Factors
+

Negative
WOM -

Likelihood
of
Repurchase

Figure 15.2 Word-of-Mouth in Action

Financial Services

% of
Automotive
respondents
that used
Travel
a referral
to make one
Consumer Electronics
of these
purchases
Computer
over the
past year
Restaurants
0%

20%

40%

60%

80%

Motivations Behind Opinion

Leadership
The Needs of Opinion Leaders
The Needs of Opinion Receivers

The Needs of Opinion Leaders

Involvement
1.
2.
3.
4.

Self involvement
Social involvement
Product involvement
Message involvement

The Needs of Opinion Receivers

New-product or new usage information

Reduction of perceived risk
Reduction of search time
Receiving the approval of the opinion
leader

Table 15.3 A Comparison of Motivations

(Excerpts)
OPINION LEADERS
SELF-IMPROVEMENT
MOTIVATIONS
Reduce post-purchase uncertainty or
dissonance
Gain attention or status
Assert superiority and expertise
Feel like an adventurer
PRODUCT-INVOLVEMENT
MOTIVATIONS
Express satisfaction or dissatisfaction
with a product or service
Learn what products are new in the
marketplace

OPINION RECEIVERS
Reduce the risk of making a purchase
commitment
Reduce search time

Learn how to use or consume a product

Measurement of Opinion
Leadership
Self-Designating
Method
Sociometric Method
Key Informant Method
Objective Method

Table 15.5 Measuring Opinion Leadership

OPINION LEADERSHIP
MEASUREMENT
METHOD

DESCRIPTION OF METHOD

SAMPLE
QUESTIONS ASKED

SELF-DESIGNATING
METHOD

Each respondent is asked a

series of questions to determine
the degree to which he or she
perceives himself or herself to
be an opinion leader.

Do you influence
other people in their
selection of
products?

SOCIOMETRIC
METHOD

Members of a social system are

asked to identify to whom they
give advice and to whom they
go for advice.

Whom do you
ask?Who asks you
for info about that
product category?

Table 15.5 continued

OPINION
LEADERSHIP
MEASUREMENT
METHOD

DESCRIPTION OF METHOD

SAMPLE
QUESTIONS ASKED

KEY INFORMANT
METHOD

Carefully selected key informants in Who are the most

a social system are asked to
influential people in
designate opinion leaders.
the group?

OBJECTIVE
METHOD

Artificially places individuals in a

Have you tried the
position to act as opinion leaders
product?
and measures results of their efforts.

Table 15.6 Profile of Opinion Leaders

GENERALIZED
ATTRIBUTES ACROSS
PRODUCT CATEGORIES
Innovativeness
Willingness to talk
Self-confidence
Gregariousness
Cognitive differentiation

CATEGORY-SPECIFIC
ATTRIBUTES
Interest
Knowledge
Special-interest media exposure
Same age
Same social status
Social exposure outside group

The Interpersonal Flow of

Communication
Two-Step Flow
A communication model that portrays opinion
leaders as direct receivers of information from
mass media sources who, in turn, interpret and
transmit this information.

Multistep Flow
A revision of the traditional two-step theory
that shows multiple communication flows

Figure 15.4 Two-Step Flow of

Communication Theory
Step 1
Mass
MassMedia
Media

Step 2
Opinion
Opinion
Leaders
Leaders

Opinion
Opinion
Receivers
Receivers
(the
(themasses)
masses)

Figure 15.5 Multistep Flow of

Communication Theory
Step 2

Mass
MassMedia
Media

Step 1a

Step 1b

Opinion
Opinion
Leaders
Leaders

Step 3

Opinion
Opinion
Receivers/
Receivers/
Seekers
Seekers
Information
Information
Receivers
Receivers

Diffusion
Process

The process by which

the acceptance of an
innovation is spread by
communication to
members of social
system over a period of
time.

Adoption
Process

The stages through

which an individual
consumer passes in
arriving at a decision to
try (or not to try), to
continue using (or
discontinue using) a new
product.

Elements of the Diffusion Process

The Innovation
The Channels of Communication
The Social System
Time

Defining Innovations

Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions
Consumer-oriented definitions

Product-Oriented Definitions
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation

Figure 15.7 Telephone Innovations

Discontinuous
Innovations

Telephone

Cell Phone

Fax Machine

Dynamically Continuous
Innovations

Continuous
Innovations

Telephone answering machines

Call forwarding
Call waiting
Caller ID
Banking by telephone
Call-prompting systems

Hold button
Line-in-use indicator
Redial button
Auto dialing feature
Touch-tone service
800 Numbers
900 Numbers

Ability to send/receive email

Incorporate PDA functions
Calendar/Phonebook
Voice-activated dialing

Switch from analog to

digital
Include camera
Ringer styles
Play games

Fax modem
Mobile fax machines
Home office systems
(combined fax, copier,
computer printer)

Plain paper fax

Speed dial buttons
Delayed send
Copy function
Paper cutter

Product Characteristics That

Influence Diffusion

Relative Advantage
Compatibility
Complexity
Trialability
Observability

Table 15.7 Characteristics That

Influence Diffusion
CHARACTERISTICS

Relative
Advantage
Compatibility

Complexity

EXAMPLES

Air travel over train travel, cordless

phones over corded telephones
Gillette MACH3 over disposable
razors, digital telephone answering
machines over machines using tape
Electric shavers

Table 15.7 continued

CHARACTERISTICS

EXAMPLES

Trialability

Trial size jars and bottles of new

products, free trials of software,
free samples, cents-off coupons

Observability

Clothing, such as a new Tommy

Hilfiger jacket, a car, wristwatches,
eyeglasses

Time and Diffusion

Time
Adopter Categories
Rate of Adoption

Adopter
Categories

A sequence of
categories that
describes how early (or
late) a consumer
adopts a new product
in relation to other
adopters.

Figure 15.9 Adopter Categories

Early
Adopters
13.5%
Innovators
2.5%

Laggards
Early
Majority
34%

Late
Majority
34%

Percentage of Adopters by Category Sequence

16%

Innovators: Description
2.5% of population
Venturesome
Very eager to try new ideas
Acceptable if risk is daring
Communicates with other innovators

Early Adopters: Description

13.5% of population
Respected
More integrated into the local social system
The persons to check with before adopting a
new idea
Category contains greatest number of
opinion leaders
Are role models

Early Majority: Description

34% of population
Deliberate
Adopt new ideas just prior to the average
time
hold leadership positions
Deliberate for some time before adopting

Late Majority: Description

34% of population
Skeptical
Adopt new ideas just after the average
time
Adopting may be both an economic
necessity and a reaction to peer pressures
Innovations approached cautiously

Laggards: Description
16% of population
Traditional
The last people to adopt an innovation
Most localite in outlook
Oriented to the past
Suspicious of the new

Table 15.11 Stages in Adoption Process

WHAT HAPPENS
NAME OF
DURING THIS STAGE
STAGE

EXAMPLE

Awareness

Consumer is first
exposed to the product
innovation.

Janet sees an ad for a new MP3 player in

the magazine she is reading.

Interest

Consumer is interested in
the product and searches
for additional
information.

Janet reads about the MP3 player on the

manufacturers Web site and then goes to
an electronics store near her apartment and
has a salesperson show her a unit.

Evaluation

Consumer decides
whether or not to believe
that this product or
service will satisfy the
need--a kind of mental
trial.

After talking to a knowledgeable friend,

Janet decides that this MP3 player will
allow her to easily download the MP3 files
that she has on her computer. She also
feels that the units size is small enough to
easily fit into her beltpack.

Table 15.11 Stages in Adoption Process

WHAT HAPPENS
NAME OF DURING THIS STAGE
STAGE

Trial

Adoption
(Rejection)

EXAMPLE

Consumer uses the

product on a limited
basis

Since an MP3 player cannot be tried like

a small tube of toothpaste, Janet buys the
MP3 player online from Amazon.com,
which offers a 30-day full refund policy.

If trial is favorable,
consumer decides to use
the product on a full,
rather than a limited
basis--if unfavorable, the
consumer decides to
reject it.

Janet finds that the MP3 player is easy to

use and that the sound quality is excellent.
She keeps the MP3 player.

Figure 15.11 An Enhanced Adoption

Process Model
Discontinuation or
Rejection

Rejection

Evaluation

Pre-existing
problem or
Need

Awareness

Interest

Evaluation

Adoption or Rejection

Discontinuation

Trial

Adoption
or
Rejection

Postadoption or
Postpurchase
Evaluation

Consumer and Motivation

Figure 4.1 Model of the Motivation

Process
Learning
Learning
Needs
Needs
wants,
wants,
and
and
desires
desires

Tension
Tension

Drive
Drive

Behavior
Behavior

Cognitive
Cognitive
processes
processes

Tension
Tension
reduction
reduction

Goal
Goaloror
need
need
fulfillfulfillment
ment

Types of Needs
Innate Needs
Physiological (or biogenic) needs that are
considered primary needs or motives

Acquired needs
Generally psychological (or psychogenic) needs
that are considered secondary needs or motives

Goals
Generic Goals
the general categories of goals that consumers
see as a way to fulfill their needs
e.g., I want to get a graduate degree.

Product-Specific Goals
the specifically branded products or services that
consumers select as their goals
e.g., I want to get an MBA in Marketing from
Kellogg School of Management.

The Selection of Goals

The goals selected by an individual depend
on their:

Personal experiences
Physical capacity
Prevailing cultural norms and values
Goals accessibility in the physical and social
environment

Motivations and Goals

Positive Motivation Negative Motivation
A driving force
A driving force
toward some
away from some
object or condition
object or condition
Approach Goal
Avoidance Goal
A positive goal
toward which
behavior is directed

A negative goal from

which behavior is
directed away

Rational Versus 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

The Dynamic Nature 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

Figure 4.6 New and Higher Goals

Motivate Behavior

Figure 4.7
Changing
Consumer
Needs

Frustration

Failure to achieve a
goal may result in
frustration. Some
adapt; others adopt
defense mechanisms
to protect their ego.

Defense
Mechanism

Methods by which
people mentally
redefine frustrating
situations to protect
their self-images and
their self-esteem.

Table 4.2 Defense Mechanisms

Aggression
Rationalization
Regression
Withdrawal

Projection
Autism
Identification
Repression

Arousal of Motives

Physiological arousal
Emotional arousal
Cognitive arousal
Environmental arousal

Figure 4.8
Cognitive
Need
Arousal

Philosophies Concerned With

Arousal of Motives
Behaviorist School
Behavior is response to stimulus
Elements of conscious thoughts are to be ignored
Consumer does not act, but reacts

Cognitive School
Behavior is directed at goal achievement
Need to consider needs, attitudes, beliefs, etc. in
understanding consumer behavior

Figure 4.9 Maslows Hierarchy of Needs

Self-Actualization
(Self-fulfillment)
Ego Needs
(Prestige, status, self esteem)
Social Needs
(affection, friendship, belonging)
Safety and Security Needs
(Protection, order, stability)
Physiological Needs
(Food, water, air, shelter, sex)

Table 4.3 Murrays List of

Psychogenic Needs
Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention, Construction
Needs Reflecting Ambition, Power,
Accomplishment, and Prestige:
Superiority, Achievement, Recognition, Exhibition, Infavoidance,
Inviolacy, Defedance, Counteraction
Needs Connected with Human Power:
Dominance, Deferrence, Similance, Autonomy, Contrariance

Table 4.3 Murrays List of

Psychogenic Needs
Sado-Masochistic Needs :
Aggression, Abasement
Needs Concerned with Affection between People:
Affiliation, Rejection, Nurturance, Succorance, Play
Needs Concerned with Social Intercourse:
Cognizance, Exposition

Figure 4.10 Appeal to Egoistic

Needs

Figure 4.11
Appeal to
SelfActualization

A Trio of Needs
Power
individuals desire to control environment

Affiliation
need for friendship, acceptance, and belonging

Achievement
need for personal accomplishment
closely related to egoistic and self-actualization
needs

Figure 4.12
Appeal to
Power Needs

Figure 4.13
Appeal to
Affiliation
Needs

Figure 4.14
Appeal to
Achievement
Needs