Consumer Motivation Theories of Motivation

Drive and Expectancy Theories McGuire s Theory McClelland s Theory

Consumer Perception Learning Theories Consumer Personality and Self Image Influences of Social Media on Consumer

Traditionally marketers used to view customers decision making process in the form of a funnel. Marketers role was to move people from the larger end to the smaller end. Today marketers no longer dictate the path people take nor do they lead the dialogue.

What is Consumer Motivation?

y A driving force which elicits a response leading to a

goal-directed behaviour in a person. y Motivation as a psychological force:

y Needs y Desires y Goals

Hierarchy of Needs
 Based on the Maslow s theory  There exists different needs at different points in one s life

Motivation Theories
y Drive Theory y Desire for purchase is due to inner drives y Could be physiological or psychological y Expectancy Theory y Consumers are driven by expected desirable outcomes eg. People switched from soap to facewash due to the expectation of better, more gentle cleansing

McGuire s Theory
Signatur e Tune
Cognitive Preservation Motives
a. Need for Consistency b. Need Attribution c. Need categorize d. Need objectification
a. Need Reduction for Cognitive Growth Motives a. Need for Autonomy b. Need for Stimulation c. Teleological Need d. Utilitarian Need

Largest mobile network

or to for

Affective Preservation Motives Tension

Affective Growth Motives a. Need for Assertion b. Need for Affiliation c. Need for Identification d. Need for Modelling

Express Yourself

b. Need for Expression c. Need for Ego Defence d. Need for Reinforcement

Express Yourself

Vroom s Expectancy Theory

 It is based upon the following three beliefs:  Valence (It refers to the emotional orientations consumers hold with respect

to outcomes [Problem solving, benefit etc].

The level of the desire may be extrinsic value [money savings, rewards, benefits] Or Intrinsic satisfaction / rewards.

 Expectancy (Consumers have different expectations and level of confidence

about what they are capable of doing).

 Instrumentality (Perception of the consumer whether they will actually get

what they look for /desire or not in a particular choice).  Marketers make their consumers aware of different Functional or Emotional Value in a particular brand  Marketers deliver the promise of their respective value behind the choice.

McClelland s Theory of Learned Needs

y Achievement motivation to strive for success.

y Need for affiliation motivates people to make friends, to

become members of groups, and to associate with others.

y Need for power leads to the desire to exercise control over

others.

y Need for uniqueness refers to desires to establish our choice

as unique and different.

Motivation Process

Consumer s Involvement of the y Involvement is defined as a person s relevance

object based on his needs, values and interests y Dimensions: y Antecedents y Involvement Properties y Purchase Involvement: y Personal Factors or Nature of consumer y Object or Stimulus Factors y Situational Factors like purchase use and occasion

Degree of Involvement  High Involvement Buying

Car Television

Low Involvement Buying Soap Toothbrush

Routined Resposne

Limited Decision Making

Central Route to Persuasion Peripheral Route to Persuasion

The Elaboration Likelihood Model

Extensive Decision Making

Impulse Buying

Decision making patterns based on consumers degree of involvement

Sub conscious Motivations Dichter s Theory

Consumer motivation is mostly unconscious.
-Attempted t o uncover underlying feelings, attitudes and emotions
Faculty

External

Intern al
Religion

Educatio n

Product

Personality Recommendatio n
Media

Cars Dolls

To destroy Control death Jealousy Aspirational

Exxon Put a tiger in your tank Barbie full bodied, fashionable

History

Institutions of Influence

Archetype and brand personality HUL Ice creams on basis of emotional states Nestle on the basis of biological clock

Physiological Arousal
External stimuli Eg. Inducing Hunger Outback Steakhouse Involuntary cues Not necessarily impulse like Cadburys

Emotional Arousal
Arouses emotion Daydreams can cause arousal of latent needs Driven ultimately into goal driven behaviour Could result In brand loyalty

Cognitive Arousal
Random Thoughts arouse cognitive awareness Eg. Reminders of home talking to parents Airtel for eg.

 Consumer perceive brand/product in their own way.

Perception is not limited to visual aspects.

Marketers can influence perceptions of consumers

by a number of methods

Sensory Means Pricing Packaging Promotion Display at retail counters Distribution

Sensory Perception

Ads used to stimulate the customers about specific distinguishing features

Sensory Perception Dettol Vs Savlon

Savlon having advantages like better scent and non-stinging properties miserably failed in the Indian market.  This was because Savlon was trying to differentiate on attributes which are not considered to be important by the consumers.

What customers look for is effectiveness.

Perceptual organization
y Organizing stimuli into groups and perceive them as

unified whole objects y Types:

y Figure and Ground y Grouping y Closure

Figure and Ground

One part of a stimulus will dominate (the figure) and other

parts will recede into the background (the ground).

Vodafones Zoozoo campaign made the Zoozoos popular but consumers could not relate it to Vodafone

Grouping

y Tendency to group stimuli so that they form a

unified picture of impression y Coke wanted consumers to associate it with fast food like Pizzas

Colour Perception

Bisleri lost significant market share to Kinley and other competitors. All competitors used similar packaging as that of Bisleri, having a Blue colored label. Blue color signifies safety and security. Bisleri repositioned itself from normal packaged drinking water to Natural Mountain water. The Green color representing nature and freshness was ideal.

Just Noticeable Difference

Bingo and Lays were sold earlier at Rs 10 for 35gm

pack.
 Potato prices went up in 2008 resulting in higher

cost for manufacturer.

The wafer producers maintained the same

packet size but reduced the net weight to 30 gm.

Wafers being the light product, consumers

couldn t perceive the difference in weight.

Stereotype

 Baygon s insecticides were known for the strong

odour.
 Mosquito repellents mats in Indian market like

goodnight and Casper gave out a pleasant smell.

When Baygon launched the mosquito repellent

mats, people were discouraged to buy due to the strong odour associated with the brand.
Thus being stereotyped led to the product failure.

Stereotype
 After continuing with the same

taste for 99 years, Coke decided to switch to a new formula in 1985

 New Coke, a sweeter version was

launched to match arch-rival Pepsi

Loyal Classic Coke consumers were

not ready to lower down to this variant

 Thus being stereotyped (in terms of

taste) led to the product failure.

Aspects of Perception
SELECTION
Consumers subconsciously are selective as to what they perceive.

ORGANIZATION
Figure and ground

INTERPRETATION

Physical Appearances

Stimuli selected depends on two major factors

Consumers previous experience Consumers motives

Grouping

Stereotypes

Selection depends on the

Nature of the stimulus Expectations Motives

Closure

Jumping to Conclusions

Effect of price ending

Certain prices have a psychological impact. A price of Rs. 999 may be perceived as just below 1000 bringing it into the 900 bracket for the consumer The 1 unit removed from the price may be perceived as a discount. Some companies do it on a regular basis and some do it for promotional pricing.

Perceived Risk perceived by the consumer about the y Degree of uncertainty

consequences of a specific purchase decision. y Types: y Functional Risk y Physical Risk y Financial Risk y Social Risk y Psychological Risk y Time Risk

Perception of Risk
y
y y

Functional risk : Risk of non-performance

Medicine,cosmetics or services like doctors or lawyers To minimise the risk the consumer will get more informations about goods or services or he will choose certain values eg. well known brands

y
y

Physical risk : the risk to self and others that the product may pose
The safety of product (gmo, cell phone )

y y

Psychological risk : doesn t fit the consumer personality Time risk : wastage of time in searching for the product

Perception of Risk
y Financial risk : the product will not be worth its price y More expensive a product is, the more complex the purchase proccess is y The risk depends on the revenue of the consumer y Not only the fruit of the purchase but on the fee of the delivery and the accessories y Social risk : risk of social embarrassment y Only on visible consumption (clothes, hair cut, cellphone ) y To be part of a group, one needs to conform

Perception based Positioning

y Perceptual Mapping

aids marketers in positioning and repositioning of products/services y Must determine which are the important attributes on which perceptions formed
Cars available in the United States

Consumer perception price



Perceived price = reflect the value that the customer receives from the purchase Perception of prices unfairness affect consumers' perception of product value Reference price is any price that a consumer uses as a basis for comparaison in judging another price

Consumer perception Quality of a product



Perceived quality = based on a variety of informal signals that they associate with the product can be intrinsic (physical characteristic) or extrinsic (what people say) to the product Packaging influences consumers' perception of product

ex: Dorset cereals

Thank You

Behavioural Learning Theories Cognitive Learning Theory

Two sub-theories in this stream: 1.Classical conditioning 2.Instrumental conditioning One common basis: Focus on the inputs and outputs, not on the process between them.

Two kinds of inputs/stimulus: 1.Unconditioned stimulus Well-known brand name and its logo 2.Conditioned stimulus Ad showing new Product features/attributes + emotional elements

Two kinds of outputs/response: 1.Unconditioned output Consumer perception

Consumer perception = Brand name/logo + Ad showing new Product features/attributes + emotional elements 1.Conditioned output Purchase/use the brand

Purchase = Consumer perception + Repeated Ads/promotions

Behavioural Learning Theories Classical conditioning

Three important basic concepts

Repetition (1) Stimulus generalization Stimulus discrimination

Strengthen the association between the conditioned and unconditioned stimuli Slow down the pace/process of forgetting Wear out phenomenon too much repetition = retention declines

Behavioural Learning Theories Classical conditioning

Three important basic concepts

Repetition (2) Stimulus generalization Stimulus discrimination

Avoiding/decreasing Wear out effect:

Minor and Major variations in the advertising message

Minimum number of repetitions? At least three Each exposure has a different objective

Behavioural Learning Theories Classical conditioning

Three important basic concepts

Repetition (3) Stimulus generalization Stimulus discrimination

First exposure: make the customer aware of the product Second exposure: show customers the relevance of the product + highlight uniqueness Third exposure: Remind them the benefits + the specific value proposition

Behavioural Learning Theories Classical conditioning

Repetition Stimulus generalization (1) Stimulus discrimination

Three important basic concepts Customer tend to show similar response to slightly different stimuli E.g. Dogs salivate even on hearing somewhat similar sound to that of a bell Consequence: consumers confuse them with the original product they have seen or advertised.

Behavioural learning Theories Classical conditioning

Three important basic concepts

Repetition Stimulus generalization (2) Stimulus discrimination

Opportunities of this phenomenon for marketers: 1. Product line extensions (e.g. Dove name used for shampoo and soap) 2. Product form extensions (e.g. Dettol soap is extended in liquid form) 3. Product category extensions

Behavioural learning Theories Classical conditioning

Repetition Stimulus generalization Stimulus discrimination (1)

Three important basic concepts Opposite of stimulus generalization Key concept: positioning of the brand Objective: build a unique image or position the product/service in the mind of the consumer The brand has to be different from the competition in the mind of the consumer

Behavioural learning Theories Classical conditioning

Three important basic concepts

Repetition Stimulus generalization Stimulus discrimination (2)

It s often difficult to dislodge an established brand once stimulus discrimination has occurred The longer the period of learning or associating a brand s attributes with a specific product, the more likely the consumer will discriminate

Behavioural learning Theories Instrumental

conditioning

Learning occurs in a controlled environment where individuals are rewarded or get a positive experience for choosing an (reinforcement) appropriate behaviour.

B.F. Skinner

Behavioural learning Theories Instrumental

conditioning

It exists three kind of reinforcement: 1. Positive: marketers have to privilege them 2. Negative: marketers have to avoid them 3. Forgetting: At times, certain behaviour is unlearned because of lack of use rather than lack of reinforcement. Marketers try to avoid this through repetition.

Behavioural learning Theories Instrumental

conditioning

What should be positively reinforce ? 1. Customer satisfaction: provide the best product as possible and avoid raising customer expectations for the product/service beyond a point 2. Relationship between the company and the clients

A substantial amount of learning takes place as a result of consumer s own initiative to solve a problem. Generally, cognitive learning theory is based on mental activity, and learning happens on mental information processing or in response to problem solving .

Information processing is related to both cognitive ability and the complexity of the information. The more experience a consumer has with a product category, the greater his/her ability to make use of product information. Sensory store: All information comes to our memory through our senses (sensory input) and is compiled as a single image by the brain. It s easy for the marketer to enter this store. However, it s harder to make a lasting impression

It exists two types of memory: short and long-term. Short-term memory:

1. It s the working memory 2. If rehearsed, mental repetition of sensory

material takes place and information is transferred to the long-term memory. 3. If not rehearsed and transferred, it s lost in a few seconds.

Long-term memory:
1. All information and experiences encountered

by an individual end up in his long-term memory. 2. These information and experiences may last days, weeks or even years. Movement from short-term to long-term memory depends on rehearsal and encoding

How to facilitate rehearsal and encoding? (1) Focus on images rather than words accelerates the process of encoding Limit the quantity of information to avoid overloading Knowledgeable consumers can take in more complex chunks of information than those who are less knowledgeable in the product category Studies show that consumers tend to remember the product s benefits rather than it s attributes

How to facilitate rehearsal and encoding? (2) The memorability of an ad is improved when as messages are relevant to the customer, especially if it helps him to solves his problems The more the competition is intense, the less the consumer will have a big ability to encode information.

Blogging Video Sharing Photo sharing

Podcasts

Message Boards

Key Social Platforms

Social Networking

Micro blogging

RSS

Chat Rooms

Widgets

Social Networking in India

13.7 Million Social Networking Users

 Internet is the fastest growing mass medium in India  Every 8thUrban Indian is online  Every second Internet user in India is an Social networking Site user  Active internet users have increased by more than 50 % in 1 year

Active Users 32 Million Internet Users 46 million PC Literate 65 Million English Knowing 77 Million Literate Population 205 Million Urban Population 250 Million Total Population 1120 Million

Companies can gain new insights and opinions

` ` `

How product is used Discover their flaws Better way to communicate their message

Express themselves through corporate blogs and other social media channels

Social media describes the online technologies and practices that people use to share opinions, insights, experiences, and perspectives with each other. Social media can take many different forms, including text, images, audio, and video. Popular social mediums include blogs, message boards, podcasts, wikis, and vlogs