Consumer Motivation

1. Consumer Motivation

2. Motivation Process Motivation • The processes that cause people to behave as they do, involving needs, goals and drives.

3. Motivation as a Psychological Force • Motivationis the driving force within individuals that impels them to action. • Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs.

4. Model of the Motivation Process

5. Substitute Goals • Are used when a consumer cannot attain a specific goal he/she anticipates will satisfy a need • The substitute goal will dispel tension • Substitute goals may actually replace the primary goal over time

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

7. 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

8. 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

9. Maslow’s Hierarchy of Needs

10. Types of consumer needs Psychological needs: Fundamental human needs, including food, water, and sleep Safety and health needs • Threats to our safety and health motivate purchases for personal security and protection • Protecting our personal information and computers represents new types of safety needs • Businesses provide a variety of products and services to appeal to safety and health conscious consumers • Need for love and companionship • Humans are social creatures who need to experience and express love and companionship • Services and products help individuals find and attract others • Products are often used as symbols of love and caring

11. Types of consumer needs Need for financial resources and security:A need that includes others important to the individual Social image needs: Conspicuous consumption, purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image

12. Types of consumer needs Need to possess:Consumers often acquire products simply because of their need to own such products, Plays a role in impulse buying, where consumers unexpectedly experience a sudden and powerful urge to buy something immediately

13. Types of consumer needs • Need to give: • Give something back to others or reward ourselves • Self-gifts let us motivate, reward and console ourselves • Need for variety: • Marketers may introduce different versions of original brand • Variety may become focus of product positioning

14. Types of consumer needs • Need for Information: • One reason we read or watch TV • Fuels Internet usage • Plays 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 information

15. A Trio of Needs • Power • individual’s desire to control environment • Affiliation • need for friendship, acceptance, and belonging • Achievement • need for personal accomplishment • closely related to egoistic and self-actualization needs

16. 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

17. Motivating consumers Motivating with money • Price cuts, specials, rebates and coupons motivate purchase • Resulting sales may increase, but profits may not • Attracts consumers less likely to repeat

18. Motivating consumers Provide 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)

19. Motivating consumers Implement 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

20. Motivating consumers Enhance perceived risk • Perceived risk: consumers’ apprehensions about the consequences of their behaviour (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

21. Motivating consumers Arouse 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

22. To Which of Maslow’sNeeds Does This Ad Appeal?

23. Both Physiological and Social Needs

24. To Which of Maslow’sNeeds Does This Ad Appeal?

25. Egoistic Needs

26. To Which of Maslow’sNeeds Does This Ad Appeal?

27. Self-Actualization

28. To Which of the Trioof Needs Does This Ad Appeal?

29. The Affiliation Needs Of Young, Environmentally Concerned Adults

30. Power And Achievement Needs

31. Measurement of Motives • Researchers rely on a combination of techniques • Qualitative research is widely used • Projective techniques are often very successful in identifying motives.