3 Lec CB

CONSUMER BEHAVIOR
Consumer Motivation
Consumer Perception
3 LEC
Consumer Motivation
Represents the drive to satisfy
both physiological and
psychological needs through
product purchase and
consumption
Consumer Motivation
consumption
Gives insights into why people
buy certain products
Consumer Motivation
consumption
Gives insights into why people
buy certain products
Stems from consumer needs:
industries have been built around
basic human needs
Types of Consumer Needs
Physiological 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
Need for Love and Companionship
Services and products help
individuals find and attract
others
Products are often used as
symbols of love and caring
Love and Companionship
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
Social Image Needs
Need for Pleasure
Products, services, and
consumption activities provide
fun and excitement
Need to Possess
Consumers often acquire products
simply because of their need to own
such products— e.g., collectors
Consumers’ Need to Possess
Need to Possess
Consumers often acquire products
simply because of their need to own
such products— e.g., collectors
Plays a role in impulse buying:

where consumers unexpectedly
experience a sudden and powerful
urge to buy something immediately
Need to Give
Give something back to others
or reward ourselves
Self-gifts let us motivate, reward,
and console ourselves
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
Need for Variety
Marketers may introduce
different versions of original
brand
Variety may become focus of
product positioning
Motivational Conflict and
Need Priorities
Need Priorities
Satisfying a need often comes at the
expense of another need—these
trade-offs cause motivational conflict
Types of Motivational Conflict
Approach-approach: deciding between

two or more desirable options
Avoidance-avoidance: deciding between
two or more undesirable options
Approach-avoidance: behavior has both
positive and negative consequences
Need Priorities
Resolving motivational conflicts
requires prioritizing needs
Maslow’s hierarchy
Some needs take precedence over
other needs—physiological needs take
top priority
Differences in the importance attached
to various needs affects how
consumers evaluate products
Need Priorities
Because of consumers’ different
motivational priorities, companies
use benefit segmentation: dividing
consumers into different market
segments based on benefits they
seek from purchase and
consumption
Maslow’s Hierarchy of Needs
Motivational Intensity
Motivational intensity: how strongly
consumers are motivated to satisfy
a particular need
Depends on need’s importance
Motivational Intensity
Motivational intensity: how strongly
consumers are motivated to satisfy
a particular need
Depends on need’s importance
Involvement: degree to which an
object or behavior is personally
relevant
Motivational intensity and involve-
ment determine amount of effort
consumers exert in satisfying needs
The Challenge of Understanding
Consumer Motivation
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
Unconscious Motivation
Motivating Consumers
Motivating with Money
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
Price reductions may increase price
sensitivity
Provide Other Incentives
Premiums, free products,
contests, and sweepstakes are
designed to motivate consumers
to purchase
Motivating with 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)
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
Participation in Loyalty Programs
Enhance Perceived Risk
Enhance 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
Arouse Consumers’ Curiosity
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
Arousing Curiosity
Motivation
Motivation
 Motivation refers to the processes that cause
people to behave as they do.
 Once a need is aroused, a state of tension exists
that drives the consumer to attempt to reduce
or eliminate the need.
 Needs can be:
 Utilitarian: a desire to achieve some functional or
practical benefit.
 Hedonic: an experiential need, involving emotional
responses or fantasies.
Motivational
Motivational Strength
Strength
The Degree to Which a Person is Willing to Expend Energy to
Reach One Goal as Opposed to Another.
Biological
BiologicalVs.
Vs.Learned
LearnedNeeds
Needs
(Instinct Drives Behavior)
(Instinct Drives Behavior)
Drive
DriveTheory
Theory Expectancy
ExpectancyTheory
Theory
Focuses on Biological Behavior is Largely

Needs that Produce Pulled by
Unpleasant States of Expectations of
Arousal, i.e. Hunger. Achieving Desirable
Homeostasis: Behavior Outcomes - Positive
Which Tries to Reduce Incentives - Rather
or Eliminate This Than Pushed From
Unpleasant State and Within.
Return to Balance.
Write down the first thought
that pops into your head
when you see this image
…the FIRST THOUGHT

• Perceptions The meaning that a person
attributes to incoming stimuli gathered through
the five senses – sight, hearing, touch, taste, and
smell
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Cultural
Influences
• Culture Values, beliefs, preferences, and tastes
handed down from one generation to the next
• Culture is a broad environmental determinant
of behaviour
Core Values in Canadian Culture
• While some cultural values change over time,
basic core values take much longer to evolve
 Examples: Importance of family; Peace and order
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Social Influences
• Group membership influences an individual’s purchase
decisions and behavior in both overt and subtle ways
• Groups establish norms of behavior
• Differences in status and roles within groups also
influence behavior
• Norms The values, attitudes, and behaviors that a
group deems appropriate for its members
• Status The relative position of any individual member
in a group
• Roles Define behavior that members of a group expect
of individuals who hold specific positions within the
group
4-53
Social
Influences
• Reference groups
Groups whose value structures and standards
influence a person’s behavior
• Social Power of Reference Groups:

“the capacity to alter the actions of others” (Solomon,
et. al, 2008, p. 315) is exemplified in the following 6
forms:
1. Referent Power – admired
2. Information Power – access to info.
3. Legitimate Power – social agreement (e.g. judge)
4. Expert Power – possess knowledge/skills
5. Reward Power – means to provide positive
reinforcement
6. Coercive Power – effective in short term
4-54
Social Influences
• Social classes Groups whose rankings are
determined by occupation, income,
education, family background, and
residence location
Research identified
six classes:
1. Upper-upper
2. Lower-upper
3. Upper-middle
4. Lower-middle
5. Working class
6. Lower class
4-55
Family Influences
• Autonomic role― when the partners independently
make equal numbers of decisions
• Husband-dominant role― when the husband
makes most of the decisions
• Wife-dominant role― when the wife makes most
of the decisions
• Syncratic role― when both partners jointly make
most decisions
4-5
Personal Determinants of
Consumer Behaviour
4-57
Needs and Motives
• Need An imbalance between a consumer’s
actual and desired states
• Motive Inner state that directs a person
toward the goal of satisfying a felt need
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Self-Concept Theory
• Self-concept A person’s multifaceted picture
of himself or herself, composed of the:
• Real self
• Self-image
• Looking-glass self
• Ideal self
4-59
Attitudes
• A person’s enduring favorable or unfavorable
evaluations, emotional feelings, or action
tendencies toward some object or idea
Attitude Components
• Cognitive—individual’s knowledge about an
object or concept
• Affective—deals with feelings or emotional
reactions
• Behavioral—tendencies to act in a certain manner
4-60
Learning
• An immediate or expected change in behaviour
as a result of experience
• The learning process includes:
• Drive—any strong stimulus that impels action
• Cue—any object in the environment that determines
the nature of the consumer’s response to a drive
• Response—an individual’s reaction to a set of cues
and drives
• Reinforcement—the reduction in drive that results
from a proper response; creates bond between the
drive and the purchase of the product
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The Consumer Decision Process
• Consumers complete a step-by-step process
Problem
when making purchase decisions
Opportunity • High-involvement purchase decisions are
Recognition those with high levels of potential social or
economic consequences
• Low-involvement decisions are routine
Search purchases that pose little risk to the
consumer
• Cognitive dissonance Post-purchase
anxiety that results from an imbalance
Alternative among an individual’s knowledge, beliefs,
Evaluation and attitudes after an action or decision is
taken
Post-
Purchase Purchase
purchase
Decision Act
Evaluation
4-62

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CONSUMER BEHAVIOR

Companies reinforce the notion

Plays a role in impulse buying:

Approach-approach: deciding between

Focuses on Biological Behavior is Largely

…the FIRST THOUGHT

• Social Power of Reference Groups:

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