consumer behaviour by govind singh

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Information about consumer behaviour by govind singh

Published on October 26, 2008

Author: govind


Consumer needs and motivation : Consumer needs and motivation Module 3 Slide 2: Motivation Motivation can be described as the driving force within individuals that impels them to action. This driving force is produced by a state of tension,which exists as the result of an unfulfilled need. Slide 3: Marketer should identify and satisfy unfulfilled consumer needs better and sooner than the competition. Successful marketers define their markets in terms of the .This is a market oriented approach, rather than a production oriented approach to marketing. Market orientation—focus on the needs of the buyer Slide 4: Model of the motivation process Unfulfilled Needs,wants And desire Tension Drive Behavior Goal or Need fulfilled Cognitive processes Tension reduction Learning Slide 5: The selection of goals --Depend on their personal experiences,Physical capacity prevailing cultural norms and values He/she probably would not stick in one specific goal.Inorder to attain that specific goal he/she would select a substitute goal. Ex..An individual would like to become healthier / stronger.His / her goal to take non-vegetarian but his doctor has advised him to avoid non vegetarian he may have to select fresh greenish/veg soup ect… Slide 6: Positive and Negative motivation Positive motivation: A driving force towards some object or condition ( needs / wants / desire) Negative motivation: A driving force away from some object or condition (Fear / aversions) Slide 7: Ex..Going to a restaurant to fulfill a hunger needs and away from motorcycle transportation to fulfill a safety need. Positive goal—positive goal is one towards which behavior is directed (referred to as an approach object Negative goal—negative goal is one from which behavior is directed away (referred to as an avoidance object) Slide 8: Ex.. One women may have a goal of fitness and she joins a health club to work out regularly.Her husband may view getting fat as a negative goal and so he joins a jogging club. In former case, the wife’s action to achieve the positive goal of health and fitness. In the later case her husband’s actions are designed to avoid a negative goal (flabby physique) Slide 9: Rational versus emotional motives Rational Motives Consumers behave rationally when they carefully consider all alternatives and choose those,which give them the greatest utility.In a marketing context, the term rationality implies that consumers select goals based on totally objective criteria ( such as size,price,weight..) Slide 10: Emotional Motives Imply the selection of goals according to personal or subjective criteria (Pride, fear, affection or status) Ex.. A product purchased to enhance self image is a perfect rational form of consumer beh .if th””””e consumer will feel better about herself to use it. If the beh does not seem rational to the person at the time of undertaken, obviously he / she would not use it. Slide 11: Dynamic Nature of Motivation --Constantly changing in reaction to life experience. --Needs and goals are constantly growing and changing in response to an individuals physical condition, environment, interactions with others and experiences --As individual attain their goals they develop new ones.If they do not attain their goals they continue for old goal or they develop substitute goals. -- People who achieve the goal, set new and higher goals for themselves that cause tension and induce activity. Slide 12: Some of the reasons why need driven human activity never ceases include the following characteristic 1.Needs are never fully satisfied Human needs are never fully or permanently satisfied. EX..women who working as assistant to the CEO may not sufficiently satisfy her needs so she may strive for her own decision making position in the company. Temporary goal achievement are not adequately satisfy the need and the individual try harder in an effort to satisfy the need more fully. Slide 13: 2.New needs emerge as old needs are satisfied. Ex..A man who has largely satisfied his basic physiological needs may turn his effort to achieve acceptance among his neighbor by joining their political clubs. 3.Success and Failure influence goals. Successfully achieve their goals usually set new and higher goals ie..they raise their levels of aspiration. Success in reaching lower goals makes them more confident of their ability to reach higher goals Conversely these who do not reach their goal sometimes lower their levels of aspiration. Ex..Student try to study dental school;Failing that he may study to be a pharmacist. Slide 14: Substitute Goals Individual cannot attain a specific goal that he anticipates will satisfy certain needs, beh may be directed to a substitute goal. Ex..Individual like ice cream she/he stopped taking ice cream because he is dieting may take lime juice. Slide 15: Frustration --Failure to achieve a goal often result in feeling of frustration(inability to attain goal-frustration comes) --Limited physical or Financial resources. --Obstacle in the physical or social environment such frustration people are likely to adopt a defense mechanism to protect their egos from feelings of inadequacy. Defense Mechanisms : Defense Mechanisms 1.Aggression (attracting) may react with anger towards his/her boss for not getting enough money for one trip so frustrated consumers have boycotted manufacturers in an effort to improve product quality and have boycotted retailers in an effort to have price lowered. 2.Rationalization (Convince themselves)They may decide that goal is not really worth (reasoning for being unable to attain their goals) Slide 17: 3.Regression—People react to frustrating situations with childish or immature behavior. 4.Withdrawal—withdrawing from the situation.Ex..Person who has difficulty achieving officer status in an organisation may simply quit the organisation or he may decide he can use his time more constructively in other activities. 5.Projection—An individual may projecting blame for his/her own failure and inabilities on other objects or persons.Ex..the driver who has an automobile accident may blame the other driver or the condition of the road player blame the ground / climate condition. Slide 18: 6.Autism or Autism thinking Day dream that enables the Individual to attain unfulfilled needs ( dreaming / thinking emotionally / romantically). 7.Identification Sometime people feel frustration by subconsciously identifying with other persons or situation that they consider relevant.Ex.. Mouth wash, shampoo, attract opposite sex Slide 19: 8.Repression– Another way that individuals avoid the tension arising from frustration is by repressing the unsatisfied need Ex..A couple who cannot have children may surround themselves with plants or pets or wife work in school, husband may work in a boy’s club. Slide 20: Frustration and Defence mechanisms Examples: 1.Aggression:Frustrated consumer write letters to editors, or take the help of consumer forum. 2.Rationalisation:Convinces herself/himself that the goal is not really worth. 3.Regression:Immature or childlike behavior by throwing the merchandise or fighting with shopkeeper rather than settling the matter amicably. 4.Withdrawal:A person feel difficulty in driving a car may stop doing so and may decide that it is cheaper and convenient to use a three wheeler auto or a taxi. Slide 21: 5. Projection: Blame for his or her inabilities on other objects or persons…the person who lose his / her hair may blame shampoo…After failing in an examination, students often blame the prevailing conditions in the institution. 6. Autism:The thinking, which is almost completely dominated by needs and emotions (daydreaming) without relating to reality, is called autism:some consumer may daydream that by using a certain product they would become very attractive..fair and lovely, men’s active cream. Slide 22: 7.Identification: We often see commercials and ads using slice of life format in which an individual experiences a frustrating situation and then overcomes the problem by using the advertised product or service.Ex..antidandruff shampoos,skincare products, deodorants, mosquito repellents, detergent and so on.. 8.Repression: The suppressed needs sometimes emerge in an indirect manner (Frustration by forcing the need out of their conscious mind) Slide 23: Arousal of motives The arousal of any particular set of needs at a specific moment in time may be caused by internal stimuli found in the individual’s physiological condition,by emotional or cognitive processes or by stimuli in outside environment. 1.Physiological Arousal Bodily needs at any one specific moment in time are based on the individual physiological condition at the moment. Slide 24: Ex..A drop in blood sugar level or stomach contractions will trigger awareness of a hunger need. Ex..A decrease in body temperature will induce shivering,which makes individual aware of the need for warmth this type of thing, they arouse related needs that cause uncomfortable tensions until they are satisfied. Ex..Medicine,low fat and diet Slide 25: 2. Emotional Arousal Sometime daydreaming results in the arousal (autistic thinking) or stimulation of latent needs.People who are board or who are frustrated in trying to achieve their goals or often engage in daydreaming, in which they imagine themselves in all sorts of desirable situations. Ex..A young woman who may spend her free time in internet single chat room. Slide 26: 3.Cognitive arousal Sometime random thoughts can lead to a cognitive awareness of needs.An advertisement that provides reminders of home might trigger instant yearning to speak with ones parents. 4.Environment arousal The set of needs an individual experiences at particular time are often activated by specific cues in the environment.Without these cues the needs might remain dormant.ex..The 8’o clock news, the sight or smell of bakery goods,fast food commercials on television, all these may arouse the need for food Ex..New cell phone model display in the store window.. :  Types and Systems of Needs. Psychologists have been interested in the study of human behavior so as to understand the human needs or motives which influence their behavior.Professor Daniel starch (1923) had presented a list of forty four human motives.. Appetite,love,health,sex,parental affection,ambition,taste,cleanliness,home comfort,economy,competition,cooperation,managing others,style,humor,fear ..ect.. Slide 28: Psychologist Henry Murray(1938) had prepared a list of 28 psychogenic needs. Murray had suggested that every person has the same basic set of needs but they have different ways of ranking these needs on priority basis. Murray’s basic needs include many motives that are assumed to play an important role in consumer behavior such as acquisition, achievement,recognition, contrarience, aggression,rejection,protect the helpless,sympathy. :  Maslow’s Hierarchy of Human needs Self-actualization Ego needs Social needs Safety and Security needs Physiological needs Slide 31: Dr.Abraham Maslow, a clinical psychologist, Formulated theory of Human motivation based on hierarchy of human needs. Five basic level of human needs which rank in order of importance from lower-level (biogenic) needs to higher level (psychogenic) needs. The theory postulates that individuals seek to satisfy lower level need is “fairly well” satisfied, a new (and higher) need emerges that the individual in motivated to fulfill.when this need is satisfied again a new (and a still higher)need emerges and so on. Slide 32: 1.Physiological needs (Basic level of human needs),air, water,shelter,clothing,sex-all the biogenic needs listed as primary needs.For many people in this country, the biogenic needs are generally satisfied and higher level needs are dominant. Ex..Medicine, low fat and diet products Ex..Kellogs cereal rich breakfast provides you with a cereal rich food. Slide 33: Safety needs and security needs Ex..saving accounts, insurance policies, home security system, education and vocational training.. Ex..Indane gas ad—safety begins at home.. Ad cautions the consumer to be aware of the importance of safety and security needs. Ex..GIC provides you with housing loan at reasonable rates Slide 34: 3.Social needs This includes such as love,affection, belonging and acceptance.People seek warms and satisfying human relationships with other people and are motivated by love for their families.People give importance of social motives in our society, advertisers of many product categories emphasis this appeal in their advertisements. Ex..All personal care and grooming products Like..cosmetics, mouthwash, shaving cream, most clothes. Ex..Ad of motorola mobile take care of an individual’s Social it helps you keep in touch with family and friends across various cities Slide 35: Ego needs When social needs are more or less satisfied, the 4th level of maslow’s theory become operative.These needs can take either on inward or an outward orientation, or both. Inwardly—Directed ego needs reflect an individual’s need for self acceptance, self esteem, success, independence and personal satisfaction with a job well done. Outwardly—needs for prestige, reputation, status and recognition from others. Ex.. High tech product, big car, expensive furniture, sound system. Slide 36: Need for self-actualization(self fulfillment) Most people donot satisfy their ego needs sufficiently to ever move to the fifth level. Individual desire to fulfill his / her potential. Ex..Research scientist may strive to find a new drug that eradicate cancer. ie physically challenging adventure Ex..Ads for athletic shoes based on a self actualization. So some companies use motivation-based promotion for their achievements in the work place. , : , Consumer Behavior and Marketing Management. Marketer trying to create the customer value chain Identify Customer needs Customer wants Induce Customer trial Customer’s Experience With the product Through ads And communication Proper Distribution And sales Offer individualised Products and brand Results in Customer Value and delight Slide 38: Difference in urban – rural consumers (their style,of living,consumption pattern,age and family life cycle,income level,education levels,linguistic and religion diversity,food habits,festivals etc. Marketers are trying to determine the underlying needs and motives of consumers as well as the various factors which influence the formation of these needs and satisfaction of these. Marketers are also trying to understanding the learning process adopted by consumers and buyers. Learning process can also be linked to other cognitive structures such as values(attitudes) and beliefs. Buying behavior is also influenced by other psychological concept such as perception, motivation and personality. Knowing all these concept will help marketers in the generation of NPD ideas and adopt customization for core product, some additional features and by offering of additional features and by offering of additional services…. Slide 39: The Measurement of motives Motives are hypothetical constructs—that is, they can not be seen or touched, handled, smelled or otherwise tangibly observed. For this reason, no single measurement method can be considered a reliable index. Instead researcher use qualitative techniques to try to establish the presence and or the strength of various motives. By using … 1.Behavioral data (Observation) 2.Subjective data (self-report) 3.Qualitative data (projective test, collage research etc..) Group discussion can yield more information than individual indepth interviews.but it is difficult to discuss in company or it may require very personal consideration. Consumer researchers feels they get valid information by using combination techniques instead using any one technique alone… Slide 40: Marketers can get deeper insights into many of the “whys” of consumer behavior Motivation research helps in It provides marketers with the basic insight into how to develop new products and working on how consumers will react to such product launches and then work out marketing programmes and advertising appeals accordingly. It enables marketers to understand “why” consumer accepted or rejected their products It helps marketers to devise suitable promotional techniques and suggest ways of presenting their products to public. Slide 41: The industrial or organisational markets consists of buyers who buy goods and services needed in the process of furthering their industrial and institutional activities. The diff between the domestic consumers and industrial buyers can be done on the basis of the ultimate objective sought by them. The domestic consumers seek need satisfaction and value added by the purchase of the product. The industrial buyers seek profit or measurement of improved operational efficiency. So by understanding of the CB will enable marketers to design effective marketing strategy and programmes. Slide 42: Motivational research Motivational research attempts to discover underlying feelings, attitudes and emotions concerning product, service or brand use because consumer are not always aware of the reason for their this research is necessary to take consumers subconscious or hidden motivation. Slide 43: Development of motivational research Sigmund Freud’s psychoanalytical theory of personality provided the foundation for the development of motivational research.This theory was built on the premise that unconscious needs or drives especially biological and sexual drives –are at the heart of human motivation and personality. Dr.Ernest Dichter, a psychoanalyst adapted Freud’s techniques to the study of consumer buying habit. Slide 44: Up to this time, marketing research had focused on what consumer did (ie quantitative, descriptive studies) Dichter used Qualitative research methods to find out why they did it?. Slide 45: Consumer Modelling The primary concern is to use the models to understand consumer behaviour . Consumer behaviourists as well as marketers are interested in understanding how and why certain decisions are made. The discussions have been about some of the important models of consumer behaviour, which attempts to give a comprehensive view of all those aspects of the buying situation Engel, Kollat, and Blackwell (EKB) Model : Engel, Kollat, and Blackwell (EKB) Model The EKB model is a multimediation model which shows both the components of decision making and the multiples relationships and interactions among the components. It identifies five distinct aspects of consumer decision making: Input, information processing, a decision process, decision process variables, and external influences Input : Input It includes all kinds of stimuli from our contact with the world around us: Our experiences, contact with others, the marketplace Marketer-controlled stimuli (e.g., advertising) Other stimuli (e.g., personal recollections, conversations with friends) Information Processing : Information Processing Stimuli are processed into meaningful information Five methods of information processing are: Exposure Attention Comprehension Yielding Retention Decision Process : Decision Process It is triggered at any time during information processing It consists of five steps: Problem recognition Search Alternative evaluation Choice Outcomes (dissonance, satisfaction) Decision Process Variables : Decision Process Variables Decision process variables include: Motives Beliefs Attitudes Lifestyles Intentions Evaluative criteria Other aspects of self External Influences : External Influences They are comprised of all circles of influence such as family, peer groups, cultures, and subcultures Slide 52: Infor/ I/p Inform/processing Decision process Productt brand Motivating Internal stages evaluation Influences Env/influ EBK MODEL Stimuli Mass Personal General Marketer dominated attention retention search Info/exp satisfaction dissonance beliefs Prb/reg search alternative choice outcomes eva attitude intention exposure motives Personality Life style Normative compliance Cul norms values Group,family Anti cir Unanti cir Slide 53: The EBK Model has taken into consideration a large number of variables which influences the consumer. This model has also emphasised on the conscious decision making process adopted by a consumer. This model is easy to understand and flexible, that is recognises that a consumer may not go through all the steps always.This is because in case of repeat purchases the consumer may bypass some of the steps. ‘’’’ : ‘’’’ Economic model Buying decision governed by the concept of utility --purchasing power --a set of needs --a set of product to choose Model based on 1.price effect 2.substitution effect 3.Income effect Slide 56: Learning model 1.Acquired knowledge 2.Actual experience 3.Cues 4.Favorable image 5.Stimulus-response theory. Slide 57: Psychoanalytical theory -Human needs motive operated at the conscious as well as subconscious level -deep-seated motives -Buyers has a private world with all his hidden fears, suppressed desires and totally subjective longings. Freud proposed that the human personality consists of three interacting system Gratification ID EGO Super ego Slide 58: Structural Model (id, ego, superego) According to Freud, we are born with our Id.  The id is an important part of our personality because as newborns, it allows us to get our basic needs met.  Freud believed that the id is based on our pleasure principle.  In other words, the id wants whatever feels good at the time, with no consideration for the reality of the situation.  When a child is hungry, the id wants food, and therefore the child cries The id is responsible for our basic drives such as food, sex and aggressive impulses, and demands immediate satisfaction The prime motive of the id is self-survival, pursuing whatever necessary to accomplish that goal. Slide 59: Ego -Individual conscious control -Individual self-concept -Operates on what is called reality principle. -self-image…high tech product Within the next three years, as the child interacts more and more with the world, the second part of the personality begins to develop.  Freud called this part the Ego.  The ego is based on the reality principle.  The ego understands that other people have needs and desires and that sometimes being impulsive or selfish can hurt us in the long run.  Its the ego's job to meet the needs of the id, while taking into consideration the reality of the situation Slide 60: Super ego -Internal representation of what is approved by the society. -Define what is right and good -It influences the individual to strive for perfection -The Superego is the moral part of us and develops due to the moral and ethical restraints placed on us by our caregivers.  Many equate the superego with the conscience as it dictates our belief of  right and wrong. Slide 61: Sociological Model Intimate group Peer group Informal opinion leader Income level Occupation Place of residence Buying decision governed by Utility Follow and fit in with his immediate environment Societal compulsion Class image, Branded product Prestige Shop area Howard sheth model : Howard sheth model Slide 63: Inputs (stimuli)  significativeThe 'real' (physical) aspects of the product or service  symbolicThe ideas or images attached by the supplier  socialThe ideas or images attached to the product by society, such as reference groups.  Outputs  The consumers actions Slide 64: Constructs  perceptualObtaining and handling information about the product or service.  learningThe process of learning leading to the decision itself Slide 68: These Four motivation strategies can help your organization succeed - one professional at a time.. 1. Get Excited! 2. Hire Motivated Professionals 3. Measure 4. Institute Profit Sharing

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