CONSUMER MOTIVATION BY DR S SENA SENIOR LECTURER BUSINESS STUDIES DEPT

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

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

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

Types of consumer needs Need for pleasure: Products, services and consumption activities provide fun and excitement

Types of consumer needs 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

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

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

Motivational conflict and 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: behaviour has both positive and negative consequences

Motivational conflict and need priorities Resolving motivational conflicts requires prioritising 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 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 Involvement: degree to which an object or behaviour is personally relevant Motivational intensity and involvement determine amount of effort consumers exert in satisfying needs

The challenge of understanding consumer motivation Reasons underlying consumer motivation are not always ‘obvious’ Research is necessary to discover real motivations behind behaviours 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

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 Price reductions may increase price sensitivity

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)

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

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

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