Consumer Behavior Consumer Motivation

OBJECTIVES u Motivation is? u Theories of motivation? u What are consumer risk avoidance issues?

Classic Theories of Motivation u Abraham Maslow’s concept of need hierarchy u Sigmund Freud’s concept of drives

Abraham Maslow u University of Wisconsin - BA in 1930, MA in 1931, PhD in all in psychology. u Maslow noticed that some needs take precedence over others. u The “Hierarchy of Needs” was published in 1943.

MASLOW’S HIERARCHY OF NEEDS Human Development Physiological

The Physiological Needs are the most simple things we need to survive: oxygen, water, protein, salt, sugar, other minerals and vitamins, the need to be active, to rest, to sleep, to get rid of wastes, to avoid pain.

Physiological Needs Even within these needs there is a hierarchy. For example, water is more important than food.

MASLOW’S HIERARCHY OF NEEDS Human Development e.g., Security, shelter, protection Safety

Safety Needs come into play when the physiological needs are largely taken care of.

These needs force us to find or create a safe environment for ourselves. This will provide protection, stability, and structure.

MASLOW’S HIERARCHY OF NEEDS Human Development Social e.g., Love, friendship, acceptance

MASLOW’S HIERARCHY OF NEEDS Human Development Esteem/Ego

Ego needs Self-esteem Achievement Mastery Independence Status Dominance Prestige (Can you see the stupidity of this ad?)

MASLOW’S HIERARCHY OF NEEDS Human Development Self Actualization e.g., self fulfillment, enriching experiences

Self- Actualization Greater Acceptance of themselves Greater Spontaneity Independence Resistance to conformity

MASLOW’S HIERARCHY OF NEEDS Human Development Self Actualization Esteem Social Safety Physiological Individuals turn to goods and services to satisfy many of their needs.

Maslow and Marketing u Market Segmentation - Advertisers use the hierarchy to focus their appeals on a need level that is likely to be shared by a large portion of the target audience. u Product Positioning - The hierarchy is a tool used to identify unsatisfied needs and to tailor a product’s message to that need in a way that the competitor has not done.

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Classic Theories of Motivation u Sigmund Freud’s concept of drives

FREUD Human behavior stems from a fundamental conflict between a persons desire to gratify his/her physical needs and the necessity to function as a responsible member of society.

Freud’s Psychoanalytic Theory id, superego & ego Interplay between biological forces (id), societal forces (superego) and human consciousness (ego)

Freud’s Psychoanalytic Theory The ID 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. 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. When the child is uncomfortable, in pain, too hot, too cold, or just wants attention, the id speaks up until his or her needs are met.

Freud’s Psychoanalytic Theory The EGO Functions with the rational part of the mind. The Ego develops out of growing awareness that you can’t always get what you want. The Ego realizes the need for compromise and negotiates between the Id and the Superego. The Ego's job is to get the Id's pleasures but to be reasonable and bear the long-term consequences in mind.

Freud’s Psychoanalytic Theory The SUPEREGO The last component of personality to develop is the superego. The superego is the aspect of personality that holds all of our internalized moral standards and ideals that we acquire from both parents and society--our sense of right and wrong. The superego provides guidelines for making judgments. According to Freud, the superego begins to emerge at around age five.

The Motivation to Avoid Risk Perceived risk is a consumer’s perception of the overall negativity of a course of action based upon 1) an assessment of the possible negative outcomes and 2) the likelihood that those outcomes will occur.

7 Types of Consumer Risks. u Financial u Performance u Physical u Psychological u Social u Time u Opportunity Loss

Six risk-reduction strategies are: Be brand loyal and consistently purchase the same brand. Buy through brand image and purchase a quality national brand. Buy through store image from a retailer that you trust. Seek out information in order to make a well informed decision. Buy the most expensive brand, which is likely to have high quality. Buy the least expensive brand in order to reduce financial risk.

Create an Ad Campaign u Maslow’s, Sigmund Freud’s & 7 Types of Consumer Risks Marketing Campaign Worksheet.