1. Consumer Motivation By Kaustubh Pal

2. What is Motivation? Motivation refers to an activated state within a person that leads to goal-directed behavior. –It consists of the drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior. Motivation begins with the presence of a stimulus that spurs the recognition of a need. Need recognition occurs when a perceived discrepancy exists between an actual and a desired state of being –Needs can be either innate or learned. –Needs are never fully satisfied. –Feelings and emotions (I.e., affect) accompany needs

3. Motivation process Unfulfilled needs, wants and desires BehaviourGoal or need fulfillment Thinking Tension Drive Learning

4. Human needs or Motives Daniel Starch’s Advertising Appeals: –Taste –Hunger –Sex –Body comfort –Physical Activity –Curiosity –Health –Personal appearance –Rest and sleep –Home comfort –Play-sport –Love of offspring –Parental affection –Safety –Economy –Pleasure –Cleanliness –Protection for others –Managing others –Construction –Style –Humour Ambition Respect for deity Approval of others Gregariousness Efficiency Teasing Possession Shyness Co-operation Respect for others Domesticity Social distinction Hospitality Devotion to others Warmth Courtesy Imitation Coolness Fear and caution Manipulation Amusement Competition

5. Maslow’s Need Hierarchy Physiological Needs: Basic needs Safety and security needs Love and Belongingness Social Needs Self Actualization needs

6. McClelland’s Theory of Learned Needs –Achievement motivation is seeking to get ahead, to strive for success, and to take responsibility for solving problems. –Need for affiliation motivates people to make friends, to become members of groups, and to associate with others. –Need for power refers to the desire to obtain and exercise control over others. –Need for uniqueness refers to desires to perceive ourselves as original and different.

7. Opponent-Process Theory This theory explains that two things occur when a person receives a stimulus that elicits an immediate positive or negative emotional reaction: –The immediate positive or negative emotional reaction is felt. –A second emotional reaction occurs that has a feeling opposite to that initially experienced. –The combination of the two emotional reactions results in the overall feeling experienced by the consumer. –Explains addictive behaviors –Explains priming—the effects of a small exposure to a stimulus.

8. Optimum Stimulation Level It is a person’s preferred amount of physiological activation or arousal. –Activation may vary from very low levels (e.g. sleep) to very high levels (e.g. severe panic). –Individuals are motivated to maintain an optimum level of stimulation and will take action to correct the level when it becomes to high or too low. –Accounts for high vs. low sensation seeking people. –Accounts for variety seeking –Accounts for hedonic consumption—I.e., the need of people to create fantasies, gain feelings through the senses, and obtain emotional arousal.

9. The Motivation to Avoid Risk –Perceived risk is a consumer’s perception of the overall negativity of a course of action based upon as assessment of the possible negative outcomes and of the likelihood that these outcomes will occur. –Perceived risk consists of two major concepts - the negative outcomes of a decision and the probability these outcomes will occur.

10. 7 Types of Consumer Risks. Financial Performance Physical Psychological Social Time Opportunity Loss

11. Factors Influencing Risk Perception Characteristics of the person—e.g., need for stimulation Nature of the task –Voluntary risks are perceived as less risky than involuntary tasks. Characteristics of the product—price Salience of negative outcomes

12. Six risk-reduction strategies –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.

13. Managerial Applications of Motivation Positioning/differentiation: use discriminative stimuli distinguish one brand from another. Environmental analysis: identify the reinforcers and punishers that impact consumers; identify factors that influence risk perception. Market research: measure motivational needs (e.g., McClelland’s needs and need for arousal), measure risk perception. Marketing mix: use motivational needs to design products (e.g., safe cars) and to develop promotional strategy that meets needs. Develop messages to influence consumer attributions. Use in-store promotions to prime consumers. Segmentation: Segment market based upon motivational needs.

14. Ford Case Study: