1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Csr 331 Consumer Behavior Summer 2014

2. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Csr 331 Consumer Behavior Summer 2014

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Csr 331 Consumer Behavior Summer 2014

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Physiological Needs Fundamental human needs, including food, water, and sleep Csr 331 Consumer Behavior Summer 2014

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs Threats to our safety and health motivate purchases for personal security and protection Csr 331 Consumer Behavior Summer 2014

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Safety and Health Needs 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 Csr 331 Consumer Behavior Summer 2014

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Safety and Health Needs Csr 331 Consumer Behavior Summer 2014

10. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Humans are social creatures who need to experience and express love and companionship Csr 331 Consumer Behavior Summer 2014

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Love and Companionship Services and products help individuals find and attract others Products are often used as symbols of love and caring Csr 331 Consumer Behavior Summer 2014

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Love and Companionship Csr 331 Consumer Behavior Summer 2014

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Financial Resources and Security A need that includes others important to the individual Csr 331 Consumer Behavior Summer 2014

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs 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 Csr 331 Consumer Behavior Summer 2014

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Social Image Needs Csr 331 Consumer Behavior Summer 2014

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Pleasure Products, services, and consumption activities provide fun and excitement Csr 331 Consumer Behavior Summer 2014

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Need for Pleasure © SETH WENIG/Reuters/Landow Csr 331 Consumer Behavior Summer 2014

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Csr 331 Consumer Behavior Summer 2014

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Need to Possess Csr 331 Consumer Behavior Summer 2014

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need to Give Give something back to others or reward ourselves Self-gifts let us motivate, reward, and console ourselves Csr 331 Consumer Behavior Summer 2014

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Needs Need for Variety Marketers may introduce different versions of original brand Variety may become focus of product positioning Csr 331 Consumer Behavior Summer 2014

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and Need Priorities Satisfying a need often comes at the expense of another need—these trade-offs cause motivational conflict Csr 331 Consumer Behavior Summer 2014

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and 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 Csr 331 Consumer Behavior Summer 2014

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Conflict and 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 Csr 331 Consumer Behavior Summer 2014

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Maslow’s Hierarchy of Needs Csr 331 Consumer Behavior Summer 2014

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivational Intensity Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Csr 331 Consumer Behavior Summer 2014

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

33. The Challenge of Understanding Consumer Motivation Csr 331 Consumer Behavior Summer 2014

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Unconscious Motivation Csr 331 Consumer Behavior Summer 2014

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Csr 331 Consumer Behavior Summer 2014

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Motivating with Money

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Money Csr 331 Consumer Behavior Summer 2014

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Provide Other Incentives Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase Csr 331 Consumer Behavior Summer 2014

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating with Other Incentives Csr 331 Consumer Behavior Summer 2014

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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) Csr 331 Consumer Behavior Summer 2014

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Participation in Loyalty Programs Csr 331 Consumer Behavior Summer 2014

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Enhance Perceived Risk Csr 331 Consumer Behavior Summer 2014

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers 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 Csr 331 Consumer Behavior Summer 2014

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Informing Consumers of Their Risks Csr 331 Consumer Behavior Summer 2014

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Motivating Consumers Arouse Consumers’ Curiosity Csr 331 Consumer Behavior Summer 2014

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Csr 331 Consumer Behavior Summer 2014

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Arousing Curiosity Csr 331 Consumer Behavior Summer 2014