Motivation1

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Consumer Motivation


Consumer MotivationRepresents the drive to satisfy both physiological and psychological needs through product purchase and consumption



Gives insights into why people buy certain products



Gives insights into why people buy certain products

Stems from consumer needs: industries have been built around basic human needs


Types of Consumer Needs

Physiological Needs

Fundamental human needs, including food, water, and sleep



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


Safety and Health Needs



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


Love and Companionship



Need for Financial Resources and Security

A need that includes others important to the individual


Need for Financial Resources and Security



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


Social Image Needs



Need for Pleasure

Products, services, and consumption activities provide fun and excitement


Consumers’ Need for Pleasure

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Need to Possess

Consumers often acquire productssimply because of their need to ownsuch products— e.g., collectors



Need to Possess

Consumers often acquire productssimply because of their need to ownsuch products— e.g., collectors

Plays a role in impulse buying:where consumers unexpectedlyexperience a sudden and powerfulurge to buy something immediately


Consumers’ Need to Possess



Need to Give

Give something back to others or reward ourselves

Self-gifts let us motivate, reward, and console ourselves



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



Need for Variety

Marketers may introduce different versions of original brand

Variety may become focus of product positioning


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: behavior has both positive and negative consequences



Resolving motivational conflicts requires prioritizing needs

Maslow’s hierarchySome 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 IntensityMotivational intensity: how strongly consumers are motivated to satisfy a particular need

Depends on need’s importance


Motivational IntensityMotivational 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


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


Unconscious Motivation


Motivating ConsumersMotivating 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 with Money


Motivating ConsumersProvide Other Incentives

Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase


Motivating with Other Incentives


Motivating ConsumersProvide 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 ConsumersImplement 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


Participation in Loyalty Programs


Motivating ConsumersEnhance 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


Informing Consumers of Their Risks


Motivating ConsumersArouse 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


Arousing Curiosity


Theory X and Theory Y

• Douglas McGregor proposed two distinct views on human beings:

• Theory X- Employees inherently dislike work and hence would avoid it. They need to be coerced, controlled through rewards/punishment to do work. They place security above other factors.

• Theory Y- Employees view work as natural as rest and play. They are self-directed and have self control and commitment. They accept, even seek responsibility. They are creative and have the capacity to stretch.


Motivation-Hygiene Theory• Fredrick Herzberg, a psychologist, raised two questions when

studying human beings:– What do people seek from their jobs?– Could they describe in detail, situations in which they feel

exceptionally good or bad about their jobs?• The findings of the study revealed that the replies/reasons

given by them when they felt good were significantly different from the ones given when they felt bad.

• When they felt good. They attributed it to themselves or intrinsic conditions.

• It was interesting to know that the opposite of satisfaction was not dissatisfaction.

• Removing or minimizing dissatisfaction did not necessarily make the jobs satisfying.

• Herzberg proposed the presence of a dual continuum: The opposite of “satisfaction” is “no satisfaction” and the opposite of dissatisfaction” is “no dissatisfaction”


• He proposes two factors: Hygiene factor and motivation factor.

• Hygiene factor is that whose presence is essential as a basis for motivation. The presence of Hygiene factor does not motivate, but the absence “quite” demotivates. For example: decent working conditions.

• Motivation factor is that whose is essential as the core of motivation. In spite of presence of hygiene factor, motivation factor need to be introduced. For example: a decent working condition does not demotivate. It needs to be added up with factors such as monetary or non monetary means to make satisfaction happen.

• Hygiene forms the background before motivation is introduced


Contemporary Theories of Motivation

• Three- Needs Theory

• David McClelland proposed three major relevant motives or needs at the workplace:

– The need for Achievement – n- Ach: the drive to achieve and excel and succeed.

– The need for Power – n – Power: the drive or need to control other and situations.

– The need for Affiliation – n- Affiliation: the need to belong and be a part of a group.


Goal – Setting Theory

• When goals are set clearly, it has been observed to be a source of motivation.

• With goal clarity emerges a comfort zone within the individual leading to motivation.

• In other words, many people seem unaware or not sure of their goals. When they are directed to a goal with clarity, they get motivated.

• This is particularly seen to be the case at the operational level of working in organizations. By helping them set their own goals, they are seen to feel higher motivation than before.


Reinforcement Theory

• Behaviors that are needed for a certain goal achievement are encouraged and those are not needed or detrimental for the goal achievement is discouraged.

• Positive Reinforcement – encouraging behaviours that are needed. This is done through Rewards.

• Negative Reinforcement – discouraging unwanted behaviours from occurring. This is done through punishment.

• This theory is also called as Reward – Punishment Theory of Motivation.

• It is applied throughout our workplace at all levels.


Equity Theory• Proposed by Stacy Adams, this theory is based on the fact that

people compare each other either blatantly or latently.• The comparison is more pronounced at the workplace since

work gives people an identity and importance socially.• Employees naturally compare the work they do and the

rewards they get with the work done by others and the rewards others get.

• This comparison usually results in a feeling of inequity or inequality, resulting in “bad emotions” which could rob the employees of motivation.

• Adams proposed that the inequity should be removed and converted into equity, or a feeling of wellness or feel-good.


Expectancy Theory• This theory proposed by Victor Vroom, is based on how the

strength of a tendency to get motivated is dependent upon expectations and outcomes.

• It includes three variables: Attractiveness, Performance-reward linkages, Effort-Performance linkages.

• When a task is perceived attractive the individual feels it is worth it to put in efforts to perform. This is known as first-level outcome.

• When the performance leads to expected results and rewards, he puts in more efforts, leading to better performance and better results. This is known as second level outcome

• Motivation is said to occur highest when all three factors are at their peak: attractiveness. Performance-reward linkage, effort-performance linkage.

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