Consumer Behaviour: Motivation - Term Paper Example

Consumer Behaviour: Motivation Introduction Consumer behaviour is an important that is studied by many during their marketing There are many researchers who have worked on this subject and there are still many who continue to work on this issue. This subject mainly deals with the study of how people choose to buy a commodity. Additionally, it also analyses the factors such as what a consumer buys, when and why they buy it. This is a multidisciplinary issue that cannot be isolated from subjects such as psychology, sociology, sociopsychology, anthropology and economics. While it is important to measure the motivation of customers towards a product it is also important to understand the strategies used behind motivating customers by the companies. This paper intends to discuss and analyze the factors that motivate consumer behaviour and also looks at some of the theories related to consumer behaviour and motivation. It is not that simple to measure the motivation of people. The problems linked with measuring patterns of consumer behaviours have been recorded from the time when work into motivation research started during 1950s. From then on doubts or suspicion about the psychological measuring techniques were expressed. Besides, the practitioners were also warned against overdependence on these techniques and on their accuracy (Britt, 1954; Britt, 1955). Consumer behaviour and their motivation to purchase a product has been a subject of interest for many but measuring the emotions behind such a purchase has been a very difficult task. Several times the scientists who study these aspects found it very hard to choose among objective performance factors and subjective emotional factors that results in consumers purchase decision. For example, an individual may sometimes misguide or project false reasons for purchase due to a fear that he may expose himself in an unfavourable manner. Take for example if a customer purchased an expensive item such as gold or diamonds without paying tax, he/she may hide the facts. Studies point out that some times consumers may give reasons which seem to be socially acceptable (Engel, 1961). Today, with the increase in market competition, it becomes even more important to measure motivation. In fact, such kind of measuring studies will also help in improving brands based on the requirement of customer. There are several theories proposed by various researchers. For instance, the Means-end chain theory was developed in the late 1970s and early 1980s. This theory seeks to understand how consumers make links between products and self-relevant consequences and values (Le Page, et al. 2005). However, this theory could not reasonably progress without a proper measurement technique which could lodge both concrete and abstract dimensions. In 1984, Reynolds and Gutman projected the laddering theory. This theory is an extension of the repertory grid analysis developed by Kelly in the 1950s and presents a productive framework for developing an appropriate interviewing and analysis methodology. In this theory the term “laddering refers to an in-depth, one-on-one interviewing technique which is mainly used to develop an understanding of how consumers translate the attributes of products into meaningful associ­ations with respect to self, fol­lowing Means-End Theory” (Gutman, 1982). Stages of the Consumer Purchase Before we get into the details of consumer behaviour it is important to understand the steps taken by a consumer to make a purchase. In general, for any kind of purchase there are six stages to the Consumer Buying Decision Process. It is important to realize that the actual purchasing is only one stage of the process and not all decision processes end up in a purchase. Besides, it is also important to realize that it is not necessary for all the purchases to follow all the 6 stages. However there can be some exceptions: Stage 1: Problem recognition or in other words awareness of need—this is the stage that represents the time when the consumer realizes the need for a certain product. For example, when a person is thirsty, he thinks of drinking some thing. But this kind of thought can easily be stimulated through advertisements. Therefore it can be said that consumers get motivated to buy a product after watching an advertisement. For instance, children are often attracted by the advertisements of ice creams, cakes, chocolates and other items. In other words when a person recognizes his/her need to the product, they try to fulfil it. Stage 2: Information search— Once a person realizes the need for an item, then the second immediate step would be to find out more information about the item. This can be done through internal search, memory, print and visual media, friends and relatives, word of mouth, marketer dominated sources, comparison shopping, public sources etc. A successful information search leaves a buyer with possible alternatives or in other words different brands of the same product. Stage 3: Evaluation of Alternatives—Once a set of alternatives are present it is time for evaluation of each of them. Hence there is a need to establish criteria for evaluation, features the buyer wants or does not want. The customer based on the criteria for evaluation rank or weight alternatives. If the customer is not satisfied then they resume search. For example, if the customer wants to eat something spicy, then the Indian food gets highest rank. If not satisfied with the choices then return to the search phase to find another restaurant. Look in the yellow pages or internet etc. Information from different sources may be treated differently. Stage 4: Purchase decision—The fourth step is the stage when the final decision is made. Choose buying alternative, includes product, package, store, method of purchase etc. Stage 5: Purchase--May differ from decision, time lapse between stage no 4 and 5, product availability. However, this is one of the most important stages in the process. Stage 6: Post-Purchase Evaluation—This is the stage of outcome that can be either satisfaction or dissatisfaction. For example, if the Indian food was very delicious, the customer will be satisfied but if it was not up to the expectation of the customer, then the customer might be dissatisfied and will be reluctant to go to the same restaurant the next time (udel.edu, N.D.). Nature of motives One of the important factors that affect the consumer behaviour is the nature of motives that varies among the consumers. For instance, motives may be clear, hidden, and multiple. Some motivations are publicly expressed for instance the desire to buy an energy efficient car, on the other hand motives such as the desire to look wealthy by buying a fancy car. Individuals may also hold multiple motivations while making a purchase (Perner, N.D.). Communication and its impact on consumer behaviour Communication is a factor that has its role in motivating consumers. In todays global business environment, communication is the most important and a more complex subject. Good communication is the core to all business opportunity. Effective business communication plays a vital role in profitability. Business communication is a major subject in many of the management studies. It encompasses a variety of topics such as Marketing, Branding, Customer Relations, Consumer Behaviour, Advertising, Public Relations, Media Relations, Corporate Communication, Community Engagement, Research & Measurement, Reputation Management, Interpersonal Communication, Employee Engagement, Online Communication, and And Event Management. Each of these topics is linked to the basic idea of effective communication. Business communications is not just a simple subject for management studies but it involves a whole range of pre- and post-sale communications, including welcome kits, account statements, invoices, applications, policies, manuals, customer educational materials, announcements of changes in terms and much more (Lundy 2-11). Communication is an important tool for motivation, which can improve morale of the employees in a business environment. Advertising and its impact on consumer behaviour Human beings are consumers of various goods from the birth until their death. Earlier, producers did not give much attention in popularizing their products through advertisements, thinking that people who require their products will automatically run towards buying these products. However, today due to the increasing competitions several strategies have evolved through the years to promote products more effectively to a wide range of consumers. Today advertising has become the most common subject and has become an inevitable part of product promotion. Advertising is the promotion of goods, services, companies and ideas, usually in a popular media. Advertisements are placed in popular Medias like newspapers, magazines, schools, and on billboards everywhere. It is used to convey availability of a product which can be a physical product, a service, or an idea and to provide information regarding the product which can stimulate demand for the product. Stimulating the demand is one of the main objectives of advertising and has serious impact on the consumer behaviour and their motivation to make a purchase. Earlier ‘word of mouth’ was the most popular way of advertisements, today with the intervention of media and internet, advertisement has become an easy and popular mode of providing information. Advertising has different effects on people, it changes their prospective on what is, and what is not, worth buying, what they buy and when they buy it. Advertising affects people in what they do and how they do it. Advertising alone, however, does not get customers. It simply catches consumers’ attention, gets them to walk up to a shelf, and make an impulsive purchase. Consumer motivation is also dependent on the marketing techniques used. In other words marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more. Marketing activities and strategies result in making products available that satisfy customers while making profits for the companies that offer those products (Bellis, 2006). Marketing covers a range of aspects such as advertising, public relations, sales, and promotions. There is a common confusion between sales and marketing, when in fact the two are very different. The former involves getting a product or service into the market, promoting it, influencing behaviour, and encouraging sales. Sales are the actual transaction of getting a product or service into the hands of the customers. Companies without a marketing mindset and proper strategies are at a disadvantage in todays business world. Particularly those companies that are centered on their products and do not concentrate on their customers, are doomed to fail. Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Promotional strategies are another important aspect of marketing (Bellis, 2006). Theories of Customer Motivation Maslows hierarchy of needs: This theory is named after Abraham Maslow. He proposed the hierarchy of needs which is a theory in psychology proposed in 1943. This theory hypothesized that in every human being there is a hierarchy of five needs: 1. Physiological 2. Safety 3. Social 4. Esteem 5. Self actualization However, one of the most important points noted by many from this theory is that we can expect different people in different situations to be motivated in different ways and toward different goals depending on individual’s requirements (SyKronix.net, N.D.). McClellands Three Needs Theory According to this theory all of us are motivated by a number of certain basic needs, and that some of us are motivated more strongly by some of these needs than by others (courses.psu.edu, N.D.). The motivation factor differs from person to person. “nACH: this represents the need for achievement: compulsion to excel: drive to achieve in relation to a set of standards; to need to succeed. nPOW: this represents the need for power: the want to make others behave in a way that they would not have behaved otherwise. nAFF: this represents the need for affiliation: the desire for friendly and close interpersonal relationships” (courses.psu.edu, N.D.). Conclusion Consumer behavior is an essential and complex subject that needs to be studied in order to be successful in marketing. There are a number of intrinsic factors that influence consumer behavior including perception, motivation and learning. Additionally, other factors that influence consumer purchasing decisions and buying behavior include personal, social, and situational issues. It is also possible that factors such as age, income, family status, and chosen lifestyle are linked to the types of products people buy and the precise brands they select. Satisfying the customer by providing good service is an easy way to increase publicity. Good customer service means putting the needs of the customer first. In organizations that stress good customer service this should be a main aim of all staff. Maintaining product database, customer database, customer charters, corporate image, customer feedback system, regular updating of customer records, will go a long way but understanding the consumer behaviour and will help the marketing representatives to sell the products easily. References Bellis, M. What is Marketing? (2006) About, Inc., [Online] Available from [Accessed on 17 February 2008]. Britt, Stuart Henderson (1954), Why Its Best to Use Combination Research, Printers Ink, October, 60B66. Britt, Stuart Henderson (1955), Four Hazards of Motivation Research: How to Avoid Them, Printers Ink, June, 40B48. courses.psu.edu, (N.D.). Project Management: Motivation and Personality- McClellands Three Needs Theory, [Online] Available from [Accessed on 17 February 2008]. Engel, J.H. (1961), Motivation Research B Magic or Menace? Michigan Business Review, 13 (March), 28B32. Gutman, Jonathan (1982), A Means-End Chain Model based on Consumer Categorization Processes, Journal of Marketing, 46 2 60B72. Le Page, A., Cox D.N., Georgie Russell C. and Leppard P.I. (2005) Assessing the predictive value of means-end-chain theory: an application to meat product choice by Australian middle-aged women. Appetite. April 44(2):151-62. Lundy, P. (2006) Communication Engineering: A Scientific Approach to Customer Communications. Xerox Global Services, December, pp 2-11. Perner, L. (N.D.) Consumer Behavior: The Psychology of Marketing, [Online] Available from [Accessed on 16 February 2008] Reynolds, Thomas J. and Jonathan Gutman (1988), Laddering Theory, Method, Analysis and Interpretation, Journal of Advertising Research, February/March, 11B31. SyKronix.net (N.D.) Motivation, [Online] Available from [Accessed on 16 February 2008]. udel.edu, (N.D.) Chapter 6: What is Consumer Buying Behavior? [Online] Available from [Accessed on 16 February 2008] Read More