Unit-III

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Concepts such as motivation and

personality; perception; learning; values, beliefs and attitudes; and lifestyle are useful for interpreting buying processes and directing marketing efforts.

Motivation

Motivation is the energizing force that causes behaviour that satisfies a need.

An individual consumer may purchase an item that they believe will further the own goals or will satisfy a need they have. For example, a shopper may stop at the mall food court because they are hungry, and may select a salad to eat because they believe it will help them achieve weight loss or a healthier lifestyle

Define Motivation

Motivation can be defined as the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

The following are the three key elements in this definitions :

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Consumer Motivation  Motivation is an inner drive that reflects goal-directed arousal. In a consumer behaviour context, the result is a desire for a product, service, or experience. It is the drive to satisfy needs and wants, both physiological and psychological, through the purchase and use of products and services Five stages of the motivation process:  Need  Drive (force) Want or desire  Goal (purpose) Behaviour(action)

Behavioural Models of Motivation Abraham  Maslow’s  “Need Hierarchy  Theory”:

Maslow’s Hierarchy of Needs

Self-

actualization

Esteem

Belongingness

Security

PhysiologyFood

Achievement

Status

Friendship

Stability

Job

Friends

Pension

Base

NEEDSGeneral Examples Organizational Examples

jobChallenging

title

at work

plan

salary

Types of Motivation

Positive Motivation(Financial and non Financial )

Negative motivation

The Dynamic Nature of Motivation

Needs are never fully satisfiedNew needs emerge as old needs are satisfied People who achieve their goals set new and

higher goals for themselves

Arousal of MotivesThe arousal of any particular set of needs at a

specific moment in time may be caused by internal stimuli found in the individual’s physiological condition, by emotional or cognitive processes or by stimuli in outside environment. 

Physiological arousalEmotional arousalCognitive arousalEnvironmental arousal

PerceptionPerception is the process through which the

information from outside environment is selected, received, organized and interpreted to make it meaningful to us.

According to S.P. Robbins, “Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.”

Factors that influence perception: 1) Factors in the perceiver

AttitudesMotivesInterestsExperienceExpectations 

2) Factors in the situationTimeWork settingSocial setting 

3)Factors in the targetNovelty (innovation)SoundsSizeBackgroundProximity(closeness)Similarity

Learning Define Learning Learning may be defined as “The

process of acquiring the ability to respond adequately to a situation which may or may not have been previously encountered, the favourable modification of response tendencies consequent upon previous experience; the process of acquiring insight into situation.”

According to E.R.Hilgar, “Learning is a relatively permanent change in behavior that occurs as a result of prior experience.”

Leaning theories

Classical conditioning-(e.g. Dog , bell, time,etc)Operant conditioning ((e.g. if you insert a coin in

coffee machine you can get coffee. You leant from past experience how to cause the environment to deliver a cup of coffee)

Social conditioning (the ability of individual by observing others. i.e. can leant from parents, peers, boss, etc.people gain elf confident when someone else do it than are simply told what to do)

Cognitive conditioning(people draw on their experience and use past learning as the basis for present experience)

What are the various Elements of LearningMotivationCues(indicator e.g.“ first step is the best

step” and base on time it varies)Response(choice of behaviour)Reinforcement(consequence i.e. support,back

up))  How learning Influences on Consumer

Behavior.Recognition and RecallCognitive Responses to AdvertisingAttitudinal and Behavioural Measures of

Brand Loyalty

Define Personality The term Personality has been derived from

Latin word “Personare” which means ‘to speak through’.

Personality is an individual’s characteristics response tendencies across similar situations.

According to Schiffman and Kanuk, “Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment.”

The Nature of Personality

Impact (force)Behaviours and ActionsPsychological and physiological(shaped by

environment i.e. life experience and our parents genetic)

Personality reflects Individual DifferencesPersonality is consistent(steady) and

enduring(long term)Personality can change

Personality Framework 

Significance of Personality

Differential FeaturesDifferential Emotional ReactionsDifferential Stress Handling

Theories of Personality

1) Type (individual are categorised depending on their physical characteristics e.g. age)

2)Trait(factor analysis and rating scale used, he will be describe himself about his attitude, feeling , etc and asked with other person to evaluate from what he knows about individual)

3)Psychoanalytic (comprises id, ego and super ego) (a hunger man can (relax) experience partial gratification of his hunger by imagining a delicious meal- id, ego- man cannot satisfy his hunger by eating image, reality must considered, super ego- judge whether an action is right or Wrong according to the standard of society,

4) Social learning (stresses on the change of behaviour through learning from several sources i.e. the person action in given situation according to specific characteristics of situation)

5) Humanistic (behaviour depends on how an individual perceives the world)

ATTITUDE

Definition Attitude is defined as a mental,

emotional or rational predisposition with regard to a fact, state, person or an object. In the context of consumer behaviour we are studying the attitude of buyers towards all the relevant attributes of a product or services as well as the marketer and market.

It is feeling or beliefs of an individual or groups of people.

Characteristics of Attitude The attitudes that have significant influence on an

individual’s behaviour & personality have certain characteristics. Attitude is formed on the basis of learning, knowledge, information, upbringing (education), thinking, lifestyle, experience, predisposition (tendency), belief, faith, outlook, communication, observation, etc. It can be good or bad, optimistic or pessimistic, positive or negative, broad or narrow friendly or unfriendly & so on. It may be consistent, may change with several external factors like time or environment, may be influenced or even can influence another attitude

Three components of attitude

ABC MODEL 1. Affective (feelings, sentiments and

emotions about some idea, person, event) 2. Behaviour (predisposition (tendency) to

get on a favourable or unfavourable evaluation of something)

3. Cognitive (beliefs, opinion, knowledge, or information held by individual)

Self and Self-Image

Self-image A person’s perceptions of his/her

selfPeople have multiple selves Different selves in different

situations

Different Self ImagesActual Self-Image

How you see your selfIdeal Self-Image

How you would like to see yourselfSocial Self-Image

How you think others see youIdeal Social Self-Image

How you would like others to see youExpected Self-Image

How you expect to be in the future“Ought-to” Self

The qualities that you think you should possess

Consumer Expectation.

Consumer Expectation may be defined as the desires or wants of the consumer.

These expectations are in most instances, different from what the customer gets in a real-life situation from the organization

Consumer Expectations and SatisfactionsConsumer expectations and satisfaction also impact

purchase decisions.Expectations are defined as beliefs about a

product’s or service’s attributes or performance at sometime in the future and are a key determinant of satisfaction.

Consumer Expectation + Lower customer service = Dissatisfaction.

Consumer Expectation+ Equal customer service= Satisfaction

Consumer Expectation + Higher customer service= Delighted Satisfaction

The Issues relating to Consumer Expectation.

Knowledge and Expectation of Consumer.Level of ExpectationCustomer SatisfactionPerformance Significantly below ExpectationsExceeding ExpectationsComponents of Expectations

Define Consumer Satisfaction Customer Satisfaction is the attitude-like feeling of

a customer towards a product or service after it has been used.

It is generally described as the full meeting of one’s expectation

The Factors Influencing Consumer SatisfactionProductSales ActivityAfter-SalesCulture

Various Benefits of Consumer SatisfactionLoyaltyRepeat PurchaseReferralsRetention(survey)Reduced CostsPremium Prices

Managing Consumer Satisfaction

There are several things that marketers can to manage customer satisfaction and leverage it in their marketing efforts.

Understand what can Go WrongFocus on Controllable IssuesManage Customer ExpectationsOffer Satisfaction GuaranteesMake it Easy for customers to complainCreate relationship programs