AC40A750
OSTOKÄYTTÄYTYMINEN
Spring 2010
Sanna-Katriina Asikainen
MOTIVATIONAL DIRECTION:
NEEDS VERSUS WANTS
Spring 2010
Sanna-Katriina Asikainen
CONSUMER NEEDS AND
MARKETING
− Marketing students are taught from day one that the goal
of marketing is to satisfy consumers’ needs.
− However, this insight is useless unless we can discover
what those needs are and why they exist.
NEEDS VERSUS WANTS
DO MARKETERS CREATE
ARTIFICIAL NEEDS?
Objective of marketing: create awareness that
needs exist, not to create needs
− Need: a basic
biological motive
versus
− Want: one way that
society has taught
us that the need
can be satisfied
TYPES OF NEEDS
Types of needs:
− Innate versus learned
− Biogenic versus psychogenic
− Biogenic: biological needs, such as for air, water, food
− Psychogenic: need for status, power, affiliation
− Utilitarian versus hedonic:
− Utilitarian: need for tangible attributes of a product,
such as miles per gallon in a car or calories in a
cheeseburger
− Hedonic: needs for excitement, self-confidence,
fantasy
− Sociogenic: desires
SPECIFIC NEEDS AND
BUYER BEHAVIOR
NEED FOR ACHIEVEMENT
NEED FOR AFFILIATION
Value personal accomplishment
Place a premium on products that
signify success (luxury brands,
technology products)
Want to be with other people
Focus on products that are used in
groups (alcoholic beverages,
sports bars)
NEED FOR POWER
NEED FOR UNIQUENESS
Control one’s environment
Focus on products that allow them
to have mastery over
surroundings (muscle cars, loud
boom-boxes)
Assert one’s individual identity
Enjoy products that focus on their
unique character (perfumes,
clothing)
LEVELS OF NEEDS IN
THE MASLOW HIERARCHY
DESIRE
− is more than a want, and it is certainly more than a need
− is more than an emotion, and it is certainly more than a
mood
− is a motivation of the most intense kind
− is an emoting involving a passion attached to an object
− a product, a person, a cause, a life goal
− emphasizes that, even though desires, needs, and wants
are felt psychologically, the concept of society is very
central to understanding of desire
− sociogenic need
− works on the pleasure principle
− we have desires because we seek pleasure
MOTIVATION PROCESS
− Motivation: process that leads
people to behave as they do
− Also, the forces that drive us to
buy/use products
− Goal: consumer’s desired end
state
− Drive: degree of consumer
arousal
− Want: manifestation of
consumer need
− The ad shows desired state and
suggests solution (purchase of
equipment)
× Click image for
www.soloflex.com
A MODEL OF
CONSUMER MOTIVATION
DESIRED
STATE
ACTUAL
STATE
TENSION
(Felt
discomfort)
DRIVE
(Energy)
GOAL OBJECT
(Something
that will
reduce the
tension)
MOTIVATIONAL STRENGTH
Motivational strength: degree of willingness to expend
energy to reach a goal
− Drive theory: biological needs that produce unpleasant
states of arousal (e.g., hunger)
− Expectancy theory: behavior is pulled by expectations of
achieving desirable outcomes
MOTIVATIONAL CONFLICTS
× Click image for
www.drugfree.org
− Goal valence (value):
consumer will:
− Approach positive goal
− Avoid negative goal
− Example: Partnership for a
Drug-Free America
communicates negative
consequences of drug
addiction for those tempted to
start
THREE TYPES OF
MOTIVATIONAL CONFLICTS
• Two desirable alternatives
• Cognitive dissonance
• Positive & negative aspects
of desired product
• Guilt of desire occurs
• Facing a choice with two
undesirable alternatives
INVOLVEMENT
Spring 2010
Sanna-Katriina Asikainen
CONSUMER INVOLVEMENT
− Involvement:
− perceived relevance of an object based on one’s
needs, values, and interests
− Involvement can be viewed as motivation to process
information.
− Different levels of involvement:
− High-involvement: Passion
− Low-involvement: Inertia, decisions made out of habit
(lack of motivation)
− In most cases, consumer’s level of involvement falls
in the middle.
− Many faces of involvement:
− Cognitive
− Emotional
THE MANY FACES OF
INVOLVEMENT
− Product Involvement:
− Related to a consumer’s level of interest in a
particular product
− Message-Response Involvement:
− (a.k.a. advertising involvement) Refers to a
consumer’s interest in processing marketing
communications
− Purchase Situation Involvement:
− Refers to the differences that may occur when buying
the same product for different contexts
CONCEPTUALIZING
INVOLVEMENT
MEASURING INVOLVEMENT
− Teasing out the Dimensions of Involvement:
− Involvement Profile (Laurent & Kapferer):
− Personal interest in a product category
− Risk importance
− Probability of making a bad purchase
− Pleasure value of the product category
− How closely the product is related to the self
− Zaichkowsky’s Personal Involvement Inventory Scale
− Segmenting by Involvement Levels:
− Involvement is a useful basis for market segmentation
MEASURING INVOLVEMENT:
INVOLVEMENT SCALE
To me (object to be judged) is:
1. important
_:_:_:_:_:_:_
unimportant
2. boring
_:_:_:_:_:_:_
interesting
3. relevant
_:_:_:_:_:_:_
irrelevant
4. exciting
_:_:_:_:_:_:_
unexciting
5. means nothing
_:_:_:_:_:_:_
means a lot
6. appealing
_:_:_:_:_:_:_
unappealing
7. fascinating
_:_:_:_:_:_:_
mundane
8. worthless
_:_:_:_:_:_:_
valuable
9. involving
_:_:_:_:_:_:_
uninvolving
10. not needed
_:_:_:_:_:_:_
needed
DIMENSION OF INVOLVEMENT
The amount of consumer involvement depends on:
− Personal interest in product category
− Risk importance
− Probability of bad purchase
− Pleasure value of product category
− Sign value of product category (self-concept relevance)
STRATEGIES TO
INCREASE INVOLVEMENT
− Appeal to hedonistic needs
− Use novel stimuli in
commercials
− Use prominent stimuli in
commercials
− Include celebrity endorsers
in commercials
− Build consumer bonds via
ongoing consumer
relationships
ATTITUDES
Spring 2010
Sanna-Katriina Asikainen
INTENDED
LEARNING OUTCOMES
When you finish this chapter you should understand why:
− It’s important for consumer researchers to understand
the nature and power of attitudes.
− Attitudes are more complex than they first appear.
− We form attitudes in several ways.
− A need to maintain consistency among all of our
attitudinal components motivates us to alter one or more
of them.
− We use attitude models to identify specific components
and combine them to predict a consumer’s overall
attitude toward a product or brand.
THE POWER OF ATTITUDES
− Attitude: a lasting, general evaluation of people,
objects, advertisements, or issues
− Attitude object (AO)
− Help to determine a number of preferences and actions
− Consumers have attitudes towards very productspecific behaviors as well as towards more general
consumption-related behaviours
FUNCTIONAL THEORY OF
ATTITUDES
− Katz: attitudes exist because they serve some function
UTILITARIAN
FUNCTION:
VALUE-EXPRESSIVE
FUNCTION:
Relates to rewards and
punishments
Expresses consumer’s values
or self-concept
EGO-DEFENSIVE
FUNCTION:
Protect ourselves from
external threats or internal
feelings
KNOWLEDGE
FUNCTION:
Need for order, structure, or
meaning
− An attitude can serve more than one function but in
many cases a particular one will be dominant.
ABC MODEL OF ATTITUDES
Attitude has three components:
− Affect: the way a consumer feels about an attitude
object.
− Behavior: person’s intentions to do something with
regard to an attitude object.
− Cognition: beliefs a consumer has about an attitude
object.
HIERARCHIES OF EFFECTS
− Impact/importance of attitude components depends on
consumer’s motivation toward attitude object
HIERARCHY OF EFFECTS
− Standard Learning Hierarchy
− Results in strong brand loyalty
− Assumes high consumer involvement
− Low-Involvement Hierarchy
− Consumer does not have strong brand preference
− Consumers swayed by simple stimulus-response
connections
− Experiential Hierarchy
− Consumers’ hedonic motivations and moods
− Emotional contagion
− Cognitive-affective model versus independence
hypothesis
FORMING ATTITUDES
− An attitude can form in several different ways, depending
on the particular hierarchy of effects in operation. E.g.
via:
− classical conditioning
− wherein an attitude object such as the name Pepsi is
repeatedly paired with a catchy jingle
− instrumental conditioning
− in which consumption of the attitude object is reinforced.
− complex cognitive process
− E.g. a teenager may come to model the behavior of friends
and media figures who drink Pepsi because she belives that
this act will enable her to fit in with the desirable images of
the Pepsi Generation.
ATTITUDE COMMITMENT
Degree of commitment is related to level of involvement
with attitude object
INTERNALIZATION
Highest level: deep-seeded attitudes become part
of consumer’s value system
IDENTIFICATION
Mid-level: attitudes formed in order to conform to
another person or group
COMPLIANCE
Lowest level: consumer forms attitude because it
gains rewards or avoids punishments
CONSISTENCY PRINCIPLE
Principle of cognitive consistency:
− We value/seek harmony among thoughts, feelings, and
behaviors
− We will change components to make them consistent
− Cognitive dissonance
− Self-perception theory
− Social judgement theory
− Balance theory
COGNITIVE DISSONANCE
AND HARMONY
− Theory of cognitive dissonance:
when a consumer is confronted
with inconsistencies among
attitudes or behaviors, he will
take action to resolve the
“dissonance”
− Example: Two cognitive elements about smoking:
− “I know smoking causes cancer”
− “I smoke cigarettes”
− Consumer will resolve the dissonance by either
satisfying urge to smoke or stopping the behavior
SELF PERCEPTION THEORY
− Self-perception theory: we use observations of our own
behavior to determine what our attitudes are.
FOOT-IN-THE-DOOR TECHNIQUE
Consumer is more likely to comply with a request if he has
first agreed to comply with a smaller request
LOW-BALL TECHNIQUE
Person is asked for a small favor and is informed after
agreeing to it that it will be very costly.
DOOR-IN-THE-FACE TECHNIQUE
Person is first asked to do something extreme (which he
refuses), then asked to do something smaller.
SOCIAL JUDGEMENT THEORY
− Social judgment theory: we assimilate new information
about attitude objects in light of what we already
know/feel
− Initial attitude = frame of reference
− Latitudes of acceptance and rejection
− Assimilation and contrast effects
− As a person becomes more involved with an attitude
object, his or her latitude of acceptance shrinks.
BALANCE THEORY
− Balance theory: considers relations among elements a
consumer might perceive as belonging together
− Involves triad attitude structures:
− Person
− Perception of attitude object
− Perception of other person/object
− Perception can be positive or negative
− Balanced/harmonious triad elements
− Unit relation and sentiment relation
RESTORING BALANCE
IN A TRIAD
− Alex wants to date
Larry; Alex has
positive sentiment
toward Larry
− Larry wears earring;
Larry has positive
attitude toward
earring
− Alex doesn’t like
men who wear
earrings; has
negative sentiment
toward earrings
MULTI-ATTRIBUTE
ATTITUDE MODELS
− Multi-attribute models: consumer’s attitudes toward an
attitude object depends on beliefs she has about several
or many attributes of the object
− Three elements
− Attributes of AO (e.g., college)
− Example: scholarly reputation
− Beliefs about AO
− Example: Lappeenranta School of Business is
strong academically
− Importance weights
− Example: stresses research over athletics
FISHBEIN MODEL
− Measures three components of
attitudes:
− Salient beliefs about AO
− Object-attribute linkages
− Evaluation of each important
attribute
− Aijk = ΣBijkIik
− Overall Attitude Score =
(consumer’s rating of each
attribute for all brands) x
(importance rating for that
attribute)
SAUNDRA’S COLLEGE DECISION
Beliefs (β)
Attribute
Import (I)
Smith
Princeton
Rutgers
Northlan
d
Academic reputation
6
8
9
6
3
All women
7
9
3
3
3
Cost
4
2
2
6
9
Proximity to home
3
2
2
6
9
Athletics
1
1
2
5
1
Party atmosphere
2
1
3
7
9
Library facilities
5
7
9
7
2
163
142
153
131
Attitude Score
AN EXAMPLE OF THE ORIGINAL
FISHBEIN ATTITUDE MODEL
− Mitä seuraavista automalleista Mercedes SLK, Porsche
911, Corvette kohtaan esimerkin vastaajilla on
positiivisimmat asenteet?
− Entä negatiivisimmat?
− Mitä tämä tarkoittaa markkinoijan näkökulmasta?
ATTRIBUTES
Attribute:
1 Sporty Styling
2 Good Handling/Ride
3 High Cost
4 Great Acceleration
5 Low Repair Frequency
EVALUATION OF THE ATTRIBUTE
AS BEING GOOD OR BAD
Extremely
Good
+3
Moderately
Good
+2
Neither
Good
Slightly nor
Slightly Moderately
Good Bad
Bad
Bad
+1
0
-1
-2
Attribute
Sporty Styling
Good Handling/Ride
High Cost
Great Acceleration
Low Repair Frequency
Extremely
Bad
-3
Rating (ei)
+3
+3
-1
+3
+1
BELIEF ABOUT THE BRAND’S
POSSESSION OF THE ATTRIBUTE
Extremely
Likely
+3
Moderately
Likely
+2
Attribute
Sporty Styling
Good Handling/Ride
High Cost
Great Acceleration
Low Repair
Frequency
Neither
Likely
Slightly
nor
Likely
Unlikely
+1
0
Mercedes SLK
+3
+2
+3
+1
-1
Slightly
Unlikely
-1
Porsche 911
+3
+3
+3
+3
-2
Moderately
Unlikely
-2
Extremely
Unlikely
-3
Corvette
+2
+2
+2
+2
+2
MARKETING APPLICATIONS OF
MULTI-ATTRIBUTE MODE
− Capitalize on relative advantage: convince consumers
that particular product attributes are important in brand
choice
− Strengthen perceived product/attribute linkages: if
consumers don’t associate certain attributes with the
brand, make the relationship stronger
− Add a new attribute: focus on unique positive attribute
that consumer has not considered
− Influence competitors’ ratings: decrease the attributes of
competitors
EXTENDED FISHBEIN MODEL
Theory of reasoned action: considers other elements of
predicting behavior
− Intentions versus behavior: measure behavioral
intentions, not just intentions
− Social pressure: acknowledge the power of other people
in purchasing decision
− Attitude toward buying: measure attitude toward the act
of buying, not just the product
THEORY OF REASONED ACTION
OBSTACLES TO
PREDICTING BEHAVIOR
Fishbein model’s weaknesses include:
− Doesn’t deal with outcomes of behavior, including those
beyond consumer’s control
− Doesn’t consider unintentional behavior, such as
impulsive acts or novelty seeking
− Doesn’t consider that attitudes may not lead to
consumption
− Doesn’t consider the time frame between attitude
measurement and behavior
− Doesn’t differentiate between consumer’s direct,
personal experience, and indirect experience
CONSUMER AS A DECISION
MAKER
Spring 2010
Sanna-Katriina Asikainen
INTENDED
LEARNING OUTCOMES
When you finish this chapter you should understand why:
− Consumer decision making is a central part of consumer
behavior, but the way we evaluate and choose products
(and the amount of thought we put into these choices)
varies widely, depending upon such dimensions as the
degree of novelty or risk in the decision.
− A decision is actually composed of a series of stages that
results in the selection of one product over competing
options.
− Decision making is not always rational.
− Consumers rely upon different decision rules when
evaluating competing options.
− We often fall back on well learned “rules-of-thumb” to make
decisions.
CONSUMERS AS
PROBLEM SOLVERS
− Consumer purchase = response to problem
− After realization that we want to make a purchase,
we go through a series of steps in order to make it
− Can seem automatic or like a full-time job
− Complicated by consumer hyperchoice
− Decision-making process
DECISION MAKING PROCESS
DECISION MAKING
PERSPECTIVES
− Rational perspective: consumers:
− Integrate as much information as possible with what
they already know about a product
− Weigh pluses and minuses of each alternative
− Arrive at a satisfactory decision
DECISION MAKING
PERSPECTIVES
− Other models of decision making:
− Purchase momentum:
− occurs when consumers buy beyond needs
satisfaction
− Behavioral influence perspective:
− consumers buy based on environmental cues,
such as a sale
− Experiential perspective:
− consumers buy based on totality of product’s
appeal
CONTINUUM OF BUYING
DECISION BEHAVIOR
TYPES OF
CONSUMER DECISIONS
− Extended problem solving:
− Initiated by a motive that is central to self-concept
− Consumer feels that eventual decision carries a fair
degree of risk
− Limited problem solving:
− Buyers not as motivated to search for information or
to evaluate rigorously
− Buyers use simple decision rules to choose
− Habitual decision making:
− Choices made with little to no conscious effort
STAGE 1:
PROBLEM RECOGNITION
Occurs when consumer sees difference between current
state and ideal state
− Need recognition: actual state moves downward
− Opportunity recognition: ideal state moves upward
Marketers can create:
− Primary demand: encourage consumers to use product
category
− Secondary demand: persuade consumers to use specific
brand
PROBLEM RECOGNITION: SHIFTS
IN ACTUAL OR IDEAL STATES
STAGE 2: INFORMATION SEARCH
− Information search: process by which consumer surveys
the environment for appropriate data to make reasonable
decision
Prepurchase versus Ongoing Search
Prepurchase Search
Ongoing Search
Determinants
Involvement with
purchase
Involvement with product
Motives
Making better
purchase decisions
Building a bank of
information for future use
Outcomes
Better purchase
decisions
Increased impulse buying
INTERNAL VERSUS
EXTERNAL SEARCH
− Internal search
− Scanning memory to assemble product alternative
information
− External search
− Obtaining information from ads, retailers, catalogs,
friends, family, people-watching, Web sites
DELIBERATE VERSUS
”ACCIDENTAL” SEARCH
× Click photo for
Consumerreports.org
− Directed learning: existing product
knowledge obtained from previous
information search or experience
of alternatives
− Incidental learning: mere
exposure over time to conditioned
stimuli and observations of others
THE ECONOMICS OF
INFORMATION
− Consumers will gather as much data as needed to make
informed decisions
− We will collect most valuable information first
− Variety seeking: desire to choose new alternatives over
more familiar ones
DO CONSUMERS ALWAYS
SEARCH RATIONALLY?
− Some consumers avoid external search, especially with
minimal time to do so and with durable goods (e.g.
autos)
− Symbolic items require more external search
− Brand switching: we select familiar brands when decision
situation is ambiguous
− Variety seeking: desire to choose new alternatives over
more familiar ones
AMOUNT OF INFORMATION SEARCH
AND PRODUCT KNOWLEDGE
PERCEIVED RISK
− Perceived risk: belief that product
has negative consequences
− Expensive, complex, hard-tounderstand products
− Product choice is visible to
others (risk of embarrassment
for wrong choice)
− Risks can be objective (physical
danger) and subjective (social
embarrassment)
FIVE TYPES OF PERCEIVED RISKS
DISCUSSION
− Choosing a brand/product among available alternatives
requires much of the effort that goes into a purchase
decision.
− Which is the greater problem for a consumer:
− Not having enough choices or having too many
choices?
− Why?
STAGE 3: EVALUATION OF
ALTERNATIVES
− To arrive a choice, consumer needs two things:
− Evaluation criteria
− Judgement models
− Evaluation criteria are standards against which
consumers evaluate a product
− Judgement models (a.k.a. decision models, choice rules)
are procedures and rules consumers use so as to
consider various product attributes to arrive at their
product choice.
IDENTIFYING ALTERNATIVES
− Extended problem solving = evaluation of several brands
− Occurs when choice conflicts arouse negative
emotions (involving difficult trade-offs)
− Habitual decision = consider few/no brand alternatives
IDENTIFYING ALTERNATIVES
− Evoked set versus consideration set
− We usually don’t seriously consider every brand we
know about.
− In fact, we often include only a surprisingly small
number of alternatives in our evoked set.
− Marketers must focus on getting their brands in
consumers’ evoked set.
− We often do not give rejected brands a second
chance.
CATEGORIZING PRODUCTS
− We evaluate products in terms of what we already know
about a (similar) product.
− Evoked-set products usually share similar features
− When faced with a new product, we refer to existing
product category knowledge to form new knowledge.
− Marketers want to ensure that their products are
correctly grouped in knowledge structures.
LEVELS OF CATEGORIZATION
STRATEGIC IMPLICATIONS OF
PRODUCT CATEGORIZATION
− Product positioning
− Convincing consumers that product should be
considered within a given category
− Identifying competitors
− Products/services different on the surface can
actually compete on superordinate level for
consumer dollars
STRATEGIC IMPLICATIONS OF
PRODUCT CATEGORIZATION
− Exemplar products
− Brands strongly associated with a category “call the
shots” by defining evaluative criteria
− But “moderately unusual” products stimulate more
information processing and positive evaluations
− Locating products
− Products that do not fit clearly into categories confuse
consumers (e.g., frozen dog food)
PRODUCT CHOICE
− Selecting among alternatives
− Once we assemble and evaluate relevant options
from a category, we must choose among them
− Decision rules for product choice can be very simple
or very complicated
− Prior experience with (similar) product
− Present information at time of purchase
− Beliefs about brands (from advertising)
EVALUATIVE CRITERIA
− Evaluative criteria: dimensions used to judge merits of
competing options
− Determinant attributes: features we use to differentiate
among our choices
− Criteria on which products differ carry more weight
− Marketers educate consumers about (or even invent)
determinant attributes
EVALUATIVE CRITERIA
− Procedural learning: cognitive steps before making
choice
− Marketers often point out significant differences
among brands on relevant attribute…
− Then supply consumers with decision-making rule
(“if, then”) that has helped them make previous
decisions
NEUROMARKETING
− Neuromarketing: uses functional magnetic resonance
imaging, a brain-scanning device that tracks blood flow
as we perform mental tasks
− Marketers measure consumers’ reactions to movie
trailers, choices about automobiles, the appeal of a
pretty face, and loyalty to specific brands
HEURISTICS: MENTAL SHORTCUTS
− Heuristics: mental rules-ofthumb that lead to a speedy
decision
− Examples: higher price =
higher quality, buying the
same brand your mother
bought
− Can lead to bad decisions due
to flawed assumptions
(especially with unusually
named brands)
× Click photo for
iparty.com
RELYING ON A PRODUCT SIGNAL
− Product signal: observable product attributes that
communicate underlying qualities
− Clean and shiny car = good mechanical condition
− Covariation: perceived associations among events
− Product type/quality and country of origin
− Consumers are poor estimators of covariation (selffulfilling prophecy: we see what we are looking for)
MARKET BELIEFS
− Consumer assumptions about companies, products, and
stores that become shortcuts for decisions
− Price-quality relationship: we tend to get what we pay for
− Other common marketing beliefs
− All brands are basically the same
− Larger stores offer better prices than smaller stores
− Items tied to “giveaways” are not a good value
COUNTRY OF ORIGIN
− We rate our own country’s
products more favorably than do
people who live elsewhere
− Industrialized countries make
better products than developing
countries
− Attachment to own versus other
cultures
− Nationalists
− Internationalists
− Disengaged
CHOOSING FAMILIAR
BRAND NAMES
− Zipf’s Law: our tendency to prefer a number one brand to
the competition
− Brands that dominate the market are sometimes 50%
more profitable than their nearest competitors
− Consumer inertia: the tendency to buy a brand out of
habit merely because it requires less effort
− Brand loyalty: repeat purchasing behavior that reflects a
conscious decision to continue buying the same brand
HYPOTHETICAL ALTERNATIVES
FOR A TV SET
Brand Ratings
Attribute
Importance
Ranking
Prime Wave
Precision
Kamashita
Excellent
Size of screen
1
Excellent
Excellent
Stereo broadcast capability
2
Poor
Excellent
Brand reputation
3
Excellent
Excellent
Poor
Onscreen programming
4
Excellent
Poor
Poor
Cable-ready capability
5
Good
Good
Good
Sleep timer
6
Excellent
Poor
good
DECISION RULES
− Noncompensatory decision rules when we feel that a
product with a low standing on one attribute can’t
compensate for this flaw by doing better on another
attribute
− Types of noncompensatory decision rules:
− Lexicographic rule, consumers select the brand that is
the best on the most important attribute
− Elimination-by-aspects rule: the buyer also evaluates
brands on the most important attribute
− Conjunctive rule: entails processing by brand
DECISION RULES
− Compensatory decision rules: give a product a chance to
make up for its shortcomings
− Types of compensatory decision rules:
− Simple additive rule: the consumer merely chooses
the alternative that has the largest number of positive
attributes
− Weighted additive rule: the consumer also takes into
account the relative importance of positively rated
attributes, essentially multiplying brand ratings by
importance weights