CHAPTER 1
CONSUMER BEHAVIOUR
Patterns, types, segmentation Understanding, analyzing and keeping track of consumer behavior is
critical for businesses. Here’s what you should consider.
How many times do you make decisions throughout the day? What should I wear today? What perfume
should I put on? What am I going to have for lunch?
If you think about it, we make many buying decisions every day without giving them much thought.
These decisions, as insignificant as they might seem, keep marketers up at night. Because decoding the
processes behind customers’ decisions means that we can use that info to boost revenue.
What is the meaning of consumer behavior?
Consumer behavior is the study of consumers and the processes they use to choose, use (consume), and
dispose of products and services, including consumers’ emotional, mental, and behavioral responses.
Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry, and
economics.
In this guide, we’ll take a look at the different aspects and facets of consumer behavior, and we’ll discuss
the most effective types of customer segmentation.
Why is consumer behavior important?
Studying consumer behavior is important because it helps marketers understand what influences
consumers’ buying decisions.
By understanding how consumers decide on a product, they can fill in the gap in the market and identify
the products that are needed and the products that are obsolete.
Studying consumer behavior also helps marketers decide how to present their products in a way that
generates a maximum impact on consumers. Understanding consumer buying behavior is the key secret to
reaching and engaging your clients, and converting them to purchase from you.
A consumer behavior analysis should reveal:
What consumers think and how they feel about various alternatives (brands, products, etc.);
What influences consumers to choose between various options;
Consumers’ behavior while researching and shopping;
How consumers’ environment (friends, family, media, etc.) influences their behavior.
Consumer behavior is often influenced by different factors. Marketers should study consumer purchase
patterns and figure out buyer trends.
In most cases, brands influence consumer behavior only with the things they can control; think about how
IKEA seems to compel you to spend more than what you intended to every time you walk into the store.
So what are the factors that influence consumers to say yes? There are three categories of factors that
influence consumer behavior:
Personal factors: an individual’s interests and opinions can be influenced by demographics (age, gender,
culture, etc.).
Psychological factors: an individual’s response to a marketing message will depend on their perceptions
and attitudes.
Social factors: family, friends, education level, social media, income, all influence consumers’ behavior.
Types of consumer behavior
There are four main types of consumer behavior:
1. Complex buying behavior
This type of behavior is encountered when consumers are buying an expensive, infrequently bought
product. They are highly involved in the purchase process and consumers’ research before committing to a
high-value investment. Imagine buying a house or a car; these are an example of a complex buying
behavior.
2. Dissonance-reducing buying behavior
The consumer is highly involved in the purchase process but has difficulties determining the differences
between brands. ‘Dissonance’ can occur when the consumer worries that they will regret their choice.
Imagine you are buying a lawnmower. You will choose one based on price and convenience, but after the
purchase, you will seek confirmation that you’ve made the right choice.
3. Habitual buying behavior
Habitual purchases are characterized by the fact that the consumer has very little involvement in the
product or brand category. Imagine grocery shopping: you go to the store and buy your preferred type of
bread. You are exhibiting a habitual pattern, not strong brand loyalty.
4. Variety seeking behavior
In this situation, a consumer purchases a different product not because they weren’t satisfied with the
previous one, but because they seek variety. Like when you are trying out new shower gel scents.
Knowing what types of customers your e-store attracts will give you a better idea about how to segment
customer types.
What affects consumer behavior?
Many things can affect consumer behavior, but the most frequent factors influencing consumer behavior
are:
1. Marketing campaigns
Marketing campaigns influence purchasing decisions a lot. If done right and regularly, with the right
marketing message, they can even persuade consumers to change brands or opt for more expensive
alternatives.
Marketing campaigns, such as Facebook ads for eCommerce, can even be used as reminders for
products/services that need to be bought regularly but are not necessarily on customers’ top of mind (like an
insurance for example). A good marketing message can influence impulse purchases.
2. Economic conditions
For expensive products especially (like houses or cars), economic conditions play a big part. A positive
economic environment is known to make consumers more confident and willing to indulge in purchases
irrespective of their financial liabilities.
The consumer’s decision-making process is longer for expensive purchases and it can be influenced by
more personal factors at the same time.
3. Personal preferences
Consumer behavior can also be influenced by personal factors: likes, dislikes, priorities, morals, and values.
In industries like fashion or food, personal opinions are especially powerful.
Of course, advertisements can influence behavior but, at the end of the day, consumers’ choices are greatly
influenced by their preferences. If you’re vegan, it doesn’t matter how many burger joint ads you see,
you’re not gonna start eating meat because of that.
4. Group influence
Peer pressure also influences consumer behavior. What our family members, classmates, immediate
relatives, neighbors, and acquaintances think or do can play a significant role in our decisions.
Social psychology impacts consumer behaviour. Choosing fast food over home-cooked meals, for example,
is just one of such situations. Education levels and social factors can have an impact.
5. Purchasing power
Last but not least, our purchasing power plays a significant role in influencing our behavior. Unless you are
a billionaire, you will consider your budget before making a purchase decision.
The product might be excellent, the marketing could be on point, but if you don’t have the money for it,
you won’t buy it.
Segmenting consumers based on their buying capacity will help marketers determine eligible consumers
and achieve better results.
Customer behavior patterns
Buying behavior patterns are not synonymous with buying habits. Habits are developed as tendencies
towards an action and they become spontaneous over time, while patterns show a predictable mental
design.
Each customer has his unique buying habits, while buying behavior patterns are collective and offer
marketers a unique characterization. Customer behavior patterns can be grouped into:
1. Place of purchase
Most of the time, customers will divide their purchases between several stores even if all items are
available in the same store. Think of your favorite hypermarket: although you can find clothes and shoes
there as well, you’re probably buying those from actual clothing brands.
When a customer has the capability and the access to purchase the same products in different stores, they
are not permanently loyal to any store, unless that’s the only store they have access to. Studying customer
behavior in terms of choice of place will help marketers identify key store locations.
2. Items purchased
Analyzing a shopping cart can give marketers lots of consumer insights about the items that were
purchased and how much of each item was purchased. Necessity items can be bought in bulk while luxury
items are more likely to be purchased less frequently and in small quantities.
The amount of each item purchased is influenced by the perishability of the item, the purchasing power of
the buyer, unit of sale, price, number of consumers for whom the item is intended, etc.
3. Time and frequency of purchase
Customers will go shopping according to their feasibility and will expect service even during the oddest
hours; especially now in the era of e-commerce where everything is only a few clicks away.
It’s the shop’s responsibility to meet these demands by identifying a purchase pattern and match its service
according to the time and frequency of purchases.
One thing to keep in mind: seasonal variations and regional differences must also be accounted for.
4. Method of purchase
A customer can either walk into a store and buy an item right then and there or order online and pay online
via credit card or on delivery.
The method of purchase can also induce more spending from the customer (for online shopping, you might
also be charged a shipping fee for example).
The way a customer chooses to purchase an item also says a lot about the type of customer he is. Gathering
information about their behavior patterns helps you identify new ways to make customers buy again, more
often, and higher values.
Think about all the data you’ve already collected about your customers. The purchase patterns are hiding in
your e-store’s analytics and you can either look for insights manually or integrate a tool with your
eCommerce platform such as Shopify or WooCommerce to get automated insights about behavior patterns.
Customer behavior segmentation
Customer segmentation and identifying types of buyers have always been important. Now that
personalization and customer experience are factors that determine a business’ success, effective
segmentation is even more important.
Only 33% of the companies that use customer segmentation say they find it significantly impactful, so it’s
important to find the segmentation technique that brings clarity and suits your business.
Traditionally, most marketers use six primary types of behavioral segmentation.
1. Benefits sought
A customer who buys toothpaste can look for four different reasons: whitening, sensitive teeth, flavor, or
price.
When customers research a product or service, their behavior can reveal valuable insights into which
benefits, features, values, use cases, or problems are the most motivating factors influencing their purchase
decision.
When a customer places a much higher value on one or more benefits over the others, these primary
benefits sought are the defining motivating factors driving the purchase decision for that customer.
2. Occasion or timing-based
Occasion and timing-based behavioral segments refer to both universal and personal occasions.
Universal occasions apply to the majority of customers or target audience. For example, holidays and
seasonal events when consumers are more likely to make certain purchases.
Recurring-personal occasions are purchasing patterns for an individual customer that consistently repeat
over a while. For example birthdays, anniversaries or vacations, monthly purchases, or even daily rituals
such as stopping for a cup of coffee on the way to work every morning.
Rare-personal occasions are also related to individual customers, but are more irregular and spontaneous,
and thus more difficult to predict. For example, attending a friend’s wedding.
3. Usage rate
Product or service usage is another common way to segment customers by behavior, based on the
frequency at which a customer purchases from or interacts with a product or service. Usage behavior can be
a strong predictive indicator of loyalty or churn and, therefore, lifetime value.
4. Brand loyalty status
Loyal customers are a business’s most valuable assets. They are cheaper to retain, usually have the highest
lifetime value, and can become brand advocates.
By analyzing behavioral data, customers can be segmented by their level of loyalty so marketers can
understand their needs and make sure they are satisfying them.
Loyal customers are the ones who should receive special treatment and privileges such as exclusive
rewards programs to nurture and strengthen the customer relationship and incentivize continued future
business.
5. User status
There are many different possible user statuses you might have depending on your business. A few
examples are:
Non-users
Prospects
First-time buyers
Regular users
Defectors (ex-customers who have switched to a competitor).
6. Customer journey stage
Segmenting the audience base on buyer readiness allows marketers to align communications and
personalize experiences to increase conversion at every stage.
Moreover, it helps them discover stages where customers are not progressing so they can identify the
biggest obstacles and opportunities for improvement, even on post-purchase behaviors.
Besides these traditional ways, another type of segmentation is the RFM model. This approach is popular
among eCommerce marketers because it helps them create customer experiences around the information
they’ve got about each customer segment.
RFM is a behavioral segmentation model and the three letters come from Recency, Frequency, and
Monetary Value.
Here’s what these variables show you:
Recency = how recent a customer placed the last order on your website;
Frequency = how many times a customer purchased something from your website in the analyzed period
of time;
Monetary Value = how much each customer spent on your website since the first order.
The RFM model analysis can be executed in 2 ways:
Manually – exporting your database in a spreadsheet and analyzing your customers following the rules for
RFM analysis;
Automatically – through certain tools that are creating RFM dashboards.
RFM segmentation and analysis can reveal who your most loyal and profitable customers are and also:
Reveal what brands and products are dragging your business down;
Build custom recommendations for your customers;
Solve certain Customer Experience problems.
Before making decisions based on gut feeling regarding your customers and your audience, observe their
behavior, listen to them and build a relationship that will make them stay loyal no matter how aggressive
your competitors are.
CHAPTER 2
CUSTOMER VALUE, SATISFACTION AND RETENTION
Customer Value:
Customer value means to create superior satisfaction. It is the key concept for building a profitable
relationship. In business, it is said that if you satisfied your target customers. If customers get enough
satisfaction, they will be purchased again & again. However, It seems that they are more likely to be loyal
customers. Moreover, Companies get a larger share of profit from them.
Customer value is the differences between the total cost and total benefit of the products.
But another thing we should keep in our mind that attracting & maintaining customers is not an easy task.
In the market, the customer faces different types of product & services there. From there, they choose their
product. But a customer only purchased from whom who offers the highest customer- perceived value, in
short CPV.
CPV actually is “the customer’s evaluation of the difference between all the benefits & all costs of a
marketing offer relative to those of competing for offers”.
The most important thing is those customers mostly act on perceived value.
Some consumers define value means a sensible product at an affordable price; another may define value
might mean paying more to get more.
Customer perceived value has two ways.
1. Total benefits (product, service, personnel, image)
2. Total costs ( monetary, time, energy, psychic)
Customer Satisfaction:
Customer satisfaction refers to a buyer’s expectation is related to product performance. Because of lower
performance of product , the customer may be dissatisfied.If product performance is equal to customer
expectation, the customer is satisfied.
But if the product performance exceeds the buyer’s expectation, the customer may highly satisfy &
delighted.
Most successful companies try to keep their customers satisfied. Because if they create a higher level of
customers satisfaction that may lead to a greater level of customer satisfaction.
Customer retention
Customer retention is the keeping customer into a long run relationship. For this, companies need to satisfy
the customer by providing better product performance. Otherwise, consumers may switch to competitors
products. Besides, it is more expensive to attract a new customer. That’s why marketers try keeping their
existing customer by satisfying them. There are several reasons for keeping existing customers. Let’s seeLoyal customers will buy more products. Besides, they also represent an opportunity to cross-selling.
Long-term customers are familiar with the company’s products. However, they are also willing to buy a
new product for testing.
Loyal customers are fewer prices sensitive. Moreover, they pay less attention to competitors advertising.
Thus, it makes harder for competitors to enter into the markets.
Loyal Customers are familiar with the company’s offerings and processes.
Besides, Loyal customers spread positive word of mouth.
Loyal customers reduce less customer turnover. Besides, they ensure high profits.
Besides, loyalty makes employees jobs easier. In turn, happy employees devote themselves to satisfy the
customer more effectively.
CHAPTER 3
CONSUMER RESEARCH PROCESS
Consumer research plays a very important aspect, especially when a company decides to launch a new
product into the market. Companies conduct market research to better understand the consumers, their
needs and their satisfaction level.
conducting various surveys and focus groups, companies analyze the consumer data and then make
recommendations based on the results.
Developing Research Objectives
The first step in the consumer research process is developing the research objectives which involves
defining the purposes and objectives to ensure an appropriate design. A statement of objective helps to
define the type and level of information needed.
Collect Secondary Data
There are two distinct sources of secondary data − internal and external. Always seek internal sources first.
Most go straight to Google without considering the fact that data might exist within the organization itself.
This can sometimes be in the ‘heads’ of the personnel.
External Sources
External sources are numerous. Consumer Generated Media (CGM), especially, has grown in importance as
a data source. The key is to avoid spending too much time following ‘blind alleys’. This is where the time
and cost can escalate sharply.






Directories
Country information
Published marketing research reports
News sources
CGM (Newsgroups, blogs, groups)
Internet – single search engines, and multiple search engines
Primary Research
Primary research is basically the original research. Here you yourself collect the information through
various tools available. In primary research, you don’t tend to depend on any third parties. You may
conduct interviews or surveys, observe, or even directly go to the object for collecting information.
Quantitative Research
A quantitative research study is comprised of research design, the data collection methods, instruments to
be used, and the sample design.
Following are the three basic designs or approaches used for quantitative design −
Observational Research − In this method of observational research, the people or customers are observed
effectively when they purchase a particular product. It helps the researcher to gain in-depth understanding
of the relationship between the people and products by observing them while purchasing and using the
product.
Experimentation − Experimentation is a type of research where only certain variables are manipulated
while others are kept constant in order to encourage the change in the constant variable
Surveys − A survey is a method of research in which an interviewer interacts with respondents to obtain
facts, opinions and attitudes.
Following are the various survey methods which are generally used −





Personal interview survey
Telephone survey
Mail surveys
Online surveys
Quantitative research data collection instruments
Data Collection Instruments for Quantitative Research Data
Questionnaire and Attitude Scale − For quantitative research the primary data collection instrument is a
questionnaire and the most frequent one is attitude scale which is used to capture evaluative data.
Following are the important methods of data collection in the qualitative design techniques which are used
in the initial stages of research.
In-Depth Interview − Depth interview is conducted in length and in a non-structured manner where the
interviewer is highly trained and minimizes his own participation in the discussion once the general subject
is discussed.
Focus Group − Focus group involves many respondents who interact with the analyst in a group
discussion and focuses on a particular product.
Projective Techniques
Projective techniques are best used to understand the motives of people when they are unconsciously
rational.
The analyst generally analyzes and reports his findings based on the responses received in qualitative
research whereas in quantitative analysis, the researchers oversees the complete research, analyses the open
ended questions, classifies the responses and systematically tabulate them
CONSUMER MOTIVATION
Consumer motivation is an internal state that drives people to identify and buy products or services that
fulfill conscious and unconscious needs or desires. The fulfillment of those needs can then motivate them to
make a repeat purchase or to find different goods and services to better fulfill those needs.
Hierarchy of Needs
Consumer motivation is linked to Maslow's "hierarchy of needs.” According to this model, motivational
drivers have different levels of importance. The most common needs are physiological and concern basic
survival--the need for food, shelter and safety. Higher-level needs include social ones (for relationships and
love), esteem needs (recognition and status) and self-actualization needs (fulfillment of self). According to
Maslow, an individual must meet lower-level needs before being motivated to fulfill higher-level needs.
Motivational Levels
Depending on how important a purchase is to an individual, his motivational levels may vary from low to
high. Influences include familiarity with the purchase, status factors and overall expense and value. Where
fulfillment rewards are low, as with groceries, motivation levels are also relatively low and involve little
decision-making behavior. Conversely, with a complex, risky and emotionally-charged process such as
buying a new house, the drive to achieve the “right” result is high.
Motivational Behavior
The behavioral aspect of consumer motivation concerns the actions someone takes before purchasing and
consuming goods or services. A person might do a lot of research--evaluating alternatives, testing and
sampling--before making a selection. She might decide to buy something based on which goods or services
most closely meet and satisfy motivational wants and needs. Marketers aim to gain the most impact and
eventual sales by linking their products and services to clearly defined consumer needs and by
understanding what motivates people to buy.
Motivational Influences
Motivational levels differ greatly between individuals and are influenced by many external variables. These
include the social value of making the “right” decision, beliefs about brands and alignment of brand values
and personal values. If other people are involved in the decision, their motivation also affects the behavior
of the primary consumer.
Accessing Motivation
Companies and marketers use a number of different tools to help them understand consumer motivation in
relation to their products and services. This may help them orient their markets according to different buyer
motivation. Marketers use pre-purchase and post-purchase focus groups, one-to-one interviews and online
or postal surveys to develop their understanding of consumers’ motivational drivers.
nderstand what drives your targeted customers in their purchasing decisions. How do they decide which
product to buy, or when? What makes them choose one company over another? To maximize your sales
revenue and grow your business, it’s important to leverage the four key psychological factors that influence
consumer purchasing: motivations, perceptions, experience and beliefs.
Motivation Describes the Customer's Willingness to Buy
A consumer’s motivation is the basic degree of the psychological drive behind a specific purchase. If the
consumer’s motivation is high, that basically means that the level of need, or the consumer’s perception of
that need, is fairly strong. Given a high degree of motivation, the individual will actively seek to satisfy that
need by making that purchase.
Consumer motivation is related to the “Hierarchy of Needs" proposed by psychologist Abraham Maslow.
This theory states that human beings actively seek to satisfy physical needs first, followed by safety, social,
esteem and self-actualization needs, in that order. Businesses that successfully speak to these needs, and fill
them, will motivate consumers to buy their products.
Perception Influences the Way a Consumer Sees the World
Perception is essentially the way a person selectively views, processes and interprets the larger world or
any part of it. It’s basically how we as human beings organize and make sense of information to form some
sort of worldview.
Consumers also have perceptions of themselves that may affect a particular purchase. For example, people
who view themselves as having exquisite taste are willing to pay more for a specific brand or product that
is perceived to be “the best.” By the same token, consumers who pride themselves on being great bargain
hunters may choose a lesser-priced product, even though they might otherwise prefer the pricier option.
It’s human nature for consumers to make all kinds of associations, both conscious and subconscious, from
their experiences. Once a brand has established itself as having a certain personality – for example,
Walmart and other similar stores' low-cost positioning – it’s difficult to overcome that in the marketplace.
The consumer perception is that products from these stores are cheap and on a subconscious level, the
products are therefore lower quality.
By the same token, a diamond dealer may be quick to point out their stones come from Antwerp instead of
Sierra Leone– where the stigma of "blood diamonds" prevails – in order to avoid negative consumer
perceptions.
Experience Describes the Impact of Familiarity on Decision Making
Consumers are above all human beings, and all human beings are products of their experiences. We catalog
each experience we have as either good or bad. Then we recall that experience and how we categorized it
when a similar situation arises. These experiences influence a shopper’s behavior by changing the way the
consumer reacts to products similar to those they’re familiar with. For example, many consumers choose to
buy Toyota cars because they have had good experiences with their previously owned Toyota cars.
Companies that focus on the consumer experience earn repeat business from those customers. The
consumer doesn’t need to look anywhere else to solve that specific problem or meet that need. Prior
experience often outweighs the fact that the competition may be cheaper or even better in some cases.
Belief Describes the Consumer's Attitude Towards a Brand
A consumer’s beliefs and attitudes greatly influence the buying decisions that consumer makes. Beliefs are
the way people think about a particular product or brand, while an attitude is the individual's consistently
favorable or unfavorable evaluation, tendency or feeling about a product or brand.
These beliefs and attitudes shape the consumer's perception of the product. It can be tough for a business to
overcome or change those beliefs and attitudes. That’s because they stem from the individual's personality
and lifestyle. They’re inherently personal and connected to the consumer’s sense of self.
Consumers often block out or ignore information that conflicts with their beliefs and attitudes. They tend to
selectively retain information or even distort the information to make it consistent with their previous
perception of the product.
CHAPTER 4
MOTIVATION AS A PSYCHOLOGICAL
“A person is said to be motivated when his or her system is energized (aroused), made active and behaviour
is directed towards a desired goal”.
Before we go in deep, let us know the place of motivation in Buying Behaviour. Following diagram (3.1)
shows that a given instance of buying behaviour is the result of three factors multi plied by each other, the
ability to buy something, the opportunity to buy it and the motivation i.e. the wish, the need or the desire to
do so.
Buying Behavior = Ability × opportunity × Motivation
fig 3.1
Components of Motivation are:
Motivation = Needs-----Incentives Internal and External = Buying Behaiour
It is important for marketers to realize that motivation is only one of the essential elements that contributes
to buying behaviour as given in Fig. 3.1. No amount of love or money or other incentives could motivate
the person who is not able to walk.
Similarly, if a shopkeeper is offering sale on all the items but he/she opens on weekdays only upto 6.00
p.m. In this case even if people are motivated but the shopkeeper is giving very little opportunity to act on
their motivation.
Similarly, suppose a company is offering a new product line and spending much on heavy advertisement,
company is not ensuring whether the products are available in all the outlets.
Needs, Goals and Motives:
Motivation can also be described as the driving force within individuals that impels them to action. This
driving force is the result of tension, which in turn is because of unfulfilled needs. To reduce tension, every
individual strives for fulfilling their needs. This basi­cally, depends on each individual how they fulfill their
needs i.e. individual thinking and learning (experiences). Therefore, marketers try to influence the
consumer’s cognitive processes.
Needs:
Every individual has needs, they are innate and acquired. Innate needs are also called physiological needs
or primary needs which include food, water, air, shelter or sex, etc. Acquired needs are those needs that we
learn from our surroundings / environment or culture. These may include need for power, for affection, for
prestige, etc. These are psychological in nature; therefore they are also called as secondary needs.
Goals:
Goals are the end result of motivated behaviour. Every individual’s behaviour is goal-oriented.
From marketer point of view, there are four types of goals:
(a) Generic goals:
General classes of goals that consumers select to fulfill their needs. For example, need for washing hands.
(b) Product specific goals
For washing hands what kind of product is used. For example, use soap, liquids etc.
(c) Brand specific goals:
For example, which soap – Lux, Pears etc., to be purchased.
(d) Store specific goals:
From where that product must be purchased.
Goal Selection:
The goals selected by individuals depend on their personal experiences, physi­cal capacity, goal’s
accessibility in the physical and social environment and above all the individual’s cultural norms and
values. For example, if a person has a strong hunger need, his/her goal will depend on what is available at
that moment, in which country he is i.e., if in India cannot eat steak, as it is against his values and beliefs.
He will have to select a substitute goal which is more appropriate to the social environment.
An individual’s own perception of his/her also influence the selection of the goal. The products a person
owns, would like to own, or would not like to own are often perceived in terms of how closely they are
congruent with the person’s self image. It is seen that usually that product is selected by an individual
which has a greater possibility of being selected than one that is not.
Needs and goals are interdependent, existence of one is impossible without the other. For example,
sometimes people join a club but is not consciously aware of his social needs, a woman may not be aware
of her achievement needs but may strive to have the most successful boutique in town. One reason for this
can be that individuals are more aware of their physiological needs than they are of their psychological
needs.
Motives:
Consumer researchers have given two types of motives-rational motives and irrational (emotional) motives.
They say, that consumers behave rationally when they consider all alternatives and choose those that give
them the greatest utility. This is also known as economic man theory.
Marketers meaning of rationality is when consumers select goals based on totally objective criteria such as
size, weight or price, etc. Emotional motives imply the selection of goals according to personal or
subjective criteria. For example, desire for status, individuality, fear of owning the product (from society),
pride, affection, etc.
It is assumed that consumers always attempt to select alternatives that in their view, serve to maximize
satisfaction. The measurement of satisfaction is a very personal process, based on the individual’s own
needs structure as well as on past behavioural and social experiences.
It is seen that what may appear irrational to others may be perfectly rational in consumer’s opinion. For
example, if an individual purchases a product to enhance self-image and considers this to be a rational
decision and if behaviour does not appear rational to the person at the time of purchasing then he would
have not purchased. Therefore, it is very difficult to distinguish between rational and emotional
consumption motives.
Can Needs be Created?
This is a very ancient question about marketing and motivational research can help us provide an answer to
it. Like the products ‘Hit’ spray for cockroaches and ‘Hit’ for mosquitoes. The consumers decided for
themselves that the psychological satisfaction obtained from using the cockroach spray was more important
to them than the need for a cleaner and more efficient product.
People say that needs are created for them by the marketer through subliminal method. To some extent one
can influence the consumer through subliminal percep­tion; the effects are probably not very great or very
specific. So, there is no evidence whatsoever that anyone can create a need in a consumer. Marketers and
advertisers can only try to stimulate an existing need or can channel consumers need in a certain direction
towards one product or brand rather than another, but the results are unpredictable.
Maslow’s Hierarchy of Needs:
Human needs tend to be diverse in content as well as in length. Dr. Abraham Maslow has formu­lated a
widely accepted theory of human motivation based on hierarchy of human needs which is universally
accepted. He has stated five basic levels of human needs which rank in order of importance from lower
level (psychological) needs to highest level (physiological) needs.
This theory suggests that all individuals try to satisfy the lower level needs before higher level needs
emerge. The lower level of unsatisfied needs that an individual experiences serves to motivate his or her
behavior. When this need is satisfied, then a higher level need emerges and again tension appears. To
reduce this tension, the individual gets motivated and fulfills it. When this need is satisfied, a new i.e.,
higher need emerges and the process goes on in the life span of an individual.
According to this theory, however, there is some overlap between each level, as no need is ever completely
satisfied. For this reason, though all levels of need below the dominant level continue to motivate
behaviour to some extent, the prime motivator—the major driving force within the individual is the lowest
level of needs that remains largely unsatisfied.
Physiological Needs:
This is the first and most basic level of needs which are called Physiological needs. These needs are also
called primary needs, which are required for sustenance namely food, water, air, shelter, clothing, sex (all
biogenic needs). According to Maslow, physiological needs are dominant when they are chronically
unsatisfied. For example, a man who is very hungry, then no other thing interests him than food. He dreams
food, he remembers food and he perceives only food.
Safety Needs:
After the physiological needs are fulfilled, safety and security needs become the driving force behind an
individual’s behaviour. These are concerned with physical safety, for example, order, stability, familiarity,
routine, control over one’s life and environment, and certainty, etc. This means a person will eat lunch not
only that day but also every day far into the future.
Safety means not only health-wise but individual needs, other securities like need for saving accounts,
insurance.
(1) Physiological — housing, food, drink, clothing.
(2) Safety — insurance, burglar alarms (Wesco, Auto cop), tire alarms, cars with air bags.
(3) Self-esteem — high status brands, goods or services like owning microwave etc.
(4) Social — greeting cards, holiday packages, team sports equipment.
(5) Self actualization — educational services etc.
Consumer choice is very important in satisfying all these needs, even the physiological ones is of particular
importance to marketing. We can see that how the cola companies have replaced them­selves with tap water
to quench people’s thirst. And in particular why choose Coke rather than Pepsi or vice versa. It is also
important to note that many products can be used to satisfy several different levels of needs for example- a
car, a book, telephone etc.
Critics to Maslow’s Need Hierarchy Level:
(1) Concepts are too general:
It is said that hunger and self-esteem are considered to be similar needs but the former is urgent and
involuntary in nature whereas latter is a conscious and voluntary type.
(2) This theory cannot be tested empirically:
This means that there is no way to measure precisely how satisfied one need must be before the next higher
need becomes active.
Need hierarchy is also used for the basis of market segmentation with specific advertising appeals directed
to individuals on one or more need levels. For example- cigarette ads, soft drink ads etc., often stress a
social appeal by showing a group of young people sharing good times as well as the product advertised. It
is also used for positioning products policies, education and vocational training etc.
Social Needs:
The third level of Maslow’s hierarchy includes such needs as love, affection, belonging and acceptance.
Advertisers of personal care products often emphasize all these social motives in their advertisements.
Egoistic Needs:
This is the fourth level of Maslow’s hierarchy of needs. According to Maslow, this becomes operative when
the social needs of a person are more or less satisfied. Egoistic needs can be inward or outward or both
oriented.
An individual with inward -directed ego needs reflect need for self acceptance, for self-esteem, for success,
independence etc. An outward-directed ego needs includes need for reputation, for status, for recognition
from others.
Self-Actualization:
This was not coined by Maslow but was done by Gestalt theorist called Kurt Goldstein but he popularized
it. Maslow explained the term, in brief, by saying that individual at this stage has need to actualize or
realize all of one’s unique potential and what one can be. This need can never be fulfilled, moreover, very
few of the people reached this level. The more self actualized people become, the more they want to
become. This is a motivation with its own inner dynamic.
Maslow did not say these five levels to form a totally rigid hierarchy. He says that more than one level of
need can be experienced at the same time by the same person. Marketers have generally found Maslow’s
hierarchy to be conceptually stimulating in understanding consumer motivation and for framing out
advertising strategies. Specific products are often targeted at specific level of need, like
Dynamic Nature of Motivation:
Motivation means the driving force within individuals that impels them to action. It is considered to be
dynamic in nature as is constantly changing in reaction to life experiences. Needs and goals are constantly
changing because of an individual’s physical condition, social circle, environment and other experiences.
When one goal is achieved, an individual tries to attain the new ones. If they are unable to attain, either
they keep striving for them or finds out the substitute goal. Psychologists have given certain reasons to
support the statement “Needs and goals are constantly changing”—
(1) An individual’s existing needs are never completely satisfied, they continually impel them to attain or
maintain satisfaction.
(2) As one need is satisfied, the next higher level need emerges.
(3) An individual who achieves their goals set new and higher goals for themselves.
Needs are never fully satisfied:
Most of the human needs are never permanently satisfied. For example, most people need continuous
approval from others to satisfy their social needs. There are various examples in our surroundings that show
temporary goal achievement does not fully satisfy the need for power and every individual keeps striving to
satisfy the need more fully.
Some re­searchers say that new needs emerge as old needs are satisfied. In motivational theories, researcher
have given facts supporting that new higher-order needs emerge as individual fulfills his lower needs
(Maslow’s hierarchy of needs).
Marketers must be aware of the changing needs. For example, now-a-days everybody has be­come
environment conscious, so companies have also adapted environment friendly attitude like using paper
bags for packing or for promotional strategy.
Similarly, automobiles were considered as prestige symbol before and therefore, marketer were promoting
in the same manner. Now, marketers stress more on safety because consumers are going for long drives
with family because of shifting of need satisfaction reasons of people.
Success and failure influence goals:
Individuals set their new and higher goals, if they suc­cessfully achieve the previous ones. This means they
raise their levels of aspiration. The success in the previous goals gives them confidence for reaching higher
goals. So, we can say that success and failure of an individual also plays a major role in goal selection.
Marketers use these effects i.e., success and failure on goal selection for formulating strategies.
Advertisement should not promise more than the product will deliver. This means advertisers should not
create unrealistic expectations for these products as they cause dissatisfaction among consumers.
When, for one reason or another, an individual cannot attain a specific goal then he/she will be directed to a
substitute goal. Substitute goal may not be as satisfactory as the actual one but may try to reduce the
tension. Sometimes substitute goal may be used as a defensive tool for frustration. For example, a women
stop drinking buffalo milk as she is dieting may actually begin to prefer skimmed milk.
Frustration is basically the outcome of inability to achieve a goal. The barriers can be many like financial
limitations or incapability or physical or social environment. Every individual reacts differ­ently to these
situations; some are adaptive, find out the obstacle or go in for a substitute goal. Others may take this as
personal failure and experience feelings of anxiety.
Defense Mechanisms:
Some people are unable to cope with frustration, so they redefine the frustrating situation in order to protect
their self image and defend their self esteem. For example, a young man wants to buy Opel car which he
cannot afford’. The coping individual may select a less expensive car like Maruti Zen etc. An individual
who cannot cope may react with anger toward his boss for not paying him enough money to buy a car.
These possibilities can be categorized under aggression.
Multiplicity of Needs:
A consumer tries to fulfill two or more needs by attaining a single goal. For example, wearing an Allen
Solly shirts and trousers can be for protection or for enhancing societal image.
Needs and Goals Vary:
This is true that the needs and goals vary from an individual to individual. People with different needs may
try to fulfill by selecting the same goal, whereas people with same needs may try and fulfill them by
different goals. For example if women who are actively involved in the office work may be behaving like
this because of recognition in the organization, for promotion, or for security in the job to earn livelihood.
Similarly, these people may be driven by the same need (example, an ego need) to seek fulfillment in
different ways. One of them may want recog­nition through a professional career, other may join a health
club and the other may actively involved in the consumer active movement.
The arousal of any particular set of needs may be the outcome of internal or external stimuli. The internal
stimuli may be the outside environment like product itself, advertisement or other promotional activities.
Physiological:
Bodily needs at any specific moment of time are rooted in an individual’s physiological conditions at that
moment. If the body temperature goes down the person shivers. If a person experiences stomach
contractions then the hunger need is triggered.
Emotional:
It is believed that people who are frustrated try to visualize themselves in a desirable situation often by
daydreaming and think the need to be satisfied.
Cognitive:
Sometimes random thoughts or personal achievements can lead to a cognitive awareness of needs. In some
ads the reminder is provided by the marketer, which triggers instant recognition of need, For example, the
ads given by Vandana Luthra’s Curls and Curves, Alps etc.
Environmental:
Most of the needs are activated by specific cues in the environment. For example, the sight or smell of a
cake or a pastry, fast food commercials on the television (McDonald’s burgers).
Sometimes when you visit your friend’s house and come across a product, which may activate your need.
These types of cues can be given in advertisement. Because of advertisement or other environmental cues
produces a psychological imbalance in the viewer’s mind. For example, a working women comes across a
food processor ad. on television that simplifies the work. The ad. may make her so unhappy that she
experiences severe tension until she buys herself new food processor model.
Two philosophies concerned with the arousal of human motives are:
1. Stimulus- response theory:
This was given by behaviorist school; in this behavior is seen as the response to a stimulus and elements of
conscious thoughts are ignored. For example, impulse buyer who is largely attracted to the stimulus i.e.
external environment in buying situation.
2. Conritive Theory:
This believes that all behaviour is directed at goal achievement. Needs and past experiences are
transformed into attitudes and beliefs that act as predispositions to behaviour. These in turn, help individual
satisfy his/her needs.
Motivational Research:
It refers to the qualitative research designed to uncover the consumer’s subconscious or hidden motivations.
After working on this, researchers found that consumers are not always aware of the reasons for their
actions. Through this, they have tried to uncover underlying feelings, attitudes and emotions related to
products, service or brand to be used etc.
How Motivational Research Developed:
Sigmeud Freud’s psychoanalytical theory provided the basis for the development of motivational research.
We will study this in detail in ‘Personality’. This theory states that unconscious needs or drives (biological
and sexual drives) are at the heart of human motivation and personality.
Later, other researchers adopted Freud’s psychoanalytical techniques to study consumer buy­ing habits.
Now, the research was focused on what consumers did than why they did it. This was done through
qualitative and descriptive studies. For example, cigarettes are bought just because of their sexual
symbolism.
Some drawbacks related to motivational research are that because of its qualitative nature, samples taken
were small and therefore generalized findings about the market were taken. Moreover, projective tests and
in-depth interviews are highly subjective. If the same data is analyzed by three researchers the outcome is
three different results.
Critics for Freud’s theory and other theories are:
1. This theory was specifically designed for use with disturbed people, while behaviorists were interested in
explaining the behaviour of typical consumers.
2. Freudian theory was developed in different social context (19th century Vienna), while motivational
research was introduced in 1960’s post-war America.
In today’s scenario, despite the criticisms or shortcomings, motivational research is still regarded as an
important tool by marketers who want to gain deeper insight into the why’s consumer behaviour. Research
shows that unconscious mind may understand and respond to nonverbal symbols, can form emotional
responses and also their actions can be independent of conscious state of mind. Semiotics is the new
science field that is concerned with the conscious and subconscious meanings of nonverbal symbols to
consumers. This is possible through motivational research.
Marketers use motivational research in developing new ideas for promotional campaigns. That is through
this, they are able to penetrate the consumer’s conscious state of mind. Marketers are now able to explore
consumer reactions to ideas and advertising copy at an early stage, to avoid the financial setback later.
Now profit organizations also use motivational research so that more and more number of people
participate in their organization.
In the end, we can say that motivational research analyzes and usually suggests new ways for Marketers to
present their products to the public.