CUSTOMER BEHAVIOR: A MANAGERIAL PERSPECTIVE PART 2: Foundations of Customer Behavior CHAPTER 5 Customer Motivation: Needs, Emotions, and Psychographics Copyright © 2002 1 All rights reserved. Conceptual Framework Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Motivation Emotions • Types of Emotions • Customer Moods • Hedonic Consumption Motivation Needs • Maslow’s Needs Hierarchy • Murray’s Psychogenic Needs • Dichter’s Consumption Needs Motivation Psychographics Buyer User Payer • Values • Self-concept • Lifestyles Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 2 The Motivation Process Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Drive/arousal • Cognitive • Autonomic (physiological) • Emotive Outcome Identification of • Experience of new state • Satisfaction • Goal-directed behavior Behavior • Approach or avoidance Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 3 Approach/Avoidance Motives Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Approach motivation is the desire to attain a goal-object Avoidance motivation is the desire to protect oneself from an object Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 4 Facets of Motivation Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Needs Emotions Psychographics Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 5 Needs Copyright © 2002 6 All rights reserved. Customer Needs Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Maslow’s need hierarchy Murray’s psychogenic needs Dichter’s consumption needs Needs identified by marketing scholars Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 7 Maslow’s Need Hierarchy Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Physiological needs (hunger, thirst) Safety and security needs (security, protection) Belongingness and love needs (social needs) Esteem and ego needs (self-esteem, recognition, status) Need for self-actualization (self-development, realization) Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 8 Murray’s List of Psychogenic Needs Customer Behavior: A Managerial Perspective Need PART 2 Definition CHAPTER 5 Examples Autonomy To be independent and free to act according to impulse; to be unattached, irresponsible; to defy convention. Impulse buying, wearing unconventional clothing Dominance To direct the behavior of others Aggressively demanding attention in service establishments Nurturance To give sympathy and to feed, help, and protect the needy Giving to humanitarian causes Exhibition To make an impression; to excite, amaze, fascinate, entertain, shock, intrigue, amuse, or entice others Wearing high-fashion clothing Cognizance To explore, to ask questions, to seek knowledge Visiting museums, learning about new technology and products Exposition To give information and explain, interpret, and lecture. Playing opinion leaders. Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 9 Ernest Dichter’s Consumption Motives Customer Behavior: A Managerial Perspective PART 2 Motive CHAPTER 5 Examples of Consumption Decisions Mastery over environment Kitchen appliances, power tools Status Scotch, owning a car in third-world economies Rewards Candies, gifts to oneself Individuality Gourmet foods, foreign cars, tattoos Social acceptance Companionship: sharing tea drinking Love and affection Giving children toys Security Full drawer of neatly ironed shirts Maculinity Toy guns, heavy shoes Femininity Decorating (products with heavy tactile component) Eroticism Sweets (to lick), gloves (to be removed by women as a form of undressing) Disalienation Listening to and calling in talk shows (a desire to feel connected) Moral purity/cleanliness White bread, bathing, cotton fabrics Copyright © 2002 Magic-mystery All rights reserved. Belief in UFOs, religious rituals, crystals (having healing power), visiting Elvis Presley museum and buying related products. Copyright © 1999 by Thomas Southwestern. All rights reserved. 10 Needs Identified by Marketing Scholars Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Use-situation (i.e., aversive or positive) Hedonic (i.e., pleasure seeking) consumption motive Utilitarian Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 11 Three Specific Needs Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Arousal Cognition Attribution Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 12 Arousal Seeking Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Humans have an innate need for stimulation. Optimal level of stimulation Level of adaptation Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 13 Curiosity Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Need for cognition Need for knowing Tolerance for ambiguity Market mavens Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 14 Need for Attribution Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Attribution motivation The motivation to assign causes Internal attributions External attributions Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 15 Internal vs. External Attributions Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Consistency Consensus Distinctiveness Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 16 Emotions Copyright © 2002 17 All rights reserved. Customer Emotions Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Emotions have three components: Physiological Behavioral Cognitive Schachter’s two-factor theory Autonomic arousal Cognitive interpretation Marketers can adapt or respond to customer emotions by: Copyright © 2002 All rights reserved. Designing the stimulus Aiding the meaning appraisal Copyright © 1999 by Thomas Southwestern. All rights reserved. 18 Scales To Measure Plutchik’s Eight Emotions Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Plutchik’s emotions can be measured by rating the following triads of adjectives, each rated on, say, a five-point scale, ranging from Not at all to Very strongly. How do you feel at the moment? Fear: Threatened, frightened, intimidated Anger: Hostile, annoyed, irritated Joy: Happy, cheerful, delighted Sadness Gloomy, sad, depressed Acceptance: Helped, accepted, trusting Disgust: Disgusted, offended, unpleasant Anticipation: Alert, attentive, curious Copyright © 2002 Surprise: All rights reserved. Puzzled, confused, startled Copyright © 1999 by Thomas Southwestern. All rights reserved. 19 Emotions Typology: Plutchik’s Circle Customer Behavior: A Managerial Perspective PART 2 Optimism Love Aggressiveness Anticipation Joy Anger Acceptance Contempt Submission Fear Disgust Sadness Surprise Awe Remorse Copyright © 2002 All rights reserved. Disappointment Copyright © 1999 by Thomas Southwestern. All rights reserved. CHAPTER 5 Customer Moods Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Moods are simply short-lived emotions felt less intensely Marketing stimuli that can induce positive or negative moods are: Copyright © 2002 All rights reserved. The ambiance of the store or service delivery facility The demeanor of the salesperson The sensory features of the product The tone and manner of advertising The content of the message itself from a salesperson or in the advertisement Copyright © 1999 by Thomas Southwestern. All rights reserved. 21 Positive Moods Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Mood states have consequences in terms of favorable or unfavorable customer response to marketer efforts Customers have been found to: Linger longer in positive mood environments Recall those advertisements more that had created positive moods Feel more positive toward brands based on advertising that created feelings of warmth Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 22 Brand Name Recall Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Brand name recall is a prerequisite for the choice of the brand Recall depends on the process by which the brand was first encoded in memory Researchers Lee and Sternthal state that two factors important in the encoding process Brand rehearsal – how frequently and recently, the brand has been exposed in the memory as a member of a particular category Relational elaboration - the process by which consumers link the brands to the specific categories they belong to Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 23 Hedonic Consumption: Seeking Emotional Value Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Hedonic consumption is the use of products and services that give pleasure through the senses, that help create fantasies, and that give emotional arousal Sensory pleasure Aesthetic pleasure Emotional experience Fun & enjoyment Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 24 Involvement Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Involvement The degree of personal relevance of an object or product or service to a customer Situational involvement the degree of interest in a specific situation or on a specific occasion Enduring involvement The degree of interest a customer feels in a product or service on an ongoing basis Deep involvement Copyright © 2002 All rights reserved. The relationship we develop as users with selected products and services Copyright © 1999 by Thomas Southwestern. All rights reserved. 25 Deep Involvement Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Deeply involved consumers: Are knowledgeable about the product or service and thus can act as opinion leaders Consume a greater quantity of the product and also buy related products Are less price sensitive for that product and are willing to spend well Seek constant information about products and services Want to spend more time in related activities Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 26 Psychographics Copyright © 2002 27 All rights reserved. Psychographics Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Values Self-concept Lifestyles Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 28 Values Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Terminal values the goals we seek in life (e.g., peace and happiness) Instrumental values the means or behavioral standards by which we pursue these goals (e.g., honesty) Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 29 List of Values (LOV) Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Self-respect Self-fulfillment Security Sense of belonging Excitement Sense of accomplishment Fun and enjoyment Being well respected Warm relationships with others Copyright © 1999 by Thomas Southwestern. All rights reserved. PART 2 CHAPTER 5 30 Linking Product Attributes To Customer Values Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Customers don’t buy products or services; they buy benefits Means-end chains Identifying the connections between product/service features and customers’ fundamental needs and values Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 31 Means-End Chain Accomplishment 20 • get more from life Self-esteem 23 • feel better about self • self image • self worth Belonging 22 • security • camaraderie • friendship Impress Others 18 • successful image Reward 16 • satisfying • compensation Thirst-quenching 12 • relieves thirst • not too sour Refreshing 10 • feel alert, alive Carbonation (+)1 Crisp 2 Family Lite 21 • maintain respect of others • better family ties Socialize 19 (able to) • easier to talk • open to • more sociable Sophisticated Image 17 • personal status • how others view me More Feminine 13 • socially acceptable Avoid Negatives of Alcohol 14 • not too drunk • not too tired Quality 8 • superior product • product quality Consume Less 11 • can’t drink more • can sip Expensive (+)3 Label (fancy) 4 Bottle (shape) 5 Less Alcohol 6 Filing 9 Avoid Waste 15 • doesn’t get warm Smaller Size (10 oz) Self-concept Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Actual self What the person currently is Ideal self What the person would like to become Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 33 A Scale to Measure Self-Image and Product Image Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 1. Rugged 1 2 3 4 5 6 7 Delicate 2. Exciting 1 2 3 4 5 6 7 Calm 3. Uncomfortable 1 2 3 4 5 6 7 Comfortable 4. Dominating 1 2 3 4 5 6 7 Submissive 5. Thrifty 1 2 3 4 5 6 7 Indulgent 6. Pleasant 1 2 3 4 5 6 7 Unpleasant 7. Contemporary 1 2 3 4 5 6 7 Uncontemporary 8. Organized 1 2 3 4 5 6 7 Unorganized 9. Rational 1 2 3 4 5 6 7 Emotional 10. Youthful 1 2 3 4 5 6 7 Mature 11. Formal 1 2 3 4 5 6 7 Informal 12. Orthodox 1 2 3 4 5 6 7 Liberal 13. Complex 1 2 3 4 5 6 7 Simple 14.Copyright Colorless © 2002 1 2 3 4 5 6 7 Colorful 1 2 3 4 5 6 7 Vain 15. Modest All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 34 Lifestyle Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Lifestyles are determined by: A customer’s personal characteristics A customer’s personal context A customer’s needs and emotions Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 35 Psychographics As AIO Profiles Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Psychographic profiles Activities Interests Opinions Lifestyle retail brands Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 36 Values And Lifestyles (VALS) Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 VALS 1 groups the entire U.S. population into nine groups, based on the identities they seek and implement via marketplace behaviors VALS 2 groups U.S. customers into eight groups based on two dimensions: selforientation and resources Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 37 VALS 1: Nine Lifestyle Segments in the United States Customer Behavior: A Managerial Perspective PART 2 Integrated Societally Conscious Achievers CHAPTER 5 Inner Directed Experiential Emulators I-am-me Belongers Outer Directed Sustainers Need Driven Survivors Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 38 VALS 2: Eight American Lifestyles Customer Behavior: A Managerial Perspective PART 2 High Resources High Innovation Actualizers Principle Status Action Fulfilleds Achievers Experiencers Believers Strivers Makers Strugglers Copyright © 2002 All rights reserved. CHAPTER 5 Copyright © 1999 by Thomas Southwestern. All rights reserved. Low Resources Low Innovation 39 Applications of VALS Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 The best use of VALS is in targeting marketing communications The iVALS model divides Internet users into 10 psychographic profiles Copyright © 2002 All rights reserved. Wizards Pioneers Surfers Upstreamers Mainstreamers Socialites Sociables Workers Seekers Immigrants Copyright © 1999 by Thomas Southwestern. All rights reserved. 40 Compulsive Buying Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Compulsive buying is motivated less by a desire to possess things, and more as a means of maintaining self-esteem Compulsive buyers: Copyright © 2002 All rights reserved. Have a lower self-esteem Are more depressed Show a greater tendency to fantasize Experience greater emotional lift at the time of purchase Experience remorse in the post-purchase phase Accumulate a much higher debt Copyright © 1999 by Thomas Southwestern. All rights reserved. 41 Compulsive Consumption Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Compulsive consumers: Experience a drive or urge to engage in a behavior Deny harmful consequences Face repeated failure in attempts to control that behavior Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 42 Materialism Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 Three dimensions: Acquisition centrality Acquisition as the pursuit of happiness Possession-defined success Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 43 A Scale to Measure Materialism Customer Behavior: A Managerial Perspective PART 2 SUCCESS SUBSCALE I admire people who own expensive homes, cares, and clothes. Some of the most important achievements in life include acquiring material possessions. I don’t place much emphasis on the amount of material objects that people own as a sign of success. The things I own say a lot about how well I’m doing in life. I like to own things that impress people. I don’t pay much attention to the material objects other people own. CENTRALITY SUBSCALE I usually buy only the things I need. I try to keep my life simple as far as possessions are concerned. Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. CHAPTER 5 The things I own aren’t all that important to to me. I enjoy spending money on things that aren’t practical. Buying things gives me a lot of pleasure. I like a lot of luxury in my life. I put less emphasis on material things than most people do. HAPPINESS SUBSCALE I have all the things I really need to enjoy life. My life would be better if I owned certain things I don’t have. I wouldn’t be any happier if I owned nicer things. I’d be happier if I could afford to buy more things. It sometimes bothers me quite a bit that I can’t afford to buy all the things I’d like. All rights reserved. 44 The Motivational Processes and the Three Customer Roles Customer Behavior: A Managerial Perspective PART 2 CHAPTER 5 User Payer Buyer Needs One or more needs constitute the primary purpose of product or service usage. • Fear of being ripped off (security, esteem). • Donors to worthy causes (esteem). • Payers for gifts (esteem, social needs). • Personal safety in shopping areas. • Seek social interaction with salespersons and service providers. • Need to protect and look to enhancing self esteem in marketplace experiences. Emotions Emotional value from products & services. • Emergency expenses and involuntary expenses, cause negative emotions • Debt causes grief to many payers. • Spending on self and for loved ones causes positive emotions. • Shopping activity is sometimes enjoyable, and, at other times, boring. • Finding a deal gives a thrill. Psycho Users seek and use many products and services to live their lifestyles, to fit in with their psychographics. • Being a spend thrift or a big spender, being a credit card user, accumulating debt or eager to stay debt-free are psychogrpahics. • Comparison shoppers, “shop till you drop,” shoppers at late night, “shopper types.” Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 45