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© 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University.

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Presentation on theme: "© 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University."— Presentation transcript:

1 © 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University Banwari Mittal Northern Kentucky University Michel Laroche Concordia University

2 © 2008 by Nelson, a division of Thomson Canada Limited 2 CHAPTER 5 Customer Motivation: Needs, Emotions, and Psychographics

3 © 2008 by Nelson, a division of Thomson Canada Limited 3 Conceptual Framework Payer UserBuyer Motivation Needs Maslow’s Needs Hierarchy Murray’s Psychogenic Needs Dichter’s Consumption Needs Motivation Psychographics Values Self-concept Lifestyles Motivation Emotions Types of Emotions Customer Moods Hedonic Consumption

4 © 2008 by Nelson, a division of Thomson Canada Limited 4 The Motivation Process Drive/arousal Cognitive Autonomic (physiological) Emotive Outcome Experience of new state Satisfaction Behaviour Approach or avoidance Identification of Goal-directed behaviours

5 © 2008 by Nelson, a division of Thomson Canada Limited 5 Approach/Avoidance Motives Approach motivation is the desire to attain a goal-object Approach motivation is the desire to attain a goal-object Avoidance motivation is the desire to protect oneself from an object Avoidance motivation is the desire to protect oneself from an object

6 © 2008 by Nelson, a division of Thomson Canada Limited 6 Facets of Motivation Needs Needs Emotions Emotions Psychographics Psychographics

7 © 2008 by Nelson, a division of Thomson Canada Limited 7 NeedsNeeds

8 8 Customer Needs Maslow’s need hierarchy Maslow’s need hierarchy Murray’s psychogenic needs Murray’s psychogenic needs Dichter’s consumption needs Dichter’s consumption needs Needs identified by marketing scholars Needs identified by marketing scholars

9 © 2008 by Nelson, a division of Thomson Canada Limited 9 Maslow’s Hierarchy of Needs 1. Physiological needs (hunger, thirst) 2. Safety and security needs (security, protection) 3. Belongingness and love needs (social needs) 4. Esteem and ego needs (self-esteem, recognition, status) 5. Need for self-actualization (self-development, realization)

10 © 2008 by Nelson, a division of Thomson Canada Limited 10 Murray’s List of Psychogenic Needs NeedDefinitionExamples AutonomyTo be independent and free to act according to impulse; to be unattached, irresponsible; to defy convention. Impulse buying, wearing unconventional clothing DominanceTo direct the behaviour of othersAggressively demanding attention in service establishments NurturanceTo give sympathy and to feed, help, and protect the needy Giving to humanitarian causes ExhibitionTo make an impression; to excite, amaze, fascinate, entertain, shock, intrigue, amuse, or entice others Wearing high-fashion clothing CognizanceTo explore, to ask questions, to seek knowledge Visiting museums, learning about new technology and products ExpositionTo give information and explain, interpret, and lecture. Playing opinion leaders.

11 © 2008 by Nelson, a division of Thomson Canada Limited 11 Dichter’s Consumption Motives MotiveExamples of Consumption Decisions Mastery over environment Kitchen appliances, power tools StatusScotch, owning a car in third-world economies RewardsCandies, gifts to oneself IndividualityGourmet foods, foreign cars, tattoos Social acceptanceCompanionship: sharing tea drinking Love and affectionGiving children toys SecurityFull drawer of neatly ironed shirts MaculinityToy guns, heavy shoes FemininityDecorating (products with a heavy tactile component) EroticismSweets (to lick), gloves (to be removed by women as a form of undressing) DisalienationListening to and calling in talk shows (a desire to feel connected) Moral purity/cleanliness White bread, bathing, cotton fabrics Magic-mysteryBelief in UFOs, religious rituals, crystals (having healing power), visiting Elvis Presley museum and buying related products.

12 © 2008 by Nelson, a division of Thomson Canada Limited 12 Needs Identified by Marketing Scholars Use-situation (i.e., aversive or positive) Use-situation (i.e., aversive or positive) Hedonic (i.e., pleasure seeking) consumption motive Hedonic (i.e., pleasure seeking) consumption motive Utilitarian Utilitarian

13 © 2008 by Nelson, a division of Thomson Canada Limited 13 Three Specific Needs Arousal Arousal Cognition Cognition Attribution Attribution

14 © 2008 by Nelson, a division of Thomson Canada Limited 14 Arousal Seeking Humans have an innate need for stimulation. Humans have an innate need for stimulation.  Optimal level of stimulation  Level of adaptation

15 © 2008 by Nelson, a division of Thomson Canada Limited 15 Curiosity Need for cognition Need for cognition  Need for knowing Tolerance for ambiguity Tolerance for ambiguity Market mavens Market mavens

16 © 2008 by Nelson, a division of Thomson Canada Limited 16 Need for Attribution Attribution motivation Attribution motivation  The motivation to assign causes  Internal attributions  External attributions

17 © 2008 by Nelson, a division of Thomson Canada Limited 17 Internal vs. External Attributions Consistency Consistency Consensus Consensus Distinctiveness Distinctiveness

18 © 2008 by Nelson, a division of Thomson Canada Limited 18 EmotionsEmotions

19 19 Customer Emotions Emotions have three components: Emotions have three components:  Physiological  Behavioral  Cognitive Schachter’s two-factor theory Schachter’s two-factor theory  Autonomic arousal  Cognitive interpretation Marketers can adapt or respond to customer emotions by: Marketers can adapt or respond to customer emotions by:  Designing the stimulus  Aiding the meaning appraisal

20 © 2008 by Nelson, a division of Thomson Canada Limited 20 Scales To Measure Plutchik’s Eight Emotions 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 SadnessGloomy, sad, depressed Acceptance:Helped, accepted, trusting Disgust:Disgusted, offended, unpleasant Anticipation:Alert, attentive, curious Surprise:Puzzled, confused, startled

21 © 2008 by Nelson, a division of Thomson Canada Limited Emotions Typology: Plutchik’s Circle Remorse Disappointment Awe Submission Love Optimism Aggressiveness Contempt

22 © 2008 by Nelson, a division of Thomson Canada Limited 22 Customer Moods Moods are simply short-lived emotions felt less intensely Moods are simply short-lived emotions felt less intensely Marketing stimuli that can induce positive or negative moods are: Marketing stimuli that can induce positive or negative moods are:  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

23 © 2008 by Nelson, a division of Thomson Canada Limited 23 Positive Moods Mood states have consequences in terms of favourable or unfavourable customer response to marketer efforts Mood states have consequences in terms of favourable or unfavourable customer response to marketer efforts Customers have been found to: 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

24 © 2008 by Nelson, a division of Thomson Canada Limited 24 Brand Name Recall Brand name recall is a prerequisite for the choice of the brand 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 Recall depends on the process by which the brand was first encoded in memory Lee and Sternthal state that two factors are important in the encoding process Lee and Sternthal state that two factors are 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

25 © 2008 by Nelson, a division of Thomson Canada Limited 25 Hedonic Consumption: Seeking Emotional Value Hedonic consumption is the use of products that give pleasure through the senses, that help create fantasies, and that give emotional arousal Hedonic consumption is the use of products that give pleasure through the senses, that help create fantasies, and that give emotional arousal  Sensory pleasure  Aesthetic pleasure  Emotional experience  Fun and enjoyment

26 © 2008 by Nelson, a division of Thomson Canada Limited 26 Involvement Involvement Involvement  The degree of personal relevance of an object or product to a customer Situational involvement Situational involvement  The degree of interest in a specific situation or on a specific occasion Enduring involvement Enduring involvement  The degree of interest a customer feels in a product on an ongoing basis Deep involvement Deep involvement  The relationship we develop as users with selected products

27 © 2008 by Nelson, a division of Thomson Canada Limited 27 Deep Involvement Deeply involved consumers: Deeply involved consumers:  Are knowledgeable about the product 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  Want to spend more time in related activities

28 © 2008 by Nelson, a division of Thomson Canada Limited 28 PsychographicsPsychographics

29 29 Psychographics Values Values Self-concept Self-concept Lifestyles Lifestyles

30 © 2008 by Nelson, a division of Thomson Canada Limited 30 Values Terminal values Terminal values  the goals we seek in life (e.g., peace and happiness) Instrumental values Instrumental values  the means or behavioural standards by which we pursue these goals (e.g., honesty)

31 © 2008 by Nelson, a division of Thomson Canada Limited 31 List of Values (LOV) Self-respect Self-respect Self-fulfillment Self-fulfillment Security Security Sense of belonging Sense of belonging Excitement Excitement Sense of accomplishment Sense of accomplishment Fun and enjoyment Fun and enjoyment Being well respected Being well respected Warm relationships with others Warm relationships with others

32 © 2008 by Nelson, a division of Thomson Canada Limited 32 Linking Product Attributes To Customer Values Customers don’t buy products; they buy benefits Customers don’t buy products; they buy benefits Means-end chains Means-end chains  Identifying the connections between product features and customers’ fundamental needs and values

33 © 2008 by Nelson, a division of Thomson Canada Limited 33 Self-esteem 23 feel better about self self image self worth Family Life 21 maintain respect of others better family ties Belonging 22 security camaraderie friendship Avoid Waste 15 doesn’t get warm Smaller Size (10 oz) 7 Filing 9 Less Alcohol 6 Bottle (shape) 5 Label (fancy) 4 Expensive (+)3 Carbonation (+)1 Accomplishment 20 get more from life Reward 16 satisfying compensation Refreshing 10 feel alert, alive Thirst-quenching 12 relieves thirst not too sour Crisp 2 Impress Others 18 successful image Sophisticated Image 17 personal status how others view me More Feminine 13 socially acceptable Quality 8 superior product product quality Socialize 19 (able to) easier to talk open to more sociable Consume Less 11 can’t drink more can sip Avoid Negatives of Alcohol 14 not too drunk not too tired Means-End Chain

34 © 2008 by Nelson, a division of Thomson Canada Limited 34 Self-concept Actual self Actual self  What the person currently is Ideal self Ideal self  What the person would like to become

35 © 2008 by Nelson, a division of Thomson Canada Limited 35 A Scale to Measure Self-Image and Product Image 1.Rugged1234567Delicate 2.Exciting1234567Calm 3.Uncomfortable1234567Comfortable 4.Dominating1234567Submissive 5.Thrifty1234567Indulgent 6.Pleasant1234567Unpleasant 7.Contemporary1234567Uncontemporary 8.Organized1234567Unorganized 9.Rational1234567Emotional 10.Youthful1234567Mature 11.Formal1234567Informal 12.Orthodox1234567Liberal 13.Complex1234567Simple 14.Colourless1234567Colourful 15.Modest1234567Vain

36 © 2008 by Nelson, a division of Thomson Canada Limited 36 Lifestyles Lifestyles are determined by: Lifestyles are determined by:  A customer’s personal characteristics  A customer’s personal context  A customer’s needs and emotions

37 © 2008 by Nelson, a division of Thomson Canada Limited 37 Psychographics As AIO Profiles Psychographic profiles Psychographic profiles  Activities  Interests  Opinions Lifestyle retail brands Lifestyle retail brands

38 © 2008 by Nelson, a division of Thomson Canada Limited 38 Values and Lifestyles (VALS) VALS 1 groups the entire population into nine groups, based on the identities they seek and implement via marketplace behaviours VALS 1 groups the entire population into nine groups, based on the identities they seek and implement via marketplace behaviours VALS 2 groups customers into eight groups based on two dimensions: self- orientation and resources VALS 2 groups customers into eight groups based on two dimensions: self- orientation and resources

39 © 2008 by Nelson, a division of Thomson Canada Limited 39 VALS 1: Nine Lifestyle Segments Integrated Societally Conscious Experiential I-am-me Achievers Emulators Belongers Sustainers Survivors Outer Directed Inner Directed Need Driven

40 © 2008 by Nelson, a division of Thomson Canada Limited 40 ExperiencersFulfilleds MakersBelievers VALS 2: Eight Lifestyles Actualizers Achievers Strivers Strugglers Principle Action High Resources High Innovation Low Resources Low Innovation Status

41 © 2008 by Nelson, a division of Thomson Canada Limited 41 Applications of VALS The best use of VALS is in targeting marketing communications The best use of VALS is in targeting marketing communications The iVALS model divides Internet users into 10 psychographic profiles The iVALS model divides Internet users into 10 psychographic profiles  Wizards  Pioneers  Surfers  Upstreamers  Mainstreamers  Socialites  Sociables  Workers  Seekers Immigrants

42 © 2008 by Nelson, a division of Thomson Canada Limited 42 Compulsive Buying Compulsive buying is motivated less by a desire to possess things, and more as a means of maintaining self-esteem Compulsive buying is motivated less by a desire to possess things, and more as a means of maintaining self-esteem Compulsive buyers: Compulsive buyers:  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

43 © 2008 by Nelson, a division of Thomson Canada Limited 43 Compulsive Consumption Compulsive consumers: Compulsive consumers:  Experience a drive or urge to engage in a behaviour  Deny harmful consequences  Face repeated failure in attempts to control that behaviour

44 © 2008 by Nelson, a division of Thomson Canada Limited 44 Materialism Three dimensions: Three dimensions:  Acquisition centrality  Acquisition as the pursuit of happiness  Possession-defined success

45 © 2008 by Nelson, a division of Thomson Canada Limited 45 A Scale to Measure Materialism SUCCESS SUBSCALE I admire people who own expensive homes, cares, and clothes. I admire people who own expensive homes, cares, and clothes. Some of the most important achievements in life include acquiring material possessions. 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. 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. The things I own say a lot about how well I’m doing in life. I like to own things that impress people. I like to own things that impress people. I don’t pay much attention to the material objects other people own. I don’t pay much attention to the material objects other people own. CENTRALITY SUBSCALE I usually buy only the things I need. I usually buy only the things I need. I try to keep my life simple as far as possessions are concerned. I try to keep my life simple as far as possessions are concerned. The things I own aren’t all that important to to me. The things I own aren’t all that important to to me. I enjoy spending money on things that aren’t practical. I enjoy spending money on things that aren’t practical. Buying things gives me a lot of pleasure. Buying things gives me a lot of pleasure. I like a lot of luxury in my life. I like a lot of luxury in my life. I put less emphasis on material things than most people do. I put less emphasis on material things than most people do. HAPPINESS SUBSCALE I have all the things I really need to enjoy life. 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. 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 wouldn’t be any happier if I owned nicer things. I’d be happier if I could afford to buy more 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. It sometimes bothers me quite a bit that I can’t afford to buy all the things I’d like.

46 © 2008 by Nelson, a division of Thomson Canada Limited 46 The Motivational Processes and the Three Customer Roles UserPayerBuyer Needs One or more needs constitute the primary purpose of product 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. 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. Psychographics Users seek and use many products 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 psychographics. Comparison shoppers, “shop till you drop,” shoppers at late night, “shopper types.”


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