Download VTU MBA 3rd Sem 16MBAMM301-Consumer Behaviour CB Chapter 3 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAMM301-Consumer Behaviour CB Chapter 3 Important Lecture Notes (MBA Study Material Notes)

Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.?
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk
FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice
Individual influences on
Consumer Behaviour & CRM
Part 1
Module 3
Akash S
Senior Asst Prof
MBA Dept
MITE

? https:// www.youtube.com/watch?v=aGfdubLAtY8
MOTIVATION DEFINED
l ??analysis of the various factors which incite and direct an
individual?s action.? ? ?The internal mechanisms and external stimuli which arouse and
direct our behaviour?
l Motivation psychology is concerned with the question of ?the
origin, the direction and the persistence of behaviour.?
l ??the direction and intensity of effort.? MOTIVATION means
?To stimulate
?To impel
?To move
?To induce
The Basics of Motivation
Motivation is the result of the interaction between a person?s
internalized needs and external influences that determine behavior
?a reason to put forth your best effort?
SO,?WHAT DOES THAT
MEAN?
l Strong link between motivation and the behaviour exhibited
l Motivation arises from the cumulative effect of ?motives?
l Motives are:
? Reasons for doing things
? Relatively stable
? Dispositions
? Acting at the same time (+ve and ?ve)
l Motives can strengthen or antagonise
UNDERSTANDING
MOTIVATION
l Understanding motivation helps answer
WHY?
? Why do some people participate?
? Why do some people continue?
? Why do some people discontinue?
ANSWERING
WHY!
Personality
Physical
Competence
Personal Beliefs
Social Climate
Mood
Situation
Consumer Needs
We use the term ?need? when referring to any human requirement, although there is a
variety of other words that may be sued ? such as wants or desires.
Every individual has needs; some are innate, others are acquired, but, most
importantly, needs underlie all human action. Innate needs are?physiological?(i.e.
biogenic); they include the needs for food, water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, biogenic needs are considered
primary needs or motives.
Consumer Needs
Acquired?needs? are? needs? that? we? learn? in? response? to? our? culture? or?
environment.
They?may?include?the?need?for?self-esteem, prestige, affection, power or learning.
Because? acquired? needs? are? generally? psychological? (i.e.? psychogenic),? they? are?
considered?secondary?needs?or?motives.
Goals
Goals are sought-after results of motivated behaviour.
All behaviour is goal-oriented.
Marketers are even more concerned with consumers? product-specific goals
? that is, the specifically branded or labeled products they select to fulfill their
needs.
For example, Lipton Company wants their consumers to view iced tea as a
good way to satisfy summer thirst (i.e. as a product-specific goal).
Needs and goals are interdependent
Needs and goals are interdependent; neither exist without the other. However,
people are often not as aware of their needs as they are of their goals.
For example, a teenager may not be consciously aware of her social needs but
may join a photography club to meet new friends. A local politician may not be
aware of a power need but may regularly run for public office.
Positive and Negative Motivation
Motivation can be positive or negative in direction. We may feel
a strong driving force towards some object or condition, or a
driving force away from some object or condition.
For example, a person may be impelled towards a restaurant to
fulfil a hunger need and away from motorcycle transportation to
fulfil a safety need.
Rational versus Emotional Motives
Some consumer behaviorists distinguish between so called rational
motives and emotional (or-rational) motives.
Rational - carefully consider all alternatives and choose those that give
them greatest utility.
In a marketing context, rationality implies that consumers select goals
based on totally objective criteria, such as size, weight, price, or
kilometers per liter.
Emotional motives - imply the selection of goals according to personal
or subjective criteria (e.g. pride, fear, or the desire for individuality,
affection, status).
Arousal of Motives
? The arousal of any specific set of needs at a specific point in time may be
caused by internal stimuli found in our physiological conditions, or in our
emotional or cognitive processes, or by external stimuli in the outside
environment.
? For the most part, purchases will not be made unless we experience a need
and are activated to satisfy it.
? Unsatisfied needs create a state of tension.
Arousal of Motives- Influencers
? Physiological Arousal
Bodily needs at any specific moment are rooted in our physiological
condition at that moment.
A drop in blood sugar level, or stomach contractions, will trigger
awareness of a hunger need.
A decrease in body temperature will induce shivering, which makes us
aware of the need for warmth
Arousal of Motives- Influencers
? Emotional Arousal
People who are bored or frustrated in attempts to achieve their goals often
engage in daydreaming, in which they imagine themselves in all sorts of
desirable situations.
These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that ?push? them into goal-oriented behavior.
A young woman who dreams of becoming a business tycoon may enroll in
business school.
A young man who wants to play professional football may identify with a
major league player and use the products he endorses commercially.
Arousal of Motives- Influencers
? Cognitive Arousal (thinking and reasoning)
Sometimes random thoughts or a personal achievement can lead to a
cognitive awareness of needs.
An advertisement that provokes memories of home might trigger
instant recognition of the need to speak with someone special
Arousal of Motives- Influencers
? Environmental Arousal
The set of needs activated at a particular time are often determined by
specific cues in the environment. Without these cues, the needs would
remain dormant.
For example, the six o? clock news, the sight or smell of freshly baked
bread, fast food TV commercials, the children?s return from school ? all
these may arouse the ?need? for food.
Motivational Process
Motivational Theories
Maslow?s Hierarchy of Needs
(1939-1943)
? Maslow argued that needs are hierarchical and that lower level
needs must be met before a person will try to satisfy higher
level needs
? Once a need has been satisfied, it ceases to motivate behavior
? People have different needs and are motivated by different
things
10 ? 25
Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs
(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Maslow?s
Hierarchy
of Needs
Ego Needs
(Prestige, status, self esteem )
Self-Actualisation
(Self-fulfillment)
McGuire?s Psychological Motives
? Cognitive preservation motives
? Cognitive growth motives
? Affective growth motives
? Affective preservation motives
McGuire?s Psychological Motives: Cognitive
Motives
McGuire?s Psychological Motives: Affective
Motives
? The?word?personality?stems?from?the?Latin?word? persona,?which?
referred?to?a?theatrical?mask?work?by?performers?in?order?to?either?
project?different?roles?or?disguise?their?identities.
The Id
? The id is the only component of personality that is present from birth.
? This aspect of personality is entirely unconscious and includes the
instinctive and primitive behaviors.
? According to Freud, the id is the source of all psychic energy, making
it the primary component of personality.
Id
? The?id?is?driven?by?the?pleasure?principle,?which?strives?for?immediate?
gratification?of?all?desires,?wants,?and?needs.?
? If?these?needs?are?not?satisfied?immediately,?the?result?is?a?state?
anxiety?or?tension.
? For example, an increase in hunger or thirst should produce an
immediate attempt to eat or drink.
? The id is very important early in life, because it ensures that an
infant's needs are met.
? If the infant is hungry or uncomfortable, he or she will cry until the
demands of the id are satisfied.
The Ego
? The ego is the component of personality that is responsible for
dealing with reality.
? According to Freud, the ego develops from the id and ensures that
the impulses of the id can be expressed in a manner acceptable in the
real world.
? The ego functions in both the conscious, preconscious, and
unconscious mind.
? The ego operates based on the reality principle, which strives to
satisfy the id's desires in realistic and socially appropriate ways.
? The reality principle weighs the costs and benefits of an action before
deciding to act upon or abandon impulses.
? In many cases, the id's impulses can be satisfied through a process of
delayed gratification--the ego will eventually allow the behavior, but
only in the appropriate time and place.
The Superego
? The last component of personality to develop is the superego.
? The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both
parents and society - our sense of right and wrong.
There are two parts of the superego:
? The ego ideal includes the rules and standards for good behaviors.
? These behaviors include those which are approved of by parental and
other authority figures. Obeying these rules leads to feelings of pride,
value, and accomplishment.
? The conscience includes information about things that are viewed as
bad by parents and society.
? These behaviors are often forbidden and lead to bad consequences,
punishments, or feelings of guilt and remorse.
Neo-Freudian
Assignment
? Discuss various applications of Personality Concepts in Marketing
?
Personality and Understanding Consumer Diversity

Examples include
uncontrollable shopping,
gambling, drug addition,
alcoholism and various
food and eating disorders.
Consumer Ethnocentrism
Consumer response to foreign made products.
? Highly ethnocentric - Swadeshi
? Low ethnocentric - Tends toward foreign goods
Types of Brand Personality
? Ritualistic : Particular occasion
? Weeding gift- Titan
? Crackers - Diwali
? Tractor Paints - South Indian celebration
? Symbolic : the Logo or the Name of brand than its contain
? Devil - Onida TV
? m
? Heritage brands :
? Mysore Sandal :
? Philips :
Types of Brand Personality
? Exclusive brands : Not for every one
? BMW
? Dove
? Belonging Brands :
? Levi-Jeans
? RAY BAN ?Sunglass
? Legendary Brands : Great history behind the brand
? Charminar Cigarettes - 7
th
Nizam
? Lux - ? MTR - Mavali Tiffin Room ?Yagnarayana Maiya
Self-Image
? the idea one has of one's
abilities, appearance, and
personality.

? If actual and ideal self-images are different, consumers may use
products to alter their selves
? Personality vanity: self interest or admiration for one?s own
appearance/achievements
Perception
Akash Savalasang
Sr.Asst Proffesor
Department of Management Studies,
Perception
?Perception refers to the interpretation of what we
take in through our senses. In terms of optical
illusions this means our eyes.?
Simply put, our brains are tricked into seeing
something which may or may not be real.
BASICS OF PERCEPTION AND MARKETING
IMPLICATIONS?
? Individuals?act and recent on the basis of their perceptions,
not on the basis of objective reality.
? In reality is a totally personal phenomenon, based on that
persons need , want s, values, and personal experiences.
? But for the marketer?s consumer perception is more than the
knowledge
Elements of Perception
? Sensation
? The absolute threshold
? The differential threshold
? Subliminal perception
Sensation
? Sensation Is the immediate and direct response of the sensory organs
to stimuli.
? A stimulus may be any unit of input to any of these senses.
? Examples of stimuli include products, packages, brand names,
advertisements and commercials.
? Sensory receptors are the human organs that receive sensory inputs.
Their sensory functions are to see, hear, smell, taste and feel.
? All of these functions are called into play, either singly or in
combinations, in the evaluation and use of most consumer products.
The A bsolute T hreshold
? The lowest level at which an individual can experience a sensation is
called the absolute threshold.
? The point at which a person can detect a difference between
?something? and ?nothing? is that person?s absolute threshold for
that stimulus.
Subliminal perception
? People? are? also? stimulated? below? their? level? of? conscious?
awareness;? that? is,? they can perceive stimuli without being
consciously aware that they are doing so.
? A?subliminal?message? is? a? signal? or? message? designed? to? pass?
below?(sub)?the?normal?limits?of?perception.
? For?example?it? might? be? inaudible? to? the? conscious? mind? (but?
audible? to? the? unconscious? or? deeper? mind)? or? might? be? an?
image? transmitted? briefly? and? unperceived? consciously? and?
yet?perceived?unconsciously.
Subliminal perception
? According?to?several?"experts",?recording?subliminal?messages?under?
music?can?not?only?persuade?people?to?buy?instead?of?steal,?but?it?can?
also?change?our?lives.?
? "Self-Help" subliminal?audio?tapes?can?be?found?in?bookstores,?on?the?
web,?in?shopping?malls?and?in?mail-order?catalogues.?
? Anytime?you?can?listen?to?a?cassette?or?CD?-while?sleeping,?driving?to?
work,?jogging?outside?or?cooking?dinner,?for example- you?can?learn?a?
new?language,?quit?smoking,?lose?weight?or?improve?your?attitude?
without?having?to?consciously?participate?in?the?change.
? Though you may not be aware of what you're hearing, parts of your
brain are still acquiring information.
Subliminal perception
? Subliminal? advertising? --? placing? fleeting? or? hidden?
images?in?commercial?content?in?the?hopes?that?viewers?
will?process?them?unconsciously?--?doesn't?work.
? Recent?research?suggests?that?consumers?do?sometimes?
respond?non-consciously?to?cues?they?aren't?consciously?
aware?are?there.?
? Subliminal?exposure?to?the?Apple?brand?seems?to?make?
people? more? "creative"?than? if?they? are?exposed? to?the?
IBM?brand,?for?instance.
Dynamics of perception
? Human beings are constantly bombarded with stimuli during every
minute and every hour of every day.
? The sensory world is made up of an almost infinite number of discrete
sensations that are constantly and subtly changing.
? One type of input is physical stimuli from the outside environment;
? The other type of input is provided by individuals themselves in the
form of certain predispositions based on previous experience.
Dynamics of perception
? The combination of these two very different kinds of inputs produces
for each of us a very private, very personal picture of the world.
? Because each person is a unique individual, with unique experiences,
needs, wants and desires, and expectations, it follows that each
individual?s perceptions are also unique.
Dynamics of perception
? Perceptional Selection
? Perceptual interpretation
? Perceptual Organization
? Perceived price
? Perceived quality
? Perceived Risk
Perceptional Selection
? Consumers subconsciously exercise a great deal of selectivity
as to which aspects of the environment they perceive.
? An individual may look at some things, ignore others, and
turn away from still others.
? In actually, people receive only a small fraction of the stimuli
to which they were exposed.
1.Perceptional Selection
? Which stimuli get selected depends on two major factors in
addition to the nature of the stimulus itself.
(1) Consumers previous experience as it affects their
expectations. And
(2) their motives at the time.
? Ease of these factors can serve to increase or decrease the
probability that a stimulus will be perceived.
Nature of the stimulus
? Marketing stimuli include an enormous number of variables that affect
the consumers perception, such as-
? Nature Of The Product,
? Its Physical Attributes,
? The Package Design,
? The Brand Name,
? The Advertisements And Commercials Including Copy Claims,
? Choice And Sex Of Model,
? Size Of Ad,
? Topography,
? The Position Of Print Ad Or A Commercial, And The Editorial Environment.
Expectations
? People usually see what they expect to see, and what they
expect to see is usually based on familiarity, .
? In a marketing context, people tend to perceive products and
product attributes according to their own expectations.
Motives
? People tend to perceive the things they need or want;
? the stronger the need the greater the tendency to ignore
unrelated stimuli in the environment.
? In general, there is heightened awareness of stimuli
that are relevant to ones needs and interests and a
decreased awareness of stimuli that are irrelevant to
those needs.
Selective perception
? The consumers ?selection? of stimuli from the environment is based on the
interactions of expectations and motives with the stimulus itself.
These factors give rise to four important concepts concerning perception.
1.Selective Exposure
? Consumers actively seek out messages that they find pleasant or with
which they are sympathetic. And they actively avoid painful or threatening
ones. They also selectively expose themselves to advertisements that
reassure them of the wisdom of their purchase decisions.
2.Perceptual Interpretation
? Stimuli are often highly ambiguous. Some stimuli are weak because of
such factors as poor visibility, brief exposure, high noise level or
constant fluctuations. Even the stimuli that are strong tend to
fluctuate dramatically because of such factors as different angles of
viewing, varying distances, and changing levels if illumination.
Perceptual Distortion
? Individuals are subject to a number of influences that tend to distort
their perceptions, such as physical appearances, stereotypes, first
impressions, jumping to conclusions and the halo effect.
? Consumer imagery
? Consumers have a number of enduring perceptions, or images, that
are particularly relevant to the study of consumer behavior. Products
and brands have symbolic value for individuals, who evaluate them
on the basis of their consistency with their personal pictures of
themselves.
Product Positioning
? The essence of successful marketing is the image that a product has in the
mind of the consumer-that is positioning. Positioning is more important to
the ultimate success of a product than are its actual characteristics,
although products are poorly made will not succeed in the long run on the
basis of image alone.
? Product repositioning
? Regardless of how well positioned a product appears to be, the marketers
may be forced to reposition it in response to market events, such as
competitor cutting into the brands market share or too many competitors
stressing the same attribute.
? Perceptual mapping
? It helps them to know how their product and service appear to the
customer when compared to the competitors? product and services.
3.Perceptual Organization
? People do not experience a numerous stimuli they select from the
environment as separate and discrete sensations rather they tend to
organize them into groups and perceive them as unified wholes.
Figure and Grounds
? People have tendency to organize their perceptions into figure and
ground relationship. How a figure- ground pattern is perceived can be
influenced by prior pleasant or painful associations with one or the
other element in isolation.
4.Perceived price
? It is important to know how the consumer perceives the price, as
high, low or as fair. The consumer must be made to perceive the price
which he is paying is fair. No one will be happy to know that they
have paid twice the price.
Perceived quality
? The consumer usually judges the quality of a product or services with the other
attributes relating with it. Such related factors become important to understand
in order to satisfy the customer.
? Perceived quality of the product
? Cues that relate to the physical characteristics of the product like colour, flavour,
or aroma, size etc
? Perceived quality of the service
? The service is more difficult for the consumer to evaluate; it is intangible, variable
and perishable. They are produced and consumed at the same time.
? Price quality relationship
? The studies have found out that consumers rely on price as an indicator of
product quality, that consumers attribute different quintiles to identical products
that carry different price tag, and that such consumer characteristics as age and
income affect the perception of values.
5-114
Price/Quality Relationship
The perception of price as an indicator of product quality
(e.g., the higher the price, the higher the perceived quality of
the product).
(continued)
5 - 116
Figure 5-9 (continued)
5.Perceived Risk
? The perceived risk varies depending on the person, the product, the
situation and the culture. Some of the customers may perceive high degree
of risk depending on the consumption situation.
Types of Perceived Risk:
? Functional Risk: Is the risk that product will not perform as expected.
? Physical Risk: Is the risk to self and others that the product may pose.
? Financial Risk: Is the risk that the product will not be worth its cost.
? Social Risk: Is the risk that a product choice will bruise the consumer?s ego
? Time Risk: Is the risk that the time spent on in the product such may be
wasted if the product does not perform as expected.
How consumers handle risk
? Consumers develop a self defensive weapon in order to satisfy the
unsatisfied needs.
? Consumers seeks information
? Consumers seek information through his friend family and other
people. They spend more time thinking and getting information about
the product when they associate a high degree of risk with the
purchase.
? Consumers are brand loyal
? Consumers remain brand loyal in order to avoid the risk.
? Consumers select by brand image
? When consumers have no experience with the product they trust the brand name.
The consumers often think about the well-known brand, worth buying and go for
the product.
? Consumers reply on store image
? If the consumers do not have any information about the product they trust the
merchandise buyers of reputable stores and depend on them.
? Consumers buy the most expensive model
? When in doubt the consumers feel that the most expensive model is probably the
best in terms of quality and price.
? Consumers seeking reassurance
? Consumers who are uncertain about the product choice seek for reassurance
through money back guarantees and warranty?s or trial use etc.
How consumers handle risk

FirstRanker.com - FirstRanker's Choice