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Unit-III
PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
Concepts such as motivation and personality;
perception; learning; values, beliefs and attitudes; and
lifestyle are useful for interpreting buying processes
and directing marketing efforts.
Motivation
Motivation is the energizing force that causes
behaviour that satisfies a need.
An individual consumer may purchase an item
that they believe will further the own goals or will
satisfy a need they have. For example, a shopper may
stop at the mall food court because they are
hungry, and may select a salad to eat because they
believe it will help them achieve weight loss or a
healthier lifestyle
Define Motivation
 Motivation can be defined as the processes that
account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.
 The following are the three key elements in this
definitions :
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Consumer Motivation
Motivation is an inner drive that reflects goal-
directed arousal. In a consumer behaviour context, the
result is a desire for a product, service, or experience.
It is the drive to satisfy needs and wants, both physiological
and psychological, through the purchase and use of
products and services
Five stages of the motivation process:
Need
Drive (force)
Want or desire
Goal (purpose)
Behaviour(action)
Behavioural Models of
Motivation
Abraham Maslow’s “Need
Hierarchy Theory”:
Maslow’s Hierarchy of Needs
Self-
actualization
Esteem
Belongingness
Security
PhysiologyFood
Achievement
Status
Friendship
Stability
Job
Friends
Pension
Base
NEEDS
General Examples Organizational Examples
jobChallenging
title
at work
plan
salary
Types of Motivation
 Positive Motivation(Financial and non Financial )
 Negative motivation
The Dynamic Nature of Motivation
 Needs are never fully satisfied
 New needs emerge as old needs are satisfied
 People who achieve their goals set new and higher
goals for themselves
Arousal of Motives
 The arousal of any particular set of needs at a specific
moment in time may be caused by internal stimuli
found in the individual’s physiological condition, by
emotional or cognitive processes or by stimuli in
outside environment.
 Physiological arousal
 Emotional arousal
 Cognitive arousal
 Environmental arousal
Perception
 Perception is the process through which the
information from outside environment is selected,
received, organized and interpreted to make it
meaningful to us.
 According to S.P. Robbins, “Perception may be defined
as a process by which individuals organize and
interpret their sensory impressions in order to give
meaning to their environment.”
Factors that influence perception:
1) Factors in the perceiver
Attitudes
Motives
Interests
Experience
Expectations
2) Factors in the situation
Time
Work setting
Social setting
3)Factors in the target
Novelty (innovation)
Sounds
Size
Background
Proximity(closeness)
Similarity
Learning
Define Learning
Learning may be defined as “The process of
acquiring the ability to respond adequately to a
situation which may or may not have been previously
encountered, the favourable modification of response
tendencies consequent upon previous experience; the
process of acquiring insight into situation.”
According to E.R.Hilgar, “Learning is a
relatively permanent change in behavior that occurs as
a result of prior experience.”
Leaning theories
 Classical conditioning-(e.g. Dog , bell, time,etc)
 Operant conditioning ((e.g. if you insert a coin in coffee
machine you can get coffee. You leant from past experience
how to cause the environment to deliver a cup of coffee)
 Social conditioning (the ability of individual by observing
others. i.e. can leant from parents, peers, boss, etc.people
gain elf confident when someone else do it than are simply
told what to do)
 Cognitive conditioning(people draw on their experience
and use past learning as the basis for present experience)
What are the various Elements of Learning
 Motivation
 Cues(indicator e.g.“ first step is the best step” and base
on time it varies)
 Response(choice of behaviour)
 Reinforcement(consequence i.e. support,back up))
How learning Influences on Consumer Behavior.
 Recognition and Recall
 Cognitive Responses to Advertising
 Attitudinal and Behavioural Measures of Brand
Loyalty
Define Personality
 The term Personality has been derived from Latin
word “Personare” which means ‘to speak through’.
 Personality is an individual’s characteristics
response tendencies across similar situations.
 According to Schiffman and Kanuk, “Personality
can be defined as those inner psychological
characteristics that both determine and reflect how a
person responds to his or her environment.”
The Nature of Personality
 Impact (force)Behaviours and Actions
 Psychological and physiological(shaped by
environment i.e. life experience and our parents
genetic)
 Personality reflects Individual Differences
 Personality is consistent(steady) and enduring(long
term)
 Personality can change
Personality Framework
Significance of Personality
 Differential Features
 Differential Emotional Reactions
 Differential Stress Handling
Theories of Personality
1) Type (individual are categorised depending on their physical
characteristics e.g. age)
2)Trait(factor analysis and rating scale used, he will be describe
himself about his attitude, feeling , etc and asked with other
person to evaluate from what he knows about individual)
3)Psychoanalytic (comprises id, ego and super ego) (a hunger
man can (relax) experience partial gratification of his hunger by
imagining a delicious meal- id, ego- man cannot satisfy his
hunger by eating image, reality must considered, super ego-
judge whether an action is right or Wrong according to the
standard of society,
4) Social learning (stresses on the change of behaviour
through learning from several sources i.e. the person action in
given situation according to specific characteristics of situation)
5) Humanistic (behaviour depends on how an individual
perceives the world)
ATTITUDE
Definition
Attitude is defined as a mental, emotional or
rational predisposition with regard to a
fact, state, person or an object. In the context of
consumer behaviour we are studying the attitude of
buyers towards all the relevant attributes of a product
or services as well as the marketer and market.
It is feeling or beliefs of an individual or
groups of people.
Characteristics of Attitude
The attitudes that have significant influence on an
individual’s behaviour & personality have certain
characteristics. Attitude is formed on the basis of
learning, knowledge, information, upbringing
(education), thinking, lifestyle, experience,
predisposition (tendency), belief, faith, outlook,
communication, observation, etc. It can be good or
bad, optimistic or pessimistic, positive or negative,
broad or narrow friendly or unfriendly & so on. It may
be consistent, may change with several external factors like
time or environment, may be influenced or even can
influence another attitude
Three components of attitude
ABC MODEL
1. Affective (feelings, sentiments and emotions about
some idea, person, event)
2. Behaviour (predisposition (tendency) to get on a
favourable or unfavourable evaluation of something)
3. Cognitive (beliefs, opinion, knowledge, or
information held by individual)
Self and Self-Image
 Self-image
A person’s perceptions of his/her self
 People have multiple selves
Different selves in different situations
Different Self Images
 Actual Self-Image
How you see your self
 Ideal Self-Image
How you would like to see yourself
 Social Self-Image
How you think others see you
 Ideal Social Self-Image
How you would like others to see you
 Expected Self-Image
How you expect to be in the future
 “Ought-to” Self
The qualities that you think you should possess
Consumer Expectation.
 Consumer Expectation may be defined as the desires
or wants of the consumer.
These expectations are in most instances,
different from what the customer gets in a real-life
situation from the organization
Consumer Expectations and
Satisfactions
 Consumer expectations and satisfaction also impact
purchase decisions.
 Expectations are defined as beliefs about a product’s or
service’s attributes or performance at sometime in the
future and are a key determinant of satisfaction.
 Consumer Expectation + Lower customer service =
Dissatisfaction.
 Consumer Expectation+ Equal customer service=
Satisfaction
 Consumer Expectation + Higher customer service=
Delighted Satisfaction
The Issues relating to Consumer
Expectation.
 Knowledge and Expectation of Consumer.
 Level of Expectation
 Customer Satisfaction
 Performance Significantly below Expectations
 Exceeding Expectations
 Components of Expectations
Define Consumer Satisfaction
Customer Satisfaction is the attitude-like feeling of a
customer towards a product or service after it has been
used.
It is generally described as the full meeting of one’s
expectation
The Factors Influencing Consumer Satisfaction
 Product
 Sales Activity
 After-Sales
 Culture
Various Benefits of Consumer Satisfaction
 Loyalty
 Repeat Purchase
 Referrals
 Retention(survey)
 Reduced Costs
 Premium Prices
Managing Consumer Satisfaction
There are several things that marketers can to manage
customer satisfaction and leverage it in their
marketing efforts.
 Understand what can Go Wrong
 Focus on Controllable Issues
 Manage Customer Expectations
 Offer Satisfaction Guarantees
 Make it Easy for customers to complain
 Create relationship programs

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Entrepreneurship development Unit -III by kar

  • 2. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Concepts such as motivation and personality; perception; learning; values, beliefs and attitudes; and lifestyle are useful for interpreting buying processes and directing marketing efforts.
  • 3. Motivation Motivation is the energizing force that causes behaviour that satisfies a need. An individual consumer may purchase an item that they believe will further the own goals or will satisfy a need they have. For example, a shopper may stop at the mall food court because they are hungry, and may select a salad to eat because they believe it will help them achieve weight loss or a healthier lifestyle
  • 4. Define Motivation  Motivation can be defined as the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.  The following are the three key elements in this definitions : Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries
  • 5. Consumer Motivation Motivation is an inner drive that reflects goal- directed arousal. In a consumer behaviour context, the result is a desire for a product, service, or experience. It is the drive to satisfy needs and wants, both physiological and psychological, through the purchase and use of products and services Five stages of the motivation process: Need Drive (force) Want or desire Goal (purpose) Behaviour(action)
  • 6. Behavioural Models of Motivation Abraham Maslow’s “Need Hierarchy Theory”:
  • 7. Maslow’s Hierarchy of Needs Self- actualization Esteem Belongingness Security PhysiologyFood Achievement Status Friendship Stability Job Friends Pension Base NEEDS General Examples Organizational Examples jobChallenging title at work plan salary
  • 8. Types of Motivation  Positive Motivation(Financial and non Financial )  Negative motivation
  • 9. The Dynamic Nature of Motivation  Needs are never fully satisfied  New needs emerge as old needs are satisfied  People who achieve their goals set new and higher goals for themselves
  • 10. Arousal of Motives  The arousal of any particular set of needs at a specific moment in time may be caused by internal stimuli found in the individual’s physiological condition, by emotional or cognitive processes or by stimuli in outside environment.  Physiological arousal  Emotional arousal  Cognitive arousal  Environmental arousal
  • 11. Perception  Perception is the process through which the information from outside environment is selected, received, organized and interpreted to make it meaningful to us.  According to S.P. Robbins, “Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.”
  • 12. Factors that influence perception: 1) Factors in the perceiver Attitudes Motives Interests Experience Expectations 2) Factors in the situation Time Work setting Social setting 3)Factors in the target Novelty (innovation) Sounds Size Background Proximity(closeness) Similarity
  • 13. Learning Define Learning Learning may be defined as “The process of acquiring the ability to respond adequately to a situation which may or may not have been previously encountered, the favourable modification of response tendencies consequent upon previous experience; the process of acquiring insight into situation.” According to E.R.Hilgar, “Learning is a relatively permanent change in behavior that occurs as a result of prior experience.”
  • 14. Leaning theories  Classical conditioning-(e.g. Dog , bell, time,etc)  Operant conditioning ((e.g. if you insert a coin in coffee machine you can get coffee. You leant from past experience how to cause the environment to deliver a cup of coffee)  Social conditioning (the ability of individual by observing others. i.e. can leant from parents, peers, boss, etc.people gain elf confident when someone else do it than are simply told what to do)  Cognitive conditioning(people draw on their experience and use past learning as the basis for present experience)
  • 15. What are the various Elements of Learning  Motivation  Cues(indicator e.g.“ first step is the best step” and base on time it varies)  Response(choice of behaviour)  Reinforcement(consequence i.e. support,back up)) How learning Influences on Consumer Behavior.  Recognition and Recall  Cognitive Responses to Advertising  Attitudinal and Behavioural Measures of Brand Loyalty
  • 16. Define Personality  The term Personality has been derived from Latin word “Personare” which means ‘to speak through’.  Personality is an individual’s characteristics response tendencies across similar situations.  According to Schiffman and Kanuk, “Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment.”
  • 17. The Nature of Personality  Impact (force)Behaviours and Actions  Psychological and physiological(shaped by environment i.e. life experience and our parents genetic)  Personality reflects Individual Differences  Personality is consistent(steady) and enduring(long term)  Personality can change
  • 19. Significance of Personality  Differential Features  Differential Emotional Reactions  Differential Stress Handling
  • 20. Theories of Personality 1) Type (individual are categorised depending on their physical characteristics e.g. age) 2)Trait(factor analysis and rating scale used, he will be describe himself about his attitude, feeling , etc and asked with other person to evaluate from what he knows about individual) 3)Psychoanalytic (comprises id, ego and super ego) (a hunger man can (relax) experience partial gratification of his hunger by imagining a delicious meal- id, ego- man cannot satisfy his hunger by eating image, reality must considered, super ego- judge whether an action is right or Wrong according to the standard of society, 4) Social learning (stresses on the change of behaviour through learning from several sources i.e. the person action in given situation according to specific characteristics of situation) 5) Humanistic (behaviour depends on how an individual perceives the world)
  • 21. ATTITUDE Definition Attitude is defined as a mental, emotional or rational predisposition with regard to a fact, state, person or an object. In the context of consumer behaviour we are studying the attitude of buyers towards all the relevant attributes of a product or services as well as the marketer and market. It is feeling or beliefs of an individual or groups of people.
  • 22. Characteristics of Attitude The attitudes that have significant influence on an individual’s behaviour & personality have certain characteristics. Attitude is formed on the basis of learning, knowledge, information, upbringing (education), thinking, lifestyle, experience, predisposition (tendency), belief, faith, outlook, communication, observation, etc. It can be good or bad, optimistic or pessimistic, positive or negative, broad or narrow friendly or unfriendly & so on. It may be consistent, may change with several external factors like time or environment, may be influenced or even can influence another attitude
  • 23. Three components of attitude ABC MODEL 1. Affective (feelings, sentiments and emotions about some idea, person, event) 2. Behaviour (predisposition (tendency) to get on a favourable or unfavourable evaluation of something) 3. Cognitive (beliefs, opinion, knowledge, or information held by individual)
  • 24. Self and Self-Image  Self-image A person’s perceptions of his/her self  People have multiple selves Different selves in different situations
  • 25. Different Self Images  Actual Self-Image How you see your self  Ideal Self-Image How you would like to see yourself  Social Self-Image How you think others see you  Ideal Social Self-Image How you would like others to see you  Expected Self-Image How you expect to be in the future  “Ought-to” Self The qualities that you think you should possess
  • 26. Consumer Expectation.  Consumer Expectation may be defined as the desires or wants of the consumer. These expectations are in most instances, different from what the customer gets in a real-life situation from the organization
  • 27. Consumer Expectations and Satisfactions  Consumer expectations and satisfaction also impact purchase decisions.  Expectations are defined as beliefs about a product’s or service’s attributes or performance at sometime in the future and are a key determinant of satisfaction.  Consumer Expectation + Lower customer service = Dissatisfaction.  Consumer Expectation+ Equal customer service= Satisfaction  Consumer Expectation + Higher customer service= Delighted Satisfaction
  • 28. The Issues relating to Consumer Expectation.  Knowledge and Expectation of Consumer.  Level of Expectation  Customer Satisfaction  Performance Significantly below Expectations  Exceeding Expectations  Components of Expectations
  • 29. Define Consumer Satisfaction Customer Satisfaction is the attitude-like feeling of a customer towards a product or service after it has been used. It is generally described as the full meeting of one’s expectation The Factors Influencing Consumer Satisfaction  Product  Sales Activity  After-Sales  Culture Various Benefits of Consumer Satisfaction  Loyalty  Repeat Purchase  Referrals  Retention(survey)  Reduced Costs  Premium Prices
  • 30. Managing Consumer Satisfaction There are several things that marketers can to manage customer satisfaction and leverage it in their marketing efforts.  Understand what can Go Wrong  Focus on Controllable Issues  Manage Customer Expectations  Offer Satisfaction Guarantees  Make it Easy for customers to complain  Create relationship programs