Consumer Decision Making & Relationship Marketing Friday, May 28 2010 

The Consumer’s decision to purchase or not to purchase a product or service is an important moment for most marketers. It can signify whether a marketing strategy has been successful or not. Therefore, marketing people are interested in the consumer’s decision making process.

For a consumer to make a decision, more than one alternative must be available, including the alternative called making a decision to not buy or not buy now.

The various models of 

  1. Consumers View
  2. Passive View
  3. Cognitive View
  4. Emotional View

depict consumers and their decision making processes in distinctly different ways.

An overview consumer decision making model ties together the psychologist, social,and cultural concepts into easily understood network. This decision model has 3 sets of variables: input variables, process variables and output variables.

Input variables that affect the decision – making process include commercial marketing efforts, as well as non commercial influences from the customer’s sociocultural environment. The decision process variables are influenced by the consumer’s psychological field, including the evoked set or the brands in a particular product category considered in making a purchase choice.

The psychological field influences the consumer’s recognition of a need, pre purchase search for information and evaluation of alternatives.

The output phase of the model includes the actual purchase (either trial or repeat purchase) and post purchase evaluation. Both pre purchase and post purchase evaluation feeds back in the form of experience into the consumer’s psychological field and serves to influence future decision making process.

GIFTING:

The process of gift exchange is an important part of consumer behaviour. 

Various gift giving and gift receiving relationships are captured by the following 5 specific categories in the gifting classification scheme:

  1. Intergroup gifting: A group gives a gift to another group.
  2. Intercategory gifting: An individual gives a gift to a group or a group gives a gift to an individual.
  3. Intragroup gifting: A group gives a gift to itself or its members.
  4. InterPersonal gifting: An individual gives a gift to another individual
  5. Intrapersonal gifting: A Self Gift.

Consumer behaviour is not must making a purchase, it also includes the full range of experiences associated with using products or services. It includes the sense of pleasure and satisfaction derived from possessing or collecting “things”. The outputs of consumption are the changes in feelings,moods, attitudes, reinforcement of lifestyles, an enhanced sense of self; satisfaction of a consumer related need; belonging to groups; and expressing and entertaining oneself.

Among other things, consuming includes the simple utility of using a Superior product, the stress reduction of a vacation, the sense of having a “sacred” possession, and the pleasures of a hobby or a collection. Some possessions serve to assist consumers in their effort to create a personal meaning and to maintain a sense of the past.

Relationship Marketing impacts consumer’s decisions and their consumption satisfaction. Firms establish loyalty programs to foster usage loyalty and a commitment to continued usage of their products and services.

Relationship marketing is all about buildign trust between the firm and its customers and keeping promises made to the customers. Therefore the focus is always on developing long term bonds with customers by making them fee special and by providing them with personalized services.

How is your relationship marketing doing?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Consumer Behaviour, Consumer Influence and the Process of Diffusion Friday, May 28 2010 

What is Opinion Leadership?

Opinion Leadership is the process by which the opinion leader informally influences the actions or attitudes of others, who may be opinion seekers or merely opinion recipients. Opinion receivers perceive the opinion leader as a highly credible, objective source of product information who can help reduce their search and analysis time and percieved risk.

Opinion leaders are motivated to give information or advice to others, in part doing so enhances their own status and self image and because such advice tends to reduce any post purchase dissonance that they may have.Other motives include product involvement, message involvement or any other involvement.

Market researchers identify opinion leaders by such methods as self designation, key informants, the sociometric method and the objective method.

Studies of opinion leadership indicate that this phenomenon tends to be product category specific, generally one of their interest. An opinion leader of one product range can be an opinion receiver for another product category.

Generally, opinion leaders are gregarious, self confident, innovative people who like to talk. Additionally, they may feel differentiated from others and choose to act differently (or public individuation).

They acquire information about their areas of interest through avid readership of special interest magazines and ezines and by means of new product trials.

Their interests may often overlap into adjacent areas and thus their opinion leadership may also extend into those areas.

Who is a market maven ?

The market maven is an intense case of a opinion leader kind of person. These consumers possess a wide range of information about many different types of products, retail outlets, and other dimensions of markets.

They both initiative discussions with other consumers and respond to requests for market information over a wide range of products and services. 

Market mavens are also distinguished from other opinion leaders because their influence stems not so much from product experience but from a more general knowledge or market expertise that leads them to an early awareness of a wide array of new products and services.

The opinion leadership process usually take place among friends, neighbours and work associates who have frequent physical proximity and thus have ample opportunity to hold informal product related conversations. These conversations usually occur naturally in the context of the product-category usage.

The two – step flow of communication theory highlights the role of interpersonal influence in the transmission of information from the mass media to the populations at large. This theory provides the foundation for a revised multi step flow of communication model, which takes into account the fact that information and influence often are 2 way processes and that the opinion leaders both influence and are influenced by opinion receivers.

It is important for the marketers to segment their audiences into opinion leaders and opinion receivers for their respective product categories. When marketers can direct their promotional efforts to the more influential segments of these markets, these opinion leaders will transmit the information to those who seek product advice.

Marketers try to simulate and stimulate opinion leadership. They have also found that they can create opinion leaders for their products by taking socially involved or influential people and deliberately increasing their enthusiasm for a product category.

The diffusion process and the adoption process are 2 closely related concepts concerned with the acceptance of new products by customers.

The diffusion process is a macro process that focuses on the spread of an innovation from its source to the consuming public.

The adoption process is a micro process that examines the stages through which an individual consumer passes when making a decision to accept or reject a new product.

The definition of the term innovation can be

1. Firm oriented(new to the firm),

2. Product oriented(a continuous innovation, a dynamically continuous innovation, or  A discontinuous innovation),

3. Market oriented(how long the product has been on the market or an arbitrary percentage of the potential target market that has purchased it), or

4. Consumer oriented (new to the customer).

Market-oriented definitions of innovation are most useful to consumer researchers in the study of the diffusion and adoption of new products.

Five Product Characteristics influence the consumers acceptance of a new product:

 

  1. Relative Advantage
  2. Compatibility
  3. Complexity
  4. Trialability
  5. Observability

 

Diffusion researchers are concerned with 2 aspects of communication – the channels through which word about a new product or service is spread to the public and the types of messages that influence the adoption or rejection of new products or services.

Diffusion is always examined in the context of a specific social system, such as a target market, a community, a region or even a nation.

Time is an integral consideration in the diffusion process. Researchers are concerned with the amount of purchase time required for an individual customer to adopt or reject a new product/service, with the rate of adoptions and with the identification of sequential adopters.

The 5 adopter categories are innovators, early adopters, early majority, late majority and laggards.

Marketing Strategists try to control the rate of adoption through their new product pricing policies. Companies who wish to penetrate the market to achieve market leaderships try to acquire wide adoption as quickly as possible by using low prices. Those who wish to recoup their developmental costs quickly use a skimming pricing policy but lengthen the adoption process.

The traditional adoption process model describes 5 stages through which an individual consumer passes to arrive at the decision to adopt or reject a new product:

  1. Awareness, 
  2. Interest,
  3. Evaluation
  4. Trial
  5. Adoption

To make it more realistic, an enhanced model is recommended as one that considers the possibility of a pre existing need or problem, the likelihood that some form of evaluation might occur through the entire process, and that even after adoption there will be post adoption or purchase evaluation that might either strengthen the commitment or alternatively lead to discontinuation of the product/service.

Companies marketing new products are vitally concerned with identifying the consumer innovator so that they may direct their promotional campaigns to the people who are most like to try new products, adopts them and influences others.

Consumer Research has identified a number of consumer related characteristics, including product interest, opinion leadership, personality factors, purchase and consumption traits, media habits, social characteristics, and demographic variables that distinguish consumer innovators from later adopters. These serve as useful variables in the segmentation of markets for new product introductions.

Who are the innovators and early adopters for your products and services? How have you planned your diffusion strategy for the current products and the new products?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

ETHICS IN THE MARKET – Theories and Definitions Tuesday, Dec 2 2008 

PERFECT COMPETITION:

A free market in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged.

PURE MONOPOLY:

A market in which a single firm is the only seller in the market and which new sellers are barred from entering.

OLIGOPOLY:

A market shared by a relatively small number of large firms that together can exercise some influence on process.

MARKET:

Any forum in which people come together for the purpose of exchanging ownership of goods or money.

EQUILIBRIUM POINT:

The point at which the amount of goods buyers want to buy exactly equals the amount of goods sellers want to sell, and at which the highest price buyers are willing to pay exactly equals the lowest prices sellers are willing to take.

DEMAND CURVE:

A line on a graph indicating the most that customers would be willing to pay for a unit of some product when they buy different quantities of those products.

SUPPLY CURVE:

A line on a graph indicating the prices producers must charge to cover the average costs to supplying a given amount of a commodity.

PRINCIPLE OF DIMINISHING MARGINAL UTILITY:

Each additional item a person consumes is less satisfying than each of the earlier items the person consumed.

PRINCIPLE OF INCREASING MARGINAL COSTS:

After a certain point, each additional item a seller produces costs more to produce than earlier items.

POINT OF EQUILIBRIUM:

The point at which the supply and demand curves meet, so amount buyers want to buy equals amount suppliers want to sell and price buyers are willing to pay equals price sellers are willing to take.

Perfectly Competitive Free Markets are characterized by the following 7 features:

  1. There are numerous buyers and sellers, none of whom has a substantial share of the market.
  2. All buyers and sellers can freely and immediately enter or leave the market.
  3. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of prices, quantities, and quality of all goods being bought and sold.
  4. The goods being sold in the market are so similar to each other that no one cares from which each buys or sells.
  5. The costs and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties.
  6. All buyers and sellers are utility maximizers. Each tries to get as much as possible for as little as possible.
  7. No external parties(such as government) regulate the price, quantity, or quality of any of the goods being bought and sold in the market.

MORAL OUTCOMES OF PERFECTLY COMPETITIVE MARKETS:

  • Achieve a certain kind of justice.
  • Satisfy a certain version of utilitarianism.
  • Respect certain kinds of moral rights.

MONOPOLY MARKET CHARACTERISTICS:

  • One Seller
  • High Entry Barriers
  • Quantity below Equilibrium
  • Prices above equilibrium and Supply Curve
  • Can extract monopoly profit.

OLIGOPOLISTIC COMPETITION:

IMPERFECTLY COMPETITIVE MARKETS:

Markets that lie somewhere between the two extremes of the perfectly competitive market with innumerable sellers and the pure monopoly market with only one seller.

HIGHLY CONCENTRATED MARKETS:

Oligopoly markets that are determined by a few large firms.

HORIZONTAL MERGER:

The unification of two or more companies that were formerly competing in the same line of Business.

PRICE FIXING:

An agreement between firms to set their prices at artificially high levels.

MANIPULATION OF SUPPLY:

When firms in an oligopoly industry agree to limit their production so that prices rise to levels higher than those that would result from free competition.

EXCLUSIVE DEALING ARRANGEMENTS:

When a firm sells to a retailer on condition that the retailer will not purchase any products from other companies and/or will not sell outside of a certain geographical area.

TYING ARRANGEMENTS:

When a firm sells a buyer a certain good only on condition that the buyer agrees to purchase certain other goods from the firm.

RETAIL PRICE MAINTENANCE AGREEMENTS:

A manufacturer sells to retailers only on condition that they agree to charge the same set retail prices for its goods.

PRICE DISCRIMINATION:

To charge different prices to different buyers for identical goods or services.

UNETHICAL PRACTICES IN OLIGOPOLY INDUSTRIES:

  • Price – Fixing
  • Manipulation of supply
  • Exclusive dealing arrangements
  • Tying Arrangements
  • Retail Price Maintenance Agreements
  • Price Discrimination

PRICE LEADER:

  • The firm recognized as the industry leader in oligopoly industries for the purpose of setting prices based on levels announced by that.

TRUST:

An alliance of previously competitive oligopolists formed to take advantages of monopoly powers.

MAIN VIEWS OF OLIGOPOLY POWER:

  • Do-Nothing View
  • Anti trust View
  • Regulation View

THINGS TO CHECK IN A BUSINESS PLAN Monday, Dec 1 2008 

We have been consulting an investor ( a strategic VC Operations) on investing in various projects.

Common findings:

  • The entrepreneurs who had approached the investors were operating more from their gut feelings than from data.
  • They are very optimistic about their future prospects, even though they have been facing tough times for a long time.
  • The data of the best possible scenario is generally referred to as the standard expected scenario, which is never even remotely close.
  • Expenditures are considered on a very loose levels and always underestimated.
  • Lot of challenges are discounted and overlooked till the time they become big and unconfrontable.
  • Competition is never given its dues in terms of considering market share, marketing, sales and talent retention challenges.
  • Sweeping generalities become the business plan instead of data oriented thought through strategies.
  • Cash Flow is expected to be taken care of, by the expected business revenue – which generally fail to be as per the expectations.
  • Challenges faced by the industry as a whole, are not fully considered and rarely brainstormed to create innovative solutions.
  • Scant respect for Financial Planning, strategy, HR, training and development are seen in many cases.
  • Employees are expected to be automatically aligned to the vision that is hidden in the mind of the promoters.

These are some of the observations, but definitely not applicable to everyone.

Many entreprenuers have demonstrated that they do not fall in the above pitfalls and they steer their organizations to great success and sustained performance standards by combining the entreprenuers fire in the belly, with the strategy and systems.

WHAT WORKS:

  1. Have accurate data of the past and realistic data about the future.
  2. Have all industry related information handy.
  3. Have your financial data impeccable and ready to discuss.
  4. Have your competition and various factors affecting your organization performance detailed out.
  5. Have a strong strategy and marketing plan.
  6. What are the Key requirements for success in your industry, is it technolgoy, manpower, skills, market converage? Have all the bases worked out.
  7. Realistic Growth Plans.
  8. Detailed SWOT Analysis or the reverse TOWS Analysis.
  9. Create a realistic picture of the Opportunites and Challenges and your plans for dealing with them.
  10. Clearly identify the areas where you have not yet sorted out things or you would like inputs or are working out external inputs.
  11. Have guidance from professionals like CAs, Management Consultants, Govt. liasoning officers etc., as required.
  12. Create 3 plans , worst scenario, best scenario and realistic scenario.

To discuss more, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

CONSULTANCY SERVICES OFFERED Monday, Dec 1 2008 

MANAGEMENT 

  • Facilitating CREATION OF VISION, MISSION AND CORE VALUES
  • Guding in GETTING THE ORGANIZATION ALIGNED ON THE VISION,MISSION AND CORE VALUES
  • Supporting in POLICIES AND PROCESSES – REINTERPRETATION & REFINEMENT based on the Vision, Mission and Core Values.
  • Creating Operating guidelines for each and every role holder inside of the Vision,Mission and Core Values
  • Facilitating Creating Strategies for the short term and long term growth strategy. We recommend using the Blue Ocean Strategy along with TOWS (SWOT) as the starting point of planning.
  • Guiding in the Strategy Implementation. We recommend the BSC – Balanced Score Card given approach as the guiding principle for Strategy Implemenation.
  • Creating Systemic and Systematic Change Management disciplince.

MARKETING

  • Facilitate creation of the Marketing Strategy
  • Guiding on Shortlisting of the Target Market Segments
  • Advice on Creating Specific Strategies for each Specific Target Market Segment.
  • Support on Implementing the Marketing Strategies including using various medium including eStrategies
  • Guidelines for ongoing monitoring, feedback and updating the Marketing Strategies.
  • Continuous innovation and work on Branding and Positioning.
  • Inputs on Online Marketing

 

SALES

  • Training and coaching people on the World Best Consultative Sales Models ( We recommend Huthwaite’s SPIN Model as the foundation for learning Consultative Sales. There are some other good models which can also be used)
  • Guiding people on Key Account Management Strategies.
  • Guiding people on Relationship Marketing as building long term mutually rewarding and respecting relationships with clients.
  • Guiding in Channel Management and Market Coverage Strategies and Implementation
  • Facilitating a Sales and Marketing oriented culture in the organization.
  • Creating a result oriented culture with strong MIS and reporting systems with continuous updates, feedback, coaching, interventions.
  • Guiding on Online Sales, Web Stores, ECommerce, Online Business, Online Lead Generation

 

HR

  • Guide in Creating Performance Based Culture fostering leadership,initiative, ownership and result orientedness.
  • Facilitating KRA setting, performance management, performance appraisal, issue resolutions, teamwork, and growth orientation. 
  • Guide in Creating HR as a strong back bone enriching and supporting the vision, mission, core values and the strategy implementation.
  • Advise on Creating People Development and Talent Management as everyday responsibility of the Supervisors and Managers and integrating it with everyone’s KRAs and Performance Appraisals.

 

TRAINING:

  • Vision, Mission, Core Values – Consulting and Workshops.
  • Strategy Creation – Consulting and Workshops
  • Market Segmentation – Consulting and Workshops
  • Consultative Sales – Consulting, Workshops & Coaching Camps
  • Leadership, Managerial and Supervisory Development, Soft Skills, Attitude, TeamBuilding, Holistic Self Development – Consulting, Workshops and Coaching Camps

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Culture & Consumer Behaviour Thursday, Nov 27 2008 

CULTURE :

The study of culture is the study of all aspects of a society. It is the language, knowledge, laws, and customs that give that society its distinctive character and personality. In the context of consumer behaviour, culture is defined as the sum total of learned behaviours, beliefs, values, customs that serve to regulate the consumer behaviour of members of a particular society. 

Beliefs and Values are guiding principles while customs are the usual and accepted norms of behaviour.

The impact of the culture on the society is so natural and so ingrained that its influence on behaviours is rarely noted. It is like fish distinguishing water.

Culture offers orders, direction and guidance to members of society in all phases of human problem solving.

Culture is dynamic and gradually and continually evolves to meet the needs of the society.

Culture is learned as a part of the social experience. Children acquire a set of beliefs, values and customs, which constitutes the culture,from the environment. These beliefs, values and customs are acquired through formal learning, informal learning and technical learning.

Advertising enhances formal learning by reinforcing desired modes of behavior and expectations; it enhances informal learning by providing models for behaviour.

Culture is communicated to members of society through a common language and through commonly shared symbols. Because the human mind has the ability to absorb and to process symbolic communication, marketers can successfully promote both tangible and intangible products and product concepts to consumers through mass media.

All the elements in the marketing mix serve to communicate symbolically with the audience, Products project an image of their own, so does promotion. Price and Retail outlets symbolically convey messages concerning the quality of the product.

The elements of culture are transmitted by 3 pervasive social institutions; the family, the schools and the church. A fourth social institution that plays a major role in the transmission of culture is  the mass media, both through editorial content and through advertising.

A wide range of measurement techniques is used to study culture. The range includes Projective Techniques,attitude measurement methods, field observation,participant observation, content analysis and value measurement  survey techniques.

What are you Consumer Groups? What are their Cultures?  How are you understanding and leveraging that for your business development and client engagement?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Marketing Communication and Consumer Behaviour Wednesday, Nov 26 2008 

MARKETING COMMUNICATION:

There are 5 basic components of communication:

  1. Sender
  2. Receiver
  3. Medium
  4. Message
  5. Feedback

 

In the communications process, the sender encodes the message using words,pictures, symbols sends it through a selected medium.

The receiver decodes the message based on his or her personal characteristics and experience, and responds based on such factors as selective exposure, selective perception, comprehension and psychological noise.

There are 2 types of communications:

 

  1. Interpersonal Communications
  2. Mass Communications

 

Interpersonal communications occur on a personal level between tow or more people and may be verbal or non verbal, formal or informal.

Interpersonal communications take place in person,by telephone,by mail,by email,on the web etc., 

In mass communications, there is no direct contact between source and receiver.

Mass communications occur through such impersonal  media as television, radio, newspapers and magazines.

Feedback is an essential component of all types of communications because it provides the sender with some notion as to whether and how well the message has been received.

The credibility of the source, a vital element in message persuasiveness, often is based on the source’s perceived intentions.

Informal sources and neutral or editorial sources are considered to be highly objective and thus highly credible. The credibility of a commercial source is more complex and usually is based on a composite evaluation of its reputation,expertise,and knowledge and that of the medium in which it advertises, the retail channel and company spokespersons.

Media Selection depends on the product,the audience, and the advertising objectives of the campaign.Each medium has advantages and shortcomings that must be weighed in the selection of  media for an advertising campaign.

Following the emergence of new technologies, many advertisers are now developing more customized communications that can reach consumers via media with narrow casting, rather than broadcasting.

The manner in which a message is presented influences its impact. One sided messages are more effective in some situations and with some audiences; two sided messages are more effective with others.

High involvement products are best advertised through the central route to persuasion, which encourages active cognitive effort. 

Marketers can either use objective,factual appeals or emotional appeals. The emotional appeals most frequently used in advertising fear, humour,sexual appeals etc.,

Audience participation is a very effective communications strategy becuase it encourages internalization of the advertising message.

What are the challenges you are facing in designing and delivering your Marketing Communications to your current and potential customers?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Consumer Attitutde Wednesday, Nov 26 2008 

What is an Attitude?

An attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object whether it is a product, product category, a brand, a service, an advertisement, a website, a store etc., Each property of this definition is critical to understanding why and how attitudes are relevant in consumer behaviours and marketing.

The 4 broad categories of attitude models are:

  1. Tri component attitude model
  2. Multiattribute attitude model
  3. Trying to Consume Model
  4. Attitude toward the ad Model

The tri component model of attitudes consists of 3 parts:

  1. A cognitive Component
  2. An affective Component
  3. A conative component

The cognitive component captures a consumer’s knowledge and perceptions about products and services.

The affective component focuses on a customer’s emotions or feelings with respect to a particular product or service. The affective component determines an individual’s overall assessment of the object in terms of some kind of favourableness scoring.

The Conative component is concerned with the likelihood that a consumer will act in a specific fashion with respect to the attitude object. The Conative component is many times treated as an expression of the customer’s intention to buy.

Multiattribute attitude models like attitude toward object, attitude toward behaviour and the theory of reasoned action models have received much attention from consumer researchers. These models examine consumer beliefs about specific product attributes. The thoery of trying is designed to account for the many cases in which the action or outcome is not certain. The attitude toward the ad models examine the influence of advertisements on the consumer’s attitudes toward the brand.

How attitudes are formed?

Attitudes are learned and the different learning theories provide unique insights as to how attitudes initially may be formed. Attitude formation is facilitated by direct personal experience and influenced by the ideas and experiences of friends and family members and exposure to mass media.

Individual’s personality also plays a role in attitude formation.

Strategies of Attitude Change can be put into 6 distinct categories:

  1. Changing the basic motivational function
  2. Associating the attitude object with a specific function
  3. Relating the attitude object to conflicting attitudes
  4. Altering components of the multiattribute model
  5. Changing beliefs about competititor’s brands, products and Services
  6. The Elaborated Likelihood Model.

Each of these strategies provide the marketer with alternative ways of changing consumer’s existing attitudes.

Cognitive dissonance theory suggests that the conflicting thoughts or information, following a purchase might propel consumers to change their attitudes to make them consonant with their actions.

Attribution theory focuses on how people assign casualty to events and how they form or alter attitudes as an outcome of assessing their own behaviour or the behaviour of the other people OR things.

What are you doing to ensure that your potential customers are creating favourable attitudes towards your company, brand, product and services? How are your competitors doing it? Talk to us for further support.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Our Work in Education Field Sunday, Nov 23 2008 

As management consultants and advisers, we have had the privilege to work on various interesting and esteemed projects in the field of Education.

 

  1. Delhi Public School, Ahmedabad   – a K-12 CBSE School
  2. Calorex Institute of Technology – a VLSI Chip Design Institute
  3. DPS Prerna (DPS Nalanda) – A School for Dyslexic Children
  4. VISAMO – a Special Initiative for children from BPL families
  5. Zydus School for Excellence – a K-12 school from the house of Zydus Cadila.

 

 

Various Activities that we have provided valuable inputs and guidance include:

 

  1. Market Research
  2. Organizational Positioning
  3. Pricing
  4. Marketing
  5. Sales
  6. Staff Selection and Induction
  7. Teaching Staff ongoing Training & Development
  8. Admin Staff and Support Staff Orientation
  9. Customer Orientation
  10. HR & Employee Engagement
  11. Overall Growth and development

 

For further information contact:

MANAGEMENT INNOVATIONS ( erstwhile INNOVATIVE CONSULTANTS)

managementinnovaitons2020@gmail.com;   manojonkar@gmail.com; 91-9375970812

Consumer Motivation Sunday, Nov 23 2008 

What is Consumer Motivation?

Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need. All individuals have needs, wants and desires. The individual’s subconscious drive to reduce need-induced tensions results in behaviour that he or she anticipates will satisfy needs and thus bring about a more comfortable internal state.

All behaviour is goal oriented. Goals are the sought-after results of motivated behaviour. The form or direction that  behaviour takes-the goal that is selected-is a result of thinking processes(cognition) and previous learning(e.g. experience).

There are 2 types of goals: generic goals and product-specific goals. A generic goal is a general category of goal that may fulfill a certain need; a product-specific goal is a specifically branded or labeled product that individual sees as a way to fulfill a need.

Product-specific needs are sometimes referred to as wants.

What are Innate Needs?

Innate Needs are those an individual is born with. They are Physiological (biogenic) in nature; they include all factors required to sustain physical life (e.g. food, water, shelter, clothing, sex, physical safety etc.,).

What are Acquired Needs?

Acquired needs those an individual develops after birth are primarily psychological (psychogenic). They include love, acceptance, esteem, and self-fulfillment.

For any given need, there are many different and appropriate goals. The Specific goal  selected depends on the individual’s experiences, physical capacity, prevailing cultural norms and values, and the goal’s accessibility in the physical and social environment.

What is the relationship between Needs and Goals?

Needs and goals are interdependent and change in response to the individual’s physical condition, environment, interaction with other people, and experiences. As needs become satisfied, new, higher order needs emerge that must be fulfilled.

How do People deal with Failure in achieving the goals?

Failure to achieve a goal often results in feelings of frustration. Individuals react to frustration in two ways:”fight” or “flight”. They may cope by finding a way around the obstacle that prohibits goal attainment or by adopting a substitute goal (fight); or they may adopt a defense mechanism that enables them to protect their self esteem (flight). Defense mechanisms include aggression, regression, rationalization, withdrawal, projection,daydreaming, identification, and repression.

Motives & Behaviours:

Motives cannot easily be inferred from consumer behaviour. People with different needs may seek fulfillment through selection of the same goals; people with the same needs may seek fulfillment through different goals. 

Although some psychologists have suggested that individuals have different needs priorities, other believe that most human beings experience the same basic needs, to which they assign a similar priority ranking.

Maslow’s hierarchy of needs theory proposes five levels of human needs; physiological needs, safety needs, social needs, egoistic needs and self actualization needs.

Other needs widely integrated into consumer advertising include the needs for power, affiliation and achievement.

What are the 3 common methods for identifying and measuring human motives?

  1. Observation and Inference
  2. Subjective Reports
  3. Qualitative Research – including projective techniques.

None of these methods is completely reliable by itself.

Therefore researchers often use a combination of 2 or 3 techniques in tandem to assess the presence or strength of consumer motives.

What is Motivational Research ?

Motivational research is qualitative research designed to delve below the consumer’s level of conscious awareness. Despite some shortcomings, motivational research has proved to be of great value to marketers concerned with developing new ideas and new copy appeals.

Next Page »