Project Thank You

I would like to thank my parents for supporting me while doing this project. To everyone who has helped me finish this project and to all who filled out my Survey. I would also like to thank everyone who contributed to the sites I have visited, for their great pictures and information. Consumer Buying Behaviour- Psychology of Marketing

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how
• The psychology of how consumers think, feel, reason, and select between different alternatives (e.

g. , brands, products, and retailers);
• The psychology of how the consumer is influenced by his or her environment (e. g. culture, family, signs, media);
• The behaviour of consumers while shopping or making other marketing decisions;
• Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; 
• How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and
• How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One “official” definition of consumer behaviour is “The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. ” Although it is not necessary to memorize this definition, it brings up some useful points:
• Behaviour occurs either for the individual, or in the context of a group (e.

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g. , friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behaviour involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e. g. , motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.
• Consumer behaviour involves services and ideas as well as tangible products. The impact of consumer behaviour on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. There are four main applications of consumer behaviour:
• The most obvious is for marketing strategy—i. e. , for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon.
• A second application is public policy.

In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers’ attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.
• Social marketing involves getting ideas across to consumers rather than selling something.

Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, studying consumer behaviour should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed.

Our main thrust in this course is the consumer. However, we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firm’s potential threat, we need to examine its assets (e. g. , technology, patents, market knowledge, and awareness of its brands) against pressures it faces from the market.

Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically. When purchasing a product there several processes, which consumers go through. These will be discussed below. 1. Problem/Need Recognition How do you decide you want to buy a particular product or service? It could be that your DVD player stops working and you now have to look for a new one, all those DVD films you purchased you can no longer play! So you have a problem or a new need.

For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take. However, for impulse low frequency purchases e. g. confectionery the process is different. 2. Information search So we have a problem, our DVD player no longer works and we need to buy a new one. What’s the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that? Consumers often go on some form of information search to help them through their purchase decision.

Sources of information could be family, friends, neighbours who may have the product you have in mind, and alternatively you may ask the sales people, or dealers, or read specialist magazines like What DVD? to help with their purchase decision. You may even actually examine the product before you decide to purchase it. 3. Evaluation of different purchase options. So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate attribute factors to certain products, almost like a point scoring system which they work out in their mind over which brand to purchase.

This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. For example sound maybe better on the Sony product and picture on the Toshiba, but picture clarity is more important to you then sound. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the Sony DVD or Toshiba then which one shall it be?

It could be that a review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. 4. Purchase decision Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e. g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase of the product can either be through the store, the web, or over the phone. Post Purchase Behaviour

Ever have doubts about the product after you purchased it? This simply is post purchase behaviour and research shows that it is a common trait amongst purchasers of products. Manufacturers of products clearly want recent consumers to feel proud of their purchase; it is therefore just as important for manufacturers to advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organisation. This limits post purchase behaviour. I. e. you feel reassured that you own the latest advertised product.

Factors influencing the behaviour of buyers. Consumer behaviour is affected by many uncontrollable factors. Just think, what influences you before you buy a product or service? Your friends, your upbringing, your culture, the media, a role model or influences from certain groups? Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a child is influenced by their parents, brothers, sister and other family member who may teach them what is wrong or right.

They learn about their religion and culture, which helps them develop these opinions, attitudes and beliefs (AIO). These factors will influence their purchase behaviour however other factors like groups of friends, or people they look up to may influence their choices of purchasing a particular product or service. Reference groups are particular groups of people some people may look up towards to that have an impact on consumer behaviour. So they can be simply a band like the Spice Girls or your immediate family members.

Opinion leaders are those people that you look up to because your respect their views and judgements and these views may influence consumer decisions. So it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. The economical environment also has an impact on consumer behaviour; do consumers have a secure job and a regular income to spend on goods? Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. People’s social status will also impact their behaviour. What is their role within society?

Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being parents affects your buying habits depending on the age of the children, the type of job may mean you need to purchase formal clothes, the income which is earned has an impact. The lifestyle of someone who earns ? 250000 would clearly be different from someone who earns ? 25000. Also characters have an influence on buying decision. Whether the person is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and purchases via online or mail order) again has an impact on the types of purchases made.

Maslow’s Hierarchy of Needs Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy, safety needs, where the priority lay with job security and the knowing that an income will be available to them regularly. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people do strive for this belonging.

Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good job title and be recognised or the need to wear branded clothes as a symbol of status. Self-actualisation the realisation that an individual has reached their potential in life. The point of self-actualisation is down to the individual, when do you know you have reached your point of self-fulfilment? But how does this concept help an organisation trying to market a product or service?

Well as we have established earlier within this website, marketing is about meeting needs and providing benefits, Maslow’s concept suggests that needs change as we go along our path of striving for self-actualisation. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. So Maslow’s concept is useful for marketers as it can help them understand and develop consumer needs and wants. Types of buying behaviour. There are four typical types of buying behaviour based on the type of products that intends to be purchased.

Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying behaviour is where the individual buys a product out of habit e. g. a daily newspaper, sugar or salt. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent.

There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers. To summarise consumer behaviour
• There are five stages of consumer purchase behaviour
• Problem/Need Recognition
• Information search.
• Evaluation of purchases.
• Purchase decision.
• Post purchase behaviour.
• Culture has an impact on the company.
• Marketers should take into account Maslow’s hierarchy of needs. Motivation Motivation is the activation or energization of goal-oriented behavior.

Motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality. Motivation has two types:
• Intrinsic Motivation
• Extrinsic Motivation – Intrinsic Motivation An activity is intrinsically motivating if a person does it voluntarily, without receiving payment or other type of reward and feels it morally significant to do – Extrinsic Motivation

Extrinsic motivation is when one is motivated by external factors, as opposed to the internal drivers of intrinsic motivation. Extrinsic motivation drives one to do things for tangible rewards or pressures, rather than for the fun of it. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations. Some General Theories of Motivation
• Maslow hierarchy:  physical, safety, belongingness, ego, and self-actualizations
• McClelland’s Theory of Learned Needs o Achievement motivation is seeking to get ahead, to strive for success, and to take responsibility for solving problems. Need for affiliation motivates people to make friends, to become members of groups, and to associate with others. o Need for power refers to the desire to obtain and exercise control over others. o Need for uniqueness refers to desires to perceive ourselves as original and different. Drive and Need The term “Drive” may be defined as an “aroused condition in which an organism’s behavior is directed toward avoiding discomfort or a state of physiological imbalance”. Drives in this sense are, for example, hunger, thirst, the need for sleep, and the need for moderate temperatures.

A Need is something that is necessary for humans to live a healthy life. Needs are distinguished from wants because a deficiency would cause a clear negative outcome, such as dysfunction or death. A Need can be objective and physical, such as food and water, or they can be subjective and psychological, such as the need for self-esteem. On a societal level, needs are sometimes controversial, such as the need for a nationalized health care system. Understanding needs and wants is an issue in the fields of politics, social science, and philosophy.

According to psychologists; a need is the psychological feature that arouses an organism to action toward a goal and the reason for the action, giving purpose and direction to behaviour. Motive An incentive to act or a reason for doing something or anything that prompted a choice of action. Anything that arouses the individual and directs his or her behavior towards some goal is called a Motive or “Motive is a factor which influences to do anything because anything we do has a motive behind”. Aspects of Motives Motives have following aspects:
• Cognitition
• Goal
• Affection
• Conation – Cognition

Cognition is the scientific term for “the process of thought” to knowing. Usage of the term varies in different disciplines; for example in psychology and cognitive science, it usually refers to an information processing view of an individual’s psychological functions. Other interpretations of the meaning of cognition link it to the development of concepts; individual minds, groups, and organizations. – Goal A goal or objective is a projected state of affairs that a person or a system plans or intends to achieve a personal or organizational desired end-point in some sort of assumed development.

Many people endeavor to reach goals within a finite time by setting deadlines. – Affection Affection is a “disposition or state of mind or body” that is often associated with a feeling or type of love. It has given rise to a number of branches of philosophy and psychology concerning: emotion (popularly: love, devotion etc); disease; influence; state of being, and state of mind. – Conations Conation is a term that stems from the Latin conatus, meaning any natural tendency, impulse or directed effort. It is one of three parts of the mind, along with the affective and cognitive.

In short, the cognitive part of the brain measures intelligence, the affective deals with emotions and the conative takes those thoughts and feelings to drive how you act on them. The personality is almost continuously involved in deciding between alternative or conflicting or tendencies or elements…the most pressing and demanding are conflicts between different conations. Since conations (purposes) derive their energies from needs Primary Motive Primary motives also known as biological motives, have a definite physiological basis and are biologically necessary for survival of the individual or species.

These arouse the behavior of the organism in directions that lead to the required change in internal environment. The sources of biological motivational needs include:
• increase/decrease stimulation (arousal)
• Activate senses (taste, touch, smell, etc.
• Decrease hunger, thirst, discomfort, etc.
• maintain homeostasis, balance The biological motives consist of:
• Hunger
• Thirst
• Pain
• Sex
• Air or need for respiration
• Fatigue
• Sleep
• Maternal – Hunger The tendency to seek and eat food is the hunger drive. We get hungry in many circumstances.

All of the following can make us want to eat: the smell or sight of food, the sound of a dinner bell, even passing our favorite restaurant. – Thirst When organisms are thirsty, they have a tendency to seek water. When they find water and drink, they are no longer thirsty, and the thirst drive is reduced. In order to find out more about the mechanisms involved in the thirst drive, researchers have tried to determine the conditions under which organisms drink. – Pain An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage”. Sleep Sleep is a naturally recurring state of relatively suspended sensory and motor activity, characterized by total or partial unconsciousness and the inactivity of nearly all voluntary muscles. In humans, other mammals, and a substantial majority of other animals that have been studied (such as some species of fish, birds, ants, and fruit flies), regular sleep is essential for survival. The purposes and mechanisms of sleep are only partially clear and are the subject of intense research. – Fatigue Fatigue is a state of awareness.

It can describe a range of afflictions, varying from a general state of lethargy to a specific work-induced burning sensation within one’s muscles. It can be both physical and mental. Mental fatigue not necessarily, includes any muscle fatigue. Such a mental fatigue, in turn, can manifest itself either as somnolence (decreased wakefulness) or just as a general decrease of attention, not necessarily including sleepiness. It may also be described as more or less decreased level of consciousness. In any case, this can be dangerous when performing tasks that require constant concentration, such as driving a vehicle.

For instance, a person who is sufficiently somnolent may experience micro sleeps. However, objective cognitive testing should be done to differentiate the neurocognitive deficits of brain disease from those attributable to tiredness. To avoid this mental fatigue a person required proper rest. – Sex Drive The sex drive is considered to be biological in nature. It is not a response to a lack of some substance in the body and arises from any excess of substance like hormones in the blood. In the human beings, sexual drive is primarily is triggered by external stimuli, and its expression depends very much upon learning.

People’s motivations ranged from the mundane, to the spiritual and from the altruistic to the manipulative. -Maternal Drive The maternal drive or instinct refers to the tendency for the female of the species to perform the maternal behaviours of nesting, feeding, sheltering and protecting their offspring. -Air Drive or Need for Respiration Need for air is inborn a universally needed. Continuous supply of air is requiring keeping one healthy and alive. This need is fulfilled by oxygen. Oxygen is the most important requirement in the human body. We inhale air to fill up our lungs with oxygen and distribute it to every part of the body rteries. Our respiratory system constantly inhales oxygen and exhales carbon dioxide. Shortage of oxygen can affect the individual’s activities, emotional life, and circulatory system by making him restless, mentally confused, physically imbalance and unconscious. Secondary Motives Secondary motives are learned motives and are sometimes known as psychsociological motives. They are not physiologically based. These are the causes of the development of a personality. Secondary motives originate during our life time. They are acquired and learned through our interaction with people.

They are classified in two types which are:
• Social motives
• Psychological motives – Social Motives Social motive are those which motivates us to go out, interact with people and do the things that gives a feeling of pleasure and satisfaction. Social motive evoke unity love sympathy love cooperation coordination and the formation of a leadership in a group for its existence and survival. Everybody loves to live according top his social norms. Social Motive helps to
• Imitate positive models
• Be a part of a group or a valued member
• Know one’s self
• Communicate – Psychological Motives

Psychological motives are individualistic in nature as they are related to self esteem, self security, self exhibition, self freedom and self assertion. As psychology is the scientific study of an individual’s behavior in relation to his environment, psychological motives are regarded very important in the development of an individual’s behavior and personality. Emotions are psychological perspectives and Emotions occur as a result of an interaction between perceptions of environmental stimuli, neural/hormonal responses to these perceptions. So psychological motives are very important because our emotions motivate us to do thing.

Psychological motives help us in many things like:
• Maintain attention to something interesting or threatening
• Develop meaning or understanding
• Increase/decrease cognitive disequilibrium; uncertainty
• Solve a problem or make a decision
• Figure something out
• Eliminate threat or risk Secondary or psychosocial motive are important to live a happy life and adequate satisfaction of secondary motives is necessary for mental health to avoid depressions etc. Psychosocial or secondary motives contain:
• Need for affiliation
• Need for approval
• Need for achievement Need for security
• Curiosity motive
• Competence motive
• Power motive
• Aggression motive
• Self actualization Buying Motives – Why Do People Buy Why do people buy? People always have their own reasons for buying. Their reasons are not necessarily rational, intelligent or sensible. However, whatever their buying motives, they are theirs. And you must be aware of which ones are motivating your prospect at all stages in the sales process. Then you can tailor your sales approach accordingly. The Six Buying Motives are:
• Pride of Ownership
• Security and Protection
• Emotional Satisfaction Desire for Gain
• Comfort and Convenience
• Fear of Loss Some notes of caution:
• No one Buying Motive is any more important than any other;
• They do not come in any particular order.
• These buying motives are emotional, not logical; people buy emotionally, not logically – even in B2B purchases.
• People do not readily admit to their buying motives:
• Who is going to admit to vanity or fear?
• Do not expect prospects to be open and honest about the real reasons that motivate them to buy. Get better at observing or hearing your prospects. Know all six buying motives.

Then you can appeal to them in turn, looking for which provoke the strongest responses in a prospect. For example, suppose you see a reaction to a benefit of your product or service that appeals to comfort and convenience. Keep returning to that motive throughout the remainder of the meeting. Do not stop when you have uncovered just one motive that is important to your prospect. More than one buying motive may apply, and motives you leave undiscovered may turn out to be more important. Uncover other buying motives with open, feeling-finding questions to discover additional reactions.

Suppose you have already discovered that profit – desire for gain – is important to your prospect. You might also ask: “How important is security to you? ” and you would find out how the person feels about security and protection. As the meeting progresses, you can focus on areas that are important to your prospect. Once the sale has been made, people stop responding emotionally and begin concentrating on the sound, practical, rational, business reasons why the purchase was made. Later on most people will not even remember their emotional motives.

They sincerely believe that they bought the product or service for straightforward, logical reasons. If you ask, they can list these logical reasons for you. People buy emotionally, then justify their decisions logically. Remember to provide your prospects with logical as well as emotional reasons why your product or service will benefit them Meaning of Buying Motives According to W. J. Stanton: “A motive can be defined as a drive or an urge for which an individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something. Primary buying motives |Secondary buying motives | |Food and Drink |Bargains | |Comfort |Information | |To attract opposite sex |Cleanliness | |Welfare of beloved ones |Efficiency | |Freedom from fear and danger |Convenience | |To be superior |Dependability, quality | |Social approval |Style beauty | |To live longer |Economy, profit | | |Curiosity. | All these motives are not equally forceful. Here we describe only important buying motives:
• Freedom from fear and danger: Fear is a negative motive but is a very powerful one. The most basic instinct of a human being is self-preservation. Fear is a very powerful and compelling force in human affair. The marketing man must ascertain the possible fear of death, fear of loss and fear for the future, fear can sell anything like hair oil through fear of getting bald. Desire for economy: Persons desire money to satisfy their other desires. The businessman wants money to make more profits or lower costs. The manufacturers make purchase of high priced heavy machinery to lower down their cost of production and thereby increases profits. In the same way every customer likes his money’s worth.
• Vanity: Women spend much time, thought and money on their personal appearance like cosmetics, hairdo and new styles. Hence vanity is a powerful motive in the hands of the marketing man being the safest appeal that may be used.
• Appreciation: Everybody desires to be appreciated and complimented. He likes to be recognized as an important person.

Because of this human intrait, it may be useful to use indirect method in place of direct methods that might prove offensive.
• Fashion: It is the desire of everyone to imitate what others are doing. This may also be called imitation motive. It is closely linked with pride or desire for importance. This motive can be well exploited by the marketer.
• Possession: The instincts of possession or a desire to call things as ‘mine’ leads persons to hoard and collect things. Some persons collect postage stamps and old coins.
• Sex or romance: Fancy clothes, cosmetics, perfumes, etc. are in great demand on account of the instinct of sex or a desire to attract the opposite sex. It is no wonder why this instinct is very often used by marketing men. Love of others: This motive plays an important part when parents purchase all kinds of things for their children like toy, fancy garments and other presents, may go in for life insurance to make provision for their future. A bachelor going to marry will purchase numerous domestic articles. Therefore, this particular motive is as time described as that of ‘home building. ’ This instinct is also related to comfort and convenience motive.
• Health or physical well-being: Many persons purchase health foods, vitamin tablets and patent medicines to maintain their health and physique well-being.
• Comfort and convenience: Most people don’t like to exert much.

Hence this motive may be well exploited by the marketing particularly for selling luxury items like motor, cars, sofa sets, furniture, vacuum cleaners, washing machine, television sets, etc. The sale of air conditioners and water coolers, fans is motivated in summer by this motive for comfort. Using buying motives in marketing Human behavior is fundamentally related to instincts. It is these instincts which make a person behave differently at different times. The appropriate motive must be crystallized if the marketing program is to be effective and appropriate in terms of product features and advertising strategy. Patronage motives in retailing

Many people buy their daily requirements from a certain store but with patronage motives. The choice of a particular store depends on factors such as location, variety of goods stocked, reputation of the store, attitude adopted by the salesman in the store, the services offered by the store, the general appearance of the store etc. Some people prefer shopping at glamorous stores, others select economical stores. Thus persons prefer to match with their status or standard of living with that of the store. Product – Camera A camera is a device that records/stores images. These images may be still photographs or moving images such as videos or movies.

The term camera comes from the camera obscura (Latin for “dark chamber”), an early mechanism for projecting images. The modern camera evolved from the camera obscura. Cameras may work with the light of the visible spectrum or with other portions of the electromagnetic spectrum. A camera generally consists of an enclosed hollow with an opening (aperture) at one end for light to enter, and a recording or viewing surface for capturing the light at the other end. A majority of cameras have a lens positioned in front of the camera’s opening to gather the incoming light and focus all or part of the image on the recording surface. Most 20th century cameras used photographic film as a recording surface, while modern ones use an electronic camera sensor.

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