Extra credit assignment from the news group, to access
A motive is an internal energizing force that orients
a person's activities toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one.
If marketers can identify motives then they can better develop a
MASLOW hierarchy of needs!!
Need to determine what level of the hierarchy the consumers are at
to determine what motivates their purchases.
- Love and Belonging
- Self Actualization
Nutrament, a product marketed by Bristol-Myers Squibb originally was
targeted at consumers that needed to receive additional energy from their
drinks after exercise etc., a fitness drink. It was therefore targeted at
consumers whose needs were for either love and Belonging or esteem.
The product was not selling well, and was almost terminated. Upon extensive
research it was determined that the product did sell well in inner-city
convenience stores. It was determined that the consumers for the product were
actually drug addicts who couldn't not digest a regular meal. They would
purchase Nutrament as a substitute for a meal. Their motivation to
purchase was completely different to the motivation that B-MS had
originally thought. These consumers were at the Physiological
level of the hierarchy. BM-S therefore had to redesign its MM to better
meet the needs of this target market.
Motives often operate at a subconscious level therefore are
difficult to measure.
What do you see?? Perception is the process of
selecting, organizing and interpreting information inputs to
produce meaning. IE we chose what info we pay attention to,
organize it and interpret it.
Information inputs are the sensations received through sight,
taste, hearing, smell and touch.
Selective Exposure-select inputs to be exposed to our awareness.
More likely if it is linked to an event, satisfies current needs,
intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information,
inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product
against another), have to be very careful that consumers do not distort
the facts and perceive that the advertisement was for the competitor. A
current example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets
those that don't.
Average supermarket shopper is exposed to 17,000 products in a
shopping visit lasting 30 minutes-60% of purchases are unplanned.
Exposed to 1,500 advertisement per day. Can't be expected to be aware of
all these inputs, and certainly will not retain many.
Interpreting information is based on what is already familiar, on
knowledge that is stored in the memory.
Handout...South Africa wine....
Problems marketing wine from South Africa. Consumers have strong
perceptions of the country, and hence its products.
Ability and Knowledge--
Need to understand individuals capacity to learn.
Learning, changes in a person's behavior caused by information and
experience. Therefore to change consumers' behavior about your product,
need to give them new information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate
american consumers about changes in SA. Need to sell a whole new
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than
those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack,
because they assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change
in behavior results from the consequences of past behavior.
Knowledge and positive and negative feelings about
an object or activity-maybe tangible or intangible, living or non-
Individual learns attitudes through experience and interaction with
Consumer attitudes toward a firm and its products greatly influence
the success or failure of the firm's marketing strategy.
Oldsmobile vs. Lexus, due to consumers attitudes toward Oldsmobile (as
discovered by class exercise) need to disassociate Aurora from the
Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the tragic oil spill.
Honda "You meet the nicest people on a Honda", dispel the unsavory
image of a motorbike rider, late 1950s. Changing market of the
1990s, baby boomers aging, Hondas market returning to hard core. To
change this they have a new slogan "Come ride with us".
Attitudes and attitude change are influenced by consumers
personality and lifestyle.
Consumers screen information that conflicts with their attitudes.
Distort information to make it consistent and selectively retain
information that reinforces our attitudes. IE brand loyalty.
There is a difference between attitude and intention to buy
(ability to buy).
all the internal traits and behaviors that make
a person unique, uniqueness arrives from a person's heredity and
personal experience. Examples include:
Traits effect the way people behave. Marketers try to match the
store image to the perceived image of their customers.
- Self confidence
There is a weak association between personality and Buying
Behavior, this may be due to unreliable measures. Nike ads.
Consumers buy products that are consistent with their self concept.
Recent US trends in lifestyles are a shift towards
personal independence and individualism and a preference for a
healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their
EXAMPLE healthy foods for a healthy lifestyle.
Sun tan not considered fashionable in US until 1920's. Now an assault by the
American Academy of Dermatology.
Handout...Here Comes the Sun to Confound Health Savvy Lotion
Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds,
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences--
Role...things you should do based on the expectations of you from your
position within a group.
People have many roles.
Husband, father, employer/ee. Individuals role are continuing to
change therefore marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must
The Family life cycle: families go through stages, each stage
creates different consumer demands:
- that many family decisions are made by the family unit
- consumer behavior starts in the family unit
- family roles and preferences are the model for children's future
family (can reject/alter/etc)
- family buying decisions are a mixture of family interactions and
individual decision making
- family acts an interpreter of social and cultural values for the
- bachelor stage...most of BUAD301
- newly married, young, no children...me
- full nest I, youngest child under 6
- full nest II, youngest child 6 or over
- full nest III, older married couples with dependant children
- empty nest I, older married couples with no children living with
them, head in labor force
- empty nest II, older married couples, no children living at home,
- solitary survivor, in labor force
- solitary survivor, retired
- Modernized life cycle includes divorced and no children.
Handout...Two Income Marriages Are Now the Norm
Because 2 income families are becoming more common, the decision maker
within the family unit is changing...also, family has less time for
children, and therefore tends to let them influence purchase decisions in
order to alleviate some of the guilt. (Children influence about $130
billion of goods in a year) Children also have more money to spend
Individual identifies with the group to the extent that he takes on many
of the values, attitudes or behaviors of the group members.
Families, friends, sororities, civic and professional
Any group that has a positive or negative influence on a persons
attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to
reference groups. Marketers get the groups to approve the product and
communicate that approval to its members. Credit Cards etc.!!
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase
decision depends on an individuals susceptibility to reference
group influence and the strength of his/her involvement with the group.
an open group of individuals who have similar
social rank. US is not a classless society. US criteria;
occupation, education, income, wealth, race, ethnic groups and
Social class influences many aspects of our lives. IE upper middle
class Americans prefer luxury cars Mercedes.
Social class determines to some extent, the types, quality,
quantity of products that a person buys or uses.
- Upper Americans-upper-upper class, .3%, inherited wealth,
- Lower-upper class, 1.2%, newer social elite, from current professionals and
- Upper-middle class, 12.5%, college graduates, managers and professionals
- Middle Americans-middle class, 32%, average pay white collar workers and blue
- Working class, 38%, average pay blue collar workers
- Lower Americans-lower class, 9%, working, not on welfare
- Lower-lower class, 7%, on welfare
Lower class people tend to stay close to home when shopping, do not
engage in much prepurchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social
influences on consumer behavior. All operate within a larger
Culture and Sub-culture--
Culture refers to the set of values, ideas, and attitudes that are
accepted by a homogenous group of people and transmitted to the next
Culture also determines what is acceptable with product
advertising. Culture determines what people wear, eat, reside
and travel. Cultural values in the US are good health, education,
individualism and freedom. In american culture time scarcity is a
growing problem. IE change in meals. Big impact on international
Handout...Will British warm up to iced tea?
No...but that is my opinion!!...Tea is a part of the British culture, hot with milk.
Different society, different levels of needs, different cultural
Culture can be divided into subcultures:
IE West Coast, teenage and Asian American.
- geographic regions
- human characteristics such as age and ethnic background.
Culture effects what people buy, how they buy and when they buy.