Understanding Consumer Behaviour

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Human Motivation

Maslow’s Theory of Human Motivation (1943)

• Maslow believed people had a set of motivation systems from basic needs to self actualisation

• According to this theory, everyone needs to go through all of the needs to reach self-actualisation, from the bottom to the top of the pyramid

Maslow, 1943

Maslow’s theory of motivation

Motivation DefinitionProduct examples

PhysiologicalBiological & physiological needsAir, water, food, drink, shelter, sex, sleep, warmth

Water, food, house, bed

Functional/practical

Safety needsProtection from the elementsSecurity, stabilityFreedom from fear

Helmet, house & health insurance, internet security

Emotional/social/cultural

Love & belongingnessFriendship, intimacy, affectionLove from work, friends, family, romantic relations

Flowers, organ donorship, chocolates, cards, birthday presents

Self-esteem/luxuryEsteem needsAchievements, status, independence, self-respect from others

Car, lottery, marathon

Self actualisationRealising personal potentialSelf fulfilmentSeeking personal growth

University course, training

The Consumer Buying Process

Need/Problem recognition

Step one: Need and problem recognition. This arises when the consumer recognises that there is a need for an item

• Assortment depletion - when the stock of goods has been used up or worn out

• Assortment extension - when there’s the need to add some new items

Information Search

Step two: Information search. Once someone has become motivated to buy/need something they engage in two forms of information search:

1. Internal Search - remembering previous experiences and what they already know about the product/service

2. External Search - shopping around, reading literature, looking at advertisements and talking to friends

Identification and evaluation of alternativesStep three: identification and evaluation. After the information search the consumer will evaluate the alternatives they have open to them

The consumer will use cut offs - which are the minimum and maximum acceptance values for the product

Signals - price tags, brand names, price, etc

Purchase decision and post-purchase evaluationStep four: purchase. Next comes the actual purchase, where the consumer will pick an appropriate method of payment

Step five: post-purchase evaluation. Post-purchase evaluation involves the consumer deciding on whether the purchase has been a success or not (Blythe, 2013)

This involves comparing what the consumer was expecting to get and what they actually have

Post-purchase dissonance - where the product has not lives up to expectations

The consumer decision making process

Influences on the decision making unit

Reference Groups Personal Factors Psychological factors

Social Factors

Primary groups – people we most often seeSecondary groups – people we see occasionally

Situational factors – changes in circumstances e.g. pay rise

Perception – The way people build up a view of the world

Informational influence – the need to seek information from a group

Aspirational groups – groups we wish we belong

Demographic factors – individual characteristics

Motives – the internal force that encourages someone towards a particular course of action

Normative compliance – pressure exerted on someone

Dissociative groups – group an individual does not want to belong to

Level of involvement – the degree of importance or that emotional attachment

Attitude – cognition (conscious), affect (emotional attachment) and contagion (planned course of action)

Value -expressive influence – need to physiologically associate with a particular group

Automatic groups – belong to by virtue e.g. age

Formal/informal groups – membership based on friendship

Influences on the decision making process

Cultural - subcultures, ethnicity, country and origin

Social - social groups, family, virtual groups,

Personal influences - personal values & ethics

People and personalities who influence decisions

The decision making unit

The decision making unit is a group of people who participate in or influence the purchase decision at any stage in the buying process (CIM, 2012)

This may involve a number or roles:

• Gatekeepers - controls the flow of information to the decision makers. Barrier to sales people

• Influencers - Individuals who ‘have the ear’ of the decision makers

• Users - who will actually use the product

• Deciders - who will make the actual decision, usually the hardest to influence

• Buyers - who will actually buy the product

B2B vs B2C buyer behaviour

B2B B2CExpertsProfessional buyers• Well trained, rational decisions

Non-professional buyersKnowledge gap• No formal training, emotional

Large quantities• Higher risk - more money

• Smaller quantities

• Sales people are important • Sales people less important

• Group/multiple people in decision making process

• Single decision maker

Summary• Maslow’s Theory of Human Motivation (1943) determines the set of motivation

systems a consumer goes through

• There are 5 key steps in the consumer decision making process

1. Need/problem recognition2. Information search3. Identification and evaluation of options and alternatives4. Purchase decision5. Post-purchase evaluation

• When making the decision to buy a product/service personal, physiological and social factors play a key part. Reference groups can also have an impact on the decision.

• The decision making unit consist of; gatekeepers, influencers, users, deciders and buyers. When marketing your product or service it is important to know which one of these you need to target.

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