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Marketing exam paper

Marketing exam paper

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Motivation and Values

Dr L Spiteri Cornish

We discussed:

  • That both personal and social conditions influence how we spend our money.
  • How we group consumers into social classes and how this defines where they stand in society.
  • That a person’s desire to make a statement about his social class, or the class to which he hopes to belong, influences the products he likes and dislikes.

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After this lecture, you should understand :

  • That it’s important for marketers to recognize that products can satisfy a range of consumer needs.
  • That the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation.

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  • Marketers to recognize that products can satisfy a range of consumer needs.
  • Marketers give us solutions!

Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies). The desired end state is the consumer’s goal . Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension.

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  • A need creates a state of tension that drives the consumer to attempt to reduce or eliminate it.
  • The desired end state is the goal
  • The degree of arousal is drive

Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies, as when Basil longs for a juicy steak). The desired end state is the consumer’s goal.

Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension. Whether the need is utilitarian or hedonic, the magnitude of the tension it creates determines the urgency the consumer feels to reduce it. We call this degree of arousal a drive. We can satisfy a basic need in any number of ways, and the specific path a person chooses is influenced both by her unique set of experiences and by the values his or her culture instills. These personal and cultural factors combine to create a want, which is one manifestation of a need.

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Stimulus

Need

Recognition

Drive

State

Goal

Directed

Behavior

Actual state

Desire State

Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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NEED FOR ACHIEVEMENT

Value personal accomplishment

Place a premium on products that signify success (luxury brands, technology products)

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NEED FOR AFFILIATION

Want to be with other people

Focus on products that are used in groups (alcoholic beverages, sports bars)

NEED FOR POWER

Control one’s environment

Focus on products that allow them to have mastery over surroundings (muscle cars, loud boom-boxes)

NEED FOR UNIQUENESS

Assert one’s individual identity

Enjoy products that focus on their unique character (perfumes, clothing)

Schiffman, L. G. and Wisenblit, J. (2014) Consumer Behaviour. Prentice Hall: London

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Need for achievement refers to the desire to accomplish something. Sometimes people will express a need for achievement with premium products that express success.

Need for affiliation is the desire to be with other people. Products that express emotion and aid in group activities are relevant.

Need for power is the need to control one’s environment. Products that allow us to feel mastery over our surroundings and situation meet this need.

Need for uniqueness is the need to assert one’s individual identity. Products that pledge to illustrate our distinct qualities meet this need.

Motivation satisfies either utilitarian or hedonic needs.

Satisfying utilitarian needs implies that consumers emphasize the objective, tangible attributes of products e.g. fuel economy in a car.

Satisfying hedonic needs implies that consumers emphasize subjective and experiential aspects, e.g. self confidence, excitement, etc.

Overby, J. and Lee, E. (2006). The effects of utilitarian and hedonic online shopping value on consumer preference and intentions, Journal of Business Research 59, 1160–1166.

Kelley C., Anderson, D., et al. (2008). Influence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a Facebook perspective. Journal of Retailing and Consumer Services, 21, 773–779.

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Motivational Conflict

APPROACH/AVOIDANCE

APPROACH/APPROACH

AVOIDANCE/AVOIDANCE

A goal has valence, which means that it can be positive or negative. Therefore, goals can be sought or avoided. There are three general types of conflicts:

Approach-approach conflict—a person must choose between two desirable alternatives such as choosing between two favorite brands of automobiles.

Approach-avoidance conflict—many products or services we desire have negative consequences attached to them. An example is having to undergo a root canal procedure in order to rectify tooth decay.

Avoidance-avoidance conflict—a choice between two undesirable alternatives such as having to spend more on an older car or buy a newer more expensive car.

Two desirable alternatives

Cognitive dissonance

Positive & negative aspects

of desired product

Guilt of desire occurs

Facing a choice with two

undesirable alternatives

Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

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A person has an approach–approach conflict when she must choose between two desirable alternatives. The theory of cognitive dissonance is based on the premise that people have a need for order and consistency in their lives and that a state of dissonance (tension) exists when beliefs or behaviors conflict with one another. We resolve the conflict that arises when we choose between two alternatives through a process of cognitive dissonance reduction, where we look for a way to reduce this inconsistency (or dissonance) and thus we eliminate unpleasant tension.

Dissonance occurs when a consumer must choose between two products, both of which possess good and bad qualities. When he chooses one product and not the other, the person gets the bad qualities of the product he buys and loses out on the good qualities of the one he didn’t buy. This loss creates an unpleasant, dissonant state he wants to reduce. We tend to convince ourselves, after the fact, that the choice we made was the smart one as we find additional reasons to support the alternative we did choose—perhaps when we discover flaws with the option we did not choose (sometimes we call this “rationalization”). A marketer can bundle several benefits together to resolve an approach–approach conflict.

Types of Motivational Conflict

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Maslow’s Hierarchy of Needs: Does It Apply In A Collectivist Culture

Gambrel, P.A. and Cianci, R. (2003). Maslow’s Hierarchy of Needs: Does It Apply in A Collectivist Culture Journal of Applied Management and Entrepreneurship 8.2, 143-161

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This exhibit illustrates Maslow’s Hierarchy of Needs. The hierarchy includes five levels: 1) physiological, 2) safety, 3) belongingness, 4) ego needs, and 5) self-actualization. Marketers’ application of this hierarchy has been somewhat simplistic, especially as the same product or activity can gratify different needs. For example, one study found that gardening could satisfy needs at every level of the hierarchy:

• Physiological—“I like to work in the soil.”

• Safety—“I feel safe in the garden.”

• Social—“I can share my produce with others.”

• Esteem—“I can create something of beauty.”

• Self-actualization—“My garden gives me a sense of peace.”

Koltko-Kulik, W. (2005). Rediscovering the later version of Maslow’s hierarchy of needs: Self-transcendence and opportunities for theory, research, and unification. Review of General Psychology, 10(4), 302-317

History will see advertising “as one of the real evil things of our time. It is stimulating people constantly to want things, want this, want that.”

  • Malcolm Muggeridge, quoted in Eric Clark, The Want Makers: Inside the World of Advertising, 1988, New York: Penguin Books, p. 371

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Involvement: perceived relevance of an object based on one’s needs, values and interests

Solomon, M., Bamossy, G., Askegaard, S & Hogg, K. (2013) Consumer behaviour: a European perspective, Pearson: London.

OBJECTIVE: It is important to understand why the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation

We use the word object in the generic sense to refer to a product (or a brand), an advertisement, or a purchase situation. Consumers can find involvement in all these objects.

Because a person’s degree of involvement can be conceived as a continuum, consumption at the low end of involvement is characterized by inertia. In this state, decisions are made out of habit because the consumer lacks the information to consider alternatives. To the contrary, decisions can be very passionate and carry great meaning for a person. In consumer situations of high involvement, the consumer enters a flow state, where the consumer is in an elated state of focus and concentration and loses track of time.

  • Inertia: consumption at the low end of involvement (Decisions made out of habit (lack of motivation)
  • Flow : consumers are truly involved
  • Sense of control
  • Concentration
  • Mental enjoyment
  • Distorted sense of time

Carù, A., & Cova, B. (2003). Revisiting consumption experience: A more humble but complete view of the concept. Marketing Theory, 3(2), 267.

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  • Cult product: command fierce consumer loyalty, devotion, and even worship by consumers who are highly involved
  • Value: a belief that some condition is preferable to its opposite (E.g. looking younger is preferable to looking older)
  • People’s values play an important role in their consumption activities, since many products and services are purchased because it is believed that they will help attain a certain goal.
  • Products/services = help in attaining value-related goal

Lynn R. K. and Kennedy, P. (2013). “Using the list of values (LOV) to understand consumers”, Journal of consumer Marketing, Vol. 2 Iss: 4, pp. 49 – 56.

  • Values change over time. Values can be challenged.
  • Cultures differ in the relative importance they assign to universal values e.g. security, relationships/ This determines a country’s value system
  • Children learn their cultures core values from socialization agents such as parents, teachers and friends
  • The meaning of core values is dependent on the local cultural context
  • In many cases values can be universal – desire for health, wisdom, etc.

Brosch, T., and Sander, D. (2014). Appraising value: the role of universal core values and emotions in decision-making. Cortex, 59, 203-205.

Madhavan P., Lane, V. and Stansifer M.L. (2015) “A time-based analysis of changing consumer values in India”, Journal of Indian Business Research, 7(3), pp.271 – 291

  • Conscientious consumerism: consumer’s focus on personal health merging with a growing interest in global health
  • LOHAS (lifestyles of health and sustainability): Consumers who:
  • Worry about the environment
  • Want products to be produced in a sustainable way
  • Spend money to advance what they see as their personal development and potential

Menzel, S. and Green, T. L. (2013). Sovereign Citizens and Constrained Consumers: Why Sustainability Requires Limits on Choice. Environmental Values 22, pp. 59-79

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https://www.gov.uk/government/statistics/uks-carbon-footprint

The carbon footprint measures, in units of carbon dioxide, the impact human activities have on the environment in terms of the amount of greenhouse gases they produce. The average American is responsible for 9.44 tons of CO2 per year! As the figure shows, a carbon footprint comes from the sum of two parts, the direct, or primary, footprint and the indirect, or secondary, footprint:

1) The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels, including domestic energy consumption and transportation (e.g., cars and planes).

2 The secondary footprint is a measure of the indirect CO2 emissions from the whole life cycle of products we use, from their manufacture to their eventual breakdown.

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  • Materialism refers to the importance people attach to worldly possessions.
  • Materialists: value possessions for their own status and appearance
  • The pursuit of happiness through acquisition rather than other means.
  • Judging others’ success by their material possessions.
  • Consumers either justify their own materialism or make excuses for it.
  • “The good life”…“He who dies with the most toys, wins”
  • Non-materialists: value possessions that connect them to other people or provide them with pleasure in using them

Goldsmith, R. E. (2012) Materialism, Status Consumption, and Consumer Independence. Journal of Social Psychology, 152(1), pp43-60.

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Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies). The desired end state is the consumer’s goal . Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension.

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This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies, as when Basil longs for a juicy steak). The desired end state is the consumer’s goal.

Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension. Whether the need is utilitarian or hedonic, the magnitude of the tension it creates determines the urgency the consumer feels to reduce it. We call this degree of arousal a drive. We can satisfy a basic need in any number of ways, and the specific path a person chooses is influenced both by her unique set of experiences and by the values his or her culture instills. These personal and cultural factors combine to create a want, which is one manifestation of a need.

*

Need for achievement refers to the desire to accomplish something. Sometimes people will express a need for achievement with premium products that express success.

Need for affiliation is the desire to be with other people. Products that express emotion and aid in group activities are relevant.

Need for power is the need to control one’s environment. Products that allow us to feel mastery over our surroundings and situation meet this need.

Need for uniqueness is the need to assert one’s individual identity. Products that pledge to illustrate our distinct qualities meet this need.

A goal has valence, which means that it can be positive or negative. Therefore, goals can be sought or avoided. There are three general types of conflicts:

Approach-approach conflict—a person must choose between two desirable alternatives such as choosing between two favorite brands of automobiles.

Approach-avoidance conflict—many products or services we desire have negative consequences attached to them. An example is having to undergo a root canal procedure in order to rectify tooth decay.

Avoidance-avoidance conflict—a choice between two undesirable alternatives such as having to spend more on an older car or buy a newer more expensive car.

*

A person has an approach–approach conflict when she must choose between two desirable alternatives. The theory of cognitive dissonance is based on the premise that people have a need for order and consistency in their lives and that a state of dissonance (tension) exists when beliefs or behaviors conflict with one another. We resolve the conflict that arises when we choose between two alternatives through a process of cognitive dissonance reduction, where we look for a way to reduce this inconsistency (or dissonance) and thus we eliminate unpleasant tension.

Dissonance occurs when a consumer must choose between two products, both of which possess good and bad qualities. When he chooses one product and not the other, the person gets the bad qualities of the product he buys and loses out on the good qualities of the one he didn’t buy. This loss creates an unpleasant, dissonant state he wants to reduce. We tend to convince ourselves, after the fact, that the choice we made was the smart one as we find additional reasons to support the alternative we did choose—perhaps when we discover flaws with the option we did not choose (sometimes we call this “rationalization”). A marketer can bundle several benefits together to resolve an approach–approach conflict.

*

*

This exhibit illustrates Maslow’s Hierarchy of Needs. The hierarchy includes five levels: 1) physiological, 2) safety, 3) belongingness, 4) ego needs, and 5) self-actualization. Marketers’ application of this hierarchy has been somewhat simplistic, especially as the same product or activity can gratify different needs. For example, one study found that gardening could satisfy needs at every level of the hierarchy:

• Physiological—“I like to work in the soil.”

• Safety—“I feel safe in the garden.”

• Social—“I can share my produce with others.”

• Esteem—“I can create something of beauty.”

• Self-actualization—“My garden gives me a sense of peace.”

OBJECTIVE: It is important to understand why the way we evaluate and choose a product depends upon our degree of involvement with the product, the marketing message, and/or the purchase situation

We use the word object in the generic sense to refer to a product (or a brand), an advertisement, or a purchase situation. Consumers can find involvement in all these objects.

Because a person’s degree of involvement can be conceived as a continuum, consumption at the low end of involvement is characterized by inertia. In this state, decisions are made out of habit because the consumer lacks the information to consider alternatives. To the contrary, decisions can be very passionate and carry great meaning for a person. In consumer situations of high involvement, the consumer enters a flow state, where the consumer is in an elated state of focus and concentration and loses track of time.

*

*

The carbon footprint measures, in units of carbon dioxide, the impact human activities have on the environment in terms of the amount of greenhouse gases they produce. The average American is responsible for 9.44 tons of CO2 per year! As the figure shows, a carbon footprint comes from the sum of two parts, the direct, or primary, footprint and the indirect, or secondary, footprint:

1) The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels, including domestic energy consumption and transportation (e.g., cars and planes).

2 The secondary footprint is a measure of the indirect CO2 emissions from the whole life cycle of products we use, from their manufacture to their eventual breakdown

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