CH-2 Motivation, Ability, and Opportunity – Consumer Behavior : Book Guide

Chapter 2 Motivation, Ability, and Opportunity CHAPTER SUMMARY This chapter is the students’ introduction to factors that can influence consumers to behave in ways that result in market exchanges. The role of the instructor in this chapter is to help the students understand these concepts, as well as to help place them in a marketing context that the students can understand. Motivation reflects goal-directed arousal that ultimately results in goal-relevant behaviors or elaborated information processing and decision making about things that the consumer views as important and self-relevant. When motivation has these effects, consumers often experience considerable affective or cognitive involvement in the activity. In some cases, this involvement may be enduring, lasting for a long period of time. In other cases, it may be situational, lasting only until the goal has been achieved. Consumers can also be involved in many different kinds of objects: product categories, brands, ads, the media, and consumption behaviors. Many factors affect motivation. First, motivation tends to be greater when the consumer sees something as personally relevant—meaning that it has important consequences for his or her life. Often things are seen as relevant because they relate to our values, goals, and needs; because they are seen to entail considerable risk, or because they are moderately inconsistent with our prior attitudes. Even when motivation is high, consumers may not achieve the goal of their motivation if their ability and/or opportunity to do so are low. If consumers lack the knowledge, experience, intelligence, education, or monetary resources to engage in a behavior, process information, or make a decision, they cannot achieve a goal. Goal achievement may also be blocked if consumers are attending to information that is incompatible with their processing styles, which are age related, or if the information is presented in too complex a fashion. Highly motivated consumers may also fail to achieve goals if their opportunity to do so is limited. Opportunity may be affected when consumers lack time, are distracted, and are not given sufficient information to learn something, when the information is too complex or infrequently repeated, or when consumers lack control over what information they receive, how long, and in what order, the information is presented. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Discuss the four types of influences that effect the consumer’s motivation to process information, make a decision, or take an action. 2. Explain how financial, cognitive, emotional, physical, social, and cultural resources, plus age and education, can affect the individual’s ability to engage in consumer behaviors. 3. Identify the three main types of influences on the consumer’s opportunity to process information and acquire, consume, or dispose of products. CHAPTER OUTLINE I. Consumer Motivation and Its Effects A. High-Effort Behavior 1. Motivation is an inner state of aroused energy directed toward achieving a goal. An outcome of motivation is behavior that takes effort. 2. Consumers can be motivated to engage in behaviors, make decisions, or process information in the context of acquisition, usage, or disposition of an offering. B. High-Effort Information Processing and Decision Making 1. Motivation impacts how consumers process information and decide. 2. When motivation to achieve a goal is high, consumers are willing to spend time and energy on reaching their goal, including searching for information and spending time shopping for the product. 3. When motivation is low, consumers devote little effort to processing information about a stimulus and making decisions. 4. Consumers may engage in motivated reasoning or the biased processing of information to reach a desired conclusion. C. Felt Involvement 1. Types of Involvement: Felt involvement is a psychological state that is an outcome generated by motivation. a) Enduring involvement exists when one is interested in an offering for a long period of time. b) Situational involvement exists when involvement with the offering is only temporary. c) Cognitive involvement means that the psychological state the consumer experiences is exhibited by interest in thinking about, and processing information related to, his or her goal. d) Affective involvement means that the psychological state the consumer experiences involves emotional energy and heightened feelings. 2. Objects of Involvement a) Consumers can be involved with product categories and brands, b) Consumers can be involved with an advertisement or the medium in which the ad is placed. II. What Affects Motivation? A. Personal Relevance 1. Consistency with Self-Concept a) Something may be personally relevant to the extent that it has direct bearing on the self and has potentially significant consequences or implications for one’s life. b) As things become more personally relevant, they are more likely to motivate us to behave, process information, or engage in effortful decision making about these things, and we will experience considerable involvement when buying, using, or disposing of them. c) Marketers can increase a consumer’s motivation to process promotional materials by trying to make the information as personally relevant as possible. B. Values 1. Something may be personally relevant. 2. Your self-concept or your view of yourself and the way you think others see you is important in marketing. 3. Consumers are more motivated to attend to and process information when they find it consistent with their values or beliefs that guide what people regard as important or good. C. Needs 1. Types of Needs a) Social needs (Social needs are externally directed and relate to other individuals (e.g., the need for esteem, succor, and modeling). b). Nonsocial needs (those whose achievement is not based on other people (e.g., the need for sleep, novelty, control, and understanding). c) Functional needs (those that motivate the search for products that solve consumption-related problems.) d) Symbolic needs (those that affect our sense of self, self expression, and social position or role.) e) Hedonic needs (reflect sensory pleasure and includes needs for sensory stimulation, cognitive stimulation and novelty (nonsocial hedonic needs), as well as need for reinforcement, sex and play (social hedonic needs). f) Needs for cognition and stimulation. (Those who have a high need for cognition are more likely to process information actively and engage in cognitive processing during decision making as compared to those who have a low need for cognition.) Also, Those who have a high OSL need more sensory stimulation; have been found to be involved in shopping and seeking information about brands; they show higher involvement in ads than those with a lower OSL. 2. Characteristics of Needs a) Needs are dynamic. b) Needs exist in a hierarchy. c) Needs can be aroused by internal or external cues. d) Needs can conflict. There are 3 kinds of need conflicts: (1). Approach-avoidance conflict occurs when a given behavior is seen as both desirable and undesirable because it satisfies some of the consumer’s needs but fails to satisfy others. (2). Approach-approach conflict occurs when the consumer faces the task of choosing among two or more equally desirable options that fulfill different needs. (3). Avoidance-avoidance conflict occurs when the consumer faces the task of choosing between equally undesirable options. 3. Identifying Needs a) Identifying consumers’ needs is useful to marketers, but doing so is not easy. b) Consumers may be unaware of their needs or have trouble explaining them. c) Inferring consumers’ needs based only on behaviors is difficult as the same need can be expressed in diverse behaviors d) Inferring needs in a cross-cultural context is particularly difficult. e) Methods like non-directed projection ask consumers to interpret ambiguous stimuli (like cartoons, word associations, sentence completions). These techniques often allow consumers to reveal their needs by using their own words to express thoughts about a topic. D. Goals 1. A goal is a particular end state or outcome that a person would like to achieve. 2. Goal Setting and Pursuit a) After we set a goal, we are motivated to form a goal intention; plan to take action; implement and control the action; and evaluate success or failure in attaining the goal. 3. Goal and Effort a) Consumers vary in how much effort they will exert to achieve a goal. b) Research suggests that the amount of effort exerted by a consumer may depend on the success of achieving other, potentially unrelated goals. c) The amount of effort also depends on feedback showing progress toward goal achievement. 4. Types of Goals a) Goals vary in whether they are concrete or abstract. b) Goals may be described as promotion-focused (achieving positive outcomes) or prevention-focused (avoiding negative outcomes). c) Consumers may have goals to regulate how they feel and/or what they do. 5. Goals and Emotions a) Goals are important because the success or failure to achieve a goal can affect how consumers feel. b) According to appraisal theory, emotions are determined by how consumers evaluate (or appraise) a situation. When an outcome is consistent with consumers’ goals, they appraise the situation favorably and feel positive emotions. c) Appraisal theory also posits that other appraisal dimensions, including normative/moral compatibility, certainty, and agency, will affect how consumers feel. 6. Self-Control and Goal Conflict a) Self control is the process consumers use to regulate feelings, thoughts, and behavior in line with long-term goals. a) Ego depletion is the outcome of decision-making effort that results in mental resources being exhausted. 7. Marketing Implications b) Marketers need an understanding of consumers’ self-concept, needs, goals, and self-control processes. c) Consumers’ needs and goals have particular relevance to marketers. (1). Enhance motivation to process communications. (2). Product development and positioning. (3). Encouraging specific behaviors. E. Perceived Risk 1. Perceived Risk Overview a) Perceived risk is defined as the extent to which the consumer is uncertain about the consequences of an action (buying, using, or disposing of an offering). b) Perceived risk tends to be higher when: 1) little information is available about the offering; 2) the offering is new; 3) the offering has a high price; 4) the offering is technologically complex; 5) brands differ significantly in quality allowing consumers to make an inferior choice; 6) the consumer has little confidence or experience in evaluating the offering; and/or 7) the opinions of others are important and the acquisition, use or disposition of the offering may be judged by others. c) Perceived risk may also vary by culture or by specific demographic categories within a culture. 2. Types of Perceived Risk a) Performance risk reflects uncertainty about whether the product or service will perform as expected. b) Financial risk reflects consumers’ concerns about their monetary investment in a product or service. c) Physical (or safety) risk refers to the potential harm that a product or service might pose to one’s safety. d) Social risk refers to the potential harm to one’s social standing that may arise from buying, using, or disposing of an offering. e) Psychological risk reflects consumers’ concern over the extent to which a product or service fits with the way they perceive themselves. f) Time risk reflects uncertainties over the length of time consumers must invest in buying, using, or disposing of the product or service. 3. Risk and Involvement a) Involvement can be classified by risk level. The higher the risk, the higher the involvement. b) Since high risk is uncomfortable, consumers are likely to attempt to reduce or resolve risk by gathering more information or by relying on brand loyalty. 4. Marketing Implications a) When perceived risk is high, marketers can either reduce uncertainty or reduce the perceived consequences of failure. b) When perceived risk is low, marketers have to increase risk perceptions to make emotional appeals more convincing. C. Inconsistency with Attitudes 1. Consumers tend to be motivated to process messages that are moderately inconsistent with existing knowledge or attitudes, because they are perceived as moderately threatening or uncomfortable. The consumer is motivated to remove or understand this inconsistency. 2. Consumers are less motivated to process information that is highly inconsistent with their prior attitudes. III. Consumer Ability: Resources to Act A. Ability is defined as the extent to which consumers have the necessary resources (knowledge, intelligence, and money) to make the outcome happen. B. Financial Resources 1. Often managed by a financial planner. 2. The lack of money constrains consumers who might otherwise have the motivation to engage in monetary exchanges with marketers. C. Cognitive Resources 1. Based on experience and knowledge. D. Emotional Resources 1. The consumers’ ability to experience empathy and sympathy. 2. Higher levels of intelligence and education will both enhance the consumer’s ability to process information that is more complex and to make decisions. E. Physical Resources 1. Body power can impact how, when and where consumers make decisions. F. Social and Cultural Resources 1. Who consumers know and cultural knowledge impacts consumer behavior. Freshmen with these resources are more likely to stay in school, for example. G. Education and Age 1. Better educated consumers will both enhance the consumer’s ability to process information that is more complex and to make decisions. 2. Old age has been associated with a decline in certain cognitive skills and thus reduced ability to process information. H. Marketing Implications 1. Marketers should be sure that their targeted customers have knowledge to process the information. 2. Marketers should be sensitive to differing processing styles. 3. Understand that a lack of money is often a constraint to consumers. IV. Consumer Opportunity A. Three key influences: B. Time 1. Time impacts information processing. Time is a pressure and constraint at times. a) Consumers under time pressure will engage in limited information processing. They also tend to put more weight on negative information, and thus quickly reject brands because of negative features. C. Distraction 1. Distraction refers to any aspect of the processing situation that can divert consumers’ attention from processing a message. a) Direct interference includes talking while a consumer is viewing an ad. b) Background factors in an ad such as music or attractive models could distract consumers from the central message. D. Complexity, Amount, Repetition, and Control of Information 1. As information becomes more complex, the consumer’s ability to process it decreases. Information is considered complex if it is technical or quantitative, if messages contain text with no pictures, and if there is a vast amount of it. 2. Consumers remember more when they control the flow of information by determining: a) What information is presented? b) How long it is presented? c) In what order information is presented? E. Marketing Implications 1. Marketers should repeat marketing communications (up to a point) and make them easy to process. 2. Marketers should reduce time-pressured decision making. 3. Marketers should reduce the amount of time needed to buy, use, and learn about a product. 4. Marketers should offer information when and where consumers choose to access it. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. How is motivation defined, and how does it affect felt involvement? Answer: An inner state of arousal that provides energy needed to achieve a goal. Motivation impacts felt involvement as it is a final outcome of motivation, which evokes a psychological state in consumers termed involvement. 2. What are some objects of involvement for consumers? Answer: Consumers can have a cognitive and or affective involvement. Examples are involvement with a product (car), or experience (white water rafting). Or, consumers can be involved with fashion because it is a form of self-expression. 3. What determines the ranking of needs in Maslow’s hierarchy? Answer: Needs have a basic hierarchy as established by higher or lower order needs. People fulfill lower-order needs such as water and food before higher-order needs such as ego-based needs. 4. What types of goals do consumers have? Answer: A goal is a particular end state or outcome that a person would like to achieve. Goals are more specific and concrete than needs are. Consumer goals may be about how much they will spend, what collections of products they will acquire, or to only buy organic foods. They can be concrete or abstract. They can also be promotion focused or prevention focused goals. Promotion goals motivate consumers to act in positive ways-such as putting on sunscreen to have beautiful skin. Prevention goals motivate consumers to avoid negative outcomes-such as getting skin cancer. 5. According to appraisal theory, what do emotions have to do with goals? Answer: Consumer emotions are formed based on how they appraise a situation or outcome, including from other sources and how it pertains to their goals. It is a theory of emotion that proposes that emotions are based on a person’s assessment of a situation or an outcome and its relevance to his or her goals. 6. What is self-control and how does it relate to conflicting goals? Answer: Self-control is the process that consumers use to regulate feelings, thoughts, and behavior in line with long-term goals. Sometimes goals conflict, such as when consumers face decisions about actions related to goals that are in conflict. For instance, you may want to lose weight, but join friends for desert. So, self-control is needed to go out for ice-cream with friends, but order a small. 7. How does perceived risk affect personal relevance, and what are six types of perceived risk? Answer: Perceived risk is the extent to which the consumer is uncertain about the consequences of an action. It impacts personal relevance because greater risks are perceived when the risk is real and relevant to the individual. Consumers are motivated to engage in behaviors to reduce risk. 6 types of risk are: performance risk, financial risk, physical risk, social, psychological, and time. 8. What five types of resources affect ability to process information and make decisions? Answer: Cognitive resources (knowledge), emotional resources (desire), physical resources (money), social and cultural resources (family in another country) each impact ability to process information and make decisions. 9. Identify some of the elements that contribute to consumer opportunity for processing information and making decisions. Answer: In addition to the five types of resources, time, involvement, distraction, and complexity, amount, repetition and control of information impact one’s opportunity for processing information and making decisions. CONSUMER BEHAVIOR CASE USAA: Millions of Customers, One Bank Branch USAA (United States Automobile Association) maintains only one bank branch to serve more than 8 million consumers worldwide, yet it boasts a 98 percent customer retention rate and often ranks way ahead of competitors in surveys of customer service and satisfaction. Hundreds of banks, brokerage firms, and other financial services firms offer checking and savings accounts, insurance, mortgage loans, and credit cards; some of these have extensive branch systems and ATM networks. So why do consumers choose USAA—and why do they remain customers, year after year? USAA specializes in serving military personnel and their families, including those on active duty and those who have left the military due to retirement or honorable separation. Although some of its products are available to the general public, the firm’s marketing efforts are primarily geared toward consumers in uniform and their spouses and children. Many of these consumers have much in common with non-military consumers: They marry, start a family, buy cars or trucks, look forward to buying a home, save for their children’s college education, and as retirement approaches, worry about financial security. However, consumers in this segment also face difficult challenges unique to the military life, such as being deployed many miles from home, frequent or unexpected transfers, lengthy separations from family members, and eventual transition to civilian life. In marketing to this segment, USAA focuses on these consumers’ particular needs, goals, values, and self-concepts. All members of a military family may not be on the same continent for weeks or months at a time, but each adult in the household will still need access to the family’s accounts, insurance, and so on. In response, USAA offers a variety of ways to manage money matters at any hour from any location via phone or Internet. It was an early adopter of apps for cell phone banking, including an app for scanning and depositing checks without an in-person branch visit. Customers receive daily text messages with updated balance details, whether they’re at home or on overseas assignment. The website is full of details that are available 24/7, and e-mail assistance is just a few clicks away. For more personalized attention, customers can make a call and speak with one of USAA’s 12,000 representatives, who will discuss their needs, inquire about their goals, and then offer advice on choosing the right product. In the past, customers had to determine who to call at USAA when they wanted information—should they contact the banking department or the financial advisory department about retirement accounts? Now USAA makes it easier to get information by phone or online according to life event (getting married or divorced, planning for retirement) or product (home insurance, car loans). And instead of pushing for an immediate purchase, USAA’s phone reps are trained to make suggestions that will best serve the customer in the long run. “The answer may be to not buy that product, if that is the right thing to do for the [customer] in that situation,” says a top USAA official. Online at the USAA site, customers can get information at their own pace, including watching video seminars, reading experts’ blog entries, and posting questions or comments on customer-only forums. While researching complex issues such as retirement options, any customer can arrange an individual consultation with USAA’s financial advisors via videoconference. USAA’s professionals do more than answer questions and educate customers about their choices: They also communicate respect for their customers. As one customer observes: “It’s not every day I get addressed ‘sergeant’ by a customer service agent.” Case Questions 1. How does USAA enhance consumer motivation by making itself and its offerings personally relevant to customers? Answer: USAA often features pictures of men and women and their families who are in the service. They have unique needs, and USAA enhances motivation by understanding their needs and offering relevant services to members. 2. What is USAA doing to facilitate consumers’ ability and opportunity to process information about its services and make informed financial decisions? Answer: USAA allows customers to talk to a person-not a machine or an outsourced rep. They can talk to one of USAA’s 12,000 representatives for personalized attention. They also have iPhone aps, an interactive website, and text message capability for consumers who opt-in. 3. What types of needs (functional, symbolic, hedonic, social, nonsocial) are USAA’s customers likely to experience? How does USAA respond to these needs? Answer: Main needs are getting insurance, a car loan, a home loan, refinancing a mortgage, helping a family through a major life event (marriage, child, deployment, divorce, death of a parent). USAA offers services for each of these needs. They also respond quickly to needs related to natural disasters, so their insurance and financial services can be synergistic to help those impacted. 4. Does USAA do anything to reduce perceived risk? Explain your answer. Answer: Yes, USAA allows members to plan ahead for major life events. This alleviates perceived risk, as they ensure that with their help, you can be prepared for life. USAA professionals manage risk by educating consumers upfront. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Randomly select ten ads from a magazine. Develop questions designed to assess a consumer’s involvement in an ad (both cognitive and affective) and motivation to process information from the ad. Select a sample of 20–30 consumers to look at the ads and answer the questions. Which types of ads tend to be higher in involvement? Which types of ads tend to be lower in involvement?. How do these ads tend to differ in terms of (a) recognition of consumers’ needs, (b) structure and content, and (c) assumption of consumer knowledge or expertise? Answer: To assess consumer involvement in ads, consider these questions: 1. Cognitive Involvement: • How much did you think about the information presented in this ad? • Did the ad prompt you to search for more details about the product? 2. Affective Involvement: • How emotionally engaging was the ad? • Did the ad make you feel positive or negative about the product? 3. Motivation to Process Information: • How motivated were you to learn more about the product after seeing this ad? • Did the ad influence your desire to discuss or share it with others? Types of Ads with Higher Involvement: • High-Involvement Ads: Often related to high-cost or high-risk purchases (e.g., cars, electronics). These ads tend to: • Recognition of Needs: Clearly address significant consumer needs or problems. • Structure and Content: Offer detailed information, comparisons, and benefits. • Assumption of Knowledge: Assume consumers have some level of product knowledge and require thorough information. Types of Ads with Lower Involvement: • Low-Involvement Ads: Typically for everyday products (e.g., snacks, household items). These ads tend to: • Recognition of Needs: Focus on immediate or minor needs. • Structure and Content: Use simple, catchy messages with minimal details. • Assumption of Knowledge: Assume little prior knowledge; aim to catch attention quickly and make a brief impression. 2. Develop your own projective test, depicting some purchase or usage situation for a product or service of your choice. What kinds of needs are revealed by your test? What are the implications for the marketer of that product or service? Answer: Projective Test Scenario: Imagine you are at a bustling airport. You are about to board a long-haul flight and see an ad for a premium noise-canceling headset. The ad shows a traveler in a cozy lounge, completely immersed in a serene audio experience, oblivious to the chaos around them. Projective Test Questions: 1. Describe the emotions you would feel if you used this headset during your flight. 2. How would this headset change your experience at the airport? 3. If you were to recommend this headset to a friend, what would be the main reason? Revealed Needs: 1. Emotional Comfort: The need for stress relief and emotional comfort during travel. 2. Escape from Distractions: The need to block out environmental noise and focus on personal relaxation or entertainment. 3. Social Influence: The desire to share positive experiences and solutions with others. Implications for Marketers: • Highlight Emotional Benefits: Emphasize how the headset provides comfort and a serene experience in chaotic environments. • Focus on Practical Solutions: Showcase the product’s effectiveness in eliminating travel-related noise and distractions. • Leverage Social Proof: Encourage satisfied users to share their experiences, leveraging word-of-mouth recommendations. 3. Watch TV and the associated ads for half an hour. At the end of your viewing, write down ads, you remember. Use the concepts of motivation, ability and opportunity to describe why you processed and remembered these commercials. What was it about the ad, your prior knowledge or use of these products, or the environment in which you viewed the ads that made them memorable? Answer: This exercise is designed to cement the concepts of MAO (motivation, ability, and opportunity) in the student’s mind. Pay careful attention to the notion of ‘time.’ Students commonly categorize ‘time’ as a factor of ability instead of opportunity. It is easy for a student to think that if they had more time, they would have a better ability to reach an optimal situation, when in fact ‘time’ should be classified as a factor of opportunity. Ads Remembered: 1. Luxury Car Ad 2. New Smartphone Launch 3. Energy Drink Commercial Motivation, Ability, and Opportunity Analysis: 1. Luxury Car Ad: • Motivation: High motivation due to personal interest in luxury vehicles and status symbols. • Ability: Familiarity with car features and technology enhances understanding. • Opportunity: High production value and striking visuals captured attention during a commercial break. Memorability Factors: Personal aspiration and emotional appeal in the ad's imagery. 2. New Smartphone Launch: • Motivation: High motivation from interest in tech advancements and upgrades. • Ability: Prior knowledge of smartphone features helps in processing the ad’s content. • Opportunity: The ad was shown during a tech segment, increasing relevance and focus. Memorability Factors: Novelty of the product and its alignment with current tech interests. 3. Energy Drink Commercial: • Motivation: Moderate motivation as the ad appeals to lifestyle and energy needs. • Ability: Limited prior knowledge or interest in energy drinks. • Opportunity: The ad was shown during a sports event, making it contextually relevant. Memorability Factors: Contextual relevance to the program and vibrant, high-energy visuals. 4. Visit a retail website (e.g., Staples.com, HotTopic.com, and BarnesandNoble.com) and carefully examine the description and information provided about one of the featured products. Also, read the site’s descriptions of shipping and payment options. What perceived risks are being addressed by the information on this site? How does the retailer either reduce risk perceptions or enhance risk perceptions with respect to the featured product or the shipping and payment options? Answer: Using BarnesandNoble.com as an example, this website allows consumers to order and pay for products on-line and if they choose, to pick them up at the nearest Barnes & Noble location. Additionally, perceived risk is greatly reduced by the fact that they can exchange or return an item that was purchased on-line in any physical store location. They also have a web page on privacy policies that explains that the company collects only personal information such as contact information, billing/shipping information, or personal preferences. Another asset for Barnes & Noble shoppers is that the brand is established and has a good reputation. If a consumer goes into a Barnes & Noble and that store does not have a particular book available, the customer can order it to be sent to the store postage free for pickup there. 5. Select a high-involvement product you are interested in buying, such as a new car or a new computer system. Identify the factors that make this product personally relevant to you, such as how it relates to your specific goals or needs. Next, consider how product knowledge or experience, age, and money affect your ability to process marketing information about this product and make a purchase. Finally, analyze how the opportunity factors related to time, distraction, and information affect your behavior toward making this purchase. What can marketers of this type of product do to enhance your motivation, ability, and opportunity to buy from them? Answer: An interesting in-class use of this exercise is to ask students the same questions with respect to how they chose their current school. Was the student’s application at another school rejected? On the other hand, were they seeking a school that was considered prestigious? It can be informative to understand the reasons behind such a choice, and to illustrate the concepts of motivation, ability, and opportunity. Product: High-end Gaming Computer System Personal Relevance: Goals/Needs: Enhances gaming and high-performance tasks, aligns with tech interests. Factors Affecting Ability: 1. Knowledge/Experience: Familiarity with specs and gaming systems aids understanding. 2. Age: Young adults likely familiar with tech trends. 3. Money: High cost impacts purchasing decision based on budget. Opportunity Factors: 1. Time: Adequate time for research. 2. Distraction: Minimal distractions during decision-making. 3. Information: Easy access to detailed reviews and specs online. Marketing Strategies: 1. Enhance Motivation: Emphasize unique features and benefits. 2. Improve Ability: Provide clear, detailed information and interactive tools. 3. Increase Opportunity: Ensure accessible information through relevant channels. ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions for students to consider while reading the chapter, or to test their understanding of the material after the reading and lecture are complete. 1. How can consumer needs be classified? Define each term and provide an example of how a vehicle or a piece of jewelry, for example, might meet each type of need. Answer: Consumer needs can be categorized as (a) social or nonsocial, (b) functional, symbolic, or hedonic, or (c) cognition or stimulation needs. (Note: you can use the chart below to lead a discussion of each type of need.) TYPE OF NEED EX: VEHICLE EX: FANCY WATCH A. (1) Social needs: externally directed needs that require the presence of others. To keep up with the Joneses. Because a friend said you’ll love it. A. (2) Nonsocial needs: needs for which achievement is not based on other people. Consistency. “I always buy this brand of vehicle.” Because it is a reliable brand. B. (1) Functional needs: needs that satisfy a consumption-related problem. It’s a way to get to the office. I need to know what time it is. B. (2) Symbolic needs: needs connected to the sense of self (how we are perceived by others). To appear cool; to fit in with my friends; everybody has one. The watch lets my clients know I have “made it.” B. (3) Hedonic needs: needs that fill a desire for sensory pleasure and emotional arousal. To feel the sensation of speed; to feel the engine’s power. The watch looks attractive and feels sleek. C. (4) Cognition or stimulation needs: need for mental and sensory challenge. It has the latest complex global tracking device, a DVD player, etc. It can keep track of the time in three different time zones, take messages and act as compass. 2. Explain how motivation influences consumer behavior. Answer: Motivation is an inner state of arousal or tension that drives consumers to action. Motivation tends to be greater when consumers see the goal-object as personally relevant, in other words, if it meets their values, goals, and needs. 3. Discuss the three factors that determine the amount of effort and involvement consumers put into searching for information, making choices, and judging whether an experience is satisfactory. Answer: The three factors are motivation, ability, and opportunity. Motivation, the inner state of arousal directed at achieving a goal, is influenced by (a) the personal relevance of the goal, (b) the goal’s consistency with the consumer’s values, goals, and needs, (c) the risk the consumer associates with buying the product or service, and (4) the new information’s level of consistency with the consumer’s prior information and attitudes. Motivation increases when (a) the goal is more relevant and consistent with the consumer’s values, goals, and needs, (b) the risk level is higher and therefore requires more involvement, and (c) the new information is somewhat inconsistent with the consumer’s prior information and attitudes. ADDITIONAL QUESTIONS 1. Describe those factors that might influence consumers’ (a) motivation to process, (b) ability to process, and (c) opportunity to process the information contained in an ad. Answer: (a) Motivation to Process: • Personal Relevance: Ads that relate directly to the consumer’s needs or interests increase motivation. • Emotional Appeal: Ads that evoke strong emotions or resonate with personal values. • Perceived Benefits: Ads that promise significant benefits or rewards. (b) Ability to Process: • Prior Knowledge: Familiarity with the product or topic enhances processing ability. • Complexity of Ad Content: Simpler, clearer messages are easier to process. • Cognitive Resources: Mental focus and capacity available at the time of viewing. (c) Opportunity to Process: • Time: Sufficient time to view and engage with the ad. • Distractions: Minimal external distractions during ad exposure. • Accessibility: Easy access to the ad and supporting information. 2. Describe the key aspects of motivation. Explain how these aspects operated the last time you (or members of your group) (a) went out to eat, (b) bought new clothes, (c) went to a movie. Answer: (a) Went Out to Eat: • Functional Need: Hunger led to the decision to eat out. • Symbolic Need: Desire for a social experience or to celebrate an occasion. • Hedonic Need: Enjoyment of a favorite cuisine or dining experience. (b) Bought New Clothes: • Functional Need: Need for clothing that fits or replaces worn-out items. • Symbolic Need: Expression of personal style or social status. • Hedonic Need: Pleasure from shopping and acquiring new fashion items. (c) Went to a Movie: • Functional Need: Entertainment and leisure. • Symbolic Need: Social experience or escape from daily routine. • Hedonic Need: Enjoyment of film and cinema environment. 3. Select one of the following products for discussion in your group: car, CD, pair of shoes, or shampoo. Develop a list of needs that might motivate you to buy the product you have selected. Make sure to think about (a) functional vs. symbolic vs. hedonic needs, (b) social vs. nonsocial needs, (c) types of risk, (d) prior attitudes, and (e) cognition or stimulation needs. Answer: Product: Car • Functional Needs: Reliable transportation, safety features, fuel efficiency. • Symbolic Needs: Status symbol, personal image, social prestige. • Hedonic Needs: Enjoyment of driving experience, aesthetic appeal. • Social Needs: Approval from peers, fitting in with a desired social group. • Nonsocial Needs: Personal satisfaction from owning a preferred model. • Types of Risk: Financial (cost), functional (reliability), and social (perception of status). • Prior Attitudes: Preference for certain brands or features based on past experiences. • Cognition/Stimulation Needs: Desire for the latest technology and innovation. 4. Develop a list of the five levels of Maslow’s hierarchy of needs and provide an example of each level from the behaviors of each member of your group. Note the similarities and differences between the needs that emerge at each level. Explain how understanding these similarities and differences can be important to marketers. Answer: 1. Physiological Needs: Basic needs for survival. • Example: Buying groceries to satisfy hunger. 2. Safety Needs: Security and stability. • Example: Purchasing a home security system. 3. Love and Belongingness Needs: Social relationships and acceptance. • Example: Attending social events or maintaining friendships. 4. Esteem Needs: Recognition and self-respect. • Example: Gaining a promotion at work or receiving awards. 5. Self-Actualization Needs: Personal growth and fulfillment. • Example: Pursuing a personal hobby or career goal. Importance for Marketers: Understanding these needs helps tailor marketing messages. For instance, luxury brands may focus on esteem and self-actualization needs, while home essentials may address safety and physiological needs. 5. Discuss why an understanding of consumer needs is important for marketing strategy. Explain specific ways that an understanding of needs can be used to influence consumers. Provide an example. Answer: Importance: Understanding consumer needs allows marketers to create targeted strategies that resonate with the target audience, address specific motivations, and effectively communicate product benefits. Ways to Influence Consumers: • Segmentation: Develop targeted campaigns based on different needs (e.g., functional vs. symbolic). • Positioning: Highlight features that meet specific consumer needs (e.g., safety for family cars). • Messaging: Craft messages that appeal to the emotional and practical aspects of needs. Example: A health food brand might emphasize functional benefits (nutritional value) in ads targeting health-conscious consumers while also highlighting lifestyle aspects (wellness and vitality) to appeal to those seeking self-actualization and esteem. 6. Discuss what is meant by the term involvement. Describe the kinds of objects a consumer can be involved with. Explain what determines the level of involvement a consumer may have in a given situation. Show why involvement is an important concept in consumer behavior. Answer: • Involvement: Personal relevance or interest in a product or decision. • Objects: Products (e.g., cars), services (e.g., healthcare), situations (e.g., shopping events). • Determining Factors: Personal relevance, perceived risk, prior knowledge, emotional engagement. • Importance: Affects how deeply consumers process information and make decisions, impacting marketing strategies. 7. Within your group, define each of the following terms and provide an example of each: (a) enduring involvement, (b) situational involvement, (c) felt involvement, and (d) cognitive vs. affective involvement. Answer: (a) Enduring Involvement: Long-term interest. • Example: Car enthusiast following automotive news. (b) Situational Involvement: Temporary interest due to a specific context. • Example: Researching home appliances for a renovation. (c) Felt Involvement: Personal relevance or emotional connection. • Example: Feeling excited about buying a gift for a loved one. (d) Cognitive vs. Affective Involvement: • Cognitive: Focus on thinking and understanding. • Example: Researching laptop specs. • Affective: Focus on emotions and sensory experiences. • Example: Excitement about a new fashion collection. 8. Select three products, services, or situations in which consumer involvement would be high, and three in which it would be low. Describe how the decision processes related to each of these examples would proceed for a consumer. Identify how high- and low-involvement decision-making processes differ. Answer: High Involvement: • Car Purchase: Extensive research, emotional and financial investment. • Home Purchase: Detailed evaluation, long-term commitment. • College Selection: Consideration of various factors, significant impact on future. Low Involvement: • Grocery Items: Routine purchases with minimal thought. • Basic Household Products: Quick decisions, low emotional engagement. • Snack Foods: Impulse buys with limited decision-making. Differences: High involvement involves in-depth research and emotional engagement; low involvement is quick and less emotionally charged. 9. Explain what is meant by the term perceived risk. Provide an example for each of the six major types of risk and explain why understanding each type is important for marketers. Answer: • Perceived Risk: Potential negative outcomes a consumer believes could occur. • Financial Risk: Losing money. Example: Expensive tech gadget that may not meet expectations. • Functional Risk: Product may not perform. Example: Faulty washing machine. • Social Risk: Negative social judgment. Example: Trendy but expensive fashion item. • Physical Risk: Harm to health or safety. Example: Harmful beauty product. • Time Risk: Wasted time if unsatisfactory. Example: Lengthy warranty claim process. • Psychological Risk: Impact on self-esteem. Example: Car that does not fit personal values. Importance: Helps marketers address and mitigate consumer concerns through reassurance and information. 10. Explain the need for cognition and how it affects information processing. Describe how knowing about this concept is helpful to marketers in different industries. Answer: • Need for Cognition: Enjoyment of thinking and problem-solving. • Effect: High need for cognition leads to detailed information processing; low need results in superficial processing. Marketing Implications: • High Need: Provide detailed and complex information. • Low Need: Use simple, clear messages and visuals. 11. Many consumers consider online buying risky. What steps can marketers implement to reduce consumers’ sense of risk? Answer: • Provide Detailed Information: Clear product descriptions and images. • Show Customer Reviews: Transparency through feedback. • Ensure Secure Transactions: Highlight security measures. • Offer Easy Returns: Clear return policies. • Provide Support: Accessible customer service. 12. What techniques have marketers developed to address the approach-avoidance conflict? Answer: • Reinforce Positives: Emphasize benefits. • Mitigate Negatives: Address and solve drawbacks. • Create Positive Associations: Use endorsements and appealing visuals. • Offer Trials/Samples: Allow product experience without full commitment. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “Penny for Your Thoughts” Exercise Take a large jar of pennies to class. Ask students to estimate the number of pennies they’ve seen, touched, saved, or handled in their lifetimes. Write these estimates, which generally are in the thousands, on the board. Tell students to take out a sheet of paper and draw a picture of each side of a penny, including words as well as images. After a few minutes, give each student a penny from the jar to compare to the drawing. Students typically realize that they failed to include a number of large and small details in their pictures. Use the exercise to demonstrate that even when we have the ability and opportunity to observe and/or learn about something, we will not do so if we lack the motivation or interest. 2. “An Enlightening Experience” Exercise* Take 12 to 15 votive candles (more or less, depending on the size of the room and the number of students) to class and position them around the room. At the start of class, light the candles, and then conduct the session as you normally would. Fifteen minutes before the end of class, talk to students about how the candlelight affected their MAO. Students usually report a variety of different responses and reactions to having the candles in the classroom. Some say they like it; others find it extremely uncomfortable. Some say it makes them sleepy and unable to concentrate, while others say the experience is so novel that they are more alert and engaged than usual. Some say it causes them to speak in softer tones, while some report that they felt as if they had to strain to see the instructor and others in the class. Use the experience to discuss the effect of environment on MAO. 3. Consider visiting local malls or auto dealerships to find examples of marketing efforts that relate to consumers’ motivation, ability, or opportunity to acquire a particular product that you can bring to the classroom. Examples of these efforts might include point-of-purchase displays, sample sizes of products, unique packaging, and interactive devices (e.g., sweepstakes). Use these examples to stimulate discussion about how marketers are or are not using principles of consumer behavior to support their marketing efforts. Here are a few examples you could bring into the discussion during class: a. Advertisements that have a high amount of copy versus lesser amounts of copy. Discuss the factors that could affect the use of more or less copy in advertisements, considering the issues of consumer motivation, ability, and opportunity. b. A product that has some risk associated with it that is relevant to your students. A credit card application is one such example, as is a student loan application. Discuss how risk can influence the likelihood of a consumer making a purchase decision. c. A marketing communication that is designed to address consumers’ ability to process information. For instance, ads that use slang or languages other than English are targeted toward specific audiences. Discuss how these ads may or may not be more successful. 4. To better understand cognitive style, have students visit www.personalitytest.com. Students can easily determine their cognitive style by responding to a short inventory of choices at www.personalitytest.com/personality-test.htm. For further application and insight, visit www.typelogic.com to see which famous people share your same cognitive style. CLASSROOM GROUP ACTIVITY Understanding Consumer Motivation, Ability, and Opportunity: 30 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to consider the issues of consumer motivation, ability, and opportunity in a brief classroom exercise. B. What the instructor will do 1. The instructor will divide people into small groups, assign them a product for consideration, and be available to coach and help the groups as needed. C. What the participants will do 1. The participants will work in small groups to brainstorm ideas for applying concepts from the chapter to specific brands. After a period of small-group discussion, they will make reports to the large group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Assign brands. 1. Assign each group a single brand on which to focus. a) Consider using both national and local brands, including both products and services. b) Consider using brands that are not the leaders in their categories (i.e., not Coke or McDonald’s) as well as those that are. c) Consider bringing samples of the brands to the class for students to study and review in their groups (e.g., a box of crackers, a candy bar, a cola can). C. Specific actions for groups 1. Instruct the groups to discuss consumer motivation, ability, and opportunity in relation to the brand they are considering. 2. Questions to be answered by small groups a) What factors of motivation, ability, and opportunity could affect consumers whom you are trying to attract to your brand? b) How would consumer motivation, ability, and opportunity affect your brand compared to others in your category (i.e., competitors)? c) What would you do to address the issues of motivation, ability, and opportunity if you were preparing a marketing effort for your brand? 3. Large-group discussions a) First have groups present their ideas about the first question, then proceed to discuss each of the subsequent questions. b) If there are many groups, share the discussion among all groups, though not all groups may answer all of the questions. III. Debrief and Unveil Concepts A. Discuss the activity itself 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of “doing” the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise? d) What will be different when they do this for their own brand? B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The importance of understanding a consumer’s motivation, ability, and opportunity to engage in exchange when developing a marketing effort b) How to study consumers to learn about their motivation, ability, and opportunity to process information about your brand 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples. c) Help them to see the interrelationships between their responses. IV. Execute A. Apply what has been learned 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Jeremy Quittner, “USAA Tech Overhaul Makes Remote Banking Less Remote,” America Banker, July 12, 2011, p. 1; “Customer Experience: The Frontline,” Marketing Week, June 2, 2011, p. 25; Robert L. Mitchell, “Big Business Takes a (Small) Bite of the Apple,” ComputerWorld, August 22, 2011, p. 12; and Jena McGregor, “USAA’s Battle Plan,” BusinessWeek, February 18, 2010, www.businessweek.com. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211