© 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University

11 © 2008 by Nelson, a division of Thomson Canada Limited© 2008 by Nelson, a division of Thomson Canada Limited

Customer BehaviourCustomer BehaviourA Managerial Perspective A Managerial Perspective

First Canadian EditionFirst Canadian Edition

Jagdish N. Sheth Jagdish N. Sheth Emory UniversityEmory University

Banwari MittalBanwari MittalNorthern Kentucky UniversityNorthern Kentucky University

Michel LarocheMichel LarocheConcordia UniversityConcordia University

© 2008 by Nelson, a division of Thomson Canada Limited© 2008 by Nelson, a division of Thomson Canada Limited 22

CHAPTER 5CHAPTER 5

Customer Motivation: Needs, Customer Motivation: Needs, Emotions, and PsychographicsEmotions, and PsychographicsCustomer Motivation: Needs, Customer Motivation: Needs,

Emotions, and PsychographicsEmotions, and Psychographics

PART 2: FOUNDATIONS OF PART 2: FOUNDATIONS OF CUSTOMER BEHAVIOURCUSTOMER BEHAVIOURPART 2: FOUNDATIONS OF PART 2: FOUNDATIONS OF CUSTOMER BEHAVIOURCUSTOMER BEHAVIOUR


Conceptual FrameworkConceptual Framework

Payer

UserBuyerMotivation NeedsMotivation Needs

• Maslow’s Needs Hierarchy• Murray’s Psychogenic Needs• Dichter’s Consumption Needs

• Maslow’s Needs Hierarchy• Murray’s Psychogenic Needs• Dichter’s Consumption Needs

Motivation PsychographicsMotivation Psychographics

• Values• Self-concept• Lifestyles

• Values• Self-concept• Lifestyles

Motivation EmotionsMotivation Emotions

• Types of Emotions• Customer Moods• Hedonic Consumption

• Types of Emotions• Customer Moods• Hedonic Consumption


The Motivation ProcessThe Motivation Process

Drive/arousalDrive/arousal

• Cognitive• Autonomic (physiological)• Emotive

• Cognitive• Autonomic (physiological)• Emotive

OutcomeOutcome

• Experience of new state• Satisfaction

• Experience of new state• Satisfaction

BehaviourBehaviour

• Approach or avoidance• Approach or avoidance

Identification ofIdentification of

• Goal-directed behaviours• Goal-directed behaviours


Approach/Avoidance Approach/Avoidance MotivesMotives

Approach motivation is the desire to Approach motivation is the desire to attain a goal-objectattain a goal-object

Avoidance motivation is the desire to Avoidance motivation is the desire to protect oneself from an objectprotect oneself from an object


Facets of MotivationFacets of Motivation

NeedsNeeds EmotionsEmotions PsychographicsPsychographics


NeedsNeedsNeedsNeeds


Customer Needs Customer Needs

Maslow’s need hierarchyMaslow’s need hierarchy Murray’s psychogenic needsMurray’s psychogenic needs Dichter’s consumption needsDichter’s consumption needs Needs identified by marketing Needs identified by marketing

scholars scholars


Maslow’s Hierarchy of Maslow’s Hierarchy of NeedsNeeds

1.1. Physiological needs (hunger, thirst)Physiological needs (hunger, thirst)2.2. Safety and security needs (security, Safety and security needs (security,

protection)protection)3.3. Belongingness and love needs (social Belongingness and love needs (social

needs)needs)4.4. Esteem and ego needs (self-esteem, Esteem and ego needs (self-esteem,

recognition, status)recognition, status)5.5. Need for self-actualization (self-Need for self-actualization (self-

development, realization)development, realization)


Murray’s List of Psychogenic Murray’s List of Psychogenic Needs Needs

Need Definition Examples

Autonomy To be independent and free to act according to impulse; to be unattached, irresponsible; to defy convention.

Impulse buying, wearing unconventional clothing

Dominance To direct the behaviour of others Aggressively demanding attention in service establishments

Nurturance To give sympathy and to feed, help, and protect the needy

Giving to humanitarian causes

Exhibition To make an impression; to excite, amaze, fascinate, entertain, shock, intrigue, amuse, or entice others

Wearing high-fashion clothing

Cognizance To explore, to ask questions, to seek knowledge

Visiting museums, learning about new technology and products

Exposition To give information and explain, interpret, and lecture.

Playing opinion leaders.


Dichter’s Consumption Dichter’s Consumption Motives Motives

Motive Examples of Consumption Decisions

Mastery over environment

Kitchen appliances, power tools

Status Scotch, owning a car in third-world economies

Rewards Candies, gifts to oneself

Individuality Gourmet foods, foreign cars, tattoos

Social acceptance Companionship: sharing tea drinking

Love and affection Giving children toys

Security Full drawer of neatly ironed shirts

Maculinity Toy guns, heavy shoes

Femininity Decorating (products with a heavy tactile component)

Eroticism Sweets (to lick), gloves (to be removed by women as a form of undressing)

Disalienation Listening to and calling in talk shows (a desire to feel connected)

Moral purity/cleanliness

White bread, bathing, cotton fabrics

Magic-mystery Belief in UFOs, religious rituals, crystals (having healing power), visiting Elvis Presley museum and buying related products.


Needs Identified by Needs Identified by Marketing Scholars Marketing Scholars

Use-situation (i.e., aversive or Use-situation (i.e., aversive or positive)positive)

Hedonic (i.e., pleasure seeking) Hedonic (i.e., pleasure seeking) consumption motiveconsumption motive

Utilitarian Utilitarian


Three Specific NeedsThree Specific Needs

ArousalArousal CognitionCognition AttributionAttribution


Arousal SeekingArousal Seeking

Humans have an innate need for Humans have an innate need for stimulation.stimulation. Optimal level of stimulationOptimal level of stimulation Level of adaptationLevel of adaptation


CuriosityCuriosity

Need for cognitionNeed for cognition Need for knowingNeed for knowing

Tolerance for ambiguityTolerance for ambiguity Market mavensMarket mavens


Need for AttributionNeed for Attribution

Attribution motivationAttribution motivation The motivation to assign causesThe motivation to assign causes

Internal attributionsInternal attributions External attributionsExternal attributions


Internal vs. External Internal vs. External AttributionsAttributions

ConsistencyConsistency ConsensusConsensus DistinctivenessDistinctiveness


EmotionsEmotionsEmotionsEmotions


Customer EmotionsCustomer Emotions

Emotions have three components: Emotions have three components: PhysiologicalPhysiological BehavioralBehavioral CognitiveCognitive

Schachter’s two-factor theorySchachter’s two-factor theory Autonomic arousal Autonomic arousal Cognitive interpretation Cognitive interpretation

Marketers can adapt or respond to customer Marketers can adapt or respond to customer emotions by:emotions by: Designing the stimulus Designing the stimulus Aiding the meaning appraisalAiding the meaning appraisal


Scales To Measure Scales To Measure Plutchik’s Eight EmotionsPlutchik’s Eight Emotions

Plutchik’s emotions can be measured by rating the following triads of adjectives, each rated on, say, a five-point scale, ranging from Not at all to Very strongly. How do you feel at the moment?

Fear: Threatened, frightened, intimidated

Anger: Hostile, annoyed, irritated

Joy: Happy, cheerful, delighted

Sadness Gloomy, sad, depressed

Acceptance: Helped, accepted, trusting

Disgust: Disgusted, offended, unpleasant

Anticipation: Alert, attentive, curious

Surprise: Puzzled, confused, startled

© 2008 by Nelson, a division of Thomson Canada Limited© 2008 by Nelson, a division of Thomson Canada Limited

Emotions Typology:Emotions Typology:Plutchik’s CirclePlutchik’s Circle

Anger

Anticipation Joy

Acceptance

Fear

SurpriseSadness

Disgust

Remorse

Disappointment

Awe

Submission

Love

Optimism

Aggressiveness

Contempt


Customer MoodsCustomer Moods

Moods are simply short-lived emotions felt Moods are simply short-lived emotions felt less intenselyless intensely

Marketing stimuli that can induce positive or Marketing stimuli that can induce positive or negative moods are:negative moods are: The ambiance of the store or service delivery The ambiance of the store or service delivery

facilityfacility The demeanor of the salespersonThe demeanor of the salesperson The sensory features of the productThe sensory features of the product The tone and manner of advertisingThe tone and manner of advertising The content of the message itself from a The content of the message itself from a

salesperson or in the advertisementsalesperson or in the advertisement


Positive MoodsPositive Moods

Mood states have consequences in terms Mood states have consequences in terms of favourable or unfavourable customer of favourable or unfavourable customer response to marketer efforts response to marketer efforts

Customers have been found to:Customers have been found to: Linger longer in positive mood environmentsLinger longer in positive mood environments Recall those advertisements more that had Recall those advertisements more that had

created positive moodscreated positive moods Feel more positive toward brands based on Feel more positive toward brands based on

advertising that created feelings of warmth advertising that created feelings of warmth


Brand Name Recall Brand Name Recall

Brand name recall is a prerequisite for the Brand name recall is a prerequisite for the choice of the brandchoice of the brand

Recall depends on the process by which the Recall depends on the process by which the brand was first encoded in memorybrand was first encoded in memory

Lee and Sternthal state that two factors are Lee and Sternthal state that two factors are important in the encoding process important in the encoding process Brand rehearsalBrand rehearsal – how frequently and recently, the – how frequently and recently, the

brand has been exposed in the memory as a member brand has been exposed in the memory as a member of a particular categoryof a particular category

Relational elaborationRelational elaboration - the process by which - the process by which consumers link the brands to the specific categories consumers link the brands to the specific categories they belong tothey belong to


Hedonic Consumption: Hedonic Consumption: Seeking Emotional Value Seeking Emotional Value

Hedonic consumption is the use of Hedonic consumption is the use of products that give pleasure through products that give pleasure through the senses, that help create fantasies, the senses, that help create fantasies, and that give emotional arousaland that give emotional arousal Sensory pleasureSensory pleasure Aesthetic pleasureAesthetic pleasure Emotional experienceEmotional experience Fun and enjoymentFun and enjoyment


InvolvementInvolvement

InvolvementInvolvement The degree of personal relevance of an object or The degree of personal relevance of an object or

product to a customerproduct to a customer Situational involvementSituational involvement

The degree of interest in a specific situation or on The degree of interest in a specific situation or on a specific occasion a specific occasion

Enduring involvementEnduring involvement The degree of interest a customer feels in a The degree of interest a customer feels in a

product on an ongoing basisproduct on an ongoing basis Deep involvementDeep involvement

The relationship we develop as users with selected The relationship we develop as users with selected productsproducts


Deep InvolvementDeep Involvement

Deeply involved consumers:Deeply involved consumers: Are knowledgeable about the product and thus Are knowledgeable about the product and thus

can act as opinion leaderscan act as opinion leaders Consume a greater quantity of the product and Consume a greater quantity of the product and

also buy related products also buy related products Are less price sensitive for that product and are Are less price sensitive for that product and are

willing to spend wellwilling to spend well Seek constant information about productsSeek constant information about products Want to spend more time in related activitiesWant to spend more time in related activities


PsychographicsPsychographicsPsychographicsPsychographics


PsychographicsPsychographics

ValuesValues Self-conceptSelf-concept LifestylesLifestyles


ValuesValues

Terminal valuesTerminal values the goals we seek in life (e.g., peace and the goals we seek in life (e.g., peace and

happiness)happiness) Instrumental valuesInstrumental values

the means or behavioural standards by the means or behavioural standards by which we pursue these goals (e.g., which we pursue these goals (e.g., honesty)honesty)


List of Values (LOV)List of Values (LOV)

Self-respectSelf-respect Self-fulfillmentSelf-fulfillment SecuritySecurity Sense of belongingSense of belonging ExcitementExcitement Sense of accomplishmentSense of accomplishment Fun and enjoymentFun and enjoyment Being well respectedBeing well respected Warm relationships with others Warm relationships with others


Linking Product Attributes Linking Product Attributes To Customer ValuesTo Customer Values

Customers don’t buy products; they Customers don’t buy products; they buy benefitsbuy benefits

Means-end chainsMeans-end chains Identifying the connections between Identifying the connections between

product features and customers’ product features and customers’ fundamental needs and valuesfundamental needs and values


Self-esteem 23• feel better about self• self image• self worth

Self-esteem 23• feel better about self• self image• self worth

Family Life 21• maintain respect of

others• better family ties

Family Life 21• maintain respect of

others• better family ties

Belonging 22• security• camaraderie• friendship

Belonging 22• security• camaraderie• friendship

Avoid Waste 15• doesn’t get

warm

Avoid Waste 15• doesn’t get

warm

Smaller Size

(10 oz)7

Smaller Size

(10 oz)7

Filing9

Filing9

LessAlcohol

6

LessAlcohol

6

Bottle(shape)

5

Bottle(shape)

5

Label(fancy)

4

Label(fancy)

4

Expensive(+)3

Expensive(+)3

Carbonation(+)1

Carbonation(+)1

Accomplishment 20• get more from life

Accomplishment 20• get more from life

Reward 16• satisfying• compensation

Reward 16• satisfying• compensation

Refreshing 10• feel alert, alive

Refreshing 10• feel alert, alive

Thirst-quenching 12• relieves thirst• not too sour

Thirst-quenching 12• relieves thirst• not too sour

Crisp2

Crisp2

Impress Others 18• successful image

Impress Others 18• successful image

Sophisticated Image 17

• personal status• how others view me

Sophisticated Image 17

• personal status• how others view me

More Feminine 13• socially acceptable

More Feminine 13• socially acceptable

Quality 8• superior product• product quality

Quality 8• superior product• product quality

Socialize 19(able to)

• easier to talk• open to • more sociable

Socialize 19(able to)

• easier to talk• open to • more sociable

Consume Less 11• can’t drink more• can sip

Consume Less 11• can’t drink more• can sip

Avoid Negatives of Alcohol 14

• not too drunk• not too tired

Avoid Negatives of Alcohol 14

• not too drunk• not too tired

Means-End ChainMeans-End Chain


Self-conceptSelf-concept

Actual selfActual self What the person currently isWhat the person currently is

Ideal selfIdeal self What the person would like to becomeWhat the person would like to become


A Scale to Measure A Scale to Measure Self-Image and Product ImageSelf-Image and Product Image

1. Rugged 1 2 3 4 5 6 7 Delicate

2. Exciting 1 2 3 4 5 6 7 Calm

3.Uncomfortable

1 2 3 4 5 6 7 Comfortable

4. Dominating 1 2 3 4 5 6 7 Submissive

5. Thrifty 1 2 3 4 5 6 7 Indulgent

6. Pleasant 1 2 3 4 5 6 7 Unpleasant

7.Contemporary

1 2 3 4 5 6 7 Uncontemporary

8. Organized 1 2 3 4 5 6 7 Unorganized

9. Rational 1 2 3 4 5 6 7 Emotional

10. Youthful 1 2 3 4 5 6 7 Mature

11. Formal 1 2 3 4 5 6 7 Informal

12. Orthodox 1 2 3 4 5 6 7 Liberal

13. Complex 1 2 3 4 5 6 7 Simple

14. Colourless 1 2 3 4 5 6 7 Colourful

15. Modest 1 2 3 4 5 6 7 Vain


LifestylesLifestyles

Lifestyles are determined by:Lifestyles are determined by: A customer’s personal characteristicsA customer’s personal characteristics A customer’s personal contextA customer’s personal context A customer’s needs and emotionsA customer’s needs and emotions


Psychographics Psychographics As AIO Profiles As AIO Profiles

Psychographic profilesPsychographic profiles ActivitiesActivities InterestsInterests OpinionsOpinions

Lifestyle retail brandsLifestyle retail brands


Values and Lifestyles (VALS)Values and Lifestyles (VALS)

VALS 1 groups the entire population VALS 1 groups the entire population into nine groups, based on the into nine groups, based on the identities they seek and implement identities they seek and implement via marketplace behavioursvia marketplace behaviours

VALS 2 groups customers into eight VALS 2 groups customers into eight groups based on two dimensions: groups based on two dimensions: self-orientation and resourcesself-orientation and resources


VALS 1: Nine Lifestyle VALS 1: Nine Lifestyle SegmentsSegments

Integrated

SocietallyConscious

Experiential

I-am-me

Achievers

Emulators

Belongers

Sustainers

Survivors

OuterDirected

InnerDirected

NeedDriven


ExperiencersExperiencersFulfilledsFulfilleds

MakersMakersBelieversBelievers

VALS 2: Eight LifestylesVALS 2: Eight Lifestyles

ActualizersActualizers

AchieversAchievers

StriversStrivers

StrugglersStrugglers

PrinciplePrinciple ActionActionHigh ResourcesHigh Innovation

Low ResourcesLow Innovation

Status


Applications of VALSApplications of VALS

The best use of VALS is in targeting The best use of VALS is in targeting marketing communicationsmarketing communications

The iVALS model divides Internet users into 10 The iVALS model divides Internet users into 10 psychographic profilespsychographic profiles

WizardsWizards PioneersPioneers SurfersSurfers UpstreamersUpstreamers MainstreamersMainstreamers

Socialites Sociables Workers Seekers Immigrants


Compulsive BuyingCompulsive Buying

Compulsive buying is motivated less by a Compulsive buying is motivated less by a desire to possess things, and more as a desire to possess things, and more as a means of maintaining self-esteemmeans of maintaining self-esteem

Compulsive buyers:Compulsive buyers: Have a lower self-esteemHave a lower self-esteem Are more depressedAre more depressed Show a greater tendency to fantasizeShow a greater tendency to fantasize Experience greater emotional lift at the time of Experience greater emotional lift at the time of

purchasepurchase Experience remorse in the post-purchase phaseExperience remorse in the post-purchase phase Accumulate a much higher debtAccumulate a much higher debt


Compulsive ConsumptionCompulsive Consumption

Compulsive consumers:Compulsive consumers: Experience a drive or urge to engage in Experience a drive or urge to engage in

a behavioura behaviour Deny harmful consequencesDeny harmful consequences Face repeated failure in attempts to Face repeated failure in attempts to

control that behaviourcontrol that behaviour


MaterialismMaterialism

Three dimensions:Three dimensions: Acquisition centralityAcquisition centrality Acquisition as the pursuit of happinessAcquisition as the pursuit of happiness Possession-defined success Possession-defined success


A Scale to Measure A Scale to Measure MaterialismMaterialism

SUCCESS SUBSCALESUCCESS SUBSCALE I admire people who own I admire people who own

expensive homes, cares, and expensive homes, cares, and clothes.clothes.

Some of the most important Some of the most important achievements in life include achievements in life include acquiring material possessions.acquiring material possessions.

I don’t place much emphasis on I don’t place much emphasis on the amount of material objects the amount of material objects that people own as a sign of that people own as a sign of success.success.

The things I own say a lot about The things I own say a lot about how well I’m doing in life.how well I’m doing in life.

I like to own things that impress I like to own things that impress people.people.

I don’t pay much attention to the I don’t pay much attention to the material objects other people own.material objects other people own.

CENTRALITY SUBSCALECENTRALITY SUBSCALE I usually buy only the things I I usually buy only the things I

need.need. I try to keep my life simple as far I try to keep my life simple as far

as possessions are concerned.as possessions are concerned.

The things I own aren’t all that The things I own aren’t all that important to to me.important to to me.

I enjoy spending money on things I enjoy spending money on things that aren’t practical.that aren’t practical.

Buying things gives me a lot of Buying things gives me a lot of pleasure.pleasure.

I like a lot of luxury in my life.I like a lot of luxury in my life. I put less emphasis on material I put less emphasis on material

things than most people do.things than most people do.

HAPPINESS SUBSCALEHAPPINESS SUBSCALE I have all the things I really need to I have all the things I really need to

enjoy life.enjoy life. My life would be better if I owned My life would be better if I owned

certain things I don’t have.certain things I don’t have. I wouldn’t be any happier if I owned I wouldn’t be any happier if I owned

nicer things.nicer things. I’d be happier if I could afford to buy I’d be happier if I could afford to buy

more things.more things. It sometimes bothers me quite a bit It sometimes bothers me quite a bit

that I can’t afford to buy all the that I can’t afford to buy all the things I’d like.things I’d like.


The Motivational Processes and The Motivational Processes and the Three Customer Roles the Three Customer Roles

User Payer Buyer

Needs One or more needs constitute the primary purpose of product usage.

• Fear of being ripped off (security, esteem).

• Donors to worthy causes (esteem).

• Payers for gifts (esteem, social needs).

• Personal safety in shopping areas.

• Seek social interaction with salespersons and service providers.

• Need to protect and look to enhancing self esteem in marketplace experiences.

Emotions Emotional value from products.

• Emergency expenses and involuntary expenses, cause negative emotions

• Debt causes grief to many payers.

• Spending on self and for loved ones causes positive emotions.

• Shopping activity is sometimes enjoyable, and, at other times, boring.

• Finding a deal gives a thrill.

Psychographics

Users seek and use many products to live their lifestyles, to fit in with their psychographics.

• Being a spend thrift or a big spender, being a credit card user, accumulating debt or eager to stay debt-free are psychographics.

• Comparison shoppers, “shop till you drop,” shoppers at late night, “shopper types.”

Documents

© 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University