Tuesday, November 24, 2009

Short essay on 'Consumer Behaviour'

The different theories on learning, personality and motivation and their effects on consumer behaviour and subsequent adoption in marketing strategy. Enjoy:

When it comes to the different elements that can affect consumer behaviour, we can notice influences from a wide range of academic backgrounds; from marketing management to sociology and psychology. As such we need to look at all these different disciplines in the light of their unique takes on issues such as personality, motivation and learning. In this essay, we will look at the different theories put forward by Freud, Maslow, Herzberg and Bourdieu. Subsequently, we shall compare and contrast the different theories in order to provide us with a comprehensive view of which ideology has the strongest argument. Due to the fact that these thinkers come from varied backgrounds (psychology and sociology), we will be able to formulate a well rounded argument regarding the different factors that can influence consumer behaviour. Once we have done this, we can begin to look at the implications that these theories have in relation to the formulation of marketing strategy. Lastly, we will conclude that marketers need to be aware of all of these different elements, and should only proceed forwards in developing strategies within a specific empirical framework (attained through intensive market research) in order to maximise the effectiveness of their current marketing practices.

We begin with Freud, whose theories are widely discussed and still hold relevance to this day; this is not without reason. For Freud, our motivations come mainly from unconscious desires, and as such, we may not always understand or even realise the extent to which these desires affect us (Kotler et al., 2009: 238). As a result of this, we become influenced by a wide variety of stimuli (which we don’t always notice and aren’t always the focus of the marketing – e.g. the size of a product). However, one could argue that oversimplifies the role of the consumer, who often times is extremely fastidious about the most minute detail of the product he/she wishes to purchase. On the other hand, Herzberg viewed levels of motivation as being a consequence of the existence (or lack thereof) of satisfying features (satisfiers). Though Herzberg was more concerned with how to motivate workers, his work (1966) provides us with an insight into the logic behind motivation (as a general concept). We, as consumers, will not be content to purchase something simply because there is nothing about it that dissatisfies us. There have to be elements that satisfy other standards as well as the lack of dissatisfiers. However, the problem with Herzberg’s views are that it makes too much of an assumption insofar as it postulates that people will automatically be motivated simply due to presence of certain prerequisite conditions (i.e. the presence of satisfiers in the workplace does not automatically mean worker productivity will increase). Furthermore, we can safely assume that not every individual responds the same way to different stimuli (and therefore what may be a satisfier for one may be irksome for another).

For Maslow, our drives are far more instinctual in nature. He based his argument on the logic that we, as human beings will, in different situations, react according to what we need in life. In his original paper Maslow laid out the different human ‘needs’ in a specific, ranked structure (1943: 370 – 396), now commonly known as the ‘Hierarchy of Needs’. If we follow Maslow’s argument, we can see that the we, as consumers, are not influenced by subconscious (or even conscious) stimuli, but rather by deep-rooted desires linked to where we are (financially, socially, personally) in life. This is limited in scope though as it overlooks the fact that we often make impulse buys, and sometimes for things we cannot afford/do not need. In other words, we can argue that Maslow’s hierarchy is slightly oversimplified and therefore can be (potentially) limited. Gratton notes this, in discussing Maslow, when she says we should be “concerned with the oversimplification involved in speaking of a ‘need level’ in a holistic manner.” (1980: 474). Despite some of the generalizations of Maslow’s theory, it unquestionably has some valid points, and we can see these reflected in Bourdieu’s views on ‘habitus’ in his seminal work ‘Distinction’ (1984). For Bourdieu, habitus is (essentially) the world we live in as influenced by a variety of social, financial, political and personal factors. If Maslow’s hierarchy works off the logic that we buy what we ‘need’ as decided by external factors, then we can deduce that this will influence the consuming behaviours of people from different social backgrounds (as they need different things - as shown by Gratton in her work). Therefore we can immediately draw similarities between Maslow and Bourdieu insofar as their works imply that consumer behaviour is (at different levels) driven by external (and sometimes unchangeable) influences. Furthermore, Bourdieu’s work is extremely useful as you can use his analysis to understand motivation (socio-economic factors), personality and perception (the ‘habitus’ we are born into shapes these) at virtually any class/group level.

It would be erroneous to assume that concepts as complex as personality and perception have only one root cause or definition. Like motivation, we can see that different theorists have a veritable plethora of views on these next two topics. Lindsay and Norman (1977) describe perception as being the process by which we interpret, analyse and organise stimuli (what they call ‘sensation’) in order to experience the world within a meaningful context. Kotler et al. provide a similar definition to Lindsay and Norman’s in the words of Berelson and Steiner. It states that “Perception is the process by which we select, organise and interpret information inputs to create a meaningful picture of the world.” (2009: 239). Kotler et al. delve in deeper and explain that perception is a multi-faceted concept and the way we perceive stimuli is based on selective attention (screening out certain stimuli), selective distortion (tendency to interpret information in ways that suit our preconceptions) and selective retention (retaining information which supports our attitudes and beliefs) (2009: 239-240). If we analyse the implications of what this means we could argue that consumers tend to purchase things based on: what we choose to pay attention to, that reinforce our preconceptions and reflect our personal beliefs. Thus as a marketer, being able to target a specific market segment is about effectively mapping out how that segment perceive their needs and then supplying them. Furthermore, we can argue that the manner in which we choose to screen out certain stimuli and not others can be attributed to issues such as our needs (e.g. Maslow’s hierarchy) or our socio-economic standing (e.g. Bourdieu’s habitus). The final cognitive process we have to look at is learning (which will give us more insight into consumer behaviour as well as tying into motivation and perception). Once again we turn to Kotler et al. who define learning as including “changes in our behaviour arising from experience.” (2009: 240). Certain theories put forward such as ‘Information Processing Theory’ (I.P.T.), view human learning as analogous to how a computer learns, by inputting, processing, and outputting information. However, if we view learning as an ongoing experiential approach we can see that it is intrinsically linked with the other two key cognitive processes; learning affects perception which affects motivation which affects future learning, and so on and so forth. Thus we are working off the belief that viewing learning from a behavioural perspective (rather than I.P.T.) is a more beneficial approach for marketers.

Knowing the different psychological perspectives affecting consumer behaviour is a crucial factor that any marketer should be aware of when attempting to devise a marketing strategy. Kotler at al. suggest several different means of gaining this crucial information (2009: 260). The first is the ‘introspective method’ which involves the marketer considering how they would act in a given situation. The obvious problem with this is that sometimes they lack the experience or external conditions necessary to glean necessary, relevant information (e.g. a wealthy marketer might find it difficult to adequately emulate the situation and needs of a person with much less disposable income). The ‘retrospective method’ involves interviewing people who have recently bought a given product or service and asking them to retell the process that led to the ultimate purchase, but just as any information gained from interviews, it is subject to bias, inaccurate retelling and potentially imperfect information. The ‘prospective method’ involves asking customers to think aloud about the purchasing process before they’ve bought the product/service while the ‘prescriptive method’ asks consumers to describe how they would ideally like to purchase a product. A huge problem with all but the ‘introspective method’ is that they are dependent on both man power (e.g. availability of staff/volunteers) to track down consumers and carry out the interviews, and the accurateness/honesty of the interviewees.

Thus far we have discussed the different perspectives put forward by the likes of Freud, Herzberg, Maslow, Bourdieu and Kotler on the subjects of the psychological processes of motivation, perception and learning. As we went we studied what implications each of these different processes can have in affecting the overall process of consumer behaviour. Further to this we reviewed some of the more common methods used by marketers in order to gain key data regarding the mindsets and habits of consumers before devising their marketing strategies. With all of this information, what can we conclude? Firstly, it is crucial to understand that marketers absolutely must take into account the experiential aspect (of the consumer) regarding purchasing and consuming. Holbrook and Hirschman put it succinctly we they say “Abandoning the information processing is undesirable, but supplementing and enriching it with an admixture of the experiential perspective could be extremely fruitful.” (1982: 138). Furthermore the marketing team need to re-evaluate their strategic marketing plan in order to reflect the motivations of the consumer (this should be done in a theoretical framework and for this Maslow and Bourdieu would be the best options). The best way to do this is to implement the ‘prescriptive’ and ‘introspective’ methods laid out by Kotler et al. as this gives the researcher an idea of what is going through the consumer’s mind. However, as we already mentioned, this takes a lot of time and man power. Furthermore, to gain any real insight into the consumer behaviour patterns of large groups (such as socio-economic groups) these techniques would have to be widespread and dozens (potentially hundreds or more) of people would have to be interviewed (which again, can often be virtually impossible in practical terms). Following on from this, it is possible to revamp the tactical marketing plan in accordance with the new findings implemented in the strategic plan. A concise and effective study into specific, market based consumer behaviour will allow for the possibility of successfully developing new marketing strategies.
Bibliography:

• Bourdieu, P. (1984) Distinction: A Social Critique of the Judgement of Taste. London: Routledge and Kegan Paul.

• Herzberg, F. (1966) Work and the Nature of Man. New York: Thomas Y. Crowell Company.

• Holbrook, M.B. & Hirschman, E.C. (1982) ‘The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun’. The Journal of Consumer Research, 9(2): 132 – 140.

• Gratton, L.C. (1980) ‘Analysis of Maslow’s Need Hierarchy with Three Social Class Groups’. Social Indicators Research, 7(1/4): 463 – 476.

• Kotler, P., Keller, K., Brady, M., Goodman, M. & Hansen, T. (2009) Marketing Management. London: Pearson/Prentice Hall.

• Lindsay, P. & Norman, D. (1977) Human Information Processing: An Introduction to Psychology. New York: Academic Press.

• Maslow, A. (1943) ‘A Theory of Human Motivation’. Psychological Review, 50(4): 370 – 396.

Thursday, November 19, 2009

Gillette: Time for Damage Control?

If you live in Ireland, you most likely know all about Thierry Henry's little 'incident' the other night. For those of you who don't, have a look at the following video:



Die-hard footballs fans and Irish patriots are FURIOUS about this, and rightly so. This handball esentially cost Ireland the chance to qualify for the South Africa World Cup 2010 (by means of a penalty shoot out) after a grueling 90 something minutes, 1 great goal and an overall huge effort from the Irish side.

Now you may also know that Thierry Henry is one of the three (clean shaven) faces of Gillette for men. To many, that may not make much of a difference when it comes to their choice of shaving products. But you have to remember, the beautiful game has a strong effect on people, and a world cup only comes around every 4 years. Because of this, I think Gillette needs to implement some damage control, and quick. A quick glance around the internet will show you that a large amount of people (Irish and non-Irish alike) are claiming they will boycott Gillette products whislt Henry is still endorsing them.

That's just my opinion anyways, and food for thought for all you people. Sound off in the comments about what you think Gillette should do (if anything at all).

EDIT: I've just seen a group on Facebook entitled 'Boycott Gillette until they drop Henry'. Fri. Nov 20th 18:25 - 505 members and growing.

EDIT: Fri. Nov 20th 21:43 - Group up to 675 people!

Manuel

Thursday, November 12, 2009

Time Magazine: Losing the Plot?

Time released their list of the Top 50 Best Inventions of 2009. You can have a look at the full list HERE.

I have to say the list is, for the most part, frankly ridiculous. Ok first of all: 'invention' number 49....a new type of cloud. Members of the International Cloud Appreciation Society noticed this new type of cloud, known as undulatus asperatus. I'm sorry, how is this an invention?? Number 33: the no-punt offense...in American football. Umm....do I just not understand what an invention is?

Those aside, the most ridiculous thing on the list, in my humble opinion, is the fact that Microsoft's (currently in development - to be released late 2010) wireless, full body motion controller (for the XBox 360) ranks higher than certain things.....like the AIDS vaccine. In Sub-Saharan Africa alone, 1.5 million people died of HIV/AIDS as of the end of 2007 (figures from HERE). 1.5. Million. People. But the ability to play games using your whole body ranks higher than a vaccine that can immunize people against this disease.

Words can't describe how ridiculous this is so I leave it to you to eloquently express the absurdity of it all.

Manuel