Week 7 - Motivation and Ethics - Class Slides PDF

Understanding the Customer and New Media MKT400 – Fall 2024 Week 7 – Motivations and Ethics Week 7 – Motivation and Emotions Last Week… Week 7 – Motivation and Emotions Components of Consumer Information Processing...

Understanding the Customer and New Media MKT400 – Fall 2024 Week 7 – Motivations and Ethics Week 7 – Motivation and Emotions Last Week… Week 7 – Motivation and Emotions Components of Consumer Information Processing Exposure Memory Sensory Workbench Attention Long-term Comprehension Elaboration Week 7 – Motivation and Emotions Comprehension Depends on Multiple Factors Week 7 – Motivation and Emotions Memory Memory: process by which knowledge is recorded; all elements of the information processing are related to memory Multiple Store Theory of Memory views the memory process as using three different storage areas within the human brain  Week 7 – Motivation and Emotions Memory https://opentextbc.ca/introductiontopsychology/chapter/8-1-memories-as-types-and-stages/ Week 7 – Motivation and Emotions Associative Networks Knowledge in long-term memory is stored in an associate network. Associative network – the network of mental pathways linking all knowledge within memory; sometimes referred to as a semantic network These networks are similar to family trees, as some family members are obviously related, but other family members, while still linked together, are not so obviously related Week 7 – Motivation and Emotions Now… Week 7 – Motivation and Emotions Motivation Consumer needs start the process because they kick start or motivate subsequent thoughts, feelings and behaviours Motivations are the inner reasons or driving forces behind human actions that drive consumers to address needs Motivations do not completely determine behaviour; other sources also influence behaviour Week 7 – Motivation and Emotions Consumer Value Framework Internal Influences Consumption Process External Influences Needs Consumer Psychology Wants Social Environment Learning Costs and benefits Acculturation/Encultu Search Exchange ration Perception Reactions Culture and Cultural Intuition Values Information Processing Reference Groups Memory and Peer Influence Categorization Social Class Attitudes Value Family Influence Utilitarian Social Media Hedonic Popular Media Personality of Consumer Motivation Values Personality Lifestyle Relationship Quality Situational Influences Self-Image/Identity CS/D Environment Emotional Switching Behaviour (Virtual/Physical) Expressiveness Customer Engagement Time/Timing Emotional Intelligence Customer Share Conditions Customer Commitment Week 7 – Motivation and Emotions Key Groups of Behaviour Human motivations are oriented around two groups of behaviour 1. Homeostasis refers to the fact that the body naturally reacts in a way that attempts to maintain a constant, normal bloodstream 2. Self Improvement Motivation are aimed at changing one’s current state to a state that is more ideal – not simply maintaining the current state of existence Week 7 – Motivation and Emotions Regulatory Focus Consumers orient their behaviour through either prevention or a promotion focus 1. Prevention Focus orients consumers to avoid negative consequences 2. Promotion focus orients consumers toward the opportunistic pursuit of aspirations or ideal Week 7 – Motivation and Emotions Maslow’s Hierarchy of Needs ✓ Physiological: Basic survival (food, drink, shelter, etc.) ✓ Safety and security. The need to be secure and protected ✓ Belongingness and love. The need to feel like a member of a family or community ✓ Esteem. The need to be recognized as a person of worth ✓ Self-actualization. The need for personal fulfillment Week 7 – Motivation and Emotions Simpler Classification of Consumer Motivations We can classify motives based on whether a consumer can best address a particular need by realizing utilitarian or hedonic value ✓ Utilitarian motivation is a drive to acquire products that consumers can use to accomplish things; bears much in common with the idea of maintaining behaviour. Work much like homeostasis ✓ Hedonic motivation involves a drive to experience something personally gratifying. These behaviours are usually emotionally satisfying Week 7 – Motivation and Emotions Simpler Classification of Consumer Motivations Week 7 – Motivation and Emotions Consumer Involvement Involvement is nearly synonymous with motivation - a highly involved consumer tends to be strongly motivated to expend effort and resources in consuming that particular thing Consumer Involvement represents the degree of personal relevance a consumer finds in pursuing value from a given category of consumption When a consumer is highly involved, there is a greater chance that relatively high value can be achieved Week 7 – Motivation and Emotions Consumer Engagement Consumer Engagement is used to refer to how motivated a consumer is to interact with a brand and how much a consumer behaves in support of that brand Specifically, customer engagement represents brand-related activities performed by the consumer that help create value for the brand Engagement behaviours include purchasing the brand’s products Week 7 – Motivation and Emotions Different Types of Involvement Product involvement: some product category has personal relevance Shopping involvement represents the personal relevance of shopping activities Situational involvement: temporary involvement associated with some imminent purchase situation → low involvement, high price Enduring involvement represents a continuing interest in some product or activity Week 7 – Motivation and Emotions Different Types of Involvement Emotional involvement: how emotional a consumer gets during some specific consumption activity Week 7 – Motivation and Emotions Emotions Emotions are specific psychobiological reactions to appraisals Psychobiological → involve both psychological processing and physical responses Visceral response is a powerful physical response that happens automatically without conscious control Behaviours are closely tied to emotion, creating close links between emotions, consumer behaviour, and value Week 7 – Motivation and Emotions Cognitive Appraisal Theory Describes how specific types of thoughts can serve as a basis for specific emotions. When a consumer makes an appraisal, they are assessing some past, present, or future situation Anticipation Agency appraisal Equity appraisal Outcome appraisal appraisal Focuses on the future Reviews responsibility Considers how fair Considers how and can elicit for events; it can evoke some event is; it can something turned out anticipatory emotions consequential evoke emotions like relative to one’s like hope or anxiety emotions like warmth or anger goals; it can evoke gratefulness, emotions like joy, frustration, guilt, or satisfaction, sadness, sadness or pride Week 7 – Motivation and Emotions Visceral Responses to Emotions by Consumers Type of Appraisal/Situation Emotion Behavioural Reaction Anticipation appraisal— Grim face with turned-down eyebrows and Consumer waits while the doctor Worry mouth. Hands likely near face. Consumer examines X-rays would rather avoid the situation Genuine smile including turned-up mouth, Outcome appraisal—Consumer Joy raised eyebrows, and open hands. The wins a contest consumer approaches the situation Turned-down mouth and lowered Equity appraisal—Consumer sees eyebrows with clenched fists and hunched a customer receive faster and Anger back. The consumer seeks to approach an better service than they receive agent of the company Agency appraisal—An Pinched facial expression and turned head. advertisement shows an animal Shame The body naturally withdraws from choking on a plastic shopping bag (avoids) the situation Outcome appraisal—Consumer Face flushes (turns red and feels hot), head shows up at an important party Embarrassment cowers, and a strong desire to flee (avoid) inappropriately dressed is experienced Week 7 – Motivation and Emotions Mood A transient (temporary and changing) and general feeling state Characterized with simple descriptors such as a “good mood,” a “bad mood,” or even a “funky mood” Generally considered less intense than other emotional experiences; still, moods can influence consumer behaviour Consumer mood affects satisfaction Employees moods can also affect consumption outcomes Week 7 – Motivation and Emotions Affect Another term used to represent the feelings a consumer experiences during the consumption process Consumer affect is often used to represent the general feelings a consumer has about a particular product or activity expressed as tone or liking (or disliking) Week 7 – Motivation and Emotions Sensing and Perception Create Affect, Mood, Emotion, and then Value Week 7 – Motivation and Emotions Emotional Involvement Motivation and involvement are closely related What taps our deepest emotions have the ability to evoke the greatest value Emotional involvement is the type of deep personal interest that evokes strong feelings associated with some object or activity Drives one to consume generally through relatively strong hedonic motivations Can make a consumer appear irrational Week 7 – Motivation and Emotions Flow Flow is the extremely high emotional involvement in which a consumer is engrossed in an activity It is the detachment from reality that defines a flow experience Shopping, gaming, and even following social media closely can create flow experiences where one loses sense of reality, and sometimes, control of their actions Week 7 – Motivation and Emotions Emotional Expressiveness Not all consumers express their emotions as obviously as others do Emotional expressiveness represents the extent to which a consumer shows outward behavioural signs and otherwise reacts obviously to emotional experiences. Consumers with high emotional expressiveness tend to react in some way to outcomes that are unexpected Week 7 – Motivation and Emotions Emotional Intelligence Emotional intelligence is a term used to capture one’s awareness of the emotions experienced in a situation and ability to control reactions to those emotions Includes awareness of the emotions experienced by the individual as well as an awareness and sympathy for the emotions experienced by others Week 7 – Motivation and Emotions Semantic Wiring A consumer’s ability to remember things about brands and products can be explained using theory developed around the principles of semantic or associative networks Words trigger mental activity automatically, and the active processing and storage of knowledge depends on emotions in several ways. Emotional effect on memory – the relatively superior recall for information presented with mild affective content compared to similar information presented in an affectively neutral way Week 7 – Motivation and Emotions Mood-Congruent Recall A consumer’s ability to remember things about brands and products can be explained using theory developed around the principles of semantic or associative networks Words trigger mental activity automatically, and the active processing and storage of knowledge depends on emotions in several ways. Emotional effect on memory – the relatively superior recall for information presented with mild affective content compared to similar information presented in an affectively neutral way Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Issues, Marketing and The Consumer Week 7 – Marketing Ethics and Consumer Misbehaviour Business Ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed By “right” or “wrong”, it is meant morally right or wrong as opposed to, for example, commercially, strategically or financially right or wrong From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 7 – Marketing Ethics and Consumer Misbehaviour Is Ethics in any way Different from Law? There is considerable overlap between Ethics and the Law Law is essentially an institutionalization or codification of Ethics into specific social rules, regulations and proscriptions Nevertheless, the two are not equivalent Business Ethics can be said to begin where the law ends From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 7 – Marketing Ethics and Consumer Misbehaviour Ethics “Grey Area” Ethics Grey Area Law From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 7 – Marketing Ethics and Consumer Misbehaviour Consumer Misbehaviour and Exchange Consumer misbehaviour – behaviours that are in some way unethical and that potentially harm the self or others Misbehaviour violates norms and disrupts the flow of consumption activities Sometimes called the “dark side” of CB Some behaviours are clearly illegal, while others are simply immoral. Week 7 – Marketing Ethics and Consumer Misbehaviour Consumer Misbehaviour and Exchange The focal motivation for consumer misbehaviour is Value How consumers obtain value is the key issue Consumers seek to maximize the benefits they receive from an action while minimizing, or eliminating, their own costs Ultimately, others’ costs increase— consumer misbehaviour is selfish! Week 7 – Marketing Ethics and Consumer Misbehaviour Moral Beliefs Moral beliefs – the beliefs about the perceived ethicality or morality of behaviours A consumer’s moral beliefs are made up of three components: ✓ Moral equity – the beliefs regarding an act’s fairness or justness ✓ Contractualism – the beliefs about the violation of written (or unwritten) laws ✓ Relativism – the beliefs about the social acceptability of an act in a culture Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Evaluations Once a consumer enters into a situation that calls for an ethical decision, they consider the various alternatives. Two sets of ethical evaluations occur: ✓ Deontological evaluations – evaluations regarding the inherent rightness or wrongness of specific actions ✓ Teleological evaluations – the consumers’ assessment of the goodness or badness of the consequences of actions Week 7 – Marketing Ethics and Consumer Misbehaviour Why Do Managers Behave Unethically? Week 7 – Marketing Ethics and Consumer Misbehaviour Motivations of Misbehaviour Unfulfilled aspirations Thrill-seeking Lack of moral constraints Differential association Pathological socialization Provocative situational factors Opportunism Week 7 – Marketing Ethics and Consumer Misbehaviour Most Common Misbehaviours Shoplifting Computer-mediated behaviours – sharing of music and software Computer-mediated behaviours - Attacks Consumer fraud Abusive consumer behaviour Illegitimate complaining Product misuse Misbehaviours while driving Week 7 – Marketing Ethics and Consumer Misbehaviour Consumer Problem Behaviour Compulsive consumption (buying and shopping) Eating disorders Binge drinking Problem gambling Drug abuse Week 7 – Marketing Ethics and Consumer Misbehaviour Why Do Managers Behave Unethically? Week 7 – Marketing Ethics and Consumer Misbehaviour Maintaining Objectivity Can be accomplished by applying three “simple tests” 1. Visibility, or Sunshine, Test Would I be comfortable if this action were described on the front page of a respected newspaper? 2. Generality Test Would I be comfortable if everyone in a similar situation did this? 3. Legacy Test Is this how I would like my leadership to be remembered? Week 7 – Marketing Ethics and Consumer Misbehaviour Ethics Dilemma An Ethical Dilemma is a paradox that comes up when there are two or more options, but neither of them are the best ethical or moral option Many business owners and manager will deal with ethical issues at some point in their career Week 7 – Marketing Ethics and Consumer Misbehaviour On-the-Job Ethics Dilemmas Week 7 – Marketing Ethics and Consumer Misbehaviour How Organizations Shape Ethical Conduct If any of these four factors is missing, the ethical climate in an organizations will weaken Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Awareness Code of Conduct: Formal statement that defines how the organization expects its employees to resolve ethical questions. Johnson & Johnson credo Air Canada code of conduct Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Education Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Action Helping employees recognize and reason through ethical problems and turning them into ethical actions TI Ethics Quick Test Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Action Texas Instruments Ethics Quick Test 1. Is the action legal? 2. Does it comply with our values? 3. If you do it, will you feel bad? 4. How will it look in the newspaper? 5. If you know it’s wrong, don’t do it 6. If you’re not sure, ask 7. Keep asking until you get an answer https://workforce.com/news/ti-gives-employees-a-quick-test Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Leadership Executives must demonstrate ethical behaviour in their actions Employees need to be personally committed to the company’s core values and base their actions on those values Week 7 – Marketing Ethics and Consumer Misbehaviour Moral Courage Enables managers to walk away from a decision that is profitable, but unethical Gives an employee the strength to say no to a superior who instructs her to pursue actions that are unethical Gives employees the integrity to go public to the media and blow the whistle on persistent unethical behavior in a company Week 7 – Marketing Ethics and Consumer Misbehaviour Ethical Issues, Marketing and The Consumer From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 7 – Marketing Ethics and Consumer Misbehaviour Reputational Risk “It takes many good deeds to build a good reputation, and only one bad to lose it.“ - Benjamin Franklin Week 7 – Marketing Ethics and Consumer Misbehaviour Reputational Risk is the Greatest Risk of All Source: “Reputation: Risk of Risks“ The Economist Intelligence Unit c.2005 Week 7 – Marketing Ethics and Consumer Misbehaviour Why Reputational Risk is Increasingly Important Source: “Reputation: Risk of Risks“ The Economist Intelligence Unit c.2005 Week 7 – Marketing Ethics and Consumer Misbehaviour The Importance of Reputation and Reputational Risk Source: “Reputation: Risk of Risks“ The Economist Intelligence Unit c.2005 Week 7 – Marketing Ethics and Consumer Misbehaviour There simple may not be a definitive right answer to many business ethics problems From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 3 – Business Ethics and Social Responsibility Sustainability Week 7 – Marketing Ethics and Consumer Misbehaviour Sustainability Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (World Commission on Environment and Development 1987) Week 7 – Marketing Ethics and Consumer Misbehaviour The Three Components of Sustainability Economic Social Environmental From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press Week 7 – Marketing Ethics and Consumer Misbehaviour The Three Components of Sustainability https://www.futurelearn.com/info/courses/sustainability-society-and-you/0/steps/4618 Week 7 – Marketing Ethics and Consumer Misbehaviour Triple Bottom Line Bottom line thinking suggests Sustainability as a Goal Three dimensions: ✓ Environmental perspectives (Planet) ✓ Economic perspectives (Profits) ✓ Social perspectives (People) Week 7 – Marketing Ethics and Consumer Misbehaviour Businesses’ Social Responsibilities Week 7 – Marketing Ethics and Consumer Misbehaviour Responsibilities to the General Public (1 of 2) Public Health Issues. What should businesses do about dangerous products such as alcohol and tobacco? Or diabetes, heart disease, and obesity? Protecting the Environment. Using resources efficiently, minimizing pollution ✓ Green marketing: Marketing strategy promoting environmentally safe products and production methods ✓ Sustainability: Finding renewable sources of clean energy Week 7 – Marketing Ethics and Consumer Misbehaviour Responsibilities to the General Public (2 of 2) Developing the Quality of the Workforce ✓ Enhancing quality of the overall workforce through education and diversity initiatives Corporate Philanthropy ✓ Includes cash contributions, donations of equipment and products, supporting the volunteer efforts of employees ✓ Positive benefits such as higher employee morale, enhanced company image, and improved customer relationships Week 7 – Marketing Ethics and Consumer Misbehaviour Responsibilities to Customers Week 7 – Marketing Ethics and Consumer Misbehaviour Responsibilities to Employees Workplace Safety, providing the right training and working conditions; safety committees Quality-of-Life Issues, balancing work and family through flexible work schedules, subsidized childcare Equal Opportunity on the Job, without discrimination of any kind Sexual Harassment and Sexism, avoiding unwelcome and inappropriate actions of a sexual nature; equal pay for equal work Week 7 – Marketing Ethics and Consumer Misbehaviour Responsibilities to Investors Obligation to make profits for shareholders Expectation of ethical, legal and moral behaviour Protection of investors by provincial regulators such as the Ontario Securities Commission and the Alberta Securities Commission Week 7 – Marketing Ethics and Consumer Misbehaviour Corporate Social Responsibility Desired by society Philanthropic Responsibilities Expected by society Ethical Responsibilities Required by society Legal Responsibilities Economic Required by society Responsibilities Source: Carroll (1991) From Business Ethics, 4th Edition by Andrew Crane & Dirk Matten. Oxford University Press