1. BUS-CBO Presentation for Group 4.pdf

CONSUMER MOTIVATION GROUP 4  Outline Determinants of consumer motivation Technological influences on consumer motivation  Determinants of consumer motivation A consumer motivation determinant refers to the factors that influence and drive a consumer’s decision-maki...

CONSUMER MOTIVATION GROUP 4  Outline Determinants of consumer motivation Technological influences on consumer motivation  Determinants of consumer motivation A consumer motivation determinant refers to the factors that influence and drive a consumer’s decision-making process when choosing a product or service and these are: 1. Needs and wants Needs are fundamental requirements such as food, water, and shelter When unmet, needs directly motivates consumers to seek essential products and services Wants are specific desires shaped by individual preferences and social influence These desires create a drive for products that enhance a consumer’s lifestyle or status  Determinants of consumer motivation 2. Goals Goals are specific objectives that consumers aim to achieve Goals can be short-term or long-term and are influenced by personal experiences, social norms and cultural values Consumers are motivated to make purchases they believe will help them reach their personal or professional goals The product and services are purchased as serving tools that will help them achieve their goals  Determinants of consumer motivation 3. Advertising and marketing They motivate consumers by creating awareness, generating interest and persuading them to buy Effective strategies appeal to consumer’s emotions and desires Marketing messages that creates a sense of urgency also strongly motivates consumers Phrases like “limited-time offer” or “only a few left in stock” pressure consumers to act quickly to avoid missing out 4. Situational factors These are specific circumstances or contexts that influence consumer motivation and purchasing behaviour  Determinants of consumer motivation These factors can include time constraints, life events, physical environment and current mood For example, during cold-rainy weather, consumers are motivated buy rain jackets and umbrellas while during heat wave, consumers are motivated to buy cooling products 5. Perceived risk Perceived risk refers to consumers’ assessment of potential negative consequences associated with a purchase. Consumers are motivated to reduce perceived risk when making a purchase. Generally, higher perceived risk serves as a barrier to consumer motivation and purchase intention. Types of perceived risks and their effect on motivation a. Financial Risk Includes potential financial loss, unexpected costs or poor value for money. High perceived financial risk leads consumers to postpone or avoid purchases. b. Performance risk Consumer concerns about whether the product will meet expectations and needs. It includes uncertainties about product performance, reliability and ability to deliver promised results. c. Time risk Consumer concerns about the time and effort required to research, acquire and learn to use a product. High perceived time risk can lead consumers to decide against making a purchase. Types of perceived risks and their effect on motivation d. Psychological risk This risk is the consumers’ concern about the impact a purchase may have on their self-image, confidence or emotional well- being. Consumers may worry that a product purchased could affect their self-perception or at times lead to feelings of regret, anxiety or dissatisfaction hence decreasing the motive of them making a purchase.  How marketers can mitigate perceived risks a. Financial Risk Offering money-back guarantees to reassure consumers they can recover their money if not satisfied. Introducing price promotions and discounts to lower the perceived financial burden Ensuring transparency in pricing by clearly outlining all costs, including hidden fees, to build trust.  How marketers can mitigate perceived risks b. Performance Risk Displaying product reviews and testimonials from satisfied customers to build trust in product performance. Offering product warranties or extended warranties to reduce concerns about potential performance issues. Providing free trials or samples to allow consumers to experience the product before a full purchase  How marketers can mitigate perceived risks c. Time Risk Simplifying the purchase process with user-friendly navigation and quick checkout options to reduce time concerns. Providing comprehensive product information such as descriptions, how-to videos, and manuals for informed decisions. d. Psychological Risk Building a strong brand reputation through consistent quality and ethical practices to instill consumer confidence. Utilizing positive messaging and branding that resonate with consumer identity and values to reduce self-image concerns. Highlighting customer testimonials and endorsements from influencers to boost confidence and reduce anxiety. Determinants of consumer motivation 6. Social influence Consumers are influenced by the opinions, behaviors and purchasing decisions of those around them It includes family, friends and celebrities or social media influencers. The purchasing decisions of influential public figures, such as celebrities or social media influencers impact consumer motivation. Consumers may then be motivated to purchase the product to match their favorite public figure and signal their own social standing.  Determinants of consumer motivation 7. Economic Factors Income levels, economic conditions and consumer confidence affect spending. High income increases purchasing power, allowing more or higher-priced purchases. Employment rates affect spending where high rates lead to more consumer spending. Inflation reduces purchasing power by increasing costs of goods and services. Interest rates impact borrowing as lower rates encourage loans for expensive items such as cars and vehicles.  Technological influences on consumer motivation 1. Access to information Technology increases access to information, enabling consumers to research products, compare prices and read reviews. This empowers consumers to make informed decisions that align with their needs and preferences. The sense of confidence and control in the decision-making process motivates consumers. Consumers use search engines like Google to find product descriptions, user reviews, professional critiques and price comparisons. Comparison Websites like PriceGrabber help consumers compare prices, features and specifications across retailers. Technological influences on consumer motivation Technological influences on consumer motivation Simplifying the comparison process saves time and effort, boosting consumer confidence. Platforms like TripAdvisor provide feedback and ratings from other users. Positive reviews increase motivation to purchase, while negative reviews serve as a caution 2. Personalization Advances in data analytics and machine learning enable high degrees of personalization. Platforms collect and analyze user data to provide personalized recommendations, customized offerings and tailored content. Personalization creates a sense of relevance and tailored experiences hence motivating consumers. Technological influences consumer motivation Consumers feel that products and services are specifically catered to their needs and preferences, increasing engagement and purchase likelihood. Personalization also fosters brand loyalty, as consumers feel understood and valued by the company. Platforms like Netflix and Amazon use AI to analyze user behavior and preferences to provide tailored suggestions. These recommendations make consumers feel understood and valued, increasing their motivation to use these platforms and trust their suggestions. Technological influences on consumer motivation 3. Social Influence Consumers share opinions, experiences, and recommendations about products and services. This creates a sense of community and social influence, motivating consumers to purchase products that align with their social circles and maintain their image or status. Influencer marketing, where brands collaborate with influential individuals, also impacts consumer motivation, as consumers trust credible and relatable recommendations. Technological influence on consumer motivation Platforms like Instagram, Facebook and TikTok significantly impact consumer behavior through content creators and advertisements. Influencers share their lifestyles, preferences and product endorsements, shaping trends and consumer preferences. Platforms like YouTube offer real-time product demonstrations and reviews. Streamers showcase new products and provide in-depth reviews during live sessions, allowing viewers to see the product in action and ask questions. Technological influence on consumer motivation Technological influence on consumer motivation 4. Innovation and novelty Technological advancements create innovative products, services, and experiences that capture consumer interest. Consumers are drawn to new technologies offering improved functionality, enhanced user experiences, and unique capabilities. The constant cycle of innovation ignites excitement and anticipation, motivating consumers to stay informed and be early adopters. AR apps like IKEA Place enable consumers to visualize products in their homes before purchase. By overlaying digital images onto the real world through a smartphone camera, AR enhances the shopping experience. Technological influences on consumer motivation The novelty of AR motivates consumers to explore products in new ways, increasing confidence in purchase decisions. Devices like the Apple Watch and Fitbit integrate advanced health and fitness tracking features. These devices monitor metrics such as heart rate, activity levels, and sleep patterns. Consumers are attracted to wearable technology for its innovative features and convenience in managing health and fitness. The continuous evolution of wearable technology motivates consumers to invest in devices that enhance well-being and productivity. Technological influences on consumer motivation Thank You.