Unit 5: Buying Motives PDF

UNIT 5: BUYING MOTIVES Structure 5.0. Objectives 5.1. Introduction 5.2. Meaning of Buying Motives 5.3. Importance or application of buying motives in personal selling 5.4. Types of Buying Motives 5.5. Buyer Motivation 5.6. Let Us Sum Up 5.7. Key Words 5.8. Answers to Check Yo...

UNIT 5: BUYING MOTIVES Structure 5.0. Objectives 5.1. Introduction 5.2. Meaning of Buying Motives 5.3. Importance or application of buying motives in personal selling 5.4. Types of Buying Motives 5.5. Buyer Motivation 5.6. Let Us Sum Up 5.7. Key Words 5.8. Answers to Check Your Progress 5.9. Terminal Questions 5.0. OBJECTIVES After studying this unit, you should be able to:  explain the concept of buying motives;  discuss the importance of buying motives in personal selling;  describe the types of buying motives;  apply the concept of buying motives in personal selling; and  describe the notion of buyer motivation. 5.1. INTRODUCTION The slogan “Consumer is the king of the market” is what forms the basis for the modern marketers today. A consumer is said to have a motive behind his each and every purchase. In other words, A consumer’s purchase depends upon the motives that he wishes to fulfil by buying that product. These motives are stimulated by various customer. Specific factors like physiological, societal, and financial factors etc. influence the buying motives. A customer is susceptible to buy a particular product if it fulfils his motive of purchase. To rephrase it, a marketer is likely to sell the product to the customer if he is able to identify his motive of purchase. For instance, during monsoon season, a customer is motivated to by an umbrella to protect himself from the rain. Similarly, a customer is motivated to buy a detergent in order to wash his dirty clothes. The factors that stimulate or motivate the customer to buy a particular product are referred as ‘buying motive’. A customer is said to make a purchase not just to own that particular product but to satisfy these forces that are the ‘buying motives.’ To reiterate, ‘buying motives’ are the “internal feelings” of a customer/ buyer and he tries to gratify them to the fullest. Buying motives relate to the feelings and emotions of people which generates a desire to purchase.Buying motives are the motive to persuade the desires of people so that they buy a particular good or service. In this unit you will learn : 5.2. MEANING OF BUYING MOTIVES Various authors have made significant contribution to the literature of buying motives in personal selling. Few of them have put forward the following definitions of buying motives: As defined by W. J. Stanton,“A motive may be defined as a drive or an urge for which can individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something.” As per D. J. Duncan, “Buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods and services.” Prof. S. Davar defined it as“A motive is an inner urge that moves or prompts a person to some action.” In the words of Berelson and Steiner“A motive is the inner state that energizes, activates or moves and that directs or channels behaviour towards goals.” Prof. William G. Carter has given a long list of buying motives such as “money, vanity, acquisitiveness, rivalry, adornment, cleanliness, collecting, amusement, construction, companionship, mental culture, appropriateness, ambition, inhibitive- ness, reverence, affection, tastes, sex, limitation, curiosity, self-preservation, sympathy, gratitude, patriotism, and so on.” From the above mentioned definitions we can conclude that buying motive is a psychological human urge which inspire the consumers to buy the products or services to satisfy their needs. In other words, a buying motive is the desire, stimulus, thoughts, urge, instinct, feelings that makes a buyer to buy a commodity. 5.3. IMPORTANCE OR APPLICATION OF BUYING MOTIVES IN PERSONAL SELLING The understanding of the ‘Buying motives’ concept is necessary due to the following reasons: 1. Improvising salesmanship : As a buying motive is the sole reason behind every purchase, therefore a salesperson can improve his skills of salesmanship by understanding the buying motive of his customer. Once he understands the motive of his customer behind the purchase, he will be able to better cater his needs in terms of the quality, price, size, colour etc. of the product. Also, by understanding the purchase motive of the customer, the salesman will be in a better position to guide him and influence his purchase behaviour. The understanding of this concept will definitely help the salesperson to polish his skills on existing job and look forward to better career opportunities. 2. Assists in product planning : Buying motives facilitate the marketing experts and the firms, in taking product planning decisions in line with the customers’ preferences. Under this, the various market experts conduct a thorough market research wherein they try to explore the buying motives of their target audience. They try to understand what colour, size, features, occasions, design etc, the target audience is looking for. Accordingly, these experts or firms take decisions pertaining to the planning of the product. 3. Facilitates in pricing decisions : Pricing decision is one of the critical factors that influence a firm’s survival or growth in the market. Therefore, a firm must undertake a comprehensive analysis of the data while setting up the price of a product. Buying motives helps the firms in determining the motives of their target audience and further classifying them into rational or emotional buying motive categories. Based on these buying motives classification, their price sensitively can be determined. A rational buying motive buyer is likely to be more price sensitive than an emotion driven buyer. 4. Role in promotion- mix : A firm uses various promotional techniques viz. personal selling, advertising, direct marketing, sales promotion, and publicity etc. to spread awareness or communicate about its product or services to the target audience. Knowledge of the buying motives of the target audience can help the marketers to understand the forces that stimulates their target audience to make a purchase. A decision can be made whether the target audience is driven by rationality or is stimulated by emotions. Accordingly, a suitable promotion mix comprising of appropriate promotional technique, the type of advertising appeal used in the message, the body copy of the message/ advertisement etc. can be determined to communicate with the target audience effectively. 5. Determining channels of distribution : There are some consumers that prefer buying product or service from the wholesaler itself. They do not prefer buying commodities from some middlemen or retailer. Such customers are influenced by “self- protective” buying motives while making a purchase. Therefore, a marketer must take into consideration the ‘buying motives’ of the customers before taking any logistics related decision. 6. Contributes to firm’s goodwill : Firms try to satisfy their customers by understanding their buying motives and cater their needs accordingly. Customer satisfaction in turn results into a positive image of the firm in the market which leads to the creation of firm’s goodwill in the market. 7. Increases Customer trust and loyalty : Since, firms ensure their customers’ satisfaction by analysing their buying motives, it builds the customer’s trust in the brand or firm. Customer trust further induces the customer’s loyalty to the brand or firm. 5.4. TYPES OF BUYING MOTIVES Buying motives can be classified as follows (Figure1): Rational product buying motives Product buying motives Emotional product buying motives Buying Motives Rational patronage Patronage buying motives buying motives Emotional patronage buying motives Figure 1: Types of buying motives flow chart, let us learn them in detail. 1. Product buying motives : Under product buying motives, a customer is said to be motivated to buy a specific product. This motivation is induced by various product specific factors like size, colour, package, quality, quantity, and design etc. Product buying motives can be further classified into rational buying motives and emotional product buying motives. i. Rational product buying motives When a buyer decides to purchase a certain product after carefully or logically considering each and every aspect associated with the purchase. Such purchase is said to be influenced by rational buying motives. Some of the rational product buying motives are listed below:  Safety or Security: Security or safety is one of the significant rational products buying motive of the customers which influences their purchase decision. For example, if one wishes to buy an iron safe or a locker to safeguard his jewellery or any other expensive item, he shall examine each and every aspect of the iron safe or the locker in terms of its strength, space, and security etc. to make sure that his belongings remain safe therein.  Economy: Operating or maintenance cost of the product also plays a crucial role while making purchase decision. Customers often, prefer buying those  goods or commodities who’s operating or maintenance costs are comparatively low. For instance, customers belonging to middle income group prefer buying a diesel or CNG operated cars since their prices are lower than petrol prices. Also, they give better mileage than petrol cars.  Price of the product: It is the first and foremost factor that buyers consider while making a purchase decision. Buyers has a tendency of comparing the prices of the similar goods (substitute in nature) and buy the one which is relatively cheaper.  Suitability of the product: Suitability is one of the buying motives which influences a buyer’s purchase decision. A smart buyer usually buys those products that suits to his requirements. For instance, a buyer owns a small house and is looking for a dining table for his house, will go for a compact one rather than a big dining table as it will occupy more space.  Versatility of the product: A product is said to be versatile when it can be put to multiple uses. A buyer’s purchase decision is influenced by the versatility of the product.  Durability of the product: Durability means long lasting that is something superior in quality which lasts longer in comparison to other products. Durability is one such factor that influences a buyer’s purchase behaviour. Buyers even pay premium price for durable products. For example, buyer usually prefer teak or rosewood, though they are comparatively costlier over any other inferior wood for the furniture.  Convenience/ comfort of the product: Buyers prefer buying those products that are convenient to use. For instance, a domestic gas stove. Here, the buyer prefers the most convenient model so that he can easily use it. Emotional product buying motives When a buyer decides to purchase a certain product without carefully or logically, but emotionally considering every aspect associated with the purchase. Such purchase is said to be influenced by emotional buying motives. ii. Emotional product buying motives include the following:  Prestige or Pride: Prestige is the one of the strongest emotional buying motives that buyers possess. Buyers feel proud of possessing certain products and purchase those products to ensure their social status in the society. For instance, preference for diamond jewellery, buying a newly launched iPhone model, new luxurious automobiles etc.  Emulation: Some people buy certain products just because some other person owns that product. In other words, some buyers try to imitate others and tend to buy what others own. For instance, a boy is likely to buy a new bike just because his friend has bought the latest model of that bike. Similarly a housewife wishes to buy a diamond ring just because some of her relatives has bought one.   Affection: Affection or love is the most common emotional buying motive. Buyers tend to buy certain commodities or goods out of their love or affection for someone. For example, a son buys an expensive watch for his dad and a mother gifts a costly ring to her daughter out of her love and affection.  Individuality or distinctiveness: Desire to look different from others is one of the emotional buying motives. For instance, some people wear a specific type of clothes to make himself different and ensure their individuality.  Pleasure or recreation: A wish for pleasure or recreation also induces a buyer to buy certain goods. People buy goods like musical instruments, radios etc with a desire for pleasure or recreation.  Habit: Habit is a significant emotional buying motive. People become habitual of some goods and they need them at any cost. For instance, People get addicted with alcohol or cigarettes; some facewash that suits your skin; sleeping pills etc. 2. Patronage buying motives Under patronage buying motives, a customer is said to be motivated to buy from a specific seller or shop. This motivation induced by various seller or shop specific factors like convenience, variety, shop reputation, and credit facility etc. Patronage buying motives can be further classified as rational patronage buying motives and emotional patronage buying motives. Let us learn them. i. Rational patronage buying motives When a buyer decides to patronize or purchase from a certain shop or seller after carefully or logically considering each and every aspect associated with it. Such purchase is said to be influenced by rational patronage buying motives. Some rational patronage buying motives are as follows: Convenience: Convenient location or working hours is the most common rational patronage buying motive. A Buyer is likely to patronise a shop which is located at a convenient place. For example, local grocery shops, chemist shops, dairy etc. In addition to convenient location convenient working hours also induces a buyer to patronise a specific shop. For instance, a 24- hours open chemist shop; grocery shop with long working hours; other convenience shops like 24*7 etc. Lower prices: Price has always been the most dominating factor influencing a buyer’s purchase decision. A buyer is most likely to patronise a shop which charges him a price which is comparatively lower than the price charged by  others. A special discount or rebate always motivates a customer to patronise the shop. Credit facilities: Shopkeepers tend to offer certain privileges to the customers to engage them. One such privilege is credit facility. Many shopkeepers sell their products to the customers on credit basis and maintain a register/ record of the same. Later, the buyer at his convenience pays back to the seller. Wider choices: Customer always prefers shops that offers them with wide variety of options. Hence, wider choice factor induces a customer to patronise a shop and is considered as an important rational consideration. Reputation of the shop: Shopkeepers who are honest in their dealings and offer fair prices to their clients are always preferred by the customers. A customer automatically starts patronising a shop or shopkeeper who has good reputation in the market. ii. Emotional patronage buying motives When a buyer decides to patronize or purchase from a certain shop or seller without logically but emotionally considering each and every aspect associated with it. Such purchase is said to be influenced by emotional patronage buying motives. Some emotional patronage buying motives are as follows:  Shop appearance: Sometimes, customers find some shop attractive because of their ambience, display of the goods, theme of the shop etc., so they start patronising that particular shop.  Recommendations: Recommendations plays a significant role in determining a buyer’s purchase behaviour. Word of mouth or recommendation by some person for example family member, peer group, friends, relatives etc. plays an important role in influencing a buyer purchase pattern.  Emulation: Some people buy certain shops or shopkeeper just because other peoplebuy from that shop. In other words, some buyers try to imitate others and tend to buy from those shops from where other people buy.  Prestige: Status or prestige is one of the significant emotional patronage buying motives. For example, people prefer visiting five- star hotels for dinner; people buy clothes from certain top brands etc.  Habit: Habit is one of the emotional patronage motives. People are often seen buying products from some shops simply out of their habit of buying it from that particular shopkeeper or shop. 5.5. BUYER MOTIVATION Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase decision. In other words, these are the factors that drives a person to buy a product or service. For instance, a hungry person is motivated to buy food; people are motivated to buy new clothes during festivals etc. The concept of ‘buyer motivation’ has originated from a process known as the “Buyer’s Journey.” (Figure 2) Figure 2: Stages of a buyer’s journey There are mainly three stages involved in a buyer’s journey: 1. Awareness: This is the first stage of the buyer’s journey. In this stage, the buyer becomes aware of the problem,need or want. To rephrase it, the buyer tries to identify the problem for instance, the buyer is feeling hungry or thirsty etc. In this, the buyer recognises the need, want or problem. The identified problem, need or want acts as stimulus that motivates the buyer to involve in information search. However, the stimulus can be internal or external. For example, a buyer was feeling hungry and started searching for a restaurant is an internal stimulus on the other hand the buyer searching for a restaurant on some friend’s recommendation is an external stimulus. 2. Information search: At this stage, the buyer is well aware of the problem. The buyer has successfully identified his want or need. Now, the buyer tries to explore the various options that can satisfy his need or solve his problem. The buyer undertakes extensive research and gathers information about each available option. For example, the buyer was feeling hungry and started exploring the nearby restaurants. 3. Decision: This is the final stage where the buyer makes the decision and chooses the best suitable option among all other available options.The buyer is determined that the chosen option will solve his problem or satisfy his need or want to the fullest. Check Your Progress 1. State whether the following statements are: True or False i. A motive is an inner urge that moves a person to some action. ii. Buying motives assists in product planning. iii. Buying motives has no role in promotion- mix. iv. Safety is a type of emotional product buying motive.  v. Rational Patronage buying motives are influenced by emotions. 2. Fill in the blanks: i. Buying motives can be classified as ___________ and _______________ motives. ii. The three stages of a buyer’s journey are ______________, _____________ and __________. iii. Emulation or imitation is a type of _______________ product buying motive. iv. Patronage buying motives are concerned with patronising a specific ___________. v. __________ and ___________ are examples of rational patronage buying motives. vi. Reputation is a type of ________________ buying motive. vii.____________________ stage of buyer’s journey is concerned with identification of the problem. viii. A stimulus can be _________________ or __________________. ix. A buyer’s motivation is driven by a set of ______________________ factors. x. Individuality is a type of ______________ buying motive. 3. What do you mean by Buying motives? What is its importance in personal selling? 4. What do you mean by emotional patronage buying motive? 5.6. LET US SUM UP A consumer is said to have a motive behind his each and every purchase. In other words, A consumer’s purchase depends upon the motives that he wishes to fulfil by buying that product. These motives are stimulated by various customer – specific factors like physiological, societal, and financial factors etc. The factors that stimulate or motivate the customer to buy a particular product are referred as ‘buying motive’. A customer is said to make a purchase not just to own that particular product but to satisfy these forces that are the ‘buying motives.’ To reiterate, ‘buying motives’ are the “internal feelings” of a customer/ buyer and he tries to gratify them to the fullest. The understanding of the ‘Buying motives’ concept is necessary due to the reasons: 1. Improvising salesmanship 2. Assists in product planning 3. Facilitates in pricing decisions 4. Role in promotion- mix 5. Determining channels of distribution 6. Contributes to firm’s goodwill 7. Increases Customer trust and loyalty. Buying motives can be classified into product buying motives and patronage buying motives, which can be further classified into emotional product buying motives and rational product buying motives and emotional patronage buying motives and rational patronage buying motives respectively. Some emotional product buying motives areprestige, emulation, affection, individuality, pleasure, habit. Some rational product buying motives aresafety, economy, price, suitability, versatility, durability, convenience. Some emotional patronage buying motives are appearance, recommendations, habit, emulation, prestige. Some rational patronagebuying motives areconvenience, lower prices, credit facilities, wider choices, reputation of the shop. Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase decision. In other words, these are the factors that drives a person to buy a product or service. There are mainly three stages involved in a buyer’s journey: Awareness, information search, decision. 5.7. KEY WORDS Buying motives: factors that stimulate or motivate the customer to buy a particular product Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase decision. Emotional patronage buying motives: When a buyer decides to patronize or purchase from a certain shop or seller without logically but emotionally considering each and every aspect associated with it. Emotional product buying motives: When a buyer decides to purchase a certain product without carefully or logically, but emotionally considering every aspect associated with the purchase. Patronage buying motives: a customer is said to be motivated to buy from a specific seller or shop. Product buying motives: a customer is said to be motivated to buy a specific product. Rational product buying motives: When a buyer decides to purchase a certain product after carefully or logically considering each and every aspect associated with the purchase Rational patronage buying motives: When a buyer decides to patronize or purchase from a certain shop or seller after carefully or logically considering each and every aspect associated with it. 5.8. ANSWERS TO CHECK YOUR PROGRESS 1. i. True ii. True iii. False iv. False v. False 2. i. Product and patronage ii. Awareness, information search and decision iii. Emotional iv. Shop or shopkeeper v. Lower prices and wider choice vi. Rational vii. Awareness viii. Internal and external ix. Psychological x. Emotional product 5.9. TERMINAL QUESTIONS 1. Define buying motives. 2. Discuss the significance of buying motives in personal selling. 3. Explain the various types of buying motives with examples. 4. Differentiate between rational and patronage buying motives 5. Write short note on the following: a) Buyer motivation b) Emotional patronage buying motives c) Rational product buying motives d) Buyer’s journey e) Emulation