POM: Session 8 Psychological Processes

At every stage of this decision making model, there is one predominated psychological process that goes along. At need recognition stage, motivation is main psychological force. At information search stage, it the perception that makes consumers considers few brands and not all of them. Evaluation of alternatives is highly influenced by attitudes and beliefs. Purchase decision dominated by decision rules and post purchase results in learning.

Motivation

A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Buying motives are classified as rational motives i.e. utilitarian object approach and emotional motives i.e. psychological approach. 

Some of the important contributions were made by Abraham Maslow and Sigmund Freud in the field of human psychology and very much applicable to consumer markets. Maslow in Theory of Need Hierarchy suggested that individuals have different level of needs, namely – physiological, social, safety, esteem and self-actualization need. Once lower level needs are satisfied, consumers look for higher level of needs.

Sigmund Freud suggested that most needs are hidden and they will only come out after probing the sub-conscious minds.

POM: Session 9 Consumer Buying

Buying Decision Making Process

Consumer buying process is highly affected by two factors: the psychology behind purchase and the monetary value of product. The consumer decision making process is the combination of all experiences that an individual comes across in learning, choosing, using and even disposal of a product. The buyer decision process consists of five stages: 

1. Need recognition
2. Information search 
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behaviour

Stage I: Need Recognition

The buyer recognizes a problem or need. The need can be triggered by either internal stimuli or external stimuli. Internal stimuli are needs are individual’s own needs. They may arouse due to some problem to which individuals seek solution, for example a hungry person will look for some food. Need may also arise as a result of some new events in life, like first day of school/college, parties, weddings, festivals. External stimuli are the marketer’s efforts to generate needs for product and service through advertisements, offers and discounts.

Marketing Application to VALS Model in Indian Context

Strategic Business Insights (SBI)'s VALS framework is one the best models to describe the psychographic consumer segmentation. In our daily life, knowingly or unknowingly, we come across several advertisements that are inspired from these life-styles. Study of buyer behaviour reveals that more the buyer's lifestyle relates to the appeal, more favourable is the attitude towards the brands. 

Lets try to understand the Indian detergent market with the help of VALS framework:

Survivors are the consumers with low resources hence their lifestyle is not governed by any of the basic motivations. They are very low on resources and thus only ends are important. Marketers must focus here on price sensitivity first and then on trust and loyalty. They would buy a product only if they realise the need and importance of the product:

In this Tide advert, the target market is made to think on the value of the product. Also the demand is created when it was made affordable by offering Re. 1/- sachets.