Case for next Session

Group 1 to Present the same

Consumer Motivation

Dr. Naveen Pol

 Consumer motivation

• The motivation process

• Nature of motivation

• Classifying motives

• Motive arousal

• Needs and theories of needs

 Motivation
• Motivation is the driving force within individuals that implies them to
action. This driving force is produced by a state of tension, which exist as
a result of an unfulfilled need. Individuals strive for both consciously and
subconsciously to reduce the distension through behavior that they
anticipate will fulfil their needs and thirst relieve them from the stress they
feel. The specific goals they select and the patterns of action they
undertake to achieve their goals are the result of Individual thinking and
learning.
The Motivation Process
Personality
Perception
Learning
Attitudes

Unfulfilled
Needs, Wants, Tension Goal or Need
Drive Behavior
and Desire Fulfillment

Tension
Reduction
 Motivation Process - CRED
• One of the youngest Indian startups to reach valuation from 0 to $2.2
Billion. (2017 – 2019)

• In 2020 its loss was Rs360 Cr, being 492% high over 2019
⁃ For every rupee they earned, they spent Rs727.

• Customer Base: 30Lakh, 20% of Premium card holders are using CRED

1st Phase (Customer Acquisition) 3rd Phase (Irreversibility)

2nd Phase (Habituation) 4th Phase ( Generate Income)
 Nature of Motivation
• Motivation is an inner feeling which energizes a person

• The emotions or desires of a person prompt consumers to postulate a

particular behavior

• Motivation is goal-oriented

• Motivation is a continuous process

Colonel Munindra Nath Rai,

Alka
 Classifying Motives
• Positive motivation

Gary Gilmore 1976 - 1977 Phil Knight Dan Wieden

Wieden and Kennedy

Tum Chalo to.. Hindustan Chale..

TOI:Lead India Campaign

https://www.businessinsider.in/retail/the-sinister-story-of-nikes-just-do-it-slogan-which-was-inspired-by-the-last-words-of-a-
murderer-before-he-was-executed/articleshow/70619344.cms
 Dogmatism
Social Justice Dogma (SJD)

• Dogmatism is a way of thinking that is stubborn and narrow-minded,

often because of prejudice (prejudgment) and bigotry (bias).

 Classifying Motives
• Negative motivation
• Indian fair skin business is booming (20 Lakh Cr Market)

• Fairness Cream: 5,100 Cr, (60% Women and10% Men)

 Negative motivation (Cont…)

• Listerine was launched in the 1880s as an antiseptic liquid mainly

meant for application on wounds or areas likely to be infected. (Was
very unsuccesful)

• In the 1920s, Listerine decided to change their communication -they

targeted fear psychology of consumers

Sales plunged 600 times

Rs 2600 Cr
the same year

https://www.linkedin.com/pulse/neglect-fear-emotion-your-
brand-would-pay-penalty-later-shah-m-m/
 Classifying Motives

• Monitory motivation

• Non Monitory motivation (coins / points)

• Emotional Motivation
 Paper boat drinks company
• The popular drinks company of India Paper boat needs no introduction. The company which
is in non -- aerated beverages space sells drinks traditional associated with India such as aam
panna, jal jeera and so on. They have innovative with their digital campaigns.

• However, their one campaign called #FloatABoat proved to be a major hit and went viral. 
The firm asked people to make small paper boats as they did in their childhood days and
share it on the social media with the hashtag #FloatABoat and along with following their
social media pages.

• The brand announced that for every share on social media channels, the firm Paper Boat will
donate Rs.20 (per share) for children’s education. It combined nostalgia and a social
purpose. The social driven digital campaign helped the brand to spread its word effortlessly
and gain more consumers. 
Emotional Motives • Increased investments on
advertisements from 4.6 percent
of revenue to 7.8 percent

• Print ads…”Maggi is safe”

• Focused on story telling
• #tag miss you too campaign
• Snapdeal flash sales of welcome
back kit (60k in 5mins)
• 4cr units sold in next 10 days
Indian Context
 Maslow's Hierarchy of Needs – 1954
Book: Motivation and Personality

Self Actualization
Abraham Maslow
American psychologist
Esteem Needs
Needs drives
motivation

Social Needs

Safety Needs

Basic Needs
 Assumptions
Dan Bilzerian
• Needs have Priority
• There is postponement of need if the later is not met
• Interdependent and overlapping
• One need doesn't disappear as the other appears

Limitations
• There cannot be a hierarchy
• Cannot be generalized to all the individuals (some are self contented)
• The greed for money goes on increasing
 Motive Arousal
• Physiological Arousal (Basic Needs / McD /Burger K)

• Emotional Arousal

• Cognitive Arousal (Hello Happiness)

• Environmental Arousal (IPL – T-shirt)

8 Crore Cans every Month

 Herzberg’s Model - 1968
(Two Factor Theory)
• Sample of 203 respondents ( Engineers and accountants) Frederick Herzberg
American Psychologist
• Statements to be answered that made them feel good or bad

• Hygiene Factors
⁃ Not present – Dissatisfied
⁃ Present – Not Motivate

• Motivational Factors
⁃ Not present – Dissatisfied
⁃ Present – Motivate
 Herzberg’s Model
(Two Factor Theory)
• High Hygiene + High Motivation: The ideal situation where employees are highly motivated
and have few complaints.

• High Hygiene + Low Motivation: Employees have few complaints but are not highly
motivated. The job is viewed as a paycheck.

• Low Hygiene + High Motivation: Employees are motivated but have a lot of complaints. A
situation where the job is exciting and challenging but salaries and work conditions are not
up to mark.

• Low Hygiene + Low Motivation: This is the worst situation where employees are not
motivated and have many complaints.
Theory X and Theory Y - 1960

 Douglas McGregor
 Pizza Hut’s - successful digital marketing campaign

• One successful digital media campaign was by Pizza Hut, which created an app that
allowed customers to create their own pizza by dragging their chosen toppings onto a
graphical pizza base.

• The iPhone would then determine which of the chain's thousands of locations the
customer happened to be nearest. The company advertised the new app online, in print,
and on television - even winning a placement in Apple's own iPhone commercial.

• Within two weeks, the Pizza Hut app was downloaded 100,000 times and within three
months iPhone users ordered $1m worth of pizza. The app now has millions of users
across the iPhone, iPad, and Android platforms
 How Dominos Turned around its Market share

• 2000 – Collated reviews (Made it public)

• Till 2010 – Changed its Menu, Ingredients, Made videos of

satisfying customers..

• 2014 – First to launch (Zero Click ordering)

• 2015 – Half of its orders came from online

• 2016 – made delivery using Drone and Self driving cars

 Theory of Z - 1969
William James Reddin
• Trust influences Motivation

⁃ Strong Bond

⁃ Increases Involvement

⁃ No formal Structure

⁃ Co-ordination of human beings

Happy Learning….