Unit – 2
Buying Motives
Q1) Explain motivation.
A1)
Motivation
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so as to ensure the fulfilment of a particular human need at a time. Behind every human action there is a motive. Therefore, management must provide motives to people to make them work for the organization.
Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” — Flippo
Motivation is, in fact, pressing the right button to get the desired human behaviour.
Motivation is no doubt an essential ingredient of any Organisation. It is the psychological technique which really executes the plans and policies through the efforts of others.
Following are the outstanding Features of the concept of motivation:
1. Motivation is a personal and internal feeling:
Motivation is a psychological phenomenon which generates within an individual.
2. Motivation is need based:
If there are no needs of an individual, the process of motivation fails. It is a behavioural concept that directs human behaviour towards certain goals.
3. Motivation is a continuous process:
Because human wants are unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative:
A positive motivation promotes incentives to people while a negative motivation threatens the enforcement of disincentives.
5. Motivation is a planned process:
People differ in their approach, to respond to the process of motivation; as no two individuals could be motivated in an exactly similar manner. Accordingly, motivation is a psychological concept and a complex process.
6. Motivation is different from job satisfaction:
The process of motivation is illustrated in the figure given below:
Figure 15.1 shows an employee has a need or urge for promotion to a higher position. If this need is strong, the employee will fix his goal and find alternatives to reach the goal. They might have two alternatives, namely, (i) hard work and (ii) enhancement of qualification (e.g., getting MBA) and hard work.
The Process of Motivation
He might choose the second alternative and succeed in getting promotion (goal achievement) thus, his need for promotion would be satisfied and he would start again for the satisfaction of a new need.
Importance:
Motivation is an integral part of the process of direction.
While directing his subordinate, a manager must create and sustain in them the desire to work for the specified objectives:
1. High Efficiency:
A good motivational system releases the immense untapped reservoirs of physical and mental capabilities. A number of studies have shown that motivation plays a crucial role in determining the level of performance. “Poorly motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better utilisation of resources lowers cost of operations. Motivation is always goal directed. Therefore, higher the level of motivation, greater is the degree of goal accomplishment.
2. Better Image:
A firm that provides opportunities for financial and personal advancement has a better image in the employment market. People prefer to work for an enterprise because of opportunity for development, and sympathetic outlook. This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change:
Effective motivation helps to overcome resistance to change and negative attitude on the part of employees like restriction of output. Satisfied workers take interest in new organizational goals and are more receptive to changes that management wants to introduce in order to improve efficiency of operations.
4. Human Relations:
Effective motivation creates job satisfaction which results in cordial relations between employer and employees. Industrial disputes, labour absenteeism and turnover are reduced with consequent benefits. Motivation helps to solve the central problem of management, i.e., effective use of human resources. Without motivation the workers may not put their best efforts and may seek satisfaction of their needs outside the organisation.
The success of any organisation depends upon the optimum utilisation of resources. The utilisation of physical resources depends upon the ability to work and the willingness to work of the employees. In practice, ability is not the problem but necessary will to work is lacking. Motivation is the main tool for building such a will. It is for this reason that Rensis Likert said, “Motivation is the core of management.” It is the key to management in action.
Extrinsic and Intrinsic Motivation:
Definitions of Intrinsic and Extrinsic Motivation
Intrinsic motivation involves doing something because it's personally rewarding to you. Extrinsic motivation involves doing something because you want to earn a reward or avoid punishment.
Examples of extrinsic motivation could include:
- Reading a book to prepare for a test
- Exercising to lose weight
- Cleaning your home to prepare for visitors coming over
Examples of intrinsic motivation could include:
- Reading a book because you enjoy the storytelling
- Exercising because you want to relieve stress
- Cleaning your home because it helps you feel organized
Q2) Explain Maslow’s theory of need hierarchy.
A2)
Maslows need hierarchy theory
It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order.
In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as shown in figure 17.2.
These are now discussed one by one:
1. Physiological Needs:These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.
2. Safety Needs:After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they are satisfied.
3. Social Needs:Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this socialising and belongingness why individuals prefer to work in groups and especially older people go to work.
4. Esteem Needs:These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.
5. Self-Actualization Needs:This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfilment.The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. In effect, self- actualization is the person’s motivation to transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not without its detractors.
The main criticisms of the theory include the following:
1. The needs may or may not follow a definite hierarchical order. So, to say, there may be overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.
2. The need priority model may not apply at all times in all places.
3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.
Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory’s intuitive logic and easy to understand. One researcher came to the conclusion that theories that are intuitively strong die hard’.
Q3) Explain Dynamic nature of motivation.
A3)
Dynamic nature of motivation
Motivation means the driving force within individuals that impels them to action. It is considered to be dynamic in nature as it constantly changes in reaction to life experiences. Needs and goals are constantly changing because of an individual’s physical condition, social circle, environment and other experiences.
When one goal is achieved, an individual try to attain the new ones. If they are unable to attain, either they keep striving for them or finds out the substitute goal. Psychologists have given certain reasons to support the statement “Needs and goals are constantly changing”—
- An individual’s existing needs are never completely satisfied
- As one need is satisfied, the next higher level need emerges.
- An individual who achieves their goals set new and higher goals for themselves.
- An individual’s existing needs are never completely satisfied
Most of the human needs are never permanently satisfied. There are various examples in our surroundings that show temporary goal achievement does not fully satisfy the need and every individual keeps striving to satisfy the need more fully. Physiological needs are never fully satisfied. Desire to stay connected with friend through social media is onother example in this regard. Even if a person is connected with his friends in Facebook, he also tries other social media platforms.
2. As one need is satisfied, the next higher level need emerges.
Some researchers say that new needs emerge as old needs are satisfied. In motivational theories, researcher have given facts supporting that new higher-order needs emerge as individual fulfills his lower needs (Maslow’s hierarchy of needs). Marketers must be aware of the changing needs. Automobiles were considered as prestige symbol before and therefore, marketer were promoting in the same manner. Now, marketers stress more on safety because consumers are going for long drives with family because of shifting of need satisfaction reasons of people.
3. An individual who achieves their goals set new and higher goals for themselves:
Individuals set their new and higher goals, if they successfully achieve the previous ones. This means they raise their levels of aspiration. The success in the previous goals gives them confidence for reaching higher goals. A person may have set a goal to purchase a bike for transportation purpose, once he purchases the bike he strives to buy a car.
Q4) Explain Buying motives.
A4)
A Motive is a strong feeling, urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying Motives are all the desires, considerations and impulses which induce a buyer to purchase a given product.
According to Prof. 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 or services.”
These motives are generally controlled by economic, social, psychological influences etc
Buying Motives are generally of two types
- Product motives
The impulses, considerations and desires that induces a person to be positively inclined to purchase a particular product is called product motives. The product is inclusive of attributes color, size, attractive design, package, price, etc., which may be the reason behind a person having product motive
- Emotional product motives
Emotional Product Motives are those impulses which persuade the consumer on the basis of his emotion. The buyer does not try to reason out or logically analyse the need for purchase. Evaluation of the pros and cons of the decision or logical reasoning analysis is not found behind such purchase decisions. Here the buyer lets the heart rule over the mind. That is, emotional product motives usually appeal to the buyers’ sense of ego, to display his social status, tendency to imitate others, to satisfy pride, urge to initiate others, and his desire to be unique.
Emotional product buying motives include the following:
- Pride or Prestige: Pride is the most common and strongest emotional buying motive. In fact, many products are sold by the sellers by appealing to the pride prestige of the buyers.
- Emulation or Imitation: Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives. For instance, a housewife may like to have a silk saree for the simple reason that all the neighboring housewives have silk sarees.
- Affection: Affection or love for others is one of the stronger emotional buying motives influencing the purchasing decisions of the buyers. For instance, a husband may buy a costly silk saree for his wife or a father buy a costly watch for his son or daughter out of his affection and love.
- Comfort or desire for comfort: Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In fact, many products are bought comfort. For instance, fans, refrigerators, washing machines, cushion beds, etc. are bought by people because of their desire for comfort.
- Ambition: Ambition refers to the desire to achieve a definite goal. It is because of this buying motive that, sometimes, customers buy certain things. For instance, it is the ambition that makes many people, who do not have the facilities to pursue their college education through regular colleges, pursue their education through correspondence courses.
- Desire for distinctiveness or individuality: Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important emotional buying motives. Sometimes, customers buy certain things, because they want to be in possession of things, which Commercestudyguide.com Commercestudyguide.com are not possessed by others. Purchasing and wearing a particular type of dress by some people is because of their desire for distinctiveness or individuality.
- Desire for recreation or pleasure: Desire for recreation or pleasure is also one of the emotional buying motives. For instance, radios, musical instruments, etc. are bought by people because of their desire for recreation or pleasure.
- Hunger and thirst: Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks, etc. are bought by the people because of this motive.
- Habit: Habit is one of the emotional considerations influencing the purchasing decision of the customers. Many customers buy a particular thing because of habit, (i.e. because they are used to the consumption of the product). For instance, many people purchase cigarettes, liquors, etc. because of habit
b. Rational product motives
Rational product motives involve careful reasoning and logical analysis of the intended purchase. The buyer will work out whether it is worthwhile to purchase the product. The buyer makes rational decision after careful evaluation of the purpose, alternatives available, cost benefit, and such valid reasons.
Rational product buying motives include the following:
- Safety or Security: Desire for safety or security is an important rational buying motive influencing many purchases. For instance, iron safes or safety lockers are bought by the people because they want to safeguard their cash, jewelries etc., against theft.
- Economy: Economy, i.e. saving in operating costs, is one of the important rational buying motives. For instance, Hero Honda bikes are preferred by the people because of the economy or saving in the operating cost, i.e. petrol costs.
- Relatively low price: Relatively low price is one of the rational buying motives. Most of the buyers compare the prices of competing products and buy things, which are relatively cheaper.
- Suitability: Suitability of the products for the needs is one of the rational buying motives. Intelligent buyers consider the suitability of the products before buying them. For instance, a buyer, who has a small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits in well in the small dining room.
- Utility or versatility: Versatility or the utility of a product refers to that quality of the product, which makes it suitable for a variety of uses. Utility of the product is one of the important rational buying motives. People, often, purchase things that have utility, i.e. that can be put to varied uses.
- Durability of the product: Durability of the product is one of the most important rational buying motives. Many products are bought by the people only on the basis of their durability. For instance, buyers of wooden furniture go in for teak or rosewood table, though they are costlier, as they are more durable than ordinary wooden furniture.
- Convenience of the product: The convenience of the product (i.e. the convenience the product offers to the buyers) is one of the important rational product buying motives. Many products are bought by the people because they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought by the people because of the convenience provided by them.
2. Patronage motives
Patronage motives may be defined as consideration or impulses which persuade the buyer to patronage specific shops.
Why do buyers purchase from certain specific firms or shops?
What are the considerations or factors which persuade the buyer to display such store patronage? These questions can be answered by understanding patronage motives. Just like product motives patronage can also be grouped as emotional and rational.
- Emotional patronage motives
Emotional Patronage Motives are those impulses which motivate and persuade a buyer to purchase from specific shops or firms. There may be no logical reasoning behind his decision to purchase from a particular shop and he may simply decide to buy from his ‘most preferred’ or ‘favorite’ shop, merely based on subjective reasons. Here also it may be the urge to gain social recognition or urge to imitate others etc. which may be responsible for the buyer developing patronage to a specific shop.
Emotional patronage buying motives include the following:
- Appearance of the shop: Appearance of the shop is one of the important emotional patronage buying motives. Some people make their purchases from a particular shop because of good or attractive appearance of the shop.
- Display of goods in the shop: Attractive display of goods in the shop also makes the buyers patronize a particular shop.
- Recommendation of others: Recommendation of others also constitutes one of the important emotional patronage buying motives. Some people purchase their requirements from a particular shop because that shop has been recommended to them by others, i.e., by their friends and relatives.
- Prestige: Prestige is one of the emotional patronage buying motives of the buyers. For instance, some people consider it a prestige to take coffee from a five-star hotel.
- Habit: Habit is also one of the important emotional patronage buying motives. Some people make their purchases from a particular shop for the simple reason that they have been habitually making their purchases from that shop.
b. Rational patronage motives
A buyer may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service. He may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service.
Rational patronage buying motives include the following:
- Convenience: Convenient location proximity of a shop is one of the considerations influencing the purchases of many buyers from a particular shop. Similarly, convenient working hours of the shop also influence the purchases of good many buyers. For instance, if a shop works for a longer period of time every day and even on Sundays, it will be very convenient to the buyers.
- Low price charged by the shop: Price charged by the shop also influences the buyers to patronize a particular shop. If the price charged by a shop for a particular product is relatively cheaper, naturally, many people will make their purchases from that shop.
- Credit facilities offered: The credit facilities offered by a store also influence the buying of some people from a particular shop. People who do not have enough money to make cash purchases every time prefer to make their purchases from a shop which offers credit facilities.
- Services offered: The various sales and after-sale services, such as acceptance of orders through phone, home delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their requirements from that shop. Rational buyers are, often, influenced by the various services or facilities offered by the shop.
- Efficiency of salesmen: The efficiency of the salesmen employed by a shop also influences the people in patronizing a particular shop. If the employees are efficient and are capable of helping the buyers in making their purchases, people naturally would flock to such a shop.
- Wide choice: Wide choice of goods offered by a shop is one of the rational considerations making the buyers patronize a particular shop. People generally prefer to make their purchases from a shop, which offers wide choice (i.e. wide varieties of goods).
- Treatment: The treatment by a shop to the customers is one of the rational considerations influencing the buyers to patronize a particular shop. Usually, people would like to purchase their requirements from a shop where they get courteous treatment.
- Reputation of the shop: Reputation of the shop for honest dealings is also one of the rational patronage buying motives. Usually, people would like to make their purchases from a store having reputation for fair dealings.
Q5) Explain importance of motivation.
A5)
Motivation
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so as to ensure the fulfilment of a particular human need at a time. Behind every human action there is a motive. Therefore, management must provide motives to people to make them work for the organization.
Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” — Flippo
Motivation is, in fact, pressing the right button to get the desired human behaviour.
Motivation is no doubt an essential ingredient of any Organisation. It is the psychological technique which really executes the plans and policies through the efforts of others.
Following are the outstanding Features of the concept of motivation:
1. Motivation is a personal and internal feeling:
Motivation is a psychological phenomenon which generates within an individual.
2. Motivation is need based:
If there are no needs of an individual, the process of motivation fails. It is a behavioural concept that directs human behaviour towards certain goals.
3. Motivation is a continuous process:
Because human wants are unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative:
A positive motivation promotes incentives to people while a negative motivation threatens the enforcement of disincentives.
5. Motivation is a planned process:
People differ in their approach, to respond to the process of motivation; as no two individuals could be motivated in an exactly similar manner. Accordingly, motivation is a psychological concept and a complex process.
6. Motivation is different from job satisfaction:
The process of motivation is illustrated in the figure given below:
Figure 15.1 shows an employee has a need or urge for promotion to a higher position. If this need is strong, the employee will fix his goal and find alternatives to reach the goal. They might have two alternatives, namely, (i) hard work and (ii) enhancement of qualification (e.g., getting MBA) and hard work.
The Process of Motivation
He might choose the second alternative and succeed in getting promotion (goal achievement) thus, his need for promotion would be satisfied and he would start again for the satisfaction of a new need.
Importance:
Motivation is an integral part of the process of direction.
While directing his subordinate, a manager must create and sustain in them the desire to work for the specified objectives:
1. High Efficiency:
A good motivational system releases the immense untapped reservoirs of physical and mental capabilities. A number of studies have shown that motivation plays a crucial role in determining the level of performance. “Poorly motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better utilisation of resources lowers cost of operations. Motivation is always goal directed. Therefore, higher the level of motivation, greater is the degree of goal accomplishment.
2. Better Image:
A firm that provides opportunities for financial and personal advancement has a better image in the employment market. People prefer to work for an enterprise because of opportunity for development, and sympathetic outlook. This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change:
Effective motivation helps to overcome resistance to change and negative attitude on the part of employees like restriction of output. Satisfied workers take interest in new organizational goals and are more receptive to changes that management wants to introduce in order to improve efficiency of operations.
4. Human Relations:
Effective motivation creates job satisfaction which results in cordial relations between employer and employees. Industrial disputes, labour absenteeism and turnover are reduced with consequent benefits. Motivation helps to solve the central problem of management, i.e., effective use of human resources. Without motivation the workers may not put their best efforts and may seek satisfaction of their needs outside the organisation.
The success of any organisation depends upon the optimum utilisation of resources. The utilisation of physical resources depends upon the ability to work and the willingness to work of the employees. In practice, ability is not the problem but necessary will to work is lacking. Motivation is the main tool for building such a will. It is for this reason that Rensis Likert said, “Motivation is the core of management.” It is the key to management in action.
Extrinsic and Intrinsic Motivation:
Definitions of Intrinsic and Extrinsic Motivation
Intrinsic motivation involves doing something because it's personally rewarding to you. Extrinsic motivation involves doing something because you want to earn a reward or avoid punishment.
Examples of extrinsic motivation could include:
- Reading a book to prepare for a test
- Exercising to lose weight
- Cleaning your home to prepare for visitors coming over
Examples of intrinsic motivation could include:
- Reading a book because you enjoy the storytelling
- Exercising because you want to relieve stress
- Cleaning your home because it helps you feel organized
Q6) Explain uses of buying motives in personal selling.
A6)
Uses of buying motives in personal selling
Buying motives are the “inner feelings” of the buyers and he tries to satisfy them at any rate to the maximum possible extent. Buying motives being a model of consumer mind, play an important role in the whole scheme of selling and production. A salesman sell those products and service wanted by the buyers and therefore, his firm produces or stocks those goods and services. The significance of buying motive are as follows:
- Helpful in the success of a salesman: if a salesman could evaluate and understand the buying motives of a customer he can become successful. A salesman could provide goods and services as per the need of the buyer. By already knowing the buying motives, a salesman could satisfy the buyer with his offering in a very little time.
- Buying motives are the basis of Product Planning and Development: The manufacturers product decision with regard to size, color, weight, dimension, design, packaging, taste, etc. depends a lot on the consumer psychology which is based on information about the buying motives which is provided by salesman. Thus, once the buying motives are known, the salesman may suggest the firm about the product planning and development according to the consumer likings, tastes and preferences. Therefore, a thorough knowledge of the buying motives makes the product planning and development of an organisation considerably easy.
- Buying motives are determinants of pricing policies. Pricing of products and services is extremely significant because survival, growth and the profitability of an organisation depends on the pricing. It is essential that firms should direct the salespersons to pay more attention and examine the nature of buying motives closely. So that pricing decisions can be made accordingly. In case a large section of the consumers is influenced by rational buying motives, the pricing policies of the firm have to be competitive. On the other hand, a comparatively high pricing strategy can be adopted if a majority of the consumers are guided by emotional buying motives.
- They are planks of distribution policies. Once the salesman informs about the buying motives of the consumers to the seller, the distribution channel of an organisation can be planned effectively. In other words, if the consumers are primarily guided by the service facilities offered by the salespersons, the manufacturer can plan the distribution pattern accordingly so as to make services available at different distribution points.
- They are helpful in designing promotional policies. All promotional efforts usually aim at winning the confidence of the potential buyers in favor of products or services. Once the influencing factors or the buying motives of the consumers are known, the advertisement and sales promotion programs can be directed towards appealing to those specific buying motives.
- Helpful in improving goodwill of the companies: Any salesperson, after knowing the buying motives of customers, tries to fulfill his needs. As a result of which, the goodwill of the company automatically increases.
- Important to win the confidence and loyalty of customers: Buying motives helps a salesperson easily point out the real need of the customer. So, he plans his offering accordingly. The customers get a feeling of being treated carefully and diligently. As a result, customer’s confidence and loyalty increases about the company and salesperson.
Q7) Explain difficulties in determining buying motives.
A7)
Difficulties in determining buying motives
- Ignorance of customers: Many times, customers themselves don’t know about their own buying motives. Therefore, it becomes difficult for salesman to know their motives.
- Resistance by customers: Some customers are not open to talk about their buying behavior. They try to hide their buying motives.
- Diversity in Buying motives: According to a research there are more than 600 buying motives. Generally, there are numerous buying motives of an individual customer. It becomes difficult to categorize, study and collect information about those buying motives.
- Buying motives changes continuously: Buying motives of an individual keeps on changing regularly according to changes in his occupation, income level, social status etc. it is very difficult to keep track of this things.
- Lack of sufficient interaction: due to geographical and economic reasons, it is difficult to maintain continuous interaction with a customer.
- Individual Differences: Everyone is different in one way or the other. Hence, individual buying motives are also different. Therefore, it becomes difficult to identify buying motives of a particular customer group.
Q8) Explain product motives.
A8)
- Product motives
The impulses, considerations and desires that induces a person to be positively inclined to purchase a particular product is called product motives. The product is inclusive of attributes color, size, attractive design, package, price, etc., which may be the reason behind a person having product motive
- Emotional product motives
Emotional Product Motives are those impulses which persuade the consumer on the basis of his emotion. The buyer does not try to reason out or logically analyse the need for purchase. Evaluation of the pros and cons of the decision or logical reasoning analysis is not found behind such purchase decisions. Here the buyer lets the heart rule over the mind. That is, emotional product motives usually appeal to the buyers’ sense of ego, to display his social status, tendency to imitate others, to satisfy pride, urge to initiate others, and his desire to be unique.
Emotional product buying motives include the following:
- Pride or Prestige: Pride is the most common and strongest emotional buying motive. In fact, many products are sold by the sellers by appealing to the pride prestige of the buyers.
- Emulation or Imitation: Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives. For instance, a housewife may like to have a silk saree for the simple reason that all the neighboring housewives have silk sarees.
- Affection: Affection or love for others is one of the stronger emotional buying motives influencing the purchasing decisions of the buyers. For instance, a husband may buy a costly silk saree for his wife or a father buy a costly watch for his son or daughter out of his affection and love.
- Comfort or desire for comfort: Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In fact, many products are bought comfort. For instance, fans, refrigerators, washing machines, cushion beds, etc. are bought by people because of their desire for comfort.
- Ambition: Ambition refers to the desire to achieve a definite goal. It is because of this buying motive that, sometimes, customers buy certain things. For instance, it is the ambition that makes many people, who do not have the facilities to pursue their college education through regular colleges, pursue their education through correspondence courses.
- Desire for distinctiveness or individuality: Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important emotional buying motives. Sometimes, customers buy certain things, because they want to be in possession of things, which Commercestudyguide.com Commercestudyguide.com are not possessed by others. Purchasing and wearing a particular type of dress by some people is because of their desire for distinctiveness or individuality.
- Desire for recreation or pleasure: Desire for recreation or pleasure is also one of the emotional buying motives. For instance, radios, musical instruments, etc. are bought by people because of their desire for recreation or pleasure.
- Hunger and thirst: Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks, etc. are bought by the people because of this motive.
- Habit: Habit is one of the emotional considerations influencing the purchasing decision of the customers. Many customers buy a particular thing because of habit, (i.e. because they are used to the consumption of the product). For instance, many people purchase cigarettes, liquors, etc. because of habit
b. Rational product motives
Rational product motives involve careful reasoning and logical analysis of the intended purchase. The buyer will work out whether it is worthwhile to purchase the product. The buyer makes rational decision after careful evaluation of the purpose, alternatives available, cost benefit, and such valid reasons.
Rational product buying motives include the following:
- Safety or Security: Desire for safety or security is an important rational buying motive influencing many purchases. For instance, iron safes or safety lockers are bought by the people because they want to safeguard their cash, jewelries etc., against theft.
- Economy: Economy, i.e. saving in operating costs, is one of the important rational buying motives. For instance, Hero Honda bikes are preferred by the people because of the economy or saving in the operating cost, i.e. petrol costs.
- Relatively low price: Relatively low price is one of the rational buying motives. Most of the buyers compare the prices of competing products and buy things, which are relatively cheaper.
- Suitability: Suitability of the products for the needs is one of the rational buying motives. Intelligent buyers consider the suitability of the products before buying them. For instance, a buyer, who has a small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits in well in the small dining room.
- Utility or versatility: Versatility or the utility of a product refers to that quality of the product, which makes it suitable for a variety of uses. Utility of the product is one of the important rational buying motives. People, often, purchase things that have utility, i.e. that can be put to varied uses.
- Durability of the product: Durability of the product is one of the most important rational buying motives. Many products are bought by the people only on the basis of their durability. For instance, buyers of wooden furniture go in for teak or rosewood table, though they are costlier, as they are more durable than ordinary wooden furniture.
- Convenience of the product: The convenience of the product (i.e. the convenience the product offers to the buyers) is one of the important rational product buying motives. Many products are bought by the people because they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought by the people because of the convenience provided by them.
Q9) Explain patronage motives?
A9)
Patronage motives may be defined as consideration or impulses which persuade the buyer to patronage specific shops.
Why do buyers purchase from certain specific firms or shops?
What are the considerations or factors which persuade the buyer to display such store patronage? These questions can be answered by understanding patronage motives. Just like product motives patronage can also be grouped as emotional and rational.
- Emotional patronage motives
Emotional Patronage Motives are those impulses which motivate and persuade a buyer to purchase from specific shops or firms. There may be no logical reasoning behind his decision to purchase from a particular shop and he may simply decide to buy from his ‘most preferred’ or ‘favorite’ shop, merely based on subjective reasons. Here also it may be the urge to gain social recognition or urge to imitate others etc. which may be responsible for the buyer developing patronage to a specific shop.
Emotional patronage buying motives include the following:
- Appearance of the shop: Appearance of the shop is one of the important emotional patronage buying motives. Some people make their purchases from a particular shop because of good or attractive appearance of the shop.
- Display of goods in the shop: Attractive display of goods in the shop also makes the buyers patronize a particular shop.
- Recommendation of others: Recommendation of others also constitutes one of the important emotional patronage buying motives. Some people purchase their requirements from a particular shop because that shop has been recommended to them by others, i.e., by their friends and relatives.
- Prestige: Prestige is one of the emotional patronage buying motives of the buyers. For instance, some people consider it a prestige to take coffee from a five-star hotel.
- Habit: Habit is also one of the important emotional patronage buying motives. Some people make their purchases from a particular shop for the simple reason that they have been habitually making their purchases from that shop.
b. Rational patronage motives
A buyer may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service. He may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service.
Rational patronage buying motives include the following:
- Convenience: Convenient location proximity of a shop is one of the considerations influencing the purchases of many buyers from a particular shop. Similarly, convenient working hours of the shop also influence the purchases of good many buyers. For instance, if a shop works for a longer period of time every day and even on Sundays, it will be very convenient to the buyers.
- Low price charged by the shop: Price charged by the shop also influences the buyers to patronize a particular shop. If the price charged by a shop for a particular product is relatively cheaper, naturally, many people will make their purchases from that shop.
- Credit facilities offered: The credit facilities offered by a store also influence the buying of some people from a particular shop. People who do not have enough money to make cash purchases every time prefer to make their purchases from a shop which offers credit facilities.
- Services offered: The various sales and after-sale services, such as acceptance of orders through phone, home delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their requirements from that shop. Rational buyers are, often, influenced by the various services or facilities offered by the shop.
- Efficiency of salesmen: The efficiency of the salesmen employed by a shop also influences the people in patronizing a particular shop. If the employees are efficient and are capable of helping the buyers in making their purchases, people naturally would flock to such a shop.
- Wide choice: Wide choice of goods offered by a shop is one of the rational considerations making the buyers patronize a particular shop. People generally prefer to make their purchases from a shop, which offers wide choice (i.e. wide varieties of goods).
- Treatment: The treatment by a shop to the customers is one of the rational considerations influencing the buyers to patronize a particular shop. Usually, people would like to purchase their requirements from a shop where they get courteous treatment.
- Reputation of the shop: Reputation of the shop for honest dealings is also one of the rational patronage buying motives. Usually, people would like to make their purchases from a store having reputation for fair dealings.
Q10) Explain concept of motivation, Maslow’s theory of need hierarchy.
A10)
Motivation
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so as to ensure the fulfilment of a particular human need at a time. Behind every human action there is a motive. Therefore, management must provide motives to people to make them work for the organization.
Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” — Flippo
Motivation is, in fact, pressing the right button to get the desired human behaviour.
Motivation is no doubt an essential ingredient of any Organisation. It is the psychological technique which really executes the plans and policies through the efforts of others.
Following are the outstanding Features of the concept of motivation:
1. Motivation is a personal and internal feeling:
Motivation is a psychological phenomenon which generates within an individual.
2. Motivation is need based:
If there are no needs of an individual, the process of motivation fails. It is a behavioural concept that directs human behaviour towards certain goals.
3. Motivation is a continuous process:
Because human wants are unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative:
A positive motivation promotes incentives to people while a negative motivation threatens the enforcement of disincentives.
5. Motivation is a planned process:
People differ in their approach, to respond to the process of motivation; as no two individuals could be motivated in an exactly similar manner. Accordingly, motivation is a psychological concept and a complex process.
6. Motivation is different from job satisfaction:
The process of motivation is illustrated in the figure given below:
Figure 15.1 shows an employee has a need or urge for promotion to a higher position. If this need is strong, the employee will fix his goal and find alternatives to reach the goal. They might have two alternatives, namely, (i) hard work and (ii) enhancement of qualification (e.g., getting MBA) and hard work.
The Process of Motivation
He might choose the second alternative and succeed in getting promotion (goal achievement) thus, his need for promotion would be satisfied and he would start again for the satisfaction of a new need.
Importance:
Motivation is an integral part of the process of direction.
While directing his subordinate, a manager must create and sustain in them the desire to work for the specified objectives:
1. High Efficiency:
A good motivational system releases the immense untapped reservoirs of physical and mental capabilities. A number of studies have shown that motivation plays a crucial role in determining the level of performance. “Poorly motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better utilisation of resources lowers cost of operations. Motivation is always goal directed. Therefore, higher the level of motivation, greater is the degree of goal accomplishment.
2. Better Image:
A firm that provides opportunities for financial and personal advancement has a better image in the employment market. People prefer to work for an enterprise because of opportunity for development, and sympathetic outlook. This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change:
Effective motivation helps to overcome resistance to change and negative attitude on the part of employees like restriction of output. Satisfied workers take interest in new organizational goals and are more receptive to changes that management wants to introduce in order to improve efficiency of operations.
4. Human Relations:
Effective motivation creates job satisfaction which results in cordial relations between employer and employees. Industrial disputes, labour absenteeism and turnover are reduced with consequent benefits. Motivation helps to solve the central problem of management, i.e., effective use of human resources. Without motivation the workers may not put their best efforts and may seek satisfaction of their needs outside the organisation.
The success of any organisation depends upon the optimum utilisation of resources. The utilisation of physical resources depends upon the ability to work and the willingness to work of the employees. In practice, ability is not the problem but necessary will to work is lacking. Motivation is the main tool for building such a will. It is for this reason that Rensis Likert said, “Motivation is the core of management.” It is the key to management in action.
Extrinsic and Intrinsic Motivation:
Definitions of Intrinsic and Extrinsic Motivation
Intrinsic motivation involves doing something because it's personally rewarding to you. Extrinsic motivation involves doing something because you want to earn a reward or avoid punishment.
Examples of extrinsic motivation could include:
- Reading a book to prepare for a test
- Exercising to lose weight
- Cleaning your home to prepare for visitors coming over
Examples of intrinsic motivation could include:
- Reading a book because you enjoy the storytelling
- Exercising because you want to relieve stress
- Cleaning your home because it helps you feel organized
Maslows need hierarchy theory
It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order.
In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as shown in figure 17.2.
These are now discussed one by one:
1. Physiological Needs:These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.
2. Safety Needs:After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they are satisfied.
3. Social Needs:Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this socialising and belongingness why individuals prefer to work in groups and especially older people go to work.
4. Esteem Needs:These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.
5. Self-Actualization Needs:This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfilment.The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. In effect, self- actualization is the person’s motivation to transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not without its detractors.
The main criticisms of the theory include the following:
1. The needs may or may not follow a definite hierarchical order. So, to say, there may be overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.
2. The need priority model may not apply at all times in all places.
3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.
Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory’s intuitive logic and easy to understand. One researcher came to the conclusion that theories that are intuitively strong die hard’.
Q11) Explain the types of buying motives.
A11)
A Motive is a strong feeling, urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying Motives are all the desires, considerations and impulses which induce a buyer to purchase a given product.
According to Prof. 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 or services.”
These motives are generally controlled by economic, social, psychological influences etc
Buying Motives are generally of two types
- Product motives
The impulses, considerations and desires that induces a person to be positively inclined to purchase a particular product is called product motives. The product is inclusive of attributes color, size, attractive design, package, price, etc., which may be the reason behind a person having product motive
- Emotional product motives
Emotional Product Motives are those impulses which persuade the consumer on the basis of his emotion. The buyer does not try to reason out or logically analyse the need for purchase. Evaluation of the pros and cons of the decision or logical reasoning analysis is not found behind such purchase decisions. Here the buyer lets the heart rule over the mind. That is, emotional product motives usually appeal to the buyers’ sense of ego, to display his social status, tendency to imitate others, to satisfy pride, urge to initiate others, and his desire to be unique.
Emotional product buying motives include the following:
- Pride or Prestige: Pride is the most common and strongest emotional buying motive. In fact, many products are sold by the sellers by appealing to the pride prestige of the buyers.
- Emulation or Imitation: Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives. For instance, a housewife may like to have a silk saree for the simple reason that all the neighboring housewives have silk sarees.
- Affection: Affection or love for others is one of the stronger emotional buying motives influencing the purchasing decisions of the buyers. For instance, a husband may buy a costly silk saree for his wife or a father buy a costly watch for his son or daughter out of his affection and love.
- Comfort or desire for comfort: Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In fact, many products are bought comfort. For instance, fans, refrigerators, washing machines, cushion beds, etc. are bought by people because of their desire for comfort.
- Ambition: Ambition refers to the desire to achieve a definite goal. It is because of this buying motive that, sometimes, customers buy certain things. For instance, it is the ambition that makes many people, who do not have the facilities to pursue their college education through regular colleges, pursue their education through correspondence courses.
- Desire for distinctiveness or individuality: Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important emotional buying motives. Sometimes, customers buy certain things, because they want to be in possession of things, which Commercestudyguide.com Commercestudyguide.com are not possessed by others. Purchasing and wearing a particular type of dress by some people is because of their desire for distinctiveness or individuality.
- Desire for recreation or pleasure: Desire for recreation or pleasure is also one of the emotional buying motives. For instance, radios, musical instruments, etc. are bought by people because of their desire for recreation or pleasure.
- Hunger and thirst: Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks, etc. are bought by the people because of this motive.
- Habit: Habit is one of the emotional considerations influencing the purchasing decision of the customers. Many customers buy a particular thing because of habit, (i.e. because they are used to the consumption of the product). For instance, many people purchase cigarettes, liquors, etc. because of habit
b. Rational product motives
Rational product motives involve careful reasoning and logical analysis of the intended purchase. The buyer will work out whether it is worthwhile to purchase the product. The buyer makes rational decision after careful evaluation of the purpose, alternatives available, cost benefit, and such valid reasons.
Rational product buying motives include the following:
- Safety or Security: Desire for safety or security is an important rational buying motive influencing many purchases. For instance, iron safes or safety lockers are bought by the people because they want to safeguard their cash, jewelries etc., against theft.
- Economy: Economy, i.e. saving in operating costs, is one of the important rational buying motives. For instance, Hero Honda bikes are preferred by the people because of the economy or saving in the operating cost, i.e. petrol costs.
- Relatively low price: Relatively low price is one of the rational buying motives. Most of the buyers compare the prices of competing products and buy things, which are relatively cheaper.
- Suitability: Suitability of the products for the needs is one of the rational buying motives. Intelligent buyers consider the suitability of the products before buying them. For instance, a buyer, who has a small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits in well in the small dining room.
- Utility or versatility: Versatility or the utility of a product refers to that quality of the product, which makes it suitable for a variety of uses. Utility of the product is one of the important rational buying motives. People, often, purchase things that have utility, i.e. that can be put to varied uses.
- Durability of the product: Durability of the product is one of the most important rational buying motives. Many products are bought by the people only on the basis of their durability. For instance, buyers of wooden furniture go in for teak or rosewood table, though they are costlier, as they are more durable than ordinary wooden furniture.
- Convenience of the product: The convenience of the product (i.e. the convenience the product offers to the buyers) is one of the important rational product buying motives. Many products are bought by the people because they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought by the people because of the convenience provided by them.
2. Patronage motives
Patronage motives may be defined as consideration or impulses which persuade the buyer to patronage specific shops.
Why do buyers purchase from certain specific firms or shops?
What are the considerations or factors which persuade the buyer to display such store patronage? These questions can be answered by understanding patronage motives. Just like product motives patronage can also be grouped as emotional and rational.
- Emotional patronage motives
Emotional Patronage Motives are those impulses which motivate and persuade a buyer to purchase from specific shops or firms. There may be no logical reasoning behind his decision to purchase from a particular shop and he may simply decide to buy from his ‘most preferred’ or ‘favorite’ shop, merely based on subjective reasons. Here also it may be the urge to gain social recognition or urge to imitate others etc. which may be responsible for the buyer developing patronage to a specific shop.
Emotional patronage buying motives include the following:
- Appearance of the shop: Appearance of the shop is one of the important emotional patronage buying motives. Some people make their purchases from a particular shop because of good or attractive appearance of the shop.
- Display of goods in the shop: Attractive display of goods in the shop also makes the buyers patronize a particular shop.
- Recommendation of others: Recommendation of others also constitutes one of the important emotional patronage buying motives. Some people purchase their requirements from a particular shop because that shop has been recommended to them by others, i.e., by their friends and relatives.
- Prestige: Prestige is one of the emotional patronage buying motives of the buyers. For instance, some people consider it a prestige to take coffee from a five-star hotel.
- Habit: Habit is also one of the important emotional patronage buying motives. Some people make their purchases from a particular shop for the simple reason that they have been habitually making their purchases from that shop.
b. Rational patronage motives
A buyer may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service. He may select a shop because it offers a variety of products, or stocks the latest designs and models or prompt delivery or assures good after sales service.
Rational patronage buying motives include the following:
- Convenience: Convenient location proximity of a shop is one of the considerations influencing the purchases of many buyers from a particular shop. Similarly, convenient working hours of the shop also influence the purchases of good many buyers. For instance, if a shop works for a longer period of time every day and even on Sundays, it will be very convenient to the buyers.
- Low price charged by the shop: Price charged by the shop also influences the buyers to patronize a particular shop. If the price charged by a shop for a particular product is relatively cheaper, naturally, many people will make their purchases from that shop.
- Credit facilities offered: The credit facilities offered by a store also influence the buying of some people from a particular shop. People who do not have enough money to make cash purchases every time prefer to make their purchases from a shop which offers credit facilities.
- Services offered: The various sales and after-sale services, such as acceptance of orders through phone, home delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their requirements from that shop. Rational buyers are, often, influenced by the various services or facilities offered by the shop.
- Efficiency of salesmen: The efficiency of the salesmen employed by a shop also influences the people in patronizing a particular shop. If the employees are efficient and are capable of helping the buyers in making their purchases, people naturally would flock to such a shop.
- Wide choice: Wide choice of goods offered by a shop is one of the rational considerations making the buyers patronize a particular shop. People generally prefer to make their purchases from a shop, which offers wide choice (i.e. wide varieties of goods).
- Treatment: The treatment by a shop to the customers is one of the rational considerations influencing the buyers to patronize a particular shop. Usually, people would like to purchase their requirements from a shop where they get courteous treatment.
- Reputation of the shop: Reputation of the shop for honest dealings is also one of the rational patronage buying motives. Usually, people would like to make their purchases from a store having reputation for fair dealings.
