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CUSTOMER INSIGHT > Risks, Needs & Motivations > Flashcards

Risks, Needs & Motivations Flashcards

1
Q

What is perceived risk?

A
  • Solomon et al, 2013

The belief that a product/service has potentially negative consequences from either using or not using it

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2
Q

Is perceived risk dependant on an individuals characteristic or is the perceived risk uniform for the majority of the population?

A

Perceived risk is highly dependant on an individual

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3
Q

What are some factors that may influence an individuals perceived risk?

A
  • Income, life stage, familiarity with the product category etc.
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4
Q

How many main types of risks are there?

A

6

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5
Q

What are the main types of risk?

A
  • Monetary
  • Functional
  • Physical
  • Social
  • Psychological
  • Time
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6
Q

Explain the main points of the Monetary risk:

A
  • To do with finances/costs
  • About the customers perception; is this worth the money/cost?
  • Generally with high-cost items
  • Generally individuals with low-income are affected
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7
Q

Explain the main points for Functional risk:

A
  • To do with the product working as it should, with all of the products benefits. The risk would be buying a product that does not live up to expectation
  • The greater the complexity of the product the greater the functional risk
  • Effects the more practical consumers
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8
Q

Explain the main points for Physical risk:

A
  • To do with the product or service preventing harm
  • Driven by a threat to personal injury or damage to personal property
  • Can be to do with electrics/mechanics e.g. cars, houses
  • Most people effected: Elderly, frail or ill individuals
  • Also includes people who we buy for, e.g. Babies
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9
Q

Explain the main points for Social risk:

A
  • To do with what you perceive people will view you like/as if you’re seen with a certain product or service
  • What product are associated with
  • Highly connected to self esteem & confidence
  • Reference groups are an important factor for this risk
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10
Q

Explain the main points for Psychological risk:

A
  • To do with the ego, and how that product will make you feel
  • What product are associated with
  • Individuals with little self respect are effected most by this risk
  • Malteasers good example: They are unhealthy but promoted in a good way
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11
Q

Explain the main points for Time risk:

A
  • To do with if the buying the product will save or waste time
  • What the consequences of the time that the product/services consumers - and if it is worth it or not
  • All about wanting to reduce time, e.g. contactless/Apple pay
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12
Q

What is a risk ‘tradeoff’?

A

When a customer is willing to take a higher risk in one area to decrease another, e.g. taking a higher financial risk to lower the functionality risk

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13
Q

What can risk/perceived risk be defined as?

A

The belief that a product/service has potentially negative consequences from either using or not using it Solomon, et al 2013

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14
Q

How many ways can consumers handle risk?

A

7

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15
Q

What are the 7 ways that consumers can handle risk?

A
  • Seek information
  • Seek reassurance
  • Stay brand loyal
  • Select via brand image
  • Rely on store Image
  • Buy most expensive
  • Internet search
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16
Q

Why might consumers stay brand loyal to reduce risk?

A

Consumers understand what to expect from the product/service

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17
Q

Why might consumers select product/services by brand image to reduce risk?

A

This could be referrals by friends/family, but also because of commercial reasons such as advertising

18
Q

How many ways can retailers reduce the risk the customers may feel?

A

6

19
Q

What are the ways in which retailers can reduce risk?

A
  • Extending problem solving
  • Experiential offering
  • Offering money back guarantees
  • Offering performance warrantees
  • Easily returnable goods
  • Online activity
20
Q

How can retailers reduce customers perceived risk by extending problem solving?

A

This could be through making the decision making process easier:

  • Provide quality information
  • Recruit good sales staff
21
Q

How can retailers reduce customers perceived risk by experiential offering?

A

This is letting consumers try before they buy

22
Q

How can retailers reduce customers perceived risk through online activities?

A

This could be things such as online tracking of parcels

23
Q

What is the model of motivational process?

A

Unfulfilled needs, wants desires lead to a state of tension with drives a behaviour that fulfils the need - this reduces the tension

24
Q

What is motivational strength?

A

It is the strength that an individual has to reach a specific goal

25
Q

What theories are there to explain motivational behaviours?

A
  • Drive Theory (Atkinson, 1957)

- Expectancy Theory (Eccles, 1983)

26
Q

What is a ‘drive’?

A

Covington, 2000

- Internal state or need/condition that compels an individual towards an action

27
Q

Explain Drive Theory:

A

Atkinson, 1957

- A biological need that produces an unpleasant state of arousal which then creates a goal orientated behaviour

28
Q

Explain Expectancy Theory:

A

Eccles, 1983
- When an individual behaves in a certain way to achieve a certain way
suggests that behaviour is largely governed by expectations of achieving desirable outcomes
- Suggests behaviour governed by expectations of receiving desirable outcomes

29
Q

How many explanations of buying behaviour are there?

A

4

30
Q

Explain the buying behaviour explanations:

A
  • Need for achievement
  • Need for affiliation (group connection)
  • Need for power
  • Need for uniqueness
31
Q

How many needs are there?

A

4

32
Q

Outline and explain the main needs we have:

A
  • Biogenic: Innate needs, for survival
  • Psychogentic: Cultural specific need, (status, power)
  • Utilitarian: Objective and tangible
  • Hedonic: Subjective & experiential
33
Q

How many levels are there to Maslows hierarchy of needs?

A

5

34
Q

What are the levels of Maslows hierarchy of needs?

A
  • Physiological (Food, water)
  • Safety & Security (protection, stability)
  • Social (Affection, friendship)
  • Ego (Self-esteem, status)
  • Self-Actualisation (Self-fulfillment)
35
Q

What is motivation?

A

The process that leads people to behave the way they do

36
Q

What are the 2 ways in which results can be driven?

A

Generic

Product specific

37
Q

What is a generic way of being driven?

A

This would be wanting to fulfil a general desire

38
Q

How many types of motivational conflicts are there?

A

3

39
Q

What are the 3 types of motivational conflicts?

A
  • Approach-approach
  • Approach-avoidance
  • Avoidance-avoidance
40
Q

What is the approach-approach conflict to motivation?

A
  • There are 2 desirable alternatives
  • Cognitive dissonance (conflicting views/attitudes)
  • Maslows hierarchy of needs
41
Q

What is the approach-avoidance conflict to motivation?

A
  • There are both positive and negative aspects of the desired product
  • The guilt of desire occurs
42
Q

What is the avoidance-avoidance conflict to motivation?

A
  • Being faced with 2 undesirable outcomes

CUSTOMER INSIGHT (19 decks)

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