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Consumer Behavior

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Consumer Behavior

Uploaded by

Muqadas Iftikhar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment 1

Submitted by:

Sawera Zulfiqar (21020920-201)


Muhammad Suleman. (21020920-264)
Tahreem Butt (21820920-030)
Hajraa Riasat (21020920-227)
Muqadas Iftikhar (21020920-256)

Course Name:
Consumer Behavior

Submitted to
Ma’am Momina

Date
16-april-2024

Department of management of Science

University of Gujrat
 Take any 5 brands and try to figure it out what is their target
audience and what kind of consumer needs they are addressing.
Explain it in the context of all 4 theories.
 Amazon
 Red bull
 Google
 Ikea
 Spotify

1. Amazon:

Amazon’s Target Audience and


Needs Through Different
TheoriesAmazon’s target audience is
incredibly broad, encompassing a
wide range of demographics.
However, some key characteristics
define their core customer Demographics: Millennials (born
between early 1980s and mid-
1990s), urban dwellers, and value-
conscious shoppers are significant segments. The overall age range stretches
from 18 to 60, with a concentration around 35-49 years old. They come from
various family structures and income levels, but the average Prime member
spends around $1400 annually on Amazon.
Let’s see how Amazon addresses these needs through various psychological
theories:

Maslow’s Hierarchy of Needs:

 Physiological Needs: Amazon offers convenient access to essential


goods, fulfilling the basic need for survival.
 Safety and Security: Secure transactions, reliable delivery, and product
guarantees address safety concerns.
 Love and Belonging: Amazon fosters a sense of community through
product reviews, recommendations, and subscriptions (Prime membership
creates a sense of belonging to a privileged group).
 Esteem Needs: The vast product selection empowers choice and allows
individuals to express themselves through their purchases. Positive
reviews and a reputation for quality build self-esteem.
 Self-Actualization: Access to a global marketplace and a wide variety of
products helps individuals pursue their hobbies and interests.
McClelland’s Theory of Needs:

 Achievement Needs: Amazon gamifies shopping through Prime benefits


(e.g., faster shipping) and loyalty programs, appealing to the desire for
accomplishment.
 Power Needs: The ability to research, compare prices, and choose from a
vast selection empowers customers, giving them a sense of control.
 Affiliation Needs: Customer reviews, recommendations, and social proof
elements help build connections with like-minded individuals.
In Hull’s theory of consumer behavior, which emphasizes the role of
habit formation and reinforcement in shaping consumer choices,
Amazon addresses the following target audience and consumer needs:
McGuire’s Hierarchy of Needs:
 Physical Needs: Similar to Maslow’s hierarchy, Amazon addresses basic
survival needs.
 Social Needs: Product reviews, recommendations, and social proof
elements address the need for social interaction and validation.
 Ego Needs: Prime memberships, access to a vast product selection, and
the ability to find unique items all contribute to fulfilling ego-driven
needs for status and recognition.
Hull’s Drive Reduction Theory:_
Amazon addresses the drive for:

 Acquisition_: Amazon’s vast product range and competitive pricing


satisfy the drive for acquiring goods.
 Exploration_: Amazon’s recommendation algorithms and customer
reviews reduce the drive for exploration and information seeking.
 Social connection_: Amazon’s customer reviews and community
features satisfy the need for social interaction.
Target Audience:
Amazon’s target audience includes individuals who value convenience, variety,
and reliability in their shopping experiences. This encompasses a wide range of
consumers, from busy professionals and parents to tech-savvy shoppers and
bargain hunters.

2. Google :
Google was founded in 1995 by Larry Page and

Sergey Br. The company’s mission is to “organize

The world’s information and make it universally

Accessible and useful. Google’s first product was

The search engine under the same name, which

Uses links to determine the importance of a web


page.

Google has since developed numerous products and services, including Gmail,
Google Maps, Google Drive, Google Workspace, Android, YouTube, Google
Search and more.

The company has received criticism for issues like privacy concerns, tax
avoidance, censorship, search neutrality, antitrust and abuse of its monopoly
position. Google’s target audience is diverse, as their products and services
cater to various consumer needs. I’ll analyze Google’s target audience and
consumer needs through the lenses of Hull’s Drive Reduction Theory,
McClelland’s Acquired Needs Theory, Maslow’s Hierarchy of Needs, and
McGuire’s Psychological Motives Theory.
Hull’s Drive Reduction Theory:According to Hull, behavior is motivated by
physiological needs, which create drives that push individuals to act. Google’s
products address various physiological needs:

 Information search: Google Search reduces the drive for knowledge and
understanding.
 Communication: Gmail, Google Hangouts, and Google Duo satisfy the
need for social interaction.
 Navigation: Google Maps reduces the drive for spatial awareness and
navigation.

McClelland’s Acquired Needs Theory:

McClelland’s theory posits that individuals are motivated by three types of


needs:

 Need for Achievement :Google’s products, such as Google Drive,


Google Docs, and Google Sheets, help individuals achieve their goals and
feel accomplished.
 Need for Affiliation: Google’s social products, like Google+, YouTube,
and Google Groups, cater to the need for social connection and
belonging.
 Need for Power: Google’s analytics tools, like Google Analytics, and
Google Ads, help individuals and businesses make informed decisions,
exert control, and influence their online presence.

Maslow’s Hierarchy of Needs:

Maslow’s theory proposes that individuals have different levels of needs,


ranging from basic physiological needs to self-actualization:

 Physiological needs :Google’s products, like Google Search and Google


Maps, address basic needs like information and navigation.
 Safety needs: Google’s security features, like two-factor authentication
and encryption, provide a sense of security and protection.
 Love and belonging needs: Google’s social products, like Google+,
YouTube, and Google Groups, cater to social connection and community
needs.
 Esteem needs: Google’s products, like Google Drive and Google Docs,
help individuals achieve recognition and respect through their work.
 Self-actualization needs: Google’s innovative products and services, like
Google Cloud and Google AI, enable individuals and businesses to
pursue their passions and creative goals.

McGuire’s Psychological Motives Theory:

McGuire’s theory identifies four psychological motives:

 Acquisition: Google’s products, like Google Shopping and Google


Express, cater to the need for acquiring goods and services.
 Protection: Google’s security features and tools, like Google Safe
Browsing, address the need for protection and risk avoidance.
 Social approval : Google’s social products, like Google+, YouTube, and
Google Groups, help individuals seek social approval and validation.
 Personal growth: Google’s innovative products and services, like
Google Cloud and Google AI, enable individuals and businesses to
pursue personal growth and development.

In conclusion, Google’s target audience is diverse, and their products and


services address various consumer needs across different theories. By
understanding these needs, Google has created a wide range of products and
services that cater to different aspects of human motivation and behavior.

3. Red Bull’s :
Red Bull’s target audience and the consumer

needs they address according to Maslow’s

theory and McClelland’s theory are as follows:

Target Audience:

Red Bull’s target audience primarily consists of young adults, particularly those
involved in active lifestyles, sports, and extreme activities. This includes
athletes, gamers, students, professionals, and adrenaline junkies who seek
energy, stimulation, and performance enhancement.

Consumer Needs Addressed:

Maslow’s Hierarchy of Needs:

 Physiological Needs: Red Bull addresses physiological needs by


providing an energy-boosting beverage that helps consumers stay alert,
focused, and energized, particularly during periods of physical exertion,
long hours, or intense activities.
 Safety Needs: Red Bull indirectly addresses safety needs by positioning
its product as a source of energy and vitality that can help individuals
overcome physical and mental fatigue, thereby enhancing their sense of
well-being and security.
 Belongingness Needs: Red Bull fosters a sense of belongingness by
aligning its brand with various subcultures, events, and activities that
appeal to its target audience, such as extreme sports competitions, music
festivals, and gaming tournaments. By sponsoring and participating in
these events, Red Bull creates a community where enthusiasts can come
together, share experiences, and connect over shared passions.
 Esteem Needs: Red Bull addresses esteem needs by associating its brand
with qualities such as vitality, performance, and adventure, which
resonate with consumers who aspire to lead active, exciting lifestyles. By
consuming Red Bull, individuals may feel a sense of empowerment,
achievement, and confidence, enhancing their self-esteem and self-image.
 Self-Actualization Needs: Red Bull indirectly contributes to self-
actualization by enabling individuals to push their limits, pursue their
passions, and achieve peak performance in their chosen endeavors.
Whether it’s breaking records, mastering skills, or conquering challenges,
Red Bull provides the energy and motivatio non needed to pursue
personal goals and aspirations to the fullest.

McClelland’s Theory:

 Need for Achievement: Red Bull appeals to individuals with a high need
for achievement by positioning its brand as a catalyst for success and
accomplishment. By consuming Red Bull, individuals may feel more
energized, focused, and driven to pursue their goals, whether it’s winning
a race, completing a project, or achieving personal milestones.
 Need for Affiliation: Red Bull fosters a sense of affiliation by sponsoring
events and activities that bring people together and create opportunities
for social interaction and camaraderie. Whether it’s attending a Red Bull-
sponsored concert or participating in a Red Bull-sponsored sports event,
consumers can feel a sense of belonging and connection to the brand and
its community.
 Need for Power: Red Bull indirectly satisfies the need for power by
providing individuals with the energy and confidence needed to assert
themselves and take charge of their lives. Whether it’s leading a team,
taking on a leadership role, or tackling a daunting challenge, Red Bull can
help individuals feel more energized, focused, and capable of exerting
influence and control over their circumstances.
McGuire’s Psychological Motives:

 Cognitive Motives: Red Bull satisfies cognitive motives by providing


consumers with a mental boost and enhanced focus, helping them stay
alert and concentrated during activities such as sports, gaming, or
studying.
 Affective Motives: Red Bull fulfills affective motives by creating
feelings of excitement, exhilaration, and vitality through its brand
imagery, marketing campaigns, and association with adrenaline-fueled
events and activities.
 Personal Integrative Motives: Red Bull addresses personal integrative
motives by aligning its brand with the values, interests, and aspirations of
its target audience, such as adventure, achievement, and self-expression.
By promoting a lifestyle of action and intensity, Red Bull resonates with
individuals seeking to assert their identity and pursue their passions.

Hull’s Habit Formation:

 Red Bull leverages Hull’s theory of habit formation by establishing itself


as a habitual choice for energy and stimulation among its target audience.
Through consistent consumption experiences, convenient packaging, and
availability in various settings, Red Bull reinforces the habit of reaching
for its product whenever individuals need a boost of energy or a pick-me-
up during their activities.
 By creating positive reinforcement through its association with high-
performance athletes, extreme sports events, and other exciting activities,
Red Bull strengthens the habit loop, making it more likely for consumers
to choose Red Bull as their preferred energy drink in the future.
In summary, Red Bull effectively targets the psychological motives outlined
by McGuire’s theory while leveraging Hull’s theory of habit formation to
establish itself as the go-to choice for energy and stimulation among its
target audience of young adults engaged in active lifestyles and adrenaline-
fueled pursuits.

4. IKEA

IKEA is a Swedish furniture retail giant.

It has stores all over the world and reaches

millions of customers every month.

IKEA became an international retailer

when the first store in Norway opened in 1963.

Ikea’s target audience includes individuals and families who are looking for
affordable and stylish furniture and home décor. They aim to address various
consumer needs based on theories like Hull’s, McClelland’s, Maslow’s, and
McGuire’s.

 In terms of Hull’s theory:

Ikea addresses the need for satisfaction and reduction of drives by offering a
wide range of functional and aesthetically pleasing products at affordable
prices. This can fulfill consumers’ desire for comfort and a sense of
accomplishment.

 In terms of McClelland’s theory:

McClelland’s theory focuses on three primary needs: achievement, affiliation,


and power. Ikea caters to the achievement need by providing consumers with
the opportunity to create their ideal living spaces and express their personal
style. The affiliation need is addressed by offering family-friendly and
community-oriented products that foster a sense of togetherness. As for the
power need, Ikea empowers consumers to make choices and take control of
their home environment.

 In terms of Maslow’s theory:

Maslow’s hierarchy of needs suggests that individuals have different levels of


needs, ranging from physiological to self-actualization. Ikea addresses the
physiological needs by providing affordable and functional furniture that meets
basic comfort requirements. They also cater to the safety needs by offering
durable and reliable products. Additionally, Ikea addresses the social needs by
providing products that promote a sense of belonging and social interaction.
Lastly, they address the self-esteem and self-actualization needs by offering
products that allow individuals to express their creativity and personal style.

 In term of McGuire’s theory:

McGuire’s theory emphasizes the cognitive and affective processes that


influence consumer behavior. Ikea appeals to consumers through advertising
and marketing strategies that evoke positive emotions and create a sense of
excitement and inspiration. They also provide a unique shopping experience
with their store layouts and displays, which can influence consumers’ cognitive
processes and decision-making.

Overall, Ikea’s target audience consists of individuals and families seeking


affordable and stylish home furnishings, and they address various consumer
needs related to satisfaction, achievement, affiliation, power, physiological
comfort, safety, social belonging, self-esteem, self-actualization, and cognitive
and affective processes.
5. Spotify :

Spotify is a music streaming service that offers


access to its vast online library of

music and podcasts . The service is

available in many countries around

the globe, but there are still some

major gaps in Spotify’s coverage, such as Russia Here are some key features of
Spotify .

 It’s a legal way to stream music online and listen to podcasts.


 It licenses tracks from major and minor record labels for its extensive
music library.
 Listening to music on Spotify is free, but users see ads in the free version.
 Users can create Spotify playlists and share them.
 Users can pay for Spotify Premium to remove ads, access higher quality
playback and download songs for offline listening.

Spotify’s target audience is diverse, but I’ll analyze their target audience and
consumer needs through the lenses of Hull’s Drive Reduction Theory,
McClelland’s Acquired Needs Theory, Maslow’s Hierarchy of Needs, and
McGuire’s Psychological Motives Theory.

Hull’s Drive Reduction Theory :


Spotify addresses the drive for:

 Auditory stimulation: Music and podcasts satisfy the need for auditory
stimulation and entertainment.
 Exploration: Discovery features like Discover Weekly, Release Radar,
and Daily Mix playlists reduce the drive for novelty and exploration.
 Social connection: Spotify’s social features, like shared playlists and
friend activity, satisfy the need for social interaction.

McClelland’s Acquired Needs Theory:

Spotify caters to the following needs:

 Need for Achievement: Users can create and share playlists, and track
their listening habits, giving them a sense of accomplishment.
 Need for Affiliation :Spotify’s social features and shared playlists cater
to the need for social connection and belonging.
 Need for Power :Users have control over their music experience, with
features like playlist creation and discovery, giving them a sense of
control.

Maslow’s Hierarchy of Needs:

Spotify addresses needs across the hierarchy:

 Physiological needs: Music and podcasts provide an auditory experience,


satisfying basic needs.
 Safety needs_: Spotify’s reliable service and user-friendly interface
provide a sense of security.
 Love and belonging needs_: Social features and shared playlists cater to
social connection and community needs.
 Esteem needs_: Users can showcase their musical tastes and preferences,
boosting self-esteem.
 Self-actualization needs_: Spotify’s discovery features and diverse
content enable users to explore and express themselves.

McGuire’s Psychological Motives Theory:

Spotify addresses the following motives:

 Acquisition_: Users can collect and curate music, satisfying the need for
acquisition.
 Protection_: Spotify’s reliable service and user-friendly interface provide
a sense of protection and risk avoidance.
 Social approval_: Social features and shared playlists help users seek
social approval and validation.
 Personal growth_: Spotify’s discovery features and diverse content
enable users to explore and develop their musical tastes.

In conclusion, Spotify’s target audience is diverse, and their service addresses


various consumer needs across different theories. By understanding these needs,
Spotify has created a platform that caters to different aspects of human
motivation and behavior, making it a leading music streaming service.

Link’s of Brand’s :

 https://youtu.be/kGli_grpDVE?si=O5A-pfxSKCa4KoAr
 https://youtu.be/bWd6VkgDrKg?si=cSDnI2MR7AoHrfR8
 https://youtu.be/WLyGLk2hDw4?si=XTeNQtH9UQNP3wcw
 https://youtu.be/HcqP5e49qEc?si=HPWtaT0xpHMAoxBC
 https://youtu.be/z2ZuYWnUhVw?si=GOQXat8PtdHQoqqI

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