Freuds Theory of Personality and Sherif & Havlands Social Judgement Theory - Case Study Example

Name 31 Ramsgate Street BRISBANE QLD 4000 (07) 3511-3225 Fax (07) 3511-3224 21st October 2010 Ms. Stephanie Anandappa Victoria Park Road Kelvin Grove 3089 Dear Ms. Anandappa, As per your request, the following is a report that analyses the decision making process for the purchase of a car. The report contains information sourced from relevant literature on consumer behaviour and consumer psychology. The report uses the Freud’s theory of personality and Sherif & Havland’s Social Judgement Theory in discussing the whole process. The first section of the report gives an overview of the two theories. The second part discuses the application of these theories and how the theories apply to the particular process of choosing the preferred car. The report also makes recommendations on the models and their application. I will be more than pleased to make further clarifications or respond to any queries on this report if need be, so feel free to contact me. Prepared for: Stephanie Anandappa Prepared by: Executive summary This report gives an overview of a personal application of two major consumer behaviour theories namely Freud’s theory of personality and Sherif & Havland’s Social Judgment theory and how they apply in the consumer decision making process. The choice of car is highly influenced by the functionality of car a as a means of transport. This implies standard engine performance, space and standard car features such as power electronic power system, stereo and quality interior. The other major concern for the choice was safety concerns. This is specifically indicated by presence of airbags and an anti-lock or anti-skid braking system. My safety concerns for survival correspond with the Freud personality theory while my choice of other features and financials concerns correspond to the provisions of the Sherif & Havland’s Social Judgment theory. By understanding how consumers are likely to think in the decision making process, marketers strive to meet their perceived needs and match products and marketing strategies to consumers’ way of thinking. The paper concludes that the process of choosing the 2009 Hyundai i30 SX among many others in the market was guided primarily by my safety concerns and plus other features and the financial limit. The report makes a few recommendations to the automakers one of them being that the maker should increase the colour range for this particular brand as many consumers are rigid when it comes to colour choice in their vehicles. Contents Executive summary 2 1. Introduction 4 1.1 Purpose 4 1.2 Background 4 1.3 Scope & Limitations 5 2.0 Literature review 5 2.1 Freudian theory 5 2.2 The Sherif & Havland’s Social Judgement Theory 7 3.0 Application of theory 8 4.0 Relating the buyer behaviour theories to the marketing strategy 10 5.0 Conclusion and Recommendations 12 References 1. Introduction 1.1 Purpose The Purpose of this report is to analyze a high involvement purchase decision where I was the main decision maker and consumer of the product and applying Freud’s theory of personality and Sherif & Havland’s Social Judgement Theory to the purchase decision. For the purpose of this report the purchase decision, which I will be talking about, is my car. My choice of car was basically guided by the price, consumer rating, country of origin, design, fuel efficiency, safety, practicability and emissions. Other considerations that guided my choice of car were colour, stereo system, spare parts availability and model popularity 1.2 Background Given the above considerations, I settled for the 2009 Hyundai i30 SX which I purchased in March 2010. I purchased this car for two reasons; the first being that my previous car, 2007 Ford Focus was written off in a hailstorm late last year, the second reason for my purchase was that I needed another form of transport to get around. Before making the purchase, I had shortlisted the models and makes that were closest to my preferences. I perused through vehicle consumer ratings and reviews in magazines and websites for further verification of the features. I was above all impressed by this particular model due to its features which matched best with my preferences. 1.3 Scope & Limitations This report is limited to time and space and hence covers only two consumer behaviour theories among many. The report covers only one instance of purchasing a high involvement product. The behaviour of this one single consumer is assumed to be representative of other consumers. The consumption decision is analysed only through the Freudian Personality theory and the Social Adjustment theory. 2.0 Literature review 2.1 Freudian theory The Freudian Personality theory argues that a person’s unconscious desires and needs such as biological and sexual needs are the basic factors of human motivation towards various aspects such as consumption. The complete human personality is formed from the dynamic interaction of these physiological needs (e.g. hunger, sex, anger etc) with the social environment and pressures such as morals, social expectations etc (Solomon, Russell- Bennett & Previte 2009; Walle 2002). This theory is applied by consumer behaviourists to argue that a person’s consumption behaviour is a reflection and extension of his inner personality. An individual will thus express his inner desires through purchases and use of certain products/brands. According to the Freudian Personality theory, the mind is structured into three parts. The first part is the ID that contains sexual (libido) and aggressive instincts and is located in the unconscious mind. This means that, a consumer responds to these needs unknowingly. This part is attributed to the pleasure concept in the decision making process. The second part is the ego which is in the conscious mind and is the rational one. This helps the consumer to make decisions based on reality and practicability. The third part is the superego which lies between the conscious and unconscious mind. It comprises of the conscience and ego ideal which in most cases are contradictory (Solomon, Russell- Bennett & Previte 2009). The ID part of the unconscious mind is considered to be the most influential and is a warehouse for primitive behaviour present at birth. It encompasses basic physiological drives such as survival/self-preservation, hunger and sex. The ID seeks immediate gratification of these biological instincts in achieving maximum pleasure and avoiding pain. Freud argued that at birth, children possess only this one personality structure which seeks to attain pleasure regardless of the social and environmental limitations. This is the self centred attitude observable in babies who want to reach out at everything and have it no matter whether it doesn’t belong to them or is out of reach (Lantos 2010). This instinct does not disappear with age but is subdued by the ego. Adults may seek respond to these impulses unconsciously in dreams. The ego is synonymous with reality where children develop and realize the limitation posed by the physical and social environment in responding to their impulses. The actions of the ego are however based on the ID impulses only that it takes into consideration the realities of the situation. The ego is very important in controlling the ID impulses since most of them are socially unacceptable. Therefore, the ego keeps the ID impulses in the unconscious mind. On the other hand, the ego moves freely from the conscious, to the unconscious and the precocious mind. The ego, through understanding, also reduces the tension emanating from unmet ID impulses by allowing some unacceptable impulses occasionally (:Solomon, Russell- Bennett & Previte 2009; Lantos 2010). The third part is called the superego. This is part of a person’s personality structure that responds to the society values and standards. It is responsible for creating discipline or conscience. A good example is the restriction of the ID impulse to steal food when one is hungry and has no money to buy some. The ego on the other hand restricts this behaviour by considering the consequences of being caught. It seeks to reduce this tension by devising means to steal the food and not being caught. However, the superego part comes into play by arguing that stealing per se is wrong and violates morals and ethics of the society or the family. The superego uses guilt to withhold such impulses. In some extreme cases where the superego fails to develop as a result of poor upbringing, individuals have little restraint to steal or do other vices. Alternatively, a very strong superego burdens the ego with near impossible standards of perfection (Lantos 2010). 2.2 The Sherif & Havland’s Social Judgement Theory This theory was developed to explain the balance between the audience’s position and that of the communicator regarding a certain issue. The theory basically states that the degree of personal involvement in an issue determines how the target will evaluate an attempt at persuasion. This theory is best applied in explaining a consumer’s attitude towards a marketing and advertising message. The theory suggests three levels of consumer categories or latitudes of attitudes or perceptions towards a message of persuasion; preference/acceptance, rejection and non-commitment (Solomon, Russell- Bennett & Previte 2009). These levels indicate that a consumer’s stand or attitude towards a brand can only have three variations i.e. accept it, reject it or note it for further consideration. However, Jager (2007) says that there are ideal aspects such as colour in the preference attitude that some consumers are never willing to change especially automobile consumers. These latitudes are often expressed as a range between accepting the message rejecting it or being indifferent implying the consumer will consider it. The breadth of these latitudes is affected by how strongly the person feels about the issue and the extent to which it engages his ego. This range decreases with the increase in the level of importance. This implies that a persuasive message has little impact unless the message falls within the latitude of acceptance or non commitment. Bordens and Horowitz (2001) compare this to a situation where there are two strong political parties in a country. They say that persons committed to either party reject other candidates from the other party adamantly and are not open to persuasion. Between the two extremes, there are other independent who can be easily persuaded through the right message. 3.0 Application of theory Train and Winston (2007) attribute the triumph of the Japanese automakers have surpassed over the American automakers in the American market to the former understanding of consumer behaviour. They say that while brands such as Ford relied on the formerly effective muscle and performance concept for their automobiles, Japanese car makers such as Toyota focussed on efficiency especially after the 1970’s oil embargo which created a fuel crisis and resulted in price hikes. Price sensitive consumers quickly responded to the lower fuel consumption levels of Japanese brands. For instance, Ford relied on engine power as the main selling point of a majority of their trucks and minivans while Toyota emphasised on the practicability of their vehicles and low maintenance cost (Pappu, Quester & Cooksey 2007). The process of arriving at my automobile choice, Hyundai i30 SX model fits well with the two consumer behaviour theories discussed above. First and foremost, I have been bombarded with information over the reliance and fuel efficiency of the Japanese vehicles (Train and Winston 2007). The Hyundai as a brand was a very convenient choice as it meets my needs at different levels. In my own mind, I knew I wanted a fuel efficient small car with high safety levels on two levels; first, environmental safety and secondly my physical safety as a driver. Again, as a student, I new I wanted a car that would not strain me financially in maintenance and fuel costs. This specific model had all these specifications; 2.0 litre petrol engine, Traction Control System, Anti-skid Braking System (ABS) with Electronic Brakeforce Distribution (EBD), Euro IV emission standards compliant, 4.7 litres / 100 km (manual). double front airbags, USB and iPod compatible audio, tilt and telescopic steering wheel, alarm, keyless remote entry etc. The driver’s seat is also adjustable in height which would allow my younger sister to use the car comfortably (Latest car reviews 2010). As a student, this car is a very huge investment for me which has taken up several month savings with little assistance from my parents. As such, I am deeply involved with this car in the knowledge that losing it would mean another year without a car. Again, having spent all my savings on making the purchase, I want a low cost maintenance and running car but have high safety specifications. According to the social adjustment theory, my breadth of latitude is very narrow as I have high involvement with the product. I cannot responsive to persuasions such as with offers and financing arrangements. 4.0 Relating the buyer behaviour theories to the marketing strategy Train and Winston (2007) attribute the triumph of the Japanese automakers have surpassed over the American automakers in the American market to the former understanding of consumer behaviour. They say that while brands such as Ford relied on the formerly effective muscle and performance concept for their automobiles, Japanese car makers such as Hyundai and Toyota focussed on efficiency especially after the 1970’s oil embargo which created a fuel crisis and resulted in price hikes. Price sensitive consumers quickly responded to the lower fuel consumption levels of Japanese brands. For instance, Ford relied on engine power as the main selling point of a majority of their trucks and minivans while Toyota emphasised on the practicability of their vehicles and low maintenance cost. The process of arriving at my automobile choice, Hyundai i30 SX model fits well with the two consumer behaviour theories discussed above. First and foremost, I have been bombarded with information over the reliance and fuel efficiency of the Japanese vehicles (Train and Winston 2007). The Hyundai as a brand was a very convenient choice as it meets my needs at different levels. In my own mind, I knew I wanted a fuel efficient small car with high safety levels on two levels; first, environmental safety and secondly my physical safety as a driver. Again, as a student, I new I wanted a car that would not strain me financially in maintenance and fuel costs. This specific model had all these specifications; 2.0 litre petrol engine, Traction Control System, Anti-skid Braking System (ABS) with Electronic Brakeforce Distribution (EBD), Euro IV emission standards compliant, 4.7 litres / 100 km (manual). double front airbags, USB and iPod compatible audio, tilt and telescopic steering wheel, alarm, keyless remote entry etc. The driver’s seat is also adjustable in height which would allow my younger sister to use the car comfortably (Latest car reviews 2010). As a student, this car is a very huge investment for me which has taken up several month savings with little assistance from my parents. As such, I am deeply involved with this car in the knowledge that losing it would mean another year without a car. Again, having spent all my savings on making the purchase, I want a low cost maintenance and running car but have high safety specifications. According to the social adjustment theory, my breadth of latitude is very narrow as I have high involvement with the product. I cannot responsive to persuasions such as with offers and financing arrangements. Marketers have often relied on consumer behaviour theory to develop marketing and promotion strategies. Garcia (n.d) and Gilbert and Lee, (n.d.) specifically note that automobile makers are guided by consumer preferences right form the design, development of a product, the branding and even the advertising process. Train and Winston (2007) observe that different marketers have performed differently in terms of understanding their target market behaviour and applying the tactics in the marketing process. Nevertheless, the success of these strategies is also influenced by the social environment same was the impulse demands of the ID in the Freudian theory. As such, different brands perform differently despite the brands having very little differentiation aspects. Rationality tends to argue that consumers will go for brands from which they derive the greatest utility. As such, marketers have to understand the different levels of utility that potential consumers are able to develop. Tyagi and Kumar (2004) indicate the possible implication of Freudian theory on marketers. They give several examples on how the theory can be applied. For instance they note that women are the best preferred targets for vegetable shortening rather than targets for animal fat because they associate animal fat with killing animals which does not fit well with their feminine nature. They also indicate that persons with small physique would go for mean looking cars to create an impression of toughness and size which they lack. 5.0 Conclusion and Recommendations The 2009 Hyundai i30 SX has been voted on several occasions as the car of the year in a number of websites. The car has also received positive reviews indicating that it falls in majority of many consumers preference latitude. To capture the customers who fall under the non-commitment latitude, Hyundai has introduced a line of i30 which assists the brand to dominate the market further. The Freud’s personality theory indicates that my choice of car with many high level safety features is based on the survival instinct of the ID while the ego has tamed with this awareness of financial limitation. This is because the car has not been rated the safest though I am obsessed with safety. According to the Sherif & Havland’s Social Judgement Theory, I cannot be persuaded on the safety lines of other vehicles. However, other safer vehicles would fall far off my financial ability and hence they would only fall into my non-commitment latitude or would be considered further if my finances could only allow. To assist the car makers to fall in more preference latitudes for other potential consumers, Hyundai should consider the following: 1. Increase the colour variation of the car as it is indicated that buyers are very rigid when it comes to choosing colours. 2. The 2009 Hyundai i30 SX should be marketed on higher environmental concept as a car with low level emissions to capture the imagination of environmental conscious consumers (Lane & Potter 2006). 3. The 2009 Hyundai i30 SX should consider arranging for more and better financing programmes as the car suits best students who have little financial resources same way as Toyota Vitz. References Burger, J. (2007). Personality. London: Thomas Learning. Bordens, K & Horowitz, I. (2001). Social psychology. 2nd ed. London: Routlegde Garcia, R. (n.d.) Modeling Vehicle Choice Behaviour Using Agent-Based Approach. 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