Motivation and Society

I've been meditating on the topic of psychological motivation that I mentioned in an earlier post ... which has taken me in a pessimistic direction, but one that seems to have some merit.

Form the previous post, the kind of product that serves a consumer's functional needs is often quite simpler and cheaper than the one he chooses to purchase: considering the need for warmth, clothing adequate to the task is quite cheap, but most consumers purchase far more expensive clothing - such that the proportion of the cost that represents a solution to functional needs is a small percentage in comparison to the proportion that represents psychological needs.

But what, then, is the basis of these "psychological" needs?   It's entirely hazy, and economists seem to shrug them off without much consideration and move along.

What has occurred to me is the psychological needs of which we speak are often social needs - particularly the need for esteem.  I do not discount that there are likely other psychological needs, but esteem seems to be the strongest in terms of consumer motivation.

Specifically, if it were not for the social context, a customer would likely choose the cheapest product that satisfies his functional needs.   This is admittedly pure theory, but it's borne out in considering that the mark-up on products that are conspicuously consumed is far greater than that on those that are anonymously consumed - which seems to support the assertion that people pay a much higher price for products that others will see them using.

The only reason I can conceive this to be so is because people value the impression they make upon others who observe them.  Given the example of clothing, consider the amount of money spent on the clothing that is worn in public, compared to the shabby but comfortable clothes in which people slouch about in their homes, out of public view.  This clearly derives from the need for esteem - the need to be equal to or better than others in a society.   That is, in a social setting, a consumer doesn't want to be seen consuming a brand that is merely sufficient to his needs, but one which is equal to or better than that which others use.

A brand that is equal to that used by others is leveraged when there is a desire to fit in, and a brand that is better than that used by others is leveraged for purposes of asserting superiority or dominance.   Perhaps this seems very childish, the kind of thing that is done among cliques in junior high school, but it is also pervasive in adult life.  Consider that the businessman wears a suit to fit in with other businessmen, to show he belongs, or he may wear a more expensive suit to suggest to others that he is better than them.

It also stands to mention that there are a variety of bases on which an individual may consider his possessions to be "equal to or better than" than of his peers in a society.  The most obvious differentiator is money: the products are better because they cost more.   But this is not the only differentiator, nor likely the most prevalent in present-day society, given the nature of the things people say about what they own.  In fact, it's considered déclassé to brag about the price of things - so people find other things to brag about.

• Mine is better because of its capabilities and features.  Therefore I have more power than you.
• Mine is better because it is more durable.  Therefore I have more foresight than you.
• Mine is better because I got a better deal.  Therefore I am smarter than you.
• Mine is better because it is more energy efficient and is made of recycled materials.  Therefore I am more socially responsible than you.
• Mine is better because the company that makes it donates more money to charity.  Therefore I am more altruistic than you.
• Mine is better because more people of a desirable group of people use it. Therefore I am more popular than you.

All of this one-upmanship and posing is highly distasteful - but I have the sense that it is not all that wrong.   Scan any site that has user reviews of products and services, and see why they are happy with the products they have purchased, and what you will find is shallow narcissism and posturing - what motivates people to say a product is good is the feeling they have about being better than others because they own it.

That takes rather a distasteful view of human motivation, and one of which we as a society should likely feel deeply ashamed.   But I don't think that it can be denied that the need to be better than others is likely a significant driving factor in consumer behavior.