For those who have not heard of about the Expectancy Theory of Motivation, developed by Victor Vroom  in 1964, we use the Expectancy Theory of Motivation to help us understand how individuals make decisions regarding various behavioral alternatives. The model deals with the direction aspect of motivation, that is, once behavior are energized, what behavioral alternatives are individuals likely to pursue.

The expectancy theory says that individuals have different sets of goals and can be motivated if they believe that:

• There is a positive correlation between efforts and performance
• Favorable performance will result in a desirable reward
• The reward will satisfy an important need
• The desire to satisfy the need is strong enough to make the effort worthwhile

Vroom’s Expectancy Theory is based upon the following three beliefs:

1. Valence (Valence refers to the emotional orientations people hold with respect to outcomes [rewards]. The depth of the want of an employee for extrinsic [money, promotion, time-off, benefits] or intrinsic [satisfaction] rewards). Management must discover what employees’ value.
2. Expectancy (Employees have different expectations and levels of confidence about what they are capable of doing). Management must discover what resources, training, or supervision employees need.
3. Instrumentality (The perception of employees whether they will actually get what they desire even if it has been promised by a manager). Management must ensure that promises of rewards are fulfilled and that employees are aware of that.

At first, the theory would seem more applicable to a workplace scenario where how motivated the employee is depends on whether or not they desire the reward for doing a good job and whether or not they believe that the more effort they put forward will lead to that reward or desired outcome.  But, after thinking about it for a while, the very same theory and underlying principles, could equally apply to any situation, not just the workplace, where someone does something because they expect a certain outcome. The situation could be the driving forces or motivation that affects a consumers’ intention to consider, visit, or buy something online or basically, in simple terms, online consumer purchase behavior.  How do we get the potential new customer to complete purchase cycle once offer is shown to them? How do we get our current customer to come back and buy more?

If you look at the Expectancy Theory of Motivation and apply it to online consumer behavior, the decision of a consumer to purchase really depends on their level of motivation. With no disrespect to Victor Vroom, the three beliefs of the Expectancy Theory of Motivation could be redefined as follows:

1. Valence (Valence refers to the emotional orientations consumers hold with respect to outcomes [rewards, savings, benefit]. The depth of the want of a customer for extrinsic [money savings, rewards, benefits] or intrinsic [satisfaction] rewards). Business owners must discover what consumers value.  For every consumer, this will be different.
2. Expectancy (Consumers have different expectations and levels of confidence about what they are capable of doing).
3. Instrumentality (The perception of consumer whether they will actually get what they desire ). Business owners and management must make consumers comfortable with their respective brand and ensure the value behind the product.

In conclusion, it is very feasible to take a look at online consumer behavior by applying Vroom’s Expectancy Theory of Motivation to get a better understanding of what is behind the consumer’s mind that ultimately helps them decide to make a purchase.   What is your opinion?

Ankush Agarwal
MarketNet, Inc.

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