IMPORTANCE OF PSYCHOLOGY IN UNDERSTANDING CONSUMER BEHAVIOUR

PRAVIN PALIWAL 1727320

MONOSWITA BARUA 1727256
RESHMA GRACE MATHEWS 1727158
What is psychology ?

 Psychology is the study or science of the mind and behavior.

The word "psychology" comes from the Greek word psyche
meaning "breath, spirit, soul", and the Greek word logia
meaning the study of something.
What is consumer behaviour ?

 Consumer behaviour is the study of how individual

customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and
wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.
What is consumer behaviour ?

 Consumer behaviour is the study of how individual

customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and
wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.
Aristotle and Marketing

‘Ingredients Of Persuasion’ Or The ‘Appeals’

 Ethos – the appeal to ethics
 Pathos – the appeal to emotion
 Logos – the appeal to logic
Heuristics – Mental Shortcuts
 Scarcity – Is There Enough Left for You?

 Attribution Bias

 Affect Heuristic: Emotional Response

 Giving and Receiving

 Try this! Risk free!

Pricing

 Charm Pricing

 Power of Sale

 Reference Pricing
Importance of consumer behavior to marketers
 To understand Buying Behavior of consumers.
 To create and retain customers Through online stores.
 To understand the factors influencing Consumer's buying
Behaviour
 To understand the consumer's decision to dispose a product
or services
 To increase the knowledge of sales person influence
consumer to buy product
 To help marketers to sale of product and create focused
marketing strategies
Consumer Behavior:The psychology of marketing
The study of consumers helps firms and organizations improve
their marketing strategies by understanding issues such as how:

 The psychology of how consumers think, feel, reason, and select

between different alternatives (e.g., brands, products, and
retailers);
 The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
 The behavior of consumers while shopping or making other
marketing decisions;
Cont.....

 Limitations in consumer knowledge or information processing

abilities influence decisions and marketing outcome;
 How consumer motivation and decision strategies differ
between products that differ in their level of importance or
interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively reach the
consumer.
Psychological Factors affecting consumer
behavior

Perception

Psychological Learning
Motivation factors

Attitude and
Beliefs
Definition

Psychological Factors are the factors that talk

about the psychology of an individual that drive
his actions to seek satisfaction.
Motivation and Need

 The level of motivation influences the buying behavior of the consumers.You

buy food when you're hungry, protective gear to feel safe, brand-name clothing
to look stylish, education to enable accomplishment and self-improvement to
reach self-actualization, the pinnacle of psychologist Abraham Maslow's
hierarchical pyramid of needs. The more basic the need, the greater the priority
it assumes in driving consumers to fulfill it.If you can convince consumers that
your product or service meets one of their motivating drives, you can convince
them to buy what you're selling.
Perception
The consumer perception towards a particular
product and the brand also influences his buying
decision. The perception is the process through
which the individual selects, organize and interpret
the information to draw a meaningful conclusion.
The marketers lay emphasis on managing the
perceptual processes, Viz.
 Selective Attention,
 Selective Distortion, and
 Selective Retention.
Activity 1
Learning

The individual’s learning depends on the skills, knowledge and intention.

The skills are developed through practice while the knowledge and
intention are acquired with the experience. There could be a :
 conditional learning : when he is exposed to the similar situation,
again and again, he develops a particular response towards it.
 cognitive learning :While in the cognitive learning the individual
applies all his knowledge, skill, attitudes, values and beliefs to find the
solution of a problem and derive satisfaction out of it.
Attitudes and Beliefs

The individuals have certain beliefs and attitudes towards products

on which their purchase decisions rests. These attitudes and beliefs
are the tendency to respond to a given product in a particular way,
and these make up the brand image that influences the consumer
buying behavior.
Thus, the marketers try to understand the attitudes and beliefs of
the individuals and modify these through several marketing
campaigns.
SOME PSYCHOLOGICAL BEHAVIOURS

• Men Vs Women
Demonstration Effect
THE FREE SEEKERS
VIRTUAL PSYCHOLOGY
Aristotle and Marketing