...QUESTION 1 CONSUMER PSYCHOLOGY The field of Consumer Psychology grew as consumer society grew. An increased interest in understanding consumers was driven by: * Increased production and adoption of consumer goods (ranging from Coca-Cola to household appliances and automobiles) in the 1920’s and 1930’s. * The advent of advertising via radio (1920) and television (1941). After World War II, governments around the world sought to strengthen their economies in part through increased consumer spending, further bolstering interest in this area. The Division of Consumer Psychology of the APA was formed in 1960 to represent psychologists whose interests lie in consumer-related topics. The name was changed in 1988 to The Society for Consumer Psychology. Consumer psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how people buy and relate to goods and services. One formal definition of the field describes it as "the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society"." According to the Society for Consumer Psychology, division 23 of the American Psychological Association, consumer psychology "employs theoretical psychological approaches to understanding consumers." This field is often considered a sub-specialty of industrial-organizational...
Words: 314 - Pages: 2
...Consumer Psychology Analyzed The choices made in everyday life are personal preferences. Whether it is which brand of cereal to eat in the morning, which mode of transportation to use, or which style of clothes to wear. These are examples of personal choices that have several other alternatives to pick from. The focus of consumer psychology is on understanding and explaining the psychological factors that influence these choices, purchases, and usage behaviors [ (Bettman, 1986) ]. Businesses need to have an understanding of consumer psychology so they can bring to market a product the consumer wants. Consumer psychology can include information, such as what motivates people to choose one product or service over another, what factors are most important in choosing a product, and how customers determine the value of a service. Psychological concepts are important in creating a successful marketing communication message. Some of the areas for a business to focus on to understand consumer buying decisions are motivation, perception, learning, and attitude. Motivation is the inward drive we have to get what we need [ (Raymond, 2012) ]. The basic needs are food, water, and sleep as determined by Abraham Maslow in the mid 1900’s. Once these needs are satisfied a person will turn to higher level needs. These needs may arise at different times in a persons’ life. For instance, as a teenager social needs may have played a part in buying certain clothes or electronic items. Later the...
Words: 858 - Pages: 4
...Consumer Psychology and Marketing Communications Article Analysis Colleen B. Hughes PSY/322 February 9, 2015 Donald Crabtree Consumer Psychology and Marketing Communications Article Analysis Consumers are the key to marketing communications for your products and services. Using psychology to understand the consumer behaviors, attitudes, and purchasing patterns. Getting your message to the consumer is done by communication. However, what is consumer psychology and how do they affect the market communication. Consumer psychology has a direct relationship with marketing communication message and will compare two articles to discover the relationship. Before you understand the relationship you need to define consumer psychology. The consumer is a person or thing that consumes and economically the definition is a person or organizations that use a commodity or service. (Dictionary, 2015). Psychology defined as the behavioral and cognitive characteristics of a specific individual, group, activity, or circumstance. (Dictionary, 2015). Another definition is the scientific study of mental processes and behavior. (Dictionary, 2015). Consumer Psychology is both of the definitions put together. The definition is the study of how consumers relate to the products they buy and services they use. Marketers use psychology to understand the consumer needs, motivation, attitude, and actions. (Mihart, 2012). Professional Marketer increase with better measurements and deeper understanding...
Words: 792 - Pages: 4
...Consumer Psychology And Marketing Analysis Emily Anne Levin PSY/322 December 9, 2013 Don Crabtree Consumer Psychology and Marketing Analysis Consumer psychology plays a very important role in defining what types of marketing are needed in order to create brand loyalty from the consumer. Throughout the years, from data that are collected using consumer psychology what has been found is that there is a much broader scope needed in consumer-behavior research in order to create a fine tuned marketing concept to not only have the consumer purchase an item, but to ultimately create brand loyalty, so the marketing does not need to be constantly changed. Where innovation is important in all areas of business need for constant innovation in marketing can be lessened through fine tuning the research of consumer psychology. In the article, “The Seven Sins of Psychology” by Michael Tuan Pham (2013), Pham expresses the need to create a larger scope in the research of consumer psychology. The article “The Consumer Psychology of Brands” (2012), author, Bernd Schmitt follows what Pham states by explaining how to create brand loyalty through marketing based upon the research of the behavior of the consumer. According to "Brittanica.com" (n.d.), consumer psychology is the “branch of social psychology concerned with the market behavior of consumers. Consumer psychologists examine the preferences, customs, and habits of various consumer groups; their research on consumer attitudes is...
Words: 923 - Pages: 4
...CONSUMER PSYCHOLOGY & MARKETING COMMUNICATIONS PSY322 May 13, 2013 Charles Dudek This purpose of this paper is to analyze two articles in the context of consumer psychology and marketing communications. The fist part will define consumer psychology looking at why consumer behave the way they. The paper will also examine how research has made it easier to predict human behavior exploring its benefits. The aspect of using what has been learned about consumer psychology will be looked at, more specifically with young consumers. Most people learned early in school that “ology” mean the study of when speaking of a science such as biology or physiology these are for the most part exact and most variables are controlled. However, when we look at human psychology it is a different animal altogether, literally. Human behavior can be extremely unpredictable. Defining consumer psychology can be difficult to do in just a phrase or sentence. There are many factors that go into why consumers behave the way they do. Motivation is one of the most important factors. Consumer psychology is most commonly defined, as the study of how and why consumers buy products and services. One could argue that a better definition would be Consumer psychology is the study of human motivation. What drives us, what are the known and unknown needs at the core of our psyche? Whether it be what we buy, what relationships we seek or what self-actualizing dreams we seek to fulfill...
Words: 1040 - Pages: 5
...Consumer Psychology & Marketing Communications PSY/322 December 1st , 2014 Kimberly DeSimone Consumer Psychology & Marketing Communications Are you unhappy with the way your body looks? Do you have unwanted stubborn fat that just will not go away? Want to feel and look sexy in that bikini again? Want to have those defined six pack abs and muscles? Then what are you waiting for? Change your body starting today! Lose twenty pounds and tone up in just two months with our: healthy meals, workout routine and our new all natural diet pills that just makes the fat melt off. Whether you are in shape and just trying to get more cut or have been struggling with weight issues your whole life, give us a call. It will only take twenty minutes out of your day to see which one of our Body Changing Plans is right for you. Advertisements and infomercials like these are utilizing consumer psychology and marketing communications strategies. Consumer psychology is the study (attempt) to understand the decision-making process of consumers, how emotions affect the consumer’s purchasing behavior. Marketing communications is the strategy used by a company to reach their target market (group of consumers) through various types of communications (television ads, magazines). Research Consumer Psychology is the study of consumer behavior, marketers attempt to understand the decision-making process of products that a consumer buys and how emotions play a part of that purchase...
Words: 1307 - Pages: 6
...Consumer psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how people buy and relate to goods and services. One formal definition of the field describes it as "the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society". (Hawkins, Motherbaugh, & Best, 2007). Consumer psychology is used for the development of successful marketing strategies. Marketing strategies are produced through many different types communication pathways. More specifically, “Marketing communication helps to develop brand awareness, which means that consumers translate product information into perceptions about the product’s attributes and its position within the larger market.” (Greene, 2013). A great example of how consumer psychology was implemented was in 1996 when the “Tickle me Elmo” doll came out. When Tyco Toys first initially cam out with the doll, most of the market did not purchase the item. Many seemingly speculate that it was because around the same time, many other forms of the same toy were coming out such as cabbage patch kids, easy bake ovens, and more. Tyco took all the Elmo dolls off the shelves, reported that more were coming in the Christmas months, the demand sky-rocked as well as the price. Seemingly, the market interpreted the “more...
Words: 780 - Pages: 4
...Consumer Psychology Examined PSY/322 Sept 15, 2014 Consumer psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how people buy and relate to goods and services. One formal definition of the field describes it as "the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society". There are several topics Consumer Psychologists study: How consumers choose businesses, products and services. The thought processes and emotions behind consumer decisions. How environmental variables such as friends, family, media and culture influence buying decisions. What motivates people to choose one product over another? How personal factors and individual difference affect people's buying choices. What marketers can do to effectively reach out to their target customers. In April 1985, Coca-Cola announced its decision to change the almost century-old recipe -- and the flavor -- of the company's flagship brand product; the old Coke would be taken off the shelves and replaced by the new Coke. Within six weeks, however, widespread consumer protest was making the news, and by July of that year, the company reversed itself and kept the old Coke in production and sales. Within five years, sales of the...
Words: 1076 - Pages: 5
...Consumer Psychology and Marketing Communications PSY 322 Consumer Psychology and Marketing Communications Consumer psychology has the purpose of “acquiring knowledge for the sake of understanding and predicting important aspects of real life behavior” (Katona, 1967). The business community has been trying for years to find what makes people buy what they do. They also want to understand future predicted behavior as well. This is a study of the dynamics that affect the behavior of consumers. According to Walsh in her review of Foxall and Goldsmith, consumer research is very important when compared to the decision making role of managers. The authors also write about consumer concepts like market segmentation and product positioning strategies. With the first example, market segmentation, deals with the needs and wants of consumers. As learned in class, this is a strategy that can help companies know more about consumer preferences but also more about their individual behaviors and choices. Walsh does not really get in to detail of what product positioning strategies are but she did mention they are “part of the product life cycle” (Walsh, 1997). Walsh does go on to mention that the book does have a significant psychology social science section that deals with attitudes, behaviors, and motivations. Walsh reveals that this book is a good source of information for aspiring and on the job marketing managers. Not everyone is completely on board the consumer psychology...
Words: 728 - Pages: 3
...1. Introduction Electronic commerce has become an attractive market to the world, and the emerging business opportunities are now becoming a major factor in world economics. Although, investment through e-commerce channels returns high profits, but like many IT systems, it could lead business organizations to a risky situation or failing to deliver expected returns. The main cause of this is the inconsistency between the system design and the desired requirements or for the misunderstanding between IT professionals and business experts. Therefore, to design e-commerce system, a communication pattern is needed either between system developers and business owner, or between customers and the online business system. Moreover, e-commerce system should be adapted with the whole business environment such as business norms and behavior, customer practice, business rules and government policy. However, Semiotic that is ‘the science of signs’ has brought many approaches to facilitate the process of understand signs’ meaning. The approach of organizational semiotic defied the organization as a group of social norms and emphasizes on the people and their role and responsibility in order to merge them when analyzing and designing information system (Stamper et al, 2004). For e-commerce systems, there is a necessity of clear meaning for each symbol, icon and image because almost all transactions done through the web system without human agent involvement. Therefore, semiotic...
Words: 2949 - Pages: 12
...Consumer Psychology and Marketing Communications Article Analysis PSY/322 November 19, 2012 Consumer Psychology and Marketing Communications Article Analysis This paper will define what is consumer psychology is and show its relationship with marketing communications. An overview will be discussed about the psychological concepts of consumer psychology and its importance of developing an effective marketing communication message. It is crucial for effective marketers to know how to use their knowledge of consumer psychology for the development of effective marketing promotions of its products and services. Perner (2010), consumer psychology is “the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society” (para. 2). Recognizing the importance of consumer behavior is vital for the development of any successful marketing message for the public. For example, marketers understand that is best to show a television advertisement of snack products during the period in which the viewer is more prone to be hungry such as late afternoon (Perner, 2010), There are various ways in which data and information about consumers are attained. Marketers and businesses often utilizes mail questionnaires, phone surveys, online surveys, focus groups, scanner data, and personal interviews to learn more about consumers...
Words: 758 - Pages: 4
...perspective, e-commerce is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web. 2. From an interface perspective, e-commerce involves various information and transaction exchanges: business-to-business, business-to-consumer, consumer-to-consumer. 3. From a business perspective, e-commerce includes activities that directly support commerce electronically by means of networked connections. 4. From an online perspective, e-commerce is an electronic environment that makes it possible to buy and sell products, services, and information on the Internet. 5. From a structural perspective, e-commerce involves various media: data, text, web pages, Internet telephony, and internet desktop video. 6. As a market, e-commerce is a worldwide network. A local store can open a Web storefront and find the world at its doorstep-customers, suppliers, competitors, and payment services. E-business: Connecting critical business systems and constituencies directly via the Internet, Extranets, and Intranets. It goes beyond a web site on the Internet to affect all aspects of business, from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the Web. E-business enables organizations to accomplish the following goals: 1. Reach new markets. 2. Create new products and services. 3. Build customer...
Words: 631 - Pages: 3
...Human Resource Roles and Responsibilities Human resource roles and responsibilities are changing because business trends are changing. Technology, e-business, ethics, and globalization are changing the way companies do business and therefore, the human resource management need to make changes to keep up with the new trends. Globalization and Technology During the past century companies have made changes to the way human resource department’s run. Many companies created jobs overseas, which slowed down the hiring in the United States (Noe, R., Hollenbeck, J., Gerhart, B. & Wright, P., 2004). Companies are finding to survive they must compete in international markets and fend off their competitors. Companies are also outsourcing and offshoring the workload in order to compete and pay employees lower pay. Technology is constantly advancing forward. In today’s business world technology is changing rapidly and human resource department find they need to move with it. These days few companies use paper for job applications now businesses rely on the internet which combines data from several sources into a single site. Shared service centers consolidate different human resource functions into a single location (Noe, et al, 2004). Diversity and E-Business Diversity in the U.S. labor force is growing in racial, ethnic, and gender terms. Many U.S. companies have already committed themselves to ensuring they recognize the diversity of their internal labor force and use it to gain...
Words: 591 - Pages: 3
...H-E-B grocery store https://www.heb.com/ fits the category of a non – news organization that utilizes social media feeds alongside traditional media feeds. Mixed media is the best way to describe H-E-B online communication (i.e. identified as a mixture of owned media, paid media shared/social media and earned media). The organization has its own website (owned media pg. 175) that allows the company to have control over information disseminated out to both its internal and external publics (pg. 118). When it comes to paid media (pg. 176), H-E-B paid to have control over 60 seconds of air time during the 2018 super bowl. Its commercial in this case demonstrated corporate advertising (pg. 176) as it promoted its annual contest Quest for Texas...
Words: 313 - Pages: 2
...Joshua Tollison Phase 4 Individual Project MGM310-1204B-01 Bari Courts 23 December 2012 If I were to start an e-business the main thing I would focus on would be functionality of the site and ease to make customers feel comfortable and confident about shopping with my storefront. By this I mean designing a site that gives customers several options for the products they are shopping for; along with that my customers would have access to multiple pictures of every product available, and a detailed description of the item they are interested in. My customers would also be able to compare similar items by their available options and provide a side by side analysis. The main thing for my e-business though would be the superior customer service that is provided to my clients by means of email, live chat, and a customer service hotline if you would prefer to talk to a representative. One of the final details that would make my site superior to others would be a hassle free return policy that even included return shipping for those who need to return their products for any reason. To be able to make this dream come true there are several other factors that I will be discussing throughout this paper as I present my business plan for establishing my storefront. I. E-Commerce Infrastructure Just as brick and mortar companies have an infrastructure to help them succeed in business, so do e-businesses. By having the correct infrastructure in place allows a company to run...
Words: 2620 - Pages: 11
