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Introduction
Think about this, Why do you buy one brand of soda over another? You will most likely have so many reasons to give. There are several factors that motivate consumer behaviour and this Is what Consumer Psychology studies.
Definition and Origin of Consumer Psychology
Consumer psychology is the study of why people buy things. Psychologists try to find the underlying cognitive processes that explain consumers' choices and how they respond to the influence of marketing, as well as the external stimuli that convince people to purchase certain items. Marketing executives are very keen to know the findings from studies in consumer psychology, since these findings can help them figure out how to sell a product.
Consumer behaviour studies how individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses that precede or follow these activities. Characteristics of individual consumers e.g. demographics, personality lifestyles and behavioural variables such as usage rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to understand people's wants and consumption are all investigated in formal studies of consumer behaviour. The study of consumer behaviour also investigates the influences, on the consumer, from groups such as family, friends, sports, reference groups, and society in general.
The study of consumer behaviour is concerned with all aspects of purchasing behaviour - from pre-purchase activities through to post-purchase consumption, evaluation and disposal activities. It is also concerned with all persons involved, either directly or indirectly, in purchasing decisions and consumption activities including brand-influencers and opinion leaders. Research has shown that consumer behaviour is difficult to predict, even for experts in the field. However, new research methods such as ethnography and consumer neuroscience are shedding new light on how consumers make decisions.
Origin of Consumer Behaviour
Consumer behaviour emerged in the 1940s and 50s as a distinct sub-discipline in the marketing area. Consumer behaviour is an inter-disciplinary social science that blends
psychology, sociology, social anthropology,ethnography, marketing and economics, especially behavioural economics. It examines how emotions, attitudes and preferences affect buying behaviour. In the 1940s and 50s, marketing was dominated by the so-called classical schools of thought which were highly descriptive and relied heavily on case study approaches with only occasional use of interview methods. At the end of the 1950s, two important reports criticised marketing for its lack of methodological rigor, especially the failure to adopt mathematically- oriented behavioural science research methods. The stage was set for marketing to become more inter-disciplinary by adopting a consumer-behaviourist perspective. From the 1950s, marketing began to shift is reliance away from economics and towards other disciplines, notably the behavioural sciences, including sociology, anthropology and clinical psychology. This resulted in a new emphasis on the customer as a unit of analysis. As a result, new substantive knowledge was added to the marketing discipline - including such ideas as opinion leadership, reference groups and brand loyalty. Market segmentation, especially demographic segmentation based on socioeconomic status (SES) index and household life-cycle, also became fashionable. With the addition of consumer behaviour, the marketing discipline exhibited increasing scientific sophistication with respect to theory development and testing procedures. In its early years, consumer behaviour was heavily influenced by motivation research, which had increased the understanding of customers, and had been used extensively by consultants in the advertising industry and also within the discipline of psychology in the 1920s, '30s and '40s. By the 1950s, marketing began to adopt techniques used by motivation researchers including depth interviews, projective techniques, thematic apperception tests and a range of qualitative and quantitative research methods. More recently, scholars have added a new set of tools including: ethnography, photo-elicitation techniques and phenomenological interviewing. Today, consumer behaviour (or CB as it is affectionately known) is regarded as an important sub-discipline within marketing and is included as a unit of study in almost all undergraduate marketing programs.
Theories of Consumer Behavior
Let's go over some of the major perspectives in consumer psychology that help us understand consumer behavior. The first perspective used in consumer psychology is Behaviourism.
intention to create or receive a particular outcome. In this analysis, consumers are rational actors who choose to act in their best interests.
According to the theory, specificity is critical in the decision-making process. A consumer only takes a specific action when there is an equally specific result expected. From the time the consumer decides to act to the time the action is completed, the consumer retains the ability to change his or her mind and decide on a different course of action. Marketers can learn several lessons from the Theory of Reasoned Action. First, when marketing a product to consumers, marketers must associate a purchase with a positive result, and that result must be specific. Axe Body Spray used this concept very effectively by linking its product to desirability with women. Second, the theory highlights the importance of moving consumers through the sales pipeline. Marketers must understand that long lags between initial intention and the completion of the action allows consumers plenty of time to talk themselves out of a purchase or question the outcome of the purchase.
Engel, Kollet, Blackwell (EKB) Model
The EKB Model expands on the Theory of Reasoned Action, and lays out a five-step process that consumers use when making a purchase. The first step, input, is where consumers absorb most of the marketing materials they see on television, newspapers or online. Once the consumer collects the data, he or she moves into information processing, where the consumer compares the input to past experiences and expectations.
Consumers move to the decision-making stage after a period of thought, choosing to make a purchase based on rational insight. Consumers are affected in the decision-making phase by process variables and external influences, including how the consumer envisions his or herself after making the purchase.
Under the EKB Model, marketers have two periods where their input is the most valuable. During the initial information stage, marketers must provide consumers with enough information about the product to drive the consumer to keep the company’s products under consideration for purchase. Marketing becomes a factor again in the phase of external influences. Lifestyle brands are very good at instilling desire in the consumer to look or feel a certain way with the product, even if the brand’s product is not fundamentally different from the competition.
Motivation-Need Theory
Abraham Maslow put forward his hierarchy of needs in 1943, sending ripple effects through the entire psychological community. Under his theory, people act to fulfill their needs based on a five-part priority system. The needs include, in order of importance: physiological (survival), safety, love, esteem, and self-actualization.
Business schools and marketing classes adapted Maslow’s theories to explain the need to tailor marketing messages to consumers in a particular way. Successful marketing campaigns must not only bring awareness to a product, but also establish its place somewhere on the hierarchy of needs. Consumers are motivated to prioritize purchases toward the base of the hierarchy, so it is vital that companies draft a message that instills a sense of need or urgency in consumers.
Marketers have been able to use motivation-need theory very effectively by creating an artificial need for consumers. Modern luxury carmakers are especially good at highlighting the safety and security features of their vehicles over the aesthetic. In the consumer’s mind, they need to spend the money on an expensive luxury car because it is the only way they can provide adequate safety features for their family.
Hawkins Stern Impulse Buying
While many of the theories of consumer behavior focus on rational action, Hawkins Stern believed heavily in the idea of impulse behavior. Stern argued that sudden buying impulses fit alongside rational purchasing decisions to paint a complete picture of the average consumer. Impulse purchases are driven largely by external stimuli, and have almost no relationship to traditional decision-making.
Stern established four categories of impulse buying. First are the purely impulse purchases, like a candy bar at the checkout line of a grocery store. Second, consumers make reminded impulse buys, like placing a display of hot dogbuns next to a meat cooler. Third are suggested impulse purchases, such as a warranty for an electronic device. Finally, consumers make planned impulse decisions, where they know they want to buy a product, but are unsure about the specifics.
Impulse buying theories present an ocean of opportunities for marketers. Every aspect of a product, from the way the packaging catches the eye to the way the product is displayed in the store, has an impact on a consumer’s impulse control. Marketers who can capture the impulsive thought and close the sale will have the most success.
disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.
- Consumer behavior involves services and ideas as well as tangible products.
- The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.
Applications of Consumer Behaviour There are four major applications of Consumer behaviour:
- The most obvious is for marketing strategy —i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers’ brand choices.
- Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.
- As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.
There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firm’s potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand drastically.
Consumer Research Methods
Market research is often needed to ensure that we produce what customers really want and not what we think they want.
Primary vs. secondary research methods. There are two main approaches to marketing. Secondary research involves using information that others have already put together. For example, if you are thinking about starting a business making clothes for tall people, you don’t need to question people about how tall they are to find out how many tall people exist—that information has already been published by the U.S. Government. Primary research, in contrast, is research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter.
Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete. For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke.
Secondary Methods.
Primary Methods. Several tools are available to the market researcher—e.g., mail questionnaires, phone surveys, observation, and focus groups.
Consumer behaviour entails "all activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses
Consumers are also influenced by broader factors, such as the wider economic context. For example, during a recession, people often shop less or only shop for necessities.
Other sources of influence can be social, like family or friends. People's buying decisions can be influenced by a desire to be social or remain connected to people. For example, seeing a commercial for greeting cards might remind you of friends and family and a desire to remain in touch with them.
Consumers are also influenced by cultural factors. For example, it's not common in the United States to bargain at a vegetable stall at a farmer's market - most people either buy the produce or, if it's too expensive, pass it up. In other countries, however, where bargaining is commonplace, a shopper might not buy something without going through that process.
Kotler’s Black Box Model (2004) Perhaps the most scientific suggestion as to our choices is the “Black Box Model”, developed by Kotler et al. (2004).
It is named the Black Box Model because we know so little about what actually goes in our mind. We know processes occur in the brain, but we have very little idea as to how, why, when and where. So in a way, it is much like a black box. Let’s study the diagram further.
The external factors on the left are influenced by everything you perceive. It includes the product itself, and the environment. So we’re looking at a computer game – the product. Let’s assume you love gaming. The place, price and promotion are probably big influences. If you’re buying a Gameboy game from the 1990’s, priced at £80 from a seedy little shop in a dark alley full of drug dealers, I’m assuming you would perhaps reconsider. If you’re in Game, a well known video game retailer, looking at a brand new x-box game for £15, which is heavily promoted – you would probably be heavily tempted. It is cheap, a product you want, and looks amazing. You find yourself delving for your money with little thought. That is known, in the model, as the “marketing mix”.
The other external factors include demographics (race, gender, age etc.) A 60 year old male won’t buy a Barbie doll made for a 5 year old female (unless they’re buying it FOR a child – or so I hope…) Similarly, a Christian probably will not buy a Guru Granth Sahib or Qu’ran. Such factors are important to consumers. This may all seem like common sense, but all these factors are considered by you, and affect your behaviour. Other external factors include the situation, is it feasible for you to buy the item now? You might not buy a washing machine because you cannot get the item home, and they do not offer delivery. Is it socially acceptable
to buy the item? Does your lifestyle permit the purchase of an item? All these external factors are considered – often in a split second.
Now we’re entering the “black box” – your mind. You make many decisions when considering whether to buy a product. Internal influences include: perception (does the item look good?); your needs (do I really needor want the item?); learning (what do I already know about this product?); beliefs (what do I believe about/what is my attitude towards this item?) andlifestyle (is the item acceptable for my lifestyle, and does it appeal to my interests?). Many of these are done unconsciously, although sometimes, when faced with a decision, you may find yourself asking these questions – especially the question “do I really need this?”. With your decision making process, you solve any problems you might encounter and consider the process of buying it. What will happen when you buy it, and what about after you have purchased the item? You try to gather information about the item to decide whether it is worth the effort and money. The black box will then output one of two behaviours: purchase or no purchase. The latter is rather self explanatory; you do not buy the item and save your pennies. However, if you are ready to purchase the item, there are a few final factors to consider. This includes the amount to buy (with food particularly) and how you will pay. You might decide to buy something, but if the shop does not have a card reader and you only have a card, you are unable to buy the item. You will probably leave feeling pretty disappointed…
Of course, that is just one theory. What else do we know about consumer psychology?
Smells influence our spending. In a small pizzeria in France, Gueguen and Petr (2006) investigated the effects of smell on the amount of money spent. On three different Saturdays (apparently when external factors were very similar, such as weather), different scents were released into the air. There was a control group, whereby no scent was released; customers smelt pizza and natural cooking smells. On another Saturday, lemon scents were filling the nostrils of their hungry diners. In the final condition, lavender incense was used. Although lemon did increase the level of spending, lavender increased spending the most; diners were spending 20% more when it was used (spending per person went from €17.50 to €21.10). This experiment is yet to be replicated or improved upon, but it does suggest that smells affect our consumer behaviour.
Choice is devastating.
you with their worryingly fake smiles. When you mix the pressure of them watching you like hawks and asking you if you need help enough to provoke suicide, and being stressed in general, with loads of decisions to make… you can work out the 5.
We have no idea what we are doing. Unless you are going to the local shop for milk, we often have a very vague idea of what to get when we go shopping for leisure, or even for food. We have an unclear goal, such as “I want something to do/use this weekend”. So that could entail reading, a film, music or something more radical like a drive in a new car or a paragliding weekend. You might think you are not that susceptible to huge buys like this, but for people who have enough money, it occurs a lot more than you would think. As we progress through a shop, our goals become more defined. A series of tests by Lee & Ariely have found that if you are offered coupons at the entrance of a shop, you are much more likely to use them. When offered them inside the shop, they are seldom used. The coupons influence what you want, as your goals are easily malleable. When offered in the store, your goals are already more concrete, so you do not need or want the coupons.
Appearance is everything. Our brain naturally likes neatness and order. Look at the following two images.
Which one appeals more (regardless of the items they are selling?) For most people, the spacious, well-lit store will certainly look more pleasant. Small factors like layout, light, space and arrangement will severely impact your likelihood of spending money. In the shop on the left, conditions are cramped and will probably make you give up before you have browsed fully. Items are overlapped and hard to distinguish between. In the second picture, everything is well-lit and well organised. Book spines are easily readable and look well presented. Whether this appeals directly to you or not, your brain will love it! More expensive shops will understand this, and everything will look presentable and appealing – for example inside Harrods or Selfridges. Local shops or small high street retailers often cram loads of items into a small space to cater for many needs, which does not appeal as much.
Those are some of the main principles and findings of consumer psychology. Before long, I will post even more interesting information on this fascinating topic. I hope this has changed the way you view shopping though!
