Ramos, Crishia Ellamae P.

December 1, 2017

III-B Psych Dr. E. Pagsanhan

1st Written Assignment

1. What is Consumer Psychology?

Consumer Psychology deals with the study of why individuals consume certain products.

Consumer Psychologists attempts to determine the underlying cognitive processes that explains

the choices of costumers in purchasing products and how they respond to the marketing

strategy used in selling this such products, as well as the external stimuli that prompt people to

purchase certain items.

2. What is Consumer Behavior?

Consumer behavior is the core ground of consumer psychology. It answers the question

how people purchase certain items and involves the issues of communicating or advertising and

marketing strategy of selling items in the market to the consumers, identity or the perception

of costumers in buying goods that describes who they are, social status, decision-making, and

mental and physical health. Findings on consumer behavior are used to help corporations to

determine how best to market products.

3. What affects Consumer Behavior?

There are numerous factors affecting consumer behavior or how individuals purchase

products in the market. These factors are:

A. Cultural Influences

• Culture - The influence of culture on the purchasing behavior varies from country to

country, therefore sellers have to be very careful in the analysis of the culture of

different groups, regions or even countries.

• Subculture - Each culture has different subcultures, such as religions, nationalities,

geographical regions, racial, etc. marketing groups may use these groups, segmenting

the market in several small portions.

 • Social Class - Every society has some kind of social class is important for marketing

because the buying behavior of people in a particular social class is similar. Thus

marketing activities could be adapted to different social classes. Here we should note

that social class is not only determined by income, but there are several other factors

such as wealth, education, occupation etc.

B.Social Factors

• Reference groups - Reference groups have the potential for the formation of an attitude

or behavior of the individual. The impact of reference groups vary across products and

brands. For example, if the product is visible as clothing, shoes, car etc., the influence of

reference groups will be high. Reference groups also include opinion leader (a person

who influences others by his special skill, knowledge or other characteristics).

• Family - Buyer behavior is strongly influenced by a family member. So vendors are trying

to find the roles and influence of the husband, wife and children. If the decision to

purchase a particular product is influenced by the wife of then sellers will try to target

women in their ad. Here we should note that the purchase of roles change with

changing lifestyles of consumers.

• Roles and Status - Each person has different roles and status in society in terms of

groups, clubs, family, etc. organization to which it belongs. For example, a woman

working in an organization as manager of finance. Now she is playing two roles, one of

the chief financial officer and the mother. Therefore, purchasing decisions will be

influenced by their role and status.

C. Personal Factors

• Age - Age and life cycle have a potential impact on the purchasing behavior of

consumers. It is obvious that consumers change the purchase of goods and services over

time. Family life cycle consists of different stages as young singles, married couples,

unmarried couples etc. that help marketers to develop suitable products for each stage.
 • Occupation - The occupation of a person has a significant impact on their buying

behavior. For example, a marketing manager of an organization is trying to buy business

suits, while low level worker in the same organization buy-resistant clothing work.

• Economic situation - Economic situation of the consumer has a great influence on their

buying behavior. If income and savings a customer is high, then going to buy more

expensive products. Moreover, a person with low income and savings buy cheap

products.

• Lifestyle - Lifestyle clients is another factor affecting import purchasing behavior of

consumers. Lifestyle refers to the way a person lives in a society and express things in

their environment. It is determined by the client’s interests, opinions, etc and activities

shapes their whole pattern of acting and interacting in the world.

• Personality - Personality changes from person to person, time to time and place to

place. Therefore, it can greatly influence the buying behavior of customers. In fact,

personality is not what one has, but is the totality of the conduct of a man in different

circumstances. Have different characteristics, such as dominance, aggression,

confidence etc. that may be useful to determine the behavior of consumers to the

product or service.

D. Psychological Factors

• Motivation - The level of motivation also affects the purchasing behavior of customers.

Each person has different needs, such as physiological needs, biological needs, social

needs, etc. The nature of the requirements is that some are more urgent, while others

are less pressing. Therefore, a need becomes a motive when it is most urgent to lead

the individual to seek satisfaction.

• Perception - Select, organize and interpret information in a way to produce a

meaningful experience of the world is called perception. There are three different

perceptual processes which are selective attention, selective distortion and selective

retention. In the case of selective attention, sellers try to attract the attention of the

customer. Whereas in case of selective distortion, customers try to interpret the

 information in a way that supports what customers already believe. Similarly, in the case

of selective retention, marketers try to retain information that supports their beliefs.

• Beliefs and Attitudes - Client has specific beliefs and attitudes towards different

products. Because such beliefs and attitudes shape the brand image and affect

consumer buying behavior so traders are interested in them. Marketers can change

beliefs and attitudes of customers with special campaigns in this regard.

4. Who benefits from the study of consumer behavior?

Studying consumer behavior has a significant bearing on marketing and public relations

decisions. They benefit on the studies focusing on consumer behaviors that yields important

information and insight into what consumers are thinking. With these insights, marketing and

public relations firms may enhance their particular marketing campaigns to successfully

connect with consumers.Studying consumer behavior helps marketers understand consumer

perceptions about a particular product or range of products. Uncovering and correcting

erroneous perceptions about a particular product may give marketers an additional competitive

advantage over competitors.

5. What are the marketing implications of consumer behavior?

Marketers are interested in understanding and influencing consumer behavior to

increase demand for their products and services and, ultimately, to increase sales. Consumer

behaviors have number of implications on marketing strategy. It is important for organizations

to thoroughly understand the markets they are attempting to influence and how consumer

behaviors impact consumers' buying decisions.

• Psychographics of Consumers - Psychographics are consumer attributes that serve to

identify consumer activities, interests and opinions (AIOs). Studying consumer behaviors

to understand the types of activities consumers engage in, the things they're interested

in and the opinions they have can help marketers in two key ways: First, understanding

AIOs can help marketers identify the appropriate communication tools to connect with

the target consumers. In addition, understanding AIOs can help marketers craft

messages designed to influence or capitalize on their existing opinions.

• Reference Group – Influence and Opinion - Consumers are influenced by others, and

savvy marketers know this. The use of testimonials and spokespeople to strengthen a

certain brand is common among many marketers -- consider the use of sports figures

such as Tiger Woods to Peyton Manning to endorse products from golf clubs to cars to

apparel. Word-of-mouth can be a powerful influence on buying behavior, and marketing

strategies are often designed to leverage word-of-mouth. The increasing popularity and

use of social media help marketers to take even more advantage of reference groups in

helping to spread messages about their products and services.

• The Elaboration Likelihood Method - The elaboration likelihood model (ELM) is a

popular model used in marketing circles that helps marketers to determine whether a

central or peripheral route of communication would be most appropriate for a given

audience based on their level of loyalty or connection to a product, service or cause. A

central route is popular for communicating with consumers who are more highly

involved with the product or issue, while peripheral means of communication (a

combination of multiple approaches) are suitable for influencing less-involved

consumers. An effective illustration of ELM is political campaigning. Party-to-party

communication can take a central route; while attempts to influence a change in parties

or among independents require peripheral communications.

• Consumer Decision-making - Consumer decision-making determines the likelihood that

a consumer will consider or purchase a particular product. In general, consumers seek to

increase pleasure and avoid pain. They wish to minimize the risk of decisions they make

and will invest more time in researching purchase decisions that represent a higher level

of risk. For instance, low-cost, low-involvement products like shampoo will require less

effort and consideration on the part of consumers than high-cost, high-involvement

products like cars, computers or homes. Knowing this, marketers will spend more effort

to communicate in more detail with consumers whose choices represent a higher level

of risk.
Catingcoy, Franc Jayson B. December 1, 2017

III-B Psych Dr. E. Pagsanhan

1st Written Assignment

1. What is Consumer Psychology?

Consumer Psychology is a specialty area that studies the individual’s thoughts, beliefs,

feelings and perception on why people buy and relate to goods and services. It also deals with

people ‘s processes used in selecting, using and disposing such products, services, experiences,

or ideas to satisfy needs and the impacts of these processes have on the consumer and society.

2. What is Consumer Behavior?

Consumer behavior is the focus consumer psychology. It ought to study of how

individuals decide on what they buy, want, need, or act in regards to a product, service, or

company or how one relates him/herself in consuming a certain item. It is critical to understand

consumer behavior to be able to determine how potential customers will respond to a new

product or service. It also helps companies to identify opportunities that are not currently met.

3. What affects Consumer Behavior?

There are numerous factors affecting consumer behavior or how individuals purchase

products in the market. These factors are:

3.1. Psychological Factors

• Motivation - The level of motivation also affects the purchasing behavior of customers.

Each person has different needs, such as physiological needs, biological needs, social

needs, etc. The nature of the requirements is that some are more urgent, while others

are less pressing. Therefore, a need becomes a motive when it is most urgent to lead

the individual to seek satisfaction.

• Perception - Select, organize and interpret information in a way to produce a

meaningful experience of the world is called perception. There are three different
 perceptual processes which are selective attention, selective distortion and selective

retention. In the case of selective attention, sellers try to attract the attention of the

customer. Whereas in case of selective distortion, customers try to interpret the

information in a way that supports what customers already believe. Similarly, in the case

of selective retention, marketers try to retain information that supports their beliefs.

• Beliefs and Attitudes - Client has specific beliefs and attitudes towards different

products. Because such beliefs and attitudes shape the brand image and affect

consumer buying behavior so traders are interested in them. Marketers can change

beliefs and attitudes of customers with special campaigns in this regard.

3.2. Personal Factors

• Age - Age and life cycle have a potential impact on the purchasing behavior of

consumers. It is obvious that consumers change the purchase of goods and services over

time. Family life cycle consists of different stages as young singles, married couples,

unmarried couples etc. that help marketers to develop suitable products for each stage.

• Occupation - The occupation of a person has a significant impact on their buying

behavior. For example, a marketing manager of an organization is trying to buy business

suits, while low level worker in the same organization buy-resistant clothing work.

• Economic situation - Economic situation of the consumer has a great influence on their

buying behavior. If income and savings a customer is high, then going to buy more

expensive products. Moreover, a person with low income and savings buy cheap

products.

• Lifestyle - Lifestyle clients is another factor affecting import purchasing behavior of

consumers. Lifestyle refers to the way a person lives in a society and express things in

their environment. It is determined by the client’s interests, opinions, etc and activities

shapes their whole pattern of acting and interacting in the world.

• Personality - Personality changes from person to person, time to time and place to

place. Therefore, it can greatly influence the buying behavior of customers. In fact,

personality is not what one has, but is the totality of the conduct of a man in different

circumstances. Have different characteristics, such as dominance, aggression,

 confidence etc. that may be useful to determine the behavior of consumers to the

product or service.

3.3. Cultural Influences

• Culture - The influence of culture on the purchasing behavior varies from country to

country, therefore sellers have to be very careful in the analysis of the culture of

different groups, regions or even countries.

• Subculture - Each culture has different subcultures, such as religions, nationalities,

geographical regions, racial, etc. marketing groups may use these groups, segmenting

the market in several small portions.

• Social Class - Every society has some kind of social class is important for marketing

because the buying behavior of people in a particular social class is similar. Thus

marketing activities could be adapted to different social classes. Here we should note

that social class is not only determined by income, but there are several other factors

such as wealth, education, occupation etc.

3.4. Social Factors

• Reference groups - Reference groups have the potential for the formation of an attitude

or behavior of the individual. The impact of reference groups vary across products and

brands. For example, if the product is visible as clothing, shoes, car etc., the influence of

reference groups will be high. Reference groups also include opinion leader (a person

who influences others by his special skill, knowledge or other characteristics).

• Family - Buyer behavior is strongly influenced by a family member. So vendors are trying

to find the roles and influence of the husband, wife and children. If the decision to

purchase a particular product is influenced by the wife of then sellers will try to target

women in their ad. Here we should note that the purchase of roles change with

changing lifestyles of consumers.

• Roles and Status - Each person has different roles and status in society in terms of

groups, clubs, family, etc. organization to which it belongs. For example, a woman

working in an organization as manager of finance. Now she is playing two roles, one of
 the chief financial officer and the mother. Therefore, purchasing decisions will be

influenced by their role and status.

4. Who benefits from the study of consumer behavior?

Marketing and public relations decisions benefits by the study of consumer behavior.

Studies focusing on consumer behaviors gains essential information and insight of what

consumers are thinking. With these insights, marketing and public relations firms or

corporations will enhance their particular marketing strategies to successfully communicate

with consumers. Studying consumer behavior helps marketers understand consumer

perceptions about a particular product or range of products. Uncovering and correcting

erroneous perceptions about a particular product may give marketers an additional competitive

advantage over competitors.

5. What are the marketing implications of consumer behavior?

To increase demand for the products and services and to increase sales, marketers are

interested in understanding and influencing consumer behavior. Consumer behaviors have

number of implications on marketing strategy. It is important for organizations to thoroughly

understand the markets they are attempting to influence and how consumer behaviors impact

consumers' buying decisions.

• The Elaboration Likelihood Method - The elaboration likelihood model (ELM) is a

popular model used in marketing circles that helps marketers to determine whether a

central or peripheral route of communication would be most appropriate for a given

audience based on their level of loyalty or connection to a product, service or cause. A

central route is popular for communicating with consumers who are more highly

involved with the product or issue, while peripheral means of communication (a

combination of multiple approaches) are suitable for influencing less-involved

consumers. An effective illustration of ELM is political campaigning. Party-to-party

communication can take a central route; while attempts to influence a change in parties

or among independents require peripheral communications.

• Psychographics of Consumers - Psychographics are consumer attributes that serve to

identify consumer activities, interests and opinions (AIOs). Studying consumer behaviors

to understand the types of activities consumers engage in, the things they're interested

in and the opinions they have can help marketers in two key ways: First, understanding

AIOs can help marketers identify the appropriate communication tools to connect with

target consumers. In addition, understanding AIOs can help marketers craft messages

designed to influence or capitalize on their existing opinions.

• Consumer Decision-making - Consumer decision-making determines the likelihood that

a consumer will consider or purchase a particular product. In general, consumers seek to

increase pleasure and avoid pain. They wish to minimize the risk of decisions they make

and will invest more time in researching purchase decisions that represent a higher level

of risk. For instance, low-cost, low-involvement products like shampoo will require less

effort and consideration on the part of consumers than high-cost, high-involvement

products like cars, computers or homes. Knowing this, marketers will spend more effort

to communicate in more detail with consumers whose choices represent a higher level

of risk.

• Reference Group - Influence and Opinion - Consumers are influenced by others, and

savvy marketers know this. The use of testimonials and spokespeople to strengthen a

brand is common among many marketers -- consider the use of sports figures such as

Tiger Woods to Peyton Manning to endorse products from golf clubs to cars to apparel.

Word-of-mouth can be a powerful influence on buying behavior, and marketing

strategies are often designed to leverage word-of-mouth. The increasing popularity and

use of social media help marketers to take even more advantage of reference groups in

helping to spread messages about their products and services.