How Can Psychology Inform Our Understanding Of How Consumers Behave?

Executive Summary

The aim of this assignment is to explore that how can Psychology inform our understanding of how consumers behave. The importance of studies on consumer behaviour is enhanced especially in highly competitive environments, as the company runs the risk that the consumer is inclined to the products of its competitors. The secondary data collection method is used for this assignment. The compilation of this assignment is based on the analysis of the literature review published in various secondary sources. I have consulted the various online libraries and books to analyse how Psychology can inform our understanding of how consumers behave. There is important work for social psychology that offers an explanatory model for consumer behaviour in terms of what we are seeing. These dimensions relate to the differences between countries regarding the motivations of purchase, brand loyalty and the assumption of new technology. They are: power distance, individualism / collectivism, masculinity / femininity, uncertainty avoidance and long-term orientation. The main psychological factors are motivation, perception, learning, beliefs and attitudes, which in a way are very important in consumer behaviour that this depends on the answer to the consumer of that situation. Purchasing decisions we make greatly affect the demand for products and services we consume and influence the employment of many workers and the deployment of resources in the success of some industries and the failure of others.

Table of Contents

Executive Summary2

Introduction4

Research Design4

Critique over the Psychology of Consumer Behaviour5

Analysis of Motivation and Perception in Consumer Behaviour6

Perspectives of Motivation and Perception in Consumer Psychology8

Findings on the Psychology of Consumer Behaviour for Marketers9

Conclusion11

References13

How Can Psychology Inform Our Understanding Of How Consumers Behave?

Introduction

The aim of this assignment is to explore that how can Psychology inform our understanding of how consumers behave. Consumer behaviour involves a set of activities that people develop when they search, purchase, evaluate, use and dispose of assets in order to satisfy their needs and desires. These activities include both mental and emotional processes and physical actions. The process of developing the marketing strategy involves several phases: situation analysis, strategy design, implementation and control. Analysis of consumer behaviour is part of the first phase (Chaiken, 2007).

The behaviour of every human being is influenced by the stimuli it receives from its environment. Personality is defined as the set of internal psychological characteristics that determine and reflect how a person responds to its environment. It has been observed that there is a relationship between consumer behaviour and personality when making a purchase. The lifestyle reflects the way a person lives, and is defined by three elements: activities, interests and opinions. So lifestyle can be very useful for marketers to understand consumer behaviour and provide a basis for market segmentation (Schroeder, 2000).



Research Design

The secondary data collection method is used for this assignment. The compilation of this assignment is based on the analysis of the literature review published in various secondary sources. I have consulted the various online libraries and books to analyse how ...