PSY514 Handouts Lectures 1-45

1.

2. Introduction to consumer psychology (implementing the marketing concept) ........................5

3. Introduction to consumer psychology (marketing mix)....................................................................8

4. Introduction to consumer psychology (marketing mix ...................................................................11

5. Value and retention focused marketing consumer decision making process...........................15

6. Consumer research (consumer research paradigms)........................................................................19

7. Major steps in consumer research process...........................................................................................21

8. Quantitative research designs & data collection methods..............................................................22

9. Quantitative research data collection techniques ..............................................................................26

10. Qualitative research designs & data collection methods ................................................................31

11. Customer satisfaction measurement, sampling, and data analysis and reporting ..................33

12. Market segmentation and its bases ........................................................................................................41

13. Bases for segmentation demographic & psychographic segmentation: ....................................45

14. Bases for segmentation: sociocultural, use related & usage situation segmentation.............48

15. Bases for segmentation: benefit segmentation ...................................................................................52

16. Bases for segmentation: hybrid segmentation strategies ................................................................55

17.

18. How culture is learnt environmental influences.................................................................................62

19. Culture and its measurement environmental influences .................................................................65

20. Measurement of culture environmental influences ...........................................................................67

21. Subculture chapter 4: environmental influences ................................................................................70

22. Age and gender subculture .......................................................................................................................72

23. Bases for segmentation: benefit segmentation ...................................................................................75

24. Social class .....................................................................................................................................................77

25. Consumer social classes.............................................................................................................................80

26. Consumer social classes.............................................................................................................................83

27. Consumer social classes.............................................................................................................................87

28. Understanding personality chapter 5: individual determinants of consumer behavior .........91

29. Consumer personality, trait theory and self images ..........................................................................94

30. Consumer motivation .................................................................................................................................98

31. Understanding learning ...........................................................................................................................101

32. Instrumental conditioning, information processing and memory..............................................106

33. Attitudes........................................................................................................................................................110

34. Attitude formation and change ..............................................................................................................112

35. Attitude change strategies.......................................................................................................................115

36. Introduction to consumer decision making chapter 6: consumer decision making.............117

37. Problem recognition, search and evaluation and decision and purchase ................................120

38. Decision and purchase .............................................................................................................................122

39. Decisions related to post purchase .......................................................................................................126

40. Marketing implications of decisions related to post purchase ....................................................129

41. Post purchase evaluation .........................................................................................................................131

42. Post purchase dissonance........................................................................................................................133

43. Consumerism ..............................................................................................................................................136

44. Consumerism – issues and responses..................................................................................................139

45. Review – consumer psychology course...............................................................................................142

Table of Contents

Lesson No. Page No. LESSON 01

Definition and Scope of Consumer Psychology

Development of Marketing Concept and the fields of Consumer Psychology and Consumer

Behavior

Production Concept

Product Concept

Selling Concept

Marketing Concept

Marketing Concept and the Three Business Leaders

1. Definition and Scope of Consumer Psychology:

Basic Questions

The field of Consumer Psychology seeks to understand that how individuals make decisions to spend their

available resources (time, effort and money) on consumption related items. The important questions facing

the consumer psychologists include:

What do consumers buy?

Why they buy it?

When the buy it?

Where they buy it?

How often they use it?

How they evaluate products after the purchase?

Impact of such evaluations on future purchase behavior

How they dispose off the products?

Psychology

“Psychology is the science of behavior and mental processes”

Consumer

Person who consumes, especially one who uses a product

Purchaser of goods or services

Consumer Psychology

“Consumer psychology is the study of how people relate to the products and services that they

purchase or use”.

Consumer psychologists study virtually all psychological and behavioral responses that can occur within the

context of a person's role as a consumer. And consistent with the goals of psychologists from other areas,

research carried out by consumer psychologists is designed to describe, predict, explain, and/or influence

consumer responses to productand service-related information and experiences.

Research in Consumer Psychology may be used to:

Provide information to companies and consumers on what the public needs or wants

Help an organization (either profit or nonprofit) effectively develop and market products, services,

or ideas

Guide the work of government agencies that are responsible for product safety, identity of brand

names, evaluation of advertising claims, and assessment of ethical marketing practices

Representations in Consumer Psychology

Consumer psychology contains a broad range of theoretical, conceptual, and methodological perspectives.

However, currently the strongest representation comes from researchers in the areas of cognitive

psychology, social psychology, marketing, and advertising.

Social Psychology

Influence of social situations on human mind and thoughts

Cognitive Psychology:

Study of mental representations and information processing

Advertising:

Draw favorable attention to goods or services in a public medium to promote sales

Marketing

2. Consumer Behavior

Consumer behavior is the study of the behavior that consumers display during the processes of searching

for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their

needs.

Consumer Behavior describes two kinds of consuming entities:

The Personal Consumer and;

The Organizational Consumer

Personal Consumer

Buys goods for his/her own use, for the use of household or as gift for friends/families

Organizational Consumer

Includes profit and not-for-profit businesses, government agencies and institutions

3. Development of Marketing Concept and the Disciplines of Consumer Psychology and

The fields of Consumer Psychology and Consumer Behavior are rooted in the development of Marketing

Concept, a business Orientation that evolved in the 1950’s through several alternative approaches toward

doing business, referred to, respectively, as the production concept, product concept and the selling concept.

A. Production Concept:

Focus

Cheap, efficient production and intensive distribution

Consumers are more interested in obtaining the product than they are in specific features

Problem

Ignored the consumers in terms of required product features

B. Product concept:

Focus

The product

Strive constantly to improve the quality of product and add new features that are technically

feasible