PSY514 Highlighted Handouts 2024

Consumer Psychology (PSY514) VU

Table of Contents

Lesson 1 Lesson 2 Introduction to consumer psychology (implementing the marketing concept) Lesson 3 Introduction to consumer psychology (marketing mix) Lesson 4 Introduction to consumer psychology (marketing mix) Lesson 5 Value and retention focused marketing consumer decision making process Lesson 6 Consumer research (consumer research paradigms) Lesson 7 Major steps in consumer research process Lesson 8 Quantitative research designs & data collection methods Lesson 9 Quantitative research data collection techniques Lesson 10 Qualitative research designs & data collection methods Lesson 11 Customer satisfaction measurement, sampling, and data analysis and reporting Lesson 12 Market segmentation and its bases Lesson 13 Bases for segmentation demographic & psychographic segmentation Lesson 14 Bases for segmentation: sociocultural, use related & usage situation segmentation Lesson 15 Bases for segmentation: benefit segmentation Lesson 16 Bases for segmentation: hybrid segmentation strategies Lesson 17 Lesson 18 How culture is learnt environmental influences Lesson 19 Culture and its measurement environmental influences Lesson 20 Measurement of culture environmental influences Lesson 21 Subculture Lesson 22 Age and gender subculture Lesson 23 Bases for segmentation: benefit segmentation Lesson 24 Social class Lesson 25 Consumer social classes Lesson 26 Consumer social classes Lesson 27 Consumer social classes Lesson 28 Understanding personality Lesson 29 Consumer Personality, Trait Theory and Self Images Lesson 30 Consumer motivation Lesson 31 Understanding learning Lesson 32 Instrumental conditioning, information processing and memory Lesson 33 Attitudes Lesson 34 Attitude formation and change Lesson 35 Attitude change strategies Lesson 36 Consumer decision making Lesson 37 Problem recognition, search and evaluation and decision and purchase Lesson 38 Decision and purchase Lesson 39 Decisions related to post purchase Lesson 40 Marketing implications of decisions related to post purchase Lesson 41 Post purchase evaluation Lesson42 Post purchase dissonance Lesson43 Consumerism Lesson44 Consumerism – Issues and Responses Lesson45 Review – consumer psychology course 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