Psychological Factors Affecting Consumer Behavior

It has been verbalize that merchandise management rests upon some excogitation or other of how consumers be turn in (Foxall 2001). I go away proceed to demonstrate, beginning with an oerview of consumer doings as it relates to the mental factors that ca hold mavin to comply with a devoted up request, by heart of to an examination of the various trends in merchandise which are reflective of consumers changing demands as they respond to world events and societal evolution, why it is vital that marketers to a lower placestand and evaluate consumer behavior. I will also demonstrate, through the use of representatives, how various organizations are employing specific strategies ground upon their realiseing of consumer behavior to produce register growth and advantageousness in the marketplace.psychological Factors Affecting Consumer BehaviorAs whiz social psychologist has termed the weapons of influence, there appear to be certain driving disembowels in gay nature, or automatic psychological triggers, that strike individuals to respond in predictable ship look to given requests (Cialdini 1993, p.3). ane such force is the normal of Reciprocation, whereby one feels obligated to conk a raise that has been provided him (Cialdini 1993, p.17). This take formula is near clearly evidenced by the consumers inwrought inclination to buy a merchandise from someone after he has been encom materializeing a kindness or favor from him. It has been demonstrated that this psychological principle of the communication channel press to return a favor with a favor is so strong, that it even surpasses the pauperization to alike(p) the individual extending the favor (Cialdini 1993, p.21).One example of the rule of reciprocation at work has been evidenced by the wildly successful marketing strategy of the run Krishna nine, an eastern religious sect cognize for its solicitation of funds from passersby in unrestricted places (Cialdini 1993, p.22). Hav ing been mostly unsuccessful at ski tow funds through traditional methods of intonate on the streets while begging for contributions, the root devised a brilliant strategy that basically invoked the principles of reciprocation (Cialdini 1993, p.22). As an individual would pass by, a conjunction member, rather than call for for a gratuity initially, would hand the trustful person a flower, whirl it as a free gift from the Society and not accepting its return under any circumstances. Only then would the Society member ask for a donation (Cialdini 1993, p.22).The response was everywherewhelming, and a testament to the crotchety power of reciprocation. The individual, aware that he had been given a gift and feeling the pressure to reciprocate, was practically compelled to respond with a donation (Cialdini 1993, p.24).another(prenominal) herculean psychological principle in a marketers arsenal of tools is the trueness and consistency factor (Cialdini 1993, p. 37). It has bee n disc everywhereed that spate feel a very powerful drive to be consistent formerly they sire committed themselves to something (Cialdini 1993, p. 37).An example of this principle at play is witnessed through the offering of testimonial contests by such volumed-name companies as Proctor & Gamble and General Foods (Cialdini 1993, p.39). In these contests, the companies ask participants to write short essays, often for large prizes, which include praise for the companies products. commonly no purchase is required what is to a greater extent important is that by forcing potential customers to record, in writing, praise for the companys product, the company relies on the psychological drive of the individual to believe what he has written (Cialdini 1993, p 40).Apart from the psychological triggers that persuade individuals to comply with given requests, marketers mustiness seek to understand the equally challenging psychological processes at work in the unconscious mind that cau se consumers to select one particular course of action, or product, over another (Zaltman 2003, p.53). One example of such an unconscious process lot be seen in the overwhelming tendency of customers to choose a product offered for $9.99 over an identical one offered for $10.00 (Zaltman 2003, p64).Consumer Need Practicality Or Emotionality?It has been stated that, contrary to everyday belief, people do not so much buy things they dont privation, but that the need is often base more upon emotions and feelings than it is upon cover physical necessity (Danziger 2004, p.1).Though the swinish domestic product in the united States has largely been generated by consumer spending since 1929-a broad 60 to 70 percent of it- the way consumers generally spend their money has changed significantly over the past 70 years (Danziger 2004, p.3). It is claimed that, today, over 40 percent of consumer spending is discretional based on wants, not postulate (Danziger 2004, p.4).Changing Trend s And Their Affect On The groceryanother(prenominal) important factor in predicting consumer behavior involves changing trends in the marketplace. Marketers must be ever vigilant to customers changing needs as society evolves and untested events cause consumers wants and needs to adjust accordingly.A clear example of this is witnessed by the middling recent change in scorecard selections offered by fast-food chains such as McDonalds and Burger King. Responding to a concern over the arise tide of obesity in the U.S. and near the world and consumers increasing desire to declare better lifestyles, such fast-food conglomerates have been adding healthier choices to their menu selections which includes salads, apple slices instead of French fries, and so on (Plunkett search 2005).Another example of a change in consumer behavior was reflected in consumers response to the sad events of September 11, 2001. The airline industry, facing considerable setbacks as a result of consumers untested reluctance to move by air for fear of another terrorist attack, was forced to sustain massive restructurings to accommodate the unexampled environs imposed upon them (Plunkett Research 2005). Consumers, wishing to invent their fears and need to reduce expenditures with the desire to bide enjoying and experiencing life as usual, were searching for ways-and bargains- to enable them to do this. Hence, there began a pitch in the airline industry outside(a) from luxury to economy, as discount airlines began backing the new standard for air travel by luring passengers with price, not perks (Plunkett Research 2005).With southwestern United States Airlines and JetBlue leading the pack, these airlines have achieved success and profitability responding to consumers changed needs, mainly by cutting maintenance, direct and labor costs, such as by offering a single-plane platform and an open-seating polity (Plunkett Research 2005).In the meantime, of course, as full-servi ce airlines have struggled to compete with the burgeoning success of the discount model, some, like Delta, have begun developing their own cheap models, which manage to keep costs eat by hiring younger flight crews.Another shining example of marketers need to understand and predict consumer behavior comes in the form of the relatively recent phenomenon of online delivery and piracy-or theft-of copyrighted medical specialty and video files ((Plunkett Research 2005). forced to adapt to this trend following a 2002-2003 decline in music revenues, music companies have been seeking ways to justification their files from illegal download and distribution, as wellspring as to capitalize on the cyberspace craze by finding methods by which to distribute their files through legal means via the internet (Plunkett Research 2005).Responding to this need, iTunes Music Store, a digital service provided by apple Computer, Inc.,was launched in 2003, and it offers music files for download ove r the internet (Plunkett Research 2005).On a different front, automobile manufacturers have been responding to consumers cost increase concern over escalating gas prices, which reached a record-high in September 2005 of $3.01 per gallon (Plunkett Research 2005). After suffering huge losses on their lines of minivans, pickups and sport utility vehicles (SUVs), the big three U.S. manufacturers, Ford, GM and Chrysler, are charge on raising fuel efficacy for these bigger models (Plunkett Research 2005).In addition, as foreign car companies like Toyota, Honda, and BMW have continued to steal sales away from U.S. automobile manufacturers, partially due to a reputation for producing higher quality cars, these American manufacturers have been responding by designing new product lines, such as the tremendously successful Chysler 300C, with its eye-catching grill and boxy, dandified design (Plunkett Research 2005).In sum, whether responding to a consumers instinctual drives, which dicta te that he or she will likely react in a certain way to a given stimulus, or evaluating the marketplace and consumer behavior based on world events and changing needs, marketing management does indeed rest on a conception of how consumers will behave, right off and in the future.