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August 6, 2017

Consumer Behavior: The Psychology Behind Retail Marketing

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Ever wonder what the psychology is behind consumerism? Or simply why we purchase particular products? Consumer psychology is a growing niche area that studies how one’s thoughts, beliefs, feelings and perceptions influence how and when people purchase products. Consumer psychology plays a huge role in how retailers market products. From their window displays to their discount codes, retailers are constantly working to persuade you to pull out your credit cards. In fact, big name retail stores put a great amount of thought and attention towards the “consumer experience.” Below is an overview of what marketing professionals look at.

Professionals in this field look at things like the decision-making process, social persuasion and motivation to help understand why shoppers buy some things but not others.

Consumer psychologists study a variety of topics including:

  • How consumers choose businesses, products and services. This boils down to a number of reasons, however motivation combined with need or desire tops the list.
  • The thought processes and emotions behind consumer decisions. Advertising research has shown that one’s emotional response to an ad has more influence than one’s intent on purchasing the product.
  • Environmental variables influence buying decisions. This can include friends, family, media and culture.
  • What motivates people to choose one product over another. This may include brand loyalty; a customer may be more comfortable with a certain product due to their experience with it year after year.
  • What personal factors and individual difference affect people’s buying choices. For example, someone’s age, cultural background, and cognitive biases all affect if someone will purchase any given product.
  • What marketers can do to effectively reach out to their target customers. This can include a variety of advertisement techniques or sale offerings.
  • Psychology of pricing. For example: using a price of $7.99 instead of a rounded price of $8 is all about illusion, creating a difference between its perceived value and real value which has been shown to boost sales.

These above topics can be broken into four categories:

In the world of consumerism, need drives the motivation to purchase. For example, on the most basic level we buy food when we are hungry. According to psychologist Abraham Maslow’s theory of hierarchical pyramid of needs, the more basic the need (food, shelter) the greater the motivation to fulfill it. Once these basic needs are met, one can progress onto higher levels of growth, eventually achieving the highest level called self-actualization. In its most simplistic form, this theory is a perfect example of how consumers are motivated to purchase by their most basic needs. Once those basic needs are met, consumers will purchase products that contribute to social status and heightened self-esteem.

Consumer experience is a part of this consumer psychology category. For example, if a particular commercial convinces the consumer to try the product and they are dissatisfied, the consumer will avoid the product in the future. Avoidance of the product will continue even if changes have been made to address prior issues. Due to this learned experience, advertisers may attempt to change the message attached to their particular product.

The way someone views the outside world is their perception. To gain someone’s attention you may use tactics that get people to stop, watch and listen. Now, once attention has been gained, a marketer will want the consumer to remember their message without filtering it through the consumer’s own mindset. Marketers tend to repeat the information that want you to retain. Why? Because repetition helps make the message stick. Hence why certain commercials repeat an important part of the ad.

The belief a consumer holds about a retailer or the retailer’s product will inevitably affect whether or not they buy and what they buy. If you believe a certain company shares the same value system as your family they are more likely to gain your business. Or if you believe the retailer’s product is beneficial, or have a poor perception of the competitor’s product, you will avoid one product and be drawn to the other. Advertisers attempt to align positive traits with their product that counteract beliefs that may interfere with attracting buyers.

A great amount goes into why we are brand loyal, or why we choose one retail chain over another. Human behavior is complex, and one’s consumer behavior is no exception. However, the power of purchasing is always in the consumer’s hands.

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