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The Influence Of Consumer Psychology

“Human behavior flows from three main sources: desire, emotion and knowledge.” 

~Plato

Michael Solomon in Encyclopedia of Applied Psychology has described the field of consumer psychology as ‘the study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.’ In the early stages of development of this field, it was also referred to as buyer behavior; emphasizing the exchange, i.e. a transaction between two parties when they give or receive something of value. However, as the field evolved, marketers recognized that consumer behavior is an ongoing process and not a one time transaction. This expanded view emphasized that the entire consumption process is inclusive of the issues that influence the consumer before, during, and after buying a product. The modern premise of this field now is that, ‘people often buy products not for what they do but for what they mean.’ This implies that the roles that products play in one’s life are extended beyond the tasks that they perform: individuals may choose products of a particular brand with an image or personality that is consistent with the buyer’s underlying needs. Solomon describes four types of relationships that individuals may have with their products. First, self-concept attachment which means that the product helps to establish the user’s identity. Second, nostalgic attachment where the product serves as a link to one’s past self. Third, interdependence when the product is a part of the user’s daily routine. And fourth, love when certain products elicit emotional bonds of warmth and passion, to name a few. 

To understand the logic behind consumers as decision makers, Solomon proposed a four-step model to facilitate the decision making process. The steps are: first, need recognition, which happens when the consumer experiences a significant difference in the current state and desired state. Once this need is activated there is a state of tension which drives the consumer to take steps to reduce the difference between the current and the desired state. This drive leads to the second step, information search. In this step, one scans the environment to see if there are any available options to satisfy the need. Information search leads to evaluation of alternative options, which is the third step. In this step, the alternatives found to satisfy the consumer’s needs lead to a new and evolved set of options. Evaluative criteria and determinant attributes are the factors which help a consumer decide the best option from the alternatives. Evaluative criteria is the dimension that is used to judge the merits of available options, and determinant attributes are characteristics used to distinguish choices. All this leads to the fourth and final step, of purchase where the consumer makes the choice to actually purchase and procure a product or service to satisfy their need after taking into account the factors which are resulted from steps two and three. It is also to be noted that, at the time of purchase, a few things can influence the decision of the consumer, they are: behavioral, like entertaining friends, and perceptual, like the consumer's mood at the time of purchase.  

After the purchase is made, consumer satisfaction or dissatisfaction determine whether the consumer will engage in buying the product or service again. Satisfaction is not only determined by the actual performance of the product but also by checking if it has met the expectations set before purchasing the product or service regarding the quality of the product. 

Dr. Robert Cialdini in his book ‘Influence: The Psychology of Persuasion’ has outlined  six principles of persuasion. In this book, he describes how these six universal principles can be used to persuade people to say yes, how to apply them ethically in businesses, and defend oneself against dishonest influence attempts. The six principles are- first, reciprocation, which is the internal pull to repay what another individual has provided one; second, commitment and consistency, which is to behave in a manner consistent with one’s decisions and choices, or take a stand for/against something. Third, social proof, when one is unsure about a choice or decision, they look up to akin people to help them decide correctly; it is believed that the more people perform one action the more appropriate it is. Fourth, liking, this is the tendency to agree with people one likes, and have the same people agree with one when they present an opinion. Fifth, authority, individuals are more likely to say “yes” to those in positions of authority, and seem to have greater knowledge, experience, or expertise. The last principle is scarcity, which is when an individual wants more of what is dwindling in availability. 

Eric Samson elaborates on the use of the second principle ‘commitment and consistency’ suggested by Dr. Cialdini. This principle is also known as the foot-in-door technique. This technique suggests that when an individual makes certain choices, they use past decisions to determine their future actions. It is also insisted that when people make commitments for tasks, they are more likely to follow through. This is widely used by marketers, where they ask potential customers to perform small tasks first, and then based on their past behavior, they try to influence future decisions. For example, after getting consumers to agree for requests like signing up for a newsletter, following their organization on social media, which increases the odds of consumers agreeing to other requests, they try to sell their products.  

Several studies have been carried out to understand consumer behaviour during a pandemic. One such study highlights how culture (individualistic and collectivistic) affects shopper’s journey and responses to factors like advertisements, price, product lines, to name a few. It argues that people from individualistic cultures prefer to buy products and services that are associated with being successful and autonomous. However, since the trend during this pandemic is shifting from “I” to “we,” marketing strategists are suggesting that the consumer trends will also change. It is suggested that  western cultures will follow a similar pattern as non-western cultures, i.e, a shift in buyer behaviour from personal gain and enjoyment to an experience that can be shared with others, something that represents social harmony rather than an autonomic social status. A report by Accenture highlights that consumer behaviours and attitudes have changed during the pandemic and will continue post-pandemic as well. People have become more conscious of their shopping choices and major sales are focused on objects that cater to most basic daily needs. Consumers are also displaying an increased preference for more local products, and embracing digitalization. Trends have also shown new shopping behaviors like- conscious consumption and an ever increasing focus on health.  

In conclusion, one can infer that consumer trends have changed significantly because of the pandemic, and these new trends may or may not continue in the post-pandemic period. 

Divya Mirani