Psychology in Marketing free essay sample

Before we begin, a definition of what consumer psychology is and what it means will be given. â€Å"The term consumer psychology refers to the study of how people relate to the goods and services they use in their daily lives. Also known as the study of consumer behavior, consumer psychology provides opportunities to examine issues such as what factors are most important when people decide to purchase a particular item, how customers determine the value of service, and whether or not television and magazine advertisements can convince a reluctant consumer to try a new product for the first time† (Hinders, 2010). Consumer psychology plays such a major role in marketing, advertising, economics and social and cognitive psychology. Consumer psychology is such an intricate part of marketing and the economy that the International Association for Research in Economic Psychology (IAREP) and the Society for the Advancement of Behavioral Economics (SABE) has an annual conference. We will write a custom essay sample on Psychology in Marketing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The annual conference is designed to discuss the scientific basis of the economic decision making process of humans and the complex needs and shortages as well (Kirchler Hoelzl, 2006). Various concepts develop from these psychological meetings that many strategists utilize in the advertising of their product. A commonly used concept is the marketing concept and an extension of this concept is green and social marketing. The fundamental approach in the marketing concept is that the â€Å"marketer should pay attention to the customers’ needs and wants in order to achieve and maintain successful business relationships†(Vazifehdust, Taghipourian, Gharib, 2011). While that may be were the consumer psychology began, it has transformed in its design to influence how the customer feel and to determine for them. To not necessarily consider the consumer wants, but to make them believe that they need the product. Green marketing takes advantage of customers’ willingness to purchase, and sometimes pay a premium for, products that provide private benefits as well as public environmental benefits. John B. Watson was a consumer psychologist. He suggested that his ad for the Johnson Johnson’s baby powder play on the anxiety and insecurities of new mothers. This was a start of recognizing how one could affect the emotional appeal and affect a consumer’s way of thinking about a product to purchase. His technique of recognizing the emotional appeal of advertising remains a cornerstone of consumer psychology today† (Hinders, 2010). While consumer psychology plays a major role in marketing, it is constantly evolving. It in design is what makes a consumer thinks he needs and wants. It is to make the consumer feel good about the purchase and that both parties walk away feeling fulfilled. It has gone from asking the customer or consumer what he wants, but focuses on what the market believes he should purchase or own. References Hinders, D. 2010, May). What is Consumer Psychology? Retrieved from http://wisegeek. com/what-is-consumer-psychology. htm Kirchler, E. , Hoelzl, E. (2006). Twenty-five years of the Journal of Economics Psychology (1981-2005): A report on the development of an interdisclinary field of research. Journal of Economic Psychology, 27(32), 793-804. Vazifehdust, H. , Taghipourian, M. J. , Gharib, Z. (2011, November). Social Marketing, Green Marketing: The Extension of Marketing Concept. European Journal of Economics and Administrative Sciences, 1450-2775(41), 42 -57.