Psychology Applied to

Consumer Behavior
Ayesha Asif 40454
Introduction, factors influence consumer behavior.
Zahidah Nadeem 39423
Motivational research And techniques
Sana al Sehar 28511
Marketing & advertisement
Zoha Shahid 40635
Factors affecting Advertisement
 Consumer
• A consumer is a person or a
group who intends to order, or
uses purchased goods,
products, or services primarily
for personal, social, family,
household and similar needs.
• The term most commonly refers
to a person who purchases
goods and services for personal
use.
Consumer Behavior
• Process through which buyers
make decisions.
• Marketers borrow extensively from
psychology and sociology to better
understand consumer behavior.
• Consumer behavior is usually
understood as a function of
interpersonal influences and
personal factors.
Consumer behavior
• Process through which buyers make decisions.
• Marketers borrow extensively from psychology and sociology to better
understand consumer behavior.
• Consumer behavior is usually understood as a function of
interpersonal influences and personal factors.
• https://essays.io/harley-davidson-strategic-competitiveness-case-st
udy-example/
In the US the Marlboro Cowboy is usually shown alone.
In Japan, the Marlboro cowboy is usually shown as part of a
group...Why?
The Asch Phenomenon
• Theory of psychologist S. E. Asch that individuals conform to majority rule, even
if that majority rule goes against their beliefs.

• Reference Groups
• Reference groups People or institutions
whose opinions are valued and to whom a
person looks for guidance in his or her
own behavior, values, and conduct, such
as family, friends, or celebrities.
• Opinion Leaders
Opinion leaders Trendsetters who purchase
new products before others in a group and
then influence others in their purchases.
Consumers
Personal Factors

Age and Stage

in Life

Occupation &
Economy
Personal

Life Style

Personality and Brand

Self Concept Personality
PERSONAL DETERMINANTS OF CONSUMER
BEHAVIOR
• NEEDS AND MOTIVES
• Need Imbalance between a consumer's actual and desired states.
• Motive Inner state that directs a person toward the goal of satisfying a need.
• Maslow's Hierarchy of Needs
• Developed by psychologist Abraham H. Maslow
• Identifies five levels of human needs.
• Person must at least partially satisfy lower-level needs before higher-level
needs affect behavior.
MOTIVATION RESEARCH
PRESENTED BY: ZAHIDAH NADEEM
SAP ID: 39423
INTRODUCTION
• Motivational Research is to identify and understand the aspects of
the consumer that they do not fully comprehend.
• It makes the assumption that there are hidden or unconscious
motivations influencing consumer behavior.
• Motivation Research is currently famous phrase for using psychiatric
and psychological procedures to understand better why individuals
react the way they do to products, advertisements and other
marketing scenarios.
• Motivational Research is consumer research it prompts the
consumers inhibited and repressed motives.
FREUDIAN PSYCHOANALYTIC APPROACH:
Strong Symbolic
inhibitions meanings

Subconscious
Mind

Complex and Surrogate

unclear motives behaviors
PROBING THE MINDS OF CONSUMERS

In-depth interviews Association tests

Projective
techniques Focus groups
THE PSYCHOANALYTIC APPROACH:
Pros Cons
Reveals hidden Qualitative results
feelings, drives and from very small
fears samples

Highlights
importance of
Motivation Varying, subjective
Research interpretations
symbolic factors

Shifts attention from

Difficult or impossible
“what” to “how” and
to verify or validate
“why”
 Techniques of Motivation Research:
• All marketing activities require motivational research. The motivational study employs
the following techniques:
Observation Technique
• Consumer motivations can be deduced from their communication and actions. The
researcher uses this strategy to observe consumer behavior without revealing their
name. This procedure does not include any interviews.
• Under this technique, the researcher may obtain relevant data or information
individually using mechanical aids. This technique is appropriate for researching the
purchasing process of consumers.
Depth Interview Technique
• The researcher uses this strategy to conduct an intense interview.
• Interview transcripts are then thoroughly examined, along with comments on
respondents’ moods and gestures they may have used to express attitudes or
motives.
• Such studies are appropriate for giving the market a head start on potential appeals.
 CONT...
Self Reports Technique
• In this technique, the researcher merely verbally inquires about the respondent’s
intentions, objectives, and needs or through a questionnaire.
• This technique has two measure restrictions:
• First, people must be conscious of their actions’ causes or motivations.
• Second, respondents might explain their words or actions. Respondents could be reluctant
to disclose their genuine intentions and might be prone to providing socially acceptable
answers.
Projective Techniques
• Projective techniques aim to expose an individual’s genuine emotions and intentions.
Some important projective techniques are as under:
• Thematic Apperception Test (T.A.T)
• Word Association
• Sentence Completion
• Third Person Technique
• The Paired Pictures Test.
 Marketing &
Advertisement

SANA AL SEHAR
28511
What is Marketing?
 Purpose & Goal of Marketing

• Marketing is the process of getting people interested in your

company's product or service.
• This happens through market research, analysis, and
understanding your ideal customer's interests.
• Marketing provide all aspects of a business, including
marketing strategies and plans implement through sales and
advertisements.
Marketing Communication

• Marketing communications (also known as marcom) is

the messages & medium that marketers use to
communicate with target markets.
• Examples of marketing communications include
traditional advertising & direct marketing.
It will be interesting to see
where marketing continues
to grow. With new world
events, like the COVID-19
crisis of 2020 causing
millions of people to stay in
doors, social media and
marketing trends are sure to
change, and we’ll be right
here to track them.
 History Of Marketing
• 1450-1900
Printed advertisement
• 1920-1949
New media
• 1950-1972
Marketing is born & grows
• 1973-1994
The digital era flourishes
• 1995-2020
The era of search engines & social media
Marketing Mix strategy

• the Marketing Mix is used to

shape brand strategies
through factors unique to
each business
• Spotify: offering an
alternative user experience
Objectives of Marketing Strategy
To create an effective marketing strategy, you need to do four things:
• Understand who buys your products or services (who are your
customers?)
• Understand how to motivate these people to buy/continue to buy your
products or services
• Understand who your competitors are and what they’re doing to achieve
the same objectives
• Understand how to measure the success of your marketing campaigns
and efforts.
Marketing Mix theory (4ps)

• Marketing Mix is a tool used by businesses and

Marketers to help determine a product or brands offering.
• The 4 Ps have been associated with the Marketing Mix
since their creation by E. Jerome McCarthy in 1960.
Marketing Mix theory (7ps)
In the late 70’s it was widely acknowledged by Marketers that the
Marketing Mix should be updated.
This led to the creation of the Extended Marketing Mix in 1981 by
Booms & Bitner which added 3 new elements to the 4 Ps Principle. This
now allowed the extended Marketing Mix to include products that
are services and not just physical things.
• People
• Process
• Physical Evidence
 SWOT Analysis Theory

• Albert Humphrey was an American business and management

consultant.
• During his work at the Stanford Research Institute (1960 – 1970), he
produced a team method for planning which was named SOFT
analysis, this has developed into what we now know as a SWOT
analysis.
• Most Common Example of SWOT analysis is (NIKE Brand)
Benefits
• Increased visibility & Awareness
• Improved customer based
• Access to new market
• Improved employee morale
• Greater revenue diversity
• Brand lyality and trust
Limitations
• Marketing create needs
• Marketing creates a lot of
promotion
• It affects society at large
• Marketers overlook morale and
ethical objectives
Advertising (TV, radio,
press, PPC)
If marketing is a wheel, advertising is one
spoke of that wheel.
"Advertising is a branch of marketing that uses
ad campaigns to present your brand, product,
service or idea to the world"
In 1922, the first radio advertisement was aired
in New York, promoting apartments in
Jackson Heights. Video came next, but luckily,
it didn’t quite kill the radio star.
Objectives of Advertisement

• To inform
• To persuade
• To Remind
 Types or Medium of Advertisement

• There are many ways to advertise, including online methods,

such as PPC ads and social media ads, as well as more
traditional methods like TV, radio, billboard ads and
QR codes.
• As with social media marketing, choosing the
right advertising platforms means accounting for your target
audience’s demographics and interests.
1. Digital Advertisement: it shows ads over digital devices
and the internet
2. Outbound Advertisement: it comprises wraps, flags,
banners, and hoardings
3. Broadcast Advertisement: ads on the TV and radio
4. Print Advertisement: ads on the brochure, magazines,
newspapers, and other media channels
5. Product/Brand Integration: putting ads on various media
platforms like YouTube videos and TV shows, etc.
Hierarchy of Effects Model
The model of Clow and Baack clarifies the objectives of an advertising
campaign and for each individual advertisement. The model postulates six
steps a buyer moves through when making a purchase:
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase
 This model is linear, sequential model
built on an assumption that consumers
move through a series of cognitive
(thinking) and affective (feeling) stages
culminating in a behavioral (doing e.g.
purchase or trial) stage.
Advantages Disadvantages

• Increase demands • Increases the cost

• Help in brand building • Confuses the buyer
• Play a key role in product • Can be misleading
launch • Can waste resources
• Boost confidence • Multiple customer needs
• Attract new customers
• Reduce customer turnover
• Educates customer
https://youtu.be/Euxj_knsXMk
Factor effecting effectiveness
of advertisement
ZOHA SHAHID
40635
Advertisement
•Source of communication between the customer and
the advertiser
•Paid Marketing
•A public communication that promotes a product,
service, brand or event
Several factors can significantly impact the effectiveness of
advertisements.
•Understanding and considering these factors can help
advertisers create more impactful and successful campaigns.
Such as,
•Budget
•Media selection
•Target audience
•Timing, etc.
•A budget is a financial plan that outlines the
estimated income and expenses for a specific
period.
The budget determines how much can be spent on
creative development, media placement, production,
and other elements of the advertising process.
The budget available is indeed of great importance in
advertising
•Reach and Frequency
•Media Selection
•Creative Production
•Ad Placement and Timing
Media availability

The accessibility and presence of various media

channels or platforms for advertising purposes.
Media selection
•Choosing the most appropriate channels or platforms
through which to deliver your advertising message to
your target audience
•Traditional Media
•Social Media
•Streaming Services
•It involves evaluating various media options based on
factors such as audience demographics, reach, cost,
message delivery capabilities, and campaign
objectives.
•In the context of Pakistani TV ads, media selection
could involve considering popular TV channels that
have high viewership and cater to the target audience
Target Audience

Identifying and understanding the target audience is

essential for creating effective advertisements.
•Demographics
•Psychographics
•Behaviors
•Needs and Pain Points
1. A company produces a line
of athletic shoes designed for runners.
1. Shan Foods
2. Surf Excel
One famous Surf Excel
advertisement is the
"Daag tou achay hotay hain"
(Stains are good) campaign
Message relevance & Creativity

Content and message align with the interests, needs, and

preferences of the target audience.
When the message is relevant, it resonates with the audience
and increases the effectiveness of the advertisement.
•Creativity plays a significant role in making advertisements
stand out and capturing the audience's attention
• Understanding Audience Needs
• Addressing Audience's Pain Points
• Keeping Up with Trends
Example
•Telenor 4G
“jo Har Pakistani Chaya”
•Zong 4G
The Pakistani way, ft Jason Roy (2020)

The creative execution of these ads is emotional and

heartwarming, showcasing the power of technology to
bring people closer together.
Emotional APPEAL
•Emotional appeal in advertising is a technique used to
connect with the audience on an emotional level,
tapping into their feelings, desires, and values.

•This connection can influence consumer behavior and

help build a positive perception of the brand.
•Tapal and Sooper
(During Independence Day celebrations in Pakistan)

•NIKE find your greatness

( 2012 summer Olympics)

•Shan Food (Eid special )

Clear communication
Is essential to effectively convey a brand's message and
ensure that it is easily understood by the target
audience.
•Mobile phone brand
•An ad for a banking institution may clearly
communicate its commitment to customer service,
trust, and financial security.
•Timing of Ads
•The timing of an advertisement can also play a role in
its success.
•If the advertisement is not shown at the right time,
it may not reach its intended audience or may be
overlooked.
•Example

Advertisement during live Cricket

During popular TV shows

By doing so brands are able to reach out to their target

audience at a time when they are most likely to be
engaged and receptive to the message.
Cultural and social factors
•Cultural and social factors play a significant role
in advertising and media selection.
•Cultural factors influence the way people
perceive, respond to, and engage with advertising
messages
Measurement and feedback
•The process of evaluating the effectiveness of an
advertising campaign and obtaining insights and
feedback from the target audience.
Conclusion
By taking these factors into account and tailoring
advertisements accordingly, advertisers can increase the
chances of creating impactful, relevant, and memorable
campaigns that resonate with their target audience, generate
interest, and drive desired actions
• https://studiousguy.com/factors-affect-marketing-advertising
• https://www.researchgate.net/publication/269860719_Examining_di
fferent_factors_in_effectiveness_of_advertisement