Bsuiness Entrep Simulation LP week 9.pptx

Entrepreneurship

1. Learning Objective: At the end of this two-week module, the student should be able to : Identify the definition of consumer psychology 2. Enumerate the different factors affecting consumer behavior 3. Realize the role of consumer psychology in marketing/business

2. Are you interested in why and how people buy some products and not others? Have you ever wondered how media messages influence a shopper's buying choices? If so, then you might be interested in the growing field known as consumer psychology.

3. Consumer psychology is a specialty area that studies how our thoughts, beliefs, feelings, and perceptions influence how we buy and relate to goods and services. What is consumer psychology?

4. Employs theoretical psychological approaches to understanding consumers . One formal definition of the field describes it as "the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." What is consumer psychology?

5. This field is often considered a subspecialty of industrial-organizational psychology and is also known as the psychology of consumer behavior or the psychology of marketing. •How consumers choose businesses, products and services . •The thought processes and emotions behind consumer decisions . Consumer Psychology as a Profession

6. • What motivates people to choose one product over another . • How personal factors and individual differences affect people's buying choices . • What marketers can do to effectively reach out to their target customers. Consumer Psychology as a Profession

7. A. Conduct market research B. Develop marketing messages C. Research consumer attitudes and behaviors What do Consumer Psychologists Do?

8. A. Conduct market research Figuring out the target audience for a particular product including age, gender, socioeconomic status, etc. Begin research on the types of products and marketing messages that appeal to these types of buyers.

9. Because businesses need to understand their consumers in order to develop products and marketing campaigns that appeal to their target audience , consumer psychologists often spend a great deal of time learning more about what makes shoppers tick. This often involves first figuring out the target audience for a particular product, including the gender, age, and socioeconomic status of the typical shopper.

10. B. Develop marketing messages • Other consumer psychologists might focus on social marketing, or how ideas and messages spread among groups . • Learning how beliefs and attitudes spread among groups can help organizations learn how to better get their message out and encourage word-of-mouth marketing.

11. Solution would be to educate the employees. For instance, you may require all employees to shave their beards – but if the rule is deemed arbitrary and doesn’t actually have anything to do with the employees’ ability to properly do their jobs, the rule can be considered discriminatory on religious or even race grounds.

12. C. Research consumer attitudes and behaviors •Consumer psychologists often conduct research to learn more about buyer behavior. Common research methods used by these professionals include: experiments , phone surveys, focus groups, direct observations, and questionnaires .

13. For example, using a survey might allow researchers to discover that women between the ages of 30 and 45 who have a household income between 50,000 to 100,000 are most likely to buy a particular product or service.

14. activity 1. Project Making. Continue the project in partnership with Entrepreneurship subject

15. 1. What do you think is the most important role that a consumer psychologist play in business?