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Consumer Psychology | Psychology for UPSC Optional (Notes) PDF Download

The Physical Environment 


Retail/Leisure Environment Design

  • Turley and Milliman (2000) argue that retail environments can be categorized as either enticing, leading to approach behaviors, or alienating, resulting in avoidance behaviors. The probability of customers making purchases is influenced by external and interior variables, layout and design, point of purchase, decoration, and human factors.
  • Among the various interior variables, music plays a crucial role, and recent studies have also explored the impact of aroma. Additionally, lighting is associated with the store's image, influencing customers' perception of the establishment.
  • Strategic layout designs can effectively highlight important, new, or high-priced products, while also increasing the likelihood of impulse purchases. Attractive product displays further enhance this probability, and the allocated space for each item communicates its significance.
  • Finlay et al. (2006) conducted a quasi-experiment to examine the effects of general interior variables on casino customers. Participants were exposed to two different casino layouts: one emphasizing nature and relaxation (Kranes) and the other focusing more on machines (Friedman). The researchers found that Kranes' layout evoked feelings of relaxation and intimacy, leading to higher sales and increased customer engagement with the games.
  • Vrechopolous et al. (2004) suggested that the design of virtual stores is equally important to physical stores. They investigated the effects of three different layouts (free-form, grid, and racetrack) on 120 participants from the UK and Greece who were given £20 to spend in online stores. The findings revealed that customers preferred the free-form layout, which made their shopping experience more enjoyable, while the traditional grid layout proved to be less effective. These results indicate that organizations should adopt a flexible approach to store design to maximize profitability.

Evaluation

  • The identification of various variables by Turley and Milliman suggests that companies can make more informed decisions regarding new store layouts and strategic designs to enhance profitability.
  • However, the use of a quasi-experiment by Finlay may have led to potentially incorrect causal conclusions. This is because this experimental design lacks the highly controlled conditions typically associated with a laboratory experiment, thus failing to account for the biasing effects of extraneous and confounding variables.
  • These three theories have practical implications for real-world applications, particularly in enhancing the design of retail and leisure environments. Implementing these theories can lead to increased sales and an enhanced company image.

Sound and Consumer Behaviour 

  • North et al. (2003) conducted a study that demonstrated how classical music can contribute to the highest profitability in a restaurant. The researchers analyzed the mean amount of money spent by customers over a three-week period and found that the group exposed to classical music spent significantly more compared to the groups exposed to pop music or no music. Further statistical analysis revealed that the classical music group also spent more on starters and coffee, suggesting that the classical music complemented the overall upscale ambiance and decor of the restaurant.
  • North and Hargreaves (1998) found that classical music can still increase average spending even when it is not synergistic with other aspects of the dining area. They conducted a study in a school canteen, demonstrating the positive impact of classical music on customer spending.
  • Gueguen et al. (2007) conducted a field experiment in open-air retail environments, specifically at a stall, to examine the effects of music. The researchers found that customers stayed at the stall for an average of 1.55 minutes longer when music was played compared to when there was no music. Additionally, customers bought approximately 8% more goods in the presence of music. This effect may be attributed to music distorting our perception of time.
  • In a laboratory experiment conducted by Woods et al. (2011), it was discovered that sound significantly influences an individual's perception of the taste of food. The study revealed a negative correlation between the volume of music in a retail setting and the perception of sweetness and saltiness in food. This suggests that certain retail environments can adversely affect tastes that are typically unaffected by sound. The study also found that louder music led to increased ratings of the crunchiness of food.

Evaluation

  • Increased understanding of the impact of music on retail environments has significant practical implications. This allows companies to make more informed decisions about the choice of music based on other environmental factors and the nature of their products.
  • It is important to consider the limitations of studies in which music is played in open-plan areas, as this is a relatively uncommon occurrence. This particular limitation should be taken into account when evaluating the work of Gueguen et al.
  • The use of field and quasi experiments presents methodological limitations. The absence of highly controlled conditions increases the likelihood of uncontrolled confounding and extraneous variables, which can bias the findings. Therefore, caution should be exercised when drawing causal conclusions based on these types of studies.

Lighting, Colour and Smell

  • According to Mehrabian and Russel (1974), carefully selected aromas can act as intermediaries between environmental cues and our subsequent behavior, positively shaping our behavior in a favorable manner.
  • Lazarus' (1966) cognition-emotion model suggests that scents can influence the emotions experienced by customers upon entering a store and their perception of the environment.
  • Kutlu et al. (2013) discovered that lighting color schemes were important to 75% of the 121 participants in their study, with the majority reporting a sense of style and luxury. This finding supports the strategic use of lighting and color to increase sales.
  • In a field experiment conducted by Chebat and Michon (2003) that investigated the effects of odor on emotional arousal of customers in a retail environment, the researchers found that scents have a significant impact on customers' perception of the store, particularly when it is an ambient scent. This, in turn, leads to increased store sales and profitability.

Evaluation

  • Field experiments conducted by Kutlu and Chebat and Michon enhance the ecological validity of their findings as they study behavior in natural environments, minimizing the influence of demand characteristics and participant reactivity that could bias the results.
  • However, the lack of control over confounding and extraneous variables reduces the validity of the conclusions drawn. Establishing a reliable cause-and-effect relationship between variables/outcomes becomes increasingly challenging under these circumstances.
  • The studies mentioned above raise potential ethical concerns regarding privacy, possibly breaching the guidelines outlined by the British Psychological Society (BPS). While many shoppers may not object to having their behavior monitored during shopping, aspects such as the amount of money spent and specific purchase details can be considered private. This could lead to feelings of embarrassment or modesty for some individuals.

The Psychological Environment 


Environmental Influences on Consumers

  • Mackay and Olshavsky (1975) conducted a study involving 78 supermarket shoppers in Indiana to examine the effects of cognitive maps. Participants were asked to rate eight local supermarkets based on price, distance, store size, and quality. After drawing a map showing the location of these supermarkets relative to their home or workplace, the researchers found that preferences had a stronger influence on map-drawing than the actual behavior exhibited by each participant.
  • Machleit et al. (2000) investigated the impact of crowding in retail environments and discovered that overcrowding leads to increased negative emotions, lower levels of satisfaction, and reduced expectations among consumers. These findings suggest that individuals have different tolerances for crowding, which affects their stress levels. The effect of crowding is less pronounced in discount stores but more significant in luxury brands.
  • In a quasi-experiment conducted by Gil et al. (2009), shopper movement patterns in a supermarket were studied without manipulating any variables. Shoppers were tagged for identification through CCTV, and researchers interviewed them regarding their spending behavior and purchased items. The study identified five different shopping movement patterns: the raider, explorer, tourist, native, and specialist.

Evaluation

  • Mackay and Olshavsky conducted their research within a controlled laboratory experiment. This approach ensures that conditions are highly regulated, minimizing the influence of extraneous and confounding variables. Consequently, the validity of the drawn conclusions is increased.
  • Gil et al. employed a quasi-experimental design, offering the advantage of findings with high ecological validity. By refraining from manipulating the independent variable, the study reduces the potential impact of participant reactivity and researcher bias. Moreover, data is collected in a natural environment, diminishing the influence of demand characteristics.
  • Understanding cognitive maps and their influence on consumers' perception of brand quality holds practical applications in real-life settings. Further research in this area can enhance comprehension and inform store design based on customers' cognitive maps. Additionally, the study of shopper movement patterns can be employed by retailers to enhance impulse buys by strategically guiding customers toward specific areas and providing a variety of products near the checkout.
  • It is noteworthy that the majority of these studies have been conducted within Western cultures, including the UK and the USA. Consequently, it is essential to consider the influence of individualistic cultural norms on spending behavior in contrast to collectivist cultural norms.

Menu Design Psychology

  • According to Pavesic (2005), menu design holds the potential to increase customer spending and loyalty, emphasizing the significance of attention to detail. Factors such as layout, font size, menu item quantity, and thematic consistency with the restaurant can all contribute to this effect. Seaberg (1971) further expanded on this idea, suggesting that directing customers' attention to specific items, particularly those with higher profit margins, is crucial for maximizing profits.
  • Dayan and Bar-Hillel (2011) conducted research on the impact of primacy, recency, and menu item positions. Their findings revealed that customers are more inclined to select items positioned at the top or bottom of the menu rather than those in the middle (56% preference). In a separate study involving 951 orders, the most frequently chosen items were located at the menu's "extremes," namely the topmost and bottommost positions.
  • Wansink et al. (2005) examined the connection between sensory perception and the labeling of menu items. Their study indicated that substituting traditional labels with "new" labels (nostalgic labels with geographical references) altered customers' perception of the food, making it appear more appealing while also perceived as having more calories. This suggests that the use of descriptive food labels can enhance sales and improve customers' perception of the restaurant and its cuisine.

Evaluation

  • The studies mentioned above have been replicated multiple times, increasing the reliability of the findings and reducing the likelihood that they were isolated incidents or influenced by uncontrolled variables. This enhances the validity of the conclusions drawn from the research.
  • Dayan and Bar-Hillel's study involved deceiving participants by not disclosing the true purpose of the study. This raises ethical concerns as informed consent was not obtained, violating two ethical guidelines set by the BPS. Furthermore, participants being aware of being monitored may have led to biased findings due to participant reactivity, where individuals consciously alter their behavior to align with researcher expectations.
  • Quantitative data collection is valuable as it allows for objective interpretation and statistical analysis, enabling the assessment of the significance of the findings. On the other hand, qualitative data provides richer descriptive detail and deeper insights into the customer's experience, which can be particularly valuable for companies seeking to make specific improvements to enhance the customer experience.

Personal Space 

  • Somner (1969) proposed a classification of personal space into four zones: intimate space, personal space, social space, and public space. These zones are characterized by invisible boundaries, and respecting these boundaries is essential to minimize stress and potentially increase sales in a retail environment. Felipe and Somner (1966) demonstrated that individuals are likely to withdraw from social situations if their personal space is invaded by others.
  • Personal space is closely related to the concepts of overload, arousal, and behavioral constraint. When someone invades our personal space, we experience an information overload (such as observing the other person's facial features and expressions), heightened arousal, and a questioning of our freedom to act.
  • Robson et al. (2011) conducted a study to examine the importance of personal space, particularly in restaurant settings. They found that close table spacing diminished the quality of the customer's experience, increased feelings of stress and crowding, and reduced privacy. Conversely, distant table spacing (around 24 inches) had the opposite effects. Gender also played a role, as women were more sensitive to crowding and lack of privacy, leading them to spend less time and money in the restaurant.
  • Milgram et al. (1986) investigated the phenomenon of defending one's place in a queue. In their study, participants were confronted by a confederate who attempted to join the queue. The researchers manipulated the number of intruders and "buffers" (people placed between the intruder and the participant). The findings revealed that participants were more likely to confront an intruder if they were behind them in the queue, rather than in front. This resulted in instances of physical and verbal abuse, such as pushing the intruder or verbally asking them to leave. These confrontations were not always hostile, and non-verbal signs, such as disapproving looks and glares, were also observed. This highlights that queues can be considered social systems where respect for each person's position is assumed.

Evaluation

  • Robson et al.'s study had limited ecological validity due to participants being asked to imagine a scenario rather than experiencing a real-life situation. Therefore, the findings may only be applicable within the specific context of the research setting.
  • In contrast, Milgram et al.'s study exhibited higher ecological validity as it was conducted in a field setting, capturing behavior in a natural environment. This enables a more valid establishment of a cause-and-effect relationship between the variables, while also considering individual participant characteristics like age and gender.
  • An improved understanding of this research has practical implications for designing retail environments strategically. By enhancing customers' perception of personal space, reducing stress, and increasing their willingness to spend time and money, businesses can enhance profitability.
  • It's important to note that the majority of the studies discussed were conducted in individualistic cultures. The cultural norms surrounding personal space and queue etiquette may vary in collectivist cultures, indicating limited cross-cultural validity for these findings, specifically in Western/individualistic cultures.

Consumer Decision Making


Consumer Decision-Making 

  • Neumann and Morgenstern's utility theory proposes that consumers make rational decisions to maximize positive outcomes, while Simon suggests that consumers often opt for a product that is "good enough" for their needs without extensive research. Kahneman and Tversky's Prospect Theory emphasizes the role of value and endowment in consumer decision-making, acknowledging that individuals have varying perceptions of these concepts.
  • Businesses have adopted different approaches to understand the stages involved in consumers' purchasing decisions. Green and Wind categorize these stages as compensatory, non-compensatory, and partially compensatory. In contrast, Richarme proposes three non-compensatory strategies (satisficing, elimination, and lexicographic) and two partially compensatory strategies (Majority of Conforming Dimensions and Frequency of Good and Bad Features).
  • Richarme also explains the consumer decision-making process in terms of consideration (creating an initial list of products) and involvement (suggesting that the cognitive effort invested in a decision is directly related to its significance).

Evaluation

  • Companies can capitalize on an enhanced understanding of the cognitive processes that drive consumer decision-making to boost profitability. For instance, Jedelski et al. (2002) propose leveraging easily accessible online stores/websites as a means to achieve this.
  • One limitation of utility theory is its failure to account for individual differences, as it assumes that all consumers act rationally. However, Kahneman and Tversky highlight that people have diverse perceptions of value and endowment, leading to varying decision-making patterns. Consequently, some individuals may be perceived as "irrational" by others. It is important to note that these explanations can be viewed as complementary rather than opposing theories.
  • The generalizability of the aforementioned findings may be limited to Western or individualistic cultures. The norms surrounding consumer spending habits and preferences can significantly differ in collectivist cultures, such as China and India. Therefore, caution should be exercised when applying these findings across diverse cultural contexts.

Choice Heuristics 

  • Heuristics serve as cognitive shortcuts that help us avoid sensory overload and process information efficiently. However, they can also introduce perceptual errors by distorting sensory stimuli. The concept of availability heuristics, which refers to our immediate perception of a brand or product, was examined by Hoyer et al. (2009). Their study revealed that negative availability heuristics, such as believing that a low-quality top will quickly lose its shape, result in a negative perception of the brand or product. This effect can be influenced or overcome by incorporating information from others, such as their personal opinions, to revise our perception of base rate information (how frequently an event occurs). Availability heuristics work in conjunction with representative heuristics, which involve mentally comparing a product with the best alternative that comes to mind.
  • Wansink et al. (1998) investigated the impact of anchoring and purchase quantity decisions. Their research suggested that consumers are more likely to spend a greater amount of money when promotions emphasize larger quantities of items to purchase rather than individual prices. The study demonstrated a 32% increase in sales when the former approach was employed. However, the researchers acknowledged the potential role of consumer confusion in explaining these findings.
  • Wansink et al. also explored the effects of purchase limits in a study conducted across three supermarkets in Iowa, where a limit of 12 items per customer was implemented. The results indicated that consumers purchased an average of 3.7 more cans of soup when the advertised purchase limit was set at 12 compared to when there was no limit. This suggests that purchase limits can alter a consumer's perception of value and worth, as a higher limit implies a more advantageous deal.
  • Knutson et al. (2007) investigated the influence of pre-cognitive decisions in the consumer's decision-making process. Participants were asked to determine the price of an object after separately viewing the object and the price for four seconds each. The study involved 26 healthy right-handed adults. The researchers observed a mean number of objects purchased at 23.58 and identified a negative correlation between increasing preference and decreasing reaction time. These findings suggest that prolonged reaction times indicate a conflict of interest for the consumer, such as perceiving the item as too expensive or lacking practical value.

Evaluation

  • Heuristics play a crucial role in fostering customer loyalty towards a specific brand by ensuring the availability and accessibility of the customer's preferred products.
  • By gaining a deeper understanding of anchoring, purchase quantity decisions, and pre-cognitive decisions, companies can strategically design promotions and implement purchase limits to optimize their profitability.
  • However, a limitation associated with field studies, such as the one conducted by Wansink et al., is the lack of control over confounding or extraneous variables that may contribute to changes in spending, potentially overshadowing the influence of the purchase limit. Factors like customer fatigue, mood, and financial situation can diminish the validity of the conclusions drawn from such studies.

Intuitive Thinking and Its Imperfections

  • According to Kahneman and Tversky (1979), there are two distinct thinking systems: system 1, characterized by fast and intuitive thinking with minimal effort, and system 2, characterized by slow and deliberate thinking that requires conscious effort. Heuristics are closely associated with these two systems, particularly the anchoring heuristic, which involves the influence of irrelevant information. Similarly, the representativeness heuristic is linked to system 1 thinking, where individuals may disregard the frequency of certain events and make incorrect judgments as a result.
  • The phenomenon of choice blindness was examined in a study by Hall et al (2010). Participants in Sweden sampled different flavors of jam or tea at a supermarket stall, unaware that the flavors of the items were swapped. Participants were then asked to indicate their preference between the two options. The study revealed three types of behaviors: concurrent detection (immediate recognition of a difference), retrospective detection (awareness of the change without voicing it), or sensory-change detection (reporting no specific change). On average, 33.3% of the manipulated trials were detected, with slightly higher detection rates for jam compared to tea. The rate of detection was lower when the flavor pairs were more similar, highlighting the prevalence and impact of choice blindness in commercial settings.
  • Braun-LaTour et al (2004) conducted research on advertising and false memory. Participants were presented with a Disneyland advertisement that included an incorrect character (Buggs Bunny) instead of Mickey Mouse. The majority of participants did not notice the incorrect character and assumed it was Mickey Mouse. Introducing false information about Buggs Bunny increased the likelihood of participants reporting this incorrect memory by 15%, demonstrating the influence of false advertising on memory. The study also explored the impact of false information presented in verbal or pictorial form. The findings showed that false information presented pictorially had a greater impact on memory compared to verbal cues alone. Participants remembered more items when pictorial information was provided (76% accuracy) compared to when only verbal cues were used (46% accuracy).

Evaluation

  • The concepts of choice blindness and thinking systems highlight the inherent flaws in human cognition, which can be exploited by advertisements and companies. Choice blindness reveals that most individuals are unlikely to notice differences in products from the same brand, and even if they do, they are unlikely to voice their observations.
  • These concepts also underscore the significant influence of advertising and labeling. Simple changes in brand presentation can create the perception of luxury or budget, thereby shaping consumers' perceptions of the brand.
  • The phenomenon of false memories holds significant implications in the legal system, particularly in reevaluating the reliability of eyewitness testimony. Loftus and Palmer (1974) conducted research in this area, shedding light on the potential fallibility of memories and its impact on legal proceedings.

The Product


Packaging, Positioning and Placement

  • Howard (1992) proposed that gift wrapping serves as a direct symbol of an item being a gift, while Poruvleb et al (2009) raised questions about this assumption. They explored various ways of wrapping gifts, including unconventional and conventional methods, and conducted a study on the impact of wrapping on the recipient's mood. The findings revealed that the majority of individuals have a preference for wrapped gifts, regardless of environmental or financial considerations. Factors such as fear of embarrassment and a desire to play it safe were cited as key reasons for this preference. Overall, the conclusion was that gift wrapping plays a crucial role in signaling that an item is a gift and helps establish social roles between the giver and receiver.
  • Grossman and Wisenblit (1999) examined the significance of product color and the role of associative learning. They demonstrated how classical conditioning, which involves learning through associations, can explain why certain colors become linked to specific products. For example, we associate white with washing machines and green with lawnmowers. These associations influence our perceptions and expectations associated with these products. Additionally, these color associations can elicit physiological reactions, such as yellow being associated with warmth and happiness. This understanding can be harnessed by retail stores to create specific atmospheres within their shops.
  • The research by Holmes and Buchanan (1984) supports the idea that individuals have color preferences specific to certain products. This suggests that associations between colors and objects have different meanings and attributes for different individuals, which can play a crucial role in decision-making processes where consumer involvement is minimal.
  • Atalay et al (2012) conducted a study on the relationship between attention and shelf position using eye-tracking devices. They found that brands positioned in the center of shelves received higher rates of eye fixations over a longer duration, indicating greater consumer attention. This increased attention translated into a higher likelihood of choosing these items and, consequently, increased profitability for the brands. The study also revealed that even if the central product was not in the individual's central visual field, it was still more likely to be chosen compared to products at the ends of the shelves.

Selling the Product: 

  • 'Solution-selling' is a marketing approach that positions products as solutions to common problems, aiming to make people's lives easier. Another method is competitor-focused marketing, commonly employed by supermarkets that compete with each other through price-matching and loyalty card schemes. A third technique is product-focused, emphasizing the merits of the product such as quality and utility, while disregarding customer needs and competitor dynamics.
  • Kardes (2007) introduced the concept of the 'disrupt-then-refute' (DTR) technique, where customers are initially presented with a confusing message that is then clarified. In a supermarket experiment, two groups of confederates approached customers advertising candy either as "100 cents - that's 1 dollar!" (DTR group) or simply as "1 dollar" (control group). The findings revealed that the DTR group purchased 21% more candy than the control group. This suggests that the DTR technique can effectively engage customers by initially creating confusion and subsequently providing clarity, leading to increased consideration of the advertised offer or product. The researchers also identified a positive correlation between NFCC (a measure of indecisiveness) and the extent to which individuals are influenced by DTR.
  • Cialdini (1984) proposes several persuasive methods that can be utilized to encourage customers to make a purchase. These techniques include reciprocity, commitment, consistency, liking, authority, social proof, and scarcity (particularly evident during events like Black Friday sales).

Buying the Product: 

  • The theory of planned behavior proposes that there is a positive relationship between increasing intention and the likelihood of a customer making a purchase. However, this can also explain why some individuals may have a flawed perception of behavioral control, as intentions are influenced by subjective norms and attitudes, as described in Azjen's theory of planned behavior.
  • According to the stimulus-response model, marketing stimuli and other stimuli contribute to the buyer's characteristics and their decision-making processes, leading to various possible responses from the buyer, such as product choice, retail choice, and purchase frequency.
  • Buyer characteristics encompass cultural, social, personal, and psychological factors. Engel, Blackwell, and Kollat (1968) propose that the consumer's decision-making process can be understood as identifying a problem, seeking information about potential solutions, evaluating alternative options, making a specific purchase decision, and engaging in subsequent post-purchase behavior.

Evaluation

  • Poruvleb et al. demonstrated the crucial role of gift wrapping in establishing the social dynamics of gift-giving. This finding has practical and economic implications for retailers, as packaging products as gifts creates a positive association and increases the likelihood of customers purchasing them as gifts.
  • Focus groups play a significant role in gathering data about products and brands, serving as a valuable starting point for potential product improvements. However, it is important to acknowledge that focus groups can still be influenced by cultural biases and situational variables, as highlighted by Atalay et al. In such cases, objective measures like eye-tracking technology may provide more reliable insights into product appeal compared to subjective opinions from focus groups.
  • Gaining a better understanding of selling techniques, particularly in relation to customer needs, is essential for improving sales, profitability, and informing marketing strategies that can be reassessed in various areas.
  • The studies mentioned above underscore the importance of situational variables. This is evident, for example, in the use of the disrupt-then-refute (DTR) technique, where retailers can leverage initial customer confusion to their advantage.
  • Rating scales offer a convenient means of collecting large amounts of data with relatively minimal effort on the researcher's part, as they do not need to be present when customers complete the scales. However, rating scales are susceptible to demand characteristics such as social desirability bias and acquiescence bias.
  • Understanding the consumer decision-making process has practical real-life applications for retailers. They can tailor their advertising and marketing efforts to emphasize how choosing to purchase a particular item or service can positively impact customers' lives based on their needs and intentions.

Types of Advertising and Advertising Techniques: 


Persuasive Techniques 

  • Wilson and Brekke (1994) suggest that people tend to believe that advertising does not affect them personally, but it impacts others.
  • Achieving a balance between captivating visual stimuli in advertisements and conveying the intended message is crucial. Retailers cannot rely solely on customers remembering the advertisement without associating it with the brand or message.
  • McCarthy (1960) identifies the key elements of effective marketing as the product (its nature), place (where it can be purchased), price (its value and necessity), and promotion (how it is promoted). On the other hand, Lauterborn (1990) suggests that effective marketing revolves around customer wants or needs, the cost of satisfying them, convenience in purchasing, and communication.
  • Auty and Lewis (2004) conducted a study on the effectiveness of product placement in films, particularly in relation to recognizable brands of soft drinks or alcohol consumed by characters. Different age groups, including limited processors (6-7 year olds), cued processors (11-12 year olds), and strategic processors (12+), watched the same film clip of Home Alone and were offered Pepsi and Coca-Cola while answering questions (implicit preference test). The findings revealed that participants in the experimental group were significantly more likely to choose Pepsi over Coca-Cola compared to the control group, despite Coca-Cola's dominant market share in the UK. This study highlights the significant influence of product placement, to the extent that it can influence individuals to deviate from established market norms.

Communication and Advertising Models 

  • The credibility and trustworthiness of an advertisement play a significant role in determining the likelihood of purchasing a product. Boyd-Jannson (2010) suggests that using experts enhances credibility, while featuring ordinary people expressing their opinions on the product enhances trustworthiness, allowing average consumers to relate to the product and the advertisement. However, caution must be exercised when using celebrities as endorsers, as excessive commitments can diminish their perceived trustworthiness, which is counterintuitive in such circumstances.
  • Effective marketing techniques involve repetition and consistency of the message, accompanied by distinctive imagery and an acknowledgment of existing views or opinions about the product.
  • The AIDA model proposes four levels of significance and influence in persuading consumers to purchase a product: Awareness, Interest, Desire, and Action. The CAB model (Cognition, Affect, and Behavior) and the TIREA scale (Thoughts, Interests, Risk, Engagement, and Action) further modify this model. The REAN model suggests that effective marketing should consider the customer life cycle, focusing on reaching, engaging, activating, and nurturing customers.
  • The Hierarchy of Effects Model, proposed by Lavidge and Steiner (1961), explains marketing communication through six stages: Awareness, Knowledge, Liking, Preference, Conviction, and Purchase. These stages can be condensed into three aspects of consumer behavior and the life cycle: cognitive, affective, and conative.

Advertising Applications

  • Fischer et al (1991) conducted a study on brand recognition in children, examining their awareness of 22 brand logos, including 10 brands stereotypically associated with children such as Coca-Cola, Walt Disney, and Nike. The study involved 229 children who individually played a game matching cards with the logos onto a board. The researchers discovered that brand recognition improved with age, as younger children showed better recall of typically "childlike" brands (e.g., The Disney Channel - 91%), while 91% of 6-year-olds recognized Old Joe the Camel, which was 61% higher than 3-year-olds. The surprising finding that even 6-year-olds could recognize cigarette brands highlights the influence of TV advertising on children.
  • According to Synder and DeBono (1985), an individual's level of self-monitoring affects how product images and quality appeal to them. In a study with 50 male and 50 female participants, all exposed to three advertisements (Canadian Club Whiskey, Barclay cigarettes, and Irish Mocha Mint coffee), participants completed a 12-question questionnaire. The researchers found that individuals with high levels of self-monitoring found image-oriented advertisements more appealing, while those with low levels of self-monitoring preferred quality-oriented advertisements. The former group also showed a willingness to pay significantly more for products compared to the low self-monitoring group, supporting the conclusion that dispositional and personality traits have a significant impact on the appeal and effectiveness of advertisements, which retailers and marketing companies should consider.
  • Kohli et al (2007) investigated the effectiveness of slogans by considering the brand as consisting of the brand name, logo, and slogan. Slogans offer flexibility as they can be easily changed more frequently compared to brand names. Therefore, slogans play a crucial role in brand recognition, increasing brand awareness and shaping the brand's image. Yalch (1981) found that overly complex slogans are challenging to remember, which is counterintuitive, while "jingles" are more suitable for companies with smaller budgets relying on radio advertisements. However, Lagerwerf (2002) demonstrated that puns, especially when repetitive and fun, can help enhance brand awareness.

Evaluation

  • Various individual traits and characteristics can influence participants' product choices in the context of product placement techniques, emphasizing the need to avoid drawing unreliable causal conclusions.
  • However, it is important to consider that Auty and Lewis' study may have been affected by demand characteristics. Given the young age of the participants (the youngest being 6 years old), they may have had difficulty understanding the study's purpose or the reason for watching the film, potentially resulting in confusion and atypical consumer behavior to please the experimenter.
  • The lack of empirical evidence regarding advertising models undermines their reliability and utility. Advertising companies and retailers may be hesitant to base their marketing strategies and advertisements on models that have limited or no evidence supporting their effectiveness.
  • Fischer's study involving children provides valuable insights for retailers and brands to make informed decisions on targeting child customers, who also wield significant influence over their parents' purchasing decisions. The use of a matching game in Fischer's study cleverly circumvented the issue of demand characteristics or the "Please-U effect," as the children viewed the game as enjoyable, leading to typical behavior.
  • The studies mentioned above highlight the importance of adopting an interactionist approach when explaining the effectiveness of advertising campaigns. Dispositional factors, as demonstrated by Synder and DeBono, play a significant role in determining the most effective advertisements. Retailers can leverage this by creating different ads (both quality- and image-oriented) to appeal to the diverse personalities of their customers.
The document Consumer Psychology | Psychology for UPSC Optional (Notes) is a part of the UPSC Course Psychology for UPSC Optional (Notes).
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