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New and Modern Concepts of Consumer Psychology

A Critical Assessment

Written by Anonymous

Grade 1.0

Paper category

Term Paper

Subject

Business Administration>Marketing & Sales

Year

2019

Abstract

Term Paper: Introduction to Consumer Behavior Before analyzing the concepts of traditional and modern consumer behavior, it defines terms such as "consumer", "behavior" and "consumer behavior". In marketing, people (or organizations) who use or consume products or services are considered "consumers" (right, 2006, p. 2). Consumers do not necessarily need to purchase products or services themselves, otherwise they will be regarded as "customers." Nevertheless, in most cases, the customer and the consumer are the same person (or organization) or have a similar cognitive mentality (Right, 2006, p. 489). According to UNESCO, "behavior" can be defined as the behavior or behavior of a person or object related to external or internal phenomena. Therefore, a person’s externally identifiable behavior is a person’s behavior or behavior towards other people, objects, specific events, or general society under specific circumstances. One person's behavior can be considered by others in a positive or negative way. Generally speaking, society tries to correct individual misbehavior and restore it to "normal" behavior (Guez & Allen, 2000, p.9). "Consumer behavior" can be considered as a combination of the two definitions of "consumer" and "behavior". Consumer behavior is considered a decision-making process that combines physical activity or services in the purchase, use, evaluation, and disposal of specific goods (Khan, 2007, p. 2). This definition already implies that consumer behavior involves not only the purchase itself, but also all the activities that lead to the actual purchase (Sethna and Blythe, 2016, p. 6). The buying process starts in the mind of the customer, looking for product alternatives and evaluating the advantages and disadvantages of each product. In addition, post-purchase behavior, regardless of whether the product purchase is considered successful by the customer, also plays a vital role in the company's marketing (Khan, 2007, p. 2.). Consumer behavior analysis further studied this phenomenon and used it in experiments. Acquire behavior principles to explain and understand human economic consumption. From an academic point of view, the subject can be classified as economic psychology and marketing science, the latter focusing on the interaction between consumers and marketers (Foxall, 2001, p. 165). Then transform these explanations into general concepts, which will be introduced in the next chapter. 2.2 The traditional and most advanced conceptual psychology of consumer behavior broke away from philosophy at the end of the 19th century. After that, research on emotions was only controlled by psychology (Wassmann, 2010, p. 25). 2.3 The modern concept of consumer behavior In 2002, a completely innovative concept of consumer behavior was applied in the research. When brain researchers McClure and Montagu experimented with functional magnetic resonance imaging (fMRI), marketers around the world first realized the importance of the concept of neuromarketing. The purpose of this experiment is to find out which areas of the brains of Coca-Cola and Pepsi are activated (Häusel, 2014, p. 11). The measurement results showed that during the blind test, the brain activity between Coke and Pepsi was almost the same, while in the brand-the reminder condition, a significant difference was observed (Madan, 2010, p. 36). Due to these experiments and the further enhancement of fMRI technology, neuromarketing is now a fixed part of consumer behavior research (Renvoise & Morin, 2007, p. 5). Neuromarketing supports defining more complex marketing decisions and inspections, why individuals surf certain websites, their reactions to brands and advertisements, and their perceptions of supermarket shelves. One of the main findings so far is that the brain activity of a specific action takes only half a second before the actual action, which means that most of our decisions are not made consciously. So far, neuromarketing has not eliminated all the traditional strategies and methods of consumer behavior, but the development of this field is making great progress (Kotler et al., 2011, p. 272). In addition, neuromarketing is expected to become an accurate marketing research method that can be applied even before products appear. Data from neuroimaging research shows potential preferences that customers cannot express themselves. This is much more effective than some biased traditional market research. In this way, product concepts can be tested quickly, unqualified products can be immediately excluded from the plan, and resource allocation can be optimized (Ariely & Berns, 2010, p. 286). The possible implementation of neuromarketing methods in the product process is shown in the following figure: There are four main techniques for conducting neuromarketing research. The most common is the fMRI technique mentioned earlier. So-called MRI scanners measure blood oxygen level-related (BOLD) signals. Generally, changes in BOLD values ​​are related to potential synaptic activity, for example through product stimulation (Ariely & Berns, 2010, p. 288). Another commonly used technique is electroencephalography (EEG). Compared with fMRI, this technology is relatively light and portable. By placing multiple electrodes on the participant's scalp in a mesh pattern, EEG examines the electrical activity on the scalp, which is directly related to brain activity (Madan, 2010, p. 36). Read Less