Psychological

• Overall

  These operate internally, but can be affected by external sociocultural factors, therefore, it's important businesses understand these factors

  Importance for business:

  Cause: if businesses are aware of the factors that influence customer choice, they can predict trends and customer reactions to different marketing strategies

  Effect: this allows markets to create more effective and profitable strategies that appeal directly to the customer’s motives and behaviours

  The more marketers understand how customers are influenced, the more control they have over their choices
• Perception

  the process that peopole use to pilter, organise and attribute meaning to external stimuli

  How people process information

  It is impottant for describing how people see a particular product or brand

  Importance for business: customers don’t usually go for products perceived as inferior, so marketing managers try to create a favourable perception of their product by associating it with positive things

  Advertising can achieve this through the creation of different images for a product
• Motives


  are the reasons that individuals make certain decisions or act in specific ways

  They explain why a customer will choose a product or brand

  For example, comfort, health, saftey and approval are motives that cause customers to choose some products over others

  A 5 star safety rating on a toyota would motive people to buy that car

  Importance for business: advertising can help businesses influence customer choice by attempting to motivate customers to buy products through highlighting relevant motives
• Attitudes

  an individual’s relatively stable and consistent feelings or thoughts towards an object, activity or business

  How people feel about a business or product

  Improtance for business:

  Cause: customer attitudes affect the success of marketing strategies

  Effect: negative attitudes toward a business should change its strategy

  How is this important? Businesses can spread positive word of mouth, creating a more trusting customer attitudes

  Negative attitudes to a busines or its product often force the business to change its strategies
• Personality and self image 1

  (the behaviours and characteristics that make up a person) and Self Image (how a person views themselves, or wants other to view them

  People usually buy products that suit their personalities, or that build the self-image they want to communicate

  Example: a person might buy a Ferrari to convey an image of sophistication or wealth

  Importance for business: marketers take advantage of people’s desire to express themselves by highlighting the value of their products and aligning them to specific personality traits
• Personality and self image 2


  Marketers will maek the most of an individual’s desire to express their dienitty through what they buy by highlighting the image value of their products

  This is why celebrities and sportspeople are regularly used to endorse a product: people want their self-image to be a reflection of those who they regard as important and influential
• Learning

  occurs when new information or experiences cause a change in individual behaviour

  Example: when people learnt smoking isn’t good for you, they stopped buying cigarettes

  Importance of Business

  Cause: businesses who market products successfully assist customers in learning about them, encouraging brand loyalty

  Effect: brand loyalty exists when consumers show a favourable attitude toward a particular brand, choosing one brand’s products over another’s, resulting in repeat sales and higher profits