Advertising, Consumerism, Materialism, Marketing
Why Consumer Behavior Matters
Corporations, political campaigns, and nonprofit organizations all consult findings about consumer behavior to determine how best to market products, candidates, or issues. In some cases, they accomplish this by manipulating people's fears, their least-healthy habits, or their worst tendencies. And consumers themselves can be their own worst enemy, making rash purchasing decisions based on anxiety , faulty logic, or a fleeting desire for social status. But consumers aren’t powerless: Learning more about the different strategies companies employ, as well as the explanations for people's often confusing purchasing decisions, can help individuals more consciously decide what, why, and whether to buy.
In developed countries, people spend only a portion of their money on things they need to survive, and the rest on non-essentials. Purchasing decisions based on want, rather than need, aren’t always rational ; instead, they are influenced by personality , emotion , and trends. To keep up, marketers continuously investigate how individuals and groups make buying choices and respond to marketing techniques.
Political marketing is, in many ways, similar to product marketing: it plays on emotions and people’s desire for compelling stories , rather than pure rationality, and aims to condense complex issues into short, memorable soundbites. Smart politicians use marketing research to tailor their messages, connect with voters who share their values, and counter their opponents’ narrative.
Humans are social animals. We rely on a group to survive and are evolutionarily driven to follow the crowd . To learn what is “correct,” we look to other people—a heuristic known as the principle of social proof . Fads are born because a product’s popularity is assumed to signal value, which further bolsters its popularity.
The Psychology of Buying and Spending
Much of what people purchase—like food, shelter, or medical care—is necessary for their health and security. But what compels someone to buy things that aren’t necessary, like the latest iPhone or an impractical pair of high-heeled shoes? The study of why people make such purchases—which are often irrational—is closely related to the field of behavioral economics , which examines why people deviate from the most rational choice available.
Behavioral economists, marketing professionals, and psychologists have concluded that extraneous purchases may be driven by a need to display one’s social status, or in response to an emotion like sadness or boredom . In other instances, retailers may successfully manipulate the desire for a “good deal” by making an unneeded item seem especially affordable or portraying it as being in limited supply.
Learning how to recognize common manipulation tactics may help individuals and families save money—and stress —in the long term.
Many human behaviors are driven by reward. Purchasing a new gadget or item of clothing triggers a surge of dopamine , which creates pleasurable feelings. Though the glow of a new purchase may not last long, the desire to once again be rewarded with a burst of dopamine drives us to buy more .
How Advertising and Marketing Work
Two vast, interrelated industries—advertising and marketing—are dedicated to introducing people to products and convincing them to make purchases.
Since the public’s desires tend to change over time, however, what works in one product’s campaign won’t necessarily work in another’s. To adapt messages for a fickle audience, advertisers employ focus groups, market research, and psychological studies to better understand what compels people to commit to purchases or become loyal to brands.
Everyone has heard the advertising maxim “sex sells,” for instance—but exactly what, when, and why sex can be used to successfully market a product is the subject of much debate among ad makers and behavioral researchers. Recently, some evidence has suggested that pitches to the perceived “lowest common denominator” may actually inspire consumer backlash.
Marketers regularly use psychology to convince consumers to buy. Some common strategies include classical conditioning —training consumers to associate a product with certain cues through repeated exposure—creating a scarcity mindset (suggesting that a product only exists in limited quantities), or employing the principle of social proof to imply that everyone is buying a product—so you should, too.
How to Appeal to Consumers
In a crowded marketplace, anyone hoping to sell a product or service will need to stand out. To succeed at this, marketers often turn to psychological research to identify and target their most likely consumers, grab their attention, and convince them that a product will fill a specific need or otherwise better their life. Aiming to inform and persuade consumers—rather than manipulate them—is widely considered to be the most ethical approach, and is likely to help build brand loyalty more than cheap marketing tricks.
Both the message and the messenger matter for persuasion . Marketing researcher Robert Cialdini has found that first impressions matter greatly—a company (or individual) that appears trustworthy and warm is more likely to gain their audience’s trust. Cialdini also coined the term “pre-suasion” to argue that marketers must grab consumers’ attention before making an appeal—by offering free samples, for instance, or couching a product pitch in an amusing commercial.
Turning to psychology can help. Appealing to consumers’ emotions and desire for connection with others are often powerful marketing strategies, as long as they’re not interpreted by consumers as manipulative. Introducing novelty, too, can be effective—research shows that consumers respond to surprising ads, humorous ads, or even “experiential” ads (such as parties or events designed to promote a product). Repeating an ad enough times so that a consumer remembers it—but not so much that they become frustrated—is also a critical part of any effective ad campaign.
Humans are creatures of habit and slow to adapt to change. To spread a new message or idea, advertisers have learned that simplicity is key; overcomplicated appeals can be frustrating or confusing for consumers. Summarizing the benefits of a new product, service, or political campaign in pithy, memorable phrases or images—and then repeating the message as often as possible—is more likely to grab consumers' attention and convince them to take a chance on a new object or idea.
Explore More About Consumer Behavior
For a comprehensive understanding of consumer behavior, read our complete guide: