'Tis the Season: Persuasion & Consumer Psychology @consumerpsych561-blog - Tumblr Blog

About Our Blog

We created this blog as part of our psychology application project. We decided that an interactive blog would be an interesting way to present information about persuasion and consumer psychology. We chose a grid layout because we felt it illustrated advertising techniques and how individuals are constantly bombarded with information about new products and services through social media. This blog can be viewed by scrolling or simply clicking the bold tabs at the top of the page for more information about a specific topic. We hope you enjoy!

What is Consumer Psychology?

This short video serves as an introduction; it outlines some of the basic principles of consumer psychology.

#consumer psychology

Expected Utility

The expected utility model illustrates how individuals assess alternatives for the probability and value of outcomes. Calculating the utility of each outcome through cost-benefit analysis allows us to choose the best option at any given time. The formula for expected utility is: probability of occurrence x expected value. This applies to consumer psychology because we are always weighing out the pros and cons (or costs and benefits) of a purchase. For example, when trying on that fabulous pink dress you generally ask yourself something along the lines of whether or not the self-esteem boost you get while wearing the dress outweighs the expensive price tag. You are then better able to make the decision of to buy or not to buy.

Reference: Reisberg, D. (2013). Remembering Complex Events. In Cognition: Exploring the Science of the Mind (5th ed.). New York City: W. W. Norton & Company.

#expected utility #consumer psychology

jennilynn52

consumerpsych561-blog

Risk Seeking Behavior

This comic illustrates risk seeking behavior because it would be a loss if the customers missed out on a sale.

#perceived risk #consumer psychology

The Basics

This article presents 12 examples of how corporations use basic consumer psychology information to manipulate our emotions and increase our likelihood of purchasing their products or shopping at their stores. From incorporating smiley faces into logos to using enticing smells to lure customers into their stores, companies are constantly using these persuasive tactics without us even knowing (Short, 2014).

Reference: Short, K. (2014, October 9). 12 Ways Corporations Are Secretly Manipulating Your Emotions. Retrieved December 2, 2014, from http://www.huffingtonpost.com/2014/10/09/corporate-marketing-strategies_n_5936942.html?ncid=fcbklnkushpmg00000063

#mood #persuasion #consumer psychology

Remember the McRib by McDonalds?! Well... it's back, but only for a limited time and in select stores!

This framing of "limited time only" and "select stores" puts added pressure for consumers to go out and buy the McRib whenever they can. Why?

(a) we want what we can't have and...

(b) who likes missing out on stuff?

This is an example of Cialdini's Scarcity effect where individuals don't like to miss out on offers so they're more likely to spend while supplies last!

The scarcity technique can easily be applied to Black Friday and Cyber Monday deals as individuals feel more pressure inclined to buy because the "big-blow out" sales are only here once a year!

#scarcity #persuasion #cialdini principles

The actors emphasize how the dentist recommended Colgate Total. They also showed a dentist or maybe a fake dentist recommending the product. In this way Colgate are using the authority heuristic which suggests we are easily persuaded by knowledgable people because we trust they have studied the material and are experts when it comes to the subject.

In the Colgate example, the company assumes we, the consumers, trust our dentists to know what is best for our teeth. Therefore, if they suggest Colgate reduces 98% of plaques, we are more likely to believe them and buy their product because we feel a sense of trust and confidence in our dentists.

#authority #expertise #cialdini principles #persuasion

Mood

Mood plays a critical role in our decision making and something as minor as color has the ability to subconsciously affect how we are feeling at any given time. Companies use this to their advantage when determining the color of their products, product packaging, and product advertising. For example, sale signs are often red to evoke this idea of urgency, as sales are often for a short period of time only (Wolf, 2014).

Reference: Wolf, T. 2014, January 24. How Different Colors Are Convincing You To Buy Things. Business Insider. Retrieved December 2, 2014, from http://www.businessinsider.com/emotional-effects-of-color-2014-1

#mood #persuasion #consumer psychology

Free shipping BOTH ways, 365-day return policy, 24/7 customer service. Millions of men's shoes, women's shoes, girl's shoes, boy's shoes, handbags, men's clothing, women's clothing, Uggs, Nike shoes!

Example of Consistency/Commitment:

Zappos easy return policy tells people they won't have any difficulties if they don't like the shoes they purchase. However, once they have the shoes in their hand, the likelihood they would return it is slim because they feel committed.

Reference: Macdonald, M. (2013, September 13). 6 Psychological Triggers that Win Sales and Influence Customers – Shopify. Retrieved December 2, 2014, from http://www.shopify.com/blog/8920983-6-psychological-triggers-that-win-sales-and-influence-customers

#consistency #commitment #persuasion #cialdini principles

Mailing Address Labels

Example of Reciprocity: WWF sends stickers with your mailing address that you end up using. Because it's like they are giving you a gift when WWF asks you to donate money, you are more inclined to donate because you feel pressured since they have given you something.

#persuasion #reciprocity #cialdini principles

Example of liking: This sales person's personality makes the residents want to buy his cleaning product. Because Kenny Brooks makes jokes with his products and relates it to news events, Brooks puts the customers in a good mood that they view him more kindly and more likely to purchase his product.

#persuasion #liking #peripheral route #cialdini principles

Elaboration Likelihood Model

Central Route- the refrigerator advertisement is an example of the central route of persuasion using logic and the use of the products features to persuade customers to purchase

Peripheral Route- the cologne advertisement is an example of the peripheral route of persuasion because it uses superficial associations like this attractive man paired with very little information to try and draw in customers

#elaboration likelihood model #ELM #persuasion #consumer psychology

Covariation

Covariation is attributing a relationship between two events. This plays a role in consumer psychology because we oftentimes use covariation to predict future events, especially future purchases. For example, many people perceive covariation between produce and better health, therefore making this purchase more likely in the future. Additionaly, some people believe there to be a direct covariation between quality and price. The idea that higher priced items are better quality explains why expensive brand names are so popular (Bettman, 1986).

Reference: Bettman, J. (1986). Consumer Psychology. Annual Review of Psychology, 37, 257-289. Retrieved December 1, 2014.

#covariation #consumer psychology

The Peripheral Route and Cialdini's Principles

For the purposes of this blog, we focus on the peripheral route of the Elaboration Likelihood Model as it describes how our feelings can influence our attitudes and consumer preferences. Cialdini's (2007) five principles of persuasion help explain how the peripheral route takes place.

5 Principles of Persuasion:

Liking- people like those who like them

Reciprocity- people like to return the favor

Consistency/Commitment- people align with their clear commitments

Authority- people defer to experts

Scarcity- people want more of what’s less

Reference: Cialdini, R. B. (1993). Influence : the psychology of persuasion (Rev. ed.). New York: Morrow.

#attitudes #persuasion #ELM #elaboration likelihood model #cialdini principles

Elaboration Likelihood Model: Two routes to persuasion

Did you know there's a model describing how persuasion can change what we know and believe by manipulating how we feel? According to the elaboration likelihood model there are two routes to persuasion: Central and Peripheral

Central Route: we change our attitudes based on reasoning and arguments

Peripheral Route: we change our attitudes based on how we're feeling and mere associations

#ELM #elaboration likelihood model #persuasion #attitudes

Risk Averse Behavior

This text illustrates the idea of risk averse behavior because people are more likely to avoid risk when they are aware that they are gaining money, in this case the $1750, as a result of not spending.

#perceived risk #consumer psychology

labor411

consumerpsych561-blog

This picture exemplifies the craze of Black Friday. Because deals are starting the evening of Thanksgiving, more consumers are going out after their Thanksgiving feast. Instead of spending more time with family and friends, people are scurrying to retail stores because their schema is telling them that if they don't get to the stores now, they'll miss out on the "best deals".

#schema #consumer psychology

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'Tis the Season: Persuasion & Consumer Psychology