The paper “ Consumer Psychology in Behavioural Perspective” is a marketing version of a literature review on marketing. For every firm to remain in business as well as achieve their objectives in making profits, they have to retain and attract customers to buy their products as well as their services. This is by fetching in interactions of resources, which are beneficial to their clients/ customers. Consumer behavior centers on how individuals make decisions to spend their effort, money and time. They make decisions on what to buy when to, where to, how frequently, and how they assess what they have bought as well as its impact.
In other words, consumer behavior is the approach that individuals have in disposing of, using and acquiring of concepts, services or products((Solomon, Bamossy, et al. 2006). Consumer decision making is the behavior form, which consumers follow and determine the decision process for the purchase of need sustaining services, concepts and products. This means consumers make choices based on the projected results of their decision. According to (Miniard et al. 2001), consumer behavior is seen to have embraced growth and conception of advanced marketing to incorporate a more universal range of activities that sway on consumer decisions.
Internal and external factors will affect buyers’ behavior. When individuals make wrong choices, it is because of a lack of information to assist them to make the rightful decision. Consumers will react to different product advertisement, price, and product features. Culture, politics, technology, and economies are forces and events in the consumer environment together with promotion, location, price, and product. BRE and NCC (2007)observe that a lot of information becomes helpful where information is apprehended as a strategy tool because of its peripheral cost as compared to other options.
It is perceived that the amount, difficulty and type of information provided have a significant impact on the individuals using it. Ignorance will have an impact on consumer behavior since they will assume the efforts of the marketers to advertise key information to their consumers. It is the right of consumers to make their own choices as it upsurges life satisfaction, basic motivations and apparent control (Iyengar and Lepper 2000). However, Schwartz (2004) argues that too many choices affect an individual’ s management of decisions where the consumer will end up making fewer choices that may differ from the information provided.
Different approaches have been implemented in the study of decision-making. These approaches speculate substitute models of man and highlight the importance to examine rather diverse variables (Foxall 1990). To start with, an economic man, where a consumer needs to be conscious of all the accessible consumption options, select an ideal sequence of action and capable of suitably rating each other (Schiffman and Kanuk 2007).
However, these steps are seen as unrealistic in decision making as consumers have insufficient information, inadequate motivation or enough time to make concrete decisions, which are performed upon by less coherent influences such as morals and collective connections. Additionally, consumers are termed as seeking suitable choices instead of the finest selections (Simon 1997). Psychodynamic is the other approach that highlights, the behavior is subject to biological impact via natural forces or energies that performs outside of mindful thought. This means the behavior is resolute by biological drives rather than individual reasoning or ecological incentives (Stewart 1994). In addition, the behaviorist is another approach, which explains actions, thoughts, and feelings as well as external events.
The interconnection of behavior is accredited to factors that are external to individuals. The last approach is the cognitive approach of which an individual is observed as an information processor. Cognitive is concerned with the mental process that defines the holding of information. These processes of memory include retrieval, storage, encoding, and rehearsal. The efficiency and effectiveness of consumer retrieval of knowledge are influenced by how often is the information repeated when being stored, a form of information, applicability and fluency (Lynch, 1982).
For example, an advertisement will have an impact on consumers' buying behavior. This is because consumers can be influenced to make a purchase out of an advert they have seen being advertised even if they had not planned for it. According to Foxall (1990), cognitive allows consumers to define their experiences in relation to motives, needs, and attitudes. However, Foxall (1993) argues that cognitive trust broadly upon the use of intellectual and unobservable illustrative variables, which rarely show agreeable to realistic inquiry and assessment.
Schiffman and Kanuk (2007), also agrees by stating that, cognitivism undertakes the consumer being active, logical,