Customer Psychology

Customer Psychology- The branch of Social Psychology concerned with the market behavior of consumers, their preferences, customs and habits of various consumer groups. It is the study of the behavior of consumers of goods and services regarding their buying patterns and reactions to advertising and marketing. Customer Psychology tries to elucidate customer nature in two different ways- What does the customer want? & what are the needs of customers? There are different processes involved in the consumer behavior. At the outset the consumer tries to find what commodities he would like to chomp through, and then he selects only those commodities that give better service. After selecting the commodities, the consumer makes an estimate of the available money which he can pay out. Finally, the user analyzes the existing prices of commodities and takes the decision about the commodities he should devour.

Factors Affecting Customer Psychology

There are various factors like cultural, social, personal and demographical factors affecting the Psychology of customers. The influence of culture on consumer behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. Reference Groups affect the attitude of customers to a great extends. If a satisfied customer gives good reference then many people will try the same product. The psychology of customers changes according to the age and life style. Personality changes from person to person and from time to time and it also determines the Customer Psychology to great extend.

Types Of Customers

  To know in detailed about customer psychology first we have to know about the types of customers. There are different types of consumers as loyal customers, Discount customers, Impulse Customers, Need-Based customers and wandering customers. Loyal customers influence buying and merchandising decisions. They give publicity to good products. Discount customers ensure inventory is turning over and, as a result, it is a key contributor to cash flow. Impulse customers will provide significant amount of customer insight and knowledge. Need Based customers are driven by a specific need. They enter the shop to buy the particular product they want. Wandering customers have no specific need or desire in mind when they come into the store.

Customer psychology and the politics of customer decisions will play an important part in marketing and sales. The customer’s psychology & reputation is more important than product performance, price, quality, guarantees, service or any number of excuses.

Questions:

• What do you mean by Customer Psychology?
• What are the factors affecting a customer’s Psychology?