March 24, 2019 • 1 min
Consumer psychology is the study of the behavior of consumers of goods and services regarding their buying patterns and reactions to advertising and marketing. It seeks to explain consumer behavior in two basic ways: what the consumer wants and what the consumer needs. The logical explanation for fulfilling the needs is a simple one. If a person lives in New York, that person needs a winter coat to survive the cold outside. But why the person buys a particular style or color depends on the more complex issues of why a particular choice is made. The key to unlocking consumer psychology is understanding that desires rule over needs when it comes to consumer purchase. In our modern world where new food products and electronic gadgets emerge daily, it is in the interest of psychologists, as well as those marketing the products, to understand the relationship between financial and psychological factors that make people buy what they buy. In fact, consumer psychology utilizes more than simply psychology, because it also studies economics and culture.