STUDY ON MARKETING PSYCHOLOGY USED TO INFLUENCE CONSUMER

BEHAVIOUR

Submitted By

S. SOUNDARIYA

P1918110

In Partial Fulfilment of the Requirements for the Award of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

DR. HARIHARASUDAN NATRAJAN

MAY 2020
DECLARATION

I the undersigned solemnly declare that the project report “STUDY ON MARKETING
PSYCHOLOGY USED BY MARKETERS TO INFLUENCE CONSUMER
BEHAVIOUR” is based on my own work carried out during the course of our study under
the supervision of Dr. HARIHARASUDAN NATARAJAN.

I assert the statements made and conclusions drawn are an outcome of my research work.
 ACKNOWLEDGEMENT

My sincere thanks to my guide Dr. HARIHARASUDAN NATRAJAN for his guidance

from starting of the project to completion.

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this MBA project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendy advice during the project work. I am sincerely
grateful to them for sharing their truthful and illuminating views on a number of issues
related to the project.
 TABLE OF CONTENTS

S.No CHAPTERS PAGE.NO.

1 INTRODUCTION

1.1 Objectives of the study

2. REVIEW OF LITERATURE

3. MARKETING PRINCIPLES

3.1 RECIPROCITY PRINCIPLE

3.2 SOCIAL PROOF

3.3 DECOY EFFECT

3.4 SCARCITY PRINCIPLE

3.5 ANCHORING PRINCIPLE

3.6 BAADER – MEINHOF

3.7 INFORMATION GAP THEORY

3.8 LOSS AVERSION

3.9 BANDWAGON EFFECT

3.10 IKEA EFFECT

4. RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

4.2 COLLECTION OF DATA

4.3 SAMPLING TECHNIQUES

4.4 SAMPLING SIZE

4.5 PERIOD OF STUDY

4.6 TOOLS USED

4.7 PERCENTAGE ANALYSIS

5. ANALYSIS AND INTERPRETATION

6. FINDINGS

7. SUGGESTIONS

8. CONCLUSION
 LIST OF TABLES

S.NO TITLE OF TABLE PAGE.NO.

5.1.1 Table shows the age group of Respondents

5.2.1 Table shows the occupation of respondents

5.3.1 Table shows the buying decisions of the respondents

5.4.1 Table shows if bakery shop offering a free

sample of new cake as a token of returning the favour,
respondents buys the cake

5.5.1 Table shows whether respondents would buy a

product suggested by a friend or expert

5.6.1 Tables shows which type of burgers

respondents would buy

5.7.1 Table shows whether respondents given attention to

products that they frequently seen in the TV, social
media etc
5.8.1 Table shows whether respondents would buy when store/E-
commerce website offers a limited time discount

5.9.1 Table shows reason for respondents selected yes for the
previous question

5.10.1 Table shows whether respondents would buy when

their favourite jean price reduced 800rs, when it usually old
at 1000rs

5.11.1 Table shows if respondents imagine they are

environmentalist they would swipe up

5.12.1 Table shows whether respondents would buy a

product due to trending or majority of people using

5.13.1 Table shows which sneaker respondents would prefer if

they had readymade or customized sneaker in which they
chosen fabric and design
 LIST OF FIGUERS

S.NO FIGURES PAGE.NO

3.1.1 Reciprocity Principle

3.1.2 Example of reciprocity principle

3.2.1 Social Proof

3.2.2 Example of Social Proof

3.4.1 Scarcity Principle

3.4.2 Example of scarcity principle

3.7.1 Information gap theory

3.8.1 Loss aversion

3.9.1 Bandwagon Effect

3.9.2 Example of Bandwagon Effect

3.10.1 IKEA Effect

 LIST OF CHARTS

S.NO CHARTS PAGE.NO.

5.1.2 Chart shows the age group of respondents

5.2.2 Chart shows the occupation of respondents

5.3.2 Chart shows the buying decisions of the respondents

5.4.2 Chart shows if bakery shop offering a free

sample of new cake as a token of returning the
favour, respondents buys the cake

5.5.2 Chart shows whether respondents would buy

a product suggested by a friend or expert

5.6.2 Chart shows which type of burgers

respondents would buy

5.7.2 Chart shows whether respondents given attention to

products that they frequently seen in the TV, social
media etc
5.8.2 Chart shows whether respondents would buy when store/E-
commerce website offers a limited time discount

5.9.2 Chart shows reason for respondents selected yes for the
previous question

5.10.2 Chart shows whether respondents would buy when

their favourite jean price reduced 800rs, when it usually old
at 1000rs

5.11.2 Chart shows if respondents imagine they are

environmentalist they would swipe up

5.12.2 Chart shows whether respondents would buy a

product due to trending or majority of people using

5.13.3 Chart shows which sneaker respondents would prefer if

they had readymade or customized sneaker in which they
chosen fabric and design
 CHAPTER - 1

INTRODUCTION

Marketing Psychology:

Marketing psychology has been defined as “incorporating a range of psychological principles

into your content, marketing, and sales strategy.” Going further, you can also think of
marketing psychology as a way to look for patterns in humans and assess how this relates to
their purchase decisions.

Marketing psychology attempts to understand the way that consumers think, feel, reason, and
make decisions. The goal of marketing is to convince people, and making a calculated
emotional appeal can be just what you need to land a lasting customer.

Regardless of what you sell, there is a high likelihood that the marketplace is overcrowded.
The purpose of marketing psychology is to gain an edge over the competition. It’s always
important to remember that you’re dealing with people. People are emotional.

Interesting marketing opportunities can be found at the intersection of

organizational objectives and human psychology. Take the time to understand how the
human mind works. It can reveal opportunities to trigger positive emotional responses in your
potential customers. If you can find this coveted intersection, your business will surely level
up.

Marketing:

Marketing refers to any actions a company takes to attract an audience to the company's
product or services through high-quality messaging. Marketing aims to deliver standalone

1
value for prospects and consumers through content, with the long-term goal
of demonstrating product value, strengthening brand loyalty, and ultimately increasing sales.

Psychology:

Psychology is the study of mind and behavior. It encompasses the biological influences,
social pressures, and environmental factors that affect how people think, act, and feel.

Gaining a richer and deeper understanding of psychology can help people achieve insights
into their own actions as well as a better understanding of other people.

OBJECTIVES OF THE STUDY:

 To know about psychological principles used in marketing

 Understanding the psychological principles
 Implementation Techniques
 How they influence consumers
 Conducting survey to find out the effectiveness of these principles

CHAPTER - 2
 REVIEWS OF LITERATURE

(Vijay Victor, Jose Joy Thoppan, Robert Jeyakumar Nathan, and Fekete Farkas
Maria) The dawn of the new century witnessed industry 4.0, revolutionizing all areas of
online business by bringing in novel opportunities and possibilities. Despite the progress in
technology, the determination of correct pricing on online selling platforms still remains a
very complex task. The adoption of big data technology has enabled online sellers to make
real-time price changes of high magnitude and proximity. However, with increasing
awareness among buyers regarding modern pricing strategies, it is necessary to examine
probable changes in consumer behavior when exposed to dynamic pricing scenarios. This
study investigates the factors that influence consumer behavior, and their prospective online
purchase decisions in a dynamic pricing context, through an exploratory factor analysis
approach. A primary research survey was conducted, and 178 samples were finalized for data
analysis through a series of web surveys completed by respondents in India. This
study identifies measures and classifies 27 research items into variables, namely shopping
experience, privacy concerns, and awareness about dynamic pricing, buying strategy, fair
price perceptions, reprisal intentions and intentions for self-protection. These seven factors
could be used to explain consumer behavior in a dynamic pricing situation.

(Ahmad Hosaini, Dr. Kuldeep Chand Rojhe) The marketing starts and finish with the
consumer hence, consumer purchasing decision taking shows how well the organizations’
marketing strategy suits marketing demand. Consumer behavior includes the psychological
procedures which consumers experience in understanding their requirements. Discovering
patterns to rectify these requirements, taking buying decisions for example, whether
to purchase goods and services and if so, which types of brands and where, interpret tips,
making plans, and executing these plans for example, with engaging in comparison shopping
or real buying of products, Totally, modern and professional marketing staffs try to know
consumers and their responses, therefore, analyses the essential traits of their behavior.
(Yakup Durmaz) In this study, the influence of psychological factors on consumer buying
behavior is investigated. The effect of psychological factors on buying behavior of
consumers, who become much more important day by day, is tried to be measured. Turkey
has seven regions. From each region two provinces are selected by random sampling method.
A face to face survey was conducted on 100 people from each province and in total 1400
people participated in the survey. The information obtained from the results are analyzed and
interpreted by the computer packet programs.

(Oliver Francis Koch, Alexander Benlian) Drawing on a randomized field experiment in

the context of an online fashion service named StyleCrowd, we investigate the effects of
scarcity and personalization, two classical promotional cues that have become ubiquitous on
the web and have received only minimal attention hitherto, on actual referral behavior. Our
analysis reveals that using these cues in promotional campaigns is a balancing act: While
scarcity cues affect referral propensity regardless of whether a campaign is personalized or
not, personalization cues are particularly effective when scarcity is absent, yet are cancelled
out when scarcity is prevalent. We demonstrate that consumers' perceptions of offer value
drive the impact of scarcity on referral likelihood, while consumer gratitude vis-à-vis the
marketer is the underlying mechanism for personalization's influence on referral decisions.

(Rozita Khajei) , this study was conducted in Kara Farin Insurance Representatives in
Mashhad, Iran for identifying Relationship Marketing (RM) tactics impacts on loyalty due to
Relationship Quality (RQ). The RM tactics under investigation were tangible reward,
interpersonal communication, preferential treatment, and direct mail. Two kinds of
questionnaires were utilized to reap data from managers and customers with 0.88% and
0.92% reliability, respectively. The census method has used to collect managers’ viewpoint
and there are 125 available customers for sampling. Data from these
experiments indicate that, among used tactics, preferential treatment tactic had not significant
influence on RQ, thereupon, it can be concluded that RQ variable don’t perform a mediating
role. Moreover, a refined understanding was provided for cognizing interplay between
organization and customers due to implement the RM tactics.
(Sinha, Jay I, Foscht, Thomas) Recent years have seen the growing use of innovative tactics
by certain firms in the areas of product planning, advertising and sales promotions whereby
they appear to flout many of the conventional marketing principles. They include such ploys
as shops without names, shuttered-down shop windows, product items that are deliberately
offered in limited quantities, brands that are unabashedly product-centric instead of customer-
centric, limited item choices and quixotic advertisement messages. Such approaches now
seem to be better able to attract and engage the customers, who are typically media-worn and
blasé from over marketing. Moreover, these new marketing tactics resonate well with the
younger generation since they are more skeptical towards the self-laudatory, superiority
claims that marketers have traditionally made in their communications. However, not
many marketing scholars and practitioners are fully informed of the developments. This
article examines the reverse psychology phenomenon from the perspective of both theory and
practice and delineates the rationale, scope and ramifications underlying these new
approaches.
 CHAPTER - 3

MARKETING PRINCIPLE

Here are some of the key principles used in the marketing psychology

3.1Reciprocity Principle:

The principle of reciprocity describes the tendency of human nature to want to offer
something when something is received. You feel obliged to do something in return because
something was done for you. Marketers use the principle of reciprocity to their advantage, in
their marketing strategies.

Introduced in Dr. Robert Cialdini’s book, Influence: The Psychology of Persuasion, the
concept of “reciprocity” is simple -- if someone does something for you, you naturally will
want to do something for them.

According to Cialdini, when servers bring a check to their patrons without a mint, the diners
will tip according to their perceptions of the service given. With one mint, the tip jumps up
3.3%. Two mints? The tip jumps "through the roof" to roughly 20%.

Fig 3.1.1 Reciprocity principle

When you offer something first for free, if it's helpful, people feel a real sense of
indebtedness towards you.

This indebtedness is a real phenomenon, and it has a significant effect:

Your subsequent requests would make them much more likely to return the favor.
When business owners offered samples or a small gift for free to their potential customers,
they were basically creating a social obligation for them to return the favor. Kind of like an
inverted loyalty program, except the gift comes first.

In an indirect way, they were increasing their sales by first offering things for free. And you
can do it too.

Implementation:

You can implement the reciprocity in your marketing strategy, by following any one of this
strategy

1. Be the first to give:

Before asking the customer to spend on your product, give them something free first. Besides
the fact that it’s hard to pass up something for free, it also goes with social norms to feel
obligated to return the favor. Maybe your soon-to-be customers won’t be able to offer their
money for free, but they will certainly offer their attention.

This attention in exchange for the free offer may be just enough to convert the virtual
passerby into a paying customer.

2. Make Customers Feel Special

Instead giving rewards what you think is suitable for your customer, let them choose their
reward. By giving them freedom to choose their reward, by doing you are showing customer
that you care about them, not just as potential revenue.

3. Help the Customer Outside of Your Store

You can establish trust by providing value outside the context of your store.
For example, sharing the informative content like posting ‘How to’ articles. That simple act
of helping your customers outside your shop is likely to favor your business when they
finally decide to make a purchase.
4. Make It Memorable

Though it might be tempting to offer something that is cheap and easy, such as a free sample,
in hopes of convincing your potential customer to eventually make a purchase, this is only
likely to make you a forgettable brand. Instead, make the entire experience a memorable one.

Run an entire campaign on social media or enlist the cooperation of other brands to make it a
fun and exciting offer. By making both your brand and your offer memorable, people are
more likely to remember your brand when they are actually ready to make a purchase.

5. Increase your customer base

Another easy tactic is offering reward to the existing customer by referring your business or
product to others. By doing this you bring attention to your business this
will eventually increase your sales.

For Example:

Netflix given free trial, so people who streamed free trail they would give email id and phone
numbers in return for free trial

Fig 3.1.2 Example of reciprocity principle

3.2Social Proof:

Social proof is the theory that people will adopt the beliefs or actions of a group of people
they like or trust. It also includes celebrity or expert in the field, people would like to buy the
product based on the suggestions of these people.

Fig 3.2.1 social proof

Implementation:

Customers: social proof from your existing customers or users by asking them to give
reviews, testimonials or even case studies.

Experts: social proof from credible and esteemed experts in your industry this influence
consumers.

Celebrities: social proof from celebrities or other influencers.

Friends: You can ask your customers to refer their products to their friends if they liked.

Certifications: a credible, 3rd party entity that certifies that you are a knowledgeable, high-
quality or trustworthy source like FSSAI.

Here, Sensodyne uses dentist to promote its products. Toothpaste was recommended by the
expert in the field, which influence consumers to buy the product.
 Fig 3.2.2 Example of social proof

3.3Decoy Effect:

The decoy effect is technically known as an ‘asymmetrically dominated choice’ and occurs
when people’s preference for one option over other changes as a result of adding a third
(similar but less or more attractive) option.

When consumers are faced with many alternatives, they often experience choice overload
multiple behavioural experiments have consistently demonstrated that greater choice
complexity increases anxiety and hinders decision-making.

In an attempt to reduce this anxiety, consumers tend to simplify the process by selecting only
a couple of criteria (say price and quantity) to determine the best value for money.

Through manipulating these key choice attributes, a decoy steers you in a particular direction
while giving you the feeling you are making a rational, informed choice.

Implementation:

1. Choose your key product

The one you want to sell more of. Make sure it is popular with your customers.

2. Structure your key product

Remember, your key product should contain more benefits than the other products, and
higher priced.
3. Create a decoy
your goal is to make the decoy asymmetrically dominated by your key product and to
increase your key product attractiveness as a result.

4. Have at least three offers (recommended)

However, don’t add more than five.

5. Price the decoy close to your key product (the high-priced option)
Choose the same or a slightly lower price.

3.4Scarcity theory:

The scarcity principle refers to the usage of scarcity – meaning that something is scarce or in
short supply – to make it appear more valuable to consumers. Scarcity can be both real
and stimulated.

Scarcity isn’t just limited to product supply. It’s often paired with the sense of urgency and
can be time-based, too.

There can be a limited amount of time left to take part in a sale, participate in a contest, and
purchase a limited-edition item. In this case, it isn’t the number of items that causes scarcity,
but the amount of time the consumer has to make up their mind about whether they want it or
not.

Scarcity can also work with exclusive products or sales that are only available to certain
people in your audience.
 Fig 3.4.1 scarcity principle

This psychological principle of persuasion coined by Dr. Robert Cialdini means the rarer or
more difficult to obtain a product, offer, or piece of content is more valuable it becomes.
Because we think the product will soon be unavailable to us, we’re more likely to buy it than
if there were no impression of scarcity.

Implementation:

You can implement scarcity principle by following these strategies

Use limited time discount & countdowns:

By using limited time discount, using countdowns in your website or you can use visual
merchandising to tell how many days left to buy the product increase sales.

Use free shipping:

you can also use limited time free shipping for a limited time.

Seasonal offers:

You can use end of season sale or diwali sale.

Displaying number of stocks available:

You can use this in e-commerce website by displaying stocks which are lower making it
more desirable to the consumer.

For example:

Here, Amazon uses limited time deal, time played as a scarcity

Fig 2.4.2 Example of scarcity principle

3.5Anchoring effect:

Anchoring bias is the human tendency to put more weight on the first piece of information
offered than everything that follows. During decision making, anchoring happens when
the initial information influences the way people interpret following pieces of info and then
form a conclusion.

Anchoring is the cognitive bias that influences how we view a product by comparing it to
something else.
This is often seen with discounted prices (crossing out your previous price offering and
comparing it with the new one).

It can also show your product benefits and how they excel compared to another, competing
product.

Anchoring bias was first theorised by Amos Tversky and Daniel Kahneman in the 1960s.
Various studies have shown how difficult it is to avoid anchoring since the pair theorised the
phenomenon and this helps explain why it’s so effective in marketing.

Implementation:

Displaying both base price & discounted price:

If you put the original price first, though, this acts as an anchor representing the true value of
the item. Any discount price that follows instantly gains weighing because you’ve already
anchored that initial price into people’s minds.

Pricing product line:

When pricing your product line, you can set lowest or highest price either your base product or
premium product in a way that price act as a anchor for your other products.

Example, Scarcity example also applies here they are anchoring price then strike the base
price and stae the discounted price.

3.6The Baader-Meinhof Phenomenon:

The Baader-Meinhof Phenomenon, otherwise known as the frequency illusion or recency

bias, is a situation where something you recently learned about suddenly seems to appear
everywhere. There are two reasons for this phenomenon -- first, selective attention, which
means your brain is subconsciously seeking out more information on the subject. Second,
confirmation bias, which means every time you see something related to the subject, your
brain tells you that it's proof the subject has gained popularity overnight.
Implementation:

Combine these principles with repetitive advertisement:

This happens only happen if someone notices or learns about your product, you create your
ad with attention grabbing sentences and images to attract your audiences. These create
attention to your product & publish your in social media, radio according to your target
audience.

Using social proof:

While advertising you can use social proof theory like displaying reviews, customer
experience in your ad, when consumer learns about your product he/she will subsequently
convinced through social proof.

3.7Information-Gap Theory:

This theory suggests that when someone has a gap in their knowledge in a topic that interests
them, they will take action to find out what they want to know.

The information gap theory of curiosity is intuitive and simple; when there’s a gap between
what we currently know and what we want to know, we become curious. Our brains light up,
causing a kind of “mental itch” that only provide relief when we have the answer.

Fig 3.7.1 Information gap theory

Implementation:

Marketers use the information-gap theory in content and social media marketing. For
example, headlines such as 'How to do something', 'The secret to XYZ', or 'What you must
know about...' are all used to excite our curiosity and make us want to learn more about the
topic.

3.8Loss Aversion Marketing:

This theory points out that most people would prefer to avoid losses compared
to acquiring gains. Loss aversion means pretty much exactly what it sounds like: Once
someone has something, they really don’t like to lose it. People don’t like to lose what
they’ve already gained.

Fig 3.8.1 Loss aversion

Implementation:

 discounts, coupons and rewards

 free trials and product samples

 pre-ordering options for new products

 exclusive mailing lists for specific products

  social proof and “fear of missing out”

 communicating urgency or scarcity (actual or implied)

 following up on customers with incomplete shopping carts or orders

3.9Bandwagon Effect:

The Bandwagon Effect is the tendency for the brain to conclude that something must be
desirable because other people desire it. The Bandwagon Effect, aka the tendency to follow
trends and fads, occurs because people gain information from others and desire to conform.

“A psychological phenomenon whereby people do something primarily because other people

are doing it, regardless of their own beliefs, which they may ignore or override.”

Fig 3.9.1 Bandwagon Effect

Implementation:

Show people using your product/service

The easiest way to trigger the bandwagon effect in potential customers is to literally show
them people using your products. From the images on your website to the promotion videos
you share on social media, show people enjoying the best of what your brand has to offer.
Make it appear popular & combine them with scarcity:

Use words like Trending, and imply scarcity in terms of both time & no of stocks to increase
the chance of buying.

Highlight your sales number:

One of the most effective ways to leverage the bandwagon effect to boost your conversions is
by showcasing your numbers. When you highlight the fact that a certain number of people
use your product, you are tacitly establishing that that number of people endorse your
product.

For example, flip kart advertises that 1 million realme sold out that’s a lot of people.

Fig 3.9.2 Example of bandwagon Effect

3.10 IKEA Effect:

The IKEA effect, named after everyone’s favourite Swedish furniture giant, describes how
people tend to value an object more even if they make partially or assemble it by themselves.
 v

Fig 3.10.1 IKEA Effect

 CHAPTER - 4

Research Methodology

4.1Research Design:

The research design is the planning of how research going to takes place. The structure of
research is more specific, specified methods are used in collection & analyzing of data.

Descriptive Research method:

Descriptive research method used in this study, it means researcher has no control over the
variables she can only report what happened.

4.2Collection of data:

Data collections are integral part of a research design. Data are mostly collected in two ways
one is primary data and another one is secondary data.

Primary data:

Data are collected directly through and then analyzed it.This makes your research more
original, but it requires more time and effort, and relies on participants being available and
accessible.

Secondary data:

Data are collected from publications, articles, previous studies, news, magazines etc.

4.3Sample techniques:

For this study convenience sample is used. Data are collected from people who are willing to
provide information.

4.4Sample size

The actual sample size is 110 responses are taken.

4.5 Period of the study:

This study taken one month to collect data from respondents.

4.6Tools used:

Questions were prepared on the basis of various psychological principles. The data collected
are analysed using the tools like

 percentage Analysis

Percentage = No of Respondents/Total no of Respondentsx100

Graphs:

Graphical method is used in order to easy identification of various factors. Here pie chart is
used.
 CHAPTER - 5

Analysis and Interpretation

Here are the analysis & interpretation of the survey taken,

5.1.1 Table shows the age of respondents

S.N Particulars No of Percentage of Respondents (%)

o Respondents

1. 18 – 20 30 27.3%

2. 20 -30 66 60%

3. Above 30 14 12.7%

4. Total 110 100%

Interpretation: 60% of the respondents belong to the 20 -30 age group and comparatively
lower 12% belongs to the above 30 age group.
 5.1.2Chart shows the age group of respondents

5.2.1 Table shows the occupation of the respondents

S.No Particulars No of Respondents Percentage of Respondents (%)

1. Student 59 53.6%

2. Working 46 41.8%

3. Other 5 4.15%

4. Total 110 100%

Interpretation: 59.6% belongs to the student category, comparatively lower 4.15% belongs
to the others category.
 5.2.1 Chart shows the occupation of the respondents

5.3.1 Table shows the buying decisions of the respondents

S.N Particulars No of Percentage of Respondents

o Respondents (%)

1. Rational 37 33.6%

2. Irrational 28 25.5%

3. Either rational or 45 40.9%

irrational

4. Total 110 100%

 Interpretation: 40.9% chooses either rational or irrational buying, 33.6% chosen
rational buying and 25.5% chosen irrational buying.

5.3.2 Chart shows the buying decisions of the respondenents

Reciprocity principle

5.4.1 Table shows if bakery shop offering a free sample of new cake as a token of
returning the favour, respondents buys the cake

S.No Particulars No of Respondents Percentage of Respondents (%)

1. Yes 54 49.1%

2. No 19 17.3%

3. Maybe 37 33.6%
 4. Total 110 100%

Interpretation: 49.1% chosen yes they buy the cake, 17.3% said no and 33.6%
chosen maybe they buy the cake.

5.4.2 Chart shows if bakery shop offering a free sample of new cake as a token of
returning the favour, respondents buys the cake

Social proof

5.5.1 Table shows whether respondents would buy a product suggested by a

friend or expert

S.No Particulars No of Respondents Percentage of Respondents (%)

1. Yes 52 47.3%

2. No 20 18.2%

3. Maybe 38 34.5%
 4. Total 110 100%

Interpretation: 47.3% of respondents chosen yes they would buy the product
suggested by a friend, 34.5% chosen maybe and 18.2% chosen no option.

5.5.2 Chart shows whether respondents would buy a product suggested by a

friend or expert

Decoy Effect
 5.6.1 Tables shows which type of burgers respondents would buy

S.No Particulars No of Respondents Percentage of Respondents (%)

1. Small 12 10.9%

2. Medium 19 17.3%

3. Large 77 70%

4. Other 2 1.8%

5. Total 110 100%

Interpretation: 70% of respondents chosen large burger, 17.3% chosen medium,

10.9% chosen small and 1.8% had chosen others.

5.6.2 Chart shows type of burgers respondents would buy

Baader – Meinhof principle

 5.7 Table shows whether respondents given attention to products that they
frequently seen in the TV, social media etc

S.No Particulars No of Respondents Percentage of Respondents

(%)

1. Yes 58 52.7%

2. No 21 19.1%

3. Maybe 31 28.2%

4. Total 110 100%

Interpretation: 52.7% of respondents chosen yes they given attention, 28.2% had
chosen maybe and 19.1% had chosen no.

5.7.1 Chart shows whether respondents given attention to products that they
frequently seen in the TV, social media etc
 Scarcity Principle

5.8.1 Table shows whether respondents would buy when store/E-commerce

website offers a limited time discount

S.No Particulars No of Respondents Percentage of Respondents

(%)

1. Yes 34 30.9%

2. No 12 10.9%

3. Maybe 25 22.7%

4. Only when I 39 35.5%

need

5. Total 110 100%

Interpretation: 35.5% respondents chosen they buy only when they need, 30.9%
chosen Yes, 22.7% chosen maybe, 10.9% chosen No.
5.8.2 Chart shows whether respondents would buy when store/E-commerce
website offers a limited time discount
 Loss Aversion

5.9.1 Table shows reason for respondents selected yes for the previous question

S.No Particulars No of Respondents Percentage of

Respondents (%)

1. Due to limited time discount 11 32.4%

2. Due to fear of losing the discount 10 29.4%

3. Both 10 29.4

4. None 3 8.8%

5. Total 34 100%

Interpretation: 32.4% of respondents chosen due to limited time discount, 29.4%

chosen due to fear of losing the discount, 29.4% chosen due to both the option, and 8.8% of
chosen none.
5.9.2 Chart shows reason for respondents selected yes for the previous question
 Anchoring principle

5.10.1 Table shows whether respondents would buy when their favourite jean
price reduced 800rs, when it usually old at 1000rs

S.No Particulars No of Respondents Percentage of

Respondents (%)

1. Yes 56 50.9%

2. No 12 10.9%

3. Maybe 20 18.2%

4. Only when I need 22 20%

5. Total 110 100%

 Interpretation: 50.9% chosen yes they would buy, 20% chosen only when they
need, 18.2% chosen maybe and 10.9% chosen no.

5.10.2 Chart shows whether respondents would buy when their favourite jean
price reduced 800rs, when it usually old at 1000rs

Information Gap Theory

 5.11.1 Table shows if respondents imagine they are environmentalist they would
swipe up

S.No Particulars No of Respondents Percentage of

Respondents (%)

1. Yes 70 63.6%

2. No 15 13.6%

3. Maybe 25 22.7%

4. Total 110 100%

Interpretation: 63.6% of respondents would swipe up, 22.7% chosen maybe, 13.6%
chosen no.
5.11.2 Chart shows if respondents imagine they are environmentalist they would
swipe up
 Bandwagon Effect

5.12.1 Table shows whether respondents would buy a product due to trending or
majority of people using

S.No Particulars No of Respondents Percentage of

Respondents (%)

1. Yes 36 32.7%

2. No 24 21.8%

3. Maybe 25 22.7%

4. Only when I need 25 22.7%

5. Total 110 100%

Interpretation: 32.7% of respondents chosen yes they would buy, 22.7% chosen
maybe, 22.7% chosen only they need and 21.8% chosen no.
5.12.2 Chart shows whether respondents would buy a product due to trending or
majority of people using
 IKEA Effect

5.13.1 Table shows which sneaker respondents would prefer if they had readymade or
customized sneaker in which they chosen fabric and design

S.No Particulars No of Respondents Percentage of

Respondents (%)

1. Readymade Sneaker 16 14.5%

2. Customized Sneaker 63 52.3%

3. Either readymade or customized 31 28.2%

4. Total 110 100%

Interpretation: 52.3% of respondents chosen customized sneaker, 28.2% chosen

either readymade or customized and 14.5% chosen no.
5.13.2 Table shows which sneaker respondents would prefer if they had readymade or
customized sneaker in which they chosen fabric and design
 CHAPTER - 5

FINDINGS

From the above study we can find that most of the results are came favour to the
marketing psychology other than scarcity principle where also only slight differences not any
big or completely against the principle. The results of scarcity may also due to over usage this
kind of principles in online marketing.

Buying decisions: It is found that all buying decisions are not always rational,
sometimes people buy things based on their moods, surroundings etc.

Reciprocity Principle: It is found that majority of people when they get something
free and they liked it, they will return the favour.

Social proof: It is found that majority of people buy goods when they recommended
by a friend or field expert due to trust,

Decoy Effect: It is found that majority of subjected by comparing price and quantity.

Baader – Meinhof principle: It is found that majority of had experience this

principle by advertising continuously in TV, social media etc

Scarcity principle: It is found that when you use scarcity people tend to buy when
they need the product or service.

Loss Aversion: it is found that majority of people buy due to limited time discount.

Anchoring: It is found that by anchoring the price you can really convince your
customer to the buy the product or services.

Information Gap theory: It is found that higher percentage (60.3%) of people like
something they will fill the information gap through any means.

Bandwagon Effect: It is found that higher percentage (32.7%) of people will buy
things when the product is trending or majority of people using it.
 IKEA EFFECT: It is found that people tend to value things that made even they
made partially.
 CHAPTER – 6

SUGGESTIONS

Marketing psychology can be used to improve sales and designing attractive

advertisement or content marketing to lure the customers to buy your product. Analysing the
consumer behaviour helped the marketing psychology to grow as a field and also more
researches are too conducted to explore this field.

They need to be combining with the marketing strategies to work effectively.

Sometimes these principles can create negative perception one should be careful while
implementing.
 CHAPTER -7

CONCLUSION

The purpose of the study was to identify different aspects of psychology of consumer
behaviour. The topics covered in the study affects consumption patterns of consumer and
purchasing habits. It also includes key principles in marketing psychology and their meaning.

The psychological perceptive of marketing is fascinating to study. There are so many

principles in marketing I covered 10 key principles. Understanding these only these
principles are cannot make good sales but you need to combine these principles with effective
and suitable marketing strategies.

This study aimed at explaining different principles, analysing these principles using
survey questionnaire and implementation techniques for better understanding about the topic.

The purpose of this study was to explore the different aspects of consumer behaviour
through a psychological magnifying glass. The various topics covered in this text defined the
many ways consumption affects individuals and their purchasing behaviour. The themes
analysed in this text also established a broader understanding of the reasons why consumers
behave and think in a certain manner.
 CHAPTER – 8

REFERENCE

Adaval, R, 2003. How Good Gets Better and Bad Gets Worse. Journal of Consumer
Research. 352-67.

Alwitt, L.F, 2002. Suspense and Advertising Responses. Journal of Consumer

Psychology. 12. No. 1. 35-49.

Bagozzi, R.P, Gopinath, M, Nyer, P.U, 1999. The Role of Emotions in Marketing.
Journal of the Academy of Marketing Science. 184-207.

Gaeth, G.J, 1997. Consumer’s attitude change across sequences of successful and
unsuccessful product usage. 41-53.

Jansson-Boyd, Cathrine V.2010. Consumer behavior -- Psychological aspects.

Consumers – Psychology. McGraw-Hill Education