Nobody downloaded yet

Critically consider the ways in which economists have recognised the psychological, social and corporate influences on consumer choice - Essay Example

Comments (0) Cite this document
Summary
The concept of consumer choice in a free market economy is defined as the greatest degree of freedom available to a consumer to buy whatever he/she wants subject to the purchasing power and the laws of the country. Economists have identified three classes of influence on the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.9% of users find it useful
Critically consider the ways in which economists have recognised the psychological, social and corporate influences on consumer choice
Read TextPreview

Extract of sample "Critically consider the ways in which economists have recognised the psychological, social and corporate influences on consumer choice"

Download file to see previous pages the use of a popular person like an actor or talk-show host/hostess. Social influences are often attributed to class and culture such as those associated with the consumption of luxury goods. Corporate influences are said to be one of the most influential because they invariably come from the very manufacturers and sellers of those goods. For example businesses adopt a variety of strategies or/and sales tactics including those associated with benchmarking products and creating brand loyalties through value creation (Hallberg & Ogilvy, 1995).
Consumers have to make a choice between two or more goods before making an actual purchase. In a free market economy where price mechanism alone allocates scarce resources consumer choice is naturally assumed to be free from any influences because depending on the purchasing ability of the consumer he/she might decide to buy a good at its market price. However the contrary is much truer than this theoretical economic explanation to the consumer’s behavior. In the first instance in a free market economy the producer has an equal amount of freedom to use marketing tactics to attract the attention of the potential customer. Customers are influenced by a variety of sales tactics that producers use in order to increase sales volumes. Psychological, social and corporate influences are the most predominant among them.
Economists identify psychological influences such as those related to emotions, impulse or/and ostentation. According to economists emotional involvement in consumer choice though might not be measurable, cannot be ruled out altogether (Luce, Bettman and Payne, 2001). As a result every consumer is assumed to be influenced by positive and negative emotional factors like personal memories associated with a product. Michael Jackson related merchandise and memorabilia for instance have such an emotional impact on many potential buyers because he is associated with the firmament of pop music. When ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Critically consider the ways in which economists have recognised the Essay”, n.d.)
Critically consider the ways in which economists have recognised the Essay. Retrieved from https://studentshare.org/miscellaneous/1560303-critically-consider-the-ways-in-which-economists-have-recognised-the-psychological-social-and-corporate-influences-on-consumer-choice
(Critically Consider the Ways in Which Economists Have Recognised the Essay)
Critically Consider the Ways in Which Economists Have Recognised the Essay. https://studentshare.org/miscellaneous/1560303-critically-consider-the-ways-in-which-economists-have-recognised-the-psychological-social-and-corporate-influences-on-consumer-choice.
“Critically Consider the Ways in Which Economists Have Recognised the Essay”, n.d. https://studentshare.org/miscellaneous/1560303-critically-consider-the-ways-in-which-economists-have-recognised-the-psychological-social-and-corporate-influences-on-consumer-choice.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Critically consider the ways in which economists have recognised the psychological, social and corporate influences on consumer choice

Social Influences

...Societal Influence According to Russian psychologist Lev Vygotsky, society, as in culture, shapes a person’s cognitive development. Social interactions, for him, greatly influence a person’s personal development. This paper will present five scenarios which demonstrate this theory. 1. Celebrating the Birthday with a Cake The birthday is cake is a quasi-universal symbol of the birthday celebration. In many circumstances, a birthday celebration is not complete without a birthday cake, however; we all objectively know that it is possible. But growing up, we had been conditioned to believe that a birthday cake is synonymous to having a birthday. For example, a child who is...
6 Pages(1500 words)Essay

Social Influences on Behavior

...and psychodynamic perspective. The behaviour, the context in which the behaviours occurs, the precursors and the consequences of behaviour in terms of social psychology has been comprehensively explained within the matter of these two perspectives. Medical treatment has also been specified where necessitated. Biological Perspective To consider, the topic of psychology, one has to look at the subject of aggression. In order to understand the biological perspective, one has to look at how the brain and nervous system impact aggression. Brain and nervous system can impact aggressive behaviour in widespread ways. There are certain dopamine receptors which...
5 Pages(1250 words)Research Paper

Social Influences on Behavior

...when human beings are confronted with situations that seem challenging and are the deciding factors for them to earn their close associates’ liking. These tendencies cause the person to perform his/her best; and, these tendencies can be considered to be the precursors to the behavior that helps in achieving results that are much greater than the previous ones. As a result of these behaviors, participants also experience high self-esteem and self-confidence. From psychology perspective, such behavior is referred to as social facilitation (Baumeister & Bushman, 2010). A personal experience that relates to such behavior is that of an otherwise unhelpful neighbor who reacted in a very...
4 Pages(1000 words)Essay

Economists

...-borrowing and big debts. The cognitive aspect of debt starts with the belief that free money that is borrowed in large sums will achieve the desire of large profits, dividends or gains in the near future (Fisher, 1933).Another psychology of being lured into debt is the hope and speculation of selling goods and services at a high profit of more than 100% of the capital and believing in immediate capital gain.The last aspect of behavioral psychology of getting into debt is the trend of thoughtless promotions, which use consumers’ habits to speculate high profits (Fisher, 1933). However, consumers change their habits with the constant change of environment, technology and...
7 Pages(1750 words)Essay

Influences of My Career Choice

...?Influences of My Career Choice ? Table of Contents Table of Contents 2 Introduction 3 Techniques in career management 3 Wheel of Life 4 The Greenhaus, et al. Career Management Model 5 Influence of Family and Upbringing 7 Influence of Work Experiences 8 Influence of Models and Mentors 9 Influence of Education 11 Prospects for the Future 13 References 15 Introduction When I decided to take charge of my future, I realized that I would need to get a job in order to support myself. That meant that I would work in order to earn income which will be able to answer for all my needs. My understanding of self-support was that simple. It was only...
14 Pages(3500 words)Essay

Psychological influences learning Problem

..., the individual then will have two reasons to consume alcohol. Again, people this individual has an influence on then may be inspired to take up the habit and thus we shall see a cascading effect. REFERENCES: Delahaye, Brian and Becker, Karen (2006) Unlearning: A revised view of contemporary learning theories?. In Proceedings Lifelong Learning Conference http://eprints.qut.edu.au Fishburn, Peter C. (1975), Axioms for Lexicographic Preferences, The Review of Economic Studies, Vol. 42, No. 3 (Jul., 1975), pp. 415-419 Huitt, W & Hummel, J., (1997), An introduction to operant (instrumental) conditioning., Educational Psychology Interactive. Valdosta, GA Phillips, D.C...
4 Pages(1000 words)Essay

Environmental and Consumer Influences

...to make new purchase decisions (Wilhem,Yankov & Magee, 2011). There are consumers who consider reliable quality and user-friendliness of the specific brand of mobile phone brand especially amongst youth consumers. Young consumers, mostly students and urban residents, value handsets of reputed brands, nice appearance, and advanced value added features as well as pleasure derived from the gadgets. In general, consumer behavior towards mobile phone choice depends on price, social aspects, strength, brand name, product features and after sales services (Wilhem,Yankov & Magee, 2011). It is apparent that...
4 Pages(1000 words)Essay

Psychological Testing Movement/Economic Influences

...Economic Influences “The first psychological test of mental potentials was developed by Alfred Binet” (Schultz, 2011, p. 167). It later became a movement referred to as Psychological Testing Movement. Among the events that took place during the movement include the United States joined World War1, women worked in the applied fields, and racial differences were evidenced in the intelligence sector. The recruiting of the army called for involvement of highly trained person to administer the test; a staff of 40 psychologists who required heavy payments was formed to conduct the test(Schultz, 2011). The testing of the immigrant populations also led to the use of a lot of money in testing the...
1 Pages(250 words)Essay

Psychological disorder of choice

...Case Study. Obsessive-Compulsive Disorder by Gloria, a woman of 34, addressed with the symptoms of anxiety, loss of appetite, and insomnia provoked by thoughts about microbes and contamination. The patient cannot use bathroom elsewhere than at her own apartment and is obsessed with washing her hands. She says that unless she has an opportunity to wash her hands at least for a couple of times, she will feel frustration and panic. She confesses that she often thinks of contamination and final death from some deadly virus. Gloria lives alone and her anxiety makes her clean the apartment for several times a day. She avoids people in her house and at work. At the moment she does not have close friends and stopped communicating...
2 Pages(500 words)Case Study

Social Influences on Behavior

...makes the whole experience of physical workout different for Ben. He thinks that if he stops earlier than 20 minutes, he might disappoint Tiara as she has been told by him that he has the stamina to run for 20 minutes without stopping at the speed of 9.5 kilometers per hour. Ben’s behavior this day originates not only in his attempt to escape the embarrassment of disappointing Tiara, but also in his attempt to impress her. The possible precursors of this behavior, from the lens of social psychology, include consciousness, high self-esteem, self-image, and gender identity. Men have an impression of being strong and active and Ben wants to live up to this impression. The consequence of...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Critically consider the ways in which economists have recognised the psychological, social and corporate influences on consumer choice for FREE!

Contact Us