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Psy/322 Consumer Psychology Article Analysis

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Consumer psychology is a specialty area that studies how our thoughts, beliefs, feelings and perceptions influence how people buy and relate to goods and services. One formal definition of the field describes it as "the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society". (Hawkins, Motherbaugh, & Best, 2007). Consumer psychology is used for the development of successful marketing strategies. Marketing strategies are produced through many different types communication pathways. More specifically, “Marketing communication helps to develop brand awareness, which means that consumers translate product information into perceptions about the product’s attributes and its position within the larger market.” (Greene, 2013). A great example of how consumer psychology was implemented was in 1996 when the “Tickle me Elmo” doll came out. When Tyco Toys first initially cam out with the doll, most of the market did not purchase the item. Many seemingly speculate that it was because around the same time, many other forms of the same toy were coming out such as cabbage patch kids, easy bake ovens, and more. Tyco took all the Elmo dolls off the shelves, reported that more were coming in the Christmas months, the demand sky-rocked as well as the price. Seemingly, the market interpreted the “more coming” was a sign that all were sold out. This caused one of the most coveted toys of the 1990’s to take off. Some are still being sold for over $1500 when originally sold at $28.99. This shows that using the right market research, having the psychologists, and using the strategy of consumer psychology can help businesses become profitable. Others might say this tactic can be moral or

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