Consumer and economic psychology
Lecture 1:
Consumer and economic psychology falls under applied (social) psychology
It is the interaction between Goods & Services, People & Economy.
Consumer psychology
Interaction between products and people
Theoretical psychological approaches to understanding consumers (choices and decisions)
Example of focuses:
- Product adoption (competition, advertisement)
- Impacts products may have on people.
- How products are used (in effective way? Sustainable use?)
Economic psychology
Interaction between economy and people
Promotes and discusses research, as well as policy making, on the interface of psychology
and economy.
Example of focuses:
- Decision making (are they rational, the value it has and how it affects, risk and
uncertainty)
- How this (financial) makes people feel (wellbeing)
- How this affects the economy (consumer sentiment index)
It is not all about the money: motivations, values, impact on society, on sustainability. This
impact how much people are willing to pay and whether they want to adopt.
Also not all rational:
- Heuristics and biases
Week 2:
Article 1:
Prosocial consumer behavior is purchase behavior with self-sacrifice for the good of others or
society.
What motivates people?
- Altruism?
- Self-interested motives: incentives given can increase help, gaining status and being
perceived as generous.
- Self-perception: Crowding out (incentive can decrease because it can change the
meaning), show goodness to self, give more when it is painful
- Hedonic benefits: derive pleasure from being generous, think as seen good person,
have feeling of making impact.
- Empathy and sympathy: give with heart instead of heads.
o Identifiable victim effect: one is deeper than statistics
, Article 2:
How are people who engage in prosocial behavior evaluated.
There isn’t a direct connection between doing a good deed and receiving credit for it.
Costly signalling: the more seen as sacrificing, the better evaluated.
Slight hint of incentivized, can discount generosity.
- Ulterior motives are seen as less moral than not giving at all.
- Would they do it without incentive?
- The more time spend on maybe doing a good deed, the less credit.
- Do gooder derogation.
- The more positive emotions, the better altruistic
- Helping close ones is less help, but only others is neglecting
Article 3:
Prosocial behavior: any kind of behavior that benefits other people of society.
Prosocial consumer behavior: purchase behavior that involves self-sacrifice for the good of
others or society.
Examples of prosocial consumer behavior:
- Cause-related marketing
- Charitable giving
- Consumer activism
- Sustainable purchasing
- Volunteerism
Altruism: selfless behavior
Study: study shows that when performing prosocial behavior, there are hedonic benefits
(positive emotional outcomes). So there is always something that benefits themselves so it is
not purely altruistic.
What’s in it for the consumer?
- Altruism: nothing
- It makes a statement about me (it is a costly signal)
- So it enhances reputation and Costly signaling theory
What motives people to behave prosocial?
1. Self-interested motives (external)
o Direct benefits: eating vegan for health or donating for tax reduction.
o Indirect: like reputation
o Reputation for cooperation (proof social)
Willingness to confer benefits onto others.
Ability to confer benefits onto others.
o To proof this we engage in two types of behaviors
Altruistic/cooperative actions (we engage in to show others)
Costly signaling (costly behavior to signal capability)
2. Hedonic benefits (internal)
o Warm glow: economic theory: sense of joy and satisfaction when helping.
Lecture 1:
Consumer and economic psychology falls under applied (social) psychology
It is the interaction between Goods & Services, People & Economy.
Consumer psychology
Interaction between products and people
Theoretical psychological approaches to understanding consumers (choices and decisions)
Example of focuses:
- Product adoption (competition, advertisement)
- Impacts products may have on people.
- How products are used (in effective way? Sustainable use?)
Economic psychology
Interaction between economy and people
Promotes and discusses research, as well as policy making, on the interface of psychology
and economy.
Example of focuses:
- Decision making (are they rational, the value it has and how it affects, risk and
uncertainty)
- How this (financial) makes people feel (wellbeing)
- How this affects the economy (consumer sentiment index)
It is not all about the money: motivations, values, impact on society, on sustainability. This
impact how much people are willing to pay and whether they want to adopt.
Also not all rational:
- Heuristics and biases
Week 2:
Article 1:
Prosocial consumer behavior is purchase behavior with self-sacrifice for the good of others or
society.
What motivates people?
- Altruism?
- Self-interested motives: incentives given can increase help, gaining status and being
perceived as generous.
- Self-perception: Crowding out (incentive can decrease because it can change the
meaning), show goodness to self, give more when it is painful
- Hedonic benefits: derive pleasure from being generous, think as seen good person,
have feeling of making impact.
- Empathy and sympathy: give with heart instead of heads.
o Identifiable victim effect: one is deeper than statistics
, Article 2:
How are people who engage in prosocial behavior evaluated.
There isn’t a direct connection between doing a good deed and receiving credit for it.
Costly signalling: the more seen as sacrificing, the better evaluated.
Slight hint of incentivized, can discount generosity.
- Ulterior motives are seen as less moral than not giving at all.
- Would they do it without incentive?
- The more time spend on maybe doing a good deed, the less credit.
- Do gooder derogation.
- The more positive emotions, the better altruistic
- Helping close ones is less help, but only others is neglecting
Article 3:
Prosocial behavior: any kind of behavior that benefits other people of society.
Prosocial consumer behavior: purchase behavior that involves self-sacrifice for the good of
others or society.
Examples of prosocial consumer behavior:
- Cause-related marketing
- Charitable giving
- Consumer activism
- Sustainable purchasing
- Volunteerism
Altruism: selfless behavior
Study: study shows that when performing prosocial behavior, there are hedonic benefits
(positive emotional outcomes). So there is always something that benefits themselves so it is
not purely altruistic.
What’s in it for the consumer?
- Altruism: nothing
- It makes a statement about me (it is a costly signal)
- So it enhances reputation and Costly signaling theory
What motives people to behave prosocial?
1. Self-interested motives (external)
o Direct benefits: eating vegan for health or donating for tax reduction.
o Indirect: like reputation
o Reputation for cooperation (proof social)
Willingness to confer benefits onto others.
Ability to confer benefits onto others.
o To proof this we engage in two types of behaviors
Altruistic/cooperative actions (we engage in to show others)
Costly signaling (costly behavior to signal capability)
2. Hedonic benefits (internal)
o Warm glow: economic theory: sense of joy and satisfaction when helping.
