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BMA604 Consumer Decision Making

Table of Contents

Section A 3

Question 1 3

Section B 5

Question 2 5

Question 3 7

Section A

Question 1

Maslow’s Hierarchy of needs theory is a motivational theory , which is used in psychology. It signifies the hierarchy of human needs where certain needs require to be fulfilled before the others. Application to the given products market promotion:

Handbags- Handbags are used for keeping cash and belongings which is important for every human being. People do not want to lose their cash and stuff which is why this product is so important. It is a product whose demand is everlasting and will never die. There are different types of handbags of varied designs and prices so sometimes it is also dependent on esteem needs. Marketers have to target audiences accordingly. However, the product’s everlasting demand depends on the safety and security needs factor mostly.

Marketing of Handbags-

  • People of all classes of the society are likely to invest in this product because deficiency needs are common to all classes irrespective of income levels and wealth so marketers can target a wide range of customers

  • Marketing will also depend on factors such as fashion and trends while marketing it to upper-class people so this product will be dependent on both safety and security and esteem needs

Smartwatches- It illustrates the Esteem needs in Maslow’s hierarchy of needs. They are symbols of status and luxury in present times. The needs for status and position are esteem needs because they arise out of the requirement to obtain other people’s respect and appreciation. The demand for pricey products such as smartwatches arises among people because they are symbols of status and position. It is common mostly among rich and upper-middle-class people. These people have already been able to fulfill their physiological and security needs and are on the way to reaching self-actualization. Such needs arise in people when they have large amounts of disposable cash. It is not possible to fulfill these needs unless the physiological and security needs are satisfied. 

Marketing of Smartwatches

  • Rich and upper-middle-class people should be targeted because they have fulfilled their physiological and security needs and have disposable cash in hand

  • Gadget lovers are likely to be influenced because of their love for pricey and digitally advanced gadgets. Here marketers have to influence by explaining the popularity and rising trend for the product and buyers will be convinced out of the need to show off and gathering appreciation

  • People who do not have disposable cash can be influenced by using the same psychology of popularity and trend and they are likely to be convinced out of the need to obtain dignity and respect among others.

Toothpaste- The demand for this product is dependent on physiological needs because it is a necessity in daily life, which is used in households regularly. The demand for this product is universal and required by each person irrespective of income levels, wealth, or lifestyle. Marketers can target all audiences irrespective of class and lifestyle.

Marketing of Toothpaste

    • Marketers can target all audiences and there is no specific classification of the target audience

    • Marketing will depend on the preference of brands, taste, price, and requirements which will vary among audiences but demand is static

Section B

Question 2

Episodic or autobiographical memories work by sensory neuron systems which are touch, feel, tactile sensation, taste, hear, and see. These memories are private and idiosyncratic. This requires operant conditioning, which produces vivid long-lasting memory of a product purchased. Also, the marketers understand this kind of semantic memory of a customer, which leads to customer expectation and satisfaction to the level. The marketers use these conditions of the brain knowledge and memory to influence the products, which were previously seen by the customers and used by the customers. We can relate to a birthday gift that we saw in a store or any product in advertisement and assess its quality and working principle to buy the product. Sometimes positive experiences have the opposite effect. PAWBO is one such product.

Three techniques used by marketers are as follows:

  1. Promotion of empathy and product identification- Episodic memories help the consumer to identify better goods by creating a situation, which states that the advertised product is superior to any other product in the market. For example, garbage is quite necessary for our houses. Hefty garbage bags advertisement shows that it is durable and has higher strength by depicting normal garbage paper in the advertisement as a product, which is readable and splits open. Whereas, Hefty garbage is quite sealable and does not tear off. This situation the customers will be able to recall and they will start buying Hefty garbage bags. This is the rewiring of the episodic memory, which the customers' brain interprets from the earlier difficulty that they had while using these bags. This essence creates a psychological impression in their mind and helps in the increased sale of the product. The marketers use this technique to promote empathy and situational conditioning to help the customers to buy their products. Similar psychological conditions of showing the feature of treating the pet gave customers to identify the product.

  2. Cue and preserving episodic memories- Customers are loyal to some products and brands and possess positive sentiment for those products because this product produces episodic memory by creating nostalgic feelings and fond memories of the past use. Most of the consumers preserve these memories and help marketers create services so that they can document. This episodic memory of preserved creates a cue and provides opportunities for the marketers to have customers be more loyal to their product because of their durable and customer expectant product. In this way, Pravo Craft, the producer of Circuit paper cutters, gains $400million annually.

  3. Reinterpretations of past consumption of experiences- advertisements affect the episodic memory and help consumers relate an experience with the advertised goods. There was a study, which let the customers taste bad flavored and good flavored orange juice and then allowed to watch the ad which describes the good tastes of the orange juice. Most customers remember bad-tasting orange is the best tasting orange juice. This happens through explicit and implicit episodic memories that the persons adapt with visualization and this is interpreted by the marketers and allows them to produce customer attraction for the product. For PAWBO also we can see the episodic memories customers can recall with their pets. 

Question 3

To study the consumer purchasing behavior, the selective exposure theory determines who, how, when will buy a product or not. Though the study of consumer psychology is very difficult, the market analysis provides an opportunity to understand the behavior of consumers. People only receive messages, which match his thoughts and beliefs. People try to catch only those messages, which they can incorporate into their minds. Thoughts, beliefs, attitudes, and perspectives control these things. People can dissect information into his mind to select the favorable one, which supports his thought and reject the unfavorable one. Cognitive dissonance theory sets the foundation for this theory. To tackle contrasting ideas as a defense mechanism, get stimulated and it maintains the harmony between the previous beliefs and new ideas. And thus, a balanced environment gets created into the human mind to keep his mental balance with his surroundings and mental condition. 

 The selectivity of stimuli depends on two major factors. These two factors are

1. The previous experience of a customer as it influences the perception of the customer,

2. The reason and motive behind their need and desire, that is, when a stimulus is targeted by a customer, it is interpreted by the personal perspective and experiences of the customer. This interpretation and characterized by:

  • Need

Fulfillment of need is a feeling of comfort. For unsatisfied need to influence perception and make people think about imaginary thoughts.

  • Self-Analysis

The way we think of ourselves and want to be perceived by others. Perceiving our own enhances the accuracy of perception about others.

  • Previous knowledge

This way of perceiving others is influenced by our experience. As per experience, we conclude the present. It molds how a man perceives the current situation. 

  • Mental state

Mental state, psychological balance influence perception. A depressed soul depressingly perceives things.

  • Expectation

Expectation influences perception. Expectation leads people to anticipate something, which can satisfy his expectation.

  • Culture

Morals, ethics, and values of a person are affected by cultural upbringings. It also acts as a powerful factor to perceive others.

PAWBO+ is useful for pet owners to check their pet’s activity throughout the day.

It matches the need of workers to reduce the maintenance pressure of pet animals. Visual interaction facility enables pet owners to use it for their pet. It provides a fun experience and can be operated via android or iOS. Therefore, the service is hassle-free. It is a part of a busy and smart lifestyle and consumers perceive PAWBO+ as it fulfills the needs of the customer. Being new and merrier technology, it influences customers to choose it over their previous experience.


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