Marketing Psychology and Target Segmentation Quiz

5 steps of the consumer decision-making process

1. problem recogniion

2. information search

3. evaluation of alternatives

4. purchase decision

5. post-purchase behavior

Problem recognition

you realize you need or want something

information search

you research options and gather details

Evaluation of alternatives 

you compare different products or brands

purchase decision

you chooce what to buy and where to buy it 

Post-purchase behavior

you evaluate your satisfaction with the purchase 

Emotional appeals

ads target your feelings rather than logic

social proof

everyone else is doing it mentality

scarcity principle

limited time offer creates urgency

authority figures

celebrity endorsements and expert testimonials

Repitition

hearing the same message multiple times builds familiarity 

Dopamine

the reward chemical from exciting ads or buying an item

oxytocin 

the trust chemical from emotional stories 

serotonin 

the status chemical from luxury items 

adrenaline

the irgency chemical from limited time offers

Impulse buying

purchasing items without prior planning or consideration 

Common triggers for impulse buying

• emotions

• store layout

• special offers

• peer pressure

what percent of all money spent is on impulse purchases? 

40

Common locations for impulse buying

• checkout lines

• end-of-aisle displays

• online recommended sections 

• tiktok shop vidoes or online ads

Planned obsolescence

deliberately designing products with limited lifepans 

Benefits of planned obsolescence for companies

ensures repeat customers and continuous income

impact of planned obsolescence on consumers

higher long-term costs and environmental waste

types of obsolescence

• technological

• style

• functional

FOMO marketing 

marketing that creates anxiety about missing opportunities 

FOMO tactics

• only 3 left in stock

• countdown timers

• exclusive access

Social Media Impact

seeing others with products you don’t have 

psychological effect

triggers stress and impulsive decision-making

Examples of FOMO marketing

• flash sales

• limited edition releases 

• members only deals

Influencer marketing

people you follow recommend products

social comparison

seeing others purchases creates desire

targeting advertising

ads based on your browsing history and interests

instant gratification

one-click purchasing removes thinking time

algorithm manipulation  

platforms show you content designed to make you buy

5 strategies of becoming a better consumer? 

• budgetting 

• wait 24 hrs before making non-essential purchases 

• research products before buying

• unsubscribe from promotional emails and notifications 

• ask if you need or want

Ethics of marketing

is it ethical for companies to use psychological manipulation? 

Consumer rights

• truth in advertising 

• fair pricing 

• product safety

Federal Trade Commission

monitors deceptive advertising practices

Target Market

a specific group of consumers most likely to buy your product or service 

target market characteristics 

• age 

• income

• location

• interests

Benefits of target marketing

• efficiency

• cost reduction

• personalization 

• success rate

efficiency in target marketing

focus resources where most interested consumers are located

cost reduction in target marketing

reduce wasted advertising spending

personalization in target marketing

create more personalized marketing messages

success rate in target marketing

increase likelihood of product success

Market segmentation 

when we divide larger markets into smaller, more specific groups for targeted marketing

Key factors of Demographic segmentation

• age group

• gender identity

• income level

• education background 

• family size 

• occupation type 

Targeting teens

• social media

• trendy

• affordable

targeting young professionals 

• career

• career-focused benefits 

• premium pricing 

targeting older adults

• retirement/family

• family-oriented ads and retirement locations 

• affordable-mildly expensive 

Key factors of geographic segmentation

• global reach

• urban vs rural

• climate impact

Psychographic segmentation

what you believe 

• lifestyle choices 

• core values

• personality traits

• social class

Behavioral segmentation

what you do

• purchase history

• brand loyalty

• usage rate 

• benefits sought 

• readiness to buy 

Target marketing research methods 

• surveys 

• focus groups 

• social media analytics

• customer interviews 

• competitor analysis 

Essential elements to a customer persona

• demographics

• psychographics

• location 

• buying behavior 

• communication preferences