Understanding consumer psychology

Understanding consumer psychology

Consumer psychology

Consumer psychology

Are you interested in learning about consumer psychology? If your business has got to the point where you earn a large profit but you need a cash infusion to help you expand to the next stage, you should consider franchising or finding investors.

Learn more: Franchising advantages and disadvantages

I earned a BA in psychology from the University of Victoria so I spent a lot of time analyzing the reasons why people choose to buy a product or service. While every individual has their own personality and circumstances, there are common traits that are true to all investors.

Jack Trout wrote a book called Positioning: The Battle for Your mind. It lead to a lot of changes in the marketing industry and consumer psychology. I have summarized the main points in the book below. You will see that the key theme for what investors look for is simplicity. If the investor does not understand your business model, they will not buy.

Minds…

  • Can lose focus, as they are easily distracted.
  • Are insecure which is why “industry experts” easily sway them.
  • Rarely change. They actually find change so difficult that much of our intelligence is devoted to rationalization. This means that we spend so much of our mental energy trying to convince ourselves to either do, or not do, something.
  • Are limited in the amount of information they can retain.
  • Tate confusion and they are attracted to things that are easy to understand.

If you read through this article, it appears that you find franchising interesting! Read about HART Legal’s business expansion here. There are other franchise opportunities available as well. A successful dessert store (Bon Macaron) is in the process of franchising their brand. They already have three locations, and their financials look amazing! If you want more information on the legal franchise or Bon Macaron, text 778-676-3808.

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