1) Sigmund Freud developed psychoanalytic theory which proposed that unconscious drives influence human behavior and personality development. He described the id, ego, and superego parts of the psyche. 2) Psychoanalytic theory is relevant for marketers because consumer purchase decisions reflect personality traits. Consumers relate personality traits to products and brands. 3) Marketers can segment markets based on which parts of the psyche - id, ego, or superego - are dominant in influencing consumer behavior.

1. Consumer Behavior- 2015 - Prof. Rajesh Satpathy

2. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
The study of personality has been a matter of discussion;
contributions are varied and debatable.
Major contribution to the topic of study was made by the father of
psychology, Sigmund Freud. Other contributions came from
psychologists like Carl Jung, the Neo Freudians (like Adler, Sullivan
and Homey) and the Trait theorists.
Theories on personality can be categorized as …
• Individual theories;
• Social learning theories.
Sigmund Freud
Freud developed the theory of psychoanalytic personality development which
Implicated certain structures of the human mind and conflicts among these structures in the development of human personality.

3. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Freudian Theory:
Sigmund Freud, the father of psychology, became famous with its
psychoanalytic theory of personality. In fact the theory is regarded
as the cornerstone of modern psychology.
Sigmund based his theory on certain assumptions:
1. Unconscious needs or drives lie at the heart of human
motivation and personality.
2. The socialization process that takes place within people in a
social set up has a huge impact on individual behavior.

4. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
The id, ego, and superego…
According to Freud's structural model, the personality is divided into the id, ego, and superego.
On this diagram, the portion above the water signifies the conscious mind, while the portion
below the water illustrates the unconscious mind.

5. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Based on the level of awareness, the human mind comprises three
parts, viz., conscious, preconscious and the unconscious or the sub-
conscious;
The conscious mind is what one is aware of at any particular
moment of time and reflects ones present thoughts, feelings,
perceptions, fantasies, etc; it restricts itself to the current thinking
processes and comprises a very large part of our current
awareness.
The preconscious mind or the "available memory" is what can be
retrieved and made conscious, and brought to mind instantly or
quickly; It is what we are aware of but not paying attention to at a
point of time; it is something that can be brought into the
conscious mind.

6. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
The larger part of the human mind consists of the unconscious,
which is all that stays at the subconscious level, and comprises the
unaware, better known as our drives or instincts, feelings and
memories and emotions related to trauma;
This part in content and process is out of direct reach of the
conscious mind, and thinks independently; an individual has no
access to because it is unknown and hidden.

7. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
This unconscious part is the source of all our drives and motives;
yet we are often deny or refuse to accept and often resist them
from becoming conscious.
This is because they form the unaware part and are in a disguised
form. It is because of this unconscious part that we are largely
unable to control many aspects of our behavior, especially those
acts which we would prefer to avoid.

8. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
According to Freud, much of human behavior is driven directly
from the subconscious mind; and so it is important that the
unconscious material needs to be brought into the conscious state
so that it can be examined in a rational manner.
Apart from these, Freud spoke of the Id, Ego and Super ego.
The Id contains consists of primitive drives that lack the real
perception of reality. It operates on the pleasure principle, with the
objective of seeking pleasure and avoidance of pain, and doing
what one wants to do. The processes that come into play are
primary processes like hunger, thirst etc.

9. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
For Example: A starving man may form a mental image of a
delicious meal. This is an example Freud termed as wish fulfillment,
and marketers use this in their advisements…

10. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
The Ego is aware of reality and operates via the reality principle,
where it recognizes what is real and understands that behavior has
consequences. The processes that come into play are secondary
processes, like learning and memory, perception etc.
It also includes the impact that socialization has to play in the life of
an individual; it recognizes the existence of social rules that are
necessary in order to live and socialize with other people, and thus,
plans to satisfy ones’ needs within the social values and rules.

11. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
The Super ego comprises the value system and the morals, which
originate from what an individual learns in childhood from his
parents.
It is contained in the conscious part of our memory. It believes in
doing what the society says !!!

12. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
For example, there are variants of the same motorbike; some plain
and sleek, some trendy and some powerful, each of which are
meant for separate segments.
Thus, marketers could take a clue and segment consumers on the
basis of the personality traits that determine their behavior.

13. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Implications for marketers:
The Freudian theory holds relevance for a marketer. First,
consumer reactions in the marketplace with respect to purchase
decisions and post purchase behavior are a reflection on individual
personality. Just as people have personalities, similarly
product/brands also have personalities.
Consumers tend to relate "personality-like" traits to different
products and brands. Consumers match their personality styles
with the product/brands they buy.
Thus, marketers should segment markets and position their brands
accordingly.

14. Types of Consumer Buying Behavior
Complex buying behavior:- when the consumer is highly involved
in the buying process and there is significant differences between
brands then it is called complex buying behavior.
So in this case the consumer must collect proper information
about the product features and the marketer must provide
detailed information regarding the product attributes.
eg. Consumer while buying a motor cycle is highly involved in the
purchase and has the knowledge about significant differences
between brands.

15. Types of Consumer Buying Behavior
High involvement:- This means when the consumer is highly
involved while buying a product. Generally this situation happens
in case of expensive or luxuries goods. Like while buying a
diamond necklace, Luxury Car a consumer is highly involved in the
decision making process.

16. Types of Consumer Buying Behavior
Complex buying behavior:- when the consumer is highly involved
in the buying process and there is significant differences between
brands then it is called complex buying behavior.
So in this case the consumer must collect proper information
about the product features and the marketer must provide
detailed information regarding the product attributes.
eg. Consumer while buying a motor cycle is highly involved in the
purchase and has the knowledge about significant differences
between brands.
Harley Davidson iron 883

17. Types of Consumer Buying Behavior
Complex buying behavior:- when the consumer is highly involved
in the buying process and there is significant differences between
brands then it is called complex buying behavior.
So in this case the consumer must collect proper information
about the product features and the marketer must provide
detailed information regarding the product attributes.
eg. Consumer while buying a motor cycle is highly involved in the
purchase and has the knowledge about significant differences
between brands.
harley davidson iron 883
Harley Davidson V-Rod "GP-1"

18. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Based on the dominant personality system, the three elements, Id,
Ego, and Super Ego can also be used to segment markets. The
dominance of either of these would lead to a different personality
make up, and variation in decision making styles and consumption
patterns;
For example, where the Id is dominant, the person would be
pleasure seeking, often irrational; his priorities and consumption
patterns would be very different to another consumer who exhibits
dominance of Ego (rationality) and Super Ego (rationality plus social
norms).

19. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Second, the study of personality also holds good when we speak of
colors, as personality factors are associated with and reflective of
specific colors.
Like, green denotes freshness, nature; red denotes passion, anger;
black denotes power, sophistication; white denotes purity, chastity
and cleanliness; gold and silver denote regality and wealth.
Marketers keep such associations in mind while designing the
product, its packaging as well as the advertisement.
For example, mouthwash is white, herbal soaps are green,
motorcycles are generally black and red etc.

20. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Third, with a majority of human drives being unconscious,
consumers themselves are often unaware of the true reasons for
buying a particular product or brand.
Many a times, a consumer fails to provide an answer as to why he
bought a red shirt and not a yellow one.

21. PSYCHOANALYTIC THEORY AND THEIR IMPLICATION FOR MARKETERS
Fourth, much of the processes that come into play while purchase
decisions and consumption patterns is unexplainable; behavior is
many a times instant and spontaneous much against market
forecast.
For example, Hrithik Roshan movies made by Mr. Rakesh Roshan
and team like Koi Mil Gaya, Krish etc. have been huge box office
hits, but Kites made under the same banner was quite a disaster,
much against marketer expectations !!!

22. Thank You!