Consumer psychology has evolved from focusing on basic needs fulfillment to a deeper understanding of human psychology and motivation. Early theorists like Scott, Bernays, and Dichter established that advertising could appeal to unconscious desires to influence behavior. Current approaches highly segment markets using psychographic factors. As positive psychology emphasizes happiness, advertising could become more effective by appealing to both desires and long-term well-being rather than just instant gratification. The field has progressed from a basic to sophisticated understanding of human psychology relevant to consumer behavior.

1. Consumer Psychology, Then, Now and in the Future 1
Consumer Psychology, Then, Now and in the Future
Siena A. Morgan
Norwich University

2. Consumer Psychology, Then, Now and in the Future 2
Abstract
Since psychologists could first put a name to it in the early 1900’s, consumer psychology
has driven the advertising industry. Leaders in the field steered the field into a direction that has
directly led to the current age of consumerism. This paper is going to examine the beginnings of
consumer psychology, how things were sold and why, as well as assess the current state of the
field. In addition, I will discuss the new waves of ‘positive psychology’ and how this new
movement can and should affect the consumer market, and how future advertising is developed.
Keywords: motivational psychology, consumer psychology, psychographic segmentation,
empowerment, authentic happiness

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Consumer psychology was first brought to light at the turn of the century, when practical
and applicable psychology was first being explored. (Schumann 2008) At this time in history, the
majority of what we today call ‘consumerism’ involved buying things on a need-basis. People
would buy something, use it until it was finished or expired, and then simply replace it. The
focus became brand loyalty, choosing the best product to fill your needs, not necessarily
anything else.
Walter Dill Scott wrote extensively on the topic, publishing his book The Psychology of
Advertising in 1913. He discusses the notion that consumer’s drives are based on sympathy for
the characters they see in advertisements, as well as a plethora of human instincts which Scott
(1913) breaks down as such:
1) “The Instinct to preserve and further the material possessions”
2) Food Instincts
3) Clothing Instinct
4) Instincts of the social self
Each of these is broken down into basics of how the human mind is centered on fulfilling its
basic needs. Little did Scott know, but his studies would be the basics of what Edward Bernays
would later use in his advertising philosophies. Scott discusses that people will pick certain
brands based on how well the advertisement appeals to their instincts; “every instinctive action is
concrete and specific, and is the response of an individual directed toward some object.” (1913)
Later on, in the early 1950’s, Edward Bernays, a prominent man in public relations at the
time, borrowed Sigmund Freud’s idea that human actions are based on two basic drives. (Rathus
2012) His theory was an evolutionary step from that of Scott; the idea that selling people
products based on their inherent notions. However, Bernays went further to include Freud’s

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theory that an individual has both sexual and aggressive desires buried deep within the Id.
Bernays (1952) harnessed the theory and turning advertising and marketing into a psychological
force that could, and ultimately would change the human mentality towards products, people and
ideas;
“Today’s leaders have become more remote physically from the public; yet, at the same
time, the public has become much more familiar with them through the system of modern
communications. Leader’s are just as potent today as ever.”
Bernays, as described in the film, Century of the Self, was a man of power in the most subtle of
ways. He believed that public relations and advertising should, “associate its special pleading
with ideas to which the public is receptive.” (1952)
Pierre Martineau (1957) agreed. “We are using a form of mass communication which
does literally have the power to move people, because it can reach them at far deeper levels than
rational understanding.” Martineau went on to explain that advertising was designed (in those
early days) “to move people as well as to present them with some claims of superiority.
Advertising essentially is dealing with a primitive, prelogical process of the mind- the
compulsion to action initiated by suggestion.” Martineau simply echoed from afar what Bernays
was using in his own practices.
By the mid-twentieth century, it had become common knowledge that people responded
to advertising subliminally as well as rationally. Advertising agencies were hiring psychologists
regularly to find more innovative, effective, and affective ways to get people to buy their
products. Also, due to the golden age after the war, in which people had money to spend, and
grassroots to protect, products and advertising exploded with art and color and subliminal

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messaging. Men had earning power, and women suddenly gained purchasing power. Thus,
advertising shifted to the woman of the house.
Once advertising agencies determined that they had to sell to women, the men of the
industry realized that they knew nothing of women, or their thinking. Thus came about the idea
of behavioral research in relation to products. A pioneer, advocate and facilitator of some of the
most research done up until the 1980’s, was Ernest Dichter. Dichter, born in Vienna, and also a
student and follower of Freud, conducted extensive research and published The Handbook of
Consumer Motivations in 1964, after years of research and surveys from his Institute for
Motivational Research. In the book, Dichter compiled all of his research into patterns that he
recognized about why people buy products, broken down into product categories such as ice
cream, home goods, automobiles, and even vitamins. From here, Dichter (1964) concludes that
there are “bridges of the mind” or faculties that tie “the world of objects with the world of the
mind.” Dichter breaks down these “bridges” into a plethora of both conscious and subconscious
notions, including, attention, anxiety, assimilation, attitude, aggression and acculturation.
Dichter’s conclusions proved to be the major breakthrough in what is a now modern
consumer psychology or consumer motivation. History shows that around the time that Dichter
published his book, new ‘subcultures’ emerged; that is, categories that further individualized
people such as race, religion, etc.
From here, modern consumer psychology changed the advertising world and made ads
more personal for the consumer. Once companies realized how effective and affective
advertising was, they began to pour much of their profits into advertising. This gave advertising
agencies the resources they needed to put forth the majority of their efforts into research and
development of more affective and effective strategies. America’s homes were changing and

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thus, advertising had to change as well. Women weren’t complying with their former roles in
society, men were being sent off to war, and the world was changing and becoming more
technological.
Current consumer theory is highly individualized, and advertising agencies sell the same
product in many different ways to different groups based on beliefs, geographical locations and
even social class. One can tell by how a magazine ad treatment looks and is presented, what kind
of item it is, and how much it costs. However, it still maintains the Bernays- Dichter- Scott
theory of subliminal motivations. People are still buying things for the same inherent reasons, but
advertisements are far more ethnically, socially and politically personal, thus making advertising
campaigns more widely successful. In Michael Solomon’s Consumer Behavior: Buying, Having
and Being, (2007) he describes the highly individualized market as more responsive “if products
and the packages are redesigned to be sensitive.”
J Paul Peter and Jerry C Olsen discuss the same notion in their book Consumer Behavior
and Marketing Strategy (2005), but call the idea of personalized marketing psychographic
segmentation, which separates markets into more specific groups. Psychographic segmentation
breaks down into three categories:
1) VALS- Values, Attitudes, and lifestyles
2) Person/ Situation Segmentation
3) Geodemographic Segmentation
Basically what this means is that a tall, religious woman from Seattle will see a completely
different advertisement for a dress than a free-spirited, shorter, curvier woman will see in
Washington, DC, for the exact same dress. Because of the personalized advertisements, the
woman from Seattle may see herself accentuated in the dress, whereas the curvier woman from

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DC would connect with the ad, because she desires “beauty” as well. Much of today’s
advertising is this way; different artwork, different copy, based on who they are selling to where,
and why they are selling to them.
Because the trend is now individualized, and focused on more effective selling to groups
of people, there is room for both improvement and more effective psychological advertising. The
most effective driving force in the current market is the pursuit of happiness. Since the renewal
of the popular phrase from the United State’s Declaration of Independence in major campaigns
such as Cadillac, it seems that the majority of advertisements are centered on consumer-sought
happiness.
In recent years, Dr. Martin Seligman, a psychology professor from Harvard University,
developed a new theory called Positive Psychology (2002), a concept derived from human
happiness, and optimism for the human mind, contradictory to the common belief that the human
mind is constantly diseased and is in a constant state of repair. Seligman discusses “Why has
evolution endowed us with positive feeling? …What enables these emotions, and what disables
them?” From these questions, Seligman goes on to define what happiness and well-being are,
and separates them into positive feeling of the past, and of the future as such:
“Positive emotions of the past- satisfaction, contentment, pride and serenity. Positive
emotions of the future- optimism, hope, confidence, trust, and faith.”
In addition, the positive emotions of the present are based in desire, again another echo of Freud
and Bernays’ roots in selling products and ideas to people. It is because of the foundation of
Seligman’s theory that happiness is a more effective, attainable goal, and better treatment than
psychoanalysis.

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If advertising adopted a second level of psychological motivation, to not only appeal to
the person’s desires, but to their overall happiness, then it would be much more effective. It
would also be more affective. History has proven that advertising based in psychology can
change people’s ideas and beliefs- so why can’t the idea that spreading positive emotion and
happiness can change overall society? People would be buying products for more than just
instant gratification. Right now, people buy products, believing in their power for ‘happiness’,
and end up disappointed. If advertisements were a level deeper into the human psyche,
gratification would be lasting and not instant.
The idea of consumer psychology has evolved from basic fulfillment of necessity, to a
deeper, more understanding level of knowing what can change social and mass psychology about
life, products, etc.

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Works Cited
Scott, Walter Dill (1913) The Psychology of Advertising. Arno Press: New York
Bernays, Edward (1952) Public Relations. University of Oklahoma Press : Norman, OK
Martineau, Pierre (1957) Motivation in Advertising: Motives that make people buy.
McGraw-Hill Company : New York
Dichter, Ernest (1964) Handbook of Consumer Motivations: The Psychology of the World
of Objects. McGraw-Hill Company: New York
Solomon, Michael (2007) Consumer Behavior: Buying, Having, and Being. Prentice Hall:
New Jersey
Peter, Paul J. & Olson, Jerry C. (2005) Consumer Behavior and Marketing Strategy
McGraw- Hill: New York