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October 16, 2013

Cracking the Code of Consumer Psychology

Steve Jobs

A version of this post originally appeared on Forbes and is shared with the permission of John Corcoran and Dorie Clark.”

Steve Jobs famously said “people don’t know what they want until you show it to them.” Of course, Jobs was famous for introducing the world to consumer electronics that invented whole new product categories, such as the iPod and iPad. As a result, it was understandable why Jobs didn’t trust consumer behavior.

For most companies, consumer psychology is less of a guessing game. But that doesn’t mean selling to consumers is any easier. Far from it.

Enter Michael Fishman. Michael is a New York-based expert in consumer behavior and consumer psychology who has been helping companies to understand consumer behavior for 30 years.

Fishman says businesses struggle with understanding consumer psychology because many consumers do not behave in rational ways. “Most people can’t answer the simple question of why they want the things they want,” says Fishman. “That’s because our brain drives our decision-making process in ways that we’re not really aware of.”

“Many people, if asked about a specific product or service, can report on whether they want it or not,” says Fishman. “But there are subconscious drivers that also motivate consumers’ decision-making.

“Consumer psychology is all about getting into that unconscious territory where people are being directed to make purchases for reasons they are not clear about,” says Fishman. When businesses labor to understand their own customers’ psychology, business and marketing becomes “way more predictable and more compassionate in a way.”

People often get disappointed by their experiences out in the world, “whether it’s a yoga class or a restaurant, or a hardware shop.” But if people go over and beyond to really take care of you, “those are the kinds of experiences people go out of the way to tell their friends about.”

The bottom line is that you can’t make everyone happy. The goal is you want to make a small group of people happy. As such, consumers are more attracted today to companies and businesses that take a stand. “I know if I say what I believe there might be 10 people who love it, and 10 people who hate it,” says Fishman. “If I’m going to get the 10 people who love it to be a customer of mine, they’re going to be a raving fan,”

“This is not about taking advantage of people,” says Fishman. “This is about bringing products and activities to people’s attention in a way that’s helpful and getting them to become fans of yours. The more fans you have, the more they are apt to buy your products.”

John Corcoran is an attorney, former Clinton White House Writer and the creator of SmartBusinessRevolution.com. You can download his free ebook10 Ways to Use Secret Political Strategies and Tactics to Grow Your Business.

Dorie Clark is a marketing strategist who teaches at Duke University’s Fuqua School of Business. Learn more about her new book Reinventing You: Define Your Brand, Imagine Your Future (Harvard Business Review Press) and follow her on Twitter.

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