Differing Points of View: Understanding the Psychology of Business

There are reasons why some people and organizations in the business world are more effective than others. Research using social scientific methods has studied individuals in the business workplace environment to identify relationships, methods and more. The psychology of business is a way to understand the connection of successful relationships between, workers, employees, consumers and organizations for mutual benefit.

Human Needs

There are six common human needs that impact every business. People want to avoid pain and experience pleasure. There is a need for change and to experience new stimuli. People want to feel important, special as well as needed. People also need to have a strong connection with an organization and the people involved with it. They want to have an opportunity to expand their knowledge as well as skills and understanding. People also need to have a sense of service as well as an opportunity to give help and provide support.

Research Methods

There are a number of research methods used to analyze what creates the best practices for a business organization. A number of quantitative, qualitative methods or a combination of both have shown to be effective. Methods of data collection often involve things such as surveys, interviews, focus groups, case studies as well as questionnaires and more. Individuals who earn an applied psychology degree will know how to use such methods to analyze consumer behavior and learn how a consumer’s mind works.  If needed, you can always visit here for more information about applied psychology degrees from a college like USC.  Learning how your consumer’s mind works is of the utmost importance when running a business.

Reciprocity

In the world of business, doing something will probably cause it to come back to you in a reciprocal manner. According to researcher Dr. Robert Cialdini, this is an important part of doing business. It involves giving away some promotional item or providing a free 30-day trial. Designing a way to say thank you to employees as well as customers is important. When these methods are done correctly, they can create a community of dedicated customers and employees.

Consistency and Commitment

This is important business behavior. When a successful company commits to something, their consumers know they will go through with it. The company is always consistent in their words and deeds. This makes it possible for consumers to commit to things a company is providing. A company being consistent will attract consumers who are comfortable making commitments. This type of behavior is often the basis for customer loyalty. Understanding the psychology of business will enable a company to create and build a better organization. They will attract more customers, better employees, and leaders who are effective. Understanding the psychology of business is often the foundation that leads to success in the business world. Editor’s Note: Next week we’ll discuss how all of this relates to inventory management software.