One psychological factor that I would like to specifically focus on is perception. Perception is defined as "the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture." Basically, perception is used by consumers to produce meaning; it's how they see the world and how they discover that they need help in making a purchasing decision.
There are three parts to perception - selective exposure, selective distortion, and selective retention.
Selective exposure is what consumers use to decide which stimuli they are going to pay attention to and which ones they are going to ignore. Selective distortion happens when information conflicts with a consumer's beliefs or feelings so the consumer changes or distorts the information. Finally, selective retention is when a consumer only remembers the information that supports their personal beliefs and feelings.
Perception plays a huge role in marking because marketeers have to pick up on consumers' perceptions of products and play on them to help sell a product. For instance, if consumers feel a specific way about how the packaging of a product should look, if marketeers pick up on this and change the product's packaging to match what the consumer perceives as something they want to buy, a product will be more successful. Pricing and quality of a product can be dictated by consumers' perceptions of what they should be as well as quality and reliability.
When naming, packaging, advertising products, etc. companies should keep perception in mind. You don't want to create a great product but have it flop because the name was associated with something that people perceive as bad, or the consumers' perceptions of the packaging were negative.
Can you think of any products in which consumer perception caused them to flop?