Does Psychology Matter in Business?

  1. myalmighty profile image60
    myalmightyposted 4 years ago

    Businesses run because

    Thousands of businesses are being run today just because you and I want them to run. Because they know that we want their businesses to run. Because they know, what we want. This is solely because our psychologies are being studied and worked upon by the companies of today. Does it apply within the business setup to run it successfully? Yes. Up to a large extent.

    You and I can never run a successful business unless we know what and how our customers want the products to be. And for this, we execute surveys, form fillings, one-on-one discussions, so on and so forth. This is how we get to know the insight of our customers and the psychology behind choosing one product, but not another. I, on the other hand, have always been on the other side of the business; the purchasing side. This gives me an opportunity to let you understand how knowing your supplier’s insight may help you attract further more profits for your company.

    The psychology of the employee

    Businesses are operated by highly qualified, efficient and experienced managers. They deal with conditions and manoeuvre their most important resource, the humans, by coordinating their activities efficiently, controlling them, deciding in advance about the tasks to be performed by them, and of course, by leading them to the accomplishment of the result, all of which requires psychology. The employees' behaviour on the other hand also performs the similar role as that of their managers, and that is also nothing but psychology.

    Know your customer very well

    The marketing department is the most closely connected department to psychology, through which it tries to get the insight of the requirements of the customers and develops the ways to realize these requirements in the most cost-effective manner. Through marketing, businesses develop an understanding of their consumers' needs and knowing the market conditions, they are able to develop the best product and deliver it to their consumers. This is all a psychological game.

    Another point to look for is, how does the psychology play its role in making the right purchase at the right price? It may take years of interactions and convenes with your vendors to understand their mind-set, their tricks of the trade, and in what way to persuade them to your terms. Not just knowing the psychology of the supplier helps, but playing with one also comes handy while negotiating for your terms.

    Saving that extra penny

    Psychology, in business context is the thorough understanding of physical and emotional moves of the party on other hand and the tact of targeting moments of weak moves to bring them to use for your profit. For example, you are in a negotiation session with the supplier and you understood that the vendor is very well capable of providing you the supply within the stipulated time-frame and of the right material. Now, the only thing that matters is the price. You notice that the market is full of manufacturers ready to serve you and this particular supplier does not want to lose the opportunity and shows his eagerness to clinch the deal. He has made several pleading eye contacts with you, he has put forward his best price, which is indeed the best in the market and he has shown his keenness to work for you! Bang on! You now know that this is the time to save those extra $500! "Listen Mr. Parker, you bring the price down by another $500 and it is a deal." And, it is a deal! So, here you caught the moves, understood the desire, read the psychology and made it all in your favour.

    But here is the catch. You need to be extremely careful in finalizing any such deals where the supplier goes out of his way and proposes for a discount which was rather hypothetical for you to get before you sat in for this negotiation meet. The cases can be that the supplier may give you a good deal, price-wise; but may compromise with the quality, or the quality, or may even deprioritize the order for delivery!

    In summary, for a successful business to run, internally as well as externally, the psychologies of the employees, the clients and the suppliers need to be brought to their advantage for the multi-fold profits for the company, but with precaution.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)