Psychological Factors Affecting Consumer Vulnerability

Consumer vulnerability has wide range of application for the seller. Vulnerability refers to the change which takes place by the change of situation or circumstances. Actually it refers to the negative change. People may suffer from-
1) Financial problem due to his changes.
2) A person can become more isolated, may not share things with his relatives and friends.
3) They may or may not participate in social activities.
4) They tends to avoid the crowd.
Vulnerability can come from the company side as well, company perception or behaviour change can also put an massive effect on consumer mind. These are also considered as change. So it can come from of the sides.
So these changes may affect the consumer as well. There is a inter-related situation

We will see the impact of value changes in consumer prospective.
1) Value guides consumer purchase- people search for value in their product. So the previous history of purchasing and purchasing guides him to buy a product.
2) Life-cycle- life cycle of a consumer sometimes changes the perception towards a product. Young and mature people must have different perception. Young people tends to change where mature people does not want to change. So talking about vulnerability the consumer life cycle is one of the most important thing.
3) Manufacturer and retailer reputation- manufacturer and retailer have perception in the mind of consumer. The consumer tried his mentality towards them. These perception change effect consumer buying decision.
4) Business philosophy- business philosophy creates a huge impact on consumer perception. As the philosophy of consumer change by time the perception of buying decision changes of customers.
5) Corporate stakeholder- the stakeholder of the company also affect the perception of the customers. More or less everyone is stakeholder of the organization. This concept plays a vital role in the consumer mind

We can how much consumers are we getting on the basis of period and time. Is it more or less.
3) Develop a realistic estimate- we can make a estimation which is realistic. We cannot argue for having too much consumers or too less consumers. We can focus mainly on rational assumption. Here I want to say that they should include consumer life time value. How much consumer need to pay for his life time. If the rational predication does not match the real estimate, we can think that something is wrong here.
4) Estimate the cost to retain a customer- research shows that it is less expensive to retain a customer compare to acquire a customer. They should focus on how they can keep customers in their hand. Research shows that 80 per cent of the company’s profit comes from 20 per cent of the customers. So how much expensive it is to retain a customers is also an indicator of customer vulnerability.
Apart from data and statics we can focus on the psychological factors of consumer vulnerability. There is a black box behind every person’s brain. Mysterious things happen there. This will be my approach to cover the things