In order to begin applying psychological concepts to business, a thorough understanding of psychology itself is required. Numerous definitions exist, but they all lead to psychology as the study of the mental processes that influence human behavior. Simply said, psychology is the study of human behavior and its causes. This concept goes beyond its original description by asking why we behave in certain ways. And this should be the proverbial eureka! moment for a company.

You might not realize it, but businesses use psychological tricks on us all the time. For instance, the primary motivation for developing and supporting a marketing campaign is to increase sales of the advertised product or service.

A company's success can be enhanced by its leaders' familiarity of the role psychology plays in the business world.

As with Maslow's Hierarchy of Needs, satisfying these six basic desires will bring in more customers and expand your brand's reach. Possibilities for reliability, richness, relevance, relationship, development, and impact.

Many advertisements are motivated by the basic economic principle of supply and demand. That's why, as we discussed before, marketing messages will frequently include a clock. Time constraints are one factor that motivates consumers to make purchases, but the fear of running out of a product or service can also be a powerful motivator. Experiments on the effects of scarcity, limited resources, and supply and demand on human behavior have been undertaken on and off over the years.

Facebook is a practical illustration of this idea. Harvard students were the first to have access to the social sharing platform, but the site's success led to its expansion throughout the Ivy League and then, in September 2006, to all users. When does the perception of limited resources have the desired effect on the minds of buyers and sellers?

Read more: Importance of psychology in business