This branch focuses on the nature and causes of individual behavior in social settings. The principles of general psychology are applied in social situations to understand how society, social groups, and the behavior of others affect the individual’s behavior.

Social psychologists study how we perceive other people, and how our social perceptions influence our behavior. They study group formation and functions, formation and change of attitudes, spread of rumors, nature of social prejudice, interpersonal attraction, leadership functions, propaganda and public opinion, social motivation, and inter-group relations. Their interest overlaps considerably with that of the sociologists. While the focus of the social psychologists is on the individual, sociologists are primarily concerned with studying societal institutions.