Consumer Behaviour Models

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Meaning of Consumer Behaviour
Consumer Behaviour is the study of how a customer chooses, buys uses
and dispose of goods for satisfying their needs. It simply refers to the
manner in which a customer reacts in the market. It specifies the way in
which a customer makes purchase decisions in the market.
Different consumers react differently in a market owing to various
factors that influence Consumer behaviour. Various models of consumer
behaviour are developed for proving the effects of these factors on the
behaviour of consumers thereby influencing their process of decision
making.

10 models of consumer behaviour are as given below: –

 Pavlovian Model.
 Psychological Model.
 Sociological Model.
 Family Decision-making Model.
 Economic Model.
 Input, Process, Output Model.
 Howarth Sheth Model.
 Nicosia Model.
 Industrial Buying Model
 Engel-Blackwell-Kollat Model

Consumer Behaviour Models – Pavlovian Model

Pavlovian model of consumer behaviour is developed and named after
the famous Russian physiologist, Iran Pavlov. This physiologist carries
out experiments using dogs for identifying the change in behaviour. Iran
conducted an experiment in which he rang the bell and then immediately
give a meat piece to dog thereby causing them to salivate. He studies the
extent of behavioural changes occurred in dogs owing to the level of
saliva secretion in them.
Practice and personal experience brings changes in the behaviour of an
individual thereby assisting him in a learning process. Drive, Drives and
Reinforcement are the elements of the Learning Process. Internal stimuli
that lead to actions are termed as Drive. Whereas, inborn psychological
needs resulting from pain, hunger, thirst and physical pleasure creating
stimuli leading to triggering and non-triggering cues are known as
Drives. The triggering cues are the one that starts the decision process
and non-triggering cues only influence the process of decision. These
cues assist in forming a response (buy or do not buy) that gets reinforced
in a conditional pattern over time. Psychology is the key basis of this
model possessing acceptability at globe level.

Consumer Behaviour Models – Psychological Model

Psychological model of consumer behaviour is the one that is based on
the theory of Hierarchy of needs given by renowned psychologist A.H.
Maslow. This model has categorized the Human needs into
Psychological, Safety, Love and belonging, Ego and Self-Actualization
needs. Hierarchy of needs is the name given to this categorization of
needs.
As per the psychological model, the needs of a consumer influences his
behaviour. The needs of the consumer never get over and arise one after
another over the period of time. The consumer keeps his basic needs at
first priority for satisfying them and then moves on to other needs of
higher level. This cycle continues until the point of time when he
reached the top level in the hierarchy of needs.
Consumer Behaviour Models – Sociological Model
Sociological model states that the behaviour of consumer is influenced
by society comprising of versatile groups. These groups are divided into
Primary and Secondary groups. Family members, relatives, friends and
closed acquaintances are included in the Primary group. Whereas, any
member in society having similar personality and requirements as of
consumer is termed as Secondary group. In a holistic manner, this model
pays attention to the consumer’s lifestyle and their related product
requirements in society.

Consumer Behaviour Models – Family Decision making

Model
Family decision-making model states that every family member plays a
distinct role in the purchase decision of a person. In total, the family
members are categorized into 6 types who are the main determinants of
the decision process of an individual.
These family members are: User, Influencer, Preparer, Gatekeeper,
Buyer and the Decider.
 The user: User is the individual who is planning to purchase a
product for consumption. User may be a single individual or a
whole family depending upon the type of product for which the
purchase decision is to be taken. For e.g. A mobile phone may be
used by a single individual whereas a motor bike may be used by
all family members.
 The influencer: He is the key member who plays an important role
in all decisions taken within the family members. An influencer is
the one who brings all information regarding new product and
services arrivals in the market to all other members of family.
 The preparer: Preparer is a person giving a final shape to a product
in which it is consumed by family members.
 The Gatekeeper: Gatekeeper is a person in a family who restrict
the entry of any disliked products to family members. He is the one
who influences the decisions for the products that are useful for
members of family.
 The Buyer: He is the person who finally buys the product or
service.
 The Decider: Decider is the one possessing money power in family
for buying a product finalized by all members.

Consumer Behaviour Models – Economic Model

Economic Model of consumer behaviour states that buying decisions of
the consumer are influenced by the utility concept. Man is assumed to be
a rational human being under economics, who chooses such product that
offers him a maximum utility. They follow the maximum utility
principle that is based on the law of diminishing marginal utility.
Consumers desire of attaining maximum utility by spending the
minimum amount. It is assumed that he will allocate his spending over a
different variety of product with an intention of deriving maximum
benefits.
Economic model is based on following three effects: Income effect,
Price effect and Substitution effect.
 Income Effect: States that with the rise in income level of
consumer, his purchasing power will increase and he will purchase
more products.
 Price Effect: States that lesser the price of the product, more will
be the quantity of goods purchased.
 Substitution Effect: States when substitute goods are available at
cheaper cost, then original product will be purchase in lesser
quantity by consumer.

Consumer Behaviour Models – Input, Process, Output

Model
Input, Process, Output Model of Consumer behaviour is the one that
pays attention on product that is marketed, external forces and
consumer’s family background.
Input and Output factor that are included in this model are: –
 Input: It comprises of forces like marketing efforts taken by
company and environmental forces that influence the process of
decision making of consumer. Marketing forces includes product,
price, promotion and place. Whereas, environmental forces
comprise of family, culture, reference group, social class etc.
These are the important factors which consumer properly evaluates
before making any purchase decision.
  Process: Process includes various steps through which consumers
goes through before making a buying decision. These steps are
need, recognition, awareness, examination and finally the
purchase.
 Output: Output mean the way in which a consumers react to the
marketing efforts of company. Some of the consumer response to
marketing efforts are-
 Purchase Decision
 Selection of Product
 Selection of Brand
 Selection of store or dealer
 Amount and timing of purchase
 Behaviour post purchase

Consumer Behaviour Models – Howarth Sheth Model

Howarth Sheth model states the difficulties related to consumer and tells
that there are 4 sets of variables that influence the consumer behaviour.
These Set of variables are: –
 Inputs Parameters
 Output Parameters
  External variables
 Perceptual and Learning Constructs
 Input Parameters: Input parameters includes 3 types of stimuli-
Significative stimuli, Social stimuli and Symbolic stimuli. Physical
tangible characteristics of product like uniqueness, price, quality
and availability of stock is termed as Significative stimuli. Social
stimuli include factors of Consumer societal group, family and
reference groups. Whereas, individual perception about features of
a particular product is known as Symbolic stimuli.
 Output Parameters: Output parameters in Howarth model is the
final decision of purchase by consumer and his level of satisfaction
and dissatisfaction from such purchase.
 Perceptual and Learning Constructs: It refers to the internal
variables that influence decision making process of buyer such as
his motives, attitude, perception, experience and learning. On
receiving the stimuli, consumer interpret it which is influenced by
2 factors namely perceptual bias and stimulus ambiguity. These
factors are the main that influence consumer to examine the
product for finally buying it.
 External variables: These are indirect factors affecting the buying
decision of consumer like social class, financial status, time
pressure and personal traits of buyer.

Consumer Behaviour Models – Nicosia Model

Nicosia model of Consumer behaviour takes into account the exposure
level that a consumer gets in relation to his decision of purchase. There
are 4 fields which forms the basis of this model in such a way that one
field is an input for next field and so on.
 First field: There are 2 sub-fields in first field of Nicosia model
namely. Firm attributes and product attributes are components of
 first sub-field. Second sub-field includes consumer existing
attitude towards the product and attributes revealed by organization
whose products to be purchased.
 Second field: Refers to evaluation and research done by consumer.
 Third field: Relates to consumer purchase decision.
 Fourth field: Relates to behaviour after using the product, its uses,
storage and consumption. It is concerned with the satisfaction or
dissatisfaction level of customer after purchasing the product.
Feedback from fourth field is an input for first field which forces
organization for changing the attributes of its product, thereby acts as an
input for field 2.
Consumer Behaviour Models – Industrial Buying Model
Industrial Buying model of consumer behaviour is concerned with
purchase making process of industrial set up. The industrial process of
decision making involves several departments that relates to decision
making either directly or indirectly. This models discusses the key
characteristics related to industry purchase decisions.
In decision making process of industries, there are individuals of
different backgrounds. Joint decision making is unavoidable here which
results in opinions clashes in between the departments.
Individuals involved in decision making process are from distinct
departments like Finance department, Research and development
department, Quality control department, Technical support department
and Manufacturing department. The committee formed for taking
purchasing decisions include people of varying perceptions, using
distinct sources for acquiring information, varying satisfactions coming
from their past experience and search experience dependent on their
varying skills.
Purchase decisions of an industrial setup are mainly influenced by two
main factors: Product related factors or factors related to organization
producing that product.

Consumer Behaviour Models – Engel-Blackwell-Kollat

Model
Information Processing (IP), Central Control Unit (CCU), Process of
Decision making and Environmental influences are the four main
components that forms the basis of Engel-Blackwell-Kollat Model.
 Information Processing (IP): It depends on several forces acting as
stimuli from both marketing and non-marketing point of view.
Exposure, attention, comprehension and retention are 4 elements of
Information Processing.
 Central Control Unit (CCU): It involves 4 psychological factors
that are customer previous experience related to product, Customer
product evaluation criteria, Customers varying mindsets and
consumer personality on which he takes buying decision.
 The Decision Process: It involves identifying the problems,
searching internal and external information, examining the
available alternatives and finally buying product. This component
considers the satisfaction and dissatisfaction level post of making
purchases that influences decision making process of consumer in
future.
 The Environmental influences: This component of Blackwell-
Kollat model comprises of all such forces favoring or disfavoring
the consumer buying decision. These Forces are income level and
financial status of consumers, family influences and social class in
society.