Overseas Buying Behaviour Notes Unit 1
Overseas Buying Behaviour Notes Unit 1
1.Problem Recognition
Put simply, before a purchase can ever take place, the customer must
have a reason to believe that what they want, where they want to be or
how they perceive themselves or a situation is different from where
they actually are. The desire is different from the reality – this
presents a problem for the customer.
However, for the marketer, this creates an opportunity. By taking the
time to “create a problem” for the customer, whether they recognize
that it exists already or not, you’re starting the buying process. To do
this, start with content marketing. Share facts and testimonials of what
your product or service can provide. Ask questions to pull the
potential customer into the buying process. Doing this helps a
potential customer realize that they have a need that should be solved.
2. Information Search
Once a problem is recognized, the customer search process begins.
They know there is an issue and they’re looking for a solution. If it’s a
new makeup foundation, they look for foundation; if it’s a new
refrigerator with all the newest technology thrown in, they start
looking at refrigerators – it’s fairly straight forward.
As a marketer, the best way to market to this need is to establish your
brand or the brand of your clients as an industry leader or expert in a
specific field. Methods to consider include becoming a Google
Trusted Store or by advertising partnerships and sponsors prominently
on all web materials and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts – a leading
dealer of Ford Mustang parts – allows you to increase search rankings
and to provide a sense of customer security by displaying your status
on your website.
Increasing your credibility markets to the information search process
by keeps you in front of the customer and ahead of the competition.
3. Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a
customer will absolutely purchase your product or service. In fact,
now more than ever, customers want to be sure they’ve done thorough
research prior to making a purchase. Because of this, even though
they may be sure of what they want, they’ll still want to compare
other options to ensure their decision is the right one.
Marketing to this couldn’t be easier. Keep them on your site for the
evaluation of alternatives stage. Leading insurance provider
Geico allows customers to compare rates with other insurance
providers all under their own website – even if the competition can
offer a cheaper price. This not only simplifies the process, it
establishes a trusting customer relationship, especially during the
evaluation of alternatives stage.
4. Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of
the six stages of the consumer buying process. At this point, the
customer has explored multiple options, they understand pricing and
payment options and they are deciding whether to move forward with
the purchase or not. That’s right, at this point they could still decide to
walk away.
This means it’s time to step up the game in the marketing process by
providing a sense of security while reminding customers of why they
wanted to make the purchase in the first time. At this stage, giving as
much information relating to the need that was created in step one
along with why your brand, is the best provider to fulfill this need is
essential.
If a customer walks away from the purchase, this is the time to bring
them back. Retargeting or simple email reminders that speak to the
need for the product in question can enforce the purchase decision,
even if the opportunity seems lost. Step four is by far the most
important one in the consumer buying process. This is where profits
are either made or lost.
5. Purchase
A need has been created, research has been completed and the
customer has decided to make a purchase. All the stages that lead to a
conversion have been finished. However, this doesn’t mean it’s a sure
thing. A consumer could still be lost. Marketing is just as important
during this stage as during the previous.
Marketing to this stage is straightforward: keep it simple. Test your
brand’s purchase process online. Is it complicated? Are there too
many steps? Is the load time too slow? Can a purchase be completed
just as simply on a mobile device as on a desktop computer? Ask
these critical questions and make adjustments. If the purchase process
is too difficult, customers, and therefore revenue, can be easily lost.
6. Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In
fact, revenues and customer loyalty can be easily lost. After a
purchase is made, it’s inevitable that the customer must decide
whether they are satisfied with the decision that was made or not.
They evaluate.
If a customer feels as though an incorrect decision was made, a return
could take place. This can be mitigated by identifying the source of
dissonance, and offering an exchange that is simple and
straightforward. However, even if the customer is satisfied with his or
her decision to make the purchase, whether a future purchase is made
from your brand is still in question. Because of this, sending follow-
up surveys and emails that thank the customer for making a purchase
are critical.
Take the time to understand the six stages of the consumer buying
process. Doing this ensures that your marketing strategy addresses
each stage and leads to higher conversions and long-term customer
loyalty.
Consumer research process
Developing Research Objectives
Projective Techniques
In this article, the different types of data collection methods and their
advantages and limitations are explained.
Interview Method
The method of collecting data in terms of verbal responses. It is
achieved in two ways, such as
• Government publications
• Public records
• Business documents
• Diaries
• Letters
• Unpublished biographies, etc.
UNIT 1 DATA ANALYSIS AND
RESEARCH REPORT
Structure
Objectives
Introduction
Data Analysis and Interpretation
1.2.1 Definition
1.2.2 Types of Data Analysis
1.2.3 Steps in Descriptive Analysis
1.2.4 Analysis of Data
Application of Computer for Data Analysis
1.3.1 Anatomy of Computer
1.3.2 Basic Functions
1.3.3 Advantages of a Computer
Writing a Research Report
1.4.1 Purpose
1.4.2 Types of Research Reports
1.4.3 Content
1.4.4 Style of Writing: Language, Bibliography, References, Quotations
1.4.5 Sample Research Report
TerminaVSelf Assessment Exercises
Let Us Sum Up
Key Words
Answers to Check Your Progress
1.0 OBJECTIVES
After going through this unit, you will be able to:
defne analysis and interprekon;
list the descriptive measure used for the analysis;
describe the steps of descriptive analysis;
interpret the findings in selected examples;
list inferential techniques used for studying relationship and difference of
mean;
explain the basic principles of hypothesis testing;
define the term generalization;
explain how generalization are made;
state the purpose of writing research report;
identify the types of research report;
describe the content of research report; and
6 explain the style of writing' report.
1 1 INTRODUCTION
In Block 3 you have read about methods of data collection. In this unit you
will learn what to do with the data. This is the most interesting part of the
research study. Let us review the characteristics of research tool.
" Itr 11n;rljsis and You have read in Block 3 that an ideal measuring instrument must be accurate
L~c!rnductiol~to Statistics
and valid. If a test is valid, it will measure what the researcher wants to measure.
Most commonly the type of validity used is content validity. Reliability refers to
the accuracy and consistency of a measuring tool and is measured by reliability
coefficient. Sensitivity, objectivity, practicability are some of the other criteria of a
measuring tool.
1.2.1 Definitions
Data Analysis
The word analysis means the categorizing, ordering and summarizing the data
statistically to obtain answers to research questions.
In a way, analysis of data consist of putting all the factual information collected
into an order and summary according to the variable studied, objectives drawn and
the hypothesis stated.
In the above example the analysis involves adding the frequencies (i.e., the
number of women, and the symbol of frequency is f of women under each age
category and find. the total number and percentages. Further, in example the
analysis also includes presentation of the data in a tabular form. The interpretation
may be made in terms of maximum/majority or minimum of women in an age
group. For example, you can say that " (i) majority of women, i.e., 52 per cent
belong to the age group of 34-41 years; (ii) only 24 out of 200 women (12%)
were 50 years age or above; (iii) 74 per cent of women are in the fertility group,
i.e., between the age of 18 to 41 years".
Given below are some of the examples of statistical analysis including inferential
statistics used for testing hypothesis:
Statistical Methods Used for Hypothesis Testing
Data Analjsis iultl
1.2.3 Steps .in Descriptive Analysis Research Reput t
Following steps are taken by the researcher for preparing the data for analysis. If
the data are not large and the analysis process is simple, the researcher usually
processes the analysis by-hand using a simple calculator; otherwise computer
services are sought for data processing.
Now the data are ready for transferring them to the Master sheet. Note that
for each variable presented in each column the total number will equal to
total sample No. in this case 57.
Example 2: Master Sheet N=57
The master sheet of data gives an overall picture, the range of numbers, how
many high, low and or average scores, cluster of scores, large gaps in the data,
missing elements, etc.
The author, here, has not stated the hypothesis but has expressed her guess
answer to whether the Barwala women's preference of use of trained personnel
is statistically associated with the proximity (or nearness) to the services
available. The probable research hypothesis is stated below:
Research hypothesis: Significantly more women of Barwala village, where the Data Analysls and
sub-center is located, will prefer the trained personnel for delivery than the Reseemh Report
women of Bataur village, where there is no health center.
Null hypothesis: There will be no association between the Barwala and Bataus
women's choice for trained personnel for delivery and the location of health
center.
In other words, the researcher is willing to run a 5 per cent error when slhe
rejects the null hypothesis.
iii) Generalization
Generalizations refer to the application of findings to a particular population,
i s . , haw far the researcher can stretch the conclusions from the sample
findings. For example, from a group of 800 students you draw a sample of 100
students randomly, and assess their attitude towards HIV/L41DS. Can you now
generalize!predict the attitude of 800 students on the findings of these 100
students Will these 100 students have same attitude as the other students of
India ?
The word analysis means the sorting, ordering and summarizing the data to
find answers to research questions: whereas interpretation refers to the study
of results of data analysis for inference and conclusions.
Data Analysis and Descriptive statistics enable the researcher to reduce, summarize and describe
introduction to Statistics the data obtained. Some of the common methods used are: frequencies,
percentage, ratio, proportion, graphical presentation, measures of central
tendency, measures of variability and correlation coefficient. Inferential statistics
help in testing hypothesis and in analyzing the data to draw conclusions about a
population. Example of inferential statistical analyses are chi-square and t-test.
Activity 1
Read Research Report on Project IND-HND-007 given in the beginning of
Block 3 and identify the types (s) of analysis the researcher had applied in her
study.
Data Analysis and
1.3 APPLICATION OF COMPUTER FOR DATA Research Report
ANALYSIS -
Terminal: A combination of the keyboard (to input data) and VDU {to output
data) is called a terminal.
There are different types of computers, such as Digttal Computers, which
measure digital data and perfom arithmetic and logical operations: Analog
Computers - which measures eontiawusly changing conditions, such as,
temperature, pressure a d conver& them into quantities. Hybrid Computers -
which combine features of Analog and Digital Computers; General Purposes
Computers - a computer is &signed to solve a wide range of problem.
Majority of digital computers are of this type.
1.4.1 Purpose
The main purpose of research report is to let others interested in the subject
know the findings of the research. The researcher himseltlherself may have
definite purpose of writing the research report.
Examples of purposes are listed below:
1) Research is conducted for the partial fulfillment of the degree like M.Sc.,
Ph.D. Therefore writing report is a part sf the academic programme.
2) Research is conducted to find an answer to the problems faced by the
practitioner, teacher or administrator. Here the report is written to
communicate the findings to others in the profession for critiquing,
application of result or future investigation in the area of research.
3) When the research is funded by the government or a research foundation.
They stipulate the requirements of the report.
1.43 Content
The content of a research report may vaay accordii to the institutional or
putslidon requirements. Before. a researcher sits down to write, S h e should
fiasQ out r
k requii=mentsof the academic institution, funding agency or the
pubilcation agency. An outline of ihe, c a f m t s of a typical report is given
beis w:
Data Analysis and Introduction
to Statistics
ll~trnd~action
This section contains background of the problem, need for the study, problem
statement, statement of objectives, theoreticaVconceptua1 kamework, operational,
definitions, assumptions, scope and delimitation and statement of hypothesis, if
any,
i) Background of the Problem: Outlines the problem area, studies done in
this area and the findings of such studies, the areas not explored and
needing further investigation.
ii) Need for the Study: This is an extension from the previous section but
specific to the research topic. The researcher explains the need for the
study by quoting available statistics where needed, mentioning the
recommendations of other researcher suggesting for further investigation of
the problem, and justifying the need for doing the present study.
iii) Problem Statement: The reader is advised to review Unit 1 for &ting the
statement of a problem. The problem statement should indicate the nature
of the study e.g., "to find relationship between", "to compare the
performance of, "to explore the" or "to answer the question", etc.
iv) Statement of Objectives: The objectives are written in observable and
measurable terms. Each objective states one purpose. These may be stated
in declarative form or question form. Refer to IND-HHD-007.
For example
Do families prefer to use untrained dais when trained personnel are
available?
This can be stated in a declarative form: e.g.
To identify the preference of the families regarding their choice of
untrained dais when trained personnel are available.
v) Rationale for the Study: This could be developed into a theoretical/
conceptional framework that supports the investigation, development of
hypothesis, construction of instrument and analysis and interpretation of
findings.
vi) Operational Definitions: All variables are defined in a way that indicate
how they are observed and measured.
vii) Scope and Limitation: The scope indicates the areas that are covered and
where the results could be applied, whereas tile delimitation indicates what
the researcher is not investigating and the limitations that are taken into
consideration, while planning the research.
For writing a Thesis or Monograph these areas (listed from (i) to vii) are
usually included in Chapter I, whereas for an article these descriptions are
included in the introductory section of the article covering three to four
paragraphs.
Literature Study
There are different sections in the report on review of literature. The first para
usually contains the areas of related literature reviewed and the outline of the
presentation. While organizing the written report, present the broad areas first
and then the specific areas: For example in IND-HND-007 first the author
writes on maternal mortality and mobility, and then presents on utilization of
rural health services.
This is the second chapter of the thesis report. Theoretical framework may
follow the review of literature. It is important to bring out a comprehensive
summary in the last paragraph of the chapter. For an article, usually a
paragraph or two are written on the related research review.
Methodology
This section contains i) the research approach, design (specially if experimental
or evaluated method is adopted), ii) description of dependent and independent
variables (if these are not discussed in Chapter 11), iii) development or selection
of research instrument including pretesting, reliability and validity,
iv) description of the tool, v) description of study setting, vi) sample and
sampling technique, vii) procedure for data collection, and. viii) plan of data
analysis.
The summary of the chapter is a necessity if the chapter is long.
This is the third chapter of the thesis report. The organization of different
section may vary on which comes first or second because there is no hard-and-
fast rule about it. The writer using herhis intuition and logic. Use figures
necessary to show the desigri or relation of variables.
This is also a major section in an article. A brief description of each of the sub-
section are mentioned above are presented in brief. Usually the content is
presented under the heading of method or research design and cover at least 4-5
paragraphs in the article.
Data Analysis and Interpretation
This is one of the major chapters/sections which presents: i) the methods used
for analysis, and ii) the findings of the study. It is a logical development of
analysis presented according to the objectives and hypothesis stated in earlier
section.
One of the most common methods of presentation of descriptive analysis is:
i) To use tat and graphs. ii) The statistical analysis for the test of significance is
presented by stating the null-hypothesis, the inferential statistics selected and
indicating the result of test of significance. iii) Use tables to present data.
i) All expected and unexpected findings and the conclusions drawn from each
of the findings are presented. It also explains how far generalization of
results can be made The researcher also reasons out if the hypothesis
tested is found to be not significant.
ii) The implication indicate author's reflective thinking in terms of possible
application of the result. For example, if the survey indicate 70 per cent of
pregnant women are anaemic, the implications may be written on the
probable reasons for anaemia and what health care strategies can be
adopted to improve the status. In other words, that implications suggest the
values of these findings in terms of patient care improve educational
changes or the administrative strategies to be adopted.
iii) Limitations of the present study are noted here. Limitations are those
restrictions or problems which the researcher had not deliberately planned
out but comes across while doing the study.
iv) The recommendations give direction to future research and suggestion for
improving the present study.
Usually a monograph expounds on the conclusions and implications. It not
only says what may happen if the system continues but also what need to
be done for future.
v) Besides a summary, an abstract is prepared (executive summary) which
usually contains 500-1000 words.
In an article two or three paragraphs are written to discuss the implications. A
short summary is made which is usually put as a synopsis at the beginning of
the article.
Appendices, Bibliography, References
This section is specially needed for thesis and monograph and is not required
for an article. Except that all references used in the content are to be listed at
the end of the article. An approved style is to be adopted to write the
references and bibliography.
Acknowledgement, Preface, Table of Content
Acknowledgement, table of content, list of tables and figures are included in
the first part of the research report. The monograph in addition also includes a
page on preface. Articles do not require this section.
xi) Use the symbol for per cent (%) only when preceded by a number e.g., 22%.
Otherwise use the word percentage when a number is not given. If the per
cent is used in the running text it is better to use the word and not the
symbol. But use the symbol in the table or when the number is used in
parentheses. Examples:
Majority (80%) of the children were malnourished.
Children in the age group of below five years 80 per cent were
malnourished.
xii) Usually a sentence is not started with a number; but if used write the
number in words.
Example 1
Eighty per cent of children were malnourished.
Some numbers are expressed in words in the text, i.e., any number
below 10 is written in words. Example:
Out of 100 subjects nine were female students.
Bibliography and References
There are different styles of writing bibliography and references. The writer has
to select one of the recommended methods or follow the method prescribed by
the publisher or the institution. There may by minor changes in punctuation and
order, but basic elements remain the same between methods. In this unit the
form recommended by the American Psychological Association (APA style) is
used.
A reference list cites works that are specifically referredquoted in the writing,
e.g., in quotation; in reference to theory, in reference to the selection of tool
etc. Each reference cited in the text must be entered in the reference list. This
is in contrast to a bibliography list which cites works for background or
further reading and not necessarily they have been referred in the text. In other
words all the relevant studies that have helped the researcher in planning and
conducting the research and in analyzing the research result are included in the
bibliography list.
---
interpretations of each sub-divisions or the entire entry. Underline the title
of the book and the name of the journal.
Example 2
Periods separate the sub-division:
I
Commas separate within sub-divisions:
I
Journal (Underline the volume number and Journal title)
I
Book
' J.B. Lippicott Company, 1979'
A Colon separates the place of publication and the publisher:
I
'Philadelphia: J.B. Lippincon Company, 1979
Parenthesis extended, qualify, or interpret ( note the book title is underlined)
Book
Journal
Where each issue of journal starts with page 1, enter issue number after
volume.
Inverted order of names (surname first)
Short Quotation
Example 5
They stated "Evaluation research has an important role to play both in
localized settings and in programmes at the National level" (Polit and Hungler,
1978, p. 210).
Block Quotation
Example 6
Kaith (1987) explains that, ethical theories provide a framework which let
us determine what we ought to do. Professional nursing decisions made by
an appeal to justice should, in the long run, carry more weight than just
doing the best we can. h c h appraach may remove some of the inequalities
in health care that have come through the 'he who shouts loudest gets the
most way of allocating resources'.
Summary
In this section we learnt about the purpose and types of research report.
The reports are usually written as a thesis, monographs or article for
publication in journal or magazine. The content outline can be broadly
divided as introduction, review of literature, methodology, data analysis and
interpretation, summary and conclusions. The introduction section include:
background of the study, need and justification for the study, problem statement,
variables, objectives and hypothesis, scope and limitations, and assumptions.
Methodology includes: justification and explanation of research approach,
sampling technique and size of sample, setting of the study, construction or
selection of instrument for data collection, procedure for data collection and the
plan of data analysis.
'
Style of writing references and bibliography is recommended by the publishers
and the research departments of institutions. The writer has to follow them
strictly. Reference are works that are referred in the text whereas bibliography
includes all the relevant literature reviewed irrespective of "referred" or "not
referred" status.
1.4.5 Sample Research Report Data Analysis and
Research Report
Title: A'Study on Development of Evaluation Model for Nursing
Programme through Distance Education
The objective of the study were: i) To construct a set of evaluative criteria for
the development of a programme evaluation model, ii) To develop a programme
evaluation model for nursing programme through distance education, iii) To
determine empirical validation of the programme evaluation model on the B.Sc.
Nursing Programme of IGNOU.
The sample of the study comprised experts from nursing education and distance
education. All 405 third year leamers who appeared for the mental health
nursing terminal examination conducted in December, 2002 and their 35
Academic C o ~ s e l l o r swho were involved in conduct of theory and practical
courses of mental health nursing were a part of the study. The records of
IGNOU also formed the sample of the study.
The instruments developed and used for generating necessary data were:
I) evaluative criteria checklist for the development of PEM, ii) programme
evaluation model checklist, iii) records checklist, iv) opinionnaire for the
learners on mental health nursing course on theory and practical and
v) opinionnaire for the academic counselors on mental health nursing courses in
theory and practical.
The data obtained were analyzed using frequency and percentage. Qualitative
analysis was done for open-ended responses. Chi-square was used to test the
significance of references in the responses of two groups.
Significant findings of the study revealed that all the experts agreed on the
most of the items on the evaluative criteria. However, some suggested a
reorganization of items which were incorporated. The final evaluative criteria
had eight areas. Guidelines were developed as suggested by experts.
There was 100 per cent agreement by the experts on most of the items on the
PEM in terms of experts' comments the PEM was finalized under three frames:
evaluation of and development, evaluation of implementation and evaluation of
monitoring.
The empirical validation of the PEM was established by testing it on the B.Sc.
Nursing Programme of IGNOU through records checklist, opinion of learners
and opinion academic counselors.
Findings revealed that records were available on almost all the areas listed in
the records checklist.
It was found that the mean age of learners were 40.3 years and most of them
were female. Three fourth of nurses worked as staff nurses. The mean gap of
resuming education was 8 years.
The profile of Academic Counselors indicated that about half of the ACs
were in age group of 29-50 years. Most of them were women. As many as
Data Analysis and 46 per cent had specialization in mental health and psychiatric nursing. On a:
Introduction to Statistics
average, ACs had 15 years of teaching experience and 18 years of clinical
experience.
It was found that both the groups, the learners and academic counselors
provided evidence to the effect that the various dimensions mentioned in the
recommendations of PEM were relevant.
The two groups differed in their opinion on adequacy of lab facilities and use
of academic media. Both the groups emphasized that increasing theory
counseling and practical contact sessions in mental health nursing course was
important.
Based on the findings on the research, it was recommended that a study may
be conducted on empirical validation on implementation of PEM on larger
sample. It was also recommended that PEM can be tested on other distance
education programme for nursing. Empirical validation of PEM may be done by
using other tools to establish its reliability.
Activity 2
Read the research report of IND-HND-007 given in the beginning of BNS-111,
Block 3 and answer the following questions.
i) What was the purpose of her writing the research report?
ii) What is the type of report?
iii) How many paragraphs have been used to explain the methodology?
iv) How are the findings-of descriptive, analysis presented?
Data Analysis and
,qesejreh*s y o r t
- - -
1) Plans for the interpretation of data need not be done before the data
collection.
2) The methods used to collect data must be appropriate to the study of the
problem being studied.
3) The reason-for organizing data for analysis is to make manifest possible
relationships, proportions, trends or tendencies.
4) Analysis of data is simplified if tables are designed before the data is
collected.
5) The degree to which a sample mean represents its parameter is an index of
the significance or trust worthiness of the computed statistics.
Data Analysis and 6) The ultimate aim of the nurse researcher is to make generalizations about
Introduction to Statistics what has been observed in a single study.
7) Generalization means extending the implicating of the data to a drawn
population from which a study sample was drawn.
8) Generalization involves moving from broad concepts to specific ones.
9) The size of the ample is an important factor to consider in making a
generalization.
10) Conclusion refers to the summary of research 'report.
11) One of the most important reminders when writing conclusions is to draw
conclusions that go beyond the data analyzed.
12) Inductive and deductive reasoning can lead to the implications of research.
13) A research report usually is written in past tense.
14) The more technical words and phrases used in writing a research report.
15) A research report should be organized in the same chronological order and
as the research study can completed.
Evaluating a research plan involves critically appraising both the merits and the
limitations of the plan. A systematic assessment of the various section of a
research plan is essential in judging the utility, value and scientific nature of the
study.
In this unit you have learnt about -analysis and interpretation of research data,
so as to make the data more meaningful by presenting into tabulation and
statistical form. The steps of data analysis that is collection, organization of
data presentation and interpretation of data. This unit also describes about how
to communicate the findings to the researchers interested in subject. The
purpose types, .content and style of writing report have been elaborated.
In this chapter, various models of consumer behaviour are explained. These models explain
how a consumer searches and gets the information and goes on to make a decision for
himself, for his family or for the organisation. The student must understand the:
• Input, process and output model
• Individual decision-making
• Family decision-making
CHAPTER 20
20.1 Introduction
We have already seen that there are many factors which influence the decision-making of
consumers. There are various consumers models which help in the understanding of consumer
behaviour. These are listed below. We shall discuss these briefly.
1. Economic Model
2. Psychological Model
3. Pavlovian Model
4. Input, Process Output Model—Gandhi: Philip Kotler
5. Sociological Model
6. Howarth Sheth Model
7. Engel-Blackwell-Kollat Model
8. Model of Family Decision-making
9. Nicosia Model
10. A Model of Industrial Buying Behaviour.
1. Economic Model
In this model, consumers follow the principle of maximum utility based on the law of diminish-
ing marginal utility. The consumer wants to spend the minimum amount for maximising his
gains.
Economic man model is based on:
Price effect: Lesser the price of the product, more will be the quantity purchased.
Substitution effect: Lesser the price of the substitute product, lesser will be the utility
of the original product bought.
Income effect: When more income is earned, or more money is available, more will be
the quantity purchased.
This model, according to behavioural scientists, is not complete as it assumes the homo-
geneity of the market, similarity of buyer behaviour and concentrates only on the product or
price. It ignores all the other aspects such as perception, motivation, learning, attitudes,
174
MODELS OF CONSUMER BEHAVIOUR 175
2. Psychological Model
Psychologists have been investigating the causes which lead to purchases and decision-mak-
ing. This has been answered by A.H. Maslow in his hierarchy of needs. The behaviour of an
individual at a particular time is determined by his strongest need at that time. This also
shows that needs have a priority. First they satisfy the basic needs and then go on for second-
ary needs.
The purchasing process and behaviour is governed by motivational forces. Motivation
stimulates people into action. Motivation starts with the need. It is a driving force and also a
mental phenomenon. Need arises when one is deprived of something. A tension is created in
the mind of the individual which leads him to a goal directed behaviour which satisfies the
need. Once a need is satisfied, a new need arises and the process is continuous.
5. Self-actualisation: Self-fulfilment
Drive
This is a strong internal stimuli which impels action. Because of the drive, a person is stimu-
lated to action to fulfil his desires.
Drives
Can be innate (in-born) which stem from physiological needs, such as hunger, thirst, pain,
cold, sex, etc. Learned drive, such as striving for status or social approval.
DHARM
N-ADVER\AD20-1.PM5
176 CONSUMER BEHAVIOUR
Cause are weak stimuli that determine when the buyer will respond. We have:
(a) Triggering Cues: These activate the decision process for any purchase.
(b) Non-triggering Cues: These influence the decision process but do not activate it.
These are of two kinds:
1. Product cues are external stimuli received from the product directly, e.g., colour
of package, weight, style, price, etc.
2. Informational cues are external stimuli which provide information about the
product, like advertisement, sales promotion, talking to other people, sugges-
tions of sales personnel, etc.
Response is what the buyer does, i.e., buys or does not buy.
Reinforcement
Thus, when a person has a need to buy, say clothing, and passes by a showroom and is at-
tracted by the display of clothing, their colour and style, which acts as a stimulus, and he
makes a purchase. He uses it, and if he likes it, an enforcement takes place and he is happy
and satisfied with the purchase. He recommends it to his friends as well, and visits the same
shop again. Learning part, thus is an important part of buyer behaviour and the marketeer
tries to create a good image of the product in the mind of the consumer for repeat purchases
through learning.
Personality
Purchase
Need Intention
recognition
Firm’s Post-purchase
Perception
Motivation
marketing behaviour
effort Product
Interest Evaluation
awareness
Social Repeat
environment purchase
Attitudes
Need recognition
When one is aware of a want, tension is created and one chooses a product to satisfy his needs.
There is also a possibility that a person may be aware of a product before its need is recognised.
This is indicated by the arrows going both ways from the need to the product and vice-versa.
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MODELS OF CONSUMER BEHAVIOUR 177
Product awareness
Product awareness can be had from advertisement or exposure to different types of media or
by the social circle. The awareness and the need leads to the building of interest. In some
cases, the interest may also breakdown and, the decision process also stops or may be post-
poned for the time being.
Evaluation
Evaluation may consist of getting more information about the product and comparing and
contrasting it with other products. This can be done theoretically or by taking a trial. Once the
evaluation is completed, the consumer’s interest may either build up and he has intentions to
buy, or he may lose interest and the decision process may again stop or be postponed.
Intention
Once there is intention to purchase the product, the consumer goes ahead and acts or pur-
chases the product. Once the product is purchased, it is used to fulfil the need and, the more
the product is used, the more the consumer becomes aware of the positive and negative points
of the product.
Post-purchase behaviour
If, after the purchase and use of the product the customer is satisfied, he is happy and goes in
for repeat purchases or recommends the same to his friends and acquaintances. If, however,
the customer is dissatisfied, he discontinues further purchase of the product and builds a
negative attitude towards it, which may be harmful to the company.
The post-purchase behaviour is very important for the marketeer and the company
because it leads to proper feedback for improvement and maintaining the quality and features
desired by the product. If the customer is very happy with the purchase, he forms a good
impression about the product and the company.
The above figure shows three stages in terms of stimuli buyer’s black box and buyer’s
response.
The consumer gets the input from the marketing effort of the firm (4 Ps) and the other
stimuli. This input is processed in the mind (Black Box), which constitutes the characteristics
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178 CONSUMER BEHAVIOUR
of the buyer and the process of decision-making. Once the buyer has decided to buy then, he
responds in terms of his choice of product, brand, dealer, timing and amount.
The post-purchase behaviour of being satisfied or dissatisfied is also important, and is
shown in the decision-making process.
5. Sociological Model
This is concerned with the society. A consumer is a part of the society and he may be a member
of many groups in a society. His buying behaviour is influenced by these groups. Primary
groups of family friends and close associates exert a lot of influence on his buying. A consumer
may be a member of a political party where his dress norms are different. As a member of an
elite organisation, his dress requirements may be different, thus he has to buy things that
conform to his lifestyles in different groups.
Input
Some inputs are necessary for the customer for making decisions:
These inputs are provided by three types of stimuli as shown in Fig. 20.4.
(a) Significative stimuli: These are physical tangible characteristics of the product. These
are price, quality, distinctiveness, services rendered and availability of the product. These are
essential for making decisions.
(b) Symbolic stimuli: These are the same as significative characteristics, but they in-
clude the perception of the individual, i.e., price is high or low. Quality is upto the mark or
below average. How is it different from the other products, what services can the product
render and, what is the position of after sales service and how quickly or easily is the product
available and, from where.
(c) Social stimuli: This is the stimulus provided by family, friends, social groups, and
social class. This is important, as one lives in society and for the approval and appreciation of
the society, buying habits have to be governed.
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Perceptual Constructs
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Motives attitudes
Perception which
influences decision
making process
(Psychological variables)
Learning Constructs Outputs
Intention Purchase
Inputs
Stimulus display
significative stimuli Intention
Physical (a) Quality
Tangible (b) Price Overt search Confidence
Price paid (c) Distinctiveness
(d) Service
(e) Availability
Intangible
Symbolic Stimuli
Perceptual Attitude
(a) Quality
product Attitude
(b) Price Stimulus
perception ambiguity
(c) Distinctiveness
that price is
(d) Service Choice Brand Brand
high or low Motives
(e) Availability criteria comprehension comprehension
symbolic
Social groups Social Stimuli
to which (a) Family
customer (b) Reference groups Attention
belongs (c) Social class
Attention Perceptual
bias Satisfaction
179
180 CONSUMER BEHAVIOUR
These two factors influence the individual for the comprehensions and rating of the
brand. If the brand is rated high, he develops confidence in it and finally purchases it.
Output
By output we mean the purchase decision. After purchase there is satisfaction or dissatisfaction.
Satisfaction leads to positive attitude and increases brand comprehension. With dissatisfac-
tion, a negative attitude is developed. The feedback shown by the dotted line and the solid
lines shows the flow of information.
7. Engel-Blackwell-Kollat Model
It consists of four components:
(i) Information processing
(ii) Central control unit
(iii) Decision process
(iv) Environmental influences.
Information processing
A shown in the diagram the information processing consists of exposure, attention, compre-
hension and retention of the marketing and non-marketing stimuli. For successful sales, the
consumer must be properly and repeatedly exposed to the message. His attention should be
drawn, such that he understands what is to be conveyed and retains it in his mind.
Decision process
This chapter is dealt with later in the text, and consists basically of problem recognition, inter-
nal and external search, evaluation and the purchase. The decision outcome or the satisfaction
and dissatisfaction is also an important factor which influences further decisions.
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MODELS OF CONSUMER BEHAVIOUR 181
Environment
Information Processing Central Control Unit Influences
Personality
Family
Filter
Comprehension Social class
Evaluative
criteria
Physical
Retention
Attitude Other
Problem
recognition
Information
feedback Hold
External
search Internal search
and alternative
evaluation
Hold
External search
and alternative
evaluation
Hold
Purchasing
processes
Outcomes
Post-purchase Further
evaluation behaviour
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182 CONSUMER BEHAVIOUR
The decision process may involve extensive problem solving, limited problem solving or
routinised response behaviour. This depends on the type and value of the product to be pur-
chased.
Environmental influences
The environmental influences are also shown in a separate box and consist of income, social
class, family influences, social class and physical influences and other considerations. All these
factors may favour or disfavour the purchase decisions.
(i) Influencers
The members who influence the purchase of the product by providing information to the family
members, the son in a family may inform the members of a new fast food joint. He can influ-
ence the family members to visit the joint for food and entertainment.
(iii) Deciders
These are the people who have the power or, money and authority to buy. They play a major
role in deciding which product to buy.
(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the house etc. Father
buying crayons for his children.
Preparers
Those who prepare the product in the form it is actually consumed. Mother preparing food by
adding ingredients to the raw vegetable. Frying an egg for consumption, sewing clothes for the
family, etc.
User
The person who actually uses or consumes the product. The product can be consumed indi-
vidually or jointly by all members of the family. Use of car by the family, use of refrigerator,
TV, etc.
The roles that the family members play are different from product to product. Some
products do not involve the influence of family members—vegetables bought by the housewife.
She can play many roles of a decider, preparer as well as the user. In limited problem solving
or extensive problem solving there is usually a joint decision by family members.
The diagram shows the predisposition of various family members, which when influenced
by other factors leads to joint or individual decisions. These factors are shown in the diagram
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Sex Personality Confidence Reference Group Social Class Life Style Role Orientiation
Overt Buying
Search Motives
Perceptual Predisposition
Bias of Father
Sensitivity of Evaluative
Information Beliefs
Autonomous
Sources of Members
Decisions
Information
Overt Buying
Search Motives
Masss Media
Family
Perceptual Predisposition
Display Buying Family
Bias of Mother
Decisions
Word of Sensitivity of Evaluative
Mouth Information Beliefs
Joint Household
Decisions Unit
Overt Buying
Search Motives
Predisposition
Perceptual
of Other Family
Bias
Members
Sensitivity of Evaluative
Information Beliefs
183
Fig. 20.6 A model of family decision-making
184 CONSUMER BEHAVIOUR
and consist of social class, lifestyle, role orientation, family life-cycle stage, perceived risk,
product importance and time pressure.
9. Nicosia Model
This model explains the consumer behaviour on the basis of four fields shown in the diagram.
The output of field one becomes the input of field two, and so on.
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Temporary Economic Conditions,
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Direct Mail
(1)
Expectations of Autonomous
Press Releases 1. Purchasing Agents Decisions
2. Engineers
Journal 3. Users Supplier or
Advertising 4. Others Brand Choice
Professional and
Technical (2)
Conferences Industrial Joint
Buying Decisions (3)
Trade News Process Conflict Resolution
1. Problem Solving
2. Persuasion
Word-of-Mouth 3. Bargaining
(2a) (2b)
(1d) Product Specific Company Specific 4. Politicking
Others Perceptual Factors Factors
Distortion
185
Fig. 20.8 An integrative model of industrial buyer behaviour
186 CONSUMER BEHAVIOUR
The persons involved in the decision-making are from quality control, manufacturing,
finance, research and development and other possible areas. These may be named as purchase
agents, engineers, and users, as referred to in the model.
These constitute a purchasing committee. They have:
(1a) Different backgrounds
(1b) Different information sources
(1c) Undertake active search
(1d) They have perceptual distortion
(1e) Satisfaction with past purchase.
With these characteristics, they develop certain expectations from the product to be
bought. The obvious ones are product quality, delivery time, quantity of supply, after sales
service and price. These are known as explicit objectives. There are other objectives as well,
which are the reputation of the supplier, credit terms, location of the supplier, relationship
with the supplier, technical competence and even the personality, skill and lifestyle of the
salesman. These are known as implicit objectives.
Different individuals in the purchasing committee give emphasis on different aspects of
the product. Engineers look for quality and standardisation of the product.
Users think of timely delivery, proper installation and after sales service. Finance peo-
ple look for maximum price advantage. Thus, there are conflicting interests and view that
have to be resolved. If autonomous decisions are made, these issue do not surface. There are
conditions leading to autonomous or joint decisions.
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trade, strikes or lock outs. Organisational change such as a merger, acquisition change of key
personnel, etc. Sometimes these factors outweigh the realistic criteria of decision-making.
This model explains how purchase decision are made in an industrial organisation.
All the models discussed in this chapter give us an idea of the buying behaviour in
diverse situations. An understanding of these models gives the marketeer clues to formulate
his strategies according to the target audience, e.g., an individual, a family or an industry, etc.
Questions
1. What is the significance of the Pavlovian Model? Discuss in brief.
2. Discuss and illustrate the Input, Output Process Model by means of a diagram.
3. Discuss the Howarth Sheth Model, the Engel-Blackwell-Kollat Model as applicable to
individuals.
4. Discuss the model of family decision-making and its importance.
5. Discuss the various fields of the Nicosia Model.
6. How is industrial buying different from individual buying? Illustrate by means of an
industrial buyer model.
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