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Howard Sheth Model

The Howard-Sheth model attempts to explain complex consumer decision making when information is incomplete. It identifies three levels of decision making: extensive problem solving when a consumer has no brand preferences; limited problem solving when some information is known; and habitual response behavior when a consumer is familiar with brands. The model also identifies four sets of variables that influence the consumer decision process: inputs like marketing communications; perceptual and learning constructs around how consumers understand information; outputs like preferences and purchase intentions; and exogenous variables such as a purchase's importance.

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ibmahapatra
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35 views

Howard Sheth Model

The Howard-Sheth model attempts to explain complex consumer decision making when information is incomplete. It identifies three levels of decision making: extensive problem solving when a consumer has no brand preferences; limited problem solving when some information is known; and habitual response behavior when a consumer is familiar with brands. The model also identifies four sets of variables that influence the consumer decision process: inputs like marketing communications; perceptual and learning constructs around how consumers understand information; outputs like preferences and purchase intentions; and exogenous variables such as a purchase's importance.

Uploaded by

ibmahapatra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Topic:-Howard-sheth model

I B Mahapatra
 Steps in consumer decision making model:-
1) Need recognition
2) search for information
3) Alternatives
4) Evaluation
5) Purchase
6) Post purchase evaluation
 There are three important models which explain consumer
decision making
 Howard-Sheth model of buying behavior
 The Nicosia model.
 The Engel-Blackwell-Miniard (EBM) model.
 The Howard-Sheth model of buying behavior attempts to
explain the complexity of the consumer decision making
process in case of incomplete information.

 This model suggests three levels of decision making


A) Extensive problem solving.
B) limited problem solving.
C) Habitual response behavior.
 At this level the consumer does not have any basic
information or knowledge about the brand and he does not
have any preferences for any product.

 In this situation, the consumer will seek information about all


the different brands in the market before purchasing.
 This situation exists for consumers who have little
knowledge about the market, or partial knowledge about what
they want to purchase.

 In order to arrive at a brand preference some comparative


brand information is sought.
 In this level the consumer knows very well about the different
brands and he can differentiate between the different
characteristics of each product.
 According to the Howard-Sheth model there are four major
sets of variables:
 Inputs.
 Perceptual and Learning Constructs
 Outputs
 Exogenous(External) variables
 INPUTS:- These input variables consist of three distinct types of
information sources in the consumer’s environment.

 Significative:- Information furnishes physical brand characteristics


such as Quality,price,distinctive,service,availability.

 Symbolic:-verbal or visual product characteristics such as


Quality,price,distinctive,service,availability.

 consumer’s social environment:- family, reference group, and


social class.
 Perceptual and Learning Constructs:-
It deals with the psychological variables
involved when the consumer is making a decision.
 How the consumer receives and understands the information
from the input s.
 consumers goals, information about brands, criteria for
evaluation alternatives, preferences and buying intentions are
all included.
 Outputs:-
The outputs are the results of the perceptual and learning
variables and how the consumers will response to these variables .
 Exogenous(External) variables:-
some relevant exogenous variables include

 The importance of the purchase,


 Consumer personality traits,
 Religion, and
 Time pressure.

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