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Models of Consumer Behaviour

This document summarizes several models of consumer buying behavior, including traditional models like the economic, learning, and psychological models as well as more contemporary models like the Howard-Sheth model, Nicosia model, and Engle-Kollat-Blackwell model. It provides overviews of each model's key aspects and assumptions. Some models focus on the decision-making process while others emphasize external influences and internal psychological factors that shape consumer behavior.

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252 views

Models of Consumer Behaviour

This document summarizes several models of consumer buying behavior, including traditional models like the economic, learning, and psychological models as well as more contemporary models like the Howard-Sheth model, Nicosia model, and Engle-Kollat-Blackwell model. It provides overviews of each model's key aspects and assumptions. Some models focus on the decision-making process while others emphasize external influences and internal psychological factors that shape consumer behavior.

Uploaded by

Girija mirje
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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By: Vikram.G.

B
Lecturer, P.G. Dept. of Commerce
Vivekananda Degree College
• The Economic Model
• Learning Model
• Psychological Model
• The Sociological Model
• The Howard Sheth Model of buying behaviour
• The Nicosia Model
• The Engle-Kollat-Blackwell Model
• Engle, Blackwell and Miniard (EBM) Model
• Webstar and Wind Model of organizational
buying behaviour
• The Sheth Model of Industrial buying
Contemporary
Traditional Models Models
• The Economic Model • The Howard Sheth
• Learning Model Model of buying
• Psychological Model behaviour
• • The Nicosia Model
The Sociological
Model • The Engle-Kollat-
Blackwell Model
• Engle, Blackwell and
Miniard (EBM)
Model
• Webstar and Wind
Model of
organizational buying
behaviour
This model assumes that with limited purchasing
power and a set of needs and tastes, a consumer will
allocate his/ her expenditure over different products at
a given prices so as to maximize utility.
Bases for Economic Model:
• Price Effect
• Substitution Effect
• Income Effect
Criticism:
• Fails to explain how does the consumer
actually behave.
• Incompleteness in the Model.
• Lack of broader perspective.
This model help marketers to promote association of
products with strong drivers and cues, which would lead
to positive reinforcement from the consumers.

In marketing context, ‘learning’ will help marketers to


understand how consumer learn to respond in new
marketing situations, or how they have learned and
respond in the past in similar situations.

As Consumers also learn to discriminate and


this information will be useful in working out
different marketing strategies.
This model based on the work of psychologists who
were concerned with personality. The view was human
needs and motives operates on buying.
This theory was developed by Sigmund Frued. Acc. To
him human behaviour is the outcome of
• Id
• Super Ego
• Ego

This model is concerned with personality and says


that human behaviour to a great extent is directed
by a complex set of deep seated motives.

Helps the marketer to know how buyers influenced


by symbolic factors in buying a product.
As per this model, an individual buyer is a part of the
institution called society, gets influenced by it and in turn,
also influences it in its path of development.

The interactions with all the set of society leave some


impressions on him and may play a role in influencing
his buying behaviour.

The marketers, through a process of market


segmentation can work out on the common behaviour
patterns of a specific class and group of buyers and try to
influence their buying pattern.
It attempts to throw light on the rational brand behaviour
shown by buyers when faced with situations involving
incomplete information and limited abilities.

The model refers to three levels of decision making:


• Extensive problem solving
• Limited problem solving
• Routinized response behaviour

The model has borrowed the learning theory concepts


to explain brand choice behaviour when learning takes
places as the buyer moves from extensive to
routinized problem solving behaviour.
The model makes significant contribution
to understand consumer behaviour by
identifying the variables which influence
consumers.

• Input variables
• Output variables
• Hypothetic constructs
• Exogenous variables
Input Variables: these variables acts as stimuli in the
environment.
Stimuli can be of Significative, Symbolic & Social

Significative stimuli are those actual elements of


brands which the buyer confronts, where as
Symbolic stimuli are those which are used by
marketers to represent their products in a symbolic
form. Social stimuli are generated by the social
environment such as family, friends, groups etc.
These are which buyer’s observable responses
to stimulus inputs. They appear in the sequence
as below:
• Attention: Based on the importance of the
buyer’s information intake.
• Comprehension: the store of information the buyer
has about the brand.
• Attitude: the buyer’s evaluation of the particular
brand's potential to satisfy his or her motives.
• Intention: the brand which the buyer intends to
buy.
• Purchase behaviour: the act of actually
purchasing, which reflects the buyer’s predisposition
The model proposes a number of intervening
variables which have been categorised into two major
groups: perceptual and learning constructs.

Perceptual Constructs include:


• Sensitivity to information: the degree to which the
buyer regulates the stimulus information flow.

• Perceptual bias: refers to distorting or altering


information

• Search for information: it involves actively


seeking information on the brands or their
The buyer’s learning constructs can be defined as:
• Motives are general or specific goals
impelling action.
• Brand potential of the evoked set refer to the buyer’s
perception on the ability of brands in his pr her
evoked set to satisfy his or her goals.
• Decision mediators are based on the motives. The
buyer will have certain mental rules for matching
and ranking the purchase alternatives.
• Predisposition refers to a preference towards brand
in the evoked set which expresses an attitude
towards them.
• Inhibitors refers to environmental forces like price
and time pressure which may inhibit or put restrain
on the purchase of a preferred brand.
• Satisfaction the extent to which, post actual
purchase will measure upto the buyer’s
• Exogenous variables:
These are list of a number of external variables
(external to the buyer) which can significantly
influence buyer decisions.
• There is a absence of sharp distinctions between
exogenous variables and other variables.

• Some of the variables, which are not well


defined, and are difficult to measure too.

• The model is quite complex and not very easy to


comprehend.
This model attempts to explain buying behaviour by
establishing a link between the organisation and its
prospective customer. It analyse human being as a system
with stimuli as the input to the system and the human
behaviour as an output of the system.

The model suggests that message from the first influences


the predisposition of the consumer towards the product or
services. Based on the situation, the consumer will have
a certain attitude towards the product. This may result in
a search for the product or an evaluation of the product
attributes by the consumer.

If the customer satisfies with above it may result in a


positive response, with a decision to buy the
The Nicosia Model explains in 4 basic areas:
Field 1:- the consumer attribute and the firm’s attributes.
The advt. message sent from the company will reach
the consumer attributes.

Field 2:- it is related to the search and


evaluation, undertaken by the consumer, of the advertised
product and also to verify if other alternatives are
variable.

Field 3:- it explains how the consumer actually buys


the product.

Field 4:- it is related to the uses of the purchased items. It


can also be related to an output to receive feedback on
• The flow is not completed and does not mention
the various factors internal to the consumer.

• The assumption about the consumer being involved


in the decision process with no predisposition about
the various brands is restricting.

• Overlapping between firm’s attributes and consumers


attributes.
• This model talks of consumer behaviour as a decision
making process in the form of five steps (activities) and
other related variables which occur over a period of
time.

• 5 steps involved in the decision process:


• Problem Recognition
• Information Search
• Alternative Evaluation
• Choice
• Outcome
• Other related Variables included in
this model:
• Information input
• Information processing
• Product – brand evaluation
• General motivating influences
• Internationalised environment influences
About the model
• The model has emphasised on the
conscious decision making process adopted by a
consumer.
• The model is easy to understand and is flexible.
• This model recognises that a consumer may not go
through all the steps always. This is because in case
of repeat purchases the consumer may bypass
some of the steps.

• One limitation, the inclusion of environmental


variables and general motivating influences but not
specifying the effect of these on the buyer behaviour.
• It shares certain things with Howard-Sheth model.

• The core of the EBM model is a decision process which


is augmented with inputs from information processing
and other influencing factors.

• Four sections of the Model:


• Input
• Information Processing
• Decision process and
• Variables influencing decision process.
• The EBM Model when compared to the Howard-
seth model is more coherent and flexible than
the latter.

• This model also includes human processes like


memory, information processing and considers
both the positive and negative purchase out
comes.

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