BBM 22012 – CONSUMER BEHAVIOUR

Lesson 02
Consumer Behaviour Models
RDSS Rambandara
Introduction

A consumer behavior model is a theoretical framework for explaining why and how
customers make purchasing decisions. The goal of consumer behavior models is to
outline a predictable map of customer decisions up until conversion, thus helping you
understand every stage of the buyer’s journey.
Introduction
There are many factors which influence the decision-making of consumers. There are various
consumer models which help in the understanding of consumer behaviour.

1. Economic Model
2. Psychological Model
3. Pavlovian Model
4. Input, Process Output Model
5. Sociological Model
6. Model of Family Decision-making
1. The Economic Model
 In this model, consumers follow the principle of maximum utility based on the law of diminishing marginal utility.
The consumer wants to spend the minimum amount for maximizing the 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 homogeneity 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, personality and socio-cultural factors.
 It is important to have a multi-disciplinary approach, as human beings are complex entities and are influenced by
external and internal factors. Thus, price is not the only factor influencing decision-making and the economic model
according to scientists have shortcomings.
2. The Psychological Model
 Psychologists have been investigating the causes which lead to purchases and decision-making. 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
secondary 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.
3. The Pavlovian Learning Model
 This model is named after the Russian Physiologist Ivan Pavlov.
 He experimented on a dog and observed how it responded on the call of a bell and presenting it with a piece of meat.
The responses were measured by the amount of saliva secreted by the dog.
 Learning is defined as the changes in behaviour which occur by practice and, based on previous experience.
This is important to marketeers as well.
 The learning process consists of the following factors:
 Drive
o This is a strong internal stimuli which impels action. Because of the drive, a person is stimulated to
action to fulfil his desires.

 Cues
Cues are weak stimuli that determine when the buyer will respond.
(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, suggestions of sales personnel, etc.
4. Input, Process and Output Model

 This is a simple model of consumer behaviour, in which the input for the customer is the firm’s marketing effort (the
product, price, promotion and place) and the social environment.
 The social environment consists of the family, reference groups, culture, social class, etc. which influences the
decision-making process. Both these factors together constitute the input in the mind of the consumer.
 Need recognition
o 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 recognized. This is indicated by the arrows
going both ways from the need to the product and vice-versa.
 Product awareness
o 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 postponed for the time being.
 Evaluation
o 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
o Once there is intention to purchase the product, the consumer goes ahead and acts or purchases 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 behavior
o 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.
o 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.
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
organization, his dress requirements may be different, thus he has to buy things that conform to his lifestyles in
different groups.
6. Model of Family Decision-making
In a family decision-making model, it is important to understand how the family members interact with each other
in the context of their consumer decision-making. There are different consumption roles played by various members
of the family. These roles are as follows:
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 influence the family members
to visit the joint for food and entertainment.
Gate keepers
 These members control the flow of information for a product or brand that they favour and influence the
family to buy the product of their choice. They provide the information favourable to themselves and,
withhold information about other product which they do not favour.
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.
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 individually 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.
Eg: 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.
End of the Lesson

Thank You!