Unit 2

Consumer Decision
Making

Dr Jayant Dubey
Prof & Head,
06/15/2024 DR JAYANT DUBEY
MBA Dept., BTIRT, Sagar 1
 UNIT – 2
Consumer Decision Making: Four views of consumer decision
making – Economic man, passive man, cognitive man,
emotional man, A model of consumer decision-making.
Comprehensive models of consumer Decision making,
Nicosia Model, Horward-Sheth model, Engel-Kollat-
Blackwell model, Sheth family decision making model,
Battman’s information- procession model of consumer
choice, Sheth-Newman- Gross model of Consumption
values.
06/15/2024 DR JAYANT DUBEY 2
 Four views of decision making
• Economic man (Traditional view): Economics reflects a world of perfect competition and the consumer is often
characterized as an economic man. The economic theory of consumer behaviour was synthesized by Alfred
Marshall from the ideas of Classical Economists and the proponents of theory of „Marginal Utility.‟ Economic
view explains the consumer as an economic man who buys rationally to maximize the utility (benefits) derived
from a service. To behave rationally in the economic sense a consumer would have to be aware of all available
service alternatives. The consumer would have to be capable of correctly ranking each alternative in terms of its
benefits and disadvantages. According to leading social scientists this view is unrealistic because of three reasons
(a) people are limited by their existing skills, habits and reflexes (b) people are limited by their existing values and
goals (c) people are limited by the extent of their knowledge. However, consumers rarely have enough
information, sufficient or sufficiently information, or even an adequate degree of involvement or motivation to
make perfect decision.
• Consumers are living in an imperfect world where they do not maximize their decisions in terms of economic
considerations such as price- quantity relationships, marginal utility or indifference curves. Indeed the consumers
are often unwilling to engage in extensive decision making activities and will instead settle for a “satisfactory”
decision, one that is “good enough.” For this reason, the economic model is often rejected as too idealistic and
simplistic. The economists described man as a rational buyer and viewed the market as a collection of
homogenous buyers.
06/15/2024 DR JAYANT DUBEY 3
 Four views of decision making
• Passive man: This model is quite opposite to the economic model of
man. The passive view depicts the consumer basically submissive to the
self-serving interest and promotional efforts of marketers. Consumers are
perceived as impulsive and irrational purchasers, ready to yield to the
arms and aims of marketers. At least to some degree the passive model
of the consumer was subscribed by the hard deriving salesman who is
trained to manipulate customer. The passive man view fails to recognize
that the consumer plays an equal (if not dominant) role in many buying
situations by seeking information about service alternatives and selecting
the service that appears to offer greatest satisfaction.

06/15/2024 DR JAYANT DUBEY 4

 Four views of decision making

• Cognitive man: According to this view consumer is defined as a thinking problem solver. Within this
framework consumers are frequently depicted as either receptive to or actively seeking services that
fulfill their needs and enrich their lives. The cognitive man focuses on the process by which consumers
seek and evaluate information about the services. There are six types of consumer perceived risks
(functional risk, economic risk, physical risk, social risk, psychological risk and time risk) which a consumer
use to handle such as collecting information about alternatives, patronizing specific agents, brand loyalty
etc. These risks are key components of cognitive view and consumers are viewed as information-
processing systems. Consumer may use a preference formation strategy that is “other-based” in which
they allow another person probably a trusted person or an expert to establish preferences to them.
• Emotional man: Marketers prefer to think of customer in terms of either economic or passive models.
Emotional man is also a reality of each of us because of deeply rooted feeling and emotions: joy, fear,
love, hope, fantasy, sadness etc. These emotions have an impact on purchases and possessions.9 Such
feelings or emotions are likely to be highly involved for making a purchase decisions. When a consumer
makes any emotional purchase decision, less emphasis tends to be placed on current mood, feelings, pre-
purchase information and information search.

06/15/2024 DR JAYANT DUBEY 5

 Learning Objectives
• After reading this lesson you should be able
to:
• Identify the different levels of consumer
decision-making
• Explain the process of consumer decision-
making
06/15/2024 DR JAYANT DUBEY 6
 Consumer Decision Making
Introduction:
Definition- The process by which a person is required to make a choice from
various alternative options is referred to as decision-making.
We as consumers, are interested in the purchase of goods and services to
satisfy our personal, social, and environmental needs. In this lesson we
are considering the various levels of decision making and then go ahead
to explain the process of consumer decision-making. We will be
explaining the various models, which signify the consumer decision-
making process. The most important aspect here is that we consider
consumer’s decisions not as the end point but rather as the beginning
point of a consumption process.
06/15/2024 DR JAYANT DUBEY 7
 Different Levels of Consumer Decision-Making
1. Levels of Consumer Decisions
As a buyer or consumer you are all the time making decisions such as
what product to buy (a book or a shirt as a birthday present for your
friend), which brand (Lux, Liril, Dove, Palmolive) from where
(Departmental store, corner shop, chemist), etc.
Fig. 13.1 below presents a summary of the different levels of purchase
related decisions most commonly encountered by consumers. The
table highlights the broad range of choices the consumers have to
select from when making a decision, starting from the generic product
category level to the brand level and the retail outlet level.
06/15/2024 DR JAYANT DUBEY 8
 Different Levels of …
1. Levels of Consumer…

Fig. 13.1
DR JAYANT DUBEY 9
06/15/2024
 Different Levels of Consumer Decision-Making …
2. Decision making Process
Customer decisions are those decisions customers make in the
marketplace as users, payers and buyers. Decisions are often
guided by mental budgeting.–Customer sets a budget for a
particular product or service.
• The most basic and important requirement for the marketer
is to understand how consumers make choices. Making a
decision is a rational and conscious process in which the
consumer evaluates each of the available alternatives to
select the best amongst them.
06/15/2024 DR JAYANT DUBEY 10
 2.1 Consumer Information Processing Model
Traditionally, consumer researchers have approached
decision making process from a rational perspective.
This dominant school of thought views consumers as
being cognitive (i.e., problem-solving) and, to some but
a lesser degree, emotional.1 Such a view is reflected in
the stage model of a typical buying process (often
called the consumer information processing model)
depicted in Figure 13.2.
06/15/2024 DR JAYANT DUBEY 11
 Figure 13.2 The Consumer Information
Processing Model

06/15/2024 DR JAYANT DUBEY 12

 The Consumer Information Processing Model
• In this model, the consumer passes through five stages:
– problem recognition,
– information search,
– evaluation and selection of alternatives,
– decision implementation, and
– post purchase evaluation.
Step 1-Problem Recognition
A customer problem could be any state of deprivation, discomfort or wanting, both
physical and psychological –e.g. ‘We’re out of milk and bread and I’m hungry!’
Realisation by customer that he/she needs to buy something to get back to normal
state of comfort both physically and psychologically could be the recognition of
problem. e.g. I should better go to the store before it closes!’
06/15/2024 DR JAYANT DUBEY 13
Step 1-Problem Recognition…

In this information-processing model, the consumer buying process begins when the buyer recognizes a
problem or need. For example, You may recognize that your personal computer is not performing as
well as you thought it should. These are the kinds of problem that we as consumers encounter all the
time. When we found out a difference between the actual state and a desired state, a problem is
recognized. When we find a problem, we usually try to solve the problem. We, in other words,
recognize the need to solve the problem. But how?
Stimuli for problem recognition
The different stimuli, which leads to the recognition of problems are:
– Internal stimuli may include perceived states of physical or psychological discomfort such as
hunger or boredom
– External stimuli may include marketplace information · e.g. the smell of freshly baked bread
– Primary versus secondary demandPrimary demand is for a product category while
secondary demand is for a specific brand within the category

06/15/2024 DR JAYANT DUBEY 14

 Step 2-Information Search
• When a consumer discovers a problem, he/she is likely to search for more
information. You may simply pay more attention to product information of a
personal computer. You become more attentive to computer ads, computers
purchased by your friends, and peer conversations about computers. Or, you may
more actively seek information by visiting stores, talking to friends, or reading
computer magazines, among others. Through gathering information, the consumer
learns more about some brands that compete in the market and their features
and characteristics. Theoretically, there is a total set of brands available to you, but
you will become aware of only a subset of the brands (awareness set) in the
market. Some of these brands may satisfy your initial buying criteria, such as price
and processing speed (consideration set). As you proceed to more information
search, only a few will remain as strong candidates (choice set).

06/15/2024 DR JAYANT DUBEY 15

 Step 2-Information Search…
As illustrated in the diagram 13.3,
customers search for information
about alternative ways of solving
their problems and they consider
only a select subset of brands.
– Awareness set – all brands that the
customer is aware of
– Evoked set – all those brands that
the customer remembers at
decision-making time
– Consideration set – those brands in
the evoked set that the customer Fig 13.3 Awareness, evoked and
will consider buying
consideration sets
06/15/2024 DR JAYANT DUBEY 16
 Step 2-Information Search
Sources of Information
Search Strategies
Search strategies are the patterns of information
acquisition customers use to solve their decision
problems.
1. Routine, extended and limited problem solving:
– Routine – no new information considered
– Extended – extensive search and deliberation
– Limited – limited time and effort invested
2. Systematic versus heuristic search:
– Systematic – comprehensive search and evaluation
– Heuristic – quick rules of thumb and shortcuts
3. Strategies to deal with missing information:
– Inter attribute inference – value inferred from another
attribute
– Evaluative consistency – missing attribute assumed to
conform to overall evaluation
– Other-brand averaging – use of average value from
evaluation of attribute for other brands
– Negative cue – avoid option with missing information
or assign it low or negative value Sources of information for customers
06/15/2024 DR JAYANT DUBEY 17
 Step 3-Evaluation and Selection of Alternatives
How does the consumer process competitive brand
information and evaluate the value of the brands?
Unfortunately there is no single, simple evaluation
process applied by all consumers or by one consumer in
all buying situations. One dominant view, however, is to
see the evaluation process as being cognitively driven
and rational. Under this view, a consumer is trying to
solve the problem and ultimately satisfying his/her
need. In other words, he/she will look for problem-
solving benefits from the product. The consumer, then,
looks for products with a certain set of attributes that
deliver the benefits. Thus, the consumer sees each
product as a bundle of attributes with different levels of
ability of delivering the problem solving benefits to
satisfy his/her need. The distinctions among the need,
benefits, and attributes are very important. One useful
way to organize the relationships among the three is a
hierarchical one (Figure 13.5). Although simplified,
Figure 13.5 is an example of how a bundle of attributes
(i.e., a product or, more specifically, personal computer)
relates to your benefits and underlying needs . Figure 13.5 Hierarchical View of Needs,
06/15/2024
Benefits, and Attributes
DR JAYANT DUBEY 18
Step 3-Evaluation and Selection of Alternatives
Figure 13.5 Hierarchical View of Needs, Benefits, and Attributes
From this figure and the preceding discussion, you might recognize that the
product attributes are relevant and important only to the extent that they
lead to a certain set of benefits. Likewise, benefits are meaningful only if
they can address the problem and be instrumental to satisfy the underlying
need. As the underlying need is often personal, consumers differ as to their
beliefs about what product benefits and attributes are more (or less)
important and relevant in satisfying their needs. Based on their personal
judgment on importance of benefits and attributes, consumers develop a
set of attitudes (or preferences) toward the various brands. One may
express his/ her preferences of the brands in terms of ranking, probability of
choice, and so forth.
06/15/2024 DR JAYANT DUBEY 19
 Step 3-Evaluation and Selection of Alternatives
Models
The specific manner in which customers select one of the alternatives could be either through:
1 Compensatory model
– All attributes are evaluated with mental trade-off of perceived weaknesses and strengths.
2 Non-compensatory models
– Conjunctive – minimum cut-offs set for relevant attributes
– Disjunctive – tradeoffs between aspects of choice alternatives made
– Lexicographic – attributes are ranked in order of importance
– Elimination by aspects – attributes are rated in order of importance and cutoff values defined
HOW AND WHEN MODELS USED
• Two-stage choice process:
• –For important decisions might use non-compensatory first and then compensatory •Rapid
heuristics (based on experience):
• –Simple rules of thumb used for low-risk/ involvement decisions
– Satisfying:
06/15/2024 DRthan
– Selecting an acceptable alternative rather JAYANT DUBEY for best alternative
searching 20
 Step 4 – Purchase Decision Implementation
• To actually implement the purchase decision, however, a consumer needs to select both
specific items (brands) and specific outlets (where to buy) to resolve the problems. There
are, in fact, three ways these decisions can be made: 1) simultaneously; 2) item first,
outlet second; or 3) outlet first, item second. In many situations, consumers engage in a
simultaneous selection process of stores and brands. For example, in your personal
computer case, you may select a set of brands based on both the product’s technical
features (attributes) and availability of brands in the computer stores and mail-order
catalogs you know well. It is also possible; that you decide where to buy (e.g., Computer
world in your neighborhood) and then choose one or two brands the store carries. Once
the brand and outlet have been decided, the consumer moves on to the transaction
(“buying”).

Fig 13.6 Customer behaviour at the purchase step

06/15/2024 DR JAYANT DUBEY 21
 Step 5-Post-purchase Evaluation
• The type of preceding decision-making process directly influences post-purchase evaluation
processes. Directly relevant here is the level of purchase involvement of the consumer.
Purchase involvement is often referred to as “the level of concern for or interest in the
purchase” 2 situation, and it determines how extensively the consumer searches
information in making a purchase decision. Although purchase involvement is viewed as a
continuum (from low to high), it is useful to consider two extreme cases here. Suppose one
buys a certain brand of product (e.g., Diet Pepsi) as a matter of habit (habitual purchase).
For him/her, buying a cola drink is a very low purchase involvement situation, and he/she is
not likely to search and evaluate product information extensively. In such a case, the
consumer would simply purchase, consume and/or dispose of the product with very limited
post-purchase evaluation, and generally maintain a high level of repeat purchase motivation
(Figure 13.7).

Figure 13.7 Low Involvement Purchase

06/15/2024 DR JAYANT DUBEY 22
 Step 5-Post-purchase…
However, if the purchase involvement is high
and the consumer is involved in extensive
purchase decision making (e.g., personal
computer), he/she is more likely to be
involved in more elaborate post-purchase
evaluation – often by questioning the
rightness of the decision: “Did I make the
right choice? Should I have gone with other
brand?” This is a common reaction after Figure 13.8 Elaborate Post-purchase Evaluation
making a difficult, complex, relatively
permanent decision. This type of doubt
and anxiety is referred to as post-purchase
cognitive dissonance (Figure 13.8).

06/15/2024 DR JAYANT DUBEY 23

 Step 5-Post-purchase…
• According to the research, the likelihood of experiencing this kind of dissonance and the magnitude of it is a function
of:
– The degree of commitment or irrevocability of the decision,
– The importance of the decision to the consumer,
– The difficulty of choosing among the alternatives, and
– The individual’s tendency to experience anxiety.
• Because dissonance is uncomfortable, the consumer may use one or more of the following approaches to reduce it:
– Increase the desirability of the brand purchased.
– Decrease the desirability of rejected alternatives.
– Decrease the importance of the purchase decision.
– Reject the negative data on the brand purchased.
• If the dissonance about the purchase is not reduced, the anxiety may transform into a dissatisfaction (general or
specific). Certainly, this negative experience leads to a new problem recognition (Figure 1), and the consumer will
engage in another problem solving process. The difference, however, is that in the next round of process, memory of
the previous negative experience and dissatisfaction will be used as part of information. Therefore, the probability
for the unsatisfactory brand to be re-selected and repurchased will be significantly lower than before.

06/15/2024 DR JAYANT DUBEY 24

 Step 5-Post-purchase…
Decision confirmation:
-Need to confirm wisdom of decision
-Cognitive dissonance: post-purchase doubt
· Reduced by seeking more information or validation from
others
· Experience evaluation:
-Is product consumed routinely or while being
consciously evaluated?
· Satisfaction/dissatisfaction:
-Usage outcome
-Role of pre-purchase expectations
· Future response
-Exit: dissatisfied customers may never purchase the
brand again–Voice: dissatisfied customers complain
-Likelihood of complaining depends on:
-Dissatisfaction significance
-Attributions of the marketer
· Customers’ personality traits–Loyalty: satisfied customers
purchase the brand repeatedly
06/15/2024 DR JAYANT DUBEY 25
 2.2 The Hierarchy of Effects model
Another widely used model in marketing
that attempts to explain consumer
decision-making process is called the
hierarchy of effects model. Although
different researchers developed slightly
different models, the basic idea is the
same: people experience a sequence of
psychological stages before purchasing
a product. Such a model is provided in
Figure 13.10.
Figure 13.10 A General Model of the Hierarchy of Effects
06/15/2024 DR JAYANT DUBEY 26
 2.2 The Hierarchy of …
• Originally conceived to explain how advertising affects consumer’s purchase decisions, the hierarchy of
effects (HOE) model focuses on consumer learning that takes place as he/she processes information
from the external world. The HOE model begins with the state where a consumer has no awareness
about the brand (unaware) then develops awareness triggered by external stimuli, such as advertising
message or “word of mouth.” As he/she obtains and processes more information, the consumer
develops more specific knowledge about the brand. The knowledge, then, is used as basis to form a
liking (or disliking), leading to a preference of brand(s) relative to the others. However, people need to be
pushed beyond the preference stage to actually buy the brand of preference. The preference stage, after
all, simply means that the consumer has formed a preference psychologically. Now it takes conviction for
him/her before actually buying the brand.
• By now, you might have realized at least two points. One, it seems reasonable that not all the consumers
are at the same stage. For example, you may be in the unawareness stage relative to Wrangler Jeans, but
Lee may be in the preference stage. Two, it also seems reasonable that not all people at one stage move
onto the next stage. For example, some consumers who have formed preference to Maggi Tomato Sauce
may not form any conviction to buy the product. Furthermore, some people may need more time before
moving onto the next stage than others.
06/15/2024 DR JAYANT DUBEY 27
 2.2 The Hierarchy of …
• The HOE model is quite similar to the consumer information processing model
because it also assumes that people are cognitively driven, thinking information
processors. Controversy exists, of course, as to whether that is necessarily true.
Some may claim that they often form liking and preference (emotional response
or feeling) toward brands before developing cognitive judgment (knowledge or
thinking) on them. Others argue that people form preference and knowledge
simultaneously. Although each argument has its own support, the general
model (cognition first, preference second) seems to be valid especially in
relatively complex – or high-involvement – decision making situations (e.g., cars,
computers), providing a conceptual framework for thinking about the sequence
of events, which begins from the initial awareness to the final action (i.e.,
purchasing).
06/15/2024 DR JAYANT DUBEY 28
 2.3 The Implications
We have reviewed two of the most widely accepted models of consumer decision-
making process. These are based on theories and research of social psychology,
consumer behavior, and marketing. As managers rather than academics,
however, we have several more tough questions to ask. Here are some of them:
The idea of the information-processing model seems reasonable. But, we know
that we as individuals are not living in a vacuum. That is, when we are making a
purchase decision, we are constantly influenced by other factors than just
information, such as family, friends, cultural values, social class, or subculture.
Oh, what about physiological needs, such as sex, hunger, safety? Might these
also affect which brand we choose and buy? How and where do these factors
play roles in the information processing model?

06/15/2024 DR JAYANT DUBEY 29

 2.3 The Implications
What would be some of the practical implications of the information-processing
model for a marketing manager who is trying to market, say, mountain
bikes? If he/she knows about the information-processing model, what could
he/she do differently in, for example, the new product introduction?
What would be the implications of the HOE model for marketing managers? For
example, what should an advertising manager measure to know the
“effectiveness” of his/her advertising campaign? Should he/she measure
“sales”?
Under what circumstances consumers are more likely to develop “liking
(feeling)” first, “knowing (thinking)” second? What would be some of the
products/services in those situations? Why?
06/15/2024 DR JAYANT DUBEY 30
 TYPES OF PURCHASE DECISION BEHAVIOUR
• Introduction
• Consumer buying behaviour varies with the type of buying decision. The
buying decision process further varies with the type of product involved.
For instance, while a decision for buying bread is almost automatic, the
decision for buying a laptop is more deliberate and time consuming.
Similarly, there is a great deal of difference in buying a tube of toothpaste,
apparels for yourself and a Television set for your home. This will depend
on how complex the decision is likely to be and the degree of involvement
required from the participants. In other words, more complex the
decisions, more the involvement of buying participants and more the
buyer deliberation.
06/15/2024 DR JAYANT DUBEY 31
• Objectives
After reading this lesson, you should be able to:
Differentiate between types of buyer decision
behaviour
Identify and explain the factors influencing
problemsolving.
06/15/2024 DR JAYANT DUBEY 32
 1. Variables that shape the decision Process
• How people make decisions continue to interest researchers and strategists because of its
complexity and dynamic nature. Even with all the options available to them, people are
usually quite rational and make systematic use of the information, and usually consider
the implications of their actions before they decide to engage or not engage in a given
behaviour. In this section, we summarize information about variables that can influence
decision-making.
• Consumer decision making is influenced and shaped by many factors and determinants
that fall into three categories:
– a. Individual differences
– b. Environmental influences
– c. Psychological processes.
• We have already covered all these factors in depth in earlier lessons; hence we are just
presenting a summary of them.
06/15/2024 DR JAYANT DUBEY 33
 a. Individual Differences
There are five major categories of individual differences, which affect behaviour, viz.,
• (a). Demographics, psychographics, values and personality: The decision
processes and buying behaviour gets very much affected by how people differ. You
have read about these influences earlier. These variables include what has come
to be known as psychographic research to probe into those individual traits,
values, beliefs, and preferred behaviour patterns that correlate with behaviour in
market segments.
• (b). Consumer resources: Each person brings three primary resources into every
decision-making situations: (1) time, (2) money, and (3) information reception and
processing capabilities or attention. Generally there are distinct limits on the
availability of each, thus requiring some careful allocation.

06/15/2024 DR JAYANT DUBEY 34

 a. Individual Differences…
(c). Motivation: Psychologists and marketers alike have conducted a wide variety of
studies to determine what takes place when goal-directed behavour is energized and
activated.
(d). Knowledge: Knowledge is defined as information stored in memory. It encompasses a
vast array of items such as the availability and characteristics of products and services;
where and when to buy; and how to use products. One main goal of advertising and
selling is to provide relevant knowledge and information to consumers so as to assist
them with decision-making, especially in extended problem solving.
(e). Attitudes: Behaviour is strongly influenced by attitudes toward a given brand or
product. An attitude is simply an overall evaluation of an alternative, ranging from
positiveto negative. Once formed, attitudes play a directive role on future choice and
are difficult to change.

06/15/2024 DR JAYANT DUBEY 35

 b. Environmental Influences:
• In addition to individual variables, the decision process behaviour of consumers is also influenced by environmental factors
which include culture, social class, family, personal influence and situation
(a). Culture: Culture refers to the values, ideas, artifacts, and other meaningful symbols that help individuals communicate,
interpret, and evaluate as members of society.
(b). Social class: Social classes are divisions within society that comprise individuals sharing similar values, interests, and
behaviours.
Socioeconomic status differences may lead to differing forms of consumer behaviour, say for example, the types of beverages
served, the make and style of car driven, the kind of food liked, and the styles of dress preferred
(c). Family: Since the field of consumer research was founded, the family has been a focus of research. As you have learnt in earlier
chapters, the family often is the primary decision making unit, with a complex and varying pattern of roles and functions.
Cooperation and conflict often occur simultaneously with interesting behavioural outcomes.
(d). Personal influence: As consumers, those with whom we closely associate often affect our behaviours. This is referred to as
personal influence. Consumers often respond to perceived pressures to conform to the norms and expectations provided by
others-seeking and taking their counsel on buying choices, observing what others are doing as information about
consumption choices, and comparing their decisions to those of others.
(e). Situation: Behaviours change as situations change. Sometimes these changes are erratic and unpredictable, such as job layoff,
and at other times, they can be predicted by research. Situation is treated as a research variable in its own right and is
discussed in various chapters.

06/15/2024 DR JAYANT DUBEY 36

 c. Psychological Processes:
At the end, those who wish to understand and influence consumer behaviour must have a
practical grasp of three basic psychological processes:
(a). Information processing: Communication is a bottom-line marketing activity.
Therefore, consumer researchers have long been interested in discovering how people
receive, process, and make sense of marketing communications.
(b). Learning: Anyone attempting to influence the consumer is trying to bring about
learning, the process by which experience leads to changes in knowledge and
behaviour. Learning theory is relevant, especially for those products and services
bought on the basis of relatively little reflection and evaluation.
(c). Attitude and behaviour change: changes in attitude and behavour are an important
marketing objective that reflects basic psychological influences and have been the
subject of decades of intensive research.

06/15/2024 DR JAYANT DUBEY 37

 Activity Assignment
• A company is planning to introduce a Business
daily in the Indian Market. As a marketing
consultant to this company, what
motivational, perception and attitudinal
characteristics will you consider for devising
the four ‘P’s for this product. i.e. Product,
Price, Place & Promotion.
06/15/2024 DR JAYANT DUBEY 38
 2. Types of decision behaviour
Sometimes consumers undertake a complex decision process
requiring substantial amounts of time and energy. In situations
in which consumers are making a decision for the first time,
actions must be based on some form of problem solving.
• When this process is very complex, it is called extended
problem solving (EPS). Limited problem solving (LPS),
however, represents a lower degree of complexity. At the
lowest end of the continuum stands what is known as
routinised response behaviour (RRB)
06/15/2024 DR JAYANT DUBEY 39
 1.1 Initial Purchase
We will now distinguish these three major types of buying behaviour
(1) Routinised response behavior (RRB)/ Habitual buying behavior: This is the simplest type of
behaviour. This occurs when the consumer already has some experience of buying and using
the product. Usually, this kind of behaviour is adopted for the purchase of low cost, frequently
used items. In such cases the buyers do not give much thought, or search and also do not take
a lot of time to make the purchase. Most of the time the buyer is familiar with the various
brands available and the attributes of each and has a well-established criteria for selecting
their own brand. The buyers are well aware of the product class, know the brands and also
have a clear preference among the brands. The degree of involvement in buying such products
is low. In such a case, the marketer has to ensure two tasks: (a) The marketer must continue to
provide satisfaction to the existing customers by maintaining quality, service and value. (b) He
must try to attract new customers by making use of sales promotion techniques like points of
purchase displays, off-price offers, etc., and also introduce new features to the products.

06/15/2024 DR JAYANT DUBEY 40

 (2) Limited problem solving (LPS)/ Dissonance
reducing buying behavior
In this type of buying behavior, the consumer is familiar with the product and various brands available, but has
no established brand preference. Here the buyer is more complex as compared to routine buying behavior
because the consumer is confronted with an unfamiliar brand in a familiar product class. The consumer
would like to gather additional information about the brands to arrive at his brand decision. For instance, a
housewife buys refined vegetable oils for her cooking and she may be familiar with the concept of vegetable
oil, vanaspati and ghee. She may also know that Dhara, Dalda and Sundrop are some of the leading brands
available. But to establish her choice of brand, she would like to check with her friends and regular store
about the attributes of each. This buying behavior as described limited problem solving because the buyers
are in a situation where they are fully aware of the product class but not familiar with all the brands and their
features. Limited problem solving also takes place when a consumer encounters an unfamiliar or new brand
in a known product category. The housewife, who buys refined vegetable oil, on her next visit to the market,
sees a new brand of oil, Saffola. Apart from buying a new brand, this brand of oil also claims the unique
attribute of being low in cholesterol. To arrive at a decision, whether or not to buy this brand, the housewife
needs to gather information about the new brand, which will allow her to compare it with the known brands.
Here the marketer’s job is to design a communication programme, which will help the buyer to gather more
information, increase his brand comprehension and gain confidence in the brand.

06/15/2024 DR JAYANT DUBEY 41

 (3) Extensive problem solving (EPS)/Complex
buying behavior
This buying is referred to as a complex buying behavior because the consumer is in an unfamiliar product class and is
not clear about what criteria to consider for buying. Extensive problem solving occurs when the consumer is
encountering a new product category. He needs information on both the product category as well as the various
brands available in it. This kind of decision is the most complex type. For instance, you may become interested in
purchasing a Color Television set to replace the existing black and white one. You may have heard of the various
brand names like BPL, Akai, etc. but lack clear brand concepts. You do not know what product attributes or
features to consider while choosing a good television set. So yours is an extensive problem solving.
The marketing strategy for such buying behavior must be such that it facilitates the consumer’s information gathering
and learning process about the product category and his own brand.
The marketer must understand the information gathering and evaluation activities of the prospective consumers. They
have to educate the prospective buyers to learn about the attributes of the product class, their relative importance
and the high standing of the marketer’s brand on the more important brand attributes. The marketer must be able
to provide his consumer with a very specific and unique set of positive attributes regarding his own brand, so that
the purchase decision is made in his favour. N other words, the marketing communications should be aimed at
supplying information and help the consumer to evaluate and feel good about his/her brand choice.

06/15/2024 DR JAYANT DUBEY 42

(3) Extensive problem solving (EPS)…
The concept of EPS is most applicable to new products. The product may be new at the
generic level e.g., Good Knight Mosquito repellant mats or it may be an established
product concept but new for a particular consumer. IN case of a new product concept like
ready to cook instant snack, the entire consumer universe is unfamiliar with the product.
The marketer has to spend large amounts of money in educating the consumers about his
product. The consumer in turn need a great deal of information before they can take a
decision; and the decision process takes a longer time. On the other hand, you may have
the situation where the product concept is well understood by a majority of the
consumers, but it is being bought or used by a particular consumer for the first time. To
take a very simple example, a tribal who is exposed to the concept of toothpaste for the
first time in his life will seek a lot of information and take a long time to decide. Because
fro him, buying a toothpaste is an EPS behaviour, whereas for most of us it is simply
Routinised response behaviour.

06/15/2024 DR JAYANT DUBEY 43

 1.2 Repeat Purchases
• Most purchases are repeated over time. When repeat purchases occur, there are two possibilities: (a) repeated problem
solving, and (b) habitual decision-making.
(a) Repeated Problem solving: Repeat purchases often require continued problem solving. Several factors including
dissatisfaction with a previous purchase resulting in a brand switch or retail stock outs when the retailer doesn’t have
product available can lead to this outcome.
(b) Habitual decision making: Habitual takes different forms, depending on the decision process followed in the initial
purchases:
– Brand loyalty/Company loyalty: Consumers have certain expectations about the products they buy and the
retailers from whom they buy. The satisfaction that consumers experience when their expectations are met
or exceeded often results in loyalty to that product or retailer. For the most part, consumers want to reward
these companies with continued use over time—that is, brand or company loyalty, which can be highly
resistant to change.
– Inertia: There are certain categories of products in which there is limited brand loyalty, for instance
toothpaste. Where any degree of loyalty does not exist, it mostly consists of several brands, all of which are
about equal. Buying habits of this type are based on inertia and are unstable. Although there is no incentive
to switch, this may occur quite when prices are lowered with a coupon or another brand is promoted as
offering something new.
06/15/2024 DR JAYANT DUBEY 44
 1.3 Impulse Buying
• Impulse purchases are the least complex form of LPS but differs in some forms
important ways. This kind of buying may be explained as an unplanned, spur-of-the-
moment action triggered by product display or point-of-sale promotion. The main
characteristics of Impulse buying are:
– A sudden and spontaneous desire to act accompanied by urgency.
– A state of psychological disequilibrium in which a person can feel temporarily out of control.
– The onset of conflict and struggle that is resolved by an immediate action.
– Minimal objective evaluation exists-emotional considerations dominate.
– A lack of regard for consequences.
• Although there is an absence of the careful reasoning of EPS, there is not the
indifference that accompanies LPS. A high sense of emotional involvement and
urgency, in effect, short-circuits the reasoning process and motivates immediate action.

06/15/2024 DR JAYANT DUBEY 45

 1.4 Variety Seeking
Consumers often express satisfaction with
their present brand but still engage in
brand switching. The motive is variety
seeking, which occurs most often when
there are many similar alternatives,
frequent brand shifts, and high purchase
frequency. It can occur simply because
someone is bored with his or her current Fig 13.1 Categories of purchase behaviors
brand choice, or it can be prompted by
external cues as store stock outs or
coupons that promote switching.

Fig 13.1 shows four categories of purchasing patterns, ranging from brand loyalty to variety seeking. It
incorporates factors such as consumer commitment or loyalty to brands and the
number of brands purchased in a particular time period.
06/15/2024 DR JAYANT DUBEY 46
 Factors influencing the extent of problem solving

Each decision you make involves an elaborate mental thought process, a degree of active
reasoning, though on the surface it may not always seem to be so. This may be because over a
period of time you have taken certain decisions so many times that they now seem to be made
almost automatically but that is not true at all. Even your daily decision of buying a loaf of
bread involves the element of active reasoning as buying a new sofa set for your drawing
room. However, in the former case, the extent and intensity of active reasoning may be much
less as compared to the latter case.
In the case of bread, the only decision variables may be which brand, quantity and retail outlet. But
in the case of buying a sofa set the decision variables are far more in number. These may be:
– Ready-made or made to order
– From a furniture shop or to be built at home
– Type of material for frame: wood, steel, aluminum
– Type of material for cushion: cloth, rexine, leather
– Design: with or without armrests, height, depth of seat, seating capacity, loose or fixed cushion.
06/15/2024 DR JAYANT DUBEY 47
 Factors influencing…
• Thus, depending on the type of decision being made,
the degree and strength of active reasoning will vary.
• There are three factors, which influence the degree of
active reasoning that is undertaken by the consumer in
his process of decision-making. These are:
– i. Involvement
– ii. Alternative differentiation, and
– iii. Time pressure
06/15/2024 DR JAYANT DUBEY 48
 Factors influencing…
Involvement: The degree of personal involvement is a key factor in shaping the type of decision process
that consumers will be followed. Involvement is the level of perceived personal importance and/or
interest evoked by a stimulus within a specific situation.
• Several factors exist that determine the degree of involvement consumers have in making a decision.
Some of them are as under:
• (i). Personal factors: The degree of involvement tends to be higher when the outcome of the decision
affects the person directly. Personal factors include self-image, health, beauty, or physical condition.
Without activation of need and drive, there will be no involvement, and it is strongest when the
product or service is perceived as enhancing selfimage. When that is the case, involvement is likely to
be enduring and no function as a stable trait, as opposed to being situational or temporary. For
example, the purchase of the wedding trousseau, tends to be a high involvement decision because
your wedding is a special occasion and it also affects directly your self-image and looks. A consumer’s
physical handicap may also affect how involved he or she is in buying a home. Are there steps leading
up to the house? Is there a bedroom on the first floor, and are doorways wide enough to
accommodate a wheel chair?
06/15/2024 DR JAYANT DUBEY 49
 Factors influencing…
(ii). Product factors: Products or brands also become involving if there is some perceived risk in purchasing
and using them. Many types of perceived risks have been identified, including physical (risk of bodily
harm), psychological (especially, a negative effect on self-image), performance (fear that the product
will not perform as expected), and financial (risk that outcomes will lead to loss of earnings).
As is logical, the greater the perceived risk, the greater the likelihood of high involvement. When
perceived risk becomes unacceptably high, there is motivation either to avoid purchase and use
altogether or to minimize risk through the search and pre-purchase alternative evaluation stages in
extended problem solving. For example, we may become highly involved in the choice of a doctor,
especially when surgery is required, because of the high-perceived risk.
(iii). Situational factors: Situational or instrumental involvement includes factors such as whether the
product is purchased for personal use or as a gift, and whether it is consumed alone or with others.
Situational involvement changes over time: it may be strong on a temporary basis and wanes once
purchasing outcomes are resolved. This is usually the case with fads such as trendy clothing items in
which involvement is high initially but quickly diminishes once the item is worn and fashions begin to
change.
06/15/2024 DR JAYANT DUBEY 50
(ii) Alternative Differentiation: When the consumer perceives that the various alternatives
which are available are very different from one another in terms of their features and
benefits offered, he is likely to spend more time in gathering information about and
evaluating these different features. On the other hand, in case of products which are
not very different from one another either in terms of their features or benefits
offered, the consumer is bound to perceive them as being almost the same and buy the
first available product/brand which satisfies his minimum expectation. He will not like
to spend much time in evaluating the various alternatives. The various brands of
washing powder available in the market today are an excellent example of low level of
differentiation with the consumer perceiving the different brands to be offering almost
identical benefit. All the brands such as surf, Ariel, Tide, Rin, Nirma, etc., look similar
with identical packing and carry almost the same price tag.

06/15/2024 DR JAYANT DUBEY 51

 (ii) Alternative Differentiation…
Till a few years ago the branded shoes was highly
undifferentiated with Bata offering standard options
to consumers in terms of styles of shoes. Then came
the different players in this market like Woodlands,
Liberty, Action, and a host of other multinational
brands creating on the way a multitude of segments
in the otherwise staid shoes market like formal,
casual, sports shoes etc.
06/15/2024 DR JAYANT DUBEY 52
Time pressure: When you are under pressure to make a decision, you
cannot afford to spend a long time finding out about the various
products or brands. You would probably buy whatever is readily
available. While traveling your car tyre busts and you don’t have a spare
and hence you need to buy a new one. At that time you would buy the
brand that is available at whatever price without giving it too much
thought. But under a different situation, when you need to buy new
tyres, you would certainly like to find the features of nylon and radial
tyres and evaluate various brands e.g., Modi, MRF, Dunlop and Apollo
etc. on their individual advantages and disadvantages.cts or brands.

06/15/2024 DR JAYANT DUBEY 53

 Comprehensive models of consumer Decision making

Nicosia Model: Francesco Nicosia was one of the first consumer

behaviour modelers to shift focus from the act of purchase itself to
the more complex decision making process that consumers engage in
about products and services. This model focuses on the relationship
between the marketers and their potential consumers. It believes
that the marketers communicate with customers through their
marketing messages (i.e. advertising) and customers communicate
with then by their buying responses. Thus this model explains as how
marketers influence customers and customers interact with marketers.
Figure shows the Nicosia Model of Consumer Behaviour.
06/15/2024 DR JAYANT DUBEY 54
 Figure: The Nicosia Model…
Field from the source of a message to the consumer’s attitude
customer attitudes, product
attributes, competitive,
environment, the characteristics of
relevant mass media, the choice of
consumer characteristics (Personality
copy appeal and the experience that mediate reception of
characteristics of the target marke marketer’s promotional messages)

06/15/2024 DR JAYANT DUBEY 55

 The Nicosia Model…
In its full-blown form this model is given in Figure. it is based on four basic tenets.
– [1] The customer’s attitude based on message exposure.
– [2] The customer’s product search and evaluation.
– [3] The act of purchase.
– [4] Feedback in the form of customer experience to both marketer and customers.
FIELD : 1 CONSUMERS ATTITUDE :
This field of model is divided into two subfields. Subfield one includes those aspects of
the marketing environment and communication efforts that affect the factors like
customer attitudes, product attributes, competitive, environment, the
characteristics of relevant mass media, the choice of copy appeal and the
characteristics of the target market. Second subfield specifies such as consumer
characteristics (Personality experience that mediate reception of marketer’s
promotional messages). In other words we can say that both the subfields
determine the customer’s attitude towards company’s marketing communication.
06/15/2024 DR JAYANT DUBEY 56
 The Nicosia Model…
FIELD: 2 SEARCHES AND EVALUATION:
This arena of the model explains us as to how a consumer goes for search of necessary information with regard
to various products available in the market, so that necessary comparison could be made with respect to
arriving at a final decision. Here consumer behavior culminates in final decision regarding purchase of
product or otherwise.
FIELD 3: ACT OF PURCHASE:
This phase of model shows us various processes related to actual purchase of the product. From the marketer’s
point of view this phase is very important as it unveils the consumer’s buying behavior.
FILED 4: FEEDBACK:
The post purchase behavior reveals the consumer’s experience with the usage and his future behavior. In other
words we can say that if the consumer is satisfied with the purchase then his behavior will reinforced and
in case if he is dissatisfied then he will go for go for a new brand. Both of these behaviors considerably
affect the company’s marketing strategies.
In short we can say that this model focuses on individual decision making which is based on four basic tenets.
The first tenet determines customer’s attitudes towards marketer’s communication where as second
focuses on customer’s search and evaluation of product. The third one focuses on process related to actual
purchase where as last one says about customer’s behavior regarding purchased product which may be
either positive or negative.
06/15/2024 DR JAYANT DUBEY 57
 Horward-Sheth Model
The most frequently quoted of all consumer behavior models is the Howard-Sheth model of buyer
behavior, which was developed in 1969 shown in Figure. The model is important because it
highlights the importance of inputs to the consumer buying process and suggests ways in which
the consumer orders these inputs before making a final decision. The Howard-Sheth model is
not perfect as it does not explain all buyer behavior; it is however, a comprehensive theory of
buyer behavior that has been developed as a result of empirical research (Horton, 1984).
This model suggests three levels of decision making:
1. The first level describes the extensive problem solving. 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.
2. The second level is limited problem solving. 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.
06/15/2024 DR JAYANT DUBEY 58
 Horward-Sheth Model…
3. The third level is a habitual response behavior. In this level the consumer knows very well about the different brands and
he can differentiate between the different characteristics of each product, and he already decides to purchase a
particular product.
According to the Howard-Sheth model there are four major sets of variables; namely:
a) Inputs: These input variables consist of three distinct types of stimuli (information sources) in the consumer’s environment.
The marketer in the form of product or brand information furnishes physical brand characteristics (significative stimuli)
and verbal or visual product characteristics (symbolic stimuli). The third type is provided by the consumer’s social
environment (family, reference group, and social class). All three types of stimuli provide inputs concerning the
product class or specific brands to the specific consumer.
b) Perceptual and Learning Constructs: The central part of the model deals with the psychological variables involved when the
consumer is contemplating a decision. Some of the variables are perceptual in nature, and are concerned with how the
consumer receives and understands the information from the input stimuli and other parts of the model. For example,
stimulus ambiguity happened when the consumer does not understand the message from the environment.
Perceptual bias occurs if the consumer distorts the information received so that it fits his or her established needs or
experience. Learning constructs category, consumers’ goals, information about brands, criteria for evaluation
alternatives, preferences and buying intentions are all included. The proposed interaction in between the different
variables in the perceptual and learning constructs and other sets give the model its distinctive advantage.

06/15/2024 DR JAYANT DUBEY 59

 Horward-Sheth Model…
c) Outputs: The outputs are the results of the perceptual and learning variables and how the
consumers will response to these variables (attention, brand comprehension, attitudes, and
intention).
d) Exogenous (External) variables: Exogenous variables are not directly part of the decision-making
process. However, some relevant exogenous variables include the importance of the purchase,
consumer personality traits, religion, and time pressure. The decision-making process, which
Howard-Sheth model tries to explain, takes place at three Inputs stages: Significance, Symbolic
and Social stimuli. In both significative and symbolic stimuli, the model emphasizes on material
aspects such as price and quality. These stimuli are not applicable in every society. While in
social stimuli the model does not mention the basis of decision-making in this stimulus, such as
what influence the family decision? This may differ from one society to another.
Finally, no direct relation was drawn on the role of religion in influencing the consumer’s decision-
making processes. Religion was considered as external factor with no real influence on
consumer, which gives the model obvious weakness in anticipation the consumer decision.
06/15/2024 DR JAYANT DUBEY 60
 Horward-Sheth Model…

06/15/2024 Figure: shows the Howard-Sheth Model

DR JAYANT DUBEYof Consumer Behaviour. 62
 Engel-Kollat-Blackwell model
This model was created to describe the increasing, fast-growing body of knowledge concerning consumer
behavior. Engel et.al. model, like in other models, has gone through many revisions to improve its
descriptive ability of the basic relationships between components and sub-components; which consists of
four stages.
First stage: Decision-process stages
The central focus of the model is on five basic decision-process stages: Problem recognition, search for
alternatives, alternate evaluation (during which beliefs may lead to the formation of attitudes, which in turn
may result in a purchase intention) purchase, and outcomes. But it is not necessary for every consumer to
go through all these stages; it depends on whether it is an extended or a routine problem-solving behavior.
Second stage: Information input
At this stage the consumer gets information from marketing and non-marketing sources, which also influence
the problem recognition stage of the decision-making process. If the consumer still does not arrive to a
specific decision, the search for external information will be activated in order to arrive to a choice or in
some cases if the consumer experience dissonance because the selected alternative is less satisfactory than
expected.

06/15/2024 DR JAYANT DUBEY 63

 Engel-Kollat-Blackwell model…
Third stage: Information processing
This stage consists of the consumer’s exposure, attention, perception, acceptance, and retention of incoming
information. The consumer must first be exposed to the message, allocate space for this information,
interpret the stimuli, and retain the message by transferring the input to long-term memory.
Fourth stage: Variables influencing the decision process
This stage consists of individual and environmental influences that affect all five stages of the decision
process. Individual characteristics include motives, values, lifestyle, and personality; the social influences
are culture, reference groups, and family. Situational influences, such as a consumer’s financial
condition, also influence the decision process.
This model incorporates many items, which influence consumer decision-making such as values, lifestyle,
personality and culture. The model did not show what factors shape these items, and why different
types of personality can produce different decision-making? How will we apply these values to cope with
different personalities? Religion can explain some behavioral characteristics of the consumer, and this
will lead to better understanding of the model and will give more comprehensive view on decision-
making.
06/15/2024 DR JAYANT DUBEY 64
 Figure: The Engel-Kollat-Blackwell Model of Consumer Behavior.

06/15/2024 DR JAYANT DUBEY 65

SHETH FAMILY DECISION MAKING MODEL
Sheth’s earlier model dealt with individual consumer decision making where as this
model focuses on family decision making, from this chart it is clear that those
elements which are represented on the left side of the model show separate
psychological characteristics of the family members where as the factors depicted
on the right side contain elements such as social class, life style role orientation,
family life cycle stage, perceived risk product importance, that exerts considerable
influence in family decision making. It also suggest, that joint decision making tends
to prevail in those families that are middle class, newly married and close knit with
few prescribed roles.
In short we can say that this model differs from other models discussed earlier as it
focuses on of family decision making. It tells us that the family members with their
different motives exert different rules in family decision making.

06/15/2024 DR JAYANT DUBEY 66

Figure: Sheth Family Decision Making Model of Buyer Behaviour

06/15/2024 DR JAYANT DUBEY 67

 Battman’s information- procession model of
consumer choice
Bettman views that consumer possesses a limited
capacity for processing information so when
faced with a choice he rarely undertakes the
task of decision making. The decision making
style enables him to arrive at a choice by
sidestepping the burden some task of accessing
all the information about all the alternatives.
06/15/2024 DR JAYANT DUBEY 68
 Battman’s information…
The Bettman model, proposed in 1979, assumes that a typical consumer has a limited capacity for
processing information. According to this model, when faced with making a choice decision, the
consumer rarely undertakes a complex task of evaluating all possible alternatives. Instead, the
consumer invariably employs a simple decision rule. In its complete form, the Bettman model
consists of a number of interrelated flow-charts that depict the various possible stages involved in
the consumer’s choice process.
• This model is based on seven interrelated elements which are as under;
– [1] PROCESSING CAPACITY
– [2] MOTIVATION.
– [3] ATTENTION AND PERCEPTUAL ENCODING
– [4] INFORMATION ACQUISITION AND EVALUATION
– [5] MEMORY
– [6] DECISION PROCESS
– [7] CONSUMPTION AND LEARNING PROCESSES.

06/15/2024 DR JAYANT DUBEY 69

 Battman’s information…
In addition to these seven components it also includes mechanisms that continuously
scan the environment and received and respond to interruptions.
[1] PROCESSING CAPACITY:
This component of the model has a limited capacity for processing information; hence in
making a choice, consumers find the complex computations and extensive
information processing difficult or burdensome. So, for decision making the
consumers are likely to adopt those strategies or rules of thumb that make a final
choice easier.
[2] MOTIVATION:
This is another important component of this model. It indirectly influences both the
direction and intensity of the consumer’s choice which stimulates the consumer to
gather information required to evaluate alternatives and make a choice.
06/15/2024 DR JAYANT DUBEY 70
 Battman’s information…
[3] ATTENTION AND PERCEPTUAL ENCODING:
It is closely tied with and deeply influenced by the consumer’s goal hierarchy. The model presumes that
there are two types of attention. One voluntary attention which is a conscious allocation of
processing capacity to achieve the current goals where as the second scans the newly acquired
complex information. Each of these different types of alternatives influences the consumer’s choice
for the final decisions. The perceptual encoding element is an extension of the attention
component. It accounts for the progress by which the consumer organizes and interprets the
perceived stimuli and provides insights into the need for additional information.
[4] INFORMATION ACQUISITION AND EVALUATION:
This aspect of the model believes that the consumer undertakes external search for information with a
view to access the creativeness of his memory, or otherwise of the information stored. The newly
acquired information is evaluated and its stability or usefulness is accessed. The consumer
continues to acquire additional information until all relevant information has been secured or until
the consumer perceives that any additional effort will be too costly in terms of time or effort for
gaining additional information.
06/15/2024 DR JAYANT DUBEY 71
 Battman’s information…
[5] MEMORY:
It is that part of the model through which all information flows. It is where a consumer first begins the search
for information on which to base the choice. If the internal information is insufficient then the consumer
undertakes external search. The information is stored either for short term or for long term use.
[6] DECISION PROCESS:
It stresses that different types of choices are normally made element of conjunction with the fulfillment of
specific components of model (e.g. choice of goal or choice of information to be acquired). The choices
made during the decision processes are particular form of choice rather than the ordinary choice. This
component of model deals with the application of heuristics or rules of thumb in evaluation and
selection of specific brand.
This part of the model emphasizes that the specific heuristics a consumer employs are influenced by both
individual factors (e.g. Personality differences) and situational factors (urgency of the decisions). So it is
unlikely that particular decision will be consistently employed by the same customer in the different
situations or by the different consumers in the same situation.

06/15/2024 DR JAYANT DUBEY 72

 Battman’s information…
[7] CONSUMPTION AND LEARNING PROCESS:
This part of the model deals with the future utilization of experience after the purchase choice has been
made. Such consumption experience not only severs as information to be applied to future choice
situation but also provides the basis for developing heuristics. So as an outgrowth of this part
consumer's post purchase and post consumption evaluation are stored for a related future use.
SCANNING AND INTERRUPTING MECHANISMS:
Throughout this model there are scanning and interrupting mechanisms that receive all kinds of
messages from the environment The scanner is continuously open to relevant information from the
environment where as the interrupting mechanism is a device designed to deal with message that
tend to interfere with the progress of a choice.
That is to say that the scanner is receptive to information where as the interrupting mechanism deals
with message that are imposed upon the consumer. However both mechanisms can delay the
particular choice and can delay the making of particular choice and can divert attention to a
completely different arena of choice.

06/15/2024 DR JAYANT DUBEY 73

 Battman’s information…

06/15/2024 DR JAYANT DUBEY 74

 Battman’s information…
SCANNING AND INTERRUPTING MECHANISMS…….
• In short we can say that this model focuses on cognitive aspects of information
processing that affects the decision making. This model is based on seven
interrelated elements. It also induces mechanisms that continuously scan the
environment and receive and respond to interruptions. The first element of the
model has a limited capacity for processing information. The second one influences
the direction and intensity of consumer choice. The third one is closely tied with and
deeply influence by the consumer good hierarchy. The fourth element focuses on
information acquisition and evaluation. The fifth element focuses on flowing all
information. The sixth element deals with the future utilization of experience after
the choice has been made. The last one deals with the future utilization of
experience after the purchase choice has been made.

06/15/2024 DR JAYANT DUBEY 75

 Sheth-Newman- Gross model of Consumption
values
This model explains us as to why a consumer makes more choices as
compared to comprehensive model discussed earlier. This model has fewer
dimensions and stresses on a series of specific measurement approach to
secure the necessary consumer input required, to test and apply the
model. For this reason this model seems particularly promising for
marketing decision markers interested in understanding and segmenting
markets.
This model concentrates on consumption related values that explains as to
why consumer chooses to buy or not to buy specific product over another
and why he prefers one brand over others. This type of model helps us to
study all types of consumer buying decisions.
06/15/2024 DR JAYANT DUBEY 76
 Sheth-Newman…
• This model has three important dimensions namely.
• [1] CONSUMER CHOICE:
• It is a function of various consumption values.
• [2] SPECIFIC CONSUMPTION VALUE:
• These make differential contribution in any given situation
• [3] DIFFERENT CONSUMPTION VALUES:
• This model has identified five values that influence consumer
buying behavior which are shown in Figure.The consumption
values are discussed below.
06/15/2024 DR JAYANT DUBEY 77
 Figure of Sheth-Newman…

06/15/2024 DR JAYANT DUBEY 78

 Sheth-Newman…
1) FUNCTION VALUE:
This value of a consumer choice is the perceived functional, utilitarian, physical performance
utility acquired from the choice attributes. This value is associated with the economic utility
of the product. At the heart of this value are such consumer relevant attributes as reliability,
durability and price for example the decision to purchase car might be based on the purchase
price and promised fuel economy.
2) SOCIAL VALUE:
This value is the perceived utility acquired due to the association between one or more specific
social groups and the consumer choice. A consumer’s choice gains social value by being
linked with reference groups. Choice involving highly visible products and services to be
socially shared is often driven by social value.
3) EMOTIONAL VALUE:
This value of a choice is the perceive utility gained from it capacity to stimulate the consumer’s
emotion or choice. Feelings acquire emotional vaLue when associated with specific feelings.
Products and services are frequently associated with emotional responses.
06/15/2024 DR JAYANT DUBEY 79
 Sheth-Newman…
4) EPISTEMIC VALUE:
This value of choice comes from the choice’s ability to foster curiosity that provides novelty and or
satisfy a desire for knowledge. New purchases and consumption experience offer epistemic
value but even a simple change of space also provides epistemic value to the consumer.
5) CONDITIONAL VALUE:
This value of choice is the perceive utility acquired by a choice as an outcome of some particular
situation or circumstances facing the consumer. For example some products are associated
with a particular time or event, some are associated with once in a life time and some are used
only in emergency situation. This model believes that the consumer choice may be influence by
any or all of these five consumption values. As already stated that the attractiveness of model
lies in the fact that not only considers the conceptual composition of buyer behavior but also
gives basic values that influence the consumer choice of product.

06/15/2024 DR JAYANT DUBEY 80

 PROFILE OF THE INDIAN
CONSUMERS AND THE MARKET
POTENTIALITY OF VARIOUS
PRODUCTS & SERVICES

The sample profile of consumers

are presented in different Tables ;
06/15/2024 DR JAYANT DUBEY 81
 I ON
LI G
E
BYR
S
ER )
TOM 011
S -2
CU 951
(1

BAN 1
U R 01
N D IN 2
A L A ERS
R M
RU STO
CU 06/15/2024 DR JAYANT DUBEY 82
The sample profile of consumers are presented in different Tables

06/15/2024 DR JAYANT DUBEY 83

 The sample profile of consumers are presented in different
Tables

06/15/2024 DR JAYANT DUBEY 84

The sample profile of consumers are presented in different Tables

06/15/2024 DR JAYANT DUBEY 85

 The sample profile of consumers are presented in different
Tables

06/15/2024 DR JAYANT DUBEY 86

 THANK
YOU
06/15/2024 DR JAYANT DUBEY 87