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Models of consumer
behaviour
Oct 15, 2013 • Download as PPTX, PDF
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AI-enhanced description
This document discusses several models of
consumer buying behavior:… Read more
EconomicModel:
Thismodelassumesthatwithlimitedpurchasing
powerandasetofneedsandtastes,aconsumerwill
allocatehis/herexpenditureoverdifferentproductsat
agivenpricessoastomaximizeutility.
BasesforEconomicModel:
•PriceEffect
•SubstitutionEffect
•IncomeEffect
Criticism:
•Failstoexplainhowdoestheconsumeractually
behave.
•IncompletenessintheModel.
•Lackofbroaderperspective.
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Models of consumer behaviour
1. By: Vikram.G.B Lecturer, P.G. Dept. of Commerce
Vivekananda Degree College
2. • • • • • • • • • 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
3. Traditional Models • • • • The Economic Model Learning
Model Psychological Model The Sociological Model
Contemporary Models • The Howard Sheth Model of
buying behaviour • The Nicosia Model • The Engle-
KollatBlackwell Model • Engle, Blackwell and Miniard
(EBM) Model • Webstar and Wind Model of organizational
buying behaviour
4. This model assumes that with limited purchasing
power and a set of needs and tastes, a consumer will
allocate his/ her expenditure over di!erent products at a
given prices so as to maximize utility. Bases for Economic
Model: • Price E!ect • Substitution E!ect • Income E!ect
Criticism: • Fails to explain how does the consumer
actually behave. • Incompleteness in the Model. • Lack of
broader perspective.
5. 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 di!erent
marketing strategies.
6. 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.
7. 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.
8. 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.
9. The model makes significant contribution to
understand consumer behaviour by identifying the
variables which influence consumers. • • • • Input variables
Output variables Hypothetic constructs Exogenous
variables
10. 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.
11. 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 to buy as modified by any of the inhibitors.
12. 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 characteristics.
13. 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
expectation
14. • Exogenous variables: These are list of a number of
external variables (external to the buyer) which can
significantly influence buyer decisions.
16. • There is a absence of sharp distinctions between
exogenous variables and other variables. • Some of the
variables, which are not well defined, and are di!icult to
measure too. • The model is quite complex and not very
easy to comprehend.
17. 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
product
18. 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 sales results by organisation.
20. • 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.
21. • 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
22. • Other related Variables included in this model: •
Information input • Information processing • Product –
brand evaluation • General motivating influences •
Internationalised environment influences
24. 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 e!ect of these on the buyer behaviour.
25. • 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.
26. • The EBM Model when compared to the Howardseth
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.
Editor's Notes
#4: Traditional models:- these models
were developed by economists with a
view to understand economic
systems.Contemporary models:- these
models evolved as newer approaches to
understand what are influencing
consumer behaviour these models
focused on the decision process adopted
by consumers and borrowed concepts
from behavioural sciences field.
#7: Id – the sources of all psychic energy
which drives to actSuper Ego – the
internal representation of what is
approved by societyEgo – the conscious
directing ‘id’ impulses to find gratification
in socially accepted manner.
#13: Perceptual constructs which deal
with information processing and learning
constructs which are related to the
buyer’s formation of concepts.
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