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Unit II : Consumer Models Economic model, Psychoanalytic model, Sociological model, Howard & Seth model, Nicosia model, Engel-Kollat-Blackwell model.

Economic modelSynthesized by Alfred Marshall based on the theory of Marginal Utility & Micro- Economic Theory The focus is on the Act of Purchase of an Average Consumer It explain WHAT a consumer would purchase and In WHAT QuantityContdIt is assumed that with the limited purchasing power, and a set of needs and tastes, a consumer will allocate his/her expenditure over different products at given prices so as to maximize utility.Economic Model is based on certain assumptions of buying behaviorPrice Effect (lesser the price of the product more the quantity purchased)Substitution Effect (lesser the price of the substitute more the quantity purchased)Income Effect(more the purchasing power more the quantity purchased)Criticism of Economic ModelThe major criticism to economic model comes from the premise Consumers allocate their resources to maximize satisfactionFurther , Economic Model ignores the Effect of PerceptionAttitudeMotivationPersonalityLearning processSocial ClassCulture

Psychoanalytic modelPsychoanalytic Model is attributed to the work of eminent psychologist Sigmund Freud.Human mind is composed of three elementsPreconscious elementConscious elementUnconscious elementPersonality consists of three structures within the human mind.These structures through interrelated are often conflictingIdEgoSuper EgoPsychoanalytic model

Contd..Id Original and the most basic system of human personalityLeads to strong drives and urgesInstinctive, pleasure seeking elementRepresents storehouse of all instinctsId is largely childish, irrational, never satisfied , demanding Contd..Super EgoNoblest thoughts ,ideas,feelings that are acquired by a person from his parents, teachers, friends,religion and organization.Primary concern of super ego is to determine whether action proposed by ego is right or wrong.EGOMaintains a balance between id and the super ego Criticism All the behavior cannot be attributed to satisfaction of Id.This model views consumers as individuals with the minimal influence of the family, society, reference groups, or other social group influences.Values of individual are liable to change over a period of time through changes created in perception, learning, attitude building which this model ignores.Sociological ModelThis model the individual buyer is a part of the institution called society.He is playing many roles as a part of various formal and informal associations. Such interactions leave some impressions on him and play a role in influencing his buying behavior.

Criticism The marketers through a process of market segmentation can work out on the common behavior patterns of a specific class and group of buyers and try to influence their buying pattern.Howard Seth ModelThe model attempts to depict rational brand choice behavior by buyers under conditions of incomplete information and limited abilities. It distinguishes three levels of decision making: 1) Extensive problems solving early stages of decision making in which the buyer has little information about brands and has not yet developed well defined and structured criteria by which to choose among products (choice criteria).2) Limited problems solving in this more advanced stage choice criteria are well defined but the buyer is still undecided about which set of brands will best serve him. Thus, the consumer still experiences uncertainty about which brand is best.3) Routinized responses behavior buyers have well defined choice criteria and also have strong predispositions toward the brand. Little confusion exists in the consumers mind and he is ready to purchase a particular brand with little evaluation of alternatives

Howard Seth ModelHoward Seth gave the model of buyer behavior which has four sets known as constructs or variables.These are InputsPerceptual & Learning constructsOutputExogenous variablesHoward-Sheth Model of Buying Behavior

CriticismThe Howard Sheth has only been partially tested. It does not explain the non- systematic behavior. The Howard Sheth does recognizes the exogenous factors but explains little on the same.Nicosia ModelThis Model concerns with the Inter-relationship between: The firms marketing communications The attributes of the consumer, The consumers decision process including Search and evaluation process Actual decision process The feedback of the consumers response to the firm.Nicosia Model

Arguments Against Nicosia ModelIncomplete in a number of aspects, including the influences and inter-relationships among the consumer attributes .A number of assumptions have been made that question the validity of this model, for instance: What type of consumer are we talking about? The company and the consumer have an existing relationship? What type? Is this for a new product? Is this the first exchange the consumer has had with the producer? Engel-Kollat-Blackwell Model

The EKB model is comprehensive and shows the components of decision making and the relationships and interactions among them.The five distinct parts of consumer decision making presented are:Input, information processing, a decision process, decision process variables, and external influences

Engel-Kollat-Blackwell Model

InputInput includes all kinds of stimuli from our contact with the world around us:Our experiences, contact with othersMarketer-controlled stimuli (e.g., advertising, store display, demonstrations)Other stimuli (e.g., personal recollections, conversations with friends)External search

Information ProcessingStimuli are processed into meaningful information Five methods of information processing:ExposureAttentionComprehensionYieldingRetention

Decision ProcessIt is triggered at any time during information processingIt consists of five steps:Problem recognitionSearchAlternative evaluationChoiceOutcomes (post-purchase evaluation and behavior)

Decision Process VariablesThose individual qualities that make people/consumers unique.Decision process variables includeMotivesBeliefsAttitudesLifestylesIntentions Evaluative criteriaNormative compliance and informational influenceOther aspects of self

External InfluencesSuch influences are called Circles of Social Influence. They are: culture, sub-culture (co-culture), social class, reference groups, and family or household influences

Limitation This model is the inclusion of environmental variables and general motivating influences but not specifying the effect of these on the buyer behavior.