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Transcript of Models CB.pdf
7/27/2019 Models CB.pdf
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Consumer decision makingmodels
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Sociological Models
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Nicosia Model of
consumer behaviour •Proposed by Francesco M.
Nicosia in the 1970s
•The model concentrates on the
communication process that
occurs between a brand and aconsumer
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Explain the complex decisionprocess that consumers engage
in during purchase of new
products
Dynamics involved in decision
making
Decision aiming was presented
as a series of decisions
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• Model describes a circular flow of
influences.
• Each component provides input to the
next.
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• Four components of model
– Firm‟s attributes, communications and
consumer‟s pyschological attributes.
– Consumer‟s search for evaluation of
alternatives
– Consumer‟s motivated act of purchase
– Consumer storage or use of the product
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1.Marketer's communication affecting consumers‟
attitude
TV, newspaper, websites, personally
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2. Consumer's search and evaluation: Motivation
3. Purchase action
4. Consumption experience and feedback : Memory
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Howard-Sheth Model of Buying behaviour
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•Given by John Howard and Jagdish Sheth in
1969.
•Tried to explain buyer rationality while makingpurchase decisions even in conditions of
incomplete information
•Differentiated between three levels of decisionmaking, EPS, LPS and RPS
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The model has four major components
•Stimulus inputs (input variables)
•Hypothetical constructs
•Response outputs (output variables)
•Exogenous variables
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Stimulus inputs (Input variables)
•Informative cues about the product/service
offering
•Information cues could relate to quality,
price, distinctiveness, service and availability
•The informational cues could be
Significative, Symbolic, and Social.
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Engel-Blackwell-Miniard Model
• Developed originally in 1968 by
Engel, Kollat, and Blackwell.
• Later on Miniard contributed few
attributes in it.
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• Five activities of decision process occuring
over a time period:
– Motivation and need recognition
– Search for information
– Alternative evaluation
– Purchase
– outcomes
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• Model variables grouped into four general
categories:
– Stimulus inputs
– Information processing
– Decision process
– Variables influencing the decision process
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• Arrows in the model depicts major
directions of influence.
• Authors recognized two significantly
different modes of operation by
consumers.• Extended problem solving behaviour (EPS)
• Low problem solving behaviour
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• Information search• Individual characteristics (Risk taking ability)
• Environmental influences (urgency of need)
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• Acceptance or info processing• Acceptance (Comparison to evaluative criteria and
existing beliefs)
• Retention
Evaluation of criteria result in :
Beliefs
Attitudes
Intentions
Need Environmental
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Stimuli
Marketing
Dominated
Non-
Marketing
Dominated
Exposure
Attention
Comprehension
Acceptance
Retention
External Search
Dissatisfaction
Memory
Internal
Search
Need
Recognition
Search
Pre purchaseevaluation
Purchase
Consumption
Post
Consumption
evaluation
Divestment
Satisfaction
Influences:
Culture
Social class
Personal
influences
Family
situation
Individual
influences:
Consumer
resources
MotivationKnowledge
Attitudes
Personality
Lifestyledemographi
cs
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Bettman's Information Processing Model of
Consumer Choice (1979)
• Introduces in 1979
• Consumer is central to a host of
information processing activities.
• Receives a large amount of information
externally from the marketer,
competitors and the environment.
• Has a large store of information within
him as a database that he builds over
time from his learning, experiences,
social influences
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• With a huge amount of information
that he is exposed to, the processing
becomes difficult and unmanageable.
• But consumers‟ possess a limited
capacity for processing information.
• So consumers use certain simplifying
strategies to process information
• Use simple decision rules for specific
situations
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• The consumer information process is
depicted through several flowcharts.
• Which depict the various components of
the model and the interrelationships
between them
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• main components of the model are:
– Processing capacity
– Motivation
– Attention
– Information
– Acquisition
– Evaluation
– Decision process
– Consumption
– learning processes
St N 1 P i
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Stage No. 1: Processing
capacity
• Consumer has limited capacity for
processing information.
• Consumers are not interested in complex
computations and extensive information
processing.
• Consumers are likely to select choice
strategies that make product selection an
easy process.
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• Try to bypass their limits by being
selective towards informationreceptivity
– ignoring certain information that they
consider irrelevant or in
comprehendible
–prioritizing information that is
re uired and is in use
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Stage No. 2: Motivation
• Motivation is located in the center of Bettman model.
• Influence both the direction and theintensity of consumer choice for more
information while deciding.
• There exists a hierarchy of goals‟
mechanism that provides different sub-
goals to simplify the choice selection
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• Consumers own experience in a
specific area of market and he doesn‟t
need to go through the same hierarchyevery time to arrive at a decision.
• Converts the non-action or passive
inputs in the consumers into action
outputs or active behavior.
• No concern was given on religious
motives.
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Stage No. 3: Attention and
perceptual encoding
• Voluntary attention- conscious allocation of
processing capacity to current goals or
When a consumer actively/consciously seeks attention
to achieve his goals.
• Involuntary attention- automatic response to
disruptive events (e.g., newly acquired complex
information)
Short term attention that he provides before deciding
whether he should process the information that he has
been exposed to.
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• The perceptual encoding accounts for
the different steps that the consumer
needs to perceive the stimuli and whether
he needs more information. – Person integrates the information that he has
processes into his already existing perceptual
network or database
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• Based on perceptual encoding and the
database, the consumer decides on the
need and the quantum of marketing
information that he needs to process.
• This leads to the scanner and interrupt
mechanisms and the resultant
responses. The scanner and interruptmechanisms act like on and off switches
for a consumer.
S f
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• Insufficient Information in database:
Searching, Attention, Reception.
• Sufficient Information: Information
process gets interrupted.
• Newly acquired information is
evaluated and its suitability or
usefulness is assessed
Stage No. 4: Information
acquisition and evaluation
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• After acquiring information, the consumer
evaluates the information for utility and
sufficiency, and then moves on to make
decision choices.
• Cost-benefit analysis of information with
time, efforts and money.
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Stage No. 5: Memory
• In this component the consumer keeps
all the information he collects.
• It will be the first place to search when
he need to make a choice.
• Insufficient information in memory will
lead to external search.
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Stage No. 6: Decision Process
• This component deals with theapplication of heuristics or rules of
thumb, which are applied in the
selection and evaluation of specificbrand.
• Heuristics- Influenced by both individualfactors (e.g., personality differences)
and situational factors (e.g., urgency of
the decision).
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• Thus it is unlikely that the same decision
by the same consumer will apply in
different situation or other consumer in
the same situation.
• If the purchase is a routine purchase, the
decision making is faster and oftenrepeat; in other cases, it may take time.
Stage No 7: Consumption and
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Stage No. 7: Consumption and
Learning Process
• Future results after the purchase.
• Consumer gained experience.
• Experience provides information.
• Information becomes memory.
• Affects future behaviour.
A A t f th M d l
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An Assessment of the Model
• Focuses only on information processing.
• No explanation was given about the
criteria by which the consumer accepts or
refuses to process some specific
information.
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Concept Basic Idea Insight
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Concept Basic Idea Insight
Information Processing
capacity
Consumers limitations in the
amount of information they
can acquire, use &
remember.
Choose the most important
and useful points to
communicate.
Information search Processing, acquiring &
evaluating information are
affected by motivation,
attention & perception
Provide that amount of info
which takes little effort to
obtain, draws consumers
attention & is unambiguous,
simple & clear.
Decision rules/Heuristics Rules of thumb, developed
to enable consumers to
select among preferred
alternatives.
Learn to synthesize
information, that has
meaning and purpose to
your target market.
Consumption and learning Internal feedback based on
outcome of choices whichare used in future decisions.
Keep in mind that the
consumers have probablymade related choices in the
past, & are not „empty
vessels‟
Information environment Amount, location, format,
readability & processabilityof relevant info
Design info tailored to the
audience; place itconveniently for use.
THE SHETH NEWMAN
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THE SHETH-NEWMAN-
GROSS MODEL
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• Proposed in 1991.
• Tries to explain „Why‟ consumers make
choices as they do.
• Highlights a series of specific measurements
to understand the underlying consumer
decision.
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• SNG model is based on the basic
premise that “Consumer choice is a
function of certain specific consumption
values.” – Functional value
– Social value
– Emotional value – Epistemic value
– Conditional value
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Functional value
• "The perceived utility acquired from analternative for functional, utilitarian, or
physical performance. An alternative
acquires functional value through the
possession of salient functional, utilitarian,
or physical attributes. Functional value is
measured on a profile of choice attributes.“
– decision to purchase a particular automobile
may be based on fuel economy and
maintenance record
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Social value
• "The perceived utility acquired from an
alternative association with one or more
specific social groups. An alternative
acquires social value through associationwith positively or negatively stereotyped
demographic, socioeconomic, and cultural-
ethnic groups. Social value is measured ona profile choice imagery."
– a particular make of automobile is being
chosen more for the social image
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Emotional value
• "The perceived utility acquired from an
alternatives capacity to arouse feelings or
affective states. An alternative acquires
emotional value when associated withspecific feelings or when precipitating those
feelings. Emotional values are measured
on a profile of feelings associated with thealternative."
– interest, joy, surprise, sadness, anger, disgust,
contempt, fear, shame, and guilt
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Epistemic value
• "The perceived utility acquired from an
alternatives capacity to arouse curiosity,
provide novelty, and/or satisfy a desire
for knowledge. An alternative acquiresepistemic value by items referring to
curiosity, novelty, and knowledge."
– Trying something “NEW”
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Conditional value• "The perceived utility acquired by an
alternative is the result of the specific
situation or set of circumstances facing the
choice maker. An alternative acquires
conditional value in the presence of antecedent physical or social contingencies
that enhance its functional or social value.
Conditional value is measured on a profileof choice contingencies."
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• some products only have seasonal value
(e.g., greeting cards)
• some are associated with once in a life
events (e.g., wedding dress)
• and some are used only in emergencies
(e.g., hospital services)
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