MODELS OF CONSUMER BEHAVIOUR

SAURABHASST. PROF.-COM

SMVDU

Models of Consumer Behavior

• Traditional Models Economic Model Learning Model Psychoanalytic Model Sociological Model

• Contemporary Models Howard Seth Model Nicosia Model Engel-Kollat- Blackwell Model Webstar and Wind Model of Organizational Buying Seth Model of Industrial Buying

Traditional Models

• Economic Model:Consumers follow the law of principal of maximum utility based upon the law of diminishing marginal utility.

The law of equimarginal utility enables a consumer to secure the maximum utility from limited purchasing power.

The Economic model is based upon the certain predictions of buying behavior based on

Price effect Substitution effect Income effect

• Learning Models:The response of satisfaction reinforces the relationship between the drive and drive reducing stimulus object as well as related cues. The consumer in due course learns to associate connection between stimulus and response which becomes habit.The process results in the formation of attitude, values, beliefs and motivation etc.

the learning helps the marketers to understand the response of consumer at the market place.

Traditional Models

Traditional Models

• Psychoanalytical Model:It focus upon the personality of consumers and their reactions/responses on the market place.The model recognizes the fact that the consumer behavior is directed by a complete set of deep seated motives.The consumers are influenced by the symbolic factors in buying a product. It may help in designing, features advertising and other promotional techniques.

• Sociological Model:Studies the consumer as his role, status, interaction, influence, group relation, lifestyle, income, occupation, place of residence, social class etc.

Helps a marketer for effective STP

Contemporary Models- Howard Seth Model of Buying Behavior

Brands A B C

Significative

1. Quality2. Price3. Distinctiveness4. Availability5. Service

Symbolic

1. Quality2. Price3. Distinctiveness4. Availability5. Service

Service Environment

Feedback effects

InputsImportance of

PurchaseOrganiz

ationCultureSocial Class

Personality Variables

Financial Status

Time Pressure

Purchase Behavior

Outputs

Intention

Attitude

Comprehension

Attention

Search for Information

Predisposition

Specific Motives

Non Specific Motives

Decision mediators

Evoked Sets

Sensitivity to information

Perceptual bias Satisfaction

Inhibitors

Inputs-Output flow Of information and effects

Influence of exogenous variables

Contemporary Models- Nicosia Model

Purchasing Behavior

Sub field 1Firms

Attributes

Sub field 2Consumers attributes

(predisposition)

Consumption Storage

Search

Evaluation

Decision

ATTITUDEMessageExposure

Experience

Field 4 The Feedback

Field 2 Search for and evaluation of means-end (s) relations (s)(pre-actions)

Field 1 From Sources of a Message to Consumer’s Attitude

Field 3 The Purchasing action

Contemporary Models- Engel-Kollat-Blackwell Model

Information Output

Information Processing

Decision ProcessStages

Product Brand Evaluation

General Motivating Influences

InternalizedEnvironmental Influences

Stimuli Mass Personal General Marketer- Dominated

Search

Exposure

Attention

Reception

Information & Experience

Satisfaction

Dissonance

Problem recognition

Search

Alternative evaluation

Choice

Outcomes

Evaluation Criteria

Beliefs

Attitude

Intention

Motives

Personality Life Style

Normative Compliance

Cultural norms and Values

Reference group, family

Anticipated Circumstances

Unanticipated Circumstances

Contemporary Models- Engel-Blackwell-Miniard ModelVariables Influencing Decision Process

Stimuli 1MarketerDominated

Other

Input

External Search

Exposure

Information Processing

Attention

Comprehension

Acceptance

Retention

Memory

Internal Search

Need Recognition

Decision Process

Search

Alternative Evaluation

Purchase

Outcomes

Environmental Influences• Culture• Social Class• Personal

Influence• Family• Situation

Individual Differences• Consumer

Resources• Motivation &

Involvement• Knowledge• Attitude• Personality• Lifestyle• Demographics

Beliefs

Attitude

Intention

Dissatisfaction Satisfaction

Contemporary Models- Webstar & Wind Model Organizational Buying Behavior1: THE ENVIRONMENT

(Environmental determinants of buying behaviour)Physical Env. Economic Env. Legal Env. Technological Env. Political Env. Cultural Env.

Suppliers Customers Government Labour Unions

Trade Associations

Professional Groups

Other Business

Other Institutions

Information About Suppliers (Marketing

Communications)

Availability of Goods and Services

General Business Condition

Values and Notices

2. THE ORGANISATION(Organizational Determinants of Buying Behaviour)

THE ORGANISATIONAL CLIMATE: PHYSICAL,TECHNOLOGICAL, ECONOMIC, CULTURALOrganizational Technology Organizational Structure Organizational Goals & Tasks Organizational Actors

Technology relevant for Purchasing

Organization of the Buying Center &The Purchasing

Function

Buying task Member of the Buying Center

Technological constrains &Technology Available to the Group

Group Structure

Group Task

Member Characteristics& GoalsLeaderships

A B

A B

3. THE BUYING CENTER(InterpersonalDeterminantsOf Buying Behavior)

TASK ACTIVITIES INTEGRATIONS SENTIMENTS

NON-TASK ACTIVITIES INTEGRATIONS SENTIMENTS

GROUP PROCESSES

4. THE INDIVIDUAL PARTICIPANTSMotivation, Cognitive Structure, Personality, Learning Process, Perceived roles

Buying Decision Process 1. Individual Decision Making Unit

2. Individual Decision Making Unit

Buying Decision

Contemporary Models- The Seth Model Of Industrial Buying

(1) Active Search

(1a) Background of the Individual

(1c) Satisfaction

with Purchase

(1b) Information Sources

Sales PersonExhibitions and trade

Shows

Direct Mails

Press Releases

Journal Advertising

Professional & Technical

Conferences

Trade News

Word of mouth

Others

(1) Expectations of:

1. Purchase agents

2. Engineers3. Users4. Others

Specialized education

Role Orientation Life style

(1d) Perceptual Distortion

Autonomous decisions

(2) Industrial Buying Process

4. Situational

Factors

Supplier or brand choice

Joint Decisions

(3) Conflict

resolution1. Problem

Solving2. Persuasion3. Bargaining4. Politicking

(2a) Product Specific Factors

(2b) Company Specific Factors

Time Pressure Perceived Risk Types of Purchase

Organization Orientation

Organization Size

Degree of centralization

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