Various Models of Consumer Behavior and its Marketing Application

Presented by:Mansi ShahMeera MatthewPrathamesh Pawar 35Sukiran Mehta 54Tanya D’souzaTony Joel Mendonca 57

Consumer Behavior Models

Consumer Processing Models (CPM)

1

Rational, Cognitive approach Driven by Fun, fantasies and feelings

Hedonic, Experimental Models (HEM)

2

Nicosa Model

NICOSIA MODEL

•Francesco Nicosia was one of the first to develop consumer behavior model in the early 1960s

•He shifted the focus from the act of purchase itself to the more complex decision process that consumers engage in about products & services

Field 1- Consumer AttitudesSub field 1: deals with

•the firm’s marketing environment and communication efforts that affect consumer attitudes,

•the competitive environment,

•characteristics of target market

Sub field 2: specifies:• the consumer characteristics e.g., experience, personality, and how he perceives the promotional idea toward the product •in this stage the consumer forms his attitude toward the firm’s product based on his interpretation of the message.

Field 2- Search and evaluation

Field 3: The act of the purchase

•Transformation of motivation into the act of buying

•Evaluation of options leading to motivation would result in action

Field 4: Feedback

•Analyses the feedback of both the firm and the consumer after purchasing the product

Howard – Sheth Model

HOWARD-SHETH MODEL

Attempt to explain brand choice behaviour within the constraints of:-• Limited Individual Capacities• Incomplete Information

3 Levels of learning/stages of decision making:-• Extensive problem solving• Limited problem solving• Routinized response behaviour

Extensive Problem Solving

• Early stage of decision making

• Buyer has little information of brands

• Buyer’s choice criteria is not yet formed

Limited problem solving

• Advanced stage of decision making

• Choice criteria are not defined

• Buyer undecided about the best brand

Routinized response behavior

• Choice criteria are well defined

• Strong predisposition towards one brand

• Little evaluation of alternatives by the buyer

Postulates 4 sets of concepts/constructs or variables:-InputsPerpetual and Learning constraintsOutputsExogenous Variables

Criticisms to the Howard-Sheth Model

• The model has been only been partially tested• It does not explain the non-systemmatic

behaviour• The model does not recognize the exogenous

factors but explains little on the same

Engel – Kollat – Blackwell Model

Engel-Kollat-Blackwell model

• The EKB model of consumer behavior was originally designed to serve as a framework for organizing the fast growing body of knowledge concerning consumer behavior.

• This is part of Consumer Processing Model (CPM)

The Engel-Kollat-Blackwell model consist of four components

• I. Information processing

• II. Central control Unit

• III. Decision Process and

• IV. Environmental influences

i. Information processing:

a) Exposure to pool of stimulib) Attentionc) Comprehensiond) Retentione) Memory

ii. Central Control Unit:

The stimuli received are processed and sent to the central control unit.

a. Stored information and past experience about the product/ brand which serves as a memory for comparing different alternatives

b. Evaluative criteria which the consumer uses in judging the alternatives

c. General and specific attitudes which influence the purchase decision

d. Basic personality traits, which influence how the consumer is likely to respond to various alternatives

An Individual(Central Control unit)

Personality Traits

Motives

Attitudes

Past Info

Evaluation Criteria

iii. Decision process:

The decision process component of the model consists of:

a. Problem recognitionb. Internal search and evaluationc. External search and evaluationd. Purchase processese. Decision outcomes

(Information input, Information processing, Product-brand evaluation, General motivating

influences)

iv. Environmental Influences:

• The environmental factors that may influence the consumer’s purchase decision are income, culture, family and social class.

• Depending on the specific product under consideration, these factors may have a favorable or unfavorable influence on the purchase decision.

Marketing applications

• Consumer buying process is of several stages than a single act. The decision process can be classified.

1. Extended Decision Process2. Limited Decision Process3. Habitual Decision Process

• Reduction of Cognitive Dissonance

Lawson’s Model

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Lawson’s model

ComplexBuying

Behavior

Variety-Seeking

Behavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior

Model of Buyer Behavior - Lawson’s model

Marketing and Other Stimuli

MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural

Buyer’s Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount

Factors Influencing Consumer Behavior-Lawson’s model

Social

Referencegroups

Family

Rolesand

status

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerception

LearningBeliefs andattitudes

Psycho-logical

MotivationPerception

LearningBeliefs andattitudes

BuyerBuyer

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural

Application of Lawson’s Model

• Happens subconsciously during all purchases• Most often for expensive purchases• Example: decision to purchase a new house or

real estate / car / electronics, etc.• Rarely affects the purchase decision of FMCG

segment

Multi attribute Attitude Model

"Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs".

Multi attribute Attitude Model

Sheth-Newman Gross Model of Consumption Values

Sheth-Newman Gross Model of Consumption Values

Consumer Choice

Behavior

Conditional Value

Functional Value

Emotional ValueEpistemic Value

Social Value

Functional value

Follows Economic utility theory

Economic Rationalism

Based on attributes of consumable item.

Social value

Highly visible products

Items chosen on perceived social image

Social Value derived from symbolic importance

Emotional value

Decisions based on;Products potential to arouse emotions

Aesthetics, such as beauty and artistry

Epistemic value

Applies for new products & services

Curiosity, novelty & knowledge

Conditional value

Value strongly tied to use in specific context

Temporary in nature

Arises only when circumstances create a need

Higher sales

Better Differentiation

Also explains product adoption

Explains the need for brand building

Helps in designing of advertisements and promotional efforts.

Application

Cannot be used for organizational purchase behavior because it does not take influential factors under consideration

Also cannot be used for buyers who are not the users.

Limitation