ASSIGNMENT NO.

1
Student Name: Alka Goyal Student Roll No: 2021030203

Course: MBA Semester : 2nd

Subject : Organizational Behaviour Faculty : Ms. Manpreet Kaur

Issue Date : 12-04-2022 Return Date : 20-04-2022

Assignment Weightage: 15 Marks

PURPOSE:-
The assignment is designed to assess what students have learnt over last few weeks.
ASSIGNMENT OBJECTIVE/ OBJECTIVES
Student must understand their assignments questions.
 Assignment Question:
1. Concept of consumer behaviour, models of consumer behaviour and relationship with other
studies & theories of personality and theories of learning.
The maximum length of each task should be minimum five pages 1.5 spaced, with 1-inch margins and
12-point Time New Roman font.
ASSESSMENT GUIDANCE: -
Individual or in group? Individual
To obtain 40%:- Presentation
To obtain 50%:- Presentation + Interpretation
To obtain above 60%:- Presentation + Interpretation + Innovation
COMMENTS:-
Criterion (Grade): Excellent Good Satisfactory Poor
Presentation: Excellent Good Satisfactory Poor
Interpretation: Excellent Good Satisfactory Poor
Innovation: Excellent Good Satisfactory Poor
Adequate reference to sources: Yes No
Relevance of Content: Well Focused Relevant Irrelevant

Marks/Grades Obtained:-____________________
Faculty Signature Date:-_____________
 CONSUMER BEHAVIOR
MEANING:
Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers
in the marketplace and the underlying motives for those actions.
The study of consumer behavior assumes that the consumers are actors in the marketplace. The perspective
of role theory assumes that consumers play various roles in the marketplace. Starting from the information
provider, from the user to the payer and to the disposer, consumers play these roles in the decision process.
For Example, a mother plays the role of an influencer in a child’s purchase process, whereas she plays the
role of a disposer for the products consumed by the family.

DEFINITIONS
According to Engel, Blackwell, and Mansard, “consumer behaviour is the actions and decision processes
of people who purchase goods and services for personal consumption

CONSUMER BEHAVIOUR MODELS:-

These models are either traditional or contemporary.

1. Traditional Behavior Models:-

Traditional behavior models were developed by economists hoping to understand what customers purchase
based on their wants and needs. Traditional models include the following:-

 Learning Model

 Psychoanalytical Model

 Sociological Model

 Economic Model

1. Learning Model of Consumer Behavior:- The Learning Model of customer behavior theorizes
that buyer behavior responds to the desire to satisfy basic needs required for survival, like food, and
learned needs that arise from lived experiences, like fear or guilt. This model takes influence from
psychologist Abraham Maslow’s Hierarchy of Needs (pictured below)

2. Psychoanalytical Model of Consumer Behavior:- Sigmund Freud is the father of

psychoanalysis. The psychoanalytical model draws from his theories and says that individual consumers
have deep-rooted motives, both conscious and unconscious, that drive them to make a purchase. These
motives can be hidden fears, suppressed desires, or personal longings.

Page | 2
Alka Goyal
MBA 2nd Semester
2021030203
3. Sociological Model:- The Sociological Model of consumer behavior says that purchases are
influenced by an individual's place within different societal groups: family, friends, and workgroups, as
well as less-defined groups like Millennials or people who like yoga. An individual will essentially
purchase items based on what is appropriate or typical of the groups they’re in.
FOR INSTANCE, C-Suite executives are expected to be professional and formal.
4. Economic Model of Consumer Behavior:- The economic model of consumer behavior is the
most straightforward of the traditional models. This model argues that consumers try to meet their needs
while spending as few resources (e.g. money) as possible. While the economic model is the easiest to
understand, it’s also the most limited. A buyer may have other reasons for purchasing a product aside
from price and personal resources.

CONTEMPORARY MODELS

Contemporary models of consumer behavior focus on rational and deliberate decision-making processes
rather than emotions or unconscious desires. The contemporary models include:

• Engel-Kollat-Blackwell (EKB) Model

• Black Box Model
• Hawkins Stern Model
• Howard Sheth Model
• Nicosia Model
• Webster and Wind Model

1. The Engel Kollat Blackwell Model of Consumer Behavior :- The Engel-Kollat Blackwell
model of consumer behavior outlines a five-stage decision process that consumers go through before
purchasing a product or service.

• Awareness
• Information Processing
• Evaluation
• Purchasing Decision
• Outcome Analysis

Page | 3
Alka Goyal
MBA 2nd Semester
2021030203
1. Black Box Model of Consumer Behavior:- The Black Box model, sometimes called the
Stimulus Response model, says that customers are individual thinkers that process internal and external
stimuli to make purchase decisions. The graphic below illustrates the decision process.
2. Hawkins Stern Impulse Buying Model:-The Impulse Buying theory is an alternative to the
Learning Model and EKB, as it claims that purchases aren’t always a result of rational thought. When
we think of impulse buying, we typically imagine picking up a candy bar or a pack of gum right before
checking out. These are certainly impulse purchases, but Hawkins Stern categorizes them into four
different types:-

• Escape Purchase
• Reminder Purchase
• Suggested Purchase
• Planned Purchase

3. Howard Sheth Model of Buying Behavior:- The Howard Sheth model of consumer behavior
posits that the buyer’s journey is a highly rational and methodical decisionmaking process. In this model,
customers put on a “problem-solving” hat every step of the way — with different variables influencing
the course of the journey. According to this model, there are three successive levels of decision-making:

• Extensive Problem-Solving
• Limited Problem-Solving
• Habitual Response Behavior
We’ve all gone through some version of these stages.

Let’s look at an anecdotal example.

When I first started buying glasses online, I had no idea which retailers I should use or whether the
glasses sold online would be the same quality as the opticians’ offerings. I searched online to find a
high-quality online glasses retailer (extensive problem solving).

I found a few choices and started comparing them from both a pricing and quality standpoint (limited
problem-solving). I eventually chose one, and that’s the retailer I’ve used ever since (habitual response
behavior).

Page | 4
Alka Goyal
MBA 2nd Semester
2021030203
 But these stages aren’t that simple. According to the Howard Sheth model, I was under the sway of
several stimuli during this process:
• Inputs
• Perceptual and Learning Constructs
• Outputs
• External Variables

1. Nicosia Model:- The Nicosia Model places emphasis on the business first and the consumer second.
It argues that the company’s marketing messages determines whether customers will buy.

While it’s an attractive model because it places all the power on businesses, it’s unwise to ignore the
customer’s internal factors that lead to a purchase decision. In other words, while you may offer the
wittiest and most effective marketing copy ever, a customer’s internal attributes may have more sway in
some instances over others. The model is comprised of four fields:-

• The business’ characteristics and the customer’s characteristics

• Search and evaluation
• Purchase decision

• Feedback

2. Webster and Wind Model of Organizational Buying Behavior:- The Webster and Wind
Model is a B2B buying behavior model that argues there are four major variables that affect whether an
organization makes a purchase decision. Those are:

• Environmental Variables
• Organizational Variables
• Buying Center Variables
• Individual Variables

THEORIES OF PERSONALITY:
There are three major theories of personality:
1. Freudian theory:- Sigmund Freud’s theory of personality is a cornerstone of modern
psychology .This theory is built on bases of unconscious needs. Id, superego, and ego

Page | 5
Alka Goyal
MBA 2nd Semester
2021030203
 The id was conceptualized as a “warehouse" of primitive and impulsive drives basic physiological needs
such as thirst, hunger, and sex—for which the individual seeks immediate satisfaction without concern
for the specific means of satisfaction.
In contrast to the id, the superego is conceptualized as the individual's internal expression of society's
moral and ethical codes of conduct. The superego's role is to see that the individual satisfies needs in a
socially acceptable fashion. Thus, the superego is a kind of "brake" that restrains or inhibits the
impulsive forces of the id.
Finally, the ego is the individual's conscious control. It functions as an internal monitor that attempts to
balance the impulsive demands of the id and the sociocultural constraints of the superego.
2. Neo-Freudian Theories:- There are some neo-Freudians who believed that social relationships are
fundamental to the formation and development of personality. Alfred Adler viewed human beings as
seeking to attain various rational goals, which he called style of life. He also placed much emphasis on
the individual's efforts to overcome feelings of inferiority
Harry Stack Sullivan, another neo-Freudian, stressed that people continuously attempt to establish
significant and rewarding relationships with others. He was particu larly concerned with the individual's
efforts to reduce tensions, such as anxiety. Karen Horney an neo-Freudian was also interested in
anxiety. She focused on the impact of child-parent relationships and the individual's desire to conquer
feelings of anxiety. Horney proposed that individuals be classified into three personality groups
compliant, aggressive, and detached.
1. Compliant individuals are those who move toward others (they desire to be loved, wanted, and
appreciated).
2. Aggressive individuals are those who move against others (they desire to excel and win admiration).
3, Detached individuals are those who move away from others (they desire independence, self-reliance,
self-sufficiency, and individualism or freedom from obligations).
3. Trait Theory:- It is defined as “any distinguishing, relatively enduring way in which one individual
differs from another”

CONSUMER BEHAVIOURAL LEARNING THEORIES:-

There are various theories which are developed to explain the learning theories. The below are the major
theories related to consumer behavior.
 Behavioral Theories:-Behavioral theory is based on observable behaviors (responses) that occur as
the result of exposure to stimuli.
 Cognitive Theories: Learning is based on mental information processing, it is also often in response
to problem solving.
Page | 6
Alka Goyal
MBA 2nd Semester
2021030203
BEHAVIORAL LEARNING THEORIES:
Behavioural learning theories are sometimes referred to as stimulus-response theories because they are
based on the premise that observable responses to specific external stimuli signal that learning has taken
place.

1. CLASSICAL CONDITIONING (Stimulus-Response): Classical conditioning is the

association of one event with another desired event resulting in behaviour. The most well known
experiments on classical conditioning were conducted by Ivan Pavlov, the Russian psychologist, who
won the Nobel Prize for his experiments on this subject. Pavlov conducted an experiment on dogs and
tried to establish a Stimulus-Response
(S-R) connection. He tried to relate the dog’s salivation and the ringing of the bell. In his experiments, he
put some meat in front of dogs.
Researcher’s Argumentation:
Researchers have argued that the examples given are really nothing more than mood encoding, and that
the positive affect tag is the effective mechanism.

2. Cognitive Associative Learning (Memory/Trial-Error based):-The pioneer of cognitive

learning theory is Edward Tolman. He developed and tested this theory through controlled experiments.
Using rats in his laboratory, he showed that they learnt to run through a complicated maze towards their
goal of food. It was observed that rats developed expectations at every choice point in the maze. Thus,
they learnt to expect that certain cognitive cues related to the choice point could ultimately lead to food.
The learning took place when the relationship between the cues and expectancy was strengthened
because the cues led to expected goals.
Cognitive learning is achieved by thinking about the perceived relationship between events and
individual goals and expectations. Cognitive theory of learning assumes that the organism learns the
meaning of various objects and events and learned responses depend upon the meaning assigned to
stimuli...

3. INSTRUMENTAL (OPERANT) CONDITIONING (Result/Reinforcement based):-

“A behavioural theory of learning based on a trial-and-error process, with habits forced as the result of
positive experiences (reinforcement) resulting from certain responses or behaviours”. Operant is defined
as behaviour that produces effect. Operant conditioning is based on the work of B.F. Skinner who
advocated that individuals emit responses that are rewarded and will not emit responses that are either
Page | 7
Alka Goyal
MBA 2nd Semester
2021030203
 not rewarded or are punished. Operant conditioning argues that behaviour is a function of its
consequences. Behaviour is likely to be repeated if the consequences are favorable. Behaviour is not
likely to be repeated
if the consequences are unfavorable. Thus the relationship between behaviour and consequences is the
essence of the operant conditioning. It occurs as the individual learns to perform behaviours that produce
positive outcomes and avoid behaviours that yield negative outcome.

4. Social Learning Theory:- People learn through observing others’ behavior, attitudes, and outcomes
of those behaviors. “Most human behavior is learned observationally through modeling: from observing
others, one forms an idea of how new behaviors are performed, and on later occasions this coded
information serves as a guide for action.” (Bandura). Social learning theory explains human behavior in
terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences.

NECESSARY CONDITIONS FOR EFFECTIVE MODELING:-

1. Attention- various factors increase or decrease the amount of attention paid. It includes distinctiveness,
affective valence, prevalence, complexity, functional value. One’s characteristics (e.g. sensory
capacities, arousal level, and perceptual set, past reinforcement) affect attention.
2. Retention- remembering what you paid attention to. Includes symbolic coding, mental images,
cognitive organization, symbolic rehearsal, motor rehearsal
3. Reproduction- reproducing the image. It is including physical capabilities, and selfobservation of
reproduction.
4. Motivation- having a good reason to imitate. Includes motives such as past (i.e. traditional
behaviorism), promised (imagined incentives) and vicarious (seeing and recalling the reinforced model)

Page | 8
Alka Goyal
MBA 2nd Semester
2021030203