Journal of Management (JOM)

Volume 5, Issue 4, July – August 2018, pp. 125–137, Article ID: JOM_05_04_014
Available online at http://www.iaeme.com/JOM/issues.asp?JType=JOM&VType=5&IType=4
ISSN Print: 2347-3940 and ISSN Online: 2347-3959
© IAEME Publication

APPROACHES TO CONSUMER BEHAVIOUR

-A REVIEW
NU. Ramya
Research Scholar, Ph.D., Management,
Urumu Dhanalakshmi College, Tiruchirappalli, India

Dr. K. Kaliyamurthy
Associate Professor & Head., Research Advisor in Economics & Management,
PG & Research Department of Economics,
Urumu Dhanalakshmi College, Tiruchirappalli, India

ABSTRACT
Realizing, and as well, analyzing the purchasing behaviour of consumer is the
core constituent to provide efficient consumer satisfaction. A consumer is not only
purchasing a produce, but he alone determines the victory of a firm. Hence for every
successful firm, there exists a consumer support behind it. That support is technically
called behavioural support and behind the support there is lot of theories to analyze
and discuss the various concerns involving to consumer behaviour.
Since World War II, taking into account the dire need of the public, the marketers
started to market and encourage the produce what the consumers needed, instead of
producing what the companies prefer. The concept of understanding the behaviour of
consumer emerged in late 1940’s from which it has taken into so many dimensions.
This is now known as “modern concepts of marketing”. At present, Consumer
behaviour is commonly influenced by social, psychoanalytic and economical
approaches. Each factor openly or not directly accounts to the characteristics of a
buyer. Hence it is vital to be aware of the role of factors influencing the buying nature
of consumer. The main iota of this research paper is to analyze the theoretical
underpinnings and factors involved in consumer behaviour and its implications, in the
light of developments crop upped in the recent past.
Key words: Consumer behaviour, Models, Psychoanalytic, Theories.
Cite this Article: NU. Ramya and Dr. K. Kaliyamurthy, Approaches to Consumer
Behaviour - A Review, Journal of Management, 5(4), 2018, pp. 125–137.
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1. INTRODUCTION
From bullock cart to modern cars era, each time, the trend of business is changed in tune with
the behaviour of consumers. Consumers mind set can be categorized into preferred state and
definite state. A successful firm which find the difference between this `definite and preferred
state` will prevail in the competitive business world and best provide the solution to assure

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 Approaches to Consumer Behaviour - A Review

their consumers. In recent times companies are updating their products with more models and
features to meet up the requirements of their customers. The customers are not satisfied with
what they possessed from market, but are keen to be acquainted with the subsequent invention
to suit their taste. In the above context, leading Mobile phone companies, Motor Industries
etc., frequently come up with new versions of their products in order to stabilize their market,
by knowing customer day to day advanced and sophisticated needs. In a nut shell, consumer
behavior is one among the main factors that tends to change the profit and loss of the
company which would probably reflect in economic status of a company as well the country`s
economy, by way of export of products and thereby earning foreign exchange revenue to the
Government exchequer.
Further, it is a growing trend now a days that buyers are purchasing their goods in online
while sitting simply in office and thus creates a new consumer theory for online consumer.
The lack of leisure time for a consumer, change the behavior of `attitude to buy from intention
to buy.

2. IMPORTANCE OF STUDYING CONSUMER BEHAVIOUR

“Studying the behavior of consumers is considered to be intricate since the mind, attitude for
purchasing a product, utilization of the manufactured goods varies from one individual to
another” (Solomon, 2009). Consumer behavior study is important for an organization in order
to analyze how a consumer will react to their product which influences the profit of the
organization. Studying provides the seller to know better about the changing current market
trends and future challenges. (Kumar, 2004). These factors influence the marketing of the
product. Hence, consumer behavior is an essential tool for the sellers to meet their objectives.
A study of consumer behavior is very essential for the subsequent motive,

2.1. The Marketing Concept - Realistic Implementation

Consumer-oriented marketing is the new modern technique used in marketing. Marketing
mix, can be developed by analyzing the behavior. The marketer should know exactly what the
consumer desires to buy and why he needs to buy, else he cannot implement a thriving
procedure of marketing mix.

2.2. Differentiating and Segmenting Product and Market

Studying the behavior is very important for making the product unique, which in turn will
tempt the consumer to buy that particular product amidst various other products. This can be
done by planning product differentiation strategies. Consumer behavior study is essential in
segmenting the market into separate sub-markets that consists of consumer with familiar
characteristic and needs which will lead to successful marketing of the product.

2.3. Supply Channels and Selections

Study also deals with where the patrons buy their products from. People of status in a society
prefer to buy products from branded markets in spite of the higher price. They never buy
products from ordinary markets / shops. Therefore the study is essential to select the
appropriate channel of supply to satisfy the consumers of different status and groups.

2.4. Scheming Promotional Techniques

Promotional techniques comprise of advertising the product through media and papers, door
step selling approaches and creating promotional devices for sales. Scheming promotional
techniques helps the seller to understand the psychology of people. This analysis will help in
integrating the promotional technique of the frim.

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2.5. Tradeoff Involving Quality and Price

The vital key to successful marketing is to identify the consumers’ needs and satisfy them
with their products. This can be understood by studying the consumer’s behavior which
discloses whether the consumer highlights more on quality or price of their enterprise. The
seller can propose suitable price and upgrade the quality of their product to meet the needs of
the consumer.

2.6. Accomplishment of Marketing Goals

The company’s market growth, survival, and profitability relays on capability to spot and
convince the unfulfilled requirements of the consumers. The study also provides the salesmen
to know the requirements of the consumer. Thus, improving the performance of the entire
distribution channel. It also provides to organize better marketing program (product, price,
promotion, physical distribution) which helps to accomplish the marketing goals.

2.7. Coping with Changing Marketing Programme

Consumer behavior studies the response pattern of the consumer constantly. Hence the seller
can perceive the changes that takes place in the market and tend to adopt with the changing
market situations.

2.8. Predicting Future Trends in Market

In order to retain the consumer for a long time, the company studies the behavior of the
consumer in every single segment and for every single product. The marketer should analyze
the future opportunities, threats and challenges according to the consumers’ needs and make
the product immediately available for the consumers.

2.9. Competition
The success of a company depends upon how their product satisfies the consumers’ needs
better and sooner than their competitors. Study of consumer behavior is vital, when a
company desires to develop a new product. Consumer behavior helps in studying the
changing nature of the market which is useful in improving the competitive strengths of the
company. It also provides the appropriate use of resources for accomplishing the maximum
efficiency. Study of consumer behavior not only important for studying current market trends,
it also helps in analyzing the future market needs. Thus study of consumer behavior is very
essential in understanding the modern marketing system.

3. MODELS OF CONSUMER BUYING BEHAVIOUR

The two types of models, viz., Traditional and Contemporary model determines the different
attitudinal change of a consumer towards buying behaviour. While the traditional models
deals with economic model, behavioural model, sociological model and psychoanalytic
model. Whereas the contemporary model consist of Howard Sheth Model, Engel-Kollat-
Blackwell Model, Nicosia Model, Stimulus-Response Model and such other models, which
we can discuss in detail in this paper.

3.1. Economic Model

3.1.1. Consumer as an Economic Man
Consumer behavior in general can be explained as a range of activities and actions meant to
satisfy the consumption needs of groups or individuals. This is achieved by obtaining goods
and services and correlating that with the preferences system and with the way of dealing with

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 Approaches to Consumer Behaviour - A Review

purchased goods. This approach to consumer behaviour considers “consumers to be highly

based on reason and sufficient” (Tyagi). According to this principle “rational behaviour of
consumer includes being responsive of all alternative options available for their decision, as
well as, having clear knowledge on the advantages and disadvantages associated with each
option” (Kahle and Close, 2006)
3.1.2. Economic Models on Consumer Behaviour
Economics is focused with the behaviour that people decide to acquire goods and services that
will satisfy their needs and wants. The theory of consumer behaviour gives a clear view on
how a consumer expends his income so as to accomplish the utmost fulfilment or utility.
Consumers’ utility maximisation behaviour can be subjected to the following constraints:
 Consumers are inhibited by their income limit. Therefore, they cannot meet the
expense to satisfy all their needs.
 Consumer’s wants and needs are extensive.

3.2. Economic Factors

Consumer behavior is influenced by various economic factors like personal income, family
income, future income, liquid asset position, ease of use of credit facilities, standard of living.
Personal income is the main factor to be considered since it gives consumer the power to buy
what he needs. When the revenue of an individual is high, then his desire to buy things will
also be high. Family income comprises total revenue of all the members in the family. When
considering family requirements, buying pattern will also change. Further, current expenses of
an individual depends upon his future needs and thus his future income influences his
behaviour on buying products.
Liquid asset position, ease of use of credit facilities, Standard of living is some other
important factors that determines the consumer behaviour. If a consumer have more currency
in the form of cash in hand, bank deposits, bonds, he will decide to pay out more of his money
to meet his needs, that we can say Liquid asset position. Ease of use of credit facilities
includes, facilities like easy installment, deferred payment. This makes the consumer spend
more liberally. The behaviour of maintaining Standard of living of a consumer would have
more impact on buying pattern when he will try to enhance his standard of living with other
higher sections of his society. At times he won`t hesitate to meet his needs by borrowing,
pledging, and selling of his valuable holdings in hand.

3.3. Economic Theories: A Brief Review

The most primitive theory in the economics field is the cardinal utility theory formulated by
Gossen (1854), Jevons (1871), Walras (1874) and Marshall (1890). Later on J.R. Hicks and
R.G.D. Allen (1934) developed indifference curve technique as an ordinal approach. Paul
Samuelson overcame with Revealed preference theory in which he stated ``Choice reveals
preference``. Hicks then formulated the Revision of demand theory towards consumer
behaviour. Shortly, Kelvin Lancaster stated that it is ``attribute`` rather than the product, is the
core of consumer`s preferences.
3.3.1. Marginal Utility Approach
Utility is the fulfillment that a consumer acquires by consuming a product. Thus, it is that
property of the product that satisfies the requirements and desires of the consumers. Utility is
a internal concept which shows a discrepancy from one self to other. The scope of aspiration
by a person for a product relays on the utility factor that he connects with it. 19th-century
economists attempted to elucidate the economic authenticity of price, which they supposed
was obsessed by a product's utility. This lead to an irony "the paradox of water and

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 NU. Ramya and Dr. K. Kaliyamurthy

diamonds", ascribed to “Adam Smith, author of The Wealth of Nations”. It explains that
water has importance less than diamonds, though water is fundamental to life and diamonds
aren't. Marginal utility and marginal cost are accustomed to decide price, the paradox is that,
“the marginal cost of water is much lower than that of diamonds.” Marginal utility is to find
out how much of a thing a consumer will buy. It is explained as the added contentment a
consumer obtains from consuming an extra piece of a service or good. When the utilization of
an extra piece raises the total utility, it is Positive marginal utility. When total utility decreases
then it is negative marginal utility.

3.3.2. Ordinal Utility Approach

Ordinal utility approach (neo-classical theory of consumer equilibrium, Hicksian theory of
consumer behavior, indifference curve theory, and optimal choice theory) states that a
consumer prefers different blend of two goods which provides him same satisfaction level. It
states that utility of various goods can be measured qualitatively and not quantitatively.The
theory of indifference curves states that the consumer reaches equilibrium, where the budget
line is tangent to the indifference curve. When the indifference curve is elevated, the
satisfaction of the consumer is greater.

3.3.3. Revealed Preference Theory

American economist Paul Samuelson (1938) stated that consumer’s choice depends upon
their purchase under various conditions (income, price). It describes that if a consumer buys a
exact pack of goods, then that particular pack is “revealed preferred”, at stable earnings and
price, compared to any other pack hat he can buy. The seller can conclude a model of
consumer’s preference by varying price, income or both. The consumer prefers to purchase
second pack to first pack only when the first pack is unaffordable.

3.3.4. Hicks Demand Theory

Prof. JR. Hicks assumes “preference hypothesis as a principle which directs the behavior of
ideal consumer” .This assumption of behavior with respect to a scale of preferences is known
as “preference hypothesis”. The ideal consumer is the one who chooses one alternative which
he prefers the most, out of various alternatives available to him. In a specific market
condition, he always prefers to select the same item. His choice is consistent with different
market conditions. This is known as the preference hypothesis of an ideal consumer.
Hicks demand theory existed in value and capital was based on the preference hypothesis,
but he stated the degree of preference at one time in the form of a set of indifferent curves.
This method has different demerits and so it has been overcome by Revision of Hicks
Demand theory. “The demand theory which is based upon the preference hypothesis turns out
to be nothing else but an economic application of the logical theory of ordering.” (JR.Hicks ).
Sooner than developing the theory from the preference hypothesis , he describes the “logic of
order” . He draws out “difference between strong ordering and weak ordering and proceeds to
base his demand theory on weak-ordering form of preference hypothesis”.
Consumer’s surplus was renewed by Hicks in which he explained that “the appropriate
way to look at consumer’s surplus is to regard it as a mean of expressing in terms of money
income, the gain which accrues to the consumer as a result of all in price.”

3.3.5. Characteristics Demand Theory

Kelvin Lancaster (1966) developed this theory and stated in his paper “A New Approach to
Consumer Theory”. This theory lets us to expect how preferences will change when the
options given to the consumers by knowing how these differs with respect to the change in the

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features that make them. According to the conventional theory, the introduction of a new
option intended that we could not consistently calculate how this would fit into the
consumer’s preference list. On the other hand, depending on a study of the features rather than
depending upon the goods concerned, we can calculate how changes will affect a consumer’s
behaviour without the need to start it all over again. Thus the theory explains that the
consumers obtains utility from the features of the goods in the options given to them rather
than obtaining utility from the contents of the options.
This theory let us to estimate shadow prices for various characteristics without having a
price for the item itself by relating utility to the features that compose the item rather than the
item itself. With the help of these shadow prices, utility maximization problems can be
resolved. It also assists to validate the subsistence of brands. Presume if both brands have
similar features and are ideal competitors, then the consumer tend to select the option that will
maximize our entire consumption.

3.4. Social Model

Social approach is the study of relationships between macro variables (culture, society) and
micro (people behaviour,) variables. It mainly considers that the consumers behaviour
depends on his role and influence in the society. It also relays upon the people he is enclosed
by and the culture in which his society exists. The sociocultural environment that we entail
provides a vision that describes our relationship to ourselves, organisations, society, nature,
universe and culture. Social influences are the pressures caused from individuals, and groups.
Behaviorist Approach deals with the observable and measurable aspects of human behavior.
While the Economical factor is focusing towards the changes of buying pattern with respect to
money, the Psychoanalytic theory is focusing on the personality theory, in which individual
gets provoked more by unseen forces that are restricted by his/her conscious.

3.4.1. Social Factors

Social factors that have an effect on consumer buying choice can be classified as: Reference
groups- influence of reference groups over an individual. Family- behaving pattern is sturdily
influenced by family members. Sellers will try to target the one who can be effortlessly
influenced by their products. Roles and Status-each person posse’s variable roles and position
in the society. A working woman has two roles, one as officer and other as a mother.

3.4.2. Cultural Factors

Such as consumers culture, subculture and social class affects the consumer behaviour, and
hence buying behaviour varies from place to place. Thus sellers should analyse the various
cultural factors that prevail in that place. Each culture has various sub cultures such as
religion, nationalities, and geographical regions. Sellers may avail this group for market
segmentation. Each society has particular social class in which the people will have similar
buying patterns.

3.4.3. Personal Factors

Age and lifecycle have impending impact. Consumers change their buying needs according to
their age. Family life cycle includes various stages like youngsters, married couples, etc.,
which will help the sellers to produce suitable products for them. Occupation is also one of
the factor where the product is desired according to the job they perform. Economic situation
that is their level of income has a enormous influence. Lifestyle is the way a person lives in a
society. Personality is a factor which show a discrepancy from one self to another based on
time and place which may affect the consumers pattern for buying.

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3.4.4. Social Approaches To Consumer Behaviour

3.4.4.1. Value-added theory

Neil Smelser(1930) projected this theory also called social strain theory . It assumes that
significant conditions are needed for the improvement of social movement which is an
outcome of rapid social change. He projected that six factors are important for the collective
behaviour to evolve.
3.4.1.1Structural conduciveness: people must have opportunity to act in a certain problem.
Structural strain: society should have a number of strain due to the structure of the present
society.
Generalized belief: The problem should be clearly explained which can be effortlessly
understood by the people.
Precipitating factors: Factors that acts as an initiative to start an opportunity.
Enlistment for action: People should have a group or network to execute a united task.
Process of social control: It is not easy for the social activities to get processed due to the
reactions of the system.

3.4.5. Diderot Effect

This is a social event which is associated to consumer goods. This theory projected two
details. The first states that good bought by the consumer will be consistent to their
perspective and as a result it will be complementary to each other. The second states that the
purchase of new product will often lead to the purchase of another product which is known as
spiraling consumption (Grant McCracken, 1988).

3.4.6. Veblenian Social – Psychological Model

Thorstein Veblen explained that a person’s need is shaped and prejudiced by the traditions
and group in which they exist. He focused on “members of society‘s leisure class whom he
hypothesized were influenced by the desire for prestige rather than fulfilling the needs.” It
proposes the sellers to concentrate the social influences on consumer.

3.4.7. Nicosia Model

The model found by Francesco Nicosia in 1970s is a structural replica for decision making
process in buying a product, which is made by an individual or by a family. Preferences,
attitudes, and motivations are the three stages which shift the consumer in buying process.
Here the process is divided into four areas. First, information from the market influences the
consumers buying attitude. Second, consumer evaluates the information on the products and
selects the one which he gets satisfied with. Third, motivation of the individual induces him to
buy the product. Finally after he consumes the product, he gains new experience from which
he creates new preference. The sociological approaches to consumer behavior describes
consumption as a process in which the product is seen as a generator of cultural meaning. It
comprises of sociological ideas prevailing in the society.

3.5. Behavioural Model

Social and behavioural sciences are interconnected which studies behaviours. There are
significant differences between these two factors. Behavioural factors is stated as an
organized study of human beings through controlled systematic structure.

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 Approaches to Consumer Behaviour - A Review

3.5.1. Theory of Reasoned Action

Figure 1 Framework of Theory of Reasoned Action (Fishbein & Ajzen

Martin Fishbein and Icek Ajzen in the late 1960 proposed the theory of reasoned action
(also known as Fishbein model of consumer behaviour, theory of planned behaviour). Theory
states that consumers act on a behaviour,which is based on their motive to create or receive a
particular outcome which is described as his overall attitude. In this analysis, consumers are
considered as rational actors. Attitude of the customer leads to particular behavioural
intentions towards the product which in turn proceeds particular action. This theory suggests
three variables. Purchasers’ mind-set towards meticulous object (Ao). certainty that the thing
has specific attributes (Bi) subjective evaluation of that attributes (Ei) Symbolically, the above
mentioned variables can be presented in an equation (1) :Ao=∑i=1nBiEi

3.5.2. Engel, Kollet, Blackwell (EKB) Model

In 1968 by J.F. Engel, D.T. Kollat and R.D. Blackwell proposed the Engel Kollat Blackwell
Model of Consumer Behaviour. This theory states the consumer’s decision making process in
choosing the product. The main purpose of this theory is to scrutinize the awareness about
consumer behaviour. It consists of four stages. (Figure.2)

Figure 2 The Engel-Kollat-Blackwell Model of Consumer Behaviour

The first stage – INPUT- here the consumer collects the information about the products
through television, newspaper, pamphlets, online and gets a clear vision about the product.
Second stage- INFORMATION PROCESSING- here the consumer processes his collected
information about the product and compares that to experiences and expectations. Third stage-
DECISION PROCESS- in which the consumer makes a choice of buying the product. Final
stage- Variables that influencing the decision process - this stage deals with the internal
(motives, values, personality) and external factors (social and situational) that influences the
decision process.

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3.5.3. Howard-Sheth Model

Howard-Sheth model (1969) believed that the consumer has rational behaviour during
purchase. It consists of four main groups of variables: Input variables are the thrust arriving
from significant incentives (physical qualities and attributes of the products) symbolic
incentives (verbal or visual perceived through promotion messages, advertisements) and
social stimuli (social environment) Hypothetical constructs, which includes the psychological
aspects that have an effect on the consumer during the decision making process. They have
two different types. Perceptual (acquiring and dealing out information, consideration to
stimulus, sensitivity to communication, accessibility, blocking information, and intolerance)
and learning (buyer’s attitude, opinion, and appraisal after purchase).Output variables:
attention, comprehension, cognition, target and purchase behaviour are the output variables.
Attention is the possible information obtained after the consumer is open to the elements of
the input forms. Comprehension is the information held by the consumer. Cognition is the
process in which the consumer creates his attitude towards the product. Intention is the
decision to procure or not to acquire a product. Purchase behaviour is the buying pattern of
the consumer. External variables have a remarkable impact on the consumer’s decision
process. These variable comprise “value of purchase for the buyer, the character traits of the
consumer, membership of a social group, the financial status of a consumer, the pressure of
time.”

3.6. Psychoanalytic Model

Psychoanalysis was found by Sigmund Freud in 19th century. Psychoanalytic theory replicates
the fact that consumer behaviour is influenced by both conscious and the subconscious mind.
He held that humans are not able to realize their inspirations entirely because the factors that
concern their inspirations are basically unconscious which comprises of strong urges and
desires. It also defines that consumers react to symbolic concerns as much as they respond to
others like economics and function. Freud suggests that external factors like income age etc.,
completely cannot transform the consumer behaviour because internal factors like motivation
lays deep inside the mind. Emotional request is more efficient than logical appeal.

3.6.1. Psychological Factors

Perception, motivation, thinking and attitudes are the four major psychological factors that
have an effect on the purchasing behavior of consumers. Motivation: consumer behavior
relays on the level of motivation. Each human being has different requirements and the nature
of requirements differ from more to less urgent. Hence, a need becomes a motive when it is
more pressing. The motivational theories are dealt separately in the later part of this paper.
Perception: An information is opted, structured, and interpreted to give considerable
knowledge on it is known as perception. Thinking and Attitudes: A human being has definite
values and attitudes towards a choice of products which influences the brand and impinge on
the consumer behavior.

3.6.2. Psychoanalytic Approaches to Consumer Behaviour

3.6.2.1. Freudian Theory

Freud proposed that human personality consists of three systems the id, the super ego , and
the ego. The id is the fundamental psychological desire such as starvation, need for liquids
and sex in which the individual search for instantaneous fulfilment. The super ego is ones
internal expression of culture’s moral and principled system. Its function is to observe that a
person satisfies his needs that is acknowledged by the society. Ego is the individuals

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conscious control. It operates as an in-house supervisor that balances the spontaneous

demands of the id and the socio-cultural restriction of the superego.

3.6.2.2 .Neo- Freudian Theory

In addition to Freud’s theory, social connection plays a imperative function in the progress of
personality. Alfred Adler stated that “human beings always wants to achieve a variety of
realistic goals which he described as style of life”. Harry Stack Sullivan, and another Neo-
Freudian stated that, “people try to set up significant relationship with others

3.6.2.3. Trait Theory

It is an approach to the study of personalities of human being. Traits can be explained as the
habitual patterns of thought , emotion and behaviour.

3.6.2.3. Murray’s List Of Psychogenic Needs

In 1938 , the psychologist Henry Murray organised his needs into five groups : ambition,
materialistic, power, affection and information needs. Murray and Edward developed several
needs with respect to consumer behaviour. They are : achievement, exhibition, affiliation,
power, change and order.

3.6.2.4. Maslow’s Hierarchy of needs

Abraham Maslow, in 1943, proposed a theory of human motivation in which he develops five
level hierarchy of human needs (physiological needs, safety and security needs, social needs,
esteem needs, self-actualization) and ranked from lower level needs to higher level needs.
This theory states that an individual should satisfy should lower level of needs before they
satisfy the higher level of needs. when one lower need is satisfied , the individual is motivated
to fulfil the next level need.

3.6.2.5. A trio of Needs

The need of control, attachment, and accomplishment are the three needs that influences the
consumer motivation. The control need is an individual’s longing to have power over his
surroundings. The attachment need is analogous to social need in maslow’s theory. The
accomplishment need frequently consider personal accomplishments. This was proposed by
David Mcclelland in his ``achieving society`` 1961.

3.6.2.6. Hawkins Stern Impulse Buying

Hawkin stern believed in impulse behaviour rather than rational behaviour. Stern found four
categories of impulse buying. First the purely impulse purchases, like a chocolate at the
billing queue of a super market. Second, consumers make reminded impulse buys. Third are
suggested impulse purchases, like warranty for a product. Finally, consumers formulate
planned impulse decisions, where they only want to buy a product but they don’t know the
specifications of the product. This impulsive buying provides the seller to analyze the
impulsive thought of the consumer and increase the sales.

3.6.2.7. Social cognitive theory (SCT)

The theory formulates that an individual’s choice can be straightly linked to observing others.
It also explains that “when people study a model performing a action and the consequences of
that behavior, they bear in mind the progression of actions and use it to direct successive
behaviors”.

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3.6.2.8. Pavlovian Conditioning

Pavlov (1902) proposed a theory known as classical conditioning or pavlovian conditioning.
The theory states learning procedure associated between two stimuli.
The unconditioned stimulus (US) and unconditioned response (UR) : is a impetus that
acquires a response unconditionally whenever it occurs, without precedent practice or
knowledge. The response acquired from this conditioning is known as UN conditioned
response
The conditioned stimulus (CS) and the conditioned response (CR): conditioned stimulus
or impetus is an initial unbiased one that can draw a new response when it frequently
calculates a unconditioned stimulus. By integrating a neutral stimulus with a US, it becomes a
CS and provides a new response known as conditioned response. As an up gradation of his
theory, operant conditioning model was developed to elucidate the support behaviour of
consumers, which may be positive or negative.

3.6.2.9. AIDA Model

This model was formulated in 1925 by EK Strong which illustrates the impact of publicity
(advertising) on consumers. Recently this model is used to widen advertising practice. The
AIDA model presumes four reactions of the consumer: A (Attention) – draw interest of the
consumer I (interest) – provoke awareness on the product D (desire) - generate the craving to
have the product A (action) - set to acquire the product.
AIDA model is enhanced by adding two stages after the action stage to form AIDACS
model. The enhanced stages are C- Conviction: this stage makes the customer to trust that he
has made a exact judgment by buying the offered product. S- Satisfaction: satisfaction may
add to extra purchase or the satisfied customer may suggest the product to their acquaintances
and relatives (word of mouth marketing or whisper marketing).

3.7. Influence of`` E-Commerce`` on Consumer Behaviour

E-commerce is a custom of buying and selling stuffs over internet. Online business can be
measured as valid illustration of interacting marketing communication. The following figure
illustrates online buying process of a consumer.

Informatio Information Product

n shift procurem
recover ent
y
Figure 3 online buying process of a consumer)
Recovery of Information: The consumer browses the information concerning the product
and congregates information, evaluate the product and prices with other products, and gathers
information about services.
Shifting of information: The consumer registers and offers his product preference.
Procurement of the product: The consumer gives the payment details, addresses
information and places the order.

3.7.1. E- Commerce Factors That Influence the Consumer Behaviour

Value of the product: the most significant feature that induces the buyer to buy a product is
the quality. The seller needs to identify the exact kind of product that suits the current region
or occasion or society.

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 Approaches to Consumer Behaviour - A Review

Authentic information: The information provided at the site should be genuine, precise,
exact specification, which will let the consumer to buy easily and more reliably.
Free shipping: consumers online purchase decision is widely influenced by this factor.
Consumer tend to buy products which has free shipping since they are not ready to pay extra
amount apart from the product price
Easy return: Easy return policy will make the consumer feel more trust on the website and
the product he purchases. It helps them to buy a goods more freely because he can return or
exchange the product, if the product is damaged or not satisfactory while receiving.
Reviews: It is considered to be the best source to know the product from the costumers
who used them. People find it easy when they are going to buy a product with a review. Even
the sellers can improve their products from the suggestions. This review acts like a feedback.
Web retailer reputation: Consumers prefers trusted websites for their online transactions
to avoid perceived risk.
Satisfaction: Consumers tend to buy another product when he is satisfied with his
previous online purchase.
Web-shopping frequency: Online shopping index, online experience is the strongest indicator
of consumers desire to buy (Greenfield, 2000). Since frequent shoppers are more expected to
perform purchase.

4. CONCLUSIONS
The diverse nature of consumer behavior have paved way for significant models and theories.
It also defines the impact on various factors like socio economic behavioral and
psychoanalytic on consumer behavior. In the recent technological world it is also necessary to
study the behavioral aspects of consumers under e-commerce regime through latest
techniques and their vast applications. One among them is E-commerce which influences the
consumer to buy products. By studying these models and theories, it will be possible to
understand the buying pattern of the consumer to the maximum extent. When the consumer`s
behavior is studied by the business organization, it can win its consumers by producing
products according to their needs and desire and thereby it formulates appropriate marketing
strategies and policy prescriptions. Based on the theories, consumer behavior is a composite
and complex phenomena.
Against this back drop, it is inferred that consumer behavior is a composite and complex
phenomena. While some consumers are concerned with availing economic benefits from the
products, the others may aspire to acquire social status and psychological variables. The
increasing awareness of Corporate Social Responsibility (CSR) among the companies, no
doubt, moving towards the betterment of consumers. Hence it may be concluded that from
bullock cart to modern cars era, there has been a change in the behavior of consumers towards
the trend of business in tune with the needs and preferences. Also, it has been concluded that
no single theory is able to explain how exactly consumer behavior is .

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