Consumer Buying Behaviour

By

• Ojas Khadakkar P-05

• Dilip Sankalecha P-07
• Prashant Chhajed C-22
• Prashant Singh C-32
 Consumer decision making
Steps in consumer decision making model:-
1) Need recognition
2) search for information
3) Alternatives
4) Evaluation
5) Purchase
6) Post purchase evaluation
 MODELS
• There are three important models which
explain consumer decision making
 Howard-Sheth model of buying behavior
The Nicosia model.
 The Engel-Kollat-Blackwell (EKB) model.
 Subjected to…

A model a is simplified version of reality, it has never

been reality, it isn’t reality and it will never be reality
therefore all models are subject to criticism
(oh and if we are a bit postmortermed, we
could ask, what is reality)
Howard-Sheth model
• The Howard-Sheth model of buying behavior
attempts to explain the complexity of the
consumer decision making process in case of
incomplete information.

• This model suggests three levels of decision making

A) Extensive problem solving.
B) limited problem solving.
C) Habitual response behavior.
 Extensive problem solving
•At this level the consumer does not have any
basic information or knowledge about the brand
and he does not have any preferences for any
product.
•In this situation, the consumer will seek
information about all the different brands in the
market before purchasing.
 Limited problem solving
• This situation exists for consumers who have
little knowledge about the market, or partial
knowledge about what they want to purchase.

• In order to arrive at a brand preference some

comparative brand information is sought.
 Habitual response behavior.
• In this level the consumer knows very well about the
different brands and he can differentiate between
the different characteristics of each product.
• According to the Howard-Sheth model there are
four major sets of variables:
 Inputs.
 Perceptual and Learning Constructs
 Outputs
 Exogenous(External) variables
 INPUTS
These input variables consist of three distinct types of information
sources in the consumer’s environment.

 Significative:- Information furnishes physical brand characteristics

such as Quality,price,distinctive,service,availability.

 Symbolic:-verbal or visual product characteristics such as

Quality,price,distinctive,service,availability.

 Consumer’s social environment:- family, reference group, and

social class.
 Perceptual and Learning
Constructs

It deals with the psychological variables involved when the

consumer is making a decision.
• How the consumer receives and understands the information
from the inputs.
• Consumers goals, information about brands, criteria for
evaluation alternatives, preferences and buying intentions are
all included.
 Outputs

 The outputs are the results of the perceptual and learning

variables and how the consumers will response to these
variables .

 Purchase
 Intention
 Attitude
 Brand comprehension
 Attention
 Limitations
• Too many variables, a complex model that can
be difficult to read
• Variables in the model have not been clearly
defined
• Can this model be applied for non-branded
products
The Engel-Kollat-Blackwell Model
• The EKB model is comprehensive and shows
the components of decision making and the
relationships and interactions among them.
 Distinct components
• The five distinct parts
– Input
– Information processing
– Decision process
– Decision process variables
– External influences
 Input
• Input includes all kinds of stimuli from our
contact with the world around us:
– Personal Experiences.
– Marketer-controlled stimuli (e.g., advertising,
store display, demonstrations)
– Social Stimuli
– External search
 Information Processing
• Stimuli are processed into meaningful information
• Five steps of information processing:
– Exposure
– Attention
– Comprehension
– Acceptance
– Retention
 Decision Process
• It is triggered at any time during information
processing
• It consists of five steps:
– Problem recognition
– Search
– Alternative evaluation
– Choice
– Outcomes (post-purchase evaluation and behavior)
 Decision Process Variables
• Those individual qualities that make people/consumers
unique.
• Decision process variables include
– Motives
– Beliefs
– Attitudes
– Lifestyles
– Intentions
– Evaluation criteria
 External Variables
• Individual Characteristics
– Motives
– Personality
– Lifestyle etc

• Social influence
– Family
– Reference groups
– Social class

• Situational influence
 Limitations
• Too many variables, a complex model that can
be difficult to read
• Variables in the model have not been clearly
explained
• It is a mechanical overview of human
behaviour.
• Can this model be applied for non-branded
products? Goods? Services?