Consumer Behaviour

MODELS
 Model
• A model can be defined as a simplified
representation of reality, incorporating only those
significant aspects of reality that interest the
model-builder.
• Consumer-behaviour as body of knowledge is an
applied field and an interdisciplinary borrowing
from the subjects such as Psychology, Sociology,
Economic, Social Anthropology, etc. to furnish a
body of knowledge about the consumer.
• Some of the variables that influence
consumers like personality and attitudes
are internal to the consumer, whereas
others such as the economic climate and
reference groups are external.
• In some cases, the marketers identify the
variables but the exact nature and
strength of their causation may not be
clear to them.
 THE ECONOMIC MODEL
• Customer is considered as the
rational creature who consciously
bases his buying behaviour primarily
on economic considerations.
• Consumer follows the principles of
utility maximization in order to
maximize his satisfaction.
Given a set of needs, tastes
and income data, the
economic model seeks to
predict how the consumer will
allocate his money over
available set of products with
given prices
 The economic model suggests useful
behavioural hypothesis
• (a) Lower the price of the product, higher will
be its sales.
• (b) Lower the price of its substitutes, lower
will be the sales of this product.
• (c) Higher the income, higher will be the sales
of this product, provided it is not an inferior
good.
• (d) Higher the promotional expenditure,
higher will be the sales.
 THE PSYCHOLOGICAL MODEL:
(The Pavlovian Learning Model)
• This model suggests that human
behaviour is based on some
central concepts - the drives,
stimuli, cues, responses and
reinforcements which determine
the human needs and need-
satisfying behaviour.
• A drive is a strong internal stimulus, which
compels action.
• Stimuli are inputs, which are capable of arousing
drives or motives. The way a person responds to
a given stimulus would depend upon the
configuration of cues.
• Cues are signs or signals which act as stimulus to
a particular drive.
• The way an individual reacts to the stimuli is
known as his response.
• The favourable experience with the product
increases the probability that the responses
would be repeated the next time the need
stimulus arises (reinforcement).
 THE PSYCHO-ANALYTIC MODEL
• This model tries to overcome a major limitation of
the above stimulus-response model by incorporating
certain intervening variables like perception, the
family and social environment
• The model suggests that human needs operate at
various levels of consciousness. The behaviour of the
individual is never simplistic. The motivations that
underlie it are not apparent to the casual observer of
overt behaviour or even to the person himself.
The most important marketing implication of
the model is that since buyer's needs operate
at several levels of consciousness, he is
concerned not only with the functional aspect
of the product, the symbolic aspect may also
hold substantial meaning for him and
motivates him to a buying decision. He may,
therefore, respond to a stimulus, both his
conscious and subconscious, since his
behaviour is the product of both. This has
important implications for the advertising
function and the product planning function.
 THE COGNITIVE THEORY
• Theory of Cognitive Dissonance hypothesized
1. The existence of dissonance (a state of
imbalance in the cognitive structure) is
psychologically uncomfortable and will lead the
person to reduce dissonance and achieve
consonance (i.e, balance).
2. Whenever dissonance exists, the person,
in addition to trying to reduce it will also actively
try to avoid situations and information, which
add to dissonance.
When several alternatives confront the buyer in
his choice decision, he is likely to experience
some anxiety, which becomes more insistent
once a commitment to purchase has been made.
As advertisements and word of mouth
information highlighting the qualities of the
rejected alternatives are perceived and received,
he may experience some doubts about the
rationality of his decision. The product itself may
not live up to his expectation and thus adding to
the already existing anxiety it will give rise to
what is called post-purchase dissonance.
The buyer in this situation will try to reassure
himself by seeking information to support his
choice; and also by avoiding sources of
information which would reduce his buying
confidence. He may, in addition, collect
information which projects the rejected
alternatives in the disadvantageous light. Being
selective in his perception, therefore, the buyer
may select the information supporting or
favourable to his choice and avoid or distort
unpleasant information.
The marketing implication of this theory lies
in the fact that since dissonance and
reassurance motivate buyer action, the
effort to dispel dissonance should be
embedded in the product-package, in its
advertising and word-of-mouth publicity as
also in its after-sales services. The
advertising and promotion function should
be enlarged to include the "reassurance"
aspect to lead support to the buyer's
choice-decision.
 SOCIOLOGICAL MODEL
• The sociological model postulates that
man's needs and behaviour are largely
dependent upon and shaped by the
social groups and forces. People tend to
take the cue for their needs and wants
and how to fulfil them from culture, sub-
cultures, social class reference groups
and family.
• Individuals are members of various
social groups and they tend, under
normal circumstances, "to confirm
the largely unwritten but
nevertheless powerful behavioural
standards or norms of these social
groups". Sometimes they emulate
the behavioural norms of higher
status groups to which they aspire to
belong.
DECISION PROCESS MODELS/
CONTEMPORARY MODELS
• They placed emphasis on the
mental activity that occurs
before, during and after,
purchases are made.
• Attention is on the process by
which the consumer actually
arrives at a purchase decision.
 Nicosia Model

The model tries to establish the

linkages between a firm and its
consumer - how the activities of
the firm influence the consumer
and result in his decision to buy.
The messages from the firm first influence the
predisposition of the consumer towards the
product.
Depending on the situation, he develops a certain
attitude towards the product. It may lead to a
search for the product or an evaluation of the
product.
If these steps have a positive impact on him, it may
result in a decision to buy.
This is the sum and
substance of the 'activity explanation' in the
Nicosia model.
 HOWARD-SHETH MODEL
• The model is essentially an attempt to
explain brand choice behaviour over time
and pertinent to our field. Focusing on
repeated buying, the model relies on
four major components:
(1) Stimulus inputs, (2) hypothetical
constructs, (3) response outputs and (4)
exogenous variables
Input variables - they consist of
informational cues about the attributes of a
product or brand. These informational cues
may emanate from the product itself or they
may be symbolic in that they come from
impersonal source like advertising or
promotional activities by the firm. A third
set of informational cues may come from
the buyer's social environment, comprising
of his family, reference groups, social class,
culture, etc.
Hypothetical constructs - these constructs have been
classified into two: (1) the perceptual constructs and
(2) the learning constructs.
The former deal with the way individual perceives and
responds to the information from the input variables.
The learning constructs deal with the stages
from the buyer motives to his satisfaction in a buying
situation.
As a feedback component of learning, the model
includes another learning construct - satisfaction
which refers to the post- purchase evaluation and
resultant reinforcing of brand comprehension,
attitudes, etc.
The output variables consist of a set of
possible hierarchical responses from
attention to purchase. The purchase act is
the actual, overt act of buying and is the
sequential result of the attention (buyer's
total response to informational intake), the
brand comprehension (a statement of
buyer-knowledge in the product class),
brand attitude (referring to the evaluation
of satisfying potential of the brand) and the
buyer intention.
 ENGEL, KOLLAT AND BLACKWELL
MODEL
“Many processes intervene and
mediate between exposure to stimuli
and final outcome of behaviour".
Consequently many factors affect the
outcome, "making the composite
behaviour picture a multifaceted
one".
• Central focus of model is on 5 basic
decision process stage:-
a)Problem Recognition
b)Search
c)Evaluation of Alternative
d)Purchase
e)Outcome
• Information from • The information
Marketing & non- processing sect.
marketing sources of model consists
are fed into of consumer
information exposure,
processing section attention,
of model. It has comprehension/
little influence at perception
the problem yielding
recognition stage of acceptance &
decision making retention
process.
 The individual & environmental
variables influence all 5 stages of
decision process.
• Individual characteristic include-
motive, value, lifestyle & personality
• Social influence are culture,
reference group & family
• Situation influence includes
consumers’ financial condition