Unit 2

MODELS OF CONSUMER BEHAVIOUR

Models of Consumer Behaviour: Input-Process-Output Model,
Nicosia Model, Howard Sheth Model, Engel Kollat-Blackwell Models
of Consumer Behaviour, Internal Influences, External Influences.
Consumer Decision Making: Consumer Buying Decision Process,
Levels of Consumer Decision Making – Four views of consumer
decision making. On-line Decision Making: Meaning &
Process/Stages. Situational Influences- Nature of Situational
Influence, Situational Characteristics and consumption behaviour.
A Model of Consumer Decision
Making

INPUT

PROCESS

OUTPUT
 INPUT PROCESS OUTPUT MODEL
External Influences
Sociocultural Environment
Firm’s Marketing Efforts
1. Family
Input 1. Product
2. Informal sources
2. Promotion
3. Other noncommercial sources
3. Price
4. Social class
4. Channels of distribution
5. Subculture and culture
Consumer Decision Making
Psychological Field
1. Motivation
Need Recognition 2. Perception
3. Learning
Process Pre purchase Search 4. Personality
5. Attitudes
Evaluation of Alternatives
Experience

Post decision Behavior

Output Purchase
1. Trial Postpurchase Evaluation
2. Repeat purchase
Three Stages of Consumer Decision
Making

Need Recognition
Prepurchase Search
Evaluation of Alternatives
 The realization by the
Need consumer that there is a
Recognition difference between “what is”
and “what should be.”
 A stage in the consumer
decision-making process in
which the consumer
Prepurchase perceives a need and
Search actively seeks out
information concerning
products that will help
satisfy that need.
 A stage in the consumer
decision-making process in
Evaluation of which the consumer
Alternatives appraises the benefits to be
derived from each of the
product alternatives being
considered.
 Post decision Behavior

Purchase
1. Trial
2. Repeat purchase

Postpurchase Evaluation
NICOSIA MODEL OF CONSUMER
BEHAVIOUR(1966)
NICOSIA MODEL:

Francesco Nicosia presented his model in flow

chart format.
All variables are viewed as interacting , with
none being inherently dependent or
independent.
Thus the model describes a circular flow of
influences where each component provides
input to the next.
The model contains four major components:

1.Firm’s attributes, communications and

consumer’s psychological attributes
2.Consumer’s search for evaluation of
alternatives
3.Consumer’s motivated act of purchase
4.Consumer storage or use of the product
Nicosia Model
Nicosia Model
Nicosia Model
Nicosia Model
The Howard Sheth Model(1977)

John Howard Jagadish Sheth

 The Howard Sheth Model

Proposed by John Howard & Jagadish Sheth.

The Howard Sheth theory of buyer behaviour is a

sophisticated integration of the various social, psychological
and marketing influences on consumer choice into a
coherent sequence of information processing.

It aims not only to explain consumer behaviour in terms of

cognitive functioning but to provide an empirically testable
depiction of such behaviour and its outcomes (John
Howard 1977).
 Howard Sheth Model

The model relies on four major

components

Stimulus inputs,
Hypothetical constructs,
Response outputs
Exogenous variables.
Howard Sheth Model
Inputs Variable
 Significative stimuli – Price, Quality
and availability.
 Symbolic stimuli – Verbal and
Visual traits
 Social stimuli – family, reference
group
 Hypothetical Constructs

Hypothetical constructs have

been classified in two groups –

1.Perceptual Construct
2.Learning Construct
 Perceptual constructs

It deals with the way the individual perceives and

responds to the information from the input variables,
accounting for stimulus ambiguity and perceptual bias

All the information that is received may not merit

`attention' and the intake is subject to perceived
uncertainty and lack of meaningfulness of information
received (stimulus ambiguity).

This ambiguity may lead to an overt search for

information about the product.
 Learning constructs.

Learning constructs deals with the stages from the buyer

motives to his satisfaction in a buying situation.

The purchase intention is an outcome of the interplay of

buyer motives, choice criteria, brand comprehension,
resultant brand attitude and the confidence associated with
the purchase decision.
 Output Variables

Purchase – overt act of purchasing

Intention- a verbal statement made in the light of the
above externalizing factors that the preferred brand
will be bought the next time the buying is
necessitated.

Brand Attitude & Brand comprehension- evaluation

of satisfying potential of the brand
Attention -buyers total response to information intake
 Exogenous Variables

The model also includes some exogenous variables which

are not defined but are taken as constant.
These influence all or some of the constructs explained
above and through them, the output.

Some exogenous variables:

Importance of the purchase,
Time at the disposal of the buyer,
Personality traits,
Financial status etc.
The Engel Kollat Blackwell
Model
(EKB-Model)
 INTRODUCTION

The Engel-Kollat-Blackwell model is essentially a

conscious problem solving and learning model of
consumer behaviour.
This model has a good description of active
information seeking and evaluation processes of
consumer .
The EKB model is a comprehensive and shows the
components of decision making and the relationship and
interaction among them.
The distinctive parts of EKB Model are
1. Consumer decision making are input,
2. Information processing,
3. Decision process
4. Decisional variables
5. External influences.
 INFORMATION INPUT

Input includes all kinds of stimuli from our contact with

the world around us:
Our experiences, contact with others
Marketer-controlled stimuli
(e.g., advertising, store display,
demonstrations)
Other stimuli (e.g., personal recollections,
conversations with friends)
External search
INFORMATION PROCESSING

Stimuli are processed into meaningful information

Three methods of information processing:

Exposure
Attention
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
Evaluative criteria
Normative compliance and informational
influence
Other aspects of self
 EXTERNAL INFLUENCES

Consumers are influenced

by environmental factors
like culture, sub-culture ,
social class, reference
groups, family and
situation
Consumer Decision Making
Consumer Decision Making

Process by which consumer identify

their needs, collect information,
evaluate alternatives and make
purchase decision.

These actions are determined by

psychological and economical factors,
and are influenced by environmental
factors such as culture, group, and social
values.
Levels of consumer decision
making

Extensive Problem Solving

Limited problem Solving

Routinized Response
Behaviour
 Consumer Involvement

Routine Limited Decision Extensive Decision

making making
Response

Behaviour
Less Involvement High Involvement
Routine Response Behaviour
Little
involvement in selection
process
May stick with one brand
Quick Decision
Frequently purchase low cost goods
Examples are soap , shampoo etc
Limited Decision Making
Moderate involvement in
selection process
Purchasing process is shorter
Evaluation of few alternative
brands
Examples are clothing, cosmetics
Extensive Decision Making
High level of involvement
High cost goods
Long time to decide
Evaluation of many brands
Examples are buying a car or
a
compute
r
Four Views of Consumer Decision Making

 An Economic View

 A Passive View

 A Cognitive View

 An Emotional View
Four Views of Consumer Decision Making

The Economic view Rational Customers

Have To …
 Be aware of all available product
alternatives
 Be capable of correctly ranking each
alternative in terms of its benefits and
disadvantages
Four Views of Consumer Decision Making

 A Passive View
The opposite of economic view is the
view that consumers as passive, basically
submissive to the self-serving and
promotional efforts of marketers.
Four Views of Consumer Decision Making

 A Cognitive View
This view portrays the consumer as a
thinking problem solver. Risk is the key
component the problem solver tries to
dispel the risk associated with many
product choices.
Four Views of Consumer Decision Making

 An Emotional View
Consumers may associate deep feelings or
emotions (fun, fear, love, prestige, hope,
sexiness, fantasy or a bit of magic).
Consumers buy clothes not because they
look better but they feel better. Advertisers
are recognising the renewed importance of
emotional advertising
 Consumer decision making
process
Evaluation of
Need of Recognition Information Search
Alternatives

Post-Purchase
Purchase Decision
Behaviour
Need of Recognition: Result of an imbalance
between actual and desired states. E.g
feeling bored is actual state and Listen
music/call a friend is desired state.
Information Search: Recall information in
memory called as internal search. Seek
information in outside environment like web,
books, articles.
Evaluation of alternatives: Consumer use
several attributes when they are evaluating
alternative products and they are more
interested in a specific attributes. Ex. Price,
Quality, availability, service.
Purchase decision: To “Buy” or “not to buy”.
Determine which attributes are most important
in influencing Consumer’s choice.
Post – Purchase Behaviour
The purchasing process does not end when
consumer buys a product. After the
purchase consumer tend to evaluate their
experience to decide whether they
‘satisfied’ or ‘dissatisfied’.
The information will be used in decision
making.
The performance of the product or services
will be compare with consumer’s
expectations. a) Perceived performance
meeting expectations.
b) Perceived performance exceeds
expectations