BUYER

BEHAVIOUR
UNIT - 5

PRESENTED BY

K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)
ASSISTANT PROFESSOR IN MANAGEMENT
 Unit – 5
Models of Consumer Behaviour – Modelling Behaviour, traditional
models, contemporary Models
Generic model of consumer behaviour,
Howard Sheth Model,
Engel, Blackwell,
Rao –Lilien model,
Consumerism
Models of Consumer Behaviour
Consumer behavior models are frameworks that attempt to explain and predict how consumers make decisions regarding the purchase, use,

and disposal of goods and services. These models incorporate various psychological, social, cultural, and economic factors that influence

consumer behavior. Here are some prominent models of consumer behavior:

1. The Economic Model: The economic model of consumer behavior assumes that consumers are rational decision-makers who seek to

maximize their utility or satisfaction from consuming goods and services.

 This model emphasizes factors such as price, income, and product quality in shaping consumer choices.

 Key concepts include utility maximization, consumer preferences, budget constraints, and the theory of demand.

2. The Psychological Model: The psychological model focuses on understanding the cognitive and emotional processes that drive

consumer behavior.
 This model incorporates concepts from psychology such as perception, learning, motivation, attitudes, beliefs, and personality traits.

 Key theories include the psychoanalytic theory, cognitive dissonance theory, and the theory of reasoned action.

3. The Sociocultural Model: The sociocultural model emphasizes the influence of social and cultural factors on consumer behavior.
 This model considers how social norms, reference groups, family dynamics, cultural values, and social class influence consumer

preferences, attitudes, and purchasing decisions.

 Key concepts include social influence, social identity, cultural dimensions, and subcultural differences.
4. The Behavioral Model: The behavioral model focuses on observable behaviors and responses to marketing stimuli.
 This model emphasizes the role of conditioning, reinforcement, and environmental cues in shaping consumer behavior.
 Key theories include classical conditioning, operant conditioning, and observational learning.

5. The Decision-Making Model: The decision-making model views consumer behavior as a rational, systematic process
involving several stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-
purchase evaluation.
This model considers factors such as information processing, decision heuristics, risk perception, and decision-making
biases.
Key frameworks include the consumer decision process model and the multi-attribute attitude model.
6.The Integrated Model: The integrated model seeks to combine elements from various perspectives to provide a
comprehensive understanding of consumer behavior.
This model recognizes the interplay between economic, psychological, sociocultural, and behavioral factors in shaping
consumer decisions.
Key frameworks include the Fishbein Model, the Theory of Planned Behavior, and the Howard-Sheth Model.
7. The Holistic Model: The holistic model considers consumer behavior within a
broader context, taking into account individual differences, environmental
influences, and situational factors.
This model emphasizes the dynamic and complex nature of consumer behavior,
recognizing that it is influenced by multiple interacting factors.
Key concepts include consumer lifestyles, values, needs, and experiences.
Modelling Behaviour
Modeling behavior involves constructing simplified representations or frameworks that describe and predict how individuals

or systems behave in various situations. These models can be used across different fields, including psychology, sociology,

economics, biology, and computer science. Here are some common approaches to modeling behavior:

1. Mathematical Models: Mathematical models use mathematical equations and formulas to describe and predict behavior.

These models often involve quantitative data analysis and statistical techniques.
 Examples include regression models, differential equations, game theory models, and mathematical optimization models.

2. Computational Models: Computational models simulate behavior using computer programs and algorithms. These models

can range from simple simulations to complex agent-based models and artificial intelligence systems.
 Examples include agent-based modeling, cellular automata, neural networks, and machine learning algorithms.

3. Psychological Models: Psychological models describe behavior based on principles from psychology, including cognitive

processes, motivation, learning, and emotion.

 Examples include cognitive-behavioral models, social learning theory, psychoanalytic theory, and personality trait models.
4. Social Network Models: Social network models analyze behavior in the context of social
interactions and networks. These models examine how individuals influence and are influenced
by their social connections.
Examples include network analysis, social influence models, and diffusion models.
5. Economic Models: Economic models describe behavior based on principles of economics,
including rational decision-making, incentives, utility maximization, and market dynamics.
Examples include supply and demand models, game theory, behavioral economics models, and
economic forecasting models.
6. Biological Models: Biological models explain behavior in terms of biological processes, such
as genetics, neurobiology, hormones, and evolutionary principles.
Examples include neurobiological models, evolutionary psychology, genetic algorithms, and
ethological models.
7. System Dynamics Models: System dynamics models describe behavior in complex systems by modeling feedback
loops, interdependencies, and dynamic relationships over time.
 Examples include causal loop diagrams, stock-and-flow models, and system dynamics simulation models.

8. Environmental Models: Environmental models analyze behavior in the context of environmental influences, such
as physical surroundings, climate, geography, and built environments.
 Examples include environmental impact assessments, ecological models, and urban planning models.

9. Cultural Models: Cultural models examine behavior within cultural contexts, considering cultural values, norms,
symbols, and rituals that shape individuals' attitudes and actions.
 Examples include cultural anthropology models, cross-cultural psychology, and cultural dimensions frameworks.

10. Interdisciplinary Models: Interdisciplinary models integrate insights from multiple disciplines to provide a
comprehensive understanding of behavior. These models often combine elements from psychology, sociology,
economics, biology, and other fields.
 Examples include integrated models of health behavior, decision-making models in business, and sustainability

models.
Traditional models
Traditional models in the context of behavior typically refer to foundational theories or frameworks that have been historically influential
in understanding human behavior. These models have laid the groundwork for subsequent research and theories in psychology, sociology,
economics, and related fields. Here are some examples of traditional models:
1. Psychoanalytic Theory (Sigmund Freud): Developed by Sigmund Freud, psychoanalytic theory emphasizes the role of unconscious
processes, conflicts, and childhood experiences in shaping behavior.
 Key concepts include the id, ego, and superego, defense mechanisms, psychosexual stages of development, and the interpretation of
dreams.
2. Behaviorism (John B. Watson, B.F. Skinner): Behaviorism focuses on observable behaviors and the environmental stimuli that shape
them, rather than internal mental processes.
 Key principles include classical conditioning (Pavlov), operant conditioning (Skinner), reinforcement, punishment, and stimulus-
response associations.
3. Cognitive-Behavioral Theory (Albert Ellis, Aaron Beck): Cognitive-behavioral theory integrates cognitive processes with behavioral
principles to explain human behavior.
 Key concepts include cognitive restructuring, irrational beliefs (Ellis), cognitive distortions (Beck), and the role of thoughts and beliefs
in influencing emotions and behavior.
4. Social Learning Theory (Albert Bandura): Social learning theory emphasizes the role of observational learning,

modeling, and vicarious reinforcement in shaping behavior.

 Key concepts include observational learning, self-efficacy, reciprocal determinism, and the importance of social context in

behavior change.

5. Trait Theory (Gordon Allport): Trait theory proposes that individuals possess stable personality traits that influence

behavior across different situations.

 Key concepts include personality traits, trait hierarchies, and the measurement of personality using trait assessments.

6. Humanistic Psychology (Abraham Maslow, Carl Rogers): Humanistic psychology focuses on the innate drive for self-

actualization and personal growth.

 Key concepts include Maslow's hierarchy of needs, self-concept, unconditional positive regard (Rogers), and the

importance of subjective experiences in understanding behavior.

7. Social Exchange Theory (George Homans, Peter Blau): Social exchange theory posits that individuals engage in social

interactions based on the exchange of rewards and costs.

 Key concepts include reciprocity, social rewards, equity, and the calculation of outcomes in social relationships.
8. Structural-Functionalism (Emile Durkheim, Talcott Parsons): Structural-functionalism examines
how social structures and institutions contribute to social stability and cohesion.
Key concepts include social roles, norms, values, social institutions, and the functional integration of
society.
9. Rational Choice Theory (Gary Becker): Rational choice theory assumes that individuals make
decisions by weighing the costs and benefits of different options and choosing the one that maximizes
their utility.
Key concepts include rational decision-making, utility maximization, opportunity costs, and the role of
preferences and constraints in decision-making.
10. Biopsychosocial Model (George Engel): The biopsychosocial model integrates biological,
psychological, and social factors to understand health and illness.
Key concepts include the interaction between biological, psychological, and social determinants of
health, and the importance of considering multiple levels of analysis in understanding behavior.
Contemporary models
Contemporary models in the study of behavior represent newer theoretical frameworks or approaches that have emerged in recent years to address

evolving research questions and challenges. These models often integrate interdisciplinary perspectives and incorporate advances in technology,

neuroscience, and social sciences. Here are some examples of contemporary models:

1. Ecological Systems Theory (Urie Bronfenbrenner): Ecological systems theory emphasizes the interconnectedness between individuals and

their social environments, viewing development as occurring within nested systems of influence.
 Key concepts include microsystem, mesosystem, exosystem, macrosystem, and chronosystem, which represent different levels of influence on

behavior.

2. Transactional Model of Stress and Coping (Richard Lazarus, Susan Folkman): The transactional model of stress and coping emphasizes the

dynamic interaction between individuals and their environment in the appraisal and management of stress.
 Key concepts include primary appraisal, secondary appraisal, coping strategies, and the role of cognitive processes in shaping stress responses.

3. Dual-Process Models of Decision Making (Daniel Kahneman, Amos Tversky): Dual-process models propose that decision making involves

two distinct cognitive systems: a fast, intuitive system (System 1) and a slower, more deliberative system (System 2).
 Key concepts include heuristics and biases, intuitive judgments, deliberative reasoning, and the interaction between automatic and controlled

processes.
4. Social Identity Theory (Henri Tajfel, John Turner): Social identity theory examines how individuals' self-concepts are

shaped by their membership in social groups and the processes of social categorization, identification, and comparison.
 Key concepts include ingroup bias, social categorization, social identity salience, and intergroup relations.

5. Embodied Cognition Theory: Embodied cognition theory suggests that cognitive processes are influenced by bodily

sensations, motor actions, and perceptual experiences.

 Key concepts include embodied metaphors, sensorimotor simulations, and the role of the body in shaping thought, language,

and decision making.

6. Evolutionary Psychology: Evolutionary psychology applies principles of evolutionary theory to understand human behavior,

emphasizing the adaptive functions of psychological traits and behaviors.

 Key concepts include mate selection, parental investment theory, evolutionary mismatch, and the evolution of social behavior.

7. Complex Systems Theory: Complex systems theory explores the behavior of complex adaptive systems, such as ecosystems,

economies, and social networks, using principles from mathematics, physics, and computer science.
 Key concepts include emergence, self-organization, feedback loops, nonlinear dynamics, and the study of system-level

properties.
8. Neurocognitive Models of Behavior: Neurocognitive models investigate the neural basis of
behavior, integrating insights from neuroscience, psychology, and cognitive science.
Key concepts include neural networks, brain regions, neurotransmitters, cognitive functions, and
the relationship between brain structure and behavior.
9. Social Constructionist Theory: Social constructionist theory examines how social phenomena,
including identities, meanings, and realities, are constructed through social interactions and discourse.
Key concepts include social construction of reality, linguistic determinism, symbolic interactionism,
and the role of power and language in shaping social reality.
10. Intersectionality Theory: Intersectionality theory explores how multiple social identities
intersect and interact to shape individuals' experiences of privilege, discrimination, and inequality.
Key concepts include intersecting axes of identity (such as race, gender, class, and sexuality), social
positionality, and the complexity of identity-based oppression and resistance.
Generic model of consumer behaviour
A generic model of consumer behavior is a simplified framework that outlines the basic process through which individuals make decisions

regarding the purchase, use, and disposal of goods and services. While specific models may vary in their complexity and emphasis on different

factors, they typically share common stages or components. Here's a generic model of consumer behavior:

1. Need Recognition: The consumer recognizes a need or desire for a product or service, triggered by internal factors (such as physiological

needs, emotions, or personal goals) or external stimuli (such as advertising, social influences, or situational cues).

2. Information Search: The consumer engages in information search to gather relevant information about available options, features, prices, and

brands.
 Information may be obtained through various sources, including personal experiences, word-of-mouth recommendations, online reviews,

advertising, and promotional materials.

3. Evaluation of Alternatives: The consumer evaluates different alternatives based on their perceived attributes, benefits, and drawbacks.
 Evaluation criteria may include price, quality, brand reputation, convenience, durability, and compatibility with personal preferences and needs.

4. Purchase Decision: The consumer makes a purchase decision by selecting the preferred alternative based on their evaluation of options.
 Factors influencing the purchase decision may include product availability, pricing, promotional offers, perceived value, and situational factors

(such as time constraints or urgency).

5. Purchase Act: The consumer completes the purchase transaction by acquiring the chosen product or
service through a preferred channel (such as a retail store, online platform, or direct sales).
The purchase act may involve payment, delivery, and any necessary post-purchase arrangements (such
as warranties or installation services).
6. Post-Purchase Evaluation: After the purchase, the consumer evaluates their satisfaction with the
product or service based on their actual experiences and outcomes.
Positive experiences may reinforce brand loyalty and lead to repeat purchases, while negative
experiences may result in dissatisfaction, complaints, or product returns.
7. Post-Purchase Behavior: Depending on the level of satisfaction or dissatisfaction, the consumer may
engage in post-purchase behaviors such as brand advocacy, word-of-mouth recommendations, brand
switching, or complaint behavior.
Post-purchase behavior can influence future purchase decisions and brand perceptions, as well as the
consumer's relationship with the brand or company.
Howard Sheth Model
 The Howard-Sheth Model, also known as the Howard-Sheth Theory of Buyer Behavior, is a comprehensive framework that seeks

to explain and predict consumer behavior.

 Developed by Jagdish N. Sheth and Howard R. Thoman in the 1960s, this model integrates economic, psychological, and social

factors to provide a holistic understanding of how consumers make purchase decisions.

The Howard-Sheth Model consists of several key components:

1. Inputs: Inputs represent the various factors that influence consumer behavior. These include both internal factors (such as

individual characteristics, perceptions, attitudes, and motivations) and external factors (such as social, cultural, economic, and

situational influences).

2. Perceptual and Learning Constructs: Perceptual and learning constructs refer to how consumers perceive and interpret

information about products or services. This includes their attention to stimuli, interpretation of product attributes, and learning from

past experiences and marketing communications.

3. Outputs: Outputs represent the outcomes of consumer behavior, including purchase decisions, brand choices, product evaluations,

and post-purchase behaviors. These outputs are influenced by the interaction between inputs, perceptual constructs, and decision-

making processes.
4. Decision-Making Processes: Decision-making processes describe how consumers evaluate alternatives and make
purchase decisions.
The Howard-Sheth Model identifies three key decision-making processes:
 Extensive Problem Solving: Consumers engage in extensive information search and evaluation when faced with a significant
purchase decision or a high level of perceived risk.
 Limited Problem Solving: Consumers use simplified decision-making strategies, such as heuristics or decision rules, when
making routine or moderately important purchase decisions.
 Routinized Response Behavior: Consumers make automatic, habitual purchase decisions based on brand loyalty, past
experiences, or minimal information processing.

5. Post-Decision Evaluation: After making a purchase decision, consumers engage in post-decision evaluation to assess
their satisfaction with the chosen product or service. This evaluation influences future purchase behavior, brand loyalty,
and word-of-mouth communication.
6. Moderating Variables: Moderating variables are factors that can influence the relationship between inputs, perceptual
constructs, decision-making processes, and outputs. These variables may include individual differences, situational factors,
Engel-Blackwell-Miniard (EBM) Model
 The Engel-Blackwell-Miniard (EBM) Model, proposed by Engel, Blackwell, and Miniard in the late 1970s, is a comprehensive framework

for understanding consumer behavior.

 It presents a structured approach to analyzing how consumers make decisions regarding the purchase and consumption of goods and services.
 The model integrates elements from various psychological and behavioral theories, including information processing, decision-making

processes, and environmental influences.

Here are the key components of the Engel-Blackwell-Miniard Model:
1. Information Processing Stages: The model identifies four sequential stages in the information processing of consumers: input, processing,
decision-making, and output.
a. Input Stage: Consumers are exposed to various sources of information, including marketing stimuli (such as advertisements, promotions, and product displays),
personal experiences, and external influences.
b. Processing Stage: Consumers engage in cognitive processes to interpret, analyze, and integrate the information received. This stage involves attention,
comprehension, encoding, and storage of information.
c. Decision-Making Stage: Consumers evaluate alternatives, form preferences, and make decisions based on their perceptions, attitudes, beliefs, and intentions.
This stage includes the evaluation of product attributes, brand comparisons, and consideration of situational factors.
d. Output Stage: Consumers act on their decisions by making purchases, engaging in consumption behaviors, and experiencing post-purchase outcomes. This stage
involves feedback loops that influence future decision-making and behavior.
2. Environmental Influences: The EBM Model recognizes the impact of external factors on consumer behavior, including

cultural, social, economic, and situational influences.

 Cultural influences encompass values, norms, beliefs, and traditions shared by a society or social group.

 Social influences include reference groups, family dynamics, social class, and peer influences that shape individual

attitudes and behavior.

 Economic influences relate to factors such as income levels, purchasing power, price sensitivity, and economic conditions

that affect consumer choices.

 Situational influences refer to temporary factors such as time constraints, location, mood, and context that impact

decision-making.

3. Consumer Decision-Making Processes: The model identifies several decision-making processes that consumers may

employ depending on the complexity of the purchase decision:

a. Routine Response Behavior: Habitual or automatic decision-making based on established preferences and low involvement.

b. Limited Problem Solving: Moderate involvement decision-making characterized by limited information search and evaluation of a few alternatives.

c. Extensive Problem Solving: High involvement decision-making involving thorough information search, extensive evaluation of alternatives, and significant
4. Factors Influencing Information Processing: The EBM Model recognizes
individual differences, psychological factors, and cognitive biases that influence
how consumers process information and make decisions.
• Individual differences include demographics, personality traits, values, and lifestyle
factors that shape consumer preferences and behavior.
• Psychological factors encompass perceptions, attitudes, motivations, and emotions that
influence information processing and decision-making.
• Cognitive biases such as confirmation bias, anchoring bias, and availability heuristic may
affect how consumers perceive, interpret, and evaluate information.
Rao –Lilien model
 The Rao-Lilien model, also known as the Rao-Lilien-Prasad (RLP) model, is a marketing framework

proposed by Venkatesh Shankar Rao, Gary Lilien, and A. Prasad in the early 1980s.
 This model focuses on customer purchase behavior in the context of industrial markets and aims to

provide insights into the decision-making processes of organizational buyers.

Here's an overview of the key components of the Rao-Lilien model:
1. Input Variables: The model begins with input variables, which represent the initial factors that
influence the purchase decision-making process.
 These input variables include both internal and external factors that impact the decision-making

environment.
a. Internal factors may include the organization's goals, objectives, budget constraints, and purchasing policies.
b. External factors encompass market conditions, competitive dynamics, technological advancements, regulatory factors, and
2. Environmental Variables: Environmental variables refer to the broader market context
within which the purchase decision takes place.
These variables may include industry-specific conditions, market demand, supply chain
dynamics, and competitive forces.
Understanding the external environment is crucial for assessing market opportunities,
identifying potential threats, and adapting purchasing strategies accordingly.
3. Decision Variables: Decision variables represent the specific aspects of the purchase decision
that organizational buyers consider when evaluating alternatives and making choices.
These variables may include product attributes, pricing strategies, supplier capabilities,
delivery terms, and service quality.
Decision variables reflect the criteria that organizations use to assess the value proposition
offered by different suppliers and solutions.
4. Decision-Making Process: The Rao-Lilien model delineates the decision-making process into several stages, mirroring the sequential steps that

organizational buyers typically follow when making purchasing decisions.

 These stages may include problem recognition, information search, alternative evaluation, supplier selection, negotiation, and post-purchase evaluation.

 The decision-making process may vary in complexity depending on factors such as the nature of the purchase, the level of organizational involvement,

and the perceived risk associated with the decision.

5. Output Variables: Output variables represent the outcomes of the decision-making process, including the selection of a supplier, the terms of the

purchase agreement, and the subsequent performance of the supplier relationship.

 These outcomes may include factors such as customer satisfaction, supplier performance, cost savings, operational efficiency, and strategic alignment

with organizational objectives.

 The success of the purchasing decision is evaluated based on the extent to which the chosen supplier meets the organization's needs and contributes to

its overall performance.

6. Feedback Loop: The Rao-Lilien model incorporates a feedback loop mechanism, which allows organizations to learn from past purchasing experiences

and adjust their decision-making processes accordingly.

 Feedback may be obtained through post-purchase evaluations, supplier performance assessments, customer feedback mechanisms, and benchmarking

against industry best practices.

 By continuously monitoring and evaluating purchasing outcomes, organizations can identify areas for improvement, refine their purchasing strategies,

and enhance their competitive advantage in the marketplace.

Consumerism
 Consumerism refers to a socio-economic ideology and movement that emphasizes the protection and promotion of consumers'
rights and interests in relation to goods and services offered by businesses and corporations.
 It involves advocating for fair treatment, transparency, and accountability from producers, sellers, and service providers.
 Consumerism encompasses various aspects, including consumer rights, consumer protection laws, ethical consumption,
sustainable practices, and awareness campaigns.
Key features and components of consumerism include:
1. Consumer Rights: Consumerism advocates for the recognition and protection of fundamental consumer rights, such as the
right to safety, the right to information, the right to choose, the right to be heard, and the right to redress.
2. Consumer Protection Laws: Consumerism aims to establish and enforce legal frameworks that safeguard consumers against
unfair, deceptive, or fraudulent practices in the marketplace.
 Consumer protection laws may cover areas such as product safety standards, labeling requirements, advertising regulations,
warranties, and dispute resolution mechanisms.
3. Ethical Consumption: Consumerism encourages consumers to make informed and ethical choices in their purchasing
decisions, considering factors such as environmental sustainability, labor conditions, fair trade practices, animal welfare, and
social responsibility.
4. Empowerment and Education: Consumerism seeks to empower consumers by providing them with
information, resources, and tools to make informed decisions, assert their rights, and advocate for change.
 Consumer education initiatives raise awareness about consumer issues, promote financial literacy, and enhance
consumer skills and knowledge.
5. Corporate Accountability: Consumerism holds businesses accountable for their actions and practices,
advocating for corporate transparency, integrity, and accountability.
 This includes promoting responsible business practices, ethical corporate governance, and corporate social
responsibility (CSR) initiatives.
6. Advocacy and Activism: Consumerism involves advocacy efforts and grassroots movements aimed at
promoting consumer interests, influencing public policy, and driving social change.
 Consumer organizations, watchdog groups, and activists campaign for legislative reforms, regulatory
enforcement, and corporate accountability.
7. Environmental and Social Justice: Consumerism intersects with broader social and
environmental justice movements, addressing issues such as climate change, resource
depletion, pollution, inequality, and exploitation.
Sustainable consumption practices and ethical purchasing decisions are integral to promoting
environmental sustainability and social equity.
8. Globalization and Digital Consumerism: Consumerism has been shaped by globalization
and digital technologies, which have transformed the nature of consumer behavior, market
dynamics, and the exchange of goods and information on a global scale.
Digital consumerism encompasses online shopping, e-commerce platforms, social media
influence, data privacy concerns, and cybersecurity issues.