CONSUMER BEHAVIOUR MODELS

Facilitator- Deepti Verma

Consumer behaviour Models
 1. Economic Model
 2. Psychological Model or Pavlovian Model
 3. Psychoanlytic Model
 4. Input, Process Output Model—Gandhi: Philip Kotler
 5. Sociological Model
 6. Howarth Sheth Model
 7. Engel-Blackwell-Kollat Model
 8. Model of Family Decision-making
 9. Nicosia Model
 10. A Model of Industrial Buying Behaviour.
1. ECONOMIC MODEL
 In this model, consumers follow the principle of maximum utility based
on the law of diminishing marginal utility. The consumer wants to spend
the minimum amount for maximising his gains.
 Economic man model is based on:
Price effect: Lesser the price of the product, more will be the quantity
purchased.
Substitution effect: Lesser the price of the substitute product, lesser will
be the utility of the original product bought.
Income effect: When more income is earned, or more money is
available, more will be the quantity purchased.
 This model, according to behavioural scientists, is not complete as it
assumes the homogeneity of the market, similarity of buyer behaviour
and concentrates only on the product or price. It ignores all the other
aspects such as perception, motivation, learning, attitudes, personality
and socio-cultural factors.
 2. The Psychological model
 The psychological model, also called the Learning Model or the Pavlovian
Learning Model, was proposed by classical psychologists led by Pavlov.
According to this model, consumption behavior and decision making is a function of
interactions between human needs and drives, stimuli and cues, responses and
reinforcements.
 People have needs and wants; They are driven towards products and services (stimuli
and cues), which they purchase (response), and they expect a satisfying experience
(rewards and reinforcements); Repeat behavior would depend on reinforcement
received.
 The model believes that behavior is deeply affected by the learning experiences of the
buyers; and learning is a product of information search, information processing,
reasoning and perception. Reinforcement leads to a habit formation and the decision
process for an individual becomes routinized, leading to brand loyalty. Consumers
also learn through trial and error and resultant experiences that get stored in our
memory.
 The limitations of studying consumer behavior with this approach is that the model
seems incomplete. Learning is not the only determinant in the buying process and the
decision making. The model totally ignores the role played by (a) other individual
determinants like perception, personality (the sub-conscious), attitudes; as well as (b)
interpersonal and group influences.
 3. Psychoanalytic model
 The psychoanalytic model was proposed by Sigmund Freud. The model
tries to explain consumer behavior as a resultant of forces that
operate at subconscious level. The individual consumer has a set of deep
seated motives which drive him towards certain buying decisions.

 According to the model, buyers needs and desires operate at several

levels of consciousness. Not all of the behavior is understandable and
explainable by the person. Also not all of human behavior is overtly
visible and explainable. Sometimes, the behavior may not be realized and
understood by the person himself. Such causes can be understood by
drawing inferences from observation and casual probing.

 There have been two more contributions that have been made to the
psychoanalytic approach, these are:-
 Psychoanalytic model contd.
a) Gestalt model: The model based on Gestalt principles (meaning
“patterns and configuration”) lays emphasis on the perceptual processes
that impact buying behavior. According to this model, consumption
behavior and decision making is based on how a consumer
perceives a stimuli ( the product and the service offering and the 4
Ps) viz a viz. the external environment and his own prior
experiences.

b) Cognitive theory: The model proposed by Leon Festinger, views the

consumer as one who faces a feeling of anxiety (dissonance), while
he is making a purchase; this is because he is faced with many
alternatives, all of which seem desirable. Post-purchase, this
dissonance increases even further. There is an imbalance in the
cognitive structure; and the consumer tries to get out of this state as
soon as he can. So a buyer gathers information that supports his
choice and avoids information that goes against it.
4.Input Process output model
 This is a simple model of consumer behavior, in which the input for
the customer is the firm’s marketing effort (the product, price,
promotion and place) and the social environment. The social
environment consists of the family, reference groups, culture, social
class, etc. which influences the decision-making process. Both these
factors together constitute the input in the mind of the consumer.

 Need recognition
 Product awareness
 Evaluation
 Intention
 Post-purchase behavior
The above figure shows three stages in terms of stimuli, buyer’s black box and
buyer’ response. The consumer gets the input from the marketing effort of the
firm (4 Ps) and the other stimuli. This input is processed in the mind (Black
Box), which constitutes the characteristics of the buyer and the process of
decision-making. Once the buyer has decided to buy then, he responds in
terms of his choice of product, brand, dealer, timing and amount.
5. Sociological model
 The model is based on findings of Thorstien Veblen, and focuses
on the role played by social groups and social forces.

 A person’s consumption pattern and buying behavior is affected

by social factors; his family, friends, peers, social groups,
reference group and culture have a major role to play.

 According to the model, man is perceived as a “social animal”,

and thus he conforms to norms of its culture, sub culture and
groups amongst which he operates. Emulative factors and social
influences have a big role to play in consumer decision making.
6. HOWARTHSHETH MODEL
This model is slightly complicated and shows that
consumer behavior is complex process and concepts of
learning, perception and attitudes influence consumer
behavior.

This model of decision-making is applicable to

individuals. It has four sets of variables which are:
•Input
•Perceptual and learning constructs
•Outputs
•Exogenous or external variables.
 Input
Some inputs are necessary for the customer for making decisions:
These inputs are provided by three types of stimuli as shown in Fig:

•Significant stimuli: These are physical tangible characteristics of the

product. These are price, quality, distinctiveness, services rendered and
availability of the product. These are essential for making decisions.

•Symbolic stimuli: These are the same as significative characteristics, but

they include the perception of the individual, i.e., price is high or low. Quality
is up to the mark or below average. How is it different from the other
products, what services can the product render and, what is the position of
after sales service and how quickly or easily is the product available and,
from where.

•Social stimuli: This is the stimulus provided by family, friends, social

groups, and social class. This is important, as one lives in society and for the
approval and appreciation of the society, buying habits have to be governed.
 Perceptual and learning constructs
➢These constructs are psychological variables, e.g., motives, attitudes,
perception which influence the consumer decision process.

➢The consumer receives the stimuli and interprets it. Two factors that
influence his interpretation are stimulus-ambiguity and perpetual bias.

•Stimulus ambiguity occurs when the consumer cannot interpret or

fully understand the meaning of the stimuli he has received, and
does not know how to respond.
•Perceptual bias occurs when an individual distorts the information
according to his needs and experiences.

➢These two factors influence the individual for the comprehension's

and rating of the brand. If the brand is rated high, he develops
confidence in it and finally purchases it.
 Output
By output we mean the purchase decision. After purchase there is
satisfaction or dissatisfaction.
•Satisfaction leads to positive attitude and increases brand comprehension.
•With dissatisfaction, a negative attitude is developed. The feedback shown
by the dotted line and the solid lines shows the flow of information.

Exogenous or external variables

These are not shown in the model, and do not directly influence the
decision process. They influence the consumer indirectly and vary from
one consumer to another. These are the individual’s own personality
traits, social class, importance of purchase and financial status.

All the four factors discussed above are dependent on each other and
influence the decision-making process. The model though complicated,
deals with the purchase behavior in an exhaustive manner.
7. ENGEL-BLACKWELL-KOLLAT MODEL

Engel kollat blackwell model consists of four components:

•Information processing

•Central control unit

•Decision process

•Environmental influences.
Information processing
A shown in the diagram the information processing consists of exposure,
attention, comprehension and retention of the marketing and non-
marketing stimuli. For successful sales, the consumer must be properly and
repeatedly exposed to the message. His attention should be drawn, such
that he understands what is to be conveyed and retains it in his mind.

Central control unit

The stimuli processes and interprets the information received by an individual.
This is done by the help of four psychological factors
.
•Stores information and past experience about the product, which serves as a
standard for comparing other products and brands.
•Evaluative criteria which could be different for different individuals.
•Attitudes or the state of mind which changes from time to time, and helps in
choosing the product.
•The personality of the consumer which guides him to make a choice suiting
his personality.
 Decision process
The decision outcome or the satisfaction and dissatisfaction is also an
important factor which influences further decisions.

The decision process may involve extensive problem solving, limited

problem solving or routinised response behavior. This depends on the type
and value of the product to be purchased

Environmental influences

The environmental influences are also shown in a separate box and consist
of income, social class, family influences, social class and physical
influences and other considerations. All these factors may favour or
disfavour the purchase decisions.
8. MODEL OF FAMILY DECISION-MAKING
In a family decision-making model, it is important to understand how the family
members interact with each other in the context of their consumer decision-
making.

There are different consumption roles played by various members of the

family. These roles are as follows...
(i) Influencers
The members who influence the purchase of the product by providing
information to the family members, the son in a family may inform the
members of a new fast food joint. He can influence the family members to
visit the joint for food and entertainment.

(ii) Gate keepers

These members control the flow of information for a product or brand that
they favour and influence the family to buy the product of their choice. They
provide the information favourable to themselves and, withhold information
about other product which they do not favour.
iii) Deciders
These are the people who have the power or, money and authority to buy. They
play a major role in deciding which product to buy.

(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the house etc.
Father buying crayons for his children.

(v) Preparers
Those who prepare the product in the form it is actually consumed. Mother
preparing food by adding ingredients to the raw vegetable. Frying an egg for
consumption, sewing clothes for the family, etc.

(vi) User
The person who actually uses or consumes the product. The product can be
consumed individually or jointly by all members of the family. Use of car by the
family, use of refrigerator,TV, etc.

The roles that the family members play are different from product to product. Some
products do not involve the influence of family members vegetables bought by the
house wife.
The diagram shows the predisposition of various family members, which when influenced by other factors leads to
joint or individual decisions. These factors are shown in the diagram and consist of social class, lifestyle, role
orientation, family life-cycle stage, perceived risk, product importance and time pressure
9. NICOSIA MODEL CONSUMER BEHAVIOUR

This model explains the consumer behaviour on the basis of four

fields shown in the diagram. The output of field one becomes the
input of field two, and so on.

Field one consists of sub fields one and two. Sub field one is the
firm’s attributes and the attributes of the product. The sub field two
is the predisposition of the consumer and his own characteristics and
attributes, which are affected by his exposure to various information
and message, and is responsible for the building of attitude of the
consumer.

Field two is the pre action field, where the consumer goes on for
research and evaluation and gets motivated to buy the product. It
highlights the means and end relationship.
Field three is the act of purchase or the decision-making to buy
the product. The customer buys the product and uses it.

Field four highlights the post-purchase behaviour and the use of

the product, its storage and consumption. The feedback from field
four is fed into the firms attributes or field one, and the feedback
from the experience is responsible for changing the pre-disposition
of the consumer and later his attitude towards the product.

Nicosia Model is a comprehensive model of dealing with all

aspects of building attitudes, purchase and use of product
including the post-purchase behaviour of the consumer
10. MODEL OF INDUSTRIAL BUYER BEHAVIOUR
There are three main features in this model:

•There are different individuals involved who have a different

psychological make up.

•Conditions leading to joint decision-making by these individuals.

•Differences of opinion on purchases or conflicts that have to be resolved

to reach a decision.

These are shown in Fig as (1), (2) and (3). The persons involved in the
decision-making are from quality control, manufacturing, finance, research
and development and other possible areas. These may be named as
purchase agents, engineers, and users, as referred to in the model.
These constitute a purchasing committee. They have:
(1a) Different backgrounds
(1b) Different information sources
(1c) Undertake active search
(1d) They have perceptual distortion
(1e) Satisfaction with past purchase.

With these characteristics, they develop certain expectations from the

product to be bought. The obvious ones are product quality, delivery time,
quantity of supply, after sales service and price. These are known as explicit
objectives.

There are other objectives as well, which are the reputation of the supplier,
credit terms, location of the supplier, relationship with the supplier,
technical competence and even the personality, skill and lifestyle of the
salesman. These are known as implicit objectives. Different individuals in
the purchasing committee give emphasis on different aspects of the
product. Engineers look for quality and standardization of the product.
Users think of timely delivery, proper installation and after sales service. Finance
people look for maximum price advantage. Thus, there are conflicting interests and
view that have to be resolved. If autonomous decisions are made, these issue do not
surface. There are conditions leading to autonomous or joint decisions.

(2a) Product specific factors

Perceived risk: With higher risks joint decisions are favoured.
Type of purchase: Items involving heavy investments are made jointly, routine and
less costly decisions can be made independently.
Time pressure: If goods are urgently required, individual decisions are favoured.

(2b) Company specific factors

Size of the organization: Larger the size of the organization, the more the emphasis
laid on joint decision.
Organization orientation: In a manufacturing organization, the purchases are
dominated by production personnel and in a technology oriented organization, the
decisions are based on engineers. The conflict that arises for buying decision has to
be resolved. The resolution can be done by: Problem solving, Persuasion,
Bargaining and Politicking
The fourth aspect is the influence of situational factors which
must be considered. These are economic conditions such as
inflation, recession or boom, price contracts, rationing foreign
trade, strikes or lock outs.

Organizational change such as a merger, acquisition change of

key personnel, etc. Sometimes these factors outweigh the realistic
criteria of decision-making. This model explains how purchase
decision are made in an industrial organization.

All the models discussed in this unit give us an idea of the buying
behaviour in diverse situations. An understanding of these models
gives the marketer clues to formulate his strategies according to
the target audience, e.g., an individual, a family or an industry,
etc.
End