consumer descision models

8/19/2019 Consumer Descision Models

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CONSUMER DECISION MODELS

By: Vignesh G

14810079


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Models of Consumer Behaviour:

• The Economic Model• Learnin Model

• !s"choloical Model

• The Socioloical Model

• The #o$ard She%h Model of &u"in &ehaviour

• The Nicosia Model

• The Enle'(olla%'Blac)$ell Model

• Enle* Blac)$ell and Miniard +EBM, Model

• -e&s%ar and -ind Model of orani.a%ional &u"in

&ehaviour

• The She%h Model of Indus%rial &u"in


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Tradi%ional Models

• The Economic Model

• Learnin Model

• !s"cho'anal"%ic Model

• The SocioloicalModel

Con%em/orar" Models

• The Howard Sheth Modelof buying behaviour

• The Nicosia Model

• The Engle-Kollat-

Blackwell Model• Engle, Blackwell and

Miniard EBM! Model

• The Sheth Model of

"ndustrial buying


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Economic Model:This model assumes %ha% $i%h limi%ed /urchasin /o$er

and a se% of needs and %as%es* a consumer $ill alloca%ehis0 her e1/endi%ure over differen% /roduc%s a% a iven

/rices so as %o ma1imi.e u%ili%"2

Bases for Econo#ic Model$• !rice Effec%

• Su&s%i%u%ion Effec%

• Income Effec%

%riticis#$

• 3ails %o e1/lain ho$ does %he consumer ac%uall"

&ehave2

• Incom/le%eness in %he Model2

• Lac) of &roader /ers/ec%ive2


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Learnin Model:

This model hel/ mar)e%ers %o /romo%e associa%ion of /roduc%s $i%hs%ron drivers and cues* $hich $ould lead %o /osi%ive reinforcemen%

from %he consumers2

In mar)e%in con%e1%* 4learnin5 $ill hel/ mar)e%ers %o unders%and ho$

consumer learn %o res/ond in ne$ mar)e%in si%ua%ions* or ho$ %he"have learned and res/ond in %he /as% in similar si%ua%ions2

Needs and $an%s ' S%imuli and Cues

!urchase 6 res/onse

Sa%isf"in e1/erience 6 re$ards and reinforcemen%s

Re/ea% !urchase 6 &ased on re$ards and reinforcemen%s


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!s"cho'anal"%ic Model :This %heor" $as develo/ed &" Simund 3rued2 7cc2 To

him human &ehaviour is %he ou%come of• Mo%ive

• Su/er Eo

• Eo

This model is concerned $i%h /ersonali%" and sa"s

%ha% human &ehaviour %o a rea% e1%en% is direc%ed &"

a com/le1 se% of dee/ sea%ed mo%ives2

#el/s %he mar)e%er %o )no$ ho$ &u"ers influenced &"

s"m&olic fac%ors in &u"in a /roduc%2


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The Socioloical Model: 7s /er %his model* an individual &u"er is a /ar% of %he

ins%i%u%ion called socie%"* e%s influenced &" i% and in %urn*also influences i% in i%s /a%h of develo/men%2

The in%erac%ions $i%h all %he se% of socie%" leave some

im/ressions on him and ma" /la" a role in influencin his&u"in &ehaviour2

The mar)e%ers* %hrouh a /rocess of mar)e%

semen%a%ion can $or) ou% on %he common &ehaviour

/a%%erns of a s/ecific class and rou/ of &u"ers and %r" %o

influence %heir &u"in /a%%ern2


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Basic Model of Consumer Decision ma)in 6 (o%ler

and 7rms%ron


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Indus%rial Bu"in Model

%o#&onents $

• Bu"in Orani.a%ion

• Bu"in Cen%er+in%er/ersonal and individual influences,

• Bu"in Decision !rocess2


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Indus%rial Bu"in Model

Ste&s "nvolved $

• !ro&lem Reconi%ion

• 8eneral need descri/%ion

• !roduc% S/ecifica%ion• Su//lier Search

• !ro/osal Solici%a%ion

• Su//lier Selec%ion

• Order Rou%ine S/ecifica%ion

• !erformance Revie$


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The #o$ard She%h Model of &u"in &ehaviour

I% a%%em/%s %o %hro$ lih% on %he ra%ional &rand &ehaviour

sho$n &" &u"ers $hen faced $i%h si%ua%ions involvin

incom/le%e informa%ion and limi%ed a&ili%ies2

The model refers %o %hree levels of decision ma)in:• E1%ensive /ro&lem solvin

• Limi%ed /ro&lem solvin

• Rou%ini.ed res/onse &ehaviour

The model has &orro$ed %he learnin %heor" conce/%s %o

e1/lain &rand choice &ehaviour $hen learnin %a)es

/laces as %he &u"er moves from e'tensive to routini(ed

&roble# solving behaviour)


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3our com/onen%s involved in %he

model:

• In/u% varia&les

• Ou%/u% varia&les• #"/o%he%ic cons%ruc%s

• E1oenous varia&les

The #odel #akes significant contribution

to understand consu#er behaviour by

identifying the variables which influenceconsu#ers)


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"n&ut *ariables: %hese varia&les ac%s as s%imuli in %heenvironmen%2

S%imuli can &e of Significative, Sy#bolic + Social

Significative sti#uli are %hose ac%ual elemen%s of

&rands $hich %he &u"er confron%s2

Sy#bolic sti#uli are %hose $hich are used &"

mar)e%ers %o re/resen% %heir /roduc%s in a s"m&olic

form2Social sti#uli are enera%ed &" %he social

environmen% such as famil"* friends* rou/s e%c2


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Ou%/u% varia&les:

These are $hich &u"er5s o&serva&le res/onses %o

s%imulus in/u%s2 The" a//ear in %he se9uence as &elo$:

• ttention$ Based on %he im/or%ance of %he &u"er5s

informa%ion in%a)e2

• %o#&rehension$ %he s%ore of informa%ion %he &u"er

has a&ou% %he &rand2

• ttitude$ %he &u"er5s evalua%ion of %he /ar%icular

&rands /o%en%ial %o sa%isf" his or her mo%ives2

• "ntention$ %he &rand $hich %he &u"er in%ends %o &u"2• urchase behaviour : %he ac% of ac%uall" /urchasin*

$hich reflec%s %he &u"er5s /redis/osi%ion %o &u" as

modified &" an" of %he inhi&i%ors2


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#"/o%he%ical Cons%ruc%s:The model /ro/oses a num&er of in%ervenin varia&les

$hich have &een ca%eorised in%o %$o ma;or rou/s:/erce/%ual and learnin cons%ruc%s2

!erce/%ual Cons%ruc%s include:

• Sensitivity to infor#ation$ %he deree %o $hich %he &u"erreula%es %he s%imulus informa%ion flo$2

• erce&tual bias$ refers %o dis%or%in or al%erin informa%ion

• Search for infor#ation$ i% involves ac%ivel" see)in

informa%ion on %he &rands or %heir charac%eris%ics2


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The &u"er5s learnin cons%ruc%s can &e defined as:

• Mo%ives are eneral or s/ecific oals im/ellin ac%ion2

• Brand /o%en%ial of %he evo)ed se% refer %o %he &u"er5s

/erce/%ion on %he a&ili%" of &rands in his or her evo)ed

se% %o sa%isf" his or her oals2

• Decision media%ors are &ased on %he mo%ives2 The &u"er

$ill have cer%ain men%al rules for ma%chin and ran)in

%he /urchase al%erna%ives2

• !redis/osi%ion refers %o a /reference %o$ards &rand in %he

evo)ed se% $hich e1/resses an a%%i%ude %o$ards %hem2

• Inhi&i%ors refers %o environmen%al forces li)e /rice and

%ime /ressure $hich ma" inhi&i% or /u% res%rain on %he/urchase of a /referred &rand2

• Sa%isfac%ion %he e1%en% %o $hich* /os% ac%ual /urchase $ill

measure u/%o %he &u"er5s e1/ec%a%ion of i%2


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• E1oenous varia&les:

These are lis% of a num&er of e1%ernal varia&les

+e1%ernal %o %he &u"er, $hich can sinifican%l"

influence &u"er decisions2


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The #o$ard She%h Model of &u"in &ehaviour


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Limi%a%ions of %he model:

• There is a a&sence of shar/ dis%inc%ions &e%$een

e1oenous varia&les and o%her varia&les2

• Some of %he varia&les* $hich are no% $ell defined*and are difficul% %o measure %oo2

• The model is 9ui%e com/le1 and no% ver" eas" %ocom/rehend2


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The Nicosia ModelThis model a%%em/%s %o e1/lain &u"in &ehaviour &" es%a&lishin

a lin) &e%$een %he oranisa%ion and i%s /ros/ec%ive cus%omer2 I%anal"se human &ein as a s"s%em $i%h s%imuli as %he in/u% %o %he

s"s%em and %he human &ehaviour as an ou%/u% of %he s"s%em2

The model sues%s %ha% messae from %he firs% influences %he/redis/osi%ion of %he consumer %o$ards %he /roduc% or services2

Based on %he si%ua%ion* %he consumer $ill have a cer%ain a%%i%ude

%o$ards %he /roduc%2 This ma" resul% in a search for %he /roduc%

or an evalua%ion of %he /roduc% a%%ri&u%es &" %he consumer2

If %he cus%omer sa%isfies $i%h a&ove i% ma" resul% in a /osi%ive

res/onse* $i%h a decision %o &u" %he /roduc% o%her$ise %he

reverse ma" occur2


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The Nicosia Model e1/lains in < &asic areas:

.ield /:' %he consumer a%%ri&u%e and %he firm5s a%%ri&u%es2 The

adv%2 messae sen% from %he com/an" $ill reach %he consumer

a%%ri&u%es2

.ield 0:' i% is rela%ed %o %he search and evalua%ion* under%a)en &"

%he consumer* of %he adver%ised /roduc% and also %o verif" if

o%her al%erna%ives are varia&le2

.ield 1$- i% e1/lains ho$ %he consumer ac%uall" &u"s %he /roduc%2

.ield 2$- i% is rela%ed %o %he uses of %he /urchased i%ems2 I% can

also &e rela%ed %o an ou%/u% %o receive feed&ac) on sales resul%s

&" oranisa%ion2


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The Nicosia Model


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Limi%a%ions:

• The flo$ is no% com/le%ed and does no% men%ion %he

various fac%ors in%ernal %o %he consumer2

• The assum/%ion a&ou% %he consumer &ein involved in%he decision /rocess $i%h no /redis/osi%ion a&ou% %he

various &rands is res%ric%in2

• Overla//in &e%$een firm5s a%%ri&u%es and consumersa%%ri&u%es2


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Be%%man5s Informa%ion !rocessin Model +=>?@,:

• Model is &ased on %he informa%ion /rocessin %ha% %a)es /lace $i%hin

a consumer2

• The consumer is cen%ral %o a hos% of informa%ion /rocessin

ac%ivi%ies2 #e receives a lare amoun% of informa%ion e1%ernall" from

%he mar)e%er* com/e%i%ors and %he environmen%2• #e also has a lare s%ore of informa%ion $i%hin him as a da%a&ase

%ha% he &uilds over %ime from his learnin* e1/eriences* social

influences e%c2

• -i%h a hue amoun% of informa%ion %ha% he is e1/osed %o* %he

/rocessin &ecomes difficul% and unmanaea&le2

• Consumers5 /ossess a limi%ed ca/aci%" for /rocessin informa%ion2

• Consumer does no% necessaril" /rocess all %he informa%ion %oe%herA

he could use sim/le decision rules for s/ecific si%ua%ions2


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• Com/onen%s involved in %he decision /rocess:• !rocessin Ca/aci%"

• Mo%iva%ion

• 7%%en%ion and !erce/%ual Encodin

• Informa%ion ac9uisi%ion and evalua%ion

• Decision !rocess

• Consum/%ion and learnin !rocess


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The Enel 6 (olla% 6 Blac)$ell +E(B, Model:

• This model %al)s of consumer &ehaviour as a decision

ma)in /rocess in %he form of five s%e/s +ac%ivi%ies, and

o%her rela%ed varia&les $hich occur over a /eriod of %ime2

• s%e/s involved in %he decision /rocess:• !ro&lem Reconi%ion

• Informa%ion Search

• 7l%erna%ive Evalua%ion• Choice

• Ou%come


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• O%her rela%ed aria&les included in %his

model:• Informa%ion in/u%

• Informa%ion /rocessin

• !roduc% 6 &rand evalua%ion

• 8eneral mo%iva%in influences

• In%erna%ionalised environmen% influences


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bout the #odel

• The model has em/hasised on %he conscious

decision ma)in /rocess ado/%ed &" a consumer2• The model is eas" %o unders%and and is fle1i&le2

• This model reconises %ha% a consumer ma" no% o

%hrouh all %he s%e/s al$a"s2 This is &ecause in case

of re/ea% /urchases %he consumer ma" &"/ass some

of %he s%e/s2

• One limi%a%ion* %he inclusion of environmen%alvaria&les and eneral mo%iva%in influences &u% no%

s/ecif"in %he effec% of %hese on %he &u"er &ehaviour2


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Enel* Blac)$ell and Minirad +EBM, Model:

• I% shares cer%ain %hins $i%h #o$ard'She%h model2

• The core of %he EBM model is a decision /rocess $hich

is aumen%ed $i%h in/u%s from informa%ion /rocessin

and o%her influencin fac%ors2

• 3our sec%ions of %he Model:

• In/u%• Informa%ion !rocessin

• Decision /rocess and

• aria&les influencin decision /rocess2


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• The EBM Model $hen com/ared %o %he #o$ard'

se%h model is more coheren% and fle1i&le %han %he

la%%er2

• This model also includes human /rocesses li)e

memor"* informa%ion /rocessin and considers

&o%h %he /osi%ive and nea%ive /urchase ou%

comes2

• Divesmen% ' o/%ions of dis/osal* rec"clin or

remar)e%in2


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References:

• Consumer Behaviour Course ' N!TEL

• h%%/s:00

en2$i)i/edia2or0$i)i0Bu"erdecision/rocess

https://en.wikipedia.org/wiki/Buyer_decision_processhttps://en.wikipedia.org/wiki/Buyer_decision_processhttps://en.wikipedia.org/wiki/Buyer_decision_processhttps://en.wikipedia.org/wiki/Buyer_decision_process


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