Models of consumer Behaviour
Models Of Consumer Behaviour
Traditional Models Contemporary Models
• Economic Model • The Howard Sheth Model of
• Learning Model buying behaviour
• Psychological Model • The Nicosia Model
• The sociological model • The Engle-KollatBlackwell
Model
• Engle, Blackwell and
Miniard (EBM) Model
Economic Model
• This model assumes that with limited purchasing power
and a set of needs and tastes, a consumer will allocate
his/ her expenditure over different products at a given
prices so as to maximize utility.
• Bases for Economic Model:
– Price Effect
– Substitution Effect
– Income Effect
Criticism:
• Fails to explain how does the consumer actually behave.
• Incompleteness in the Model.
• Lack of broader perspective.
Learning Model
• This model help marketers to promote association of
products with strong drivers and cues, which would
lead to positive reinforcement from the consumers.
• In marketing context, ‘learning’ will help marketers to
understand how consumer learn to respond in new
marketing situations, or how they have learned and
respond in the past in similar situations.
• As Consumers also learn to discriminate and this
information will be useful in working out different
marketing strategies.
Psychological Model
• This model based on the work of psychologists who were
concerned with personality. The view was human needs
and motives operates on buying. This theory was
developed by Sigmund Frued.
• Acc. To him human behaviour is the outcome of
– Id
– Super Ego
– Ego
• This model is concerned with personality and says that
human behaviour to a great extent is directed by a complex
set of deep seated motives.
• Helps the marketer to know how buyers influenced by
symbolic factors in buying a product.
Sociological Model
• As per this model, an individual buyer is a part of the
institution called society, gets influenced by it and in
turn, also influences it in its path of development.
• The interactions with all the set of society leave some
impressions on him and may play a role in influencing
his buying behaviour.
• The marketers, through a process of market
segmentation can work out on the common behaviour
patterns of a specific class and group of buyers and try
to influence their buying pattern.
Nicosia's model
• Nicosia's model of Consumer Decision Process
(1966): The model proposed by Francesco Nicosia in
the 1970s, was one of the first models of consumer
behavior to explain the complex decision process
that consumers engage in during purchase of new
products.
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 This Model concerns with the
Inter-relationship between
– The firms marketing communications
– The attributes of the consumer
– The consumers decision process including Search and
evaluation process
– Actual decision process
– The feedback of the consumers response to the firm
– This is a Dynamic Model
FIELD ONE
NICOSIA MODEL
SUB FIELD TWO
CONSUMER’S
SUB FIELD ONE
MESSAGE ATTRIBUTES
FIRM’S
EXPOSURE
SPECIALLY
ATTRIBUTES ATTITUDE
PRE DISPOSITION
FIELD TWO
SEARCH EVALUATION SEARCH FOR &
EXPERIENCE EVALUATION OF
MEANS-ENDS
RELATIONS
(PRE ACTION
FIELD)
CONSUMPTION MOTIVATION
FIELD FOUR OR
FEED BACK
STORAGE
PURCHASING DECISION / ACTION
FIELD THREE
ACT OF PURCHASE
BEHAVIOUR
• Field One – From the source of message to
consumer attitude
• Field Two – Search for and evaluation of
search . Means – Ends relation. Pre Action
field
• Field Three – the act of purchase
• Field Four – The Feed back
LIMITATIONS
• Incomplete in a number of aspects, very reductionist
• Variables in the model have not been clearly defined
• A number of assumptions have been made that question the
validity of this model, for instance:
What type of consumer are we talking about?
The company and the consumer have an existing relationship?
What type?
Is this for a new product?
Is this the first exchange the consumer has had with the
producer?
HOWARD-SHETH MODEL
• ASSUMPTIONS:
Consumer behaviour is a rational exercise in purchase problem solving
It is a systematic & orderly approach caused by inputs like stimuli &
results like output
o This model is based upon the theory that what happens
between the receipt of stimuli ie: input and its action ie:
output is consumer behaviour
Howard – Sheth Model of consumer
Behaviour
Inputs (stimuli)
– significative
The 'real' (physical) aspects of the product or service
– symbolic
The ideas or images attached by the supplier
– social
The ideas or images attached to the product by society,
such as reference groups.
Outputs
– The consumers actions
Constructs
– perceptual
Obtaining and handling information about the product or
service.
– learning
The process of learning leading to the decision itself
LIMITATIONS
• Consumer behaviour is normally repetitive in nature
• Generally consumers tend to store information in their
memory & then tend to establish a routine in their buying
decision process
• Too many variables, a complex model that can be difficult to
read
• Variables in the model have not been clearly defined
• Brand choice in one’s purchase decision is affected by:
One’s set of motives
Different alternative choices of products & brands
Engel , Blackwell and Miniard Model
FEATURES
• Highly comprehensive model
• Multi-staged model indicating consumer buying behaviour
• Treats individual as a system with outputs
• Recognizes the existence of intervening variables between
initial inputs & final outputs
• Based upon consumer’s psychological make up like: one’s
personality, attitudes, perceptions, learning experiences &
stored information
• Also takes into account environment inputs that affect
individual behaviour
LIMITATIONS
• Too many variables, a complex model that can be difficult to
read
• Variables in the model have not been clearly defined
• Key variables are vaguely defined
How do environmental variables affect consumers’
behaviour?
How do motives influence consumers’ behaviour?
• It is a mechanical overview of human behaviour
