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MODELS OF CONSUMER BEHAVIOUR
Learning Model:
Overview: The Learning Model emphasizes the impact of experience and education on consumer
behavior. It suggests that consumer choices are influenced by acquired knowledge and responses to
stimuli.
Key Concepts:
Behavioral Learning: Consumers adapt their behavior based on experience and exposure to various
stimuli in the market.
Conditioned Responses: Repeat purchasing or brand loyalty may result from positive experiences or
reinforcement.
Application: Marketing strategies focus on creating positive associations through advertising,
promotions, and product experiences.
Psychoanalytic Model:
Overview: The Psychoanalytic Model explores the psychological and unconscious factors shaping
consumer decisions. It draws from Freudian theories to understand the emotional and subconscious
motives driving behavior.
Key Concepts:
Freudian Concepts: Incorporates ideas like the id, ego, and superego to explain hidden desires, fears,
and emotions influencing purchasing choices.
Motivations and Desires: Unconscious desires play a significant role in shaping consumer preferences
and decisions.
Application: Advertisers use imagery and messaging to tap into deep-seated emotions and desires,
creating a connection with consumers to influence purchasing behavior.
Sociological Model:
Overview: The Sociological Model examines how societal and group influences impact consumer
behavior. It considers the role of social factors, culture, and reference groups.
Key Concepts:
Social Influences: Family, peers, and societal norms shape consumer choices.
Cultural Factors: Cultural values, beliefs, and customs influence preferences.
Application: Marketers tailor their strategies to align with cultural values and leverage social
influences to create relatable and appealing campaigns.
Howard-Sheth Model of Buying Behavior:
Overview: The Howard-Sheth Model is a comprehensive theory that integrates various factors
influencing consumer behavior, including psychological, social, and marketing stimuli.
Key Concepts:
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Input Variables: External influences, marketing efforts, and consumer predispositions contribute to
decision-making.
Process Variables: Information processing, perceptual screens, and attitudes play crucial roles in
forming consumer intentions.
Application: Provides a framework for marketers to understand the complex interplay of variables
and design effective strategies.
Nicosia Model:
Overview: The Nicosia Model views the consumer decision-making process as a series of
communication and response steps. It emphasizes the interactive nature of the decision-making
process.
Key Concepts:
Communication Flow: Consumer decisions involve information input, process, and output.
Feedback Loops: Consumer responses influence subsequent communication and decision stages.
Application: Helps marketers design communication strategies that facilitate a dynamic exchange of
information and responses.
Engel-Kollat-Blackwell Model:
Overview: The Engel-Kollat-Blackwell Model identifies various stages in the consumer decision-
making process, emphasizing the iterative nature of decision-making.
Key Concepts:
Problem Recognition: Identifying a need or problem initiates the decision process.
Information Search: Consumers seek information to address the identified problem.
Evaluation of Alternatives: Comparison of available options based on specific criteria.
Application: Guides marketers in understanding where consumers are in the decision process and
tailoring strategies to influence each stage effectively.
What is Consumer Behavior?
Consumer behavior refers to the study of individuals and groups' actions, decisions, and processes
involved in selecting, purchasing, using, and disposing of goods, services, ideas, or experiences to
satisfy their needs and desires.
Key Aspects:
Decision-Making: Understanding how consumers make choices, weighing options, and evaluating
alternatives.
Motivations: Examining the psychological factors driving consumer desires and preferences.
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Influences: Analyzing the impact of external factors such as culture, social groups, and marketing on
consumer decisions.
Post-Purchase Behavior: Assessing consumer satisfaction, loyalty, and reactions after making a
purchase.
Consumer Behavior Process:
Problem Recognition:
Identifying a need or recognizing a problem that can be addressed through a purchase.
Information Search:
Actively seeking information about products, brands, or solutions to fulfill the identified need.
Evaluation of Alternatives:
Comparing and evaluating available options based on criteria such as price, features, and reviews.
Purchase Decision:
Making the final decision to buy a particular product or service.
Post-Purchase Evaluation:
Reflecting on the purchase, assessing satisfaction, and considering future decisions.
Consumer Differentiations:
Demographic Factors:
Age: Preferences and needs may vary across different age groups.
Gender: Different genders may have distinct preferences.
Income: Purchasing power and spending habits are influenced by income levels.
Psychographic Factors:
Lifestyle: Hobbies, interests, and activities shaping consumer choices.
Personality: Individual traits affecting brand preferences and product choices.
Behavioral Factors:
Usage Rate: Frequency of product usage or purchasing.
Brand Loyalty: Consumer commitment to specific brands.
Readiness to Buy: Willingness and preparedness to make a purchase.
Geographic Factors:
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Location: Geographical location impacting product preferences (urban vs. rural).
Social Factors:
Family Structure: Influence of family dynamics on consumer decisions.
Reference Groups: Impact of social groups and influencers on preferences.
Motivation:
Motivation, a cornerstone of consumer behavior, encompasses the intricate interplay of needs,
drives, and goals that propel individuals into action. In the realm of marketing, a profound
comprehension of these motivational factors is paramount.
Types of Needs:
Physiological Needs: These are the most fundamental, innate requirements for sustaining life, such
as food and air.
Psychological Needs: Personal competence and learned needs acquired over time are part of this
category.
Learned Needs: These needs are acquired through individual experiences and cultural influences.
Needs Arousal:
The activation of needs is triggered by distinct stimuli, including physiological, cognitive,
environmental, and emotional factors. These stimuli collectively shape customer needs.
Determinants of Customer Needs:
Personal Characteristics:
Genetics: Inherited traits and characteristics like food allergies.
Biogenics: Characteristics present at birth, such as gender and race.
Psychogenic: States and traits induced by brain functioning, including moods and emotions.
Physical Characteristics of Environment:
Environmental factors like climate, temperature, attitude, and rainfall also influence needs.
Determinants of Customer Wants:
Individual Context:
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Personal worth, financial resources, and the influence of institutions and cultural values collectively
shape wants.
Environmental Context:
Economic conditions, technological advancements, and public policies play a pivotal role in shaping
customer wants.
Hierarchy of Needs:
Maslow's Hierarchy of Needs posits a five-tier model, from basic physiological needs to self-
actualization, providing a framework to understand human motivations.
Sheth’s Five Needs:
Sheth identifies five levels of needs:
Functional Needs: Serving a physical purpose (e.g., soap).
Social Needs: Allowing identification with a desired group (e.g., logos).
Emotional Needs: Creating appropriate emotions (e.g., joy from receiving a gift).
Epistemic Needs: Seeking knowledge/information (e.g., newspapers).
Situational Needs: Contingent on time/place (e.g., emergency repairs).
McClelland’s Three Needs Theory:
McClelland's theory identifies three distinct needs:
Need for Achievement: Drive to excel and achieve against set standards.
Need for Power: Desire to influence others' behavior.
Need for Affiliation: Craving for friendly and close interpersonal relationships.
Motives and Motivation:
Motives: Inner states directing behavior.
Motivating: Activities channeling strong motives.
Motivation: The driving force impelling individuals into action.
Understanding whether motivation is positive (towards an object) or negative (compelling movement
away) is crucial in consumer behavior.
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Customer Moods:
Marketing stimuli can induce positive or negative moods, affecting consumer behavior. Store
ambiance, salesperson demeanor, product features, and advertising tone contribute to shaping
customer moods.
Hedonic Consumption:
Consuming products for intrinsic enjoyment rather than problem-solving involves sensory, aesthetic,
emotional, and fun experiences.
Involvement in Consumer Behavior:
Involvement reflects the degree of importance and personal relevance individuals attribute to a
product, influencing decision-making efforts. Marketers can impact involvement through advertising
and relevant information provision.
Understanding these motivational aspects equips marketers to tailor strategies, products, and
messaging effectively to resonate with and influence consumer behavior.
Personality
Personality, a key aspect of consumer behavior, refers to the unique set of characteristics that shape
an individual's distinctive patterns of thinking, feeling, and behaving. The Trait Theory, a prominent
framework, elucidates how specific personality traits influence consumer choices and preferences.
THEORIES OF PERSONALLITY
Freudian Theory:
Foundation:
Sigmund Freud: Developed by the Austrian neurologist and psychoanalyst in the late 19th and early
20th centuries.
Basic Components: Freud identified three fundamental components of personality - Id, Ego, and
Superego.
Consumer Insights:
Id Influence: Unconscious desires and instincts influence purchasing decisions. Marketers tap into
emotions and primal urges to connect with consumers.
Ego Balance: Consumers seek products aligning with their self-image and societal expectations.
Products become a part of self-expression.
Superego Appeal: Ethical and moral considerations play a role. Brands emphasizing social
responsibility may attract consumers influenced by the superego.
2. Neo-Freudian Theory (Jung, Adler, Horney):
Foundation:
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Carl Jung, Alfred Adler, Karen Horney: Neo-Freudians who expanded upon Freud's ideas but
introduced unique perspectives.
Key Concepts: Collective unconscious, individual psychology, and social influences.
Consumer Insights:
Archetypes (Jung): Consumers connect with universal symbols and themes. Brands employing
archetypal imagery may resonate deeply.
Inferiority and Compensation (Adler): Consumers may seek products compensating for perceived
shortcomings. Advertisements can address feelings of inadequacy.
Cultural Influence (Horney): Societal norms impact personality. Marketing strategies need cultural
sensitivity to appeal to diverse audiences.
3. Trait Theory:
Foundation:
Trait Theory: Focuses on enduring personality traits that remain consistent over time.
OCEAN Model: Traits include Openness, Conscientiousness, Extraversion, Agreeableness, and
Neuroticism.
Consumer Insights:
Trait Alignment: Consumers with specific traits may exhibit consistent preferences. For instance,
open individuals may embrace novelty and innovation.
Segmentation: Marketers segment audiences based on trait profiles for targeted campaigns.
Messages tailored to specific traits are more effective.
Brand Loyalty: Certain traits may correlate with brand loyalty. Consistent brands attract conscientious
consumers seeking reliability.
Comparative Analysis:
Unconscious vs. Conscious Influence:
Freudian and Neo-Freudian: Emphasize unconscious elements shaping behavior, often rooted in
deep-seated emotions and desires.
Trait Theory: Focuses on conscious, stable traits that influence decision-making in a more predictable
manner.
Individual vs. Universal Aspects:
Neo-Freudians: Acknowledge individual variations and societal influences, introducing cultural
nuances.
Trait Theory: Seeks universal traits applicable across diverse populations, providing a more
standardized approach.
Marketing Applications:
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Freudian and Neo-Freudian: Inspire emotionally charged, symbolic marketing that taps into deep
emotions and desires.
Trait Theory: Enables precise segmentation and targeted messaging based on identifiable personality
traits.
Perception
Perception in consumer behavior refers to how individuals interpret and make sense of the sensory
information they receive from their environment, including stimuli such as advertisements, product
packaging, and brand messaging.
Key Concepts:
Selective Exposure:
Definition: Consumers choose which stimuli to notice and which to ignore.
Marketing Implications: Marketers need to create attention-grabbing content to break through the
clutter and capture the audience's interest.
Selective Attention:
Definition: Once exposed to stimuli, consumers focus on specific aspects.
Marketing Implications: Marketers must identify and emphasize key features or messages to ensure
they align with consumers' focused attention.
Selective Distortion:
Definition: Consumers interpret information based on existing beliefs and attitudes, leading to
subjective perceptions.
Marketing Implications: Marketers should be aware of consumers' existing perspectives and ensure
that messages are crafted to align with and positively influence these perceptions.
Selective Retention:
Definition: Consumers remember information that aligns with their existing beliefs.
Marketing Implications: Consistency in messaging is crucial to enhance recall. Marketers should strive
for messaging that aligns with consumers' pre-existing attitudes.
Marketing Strategies:
Positioning:
Alignment: Align brand positioning with consumer perceptions and preferences.
Consistency: Ensure consistent communication to avoid confusion and build a clear brand image.
Branding:
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Consistent Identity: Establish and maintain a consistent brand identity to aid in selective retention.
Relevance: Craft brand messages that are relevant to the target audience's needs and preferences.
Communication:
Understanding Filters: Understand the filters through which consumers perceive information and
tailor communication strategies accordingly.
Adaptability: Be adaptable to changes in consumer perceptions and adjust communication strategies
accordingly.
1. Perceptual Selection:
Definition:
Perceptual selection refers to the process by which individuals choose specific stimuli from the
environment to focus on, while filtering out others. It involves the conscious or subconscious
decision to pay attention to certain information over others.
Consumer Behavior Implications:
Marketing Strategies: Marketers need to create stimuli that stand out and capture consumers'
attention.
Relevance: Understanding the target audience's preferences helps in designing marketing materials
that align with their interests.
Competitive Environment: Considering the cluttered nature of the marketplace, marketers must
employ strategies that differentiate their products or messages.
2. Perceptual Organization:
Definition:
Perceptual organization involves the way individuals structure and organize the stimuli they have
selected. It includes the grouping of stimuli to form a coherent and meaningful picture or concept.
Consumer Behavior Implications:
Brand Recognition: Marketers should design their branding elements in a way that facilitates easy
recognition and association.
Product Presentation: Organizing product features in a clear and logical manner enhances consumer
understanding and decision-making.
Visual Hierarchy: Establishing a visual hierarchy in advertisements helps guide consumers' attention
to key messages or product attributes.
3. Perceptual Interpretation:
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Definition:
Perceptual interpretation is the process of assigning meaning to the organized stimuli. Individuals
interpret stimuli based on their past experiences, cultural background, and personal attitudes,
leading to subjective understanding.
Consumer Behavior Implications:
Cultural Sensitivity: Marketers need to be aware of cultural nuances that can influence how
consumers interpret messages.
Brand Image: The interpretation of brand-related stimuli contributes to the overall brand image.
Consistent positive interpretations foster brand loyalty.
Consumer Segmentation: Understanding how different consumer segments interpret stimuli helps in
tailoring messages to specific audiences.
Positioning
Positioning in consumer behavior refers to the strategic process through which a brand or product is
placed in the minds of target consumers relative to competing products. It involves creating a distinct
and favorable image to occupy a specific place in consumers' perceptions.
Key Elements of Positioning:
Differentiation:
Unique Value: Positioning emphasizes what sets a product apart from competitors. This could be
based on features, benefits, or emotional appeal.
Competitive Advantage: Highlighting a unique selling proposition (USP) helps consumers see why a
particular product is superior.
Target Audience:
Understanding Consumers: Positioning considers the needs, preferences, and characteristics of the
target audience. Effective positioning resonates with the intended consumers.
Relevance:
Consumer Relevance: Positioning aims to be relevant to consumers by addressing their needs,
solving problems, or fulfilling desires.
Market Trends: Aligning with current market trends ensures that the positioning remains
contemporary and appealing.
Consistency:
Message Consistency: Consistent messaging across various touchpoints reinforces the intended
positioning.
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Brand Image: Positioning is closely tied to overall brand image, requiring consistency in brand
representation.
Communication:
Clear Messaging: Communication channels are utilized to convey the positioning message clearly and
effectively.
Brand Story: Narratives and storytelling contribute to how consumers perceive the brand and its
position in the market.
Importance of Positioning in Consumer Behavior:
Decision Making:
Consumers make choices based on perceived differences between brands. Positioning influences
these perceptions, impacting decision-making.
Brand Loyalty:
A well-defined position can contribute to the development of brand loyalty as consumers associate
specific qualities with the brand.
Competitive Advantage:
Effective positioning creates a competitive advantage by establishing a unique and desirable image
that competitors find challenging to replicate.
Emotional Connection:
Positioning often involves creating an emotional connection with consumers, fostering a sense of
belonging or resonance.
Market Perception:
The way a brand is positioned shapes how it is perceived within the market, influencing consumer
attitudes and preferences.
Consumer learning
Consumer learning is the process through which individuals acquire knowledge, skills, attitudes, and
behaviors related to products, services, and consumption experiences. It involves the adaptation of
information based on consumer interactions, leading to changes in preferences, purchase decisions,
and post-purchase evaluations.
Key Aspects of Consumer Learning:
Types of Consumer Learning:
Intentional Learning: Deliberate seeking of information through research, reading, or educational
activities.
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Incidental Learning: Unintentional acquisition of knowledge through daily experiences and exposure
to marketing stimuli.
Stages of Consumer Learning:
Exposure: Initial contact with a stimulus (e.g., product, advertisement).
Attention: Focus on the stimulus, indicating cognitive processing.
Interpretation: Assigning meaning to the stimulus based on existing knowledge and attitudes.
Elements Influencing Consumer Learning:
Motivation: The drive to satisfy needs and desires fuels consumer learning. Motivated individuals
actively seek relevant information.
Cues: Environmental cues, such as marketing messages and product displays, provide stimuli for
learning.
Reinforcement: Positive outcomes or rewards strengthen learned behaviors, fostering repetition.
THEORIES OF LEARNING
1. Classical Conditioning:
Definition: Classical conditioning is a type of learning where a stimulus gains the ability to evoke a
response through repeated association with a specific outcome.
Application in Consumer Behavior:
Example: Associating positive emotions with a brand by pairing it with pleasant experiences in
advertising.
2. Operant Conditioning:
Definition: Operant conditioning involves learning based on the consequences of behavior. Positive
reinforcement strengthens a behavior, while negative reinforcement involves removing an
undesirable stimulus.
Application in Consumer Behavior:
Example: Loyalty programs that reward customers for repeated purchases, reinforcing the behavior.
3. Cognitive Learning Theories:
Definition: Cognitive learning theories focus on mental processes, including problem-solving,
memory, and information processing.
Types:
Observational Learning: Acquiring new behaviors by observing others.
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Verbal Learning: Learning through written or spoken words.
Application in Consumer Behavior:
Example: Consumers learning about a product's features and benefits through online reviews and
expert opinions.
4. Social Learning Theory:
Definition: Social learning theory emphasizes the role of social interactions and observational
learning in shaping behavior.
Application in Consumer Behavior:
Example: Influencer marketing, where consumers observe influencers using and endorsing products,
impacting their preferences.
