Consumer Behavior
MBA-Integrated 5th Semester
RCOEM-DMT An ISO 9001:2008 Certified Institution
Unit-5: Consumer Decision Making
NAAC Accredited with 'A' Grade
An Autonomous Institution
By:
Dr. Parihar Suresh Dahake ,
Assistant Professor,
Shri Ramdeobaba College Of
Engineering & Management, Nagpur
Shri Ramdeobaba College of Engineering and Management
Consumer Market
• Consists of all the individuals and households who
buy or acquire goods and services for personal
consumption.
RCOEM-DMT An ISO 9001:2008 Certified Institution
• Once consumer recognize their problems and have
NAAC Accredited with 'A' Grade
no inhibiting constraints to take the next step in
An Autonomous Institution
their decision making process
• They need adequate information to choose
appropriate solution.
• Information search takes time, energy, money or
• giving up desirable activities and may involve
mental as well as physical activities.
Shri Ramdeobaba College of Engineering and Management
Meaning & Definition
• It represents a road map of consumer’s minds
that marketers and managers can use to help,
guide product mix, communication and sales
RCOEM-DMT An ISO 9001:2008 Certified Institution
strategies.
NAAC Accredited with 'A' Grade
An Autonomous Institution
Shri Ramdeobaba College of Engineering and Management
Types of Consumer Buying
Decisions
RCOEM-DMT An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
An Autonomous Institution
Less More
Involvement Involvement
Shri Ramdeobaba College of Engineering and Management
Introduction
• Consumer decision making refers to the process
Introduction
through which individuals or groups select,
purchase, use, and dispose of goods, services,
RCOEM-DMT An ISO 9001:2008 Certified Institution
ideas, or experiences to satisfy their needs and
NAAC Accredited with 'A' Grade
desires.
An Autonomous Institution
• This process is crucial for marketers, economists,
and policymakers, as understanding it can inform
strategies to influence purchasing behaviors.
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
Consumer Buying Decision Process
Engel, Kollat, and Blackwell (EKB) Model
• The Engel, Kollat, and Blackwell (EKB) Model is a
well-established framework for understanding the
consumer decision-making process. It was
RCOEM-DMT
developed by James F. Engel, David T. Kollat, and
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Roger D. Blackwell in the 1960s and has undergone
several revisions since then. The model is
An Autonomous Institution
comprehensive, capturing the various factors and
stages that influence consumer decisions, and is
widely used in both marketing theory and practice.
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
Engel kollat Blackwell (EKB Model)
The Howard Sheth Model of Buying Behaviour
• This model serves two purposes:
• 1. It indicates how complex the whole question of consumer
behavior is.
RCOEM-DMT An ISO 9001:2008 Certified Institution
• 2. It provides the framework for including various concepts
NAAC Accredited with 'A' Grade
like learning, perception, attitudes, etc., which play a role in
influencing consumer behavior.
An Autonomous Institution
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
Howard Sheth Model of Consumer behaviour
Nicosia Model
• This model focuses on the relationship between the
firm and its potential consumers.
• The firm communicates with consumers through its
RCOEM-DMT An ISO 9001:2008 Certified Institution
marketing messages (advertising), and the
NAAC Accredited with 'A' Grade
consumers react to these messages by purchasing
An Autonomous Institution
response
• The firm and the consumer are connected with
each other, the firm tries to influence the consumer
and the consumer is influencing the firm by his
decision.
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
The Howard Sheth Model of Buying
Behaviour.
• This Model Suggests Three Levels Of Decision Making: -
• 1. The first level describes the extensive problem solving. At
this level the consumer does not have any basic information
or knowledge about the brand and he does not have any
RCOEM-DMT An ISO 9001:2008 Certified Institution
preferences for any product.
NAAC Accredited with 'A' Grade
• In this situation, the consumer will seek information about
An Autonomous Institution
all the different brands in the market before purchasing.
• 2. The second level is limited problem solving. This situation
exists for consumers who have little knowledge about the
market, or partial knowledge about what they want to
purchase. In order to arrive at a brand preference some
comparative brand information is sought.
Shri Ramdeobaba College of Engineering and Management
• 3. The third level is a habitual response behavior.
• In this level the consumer knows very well about
the different brands and he can differentiate
RCOEM-DMT An ISO 9001:2008 Certified Institution
between the different characteristics of each
NAAC Accredited with 'A' Grade
product, and he already decides to purchase a
An Autonomous Institution
particular product.
Shri Ramdeobaba College of Engineering and Management
Engel-kollat-blackwell Model
• This model was created to describe the
increasing, fast-growing body of knowledge
concerning consumer behavior. This model, like in
RCOEM-DMT
other models, has gone through many revisions
An ISO 9001:2008 Certified Institution
to improve its descriptive ability of the basic
NAAC Accredited with 'A' Grade
relationships between components and
An Autonomous Institution
sub-components, this model consists also of four
stages;
• Information Input
• Information Processing
• Decision Process
• Variables Influencing The Decision Process
Shri Ramdeobaba College of Engineering and Management
Stimulus-Response Model Of Buyer Behavior
• Middleton (1994) presented an adapted model of
consumer behavior tourism, which was termed the
stimulus-response model of buyer behavior.
RCOEM-DMT An ISO 9001:2008 Certified Institution
• This model is based on the four interactive
NAAC Accredited with 'A' Grade
components with the central component identified
An Autonomous Institution
as 'buyer characteristics and decision process'.
• The model separates out motivators and
determinants in consumer buying behavior and also
emphasizes the important effects that an
organization can have on the consumer buying
process by the use of communication channels.
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management
An Autonomous Institution
RCOEM-DMT
An ISO 9001:2008 Certified Institution
NAAC Accredited with 'A' Grade
Shri Ramdeobaba College of Engineering and Management