Models of Consumer Behaviour

Models and role of models

A model is an abstract conception of the real world situation. The question is why do we need an abstract conception? Real world situation is very complex, where many force work simultaneously as a result it is difficult to understand the working of the process and hence, predicting future course of action. odels are use to simplify these problem. They give the researcher a guide line to work with, clarifying the relation between the various factors and their !likely" impact on the main process. #or example what role market plays on consumers. $f we can formali%e it, appropriate marketing strategies can be formed to shape up consumer"s buying behaviour. &onsumer behaviour is a multistage process, and actual buying comes at a much later stage. $t becomes crucial for the marketer to understand the initial stage so that they are able to predict the buying stage, this makes the study of consumer behaviour models almost mandatory. &onsumer behaviour model serve two distinct functions' (a) (b) They explain the factors that affect purchase of a particular type of goods and services. They allow future prediction to be made and are able to assess the likely out comes of various marketing strategies.

$n order to perform the above mention functions, the consumer behaviour model must be relevant (must be as much as possible near to the market situation). &omprehensive (they should not be vague and poorly constructed) and valid (the out come predicted by the model should be testable and verifiable). $f these *ualities are maintained in the model, and then the model becomes not only useful tools but essential tools for the market.

Types of Models

arket researcher traditionally uses economic models to predict the consumer behaviour. The concept of price, income etc. and their relation to buying behaviour to predict the outcome, +ut in reality it was found socio psychological factor go to great extant in forming a buying behaviour. As a result marketer started using psychological models to predict the buying behaviour. ,hether pure economic models were used or pure psychological models were used. The researcher were using monadic models, i.e. using only one discipline of study. Real buying behaviour is affected and influenced by economic, sociological, psychological, environmental and various other factors simultaneously. Thus the eclectic models or multivariable models which take into account all these influences simultaneously are much more comprehensive and relevant .although checking the validity of all these models become relatively difficult.

Monadic Models of Consumer Behaviour

Elasticity Models

This is a pure economic, more precisely, micro economic model. The model says, as the price increases, other things remain constant ( ceterisparibus ), demand of the commodity will go down. +y how much it will go down, will depend on the nature of the commodity. #or example in case of diamond which is a non essential luxury commodity. -ven if the price goes up slightly, demand will fall by a larger margin. .iamond is therefore, known as highly price elastic, while a commodity like petrol will not be very cheap, but life comes to a stand still with out it, if price of petrol increases, people cannot reduce the consumption, and in general decrease in quantity is much less than the increase in price. All such commodity are call price inelastic (this sets a relation in between the change in consumer income and change in the quantity demanded.) Response Hierarchy Model The models attempt to predict the sequence of mental stage that the consumer passes through on the way to purchase. /ike elasticity model, which was purely economic this model is purely psychological. There are three mental stages, namely cognitive, affective and behavioral. &ognitive stage deals with creation of knowledge or awareness in the mind of the consumer. The next stage is concerned with developing an interest in the mind of consumer which will result in developing an attitude or change in attitude towards the specific product. The attitude formation finally bring us to the behaviour formation .The buying behaviour. one of the most popular response hierarchy models is the A$.A model. A$.A model stands for attention, interest, desire and action, depicting the sequence of mental stage that the consumer passes through before the action of buying.

Response hierarchy model. stags STAGE COGNITIVE A ECTIVE AIDA MODEL ATTENTION INTEREST DESIRE ACTION

BE!AVIO"R

The Black Box Model

+lack box model is also called as stimulus response model. &onsumers mind and thought processing is treated like a 0black box1 which cannot be open to find out how it is working. The model highlight the in puts stimulus like a promotional advertisement and resulted out put, the purchase behaviour as shown in below2' +lack box model although does not go to describe as how purchase behaviour is formed, but mention personality, motivation and attitude and learning process as the factors standing in between input stimulus out put behaviour . later on market researcher have develop the model into complex multivariable model. As mentioned

earlier monadic theories fail to explain the complex multifaceted buying behaviour as a consumer is a mixture of rational (highlighted by economic price elasticity model) and emotional and cognitive (highlighted by the psychological models) buyer. T3- +/A&4 +56 $7 89T :T$ 9/A$ (ROD"CT 88 (RICE (ROMOTIOM (LACE T!E IM(REGNABLE BLAC) BO* 5.-/ 89R&3A:- +-3A;$59R (ROD"CTC!OI CE+ BRAND C!OICE BRAND LO,ALT,

any times, price of certain loyalty, (a learning experience), or has a strong preference for a particular product. +uying for a &R<(child relief and you) card as it has a social benefit (an attitude formation). At other times the rational behaviour becomes prominent. $f there is a persistent increase in /8= and kerosene prices, which is happening in a phased manner due to liberali%ation process, consumer will find other means of cooking, like solar cooker or electric ovens. As a result demand for /8= will come down.

Mul#ivaria$le Models of Consumer

ore comprehensive and relevant models formali%ing the multiple influences on the purchase decision are multivariable models. &onsumer is taken as a problem solver, the problem is 0to buy or not to buy1 the consumer receives information from various sources which is processed in the central processing unit (the mind), influenced by the external environment like economic, social, cultural and psychological. :ome of the well known multivariable models are2' %&'

THE HOWARDSHETH MODE

The model explains the buyer decision process using six sets of variables as can be seen below2' IN-PUT VARIABLES2 These include information in puts about the alternative services or products available including rational and emotional elements. #or ex. The customer want to posses a standard charted gold card, he will seek information regarding the facility of that card, the interest charged and will also effected by the promotional ad of standard charted gold card.

 BEHAVIOURAL DETERMINANTS2 These variable are the pre'existing element in consumers mind and existing predisposition of the consumer influenced by his culture, family and other such factors. +ehavioral determinants do not play an overt role never the less play a significant role in buying decisions. ,hile buying the standard charted gold card. $f the potential buyer consider processing the a credit card as a status symbol, or he is a frequent buyer of expensive items, these bear a positive impact on his decision on owning the card. PERCEPTUAL REACTION2 $nformation"s from inputs are not accepted at their face values by the consumer but are proposed in the mind of the consumer and than interpreted. #or -x. A person who is serious about the possessing a gold card will compare the advantage and disadvantage with other similar credit card. 3e will seek information actively. 3e will go out of the way to get information. Try to assimilate as far as possible and filter all the information"s he thinks important. As not so interested person may also receive the sensitive information and hence wont filter much of it for processing purpose. PROCESSING DETERMINANTS''' These are the factor effecting as to how the gathered information is evaluated. factor effecting are, motivation and the past relevant experience (the learning process). /earning process will include experience about the product and also the post purchase service. &onsumer may apply some >udge mental criteria to evaluate the alternatives. This 0:9+?-&T$;$T<1 element is crucial in the whole process. Result of the market and the marketing research can be useful to identify and assess the sub>ectivity element in the consumer buying process. IN HIBITORS2 These are the external constraints, inhibiting the actual or potential purchaser behaviour. #or processing the gold card. the inhibitors can be @' RAT- 5# $7T-R-:T&3AR=-. $7&5 - 5# T3- 8-R:57 R-/AT$;- 8R$&- 5# 5T3-R -*9$;A/-7T &R-.$T &AR.:

A7< #5R A/$T$-: T3AT 3A: T5 +- #9//'#$//-. #5R (-x) 57- 3A: T5 :9+ $T 3$: 8-R A7-7T A&&597T 79 +-R, 3$: $7&$ - :TAT- -7T: -T&. 59T 89T ;AR$A+/-:''' The outcome of the process of interacting elements may result in the purchase decision, not to purchase or post dated purchase.

3oward sheath model has a number of distinct futures like A it highlights the role of consumer satisfaction, which consumer seeks in relation to the purchase of goods and services. Along with this, the model also highlights the need to clearly understand the motivational force which guides the purchase behaviour. odels bring out the buying process is the product of the ob>ectives (rational) as well as sub>ective (emotional) element.

%-' THE HOWARD ! OST "#D MODE 3oward and 5stlund model is an improvement on the 3oward :heth model, in terms of greater predictability of the consumer buying decision. 3owever, the model is more complex then the 3oward :heth model as can be seen. Although the model is more comprehensive, it is extremely difficult to understand, more so because variables are divided into 0contents variables1. i.e. which deals with what the buyers think''' brand comprehension, personal attitudes, etc. and 0structural1 variables i.e. how the buyer thinks ''''media selection process, perceptual bias etc.

$%& THE E#'E ( B A)*WE

A#D M+#+ARD MODE

T3- 5.-/ ,A: 5R$=A7A//< .-;-/58-. $7 BCDE +< -7=-/, 45//AT A7. +/A&4,-//, but has undergone several revisions. $n BCCF, the most recent version has come out, given by -ngel, +lackwell and iniard the model shown below2' the basis of the model takes the simple process of consumer behaviour, as a decision process comprising of five ma>or activities over the period of time

These are2'
(a) (b) (c) (d) 7eed recognition. :earch for information. Alternatives evaluation. 8urchase.

%e' 5utcomes. The influencing variables on these activities are2 stimulus in puts like information for mass media, personal contacts and general market sources. $nformation processing involves the active memory where information is stored and from where information can be retrieved. 7ext variable is decision making process. This involves search process, evaluation process, and purchase process. #ourth variable influencing the five activities is the environmental influence. This variable includes all exogenous variables, crucial for the consumers buying process, like income, family, culture, social class, physical situation, etc. of the consumer The starting point of the process is the consumer perception of the want which has to be satisfied. This stimulates the next stage, namely, search for information. This can further divide in to two stage' customer search internally. 0memory search1 and 0external search1 the search process identifies various ways in which the problem can be solved, each way is evaluated. /ike cost benefit analysis. This stage involves comparing brands, and at the end of the evaluation stage. There may be a change in belief regarding the brands, which in turn, lends to change in attitudes and intensions to purchase. This stages lends to purchase stage, purchase of the

most favorably evaluated brand. $f the purchased product result in dissatisfaction, the search behaviour is bought back (negative outcomes of the purchase activity) or else the purchase behaviour is repeated as and when need arises. /ike 3oward s model, this model is also comprehensive and the greatest strength is the flexibility of the model. ,hen dissatisfaction arises from one activity, the buyer goes back to some earlier activity. ,hile the weakness of the model is in describing the role of certain influencing variables, the models is rather vague. #or example the role of environmental factor is not clearly mentioned as how it effect the buying process. %.' THE #+)OS+A MODE #RA7&-:&5 7icosia gave a consumer behaviour model based on the techniques of the computer flow charting with feed back loops. As shown below@ To make the consumer accept a particular product . Andresen believed that the model will be useful 0as a detailed organi%ing concept for marketing decision makers who must take customers decision explicitly in to account when employing either or both of these sub>ects1 Attitude formation and change are central concept of this model. There is a distinction between what is actual in formation and how people passed through perception corridor. $n fact, channels of communications channels also sub>ect to perceptual >udgement. A marketer should try to build a favorable attitude in consumer. Andresen s model is comprehensive, but is highly complex as it brings in the complex concept of consumers learning an attitude formation as a integral parts of model building.

$,& THE -ROD")T ADO-T+O# MODE

=iven the fact that much of marketing communication activities are related to the launching of new product. .eveloping a consumer behaviour model especially for finding how consumer 0adopt1 the product is highly beneficial for the marketer. R5=-R defines the 0.$##9:$571 as the process by which an 0$775;AT$571 is communicated over tine among the individuals with in society who constitute the target market. $s any new product or service that is coming to the market . R5=-R suggested that diffusion of innovated product follows a 075R A/ &9R;-1 while it permeates through the classes of consumer. There are five categories of consumer involved in this whole process of diffusion of innovation. %&' $775;AT5R: ''' They are venturesome individuals who are willing to try new ideas and consume new products. :ometimes, the product is so new that at time there are certain defects it is less then perfect. (G) -AR/< A.58T-R:''' They are opinion leaders with in the particular industry or social groups. These peoples are willing to try new ideas ahead of others. but, who makes careful assessment of potential risk before trying or using the new product. %/' -AR/< A?5R$T<''' These people try the innovated products, services or ideas ahead of rest of the masses or gentry. They hold up their purchase till they get favorable information from the early adaptors.

%.' /AT- A?5R$T<''' They are risk averse and unadventurous. They take the new product when it is well listed in the market. (H) /A==AR.: ''' They buy the new product when the new product no more remains new. The speed by which the new product gains acceptance and it is adopted by all types of consumers varies from product to product. The speed is much higher in case of easily understood consumer products, like kitchenware, consumer non'durables like soft'drinks etc. while in case of technically complex products the speed is much lower.

The Models of amil0 Decision Ma1in2

&ertain products and services like washing machine, an automobile, buying a house, planning for a holiday are all family decision. embers of the family interact with each other in the process of buying decision. These interactions are determined by the different consumption related 0R5/-:1 played by the family. These roles are as follows2' &3 $7#/9-7&-R' The family members who provide information, and guide others, in the other words influencing the decision. &hildren may come back from school and tell about lovely visiting place, their classmates have visited@ the wife visited the newly opened super market and tells her husband to visit it with the family over the weekend. -3 =AT- 4--8-R:' The family members who control the flow of information and guidance to buy . the house wife want to buy a particular brand of washing machine, she will with hold the information about other brand and emphasis the information about the favored brand , influencing the buying process of the washing machine. /3 .-&$.-R:' The family members who have powers (single or >ointly) to decide the buying of the product or services. 3usband and wife >ointly decide the place to be visited during the summer vocation. ,ife alone decide the powder which she is going to purchase, mother and children decide which curtain will better for the children bed room. They all decider with in the family. .3 +9<-R:' The family member or members who actually buy the product or services. The child must be the decider of which drinking chocolate he want to consume but mother is the person who is buying it. H. 8R-8AR-R:' The family members who transform or prepare the product in to the form in which it is consumed. The house wife may prepare the lunch by using vegetables, spice, oil, etc. bought from the market. Role played by the different family members will be different products. #or -x. other goes to buy chocolate drinks for her children. After going through various brand, she decide to buy one. :he is decider and buyer both but not the user, husband is getting watch of his wife"s choice. 3e is only a buyer while his wife is the decider

an user. in case of product or services which is >ointly used by every one , like a planned vocation, furniture watching a movie are all >ointly family based decision.

Conclusion
A model represents theoretical construction of phenomenon which is thought to be inter' related and significant in influencing the outcomes of a specific problem. odel consumer behaviour work as a guideline in marketing problem and its importance cannot be ruled out.