Various Models of Consumer Behavior and its Marketing Application

Presented by: Mansi Shah Meera Matthew Prathamesh Pawar Sukiran Mehta Tanya Dsouza Tony Joel Mendonca

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Consumer Behavior Models

Consumer Processing Models (CPM)

Hedonic, Experimental Models (HEM)

Rational, Cognitive approach

Driven by Fun, fantasies and feelings

Nicosa Model

NICOSIA MODEL

Francesco Nicosia was one of the first to develop consumer behavior model in the early 1960s He shifted the focus from the act of purchase itself to the more complex decision process that consumers engage in about products & services

Field 1- Consumer Attitudes

Sub field 1: deals with the firms marketing environment and communication efforts that affect consumer attitudes, the competitive environment, characteristics of target market

Sub field 2: specifies: the consumer characteristics e.g., experience, personality, and how he perceives the promotional idea toward the product
in this stage the consumer forms his attitude toward the firms product based on his interpretation of the message.

Field 2- Search and evaluation

Field 3: The act of the purchase

Transformation of motivation into the act of buying

Evaluation of options leading to motivation would result in action

Field 4: Feedback
Analyses the feedback of both the firm and the consumer after purchasing the product

Howard Sheth Model

HOWARD-SHETH MODEL
Attempt to explain brand choice behaviour within the constraints of: Limited Individual Capacities Incomplete Information 3 Levels of learning/stages of decision making: Extensive problem solving Limited problem solving Routinized response behaviour

 Early stage of decision making Buyer has little information of brands Buyers choice criteria is not yet formed

Extensive Problem Solving

 Advanced stage of decision making Choice criteria are not defined Buyer undecided about the best brand

Limited problem solving

 Choice criteria are well defined Strong predisposition towards one brand Routinized response behavior Little evaluation of alternatives by the buyer

Postulates 4 sets of concepts/constructs or variables:Inputs Perpetual and Learning constraints Outputs Exogenous Variables

Criticisms to the Howard-Sheth Model

The model has been only been partially tested It does not explain the non-systemmatic behaviour The model does not recognize the exogenous factors but explains little on the same

Engel Kollat Blackwell Model

Engel-Kollat-Blackwell model

The EKB model of consumer behavior was originally designed to serve as a framework for organizing the fast growing body of knowledge concerning consumer behavior. This is part of Consumer Processing Model (CPM)

The Engel-Kollat-Blackwell model consist of four components

I. Information processing

II. Central control Unit

III. Decision Process and IV. Environmental influences

i. Information processing:
a) b) c) d) e) Exposure to pool of stimuli Attention Comprehension Retention Memory

ii. Central Control Unit:

The stimuli received are processed and sent to the central control unit. a. Stored information and past experience about the product/ brand which serves as a memory for comparing different alternatives b. Evaluative criteria which the consumer uses in judging the alternatives c. General and specific attitudes which influence the purchase decision d. Basic personality traits, which influence how the consumer is likely to respond to various alternatives

Personality Traits

Evaluation Criteria An Individual (Central Control unit)

Motives Attitudes

Past Info

iii. Decision process:

The decision process component of the model consists of: a. Problem recognition b. Internal search and evaluation c. External search and evaluation d. Purchase processes e. Decision outcomes
(Information input, Information processing, Product-brand evaluation, General motivating influences)

iv. Environmental Influences:

The environmental factors that may influence the consumers purchase decision are income, culture, family and social class.
Depending on the specific product under consideration, these factors may have a favorable or unfavorable influence on the purchase decision.

Marketing applications
Consumer buying process is of several stages than a single act. The decision process can be classified. 1. Extended Decision Process 2. Limited Decision Process 3. Habitual Decision Process

Reduction of Cognitive Dissonance

Lawsons Model

Lawsons model
High Involvement Significant differences between brands Few differences between brands Low Involvement

Complex Buying Behavior

DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

Model of Buyer Behavior - Lawsons model

Marketing and Other Stimuli Buyers Black Box Buyer Responses

Marketing
Product Price Place Promotion

Buyer Characteristics Buyer Decision Process

Product Choice Brand Choice Dealer Choice

Other
Economic Technological Political Cultural

Purchase Timing Purchase Amount

Cultural

Factors Influencing Consumer Behavior-Lawsons model

Social Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Reference groups Family Roles and status

Culture Subculture Social class

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Application of Lawsons Model

Happens subconsciously during all purchases Most often for expensive purchases Example: decision to purchase a new house or real estate / car / electronics, etc. Rarely affects the purchase decision of FMCG segment

Multi attribute Attitude Model

Multi attribute Attitude Model

"Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs".

Sheth-Newman Gross Model of Consumption Values

Sheth-Newman Gross Model of Consumption Values

Functional Value

Conditional Value Consumer Choice Behavior

Social Value

Epistemic Value

Emotional Value

Functional value

Follows Economic utility theory

Economic Rationalism
Based on attributes of consumable item.

Social value

Highly visible products Items chosen on perceived social image Social Value derived from symbolic importance

Emotional value

Decisions based on; Products potential to arouse emotions Aesthetics, such as beauty and artistry

Epistemic value

Applies for new products & services Curiosity, novelty & knowledge

Conditional value

Value strongly tied to use in specific context

Temporary in nature
Arises only when circumstances create a need

Application
Higher sales
Better Differentiation Also explains product adoption Explains the need for brand building

Helps in designing of advertisements and promotional efforts.

Limitation

Cannot be used for organizational purchase behavior because it does not take influential factors under consideration

Also cannot be used for buyers who are not the users.