MKT 223- CONSUMER

BEHAVIOUR
Chapter 2-Consumer
Behaviour Models
CONTENTS
MODEL OF BUYING BEHAVIOUR
CONSUMER BUYING SITUATION
BUYER ROLES
BEHAVIOURIST AND COGNITIVIST
THEORIES OF CONSUMER BEHAVIOUR

Consumer Buying
Behavior

Consumer Buying Behavior refers to the

buying behavior of final consumers
-individuals & households who buy
goods and services for personal
consumption.
All these consumers make up the
consumer market.
The central question for marketers is:

How do consumers respond to various

marketing efforts the company might use?

Types of Buying Decision

BehaviorHigh
Lawsons Low
Involvement
Involvement
model
(Fig.2.1)
Complex
VarietySignificant

differences
between
brands
Few
differences
between
brands

Buying
Behavior

Seeking
Behavior

DissonanceReducing Buying
Behavior

Habitual
Buying
Behavior

Model of Buyer Behavior

(Fig. 2.2)- Lawsons model
Marketing and
Other Stimuli

Buyers Black Box

Marketing

Buyer Characteristics Product Choice

Buyer Decision Process Brand Choice
Dealer Choice

Product
Price
Place
Promotion

Other
Economic
Technological
Political
Cultural

Buyer Responses

Purchase Timing
Purchase Amount

Factors Influencing
Consumer BehaviorCultural
Lawsons
model
(Fig.2.3)
Social
Social
Personal
Personal

Culture
Culture
SubSubculture
culture
Social
Social
class
class

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

PsychoPsychological
logical

Motivation
Motivation
Perception
Perception
Learning
Learning
Beliefs
Beliefs and
and
attitudes
attitudes

Buyer
Buyer

SOURCES OF EXTERNAL INFLUENCES ON

CONSUMER BEHAVIOUR-Wilkie (1990)

SCOPE the sweep or reach of the impact

STRENGTH- the power to impact behaviour
IMMEDIACY direct or focused influence on behaviour; the impact
is felt with no or little influence coming into play.

SCOPE

STRENGTH IMMEDIACY

CULTURE

general

High

Long-term

SUBCULTURE

general

High

Long-term

FAMILY

specific

High

Long-term

FRIENDS

specific

High/low

Long term/short
term

MKT STIMULI

specific

low

Long term/short
term

Buyer Decision Process

(Fig. 2.4)-Lawsons model

Purchas
e
Evaluation Decisio
Postpurchase
n
of
Behavior

Alternatives
Informatio
n
Search
Need
Recognitio

BUYER ROLES
INITIATOR
First individual who suggests product/service should be
evaluated/purchased.
INFLUENCER
Provides view and advice which are valued by others and
can subsequently influence the final decision.
DECIDER
The individual who will take the decision in the buying process
at what, how , when and where to buy (store choice), etc.
BUYER
The individual who actually makes the purchase
USER
The individual who consumes or users the service/product.

FACTORS INFLUENCING
SHOPPERS
STORE CHOICE
Kelly and Stephenson ( 1967) identified 8 factors ;
1.

2.

3.
4.
5.
6.
7.
8.

General store characteristics-reputation, no of

stores
Physical characteristics dcor,cleanliness,
checkout services.
Convenience time, parking etc.
Products variety, dependability, quality.
Prices charged value special sales.
Personnel courteous, helpful, friendly.
Advertising informative, aggressive, believable.
Friends perception of the store- well known, liked,
reccommended.

TYPES OF PURCHASING
RISKS-Consumer Product
1.ROUTINE BUYING
Lines
2. LIMITED PROBLEM
SOLVING
3. EXTENSIVE PROBLEM
SOLVING.

Major Types of Buying

Situations-Business
products
Involved Decision
Making

New
New Task
Task Buying
Buying

Modified
Modified Rebuy
Rebuy

Straight
Straight Rebuy
Rebuy

ASSUMPTION ON CONSUMER
BEHAVIOUR-Behavioural versus
Cognitivists view
BEHAVIOURIST

COGNITIVIST

BEHAVIOURIST VERSUS
COGNITIVIST APPROACHES
COGNITIVIST
BEHAVIOURIST
What goes on in a persons
Observed behaviour is all
mind is the key to
important
comprehension.
People are info
Behaviour is not predictable
transmitters
People are info generators
People are all alike
Each person is unique
Behaviour is rational
Behaviour is irrational
Human characteristics can
People must be studied as a
be studied independently.
whole
Emphasis is on what a
Emphasis is on what a person can
be.
person is and does.
Behaviour can never be
Behaviour can be
completely understood.
understood

THEORIES OF CONSUMER
BEHAVIOUR
The Engel-Kollat-Blackwell
(EKB) model.
Howard & Sheth model
Maslows Hierarchy model

The
Engel-KollatFirst developed in 1968.
A key feature of the
EKB model is the
Blackwell
(EKB)
differences between high and low
involvement as part of the buying
model.

process.
High involvement is present in the high
risk purchase
Low involvement is present in the low
risk purchase.

Models of Consumer
Behaviour
The Engel-Kollat-Blackwell (EKB)
Consumers are seen as active agents
model
following rules of behaviour, fairly easy to
follow and implement because they require
only a limited amount of information and
capability of elaboration
For instance, a consumer, being aware of a
certain need and believing a certain good
category satisfies it, might fix a maximum
price he/she can afford and search for the
best good available under such a
constraint.

Howard & Sheth

model

The model claims that a persons purchase decision

is often influenced by more than one individuals.
A family buying decision involves multiple
influences from its members.
This theory shows the concept of role structure, that
is individuals members of the family takes on roles
such as collecting information, deciding on the
information budget, etc.
The theory also states that retailers /businesses are
not only dealing with a homogeneous unit but a
collection of individuals with different goals, needs,
motives and interests.

1.

2.

3.

Models of Consumer
Behaviour
Howard
&
Sheth
model
Acoording to the model, the 'inputs' (stimuli) that
the consumer receives from his or her environment
are:
significative - the 'real' (physical) aspects of the
product or service (which the co make use of)
symbolic - the ideas or images attached by the
supplier (for example by advertising)
social - the ideas or images attached to the
product or service by 'society' (for example, by
reference groups)

Models of Consumer Behaviour

-Howard & Sheth model

1.

2.

The 'outputs' are what happens, the consumer's

actions, as observable results of the input stimuli.
Between the inputs and outputs are the
'constructs', the processes which the consumer
goes through to decide upon his or her actions.
Howard and Sheth group these into two areas:
perceptual - those concerned with obtaining and
handling information about the product or service
learning - the processes of learning that lead to
the decision itself

MASLOWS HIERARCHY
MODEL

Theory of motivation developed by

Abraham Maslow(1943)
Illlustrated into low needs to high needs.
Comprises of physiological, safety,
belongingness, esteem and self
actualization.
Can be applied by retailers to understand
a targeted segments needs and wants
and offer the right product at the right
price, promotion and place.

Maslows Hierarchy of
Needs
(Fig. 2.5) Self
Actualization

(Self-development)

Esteem Needs
(self-esteem)
Social Needs
(sense of belonging,
love)

Safety Needs

(security, protection)

Physiological Needs
(hunger, thirst)

Stages in the Adoption

Process
Awareness:
Awareness: Consumer
Consumerisis aware
awareof
of
product,
product,but
butlacks
lacks information.
information.
Interest:
Interest: Consumer
Consumerseeks
seeks
Information
Informationabout
aboutnew
newproduct.
product.
Evaluation:
Evaluation: Consumer
Consumerconsiders
considers
trying
tryingnew
newproduct.
product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.

Early Majority
Innovators

Percentage of Adopters

Adopter Categories (Fig.

5.7)
Early
Adopters

34%

Late Majority

34%

16%

13.5%
2.5%

Early

Laggards

Time of Adoption
Late

Influence of Product
Characteristics
on Rate of Adoption
Communicability
Communicability
Relative Advantage
Can
Canresults
resultsbe
beeasily
easily
observed
observedor
ordescribed
described
to
others?
to others?

Relative Advantage
IsIsthe
theinnovation
innovation
superior
superiorto
toexisting
existing
products?
products?

Compatibility
Compatibility

Divisibility
Divisibility

Can
Canthe
theinnovation
innovation
be
used
be usedon
onaa
trial
trialbasis?
basis?

Complexity
Complexity

IsIsthe
theinnovation
innovation
difficult
difficultto
to
understand
or
understand oruse?
use?

Does
Doesthe
theinnovation
innovation
fit
the
values
fit the valuesand
and
experience
experienceof
ofthe
the
target
targetmarket?
market?