chap2behaviourmodels-110520221601-phpapp01.ppt

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MKT 223- CONSUMERBEHAVIOUR

Chapter 2-Consumer

Behaviour ModelsCONTENTS

MODEL OF BUYING BEHAVIOUR

CONSUMER BUYING SITUATION

BUYER ROLES

BEHAVIOURIST AND COGNITIVIST

THEORIES OF CONSUMER BEHAVIOUR


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Consumer Buying Behavior Consumer Buying Behavior refers to the

buying behavior of final consumers -

individuals & households who buy goodsand services for personal consumption.

All these consumers make up theconsumer market.

The central question for marketers is:How do consumers respond to various

marketing efforts the company might use?


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HighInvolvement

Significant

differencesbetween

brandsFew

differencesbetween

brands

LowInvolvement

Types of Buying DecisionBehaviorLawsons model

(Fig.2.1)

Complex

BuyingBehavior

Variety-

SeekingBehavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior


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Model of Buyer Behavior

(Fig. 2.2)- Lawsons modelMarketing andOther Stimuli

MarketingProductPricePlacePromotion

OtherEconomicTechnologicalPoliticalCultural

Buyers Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount


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Factors InfluencingConsumer Behavior-Lawsons

model (Fig.2.3)

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

Occupation

Economicsituation

LifestylePersonality

andself-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Cultural


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SOURCES OF EXTERNAL INFLUENCES ONCONSUMER BEHAVIOUR-Wilkie (1990)

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

SCOPEthe sweep or reach of the impact

STRENGTH- the power to impact behaviourIMMEDIACYdirect or focused influence on behaviour; the impact

is felt with no or little influence coming into play.


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Buyer Decision Process

(Fig. 2.4)-Lawsons model

PostpurchaseBehavior

PurchaseDecision

InformationSearch

Need

Recognition

Evaluationof Alternatives


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BUYER ROLESINITIATOR

First individual who suggests product/service shouldbe 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 thebuying process at what, how , when and where tobuy (store choice), etc.

BUYER

The individual who actually makes the purchase

USER

The individual who consumes or users theservice/product.


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FACTORS INFLUENCINGSHOPPERS STORE CHOICEKelly and Stephenson ( 1967) identified 8 factors ;1. General store characteristics-reputation, no of

stores

2. Physical characteristicsdcor,cleanliness,

checkout services.3. Conveniencetime, parking etc.

4. Productsvariety, dependability, quality.

5. Prices chargedvalue special sales.

6. Personnelcourteous, helpful, friendly.7. Advertisinginformative, aggressive, believable.

8. Friends perception of the store- well known, liked,reccommended.


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TYPES OF PURCHASINGRISKS-Consumer Product

Lines1.ROUTINE BUYING

2. LIMITED PROBLEM SOLVING3. EXTENSIVE PROBLEM

SOLVING.


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New Task Buying

InvolvedDe

cision

Making

Modified Rebuy

Major Types of Buying

Situations-Business products

Straight Rebuy


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ASSUMPTION ON CONSUMERBEHAVIOUR-Behavioural versus

Cognitivists view

BEHAVIOURIST

COGNITIVIST

BEHAVIOURIST VERSUS


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BEHAVIOURIST VERSUSCOGNITIVIST APPROACHES

BEHAVIOURIST Observed behaviour is

all important

People are info

transmitters People are all alike

Behaviour is rational

Human characteristics

can be studiedindependently.

Emphasis is on what aperson is and does.

Behaviour can be

understood

COGNITIVIST What goes on in a

persons mind is the keyto comprehension.

Behaviour is notpredictable

People are infogenerators

Each person is unique

Behaviour is irrational

People must be studiedas a whole

Emphasis is on what a

person can be. Behaviour can never be


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THEORIES OF CONSUMER

BEHAVIOUR The Engel-Kollat-Blackwell

(EKB) model. Howard & Sheth model

Maslows Hierarchy model


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The Engel-Kollat-

Blackwell (EKB) model. First developed in 1968.

A key feature of the EKB model is the

differences between high and lowinvolvement as part of the buying process.

High involvement is present in the high riskpurchase

Low involvement is present in the low riskpurchase.


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Models of Consumer BehaviourThe Engel-Kollat-Blackwell (EKB)

model Consumers are seen as active agents

following rules of behaviour, fairly easy to

follow and implement because they requireonly a limited amount of information andcapability of elaboration

For instance, a consumer, being aware of a

certain need and believing a certain goodcategory satisfies it, might fix a maximumprice he/she can afford and search for thebest good availableunder such a constraint.


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Howard & Sheth model The model claims that a persons purchase

decision is often influenced by more than oneindividuals.

A family buying decision involves multipleinfluences from its members.

This theory shows the concept of rolestructure, that is individuals members of thefamily takes on roles such as collectinginformation, deciding on the information

budget, etc. The theory also states that retailers

/businesses are not only dealing with ahomogeneous unit but a collection of

individuals with different goals, needs,motives and interests.

M d l f C B h i


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Models of Consumer BehaviourHoward & Sheth model

Acoording to the model, the 'inputs' (stimuli) that theconsumerreceives from his or her environment are:

1. significative- the 'real' (physical) aspects of theproduct or service (which the co make use of)

2. symbolic -the ideas or images attached by thesupplier (for example by advertising)

3. social - the ideas or images attached to the productor service by 'society' (for example, by referencegroups)
http://en.wikipedia.org/wiki/Inputhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Input


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The 'outputs' are what happens, theconsumer's actions, as observable results ofthe input stimuli.

Between the inputs and outputs are the'constructs', the processes which theconsumer goes through to decide upon his orher actions. Howard and Sheth group theseinto two areas:

1. perceptual - those concerned with obtainingand handling information about the productor service

2. learning - the processes of learning that leadto the decision itself

Models of Consumer Behaviour

-Howard & Sheth model


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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 andoffer the right product at the right price,promotion and place.


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Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs(sense of belonging, love)

Esteem Needs(self-esteem)

SelfActualization

(Self-development)

Maslows Hierarchy of Needs

(Fig. 2.5)


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Awareness: Consumer is aware of

product, but lacks information.

Interest: Consumer seeks

Information about new product.Evaluat ion: Consumer considers

trying new product.

Trial: Consumer tries new

product on a small scale.

Adopt ion : Consumer decides

to make regular use of product.

Stages in the Adoption

Process


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Adopter Categories (Fig. 5.7)

Percentage

ofA

dopters

Time of Adoption

Early Late

Innovato

rs

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority


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Divisibility

Can the innovation

be used on atrial basis?

ComplexityIs the innovation

difficult tounderstand or use?

CommunicabilityCan results be easily

observed or describedto others?

CompatibilityDoes the innovation

fit the values andexperience of thetarget market?

Relative AdvantageIs the innovation

superior to existing

products?

Influence of Product Characteristics

on Rate of Adoption

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