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Various Models of Consumer Behavior and its Marketing Application
Presented by:Mansi ShahMeera MatthewPrathamesh Pawar 35Sukiran Mehta 54Tanya D’souzaTony Joel Mendonca 57
Consumer Behavior Models
Consumer Processing Models (CPM)
1
Rational, Cognitive approach Driven by Fun, fantasies and feelings
Hedonic, Experimental Models (HEM)
2
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 AttitudesSub field 1: deals with
•the firm’s 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 firm’s 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
Extensive Problem Solving
• Early stage of decision making
• Buyer has little information of brands
• Buyer’s choice criteria is not yet formed
Limited problem solving
• Advanced stage of decision making
• Choice criteria are not defined
• Buyer undecided about the best brand
Routinized response behavior
• Choice criteria are well defined
• Strong predisposition towards one brand
• Little evaluation of alternatives by the buyer
Postulates 4 sets of concepts/constructs or variables:-InputsPerpetual and Learning constraintsOutputsExogenous 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) Exposure to pool of stimulib) Attentionc) Comprehensiond) Retentione) 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
An Individual(Central Control unit)
Personality Traits
Motives
Attitudes
Past Info
Evaluation Criteria
iii. Decision process:
The decision process component of the model consists of:
a. Problem recognitionb. Internal search and evaluationc. External search and evaluationd. Purchase processese. Decision outcomes
(Information input, Information processing, Product-brand evaluation, General motivating
influences)
iv. Environmental Influences:
• The environmental factors that may influence the consumer’s 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 Process2. Limited Decision Process3. Habitual Decision Process
• Reduction of Cognitive Dissonance
Lawson’s Model
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
Lawson’s model
ComplexBuying
Behavior
Variety-Seeking
Behavior
Dissonance-Reducing Buying
Behavior
HabitualBuying
Behavior
Model of Buyer Behavior - Lawson’s model
Marketing and Other Stimuli
MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural
Buyer’s Black Box
Buyer CharacteristicsBuyer Decision Process
Buyer Responses
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Amount
Factors Influencing Consumer Behavior-Lawson’s model
Social
Referencegroups
Family
Rolesand
status
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerception
LearningBeliefs andattitudes
Psycho-logical
MotivationPerception
LearningBeliefs andattitudes
BuyerBuyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
Application of Lawson’s 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
"Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs".
Multi attribute Attitude Model
Sheth-Newman Gross Model of Consumption Values
Sheth-Newman Gross Model of Consumption Values
Consumer Choice
Behavior
Conditional Value
Functional Value
Emotional ValueEpistemic Value
Social 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
Higher sales
Better Differentiation
Also explains product adoption
Explains the need for brand building
Helps in designing of advertisements and promotional efforts.
Application
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.
Limitation