Notes On Consumer Behavior
Notes On Consumer Behavior
Notes On Consumer Behavior
2.1 INTRODUC1·ION
identifying, among others, the objectives of the study together with the
This chapter will focus on the area of consumer behaviour by first considering a
consumer behaviour, impacting the marketing field of study. Once the human
behavioural models have been addressed, the chapter will focus on models of
consumer behaviour.
followed by models of human behaviour in Section 2.3. Section 2.4 will represent
This section focuses on the consumer behaviour field of study and will explore
the origin of a consumer focus in marketing. Since the term "consumer" will be
used and quoted from all the sources consulted in this chapter, it is important to
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2 ."'" .....~.
first define the term "consumer". Walters (1974: 4) provides such a definition by
stating that "A consumer is an individual who purchases, has the capacity to
purchase, goods and services offered for sale by marketing institutions in order
behaviour (discussed in Section 2.3). Human behaviour, therefore, " ... refers to
the total process whereby the individual interacts with his environment" (Walters
1974: 6).
implies that every thought, motive, sensation and decision that is made every
day, is classified as human behaviour. Belch & Belch (1990: 91) provide a link
behaviour has been defined as the study of human behaviour in a consumer role.
human actions, namely those concerned with the purchase of products and
behaviour.
individuals decide whether, what, when, where, how, and from whom to purchase
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behaviour as: "... the study of the buying units and the exchange processes
and ideas". This definition focuses on buying units in an attempt to include not
only the individual but also groups that purchase products or services.
Schiffman & Kanuk (1997: 648) define consumer behaviour as: "The behavior
disposing of products, services, and ideas." Schiffman & Kanuk (1997: 6-7)
the study of how individuals make decisions to spend their available resources
why, when, where and how often they purchase and how they use the purchased
According to Schiffman & Kanuk (1997: 6-7), two different types of consumers
This chapter and this study will focus on the individual, personal consumer, who
4), states that: "those actions directly involved in obtaining, consuming, and
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precede and follow these actions". More recent descriptions or definitions (which
in essence do not differ from the above) can be found in Arnould, Price &
The definitions provided above should provide sufficient clarity on the concept of
consumer behaviour. Section 2.2.2 will provide greater clarity on the origin and
According to Engel et al. (1990: 22) and Schiffman & Kanuk (1997: 8), consumer
research of its own. The concepts of the development, therefore, were heavily
and sometimes indiscriminately borrowed from other scientific disciplines, such
as psychology (the study of the individual), sociology (the study of groups), social
important field of study with the development of the so-called marketing concept.
by stating that, according to the marketing concept, marketers first need to define
The marketing concept was formulated during the 1950s and although it seems
logical, marketers never considered the concept thereof earlier. Assael (1995: 8)
provides two reasons why marketers did not use the concept earlier. The first is
that marketing institutions were not sufficiently developed to accept the marketing
concept prior to the 1950s. Advertising and distribution were geared for the
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Chapter 2
promotion and distribution of products that will meet the needs of small, diverse
market segments. The production and marketing focus before the 1950s was
interest in consumer behaviour. The Second World War, immediately after the
product scarcities were the order of the day. With the lack of competitive
marketing approach for this era, according to Schiffman & Kanuk (1997: 10), is
assumption of this orientation, according to Schiffman & Kanuk (1997: 10), was
that consumers were not willing to purchase products, unless they were actively
and aggressively persuaded to do so. The selling orientation did not consider
the product by means of word-of-mouth if they were not satisfied with it.
In the early 1950s marketers realised that they could sell more products more
to acknowledge consumer needs as a key to success for both survival and profit
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2 .... ~.....~~
decisions. As such, their motives and actions determine the economic viability of
the firm".
To be a successful seller of products and services (as can be concluded from the
needs of consumers.
Section 2.2 provided an insight into the consumer behaviour field of study.
behaviour will be discussed in Section 2.3, providing greater clarity regarding the
uncover the reasons why people buy, as they are subject to many influences.
One reason is that humans are greatly influenced by their psyche, which
Runyon & Stewart (19B7: 694-695) explain the theory of human behaviour by
stating that it represents the beliefs held regarding the nature of human beings as
well as the causes of their behaviour. Human beings can therefore be viewed
from many perspectives. If, for instance, human beings are viewed from an
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incentives. If, however, viewed from a social theory perspective, marketers may
values.
behaviour, it is important to note that the models proposed are viewed as being
appropriate for different marketing situations. Despite the above view, models of
attempt to provide insights into why human beings, and therefore consumers,
discussed together with marketing applications based on the findings of Kotler (in
Gould, 1979: 34-46). The models of human behaviour discussed below are the
addition to these four models, the theory of Maslow's hierarchy of needs will be
discussed to provide a perspective on the importance of understanding the
According to the Marshallian economic model, individual buyers will spend their
income on goods that will offer the greatest satisfaction, depending on their taste
The antecedents for the Marshallian theory can be traced back to both Adam
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Chapter 2
Bentham, who viewed man as carefully calculating and weighing expected pains
and pleasures of every contemplated action, refined this view. By the time Bentham's theory was
applied to consumer behaviour late in the 19th century, the
The theoretical work of Alfred Marshall, who was the consolidator of the classical
method to examine the effect of change in a single variable, for example price,
when all other variables were held constant, based on simplified assumptions. In
the quest for greater realism, Marshall "reasoned out" consequences of the
Theory, where the economic man maximises his utility and does this by carefully
(1987: 695) add to the discussion by stating that Marshall used money as the
specific need could be equated and compared with other needs in terms of cost.
The value of the Marshallian model for the purposes of behavioural science can
One point of view is that the model is tautological and therefore neither true nor
false. The model is also not very informative because it simply portrays the buyer
A second view is that the model provides logical norms for buyers who want to
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behaviour. The consumer is not likely to employ an economic analysis for all
therefore not use the economic principles for choosing between two low-cost
products but may apply an economic analysis when deciding to purchase a new
house or car.
The first hypothesis offered is that the lower the price of a product, the greater
the sales will be for that product. A second hypothesis is that the lower the price
of a substitute product is than that of a specific product, the greater the sales of
Third, the sales of a product will be higher, provided it is not an inferior product, if
the real income is higher. The last hypothesis states that greater volumes of
It should be noted that these hypotheses are intended to describe the average
factors alone cannot explain all variations in the sales and buying process and
also that the fundamentals of how brand and product preferences are formed are
ignored in this theory. The model offers a useful frame of reference for analysing
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and evolved as a social thinker through the influence of the science of social
anthropology.
where man conforms to norms of its larger culture and to more specific standards
Gould; 1979: 41). In essence this implies that human behaviour and needs are
Based on the theory of the model, Veblen hypothesised that, for the so-called
purchasing conspicuous products, for example cars and houses or even less
overstated. For example, not all people consider the leisure class to be a frame
of reference and many people aspire to the social class immediately above their
current social class. In addition to the above, more affluent people of the society
would rather underspend than overspend on conspicuous items since they would
A final comment on the model is that although Veblen was not the first
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2
The importance of the Veblen ian model, according to Kotler (in Gould, 1979:
42), to the marketer is that, in order to determine the demand for products, the
social influences, which include social class, subculture, reference groups and
face-to-face groups.
The well-known Pavlovian theory of learning has its origin in the experiments of
bell each time before feeding a dog. Pavlov soon discovered that he could
induce the dog to salivate by ringing the bell regardless of whether or not food
was offered to the dog. From this experiment, Pavlov could conclude that
model of human behaviour, based on four central concepts, namely drive, cue,
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f'hantar2
The four central concepts of the Pavlovian theory are briefly discussed below.
refer to basic individual factors, such as hunger, thirst, pain, cold and sex.
Learned drives, which are derived socially, include factors such as COM
Cues are furthermore perceived as weaker stimuli in the individual and the
which stimulates the thirst drive. The response will be influenced by this
cue as well as other cues, for example time of day and availability of other
thirst-quenchers.
cues. It should, however, be noted that the exact configuration of cues will
not necessarily generate the same response. The same response
where the same response will be repeated when the same configuration of
the habit may eventually be extinguished, since the strength of the habit
decreases.
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reinforcement.
An example of the usefulness of the model for the marketer would be the
may attempt to form new habits for its new brand by extinguishing existing brand
habits. A challenge to the organisation will be to persuade consumers to try the
new brand by deciding between using strong and weak cues. Although strong
cues, for example samples of the product, may be the more expensive
of the model, is that sufficient quality should be built into the brand to create a
The second area in which the Pavlovian model offers insight, according to Kotler
(in Gould, 1979: 38), is in the form of guidance for advertising strategy. The
advertising also has two desirable effects (Kotler, in Gould; 1979: 38). Repetition
(or frequency of association, according to Belch & Belch, 2001: 125) firstly
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product-related drives, for example hunger may be identified for candy bars and
status for motor vehicles.
The well-known Freudian model of human behaviour, according to Kotler (in Gould, 1979: 39), is
regarded to have a profound impact on 20th century thought,
which man has been exposed in the past 500 years. Freud attacked the idea
that man reigned over his own psyche, whereas preceding philosophical views
by Copernicus and Darwin respectively destroyed the view that man was at the
centre of the universe and opposed the idea that man was considered a special
creation.
Kotler (2000: 172) summarises the theory by stating that Freud assumed that
resulting in people not being able to fully understand their own motivations.
Kotler (in Gould, 1979: 39) provides more detail on Freudian theory by explaining
that, according to the theory, the child enters the world driven by instinctual
needs that cannot be satisfied by itself. The child quickly and painfully realises
its detachment from the world and at the same time its dependence on it.
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Freudian theory further propagates that, as human beings grow, their psyche
(called the id) remains the source for strong urges and drives. Solomon (1996:
134) adds by stating that the id is oriented toward immediate gratification,
forming the "partly animal" portion of the brain. A second part, called the ego,
develops into a conscious planning core where outlets for drives are uncovered,
responsible (according to Solomon, 1996: 134) for mediating between the id and
the superego. The superego, the final concept of the model, is responsible for
avoid the pain associated with guilt and shame, referred to by Solomon (1996:
The urges that human beings feel, especially sexual urges, cause shame and
guilt and are therefore repressed from the conscious. A person therefore
resulting in either the denial of such urges or the transformation thereof into
mental breakdowns where the ego is not capable to maintain the balance
between the oppressive power of the superego and the impulsive power of the id.
A possible impact of the model, in practical terms, is that since the individual is
not able to understand its own behaviour, it is even more difficult for the casual
certain expensive vehicle is bought, the reply may be that the deciding factors
were speed, comfort and appearance. At a deeper level, the reasons may
The Freudian model has been refined a number of times. Changes include the
three parts of the psyche, where it is regarded as theoretical concepts rather than
Kotler (in Gould, 1979: 40) continues by stating that instead of focusing on sexual
urges in psychic development, like Freud who focused on oral, anal and genital
stages together with possible fixations and traumas, other philosophers refined
the theories of Freud. For example, Adler focused on the desire for power and
mentioned above, greatly enriched and extended the interpretative value of the
Kotler (in Gould, 1979: 40) suggests that the most important marketing
implication of the Freudian model that marketers should note, is that consumers
example, the change of a bar of soap from a square to a round shape has
involved, may alienate housewives since the easy life may cause a sense of
guilt.
The importance of the model can also be viewed from a research perspective.
While direct observation and interviewing can be used to obtain more superficial
characteristics, for example age, gender and family income, these methods of
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research cannot be used for establishing the mental state, which is believed to
beneficial insights and inspiration in terms of advertising and packaging. Belch &
Belch (2001: 112) support this view by stating that insights gained from
Such emotional appeals are often more effective than rationally based appeals.
of human needs. The importance of motivation and needs within the study of
consumer behaviour will be noticed when the models of consumer behaviour are
discussed later in this chapter. Important to note, as will be seen in Chapter 3, is
that the theory of the consumer decision-making process commences with the
According to Schiffman & Kanuk (1997: 95-96), Maslow's theory postulates five
basic levels of human needs, ranging from lower-level (biogenic) needs to more
Only once a lower-level need is satisfied, will a new (higher-level) need emerge,
motivating the consumer to fulfil such a need. The process continues, leading
the consumer to aspire to the fulfilment of higher-level needs, each time higher
than the need before. Loudon & Della Bitta (1993: 334) support this view by
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between the levels. Physiological needs represent the most basic needs that
are required to sustain life and include food, clothing and shelter. Safety and
security needs concern more than physical safety and include order, certainty
and control over the environment and own life. The third level, social needs
(referred to as affiliation needs by Churchill & Peter, 1998: 143), refers to needs
Egoistic needs (called esteem needs by Belch & Belch, 2001: 110 and Churchill
& Peter, 1998: 143) comprise inwardly-directed needs (for example concerned
(including, for example, the need for reputation, status and prestige). The final
Worth mentioning is that Maslow believed that most people do not satisfy their
egoistic needs sufficiently, thereby keeping them from ever moving to the final,
self-fulfilment needs.
According to Schiffman & Kanuk (1997: 100) the major problem of Maslow's
measuring precisely how satisfied one need must be before a next, higher need
becomes operative.
Solomon (1994: 94) continues by stating that the influence thereof on marketing
satisfy basic needs before progressing to higher-level needs, where one product
(1994: 94) and Schiffman & Kanuk (1997: 100) argue that the theory may be
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2
Western cultures, with other cultures possibly questioning the order of levels
specified by the model. For example, Eastern cultures may regard the welfare of
Despite the criticism on the Maslow theory, Schiffman & Kanuk (1997: 100)
satisfy each of the need levels. In addition to the above, the hierarchy offers a
for their products. The theory is adaptable in two ways, firstly enabling marketers
Solomon (1994: 94) indicates the relevance of the hierarchy of needs by stating
times. This view is supported by Walters (1974: 108) who states that the
section focuses on models of consumer behaviour and will show how the
provide an even greater focus (as far as the theoretical overview is concerned)
by providing insights on how the Internet can possibly influence the consumer
decision-making process.
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behaviour and the impact thereof on consumer behaviour. It only focused on one
process, thereby providing a guide for further study and research on the subject
of consumer behaviour.
Section 2.4 will focus on the definition of models of consumer behaviour, the
consumer behaviour.
to first define the term "model". Schiffman & Kanuk (1997: 652) provide such a
investigation."
Engel & Blackwell (1982: 677) add to the above by explaining that a model is a
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elements portrayed within the model and represents the nature of relationships
A model can therefore be viewed as a testable "map of reality" and its utility lies
The definitions above should prove sufficient in an attempt to clarify the meaning
According to Engel & Blackwell (1982: 678), the purpose of a model, namely to
Lilien & Kotler (1983: 205) point out that comprehensive models of consumer
analysis.
Runyon & Stewart (1987: 698) criticise comprehensive models by stating that
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often consist of little more than elaborated flowcharts, designed to reflect the
not adequately evaluate the relative importance of the variables involved in the
As a final criticism, Runyon & Stewart (1987: 698) state that contemporary
relevance of models. Engel & Blackwell (1982: 678) provide clarity regarding the
specific situation. Engel & Blackwell (1982: 678) therefore suggest that a
workable model should delineate the variables associated with the consumer
decision process, the general relations that exist among variables, and the
situations.
listed below:
a) Explanations are provided for behaviour: Engel et al. (1990: 475) list
whether implicit or explicit. This implies that each person has a concept of
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Chapter 2
respect to the comprehensiveness of competing models and the accuracy
(1983:204) support this view by adding that all major variables that models
Lilien & Kotler (1983: 204) is supported by Runyon & Stewart (1987: 698),
& Blackwell (1982: 677) pOint out that most analysts of consumer
g) Avenues for fruitful research are revealed: Engel & Blackwell (1982:
678) point out that carefully designed models are often the source of
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Chapter 2
Engel et al. (1990: 475) add to the above by stating that the gaps
475), are provided through the proper use of a model that discloses
i) The final advantage, offered by Runyon & Stewart (1987: 698) and
subject of consumer behaviour over the past years as well as to show the
consumer behaviour.
discussed will include historic versions by the same authors, often attached in
authors as more research on the subject is conducted. The second, even more
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Blackwell and Miniard. The detailed discussion of the Engel, Blackwell & Miniard
(EBM) model will show the difficulty of understanding consumer behaviour due to
able to draft effective strategies aimed at meeting consumer needs. Although the
it was decided to focus on the EBM model (1995 version), since the discussion in
The discussion below will focus on four historic models of consumer behaviour,
namely Bettman's information processing model, the Nicosia model, the Howard
Sheth model and the Howard mode\. As stated above, the Engel, Blackwell, and
information processing. Lilien & Kotler (1983: 206) add that the model provides
finally, how decisions are made. The Bettman information processing model is
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attention.
attention is influenced by the goals pursued and therefore activates the search
for information. The evaluation component of the model determines when
The final element of the basic hierarchy, namely consumption and learning,
focuses on the purchase and consumption of the product and offer a new source
of information to the consumer. The final stage in the basic hierarchy will,
the way things were, and by the stimulus itself, implying the way things are.
The implications of proceSSing capacity, the second component, are that capacity
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and motivation. Runyon & Stewart (1987: 708) continue by pOinting out a
relation between processing capacity and education, intelligence and previous
experience.
outside the consumer's memory. Runyon & Stewart (1987: 710) continue by
listing advertisements, other people and other sources external to the consumer
as external sources. The cost of information search versus the benefits of the
information, together with the availability of information, time pressure and the
difficulty of the choice task, will determine the level of information search.
consumers are interruptible and not single-minded when pursuing a goal. The
scanner monitors the environment in an effort to note conditions that may warrant
Considering the Bettman information processing model, Lilien & Kotler (1983:
208) suggest that the model represents an attempt to develop a complete theory
In addition to the above, the model offers a broad view of purchase decisions,
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position decision rules or choice heuristics within the broader concept of decision
making.
The main limiting factors to the model, according to Lilien & Kotler (1983: 208),
are that the model is not directly operational and does not provide quantitative
support for marketing decisions. Runyon & Stewart (1987: 710) add to the above
involving interactions and feedback, these are not specified in the model and
Despite the limitations, the model provides insight in terms of the structure of the
process and guidance on the kind of issues that can be expected to affect and
influence consumer choices. Runyon & Stewart (1987: 710) add that the model
processing.
According to Runyon & Stewart (1987: 699), the Nicosia model provides a
Schiffman & Kanuk (1987: 653) provide a simplistic explanation of the model by
consumers through marketing actions and the consumers in return influence the
organisation through their purchase actions (or lack of action if products are not
purchased).
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'ha,.,tor2
Runyon & Stewart (1987: 701) continues by stating that if the reaction or attitude
resulting from field one is favourable, the consumer will search for the product
and evaluate it in terms of other alternatives. Schiffman & Kanuk (1987: 654)
add that the output of the second field is motivation to purchase the
organisation's brand. The evaluation could, however, also lead to rejection of the
brand although the model illustrates a positive response. The positive evaluation
According to Schiffman & Kanuk (1987: 654), the final field of the Nicosia model,
field four, consists of two types of feedback from the purchase experience. The
first type of feedback relates to the organisation where sales data will be
obtained and the second to the consumer in the form of experience, leaving the
consumer relating to the product will affect the predisposition and attitudes with
Limitations of the Nicosia model according to Runyon & Stewart (1987: 701), are
Engel, Blackwell & Kollat (1978: 548) criticise the Nicosia model by claiming that
the model never received the necessary elaboration and empirical support nor
In conclusion to the Nicosia model, Runyon & Stewart (1987: 701) express the
behaviour.
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add respectively that the model attempts to explain rational brand choice
Schiffman & Kanuk (1987: 654) explain the Howard-Sheth model (depicted in
Figure 2.4) a model that explicitly distinguishes between three different stages or
knowledge and beliefs about brands. The consumer actively seeks information
Foxall (1990: 12) adds that in order to reduce brand ambiguity, the consumer is
Limited problem-solving occurs when the consumer cannot fully assess the
the brands are only partially established. According to Foxall (1990: 12). other
formed choice criteria, know a few brands well and favour them equally because
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2
portrayed by the mass media and sales people and influence the consumer
indirectly. The third type of stimuli is provided by the social environment of the
consumer and includes social class, family and reference groups. The three
types of stimuli provide input to the consumer regarding the product class or
specific brands.
The second variable, perceptual and learning constructs, forms the central
these constructs are treated as abstractions that are not defined operationally or
directly measured.
The perceptual constructs are concerned with how the consumer receives and
processes information obtained from input stimuli and'other parts of the model,
unclear regarding information and its meaning received from the environment,
stimulus ambiguity occurs, while distortion of information received by the
regarding products in the evoked set and buying intentions. The proposed
interaction between the perceptual and learning variables together with variables
Runyon & Stewart (1987: 704) provide additional information on the second
variable, combining perceptual and learning constructs into a single term, called
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interpreting input stimuli and are characterised by the fact that changes in them
can only be inferred from output variables, since they are not observable.
The third variable in the model, outputs, represents the possible response to
stimuli by the consumer and includes five variables, namely attention, brand
The final variable, exogenous variables, is not depicted in the model, since it is
not perceived to be directly part of the decision-making process. The reason for
mentioning this variable is that it should impact on the segmentation efforts of the
The value of the Howard-Sheth model, according to Runyon & Stewart (1987:
706), is that the model attempts to identify and organise major variables that may
Criticism towards the model, highlighted by Runyon & Stewart (1987: 706), is that
the hypothetical constructs portrayed in the model are not operationally defined
speculative.
The Howard model has been revised a number of times from the early 1970s to
the current version published in 1994. It should be noted that the original model
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Chapter 2
by Howard (1974 version), according to Engel et al. (1978: 553), was based on
revisions from the Howard-Sheth model. The model indicates the revisions that
empirically. The testable equations of the Howard model ensure that the model
can be evaluated in two different, yet related, ways. The model can first be
of the theory itself. Secondly, it can be measured empirically in terms of its utility
According to Engel et al. (1978: 553), the 1974 version of the Howard model was
revised by other authors, based on what was learned from the model. The
revision was initiated due to some of the variables sited being difficult to define
operationally, while other variables were difficult to measure, as well as the fact
level of noise. The result of the revision of the 1974 model by Howard was the
1977 model, showing a scant relationship to the 1969 Howard-Sheth model. The
portrayed in the model, although noise of the data was still noted.
The 1974 and revised 1977 versions of the Howard model are shown in
the 1974 model lists 12 functional relationships, whereas the 1977 version lists
only 11 relationships. The difference in the thought pattern of the two versions of
the model is clearly visible in Appendix 2, where the models are depicted in
figures.
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Chapter 2
to as limited problem-solving, and finally at the maturity stage, the decision state
According to the model, extended decision-making implies that the consumer has
not formed a concept of either the product class or the product category. Limited
decision-making implies that the consumer has a concept of the product category
but has not formed a concept of new brands falling into a familiar product
category.
Once the consumer has formed a concept of both the product category and all
As discussed above, it is clear that basic to all three decision categories is the
as close substitutes for each other. In view of the product category, Howard
dismisses the utility of the product life cycle for brands. The movement from
towards a state of total understanding of a brand, although not implying that the
the physical characteristics of the brand, leading to brand recognition, and feels
corl'fident to judge the quality of a brand. In addition to the above, the consumer
As could be seen from Figure 2.5, the Howard model portrays the consumer
Brand recognition (B), Attitude (A), Confidence (C), Intention (I) and Purchase
(P). The six interrelated concepts will be briefly discussed to provide greater
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Information (F) refers to the precept that is caused by stimuli, for example
information on both the functioning of the product and the form. Brand
Confidence (C).
Attitude (A) towards a brand refers to the measure of the extent to which
terms of its importance to the consumer and the multiplication of each weighting
sum being the measure of attitude. Attitude is viewed as being causally linked to
Intention (I).
regarding the correctness of their judgements about a brand and its benefits.
Intention (I) to purchase represents the mental stage reflecting the consumer's
Purchase (P), the final interrelated concept of the Howard model, occurs once
the consumer either has bought the brand or when the consumer has financially
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Chapter 2
Howard (1994: 139) as Price (Pr) and Availability (PL). Price and availability,
directly influencing Intention (I), represent the regular price of the brand and the
Place (PL) where the brand can be purchased. Although price and availability
(I) is not only influenced by Price (Pr) and Place or availability (PL). but also by
motives. Howard (1994: 159) indicates that motives represent the motives
Drawing a conclusion from the Howard model. it should be noted that the
overview of all the variables that could impact on the model, implying that some
decision-making.
The Engel, Blackwell. Miniard model has its origin in decades of work on the
authors were responsible for the evolution of the model from 1968 to its present
form, namely the eighth edition of their book on the subject of consumer
behaviour.
Important to note, as stated by Engel, Blackwell & Miniard (1986: 27), is that the
name of the model is compiled from the names of the authors, and it can
therefore be concluded that the Engel, Blackwell, Miniard model is based on the
same model as that of Engel & Blackwell, and Engel, Kollat & Blackwell