Models Of Consumer Behavior

MODELS OF CONSUMER BEHAVIOR

Introduction:
Consumers are different. Although the decision making process is the same, they have
varying perspectives and this impacts the final decision. Consumer behavior models help
a marketer in identifying and understanding a wide range of variables that could explain
consumer behavior. In this way these models help a marketer understand and predict
buyer behavior, and they help the marketer formulate better marketing programs and
strategies. Researchers have attempted to study the dynamics of consumer decision
making consumer behavior from varying orientations, and various models have been
proposed. These models have evolved from the economic paradigm of the 1940s, to the
irrational, impulsive, emotional and vulnerable social consumer of the 1950s and 1960s,
to the information processor of the 1960’s and 70s, to the cognitive and rational
consumer post 1980’s. The purchase paradigms have also evolved; there is the cognitive
paradigm, where purchase is regarded as an outcome of problem solving; the
reinforcement paradigm, where purchase is regarded as a learned behaviour; and the habit
paradigm, where it is regarded as a pre-established routine pattern of behavior.

There are four models that fall under this category, viz. Economic model, Psychological
model, Psychoanalytic model and Sociological model
i) The Economic model: The economic model explains buying behavior from an
economic perspective; The assumption is that resources are scarce viz. a viz unlimited
needs; a consumer seeks value: he wants maximum benefit at minimum cost. The
economic models showed concern as to how scarce resources were allotted to satisfy the
unlimited needs and wants.

ii) The Psychological model: The psychological model, also called the Learning Model or
the Pavlovian Learning Model, was proposed by classical psychologists led by Pavlov.
According to this model, consumption behavior and decision making is a function of
interactions between human needs and drives, stimuli and cues, responses and
reinforcements.
People have needs and wants; They are driven towards products and services (stimuli and
cues), which they purchase (response), and they expect a satisfying experience (rewards
and reinforcements); Repeat behavior would depend on reinforcement received.

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The model believes that behavior is deeply affected by the learning experiences of the
buyers; and learning is a product of information search, information processing,
reasoning and perception. Reinforcement leads to a habit formation and the decision
process for an individual becomes routinized, leading to brand loyalty. Consumers also
learn through trial and error and resultant experiences that get stored in our memory.

The limitations of studying consumer behavior with this approach is that the model seems
incomplete. Learning is not the only determinant in the buying process and the decision
making. The model totally ignores the role played by (a) other individual determinants
like perception, personality (the sub-conscious), attitudes; as well as (b) interpersonal and
group influences.

iii) Psychoanalytic model: The psychoanalytic model was proposed by Sigmund Freud.
The model tries to explain consumer behavior as a resultant of forces that operate at
subconscious level. The individual consumer has a set of deep seated motives which
drive him towards certain buying decisions

According to the model, buyers needs and desires operate at several levels of
consciousness. Not all of the behavior is understandable and explainable by the person.
Also not all of human behavior is overtly visible and explainable. Sometimes, the
behavior may not be realized and understood by the person himself. Such causes can be
understood by drawing inferences from observation and casual probing.

iv) Sociological model: The model is based on findings of Thorstien Veblen, and focuses
on the role played by social groups and social forces. A person’s consumption pattern and
buying behavior is affected by social factors; his family, friends, peers, social groups,
reference group and culture have a major role to play. According to the model, man is
perceived as a “social animal”, and thus he conforms to norms of its culture, sub culture
and groups amongst which he operates. Emulative factors and social influences have a
big role to play in consumer decision making.

MARKETING IMPLICATIONS OF MODELS

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The Howard Sheth model (1969):

Howard and Sheth used the term buying behavior and not consumer behavior as the
industrial buyers and consumers are similar in most aspects. While the model was
proposed in the 1960s, for industrial buying, the term “buyer” is used to connote both

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industrial consumers and personal consumers. Through the model, Howard and Sheth,
tried to explain buyer rationality while making purchase decisions even in conditions of
incomplete information. While they differentiated between three levels of decision
making, EPS, LPS and RPS, the model focuses on repeat buying/purchase.
The model has four major components, viz., stimulus inputs (input variables),
hypothetical constructs, response outputs (output variables), and, exogenous variables.

a) Stimulus inputs (Input variables): The input variables refer to the stimuli in the
environment; they take the form of informative cues about the product/service offering;
these information cues could relate to quality, price, distinctiveness, service and
availability.
The informational cues could be Significative, Symbolic, (both of which are commercial
and can be controlled by the marketer) and Social (non-commercial and uncontrollable by
the marketer; family, reference groups and social class). All these three types of stimuli
provide inputs concerning the product/brand to a consumer.
 Significative stimuli: The product/brand information that the marketer provides,
comprises the significative component; it deals essentially with the brand
characteristics.
 Symbolic stimuli: this is the psychological form with which a buyer perceives the
product and service offering (brand); it is figurative (verbal and visual product
characteristics) and perceptual and depends on how the offering has been
positioned; it emanates from advertising and promotion efforts.
 Social stimuli: this is the information about the product or service offering that
comes from the social environment viz. family, groups, society and culture at
large.

b) Hypothetical constructs: Howard and Sheth classified the hypothetical constructs into
two major groups, viz., perceptual constructs and learning constructs. These constitute
the central part of the model and deal with the psychological variables which operate
when the consumer is undergoing the decision making process.
 Perceptual constructs: The perceptual constructs deal with how a consumer obtains
and processes information received from the input variables. Once the buyer is
exposed to any information, there is an attention; this attention towards the stimuli
depends on the buyers’ sensitivity to information in terms of his urge and
receptivity towards such information. Not all information would be processed and

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the intake of information is subject to perceived uncertainty and lack of
meaningfulness of information; this is referred to as stimulus ambiguity. This
reflects the degree to which the buyer regulates the stimulus information flow.
Stimulus ambiguity occurs when a consumer does not understand the message
from the environment; it could trigger off a need for a specific and active search
for information and thus lead to an overt search for information. The information
that is gathered and processed may suffer from perceptual bias if the consumer
distorts the information received so as to fit his/her established
needs/beliefs/values/experiences etc.
 Learning constructs: The learning constructs relate to buyer learning, formation of
attitudes and opinions, and the final decision. The learning constructs are seven in
number, and range from a buyer’s motive for a purchase to the final satisfaction
from a purchase; the interplay of these constructs ultimately leads to a response
output or a purchase. The motives refer to the goals that a buyer seeks to achieve
through a purchase and the corresponding urge towards action or the purchase
activity. The brand comprehension is the knowledge and information that the
buyer has about the various brands in his evoked set. The buyer forms an order of
preference for the various brands; this order of preference is based on the choice
criteria (decision mediators). The decision mediators are the evaluative criteria and
the application of decisions rules by the buyer to the various purchase alternatives.
Based on the choice criteria, the attitudes are formed for the varying brands. The
attitudes reflect the predisposition of the buyer; preference toward alternative
brands; and, feelings of like/dislike towards the offerings. The brand potential of
the evoked set determines the buyer's perception and confidence level of the brands
that he is considering to purchase. The purchase intention is a cumulative outcome
of the interaction of buyer motives, choice criteria, brand comprehension, resultant
brand attitude and the confidence associated with the purchase. Satisfaction,
another learning construct, involves the post purchase evaluation (whether
expectation from an offering matches the performance) and resultant impact
(positive/negative) on brand comprehension.

c) Response outputs (output variables): The output variables refer to the buyer’s action
or response to stimulus inputs. According to Howard and Sheth, the response outputs
comprise five constituents, viz., attention, comprehension, attitude, intention and
purchase. These could be arranged in a hierarchy, starting from attention and ending up
with purchase.

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 Attention refers to the degree or level of information that a buyer accepts when
exposed to a stimulus. It reflects the magnitude of the buyer's information intake.
 Comprehension is the amount of information that he actually processes and stores;
here, it refers to brand comprehension which is buyers’ knowledge about the
product/service category and brand.
 The attitude is the composite of cognition, affect and behavior towards the
offering; the attitude reflects his evaluation of the brand and the like/dislike based
on the brand potential.
 Intention refers to the buyer’s intention to buy or not to buy a particular offering.
 Purchase behavior refers to the actual act of buying. The purchase behavior is a
cumulative result of the other four constituents.

d) Exogenous variables: The Howard and Sheth model also comprises certain constant
exogenous variables that influence some or all of the constructs explained above, and
thereby impact the final output variables. These are explained as Inhibitors or
environmental forces that restrain the purchase of a favored brand; eg., importance of the
purchase, price, financial status of the buyer, time at the disposal of the buyer, personality
traits, social pressures etc.

Working relationships between Constructs and the Model:

Through their model, Howard and Sheth explain the buying decision process that a buyer
undergoes, and the factors that affect his choice decision towards a brand. The process
starts when the buyer is exposed to a stimulus. As a result of the exposure, stimulus
ambiguity occurs, which leads to an overt search for information. The information that is
received is contingent upon the interplay between the attitudes and the motives. In other

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The model proposed by Francesco Nicosia in the 1970s, was one of the first models of
consumer behavior to explain the complex decision process that consumers engage in
during purchase of new products. Instead of following a traditional approach where the
focus lay on the act of purchase, Nicosia tried to explain the dynamics involved in
decision making. Presenting his model as a flow-chart, he illustrated the decision making
steps that the consumers adopt before buying goods or services; decision aiming was
presented as a series of decisions, which follow one another. The various components of
the model are seen as interacting with each other, with none being essentially dependent
or independent; they are all connected through direct loops as well as feedback loops.

Thus, the model describes a flow of influences where each component acts as an input to
the next. The consumer decision process focuses on the relationship between the
marketing organization and its consumers; the marketing organization through its
marketing program affects its customers; the customers through their response to the
marketer’s action, affects the subsequent decisions of the marketer; the cycle continues.

The various components that are further distinguished into main fields and subfields of
the model are marketer's communication affecting consumer’s attitude, consumer's search
and evaluation, purchase action, consumption experience and feedback. The first field
ranges from the marketer (source of message) to the consumer (attitude); the second from
the search for to the evaluation of means/end(s) relation(s) which forms the preaction
field; the third field relates to the act of purchase; and the fourth to feedback. The output
from one field acts as the input for the next. These are explained as follows:

1. Marketer's communication affecting consumers’ attitude: This comprises Field 1 (i.e.

“from the source of a message to the consumers’ attitude”). The consumer is exposed to
the firm’s attributes through the marketing communication; this marketing
communication could take place impersonally via mass media (TV, newspaper, websites,
etc) as well as personally. The information could relate to the firm attributes as well as
the product, price and distribution. This message relating to the firm’s attributes affects
the consumers’ perception, predisposition and attitude toward the firm and its offering.
Of course, the impact on perception and attitude is also dependent upon the consumer’s
personal characteristics, values, experiences, culture, social influences etc. Thus, the
marketer’s communication affects the consumers’ attitude.

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2. Consumer's search and evaluation: After an attitude is formed, the consumer moves to
Field 2 of the model, i.e. the consumer’s search for and evaluation of means/end(s)
relation(s) which forms the preaction field. The consumer searches for information about
the product category and the varying alternatives, and thereafter evaluates the various
brands on criteria like attributes, benefits, features etc. These criteria could be based on
his learning and past experiences as well as the marketer's inputs. This step creates a
motive in the mind of the consumer to purchase the product.

3. Purchase action: The motivated state leads to Field 3 of the model, i.e. the decision
making on the part of the consumer and the act of purchase. The consumer finally gets
into action and buys the product from a chosen retailer.

4. Consumption experience and feedback: The purchase action leads a consumer to Field
4 of the model which is consumption experience and feedback. After purchasing the
product, and the resultant consumption, the consumer may have two kinds of
experiences. A positive experience in terms of customer satisfaction may reinforce his
predisposition with the product/brand and make him loyal towards it. A negative
experience on the other hand, implying consumer dissatisfaction would affect his attitude
negatively, lower down evaluations about the product/brand and even block his future
purchases. This Filed provides feedback to the marketer, who can modify its mix
accordingly.
In the first field, the marketer communicates with the customer and promotes an
unfamiliar product to him; depending upon the existing predispositions and his
evaluation, the consumer develops an attitude. In the second field, the consumer searches
for information and evaluates it based on his attitudes; thereafter, he develops a
motivation to act. In the third field, he makes and purchase and in the fourth field, he
would provide feedback and also memorize his experience and learning for future use.
Thus, the firm communicates with consumers through its marketing messages and the
consumers react through an act of purchase. Both the firm and the consumer influence
each other.

An Assessment of the Model:

Nicosia’s model is an integrative model that tries to integrate the body of knowledge that
existed at the time of its formulation in the area of consumer behavior. It was a
pioneering attempt to focus on the conscious decision-making behavior of consumers,
where the act of purchase was only one stage in the entire ongoing decision process of

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consumers. The flowcharting approach proposed by Nicosia, simplifies and systemizes
the variables that affect consumer decision making. It contributes to the step by step
"funnel approach" which views consumers’ movement from general product knowledge
toward specific brand knowledge and from a passive position to an active state which is
motivated toward a particular brand.

However, the model suffers from limitations in the sense that the model proposes
assumptions, boundaries and constraints that need not be realistic. It has been argued that
attitude, motivation and experience may not occur in the same sequence. Variables in the
model have not been clearly defined. Factors internal to the consumer have not been
defined and dealt with completely. The mathematical testing of the model and its validity
are questionable.

-Blackwell-Miniard Model of Consumer

Behavior:

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The Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed
to organize and describe the growing body of knowledge/research concerning consumer
behavior. A comprehensive model, it shows the various components of consumer
decision making and the relationships/interactions among them. The model went through
many revisions and modifications, with attempts to elaborate upon the interrelationship
between the various components and sub-components; and, finally another model was
proposed in the 1990s which came to be known as the Engel, Blackwell and Miniard
Model (EBM).

The model consists of five parts, viz. information input, information processing, decision
process stage, decision process variables, and external influences.
1. Information input: The information input includes all kinds of stimuli that a consumer
is exposed to and triggers a kind of behavior. The consumer is exposed to a large number
of stimuli both marketing (advertising, publicity, personal selling, demonstrations, store
display, point of purchase stimuli) as well as non-marketing sources (family, friends,
peers); thus the various stimuli compete for consumer’s attention. These stimuli provide
information to the consumer and trigger off the decision making process.

2. Information processing: Stimuli received in the first stage provide information; the
information is processed into meaningful information. The stage comprises consumer’s
exposure, attention, perception/comprehension, acceptance, and retention of information.
The consumer is exposed to stimuli (and the accompanying information); attention
determines which of the stimuli he will focus upon; thereafter he would interpret and
comprehend it, accepts it in his short term memory and retains it by transferring the input
to long-term memory.

3. Decision-process stage: At any time during the information processing, the consumer
could enter into this stage. The model focuses on the five basic decision process stages,
viz., problem recognition, search, alternative evaluation, choice, and outcomes (post-
purchase evaluation and behavior). There is problem recognition; this is followed by a
search for information, which may be internal based on memory. The search of
information is also impacted by environmental influences. Thereafter, the consumer
evaluates the various alternatives; while evaluation, belief lead to the formation of
attitudes, which in turn affect the purchase intention. The next stage is the choice and
purchase, which gets impacted by individual differences. Finally there is an outcome, in
the form of satisfaction and dissatisfaction. This outcome acts as a feedback on the input

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and impacts the cycle again. Environmental influences, individual differences and social
influences, directly and indirectly influence each of the stages of the decision process.
However, EKB proposed that it is not necessary for every consumer to go through all the
five stages; it would depend on whether the problem is an extensive or a routine problem-
solving behavior.

4. Decision process variables: The model proposes individual influences that affect the
various stages of the decision making process. Individual characteristics include
constructs like demographics, motives, beliefs, attitude, personality, values, lifestyle,
normative compliance, etc.

5. External influences: The model also proposes certain environmental and situational
influences that affect the decision making process. The environmental influences include
“Circles of Social Influence,” like culture, sub-culture, social class, reference groups,
family and other normative influences; situational influences include consumer’s
financial condition.

Working relationships between Components:

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The decision process comprises five stages from need recognition to outcome. The
outcome in the form of satisfaction/dissatisfaction acts as the input in then next cycle of a
similar purchase. Each of the components is directly or indirectly impacted by
environmental influences, individual differences and social influences.

An Assessment of the Model

The model incorporates many constructs that impact consumer decision making. It tries
to explain clearly the interrelationships between stages in the decision process and the
various variables. They attempted to relate belief-attitude-intention. An attempt was made
to define the variables and specify functional relationships between the various
constructs. However, the model fails to adequately explain as to how each of these
influences consumer decision making. Critics argue that there are too many variables;
these have not been defined; the model is vague and complex; and the validity of the
model has been questionable. The model was revised in the 1990s and proposed again as
the Engel, Blackwell and Miniard (EBM) model.

The Webster and Wind Model (Refer to the pdf attached)

The Webster and Wind Model of organisational buying behavior is quite a

comprehensive model. It considers four sets of variables: environmental, organizational,
buying center, and individual, which, affect the buying-decision making process in a
firm.

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