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Models of Consumer Behavior: - Engel, Blackwell and Miniard (EBM) - Howard Sheth Model of Buying Behaviour

The Howard Sheth model of consumer behavior outlines four major variables that influence consumer decision making: inputs, perceptual and learning constructs, outputs, and exogenous variables. It describes three levels of consumer decision making - extensive problem solving when consumers have no information, limited problem solving when consumers have some knowledge, and habitual response when consumers are familiar with options. The model shows how consumers process and learn from information to develop preferences and purchase intentions.

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359 views20 pages

Models of Consumer Behavior: - Engel, Blackwell and Miniard (EBM) - Howard Sheth Model of Buying Behaviour

The Howard Sheth model of consumer behavior outlines four major variables that influence consumer decision making: inputs, perceptual and learning constructs, outputs, and exogenous variables. It describes three levels of consumer decision making - extensive problem solving when consumers have no information, limited problem solving when consumers have some knowledge, and habitual response when consumers are familiar with options. The model shows how consumers process and learn from information to develop preferences and purchase intentions.

Uploaded by

roshni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Models of Consumer Behavior

• Engel, Blackwell and Miniard (EBM)


• Howard Sheth model of Buying Behaviour
• Engel, Blackwell and Miniard (EBM)
Engel, Blackwell and Miniard (EBM)
• This model was created to describe the increasing, fast-growing body
of knowledge concerning consumer behavior.

• This model, like in other models, has gone through many revisions to
improve its descriptive ability of the basic relationships between
components and subcomponents, this model consists also of four
stages;
• First stage: decision-process stages

• The central focus of the model is


on five basic decision-process
stages:
• Problem recognition, search for
alternatives, alternate evaluation
(during which beliefs may lead to
the formation of attitudes, which
in turn may result in a purchase
intention) purchase, and
outcomes.
• But it is not necessary for every
consumer to go through all these
stages; it depends on whether it is
an extended or a routine problem-
solving behavior.
• Second stage: Information input

• At this stage the consumer gets


information from marketing and
nonmarketing sources, which also
influence the problem recognition
stage of the decision-making
process.

• If the consumer still does not arrive


to a specific decision, the search for
external information will be activated
in order to arrive to a choice or in
some cases if the consumer
experience dissonance because the
selected alternative is less
satisfactory than expected.
• Third stage: information
processing

• This stage consists of the


consumer‟s exposure, attention,
perception, acceptance, and
retention of incoming
information.

• The consumer must first be


exposed to the message, allocate
space for this information,
interpret the stimuli, and retain
the message by transferring the
input to long-term memory.
• Fourth stage: variables influencing
the decision process

• This stage consists of individual and


environmental influences that affect
all five stages of the decision process.

• Individual characteristics include


motives, values, lifestyle, and
personality;

• social influences are culture,


reference groups, and family.

• Situational influences, such as a


consumer‟s financial condition, also
influence the decision process.
Engel, Blackwell and Miniard (EBM)
• This model incorporates many items, which influence consumer
decision-making such as values, lifestyle, personality and culture.

• The model did not show what factors shape these items, and why
different types of personality can produce different decision-making?

• How will we apply these values to cope with different personalities?


Religion can explain some behavioral characteristics of the consumer,
and this will lead to better understanding of the model and will give
more comprehensive view on decision-making.
• Howard Sheth model of Buying Behaviour
Introduction
• According to the Howard Sheth model of consumer behavior, there
are four major sets of variables; namely:

• Inputs
• Perceptual and Learning Constructs
• Outputs
• Exogenous(External) variables (Social class,
Culture, Time pressure, Financial pressure)
Simplified Howard-Sheth model

• Inputs
• Perceptual and Learning
Constructs
• Outputs
• Exogenous(External)
variables
Howard-Sheth model
Inputs
• These input variables consist of three distinct types of stimuli (information sources) in the
consumer’s environment.

• The marketer in the form of product or brand information furnishes physical brand
characteristics (significative stimuli) and verbal or visual product characteristics (symbolic
stimuli).

• There are impersonal sources like mass media communication and advertising, over which the
firm has no control. However, the information sources also include sales and service personnel
who can add and help the marketing efforts of the firm.

• The third type is provided by the consumer’s social environment (family, reference group, and
social class). This social source is personal and the company/marketer has no control over this
source. All three types of stimuli provide inputs concerning the product class or specific brands
to the specific consumer.
Perceptual Constructs
• The central part of the model deals with the psychological variables involved when the
consumer is contemplating a decision.

• Some of the variables are perceptual in nature and are concerned with how the
consumer receives and understands the information from the input stimuli and other
parts of the model.

• For example, stimulus ambiguity happened when the consumer does not understand the
message from the environment.

• Perceptual bias occurs if the consumer distorts the information received so that it fits his
or her established needs or experience.
Learning Constructs
• Learning constructs category, consumers’ goals, information about
brands, criteria for evaluation alternatives, preferences, and buying
intentions are all included.

• The proposed interaction In between the different variables in the


perceptual and learning constructs and other sets give the model its
distinctive advantage.
Outputs
• The outputs are the results of the perceptual and learning variables
and how the consumers will respond to these variables (attention,
brand comprehension, attitudes, and intention).
Exogenous(External) variables:
• Exogenous variables are not directly part of the decision-making
process. However, some relevant exogenous variables include the
importance of the purchase, consumer personality traits, religion, and
time pressure.
Limitations of the Model
• The model lacks reliability due to its dependency on the hypothetical
constructs, which are challenging to be pragmatically examined.
Howard Sheth model of consumer behavior : levels of
decision making
• The   Howard Sheth model of consumer behavior  suggests three levels of decision making :

1.The first level describes extensive problem-solving. At this level, the consumer does not have
any basic information or knowledge about the brand and he does not have any preferences for
any product. In this situation, the consumer will seek information about all the different brands
in the market before purchasing.

2.The second level is limited problem-solving. This situation exists for consumers who have little
knowledge about the market, or partial knowledge about what they want to purchase. In order to
arrive at a brand preference, some comparative brand information is sought.

3.The third level is habitual response behavior. At this level, the consumer knows very well
about the different brands and he can differentiate between the different characteristics of each
product, and he already decides to purchase a particular product.

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