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Models of CB

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19 views27 pages

Models of CB

Uploaded by

sevenhillsenterprises2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Factors influencing consumer

behavior
 Cultural

 Social

 Personal

 Psychological
Why it failed in India???
Models of consumer
behavior
 Traditional models:
Economic Model

Learning Model

Psychoanalytic
Model

Sociological Model
Economic model
 Law of principal of maximum utility
 Law of equimarginal utility enables a
consumer to secure the maximum utility
from limited purchasing power
 Price effect
 Substitution effect
 Income effect
Learning model
 The response of satisfaction reinforces
the relationship

 Learns to associate connection between


stimulus and response which becomes
habit

 Understanding the response of


consumer at the market place
Psychoanalytical model
 Personality of consumers and their
responses

 Consumer behavior is directed by a


complete set of deep seated motives
Sociological model
 As his role, status, interaction, influence,
group relation, lifestyle, income, occup-
ation, place of residence, social class
etc.
Contemporary models
 Harward seth model
 Nicosia
 Webster and wind
 Engel, balckwell and minard model
Howard sheth model
 Customer lacks well defined evaluative
criteria to judge the product
 Searches for information
 After passing his own personality, his
intake is modified
 Evaluates the brands available
 Seeks greatest potential of satisfying his
motives
example
 Online shopping
Nicosia model
 Proposed by Francesco Nicosia
in 1970s
 Incomplete in a number of aspects,
very reductionist

 Variables in the model have not been


clearly defined
 A number of assumptions have been made
that question the validity of this model, for
instance:

 What type of consumer are we talking about?


 The company and the consumer have an
existing relationship? What type?
 Is this for a new product? Is this the
first exchange the consumer has had
with the producer?
example
 Four-wheelers
Engel, Blackwell and minard
model
 Information input

 Information processing

 Decision process stage

 Variables influencing decision making


process
example
 Garment sector
Social class
Family
Lifestyle
Personality
Beliefs
attitudes
Webster and wind
 partitiones the buying process into
several processes

 processes of decision-making are


determined by environmental
and organizational factors.

 Final buying process rendered as the


mixture of individual and group decision
example

 Automobile manufacturing
• B2B business

• Purchasing tires
conclusion
 Understanding consumer contributes the
best to any organization and for this,
models would work great

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