Cb models
- 2. A model a is simplified version of reality.
- 3. OBJECTIVES Understand the concept of modeling within consumer behaviour studies; Evaluate the applicability of traditional models of consumer behaviour; Evaluate the applicability of contemporary models of consumer behaviour.
- 4. Models and theory Theory: an interrelated set of concepts, definitions and positions that presents a systematic view of phenomenon (Loudon and Della Bitta, 1993) Theory has 4 functions, to:
- 5. Types of models Algebraic models: Fishbein’s Attitude Model n Ao=Σ=biei i=1 Ao= the person’s overall attitude towards the object bi= the strength of his belief that the object is related to attribute I (e.g. ASDA is good value for money) ei= his evaluation or intensity of feelings (liking or disliking) toward attribute i n= the number of relevant beliefs for that person
- 7. Types of models(contd.) Personal Variable Models: Adapted from Ajzen’s Theoty of Planned Behaviour( 1991
- 9. Traditional Models of consumers Early models derive from economics and were interested in studying how scarce resources are allocated to quench and unlimited amount of wants and needs (Loudon and Della Bitta, 1993) Macroeconomics Microeconomics
- 10. Traditional Models of consumers
- 11. Concentrates on the act of purchasing Interested in knowing what consumers were purchasing, ignoring the why and how underpinning their behaviour. MICROECONOMICS
- 12. Assumptions made:– Consumers wants and needs are unlimited and unquenchable Consumers allocate their resources to maximise levels of satisfaction Consumers have perfect knowledge The additional satisfaction of a unit that is bought after the first purchase will be less than the first purchase’s marginal satisfaction Price is key Consumers rational MICROECONOMICS
- 13. Behavioural economics (from Loudon and Della Bitta, 1993) George Katona introduces the need to look at psychological influences guiding consumer’s behaviour: behavioural economics Consumers will purchase products when they have confidence in the economy (consumer sentiment)
- 14. The KatonaModel
- 17. Limitations Incomplete in a number of aspects, very reductionist Variables in the model have not been clearly defined (Rau and Samiee, 1981) 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? • The model cannot be validated, according to Foxall(1980) it is pre-scientific
- 19. Too many variables, a complex model that can be difficult to read Variables in the model have not been clearly defined (Rau and Samiee, 1981) A number of assumptions have been made that question the validity of this model, for instance: Sharp distinctions between exogenous and other variables have not been made The model cannot be generalised, it cannot be applied to co-joint decision making for example Can this model be applied for non-branded products? The model cannot be validated, according to Foxall(1980) it is pre-scientific LIMITATIONS
- 21. Too many variables, a complex model that can be difficult to read Variables in the model have not been clearly defined The model is vague (Loudon and Della Bitta, 1993) – Key variables are vaguely defined How do environmental variables affect consumers’ behaviour? How do motives influence consumers’ behaviour? – It is a mechanical overview of human behaviour – Can this model be applied for non-branded products? Goods? Services? The model cannot be validated, according to Foxall(1980) it is pre-scientific LIMITATIONS
- 22. A model presents phenomena in such a way that it can be easily communicated Models are just representative of reality, they are not reality There are different types of models (black box, conceptual, algebraic, personal variable and comprehensive models) The Nicosia, Howard-Shethand the Engel, Kollatand Blackwell model have all been criticised on the grounds that they are pre-scientific CONCLUTIONS
- 23. Models operate on the assumption that all human behaviour is rational All models are mechanistic CONCLUTIONS