Chap 2 behaviour models

MKT 223- CONSUMER BEHAVIOUR Chapter 2-Consumer Behaviour Models CONTENTS MODEL OF BUYING BEHAVIOUR CONSUMER BUYING SITUATION BUYER ROLES BEHAVIOURIST AND COGNITIVIST THEORIES OF CONSUMER BEHAVIOUR

Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption. All these consumers make up the consumer market . The central question for marketers is: “How do consumers respond to various marketing efforts the company might use?”

Types of Buying Decision Behavior –Lawson’s model (Fig.2.1) Complex Buying Behavior Variety- Seeking Behavior Dissonance- Reducing Buying Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement

Model of Buyer Behavior (Fig. 2.2)- Lawson’s model Marketing and Other Stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Factors Influencing Consumer Behavior-Lawson’s model (Fig.2.3) Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Culture Sub- culture Social class Cultural

SOURCES OF EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR-Wilkie (1990) SCOPE – the sweep or reach of the impact STRENGTH- the power to impact behaviour IMMEDIACY – direct or focused influence on behaviour; the impact is felt with no or little influence coming into play. Long term/short term low specific MKT STIMULI Long term/short term High/low specific FRIENDS Long-term High specific FAMILY Long-term High general SUBCULTURE Long-term High general CULTURE IMMEDIACY STRENGTH SCOPE

Buyer Decision Process (Fig. 2.4)-Lawson’s model Postpurchase Behavior Purchase Decision Information Search Need Recognition Evaluation of Alternatives

BUYER ROLES INITIATOR First individual who suggests product/service should be evaluated/purchased. INFLUENCER Provides view and advice which are valued by others and can subsequently influence the final decision. DECIDER The individual who will take the decision in the buying process at what, how , when and where to buy (store choice), etc. BUYER The individual who actually makes the purchase USER The individual who consumes or users the service/product.

FACTORS INFLUENCING SHOPPERS’ STORE CHOICE Kelly and Stephenson ( 1967) identified 8 factors ; General store characteristics-reputation, no of stores Physical characteristics – décor,cleanliness, checkout services. Convenience –time, parking etc. Products – variety, dependability, quality. Prices charged – value special sales. Personnel – courteous, helpful, friendly. Advertising –informative, aggressive, believable. Friends’ perception of the store- well known, liked, reccommended.

TYPES OF PURCHASING RISKS-Consumer Product Lines 1. ROUTINE BUYING 2. LIMITED PROBLEM SOLVING 3. EXTENSIVE PROBLEM SOLVING .

Major Types of Buying Situations-Business products New Task Buying Involved Decision Making Modified Rebuy Straight Rebuy

ASSUMPTION ON CONSUMER BEHAVIOUR-Behavioural versus Cognitivists view BEHAVIOURIST COGNITIVIST

BEHAVIOURIST VERSUS COGNITIVIST APPROACHES BEHAVIOURIST Observed behaviour is all important People are info transmitters People are all alike Behaviour is rational Human characteristics can be studied independently. Emphasis is on what a person is and does. Behaviour can be understood COGNITIVIST What goes on in a person’s mind is the key to comprehension. Behaviour is not predictable People are info generators Each person is unique Behaviour is irrational People must be studied as a whole Emphasis is on what a person can be. Behaviour can never be completely understood .

THEORIES OF CONSUMER BEHAVIOUR The Engel-Kollat-Blackwell (EKB) model. Howard & Sheth model Maslow’s Hierarchy model

The Engel-Kollat-Blackwell (EKB) model. First developed in 1968. A key feature of the EKB model is the differences between high and low involvement as part of the buying process. High involvement is present in the high risk purchase Low involvement is present in the low risk purchase.

Models of Consumer Behaviour The Engel-Kollat-Blackwell (EKB) model Consumers are seen as active agents following rules of behaviour, fairly easy to follow and implement because they require only a limited amount of information and capability of elaboration For instance, a consumer, being aware of a certain need and believing a certain good category satisfies it, might fix a maximum price he/she can afford and search for the best good available under such a constraint.

Howard & Sheth model The model claims that a person’s purchase decision is often influenced by more than one individuals. A family buying decision involves multiple influences from its members . This theory shows the concept of role structure, that is individuals members of the family takes on roles such as collecting information, deciding on the information budget, etc. The theory also states that retailers /businesses are not only dealing with a homogeneous unit but a collection of individuals with different goals, needs, motives and interests.

Models of Consumer Behaviour Howard & Sheth model Acoording to the model, the ' inputs ' (stimuli) that the consumer receives from his or her environment are: significative - the 'real' (physical) aspects of the product or service (which the co make use of) symbolic - the ideas or images attached by the supplier (for example by advertising) social - the ideas or images attached to the product or service by 'society' (for example, by reference groups)

The 'outputs' are what happens, the consumer's actions, as observable results of the input stimuli. Between the inputs and outputs are the 'constructs', the processes which the consumer goes through to decide upon his or her actions. Howard and Sheth group these into two areas: perceptual - those concerned with obtaining and handling information about the product or service learning - the processes of learning that lead to the decision itself Models of Consumer Behaviour - Howard & Sheth model

MASLOW’S HIERARCHY MODEL Theory of motivation developed by Abraham Maslow(1943) Illlustrated into low needs to high needs. Comprises of physiological, safety, belongingness, esteem and self actualization. Can be applied by retailers to understand a targeted segment’s needs and wants and offer the right product at the right price, promotion and place.

Maslow’s Hierarchy of Needs (Fig. 2.5) Physiological Needs (hunger, thirst) Safety Needs (security, protection) Social Needs (sense of belonging, love) Esteem Needs ( self-esteem) Self Actualization (Self-development )

Stages in the Adoption Process Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product.

Adopter Categories (Fig. 5.7) Percentage of Adopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority

Influence of Product Characteristics on Rate of Adoption Divisibility Can the innovation be used on a trial basis? Complexity Is the innovation difficult to understand or use? Communicability Can results be easily observed or described to others? Compatibility Does the innovation fit the values and experience of the target market? Relative Advantage Is the innovation superior to existing products?

Chap 2 behaviour models

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Chap 2 behaviour models