Models of consumer behavior
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The document discusses several models of consumer behavior, including the economic model which views consumers as rational actors seeking to maximize benefits based on price, income, and substitution effects. It also describes the learning model based on Pavlov's stimulus-response theory, the psychoanalytic model examining complex unconscious motives, and the sociological model analyzing social and group influences. Two additional models covered are Howard Sheth's model with input, hypothetical, output, and external variables, and Nicosia's model outlining four areas of the consumer decision process.
Models of consumer behavior
- 1. ANJALI DAS V.M MBA RAJADHANI BUSINESS SCHOOL MODELS OF CONSUMER BEHAVIOR
- 2. CONSUMER BEHAVIOR Defines how individuals, groups or organizations use or dispose different products or services to satisfy their needs or wants
- 3. MODELS OF CONSUMER BEHAVIOR Different models of consumer behavior are: Economic model Learning model Psychoanalytic model Sociological model The Howard Sheth model The Nicosia model
- 4. ECONOMIC MODEL Oldest model of consumer behavior. Consider the behavior of an economic man. Depends on price effect, substitution effect & income effect. If an individual has certain sum of money and certain set of requirements then he will spend only on the products which gives maximum benefits.
- 5. PRICE, SUBSTITUTION & INCOME EFFECT Price effect=> If the price is less then the purchase will be more. Substitution effect=> If the price of substitute is less then the purchase of original product will be less. Income effect=> If the income is high then the purchase will be more.
- 6. LEARNING MODEL Based on Pavlov’s stimulus response. Pavlov’s stimulus response states that in order to bring changes in buyer’s behavior one must change the drives, stimuli and responses as per buyer’s attitude or perceptions.
- 7. LEARNING MODEL(CNTD…) DRIVE Internal stimulus that impels an action. CUES Stimuli coming form marketing & social environment. RESPONSE What the buyer does, whether buys or not. REINFORCEMENT Leads to repeat purchase.
- 8. PSYCHOANALYTIC MODEL Deals with the analysis of psychology of consumers. According to this model, buyer’s needs & wants operate at several levels of consciousness. For every purchasing decision the purchaser will have some complex motives which can be influenced by his sense of desires.
- 9. SOCIOLOGICAL MODEL Deals with society. Buyer is an element of society and also a part of different groups. Buying behavior of the purchaser depends on these groups.
- 11. HOWARD SHETH MODEL Proposed by John Howard & Jagadish Sheth. There exists some variables other than inputs & outputs which affects the learning & perception of consumers. These variables are imaginary & difficult to measure. It attempts to explain the rationality of choice of the product by the consumer under conditions of incomplete information and reduced processing capability. Model has 4 components.
- 13. COMPONENTS OF HOWARD SHETH MODEL Input variables: Hypothetical constructs Output variables External variables
- 14. INPUT VARIABLES Consists of some stimuli which gives information about the product. It includes 3 different types of stimuli: Significant stimuli: Physical characteristics & attributes of a product eg:- Price, quality etc. Symbolic stimuli: Verbal or visual characteristics of a product. eg:- Effect of advertising. Social stimuli: Environmental factors that act as the source of input.
- 15. HYPOTHETICAL CONSTRUCTS Psychological variables influencing consumer behavior during the decision making process. It consists of 2 major variables: Perceptual constructs: Helps in obtaining & processing information for selecting a brand. Learning constructs: How buyer forms attitudes, opinions, and knowledge influencing his buying decisions. Evaluation after purchase also comes under learning constructs.
- 16. OUTPUT VARIABLES Ultimate response of the consumer. Hierarchy of output variables are: Attention - information accepted after exposing buyer to stimulus. Comprehension - amount of information actually processed and stored in buyer’s mind. Cognition - forming attitude towards the product. Intention - to buy or not to buy the product. Purchase behavior.
- 17. EXTERNAL VARIABLES It does not directly depends on decision making process. These are external factors. It includes social class, financial status, culture etc.
- 18. NICOSIA MODEL Introduced by F.M.Nicosia. Model of purchase decision making process by an individual or group. Shows the interactive relation between company & consumer. According to this model, there are 4 different areas of the decision making process.
- 19. NICOSIA MODEL(CNTD…) Field two: Search for and evaluation of means-end relation
- 20. 4 AREAS OF DECISION MAKING PROCESS IN NICOSIA MODEL Area 1 => Consumer attitudes. Area 2 => Search for & evaluation. Area 3 => Act of purchase. Area 4 => Feedback.