2.

1 Unit-2 Consumer Modeling-The economic model- Learning model psychoanalytic model-The sociological model-The Haward seth model of buying behavior. The Engel Kollat Blackwell model. Economic Model Economic model of consumer behavior is unidirectional means buying deasion of aperson are governed by the concept of utility. Economic model based o two perdition 1. Price effect-lesser the price of the product more will be the quantity purchased. 2. Substitution effect-lesser the price of the substitute product, lesser will be the quantity of original product bought. 3. Income effect-more is the purchasing power more will be the quantity purchased. Criticism According Behavioral scent its argue that the economic model it in complete because economics assume market to be homogeneous and buyer will the ok and act accordingly. This Model ignores all other aspects such as perception, motivation, learning, attitude, personality. Men also influence many more marketing factor other than price like technologically advanced product, effective distribution channel, marketing communication, promotional activities. Learning Model Unlike the economist classical psychologist have been argued that living being were influenced by both innate need such as hunger, thirst, sex shelter, and leaned needs like fear & guilt.

2.2 Psychoanalytic Model-by (Sigmoid fraud) a. b. c. Human needs and motives operated at conscious as well as sub conscious level. Human behavior is the outcome of three things Id-The source of all psychic energy which drives us as action. Super ego The internal representation of what is approved by the society. Ego- The conscious directing id, impulses to find gratification en a socially accepted manner. Marketers have been using this approach to generate ideas for developing product design features, advertising and other promotional activities.

Sociological Model According to this model individual buyer is apart of society which influence to his buying behavior like member of family, employee of firm, member of professional forum and as an active member of an informal cultural organization. Similarly depending on the income, occupation place or residence each individual is recognize as belonging to social class which influent his buying behavior.

2.3 Consumer Decision making model Meaning The Process by which a person is required to make a choice from various alternative option is referred to as decision making. Levels consumer decision making 1. Extensive problem solving:-When the consumer have no established criteria for evaluating a product category or specified brand they will consider to a small manageable subset and their D.M effort can be classified as extensive problem solving. 2. Limited problem solving:-here the consumer have already established the basic criteria for evaluating the product category and various brands in the category. 3. Reutilized response behavior:-At this level consumer have experienced with the product category and a well established set of criteria with which to evaluate the brands they are considering. Four views of D.M. 1. An economic view: Consumer has been characterized by rational decision. He aware of all possible alternatives. Be capable of correctly ranking each alternative. Be able to identify the best alternative. 2. A Passive View: Quite opposite to be rational economic view of consumers is the passive view that depicts the consumer as basically submissive to be self siring interest and promotional effort of the market 3. A Cognitive view: The cognitive model focuses on the processes by which consumer seek and evaluate information about selected brands and retail outlet. 4. Emotional View:Feed Back Show do I feel about achievement Formation of a goal intention What is it for which I strive Action Planning Action initiation & Control How well I enacted my plan Goal attainment

Goal setting

What are the goal I can pursue

How can I active my goal

To what degree I have achieved

2.4 External Influences

Forms marketing efforts Input 1. 2. 3. 4. Product Promotion Price Channel of distribution

Socio cultural Environment 1. 2. 3. 4. 5. Family Informal Sources Other noncommercial Sources Social Class Subculture

Consumer decision making

Psychological field Need Recognition Process Pre-purchase Search Evaluation of alternative 1. 2. 3. 4. 5. Motivation Perception Learning Personality Attitudes

Experience

Post decision Behavior Purchase 1. Trial 2. Repeated Purchase

Output Post purchase Evaluation

Opinion Leadership

Opinion leadership (or word of moth) communication is the process by which one person (Opinion leader) informally influences the action or attitude of other who may be opinion seekers or opinion recipient. Dynamics of the opinion leadership process 1. Opinion leaders are procured to be highly credible source of product related information. 2. Opinion leaders are gregarious and people with experience. 3. Opinion leaders usually provides unbiased information that is they provide both favorable and unfavorable information to their opinion seekers. 4. Opinion leaders are both sources of information and advice. 5. Opinion leaders have got greater expose to be the media. 6. Opinion leaders tend to be consumer innovators. 7. Opinion leaders have got sum personal product specific characteristics like personality trait social status and demographic characteristics.

2.5 Motivation behind opinion leadership 1. Self improvement motivation a. Reduce post purchase uncertainty. b. Gain attention or status. c. Assert superiority and expertise. d. Feel like an adventurer. e. Experience the power of converting others. 2. Product involvement motivation a. Express satisfaction or dissatisfaction with a product or service. 3. Social involvement motivation a. Express neighborliness and friendship by discussing product or services that may be useful to others. 4. Social involvement motivation Express ones reaction to stimulating advertisement by telling other about it.

2.6

Diffusion of innovation Meaning The frame work for exploring consumer acceptance of new products is drawn from the area of research know as the diffusion of innovation. Diffusion is a macro process concerned with the spread of a product from its source to the consuming public. The diffusion process is concerned with how innovations spread that is how they are assimilated with in a market. Its a process by which acceptance of an innovation is spread by communication to members of a social system over a period of time.

Process of diffusion Channels of Communication Social System Time

Innovation

Innovation Firm Oriented definition: - When a product is new to the company of is considered new. P