Consumer Behavior Models and Decision Styles

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Consumer Behaviour Models:
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A Theoretical and Practical Approach
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Oxbridge Library
A Division of Oxbridge Researchers Ltd
Table of Contents
1
2
Introduction..................................................................................................................3
The Consumer Behaviour Construct...........................................................................3
2.1
Consumer Decision Making Models...................................................................4
2.2
Consumer Decision-Making Styles.....................................................................5
2.3
Consumers Perception........................................................................................7
3
Practical Application....................................................................................................9
4
Conclusion.................................................................................................................12
5
References..................................................................................................................14
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A Division of Oxbridge Researchers Ltd., 6669933
Document may be used for informational and research purposes only. Copying and distribution is
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1 Introduction
Consumer decision-making is defined as the behaviour patterns of
consumers that precede, determine and follow the decision making process for
the acquisition of need satisfying products, ideas or services (Du Plessis &
Rousseau, 1999). During the consumer decision-making process, not only do
consumers make decisions regarding which brand options to choose but they
also decide what quantity of the good to purchase. Consumers make decisions in
order to reach their goals, which include making the best choice among
alternative possibilities, reducing the effort in making the decision, minimizing
negative emotions, and maximizing the ability to justify the decision. In
summary, consumer decision-making is a constructive process (Mowen & Minor,
2006).
With the above stated definition of consumer decision-making in mind, this
report will investigate the consumer behaviour construct for the purposes of
articulating a consumer decision-making model.
In so doing, the report will
critically discuss the influence of internal factors, such as perception and

motivation, on consumer behaviour and, importantly, discuss the ways and
means by which consumer behaviour principles can be used as a conceptual
framework to help managers understand and solve marketing problems.
Following a review of the scholarly literature on the aforementioned issues, the
report will report on the results of a survey which focused on consumer buying
behaviour in relation to remedial massage therapy.
Four respondents were
involved in this study.
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2 The Consumer Behaviour Construct

This section of the report focuses on the review of the literature on
consumer behaviour.
Consumer decision making models, consumer decision-
making styles and consumer perceptions are explored in this section.
2.1 Consumer Decision Making Models

Some
of
the
best-known
consumer
decision-making
models
were
developed in the 1960s and 1970s. Howard developed the first consumer
decision-making model in 1963 (Howard, 2005). Others included the 1969
Howard model (Howard, 2005) and the 1990, Blackwell, and Miniard model
(Engel, Blackwell, and Miniard, 2007). Those consumer decision-making models
that are still used today reflect consumer decision process in terms of the
interrelationship of concepts and the flow of activities. The most widely used
consumer decision-making theory includes these five steps as defined by Mowen
and Minor (2006): recognizing problems, searching for solutions, evaluating
alternatives, choosing among options, and evaluating the outcomes of the
choice.
In addition to the five steps in the consumer decision-making process,
some researchers prefer to add one or more stages to place importance on
certain activities. Take as an example, Engel, Blackwell, and Miniard (2007) who
discussed a different model for the consumer decision-making process, the
Consumer Decision Process (CDP) model. The CDP model represents a roadmap
of consumers' minds that marketers can use to help guide product mix,
communication, and sales strategies. The seven stages in the consumers'
decision-making process according to the CDP model include: need recognition,
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search for information, pre-purchase evaluation of alternatives, purchase,

consumption, post-consumption evaluation, and divestment. The model places
more emphasis on the cognitive aspects of buying behavior than before. The CDP
model shows how people solve the everyday problems in life that cause them to
buy and use products of all kinds.
Later, the Engel, Blackwell, and Miniard (2007) CDP model was renamed
the (EBM) model to acknowledge the work of Professor Paul Miniard. The EBM
Model was one of the most important consumer decision-making process models.
The EBM model was an attempt to show that consumers will make a purchase
decision based upon seven steps. These steps were need recognition,
information
searching,
pre-purchase
alternative
evaluation,
purchase,
consumption, post-purchase alternative evaluation, and divestment. Today,

consumer behavior and consumer decision-making have become prominent
research topics in various fields of consumer science. The advantages offered by
decision-making models include the possibility to grasp visually what happens as
variables and circumstances change. Moreover, consumer decision-making
models also provide conceptual frames of reference that logically indicate the
interrelationship of variables for research purposes and the possibility to
understand different consumer decision processes and marketing strategies
(Engel, Blackwell, & Miniard, 2007).
2.2 Consumer Decision-Making Styles

Consumer decision-making styles are clearly important in order for
marketers to understand consumer purchasing behavior. Olshavsky (1985)
discussed the idea that in order to understand consumer behavior in purchasing
products, it would be necessary to integrate two separate streams of research.
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The first is that in which a consumer's preference for an alternative good is

based upon the perception of product quality, as defined by extrinsic factors. The
second stream of research is a consumer's preference for an alternative that is
based upon some kind of evaluation process or decision-making process, defined
by intrinsic factors. Combining intrinsic and extrinsic factors can give researchers
and marketing practitioners a better understanding of consumer purchasing
behavior.
Identifying basic characteristics of decision-making styles is central to
consumer-interest studies. When businesses attempt to predict the chances of
success for products and services, it is important to understand how consumers
make their decision. The Consumer Styles Inventory (CSI) was first developed by
Sproles and Kendall (1986) and defined as mental orientation characterizing a
consumer's approach in making consumer choices. There are eight mental
characteristics of the consumer decision-making style in the CSI. These
characteristics are (a) the perfectionist and high-quality conscious consumer, (b)
brand
conscious
and
price-equals-quality
consumer,
(c)
novelty,
fashion
conscious consumer, (d) recreational, hedonistic consumer, (e) price conscious

consumer, (f) confused by over choice consumer, (g) impulsive and careless
consumer, and (h) habitual, brand-loyal consumer.
In 1992, Hafstrom, Chae, and Chung continued the work and generalized
the research across the country. The purpose of the research was to identify
decision-making styles of young consumers in Korea and to find out if these
styles were similar to those of young U.S consumers. The research indicated that
decision-making is more complex and even more important for consumers today
than in the past. However, the finding of this research also indicated that there
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was reason for cautious optimism because the CSI has elements of construct
validity and has potential use across international populations. Moreover, the
research conducted by Durvasula, Lysonski, and Andrews (1993) indicated that
consumer affairs specialists should not assume that instruments validated in the
United States are immediately applicable to other countries. Researchers were
encouraged to develop a more robust decision-making style inventory to account
for the variation in findings as reported in their study.
The study, conducted by Walsh, Mitchell, and Thurau (2001) tested the
generalizability of consumer decision-making styles in different countries and
with non-student samples, prompted an investigation of German shoppers. The
study showed that the original U.S. eight-factor model could not be confirmed
completely, but support was found for six factors. These elements included
brand consciousness, perfectionism, recreationalism/hedonism, confusion by
over choice, impulsiveness, and novelty-fashion consciousness.
After fifteen years of research on CSI, a study by Walsh, Thurau, Mitchell,
and Wiedmann (2001) led them to suggest that researchers and practitioners
use the consumer decision-making styles model as a basis for market
segmentation. This study indicated that understanding consumers' buyingrelated decision-making behavior is important for companies in designing
effective strategies for marketing activities. Consumer decision-making styles are
relatively stable over time and determine the consumer's purchasing behavior. To
use consumer decision-making styles as the basis for market segmentation is a
new trend in marketing research. The applicability of the CSI has been
investigated across several cultures by several authors and replications have
been carried out in South Korea, New Zealand, Great Britain, Germany, Hung
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Kong, United State, and China. The original structure of decision-making styles,
by and large, was confirmed in all seven countries.
2.3 Consumers Perception

Teas and Agarwal (2000, 2001) indicated that consumers use extrinsic
cues to infer product quality. The role of extrinsic product cues is important for
marketers and scholars to enhance consumers' perceptions of product value and
willingness to purchase. Perception refers to the manner in which a person
selects, organizes, and interprets the stimuli to which he or she is exposed
(Reibstein, 2005). In other words, each day our senses are bombarded with
stimuli in the form of sights, smells, sounds, tastes and so on. Meaning is
assigned to the stimuli according to the individual's beliefs and feelings. This is
stimulus interpretation (Schutte & Ciarlante, 2007). Consumers are influenced by
their perceptions of a product when they make a purchase.
Furthermore,
Reibstein (2005) found that the two aspects of perception that have been
identified as being of particular importance to marketers are perceptions of price
and perceived risk.
Consumers often judge the quality of a product or service on the basis of a
variety of informational cues associated with the product. According to Schiffman
and Kanuk (2004), consumers perceived the quality of products by using the
physical characteristics of the product itself, such as size, color, flavor, or aroma.
In the absence of any actual experience with a product, consumers often
evaluate quality based on its external elements, such as price, and the image of
the store carrying the product.
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There are several researchers who have developed and tested models of
consumers' perceptions of value with particular emphasis on consumers' use of
extrinsic cues (such as price, product quality, and brand names) as indicators of
quality and value (Dawar & Parker, 1996; Dodds & Monroe, 1985; Teas &
Agarwal, 2000; Zeithaml, 1988). Dodds, Monroe, and Greawal (1991) specified a
model in which perceived quality and perceived sacrifice mediate the linkage
between extrinsic cues (brand name, store name, and price) and perceived
value. Moreover, they suggested that these three extrinsic cues are associated
with quality and value perceptions. Dodds et al. (1991) also added another
extrinsic cue, which is country of origin. In their study, consumer perceptions of
value are used as a trade-off between perceived quality and perceived sacrifice
that results in a positive linkage between perceived quality and perceived value.
At the same time, this trade-off led to a negative linkage between perceived
sacrifice and perceived value. These results were similar to the studies by Hauser
and Urban (1986) and Zeithaml (1988). Both studies suggested that perceived
quality mediates the linkages between extrinsic cues and perceived value; while
perceived sacrifice mediates the linkage between price and perceived value.
Mowen and Minor (2006) indicated that consumers' perceived quality and
perceived price combine together to influence the perceived value of a brand.
Thus, the perceived value can be defined as the trade-off that consumers make
between perceived quality and perceived price when evaluating a brand. On the
other hand, there are several researchers, who developed models to explain how
perceived risk is important to consumers' willingness to purchase products.
Perceived risk is defined as a consumers' perception of the overall negativity of a
course of action based on an assessment of the possible negative outcomes and
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of the likelihood that those outcomes will occur (Dowling, 1986). Dowling and
Staelin (1994) indicated consumers' perceptions of risk are considered to be
central to their evaluations, choice, and behaviors. So consumer researchers
have defined perceived risk in terms of uncertainty and consequences; perceived
risk increases with higher levels of uncertainty and the chances of greater
association with negative consequences (Oglethorpe & Monroe, 1994).
In 2001, Teas and Aganval proposed an integrated model based on past
studies and reported the results of two experiments designed to test the role of
perceived quality, perceived sacrifice, and perceived risks on consumers'
perceptions of product value. The results of their study indicated that perceived
performance risk and financial risk mediated the relationships that perceived
quality and perceived sacrifice have with perceived value. The model can make it
possible to effectively examine the consumers' perception on product value
within a high-risk market.
3 Practical Application
As argued through the foregoing review of theoretical and empirical
studies, the consumer decision making process is a complex one. The process is
informed and influenced by multiple factors, including subjective consumer
perceptions of a brand/service, the consumer/decision-makers character and
individual personality and the extent to which consumers have recognised their
need for a specific good/service. The implication here is that numerous variables
affect the decision making process and it is imperative for marketers to
understand which of these has the greater influence on the purchase decision so
that they may address it in their campaigns. Proceeding from a recognition of
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the imperatives of identifying the most influential of the variables in question,

the researcher formulated a decision-making matrix, explained below.
In accordance to the formulated decision-making matrix, the purchase
decision begins with the recognition of a need, following which, consumer
personality determines the response or the approach to buying which the
individual will adhere to. If the person in question is impetuous, s/he will clearly
choose the first option available for the satisfaction of the identified need and if
s/he is a brand-conscious shopper, s/he will likely decide to purchase the most
reputable of the available brands. If, on the other hand, the consumer is price
and quality conscious, s/he is likely to be a finicky customer who will engage in
comparison
shopping,
comparing
the
price
and
quality
of
substitute
products/services against one another prior to making a decision. The decisionmaking matrix, therefore, is comprised of the following variables:
Recognition of need: This refers to whether or not the consumer has

identified a need for a specific product/service
Strength of need:
Assuming recognition of need, this refers to
consumer perceptions of the strength of their need for a specific

product/service
Consumer personality: Needless to say, consumer personality will

influence their decision-making process and the outcome of the
process.
Within the parameters of this matrix, the following
consumer characteristics are important:

o
Price and quality conscious
Brand conscious
Impetuous
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Consumer perception of the service/product offered:
When
choosing between substitutes, consumers cognitively process the

information available to them regarding each of these substitutes
and, as such, subjectively react to the product/services in question.
The implication here is that consumer perception of a product is an
individualised and subjective evaluation of a product/service.
Consumers
socio-economic
status:
Socio-economic
status
undoubtedly factors into the decision-making process on several

levels. A consumers social class and education reflects the range
of his experiences and his/her income level is a good indicator of
both the quality accustomed to and the weight given to the price
factor.
Consumers age:
Consumers age is important as, based on the
literature reviewed, the younger the consumer, the more attracted

s/he is to innovative products/services and the more impulsive s/he
is when making the purchase decision.
External influences upon consumer:
Consumer may be subjected
to external influences in the form of the advice of family and

friends.
This should be considered when trying to account for
consumer purchase choices.

Based on the above variables, four respondents were interviewed for this study.
All four respondents had been advised to undergo a remedial massage therapy
program for physical reasons. In one case, joint stiffness was the complaint; in
another it was a slipped disc; in the third it was general muscular complaints;
and in the last, it the complaint pertained to a sports injury. In order to access
these respondents, the researcher went through the Yellow Pages, looking for
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certified massage therapists.
Three therapists, all in the same district were
selected. The researcher went to these therapists and explained the purposes of
the research study in order to obtain permission to interview patients. Only one
of the massage therapists agreed, on the condition that both he and his patients
remain anonymous and that no personal identifying information be collected
from the patients. Of course, the consent of patients was a condition.
The researcher deliberately selected the participants, on the basis of
gender and age. Two women and two men were chosen. One of these women
fell into the 25-35 age group and the other into the 46-60 age group. The same
applies to the male participants. Each participant was interviewed for a period of
approximately 7 to 8 minutes, with the interview focusing on the reasons why
they selected the therapist in question. The older female respondent mentioned
that she had blindly acted upon her doctors recommendation; the older male
participant stated that he had acted on the advice of a co-worker who had
previously suffered the effects of a slipped disc and had visited this same
therapist. The younger male participant who was seeking treatment for a sports
injury, acted upon the advice of his coach.
participant made a conscious decision.
Indeed, only the younger female
She obtained the name of several
massage therapists, contacted each and everyone of them to inquire about price
and credentials. In fact, when she narrowed down her list to two therapists, she
actually visited the offices of both and discretely asked patients about their
experience. She was the only one of the four respondents who made a conscious
decision which subscribes to both earlier reviewed theory and the matrix
discussed above.
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It is significant to note that three of the respondents simply acted upon

the basis of advice given them, albeit by a trusted associate/friend/family
member. In demographic terms, there is little in common between these three
respondents.
This means that one cannot simply explain their purchase
approach in demographic terms. Instead, it is best explained through reference

to the nature of the service in question. All were seeking a personal service of
which they had no prior experience or much information. This meant that they
had to turn to others with experience and information and this is precisely what
they did. Accordingly, the fact that the decision-making matrix does not hold
form here does not invalidate the matrix but is a reflection upon the service in
question.
4 Conclusion
On the basis of both the theoretical and the practical sections of this
research study, a number of conclusions can be articulated. The first, and the
most obvious, is that there appears to be a disparity between theory and
practice. Only one of the respondents made a conscious buyers decision while
the three others simply adhered to the advice given them. The implication here
is that three of the four respondents did not engage in a decision-making
process, in which instance, theories of consumer perception, consumer decision
making and decision-making styles simply do not factor in.
The differences
between the respondents, whether in terms of age, education, experience and,

of course, perceptions, among others, leads to the second conclusion. This is
that the application section does not cast doubt on the theories reviewed earlier
but that the disparity between theory and application is an outcome of the
nature of the service. This is a remedial therapeutic, personal service with which
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the respondents have had no prior experience but which, for health reasons,
they consider critically important.
Importance within the context of lack of
experience is what impelled three of the respondents to seek the advice of those
whom they considered knowledgeable. It is, thus, that this research study will
conclude with an affirmation of the validity of the theories reviewed but with a
note of caution regarding their application to personal services.
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5 References
Dawar, N. & Parker, P. (1996). Consumers' use of brand name, price, physical
appearance, and retail reputation as signals of product quality. Journal of
Marketing, 58(4), 81-95.
Dodds, W. B. & Monroe, K. (1985). The effect of brand and price information on
subject product evaluation. Advances in Consumer Research, 12, 85-90.
Dodds, W. B ., Monreo, K., & Grewal, D. (1 99 1). Effects of price, brand, and store
information on buyers' product evaluation. Journal of Marketing Research,
28, 307-3 19.
Dowling, G. & Staelin, R. (1994). A model of perceived risk and risk-handling
activity. Journal of Consumer Research, 21, 1 19- 134.
Dowling, G. (1986). Perceived risk: The concept and its measurement.
Psychology and Marketing, 3 (3), 193-210.
Du Plessis, P. & Rousseau, G. (1999). Consumer behavior- a multicultural
approach. Sigma, GA: Halfway House.
Durvasula, S., Lysonski, S., & Andrews, J. C. (1993). Cross-cultural generalizability
of a scale for profiling consumers' decision-making styles. Journal of
Consumer Affairs, 27, 55-65.
Engel, J. F., Blackwell, R. D., & Miniard, P. W. (2007). Consumer behavior Mason,
OH: South- Western.
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Hafstrom, J. L., Chae, J. S., & Chung, Y. S (1992). Consumer decision-making

styles: Comparison between United State and Korean young consumers.
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Hauser, J. R. & Urban, G. (1986).The value priority hypotheses for consumer
budget plans. Journal of Consumer Research, 12, 446-462.
Howard, J. (1989). Consumer behavior in marketing strategy. Englewood Cliffs,
NJ: Prentice Hall.
Mowen, J. & Minor, M. (2006). Consumer behavior, a framework. Englewood Cliffs,
NJ: Prentice-Hall.
Oglethorpe, J. E. & Monroe, K. B. (1994). Determinants of perceived health and
safety risks of selected hazardous products and activities. Journal of
Consumers Affairs, 28(2), 326-347.
Olshavsky, R . W. (1985). Use of product-testing organizations' recommendations
as a strategy for choice simplification. Journal of Consumer Affairs, 19,
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Reibstein, D. (2005). Marketing, concepts, strategies, and decisions. Englewood
Cliffs, NJ: Prentice-Hall.
Schiffman, L. & Kanuk, L. (2004). Consumer behavior. Englewood Cliffs, NJ:
Prentice-Hall.
Schutte, H. & Ciarlante, D. (2007). Consumer behavior in Asia. New York: New
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Sproles, B. G. & Kendall, E. L. (1986). A methodology for profiling consumers'

decision-making styles. Journal of Consumer Affairs, 20, 267-279.
Teas, K. & Agarwal, S. (2000). The effect of extrinsic product cues on consumer
perceptions of quality, sacrifice, and value. Journal of the Academy of
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Teas, K. & Agarwal, S. (2001). Perceived value: Mediating role of perceived risk.
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means-end model and synthesis of evidence, Journal of Marketing, 52, 222.
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qwertyuiopasdfghjklzxcvbnmqw

In so doing, the report will

critically discuss the influence of internal factors, such as perception and

Four respondents were

involved in this study.

2 The Consumer Behaviour Construct

Consumer decision making models, consumer decision-

making styles and consumer perceptions are explored in this section.

2.1 Consumer Decision Making Models

search for information, pre-purchase evaluation of alternatives, purchase,

consumption, post-purchase alternative evaluation, and divestment. Today,

2.2 Consumer Decision-Making Styles

The first is that in which a consumer's preference for an alternative good is

conscious consumer, (d) recreational, hedonistic consumer, (e) price conscious

2.3 Consumers Perception

the imperatives of identifying the most influential of the variables in question,

Recognition of need: This refers to whether or not the consumer has

Assuming recognition of need, this refers to

consumer perceptions of the strength of their need for a specific

Consumer personality: Needless to say, consumer personality will

Within the parameters of this matrix, the following

consumer characteristics are important:

Price and quality conscious

Consumer perception of the service/product offered:

choosing between substitutes, consumers cognitively process the

undoubtedly factors into the decision-making process on several

Consumers age is important as, based on the

literature reviewed, the younger the consumer, the more attracted

External influences upon consumer:

Consumer may be subjected

to external influences in the form of the advice of family and

This should be considered when trying to account for

consumer purchase choices.

certified massage therapists.

Three therapists, all in the same district were

Indeed, only the younger female

She obtained the name of several

It is significant to note that three of the respondents simply acted upon

This means that one cannot simply explain their purchase

approach in demographic terms. Instead, it is best explained through reference

between the respondents, whether in terms of age, education, experience and,

Importance within the context of lack of

Hafstrom, J. L., Chae, J. S., & Chung, Y. S (1992). Consumer decision-making

Sproles, B. G. & Kendall, E. L. (1986). A methodology for profiling consumers'

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