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Consumer Behavior
Module 01 Part 03
Presented by:
Dr. Balakrishnan Menon
Important models of consumer behaviour:
Model: A simplified version of reality, by describing it,
representing it through Diagrams and Mathematical
symbols.
Traditional Models: Developed by economists, to
understand economic systems balance supply and
demand patterns.
Contemporary Models: concentrates on the decision
making process of consumers. Popular Models are:
The Howard Sheth Model of buying behaviour
The Nicosia Model
The Engle-Kollat-Blackwell Model
MODELS OF CONSUMER
BEHAVIOUR
The Howard Sheth Model of buying behaviour
It attempts to throw light on the rational brand behaviour
shown by buyers when faced with situations involving
incomplete information and limited abilities.
The model refers to three levels of decision making:
Extensive problem solving
Limited problem solving
Routinized response behaviour
The model has borrowed the learning theory concepts to
explain brand choice behaviour when learning takes places
as the buyer moves from extensive to routinized problem
solving behaviour.
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The Howard Sheth Model of buying behaviour
The model makes significant contribution to
understand consumer behaviour by identifying the
variables which influence consumers.
Four components involved in the
model:
Input variables
Output variables
Hypothetic constructs (major variable)
Exogenous variables
The Howard Sheth Model of buying behaviour
Output variables:
These are which buyers observable responses to stimulus
inputs. They appear in the sequence as below:
Attention: Based on the importance of the buyers
information intake.
Comprehension: the store of information the buyer has
about the brand.
Attitude: the buyers evaluation of the particular brand's
potential to satisfy his or her motives.
Intention: the brand which the buyer intends to buy.
Purchase behaviour: the act of actually purchasing,
which reflects the buyers predisposition to buy as
modified by any of the inhibitors.
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The Howard Sheth Model of buying behaviour
Input Variables: these variables acts as stimuli in the
environment.
Stimuli can be of Significative, Symbolic & Social
Significative stimuli are those actual elements of brands,
which the buyer confronts that is the product brand
features
where as Symbolic stimuli are those which are used by
marketers, to represent their products in a symbolic form -
Advertisements.
Social stimuli are generated by the social environment such
as family, friends, groups etc.
The Howard Sheth Model of buying behaviour
Hypothetical Constructs:
The model proposes a number of intervening variables
which have been categorised into two major groups:
perceptual and learning constructs.
Perceptual Constructs include:
Sensitivity to information: the degree to which the
buyer regulates the stimulus information flow.
Perceptual bias: refers to distorting or altering
information
Search for information: it involves actively seeking
information on the brands or their characteristics.
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The Howard Sheth Model of buying behaviour The Howard Sheth Model of buying behaviour
The buyers six learning constructs can be defined as: Exogenous variables:
Motives are general or specific goals impelling action.
These are list of external variables (external to the
Brand potential of the evoked set refer to the buyers
perception on the ability of brands in his / her evoked set
buyer), which can significantly influence buyer
(that are actively considered) to satisfy his or her goals. decisions.
Decision mediators are based on the motives. The buyer will They are not well-defined, like other aspects of the
have certain mental rules for matching and ranking the model, because they are external to the buyer.
purchase alternatives.
Predisposition refers to a preference towards brand in the
evoked set which expresses an attitude towards them.
Inhibitors refers to environmental forces like price and time
pressure which may inhibit or put restrain on the purchase of
a preferred brand.
Satisfaction the extent to which, post actual purchase will
measure up, to the buyers expectation of it.

The Howard Sheth Model of buying behaviour

The Howard Sheth Model of buying behaviour

Limitations of the model:

There is an absence of sharp distinctions between
exogenous variables and other variables.

Some of the variables, which are not well defined,

and are difficult to measure too.

The model is quite complex and not very easy to

comprehend.

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The Nicosia Model
This model attempts to explain buying behaviour, by establishing
a link between the organisation and its prospective customer. It
analyses human being as a system, with stimuli as the input to
the system and the human behaviour as an output of the system.
The model suggests that the message from the first, influences
the predisposition of the consumer towards the product or
services. Based on the situation, the consumer will have a
certain attitude towards the product. This may result in a search
for the product or an evaluation of the product attributes by the
consumer.
If the customer satisfies with above, it may result in a positive
response, with a decision to buy the product, otherwise the
reverse may occur.
The Nicosia Model
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The Nicosia Model
The Nicosia Model explains in 4 basic areas:
Field 1:- the consumer attribute and the firms attributes. The
advt. message sent from the company, will reach the consumer
attributes.
Field 2:- it is related to the search and evaluation, undertaken
by the consumer, of the advertised product and also to verify, if
other alternatives are available.
Field 3:- it explains how the consumer actually buys the
product.
Field 4:- it is related to the uses of the purchased items. It can
also be related to an output to receive feedback on sales results
by organisation.
The Nicosia Model
Limitations:
The flow is not completed and does not mention the
various factors internal to the consumer.
The assumption about the consumer being involved in
the decision process, with no predisposition about the
various brands, is restricting.
Overlapping between firms attributes and consumers
attributes.
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The Engel Kollat Blackwell (EKB) Model: The Engel Kollat Blackwell (EKB) Model:
This model talks of consumer behaviour as a decision Other related Variables included in this
making process in the form of five steps (activities) and
other related variables which occur over a period of model:
time.
Information input
6 steps involved in the decision process: Information processing
Product brand evaluation
Problem Recognition
Decision variables
Information Search
Alternative Evaluation External Factors of influences
Choice
Purchase
Outcome

The Engel Kollat Blackwell (EKB) Model:
The Engel Kollat Blackwell (EKB) Model:
About the model
The model has emphasised on the conscious decision
making process adopted by a consumer.
The model is easy to understand and is flexible.
This model recognises that a consumer may not go
through all the steps always. This is because in case of
repeat purchases the consumer may bypass some of the
steps.

One limitation, the inclusion of environmental variables

and general motivating influences, but not specifying the
effect of these on the buyer behaviour.

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The Engel Blackwell - Miniard (EBM) Model: The Engel Decision

Consumer Blackwell - Miniard
Making (EBM) Model:
Process
Most recent contribution to EKB is by EBM. This stands as
one of the post popular models of CB:
It shares certain things with Howard-Sheth model.
Variables are grouped into four general categories:
Input
Information Processing
Decision process and
Variables influencing decision process.
It incorporates two levels of decision making: EPS and LPS

Balakrishnan Menon Model Consumer Purchase Consumer Decision Making Process

Behavior

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Consumer Decision Making Process Levels of Consumer Decision Making

Five Factors Influencing Consumer Decisions:
Extensive Problem Solving (EPS)
1) Level of consumer involvement Low, Medium, High
2) Length of time required to make decisions Limited Problem Solving (LPS)
3) Price of goods Purchased low, medium, premium
4) Degree of information search required
Routinized Response Behaviour (RRB)
5) Number of alternatives considered

Levels of Consumer Decision Making Levels of Consumer Decision Making

EPS
No established criteria for specific brands in the category
Consumer needs lots of information, for evaluating each
brand, and establishing a set of criteria.
This occurs for an expensive, important or technically
competent product. E.g. Diamonds, LED TV

LPS
Established basic criteria the basic for evaluation
Fine Tuning with additional information, to discriminate
among various brands.
This happens for upgrading
Frequent, thepurchases
low risk product to a newer version.
E.g. Laptop, Mobile Phone, Car, Household Equipments

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Extensive Problem Solving vs. Routinized Response Behavior

Levels of Consumer Decision Making
RRB
Consumer have experience with the product category
Well-established set of criteria for evaluation
Usually review what they already know
Used for frequent low risk purchases
E.g. Routine FMCG products

Frequent, low risk purchases

Extensive Problem Solving vs. Routinized

Response Behavior
The ad featured in Figure 13.1 is by the Gemological Institute of
America (GIA), a nonprofit educational institute of the jewelry
industry. In consumer decision-making terms, purchasing a
diamond represents extensive problem solving because
consumers buy diamonds infrequently and have no established
criteria for evaluating them. The GIA ad tells buyers what to
look for in a diamond: carat weight, clarity, color, cutting style,
and other features. Thank You
In contrast, the Advil ad in Figure 13.2 represents routinized
response behavior, because consumers have experience with
over-the-counter pain relievers and do not need to establish the
criteria for evaluating them. the Advil brand has a quality
reputation and is instantly recognized by millions of consumers
around the world, so consumers reach for Advil without much
thought.