MODULE 4

Consumer behaviour

Models of consumer behaviour

– The economic model

– Learning model
– Psycho analytic model
– The Howard Sheth model of buying behaviour
– Nicosia model
– The Engel- Kollat- Blackwell model

1. The economic model

Economic model of consumer behaviour is unidimentional. This means that buying

decision of a person is governed by the concept of utility. Being a rational man he will
make his purchase decisions with the intention of maximising the utility/benefits.
Economic model is based on certain predictions of buying behaviour.

a. Price effect: lesser the price of the product more will be quantity purchased.
b. Substitution effect: lesser the price of the substitute product, lesser will be the
quantity of the original product bought.
c. Income effect: more purchasing power, more will be the quantity purchased
Another important assumption of this model is consumers are rational. And
they buy those products which will give them maximum utility.

Limitations of economic model

1. It is incomplete
2. Assumes market as homogeneous
3. Concentrate only on one aspect of the product i.e. income

2. Learning model

Learning helps marketers to understand how customers learn to respond in new

marketing situations, or how they have learned and responded in the past in similar situations.
Very often it is observed that consumers experience with one product from a firm likely to be
generalised to the other products of the firm. Conversely, consumers also learn to
discriminate and this information will be useful in working out different marketing strategies.
Simply stated, this learning model will help marketers to promote associations of products
with strong drives and cues and positive reinforcements.

3. psycho-analytical model

This model is based on the work of psychologists who were concerned with
personality. They were of the view that human needs and motives operated at the conscious
level as well as sub conscious levels. This theory was developed by Sigmund frued.
According to him human behaviour is the outcome of ‘id’-the source of all psychic energy
which drive us to action (b) ‘super ego’- the internal representation of what is approved by
the society (c) ‘ego’-the conscious directing id impulses to find gratification in a socially
acceptable manner. Thus we can say that human behaviour is directed by a complex set of
deep routed motives.

From marketing point of view this means that buyers will be influenced by symbolic
factors in buying a product. Motivational research involved in investigating motives of
consumer behaviour so as to develop suitable marketing implications accordingly. Marketers
have been using this approach for developing product design, features, advertising and other
promotional techniques.

3. Sociological model

According to this model the individual buyer is considered as a part of the institution
called society. Since he is living in a society, he gets influenced by it, and in turn also
influenced it in its path of development. He is playing many roles as part of various formal
and informal associations or organisations that is as a family member, as an employee of a
firm, as a member of a professional forum etc. Such interactions may leave some impressions
on him and may play an important role in influencing his buying behaviour. Depending on
the income, occupation, place of residence etc each individual member is recognised as
belonging to a certain social class. An individual member will adopt the role suitable to
conform to the style and behavioural pattern of the social class which he or she belongs.
Marketers through a process of market segmentation can work out on the common
behavioural pattern of the specific class and a group of buyers and try to influence their
buying pattern.

4. The Howard Sheth model of buying behaviour

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5. Nicosia model

It is also called system model because the human being is analysed as a system, with
stimuli as the input to the system and human behaviour as the output of the system. This
model was developed in 1966 by Francesco Nicosia. This model tries to explain buyer
behaviour by establishing a link between the organisation and its prospective customers. This
model suggests that messages from the organisation first influences the predisposition of the
consumers towards the product. This may result in search for the product or an evaluation of
the product attribute by the consumer. If the above satisfies the consumer it may result in a
positive response with a decision to buy the product otherwise the reverse may occur.

This model groups the above activity explanation into four basic models.

1. Field one has two sub areas- the consumer attributes and firm attributes. The advertising
message from the company will reach the consumers attributes. Depending on the way
message received by the consumer, a certain attribute may develop. The newly developed
attribute becomes the area for the two.
2. Second area- is related to the search and evaluation, undertaken by the consumer, of the
advertised product and also to verify if other alternatives are available. In case the above step
results in a motivation to buy the product or service, it becomes the input for the third area.

3. The third area explains how the consumer actually buys the product.

4. Fourth area- this area related to the uses of the purchased item. This fourth area can also be
used as an output to receive feedback on sales results to the firm.

Message
Sub field 1 Sub field 2 Attitude
Exposure
Consumers
Firm’s
attributes attribute
(predispositions)

Field 2
Search for
Search and
evaluation of
Evaluati means
Experience on end (s)
relation (s)
(Pre-action
field)

Field 4 Consumptio Motivation

The feed back n storage

Field 3
Decisio
The
n
(Action) purchasing
Purchasing action
Behaviour

6. The Engel- Kollat- Blackwell model

This model talks of consumer behaviour as a decision making process in the form of
five step which occur over a period of time. Apart from these basic core steps, the model also
includes a number of other related variables grouped into five categories.

Information input

Information processing

Product-brand evaluation

General motivating influences

Internationalised environmental influences

The five stages involved in the decision process stage are briefly explained under.
1. Problem recognition: the consumer will recognise a difference between his or her actual
stage and what the ideal state should be. This may occur on account of external stimuli. It
may be notes that the consumer must perceive a sufficiently large discrepancy between actual
and ideal states in order to be activated recognise a problem and find a way to solve a
problem.

2. Information search: