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OBJECTIVES
Understand the concept of modeling within consumer behaviour studies; Evaluate the applicability of traditional models of consumer behaviour; Evaluate the applicability of contemporary models of consumer behaviour.
Types of models
Algebraic models: Fishbeins Attitude Model
n
Ao==biei
i=1
Ao= the persons overall attitude towards the object bi= the strength of his belief that the object is related to attribute I (e.g. ASDA is good value for money) ei= his evaluation or intensity of feelings (liking or disliking) toward attribute i n= the number of relevant beliefs for that person
Types of models(contd.)
Types of models(contd.)
Personal Variable Models: Adapted from Ajzens Theoty of Planned Behaviour( 1991
Types of models(contd.)
MICROECONOMICS
Concentrates on the act of purchasing Interested in knowing what consumers were purchasing, ignoring the why and how underpinning their behaviour.
MICROECONOMICS
Assumptions made:
Consumers wants unquenchable and needs are unlimited and
Consumers allocate their resources to maximise levels of satisfaction Consumers have perfect knowledge The additional satisfaction of a unit that is bought after the first purchase will be less than the first purchases marginal satisfaction Price is key Consumers rational
The KatonaModel
Contemporary Models
Limitations
Incomplete in a number of aspects, very reductionist Variables in the model have not been clearly defined (Rau and Samiee, 1981) A number of assumptions have been made that question the validity of this model, for instance: What type of consumer are we talking about? The company and the consumer have an existing relationship? What type? Is this for a new product? Is this the first exchange the consumer has had with the producer? The model cannot be validated, according to Foxall(1980) it is pre-scientific
HOWARD-SHETH MODEL
LIMITATIONS
Too many variables, a complex model that can be difficult to read Variables in the model have not been clearly defined (Rau and Samiee, 1981) A number of assumptions have been made that question the validity of this model, for instance:
Sharp distinctions between exogenous and other variables have not been made The model cannot be generalised, it cannot be applied to co-joint decision making for example Can this model be applied for non-branded products?
according
to
ENGEL-BLACKWELL-MINIARD MODEL
LIMITATIONS
Too many variables, a complex model that can be difficult to read Variables in the model have not been clearly defined The model is vague (Loudon and Della Bitta, 1993) Key variables are vaguely defined
How do environmental variables affect consumers behaviour? How do motives influence consumers behaviour?
It is a mechanical overview of human behaviour Can this model be applied for non-branded products? Goods? Services? The model cannot be validated, according to Foxall(1980) it is pre-scientific
CONCLUTIONS
A model presents phenomena in such a way that it can be easily communicated Models are just representative of reality, they are not reality There are different types of models (black box, conceptual, algebraic, personal variable and comprehensive models) The Nicosia, Howard-Shethand the Engel, Kollatand Blackwell model have all been criticised on the grounds that they are pre-scientific
CONCLUTIONS
Models operate on the assumption that all human behaviour is rational All models are mechanistic