Consumer Behaviour

Psychological factors, process

and models
 defination
• The decision process and physical activity
individuals engage in when evaluating,
acquiring, using, or disposing of goods
and services.
 Consumer buyer process
• Stages
1) recognition of an unsatisfied needs
2) search for relevant information
3) evaluation of alternatives
4) purchase decision process
5) post purchase experience and
behaviour
 Psychological factors
Five factors
• Perception
• Attitude
• Learning
• Motivation
• personality
 Models
• Traditional models of consumers
1) microeconomic model
. Its developed in the19th century
. It deals with goods and prices
. Consumers are preplanned as per
their income
. Preferable products which give
more satisfaction than price
 .with limited budget consumer
want to enjoy
• Consumer prefers to compare quality,
quantity, brand and price

macroeconomic model
• consumers divide their income between
savings and consumption
 Behavioral economics

• founded by MR George katona

• this model influenced by psychological
factors

Actual Consumer Economic

Psychological
Economic sentiment behaviour
process
condition
 Contemporary models,

• Nicosia model
• Howard-Sheth model
• Engel – Kollat – Blackwell model
• Engel – Blackwell - Miniard model
 Howard-sheth model
• Model distinguishes three levels
. Extensive problem solving - high
involvement
. Limited problem solving – medium
involvement
. Habitual buying process – low
involvement
 Input variables
Significative, symbolic, and
social stimuli
• its actual elements which are referred by
consumers before purchasing products
elements like quality, quantity,
features, price and other benefits
. Are generated by producers representing
their products in symbolic form
( advertisements)
. The social environment including family
groups and reference groups
 Output variables
• Attention: attain towards information about
the product or intake
• Comprehension: the buyer grasps
information which is given by store which is
related to particular brand
• Attitude: is it satisfy need
• Intention: decision will be taken in future to
Buy product
• Purchase behaviour
 Hypothetical constructs
• Divided in two major groups
perceptual constructs
learning constructs
. Perceptual constructs
it deals with information processing
a) sensitivity to information
b) perceptual bias: distorting or altering
information
c) search for information
 Learning constructs
• which are related to the buyer’s formation of concepts
means buyer try to get all type of information
a) motives
b) brand potential
c) decision mediators are based on the motives
d) predisposition means a preference towards brand
e) inhibitors refers to environmental forces price and time
pressure
f) satisfaction
 Exogeneous variables
• Number of external variables which
influence buyer decisions
• society
• cultural
• geographical
 The Nicosia model
• This model was developed by Mr Francesco Nicosia
• Links between organization and consumers
• If message which was given by company and it suits attitude of
consumer. So he will go for purchase otherwise it will occur reverse

This model explains in four basic areas

• First, firms attribute ( message which is send by firm to market
through advertisement for consumers)
• Second, consumers attributes ( predispositions means what ever
message sent from firm to consumers, here consumer will try to
search and evaluate the information
• Third, purchasing action (decision)
• After consumption ( feedback)
 Evaluation and limitation
• the flow of information is not complete.
Neglected various factors internal to
consumer.
• no predispositions about the various
brands .
• its overlapping between firms attribute
and consumers attribute means in this
model it said consumers attribute
depended on the firms attribute
Engel – Kollat – Blackwell model
• Introduced in 1968
• Its decision making process
• It consisted five categories
a) information input
b) information processing
c) product – evaluation
d) general motivating influences
e) internationalised environment influences
 Decision process
• Five stages
a) problem recognition
b) information search
c) alternative evaluation
d) choice
e) outcome
 process
• Information input
stimuli
mass
personal
general
marketer dominated
 Information processing
• Exposure
• Attention
• Reception
 Product brand evaluation
• Evaluation criteria
• Beliefs
• Attitudes
• intention
General motivating influences
• Motives
• Personality life style
• Normative compliance- normal, standard
 Internalized environmental
influences
• Cultural norms and values
• Reference group, family
• anticipated circumstances
 conclusion
• Emphasised on the conscious decision
making process
• Understand and flexible
 Engel blackwell miniard
• it consists four sections
• input
• information processing
• decision process
• variables influencing decision process