Models of Consumer Behaviour

Dr. H. Indurkar

The process of buyer behaviour can be explained with the help of four models. 1. Howard Sheth Model. 2. Engel Kollat Blackwell Model. 3. Model of Family Decision Making. 4. A Model of Industrial Buyer Behaviour.

 The

first

two
process

models
as

describe
applicable

the
to

decision

individual consumer.
The third model explains the decision-

making process of a group i.e. family.

The fourth model explains the decision making process in context of organisation.

Howard Sheth Model

This model explains the buyer decision

process using 4 major sets of variables.

1. Input

2. Perceptual and learning constructs.

3. Outputs 4. Exogenous or external variables.

Input :
The input to the customer decision

process is provided by 3 distinct types of

stimuli.

Two types of stimuli are provided by the

marketer in the form of physical tangible

product

characteristics

known

as

Significative Stimuli.

 And

intangible

perceptual

product

characteristics known as Symbolic Stimuli.

Ex : Physical appearance, finishing Significative. Overall Quality Symbolic stimuli.

The actual price paid is significative stimuli

while the perception that the price is reasonable, or too high or is a good bargain is the symbolic stimuli.

The third type of stimulus is provided by the consumers family, reference groups and social class to which he belongs.

Perceptual and Learning Constructs :

These constructs are composed of

psychological variables such as motives,

attitudes, perception which influence the

consumers decision process.

The consumer receives the stimuli and

interprets it.

 The two factors that may influence his

interpretation are : a) Stimulus ambiguity. b) Perceptual bias.

a) Stimulus ambiguity occurs when the consumer

is not sure about the meaning of the stimulus

that he has received and how it may influence his

response.

b) Perceptual bias occurs when he distorts the information he receives to fit his established needs or experiences. The manner in which the consumer

interprets the stimuli leads him to the stage of brand comprehension.

Brand

comprehension

refers
and

to

the

consumers

understanding

overall

rating of the brand.

If the consumer rates it high, it leads him to

have confidence in it and eventually to the

purchase decision.

OUTPUT :
The purchase decision is the output.

If after using the product, the consumer is

satisfied with it, this will reinforce +ve

attitude and purchase intent about the

product and brand.

 Also, the +ve attitude makes the consumer

more attentive to the product / brands stimuli and further increases his brand comprehension. If the consumer is dis-satisfied, it will lead ve attitude, low attention ato the product stimuli, poor brand comprehension and ve intension to purchase.

4. Exogenous Or External Variables :

They are not directly a part of the decision making process and not shown in the model. Vary from one customer to another. They include : a) Consumer personality traits.

b) Social class
c) Importance of the purchase. d) Financial status.

Engel Kollat Blackwell Model

Engel Kollat Blackwell Model

Consists of four components :

1.Information Processing
2. Central Control Unit 3. Decision Process

4. Environmental influences.

1.Information Processing :
Comprises the consumers selective

exposure,

attention,

comprehension,

retention of stimuli relating to a product

or brand received from marketing and

non-marketing source.

2. Central Control Unit :

The stimulus thus received and retained is

processed in the central control unit.

The stimuli is processed and interpreted with the help of four psychological filters : a) Stored information and past experience about the product/brand which serves as a

Memory for comparing different alternatives. b) Evaluate criteria which the consumer uses in judging the alternatives. c) General and specific attitudes which influence

the purchase decision.

d) Basic personality traits which influence how

the consumer is likely to respond to various

alternatives.

3. Decision Process : The decision process component of the model consists of : a)Problem recognition b) Internal search and evaluation c) External search and evaluation

d) Purchase process
e) Decision outcomes.

4. Environmental Influences : The environmental factors that may influence the purchase decision are : 1. Income 2. Culture 3. Family 4. Social Class 5. Physical situations. 6. They may have favourable or unfavourable purchase decision.

Model of Family Decision - Making

In a family decision-making model, it is important

to understand how the family members interact with each other in the context of their consumer decision-making. There are different consumption roles played by various members of the family. These roles are as follows :

1. Influencers : The members who influence the purchase of the product by providing information to the family members. 2. Gate keepers : These members control the flow of information for a product or brand that they favour and influence the family to buy the product of their choice.

3. Deciders :
These are the people who have the power or, money and authority to buy. They play a major role in deciding which product to buy. 4. Buyers : These are the people who actually buy. Mother buying ration for the house, Father buying crayons for his children.

Preparers : Those who prepare the product in the form it is actually consumed. Mother preparing food by adding ingredients to the raw vegetable.

User :
The person who actually uses or consumes

the product. The product can be consumed

individually or jointly by all members of the

family.
Use of car, refrigerator, TV etc by the family.

The roles that the family members play are

different from product to product.

Some

products

do

not

involve

the

influence of family members vegetables

bought by the housewife.

She can play many roles of a decider, preparer as well as the user.

In limited problem solving or extensive problem solving there is usually a joint decision by family members. The inclination of various family members, which when influenced by other factors leads to joint or individual decisions. These factors consists of social class, lifestyle, role orientation, family lifecycle stage, perceived risk, product importance and time pressure.

A Model of Industrial Buyer Behaviour.

The purchases made in an industrial organisation involve many more people of different

backgrounds and it is more complex. There are three main features in this model : 1. There are different individuals involved who have a different psychological make-up. 2. Conditions leading to joint decision making by these individuals.

3. Differences of opinion on purchases or conflicts that have to be resolved to reach a decision. The persons involved in the decision-making are from quality control, manufacturing, finance, research and developments and other possible areas. These are purchase agents, engineers and users etc.

These constitute a purchasing committee. The have : 1(a) Different backgrounds. 1(b) Different information sources.

1(c) Undertake active search.

1(d) They have perceptual distortion. 1(e) Satisfaction with past purchase.

With these characteristics, they develop certain

expectations from the product to be bought. The obvious ones are product quality, delivery time, quantity of supply, after sales service and price. These are known as explicit objectives.

There are other objectives also, which are reputation of the supplier, credit terms, location of the supplier, relationship with the supplier, technical competence and even the personality, skill and lifestyle of salesman.

These are known as implicit objectives.

Different individuals in the purchasing committee give emphasis on different aspects of the product. Engineers looks for quality and standardization of the product. Users think of timely delivery, proper

installation and after sales service. Finance advantage. people look for maximum price

Thus, there are conflicting interests and views that have to be resolved. If autonomous decisions are made, these issue do not arise.

There are conditions leading to autonomous or

joint decisions.

2(a) Product Specific Factors : Perceived Risk : With higher risk joint decisions are favoured. Type of Purchase : Items involving heavy

investments are made jointly, routine and less costly decisions can be made independently. Time Pressure : If goods are urgently required, individual decisions are favoured.

2(b) Company Specific Factors :

Size of the Organization : Larger the size of the

organization, the more the emphasis laid on

joint decision. Organization Orientation : In a manufacturing organization, the purchases are dominated by production personnel and in a technology oriented organization, the decisions are based on engineers.

3. The conflict that arises for buyiung decisions has to be resolved. The resolution can be done by :
a)Problem solving. b) Persuasion.

c)Bargaining.
d) Politicking. The fourth aspect is the influence of situational factors which must be considered.

These are economic conditions such as inflation, recession or boom, price contracts, rationing foreign trade, strikes or lock-outs. Organizational change such as a merger,

acquisition, change of key personnel etc. Some times these factors outweigh the realistic criteria of decision-making.

Thanks