Buyer Behaviour Models

The Economic Model

According to the economic model of buyer
behaviour, the buyer is a rational man and his
buying decisions are governed by the concept of
utility.
If he has a certain amount of purchasing power,
a set of needs to be met, and a set of products to
choose from, he will allocate this amount over the
set of products in a very rational manner with the
intention of maximising the utility / benefit / need
satisfaction.
 The Learning Model
According to the learning model, which takes
its cue from the Pavlovian stimulus-response
theory on learning-buyer behaviour can be
influenced by manipulating the drives, stimuli
and responses of the buyer.
The model rests on the human ability of
learning, forgetting, and discriminating.
 The Psychoanalytical Model
The psychoanalytical model draws mainly
from Freudian psychology. According to this
model, a consumer has a complex set of
deep-seated motives that drive him towards
certain behaviour. The buyer has a private
world with all his hidden fears, suppressed
desires and totally subjective longings.
Appealing to these desires and longings can
influence his buying action.
 The Sociological Model
According to the sociological model, the
individual buyer is influenced in his buying
behaviour by society – by intimate groups as
well as social classes.
His buying decisions are not totally governed
by utility; he has a desire to emulate, follow,
and fit in with his environment. And, several
of his buying decisions may be governed by
the compulsions arising out of his being a
social creature.
 The Systems Model
There have also been some efforts to build some
models on buyer behaviour using totally the
standpoint of the marketing man. They belong to
a category called the systems model, where the
human being is analysed as a system, with
stimuli as the input to the system and behaviour
as the output of the system.
Two important models in this category are:
1.The Nicosia Model
2.The Howerd and Sheth Model
 The Nicosia Model
The model tries to establish the links between
a firm and its consumer – how the activities of
the firm influence the consumer and result in
his decision to buy.
The messages from the firm first influences
the predisposition of the consumer towards
the product. Depending on the situation, he
develops a certain attitude towards the
product.
 The Nicosia Model …Contd.
It may lead to a search for the product or an
evaluation of the product. If these steps have
a positive impact on him, it may result in a
decision to buy. This is the sum and
substance of the ‘activity explanations’ in the
Nicosia model. The model groups these
activities into four basic fields as shown in
next two slides:
 The Nicosia Model …Contd.
o Field One with two sub-fields – the firm’s
attributes and the consumer’s attributes.
An advertising message from the firm
reaches the consumer’s attributes.
Depending on the way the message is
received by the consumer, he develops a
certain attitude and this becomes the input
for Field Two.
 The Nicosia Model …Contd.
o Field Two is the area of search and
evaluation of the advertised product and
other alternatives. If this process results in
a motivation to buy, it becomes the input for
Field Three.
o Field Three consists of the act of purchase.
o And Field Four consists of the use of the
purchased item. There is an output from
Field Four – feedback of sales results of the
firm.
 The Howard-Sheth Model
The logic of the model runs like this
- There are inputs in the form of stimuli
- There are outputs beginning with attention
to a given stimulus and ending with
purchase
- In between the inputs and the outputs,
there are variables affecting the
consumers’ perception and learning.
These variables are considered
‘hypothetical’ since they cannot be directly
measured at the time of occurrence.
 The Howard-Sheth Model …Contd.
Model explains buyer decision process using
four major sets of variables, as applicable to
individual consumer:
1. Inputs
2. Perceptual and learning constructs
3. Outputs
4. Exogenous or external variables
 The Howard-Sheth Model
Perceptual Learning Outputs
Constructs Constructs
Inputs
Stimulus Display
Intention Purchase
Significative
a)Quality
b)Price
c)Distinctiveness Overt Intention
d)Service Confidence
e)Availability
Search

Symbolic
a)Quality
Stimulus
b)Price Attitude Attitude
c)Distinctiveness Ambiguity
d)Service
e)Availability
Choice Brand
Social Motives criteria Comprehension Brand
a)Family
Comprehension
b)Reference
Groups
c)Social Class

Attention
Perceptual
Attention Satisfaction
bias
Solid lines show flow of info.-Dashed lines indicate feedback effects
 The Howard-Sheth Model …Contd.
Inputs – by three distinct types of stimuli
Significative Stimuli – In the form of physical,
tangible product characteristic.
Example – Briefcase – Physical appearance,
sturdiness, finish, spaciousness, actual price.
Symbolic Stimuli – In the form of intangible,
perceptual product characteristics.
Example – Briefcase – overall quality perceived
by purchaser perception – price is reasonable /
high / good bargain
Social class – provides third type of stimuli
 The Howard-Sheth Model …Contd.
Perceptual and Learning Constructs
Two factors that may influence consumer’s
interpretation
1.Stimulus Ambiguity
2.Perceptual Bias
Stimulus Ambiguity – Occurs when the
consumer is not sure about the meaning of the
stimulus received.
Perceptual Bias – Occurs when he distorts the
information he receives to fit his established
needs or experiences.
 The Howard-Sheth Model …Contd.
Brand Comprehension – The manner in
which the consumer interprets the stimuli
leads him to the stage of brand
comprehension.
- It refers to consumer’s understanding and
overall rating of the brand.
- If the consumer rates it high, it results in
confidence and eventually purchase
decision.
 The Howard-Sheth Model …Contd.
Output – Purchase Decision is the Output
After product usage – if consumer is satisfied:
- It will reinforce his positive attitude and
purchase intention about the product and
brand.
- Positive attitude makes the consumer
more attentive to the product’s / brand’s
stimuli and further increases his brand
comprehension.
 The Howard-Sheth Model …Contd.
If the Consumer is Dis-satisfied
It will trigger off reaction of negative attitude,
low attention to the product stimuli, poor brand
comprehension and negative intention to
purchase
 The Howard-Sheth Model …Contd.
Exogenous or External Variables
These are not directly a part of decision
making process.
They are important as they influence the
consumer.
They vary from one consumer to another and
include:
o Consumer personality traits
o Social class
o Importance of the purchase
o Financial status etc.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour
The Engel-Kollat-Blackwell Model consists of
four components
1. Information processing
2. Central control unit
3. Decision process
4. Environmental influences
Engel-Blackwell-Kollat Model of Buyer Behaviour
Information Central Environment
Processing Control Unit Influences
Exposure Info. and
Stimuli experience

Personality
Attention F Income
I Culture
L Evaluative Family
Comprehension T criteria
E
Social Class
R Physical
Attitude Other
Retention

Problem recognition
HOLD
Int. search & alternative Output
Ext. Info. evaluation Decision
feedback HOLD Process
Search
Ext. search & alternative
evaluation
HOLD
Purchasing process

Outcomes

Post purchase evaluation Further behaviour

Solid lines show flow of info.-Dashed lines indicate feedback effects
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Information Processing
This component comprises of consumer’s
o Selective exposure
o Attention
o Comprehension and
o Retention of stimuli
Relating to a product / brand received from
marketing / non-marketing sources.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
As a MKTR.
The first step is to ensure that:
o A consumer is exposed to your message
(stimuli)
o Pays attention to it.
o Understands what it is all about and
remember it.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Central Control Unit
The stimuli received and retained is processed
in Central Control Unit stimuli is processed
and interpreted with the help of four
psychological filters:
1. Stored information and past experience
about the product / brand which serves
as a memory for comparing different
alternatives.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Central Control Unit …Contd.
2. Evaluating criteria which the consumer
uses in judging the alternatives.
3. General and specific attitudes which
influence the purchase decision.
4. Basic personality traits which influence
how the consumer is likely to respond to
various alternatives.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
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 processes
e. Decision outcomes
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Decision Process …Contd.
If the purchase decision is such that it requires
EPS, the consumer would go through all the 5
stages.
In case of L.P.S. or R.R.B, some of the
intervening stages may be skipped and the
consumer may directly reach the purchase
decision.
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Environmental Influences
The factors that may influence the consumer’s
purchase decision are:
- Income
- Culture
- Family
- Social class and
- Physical situations
 Engel-Blackwell-Kollat Model of
Buyer Behaviour …Contd.
Environmental Influences …Contd.
Depending on the specific product under
consideration, these factors may have a
favourable / un-favourable influence on the
purchase decision.