Video1 | Howard Sheth Model of Consumer Behaviour

CONSUMER BEHAVIOR

Submitted By:
SHRADDHA NAIK – M19095

Shraddha Naik M19095

Video1 | Howard – Sheth Model

Howard-Sheth model represents consumer behaviour on the market and gives

the decision making process. It explains the rationality of choice of
the product by the consumer under constraints of incomplete information and
limited individual capacity.
Three levels of stages of decision making
Extensive problem Limited problem Routinized response
solving solving behavior
Decision Making Early Advanced
Stage
Choice Criteria Not yet formed Defined Well defined
Brands Little information Undecided about best Strong predisposition towards
brands one brand - Little evaluation of
alternatives
The Howard-Sheth model has four postulates/concepts/variables/constructs:

1) Input

Significative Quality Symbolic Social

Stimuli Price Stimuli Stimuli
Family
Proclaimed Brand Distinctive verbal and visual product
Characteristics Service characteristics Reference Group

Social Class
Availability

2) Output

The result of perceptual and learning variables where a firm intention has been created in the minds of
the consumers. These are different for the different stages of decision making:
Extensive problem solving: Attention Brand Comprehension Attitude Intention Purchase
Limited problem solving: Attitude Intention Purchase
Routinized response behavior: Purchase

3) Perpetual & Learning Construct

These constitute the central part of the model and deal with the psychological variables.
Perceptual constructs – How did consumer receive and understand the information
Learning constructs – Has already made a perception, he will evaluate if he should buy it

4) Exogenous Variables

Not direct part of the decision-making process but includes value of purchase for the buyer, the
character traits & the financial status of a consumer, the pressure of time, membership of social group.

Shraddha Naik M19095

Video2 | EngageMint: Decoding Indian Consumer Behavior | Ankur Warikoo

Mr. Ankur Warikoo, the founder of Nearbuy.com has identified 3 most

important aspects that are crucial to execute a B2C company in India
1) Time & Money intersection quadrant:
Money
This is the defining reason why consumers make the
choices they do. Every choice he does shows his opinion
Time about his time & money. India is a time rich & money
Indian Consumer poor country unlike US which is why we window-shop a
lot while they pay for same day delivery. Money is the key
ingredient for how we drive our purchase decision

Even though majority of Indians lie in the 4th quadrant, the worst mistake would
be to assume that we stay there forever because we fluctuate between the
quadrants. We need to learn how time and money are influencing the
consumer behavior.
2) India is a trust deficit country:
It’s a fact that we are a trust deficit country where everyone starts with a layer
of mistrust & are not used to being trusted. Therefore, all advertisements are
over the top here and they work because there is no point in talking about the
specifics when there is mistrust. Marketers must talk about the experience and
need to make our communication stand out. We have to start operating from a
place knowing that consumers don’t trust us, and then gradually start generating
trust.
3) Marketers – Stop thinking that you are in any shape or form, the
reflection of your normal audience curve:
It is likely that you are far away from what consumers experience. He
emphasized this by giving PVR example where 89% of the offline share (54%)
of bookings were in the half hour before the movie started. He also says that we
aren't the core consumer middle class and probably won’t understand what they
experience.

Shraddha Naik M19095

Video3 | Millennials: Changing Consumer Behavior | Goldman Sachs' Lindsay Drucker Mann

Lindsay Drucker Mann, Vice President in Global Investment Research at

Goldman Sachs explains how companies are responding to Millennials growing
economic influence.
Parameters Millennials Baby Boomers
Born between 1980-2000 1940-1960
Population in US 92 M (largest generation ever) 77 M
Spending over the next 5years 15 % increase 10 % decrease

Lindsay says that Millennials’ tech overlay acts as a catalyst in changing the
economic influence as 80% of them have mobile phones and 75% are present
on social media. They are the go-to person to any technology related query that
their parents/family members have, and they influence the older generations
consumption behavior e.g.: looking at user reviews to compare different apps.
New consumer behavior from Millennials:

3X more likely to talk about brands/product over social media

10X as likely to blog about the brand/product

2X as likely to reference peer review to make a purchase decision

50X more likely to make price comparisons on products: v

dGeneration of Researchers
Company’s response to the new consumer behavior:

No longer able to charge price premium

Proactive approach and investing in areas they think Millennials are

heading

Shraddha Naik M19095

Video4 | Understand Your Customers' Minds | Harvard Business Schools’ Gerald Zaltman

In an interview with Gerald Zaltman, author of Marketing Metaphoria, he

discusses deep metaphors – unconscious viewing lens that influences what we
think, feel, hear, say or do. e.g.: In Michelin tire advertisement, the image of a
baby inserted in a tire filled with stuffed animals reminiscent of Noah’s Ark
floating on water invokes the feeling of safety. Similarly, Budweiser’s What’s
Up commercial showing physically separated people talking over phone with
beer in hand reinforces the feeling of connection not only with one another but
also with the beer.
Zaltman came up with a technique to get at what people don’t know they
know so that companies can use these metaphors to understand and connect
meaningfully with their consumers.

ZMET
Zaltman Metaphor Elicitation Technique

An assignment is given to collect 6-8 pictures that reflect the

Stage 1 feelings about the brand/product; the picture shouldn’t directly be
of the product or similar category.
After 5-6 days from stage1 when the respondent has had enough
Stage 2 time to process the topic both consciously and unconsciously, he
then goes through 2hours of one on one psychoanalysis
aaaaaaaaaaaaainterview where different facets of thinking are tapped.
Lastly, the respondent is made to work with the digital specialist
Stage 3 to create a montage or summary of the key ideas. Its not just
an exercise to put the images together but the respondent is made
ddddddddddddto give preference to the images leading to evolution in thinking.
The above technique was explained through Coco- Cola’s example where the
company understood the importance of connecting not only with others but
also with oneself and this in turn helped them create a campaign that stressed
these features discovered in the study and it turned out to be very successful.
Zaltman advices managers to address the depth deficit, i.e. a lack of deep
imaginative bold thinking in their firms which exists because managers get
caught up in surface level differences and fail to go into deep consumer insights.
When they start going into the unconscious mind of the consumer, what they
discover is that all of the differences that they notice using different methods,
tend to revolve around certain common denominators aka deep metaphors.

Shraddha Naik M19095