Consumer Behaviour Models: 28-12-2020 Dr. Shobha Menon, SSTM-SCMS, Associate Professor, MBA 1

Consumer Behaviour Models
28-12-2020 Dr. Shobha Menon, SSTM-SCMS 1

, Associate Professor, MBA
Consumer Modeling
• What is a Model?
• A simplified representation of reality.
• Models are described
– Verbally
– Diagrammatically
– Mathematically
• Models can be
– Specific
– Comprehensive
Use of Consumer Behaviour
Model
Help a marketer
• in identifying and understanding a wide
range of variables that could explain
consumer behavior
• understand and predict buyer behavior
• formulate better marketing programs and
strategies

Contd……..
• Identify areas of information necessary for
making marketing decisions
• Segmenting Markets
• Develop marketing strategies

Limitations
• Does not address all marketing situations
• A model and its components vary in
importance
• Only a general guide

Consumer Behaviour Models
• Economic Model
• Psychoanalytical Model
• Sociological Model
• Howard Seth Model
• Nicosia Model
• Engel Blackwell Model
• VALS

Howard Sheth Model
• Attempt to explain rational brand choice
behavior within the constraints of
• Limited Individual Capacities
• Incomplete Information

The Howard Sheth Model
(1969)
• John Howard and Jagadish Sheth introduced the
Howard Sheth Model in the year 1969
• A buyer could be a personal consumer or even an

industrial consumer

Howard Sheth Model VARIABLES
EXOGENUOUS
INPUTS OUTPUTS

PERCEPTUAL & LEARNING
, Associate CONSTRUCT
Professor, MBA
Levels of decision making
• Three levels of learning/stages of decision
making
a. Extensive problem solving
b. Limited problem solving
c. Routinized response behavior

Howard Sheth Model
• Inputs
• Outputs
• Postulates four sets of
concepts / constructs or
variables • Hypothetical construct
• Perceptual Construct
• Learning construct
• Exogenous variables

Howard Sheth Model - Inputs
• Input Variables consist of three Significative
distinct stimuli (information a) Quality
sources) . Marketer provides b) Price
c) Distinctiveness
d) Service
• Significative-Physical e) Availability
characteristics of product/service Symbolic
a) Quality
b) Price
• Symbolic-Verbal or visual c) Distinctiveness
characteristics d) Service
e) Availability
• Social-Ideas/images attached to Social
product by society a) Family
b) Reference Group
• All three stimuli provide inputs c) Social Class
concerning the product class or
specific brands to Dr.
28-12-2020 the specific
Shobha Menon, SSTM-SCMS
12
consumer.
Howard Sheth Model
- Hypothetical Constructs
• It is the central part of the model
• Deals with psychological variables
• Classified into two groups
• Perceptual Construct
• Learning Construct

Perception
• The process by which an individual
selects, organizes and interprets stimuli
into a meaningful and coherent picture of
the world.
• How we see the world around us

Perceptual Construct
• How the Consumer

Receives and understands Significative Overt
Information Inputs Search
• Stimulus ambiguity
• When the consumer does Stimulus
Symbolic
not understand the message Ambiguity
from the environment Inputs
• Perceptual bias
• When the consumer distorts Attention
the information received so
that it fits his or her
established needs or
experience Perceptual
Bias

15
Learning
• Learning refers to any change in the
content or organisation of long term
memory and/or behaviour
• Learning are the changes in a person’s
behaviour arising from experience
• A process by which individuals acquire
purchase and consumption knowledge
and experience that they apply to future
related behaviour
Learning Construct
• Learning Construct Intention
are concerned with
the concept Confidence
formation
• Category Attitude
• Consumers’ goals
• Motives Brand
• Brand Motive Comprehension
Comprehension Choice
• Satisfaction Criteria
Perceptual Bias
Satisfaction

Howard Sheth Model - Output
• The outputs are the Intention Purchase
results of the
perceptual and
learning variables Intention
• How the consumers
will response to Attitude
these variables
• Purchase Brand
• Attitude Comprehension
• Intention
• Attention
Attention
• Brand
Comprehension
Howard Sheth Model
• Exogenous Variables
➢ Variables which are not explained but have a
bearing on some or all constructs that influence
the output.
➢ The Exogenous Variable include:

• Importance of purchase
• Personality variables
• Social class
• Culture
• Organization
• Time Pressure
• Financial Status
Howard Sheth Model VARIABLES
EXOGENUOUS
INPUTS OUTPUTS

PERCEPTUAL & LEARNING
, Associate CONSTRUCT
Professor, MBA
Criticism to Howard Sheth
Model
• The Howard Sheth has only been partially
tested.
• It does not explain the non- systematic
behaviour.
• The Howard Sheth does recognizes the
exogenous factors but explains little on the
same.

Engel, Kollat, and Blackwell
(EKB) Model
• The EKB model is comprehensive model
and shows the components of decision
making, their relationships and interactions
among them.
• The five distinct parts of consumer
decision making presented are:
– Input, information processing, decision
process, decision process variables, and
external influences

(EKB) Model

Input
• Input includes all kinds of stimuli from our
contact with the world around us:
– Our experiences, contact with others
– Marketer-controlled stimuli (e.g., advertising,
store display, demonstrations)
– Other stimuli (e.g., personal recollections,
conversations with friends)
– External search

Information Processing
• Stimuli are processed into meaningful
information
• Five methods of information processing:
– Exposure
– Attention
– Comprehension
– Yielding
– Retention

Decision Process
• It is triggered at any time during information
processing
• It consists of five steps:
– Problem recognition
– Search
– Alternative evaluation
– Choice
– Outcomes (post-purchase evaluation and behavior)

Decision Process Variables
• Those individual qualities that make people/consumers
unique.
• Decision process variables include
– Motives
– Beliefs
– Attitudes
– Lifestyles
– Intentions
– Evaluative criteria
– Normative compliance and informational influence
– Other aspects of self

External Influences
• Such influences are called “Circles of Social
Influence.”
• They are: culture, sub-culture, social class,
reference groups, and family or household
influences

(EKB) Model

References
• https://nptel.ac.in/courses/110/105/110105
029/


Consumer Behaviour Models: 28-12-2020 Dr. Shobha Menon, SSTM-SCMS, Associate Professor, MBA 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Consumer Behaviour Models: 28-12-2020 Dr. Shobha Menon, SSTM-SCMS, Associate Professor, MBA 1

Uploaded by

Copyright:

Available Formats

Consumer Behaviour Models

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 1

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 3

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 4

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 5

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 6

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 7

• A buyer could be a personal consumer or even an

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 8

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 9

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 10

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 11

• Classified into two groups

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 13

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 14

• How the Consumer

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 15

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 17

➢ The Exogenous Variable include:

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 20

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 21

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 22

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 23

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 24

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 25

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 26

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 27

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 28

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 29

28-12-2020 Dr. Shobha Menon, SSTM-SCMS 30

You might also like