Modeling and Researching

Consumer Behavior
LEARNING OBJECTIVES
After studying this chapter, you should understand
How useful contributions from related areas have been in our efforts to
understand consumers.
How theories and models are useful in understanding consumers.
Some of the physical and mental activities that consumers engage in before,
during, and after purchasing products and services.
The nature and significance of consumer research.
The role of different consumer-research strategies.
Different methods of gathering consumer information.
How researchers measure various consumer characteristics.

The public has become A portion of the public

increasingly concerned
about the safety and
quality of our physical
environment. There is
much to be concerned
about: toxic dump sites
such as Love Canal, the
amount of chemical
pesticides on farmland,
bigh air pollution levels,
oil spills such as the Ex-
xon Valdez, global warm-
ing, rivers so polluted
that they catch on fire, Chernobyl,ozone
depletion, rain forest destruction, strange
weather patterns, and mountains of non-
biodegradabletrash that we produce each
day are just a few of the problems.
has organized and some
have even become quite
militant in their efforts to
save the environment.
For example,in Rhode
Island a group named
Save the Bay keeps a
watchful eye over the ac-
tions of various private
and public organizations
that might pollute Nar-
ragansett Bay—a large
estuary dominating the
eastern portion of the state. The Green-
peace and Earth First groups are much
more proactive in their methods. In fact,
Earth First members are actuallybeing
prosecuted for their allegedly unlawful and

dangerous actions to preserve forest land.
Marketers have apparently become sen-
sitive to public concerns over environmen-
tal issues. This has led to what has become
promoting products that are claitned to be
environmentally kind. For e.xatnple.in the
late 1980s McDonald's, Procter & Gatnble,
and Lever Bros. all created official direc-
tors and programs to focus on environmen-
tal concerns. In the case of McDonald's,
pamphlets were preparvd to infonn cus-
tomers of its policies and actions on various
environmental issues and in 1990it agreed
to work with the EnvironmentalRefuse
Fund to reduce solid waste generated by its
restaurants. It also stopped using poly-
styrene food packaging (related to ozone
depletion) in favor of plastic coated paper.
Other companies have responded with
comparable approaches.
Surveys suggest that consumers are re-
sponding favorablyto such environmentally
positive actions. One national telephone
survey found that 74 percent said they con-
sider environmental protection a priority,
even if it is at the expense of slower eco-
nomic growth. In another survey, 46 per-
cent said that they regularly recycled
bottles and cans. This survey also found
that the average respondent claimed he or
nearly 7 percent more for an
she would pay product,
environmentally kind
say that the environmen.
I lowever, some
stalling. Part of thc reason
tal movement is do not adcc uatcly
may bc that consuvncrs issues invo vcd in
understand the complex
environmental problems.
taking action on knowledge and un-
In other cases, although
derstanding may bc present, consumers
attitudes toward
may not have favorable survey found
change. For example, a Roper
population aren't
that 24 percent of the activities
very involved in environmental
mainly because they say that others aren't
either. Another 26 percent hold both
positive and negative attitudes on environ-
mental issues. Other evidence suggests that
consumers are not responding well to new
initiatives because when it is a conflict be-
tween environmental concern and econom-
ics, in terms of higher prices for
environmentally kind products, economics
quickly wins. As a consequence, a substan-
tial amount of confusion exists among mar-
keters about how consumers are reacting to
environmental issues and what actions they
are willing to take. This has led to one
recommendation that companies take a
more moderate stance and a lower profile,
specially in promoting their environmen-
tal efforts. I

As the above example demonstrates, marketers are frequently uncertain about the
variablesthat are affectingconsumers. Sometimes this occurs because they do not
clearlyunderstand the extent of variablesthat might be having an influence. Many
of these variables, such as personality or attitudes, are internal to the consumer (and
not directlyobservable) and a varietyof others, such as the economic climate, are
external.In other cases the variablesmay be known by marketers but the exact
nature and relative strength of their influence is not clear. In any of these circum-
stances it is useful to refer to some type of model of how consumers operate in
order to organize and structure what is understood about consumers.
This chapter begins by discussing the nature of models for consumer behav-
ior. The interested reader may find it useful to combine this material with a review
of the section "StudyingConsumer Behavior" from Chapter I. Next, the chapter
reviewsa number of models that have been offered to characterize consumers
behavioror some aspects of it. Finally, discussion turns to some of the issues
confronted when attempting to research consumers and their behavior.
598
 CHAVI"ER 19 MODELING AND RESEARCHING CONSUMER
BEHAVIOR

Asjust mentioned, study'ing consumer behavior can be quite complex, especially

becauseof the many variables involved and their tendency to interact. Models of
consumer behavior have been developed in an effort to overcome these difficulties.

Definitionof a Model
A modelcan be defined as a simiplified representation of reality. It simplifiesby
incorporatingonly those aspects of reality that interest the model builder. Other
aspectsthat are not of interest only add to the complexity of the situation and can be
ignored.Thus an architect's model of a building may not show furniture arrange-
mentsif that is not important to the building's design. Similarly, in modeling
consumerswe should feel free to exclude any aspects that are not relevant to their
behavior.Since we have defined consumer behavior as involving a decision process,
modelsthat focus on this process will be of considerable interest to us.

Types of Models
Anygiven property or process can be modeled in a variety of ways. We could model
somethingby verbally describing it, by representing it with diagrams or mathe-
maticalsymbols, or by characterizing it with some physical process such as electrical
current. The most common consumer-behavior models are verbal, often supported
by a schematic drawing.
Consumer-behavior models can also be classified in terms of scope. Some are
designed to represent a very specific aspect of behavior, such as consumers
repetitivepurchasingof the same brand over a period of time. Others are much
more comprehensive because they attempt to include a great variety of consumer
behaviors.These comprehensive models are less detailed in nature so that they can
represent many diverse situations.

Uses of Models
Modelsare devised for a variety of reasons, but the two purposes for developing
most consumer models are (l ) to assist in constructing a theory that guides research
on consumer behavior and (2) to facilitate learning what is presently known about
consumerbehavior. In both cases the model serves to structure systematicand
logicalthinking about consumers. This entails (1) identifying the relevant variables,
(2) indicating their characteristics, and (3) specifying their interrelationships, that
is, how they influence each other.

Developing Theory A theory is an interrelated set of concepts, definitions, and

propositionsthat presents a systematic view of some phenomenon. It presents a
logicalviewpoint that is useful in understanding some process or activity. More
specifically,a theory has four major functions: description, prediction, explanation,
and control. The descriptive function involves characterizing the nature of some-
thing such as the steps consumers go through while deciding on a purchase. In its
predictive role a theory is used to foretell future events, as when learning theory' is
used to predict what brand names will be easier for consumersto remember.
Theory can be used for explanation in order to learn the underlying causes of some
event or activity. This would occur when we want to understand why a consumer
regularlypurchases the same brand of soup. Is it because of habit or loyalty to the
 DIMENSIONS
PART 5 ADDITIONAL
their
events to predict its
possible to enhances our ability
brand? Although it is
something happens uence or future events. This has
to in many variables involved
cont,vl is the ability sciences due to the marketers and
dimcult in the although
about them. evidence that
and our lack of we will find
can sometimes
is far pussent capabilities. because
of consutner behavior exists
and
variables and
A useful relationship by delineating the relevant
a
theory
is, tnodels can be used to depict or express
on each other. That a unified view of what is known about
In this modelscan to be explored. This
allows
and help identify what of consumer behavior
by selecting the
for analysis and testing.
for using models is to serve
Another pritnaty motivation
Facilitating Iæarning
models provide a structure helpful for organizing
as a learningaid. In this role,
behavior into a logical pattern that is easier
to com-
about consumer
kmowledge interrelationships between relevant variables.
prehend. They also remind us of the particular variable, reference to the model will
Therefore, as we concentrate on one
to consider how it interacts with other variables to influence behavior.
remind us

— MODELS OF CONSUMER BEHAVIOR

often in the study of
Comprehensiveverbal models have been employed most
taking a somewhat differ-
consumer behavior. A variety of such models exist, each
are well known and
ent view of consumers. Those chosen for presentation here the
approaches to
represent a broad perspective. The first two represent traditional
presented next.
study of consumers, while more contemporary viewpoints are

Traditional Models of Consumers

The earliest comprehensive consumer models were actually devised by economists
seeking to understand economic systems. Economics involves the study of how
scarce resources are allocated among unlimited wants and needs.2 Its two major
disciplines—macroeconomics and microeconomics—haveeach developed alter-
native views of consumers. Partially because they have undergone some moderniza-
tion these models still influence contempora1Yviews of consumers.

Microeconomic Model The classical microeconomic approach, developed

early in the nineteenth century, focused on the pattern of goods and prices in the
entire economy.It involvedmaking a series of assumptions about the nature of the
'average"consumer and then developing a theory useful in explaining the workings
of an economy made up of many such people. Focus was placed on the consumer's
act of purchase, which, of course, is only a portion of what we have defined as
consumer behavior.Thus, microeconomistsconcentrated on explaining what con-
sumerswouldpurchase and in what quantities these purchases would be made.
The tastes and preferences leading to these purchases were assumed to be known
already.Therefore, microeconomistschose to ignore why consumers develop
variousneeds and preferences and how consumers rank these needs and prefer-
ences.
 AN')
19 MODELING CONSUMER 601
was based on a n.nnber of assumptions about consumers.
The resulting theory the following:
these were
Primaryamong
and needs are, in total, unlimited and therefore cannot
I Consumers'wants
be fully satisfied.
goals arc to allocate availablepurchas-
2 Givena limited budget, consumers' satisfaction of their wants and needs,
ing dollars in a way that maxitnizes
prcfcrcnccs, without the
3 Consumers independently develop their own
influence of others, and these preferences arc consistent over time.
that is, they
4 Consumershave perfect knowledgeof the utility of an item;
knowexactlyhow much satisfaction the product can give thcrn.
5 As additional units of a given roduct or service are acquired, the truurginal
(additional)satisfaction or uti ity provided by the next unit will bc less than
the marginalsatisfaction or utility provided by previously purchased units.
This is referred to as the law of diminishing marginal utility.
6 Consumers use the ptice of a good as the sole measure of the sacrifice
involvedin obtaining it. Price plays no other role in the purchase decision.
7 Consumers are perfectly rational in that, given their subjective prefer-
ences, they will always act in a deliberate manner to maximize their
satisfaction.

Giventhese assumptions, economists argued that perfectly rational consum-

ers will alwayspurchase the good that provides them with the highest ratio of
additionalbenefit to cost. For any given good this benefit/cost ratio can be
expressedas a ratio of its marginal utility to price (MU/P). Therefore, it can be
showmthat the consumer would seek to achieve a situation where the following
expressionholds for any number (n) of goods

MUI yyo

If any one product's ratio is greater than the others, the consumer can achieve
greatersatisfaction per dollar from it and will immediately purchase more of it.
Providedthere is an adequate budget, the consumer will continue purchasing until
the product'sdeclining marginal utility reduces its MU/P ratio to a position equal to
all other ratios. Additional purchasing of that good will then stop.
Althoughthe microeconomic model has had an important influence on our
understandingof consumers, it provides a severely limited explanation of consumer
behavior,with a major deficiency being its highly unrealistic assumptions. For
example,consumers frequently strive for acceptable and not maximum levels of
satisfaction.3In addition, consumers lack perfect knowledge regarding products,
andthey often influence each other's preferences.4 Also, they appear to use many
variablesin addition to price to assess a product's cost and may frequently use price
as a measure of product quality as well as cost.5 Finally, consumers simply do not
appearto be perfectly rational in all their purchase decisions. These unrealistic
assumptionsmay not have hindered the usefulness of this model in explaining the
behaviorof an entire economic system, but they certainly are not as useful in
Understandinghow actual consumers behave in specific purchase situations of
concemto marketers and others.
An additional shortcoming of the microeconomic scheme occurs as a result of
itsfocuson the specific act of purchase. Much consumer behavior occurs before
andafter this act. Considerable decision making and search for information can
 DIMENSIONS
PART 5 ADDITIONAL
purchases
purchase evaluation as well as additional cannot can follow it.
precede it, and activities, we accept it as a
the model does not address these behavior.
Since of consumer
comprehensive representation the microeconomic model has been useful. It
Even with its limitations,
which to better appreciate contemporary modelsof
provides a perspective horn sensitive to the critical way
we should now be more
consumer behavior. In addition,
consumer model depends on its assumptions, and we
usefulness of a
in which the other models in terms of their
dependence on stated or
should be ready to evaluate
because economists have modernized certain aspects
implied assumptions. Finally, to have an important influence
it continues on
of the microeconomicmodel, consumer behavior.
contemporary thinking regarding
Macroeconomicsfocuses on aggregateflowsin
Macroeconomic Viewpoints
goods and resources, where they are directed,
the economy—the monetary value of
a focus, the macroeconomist draws
and how they change over time.6 From such influence these flows. Although
conclusions about the behavior of consumers who
of consumers, it does offera
the discipline has not generated a full unified model
number of insights into their behavior.
One interest centers on how consumers divide their income between con-
sumptionand savings.This deals with two economic facts of life: higher-income
families spend a smaller proportion •of their disposable income than do lower-
income families,but as economic progress raises all income levels over time these
proportionsdo not seem to change. That is, lower-income groups do not signifi-
cantly change the proportion of income devoted to spending as economic progress
results in an increase in their income. The relative-income hypothesis explains this
apparent contradiction by arguing that people's consumption standards are mainly
influenced by their peers and social groups rather than their absolute income
levels.7Therefore, the proportion of a family's income devoted to consumption is
expected to change only when an income change places the family in a different
social setting. This will not happen when all income levels are rising at the same
time.
Another macroeconomic proposition, the permanent-income hypothesis, ex-
plains why specific individuals are slow to change their consumption pattems even
when their incomes do suddenly change. It proposes that consumers do not use
actual income in any period to determine the amount of their consumption
expenditures,but instead are influenced by their estimate of some average, long-
term amount that can be consumed without reducing their accumulated wealth.s
Sudden increases or decreases in income are viewed by the consumer as tempora ry
and therefore are expected to have little influence on consumption activity.
A variety of other variables have been suggested by macroeconomistsas
influencingconsumptionpatterns. Included are consumers' previous income expe-
Hences, accumulated liquid assets, and variations in taxes or credits. Although
useful, these represent rather traditional approaches to studying con-
sumers, stressing economic variables while tending
to ignore the influence Of
psychological factors.

Behavioral Economics
As mentioned earlier, traditional
economics focused on the results of economic
behavior(supply,quantity demanded,
actual
behavior of consumers themselves. prices, and the like) rather than the were
viewed as complicatingfactors which Behavioral influences on consumers out'
could be assumed to cancel each Other
 cHAVTER 19 MODELING AND RESEARCHING CONSUMER BEHAVIOR
soa
this approach lacking and argued that an appreciation of how
GeorgeKatona found
psychologicalvariables influence consumers could lead to a deeper understanding
economic agents.9 Katona's viewpoint, now known as behavioral
of the behavior of important changes which occurred in our economy,
eN nomiCS, was fostered by
War Il. Rising income levels had given a large nurnber of
especiallyafter Worlddiscretionary income—spending power available after neces-
consumerssignificant
In short, our economy had changed frorn one charac-
sitieshad been purchased. to one described as "more for many."JO
for a few"
terizedas "muchdiscretionary income so interesting to Katona and others is that it
What made
important component of our economic system since a healthy
hasbecome a very' of durable goods such as cars, stereos,
portionof it is devoted to the purchase the cost of these items is usually high,
washingmachines, and CD players. Because economic
consumerswilltend to purchase them when they perceive the general
important
climateand their personal situation as being favorable. Therefore, this
influenceon our economy is somewhat volatile and is affected by consumers
perceptionsand economic expectations.
Averysimplified representation of Katona's viewpoint appears in Figure 19-1.
As in traditionaleconomic models, actual economic conditions are shown as
influencingconsumers.These economic conditions include the rates of interest,
inflation,and unemployment,the level of the GNP, as well as more personal
economicsituations such as the household's current status regarding taxes, income,
and debt. However, as the diagram shows with a modulating arrow, rather than
directlyinfluencingthe consumer, these actual economic conditions are modified
bypsychologicalfactors which include consumers' motivations, knowledge, percep-
tions, and attitudes.
The diagram shows that consumer sentiment results from psychological pro-
cessesmodifringthe effect of actual economic conditionson the consumer. Con-
sumersentimentmay be thought of as the consumer's level of confidence about
currenteconomicconditionshe faces, and his expectationsabout the status of
economicconditions in the future. This consumer sentiment, in turn, is a deciding
factorin the amount of discretionary'spending that the consumer will engage in at
any given point in time. For example, even when current economic conditions are
quiteacceptable,if the consumerexpectsthat an economicdownturnwith pos-
sibilitiesof unemployment will occur in the near future, her purchase of a new car
mightbe postponeduntil she is confident of her abilityto handle future monthly
payments.Katonaargued that when many people in the economy share a similar
view,a large number of consumers will hold back on discretionary spending and
this is likely to lead to an economic downturn.
In order to test his arguments, in the early 1950s Katona began conducting
surveysof consumers and used their responses to a series of economic and personal
financequestionsto develop the Index of Consumer Sentiment (ICS), which is
publishedon a regular basis. This index is claimed to represent the confidence
consumershave in the economy.

FIGURE 19-1
A simplified represen-
tation of Katona's
Actual
behavioral economics
economic Psychological Consumer Economic perspective.
conditions process sentiment behavior
 shvrt

PART5 ADDITIONAL DIMENSIONS

Was Katonajustified in proposing that psychological variables are

better understandthe spending behavior of consurners and their need
economy? the ICS been a good predictor of changes in our effect
economy? On
19-20shows a graph of the ICS frojn 1960 through 1992. Also shown
on go
are times which hase been officially identified by the U.S. govern roent
The graph rather clearly shows that the ICS
ary 1k'H(.xls. as
declinedrecessi(
and. therefore. seems to be a predictor of their

ACURE (o) Index of consumer se ntiment

Association of the
Index of Consumer no
Sentiment (ICS) with
measures of aggre-
economic activity. too
CNdesy of Serveys
Re-
Center. Unrversity
of

1960 1964 1968 1972 1976 J 980 J 984 1988 1992

(b) Index of consumer

total light vehicle sentiment and
sales in millions

-—ICS Sales

16

70

J970
1973
1976 J 979
1982
1985 1988 1991
 C CONSUMER
BEHAVIOR

19-2bshows a time-series graph of the ICS plotted against actual

salesduring the period from 1970 to 1991. Here, again, we sce thatlight
car
rchasesclearly follow trends in the ICS. In fact, when the ICS was used as an
explanatoryvariable in a regression analysis of new car sales, predictive power
doubledwhen compared to using only income as an explanatory variable.ll It

ute co
system

ContemporaryModels
consumer behavior evolved into a distinct discipline, newer ap-
Asthe study of
p roacheswere
offered to describe and explain what influenced consumer behavior.
views are quite different from previous models because of
Thesecontemporary
theirconcentration on the decision process that consumers engage in when deliber-
atingabout products and services. Therefore, contrary to the economic models,
emphasisis placed on the mental activity that occurs before, during, and after
purchasesare made.
A seconddistinguishing characteristic of contemporary models is their exten-
siveborrowingfrom material developed in the behavioral sciences. In fact, most of
thevariablesdiscussed in these models were originally identified in the fields of
and
A large number of contemporary consumer models have been developed,
varyingconsiderablyin terms of their sophistication, precision, domain, and scope.
However,due to space limitations only a few of the more widely quoted models will
be rev'iewed here. 12

Nicosia Model Francesco Nicosia was one of the first consumer-behavior mod-
elersto shift focus from the act of purchase itself to the more complex decision
processthat consumers engage in about products and services.13 He presented his
modelin flow-chart format, resembling the steps in a computer program. Also, all
vanablesare viewed as interacting, with none being inherently dependent or
independent. Thus, the model describes a circular flow of influenceswhere each
component providesinput to the next.
The model is viewed as representing a situation where a firm is designing
communications (ads, products, etc.) to deliver to consumers, and consumers'
responseswill influence subsequent actions of the firm. Generally, as shown in
Figure19-3,the model contains four major components or fields: (1) the firm's
attributesand outputs or communications and the consumer's psychologicalat-
tributes,(2) the consumer's search for and evaluation of the firm's output and other
available
alternatives, (3) the consumer's motivated act of purchase, and (4) the
consumer'sstorage or use of the product. Nicosia assumes that the consumer is
seekingto fulfill specific goals and that initially there is no history between the
COnsumer
and the firm, so no positive or negative predispositions toward the firm
existin the consumer's
mind.
As shown in the figure, the firm produces some type of communication that
theCOnsumer is exposed to. Attributes of the message and the consumer determine
thenatureof the consumer's exposure to it and its influence on him. One conse-
quenceis that the message will influence the consumer's attitude toward the brand.
Thisattitudeis the
input to field two.
The consumer will probably become nwtivated to gain information at this
Point'and search activity is likely to occur. Some search activity will involve
 DIMENSIONS
ADDITIONAL
PART 5 consumer's
attitude
606 e to the
sourceof 0
Fieldone: from
FIGURE 19-3 the
A summary view of con-
SubfieldOne Consumer 's Attitude
Nicosia model of Messoge. attributes
sumer behavior.Nicosia,
Firm'S Exposure
attributes (especially
(Source Francesco Pro- predispositions) Field
Consumer Decision Search
cesses:Marketingand Search for, and
Advertising 1m evaluation of,
prentice-Hali, nglewo:dUsed Evaluation
156.
Cliffs, NJ, 1966,p.Francesco relation(s)
with permissionof Experience pre-action
Nicosta.) iold)
Motivation

Field Four: Consumption

The feed Field Three:
back Storage Decision The act of
purchase
(action)

Purchasing
behavior

information about the communication.

searchinginternal memory for relevant consumer visits stores, reads, etc. This is
the
External search may also occur, where
consumer processes relevant information and
likelyto lead to evaluation.If the
motivated toward it. If nothing inter-
begins to favor the firm's brand he will be
activity and purchase of the
venes, this motivationis likelyto lead to shopping
outcome is that the firm
brand. At this point a number of outcomes can occur. One
receivesfeedbackand another is that the consumer's attitudes toward the brand
may change because he gains experiencewith the product during its storage and
use. This product experienceis feedbackto the consumer's predispositions.
Our review of the Nicosia model has been brief and quite
MODELEVALUATION
general. However, it is sufficient to appreciate that the model was developed from
the author's massive review of existing literature relevant to consumer behavior. In
that regard, it stands as one of the pioneering attempts to consolidate knowledge
about consumers. Its focus on the conscious, deliberative decision-making behavior
of consumerswas also pioneeringas was the viewpoint that the act of purchase is
onlyone stage in the more important ongoing decision process of consumers. The
model also contributed the 'Tunnel approach" which views consumers as moving
from general product knowledgetoward specific brand knowledge and from a
passive position to an active state which is motivated toward a particular brand.
However,the model is not without limitations. First, its computer-like flow
sometimes is restricting and it is incomplete in its treatment
of numerous factors
internalto the consumer.Also, the assumption
decisionprocess with no predispositions that the consumer begins the
regarding the involved firms is quite
restricting.In addition,there appearsto
be
consumerattributesin the model. Despite overlap between firm attributes and
modelwas pioneering in its influence these and several other limitations, the
on how others would attempt to understand
consumer behavior.
 19 AN))

Model
f for
as an integtatiii',
behavior H It be
in theft' to to
be fo for
Thus.it
to by
The
of
of decision
"Jit"' of in
F,vtcnsitv ycf
little
by fo cljooqe (t
defined and st"ietiiteql
entena).
solving—in this advanced sfagc (boir•e (Titeria are
2 1,itnited which set of v,1Jl
well defined but the buyer is still undecided about
about
best serve hit". Thus, the constitner still experiences nnccrfainty
which brand is •'best,
well-defined choice criteria
3 Routinized response bchavior—buycrs have
and also have strong predispositions toward one brand. Little confusion
exists in the consumer's mind and he is ready to purchase a partic•ular
brand svitlilittle evaluation of alternatives.

The model borrows from learning-theory concepts to explain brand choice

behaviorover time as learning takes place and the buyer moves from extensive to
routinizedproblem-solving behavior. Four major components are involved: (l)
input variables, (2) output variables, (3) hypothetical constructs, and (4) exogenous
variables.

INPUTVARIABLESInput variables are depicted in the left portion of the model as

stimuli in the environment. Significative stimuli are actual elements of brands that
the buyer confronts, while stpnbolic stimuli are generated by producers represent-
ing their products in symbolic form, such as in advertisements. Social stimuli are
generated by the social environment including family and groups.

VARIABLESThe five output variables in the right-hand portion of the

modelare the buyer's observable responses to stimulus inputs. They are arranged in
order from attention to actual purchase and are defined as follows:

Attention—the magnitude of the buyer's information intake.

Cornprehension—thebuyer's store of information about a brand.
Attitude—the buyer's evaluation of a particular brand's potential to satisfy his
or her motives.
Intention—the buyer's forecast of which brand he or she will buy.
Purchasebehavior—the actual purchase act, which reflects the buyer's pre-
dispositionto buy as modified by any inhibitors.
HYPOTHETICAL CONSTRUCTSA number of intervening variables are proposed,
represented by hypothetical constructs in the large rectangular central "black box"
shownin Figure 19-4.They are categorized into two major groups: (l) perceptual
608 PART5 ADDITIONAL DIMENSIONS

"GURE 19-4
The Howard-Sheth
model of buyer
behavior.
(Source:John A. Howard
and Jagdish N. Sheth, "A
Theory Of Buyer Behavior" in
Harold H. Kassariianand
Thomas S. Robertson, eds.,
Perspectives in Consumer
Behavior,rev. ed., Scott,
Foresman, Glenview, IL,
1973, p. 523. Reprinted by
permission Of Harold
Kassariian.)
 JO MODELING AND

dealingwith infi»rrnationproceqsingand (2) learning dealing

buycr•s fortnation of concepts,
withthe three perceptual constructs of the gnodcl can bc dowribcd as follows:
The

Sensitivityto infonnation—-thc (lcgrcc to which the bnycr rcgulatc%the

flow.
stimulus information
Perceptualbias—distortingor altering information,
searchfor information—activeseeking of information about brands or their
characteristics.
defined as:
The buyer's six leanaing constructs arc
Motive—generalor specific goals impelling action.
Brandpotentialof the evokedset—the buyer's perception of the ability of
brandsin his or her evoked set (those that are actively considered) to satisfy his
or her goals.
Decisionmediators—the buyer's mental rules for matching and ranking
purchasealternativesaccording to his or her motives.
Predisposition—apreference toward brands in the evoked set expressed as an
attitude toward them.
Inhibitors—environmentalforces such as price and time pressure which
restrainpurchaseof a preferred brand.
Satisfaction—the degree to which consequences of a purchase measure up to
the buyer's expectations for it.

EXOGENOUS VARIABLESAt the top of the black box the model lists a number of
externalvariablesthat can significantlyinfluence buyer decisions. These variables
arenot as well defined as other aspects of the model because they are external to
the buyer.

MODEL
DYNAMICSAlthough there are various aspects of the model that are
beyondthe scope of this chapter, a brief review of its operation is appropriate. The
processstarts when the buyer confronts an input stimulus and it achievesattention.
Thestimulusis subjected to perceptual bias as a result of the influence of the
buyer'spredispositionsas affected by his or her motives, decision mediators, and
evokedset. The modified information will also influence these variables which, in
turn,willinfluence his or her predisposition to purchase.
The actualpurchase is influenced by the buyer's intentions and inhibitors
whichare confronted. A purchase leads the buyer to evaluate his or her satisfaction
with it, and satisfaction increases the buyer's predisposition toward the brand. As
the buyer acquires more information about brands, he or she engages in less
externalsearch for information and exhibits more routine purchase behavior.

MODEL EVALUATION The Howard-Sheth model represents a significant contri-

butionto understanding consumer behavior. It identifies many of the variables
consumers and details how they interact with each other. Also, the
influencing
model—and the earlier work on which it is based—recognizesexplicitlyfor the
 PART 5 ADDITIONAL

tirnc different types of consumer problern solving and information-search

first outcomes of' consumers' decisions arc more than
behaviors. It Olsorecognizes that
Just purchases, litnitations, First, it docs not make sharp
course, the model has ccHain sojne of the variables
between exogenous and other variables. Second,
distinctions difficult to measure, The model also has lirnited
arc not well defined and are highly useful in explaining joint decision makin
generality, For exani )le, it is not members of an organization, Finally, the
between fanjily »crsor other especially for those new to the
difficult to comprehend,
is uitc ccnnplex, jnaking it
fie%ld.
Engel-Blackwell-Miniardmodel was
Engel-Blackwell-Mininrd Model The and Blackwelland has gone through
in 1968 by Engel, Kollat,
originallydeveloped
model has been contributed to by Miniard
mnncrous revisions.J5Most recently the It stands as one of the most popular
in conjunction with Engel and Blackwell.16
representations of consumer behavior.
consumer behavior as a decision
The scheme, shown in Figure 19-5, depicts motivation and need recogni-
(l)
process of five activitieswhich occur over time: evaluation, (4) purchmse, and
tion, (2) search for information, (3) alternative
grouped into four general
(5) outcomes. As shown in the model, variables are
(c) decision process, and
categories: (a) stimulus inputs, (b) information processing,
model depict major
(d) variables influencing the decision process. Arrows in the
directions of influence that specific variables exert. The following discussion of the
decision process characterizes the role and nature of these variables.
Similar to the Howard-Sheth model, the authors recognize two significantly
different modes of operation by consumers. One is described as extended problem-
solving behavior (EPS) which is characterized by high levels of involvement and/or
high levels of perceived risk. Under EPS the product evaluation process will be
rigorous and if necessary the consumer will shop at many outlets. In addition,
satisfaction with the brand is crucial for continued commitment to use the brand. In
limited problem-solvingbehavior (LPS) the consumer is operating under low levels
of involvement and/or low levels of perceived risk. Consequently, he has low
motivation to search for brand information and is only willing to engage in a
nonrigorous evaluation of alternatives. He is not motivated to shop at many outlets
and satisfaction with the purchase will encourage repurchase because of inertia, not
real loyaltywith the product.
The authors argue that the same basic model can be used to characterize both
EPS and LPS behavior. What will change is the degree to which various stages in
the model will be used by consumers. Looking at extended problem-solving behav-
ior first, the model is activated with the consumer recognizing a need from three
possible influences—information stored in memory, environmental influences, and
individual characteristics such as the involvement level of the consumer. Typically,
the consumer becomes aware of a disparity between his present state and his
concept of the ideal state of affairs—the state where he would really like to be.
Because involvement is high, EPS is usually activated by exciting those motives that
are closely related to the consumer's self-concept.
Given that the consumer is aroused to action, the next stage is to undertake
information search. First, the consumer searches internal memory to determine
what is known about the alternatives and how to choose among them. External
search for information will be activated if the consumer does not feel comfortable
with his existing knowledge.The likelihood of external search is also affected by
 19 MODELING AND RESEARCHING CONSUMER BEHAVIOR

Information
Decisionprocess Vonoblo•
processing
Need

Internal
Search
Cult-or.
Sociol
Family
Sitv•tion
Beliefs

Compehension Alternative Attitude

Intention

Individual
Consumer resources
Purchase Motivationond
involvement
Knowledge
Attitvdos
Personality
lifostylo
Domogrophio

Dissatisfaction Satisfaction

FIGURE19-5
The En el-Blackwell-Miniard model of consumer behavior.
(Source: igure from Consumer Behavior, Sixth Edition,by James F. Engel, RogerD. Blackwell,and Paul W. Miniard,copyrightC)
1990by the Dryden Press, reprinted by permission of the publisher.)

characteristicsof the individual (low risk takers will tend to seek more information,
etc.)and environmental influences such as the urgency of need.
Any infonnational inputs are subjected to infonnation processing activities
whichthe consumer uses to derise meaning frotn stimuli. The first step in process-
ing involvesexposure to such stimuli. Exposure can happen on an involuntary
basis—suchas when one sees a billboard next to a highway—or through the active
searchfor information. After exposure, stimuli must capture the consumer's con-
sciousattention to significantly influence extensive problem solving. The attention
stageis highlyselective since it tends to ignore most stimuli and admit only those
that the individualbelieves are important. The cornprehensionstage then involves
derivingmeaning from information that has been attended to, and holding this
meaningin what is termed short-term memory where it can be retained briefly to
allowfurther processing.
The final two steps of information processing are related to the third stage of
the decisionprocess—alternative evaluation. The altemative evaluation stage in-
solvescx»mparinginformation about alternative brands gained through the search
processto etuluative cntena which are product-judging standards that have been
stored in permanent memory. The first information processing step associated with
thisevaluationtask is termed acceptance. Acceptance occurs when information is
Cl)mparedto evaluative critena and, as a result, existing beliefs held in permanent
612 PART 5 ADDITIONAL DIMENSIONS

are either or changed. Whethe,.

is a function of how
reinfotve or to change existingbeliefs eonsutner generates it
the degree to which the supportive or
beliefs and In either
thoughts about the inconnationbeing

infortnation.
tvsults in the loss of such path is that
Generally the
and this leads to changes in the
and intentions to )urchase.
turn, leads to changes in attitudes clitetia are ikely to have
Brands judged against evaluative
negatively, In EPS these results tend to
judged positivelyand others develops an overall weighted
for one another so that the consumer
each brand. leads to an intention to
The alternative evaluationprocess make a purchay«,
evaluated brand. Unless situations (lack of money,
the most favorably stop the
uncertainty
income, etc.) intewene to postpone or process, intentions
about futuw Will
lead to actual purchase behavior. At this point the consumer begins to usethe
product and evaluation continues by comparing performance to expectations.
not meet expectations,dissatisfac_
outcome is satisfaction but if the alternative does
for infonnation aboutthe
tion is the result. These results may lead to further search
brand and/or changes in beliefs. Thus, the process is seen as a continuous onethat
does not stop with a purchase.
In limited problem-soKing situations the consumer is not highly involvedand
a number of the stages are shortened or pursued by the consumer with lessvigor.
For example, need recognition often occurs because the consumer has just runout
of the product. External search is also likely to be minimal and often information is
acquired by just seeing ads and "running into" the sources of product information,
Alternatives are often evaluated by determining whether they meet some minimal
level of acceptability, and purchase is made with minimal deliberation. If the brand
meets expectation, repurchase is likelybut brand loyalty is not likelydue to thelack
of involvement.

MODELEVALUATION Advantages of the Engel-Blackwell-Miniard model include

levelsof
its consideration of the many variables influencing consumers, its focus on
consumer involvement, and its emphasis on the decision-making process regarding
numerous
purchases. Also, the flow of the model is quite flexible and it incorporates
to
theories of consumer behavior treated in this book, such as those relating authors
the
information processing, motivation, and attitude change. For example,
stepsare
recognize that in numerous purchase decisions many of the detailed problem-
passed through very quickly or are bypassed, as in the case of limited
flexibility,
solving behavior. Factors contributing to the model's clarity and
appearstobea
ever, also generate some of its limitations. The primary drawback influence
vagueness regarding the role of some variables. For example, the
is notwell
environmental variables is noted, but their role in affecting behavior vague•
quite
specified. The role of motives in influencing behavior is also mechanistic in its
addition, the model has been criticized as being somewhat it been
treatment of the decision process. However, despite these limitations,consume f'
of
updated regularly to accommodate new evidence about the behavior
since its t
firs
Il
Because of this, the model has withstood the test of time quite we
introduction in 1968,and it continues to provide a very comprehensive
for understanding the many facets of consumer behavior.
 CHAVrER 19 MODELING AND RESEARCHING CONSUMER BEHAVIOR

The preceding sections have presented a considerable amount of information.

It shouldbe apparent to the reader that models are very useful in providinga
frameworkfor organizingand understandingwhat has been learned about the
behaviorof consumers. However, evidence about consumers continues to accumu-
late through new research studies. Therefore, it seems appropriate to briefly review
someof the research approachesand methods that are used to develop knowledge
aboutconsumersand their behavior.It is impossibleto conveythe breadth and
depthof this subject in a portion of a single chapter. Consequently, no attempt is
madeto train the reader in research methods but merely to give a brief exposure to
a sample of important consumer-research concepts.