Howar

dShet
hModel
Defi
nit
ion:TheHowar dShethModelisanapproachforanal
yzingthecombinedimpactoft
he
soci
al,psy
chologicalandmarket
ingfact
orsonthebuyingbehaviourorpr
efer
enceofthe
consumersandt heindust
ri
albuyer
sintoalogi
calor
derofinformationpr
ocessi
ng.

JohnHowardandJagadi
shShet
hint
roducedt
heHowardShethModeli
nthey
ear1969.The
conceptwaspubl
i
shedint
hei
rbook‘
TheTheoryofBuy
erBehavi
our
’.

Thi
smodel
att
empt
oexpl
ainr
ati
onal
brandchoi
cebehav
iourwi
thi
ntheconst
rai
ntsof

 Li
mit
edi
ndi
vi
dual
capaci
ty

 I
ncompl
etei
nfor
mat
ion

Thr
eel
evel
sofDeci
sion-
Maki
ngi
nHowar
dShet
hModel

Themodel hasdescri
bedthethreesigni
fi
cantstagesofthebuy er’
sdecision-makingorabout
thediff
erentl
evelofdeci
sionmakingwhilereachingtothedecisionofselectionofaparti
cul
ar
brand.Howardwast hefi
rsttoint
roducethediff
erencebetweenext ensi
vepr oblem sol
vi
ng
behaviour,
li
mitedprobl
em solv
ingbehaviourandr out
ini
zedresponsebehav iour.
EXTENSI
EPROBLEM SOLVI
NG

Thi
sistheinit
ial
stageofdeci
sion-
making,
wheret
hebuyeri
snewt othemarket
.He/shehasno
orl
i
ttl
einformati
onaboutthebrandsandhasnopr
efer
enceforapart
icul
arpr
oductorser
vice.

Thus,aconsumeri
saninf
ormat
ionseekeratthi
slevel,
whocheckoutdi
ff
erentbr
ands
avai
labl
einthemar
ket
,befor
emakingabuy i
ngdecision

Li
mit
edPr
obl
em Sol
vi
ng

Atthi
slev
el,
thebuyerhasinadequat
eorincompl
etei
nfor
mati
onaboutt
hepr oduct,
marketor
thebr
andsoperat
ingini
t.Sometimesthebuyeri
sconf
usedamongthevar
iousalter
nat
ives

Theref
ore,
tomakeabuy i
ngdeci
sion,
he/
shelookf
oracompar
ati
vest
udyoft
hedi
ff
erent
brandsandthepr
oduct
sav ai
l
abl
einthemar
ket.
Rout
ini
zedResponseBehav
iour

Thehabit
ual
responsebehav
iourst
ageiswherethebuy
erisent
ir
elyawareoft
hepr
oduct
s
off
eredbydi
ffer
entbr
andsandthefeat
ures,
prosandconsofeachproduct
.

He/
shei
scapabl
eofev
aluat
ingandcompar
ingt
hemul
ti
pleopt
ionsav
ail
abl
eint
hemar
ket
.

Her
e,t
hebuy
erdeci
desi
nadv
ance,
whi
chpr
oducti
stobepur
chased.

Var
iabl
esofHowar
dShet
hModel

Begi
nni
ngwit
hthestageofextensi
veprobl
em solvi
ng,t
hebuyerslowlyconv
ert
sint
oar
egul
ar
cust
omeroft
heorganizat
ion,
attherout
ini
zedresponsebehav
iourlev
el.

Thiswholeprocessofbuyer
’sdecisi
on-maki
ngfuncti
onsonfourpil
l
arsoft
hismodel
orthef
our
essent
ialel
ement s/
post
ulat
es/constr
ucts/v
ari
ablesoft
hismodel.Thesev
ari
abl
esare
el
aboratedbelow

I
nputVar
iabl
es

Thest
imul
usi
nputsref
ertothei
deaori nfor
mationcl
ueaboutthebr
andandit
spr
oducti
n
ter
msofpr
oductqual
it
y,di
sti
nct
iveness,pri
ce,
servi
ceof
feredandavai
l
abi
li
ty.

Thesecanbef
urt
hercl
assi
fi
edasf
oll
ows:

 Signi
fi
cantSti
muli
:Thesi
gnif
icantsti
muli
arethephy
sicaltr
ait
softheproductandthe
brand.I
tincl
udest
heproduct
’sprice,
qual
it
y,avai
l
abi
li
ty,di
sti
ncti
vechar
acteri
sti
csand
servi
ce.
  SymbolicSti
muli:
Themarket
ingstr
ategiesl
ikeadv
ert
isementandpubli
cit
ycr
eatesa
psychologi
cali
mpactont
hebuy er
’spercept
ionofaproduct
’sr
hetor
ical
andvisi
ble
feat
ures.

 SocialSti
mul i
:Thesoci
alst
imuli
compri
sesofthevar
iousenv i
ronment
alf
actorswhich
areconsideredasasourceofinf
ormat
ionfort
hebuyers.I
tincl
udesfamil
y,soci
alcl
ass
andr ef
erencegroups.

Hy
pot
het
ical
Const
ruct
s

Thehy potheti
calconstr
uct
sdepi
ctthecentr
alpartoft
hemodel.I
tincl
udesall
those
psychologicalvar
iabl
eswhichpl
ayavit
alrol
einthebuyer
’sdeci
sion-
makingprocess.

I
tcanbef
urt
herbi
fur
cat
edi
ntot
hef
oll
owi
ngt
wocat
egor
ies:

Per
cept
ual
Const
ruct
s

Thesecomponent sdef
inetheconsumer’
sprocur
ementandper
cept
ionofthei
nformat
ion
provi
dedattheinputst
age.
Itisanessent
ial
elementsi
ncei
tdri
vest
hebuyer’
sbrandselect
ion
andpurchases,
whi chi
ncl
udes:

 .
Sensi
ti
vi
tytoInf
ormati
on:Thebuyer
’sl
evel
ofunder
standi
ngoropennesst
owar
dst
he
i
nfor
mationr
eceivedbyhi
m/ her
.

 Sti
mulusambigui
ty:
whent
heconsumerdoesnotunder
standt
hei
nfor
mat
ionf
rom
envi
ronment

 Percept
ualBias:
Ont hegroundsofindivi
dualper
cept
ionofeachbr
and,thebuyeris
parti
alt
owardsapar t
icul
arbrand.I
tisthesit
uati
onwhentheconsumerdistort
stge
i
nformati
onreceivedsothatitfi
tshi
s/herestabl
i
shmentneedsorexper
iences.

 Searchf
orI
nfor
mat i
onorover
tsear
ch:
Thebuy
eral
soseeksf
ormor
einf
ormat
iont
o
ensuret
her
ightdeci
sion-
maki
ng.

Lear
ningConst
ruct
s

Thelearni
ngconst
ructsdefi
net
hebuy
er’
sknowl
edge,
opi
nion,
att
it
udeandenddeci
sionon
productorbr
andselect
ion.

Fol
l
owi
ngar
ethev
ari
ousl
ear
ningconst
ruct
sofabuy
er:

 Mot
ive:
Thespeci
fi
cgoal
pur
posef
orwhi
cht
hepr
oductpur
chasei
scar
ri
edout
.
  Choi
ceCr
it
eri
a:Thesetofpr
inci
plesorbenchmar
ksdef
inedf
orpr
oductsel
ect
ion.

 BrandCompr
ehensi
on:
Thei
nfor
mat
ionaboutt
hepr
oductorbr
andper
tai
nedbyt
he
buyer
.

 At
ti
tude:
Thebuyer’
sperspect
iveandwi
l
li
ngnesst
opur
chaseapr
oductofapar
ti
cul
ar
br
anddefi
neshi
s/herat
tit
ude.

 Confi
dence:Thetrustorf
ait
hoft
hebuy
eri
naspeci
fi
cbr
andandi
tspr
oduct
sbui
l
ds
hi
s/herconf
idence.

 Int
enti
on:
Thebuyer’
spurchasemoti
ve,pr
efer
encecrit
eri
a,br
andcomprehension,
consumerat
ti
tudeandconfi
dence,
resul
tsint
heselecti
onofapart
icul
arbrand.

 Sat
isfact
ion:Aft
er-
purchase,thebuyereval
uat
eshis/
herlev
elofcont
ent
ment
,tof
indout
whethertheproducthasfulf
il
ledtheexpect
ati
onsornot.

Out
putVar
iabl
es
Theoutputoraswesay,t
heresul
tofthebuyer
’sdeci
sion-
maki
ngcanbeseeni
nthef
orm of
hi
s/herresponset
owar
dstheinputv
ariabl
es.

I
tconsi
stsoff
ivemaj
orcomponent
swhi
char
ear
rangedsy
stemat
ical
l
ybel
ow:

 Att
enti
on:Thebuyer’
slev
elofconcent
rat
ionandal
ert
nesswit
hwhi
chhe/
she
under
standsthei
nformati
onprovi
ded,i
stermedasat
tent
ion.

 Br
andComprehensi
on:
Theawarenessofthebuy
err
egar
dingapar
ti
cul
arbr
andandi
ts
pr
oduct
sisknownasbrandcomprehensi
on.

 Att
it
ude:Thebuyer’
seval
uati
onofabr andi
nter
msofindi
vi
duall
ikesanddi
sli
kes,
det
ermineshi
s/herbehav
iour
,int
erestandawar
enesst
owardsi
t.

 I
ntent
ion:
Theaim orobj
ect
iveoft
hebuy
erf
orpur
chasi
ngapr
oductcanbeseenast
he
buyi
ngint
ent
ion.

 PurchaseBehav
iour
:Al
ltheabov
eel
ement
sresul
tint
heact
ual
pur
chaseofapr
oductby
thebuyer.
Tounder
standt
heHowar
dShet
hModel
,wemusthav
eani
deaofi
tsar
rangement
.So,
letus

hav
eal
ookatt
hedesi
gnoft
hismodel
ExogenousVar
iabl
e

Therearecert
ainotherext
ernal
fact
orswhichinf
luencet
hebuyi
ngbehaviourofanindiv
idual
or
afi
rm byhamper i
ngtheproductpur
chaseofapreferedbr
and.
Exogenousvari
ablesarenot
di
rectl
ypartofthedecisi
on-
makingprocess.

Theexogenousv
ari
abl
esar
etheenv
ironment
alf
orcesorcomponent
soft
hismodel
.Thesear
e
asfol
l
ows:

1.Import
anceofPur
chase:I
fthebuyerper
cei
vest
hepr
oductt
obel
esscr
uci
al,
inv
olv
ingal
ow
cost
,thent
herei
salit
tl
ebrandprefer
ence

2.Per
sonal
it
yVari
abl
es:Personaltr
ait
sli
keego,
sel
f-
est
eem,anxi
ety
,domi
nance,
aut
hor
it
ari
an,
et
c.i
nfl
uencesabuyer
’sdecisi
on-maki
ngwhil
epur
chasi
ngaproduct
.

3.Soci
alCl
ass:Abuyer
’ssoci
algroup,
incl
udingthefamil
y,f
ri
endsandot
herr
efer
encegr
oups
i
mpactthesel
ecti
onorrej
ecti
onofaparticul
arbrand.

4.Cul
tur
e:Thebuy
er’
sval
ues,
bel
i
efsandi
deasf
ramehi
s/herpur
chasemot
iveandi
nhi
bit
ors.

5.Organi
zation:Thebuyer
’sint
eract
ionwit
hthesocial
groupsdef
inet
hei
raut
hor
ity,
stat
usand
power.Thehy pot
heti
calconstr
uctsofabuyerar
eaffect
edbysuchfor
malori
nformal
communi cati
ons.

6.TimePr
essure:
Thebuyer
,attimes,i
sunderthepressur
eoftaki
ngatimel
ydeci
sion,whi
ch
makeshi
m/herlookf
oral
ternati
vesi
ftheproductofthepr
efer
redbr
andisunav
ailabl
eat
themoment.

7.Fi
nanci
alStat
us:
Thebuyer
’si
nabi
l
ityt
opur
chaseapr
oductorunaf
for
dabi
l
ityr
est
ri
cts
hi
m/herfr
om buyi
ngi
t.
Concl
usi
on

Themaj oradvantageandstrenghtofthet heoryl

iedint hepreci
sionwithwhichalargenumber
ofvari
ableshav ebeenli
nkedinthewor kingrelat
ionshipstocov ermostaspectsofthe
purchasedecisionandtheeffect
iveutil
izati
onofcont ri
buti
onf r
om thebehav i
our
alsciences.
Theweaknessst emsfrom thefactthat,ther
ebeingsubst anti
al measurementer
ror,t
het heor
y
cannotber eal
isti
cal
lyt
ested.Thedisti
nct i
onbetweent heexogenousandendogenousv ari
abl
es
i
snotcl earcut.Andsomeoft hesevariablesdonotl endthemsel veseasil
ytomeasurement .
I
nspit
ealll
imit
ati
ons,themodelbecauseofitscomprehensiv
ecov erageofal
mostallaspect
s
oft
hepurchasedeci
sionandoperati
onalexplanat
ionoftheunder
lyingsti
muliandr
esponses
hav
egivenausefulf
rameofreferenceforthestudyofbuyi
ngdecisionoverti
me.