Unit 4:Consumer Buying Behaviour

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Index
No. No.
1 Consumer Behaviour 1
2 Concept of Consumer Behaviour 1

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3 Nature of Consumer Behaviour 1
4 Buying Motives 2

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5 Buying Roles of Consumers 3
6 Types of Buying Decision Behaviour 3
7 Buying Decision Process 5
8 Factors Influencing Consumer Buying Behaviour 7

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9 Importance of Consumer Behaviour 8
Buyer Behaviour Models/Modelling Consumer

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10 10
Decision Making
11 Introduction C 10
12 Types of Consumer Behaviour Models 10
13 Howard Sheth Model 11
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14 Nicosia Model 13
15 Engel-Blackwell-Miniard Model 14
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E
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UNIT 4

Consumer Buying Behaviour

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CONSUMER BEHAVIOUR

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Concept of Consumer Behaviour
Consumer behaviour is also termed as consumer buying behaviour, end user behaviour or
buyer behaviour. Broadly, it is decision-making process of individuals to allocate their potential
resources, i.e., time, effort and money for consumption purpose.
In order to understand the consumers‟ tastes and preferences, analysis of their buying behaviour

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is the most preferable method. For example, if marketers want to study the behaviour of
consumers in buying toothpaste, then they should analyse certain points such as variants (gel,

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regular, stripped or with a pump), brands (national brand, generic brand, private brand), reasons
for buying (to prevent cavities, to remove stains, to brighten and whiten teeth, to get rid of bad
mouth odour), places of purchase (super market, general stores, medical stores), usage

(monthly, biweekly or weekly).

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frequencies (in the morning, after every meal, before going to bed), and the consumption rates

According to Belch and Belch, “Consumer behaviour is the process and activities people
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engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products
and services so as to satisfy their needs and desires”.
According to Leon G. Schiffman and Leslie Lazar Kanuk, “Consumer behaviour can be
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defined as the behaviour that consumers display in searching for, purchasing, using, evaluating,
and disposing of products and services that they expect will satisfy their needs”.
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Nature of Consumer Behaviour

Consumer behaviour possesses the following nature:
1) Varies from Customer to Customer: The manner in which all the consumers behave is not
the same, i.e., it varies from one consumer to another. Several individual factors like, the
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person‟s culture, his life style, his social class, etc., are responsible for this variation.
2) Varies from Product to Product: The behaviour of consumers also varies according to
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products. The consumers may buy large quantity of one product, whereas they may consume
very little or nothing of some other product.
3) Varies Across Geographical Regions: The behaviour of consumers also varies across
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regions and geographical locations. For example,'the behaviour of consumers in rural and
urban areas differs from each other. Rural consumers purchase sachets of shampoos, whereas
urban consumers tend to buy large packs. Similarly, the consumers of South India vary in
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their behaviour from the consumers of North India for the products like hair oil, edible oil,
etc.
4) Important for Marketers: It is very important for marketers to have an understanding of
consumer behaviour. They need to understand the tastes, habits, likes and dislikes of their
customers as well as prospective customers. This knowledge helps the marketers in making
decisions regarding marketing mix and in designing other marketing programmes.

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5) Reflects Status: The buying behaviour of a consumer depends on his status. At the same
time, the kind of products and services that he buys also reflects his status. A person who
buys luxury products like, Mercedes Benz or a Rolex watch is considered as a person of
superior social status in the society.
6) Results in Spread-effect: The buying behaviour of consumers also has a spread-effect, i.e.,
the purchase of certain product made by one consumer may encourage another person to buy

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the same product. A person may decide to purchase those brands of cars, electronic items,
watches, TVs, etc., which his friends and colleagues usually buy. This is one of the reasons
why companies use celebrity endorsements to promote their products.

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7) Improves Standard of Living: The consumer behaviour also results into improved standard
of living for the consumer. The consumer increases his quality of life by buying superior
quality of products and services.
8) Varies from Time to Time: The behaviour of consumers can also evolve over time. This is
because of changes in the person‟s education, social status, stage in the family life cycle,

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disposable income, etc. For example, a person who travels by his scooter may decide to buy
a car after his promotion and increase in family members.
9) Information Search: Consumer behaviour also depends on the information search.

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Consumers are not in a position to purchase any product-or avail any service until they have
information regarding it.
10) Influenced by Various Factors: Behaviour of consumers is affected by a lot of factors such

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as, social, psychological, personal, cultural, societal, demographical, marketing, etc.

Buying Motives
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Motive is the inner feeling that stimulates an individual to act in a certain way. It is an urge
which results into certain action by an individual. An individual buys a product or a service
because of a set of inner desires, which has made him to take a positive decision of acquiring the
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product. Motive to purchase a certain product can arise from many sources - it may be a strong
desire, a very positive feeling, an urge, a stimulus or a drive, etc.
According to D.J. Durian, “Buying motives are those influences or considerations which
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provide the impulse to buy, induce action or determine choice in the purchase of goods or
services”.
Therefore, it is very important to understand the motives of the consumers. This will help the
marketer in getting a very good idea about the attitudes of the consumers, explaining the way a
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consumer behaves, and finding out why he/she chooses to buy or not to buy certain products and
services. The underlying motives that govern the customer‟s behaviour can be of two types:
1) Personal Motives: Personal motives can arise due to the following reasons:
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i) Role-Playing: The shopping activities of individuals are learned behaviour. It is

something an individual learns by virtue of the role that he or she is performing. For
example, a mother would buy articles like baby food and clothing, whereas a housewife
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would buy the items which are of relevance to her household grocery list.
ii) Diversion: Shopping can be seen as an activity performed to escape from the routine
events or to kill the boredom.
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iii) Learning about New Trends: Shopping helps the individuals to keep them updated
with the latest fashion, trends, and designs. For example, a shopping activity at
Shoppers Stop can update the consumers with the latest trend in office and formal wears.
iv) Sensory Stimulation: Shopping can be a source of sensory gratification to the
consumers because of the benefits like watching and feeling new merchandise, sensing
the fragrances, listening to the music, etc.

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2) Social Motives: Social motives can arise due to the following reasons:
i) Social Experience: Shopping gives the individuals an opportunity of making new
friends or meeting old friends, sharing experiences, or just watching what other people
are purchasing.
ii) Status and Authority: Shopping gives the individuals a feel of prestige as they are
treated courteously by the staff of the outlet. For'example, shopping at a premium retail

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outlet will give the individuals a very gratifying'experience.
iii) Pleasure of Bargaining: Many people also enjoy shopping because it gives them the
excitement of buying a product through negotiation and bargaining. Another reason for
their excitement is that the sales person may visit their place to deliver or install the

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product.
Buying Roles of Consumers
Individuals normally play six different roles while purchasing an item:
1) Initiator: The initiator is the individual within whom the thought of buying certain product

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develops originally.
2) Influencer: The influencer plays a role of influencing the purchase decision of some other

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person. He may be a person of good social status, e.g., a professor can be an influencer for
the purchase decisions of students associated with him.
3) Decider: The decider is' the individual who makes the ultimate decision to purchase the

purchase, from where to purchase, etc.

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product. These include the decisions of what to purchase, when to purchase, how to

For example, children are the deciders for some products, such as, toys. Similarly,
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housewives decide on the purchase of many household items like groceries, cosmetics, home
appliances, etc.
4) Gatekeeper: The gatekeeper is something or someone who helps the consumer in deciding to
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purchase certain product out of all the alternatives available. Gatekeeper can either be a
person, or an organisation, or just a pamphlet, etc.
5) Buyer: The person who actually purchases the product is known as buyer. For example, a
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wife may be the decision-maker on what brand of kitchen appliance to buy, but the buyer
could be the husband.
6) User: The person who actually uses the product or avails the service is known as user. For
example, an infant may not be the buyer of a toy but he certainly is the user of it.
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A marketer has to analyse the buying process, various stakeholders involved in it, and different
roles that they play during the process. He should decide suitable strategies for influencing each
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of them to buy his product.

Types of Buying Decision Behaviour

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The suitability of location, quality of construction, reasonability of offered price and the
authenticity of seller are some factors which come in the mind of the consumer prior to
finalisation of a purchase deal. In accordance, the levels in which consumer decision-making can
be made, are as follows:
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1) Complex Buying Behaviour/Extensive Problem-solving/New Task: The first level of

buying behaviour involves extensive problem-solving process. A substantial amount of time
is involved in collecting information and evaluating the alternatives. Under this process,
consumer can go through cognitive dissonance. The perceived risk is also high and the
products in this category are generally expensive, e.g., buying a house, a car or an insurance
policy. Hence, marketer should opt for low-key approach with minimum perceived risk.
2) Dissonance-reducing Buying Behaviour/Limited Problem-solving/ Modified Buy: In this

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level, a consumer follows all the steps involved in decision-making process. Here,
consumers are more experienced and knowledgeable than the complex buyers. The products
purchased by consumers are used by them, but not regularly. Therefore, the risk involved is

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less. For example, clothes, vacations, gifts, etc. To improve this type of buying behaviour, a
marketer needs to enhance its communication process by providing more information about
the product.
3) Habitual Buying Behaviour/Routinised Response Behaviour/ Straight Rebuy/Brand

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Loyalty: In this situation, the customer is habitual to a particular brand over a period of time
and does not spends much time on decision-making process and skips few steps. Here,
same product of a specific brand is purchased regularly or repeatedly by the consumer,

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e.g., groceries, haircut, magazines, etc. The marketer must understand the buying
behaviour of potential consumers and inform existing consumers about the arrival of
superior brands in the market. This will help in improving the buying patterns of the
consumers.
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4) Variety-seeking Buying Behaviour/Brand Switching: In present scenario, there are several
new brands of similar products which are available in the market. This has brought a change
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in the behaviour of consumers who seek variety and do not stick to a particular brand. The
brands which are already leading the market try to ensure that their products are in
abundance in the market to captivate their existing customers and also attract new customers.
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The new brands try to attract the customer by lower price, offering discounts on certain
conditions such as bulk purchase, free coupons or free samples for trial and putting
advertisements on social media.
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Buying Decision Process

The consumer passes through five stages while making the decision
on purchases which are described below:
1) Problem Recognition: The basis of consumer purchase
depends upon his needs. This need may be personal in nature
or might have developed on the basis of advertisements or
recommendation of acquaintances. The marketer has to access

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the product which appeals the customer needs. In other words,
it is about understanding the reason behind the purchase of a
specific product.

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2) Pre-Purchase Information Search: After ascertaining the
need, the next step of consumer is to collect the information
related to the product. Figure: Buying Decision Process
This information may be received through advertisements in

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local newspapers, magazines or through online media or from
an acquaintance. This information collected from internal and external sources enables him
to form an idea about the product he intends to purchase. The next step taken by the

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consumer is to further analyse the available information, consult his close friends to gain
further confidence or discuss with the marketers who have first-hand and latest information
about the product in the market. These will make different levels of influences on the

to consumers:
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decision-making process about the product. There are four sources which supply information

i) Personal Sources: These sources are close to consumer, i.e., family members, close
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friends or acquaintance.
ii) Commercial Sources: Advertisements in local newspaper or magazines, a visiting
salesman, interaction with dealers or through display hoardings.
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iii) Public Sources: These sources can be consumers, mass media, rating organisations, etc.
iv) Experiential Sources: The consumer may personally examine the product for his
satisfaction.
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3) Evaluation of Alternatives: It is a very common practice in present market environment for

examining the products put up for sale by different brands along with the comparative
parameters and prices of each. If the consumer has a firm thinking towards a particular brand
because of his past experience, he may not indulge in looking for alternatives. At present, the
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customers have generally rational thinking which makes them to spend a lot of time in
critically examining the products of other brands as well.
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The consumers do not form an idea about a product in one go, but they prefer to take inputs
from various sources and analyse each thoroughly to arrive at the final decision on purchase.
But, before taking a final decision consumer first looks at the positive and the negative
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aspects of each product and then makes the judgement. This formation of an idea may be
divided into various systems such as: \
i) Evaluative (Choice) Criteria: The different criteria on the basis of which consumers
evaluate and compare products or brands. The evaluative criteria may include price,
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performance0jrunning costs, maintenance costs, after sales service, etc. of a particular

product.
ii) Beliefs: Many a times, the consumer accepts certain product brand due to his past
experiences and characteristics of that product like reliability in performance. Such
beliefs go a long way for continuation of consumer relationship with the product.
iii) Attitudes: Attitude is the level of liking or disliking of a consumer towards a specific

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product. It also depends upon the evaluative criteria and beliefs about the same product.
iv) Intentions: The intentions for purchase are derived from attitudes which may be positive
or negative. In case of a positive response consumers make purchases. However, if there
is a negative response, the chances of purchase are partial.
4) Purchase Decision: After analysing different brands of a product, the consumer restricts his
choices primarily to one or two alternatives. However, financial constraints may restrict the

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consumer decision to shift his purchase plan for some time or he may even let go to the
purchase decision, if no such alternative is found suitable to meet the requirements of the
customer.

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At this stage, consumer sets some preferences among different brands and may purchase the
most preferable one. There are two factors which act as a barrier between purchase intention
and purchase decision:
i) The first factor includes liking or disliking of product by others, who are close to
consumer (may be his wife, children or a close friend). This aspect has two situations:

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a) The negative attitude of others towards the preferred alternative.
b) The importance attached by the consumer to honour or comply the wishes of others.

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ii) The second factor is related to unanticipated factors like performance, durability, etc., of
a product. These factors can change the purchase intention of a customer.
This decision remains unpredictable because it totally depends upon the individual nature of

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the consumer which is largely influenced by perceived risk. The person‟s perceived risk
varies with the amount of money involved, uncertainty and low self-confidence of a
customer.
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5) Post-Purchase Behaviour: After the consumer makes a purchase, he uses the purchased
product and compares the performance with his earlier purchased product. In this
comparison process, he may be satisfied or dissatisfied with the performance of the product.
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In either case, the seller must take a periodic feedback from his consumers and also offer
after sales services. In case of unsatisfactory response of the product, immediate remedial
measures like replacement of faulty product, repair or even return of full money in some
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genuine cases must be carried out for building a good relationship, winning the confidence
of consumers and ensuring future market of the product.
i) Post-Purchase Satisfaction: The post-purchase satisfaction depends on consumer‟s
expectations from the purchased product from his past experiences or experiences shared
from others and his experiences with the performance or taste of the product. Depending
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upon the level of satisfaction derived by the consumer, he may be dissatisfied, satisfied
or delighted. This satisfaction is reflected by the repetitive purchases of the consumer
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and his recommendations to other consumers about the product.

ii) Post-Purchase Actions: The repetition of purchase is an indication of consumer
satisfaction after purchase. However, dissatisfied consumers generally try to return the
product, verify the price offered to them or resort to legal actions like approaching to
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customer care forum, etc., or simply stop buying the product and give a warning or
advice to friends and acquaintances. Such actions on the part of consumers only indicate
poor marketing by the seller.
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iii) Post-Purchase Use and Disposal: The marketer should enlighten himself as to how the
consumers use the product, or dispose it off. In case, the consumers store the product in
closet, it means they have not liked the product and this will certainly make the product
unpopular. Even if the consumer sells it after use, it may tarnish the brand image of the
product. A feedback of marketer on this aspect will help to improve the quality of the
product.

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Factors Influencing Consumer Buying Behaviour

There are various factors and determinants which directly influence the buying behaviour of
customers. They are as follows:
1) Cultural Factors
i) Culture: Culture is the key element for determining individual‟s buying behaviour. The
cultural factors influencing the features of a society consists of earned values, norms,

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rituals, and symbols. For example, a child attains a defined set of values and behaviours
from his family, friends and key institutions. In U.S., a child is open to adapt values such
as individualism, freedom, external comfort, humanitarianism, efficiency, practicality

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and youthfulness.
ii) Sub-culture: A culture has several sub-cultures which assist the marketers to easily
recognise and socialise with its customers. It includes nationalities, religions, racial
groups, and geographic regions. Many a times, these sub-cultures are defined as a market
segment and marketers offer products based on their needs and wants. *

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iii) Social Class: Mostly, every individual in the society is a part of some social class. These
social classes are defined on the basis of caste system which indicates specific roles,
which cannot be changed. Often, the caste system is transformed into a social class.

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Social classes are comparatively identical and permanent societies. These classes share
similar interests, behaviour, and values.
2) Social Factors
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i) Reference Group: A person or a group who is identified as a reference to an individual,
defining the fundamental or fixed attitudes, behaviours or values, is known as a
„reference group‟. Being a social class member, an individual always compares his
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abilities and opinions with the defined abilities of a reference.
ii) Family: Buyer‟s behaviour is largely influenced by his family members. Family is the
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main buying organisation in the society. There are two types of families, such as:
a) Family of Orientation: An individual attains an orientation from parents towards
their religion, politics, self-worth, etc. It is usually observed that grown-up children
who are living with their parents signify them as their ideal reference group.
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b) Family of Procreation: In this type of family, the buying behaviour is affected by

every family member such as spouse, children, parents, etc. They purchase products
considering the requirements of every individual in a family.
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iii) Roles and Status: A person performs different roles and has different status in various
groups such as family, organisation, clubs, etc. The activity performed by a person is
defined as a role and every role carries a status.
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For example, an RBI manager has more status than a sales manager and a sales manager
has a more status than a receptionist. This is because of the difference in their income,
which directly affects the status of the individuals. Therefore, the buying decision of an
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individual is largely based on its role and status in the society.

3) Personal Factors
i) Age and Stage in the Life Cycle: The requirements of a person changes with his age.
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Different stages in life need different sets of products. For example, in childhood, baby
food is consumed and in youth healthy food is consumed. Things like taste of clothes,
home decor and recreational activities are also related to age. Therefore, consumption
pattern is created on the basis of family lifecycle.
ii) Occupation and Economic Circumstances: The consumption pattern of an individual
is also affected by the occupation. For example, a blue-collar employee will buy

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necessary items like formal clothes, office shoes or lunchbox. While, a company head
will buy luxury items like air travel tickets, country club membership, or a large sailboat.
Here, marketers target those consumers who have high amount of interest in their
products. The selection of products also varies in regard with the economic
circumstances such as monthly income, savings, purchasing power, assets, debts, etc.
iii) Lifestyle: Lifestyle is a certain way in which an individual lives his life. It may comprise
of individuals‟ activities, interests, opinions, etc. The lifestyle also depicts the manner in

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which a person interacts with its surroundings. A marketer needs to find out the product
which is most suitable for customers‟ lifestyle. For example, a person belonging to
upper class will buy only luxury cars because it suits his lifestyle.

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iv) Personality: The personality is an individual characteristic of a person. These are
distinctive psychological features that lead to relatively constant and long-term responses
to the market environment. Personality can be helpful in defining the consumers‟
behaviour but the type of personality should be identified precisely and there should be a

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strong relation between the personality type and the products.
4) Psychological Factors
i) Motivation: It is a reason to act in a particular way. The reasons can be physiological or

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psychological, which usually arise out of human needs and wants. These physiological
needs can be hunger, thirst, and discomfort while the psychological needs can be self-
esteem, recognition, or belongingness. A need acts as a motive when it reaches a certain

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level of intensity then it pushes a person to act in the same direction.
ii) Perception: It is a process or a way of looking at a person or a thing. It not just depends
on the physical stimuli rather it also involves the reactions received from the
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surroundings and thinking process within the individual. All these factors combine to
form a perception.
iii) Learning: It is a process of acquiring skills, knowledge and experiences. Learning leads
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to changes in one‟s behaviour mainly with the increasing knowledge and experience. It
generates out of the drives, stimuli, responses, cues and reinforcements. Learning
enables one to take wise decisions.
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iv) Beliefs: Beliefs are attained through actions and learning which strongly influences the
buyer‟s behaviour. It is an idea that an individual accepts as being true. Belief depends
upon one‟s faith, trust, and opinion for a person or a product. For example, customers
have a lot of faith or beliefs on goods and services delivered by Tata Group.
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v) Attitude: Attitude is a certain way of feeling or acting towards a particular thing or a

person. People have different attitude towards areas like religion, politics, clothes,
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music, and food. Attitude is a like or dislike for a particular object which assists the
buyer to decide about a certain product.

Importance of Consumer Behaviour

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1) Affects Production Policies: Organisations need to study consumer behaviour as their

production policies depend upon it. The variation in the taste, preferences and habits of the
customers are determined by studying their behaviour which further helps in planning
production strategies. In order to implement the required changes in the products, it is vital
for the firms to have a close eye on the consumer behaviour.
2) Determines Price Policies: Pricing policies are also determined on the basis of consumer

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behaviour. In many regions, most of the products are sold due to their lower prices. Thus, the
prices of such products are not suitable to increase. While on the other hand, there are many
products which are bought as they add to the status and prestige of the customer. The social
status and prestige of the customers can be used to determine the price of these products and

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thus are easy to increase. Thus, the behaviour of customers regarding particular products
determines their pricing policies.
When consumers are very sensitive to the price change of a product - that is, they buy more
of it at lojw prices and less of it at high prices - the demand for it is price elastic. Durable

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goods such as TVs, stereos, and freezers are more price elastic "than necessities. People are
more likely to buy them when their prices drop and less likely to buy them when theirprioes
rise. By contrast, when the demand for a product stays relatively the same and buyers are not

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sensitive to changes in its price, the demand is price inelastic. Demand for essential products
such as many basic food and first-aid products is not as affected by price changes as demand
for many nonessential goods.

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3) Decisions Regarding Channels of Distribution: Economical distribution channels are vital
for those products which are sold mainly because of their low prices. On the other hand,
some different distribution! channel should be used for those products which require after
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sales service such as TV set, air conditioners, and so on. Thus consumer behaviour also
determines the decisions related to the distribution channel. If the consumer anticipates
credit facilities, desires personal services of the salesperson, or desires to make all
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acquisitions at one place, the channel of distribution might be short or long depending on the
capacity of the company for providing these facilities. If the manufacturer can afford those
facilities, the channel will be shorter, otherwise lengthier.
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The buying habits of consumers like credit facilities, salesman services or the availability of
all products at one place; all these influence the channel choice of the company. The channel
of distribution can be short or long depending on the capability of the company to afford all
the facilities required by the customers. If a company can easily afford all facilities then the
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channel will be short or else will be longer.

When customers purchase large quantities of product, then direct selling is mostly preferred
by manufacturers. Alternatively, when customers purchase small quantities of product
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repeatedly or on a regular basis like cigarettes, matches etc., long channels of distribution are
used such as wholesalers, retailers, etc.
4) Decisions Regarding Sales Promotion: Companies analyse the behaviour of the customer
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to take decisions related to sales promotions. The various motives of consumers behind
buying a product are analysed by producers which are further implemented in the advertising
media to increase the desire of the customer. There are a number of decisions related to the
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packaging, brand, discount, gifts and so on, which are taken into account after studying
consumer behaviour. Customers have become more price sensitive because of the increasing
cost of living. Price offs or discounts for example discourage brand switching by users and
new product launch by competitors. Timely sales promotion can keep consumers from trying
new brands or keep the wind out of a competitor/s grand opening.
Consumer response towards the sales promotion in different ways is an interesting topic of

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study. However, the inferences for experts are evident. Those who understand the different
ways of consumer response towards sales promotions will have an advantage over others.
They will also be able to accurately formulate more effective and suitable promotion
strategies. Consumer responses towards sales promotions can also be explained through
some behavioural concepts and theories. Certain theories only give importance to the
behaviour and environment of the consumer but do not take into consideration their internal
mental processing which can also be the reason behind their response. Cognitive aspects like

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price perception, attribution, perceived risk, etc., are concerned by certain other theories.
5) Utilises Marketing Opportunities: By studying the consumer behaviour, it is possible to
have an in-depth knowledge of needs, aspirations, expectations, and problems of the

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customers. Such information can be used by the marketers to utilise the various marketing
opportunities and overcome challenges.
6) Consumers do not always Act or React Predictably: In the past, customers were sensitive
towards any change in price levels. They believed that the price and quality are directly

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related to each other. But now customers prefer to have value for money, superior features at
a lower price which reflects the latest shift in their behaviours.
7) Rapid Introduction of New Products: The study of consumer behaviour becomes more

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significant mainly due to rapid changes in technology which lead to the introduction of new
products.
Catering the Market: Since the customers are constituents of the market, it is important to
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analyse their behaviour so as to cater their needs.in a better manner. In order to provide the
desired customer satisfaction and delight, it comes quite vital to determine the target market
before the production.
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BUYER BEHAVIOUR MODELS/MODELLING CONSUMER DECISION MAKING
Introduction
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A logical or rational illustration of any event, process or relationship is called a model. Every
individual has some models in his mind, through which he/she understands the world and life
and anticipates possible course of events in the coming future. The role of models can be
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explained by the following points:

1) Help in establishing and developing theories of various fields,
2) Help in understanding and simplifying the complex relationships between entities, and
3) Help in providing framework for further research and discussion.
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With the evolution of consumer behaviour as a distinct discipline, various models, concepts and
approaches describing and explaining factors influencing consumer behaviour, came into light.
These models highlight the mental activities occurring before, during and after the purchasing
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process. The motive is to describe the process of consumer decision-making, especially the
process of finalising the brand options for purchasing.
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In these models, the whole consumer behaviour concept is explained with the help of three main
elements, i.e., input, system, and output; where, system represents the „consumer‟ and input
and output represent the „stimulus‟ and „behaviour‟ respectively.
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Types of Consumer Behaviour Models

Given below are the different consumer behaviour models:

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Howard Sheth Model

As compared to other models, Howard Sheth Model is slightly complex in nature. According to
this model, consumer behaviour is a complicated phenomenon which is influenced by factors
like perception, attitude and learning. The process of decision-making described in this model is
applicable to different individuals. The two main features of this model are as follows:
1) It shows the real complexity of the consumer behaviour process and
2) It shows the framework for including consumer behaviour influencing factors (like

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perception, attitude and learning) in consumer behaviour process.

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Variables of Buyer Behaviour

According to this model, following three sets of variables are used to describe the consumer
behaviour process:
1) Input: According to this model, input is very essential in the process of consumer decision-
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making. This input can be offered by following types of stimuli:

i) Significative Stimuli: The physical features of the product (tangible in nature) like
quality, availability, price, services rendered and distinctiveness, act as significative
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stimuli. Such kind of stimuli are important for decision-making.

ii) Symbolic Stimuli: Symbolic stimuli are same as the significative stimuli, except that
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individual perception is also included in „these stimuli. For example, level of quality
(appropriate or below average), extent of difference of the product with that of other
products, nature of product price (high or low), type of services offered by the product,
the location as well as the extent of ease of availability of the product and the extent of
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after-sales service, all these aspects denote the perception of the individual about a
product or service.
iii) Social Stimuli: Stimuli are called social stimuli when they generate from social class,
family, social groups or friends. Buying behaviour of the individual is directed by these
groups so as to get the support and appreciation of the society in which he/she lives.

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2) Output: Output here represents the final purchase decision of the consumer. After the
purchase, the customer will either be satisfied or dissatisfied with the product. The
satisfaction will result in the development of positive attitude in the customer and increased
brand comprehension. Whereas, from dissatisfaction, a negative attitude may be developed.
The dotted lines represent the feedback while the flow of information is represented by solid
lines. Following are the output variables:
i) Purchase: The real act of buying is denoted by purchase variable, which is a collective

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outcome of other four variables.
ii) Intention: The intention of an individual to buy or not to buy a given product/service is
denoted by intention variable.

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iii) Attitude: The cognition, affect and behaviour of an individual towards a product/service
are collectively termed as attitude. It describes how he/she evaluates a particular brand
and whether he/she likes or dislikes the brand as per its potential.
iv) Brand Comprehension: The extent of information that a consumer processes and stores

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about a particular brand is called brand comprehension. Here, the brand comprehension
variable describes the knowledge of an individual about a particular product/service as
well as the brand.

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v) Attention: The level of information accumulated by an individual in case of being
exposed to a stimulus is called attention. Attention variable denotes the extent of

3) Perceptual and Learning Constructs C

information an individual receives or accepts.

i) Perceptual Constructs: The psychological process, all the multifaceted states and the
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way individuals deal with different types of information signs coming from variety of
sources, come under the category of perceptual constructs. It is observed that one cannot
attend all the available information (attention) and it may lose its meanings (stimulus
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ambiguity). Since an individual is explicitly involved in searching for information,
majority of irrelevant information may come to him/her. Also, due to an individual‟s
own frame of reference, a particular information sign, which he/she can attend, may be
biased (perceptual bias).
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ii) Learning Constructs: Learning constructs include several factors and these are more
complex in nature. One of the learning constructs is ‘motive’. An individual, through
his/her buying behaviour, always wants to achieve a particular goal. This goal is called
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motive. An individual‟s needs derive his/her goals, and therefore, act as an indication of
his/her motives.
Another learning construct is ‘attitude’. An individual‟s attitude towards a particular
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product or brand is closely linked to his/her motive or intention. Factors that may affect
an individual‟s attitude towards any product or brand include positive attitude (whether
formed or not), possibility of change of attitude (in case positive attitude is not formed),
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etc.
Learning constructs also include ‘brand comprehension’ (the knowledge related to the
brand features on the basis of which evoked set of choices of the consumers are made),
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individual‟s „confidence‟ related to his/her brand comprehension, „motives‟ or

„attitudes‟, „criteria for alternatives‟ and finally „satisfaction‟. Satisfaction represents the
process of feedback, i.e., output of the process is evaluated on post-purchase and post-
use basis.
4) Exogenous or External Variables
i) Social and Organisational Setting: According to this model, social and organisational

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setting comes under the category of external variables. The social and organisational
environment around the individual is capable of affecting his/her choices, buying process
and ultimately lifestyle.
ii) Social Class: Every individual belongs to a certain social class. Therefore, he/she has to
follow a certain behaviour so as to adapt the norms of the concerned social class.
iii) Culture: Culture refers to a set of beliefs, norms, traditions and values, which is

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developed over a period of time. Individuals attached to a particular culture show a
common pattern of behaviour. Subcultures may also be prevalent in a particular culture;
therefore individuals belonging to two different subcultures show different behaviour.

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iv) Purchasing Power/Financial Status: The consumption pattern or the buying behaviour
of an individual is also affected by his/her financial status or purchasing power (level of
income/money) at a given time.

Implications of Howard-Sheth Model

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Though it has its own limitations, the Howard-Sheth buyer behaviour theory is supported by
many researchers. The volume of researches influenced by this model reflects its effect on
marketing ideology and thoughts. It is firmly believed by a majority of scholars that the Howard-

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Sheth model has greatly modernised the consumer behaviour study. Numerous variables which
are precisely linked in the working relationships to cover the majority of purchase decision
aspects combined with the effective utilisation of behavioural science contributions is the

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primary advantage of this theory. The inability of the theory to be tested, despite significant
measurement errors, is the biggest disadvantage of this theory. Also, the exogenous and
endogenous variables are not differentiated clearly. Few of these variables cannot be measured
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and others do not fall into precision. The operational specification and definition of a variable
often vary. Most importantly, there is no proper description for a few critical aspects like
perceptual bias.
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The complete coverage of all purchase decision aspects and explanation of responses has
contributed significantly towards studying buying decision, despite all the above-mentioned
limitations and weaknesses. Following are the implications of Howard-Sheth model on
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marketing decisions:
1) A number of variables which determine the customer‟s behaviour with each other are
identified by this model. This proves very helpful for the marketers for shaping a marketing
strategy.
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2) The model facilitates information search and solves customer problems.

3) The fact that a customer‟s purchase decision outcomes are more than only a purchase is
understood by the marketer through this model.
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Nicosia Model
This model was given by Francesco Nicosia, one of the first consumer behaviour modellers,
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who shifted his attention from simple act of purchasing of goods and services to the complex
process of decision-making which the consumers are engaged in. The whole model is described
with the help of flowchart, similar to steps in any computer program. Here, different interrelating
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variables are used which are not essentially dependent or independent. Thus, a circular flow of
effects is described in this model, where each variable acts as an input to the next.

This model explains the consumer behaviour by establishing the relationship between the
consumer and the organisation. According to this model, first the inclination of consumers
towards a particular product or service is influenced by organisational messages. Then, they

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(consumers) develop a specific attitude towards the product as per the situation. Lastly, the
consumer searches the product or evaluates the features of the product. If, following the above
steps, generates a positive response for the consumer, he/she may decide to buy the product,
otherwise he/she may reject it.

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Elements of Nicosia Model

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The Nicosia model, categorises the above mentioned activities into four basic fields:
Field One: This field is divided into two sub-fields, i.e., attributes of the organisation and the
attributes of the consumer. Attributes of the consumer receive advertising message developed by
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the organisation. It develops a certain kind of attribute in consumer based on the way the
message is acknowledged. Thus, the new attribute of the consumer serves as the input for the
next field.
Field Two: This field describes the searching and evaluation of the advertised product and its
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alternatives (if any), performed by the customer. If the above mentioned step motivates the
consumer to buy the product/service, it serves as the input for next field.
Field Three: This field explains how the product is actually bought by the consumer.
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Field Four: This field explains how the product is consumed or stored by the consumer. This
field often serves as the output for the organisations to have sales feedback.
Implications of Nicosia Model
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Nicosia model has following implications on marketing decisions:

1) It enhances the marketer‟s knowledge regarding the customers.
2) The deliberative and conscious decision-making behaviour of the customers is
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emphasised by this model.

3) The “funnel approach” was given by this model, which observes customer movement
from general to specific brand knowledge and from a passive to active stage influenced
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towards a specific brand.

Engel-Blackwell-Miniard Model
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The Engel-Blackwell-Miniard model (EBM model) highlights two types of components of

consumer decisionmaking alongwith describing the interactions and interrelationships among
them. Therefore, it is also called a multimediation model. According to this model, consumer
buying includes following five facets - input, information processing, a decision process,
decision process variables, and external influences. These five facets act as five steps or activities
(occurring over a particular time in a particular sequence) to define the process of consumer

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decision-making. Five other classes of related variables are also included in this model alongwith
the fundamental decision-making steps, these are:
1) Information input,
2) Information processing,
3) Product-brand evaluation,
4) Gfeneral motivating influences, and
5) Internationalised environmental influences.

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Steps in Decision Process
In the given model, arrows represent the direction of influence. Following are the five basic steps
(activities) describing the consumer decision-making process:

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1) Problem Recognition: It starts with consumer realising the difference between his/her actual
state (what it is) and the ideal state (what it should be). Generally, it happens due to any
external stimulus. For example, advertisement of a new smartphone may attract youngsters
and they may realise the need for such a smartphone, or a new car of neighbours or relatives
may develop an urge in individuals to buy the same.

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2) Information Search: Initially, a consumer may have limited information as per his/her
attitude and belief. In this step, extended information about a particular product or service is
gathered by the consumer from different sources. These sources may include friends,

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relatives, peers, neighbours, mass media or salespersons.
Here, the consumer is simultaneously involved in information search and information
processing. Exposure, attention and retention are the three main elements of the information

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processing process. The consumer is exposed to a particular stimuli, gives attention to that
stimuli, and it is received and retained in the memory.
3) Alternative Evaluation: In this step, the consumer will evaluate the alternative
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products/brands available in the market. Consumer‟s personality and his/her goals and
motives determine the methods used for product/brand evaluation. Moreover, the evaluation
of alternatives is influenced by the previously positioned beliefs about certain products/brands
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in the mind of consumers. Thus, the consumer generates a final response (positive or
negative) about a particular product/brand with the help of these beliefs.
4) Choice: It is the next step in consumer decision-making process, in which the consumer
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makes the final choice. Alongwith consumer attitude and intention, two other factors
influencing the choice of the product/ brand are normative compliance and anticipated
circumstances.
The extent to which, people like family members, friends, peers, etc., influence an individual
and his/her decisions, is called „nonnative compliance‟. And „anticipated circumstances‟ are
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the situations which the consumer expects to occur in the near future. Sometimes,
unanticipated circumstances critically influence the choices of the consumers. The capability
of the consumers to handle odd situations like sudden loss of job or property greatly
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influences their choices.

Therefore, the consumer will make a purchase if not confronted with any unanticipated
circumstance, and in case, an unanticipated circumstance occurs, it may become a barrier to
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the purchase decision.

5) Outcome: The final step of decision-making according to this model is outcome. An outcome
can be positive or negative based on the end result. The outcome will be positive, if there is a
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positive end-result. However, if the end result is negative or the individual develops a doubt
about the choice made by him/her, then there will be a negative outcome and further
information is searched by the individual to match his/her choice.

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Implications of Engel-Blackwell-Miniard Model
A number of variables impacting customers have been taken into account by the Engel-
Blackwell-Miniard model.

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Under this model, the focus has been laid on the customer‟s conscious decision-making process.
This model is flexible and can be easily understood. It acknowledges the fact that a customer

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sometimes cannot take all the steps. Some of the steps might be skipped in case of repeat
purchases.
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Following are the implications of Engel-Blackwell-Miniard model:
1) The degree to which a customer gets involved is emphasised by this model. The decision-
making process which assists the marketer in evaluating the importance a customer gives to
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a particular product is also focussed by this model.
2) A number of theories pertaining to attitude change, information processing, motivation, etc.,
which help the marketer in innovation purposes are utilised by this model.
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EXERCISE
1) Discuss the characteristics of consumer behaviour. State the factors influencing consumer
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buying behaviour.
2) Explain buyer behaviour models and the buying decision process.
3) Elaborate the types of buying decision process and the importance of consumer behaviour.
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4) Write short note on:

i) Buying Motives
ii) Consumer behavior
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iii) Variety seeking buying behaviour

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