Unit 2

Models of Consumer Behavior

and Consumer Decision Making
 Contents

Models of Consumer Behavior:

• Input-Process-Output Model
• Nicosia Model
• Howard Sheth Model
• Engel-Kollat-Blackwell Models of Consumer Behavior
• Internal Influences: Motivation, Personality, Perception,
Learning, Attitude, Communications
• External Influences: Social Class, Culture, Reference
Groups, Family members.
Cont..
Levels of Consumer Decision Making
• Consumer Buying Decision Process
• Complex Decision Making or Extensive Problem
Solving Model
• Low Involvement Decision Making or Limited
Problem Solving Model
• Routinised Response Behavior
Four views of consumer decision making
On-line Decision Making
• Meaning & Process/Stages
Cont…
Situational Influences

• Nature of Situational Influence

– The communication Situation, The Purchase Situation, The
usage situation, The disposition situation

• Situational Characteristics and consumption behavior

– Physical features, Social Surroundings, Temporal
Perspectives, Task Definition, Antecedent States
Models of Consumer Behavior
Input – Process- Output Model
Nicosia Model
 Howard Sheth Model
• It shows the rational brand choice behavior by buyer
under conditions of incomplete information. It
proposes levels of decisions making.

It refers to three levels of decision making:

• Extensive Problem Solving

• Limited Problem Solving
• Routinized Response Behavior
There are four components involved in the model:

Input Variables:
• Significative Stimuli
• Symbolic Stimuli
• Social Stimuli

Output Variables:
• Attention
• Comprehension
• Attitude
• Intention
• Purchase Behavior
Hypothetical Constructs:
Perceptual Constructs:
• Sensitivity of Information
• Perceptual Bias
• Search of information

Learning Constructs:
• Motives
• Brand potential of the evoked set
• Decision mediators
• Predisposition
• Inhibitors
• Satisfaction
Howard Sheth Model
 Engel- Kollat- Blackwell Model
This models explains about consumer behavior as a
decision making process

The group of variables are grouped into five categories:

• Information Input
• Information Processing
• Product- brand evaluation
• General motivating influences
• Internationalized environmental influences
Decision Making Stages of EKB Model:

• Problem Recognition
• Information Search
• Alternative Evaluation
• Choice
• Outcome
 Influences Affecting CB

Internal External

• Motivation • Social Class

• Personality • Culture
• Perception • Reference
• Learning Groups
• Attitude • Family Members
• Communications
 Levels of Consumer Decision Making

• Complex Decision Making or Extensive

Problem Solving
• Low Involvement Decision Making or Limited
Problem Solving
• Routinized Responsive Behavior
Four views of Consumer Decision Making:

• Economic View
• Passive View
• Cognitive View
• Emotional View
 Online Decision Making
Stages of Online Decision Making:

• Pre- Purchase Stage

• Purchase Stage
• Post- Purchase Stage
 Pre-Purchase Post- Purchase
Purchase Stage
Stage Stage
• Problem • Mass • Working
Recognition customization towards
• Information or customer
Search personalization satisfaction and
• Evaluation of • Fear of misuse loyalty
alternatives of personal • Tackling
information and returns
credit
• Building
trustworthiness
of the Website
• Convert
browsers into
buyers
 Situational Influences Affecting CB

• Situational influences are those factors particular to a

time and place that do not follow from a knowledge of
the stable attributes of the consumer and the stimulus
and that have an effect on current behavior
• Consumers often behave very differently depending on
situation.
 Types of Situations
Communication Situation
• Where? Alone or with others? Surrounding
noise?
Purchase situation
• Where? Alone or with others? In a hurry?
Consumption situation
• Public or private? For pleasure or for work?
Disposal situation
• Required for next purchase? Trade-ins?
 Dimensions of Situational Influence
Five dimensions of situational influence:

• Physical Surroundings.
• Social Surroundings.
• Temporal Perspectives.
• Task Definition.
• Antecedent states
 Examples of Physical Surroundings

• Store location
• Interior decor
• Music
• Temperature (air-conditioning or heating)
• Amount of choice provided (by product category or
across the categories)
 Examples of Social Surroundings

• Types of customers in the store

• Queues and crowding
• Whether the consumer is likely to be known by
others/recognised
• Whether there are high profile people/celebrities
shopping at that store
• Whether the product will be consumed privately or in
the presence of others
 Examples of Temporal Perspectives

• Whether the product is seasonal

• Whether the product is urgently required
• Whether there is time for shopping or not: the product
may be just an excuse for shopping
• How long the previous product lasted or was
expected to last
 Example of Task Influences

• Is the product utilitarian or used as a status symbol?

• Is it a gift or for oneself?
• Must the product be long lasting?
• Is the product intended for several uses? (e.g. a laptop
for study and internet access)
 Examples of Antecedent States
Moods
 Feeling sad triggers buying sweets or going to a
funny movie
 Feeling rejected triggers buying games software
Momentary conditions
 Can’t buy ice cream because of teeth hurt
 Can’t buy a book because, left the credit card at
home
 Buy more groceries because hungry before
shopping
Thank You….