CONSUMER DECISION

MAKING MODELS
 HOWARD AND SHETH MODEL

 ENGEL, BLACKWELL AND

MINIARD MODEL(EBM MODEL)

 NICOSIA MODEL OF
CONSUMER DECISION MAKING
 HOWARD AND SHETH
MODEL
Howard-Sheth model is one of models that represent consumer 
behaviour on the market.

 It attempts to explain the rationality of choice of the product by the 

consumer under conditions of incomplete information and reduced
processing capability.

 IT elaborates three levels of decision making:

 Extensive problem solving
Limited Problem Solving
Routinized response behaviour
 It consists of four main groups of variables:
Input Variable
Output Variable
Hypothetical Constructs
Exogenous Variable
 Input variables
 Stimuli arising from the marketing activities and social environment
 of the consumer

 Include three different types of stimuli, which are:

Significant incentives - physical characteristics and the attributes

of a product, such as price, quality, originality and accessibility, 
brand characteristics

Symbolic incentives - verbal or visual characteristics of the

product, form of product perceived by buyer/customer, effect of
advertising and promotion messages used by seller.

Social stimuli - whose source is the social consumer environment,

family, reference groups, and society in general.
  Hypothetical constructs
 The psychological variables influencing consumer behaviour during
the decision-making process. It is regarded by the authors as abstract,
not defined and not intended directly.

 They distinguished two main constructs:

 Perceptual constructs - describe obtaining and processing 
information, attention to stimulus, sensitivity to messages,
receptivity, blocking information, prejudice, etc.

 Learning constructs - how buyer forms attitudes, opinions,

and knowledge influencing his buying decisions, evaluation after
purchase, brand comprehension, etc.
 Output variables
 They are noticeable effects of internal processes, for example: decision to
implement the purchase, disclosure of customer view and interest, as well as
the declaration of other activities.

 The most important output variable from the point of view of marketing is
actual purchase, because it involves carrying out activity based on consumer
preferences

 Output variables include:

 attention - scope of information accepted after exposing buyer to stimulus,
 comprehension - amount of information actually processed and stored in
buyer mind,
 cognition - forming attitude towards products,
 intention - to buy or not to buy particular product,
 purchase behaviour- the final act
 External variables(Exogenous
Variables)
 They have a significant impact on consumer decisions and are used
in marketing activities as a criterion for segmentation.

 These include such variables as:

 value of purchase for the buyer
 the character traits of the consumer
 membership of a social group
 the financial status of a consumer
 the pressure of time.
 ENGEL, BLACKWELL AND MINIARD MODEL(EBM
MODEL)

 It consist of five components:

 First Stage: Decision Process

 Second Stage: Information Input
 Third Stage: Information processing
 Fourth Stage: Decision process
variables
 Fifth stage: External Influences
 First Stage: Decision Process

 Need Recognition

 Search for alternatives

 Evaluation of alternatives

 Purchase

 Results
 Second Stage: Information Input
 All kinds of stimuli that a consumer
is exposed to and results in
behaviour is included in information
input.

 Stimuli can be Both:

Marketing Stimuli: Point of
purchase, advertising, personnel
selling, publicity store display
Non Marketing Stimuli: Friends,
peers, family etc.
 Third Stage: Information processing

 Exposure

 Attention

 Perception

 Acceptance

 Retention of information
 Fourth Stage: Decision process variables

 Individual Influencers

 Social Influencers

 Situational Influencers
 Fifth stage: External Influences

 It refer to external environmental

influencers through which
consumers imitate consumption
habits of other people.
 NICOSIA MODEL OF CONSUMER DECISION MAKING

 Nicosia Model of Consumer Behaviour was

developed in 1966, by Professor Francesco M.
Nicosia, an expert in consumer motivation and
behaviour.  

 This model focuses on the relationship between

the firm and its potential consumers.
 The model suggests that messages from the firm
(advertisements) first influences the
predisposition of the consumer towards the
product or service. 

 Based on the situation, the consumer will have a

certain attitude towards the product.  

 This may result in a search for the product or an

evaluation of the product attributes by the
consumer. 
 If the above step satisfies the consumer, it may
result in a positive response, with a decision to
buy the product otherwise the reverse may occur.

  Looking to the model we will find that the firm

and the consumer are connected with each other,
the firm tries to influence the consumer and the
consumer is influencing the firm by his decision.
 The Nicosia model of Consumer Behavior is divided into four major fields:

Field 1: The firm’s attributes and

the consumer’s attributes:
 The first field is divided into two subfields. The first
subfield deals with the firm’s marketing
environment and communication efforts that affect
consumer attitudes, the competitive
environment, and characteristics of target
market.

 Subfield two specifies the consumer characteristics

e.g., experience, personality, and how he perceives
the promotional idea toward the product in this
stage the consumer forms his attitude toward the
firm’s product based on his interpretation of the
message.
Field 2: Search and evaluation:
 The consumer will start to search for other firm’s
brand and evaluate the firm’s brand in comparison
with alternate brands. In this case the firm
motivates the consumer to purchase its brands.
Field 3: The act of the purchase. 

 The result of motivation will arise by convincing the

consumer to purchase the firm products from a
specific retailer.
Field 4: Feed back of sales
results:

 This model analyses the feedback of both the firm

and the consumer after purchasing the product.

 The firm will benefit from its sales data as a

feedback, and the consumer will use his experience
with the product affects the individuals attitude and
predisposition’s concerning future messages from
the firm.