Basic Components:

1. Decision making- this includes the stages of

decision making: Need recognition, Information
search, Evaluation of alternatives, Purchase
activity, Post purchase behavior. Cognitive &
Affect

2. Actual purchase- -this includes the visible physical

activity of buying of goods and/or service. It is the
result of the interplay of many individual and
environmental determinants which are invisible.
Behaviour
3. Individual determinants and environmental
influences: The environmental factors affect the
decision process indirectly, through way of
affecting individual determinants.

4. Buying roles: Initiator, Influencer, Decider, User,

Buyer
 Different Views on Customer
1. Economic and Passive Customer: buys rationally
to maximize the utility
– basically submissive to the self-serving interest

2. Cognitive Versus Emotional Customer: a

thinker and problem solver
– deeply rooted feeling and emotions
3. Potential and Realised Customer:

a) non consumers

b)potential consumers and

c) realized consumers

4. Personal Consumer Versus Organisational

Consumer
 Different Views on Customer
1. Economic and Passive Customer: buys rationally
to maximize the utility
– basically submissive to the self-serving interest

2. Cognitive Versus Emotional Customer: a

thinker and problem solver
– deeply rooted feeling and emotions
3. Potential and Realised Customer:

a) non consumers

b)potential consumers and

c) realized consumers

4. Personal Consumer Versus Organisational

Consumer
Consumer Behaviour Models
 Figure 6-1:
Model of Buyer Behavior
 Model of Consumer Behavior
by Henry Assael
Feedback
To Consumer

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 SOURCES OF EXTERNAL INFLUENCES ON CONSUMER
BEHAVIOUR-Wilkie (1990)
SCOPE – reach of the impact
STRENGTH- the power to impact behaviour
IMMEDIACY – direct or focused influence on behaviour; the impact
is felt with no or little influence coming into play.

SCOPE STRENGTH IMMEDIACY

CULTURE general High Long-term

SUBCULTURE general High Long-term

FAMILY specific High Long-term

FRIENDS specific High/low CULTURE

MARKET STIMULI specific low Long term/short

term
 The Engel-Kollat-Blackwell (EKB) model.

• First developed in 1968.

• A key feature of the EKB model is the differences
between high and low involvement as part of the
buying process.
• High involvement is present in the high risk purchase

• Low involvement is present in the low risk purchase.

 Consumers may perceive
different types of risks in buying

Functional Risk: product performance

Physical Risk: health related hazards

Financial Risk: worth for the price paid

Social Risk: status, embarrassments

 EKB model
• Consumers are seen as active agents following rules of
behaviour, fairly easy to follow and implement because
they require only a limited amount of information and
capability of elaboration

• For instance, a consumer, being aware of a certain need

and believing a certain good category satisfies it, might fix
a maximum price he/she can afford and search for the best
good available under such a constraint.
 Main focus is

Evaluation of pre-fixed parameters

These parameters are fixed due to exposure to marketing

controlled and non-marketing controlled stimuli

Extensive Problem Solving - initiated by the motive that is

fairly central to the self-concept and the decision is perceived
to carry a fair degree of risk.

Limited Problem Solving - involves recognizing a problem for

which there are several solutions. There is limited amount of
external search, simple decision rules are followed on a few
attributes and a little post-purchase evaluation is required

Routine Response Behaviour - When a consumer buys a brand

 Marketing Controlled Stimuli and information process

Promotion Mix
Exposure - to different media platforms

Attention - whatever is of interest

Comprehension - own understanding MEMORY

Acceptance - belief

Retention - recall and recognition

 Decisional variables

Beliefs- knowledge and inferences

Motives - drive to satisfy need

Attitudes - predisposition to respond

Lifestyles- way one lives

Intention - commitment, plan or decision

Evaluation criteria - perceived value dimensions

Normative Compliance - conforming to set rules

 External Factors

Culture - shared set of values beliefs and artefacts

Social Class - Enduring divisions in the society

Reference group - group or individual serving

as point of comparison

Family - people connected by blood Adoption or

marriage

Unexpected Circumstances
 Howard & Sheth model
• The model claims that a person’s purchase decision is often
influenced by more than one individuals.

• A family buying decision involves multiple influences from

its members.

• This theory shows the concept of role structure, that is

individual members of the family takes on roles such as
collecting information, deciding on the information budget,
etc.
• The theory also states that retailers /businesses are not
only dealing with a homogeneous unit but a collection of
individuals with different goals, needs, motives and
interests.

• According to the model, the 'inputs' (stimuli) that the

consumer receives from his or her environment are:

1.significative - the 'real' (physical) aspects of the product or

service (which the company makes use of)
2. symbolic - the ideas or images attached by an
organization (for example by advertising)

3. social - the ideas or images attached to the product or

service by 'society' (for example, by reference groups)

The 'outputs' are the consumer's actions, as observable

results of the input stimuli.

Between the inputs and outputs are the 'constructs', the

processes which the consumer goes through to decide
upon his or her actions.
• Howard and Sheth group these 'constructs into two areas:

1. perceptual - those concerned with obtaining and handling

information about the product or service

Stimulus Ambiguity
Perceptual Bias

2. learning - the processes of learning that leads to the

decision itself

Motive Attitude
Choice Intention
Confidence Brand Comprehension
 Nicosia Model
• This model explains the consumer behaviour by establishing
a link between the organization and its prospective
customers.

• It analyses human being as a system with stimuli as the input

to the system and the human behaviour as an output of the
system.

• The model suggests that message influences the

predisposition of the consumer towards the product or
services.
• Based on the situation, the consumer will have a certain
attitude towards the product.

• May result in search for the product or an evaluation of

the product attributes by the consumers.

• If the consumer is satisfied with the above and it may

result in a positive response, with a decision to buy the
product otherwise the reverse may occur.
• The model is based on four fields.

• Field one – the consumer attributes and the firms’ attribute. The
advertisements/messages sent from the company will reach the consumer
attributes.

• Sub field one is the firm’s attributes and the attributes of the product.

• The sub field two is the predisposition of the consumer and his own
characteristics and attributes, which are affected by his exposure to various
information and message, and is responsible for the building of attitude of the
consumer.
• Field two – it is related to the search and evaluation,
undertaken by the consumer of the advertised product
and also to verify if other alternatives are available.

• It is the pre action field, where the consumer goes on

for research and evaluation and gets motivated to buy
the product.

• It highlights the means and end relationship.

• Field three – it explains how the consumer actually buys the
product.

• It is the act of purchase or the decision-making to buy the

product.

• The customer buys the product and uses it.

• Field four – it is related to the uses of the purchased items. It

can also be related to an output to receive feedback on sales
results by organization.
• It highlights the post-purchase behaviour and the use of the
product, its storage and consumption.

• The feedback from field four is fed into the firms attributes or
field one, and the feedback from the experience is responsible for
changing the pre-disposition of the consumer and later his
attitude towards the product.

• Nicosia Model is a comprehensive model of dealing with all

aspects of building attitudes, purchase and use of product
including the post-purchase behaviour of the consumer.