CONSUMER BEHAVIOUR

TY – BACHELORS

Prof. Kinnarie Singh

 HOWARD-SHETH MODEL
• Presented by John Howard & Jagdish Sheth

• Serves as the integrating framework for a comprehensive theory of consumer behaviour.

• Model attempts to show national brand choice behaviour by buyers under conditions of incomplete
information & limited abilities.
 ENGEL, BLACKWELL & MINIARD
MODEL (EBM MODEL)
• It attempts to explain the decision making process of the consumer which is influenced by the market
dominated information input.

• EBM Model explains the interrelationships between stages in the decision process & the various
variables.
 NICOSIA MODEL OF CONSUMER
DECISION MAKING
• The model tried to establish & analyse the consumers as a part of the marketing system.
 PROCESS OF DIFFUSION

• Innovation

• Firm-oriented definitions

• Product-oriented definitions

• Continuous innovation

• Dynamically continuous innovation

• Discontinuous innovation

• Market oriented approach

• Consumer oriented approach

 PROCESS OF DIFFUSION
• Channels of Communication

• Types
• Communication between marketers & consumers

• Communication among consumers

• Sources

• Personal sources

• Commercial sources

• Public sources

• Experimental sources
 PROCESS OF DIFFUSION

• Social System

• Physical, social, cultural & environment to which people belong & within which they function.

• Time

• Purchase time

• Rate of adoption
 FACTORS INFLUENCING CONSUMER
ACCEPTANCE OF NEW PRODUCTS
• Relative advantage (degree to which potential customers perceive a new product as superior)

• Compatibility (degree to which potential customer feel a new product is consistent to their needs,
values etc.)

• Complexity (degree to which a new product is difficult to understand or use)

• Trialability (degree to which a new product is capable of being tried on a limited basis)

• Observability (degree to which a product`s benefits or attributes can be observed, imagined or

described to potential customers)
ADOPTERS CATEGORY
ADOPTION PROCESS
 INNOVATION
Significance of Innovation

• Competitive Advantage • Facilitate acceptance

• Interdependent • Comprehensive

• Commercialization • Flexible behaviour

• Change in habits • Study the change

• Usable applications • Consumer feedback

 INNOVATION
Need for Innovation Approaches to Product Innovation

• Solve problems • Continuous innovation

• People related process • Dynamic continuous innovation

• Combination of strategies • Alternative product innovation

• Standard mode of operation

• Correct conceptualization

• Vital forces

• Hierarchy of efforts

• Services to consumers
DECISION PROCESS
 INNOVATOR PROFILES
Innovator possess 5 major skills:
• Associating
• Questioning
• Observing
• Experimenting
• Networking
 E-BUYING BEHAVIOUR
Types of E-Buyers Features of E-Buyers
• Time starved consumers • Online option
• Comfort-lovers • Facility of e-mail
• Cool experience • Facilitates e-share trading / e-banking
• Hoppers • Ensuring customer satisfaction
• Conservatives • Making e-shop popular
• Dal humans • providing after sales services
• Brand loyalists • Global sourcing
• Net savvy • Maintaining safety & security of
transactions
• Motivating entrepreneurs
 E-BUYING BEHAVIOUR
Importance of E-buying
• Connecting all
• Addressing customer requirements
• Speedy & convenient shopping
• Use of electronic format
• Rise of one-stop-shop
• Large scale operations
• Boost to economy
• Rise of B2C
• Changed behaviour
 E-BUYING BEHAVIOUR
Advantages of of E-Buying Disadvantages of of E-Buying
• Increases sales & decreases costs • Lack of inspection
• Rise of virtual community • Problem of quantifying
• Economical • Lack of personnel
• Wider choice of buyers • Insecurity
• Speed & accuracy • Problem of adaptability
• Time saving • Outdated laws
 BRICKS & CLICKS STORE OR
MODEL (CLICKS & MORTAR)
• A business that has not just a physical or online location, but also has both retail outlet as well as a
website that is enables for e-commerce.
 ADVANTAGES & DISADVANTAGES
OF BRICKS & CLICKS MODEL
Advantages to Firms Disadvantages to Firms
• Higher reach ■ Cost control
• Increased customer loyalty ■ Maintaining the physical presence
• Improved data collection
 ADVANTAGES OF BRICKS &
CLICKS MODEL
Advantages to Consumers Disadvantages to Consumers
• Convenience ■ Retailers compete on price, with quality
• Physically see & touch products before & service deteriorating
purchase ■ Prices don’t match online & offline
• Support on purchase leading to confusion & mis-management
• Feel safe & have more confidence ■ Tend to buy more items than they need.
 BRICKS & MORTAR MODEL
• Businesses that have physical presence only.
 ADVANTAGES & DISADVANTAGES
OF BRICKS & MORTAR MODEL
Advantages Disadvantages
• Customer service ■ New businesses & fixed costs
• Face-to—face interactions ■ Inconvenient for customers with busy
lifestyles
■ Expensive products
■ Wider stock availability online
■ Long queues