Consumer Behavior Models

Consumer Buying Behavior

• Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.

• All these consumers make up the consumer market.

• The central question for marketers is:– “How do consumers respond to various marketing

efforts the company might use?”

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Types of Buying Decision Behavior –Lawson’s model

ComplexBuying

Behavior

Variety-Seeking

Behavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior

Model of Buyer Behavior (Fig. 2.2)- Lawson’s model

Marketing and Other Stimuli

MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural

Buyer’s Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount

Factors Influencing Consumer Behavior-Lawson’s

model (Fig.2.3)Social

Referencegroups

Family

Rolesand

status

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerception

LearningBeliefs andattitudes

Psycho-logical

MotivationPerception

LearningBeliefs andattitudes

BuyerBuyer

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural

SOURCES OF EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR-Wilkie (1990)

SCOPE STRENGTH IMMEDIACY

CULTURE general High Long-term

SUBCULTURE general High Long-term

FAMILY specific High Long-term

FRIENDS specific High/low Long term/short term

MKT STIMULI specific low Long term/short term

SCOPE – the sweep or reach of the impactSTRENGTH- the power to impact behaviourIMMEDIACY – direct or focused influence on behaviour; the impactis felt with no or little influence coming into play.

Buyer Decision Process (Fig. 2.4)-Lawson’s model

PostpurchaseBehavior

PurchaseDecision

InformationSearch

Need Recognition

Evaluationof Alternatives

BUYER ROLESINITIATOR• First individual who suggests product/service should be

evaluated/purchased.INFLUENCER• Provides view and advice which are valued by others and can

subsequently influence the final decision.DECIDER• The individual who will take the decision in the buying process

at what, how , when and where to buy (store choice), etc.BUYER• The individual who actually makes the purchaseUSER• The individual who consumes or users the service/product.

FACTORS INFLUENCING SHOPPERS’ STORE CHOICE

Kelly and Stephenson ( 1967) identified 8 factors ;1. General store characteristics-reputation, no of stores2. Physical characteristics – décor,cleanliness, checkout

services.3. Convenience –time, parking etc.4. Products – variety, dependability, quality.5. Prices charged – value special sales.6. Personnel – courteous, helpful, friendly.7. Advertising –informative, aggressive, believable.8. Friends’ perception of the store- well known, liked,

reccommended.

TYPES OF PURCHASING RISKS-Consumer Product Lines

1.ROUTINE BUYING2. LIMITED PROBLEM SOLVING3. EXTENSIVE PROBLEM SOLVING.

New Task BuyingNew Task Buying

Invo

lved

Dec

isio

n M

akin

g

Modified RebuyModified Rebuy

Major Types of Buying Situations-Business products

Straight RebuyStraight Rebuy

ASSUMPTION ON CONSUMER BEHAVIOUR-Behavioural versus Cognitivists view

BEHAVIOURIST

COGNITIVIST

BEHAVIOURIST VERSUS COGNITIVIST APPROACHES

BEHAVIOURIST• Observed behaviour is all

important• People are info transmitters• People are all alike• Behaviour is rational• Human characteristics can

be studied independently.• Emphasis is on what a

person is and does.• Behaviour can be

understood

COGNITIVIST• What goes on in a person’s

mind is the key to comprehension.

• Behaviour is not predictable• People are info generators• Each person is unique• Behaviour is irrational• People must be studied as a

whole• Emphasis is on what a person

can be.• Behaviour can never be

completely understood.

THEORIES OF CONSUMER BEHAVIOUR

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

• Howard & Sheth model

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.

Models of Consumer Behaviour The Engel-Kollat-Blackwell (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.

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 individuals 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.

Models of Consumer BehaviourHoward & Sheth model

• Acoording 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 co make use of)

2. symbolic - the ideas or images attached by the supplier (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 what happens, 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 into two areas:

1. perceptual - those concerned with obtaining and handling information about the product or service

2. learning - the processes of learning that lead to the decision itself

Models of Consumer Behaviour-Howard & Sheth model

Awareness: Consumer is aware of

product, but lacks information.

Awareness: Consumer is aware of

product, but lacks information.

Interest: Consumer seeks Information about new product.

Interest: Consumer seeks Information about new product.

Evaluation: Consumer considerstrying new product.

Evaluation: Consumer considerstrying new product.

Trial: Consumer tries new product on a small scale.

Adoption: Consumer decides to make regular use of product.

Stages in the Adoption Process

Adopter CategoriesPe

rcen

tage

of A

dopt

ers

Time of AdoptionEarly Late

Inno

vato

rs

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

DivisibilityCan the innovation

be used on a trial basis?

DivisibilityCan the innovation

be used on a trial basis?

ComplexityIs the innovation

difficult tounderstand or use?

ComplexityIs the innovation

difficult tounderstand or use?

Communicability Can results be easily

observed or described to others?

Communicability Can results be easily

observed or described to others?

Compatibility

Does the innovation fit the values and experience of the

target market?

Compatibility

Does the innovation fit the values and experience of the

target market?

Relative AdvantageIs the innovation

superior to existing products?

Relative AdvantageIs the innovation

superior to existing products?

Influence of Product Characteristics on Rate of Adoption