buyer behaviour models (1)
TRANSCRIPT
Buyer Behaviour Models
The Economic Model
According to the economic model of buyer behaviour, the buyer is a rational man and his buying decisions are governed by the concept of utility.If he has a certain amount of purchasing power, a set of needs to be met, and a set of products to choose from, he will allocate this amount over the set of products in a very rational manner with the intention of maximising the utility / benefit / need satisfaction.
The Learning ModelAccording to the learning model, which takes its cue from the Pavlovian stimulus-response theory on learning-buyer behaviour can be influenced by manipulating the drives, stimuli and responses of the buyer.The model rests on the human ability of learning, forgetting, and discriminating.
The Psychoanalytical ModelThe psychoanalytical model draws mainly from Freudian psychology. According to this model, a consumer has a complex set of deep-seated motives that drive him towards certain behaviour. The buyer has a private world with all his hidden fears, suppressed desires and totally subjective longings. Appealing to these desires and longings can influence his buying action.
The Sociological ModelAccording to the sociological model, the individual buyer is influenced in his buying behaviour by society – by intimate groups as well as social classes.His buying decisions are not totally governed by utility; he has a desire to emulate, follow, and fit in with his environment. And, several of his buying decisions may be governed by the compulsions arising out of his being a social creature.
The Systems ModelThere have also been some efforts to build some models on buyer behaviour using totally the standpoint of the marketing man. They belong to a category called the systems model, where the human being is analysed as a system, with stimuli as the input to the system and behaviour as the output of the system.Two important models in this category are:1.The Nicosia Model2.The Howerd and Sheth Model
The Nicosia ModelThe model tries to establish the links between a firm and its consumer – how the activities of the firm influence the consumer and result in his decision to buy.The messages from the firm first influences the predisposition of the consumer towards the product. Depending on the situation, he develops a certain attitude towards the product.
The Nicosia Model …Contd.
It may lead to a search for the product or an evaluation of the product. If these steps have a positive impact on him, it may result in a decision to buy. This is the sum and substance of the ‘activity explanations’ in the Nicosia model. The model groups these activities into four basic fields as shown in next two slides:
The Nicosia Model …Contd.
o Field One with two sub-fields – the firm’s attributes and the consumer’s attributes. An advertising message from the firm reaches the consumer’s attributes. Depending on the way the message is received by the consumer, he develops a certain attitude and this becomes the input for Field Two.
The Nicosia Model …Contd.
o Field Two is the area of search and evaluation of the advertised product and other alternatives. If this process results in a motivation to buy, it becomes the input for Field Three.
o Field Three consists of the act of purchase.o And Field Four consists of the use of the
purchased item. There is an output from Field Four – feedback of sales results of the firm.
The Howard-Sheth ModelThe logic of the model runs like this
- There are inputs in the form of stimuli- There are outputs beginning with attention
to a given stimulus and ending with purchase
- In between the inputs and the outputs, there are variables affecting the consumers’ perception and learning. These variables are considered ‘hypothetical’ since they cannot be directly measured at the time of occurrence.
The Howard-Sheth Model …Contd.
Model explains buyer decision process using four major sets of variables, as applicable to individual consumer:
1. Inputs2. Perceptual and learning constructs3. Outputs4. Exogenous or external variables
The Howard-Sheth Model
Solid lines show flow of info.-Dashed lines indicate feedback effects
Purchase
Intention
Attitude
Brand Comprehension
Attention
Intention
Brand Comprehension
Satisfaction
Choice criteria
OutputsLearning Constructs
Perceptual bias Attention
Attitude
Motives
Confidence
Stimulus Ambiguity
Overt Search
Perceptual ConstructsInputs
Stimulus Display Significativea)Qualityb)Pricec)Distinctivenessd)Servicee)Availability
Symbolica)Qualityb)Pricec)Distinctivenessd)Servicee)Availability
Sociala)Familyb)Reference Groupsc)Social Class
The Howard-Sheth Model …Contd.
Inputs – by three distinct types of stimuliSignificative Stimuli – In the form of physical, tangible product characteristic.Example – Briefcase – Physical appearance, sturdiness, finish, spaciousness, actual price.Symbolic Stimuli – In the form of intangible, perceptual product characteristics.Example – Briefcase – overall quality perceived by purchaser perception – price is reasonable / high / good bargainSocial class – provides third type of stimuli
The Howard-Sheth Model …Contd.
Perceptual and Learning ConstructsTwo factors that may influence consumer’s interpretation1.Stimulus Ambiguity2.Perceptual BiasStimulus Ambiguity – Occurs when the consumer is not sure about the meaning of the stimulus received.Perceptual Bias – Occurs when he distorts the information he receives to fit his established needs or experiences.
The Howard-Sheth Model …Contd.
Brand Comprehension – The manner in which the consumer interprets the stimuli leads him to the stage of brand comprehension.
- It refers to consumer’s understanding and overall rating of the brand.
- If the consumer rates it high, it results in confidence and eventually purchase decision.
The Howard-Sheth Model …Contd.
Output – Purchase Decision is the OutputAfter product usage – if consumer is satisfied:
- It will reinforce his positive attitude and purchase intention about the product and brand.
- Positive attitude makes the consumer more attentive to the product’s / brand’s stimuli and further increases his brand comprehension.
The Howard-Sheth Model …Contd.
If the Consumer is Dis-satisfiedIt will trigger off reaction of negative attitude, low attention to the product stimuli, poor brand comprehension and negative intention to purchase
The Howard-Sheth Model …Contd.
Exogenous or External VariablesThese are not directly a part of decision making process.They are important as they influence the consumer.They vary from one consumer to another and include:o Consumer personality traitso Social classo Importance of the purchaseo Financial status etc.
Engel-Blackwell-Kollat Model of Buyer Behaviour
The Engel-Kollat-Blackwell Model consists of four components
1. Information processing2. Central control unit3. Decision process4. Environmental influences
Engel-Blackwell-Kollat Model of Buyer Behaviour
Solid lines show flow of info.-Dashed lines indicate feedback effects
IncomeCultureFamily
Social ClassPhysical
Other
Output Decision Process
Info. and experience
Comprehension
Further behaviour
Environment Influences
Central Control Unit
Post purchase evaluation
Retention Attitude
FILTER
Attention
Exposure
Information Processing
Stimuli
Ext. Search
Evaluative criteria
Problem recognition
Int. search & alternative evaluationInfo.
feedback
Pers
onal
ity
Ext. search & alternative evaluation
Purchasing process
Outcomes
HOLD
HOLD
HOLD
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Information ProcessingThis component comprises of consumer’so Selective exposureo Attentiono Comprehension ando Retention of stimuli
Relating to a product / brand received from marketing / non-marketing sources.
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
As a MKTR.The first step is to ensure that:o A consumer is exposed to your message
(stimuli)o Pays attention to it.o Understands what it is all about and
remember it.
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Central Control UnitThe stimuli received and retained is processed in Central Control Unit stimuli is processed and interpreted with the help of four psychological filters:
1. Stored information and past experience about the product / brand which serves as a memory for comparing different alternatives.
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Central Control Unit …Contd.
2. Evaluating criteria which the consumer uses in judging the alternatives.
3. General and specific attitudes which influence the purchase decision.
4. Basic personality traits which influence how the consumer is likely to respond to various alternatives.
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Decision ProcessThe decision process component of the model consists of:
a. Problem recognitionb. Internal search and evaluationc. External search and evaluationd. Purchase processese. Decision outcomes
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Decision Process …Contd.
If the purchase decision is such that it requires EPS, the consumer would go through all the 5 stages.In case of L.P.S. or R.R.B, some of the intervening stages may be skipped and the consumer may directly reach the purchase decision.
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Environmental InfluencesThe factors that may influence the consumer’s purchase decision are:
- Income- Culture- Family- Social class and- Physical situations
Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.
Environmental Influences …Contd.
Depending on the specific product under consideration, these factors may have a favourable / un-favourable influence on the purchase decision.