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Module 5

The Nicosia Model is a comprehensive model of consumer decision making developed in the 1960s. It seeks to explain the complex process through which consumers arrive at purchasing decisions, with a focus on understanding the impact of communication. The model depicts the decision making process as circular and dynamic, with inputs, processes, and outputs influencing each other continuously.

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0% found this document useful (0 votes)
54 views5 pages

Module 5

The Nicosia Model is a comprehensive model of consumer decision making developed in the 1960s. It seeks to explain the complex process through which consumers arrive at purchasing decisions, with a focus on understanding the impact of communication. The model depicts the decision making process as circular and dynamic, with inputs, processes, and outputs influencing each other continuously.

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comprehensive model of consumer decision making : Nicosia Model

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The Nicosia Model, developed by Francesco Nicosia in the 1960s, is a comprehensive model of
consumer decision-making that seeks to explain the complex process through which consumers
arrive at purchasing decisions. This model is particularly focused on understanding the
communication process and its impact on consumer behavior. The Nicosia Model is often
depicted as a circular flow, emphasizing the continuous and dynamic nature of the decision-
making process.
The key components of the Nicosia Model include:
● Inputs:
○ Firm's Attributes: These are the characteristics of the product or service offered by
the firm, including features, quality, pricing, and branding.
○ Environmental Influences: External factors such as economic conditions, cultural
influences, social trends, and technological advancements that shape consumer
perceptions and preferences.
● Process:
○ Communication Process: The model highlights the importance of communication
between the firm and the consumer. This communication occurs through various
channels, such as advertising, sales promotions, and personal selling.
○ Consumer's Perception: Consumers receive and process information from the firm,
forming perceptions and attitudes toward the product or service.
● Outputs:
○ Consumer Decision Process: This involves the consumer's evaluation of the product
or service, leading to a decision to purchase or not.
○ Feedback Loop: The consumer's decision provides feedback to the firm, influencing
future communication strategies and marketing efforts.
● Consumer's Decision-Making Process:
○ Problem Recognition: The consumer identifies a need or problem that can be
addressed through a purchase.
○ Information Search: The consumer seeks information about available options to
solve the identified problem.
○ Evaluation of Alternatives: The consumer evaluates the available alternatives based
on various criteria such as price, quality, and brand reputation.
○ Purchase Decision: The consumer makes a decision to purchase the chosen product
or service.
○ Post-Purchase Evaluation: After the purchase, the consumer assesses their
satisfaction and overall experience with the product or service.
It's important to note that the Nicosia Model places a strong emphasis on the communication
process and the role of communication in shaping consumer perceptions and decision-making.
While the model provides insights into the dynamics of consumer behavior, it is a theoretical
framework and may not capture all the nuances of real-world consumer decision-making
processes. Additionally, contemporary models and research have evolved to incorporate factors
such as social media, online reviews, and other digital influences that were not as prevalent
during the time of the model's development.

Howard sheth model

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The Howard-Sheth Model of Consumer Behavior, developed by Jagdish N. Sheth and Howard in
the 1960s, is another influential model that aims to explain the complex process of consumer
decision-making. This model incorporates psychological and social factors, emphasizing the role
of cognitive and emotional processes in consumer behavior. The Howard-Sheth Model is often
presented as a framework with three main components: input, process, and output.
Here are the key elements of the Howard-Sheth Model:
● Input:
○ External Influences: These are factors outside the individual that affect consumer
behavior. They include cultural, social, economic, and family influences.
○ Internal Influences: These are individual factors that shape consumer behavior. They
include perception, learning, motivation, personality, and attitudes.
● Process:
○ Perceptual Process: The consumer is exposed to various stimuli from the external
environment, and these stimuli are processed through selective exposure, attention,
and interpretation.
○ Learning Process: Consumers acquire information and knowledge about products or
services through experience, and this learning influences their future behavior.
○ Motivational Process: Consumers are driven by needs and desires, and their
behavior is influenced by the intensity and direction of their motives.
○ Personality and Self-Concept: Individual differences in personality and self-concept
play a role in shaping consumer preferences and choices.
○ Attitude Formation and Change: Consumer attitudes toward products or brands are
formed and may change over time based on experiences and information.
● Output:
○ Decision Process: The culmination of the model is the consumer's decision-making
process, which involves problem recognition, information search, evaluation of
alternatives, purchase decision, and post-purchase evaluation.
○ Consumption Behavior: This refers to the actual purchase and use of the product or
service.
○ Post-Purchase Evaluation: After the purchase, consumers evaluate their satisfaction
with the product or service, which can influence future buying decisions and brand

loyalty.
The Howard-Sheth Model is characterized by its emphasis on the complexity and
interconnectedness of various factors influencing consumer behavior. Unlike some earlier
models, it acknowledges the dynamic and iterative nature of the decision-making process. It also
recognizes the significance of post-purchase evaluation and the impact of previous experiences
on future decision-making.
While the Howard-Sheth Model has been influential, it is essential to note that consumer
behavior research has continued to evolve, and more recent models consider additional factors
such as the influence of social media, online reviews, and the role of emotions in decision-
making.

Engel, Kollat & Blackwell Model

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The Engel, Kollat & Blackwell (EKB) Model, also known as the Consumer Decision-Making Model,
was developed by James F. Engel, David T. Kollat, and Roger D. Blackwell in the 1960s. This
model focuses on the decision-making process that consumers go through when making a
purchase, and it has been influential in the field of consumer behavior.
The EKB Model consists of several stages in the consumer decision-making process:
● Problem Recognition:
○ This is the first stage where consumers recognize a need or a problem that can be
solved by purchasing a product or service. The need can be triggered by internal
factors (e.g., hunger, thirst) or external stimuli (e.g., advertising, friends'
recommendations).
● Information Search:
○ Once the consumer recognizes a problem, they engage in information search to
gather data about available products or services that can fulfill their needs. This
search can involve internal sources (memory, past experiences) and external
sources (friends, family, advertisements, online reviews).
● Evaluation of Alternatives:
○ Consumers evaluate the various alternatives identified during the information search
stage. They compare the features, benefits, and drawbacks of different products or
brands to make an informed decision.
● Purchase Decision:
○ Based on the evaluation, the consumer makes a decision to purchase a specific

product or service. Factors such as price, brand reputation, and personal
preferences play a significant role in this decision.
● Post-Purchase Evaluation:
○ After the purchase, the consumer assesses their satisfaction with the chosen
product or service. If the experience is positive, it reinforces the consumer's
decision and may lead to brand loyalty. However, dissatisfaction may result in
product returns or negative word-of-mouth.
The EKB Model emphasizes the dynamic and interactive nature of the consumer decision-making
process. It recognizes that consumers may go back and forth between stages, and the outcome
of one stage can influence the decision-making process in subsequent stages. The model also
highlights the importance of external influences, such as marketing communications and social
factors, in shaping consumer perceptions and choices.
While the EKB Model has provided valuable insights into consumer decision-making, it's worth
noting that the field of consumer behavior has evolved, and more recent models incorporate
additional factors, such as the impact of digital technology and social media on the decision-
making process.

Sheth Newman Gross Model of Consumer values

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The Sheth, Newman, and Gross Model of Consumer Values, developed by Jagdish Sheth,
Barbara L. Newman, and Barbara I. Gross, is a model that seeks to understand the factors
influencing consumer behavior by examining the role of values. This model focuses on the
relationship between consumer values and behavior, providing insights into how values shape
preferences, attitudes, and decision-making processes.
The key components of the Sheth, Newman, and Gross Model include:
● Enduring Involvement:
○ This represents a consumer's enduring interest or involvement in certain aspects of
life, such as health, social issues, or hobbies. It reflects the long-term commitment
to specific values.
● Terminal Values:
○ Terminal values are end states that individuals strive to achieve in life. These values
represent the ultimate goals or outcomes that people find desirable. Examples
include happiness, success, and well-being.
● Instrumental Values:
○ Instrumental values are the means or behaviors that individuals adopt to achieve
○ Instrumental values are the means or behaviors that individuals adopt to achieve
their terminal values. These values represent the methods or approaches people
use to attain their desired end states. Examples include hard work, honesty, and
innovation.
● Consumer Behavior Values:
○ Consumer behavior values are values specifically related to consumption and
purchasing decisions. These values influence how consumers approach and make
decisions regarding products and services.
● Consumption-Specific Values:
○ These are values that are directly related to the act of consumption. They include
values associated with the product itself, such as quality, durability, and
performance.
● Domain-Specific Values:
○ Domain-specific values are values that pertain to specific domains or areas of life.
For example, a person may have values related to health and well-being, which
influence their choices in the domain of health-related products.
● Consumption Situation:
○ The consumption situation refers to the specific context in which a consumer makes
a decision. It includes factors such as the physical environment, social context, and
temporal factors that may influence consumer behavior.
The Sheth, Newman, and Gross Model suggests that understanding consumer values is crucial
for marketers to effectively appeal to and influence target audiences. By aligning products and
marketing strategies with consumers' enduring values, companies can enhance their appeal and
build stronger connections with their target markets.
It's important to note that consumer values can vary across individuals and cultures, and the
model provides a framework for understanding how these values shape consumer behavior in
different contexts.

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