What is a consumer behavior model?

A consumer behavior model is a theoretical framework for explaining why and how
customers make purchasing decisions. The goal of consumer behavior models is to
outline a predictable map of customer decisions up until conversion, thus helping you
steer every stage of the buyer’s journey.
Consumer behavior models may sound complicated, but they’re not. They’re a way to
create a “buyer behavior story” that you can use to refine and improve your customer
experience.
As a whole, buyer behavior refers to an individual's buying habits based on influences
from their background, education, personal beliefs, goals, needs, desires, and more.
Businesses aim to understand buyer behavior through customer behavior analysis,
which involves the qualitative and quantitative analysis of a target market. Even
though this data can tell you your customer’s favorite brand of socks, it doesn’t mean
much if it doesn’t tell you why they purchased that brand of socks.
That’s where consumer behavior models come in. Consumer behavior models
contextualize results from customer behavior analysis studies and help you get to the
“why” of purchasing decisions.

4.4 Consumer Behaviour Models

There are various consumer models which help in understanding consumer
behaviour. These are listed below.
1. Economic Model
2. Psychological Model
3. Pavlovian Model
4. Sociological Model
5. Howarth Sheth Model
6. Engel – Blackwell – Kollat Model
7. Model of family decision – making
8. Nicosia Model
9. The psycho analytical model
10. Learning Model

Consumer Behavior Models

Customer behavior models help you understand your unique customer base and more
effectively attract, engage, and retain them. These models are either traditional or
contemporary.
TRADITIONAL CONSUMER CONTEMPORARY CONSUMER
BEHAVIOR MODELS BEHAVIOR MODELS

Learning Model Engel-Kollat-Blackwell (EKB) Model

Psychoanalytical Model Black Box Model

Sociological Model Hawkins Stern Model

Economic Model Howard Sheth Model

Nicosia Model

Webster and Wind Model

1.Learning Model of Consumer Behavior:

1. Learning Model of Consumer Behavior:

Learning Model:
All theories of buyer behaviour have been basically based on a learning model
namely, Stimulation-Response or more popularly known as SR model.SR learning
theory is very useful to modern marketing and marketers. According to the learning
model which takes its cue from the Pavlovian stimulus response theory, buyer
behaviour can be influenced by manipulating the drives, stimuli and responses of the
buyer.The model rests on man’s ability at learning, forgetting and discriminating. The
stimulus response learning theory states that there develops a bond between behaviour
producing stimulus and a behaviour response (S. R. Bond) on account of the
conditioning of behaviour and formation of habits. This theory may be traced to
Pavlov and his experiments on salivating dogs.
Pavlov’s experiments brought out associations by conditioning. According to the
stimulus-response, learning is dependent on drive, cue (stimulus), response and
reinforcement as shown in Fig.

Pavlovian Model of Consumer Behaviour

This model is named after the Russian Physiologist Ivan Pavlov. He experimented on
a dog and observed how it responded on the call of a bell and presenting it with a
piece of meat. The responses were measured by the amount of saliva secreted by the
dog. Learning is defined as the changes in behavior which occur by practice and,
based on previous experience. This is important to marketers as well.
Learning Model
1.Drive
2.Cue
3.Response
4.Reinforcement

Drive: Drive may be defined as any strong stimulus that forces action. It arouses an
individual and keeps him prepared to respond.
Cue: Cue or stimulus may be defined as any object in the environment perceived by
the individual. The aim of the marketing man is to find out or create the cue of
sufficient importance that it becomes the drive stimulus or elicits other responses
appropriate to his objective.
Response: Response is an answer to a given drive or cue. When a man feels thirsty, he
attempts to get water at any cost. Here attempt to get water is a response to the
primary drive of thirst. “Response also includes attitudes, familiarity, perception and
other complex phenomena”. Responses may be generalized or discriminatory.
Reinforcement: Reinforcement or reward means reduction in drive and stimulus. It
has been defined as “environmental events exhibiting the property of increasing the
probability of occurrence of responses they accompany”. Thus, when consumption of
a product or a brand of product leads to satisfaction of the initiating need there is
reinforcement.

4.4.3. Pavolovian Learning Model

This model is named after the Russian Physiologist Ivan Pavlov. He experimented on
a doing and observed how it responded on the call of a bell and presenting it with the
piece of meat. The responses were measured by the amount of saliva secreted by the
dog. Learning is defined the changes in behaviour which occur by practice and, based
on previous experience. This is important to marketers as well. The learning process
consists of the following factors.

1. Drive: This is a strong internal stimuli which impels action. Because of the drive, a
person is stimulated to action for fulfilling his desires. Drives can be innate (in born),
which stem from physiological needs, such as a hunger, thirst, pain, cold, sex etc. 139
2. Triggering Cues: these influence the decision process but do not activate it. They
are two kinds.
1. Product cues are external stimuli received form the product directly,
e.g., colour of package, weight, style, price etc.
2. Informational cues are external stimuli which provide information
about the product, like advertisement, sales promotion, talking to other
people, suggestions of sales personnel etc.
Response is what the buyer does, i.e., buy or not buy.

3. Reinforcement
When a person has a need to buy, say clothing, and passes by a showroom and is
attracted by the display of clothing their colour and style, which acts as a stimulus,
and he makes a purchase. If he likes it, enforcement takes place and he is happy and
satisfied with the purchase. He recommends it to his friends as well, and visits the
same shop again. Reinforcement part thus is an important part of buyer behaviour and
the marketer tries to create a good image of the product in the mind of the consumer
for repeating purchases through Reinforcement.

Psychological Model :
Psychologists have been investigating the causes which lead to purchases and
decision making. This has been answered by A.H. Maslow in his hierarchy of needs.
The behaviour of an individual at a particular time is determined by his strongest need
at that time. This also shows that needs have a priority. First they satisfy the basic
needs and then go on for secondary needs. The purchasing process and behaviour is
governed by motivational forces. Motivation stimulates people into action. Motivation
starts with the need. It is a driving force and also a mental phenomenon. Need arises
when one is deprived of something then a tension is created in the mind of the
individual which leads him to a goal directed by behaviour which satisfies the need.
Once a need is satisfied, a new need arises and the process is continuous.

The Learning Model of customer behavior theorizes that buyer behavior responds to
the desire to satisfy basic needs required for survival, like food, and learned needs that
arise from lived experiences, like fear or guilt. This model takes influence from
psychologist Abraham Maslow’s Hierarchy of Needs (pictured below).
The bottom level of this hierarchy represents basic needs, and ascending sections
describe learned needs, or secondary desires, that allow consumers to feel as though
they’ve reached self-fulfillment.
The Learning Model says that consumers first make purchases to satisfy their basic
needs and then move on to meet learned needs. For example, a hungry customer
would fulfill their need for food before a learned need to wear trendy clothing.If
you’re a multipurpose business that sells products that meet all levels of customer
needs, this model applies to you. For example, Target is a United States-based
department store that sells hundreds of products. Super Targets are larger versions of
the chain that also sell groceries.When a customer visits a Super Target, they first see
products that satisfy their basic needs — the grocery section. They’re probably also
seeing produce first, as these items are seen as the most nutritious and necessary for
survival. After produce, customers move on to other aisles that satisfy learned needs,
like purchasing their favorite cookies, clothing items, or beauty accessories.You can
think of it like this: If you’re a business with a significant amount of in-store options,
improve the customer experience and speak to their buyer behavior by first leading
them to the products that will satisfy their innate needs. Without doing this, they may
navigate through your store anxious about meeting those needs and spend less time
browsing other products and making additional purchases. Once they feel
comfortable, they’ll move on to satisfy the desires that bring them joy rather than help
them survive.

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2. Psychoanalytical Model of Consumer Behavior

2. Psychoanalytical Model of Consumer Behavior:

Sigmund Freud is the father of psychoanalysis. The psychoanalytical model draws
from his theories and says that individual consumers have deep-rooted motives, both
conscious and unconscious, that drive them to make a purchase. These motives can be
hidden fears, suppressed desires, or personal longings.
Thus, customers make purchases depending on how stimuli from your business, like
an advertisement on Instagram, appeal to their desires. It’s important to note that,
since these desires can be unconscious, customers don’t always know why it appeals
to them; they just know it feels right to have it.
This model is unique in terms of application, but it’s relevant to businesses that sell an
image that accompanies their products or services. For example, say you sell glasses.
We all long to fit in and feel like we’re valued and seen as capable, smart people.
Glasses are sometimes a symbol of intelligence, so you’d want to appeal to this desire
when crafting a customer experience.
You may instruct marketing to create ad campaigns that display pictures of people
wearing your glasses in educational settings or doing things that society labels as
‘smart.’

Psycho-analytical Model
The psycho-analytical model draws from Freudian psychology. According to this
model, the individual consumer has a complex set of deep seated motives which drive
him towards certain buying decisions.
The buyer has a private world with all his hidden fears, suppressed desires and totally
subjective longings. His buying action can be influenced by appealing to these desires
and longings.
The psycho-analytical theory is attributed to the work of eminent psychologist
Sigmund Freud. Freud introduced personality as a motivating force in human
behaviour.
According to this theory, the mental framework of a human being is composed of
three elements as shown in Fig.

Psycho-analytical Model

1.Id
2.Super ego
3.Ego

Id : The id or the instinctive, pleasure seeking element. It is the reservoir of the

instinctive impulses that a man is born with and whose processes are entirely
subconscious. It includes the aggressive, destructive and sexual impulses of man.

Super ego : The superego or the internal filter that presents to the individual the
behavioural expectations of society. It develops out of the id, dominates the ego and
represents the inhibitions of instinct which is characteristic of man. It represents the
moral and ethical elements, the conscience.

Ego : The ego or the control device maintains a balance between the id and the
superego. It is the most superficial portion of the id. It is modified by the influence of
the outside world. Its processes are entirely conscious because it is concerned with the
perception of the outside world. It continues to influence consumer behaviour.

3. Sociological Model
3. Sociological Model:
The Sociological Model of consumer behavior says that purchases are influenced by
an individual's place within different societal groups: family, friends, and workgroups,
as well as less-defined groups like Millennials or people who like yoga. An individual
will essentially purchase items based on what is appropriate or typical of the groups
they’re in.
For instance, C-Suite executives are expected to be professional and formal. People
who hold these jobs will make purchases that speak to and uphold this group’s rules,
like formal business wear.
This model can apply to most businesses, especially those that create products and
services relevant to specific groups. To use the Sociological Model, you’d want to
create experiences that speak to how these groups usually act. One example is brands
that sell exercise equipment.
You sell to and appeal to consumers that are part of a societal group that likes to work
out. To delight these customers, you’d want to sell to their desires, like equipment that
improves performance or an insulated water bottle that stays cold and leaves them
satisfied during their breaks. By doing this, you’re speaking to the consumer in that
specific group and showing them that your product will help them retain their position
in that group.
Check out this ad from Nike. They’re selling this shoe to the undefined group of
people who like to run, claiming that it will improve their speed and help them fit in
with the group.

4.4.4. Sociological Model

This is concerned with the society. A consumer is a part of the society and may be a
member of many groups in a society. His buying behaviour is influenced by these
groups. Primary groups of family and friends have shown a lot of influence on his
buying. A consumer may be a member of a political party where his dress norms are
different. As a member of an elite organisation, his dress requirements may be
different, thus he has something that confirm to his lifestyle in different groups. 140
Sociological Model of Consumer Behavior Sociological Model

According to the sociological model, the individual buyer behaviour is influenced by

society by intimate groups as well as social classes. That is, his buying decisions are
not totally determined by the concept of utility. That is his buying decisions are
governed by social compulsions as shown in Fig.

Sociological Model
This model represents the individual buyer behaviour which is influenced by society
—by intimate groups as well as social classes. That is, his buying decisions are not
totally determined by the concept of utility. That is his buying decisions are governed
by social compulsions.
As a part of sociological model— two important variations can be considered, viz.
Nicosia and Howard & Sheth. The marketing scholars have tried to build buyers-
behaviour models purely from the standpoint view of marketing man.
Here F. Nicosia model of 1966 and H. Sheth model of 1969 are of this category.
These models are systems models where a human being is analyzed as a system with
stimuli as INPUT and behaviour as OUTPUT.

4. Economic Model of Consumer Behavior

4. Economic Model of Consumer Behavior
The economic model of consumer behavior is the most straightforward of the
traditional models. This model argues that consumers try to meet their needs while
spending as few resources (e.g. money) as possible.
That means that businesses and manufacturers can predict sales based on their
customers’ income and their products’ price. If companies offer the lowest-priced
product, they may feel that they’re guaranteed a consistent level of profit.
While the economic model is the easiest to understand, it’s also the most limited. A
buyer may have other reasons for purchasing a product aside from price and personal
resources.
One such example would be prescription medicine in the U.S. healthcare industry.
While the price of a prescription drug may exceed the buyer’s resources, the buyer
would still have to find a way to purchase it and meet their needs. They might open a
credit card or take out a personal loan to pay for the medicine. Thus personal income
and price don’t affect the purchasing decision here; instead, need does.4.4.1.
Economic Model :In this model, consumers follow the principle of maximum utility
based on the law of diminishing marginal utility. Consumer wants to spend minimum
amount for maximizing his gains. Economic model is based on:

1. Price Effect: Lesser the price of the product, more will be the quantity purchased
2. Substitution effect: Lesser the price of the substitute products, lesser will be the
utility of the original product bought.
3. Income effect: When more income is earned, or more money is available, more
will be the quantity purchased. This model, according the behavioral scientists, is not
complete as it assumes the homogeneity of the market, similarity of buyer behaviour
and concentrates only on the product or price. It ignores all the other aspects such as
perception, motivation, 138 learning, attitudes, personality and socio-cultural factors.
It is important to have a multi-disciplinary approach, as human beings are complex
entities and are influenced by external and internal factors. Thus, price is not the only
factor influencing decision – making process.
Economic Model: Economics is the social science that analyzes the production,
distribution, and consumption of goods and services. According to the economic
model of buyer behaviour, the buyer is a rational man and his buying decisions are
totally 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
the amount over the set of products in a very rational manner with the intention of
maximizing the utility or benefits.

Contemporary Models
Contemporary models of consumer behavior focus on rational and deliberate
decision-making processes rather than emotions or unconscious desires. The
contemporary models include:
Engel-Kollat-Blackwell (EKB) Model
Black Box Model
Hawkins Stern Model
Howard Sheth Model
Nicosia Model
Webster and Wind Model

1. Engel-Kollat-Blackwell (EKB) Model of Consumer Behavior

1. Engel-Kollat-Blackwell (EKB) Model of Consumer Behavior:

The Engel-Kollat-Blackwell model of consumer behavior outlines a five-stage

decision process that consumers go through before purchasing a product or service.
Awareness: During this stage, consumers view advertisements from a business and
become aware of their need, desire, or interest, to purchase what they've just
discovered.
Information Processing: After discovering a product or service, a consumer begins
to think about how the product or service relates to their past experiences or needs and
whether it will fulfill any current needs.
Evaluation: At this point, consumers will research the product they’ve discovered
and research options from competitors to see if there is a better option or if the
original product is the best fit.
Purchasing Decision: A consumer will follow through with a purchase for the
product that has beat out competitors to provide value. A consumer may also stop the
process if they change their mind.
Outcome Analysis: After making a purchase, a customer will use what they’ve
bought and assess whether their experience is positive or negative. After a trial period,
they’ll keep a product and maybe decide to become repeat customers or express
dissatisfaction and return to stage three.
Overall, EKB says that consumers make decisions based on influencing factors that
they assess through rational insight.
This model applies to businesses that have many competitors with similar products or
services. If your product market is highly saturated and competitive, the goal is to
outshine your competitors by meeting customers at every stage of their journey.
Increase visibility for your business during the awareness stage through Search
Engine Optimization. Show them how your product or service will benefit them and
give them the resources they need to weigh you against your competitors,
like customer reviews and testimonials, free trials, discounts for bulk purchases.
Lastly, and provide excellent after-sales support to show them that you care about
their business even if they make a return.

4.4.6. Engle – Blackwell – Kollat Model

It consists of four components
(i) Information Processing
(ii) Central control units
(iii)Decision process
(iv)Environmental influences

(i) Information process: The information processing consists of exposure, attention,

comprehension and retention of the marketing and non marketing stimuli. For
successful sales the consumer must be properly and repeatedly exposed to the
message. His attention should be drawn, such that he understands what is to be
conveyed and retains it in his mind.

(ii) Central Control Units: The stimuli processes and interprets the information
received by an individual. This is done by the help of four psychological factors.

1. Stored information or past experience about the product, which serves as a standard
information for comparing other products and brands.
2. Evaluative criteria could be different from individual to individual.
3. Attitudes or the state of mind which changes from time to time, and helps in
choosing the product.
4. The personality of the consumer guides him to make a choice suiting to his
personality. 144

iii. Decision Process

The components of Buyer behavior process as explained in the Figure below.

2. Black Box Model of Consumer Behavior

2. Black Box Model of Consumer Behavior:
The Black Box model, sometimes called the Stimulus-Response model, says that
customers are individual thinkers that process internal and external stimuli to make
purchase decisions. The graphic below illustrates the decision process.
It may look complex, but it’s a fairly straightforward path. A consumer comes into
contact with external stimuli from your business’ marketing mix and other external
stimuli, and they process it in their mind (black box). They relate the external stimuli
to their pre-existing knowledge, like personal beliefs and desires, to make a decision.
In short, this model says that consumers are problem solvers who make decisions after
judging how your product will satisfy their existing beliefs and needs. Since
consumers only follow through with a purchase after understanding how a product
relates to their experiences, this model can benefit businesses selling products that go
along with a lifestyle.
Case in point: cars. Different brands sell their cars to specific types of buyers. Jeeps
and Subarus are for those that engage in outdoor activities and need a sturdy, reliable
vehicle. At the same time, Mercedez Benz and Lexus’ are marketed to those who
want luxurious driving experiences. Even though the machinery is relatively similar,
these brands speak to the pre-existing life values that customers have, and they
promise that purchasing their vehicle will uphold their values.

3. Hawkins Stern Impulse Buying Model

3. Hawkins Stern Impulse Buying Model:
The Impulse Buying theory is an alternative to the Learning Model and EKB, as it
claims that purchases aren’t always a result of rational thought. When we think of
impulse buying, we typically imagine picking up a candy bar or a pack of gum right
before checking out. These are certainly impulse purchases, but Hawkins Stern
categorizes them into four different types:
Escape Purchase: Sometimes called pure impulse, this involves purchasing an item
that isn’t a routine item or on a shopping list. Consumers are drawn to these items
through appealing visuals.
Reminder Purchase: A consumer makes a reminder impulse purchase when they
come across a product through in-store setups, promotional offers, or a simple
reminder that a product exists, like a strategically placed ice cream scoop in the
freezer aisle of a grocery store.
Suggested Purchase: Suggested impulse purchases occur when a consumer is made
aware of a product after a recommendation or suggestion from an in-store salesperson
or online algorithms. For example, seeing an ad that says, “Other people who bought
this shoe you’re about to buy also purchase these socks.” The consumer didn’t know
the socks existed, didn’t plan to buy them, but now the suggestion has told them that
they need them.
Planned Purchase: Although planned is the opposite of impulse, these purchases
occur when a consumer knows they want a particular product but will only buy it if
there is a deal involved. An unexpected price drop could lead a customer to make a
planned impulse purchase.
The Hawkins Stern Model applies to most businesses, as there are no limits to what a
customer with this purchasing behavior will buy. Create a tailored customer
experience by putting care into product displays, creating AI algorithms for online
shopping, or placing items on sale to appeal to your shoppers who are planned
purchase impulse buyers.
4. Howard Sheth Model of Buying Behavior

4. Howard Sheth Model of Buying Behavior:

The Howard Sheth model of consumer behavior posits that the buyer’s journey is a
highly rational and methodical decision-making process. In this model, customers put
on a “problem-solving” hat every step of the way — with different variables
influencing the course of the journey.
According to this model, there are three successive levels of decision-making:
Extensive Problem-Solving: In this stage, customers know nothing about the
product they’re seeking or the brands that are available to them. They’re in active
problem-solving mode to find a suitable product.
Limited Problem-Solving: Now that customers have more information, they slow
down and begin comparing their choices.
Habitual Response Behavior: Customers are fully aware of all the choices they have
and know which brands they prefer. Thus, every time they make a purchase, they
know where to go.
We’ve all gone through some version of these stages. Let’s look at an anecdotal
example.
When I first started buying glasses online, I had no idea which retailers I should use
or whether the glasses sold online would be the same quality as the opticians’
offerings. I searched online to find a high-quality online glasses retailer (extensive
problem-solving).
I found a few choices and started comparing them from both a pricing and quality
standpoint (limited problem-solving). I eventually chose one, and that’s the retailer
I’ve used ever since (habitual response behavior).
But these stages aren’t that simple. According to the Howard Sheth model, I was
under the sway of several stimuli during this process:
Inputs: This refers to the marketing messages and imagery a consumer receives
while they’re going through the decision-making process. “Inputs” also refers to any
perceptions and attitudes that come from the consumer’s social environment, such as
their friends, family, and culture.
Perceptual and Learning Constructs: This may sound complicated, but this stimulus
is simply the customer’s psychological makeup and psychographic information.
Perceptual and learning constructs may include needs, preferences, and goals.
Outputs: After inputs and perceptual and learning constructs are mixed together,
you get the output. The output is the customer’s resulting action under the influence
of marketing messages, social stimuli, and internal psychological attributes. It can
result in the customer paying more attention to a certain brand over another.
External Variables: This is anything that’s not directly related to the decision-
making process, such as weather or religion, that still may sway the customer’s
decision.
4.4.5. Howarth- Sheth Model
This model is slightly complicated and shows that consumer behaviour is a complex
process and concepts of learning, perception and attitudes influence consumer
behaviour. This model of decision making is applicable to individuals. It has four sets
of variables which are:
1. Input
2. Perceptual and Learning constructs
3. Outputs
4. Exogenous or external variables141

1. Input
Some inputs are necessary for the customer in making decisions. These inputs are
provided by three types of stimuli.

(a) Significative stimuli: These are physical tangible characteristics of the product.
These are price, quality, distinctiveness, services rendered and availability of the
product. These are essential for making decision.

(b) Symbolic Stimuli: These are the same as significative characteristics, but they
include the perception of the individual, i.e., price is high or low,quality is up to the
mark or below average, how is it different from other 142 products, what services can
the product render and, what is the position of after sales service and how quickly or
easily is the product available and, from where.

(c) Social stimuli: This is the stimuli provided by family, friends, social groups, and
social class. This is important, as one lives in society and for the approval and
appreciation of the society, buying habits have to be governed.These construct
psychological variables, e.g., motives, attitudes and perception which further
influence consumer‘s decision making process. The consumer receives the stimuli and
interprets it. Two factors that influence his interpretation are stimulus - ambiguity and
perpetual bias. Stimulus ambiguity occurs when the consumer cannot interpret or fully
understand the meaning of the stimuli he has received, and does not know how to
respond.

2. Perceptual and Learning constructs

Perceptual bias occurs when individual distorts the information according to his needs
and experiences. These two factors influence the individual for comprehension and
rating of the brand. If the brand is rated high, he develops confidence in it and finally
purchases it.

3. Output
Output means the purchase decision. After purchase there is satisfaction or
dissatisfaction. Satisfaction leads to positive attitude and increases brand
comprehension. With dissatisfaction, a negative attitude is developed.

4. Exogenous or External Variables

These are not directly influence the decision process. They influence the consumer
indirectly and vary from one consumer to another. These are the 143 individual‘s own
personality traits, social class, importance of purchase and financial status. All the
four factors discussed above are dependant on each other and influence the decision
making process. The model though complicated, deals with the purchased behaviour
in an exhaustive manner. Howard Sheth Model
1.Inputs Stimulus Display
2.Perceptual Constructs
3.Response Outputs (Output Variables)
Inputs Stimulus Display
These input variables consist of three distinct types of information sources in the
consumer’s environment.
Significant: Information furnishes physical brand characteristics such as quality,
price, distinctive, service, availability.
Symbolic: Verbal or visual product characteristics such as quality, price, distinctive,
service, availability.
Consumer’s social environment: This is the information about the product or service
offering that comes from the social environment, viz. family, groups, society and
culture at large.
Perceptual Constructs
The perceptual constructs deal with how a consumer obtains and processes
information received from the input variables. Once the buyer is exposed to any
information, there is attention; this attention towards the stimuli depends on the
buyers’ sensitivity to information in terms of his urge and receptivity towards such
information.
Not all information would be processed and the intake of information is subject to
perceived uncertainty and lack of meaningfulness of information; this is referred to as
stimulus ambiguity.
Learning constructs: The learning constructs relate to buyer learning, formation of
attitudes and opinions, and the final decision.

The learning constructs are seven in number, and range from a buyer’s motive for a
purchase to the final satisfaction from a purchase; the interplay of these constructs
ultimately leads to a response output or a purchase. The motives refer to the goals that
urge towards action or the purchase activity.
Response Outputs (Output Variables)
The output variables refer to the buyer’s action or response to stimulus inputs.
According to Howard and Sheth, the response outputs comprise five constituents, viz.,
attention, comprehension, attitude, intention and purchase.
These could be arranged in a hierarchy, starting from attention and ending up with
purchase.
Attention refers to the degree or level of information that a buyer accepts when
exposed to a stimulus. It reflects the magnitude of the buyer’s information intake.
Comprehension is the amount of information that he actually processes and stores;
here, it refers to brand comprehension which is buyers’ knowledge about the
product/service category and brand.
The attitude is the composite of cognition, affect and behaviour towards the
offering; the attitude reflects his evaluation of the brand and the like/dislike based on
the brand potential.
Intention refers to the buyer’s intention to buy or not to buy a particular offering.
Purchase behaviour refers to the actual act of buying. The purchase behaviour is a
cumulative result of the other four constituents.

5. Nicosia Model
5. Nicosia Model:
The Nicosia Model places emphasis on the business first and the consumer second. It
argues that the company’s marketing messages determines whether customers will
buy. Simple, right?
While it’s an attractive model because it places all the power on businesses, it’s
unwise to ignore the customer’s internal factors that lead to a purchase decision. In
other words, while you may offer the wittiest and most effective marketing copy ever,
a customer’s internal attributes may have more sway in some instances over others.
The model is comprised of four “fields”:
One: The business’ characteristics and the customer’s characteristics. What does
your marketing messaging look like? And what’s your customer’s perception of that
messaging? Are they predisposed to be receptive to your message? The latter is
shaped by the customer’s personality traits and experiences.
Two: Search and evaluation. Similar to the Howard Sheth model’s “limited
problem-solving” stage, the customer begins to compare different brands here based
on the company’s messaging.
Three: Purchase decision. The purchase decision will occur after the company
convinces the customer to choose them as their retailer or provider.
Four: Feedback. During the feedback field, the company will determine whether it
should continue using the same messaging, and the customer will decide whether they
will continue to be receptive to future messages.

Nicosia Model
1.Stage I
2.Stage II
3.Stage III
4.Stage IV
Stage I
Firm’s Attributes and Consumer’s Attributes: The first stage is divided into two sub-
stages: 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, a certain attribute may develop, and this becomes the input
for stage two.
Stage II
Search and Evaluation: Stage II 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.
Stage III
Decision: The result of motivation will arise by convincing the consumer to purchase
the firm products from a specific retailer. Field three consists of the act of purchase.
Stage IV
Feedback: Field four consists of the use of the purchased item. This involves feedback
of both the firm and the consumer after purchasing the product.
Firm’s feedback sales data
Consumer’s feedback—consumer’s attitude based on experience and
predispositions on future firm’s messages.
6. Webster and Wind Model of Organizational Buying Behavior

6. Webster and Wind Model of Organizational Buying Behavior:

The Webster and Wind Model is a B2B buying behavior model that argues there are
four major variables that affect whether an organization makes a purchase decision.
Those are:
Environmental Variables: Environmental variables refer to any external factors that
could sway a purchase decision. Customer demands, supplier relationships, and
competitive pressure are a few examples. Broader variables apply, too, such as
technology, politics, and culture.
Organizational Variables: Organizational variables refer to internal factors that
could sway a purchase decision, such as the organization’s goals and evaluation
criteria.
Buying Center Variables: Who makes the final purchase decision? Who has the
authority to sign the contract, and who influences the buying process? Buying center
variables take all of this into account.
Individual Variables: These variables refer to the demographic and psychographic
information of the individual prospect at the business. What’s their education and
level of experience? What are their goals and desires?
After taking all of those variables into account, B2B organizations are then able to
chart a predictable buyer’s journey for their target customers.
Your Customers Will Inform Your Strategy
If you take the time to create buyer personas, you’ll discover how your customers
plan, or don’t, to purchase your products and services. If they say a deal entices them,
pay close attention to the Hawkins Stern Impulse Buying Model. If they report strong
ties to their social groups, refer to the Sociological Model.
Overall, your customers will inform your strategy and help you create tailored
experiences that speak to their buyer behavior and leave them feeling satisfied after
every purchase.

Input Process output model of Consumer Behaviour

Input Process output model of Consumer Behaviour

This is a simple model of consumer behavior, in which the input for the customer is
the firm’s marketing effort (the product, price, promotion and place) and the social
environment. The social environment consists of the family, reference groups, culture,
social class, etc. which influences the decision-making process. Both these factors
together constitute the input in the mind of the consumer.
Need recognition
When one is aware of a want, tension is created and one chooses a product to satisfy
his needs. There is also a possibility that a person may be aware of a product before
its need is recognized. This is indicated by the arrows going both ways from the need
to the product and vice-versa.

Product awareness
Product awareness can be had from advertisement or exposure to different types of
media or by the social circle. The awareness and the need leads to the building of
interest. In some cases, the interest may also breakdown and, the decision process also
stops or may be postponed for the time being.

Evaluation
Evaluation may consist of getting more information about the product and comparing
and contrasting it with other products. This can be done theoretically or by taking a
trial. Once the evaluation is completed, the consumer’s interest may either build up
and he has intentions to buy, or he may lose interest and the decision process may
again stop or be postponed.

Intention
Once there is intention to purchase the product, the consumer goes ahead and acts or
purchases the product. Once the product is purchased, it is used to fulfil the need and,
the more the product is used, the more the consumer becomes aware of the positive
and negative points of the product.

Post-purchase behavior
If, after the purchase and use of the product the customer is satisfied, he is happy and
goes in for repeat purchases or recommends the same to his friends and
acquaintances. If, however,the customer is dissatisfied, he discontinues further
purchase of the product and builds a negative attitude towards it, which may be
harmful to the company.
The post-purchase behavior is very important for the marketer and the company
because it leads to proper feedback for improvement and maintaining the quality and
features desired by the product. If the customer is very happy with the purchase, he
forms a good impression about the product and the company.

Buyer’s Black Box Model

The above figure shows three stages in terms of stimuli buyer’s black box and buyer’
response.The consumer gets the input from the marketing effort of the firm (4 Ps) and
the other stimuli. This input is processed in the mind (Black Box), which constitutes
the characteristics of the buyer and the process of decision-making. Once the buyer
has decided to buy then, he responds in terms of his choice of product, brand, dealer,
timing and amount.

The post-purchase behavior of being satisfied or dissatisfied is also important, and is

shown in the decision-making process.

ECONOMIC MODEL:Economic Model Of Consumer Behaviour and its Limitations

By John / November 3, 2021
What is the economic model of consumer behaviour?
The foundational belief of the economic model of consumer behaviour is that human
beings are rational. Although this belief has been disapproved in recent developments,
this model holds good in certain situations. Under this view, people consider the
following questions:– What is in it for me? How much will I have to pay and can I
afford to buy it in exchange for what performance and quality? Can a purchase be
deferred because of future expectations like owning a dress in order to wear on special
occasions? This question is often answered by the basic premise of long-term
commitment.
He considers the price, utility, quality, durability, reliability, service etc., of the
product and then takes a decision. He purchases only those goods and services which
are useful to him and available at reasonable prices. Thus, this type of model is also
known as rational product buying motive.

What drives the economic model of consumer behaviour?

According to this model, consumer behaviour is driven by the principle of maximum
utility based on the law of diminishing marginal utility. The law of diminishing
marginal utility says that the marginal utility from each additional unit declines as
consumption increases. Thus, the decision to buy a product depends on two elements:
1. Purchase price 2. The extent of consumption at this particular point in time.

Three effects that influence the model

Economic Model of Consumer Behaviour

Economic Model of Consumer Behaviour

Price effect
Price elasticity states that whenever the price of a product is low, we will buy the
product more. This will lead to an increase in demand which can help producers to
make profits for themselves by selling more products at a fixed price. Consumers will
tend to buy lower quantities of products if the price is high. For example, if you are
offered free wine on upselling, then people are much inclined to buy a bottle of wine
more.

Price Elasticity = Price / Buy Quantity

Substitution effect
This refers to the tendency of consumers generally to prefer other products over an
existing one. Some individuals have higher levels of preference for product A, but
they will switch completely if the price differential between two goods is wide
enough. For example, if you are offered free wine with your meal (on up selling), then
people are much inclined to switch from beer. This will increase the income of
restaurant owners and managers because this new drink has a high-profit margin.

Substitutability Effect = Price / Preferences

Income effect
The income effect is also known as elasticity of demand which indicates the
responsiveness to income changes. In short, individuals with high incomes will spend
a larger portion of their money as opposed to those having low wages.

Income Effect = Price / Income

Limitations of the model

An economic model of consumer behaviour is one-dimensional, which means that
decisions are made on the basis of utility. This model assumes that people will always
be the same. It ignores differences between buyers and products, their values or
interests, age, or gender. It also ignores the actual knowledge held by consumers. For
example, if marketers want to increase the product acceptance of an existing model
they might introduce new features or substitute other products in its place.

It has been argued that man is a complex entity, so we have to understand him by
using multiple methods of research as well as techniques from different disciplines
such as sociology, psychology, and economics before attempting any meaningful
analysis of his behaviour patterns.

In addition to the marketing variables, man is exposed to technology and other things
that affect him in his competitive marketplace environment as he tries to sell their
products and services. It’s important not to assume that people are always rational and
don’t consider prices when they buy things. Some of them may just want the cheaper
product instead of getting the better one for more money or vice versa some people
might be irrational.
Family Decision Making Model
In a family decision-making model, it is important to understand how the family
members interact with each other in the context of their consumer decision-making.
There are different consumption roles played by various members of the family.
These roles are as follows:
(i) Influencers
The members who influence the purchase of the product by providing information to
the family members, the son in a family may inform the members of a new fast food
joint. He can influence the family members to visit the joint for food and
entertainment.
(ii) Gate keepers
These members control the flow of information for a product or brand that they favour
and influence the family to buy the product of their choice. They provide the
information favourable to themselves and, withhold information about other product
which they do not favour.
(iii) Deciders
These are the people who have the power or, money and authority to buy. They play a
major role in deciding which product to buy.
(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the house etc.
Father buying crayons for his children.

Preparers
Those who prepare the product in the form it is actually consumed. Mother preparing
food by adding ingredients to the raw vegetable. Frying an egg for consumption,
sewing clothes for the family, etc.

User
The person who actually uses or consumes the product. The product can be consumed
individually or jointly by all members of the family. Use of car by the family, use of
refrigerator,TV, etc.
The roles that the family members play are different from product to product. Some
products do not involve the influence of family members vegetables bought by the
house wife.
She can play many roles of a decider, preparer as well as the user. In limited problem
solving or extensive problem solving there is usually a joint decision by family
members.

A-model-of-family decision making

The diagram shows the predisposition of various family members, which when
influenced by other factors leads to joint or individual decisions. These factors are
shown in the diagram and consist of social class, lifestyle, role orientation, family life-
cycle stage, perceived risk, product importance and time pressure.
A Model of Family Decision Making

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