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?

Types of Buying Decision Behavior Lawsons model

High Involvement Significant differences between brands Few differences between brands Low Involvement

Complex Buying Behavior

DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

Model of Buyer Behavior (Fig. 2.2)Lawsons model

Marketing and Other Stimuli Buyers Black Box Buyer Responses

Marketing
Product Price Place Promotion

Buyer Characteristics Buyer Decision Process

Product Choice Brand Choice Dealer Choice

Other
Economic Technological Political Cultural

Purchase Timing Purchase Amount

Cultural

Factors Influencing Consumer Behavior-Lawsons model (Fig.2.3)

Social Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Reference groups Family Roles and status

Culture Subculture Social class

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

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

SCOPE the sweep or reach of the impact STRENGTH- the power to impact behaviour IMMEDIACY direct or focused influence on behaviour; the impact is felt with no or little influence coming into play.

SCOPE
CULTURE SUBCULTURE FAMILY FRIENDS general general specific specific

STRENGTH
High High High High/low

IMMEDIACY
Long-term Long-term Long-term Long term/short term

MKT STIMULI

specific

low

Long term/short term

Buyer Decision Process (Fig. 2.4)-Lawsons model

Purchase Decision
Evaluation of Alternatives Information Search Need Recognition Postpurchase Behavior

BUYER ROLES
INITIATOR 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 purchase USER 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 stores 2. Physical characteristics dcor,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 BUYING

2. LIMITED PROBLEM SOLVING 3. EXTENSIVE PROBLEM SOLVING.

Major Types of Buying SituationsBusiness products

New Task Buying

Involved Decision Making

Modified Rebuy

Straight Rebuy

ASSUMPTION ON CONSUMER BEHAVIOURBehavioural 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 persons 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.

 The model claims that a persons 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.

Howard & Sheth model

Models of Consumer Behaviour Howard & 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)

Models of Consumer Behaviour -Howard & Sheth model

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

Stages in the Adoption Process

Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale.

Adoption: Consumer decides to make regular use of product.

Adopter Categories

Early Majority Percentage of Adopters Innovators

Late Majority

Early Adopters
13.5%

34%

34%

Laggards

16%

2.5%

Time of Adoption

Early

Late

Influence of Product Characteristics on Rate of Adoption

Communicability
Can results be easily observed or described to others?

Relative Advantage
Is the innovation superior to existing products?

Divisibility
Can the innovation be used on a trial basis?

Compatibility
Does the innovation fit the values and experience of the target market?

Complexity
Is the innovation difficult to understand or use?