Consumer

Decision
Making
Models

The consumer models refer to varying orientations and perspectives with

which consumers approach the marketplace and how/why they behave as
they do. They refer to how the varying orientations impact the buying
decision process and overall buyer behavior.

Consumer Decision Making Models: 1. Stimulus-response Model Of Buyer Behavior

2. The Five Values Influencing Consumer Choice Behavior
3. Solomon Model Of Comparison Process
4. Nicosia Model
5. Howard-sheth Model
6. Engel-kollat-blackwell Model
7. The Economic model

Stimulus-Response Model Of
Buyer Behavior
Middleton (1994) presented an adapted model of consumer behavior tourism,
which was termed the stimulus-response model of buyer behavior. This model
is based on the four interactive components with the central component
identified as 'buyer characteristics and decision process'.
The model separates out motivators and determinants in consumer buying
behavior and also emphasizes the important effects that an organization can
have on the consumer buying process by the use of communication channels.

Sheth-Newman Gross Model of

Consumption Values
According to this model, there are five consumption values influencing consumer
choice behavior.
These are functional, social, conditional, emotional, and epistemic values.
Any or all of the five consumption values may influence the decision.
Various disciplines (including economics, sociology, several branches of
psychology, marketing and consumer behavior) have contributed theories and
research findings relevant to these values, (Sheth et al. 1991).
Each consumption value in the theory is consistent with various components of
models advanced by Maslow (1970), Katona (1971), Katz (1960), and Hanna
(1980). Five consumption values form the core of the model:

Solomon Model Of
Comparison Process

Nicosia Model

This model focuses on the relationship between the firm and its potential
consumers

The firm communicates with consumers through its marketing messages

(advertising), and the consumers react to these messages by purchasing
response

The firm and the consumer are connected with each other, the firm tries to
influence the consumer and the consumer is influencing the firm by his
decision

Howard-sheth Model
This Model Suggests Three Levels Of Decision Making: 1.The first level describes the extensive problem solving. At this level the consumer
does not have any basic information or knowledge about the brand and he does not
have any preferences for any product. In this situation, the consumer will seek
information about all the different brands in the market before purchasing.
2.The second level is limited problem solving. This situation exists for consumers
who have little knowledge about the market, or partial knowledge about what they
want to purchase. In order to arrive at a brand preference some comparative brand
information is sought.
3.The third level is a habitual response behavior. In this level the consumer knows
very well about the different brands and he can differentiate between the different
characteristics of each product, and he already decides to purchase a particular
product.

Engel-kollat-blackwell Model
This model was created to describe the increasing, fast-growing body of knowledge
concerning consumer behavior. This model, like in other models, has gone through
many revisions to improve its descriptive ability of the basic relationships between
components and sub-components, this model consists also of four stages;

Information Input
Information Processing
Decision Process
Variables Influencing The Decision Process

Factors affecting
Consumer Decision
Family
Reference and groups
Social- economic
factors
Cultural factors

Family Decision-Making

Family
Two or More Persons related by blood or
marriage
Reside with each other

Functions of a family

Traditional Family Life

Cycle:
The Bachelor stage
Newly Married Couple
Full nest 1
Full nest 2
Full nest 3
Married No kids
Empty nest 1
Empty nest 2
Solitary survivor ( retired)

Bachelors

Young singles
Low financial liability
Low earning
Less savings

More spending on cars ,fashion . Recreation ,

food , vacations

Newly Married Couples

Without children

Much better finalcial ststus then single

Spend on cars , vacations , lesiure

More susceptible towards advertising

Full Nest-I

First child

Either income decline (one takes care )

More purchase of household furnitures (dryers,

furniture and furnishings for the child etc)

More on baby care products ( baby food ,

vitamins , toys etc)

Reduces the savings .

Full Nest-II

The youngest child has reached the school

The employed spouse income has improved

The other spouse has returned to work

Consumption pattern heavily influenced by

children

More quantity of food packages , cleaning supplies ,

bicycles etc

More towards discount stores ( Best price , More ,

Big Bazar etc ).

Full Nest-III

Family grow older

Parents enter min 40s

Financially well of

Replacement of furniture , automobiles

luxury

Married no kids older

singles

Single aged 40( never married , or divorced or

death of the spouse ).

Divorced financially not well of (expense of

divorce and children expenses )

Singles well of financially saves for future

Empty Nest-I

Financially stable

children left home independent

More savings

Home improvements , luxary ,vacations ,

sports , second home etc .

Empty Nest-II

Income earners have retired

Expenditure becomes health oriented .

Move to climate more suitable to health .

Part time works engagements .

Purcahse Influence
Pattern

Autonomic

Husband Dominant

Wife Dominant

Joint

Marital
roles
in products

Wife dominant:
Women clothing
Women jewelry
Cosmetics
Daily needs
products

Husband
Dominant:

Autonomic :

Sporting
Equipments
Mens business
clothing
hardware's

Toys and games

Baby products
Luggage
or other
durables

Joint sync:
Home
appliances
Vacations
&
Financial
Products

Wife Dominant Ad

Husband Dominated

Strategies To Resolve
Conflict

Advantages to study
family life cycle

It provides the view to consumption at

diferent stages of FLC

For making the promotions & channel more

efective

Tool for segmentation in market

Consumer DecisionMaking Process

A five-step process used
by consumers when buying
goods or services.

Consumer DecisionMaking Process

Need
Need Recognition
Recognition

Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

Information
Information Search
Search
Evaluation
Evaluation
of
of Alternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior

Need Recognition
Result of an imbalance
between actual and
desired states.

Need Recognition
Marketing helps
consumers recognize
an imbalance
between present
status and preferred
state

Present Status

Internal Stimuli
and
External Stimuli
Preferred State

Stimulus
Any unit of input affecting
one or more of the five
senses:
sight
smell
taste
touch
hearing

Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.

Recognition of
Unfulfilled Wants

When a current product isnt performing

properly

When the consumer is running

out of an product

When another product seems superior to the

one currently used

Information Searches
Internal

Process of recalling past

information stored
in the memory.

External

Process of seeking information

in the
outside environment.

Information Search
Internal Information Search

Recall information in memory

External Information search

Seek information in outside
environment
Non-marketing controlled
Marketing controlled

External Information
Searches
Need Less
Information
Less Risk
More knowledge
More product experience
Low level of interest

Need More
Information
More Risk
Less knowledge
Less product experience
High level of interest

Evoked Set
Group of brands,
resulting from an
information search,
from which a buyer
can choose.

Evaluation of
Alternatives
Evoked Set

Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance

Purchase!

Purchase
To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumers choice

Cognitive Dissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values
or opinions.

Postpurchase Behavior
Cognitive Dissonance

Did I make a good decision?

Did I buy the right product?
Did I get a good value?

Can minimize through:

Effective Communication
Follow-up
Guarantees
Warranties

Types of Consumer Buying

Decisions
Routine
Routine
Response
Response
Behavior
Behavior

Less
Involvement

Limited
Limited
Decision
Decision
Making
Making

Extensive
Extensive
Decision
Decision
Making
Making

More
Involvement

Five Factors influencing

Decisions
1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered

Routine Response
Behavior
Little involvement in selection

process

Frequently purchased low cost goods

May stick with one brand
Buy first/evaluate later
Quick decision

Limited Decision
Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative

brands

Short to moderate time to decide

Extensive Decision
Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance

Level of Involvement
Previous
Previous
Experience
Experience

Factors
Factors
Determining
Determining
Level
Level of
of
Involvement
Involvement

Interest
Interest

Perceived
Perceived Risk
Risk of
of
Negative
Negative
Consequences
Consequences
Situation
Situation

Social
Social Visibility
Visibility

Marketing Implications of
Involvement
High-involvement
purchases require:
extensive promotion
to target market and
good advertisement

Low-involvement
purchases require:
in-store promotion
and eye-catching
package design

Factors Influencing
Buying Decisions
Cultural
Factors

Social
Factors

CONSUMER
DECISIONMAKING
PROCESS

BUY /
DONT BUY

Culture
Set of values norms,
attitudes, and other
meaningful symbols that
shape human behavior and
the artifacts, or products,
of that behavior as they
are transmitted from one
generation to the next.

Cultural Influences on
Buying Decisions
Values
Values
Language
Language
Myths
Myths
Customs
Customs

Components
Components of
of
Indian
Indian
Culture
Culture

Rituals
Rituals
Laws
Laws
Material
Material Artifacts
Artifacts

Culture is...
Pervasive
Pervasive
Functional
Functional
Learned
Learned
Dynamic
Dynamic

Social Class
A group of people in a
society who are considered
nearly equal in status or
community esteem, who
regularly socialize among
themselves both formally
and informally, and who
share behavioral norms.

Social Influences
Social
Social Influences
Influences on
on
Buying
Buying Decisions
Decisions

Reference
Reference Groups
Groups

Family
Family Members
Members
Opinion
Opinion Leaders
Leaders

Reference Group
A group in society that
influences an individuals
purchasing behavior.

Group

A group may be identified as an

aggregation of small number of persons
who work for common goals .
Two or more persons
Collective identity
Interaction
Shared goals interest .

Reference Groups

A useful framework of analysis of group

influence on the individual is the so called
reference group .
Primary reference group with a great deal of

influence .
Secondary reference group: with a less

influence (club members )

Reference Groups
Primary
Direct
Secondary
Types of
Reference
Groups

Aspirational
Indirect
Non-aspirational

Types of Influence of
Reference Groups

Informational : They serve as information

sources and influence perceptions

Normative : They affect an individuals

aspiration levels

Identification : Their norms either constrain or

stimulate consumer behavior of others like
celebrity.

Opinion Leaders
An individual who
influences the opinion
of others.