The Howard-Sheth Model

Those activities directly involved in obtaining , consuming and disposing of products and services, including the decision processes that precede and follow these actions

Logical Positivism Understanding and predicting consumer behavior Cause and effect relationships that govern persuasion and/or education Post Modern to understand consumption behavior without any attempt to influence it

External Influences Culture Subculture Demographics Social status Reference groups Family Marketing Activities

Decision Processes

Problem Recognition
Information Search Self-Concept & Learning Alt Eval & Selection Outlet select & Purchase

Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes

Post-purchase Processes

The Economic Theory The Learning Model Maslows Hierarchy of Needs Veblanian Social Psychological Model Psycho Analytic Theory Gestalt Theory Theory of Cognitive Dissonance The Nicosia Model

 Types Industrial Characteristics Reseller Bureaucracy Government and Greater non-profit involvement organizations Long term Purchase types relationships Straight rebuy Price is important Limited decision but may not be the making most important Extended factor decision making

 John A. Howard and Jagdish N. Sheth Published in the year 1969 Wished to explain the buying behavior of individuals over a period of time An attempt to explain the brand choice behavior of the buyer

 Assumptions of the theory That buying behavior is rational in the sense that it is within the buyers bounded rationality Attempted to build a positive theory, not a normative one If brand choice behavior is assumed to be systematic, then it can be observed in certain standard ways. If behavior is systematic, then it is caused by some even, a stimulus either in the buyer or the buyers environment

 Elements of the Buyers Brand Choice decision are: A set of motives Several alternatives courses of action Decision Mediators which are the set of rules that match motives and alternatives Decision Mediators develop the buyers process of learning about the buying situation.

 3 levels of decision making Extensive decision making Limited problem solving Habitual response behavior Inputs Perceptual and Learning Constructs Outputs Exogenous(External) variables

 According to the Howard-Sheth model there are four major sets of variables Inputs Perceptual and Learning Constructs Outputs Exogenous(External) variables

3 distinct types of stimuli in the consumers environment 1. Significative product/brand characteristics emanating from the product quality, price 2. Symbolic product/brand characteristics emanating from sources such as marketing and advertising 3. Social environment not controllable by the firm family, reference groups

Inputs lead to the following: 1. Attention buyers total response to information 2. Brand comprehension buyer knowledge in the specific product class 3. Brand attitude the satisfying potential of the brand 4. Buyer intention preferred brand will be bought the next time buying is necessitated

 Central part of the Model

Deals with the Psychological Variables that deals consumers decision

Comprises of 2 parts: Learning Constructs Perceptual Constructs

 Overt Search stems from significative inputs.Deals with how consumers receive and understand information Stimulus ambiguity- When the consumer does not understand the information he receives from the input stimulus Attention Perceptual Bias-Distortion of info to suit ones established needs.

Brand Comprehension-info about brands Confidence- derived from brand knowledge Satisfaction- from previous experience Attitude-choice, brand info Choice criteria- to evaluate alternatives Motives- Consumers Goals Intention- Needs of the consumer and preferences

 Represent hierarchical responses from attention to purchase Purchase is the sequential result of attention, brand comprehension, brand attitude and buyer intention

 External variables which affect the buying decisions of consumers. This Model does not recognize these but explains a little on them Importance of purchase Social class Cultural background Time pressure Financial Status Personality variables