Consumer Behaviour Models
Consumer Behaviour Models
Consumer
Behavior Models
• Consumer
z Behaviour can be defined as the behavior
that consumers display in searching for, purchasing,
evaluating, and disposing of products and services that
they expect will satisfy their needs.
Traditional Models
Economic Model
Psychoanalytic Model
Sociological Model
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Contemporary models
Nicosia model
Price Effect
Income Effect
Substitution Effect
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Basic Assumptions
Individual needs are unlimited
Individual needs cannot be fully satisfied
Individual is completely aware of his needs
Individual is a rational buyer
Individual has the perfect information about the utility of
products available in the market
The utility of a product or service gets reduced with each
subsequent purchase
Price of goods are the sole sacrifice involved in obtaining a
product or service
Market is a collection of homogeneous individuals
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Economic Model
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Economic Model at Work
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Economic Model at Work
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Economic Model at Work
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Criticism to Economic Model
Economic Models ignores the effect of
Perception
Attitude
Motivation
Personality
Learning Process
Social Class
Culture
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Psychoanalytical Model of Consumer
Behaviour
Human mind is
composed of three
elements:
Conscious element
Preconscious element
Unconscious element
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Elements of Mind
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The Psychoanalytic Theory
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Psychoanalytical Model at work
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Psychoanalytical Model at work
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Psychoanalytical Model at work
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Criticism to Psychoanalytical Model
The interactions with all the set of society leave some impressions on
him and may play a role in influencing his buying behaviour.
Nicosia model
Output variables
Hypothetic constructs
Exogenous variables
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Input Variables: these variables acts as stimuli in the
environment.
Decision mediators are based on the motives. The buyer will have
certain mental rules for matching and ranking the purchase
alternatives.
Predisposition refers to a preference towards brand in the evoked
set which expresses an attitude towards them.
Inhibitors refers to environmental forces like price and time pressure
which may inhibit or put restrain on the purchase of a preferred
brand.
Satisfaction the extent to which, post actual purchase will measure
upto the buyer’s expectation
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Exogenous variables:
Field 1:- the consumer attribute and the firm’s attributes. The advt.
message sent from the company will reach the consumer attributes.
Field 2:- it is related to the search and evaluation, undertaken by the
consumer, of the advertised product and also to verify if other alternatives
are variable.
If the process results in motivation to buy, it becomes the input for Field 3
Field 3:- it explains how the consumer actually buys the product.
Transformation of the motivation into the act of buying
Field 4:- it is related to the uses of the purchased items. It can also be
related to an output to receive feedback on sales results by organisation.
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Limitations:
The flow is not completed and does not mention the
various factors internal to the consumer.
EKB model was created in 1968. Later this model went through
several revisions, updates, and improvements to become the
Engel, Blackwell, and Miniard Model (EBM) in the 1990s.
z Engel Kollat Blackwell Model
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Limitations of the Model
EBM model has also not been found to be a complete
analytical explanation of the consumer behaviour and his
decision-making. The model suffers from the following
shortcomings: