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The document discusses 10 consumer behavior models that can help businesses understand customer purchasing decisions. It describes 4 traditional models: the learning model, which explains how customers satisfy basic and learned needs; the psychoanalytical model, which views purchases as fulfilling unconscious desires; the sociological model, which sees purchases as influenced by social groups; and the economic model, which views customers as seeking to meet needs at lowest cost. It also outlines 6 contemporary models that view purchasing as a rational process, including the Engel-Kollat-Blackwell model that outlines a 5-stage decision process from awareness to post-purchase evaluation. Understanding which models apply can help businesses better target customers and improve experiences.

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Hritik Singh
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0% found this document useful (0 votes)
32 views

Lecture1 1 4

The document discusses 10 consumer behavior models that can help businesses understand customer purchasing decisions. It describes 4 traditional models: the learning model, which explains how customers satisfy basic and learned needs; the psychoanalytical model, which views purchases as fulfilling unconscious desires; the sociological model, which sees purchases as influenced by social groups; and the economic model, which views customers as seeking to meet needs at lowest cost. It also outlines 6 contemporary models that view purchasing as a rational process, including the Engel-Kollat-Blackwell model that outlines a 5-stage decision process from awareness to post-purchase evaluation. Understanding which models apply can help businesses better target customers and improve experiences.

Uploaded by

Hritik Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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10 Consumer Behavior Models (& Which One


Applies to Your Business)
Published: December 10, 2021
Consumer behavior models are instrumental for understanding how, when, and why your
customers buy. By applying the models to your customer acquisition efforts, you can
accurately predict who will buy your product and target the right customers at the right time.

In this post, we’ll discuss the most important consumer behavior models and explain how you
can use them to create customer-centric experiences.

Download Now: Free Customer Journey Map Templates

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.

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 Behavior Models Contemporary Consumer 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

Traditional Behavior Models


Traditional behavior models were developed by economists hoping to understand what
customers purchase based on their wants and needs. Traditional models include the
following:

 Learning Model

 Psychoanalytical Model

 Sociological Model
 Economic Model

1. Learning Model of Consumer Behavior

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).

Image Source

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.

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.’
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. 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.

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


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.
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.

Image Source

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

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


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.
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.
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.

https://blog.hubspot.com/service/consumer-behavior-model

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