UNIT 3

MODELS OF CONSUMER BEHAVIOUR

Structure
3.0 Introduction
3.1 Learning Outcomes
3.2 Classification of Consumer Behaviour Models
3.2.1 Modelling Objectives
3.2.2 Support of Basic Disciplines
3.2.3 Support of Analytic Techniques

3.2.4 Basic Unit of Consumer Behaviour Models

3.3 Traditional Consumer Behaviour Models

3.4 Contemporary Consumer Behaviour Models
3.5 Evaluation of Consumer Behaviour Models
3.6 Let Us Sum Up
3.7 Check Your Progress: Self Assessment Exercise
3.8 Further Readings
3.9 Glossary

3.0 INTRODUCTION
Every marketeer implicitly has a consumer behaviour model in his mind. This
is the result of the experience gained over time by him about different facets of
consumer behaviour. These understandings are built upon his own experiences
as a consumer, his knowledge of consumers gained through his marketing:
efforts and the body of knowledge available through the past researches
in the area of consumer behaviour. Since consumer behaviour is a subset of
human behaviour, the consumer behaviour models also borrow from other
disciplines covering, human behaviour like psychology, sociology, economics,
anthropology, decision sciences etc. In unit 1 we introduced the concepts of
consumer decision making process and how different factors affect these stages,
which acts as the base for most of consumer behaviour theories. In block 2, we
will study the personal factors that will teach us how our understanding of these
simple and complex constructs can be further improved and used in defining
the new models.
Consumer behaviour models may sound complex, but in reality they are very
simple mapping of consumer experience story in terms of input-output at
different stages. These relationships are expected to be mediated by certain
external environmental variables and the individual's personal characteristics.
While some models are quite comprehensive, their crucial tests are the tests
or validity based on live empirical data. Such tests reveal the predictability of
brand choice, which is the basic stated purpose of any model.. Although all
models do not offer same degree of predictability, but still every models serves
the important purposes like:
i) They help us to create the important constructs for specific types of Models of Consumer
markets. Behaviour

ii) They place various known constructs into a well-defined scheme and
show the flow of process.
iii) They show the directions of relationships among different constructs.
These directions, incidentally, are found to be much more correctly
indicated than the strengths of their relationships.
iv) They offer themselves as elegant and stronger tools of communication
about consumer behaviour.
v) They provide sound basis for further consumer research.

3.1 LEARNING OUTCOMES

After going through this unit you should be able to:
y understand consumer behaviour as a sub-set of human behavior;
y describe the nature, scope, types and areas of application of consumer
behaviour models;
y study the relationship,role, relevance,support and limitations of other
disciplines in building consumer behaviour models;
y discuss the use of consumer model in explaining buyer behavior.

3.2 CLASSIFICATION OF CONSUMER BEHAVIOR

MODELS
A consumer behaviour model is defined as ‘a theoretical framework for
understanding, explaining and learning as to why and how consumers make
the purchasing decisions with respect to a particular product or specific
brandchoice’.
Every marketeer in their dealing with consumers, learns about the patterns
in behaviour of consumers in various situations. The knowledge about the
consumers and the contextual circumstances, when plotted and analyzed
quantitatively and qualitatively gives us insight into the ‘why’ of the particular
decision. Hence, consumer behaviour models are contextualization of the results
of various behaviors studied to reach the causes, reasoning and predictability of
‘why’ a particular purchase would take place.
Figure 3.1 gives the basic (generic) model of consumer behaviour which is
the base for all models. When we tweak, personalize and modify these to suit
a particular market category, consumer category and model the behaviour it
becomes a specific consumer behaviour model, some of which would be
covered in this unit.

39
Understanding
Consumers

Figure 3.1: Conceptual framework for Modeling of Consumer Behaviour

These attempts can be classified into different categories according to following

main criteria:
y The objective of modelling.
y Support of basic disciplines.
y Support of analytical techniques.
y Basic unit of consumer behaviour modelled.
3.2.1 Modelling Objectives
The objectives of modelling have mainly confined to the following:
i) Description of buying behaviour: Models with this objective focus
upon the various constructs which play key roles in the buying process
and behaviour. These constructs are highlighted through their locations
in the schematic diagrams representing overall consumer behaviour.
These models are like snapshots of the consumer behaviour. Thus, they
are strong in representing the values that different variables of the model
take. But, they are weak in explaining causality.
One of the major use of such models is to communicate marketeers
visualisation of his consumers to his audiences. Models prepared with
this objective are also found to be convenient starting points for building
more complex and higher objective models. Various market definition
or consumer profile surveys provide the data sources for achieving these
objectives. Through such surveys the demographic, socio-economic,
psychographic, and other buying stages related data can be provided.
These data can portray the consumers in terms of their key dimensions
as well as on overall basis. Thus, for example, one microwave oven
marketing company, can describe its consumers as aware but not yet sure
about the utility of these ovens in their type of cooking. The company
can also profile such customers along their other salient characteristics
for marketing programmes. The company can, therefore, hypothesize
about the likely causes of the poor sales among the target customers by
identifying certain patterns in the data obtained through such descriptions
of consumers. For becoming more sure or establishing causalities, the
marketer shall have to approach modelling in alternative ways, as well.
ii) Describing the consumer processes: This objective concentrates upon
the processes which take place in influencing the consumer behaviour
rather than the state of consumers. Nicosia model (see later) is one of
the examples which is built with such an objective. The objectives take
40 the marketer one step closer to the causality models. They also help
 in linking various constructs and provide directions to these linkages Models of Consumer
within the models of consumer behaviour. Whenever these linkages are Behaviour
quantified the marketer gets even stronger handles to design the input
mix for achieving the resultant consumer states.
iii) Predictability and Control of Consumer behaviour: This is the ultimate
objective of consumer behaviour modelling. It presupposes the data to
describe the states of consumer behaviour as well as the relationships
among them. Understandably, it is the hardest to achieve. For one reason,
the knowledge base for achieving this objective depends upon the entire
knowledge base in. marketing and rest of other disciplines connected
with the prediction of human behaviour. The state of knowledge in all
such disciplines have not yet reached to a stage where they can attempt
this task. In the marketing contexts, the variables involved are of micro
nature like brand choice of a consumer, perception about a product or
learned associations about a product category or brand or consumption
occasions etc. While predicting such micro-level phenomena with the
help of usual variables the accuracy suffers acutely.

Activity 1
You are associated with a multinational company and belong to an orthodox
and traditional joint family system. The company offers perks which include
free club membership to you and your family members. How is this perk
likely to affect your and your family’s lifestyle.

3.2.2 Support of Basic Disciplines

The current model developments in the consumer behaviour can also be seen
through the utilisation of the basic academic disciplines on which such models
are mainly built. Economics, which gave the earliest conceptualization of
consumer behaviour, assumed consumer to be a rational economic entity. His
choices were the focus of attention in' economics at micro as well as macro
levels. The restrictive assumptions made in the discipline and the multitude of
human factors encountered in the practice of marketing reduces the utility of
this discipline somewhat in modelling consumer behaviour.
Psychology, with its focus on the why of human behaviour, has also contributed
significantly to the knowledge and modelling attempts of consumer behaviour.
Almost every consumer behaviour model uses; some psychological constructs.
The understanding of these constructs and their relationships with other
constructs are often borrowed from the mother discipline of psychology. The
main problem with the psychological constructs had mainly been in the areas
of their operationalisability in the context of marketing, weaker relationships
encountered and exclusion of non- psychological variables. Sociology, similarly,
has also been used significantly in understanding the group phenomena of
consumers (such as market segmentation) and different social processes among
consumers (such as diffusion of innovations).
There are some disciplines whose roles are increasingly felt to be important
by consumer behaviour modelers. We are discussing the roles of some such
disciplines next.
i) Decision Sciences: Consumer choice or decision is one- of the most
important areas of marketers interests. While economics and psychology 41
Understanding (through cognitive psychology) have developed in this area, the
Consumers emerging discipline of Decision Sciences focusses upon it, most directly.
The advantages of this discipline in the area of consumer behaviour
are many. (i) This helps in tracking the flow of consumer decision
making process; (ii) it helps in sorting out the important attributes or
features contributing to the decision; (iii) it helps in understanding
tradeoffs among these key attributes and their levels employed in the
minds of consumers. Another byproduct of utilising decision sciences
paradigm in consumer behaviour is the availability of decision sciences
methodologies to consumer behaviour.
ii) Anthropology: The unique focus, which differentiates anthropology
from rest of the disciplines, is "man-to-physical-world-interaction".
Marketing, which is preoccupied with consumer-product interfaces
should be a natural strong borrower from this discipline. Unfortunately,
this has not happened, in the past. There are several reasons for this.
Anthropology itself had been preoccupied with, much broader issues
like impact of wheel on society or distribution of blood groups across
population etc. For the reasons of making its studies more scientific- and
isolating the extraneous variables from the main variable of interest,
they had often set up their laboratories among the isolated tribals located
in remote areas. Such things gave to anthropology an esoteric aura.
However, there is a growing realisation, both among anthropologists
and marketers, to come closer and gain from the mutual interactions.
Anthropologists, on their part, have started studying the phenomena
which are commonplace in marketing and no longer overlook them as
mundane or difficult to scientifically capture through their established
methodologies. They are modifying their methodologies, searching for
more managerially meaningful contexts to- collect the data and- work
with their disciplines. Marketers, on the other hand, are realising the
marketing job does not end by formulating marketing mix for given
scenario of consumers. -The products and the rest of the offers made by
marketers interact with the lives of the consumers much more intensely
and organically. Unless these interactions are understood, the lasting
bond with the customers would be difficult to maintain. For example,
a sofa set in a household may enter the household through the impact
of marketing mix built, around the appeals of status, affiliation or
convenience. But, once adopted, the same sofa set interacts with the
lifestyles of family members, affects social relationships within the
family and outside, gives rise to the needs for a chain of additional
artefacts and so on. Many of these effects may be intended or not. But,
they happen nevertheless. Marketers are realising that anthropological
understandings of consumers in the context of their products provide
them with the cutting edge over their competitors. At another level, the
deeply satisfying relationship between the marketing mix, so designed,
and their consumers help to retain the customers far longer durations
and spread positive word of mouth.
iii) Systems Dynamics and Simulation: System dynamics and simulation
have been developed basically to model complex situations. The tools of
these techniques are specially honed to handle large number of variable and
their relationships. Consumer behaviour situations very closely fit these
42
requirements. As a result, there is a growing appreciations and utilisation
 of system dynamics and simulation in consumer behaviour models. These Models of Consumer
disciplines are used for formulating, testing and refining. the models, Behaviour

Activity 2
Hailing from a middle-class family you wish to buy a high end motorcycle.
List out all the activities which precede before deciding on the specific Brand.
Also, comment on the criteria for choosing the said brand in view of your
economic status.

3.2.3 Support of Analytic Techniques

Consumer behaviour models invariably deal with a multiplicity of variables.
For coping with this situation; current consumer behaviour models are using
diverse analytical techniques. Most of these techniques were available in the
literatures of mathematics, statistics and operations research. But, with the easy
availability of sophisticated computing power, these techniques have started
playing much greater roles recently. Thus, for example, stepwise regression
analysis, correspondence analysis is very often used for identifying the salient
variables and their relationships out of the observed data: Factor analysis and
multidimensional scaling techniques are used for reducing data and drawing the
essence from a large set of data. Very often consumers evaluation of different
attributes and their relative trade - offs are important. Conjoint analysis has
come as a handy tool for such purposes.
In consumer behaviour models the sequencing and directions of constructs are
crucial. Graph theory helps in doing this job well.
3.2.4 Basic Unit of Consumer Behaviour Models
Earlier consumer behaviour models centered around the behaviour of individual
consumers. In fact, they further concentrated upon fast moving consumer
nondurable products. This was, perhaps, easier as such models did not require
considerations of interactions among different individuals involved in the
purchase of same item. But, with the greater share of families, institutions and
industries in the total purchase of products, these social units can no longer
be ignored. Therefore, more and more models are surfacing whose units of
decision making are larger than individuals.
Classification of Models of Consumer Behaviour
The consumer behaviour models are classified as traditional and contemporary
on basis of the concepts they are based on. The traditional subjects like
economics, psychology and sociology are base for the first category, whereas
the modern concepts like operations research, systems dynamics form the basis
for the second category.
Table 3.1: Classification of Models of Consumer Behaviour
Traditional Models Contemporary Models
The Economic Model The Howard Sheth Model of Buying
Behaviour
Learning Model The Nicosia Model
Psychological Model or The Engle- Kollat Blackwell- Model
Psychoanalytical Model
The Sociological Model Bettman’s Model of Consumer Choice 43
Understanding
Consumers 3.3 TRADITIONAL MODELS OF CONSUMER
BEHAVIOUR
Primarily developed by economists with their understanding of economics
systems, in comprehending the decisions regarding the resource allocation of
the scarce resources for fulfilling unlimited needs and wants. There are four
popular models i.e., the Economic model, Learning model, Psychoanalytic
model and the Sociological model, giving us the fair understanding of consumers
behaviour.
A) Economic Model: It is based on the assumption that man is rational
in the decision-making, who evaluates the alternatives in terms of cost
and value and selects the product/ brand which gives him the maximum
satisfaction often expressed in terms of value and utility. Consumers
are assumed to follow the principle of maximum utility based on the
law of diminishing marginal utility. It is assumed that with limited
purchasing power, and a set of needs and tastes, a consumer will
allocate his/her expenditure over different products at given prices so as
to maximise utility. Through the principle/law of equi-marginal utility,
a consumer secures the maximum utility in any situation. This model
is unidimensional, which simply means that the buying decision is
based and governed by just single concept of utility and is very rational
in choosing only the option with maximum utility. It is based on the
following predictions of consumer buying behaviour.
1. Price effect – Lesser the price of the product, more will be the quantity
purchased.
2. Substitution effect – Lesser the price of the substitute product, lesser
will be the quantity of the original product bought.
3. Income effect – More the purchasing power, more will be the quantity
purchased
The assumption about the rational behaviour of human beings has been
challenged by the behavioural scientists. They are of the opinion that while the
predictions are useful, the model only explains how a consumer ought to behave,
it does not throw light on how the consumer behaves. Behavioural scientists
feel the economic model is incomplete, and its use is limited in predicting the
actual behaviour. Also the assumption in treating the market to be homogeneous
where all the buyers will think and act alike and also stresses only on one aspect
of the product i.e., income or resources at disposal for purchase.
Marketers argue that man is a complex entity and hence the need to adopt a
multidisciplinary approach to understand consumer behaviour is not a choice
rather compulsion. This model has ignored all vital aspects such as perception,
motivation, learning, attitude, personality and socio-cultural factors, and look
at consumers as just economic entities. The impact of modern day technology,
constant exposure to the new marketing variables, advanced products, efficient
distribution networks and highly interactive social media interactions, made the
decision-making even more complex and irrational, and treating just one factor
like price and/or income as the deciding factor is highly limiting the reality.
Behaviour scientists feels that broader perspectives need to be adopted while
44 analysing the buyer behaviour. So apart from economics, the role played by
needs, motives, personality, self-concept and the socio-cultural factors must Models of Consumer
be considered for better understanding the buyer responses to various stimuli, Behaviour
which in turn could influence their buying behaviour.
B) Learning Model: Classical psychologists have been interested in
the formation and satisfaction of needs and tastes, as the base for
consumption rather than the price or utility. They argued that living
beings were influenced by both innate needs such as the primary needs
of hunger, thirst, shelter and learned needs like fear and guilt. A drive
(internal stimulus) which when directed towards a drive reducing object
becomes a motive. The various products or services will act as stimuli
to satisfy drives. For instance, a hungry person will be driven towards
food, which after consumption will reduce the drive and also provide
satisfaction. According to learning theorists, this response of satisfaction
(feeling) reinforces the relationship between drive and the drive reducing
stimulus object as well as the related cues. In long term when consumers
learn to associate connection between stimulus and response, it becomes
a habit. There are certain cognitive theorists, who have advocated that
human beings not only learn to link stimulus with response (S-R) but
also about the formation of other cognitive processes such as, attitudes,
values, beliefs, motivation etc.
In marketing context, ‘learning’ will help marketers to understand how
consumers learn to respond in new marketing situations, or how they
have learned and responded in the past in similar situations. Very often
it is observed that consumer’s experience with one product from an
organisation is likely to be generalised to the other products of the firm.
Conversely, consumers also learn to discriminate, and this information
is useful in working out different marketing strategies. Simply stated
the learning theory model helps marketers to promote associations of
products with strong drives and cues and positive re-enforcements from
the consumers.
C) Psychological or Psychoanalytical Model: Based on the concept of
personality, the model focuses on human needs and motives operated
at the conscious as well as at the subconscious levels. At the core of
this model si the theory developed by Sigmund Freud. According to
which human behaviour (personality) is the outcome of (a) ‘id’ – the
source of all psychic energy which drives to act, (b) ‘super ego’ – the
internal representation of what is approved by the society, (c) ‘ego’ –
the conscious directing ‘id’ impulses to find gratification in a socially
accepted manner. Thus, we can say that human behaviour is directed by
a complex set of deep-seated motives.
From the marketing point of view this means that buyers are as influenced
by symbolic factors in buying a product, as with the observable factors
like price and quality. The broad stream of motivational research has been
involved in investigating motives behind consumer behaviour, so as to
develop this information in suitable marketing implications. Marketers
often use this approach to generate ideas for developing products –
design, features, advertising, and other promotional techniques.
D) The Sociological Model: Man is a social being and this model is based
on the concept that individual buyer is a part of the institution called 45
Understanding society. Since he is living in a society, he gets influenced by it and in turn
Consumers also influences it in its path of development. He is playing many roles
as a part of various formal and informal associations or organisations
such as a family member, as an employee of a firm, as a member of
a professional forum and as an active member of an informal cultural
organisation. Such interactions leave some impressions on him and may
play a role in influencing his buying behaviour.
There are various groups like the intimate groups and formal informal
groups. The intimate group comprising of family, friends and close
colleagues exercises a strong influence on the lifestyle and the buying
behaviour of an individual member. The peer group also plays a very
important role in acting as an influence factor, especially in adopting
particular lifestyles and buying behaviour patterns. The group generally
has an informal opinion leader, whose views are respected by the group,
and the leader is able to influence the individual member’s lifestyle and
buying decisions.
Similarly, depending on factors like income, occupation, and place
of residence etc., each individual member is recognised as belonging
to a certain social class. As a member of a particular class, he may
enjoy certain status and prestige. Each class has its own standards of
lifestyle and buying behaviour pattern, which an individual member
will adopt, and try to conform to the style and behavioural pattern of
the social class to which he/she belongs. Marketers use these models in
the process of STP (segmentation, targeting and positioning) strategies
to earn maximum profits through attraction, serving and retaining the
customers.
The contemporary models are discussed in next section.
Activity 3
The youngest sibling in your family is about to join the college and is bent
upon getting tattoos and getting hair coloured. How would you and your
parents react to this decision. Try and list out the factors influencing the
decision maker/s in this case.

3.4 CONTEMPORARY MODELS OF CONSUMER

BEHAVIOUR
In this section we discusssome recent models to illustrate the developments in
consumer behaviour modelling. These models are complex, multidimensional
and uses the traditional subject knowledge along with modern concepts,
combined using mixed methodologies. This newer approach differed from the
earlier models mainly because their focusis on the decision process adopted by
consumers and understanding it using concepts from behavioural sciences.
With the evolution of the consumer behaviour study, newer approaches were
used to understand what influences consumer behaviour. These were said to be
contemporary models.

46
These contemporary models or views differed from the earlier models mainly Models of Consumer
because they focused on the decision process adopted by consumers and Behaviour
borrowed concepts from behavioural sciences field. Some of these models have
been discussed hereunder.
A) The Howard Sheth Model of Buying Behaviour
The most popular among the contemporary models is the Howard-Sheth model,
which provides an integrating framework for a very sophisticated comprehensive
theory of consumer behaviour. The model tries to represent the rational brand
choice behaviour by buyers when faced with situations involving incomplete
information and limited abilities. This model can be modified for use for both
consumer as well as industrial purchase, and hence is used extensively. The
model considers decision making at three levels:
a. Extensive Problem Solving: In this initial stage of decision making, the
buyer has little information about brands and has not yet developed a
well-defined and structured criteria to make a selection from the various
products (choice criteria). This is just after the need has been identified
and solution is being desired in generic terms.
b. Limited Problem Solving: In the slightly more advanced stage choice
criteria which is well defined, but the buyer is not clear and is still
undecided on the choice set of various brands which will best serve him.
In this situation, the consumer is uncertain about ‘best brand’ to fulfil
the need.
c. Routinized Response Behaviour: This stage is defined by the well-
defined choice criteria along with strong predispositions towards one
brand that the buyers have. In such a situation, there is hardly any
confusion in the consumer’s mind, and the consumer makes a purchase
without much involvement like the daily groceries, or fast moving
consumer goods, and pick the particular brand with little evaluation of
alternatives.
The model strongly borrow from the learning theory concepts to explain brand
choice behaviour, and shows that when learning takes place as the buyer moves
from extensive problem solving to routinized problem solving behaviour, and
starts saving a lot of time on decisions.
B) Nicosia's Model of Consumer Decision Process
This model elaborates the decision making steps that the consumers adopt
before buying goods or services. It is written in the format of a detailed
computer flow chart. For ease of understanding the model can be simplified
by grouping together its various elements into fields and subfields. (Figure
3.2). Various components of the model are connected through direct as well as
feedback loops. Thus, the marketing organisation affects the target customers.
The customers, in turn, through the effects of marketers action affect the next
decisions of the marketer himself. This process goes on. The main fields and
subfields of the model are as following:

47
Understanding
Consumers

Figure 3.2 : Abridged version of Nicosia Model of Consumer Decision Process

i) Marketer's Communication affecting consumersattitude: Here the

marketing communications include not only mass media and personal
communications but products, price and even distribution aspects, too.
The exposure of these attributes affect consumer's attitudes as well
as perceptions. These effects on consumers depend upon his personal
characteristics (like values, personality and cumulative experiences).
After processing the inputs from marketer, the consumer forms his
attitudes as the inputs for the next field.
ii) Consumer's search and evaluation: This step occurs before consumer
becomes motivated to purchase the product. He seeks more information
and evaluates the relative merits of competing products' attributes. The
criteria for evaluation do also evolve with consumers past experiences
and the marketer's inputs in the form of marketing mix.
iii) Purchase action: This is the field 3 of the Nicosia model. Here, after
getting motivated to buy the brand, the customer actually shops for the
product. The choice of actual retailer does also take place here.
iv) Consumption experience and feedback: After purchasing the product,
the experience with its consumption can affect the consumers in many
ways. The negative experience may block his future purchase and lower
his attitude and evaluations of the product. The positive experience may
motivate him further to be loyal to the product. In any case, the field
provides significant feedback to the marketer. With this feedback, the
marketer can suitably modify the next cycle's marketing inputs.
Nicosia's model may appear to be simple and obvious at the first glance. But its
value lies in the integration of the body of knowledge in the area of consumer
behaviour existing till its time of formulation. It does also provide insights about
how the non-action kind of variables present in the environment and related to
the consumers trigger actions at the consumers end.
The flowcharting approach followed by the model systemizes the presentation of
the model considerably. But, it also forces boundaries on the set of possibilities
before the consumers. These boundaries may even be unrealistic. This kind of
situation limits the scope and flexibility of the model.
The model can be said to be the pioneering efforts by Nicosia to identify the
decision making process carried out by consumers. It is noteworthy to observe
48
that the model has viewed consumers to be involved in an active role and that Models of Consumer
they move from general product knowledge towards specific brand information Behaviour
(knowledge), while being involved in a purchase behaviour.
However the model is said to have certain limitations. Some of these are listed
below:
Firstly, the flow is not complete and does not mention the various factors
internal to the consumer.
Secondly, the assumption about the consumer being involved in the decision
process with no predispositions about the various brands (or firms involved) is
restricting.
And thirdly, the firm’s attributes and consumer attributes mentioned in the
model seem to be overlapping.
Inspite of the limitations the model can be said to be a pioneering effort on
the part of Nicosia to influence those who are involved in trying to understand
consumer behaviour.
C) The Engel- Blackwell (Kollat and Minard) Model
Engel and Blackwell worked on two models, ( Engel, Blackwell and Kollat ,model
and Engel, Blackwell and Miniard model) These models talks about consumer
behaviour as a decision making process in the form of five step (activities)
which occur over a period of time. The second model is a development of the
original Engel, Kollat and Blackwell model first introduced in 1968. It shares
certain things with the Howard-Sheth model. Both have similar scope and have
the same level of complexity. Primarily the core of the EBM model is a decision
process, which is augmented with inputs from information processing and other
influencing factors also. These models consists of four stages, as explained in
the following:
1. Information Input Stage: At this stage the consumer gets information
from marketing and non-marketing sources, which also influence
the problem recognition stage of the decision-making process. If the
consumer still does not arrive to a specific decision, the search for
external information will be activated in order to arrive to a choice or in
some cases if the consumer experience dissonance because the selected
alternative is less satisfactory than expected.
2. Information Processing Stage: This stage consists of the consumer’s
exposure, attention, perception, acceptance, and retention of incoming
information. The consumer must first be exposed to the message,
allocate space for this information, interpret the stimuli, and retain the
message by transferring the input to long-term memory.
3. Decision Process Stage: The central focus of the model is on five basic
decision-process stages: Problem recognition, search for alternatives,
alternate evaluation (during which beliefs may lead to the formation
of attitudes, which in turn may result in a purchase intention) purchase,
and outcomes. But it is not necessary for every consumer to go through
all these stages; it depends on whether it is an extended or a routine
problem-solving behavior.
49
Understanding 4. Variables Influencing the Decision Process: This stage consists of
Consumers individual and environmental influences that affect all five stages of
the decision process. Individual characteristics include motives, values,
lifestyle, and personality; the social influences are culture, reference
groups, and family. Situational influences, such as a consumer’s
financial condition, also influence the decision process.

Figure 3.3: Engel, Blackwell and Kollat ,model and Engel, Blackwell and Miniard model

Activity 4
Due to Covid’19, the children in the family need to use tablets for school in
hybrid mode. You are given the responsibility to chose the best option. What
steps would you take to finalise the right product, brand and how would you
make that choice. Comment on the decision making process involved and
explain the the steps involved using Nicosia Model, and compare it to Engle,
Blackwell model.
D) Bettman’s Information Processing Model of Consumer Choice
In this model the consumer is seen in the center of a host of information processing
activities. The consumer is the recipient of a large amount of information from
the marketer, competitors and rest of the environment. Moreover, he has his
own database built over time from his experiences, personality and set of
values. Since handling such a large amount of information simultaneously can
be very complex, the model believes that the consumers use certain simplifying
strategies. By using these decision strategies (heuristics), he need not process
all the information together. He can also follow some simple decision rules
which can provide ready answers for prespecified situations.
This model is also built around several flowcharts (Figure 3.4). These flowcharts
describe the components and interconnections among themselves that are
involved in the decision process. The main components of the model are the
following:
50
i) Processing Capacity: Each individual has a limited capacity to process Models of Consumer
information. This capacity can vary across individuals to some extent. Behaviour
But, its limits across all individuals are severally restrictive. Consumers
try to by pass these limits by ignoring certain information, priortising
information in use or using rules of thumb. Knowledge of the processing
capacities of individual consumers and the ways they utilise these
capacities provide invaluable insights to marketers.
ii) Motivation: Motivation provides the intensity and direction for the
choice process to the consumer in this model. This acts as the superseding
component and controls the continuation and suspension of various
processes in the model like attention and scanning etc. It also acts as the
engine to convert the non- action or passive inputs to the customers into
action outputs or overt behaviour of the consumer.
iii) Attention and Perceptual Encoding: This model divides attention into
voluntary and involuntary on. The voluntary attention is the conscious
choice the customer makes to process the perceptual encoding. Attention
seeking to achieve the hierarchy of goals as set by the consumer for
himself. The involuntary attention is triggered when the consumers have
to resolve between the conflicting information received for processing
or the short term attention provided before deciding whether to process
information through voluntary attention.

Figure 3.4: Bettman’s Model of Information Processing and Consumers Choice

The perceptual encoding helps the consumer in integrating the acquired

information to his perceptual network. It also helps the consumer in deciding
how and how much to process the information received from the marketer.
iv) Information Acquisition and Evaluation: Within the scope of
heuristics, the consumer also decides about the nature and amount of
information that would be necessary and sufficient for decision making.
If the available information is found to be insufficient but necessary,
he goes for acquiring further information through external search. This
new information is again evaluated in the light of decision at hand. This 51
Understanding process continues till the consumer is satisfied with the balance achieved
Consumers between the utility of information and the sacrifices required to acquire
them.
v) Memory: Consumer memory comprises of short term memory and long
term memory. In the short term memory the acquired information is
stored for less than two minutes. The consumer evaluates the impinging
stimuli and decides whether the information is worth transferring to
long term memory or may be forgotten. If it goes to long term memory,
it is stored for ever.
Memory is the resource for the internal search for information. Only
when it is found to be insufficient the external search is carried on.
vi) Decision Process: The ultimate decision of the brand is preceded by
various sub-decisions about various aspects using rules of thumb or
other methods of decision making. These decision processes work on
the acquired and evaluated information as well as the perceptions of
the consumer. The situational factors (like time pressure, moods and
company of other individuals etc.) do also influence these decision
processes.
vii) Consumption and Learning Processes: The experience gained
through the consumption of products as well as the process of decision
making are stored by the consumers. These learnings affect not only the
memory for the next cycle of decision making but also affects the future
heuristics for consumer decision making.
viii) Scanner and Interrupt Mechanisms: These are like the information
switches of the consumers. Whenever the consumer decides that he does
not have sufficient information for decision making internally, he scans
the environment for acquiring the necessary information. On the other
hand, whenever he finds that he has sufficient information or acquiring
more information is not worth the decision at stake, he shall interrupt the
information search process.
The Bettinan's consumer behaviour model focusses entirely on the
information processing. The research attempts to validate it are also
focussing upon the information handling by consumers. Consumers are
encouraged to share the protocol that they mentally" go through, while
taking decisions. These methods are rich in providing consumer insights
but difficult to administer practically.
Activity 5
You are planning to buy your first car though you have been using the official
vehicle for a long time. How does your search of information get affected by:
a) Memory b) Motivation c) Attention d) Processing capacity

3.5 EVALUATION OF CONSUMER BEHAVIOUR

MODELS
The above two section show the journey of consumer behaviour models from
simple unidimensional concepts to more complex multi-dimensional, flow
52 chart based contemporary models. Hence, there is a need to evaluate the worth
of these models from theoretical and marketing practice points of view. Some Models of Consumer
of the criteria chosen for this purpose and as following: Behaviour

i) Validity: Validity in research in general and specifically in consumer

behaviour refers to the extent at which the ‘tool’ measures the right
elements that need to be measured. Validity is classified into two groups:
Internal and External. Internal validity refers to how the research findings
match the reality, while the external validity refers to the extent to which
the findings can be replicated to other similar environments. Validity is
further of five types in marketing research and consumer behaviour:
1. Face Validity is the most basic type of validity, and it is associated with
a highest level of subjectivity because it is not based on any scientific
approach. In other words, in this case a test may be specified as valid by
a researcher because it may seem as valid, without an in-depth scientific
justification. Example: questionnaire design for a study that analyses the
issues of employee performance can be assessed as valid because each
individual question may seem to be addressing specific and relevant
aspects of employee performance.
2. Construct Validity relates to assessment of suitability of measurement
tool to measure the phenomenon being studied. Application of construct
validity can be effectively facilitated with the involvement of panel
of ‘experts’ closely familiar with the measure and the phenomenon.
Example: with the application of construct validity the levels of
leadership competency in any given organisation can be effectively
assessed by devising questionnaire to be answered by operational level
employees and asking questions about the levels of their motivation to
do their duties on a daily basis.
3. Criterion-Related Validity involves comparison of tests results with the
outcome. This specific type of validity correlates results of assessment
with another criterion of assessment. The common example is : nature
of customer perception of brand image of a specific company can be
assessed via organising a focus group. The same issue can also be
assessed through devising questionnaire to be answered by current and
potential customers of the brand. The higher the level of correlation
between focus group and questionnaire findings, the high the level of
criterion-related validity.
4. Formative Validity refers to assessment of effectiveness of the measure
in terms of providing information that can be used to improve specific
aspects of the phenomenon. This can be understood with the help of
the example: when developing initiatives to increase the levels of
effectiveness of organisational culture if the measure is able to identify
specific weaknesses of organisational culture such as employee-
manager communication barriers, then the level of formative validity of
the measure can be assessed as adequate.
5. Sampling Validity (similar to content validity) ensures that the area of
coverage of the measure within the research area is vast. No measure is
able to cover all items and elements within the phenomenon, therefore,
important items and elements are selected using a specific pattern of
sampling method depending on aims and objectives of the study.
53
Understanding Example: when assessing a leadership style exercised in a specific
Consumers organisation, assessment of decision-making style would not suffice,
and other issues related to leadership style such as organisational
culture, personality of leaders, the nature of the industry etc. need to be
considered as well.
ii) Robustness: It refers to the strength of a statistical model, tests, and
procedures according to the specific conditions of the statistical analysis
a study hopes to achieve. Assuming that the conditions of the study are
met, the model can be verified to be true. Consumer behaviour models
are based upon ideal situations, that do not exist in real world, but if data
is drawn from range of populations or probability groups, the robustness
would be the effective to replicate the results. In simple terms it is
resistant to errors of the result.
iii) Generalisability: Generalisability is a measure of how useful the results
of a study are for a broader group of people or situations. If the results
of a study are broadly applicable to many different types of people or
situations, the study is said to have good generalisability. The concept
must be understood in terms of the interrelationship between the internal
and external validity. Internal validity is defined as the extent to which
the observed results represent the truth in the population we are studying
and, thus, are not due to methodological [Link] the internal validity
of the model is established, the researcher moves to check for the
external validity, through application of the study on similar people in
a different settings. Hence, it refers to the extent to which the results of a
study are generalisable to people, especially for the sample of population
that theprevious sample is claimed to represent.
iv) Predictability: 'Predictability is the degree to which a correct prediction
or forecast. of a system's state can be made either qualitatively or
quantitatively.' Using this definition the modoles of consumer behaviour
are tested for their power to predict the purchase behaviour regarding
particular product and brand.
v) Simplicity: Simplicity is to be understood in terms of the constructs
and the outcomes of the consumer behaviour models. The model should
be simple to use, simple to replicate and must serve the purpose of
understanding the customer better so as to design the right marketing
mix.
vi) Compreshensiveness: Comprehensiveness of consumer behaviour
models means that any good model must include the set of practices,
processes and tools that can lead us to ensure that the customers can be
given a personalized interaction, which would make the customer feel
that their needs, wants and desires are well understood, and being served
the best through the marketing efforts.
Activity 6
As a producer and user of a leading brand of toilet soap. Identify the consumer
behaviour model that you would think appropriate understanding buyer
behaviour this product.

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 Models of Consumer
3.6 LET US SUM UP Behaviour
This unit focusses upon the relevance and utility of consumer behaviour models
for marketing managers. After describing the elements that make up a consumer
model, it goes on to comment on the contribution of the basic disciplines to
developing consumer behaviour models. The two categories of models are
explained and the more complex mutlidmensional models are also critically
analysed.. This unit concludes with some criteria for evaluation of consumer
models in general. The concepts of consumer behavior model must have made
you understand how decision-making is getting complex with the advancement
of technology and how communication both from customer to organizations
and vice versa is ever changing. Success of any consumer behaviour model is
primarily dependent on the communication skills of the people involved in the
use of these models.

3.7 CHECK YOUR PROGRESS: SELF-ASSESSMENT

You can check, how much you have gained from the unit, by trying to answer
the following questions.
The answers to these can be found in the contents of this Unit above. You
may please go back to the topics, to see if your answers are correct. These are
questions for self-assessment.
1) What is the utility of consumer behaviour models to a marketer? Explain
with reference to marketing application in case of
a) An entertainment service
b) A marketer of office equipment
c) A marketer of luxury cars.
d) Marketer of mobile apps
2) Comment upon the uses of consumer models
How have the basic disciplines of psychology and anthropology helped in
developing consumer models? Take examples from your own decisions to
explain the aspects which are explained by psychological variables.
3) Briefly describe the scanner and interrupt mechanisms in the Bettman
model.
How would these operate if you are planning to
a) Replenish your supply of toothpaste
b) Buy a new carpet for your living room.

3.8 FURTHER READINGS

y Jisana, T. K. (2014). Consumer behaviour models: an overview. Sai Om
Journal of Commerce & Management, 1(5), 34-43.
y Bray, J. P. (2008). Consumer behaviour theory: approaches and models.

55
Understanding y Olson, J. C., & Reynolds, T. J. (2001). The means-end approach to
Consumers understanding consumer decision making. Understanding consumer
decision making: The means-end approach to marketing and advertising
strategy, 3-20.
y Malik, R. (2020). To understand the life cycle and customer adoption
of mobile apps in modern India. International Journal of Electronic
Customer Relationship Management, 12(3), 273-290.

3.9 GLOSSARY
Consumer behavior: The actions and decisions made by individuals and
households when buying, using, and disposing of goods and services.
Information-processing model: A theoretical framework that explains
consumer behavior as influenced by how consumers process and interpret
information.
Decision-making model: A theoretical framework that explains consumer
behavior as a process of decision-making that involves various stages, such as
problem recognition, information search, evaluation of alternatives, and post-
purchase evaluation.
Behavioral economics: A branch of economics that incorporates psychological
insights into consumer behavior to explain deviations from rational decision-
making.
Nudge theory: A behavioral economics approach that suggests that small and
subtle changes in the environment can influence consumer behavior without
limiting freedom of choice.

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