Understanding Consumer Behaviour: An Overview of Various Models, Essays (high school) of French Language

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        In this chapter, various models of consumer behaviour are explained. These models explain how a consumer searches and gets the information and goes on to make a decision for himself, for his family or for the organisation. The student must understand the: • Input, process and output model • Individual decision-making • Family decision-making The only goose that lays golden eggs everyday... forever... is your customer. 
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    We have already seen that there are many factors which influence the decision-making of consumers. There are various consumers models which help in the understanding of consumer behaviour. These are listed below. We shall discuss these briefly. 1. Economic Model 2. Psychological Model 3. Pavlovian Model 4. Input, Process Output Model—Gandhi: Philip Kotler 5. Sociological Model 6. Howarth Sheth Model 7. Engel-Blackwell-Kollat Model 8. Model of Family Decision-making 9. Nicosia Model 10. A Model of Industrial Buying Behaviour. 1. Economic Model In this model, consumers follow the principle of maximum utility based on the law of diminish- ing marginal utility. The consumer wants to spend the minimum amount for maximising his gains. Economic man model is based on: Price effect: Lesser the price of the product, more will be the quantity purchased. Substitution effect: Lesser the price of the substitute product, lesser will be the utility of the original product bought. Income effect: When more income is earned, or more money is available, more will be the quantity purchased. This model, according to behavioural scientists, is not complete as it assumes the homo- geneity of the market, similarity of buyer behaviour and concentrates only on the product or price. It ignores all the other aspects such as perception, motivation, learning, attitudes, MODELS OF CONSUMER BEHAVIOUR 177 DHARM N-ADVER\AD20-1.PM5 Product awareness Product awareness can be had from advertisement or exposure to different types of media or by the social circle. The awareness and the need leads to the building of interest. In some cases, the interest may also breakdown and, the decision process also stops or may be post- poned for the time being. Evaluation Evaluation may consist of getting more information about the product and comparing and contrasting it with other products. This can be done theoretically or by taking a trial. Once the evaluation is completed, the consumer’s interest may either build up and he has intentions to buy, or he may lose interest and the decision process may again stop or be postponed. Intention Once there is intention to purchase the product, the consumer goes ahead and acts or pur- chases the product. Once the product is purchased, it is used to fulfil the need and, the more the product is used, the more the consumer becomes aware of the positive and negative points of the product. Post-purchase behaviour If, after the purchase and use of the product the customer is satisfied, he is happy and goes in for repeat purchases or recommends the same to his friends and acquaintances. If, however, the customer is dissatisfied, he discontinues further purchase of the product and builds a negative attitude towards it, which may be harmful to the company. The post-purchase behaviour is very important for the marketeer and the company because it leads to proper feedback for improvement and maintaining the quality and features desired by the product. If the customer is very happy with the purchase, he forms a good impression about the product and the company. Buyers Black Box Buyers Buyers Characteristics Decision Process Cultural Social Personal Psychological Problem Recognition Information Search Evaluation Decision Post-purchase Behaviour Buyers Response Marketing Other Stimuli Stimuli Product Price Promotion Place Economical Cultural Technological Political 1. Product choice 2. Brand choice 3. Dealer choice 4. Purchase timing 5. Purchase amount Fig. 20.3 Buyer’s black box model The above figure shows three stages in terms of stimuli buyer’s black box and buyer’s response. The consumer gets the input from the marketing effort of the firm (4 Ps) and the other stimuli. This input is processed in the mind (Black Box), which constitutes the characteristics DHARM N-ADVER\AD20-1.PM5 178 CONSUMER BEHAVIOUR of the buyer and the process of decision-making. Once the buyer has decided to buy then, he responds in terms of his choice of product, brand, dealer, timing and amount. The post-purchase behaviour of being satisfied or dissatisfied is also important, and is shown in the decision-making process. 5. Sociological Model This is concerned with the society. A consumer is a part of the society and he may be a member of many groups in a society. His buying behaviour is influenced by these groups. Primary groups of family friends and close associates exert a lot of influence on his buying. A consumer may be a member of a political party where his dress norms are different. As a member of an elite organisation, his dress requirements may be different, thus he has to buy things that conform to his lifestyles in different groups. 6. Howarth Sheth Model This model is slightly complicated and shows that consumer behaviour is complex process and concepts of learning, perception and attitudes influence consumer behaviour. This model of decision-making is applicable to individuals. It has four sets of variables which are: (i) Input (ii) Perceptual and learning constructs (iii) Outputs (iv) Exogenous or external variables. Input Some inputs are necessary for the customer for making decisions: These inputs are provided by three types of stimuli as shown in Fig. 20.4. (a) Significative stimuli: These are physical tangible characteristics of the product. These are price, quality, distinctiveness, services rendered and availability of the product. These are essential for making decisions. (b) Symbolic stimuli: These are the same as significative characteristics, but they in- clude the perception of the individual, i.e., price is high or low. Quality is upto the mark or below average. How is it different from the other products, what services can the product render and, what is the position of after sales service and how quickly or easily is the product available and, from where. (c) Social stimuli: This is the stimulus provided by family, friends, social groups, and social class. This is important, as one lives in society and for the approval and appreciation of the society, buying habits have to be governed. Perceptual and learning constructs These constructs are psychological variables, e.g., motives, attitudes, perception which influ- ence the consumer decision process. The consumer receives the stimuli and interprets it. Two factors that influence his in- terpretation are stimulus-ambiguity and perpetual bias. Stimulus ambiguity occurs when the consumer cannot interpret or fully understand the meaning of the stimuli he has received, and does not know how to respond. Perceptual bias occurs when an individual distorts the information according to his needs and experiences. M O D E L S O F C O N S U M E R B E H A V IO U R 179 D H A R M N -A D V E R \A D 20-1.P M 5 Fig. 20.4 Simplified version of the Howarth-Sheth model of buyer behaviour Stimulus display significative stimuli (a) Quality (b) Price (c) Distinctiveness (d) Service (e) Availability Symbolic Stimuli (a) Quality (b) Price (c) Distinctiveness (d) Service (e) Availability Social Stimuli (a) Family (b) Reference groups (c) Social class Physical Tangible Price paid Intangible Perceptual product perception that price is high or low symbolic Social groups to which customer belongs Inputs Overt search Stimulus ambiguity Confidence Motives Attention Perceptual bias Choice criteria Attitude Brand comprehension Satisfaction Intention Brand comprehension Purchase Intention Attitude Attention Perceptual Constructs Motives attitudes Perception which influences decision making process (Psychological variables) Learning Constructs Outputs DHARM N-ADVER\AD20-1.PM5 182 CONSUMER BEHAVIOUR The decision process may involve extensive problem solving, limited problem solving or routinised response behaviour. This depends on the type and value of the product to be pur- chased. Environmental influences The environmental influences are also shown in a separate box and consist of income, social class, family influences, social class and physical influences and other considerations. All these factors may favour or disfavour the purchase decisions. 8. Model of Family Decision-making In a family decision-making model, it is important to understand how the family members interact with each other in the context of their consumer decision-making. There are different consumption roles played by various members of the family. These roles are as follows: (i) Influencers The members who influence the purchase of the product by providing information to the family members, the son in a family may inform the members of a new fast food joint. He can influ- ence the family members to visit the joint for food and entertainment. (ii) Gate keepers These members control the flow of information for a product or brand that they favour and influence the family to buy the product of their choice. They provide the information favour- able to themselves and, withhold information about other product which they do not favour. (iii) Deciders These are the people who have the power or, money and authority to buy. They play a major role in deciding which product to buy. (iv) Buyers Buyers are the people who actually buy. A mother buying ration for the house etc. Father buying crayons for his children. Preparers Those who prepare the product in the form it is actually consumed. Mother preparing food by adding ingredients to the raw vegetable. Frying an egg for consumption, sewing clothes for the family, etc. User The person who actually uses or consumes the product. The product can be consumed indi- vidually or jointly by all members of the family. Use of car by the family, use of refrigerator, TV, etc. The roles that the family members play are different from product to product. Some products do not involve the influence of family members—vegetables bought by the housewife. She can play many roles of a decider, preparer as well as the user. In limited problem solving or extensive problem solving there is usually a joint decision by family members. The diagram shows the predisposition of various family members, which when influenced by other factors leads to joint or individual decisions. These factors are shown in the diagram M O D E L S O F C O N S U M E R B E H A V IO U R 183 D H A R M N -A D V E R \A D 20-1.P M 5 Fig. 20.6 A model of family decision-making Family Members Household Unit Masss Media Sources of Information Sensitivity of Information Overt Search Sensitivity of Information Overt Search Sensitivity of Information Overt Search Buying Motives Evaluative Beliefs Buying Motives Evaluative Beliefs Buying Motives Evaluative Beliefs Predisposition of Father Predisposition of Mother Predisposition of Other Family Members Family Buying Decisions Autonomous Decisions Joint Decisions Perceptual Bias Perceptual Bias Perceptual Bias Sex Personality Confidence Reference Group Role OrientiationSocial Class Life Style Life Cycle Perceived Risk Importance of Purchase Time Pressure Whether a decision is made individually or jointly is affected by these factors Solid lines indicate flow of information, dashed lines indicate feedback effects Display Word of Mouth DHARM N-ADVER\AD20-1.PM5 184 CONSUMER BEHAVIOUR and consist of social class, lifestyle, role orientation, family life-cycle stage, perceived risk, product importance and time pressure. 9. Nicosia Model This model explains the consumer behaviour on the basis of four fields shown in the diagram. The output of field one becomes the input of field two, and so on. Sub-field Two Consumer Attributes (Pre-disposition) Sub-field One Firm’s Attributes Field One Message Exposure Field Four Experience Consumption Storage Purchase Behaviour Search Evaluation Search Evaluation Motivation Attitude Field Two Search for and Evaluation of Means-end Relationship (Pre-action Field) Field Three Act of Purchase Field Four Feedback Fig. 20.7 Nicosia model Field one consists of subfields one and two. Subfield one is the firm’s attributes and the attributes of the product. The subfield two is the predisposition of the consumer and his own characteristics and attributes, which are affected by his exposure to various information and message, and is responsible for the building of attitude of the consumer. Field two is the preaction field, where the consumer goes on for research and evaluation and gets motivated to buy the product. It highlights the means and end relationship. Field three is the act of purchase or the decision-making to buy the product. The customer buys the product and uses it. Field four highlights the post-purchase behaviour and the use of the prod- uct, its storage and consumption. The feedback from field four is fed into the firms attributes or field one, and the feedback from the experience is responsible for changing the pre-disposi- tion of the consumer and later his attitude towards the product. Nicosia Model is a comprehensive model of dealing with all aspects of building atti- tudes, purchase and use of product including the post-purchase behaviour of the consumer. 10. A Model of Industrial Buyer Behaviour The purchases made in an industrial organisation involve many more people of different back- grounds and it is more complex. There are three main features in this model: 1. There are different individuals involved who have a different psychological make up. 2. Conditions leading to joint decision-making by these individuals. 3. Differences of opinion on purchases or conflicts that have to be resolved to reach a decision. These are shown in Fig. 20.8 as (1), (2) and (3).