Consumer Behaviour is the study of how a customer chooses, buys uses and dispose of goods for satisfying their needs. It simply refers to the manner in which a customer reacts in the market. It specifies the way in which a customer makes purchase decisions in the market.
Different consumers react differently in a market owing to various factors that influence Consumer behaviour. Various models of consumer behaviour are developed for proving the effects of these factors on the behaviour of consumers thereby influencing their process of decision making.
10 models of consumer behaviour are as given below: –
- Pavlovian Model.
- Psychological Model.
- Sociological Model.
- Family Decision-making Model.
- Economic Model.
- Input, Process, Output Model.
- Howarth Sheth Model.
- Nicosia Model.
- Industrial Buying Model.
- Engel-Blackwell-Kollat Model.
Consumer Behaviour Models – Pavlovian Model
Pavlovian model of consumer behaviour is developed and named after the famous Russian physiologist, Iran Pavlov. This physiologist carries out experiments using dogs for identifying the change in behaviour. Iran conducted an experiment in which he rang the bell and then immediately give a meat piece to dog thereby causing them to salivate. He studies the extent of behavioural changes occurred in dogs owing to the level of saliva secretion in them.
Practice and personal experience brings changes in the behaviour of an individual thereby assisting him in a learning process. Drive, Drives and Reinforcement are the elements of the Learning Process. Internal stimuli that lead to actions are termed as Drive. Whereas, inborn psychological needs resulting from pain, hunger, thirst and physical pleasure creating stimuli leading to triggering and non-triggering cues are known as Drives. The triggering cues are the one that starts the decision process and non-triggering cues only influence the process of decision. These cues assist in forming a response (buy or do not buy) that gets reinforced in a conditional pattern over time. Psychology is the key basis of this model possessing acceptability at globe level.
Consumer Behaviour Models – Psychological Model
Psychological model of consumer behaviour is the one that is based on the theory of Hierarchy of needs given by renowned psychologist A.H. Maslow. This model has categorized the Human needs into Psychological, Safety, Love and belonging, Ego and Self-Actualization needs. Hierarchy of needs is the name given to this categorization of needs.
As per the psychological model, the needs of a consumer influences his behaviour. The needs of the consumer never get over and arise one after another over the period of time. The consumer keeps his basic needs at first priority for satisfying them and then moves on to other needs of higher level. This cycle continues until the point of time when he reached the top level in the hierarchy of needs.
Consumer Behaviour Models – Sociological Model
Sociological model states that the behaviour of consumer is influenced by society comprising of versatile groups. These groups are divided into Primary and Secondary groups. Family members, relatives, friends and closed acquaintances are included in the Primary group. Whereas, any member in society having similar personality and requirements as of consumer is termed as Secondary group. In a holistic manner, this model pays attention to the consumer’s lifestyle and their related product requirements in society.
Consumer Behaviour Models – Family Decision making Model
Family decision-making model states that every family member plays a distinct role in the purchase decision of a person. In total, the family members are categorized into 6 types who are the main determinants of the decision process of an individual.
These family members are: User, Influencer, Preparer, Gatekeeper, Buyer and the Decider.
- The user: User is the individual who is planning to purchase a product for consumption. User may be a single individual or a whole family depending upon the type of product for which the purchase decision is to be taken. For e.g. A mobile phone may be used by a single individual whereas a motor bike may be used by all family members.
- The influencer: He is the key member who plays an important role in all decisions taken within the family members. An influencer is the one who brings all information regarding new product and services arrivals in the market to all other members of family.
- The preparer: Preparer is a person giving a final shape to a product in which it is consumed by family members.
- The Gatekeeper: Gatekeeper is a person in a family who restrict the entry of any disliked products to family members. He is the one who influences the decisions for the products that are useful for members of family.
- The Buyer: He is the person who finally buys the product or service.
- The Decider: Decider is the one possessing money power in family for buying a product finalized by all members.
Consumer Behaviour Models – Economic Model
Economic Model of consumer behaviour states that buying decisions of the consumer are influenced by the utility concept. Man is assumed to be a rational human being under economics, who chooses such product that offers him a maximum utility. They follow the maximum utility principle that is based on the law of diminishing marginal utility. Consumers desire of attaining maximum utility by spending the minimum amount. It is assumed that he will allocate his spending over a different variety of product with an intention of deriving maximum benefits.
Economic model is based on following three effects: Income effect, Price effect and Substitution effect.
- Income Effect: States that with the rise in income level of consumer, his purchasing power will increase and he will purchase more products.
- Price Effect: States that lesser the price of the product, more will be the quantity of goods purchased.
- Substitution Effect: States when substitute goods are available at cheaper cost, then original product will be purchase in lesser quantity by consumer.
Consumer Behaviour Models – Input, Process, Output Model
Input, Process, Output Model of Consumer behaviour is the one that pays attention on product that is marketed, external forces and consumer’s family background.
Input and Output factor that are included in this model are: –
- Input: It comprises of forces like marketing efforts taken by company and environmental forces that influence the process of decision making of consumer. Marketing forces includes product, price, promotion and place. Whereas, environmental forces comprise of family, culture, reference group, social class etc. These are the important factors which consumer properly evaluates before making any purchase decision.
- Process: Process includes various steps through which consumers goes through before making a buying decision. These steps are need, recognition, awareness, examination and finally the purchase.
- Output: Output mean the way in which a consumers react to the marketing efforts of company. Some of the consumer response to marketing efforts are-
- Purchase Decision
- Selection of Product
- Selection of Brand
- Selection of store or dealer
- Amount and timing of purchase
- Behaviour post purchase
Consumer Behaviour Models – Howarth Sheth Model
Howarth Sheth model states the difficulties related to consumer and tells that there are 4 sets of variables that influence the consumer behaviour.
These Set of variables are: –
- Inputs Parameters
- Output Parameters
- External variables
- Perceptual and Learning Constructs
- Input Parameters: Input parameters includes 3 types of stimuli- Significative stimuli, Social stimuli and Symbolic stimuli. Physical tangible characteristics of product like uniqueness, price, quality and availability of stock is termed as Significative stimuli. Social stimuli include factors of Consumer societal group, family and reference groups. Whereas, individual perception about features of a particular product is known as Symbolic stimuli.
- Output Parameters: Output parameters in Howarth model is the final decision of purchase by consumer and his level of satisfaction and dissatisfaction from such purchase.
- Perceptual and Learning Constructs: It refers to the internal variables that influence decision making process of buyer such as his motives, attitude, perception, experience and learning. On receiving the stimuli, consumer interpret it which is influenced by 2 factors namely perceptual bias and stimulus ambiguity. These factors are the main that influence consumer to examine the product for finally buying it.
- External variables: These are indirect factors affecting the buying decision of consumer like social class, financial status, time pressure and personal traits of buyer.
Consumer Behaviour Models – Nicosia Model
Nicosia model of Consumer behaviour takes into account the exposure level that a consumer gets in relation to his decision of purchase. There are 4 fields which forms the basis of this model in such a way that one field is an input for next field and so on.
- First field: There are 2 sub-fields in first field of Nicosia model namely. Firm attributes and product attributes are components of first sub-field. Second sub-field includes consumer existing attitude towards the product and attributes revealed by organization whose products to be purchased.
- Second field: Refers to evaluation and research done by consumer.
- Third field: Relates to consumer purchase decision.
- Fourth field: Relates to behaviour after using the product, its uses, storage and consumption. It is concerned with the satisfaction or dissatisfaction level of customer after purchasing the product.
Feedback from fourth field is an input for first field which forces organization for changing the attributes of its product, thereby acts as an input for field 2.
Consumer Behaviour Models – Industrial Buying Model
Industrial Buying model of consumer behaviour is concerned with purchase making process of industrial set up. The industrial process of decision making involves several departments that relates to decision making either directly or indirectly. This models discusses the key characteristics related to industry purchase decisions.
In decision making process of industries, there are individuals of different backgrounds. Joint decision making is unavoidable here which results in opinions clashes in between the departments.
Individuals involved in decision making process are from distinct departments like Finance department, Research and development department, Quality control department, Technical support department and Manufacturing department. The committee formed for taking purchasing decisions include people of varying perceptions, using distinct sources for acquiring information, varying satisfactions coming from their past experience and search experience dependent on their varying skills.
Purchase decisions of an industrial setup are mainly influenced by two main factors: Product related factors or factors related to organization producing that product.
Consumer Behaviour Models – Engel-Blackwell-Kollat Model
Information Processing (IP), Central Control Unit (CCU), Process of Decision making and Environmental influences are the four main components that forms the basis of Engel-Blackwell-Kollat Model.
- Information Processing (IP): It depends on several forces acting as stimuli from both marketing and non-marketing point of view. Exposure, attention, comprehension and retention are 4 elements of Information Processing.
- Central Control Unit (CCU): It involves 4 psychological factors that are customer previous experience related to product, Customer product evaluation criteria, Customers varying mindsets and consumer personality on which he takes buying decision.
- The Decision Process: It involves identifying the problems, searching internal and external information, examining the available alternatives and finally buying product. This component considers the satisfaction and dissatisfaction level post of making purchases that influences decision making process of consumer in future.
- The Environmental influences: This component of Blackwell-Kollat model comprises of all such forces favoring or disfavoring the consumer buying decision. These Forces are income level and financial status of consumers, family influences and social class in society.