MKT 223- CONSUMER BEHAVIOUR
Chapter 2-Consumer Behaviour Models
CONTENTSMODEL OF BUYING BEHAVIOURCONSUMER BUYING SITUATION
BUYER ROLESBEHAVIOURIST AND COGNITIVIST
THEORIES OF CONSUMER BEHAVIOUR
Consumer Buying Behavior
Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.
All these consumers make up the consumer market.
The central question for marketers is: “How do consumers respond to various
marketing efforts the company might use?”
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
Types of Buying Decision Behavior –Lawson’s model (Fig.2.1)
ComplexBuying
Behavior
Variety-SeekingBehavior
Dissonance-Reducing Buying
Behavior
HabitualBuying
Behavior
Model of Buyer Behavior (Fig. 2.2)- Lawson’s model
Marketing and Other Stimuli
MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural
Buyer’s Black Box
Buyer CharacteristicsBuyer Decision Process
Buyer Responses
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Amount
Factors Influencing Consumer Behavior-Lawson’s model (Fig.2.3)
Social
Referencegroups
Family
Rolesand
status
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
BuyerBuyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
SOURCES OF EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR-Wilkie (1990)
SCOPE STRENGTH IMMEDIACY
CULTURE general High Long-term
SUBCULTURE general High Long-term
FAMILY specific High Long-term
FRIENDS specific High/low Long term/short term
MKT STIMULI specific low Long term/short term
SCOPE – the sweep or reach of the impactSTRENGTH- the power to impact behaviourIMMEDIACY – direct or focused influence on behaviour; the impactis felt with no or little influence coming into play.
Buyer Decision Process (Fig. 2.4)-Lawson’s model
PostpurchaseBehavior
Purchase
Decision
Information
SearchNeed
Recognition
Evaluationof
Alternatives
BUYER ROLESINITIATOR First individual who suggests product/service should be
evaluated/purchased.INFLUENCER Provides view and advice which are valued by others and
can subsequently influence the final decision.DECIDER The individual who will take the decision in the buying
process at what, how , when and where to buy (store choice), etc.
BUYER The individual who actually makes the purchaseUSER The individual who consumes or users the service/product.
FACTORS INFLUENCING SHOPPERS’ STORE CHOICEKelly and Stephenson ( 1967) identified 8 factors ;1. General store characteristics-reputation, no of
stores2. Physical characteristics – décor,cleanliness,
checkout services.3. Convenience –time, parking etc.4. Products – variety, dependability, quality.5. Prices charged – value special sales.6. Personnel – courteous, helpful, friendly.7. Advertising –informative, aggressive, believable.8. Friends’ perception of the store- well known, liked,
reccommended.
TYPES OF PURCHASING RISKS-Consumer Product Lines
1.ROUTINE BUYING2. LIMITED PROBLEM
SOLVING3. EXTENSIVE PROBLEM
SOLVING.
New Task BuyingNew Task Buying
Involv
ed D
eci
sion
M
aki
ng Modified RebuyModified Rebuy
Major Types of Buying Situations-Business products
Straight RebuyStraight Rebuy
ASSUMPTION ON CONSUMER BEHAVIOUR-Behavioural versus Cognitivists view
BEHAVIOURIST
COGNITIVIST
BEHAVIOURIST VERSUS COGNITIVIST APPROACHES
BEHAVIOURIST Observed behaviour is all
important People are info
transmitters People are all alike Behaviour is rational Human characteristics can
be studied independently. Emphasis is on what a
person is and does. Behaviour can be
understood
COGNITIVIST What goes on in a person’s
mind is the key to comprehension.
Behaviour is not predictable People are info generators Each person is unique Behaviour is irrational People must be studied as
a whole Emphasis is on what a person
can be. Behaviour can never be
completely understood.
THEORIES OF CONSUMER BEHAVIOUR
The Engel-Kollat-Blackwell (EKB) model.
Howard & Sheth model Maslow’s Hierarchy model
The Engel-Kollat-Blackwell (EKB) model.
First developed in 1968. A key feature of the EKB model is the
differences between high and low involvement as part of the buying process.
High involvement is present in the high risk purchase
Low involvement is present in the low risk purchase.
Models of Consumer Behaviour The Engel-Kollat-Blackwell (EKB) model
Consumers are seen as active agents following rules of behaviour, fairly easy to follow and implement because they require only a limited amount of information and capability of elaboration
For instance, a consumer, being aware of a certain need and believing a certain good category satisfies it, might fix a maximum price he/she can afford and search for the best good available under such a constraint.
Howard & Sheth model The model claims that a person’s purchase decision
is often influenced by more than one individuals. A family buying decision involves multiple
influences from its members. This theory shows the concept of role structure,
that is individuals members of the family takes on roles such as collecting information, deciding on the information budget, etc.
The theory also states that retailers /businesses are not only dealing with a homogeneous unit but a collection of individuals with different goals, needs, motives and interests.
Models of Consumer BehaviourHoward & Sheth model
Acoording to the model, the 'inputs' (stimuli) that the consumer receives from his or her environment are:
1. significative - the 'real' (physical) aspects of the product or service (which the co make use of)
2. symbolic - the ideas or images attached by the supplier (for example by advertising)
3. social - the ideas or images attached to the product or service by 'society' (for example, by reference groups)
The 'outputs' are what happens, the consumer's actions, as observable results of the input stimuli.
Between the inputs and outputs are the 'constructs', the processes which the consumer goes through to decide upon his or her actions. Howard and Sheth group these into two areas:
1. perceptual - those concerned with obtaining and handling information about the product or service
2. learning - the processes of learning that lead to the decision itself
Models of Consumer Behaviour-Howard & Sheth model
MASLOW’S HIERARCHY MODEL Theory of motivation developed by
Abraham Maslow(1943) Illlustrated into low needs to high needs. Comprises of physiological, safety,
belongingness, esteem and self actualization.
Can be applied by retailers to understand a targeted segment’s needs and wants and offer the right product at the right price, promotion and place.
Physiological Needs(hunger, thirst)
Safety Needs(security, protection)
Social Needs (sense of belonging,
love)
Esteem Needs (self-esteem)
Self Actualization
(Self-development)
Maslow’s Hierarchy of Needs (Fig. 2.5)
Awareness: Consumer is aware of
product, but lacks information.
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks Information about new product.
Interest: Consumer seeks Information about new product.
Evaluation: Consumer considerstrying new product.
Evaluation: Consumer considerstrying new product.
Trial: Consumer tries new product on a small scale.
Adoption: Consumer decides to make regular use of product.
Stages in the Adoption Process
Adopter Categories (Fig. 5.7)
Perc
en
tag
e o
f A
dop
ters
Time of AdoptionEarly Late
Inn
ovato
rs
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
DivisibilityCan the innovation
be used on a trial basis?
DivisibilityCan the innovation
be used on a trial basis?
ComplexityIs the innovation
difficult tounderstand or use?
ComplexityIs the innovation
difficult tounderstand or use?
Communicability Can results be easily
observed or described to others?
Communicability Can results be easily
observed or described to others?
CompatibilityDoes the innovation
fit the values and experience of the
target market?
CompatibilityDoes the innovation
fit the values and experience of the
target market?
Relative AdvantageIs the innovation
superior to existing products?
Relative AdvantageIs the innovation
superior to existing products?
Influence of Product Characteristics on Rate of Adoption
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