Consumer Behaviour

Consumer behaviour models

Janice Denegri Knott

Room: W435
Lecture 2 Email: jdknott@bournemouth.ac.uk
A model a is simplified
version of reality, it has
never been reality, it
isn’t reality and it will
never be reality...
… therefore all models
are subject to criticism
(oh and if we are a bit postmodern, we could ask, what is reality)
Objectives
At the end of this session, you should be able to:

Understand the concept of modelling within consumer behaviour

studies;
Evaluate the applicability of traditional models of consumer behaviour;

Evaluate the applicability of contemporary models of consumer

behaviour.

Understand the main components of the assignment

1. The models hall of fame

• Maslow’s Hierarchy of Needs;

• Hierarchy of Effects
• Elaboration Likelihood model
• Howard-Sheth model
• Engel, Kollat and Blackwell model
• Nicosia Model
• Decision-making models
• Problem identification models
• Fishbein and Ajzen’s Behavioural Intention model
• Fritz Heider Balance Theory
• E.Roger’s adoption and diffusion of innovations
• Image congruency theory
• Information processing
2. Models and theory

• Theory: an interrelated set of concepts, definitions and

positions that presents a systematic view of
phenomenon (Loudon and Della Bitta, 1993)

Theory has 4 functions, to:

1. Describe 2. Explain 3. Predict 4. Control

Are all these functions realistic?

3. Types of models

Algebraic models:Fishbein’s Attitude Model

Ao= ∑=biei
i=1

Ao = the person’s overall attitude towards the object

bi= the strength of his belief that the object is related
to attribute I (e.g. ASDA is good value for money)
ei= his evaluation or intensity of feelings (liking or
disliking) toward attribute i
n= the number of relevant beliefs for that person
3. Types of models

Conceptual models: Hierarchy of needs, (Maslow)

3. Types of models

Personal variable models: a take on Ajzen’s Theory of

Planned Behaviour (1991)
3. Types of models

Comprehensive Models: Howard-Sheth Model

3. Types of models

Black Box Models

4. Consumer behaviour models: A brief history
4.1. Traditional Models of consumers

Early models derive from economics and were interested in

studying how scarce resources are allocated to quench
and unlimited amount of wants and needs (Loudon and
Della Bitta, 1993)

• Macroeconomics

• Microeconomics
4. Traditional models of consumer behaviour

Focus: Aggregate flows in the economy

c s
i
om
o n
e c Focus: The act of purchasing
ro
ac 1. Microeconomics
M
4.1. Microeconomics (from Loudon and Della Bitta, 1993)

• Concentrates on the act of purchasing

• Interested in knowing what consumers were purchasing,

ignoring the why and how underpinning their behaviour

• Assumptions made:
– Consumers wants and needs are unlimited and unquenchable
– Consumers allocate their resources to maximise levels of
satisfaction (MU1/P1 =MU2/P2 =… MUn/Pn)
– Consumers have perfect knowledge
– The additional satisfaction of a unit that is bought after the first
purchase will be less than the first purchase’s marginal
satisfaction
– Price is key
What are the limitations of this approach?
– Consumers rational
4.2. Macroeconomics (from Loudon and Della Bitta, 1993)

• Looks at the overall economy; the value of goods; from

these conclusions are drawn about consumers’ behaviour
influencing these flows

• Relative income hypothesis: how much is spent it not solely

determined by income but is influenced by peers

• Permanent income hypotheses: consumers determine how

much to spend based on a perceived average of what can
be consumed and not only on income

• Consumers’ behaviour is not taken into account

What are the limitations of this approach?

4.2.1. Behavioural economics (from Loudon and Della Bitta, 1993)

• George Katona introduces the need to look at psychological

influences guiding consumer’s behaviour: behavioural economics

• Consumers will purchase products when they have confidence in

the economy (consumer sentiment)

The Katona Model (source: Loudon and Bella Ditta, 1993)

Actual
Psychological Consumer Economic
economic
process sentiment behaviour
conditions

Could this model help an organisation in

any of its activities?
4.3. Limitations

Is this you? Do
you know
anybody who
thinks like this?
5. Contemporary Models

5.1. Nicosia Model 5.2. Howard-Sheth 5.3. Engel-Blackwell-

Model Kollat
 5.1. Nicosia Model (1966)
Field Two: Search for and
Field One: From the source of a message
evaluation of means-end(s)
to the consumer’s attitude
relation(s) (Pre-Action Field)

Sub-field
Sub-fieldtwo:
two:
Sub-field
Sub-fieldone:
one: MESSAGE Consumer’s
Firm’s attributes Consumer’s
Firm’s attributes EXPOSURE
attributes ATTITUDE
attributes
(pre-dispositions)
(pre-dispositions)

Search
Search
Evaluation
Evaluation
EXPERIENCE

MOTIVATION
FEEDBACK
Consumption
Consumption

Field Four:
Decision
Decision
The feedback

PURCHASING
BEHAVIOUR Field Three: The act of purchase
Could this model help an organisation in
any of its activities?
5.1.1. Limitations

• Incomplete in a number of aspects, very reductionist

• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)

• A number of assumptions have been made that question the

validity of this model, for instance:
– What type of consumer are we talking about?
– The company and the consumer have an existing relationship? What
type?
– Is this for a new product? Is this the first exchange the consumer has
had with the producer?
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific
Do you agree with these? Can you t think
of any other limitations?
5.2. Howard-Sheth Model (1969)
Exogenous
Perceptual Variables
Constructs
Outcome

Learning Constructs

Could this model help an organisation in

any of its activities?
5.2.1. Limitations

• Too many variables, a complex model that can be difficult to read

• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)

• A number of assumptions have been made that question the

validity of this model, for instance:
– Sharp distinctions between exogenous and other variables have not
been made
– The model cannot be generalised, it cannot be applied to co-joint
decision making for example
– Can this model be applied for non-branded products (Rau and
Samiee, 1981)?
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific Do you agree with these? Can you t think
of any other limitations?
5.3. Engel, Blackwell and Miniard (1990)

Could this model help an organisation in

any of its activities?
5.3.1. Limitations

• Too many variables, a complex model that can be difficult to read

• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)

• The model is vague (Loudon and Della Bitta, 1993)

– Key variables are vaguely defined
• How do environmental variables affect consumers’ behaviour?
• How do motives influence consumers’ behaviour?
– It is a mechanical overview of human behaviour
– Can this model be applied for non-branded products? Goods?
Services? (Rau and Samiee, 1981)
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific
Do you agree with these? Can you t think
of any other limitations?
6. Conclusions

• A model presents phenomena in such a way that it can

be easily communicated

• Models are just representative of reality, they are not

reality

• There are different types of models (black box,

conceptual, algebraic, personal variable and
comprehensive models)

• The Nicosia, Howard-Sheth and the Engel, Kollat and

Blackwell model have all been criticised on the grounds
that they are pre-scientific
6. Conclusions

• Models operate on the assumption that all human

behaviour is rational

• All models are mechanistic

• No model provides genuine insight of what underpins

consumer behaviour, is this possible?
 Assessment

• The proposal (200 words worth 10% of your

final grade)
– SUBMISSION DATE: MONDAY, 20TH NOVEMBER

• A report (2070-2530 words worth 40% of your

final grade)
– SUBMISSION DATE: MONDAY, 15TH JANUARY

• End of year examination, worth 50% of your

final grade
Assignment’s main components

• Select a company or not-for-profit

organisation that you are familiar
with;
• Evaluate how a specific consumer
behaviour theory or model can aid
in understanding consumers’
behaviour and guide
marketing/advertising practice.
 Assignment guidelines

• Consider the options offered in page

10 of your unit guide;
– Go over guidelines offered and the assessment criteria

• Read lecture notes and accompanying

reading in order to select theory or
model;
• Select an organisation that would
benefit from your analysis
– Conduct an environmental scanning to construct a
justification for why there would be a need for your
evaluation