Unit II : Consumer Models

Economic model,
Psychoanalytic model,
Sociological model,
Howard & Seth model,
Nicosia model,
Engel-Kollat-Blackwell model.

Economic model
Synthesized by Alfred Marshall based on the
theory of Marginal Utility & Micro- Economic
Theory
The focus is on the Act of Purchase of an
Average Consumer
It explain WHAT a consumer would purchase
and In WHAT Quantity

Contd

It is assumed that with the 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 maximize utility.
Economic Model is based on certain assumptions of
buying behavior
Price Effect (lesser the price of the product more
the quantity purchased)
Substitution Effect (lesser the price of the
substitute more the quantity purchased)
Income Effect(more the purchasing power more
the quantity purchased)

Criticism of Economic Model

The major criticism to economic model comes from
the premise Consumers allocate their resources to
maximize satisfaction
Further , Economic Model ignores the Effect of
Perception
Attitude
Motivation
Personality
Learning process
Social Class
Culture

Psychoanalytic model
Psychoanalytic Model is attributed to the work of eminent
psychologist Sigmund Freud.
Human mind is composed of three elements
Preconscious element
Conscious element
Unconscious element
Personality consists of three structures within the human
mind.
These structures through interrelated are often conflicting
Id
Ego
Super Ego

Psychoanalytic model

Contd..
Id
Original and the most basic system of human
personality
Leads to strong drives and urges
Instinctive, pleasure seeking element
Represents storehouse of all instincts
Id is largely childish, irrational, never satisfied ,
demanding

Contd..
Super Ego
Noblest thoughts ,ideas,feelings that are
acquired by a person from his parents, teachers,
friends,religion and organization.
Primary concern of super ego is to determine
whether action proposed by ego is right or
wrong.
EGO
Maintains a balance between id and the super
ego

Criticism
All the behavior cannot be attributed to
satisfaction of Id.
This model views consumers as individuals with
the minimal influence of the family, society,
reference groups, or other social group influences.
Values of individual are liable to change over a
period of time through changes created in
perception, learning, attitude building which this
model ignores.

Sociological Model
This model the individual buyer is a part of the
institution called society.
He is playing many roles as a part of various
formal and informal associations. Such
interactions leave some impressions on him and
play a role in influencing his buying behavior.

Criticism
The marketers through a process of market
segmentation can work out on the common
behavior patterns of a specific class and group of
buyers and try to influence their buying pattern.

Howard Seth Model

The model attempts to depict rational brand choice behavior by
buyers under conditions of incomplete information and limited
abilities. It distinguishes three levels of decision making:
1) Extensive problems solving early stages of decision making in
which the buyer has little information about brands and has not yet
developed well defined and structured criteria by which to choose
among products (choice criteria).
2) Limited problems solving in this more advanced stage choice
criteria are well defined but the buyer is still undecided about which
set of brands will best serve him. Thus, the consumer still
experiences uncertainty about which brand is best.
3) Routinized responses behavior buyers have well defined choice
criteria and also have strong predispositions toward the brand. Little
confusion exists in the consumers mind and he is ready to purchase
a particular brand with little evaluation of alternatives

Howard Seth Model

Howard Seth gave the model of buyer behavior
which has four sets known as constructs or
variables.
These are
Inputs
Perceptual & Learning constructs
Output
Exogenous variables

Howard-Sheth Model of Buying Behavior

Criticism
The Howard Sheth has only been partially
tested. It does not explain the non- systematic
behavior. The Howard Sheth does recognizes the
exogenous factors but explains little on the
same.

Nicosia Model
This Model concerns with the Inter-relationship
between:
The firms marketing communications
The attributes of the consumer,
The consumers decision process including
Search and evaluation process
Actual decision process
The feedback of the consumers response to the
firm.

Nicosia Model

Arguments Against Nicosia Model

Incomplete in a number of aspects, including the
influences and inter-relationships among the
consumer attributes .
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?

Engel-Kollat-Blackwell Model

The EKB model is comprehensive and shows the

components of decision making and the
relationships and interactions among them.
The five distinct parts of consumer decision
making presented are:
Input, information processing, a decision process,
decision process variables, and external influences

Engel-Kollat-Blackwell Model

Input
Input includes all kinds of stimuli from our
contact with the world around us:
Our experiences, contact with others
Marketer-controlled stimuli (e.g., advertising,
store display, demonstrations)
Other stimuli (e.g., personal recollections,
conversations with friends)
External search

Information Processing
Stimuli are processed into meaningful
information
Five methods of information processing:

Exposure
Attention
Comprehension
Yielding
Retention

Decision Process
It is triggered at any time during information
processing
It consists of five steps:

Problem recognition
Search
Alternative evaluation
Choice
Outcomes (post-purchase evaluation and behavior)

Decision Process Variables

Those individual qualities that make people/consumers
unique.
Decision process variables include

Motives
Beliefs
Attitudes
Lifestyles
Intentions
Evaluative criteria
Normative compliance and informational influence
Other aspects of self

External Influences
Such influences are called Circles of Social
Influence. They are: culture, sub-culture (coculture), social class, reference groups, and
family or household influences

Limitation
This model is the inclusion of environmental
variables and general motivating influences but
not specifying the effect of these on the buyer
behavior.