Buyer behaviour models (1)

Buyer Behaviour Models

The Economic Model

According to the economic model of buyer behaviour, the buyer is a rational man and his buying decisions are governed by the concept of utility.If he has a certain amount of purchasing power, a set of needs to be met, and a set of products to choose from, he will allocate this amount over the set of products in a very rational manner with the intention of maximising the utility / benefit / need satisfaction.

The Learning ModelAccording to the learning model, which takes its cue from the Pavlovian stimulus-response theory on learning-buyer behaviour can be influenced by manipulating the drives, stimuli and responses of the buyer.The model rests on the human ability of learning, forgetting, and discriminating.

The Psychoanalytical ModelThe psychoanalytical model draws mainly from Freudian psychology. According to this model, a consumer has a complex set of deep-seated motives that drive him towards certain behaviour. The buyer has a private world with all his hidden fears, suppressed desires and totally subjective longings. Appealing to these desires and longings can influence his buying action.

The Sociological ModelAccording to the sociological model, the individual buyer is influenced in his buying behaviour by society – by intimate groups as well as social classes.His buying decisions are not totally governed by utility; he has a desire to emulate, follow, and fit in with his environment. And, several of his buying decisions may be governed by the compulsions arising out of his being a social creature.

The Systems ModelThere have also been some efforts to build some models on buyer behaviour using totally the standpoint of the marketing man. They belong to a category called the systems model, where the human being is analysed as a system, with stimuli as the input to the system and behaviour as the output of the system.Two important models in this category are:1.The Nicosia Model2.The Howerd and Sheth Model

The Nicosia ModelThe model tries to establish the links between a firm and its consumer – how the activities of the firm influence the consumer and result in his decision to buy.The messages from the firm first influences the predisposition of the consumer towards the product. Depending on the situation, he develops a certain attitude towards the product.

The Nicosia Model …Contd.

It may lead to a search for the product or an evaluation of the product. If these steps have a positive impact on him, it may result in a decision to buy. This is the sum and substance of the ‘activity explanations’ in the Nicosia model. The model groups these activities into four basic fields as shown in next two slides:


o Field One with two sub-fields – the firm’s attributes and the consumer’s attributes. An advertising message from the firm reaches the consumer’s attributes. Depending on the way the message is received by the consumer, he develops a certain attitude and this becomes the input for Field Two.


o Field Two is the area of search and evaluation of the advertised product and other alternatives. If this process results in a motivation to buy, it becomes the input for Field Three.

o Field Three consists of the act of purchase.o And Field Four consists of the use of the

purchased item. There is an output from Field Four – feedback of sales results of the firm.

The Howard-Sheth ModelThe logic of the model runs like this

- There are inputs in the form of stimuli- There are outputs beginning with attention

to a given stimulus and ending with purchase

- In between the inputs and the outputs, there are variables affecting the consumers’ perception and learning. These variables are considered ‘hypothetical’ since they cannot be directly measured at the time of occurrence.

The Howard-Sheth Model …Contd.

Model explains buyer decision process using four major sets of variables, as applicable to individual consumer:

1. Inputs2. Perceptual and learning constructs3. Outputs4. Exogenous or external variables

The Howard-Sheth Model

Solid lines show flow of info.-Dashed lines indicate feedback effects

Purchase

Intention

Attitude

Brand Comprehension

Attention

Intention

Brand Comprehension

Satisfaction

Choice criteria

OutputsLearning Constructs

Perceptual bias Attention

Attitude

Motives

Confidence

Stimulus Ambiguity

Overt Search

Perceptual ConstructsInputs

Stimulus Display Significativea)Qualityb)Pricec)Distinctivenessd)Servicee)Availability

Symbolica)Qualityb)Pricec)Distinctivenessd)Servicee)Availability

Sociala)Familyb)Reference Groupsc)Social Class


Inputs – by three distinct types of stimuliSignificative Stimuli – In the form of physical, tangible product characteristic.Example – Briefcase – Physical appearance, sturdiness, finish, spaciousness, actual price.Symbolic Stimuli – In the form of intangible, perceptual product characteristics.Example – Briefcase – overall quality perceived by purchaser perception – price is reasonable / high / good bargainSocial class – provides third type of stimuli


Perceptual and Learning ConstructsTwo factors that may influence consumer’s interpretation1.Stimulus Ambiguity2.Perceptual BiasStimulus Ambiguity – Occurs when the consumer is not sure about the meaning of the stimulus received.Perceptual Bias – Occurs when he distorts the information he receives to fit his established needs or experiences.


Brand Comprehension – The manner in which the consumer interprets the stimuli leads him to the stage of brand comprehension.

- It refers to consumer’s understanding and overall rating of the brand.

- If the consumer rates it high, it results in confidence and eventually purchase decision.


Output – Purchase Decision is the OutputAfter product usage – if consumer is satisfied:

- It will reinforce his positive attitude and purchase intention about the product and brand.

- Positive attitude makes the consumer more attentive to the product’s / brand’s stimuli and further increases his brand comprehension.


If the Consumer is Dis-satisfiedIt will trigger off reaction of negative attitude, low attention to the product stimuli, poor brand comprehension and negative intention to purchase


Exogenous or External VariablesThese are not directly a part of decision making process.They are important as they influence the consumer.They vary from one consumer to another and include:o Consumer personality traitso Social classo Importance of the purchaseo Financial status etc.

Engel-Blackwell-Kollat Model of Buyer Behaviour

The Engel-Kollat-Blackwell Model consists of four components

1. Information processing2. Central control unit3. Decision process4. Environmental influences

Engel-Blackwell-Kollat Model of Buyer Behaviour

Solid lines show flow of info.-Dashed lines indicate feedback effects

IncomeCultureFamily

Social ClassPhysical

Other

Output Decision Process

Info. and experience

Comprehension

Further behaviour

Environment Influences

Central Control Unit

Post purchase evaluation

Retention Attitude

FILTER

Attention

Exposure

Information Processing

Stimuli

Ext. Search

Evaluative criteria

Problem recognition

Int. search & alternative evaluationInfo.

feedback

Pers

onal

ity

Ext. search & alternative evaluation

Purchasing process

Outcomes

HOLD

HOLD

HOLD

Engel-Blackwell-Kollat Model of Buyer Behaviour …Contd.

Information ProcessingThis component comprises of consumer’so Selective exposureo Attentiono Comprehension ando Retention of stimuli

Relating to a product / brand received from marketing / non-marketing sources.


As a MKTR.The first step is to ensure that:o A consumer is exposed to your message

(stimuli)o Pays attention to it.o Understands what it is all about and

remember it.


Central Control UnitThe stimuli received and retained is processed in Central Control Unit stimuli is processed and interpreted with the help of four psychological filters:

1. Stored information and past experience about the product / brand which serves as a memory for comparing different alternatives.


Central Control Unit …Contd.

2. Evaluating criteria which the consumer uses in judging the alternatives.

3. General and specific attitudes which influence the purchase decision.

4. Basic personality traits which influence how the consumer is likely to respond to various alternatives.


Decision ProcessThe decision process component of the model consists of:

a. Problem recognitionb. Internal search and evaluationc. External search and evaluationd. Purchase processese. Decision outcomes


Decision Process …Contd.

If the purchase decision is such that it requires EPS, the consumer would go through all the 5 stages.In case of L.P.S. or R.R.B, some of the intervening stages may be skipped and the consumer may directly reach the purchase decision.


Environmental InfluencesThe factors that may influence the consumer’s purchase decision are:

- Income- Culture- Family- Social class and- Physical situations


Environmental Influences …Contd.

Depending on the specific product under consideration, these factors may have a favourable / un-favourable influence on the purchase decision.

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Buyer behaviour models (1)