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Thursday, August 15, 2024

Models of consumer Behaviour

Models of Consumer Behavior

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#### **1. Introduction to Consumer Behavior Models**

- **Definition of Consumer Behavior:**
  - Consumer behavior refers to the study of how individuals or groups make decisions to purchase, use, and dispose of products or services.
  - Understanding consumer behavior helps marketers predict how consumers will react to marketing strategies and product offerings.

- **Purpose of Consumer Behavior Models:**
  - These models provide a structured way to analyze the factors that influence consumer decisions.
  - They help marketers understand the processes that consumers go through before making a purchase, allowing for the development of more effective marketing strategies.

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#### **2. E.K.B. Model (Engel, Kollat, and Blackwell Model)**

- **Overview:**
  - The E.K.B. Model is one of the most comprehensive frameworks for understanding consumer decision-making.
  - It was developed by Engel, Kollat, and Blackwell and focuses on the entire decision-making process, from problem recognition to post-purchase evaluation.

- **Key Components:**
  1. **Problem Recognition:**
     - The consumer identifies a need or problem that requires a solution.
     - Example: Realizing that a current phone is outdated and needs replacement.

  2. **Information Search:**
     - The consumer seeks information about the products or services that can solve their problem.
     - This can involve both internal (recalling past experiences) and external (seeking advice, reading reviews) searches.
     - Example: Researching the latest smartphone models online.

  3. **Evaluation of Alternatives:**
     - The consumer compares different products or services based on attributes such as price, quality, and features.
     - Example: Comparing different smartphone brands and models.

  4. **Purchase Decision:**
     - The consumer decides on the product to purchase based on the evaluation.
     - This stage may also be influenced by factors like availability, promotions, and perceived value.
     - Example: Choosing to buy a specific smartphone model.

  5. **Post-Purchase Behavior:**
     - After the purchase, the consumer evaluates their satisfaction with the product.
     - This can lead to repeat purchases or brand loyalty if the consumer is satisfied, or buyer’s remorse and negative word-of-mouth if they are not.
     - Example: Feeling satisfied with the new smartphone and recommending it to friends.

- **Importance:**
  - The E.K.B. Model is particularly useful for understanding complex, high-involvement purchase decisions that require careful thought and consideration.

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#### **3. Howard-Sheth Model**

- **Overview:**
  - The Howard-Sheth Model, developed by John Howard and Jagdish Sheth, is a sophisticated model that explains consumer decision-making, particularly for complex purchases.
  - It emphasizes the psychological and sociological factors that influence consumer behavior.

- **Key Components:**
  1. **Input Variables:**
     - **Stimulus Inputs:**
       - Marketing stimuli (e.g., advertisements, promotions) and environmental stimuli (e.g., social, cultural influences) that affect the consumer.
       - Example: A television ad for a new car model.
     - **Significant Inputs:**
       - Features of the product that are important to the consumer, such as price, quality, and brand reputation.
       - Example: The price and brand reputation of the car.

  2. **Perceptual and Learning Constructs:**
     - **Perceptual Constructs:**
       - How the consumer processes information and interprets the stimuli.
       - Example: Perceiving the car brand as prestigious.
     - **Learning Constructs:**
       - The consumer's previous experiences and knowledge, which influence their decision-making.
       - Example: A positive past experience with the same car brand.

  3. **Output Variables:**
     - **Attention:**
       - The degree to which the consumer notices and considers the product.
     - **Comprehension:**
       - The understanding of the product's features and benefits.
     - **Attitude:**
       - The consumer's overall evaluation of the product.
     - **Intention:**
       - The likelihood of the consumer deciding to purchase the product.
     - **Purchase Behavior:**
       - The actual buying decision.

- **Importance:**
  - The Howard-Sheth Model is valuable for understanding the complexity of consumer behavior, especially in high-involvement purchases where multiple factors and stimuli play a significant role.

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#### **4. Nicosia Model**

- **Overview:**
  - The Nicosia Model, developed by Francesco Nicosia, focuses on the relationship between the firm and the consumer, particularly how a firm's communication (like advertising) influences consumer attitudes and behavior.
  - The model is divided into four main fields that represent different stages of consumer decision-making.

- **Key Components:**
  1. **Field 1: The Consumer’s Attitude Based on Firm’s Message:**
     - The consumer is exposed to the firm's marketing communication.
     - This communication influences the consumer's attitudes, which are shaped by their background, experiences, and psychological factors.
     - Example: A consumer forms a positive attitude towards a brand after seeing a persuasive ad.

  2. **Field 2: Search and Evaluation:**
     - The consumer actively searches for information and evaluates alternatives based on the firm’s message.
     - The consumer's search is influenced by their prior attitude formed in Field 1.
     - Example: A consumer looks for more information about the product advertised and compares it with competitors.

  3. **Field 3: The Act of Purchase:**
     - Based on the evaluation, the consumer decides to make a purchase.
     - This decision is also influenced by the firm’s ongoing communication and promotional efforts.
     - Example: A consumer decides to buy the product after evaluating it favorably.

  4. **Field 4: Feedback Loop:**
     - Post-purchase, the consumer experiences the product, which then influences their future attitudes and behaviors.
     - The firm receives feedback from the consumer’s experience, which can influence future marketing strategies.
     - Example: If satisfied, the consumer may develop loyalty to the brand, and the firm can use this feedback to improve its marketing.

- **Importance:**
  - The Nicosia Model emphasizes the dynamic relationship between the firm and the consumer, highlighting how marketing communication can shape consumer behavior over time.

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#### **5. Conclusion**

- **Application of Models:**
  - Each model offers unique insights into different aspects of consumer behavior, from decision-making processes to the influence of marketing communication.
  - Marketers can use these models to design more effective strategies that cater to the needs and behaviors of their target consumers.

- **Comparative Insights:**
  - The **E.K.B. Model** provides a broad, step-by-step framework for understanding consumer decisions.
  - The **Howard-Sheth Model** offers a more complex view that incorporates psychological and sociological factors.
  - The **Nicosia Model** focuses on the interaction between the firm’s communication and consumer behavior, emphasizing the feedback loop.

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