cb modelling) 4

8/3/2019 CB Modelling) 4

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Consumer Modeling


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Definition (Model):

A model is very often referred to as an abstract representation ofa process or relationship. We (human beings) hold variousmodels in our minds which allow us to make sense of the worldand also help to predict the likely course of events.

Simply stated models help us in the following way:

They help in the development of theories.

They help to understand complex relationships.

They help in understanding consumer behavior (decisionmaking).


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Different Models:

1) The Economic Model

2) The Learning Model

3) Psychoanalytical Model4) Sociological Model

5) The Howard & Sheth Model

6) EKB Model - Engel-Kollat-Blackwell


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It is one-dimensional (buying decisions of a person aregoverned by the concept of Utility).

Man is a rational human being.

Law of Equi-marginal Utility (Max. utility from limited purchasingpower)

This model is based on the following predictions:1) Price Effect:

2) Substitution Effect:

3) Income Effect:

The Economic Model

Contd


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ArgumentsArguments::

An incomplete model

Assuming that market is to be homogenous.

It ignores other aspects (perception, motivation, learning,attitude )

It treats man as a complex entity, a puzzle.


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Learning Model

Classical psychologists have been interested in the formation

and satisfaction of needs and tastes.Living beings were influenced by both inner needs & learned

need.

There are certain cognitive theorists, who have advocated

that human beings not only learn to link stimulus with response(S-R) but also results in the formation of other cognitiveprocesses such as, attitudes, values, beliefs, motivation etc.


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ContdContd

It help marketers to understand how consumers learn to

respond in new marketing situation, or how they havelearned & responded in new marketing situations, or how

they have learned & responded in similar situations.

Consumers learn to discriminate.

It will help marketers to promote associations of productswith strong drives & cues and +ve re-enforcement.


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Psychoanalytical Model

Developed by Sigmund Frued.

Human behavior is the outcome of:

a) Individual-the source of all psychic energy which drives us as action

b) Ego-the conscious directing individual impulses to find gratification in asociety accepted manner.

c) Super Ego-the internal representation of what is approved by the society

Human needs & motives operated at the conscious as well sub-conscious

levels.

Buyers will be influenced by symbolic factors in buying a product.

This is used by marketers to generate ideas for developing product-

design, features, advertising & other promotional techniques.


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The Sociological ModelIndividual buyer is a part of the institution called society.

He gets influenced by the society.

He is playing many roles as a part ofvarious formal & informal associations or

organisations (family member, as an employee of a firm etc), these roles influences

his buying b

eha

vior.

Thepeer group plays a very imp role in acting as an influencing factorespecially

adopting particularlife styles & buying behavior patterns.

-An informal opinion leader

-His views are respected by the group.

-He influences the members life style & buying decisions.

Income, occupation, place residenceetc each individual member is recognised as

belonging to a certain social class.

He may enjoy certain status & prestige.

Each class has its own standards oflife style & buying behavior pattern.


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The H

oward

& Sh

eth

Mod

el Developed by Jagdish N Sheth & J.A Howard

(1969)

This model basically servestwo purposes:

1) Itindicateshowcomplex the whole question

ofconsumer behavioris.

2) It

pro

vid

esth

eframe

work

for v

arious

concepts like learning, perception, attitudes

etc.


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The Howard & Sheth Model


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I) Inputs:are informationcues

1) Significative (comesfrom the product, while

shopping)

2) Symbolic (innature)

Both representsthe firms marketing efforts.

3) Social Informationcues (couldaffect buying

behavior)

II) Perceptual Constructs: (complex states/psychologicalprocesses)

* dependson receivedinformationcues


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Contd

III) Learning Constructs

*These are more complex & numerous

* Motives: are goals that the individual attempts to achieve through

buying behavior.

*These are derived from various drives (needs)

*Attitudes: more closely related to the buyers intention towardsthe product.

*Brand Comprehension: knowledge/awareness about the brand and

features (these forms alternatives, choice of criteria, confidence)

*Satisfaction (r

efe

rs to fee

dbackm

ec

hanism i

epost purc

has

e& postuseevaluation of the product)

IV) Exogenous Variables: indirectly influences the output or consumer

response (social & org setting, social class, culture & purchasing

power/financial status)


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Consumer behavior as a decisionmaking process in the form of five

activities (steps). Other variable are:

Information input

Information processing

General motivating influences/Dependentvariables

External factors

Purchase decision

Engel-Kollat-Blackwell (EKB) Model


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Inputs Info Processing Dec. Process D. P. VariablesExternal

Factors

StimuliofM

arketersandO

thers

Exposure

Attention

Yielding/

Acceptance

Retention

Comprehension

ME

MO

RY

Problem

Recognition

Search

Alt. Eval.

Choice.

Outcomes

Satisf/Diss

Beliefs

Attitudes

Intentions

Evaluative

Criteria

Lifestyle

Cultural

Norms

Group

Influence

Family

Influence

Unexpected

Circum-

stances

Engel-Kollat-Blackwell (EKB) Model

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