Consumer Modelling

By: Uma Hema Mrudula Kalyan Vidhut Ravi Patel Kumar Achyut

Model: It is very often referred to as an abstract representation of a process or relationship.

These models help us in the following way:• Development of theories• To understand complex relationships• To provide the framework for discussions &

research work

Types of Models

The economic modelLearning modelPsychoanalytic modelThe sociological modelThe Howard Sheth model of Buying behaviorThe Nicosia modelWebstar & wind modelThe Engel-Kollat-Blackwell modelEngel, Blackwell & Miniard modelThe sheth model of industrial buyingThe Black-Box model

The Howard Sheth Model

of Buying Behavior

The Howard-Sheth model of buying behaviour

attempts to explain the complexity of the

consumer decision making process in case of

incomplete information. This model suggests three levels of decision

Making• Extensive problem solving.• limited problem solving• Habitual response behaviour

Sets of Variables:• Inputs• Perceptual contracts & Learning constructs• Outputs• Exogenous (External) Variables

Nicosia Model

• It was developed in 1966 by Francesco Nicosia• It explains about the link between the

organization & its consumer• The field one has two sub areas- consumers

attribute & firms attribute.• The second area – is related to the search &

evaluation• The third area- explains how the consumer

actually buys the product• The area four- it is related to output to receive

feedback on sales.

The Black Box Model

It is a device, system or object which can be viewed solely in terms of its input, output and transfer characteristics without any knowledge of its internal workings, that is, its implementation is "opaque" (black). Almost anything might be referred to as a black box: a transistor, an algorithm, or the human mind.

Social responsibility

• Social responsibility is an ethical or ideological theory that business should not function amorally but instead should contribute to the welfare of their communities and an entity whether it is a government, corporation, organization or individual has a big responsibility to society at large.

• For each business, different measures are taken in consideration to classify a business as "socially responsible". Each business attempts to reach different goals. There are four areas that should be measured regardless of the outcome needed: Economic function, Quality of life, Social investment and Problem solving, that are trying to be achieved should be measured to see if it meets with the cost guidelines that the business is willing to contribute.

CORPORATE SOCIAL RESPONSIBILITY

• Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalization accelerates and large corporations serve as global providers, these corporations have progressively recognized the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe.

The key drivers for CSR are:• Enlightened self-interest.• Transparency & trust• Increased public expectations of business.

Social Influences on Consumer Behavior

• Information and Pressures from Individuals, groups, and the mass media that affect how a person behaves.

• Why are social influences important? • Source is creditable.• Source can communicate information widely.• Source uses communication frequently.• Source determines socially appropriate and

inappropriate behaviors

Sources of Influence on Consumer Behavior

• Marketer dominated sources: are influences

delivered from a marketing agent (advertising,

personal selling etc…).

• Non-marketer dominated sources: are influences

delivered from an entity outside a marketing

organization (friends, family, the media)