MASTER OF BUSINESS ADMINISTRATION

ASSIGNMENT ON CONSUMER BEHAVIOUR

TOPIC: MODELS OF CONSUMER BEHAVIOUR

Submitted to: Submitted by:

Dr.Ajay Kumar Rathore MBA 3rd Semester
Ambika Gupta
Enrollment No: 06417003909

SESSION: 2010 - 2011

TECNIA INSTITUTE OF ADVANCED

STUDIES
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Models of Consumer Behaviour
Understanding the buying behaviour of the target market is the essential task of
marketing managers under marketing concept. But the study of consumer behaviour is
the most dynamic of all the marketing activities as the consumers preferences rapidly
change and are rapidly affected by multiciplicity of factors given at a given point of time
which are difficult to analyse.Therefore it is necessary to continuously study, anlayse and
understand it and monitor this understanding to the marketing management so that
effective decisions can be taken in respect of product’s price, promotion and distribution.
A marketer who understands how consumer will respond to different product features,
prices, advertising appeal and so on will have an enormous advantage over its
competitors.
When a buyer take a decision to buy there is no rigid rule to bind him. Sometimes the
decision is taken on the spot or after evaluating various alternatives available and
reassurance himself with the opinion of those who have already purchased the product.
The buyer is also influenced by the social environment in which he lives-his family,
society, neighbours, friends and colleagues. Every component of his social environment
leaves an imprint on him and influences his buying behaviour.
It is amply clear from the above that the buyer behaviour is complex subject. Over the
years several models have been put forward with the intention of explaining buying
behaviour.All the social sciences like economics, psychology, sociology and
anthropology have influenced the buyer behaviour studies. In order to have an idea of the
nature of this influence some of the consumer behaviour models are discussed as follows
—
The Economic Theory: The economic theory of consumer behaviour was synthesized
by Alfred Marshall form the ideas of classical economists and the proponents of Theory
of marginal utility. This theory is based on the assumption that an individual is a rational
buyer and has perfect information about the market, fully aware of his desires and needs
and able to determine the best way to satisfy them.
• As per this model consumers follow the principle of maximum utility based on
the law of diminishing marginal utility.
• Consumers want to spend the minimum amount to maximize the gains.
• Economic model is based on: Price effect, Substitution effect, Income effect

Psycho-Analytical Model: This model, the brain child Sigmund Freud has added new
dimension to the theory of consumer behaviour by introducing Psychological elements of
the consumer into their decision making. It offers most superior and innovative
implications to the marketer for designing a product-message that suits the psychological
needs of the consumer.
This theory helps the marketers to understand individual’s real motive for purchasing a
product or brand. It has caused marketers to realize that they must provide consumers
socially acceptable rationalization for their purchase.

Sociological: Individual are member of various social groups and they tend under normal
circumstances to conform, largely unreturned powerful behavioral level or norms of these
social groups. As per this model, consumer being member of many groups in the society,
his buying behavior is influenced by these social groups.
Pavlovian model: It is based on the learning process that consists of the following
factors:
 Drive: It refers to strong internal stimuli that impel action. Drives can be innate
or acquired. Innate stem from psychological needs like hunger, thirst, pain etc.
Acquired needs refer to striving for status or social approval.
 Cues: It is a weak stimulus in the environment determining when, where and how
an individual responds to the drive.
 Response: The action to cue is response.
 Reinforcement: When a person has a need to buy and passes by a store, gets
attracted and buys a product. If it leads to satisfaction, reinforcement takes place
leading to repeat purchase.
Thus, The Pavlovian model relates buyer behaviour to the learning process and states that
consumer’s response is likely to depend on his expenditure and level of
learning.Therefore, the model suggests that marketers have to relate the product, brand
offering to the internal drives of a consumer.

The Gestalt theory: Gestalt theory states that an individual perceives products and ideas
as parts of the whole instead of isolated and segregated segments.
 It is based on the premise that the total is different from the sum of its parts.
 Stimuli are perceived in relation to the organization of one’s experience.
 Perceptions based on parts differ from that based on whole.

Theory of Cognitive Dissonance: Largely based on Gestalt approach, the theory of

cognitive was propounded by Festinger.
 A person strives towards consistency within his cognitive structure and attempts
to reduce tension so as to make life more comfortable.
 Inconsistency, which has been called Dissonance, is a tension which may result
from any decision For example, purchase of product.
Marketers may be profited by this theory by attempting to reduce the post purchase
dissonance of their consumers. They may reassure their consumers about the wisdom of
their purchase decision and reinforce their confidence in the product.
The Howard Sheth Model: John.A.Howard and Jagdish N.Sheth have developed a
comprehensive model which presents numerous factors in attempting to explain
consumer behaviour.This model describes what happens in between receiving stimuli
(input) and the action what we call behaviour (output). This model depicts consumer
behavior as a complex process and involves concepts of perception, learning and
attitudes. It is applicable to individuals.

 The model has four sets of variables: Input, Perceptual and Learning
constructs, Outputs, Extrogenous or output variables.
 Inputs are provided by three types of stimuli: Significative, Symbolic and Social
stimuli.
 The perceptual and learning constructs are psychological variables like motives,
attitudes and perception
 The consumer receives the stimuli and interprets the same. Two factors influence
the interpretation: stimulus ambiguity and perceptual bias.

 Output refers to the purchase decision. Purchase satisfaction increases brand

comprehension while dissatisfaction leads to negative attitude.

 External variables, not shown in the model, include social class, importance of
purchase and financial status
Nicosia Model
• This model explains consumer behavior on the basis of four fields. Output from
one field becomes input to the next field.
• Field one consists of two subfields i.e. firm’s & product attributes and
predisposition of the consumer & his own attributes.
• Field two is pre-action field where the consumer goes on for search & evaluation
and gets motivated to buy the product.
• Field three is the act of purchase or decision making to buy the product.
• Field four highlights the post purchase behavior i.e. use of the product, its storage
and consumption.
• The feedback from field four is input to the field one and the feedback is
responsible for changing the pre-disposition of the consumer and later his attitude
towards the product

Fig.1 Nicosia model

REFERENCES
www.dspace.vidyanidhi.org.in
www.consumerpsychology.net
www.wikipedia.org