1. ANJALI DAS V.M
MBA
RAJADHANI BUSINESS SCHOOL
MODELS OF CONSUMER
BEHAVIOR

2. CONSUMER BEHAVIOR
 Defines how individuals, groups or organizations use
or dispose different products or services to satisfy
their needs or wants

3. MODELS OF CONSUMER
BEHAVIOR
Different models of consumer behavior are:
 Economic model
 Learning model
 Psychoanalytic model
 Sociological model
 The Howard Sheth model
 The Nicosia model

4. ECONOMIC MODEL
 Oldest model of consumer behavior.
 Consider the behavior of an economic man.
 Depends on price effect, substitution effect & income
effect.
 If an individual has certain sum of money and
certain set of requirements then he will spend only
on the products which gives maximum benefits.

5. PRICE, SUBSTITUTION & INCOME
EFFECT
 Price effect=>
If the price is less then the purchase will be more.
 Substitution effect=>
If the price of substitute is less then the purchase of
original product will be less.
 Income effect=>
If the income is high then the purchase will be more.

6. LEARNING MODEL
 Based on Pavlov’s stimulus response.
 Pavlov’s stimulus response states that in order to
bring changes in buyer’s behavior one must change
the drives, stimuli and responses as per buyer’s
attitude or perceptions.

7. LEARNING MODEL(CNTD…)
DRIVE
Internal stimulus
that impels an
action.
CUES
Stimuli coming form
marketing & social
environment.
RESPONSE
What the buyer
does, whether buys
or not.
REINFORCEMENT
Leads to repeat
purchase.

8. PSYCHOANALYTIC MODEL
 Deals with the analysis of psychology of consumers.
 According to this model, buyer’s needs & wants
operate at several levels of consciousness.
 For every purchasing decision the purchaser will
have some complex motives which can be influenced
by his sense of desires.

9. SOCIOLOGICAL MODEL
 Deals with society.
 Buyer is an element of society and also a part of
different groups.
 Buying behavior of the purchaser depends on these
groups.

10. SOCIOLOGICAL MODEL(CNTD..)

11. HOWARD SHETH MODEL
 Proposed by John Howard & Jagadish Sheth.
 There exists some variables other than inputs &
outputs which affects the learning & perception of
consumers.
 These variables are imaginary & difficult to measure.
 It attempts to explain the rationality of choice of the
product by the consumer under conditions of
incomplete information and reduced processing
capability.
 Model has 4 components.

12. HOWARD SHETH MODEL(CNTD…)

13. COMPONENTS OF HOWARD SHETH
MODEL
 Input variables:
 Hypothetical constructs
 Output variables
 External variables

14. INPUT VARIABLES
 Consists of some stimuli which gives information about
the product.
 It includes 3 different types of stimuli:
 Significant stimuli: Physical characteristics & attributes
of a product
eg:- Price, quality etc.
 Symbolic stimuli: Verbal or visual characteristics of a
product.
eg:- Effect of advertising.
 Social stimuli: Environmental factors that act as the
source of input.

15. HYPOTHETICAL CONSTRUCTS
 Psychological variables influencing consumer
behavior during the decision making process.
 It consists of 2 major variables:
Perceptual constructs: Helps in obtaining &
processing information for selecting a brand.
Learning constructs: How buyer forms attitudes,
opinions, and knowledge influencing his buying
decisions.
Evaluation after purchase also comes under learning
constructs.

16. OUTPUT VARIABLES
 Ultimate response of the consumer.
 Hierarchy of output variables are:
Attention - information accepted after exposing
buyer to stimulus.
Comprehension - amount of information actually
processed and stored in buyer’s mind.
Cognition - forming attitude towards the product.
Intention - to buy or not to buy the product.
Purchase behavior.

17. EXTERNAL VARIABLES
 It does not directly depends on decision making
process.
 These are external factors.
 It includes social class, financial status, culture etc.

18. NICOSIA MODEL
 Introduced by F.M.Nicosia.
 Model of purchase decision making process by an
individual or group.
 Shows the interactive relation between company &
consumer.
 According to this model, there are 4 different areas
of the decision making process.

19. NICOSIA MODEL(CNTD…)
Field two: Search for and evaluation
of means-end relation

20. 4 AREAS OF DECISION MAKING
PROCESS IN NICOSIA MODEL
 Area 1 => Consumer attitudes.
 Area 2 => Search for & evaluation.
 Area 3 => Act of purchase.
 Area 4 => Feedback.