Consumer Behaviour Models with detailed Examples - Simplest explanation ever

Summary

This tutorial delves into consumer behavior models, crucial for businesses to target and retain consumers effectively. It explains traditional models like the learning and sociological models, and contemporary ones like Howard-Sheth and Engel-Kollat-Blackwell, focusing on decision-making processes. The script also touches on impulse buying and the influence of marketing on consumer choices, providing a comprehensive guide for understanding consumer behavior.

Takeaways

• 📚 Consumer Behavior is the study of how individuals make decisions to spend their resources on products and services.
• 🔍 The main goal of studying consumer behavior is to understand who is likely to buy a product or service, when they will buy it, and where they will buy it.
• 📈 There are two types of consumer models: traditional and contemporary, with contemporary models being more relevant in the modern era.
• 🛒 The Howard-Sheth model describes a buyer's journey as a methodical decision-making process with three stages: extensive problem solving, limited problem solving, and habitual response behavior.
• 🧠 Inputs, perceptual and learning constructs, and outputs are key variables that affect consumer decision-making in the Howard-Sheth model.
• 🌐 The Engel, Kollat, Blackwell, and Miniard (EKB) model outlines a five-stage decision-making process: awareness, information processing, evaluation, purchasing decision, and outcome analysis.
• 🔑 The Black Box model, also known as the stimulus-response model, focuses on how consumers process internal and external stimuli to make purchasing decisions.
• 🛍️ The Nicosia model emphasizes that marketing techniques are the main influences behind consumer decision-making processes.
• 🍬 The Hawkins-Stern impulse buying model categorizes impulse purchases into four types: escape, reminder, suggested, and planned purchases.
• 🎓 Traditional models like the learning model, sociological model, psychoanalytical model, and economic model provide foundational insights into consumer behavior.

Q & A

What is consumer behavior according to Leon Schiffman and Leslie Kanuk?

Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products, services, and ideas which they expect will satisfy their needs.

What are the main purposes of studying consumer behavior?

The main purposes of studying consumer behavior are to understand who is more likely to buy a product or service, when they are likely to buy it, and from where, which helps organizations target the right consumers at the right time and retain them.

What are the two types of consumer behavior models discussed in the tutorial?

The two types of consumer behavior models discussed are traditional models and contemporary models.

How does the Howard-Sheth model describe the buyer's journey?

The Howard-Sheth model describes the buyer's journey as a specific, methodical decision-making process with three incremental stages: extensive problem solving, limited problem solving, and habitual response behavior.

What are the three stages in the Howard-Sheth model?

The three stages in the Howard-Sheth model are: 1) Extensive problem solving, where consumers are unaware of options and actively seek information; 2) Limited problem solving, where consumers compare options and narrow down choices; and 3) Habitual response behavior, where consumers make repeat purchases based on past knowledge and experience.

What are the variables that affect the different stages of the Howard-Sheth model?

The variables affecting the Howard-Sheth model stages include inputs (social influences and marketing), perceptual and learning constructs (individual's needs and preferences), outputs (consumer's changed perception and actions), and external variables (unrelated influences like weather or political events).

What is the Engel, Kollat, and Blackwell (EKB) model and how does it differ from the Howard-Sheth model?

The EKB model is a simpler model that outlines a five-stage decision-making process: awareness, information processing, evaluation, purchasing decision, and outcome analysis. It differs from the Howard-Sheth model by focusing on the competitive market and consumer's journey through advertising and product evaluation.

What is the Black Box model and what does it represent?

The Black Box model, also known as the stimulus-response model, represents the process where consumers process various internal and external stimuli and make purchasing decisions. It is called a 'black box' because marketers aim to understand what happens inside the consumer's mind to convert stimuli into responses.

How does the Nicosia model view the influence of marketing on consumer decision-making?

The Nicosia model asserts that a business's marketing techniques are the main influences behind consumers' decision-making processes. It focuses less on the internal decision-making processes and more on the impact of marketing and consumer characteristics.

What are the four categories of impulse purchases according to the Hawkins-Stern impulse buying model?

The four categories of impulse purchases are: 1) Escape purchase, driven by appealing visuals; 2) Reminder purchase, prompted by in-store reminders; 3) Suggested purchase, resulting from active recommendations; and 4) Planned purchase, where consumers wait for specific offers to make a purchase.

How does the learning model (psychological model) of consumer behavior relate to Maslow's hierarchy of needs?

The learning model, based on Maslow's hierarchy of needs, implies that individuals fulfill basic needs before moving on to more advanced needs. It suggests that consumers will address lower-level needs (like food) before higher-level needs (like clothing), influencing how products should be marketed and arranged.