2. A model a is simplified
version of reality, it has
never been reality, it
isn’t reality and it will
never be reality...
3. … therefore all models
are subject to criticism
(oh and if we are a bit postmodern, we could ask, what is reality)
4. Objectives
At the end of this session, you should be able to:
Understand the concept of modelling within consumer behaviour
studies;
Evaluate the applicability of traditional models of consumer behaviour;
Evaluate the applicability of contemporary models of consumer
behaviour.
Understand the main components of the assignment
5. 1. The models hall of fame
• Maslow’s Hierarchy of Needs;
• Hierarchy of Effects
• Elaboration Likelihood model
• Howard-Sheth model
• Engel, Kollat and Blackwell model
• Nicosia Model
• Decision-making models
• Problem identification models
• Fishbein and Ajzen’s Behavioural Intention model
• Fritz Heider Balance Theory
• E.Roger’s adoption and diffusion of innovations
• Image congruency theory
• Information processing
6. 2. Models and theory
• Theory: an interrelated set of concepts, definitions and
positions that presents a systematic view of
phenomenon (Loudon and Della Bitta, 1993)
Theory has 4 functions, to:
1. Describe 2. Explain 3. Predict 4. Control
Are all these functions realistic?
7. 3. Types of models
Algebraic models:Fishbein’s Attitude Model
n
Ao= ∑=biei
i=1
Ao = the person’s overall attitude towards the object
bi= the strength of his belief that the object is related
to attribute I (e.g. ASDA is good value for money)
ei= his evaluation or intensity of feelings (liking or
disliking) toward attribute i
n= the number of relevant beliefs for that person
8. 3. Types of models
Conceptual models: Hierarchy of needs, (Maslow)
9. 3. Types of models
Personal variable models: a take on Ajzen’s Theory of
Planned Behaviour (1991)
10. 3. Types of models
Comprehensive Models: Howard-Sheth Model
12. 4. Consumer behaviour models: A brief history
4.1. Traditional Models of consumers
Early models derive from economics and were interested in
studying how scarce resources are allocated to quench
and unlimited amount of wants and needs (Loudon and
Della Bitta, 1993)
• Macroeconomics
• Microeconomics
13. 4. Traditional models of consumer behaviour
Focus: Aggregate flows in the economy
ics
om
on
ec Focus: The act of purchasing
ro
ac 1. Microeconomics
M
14. 4.1. Microeconomics (from Loudon and Della Bitta, 1993)
• Concentrates on the act of purchasing
• Interested in knowing what consumers were purchasing,
ignoring the why and how underpinning their behaviour
• Assumptions made:
– Consumers wants and needs are unlimited and unquenchable
– Consumers allocate their resources to maximise levels of
satisfaction (MU1/P1 =MU2/P2 =… MUn/Pn)
– Consumers have perfect knowledge
– The additional satisfaction of a unit that is bought after the first
purchase will be less than the first purchase’s marginal
satisfaction
– Price is key
What are the limitations of this approach?
– Consumers rational
15. 4.2. Macroeconomics (from Loudon and Della Bitta, 1993)
• Looks at the overall economy; the value of goods; from
these conclusions are drawn about consumers’ behaviour
influencing these flows
• Relative income hypothesis: how much is spent it not solely
determined by income but is influenced by peers
• Permanent income hypotheses: consumers determine how
much to spend based on a perceived average of what can
be consumed and not only on income
• Consumers’ behaviour is not taken into account
What are the limitations of this approach?
16. 4.2.1. Behavioural economics (from Loudon and Della Bitta, 1993)
• George Katona introduces the need to look at psychological
influences guiding consumer’s behaviour: behavioural economics
• Consumers will purchase products when they have confidence in
the economy (consumer sentiment)
The Katona Model (source: Loudon and Bella Ditta, 1993)
Actual
Psychological Consumer Economic
economic
process sentiment behaviour
conditions
Could this model help an organisation in
any of its activities?
17. 4.3. Limitations
Is this you? Do
you know
anybody who
thinks like this?
18. 5. Contemporary Models
5.1. Nicosia Model 5.2. Howard-Sheth 5.3. Engel-Blackwell-
Model Kollat
19. 5.1. Nicosia Model (1966)
Field Two: Search for and
Field One: From the source of a message
evaluation of means-end(s)
to the consumer’s attitude
relation(s) (Pre-Action Field)
Sub-field two:
Sub-field two:
Sub-field one:
Sub-field one: MESSAGE Consumer’s
Firm’s attributes Consumer’s
Firm’s attributes EXPOSURE
attributes ATTITUDE
attributes
(pre-dispositions)
(pre-dispositions)
Search
Search
Evaluation
Evaluation
EXPERIENCE
MOTIVATION
FEEDBACK
Consumption
Consumption
Field Four:
Decision
Decision
The feedback
PURCHASING
BEHAVIOUR Field Three: The act of purchase
Could this model help an organisation in
any of its activities?
20. 5.1.1. Limitations
• Incomplete in a number of aspects, very reductionist
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)
• A number of assumptions have been made that question the
validity of this model, for instance:
– What type of consumer are we talking about?
– The company and the consumer have an existing relationship? What
type?
– Is this for a new product? Is this the first exchange the consumer has
had with the producer?
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific
Do you agree with these? Can you t think
of any other limitations?
21. 5.2. Howard-Sheth Model (1969)
Exogenous
Perceptual Variables
Constructs
Outcome
1
Learning Constructs
Could this model help an organisation in
any of its activities?
22. 5.2.1. Limitations
• Too many variables, a complex model that can be difficult to read
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)
• A number of assumptions have been made that question the
validity of this model, for instance:
– Sharp distinctions between exogenous and other variables have not
been made
– The model cannot be generalised, it cannot be applied to co-joint
decision making for example
– Can this model be applied for non-branded products (Rau and
Samiee, 1981)?
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific Do you agree with these? Can you t think
of any other limitations?
23. 5.3. Engel, Blackwell and Miniard (1990)
Could this model help an organisation in
any of its activities?
24. 5.3.1. Limitations
• Too many variables, a complex model that can be difficult to read
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)
• The model is vague (Loudon and Della Bitta, 1993)
– Key variables are vaguely defined
• How do environmental variables affect consumers’ behaviour?
• How do motives influence consumers’ behaviour?
– It is a mechanical overview of human behaviour
– Can this model be applied for non-branded products? Goods?
Services? (Rau and Samiee, 1981)
• The model cannot be validated, according to Foxall (1980) it is pre-
scientific
Do you agree with these? Can you t think
of any other limitations?
25. 6. Conclusions
• A model presents phenomena in such a way that it can
be easily communicated
• Models are just representative of reality, they are not
reality
• There are different types of models (black box,
conceptual, algebraic, personal variable and
comprehensive models)
• The Nicosia, Howard-Sheth and the Engel, Kollat and
Blackwell model have all been criticised on the grounds
that they are pre-scientific
26. 6. Conclusions
• Models operate on the assumption that all human
behaviour is rational
• All models are mechanistic
• No model provides genuine insight of what underpins
consumer behaviour, is this possible?
27. Assessment
• The proposal (200 words worth 10% of your
final grade)
– SUBMISSION DATE: MONDAY, 20TH NOVEMBER
• A report (2070-2530 words worth 40% of your
final grade)
– SUBMISSION DATE: MONDAY, 15TH JANUARY
• End of year examination, worth 50% of your
final grade
28. Assignment’s main components
• Select a company or not-for-profit
organisation that you are familiar
with;
• Evaluate how a specific consumer
behaviour theory or model can aid
in understanding consumers’
behaviour and guide
marketing/advertising practice.
29. Assignment guidelines
• Consider the options offered in page
10 of your unit guide;
– Go over guidelines offered and the assessment criteria
• Read lecture notes and accompanying
reading in order to select theory or
model;
• Select an organisation that would
benefit from your analysis
– Conduct an environmental scanning to construct a
justification for why there would be a need for your
evaluation
