SlideShare a Scribd company logo
1 of 17
Consumer Behaviour
MODELS OF CONSUMERS
Anuith K.R
CET School OF Management
©
Models of Consumers
 Consumers approach the marketplaces differently; they go though the buying
decision process differently as it gets impacted by internal and external forces.
 Researchers have attempted to understand the dynamics of consumer decision
making and they have classified four varying views and perspectives. These are
 i) Economic
 ii) Cognitive
 iii) Passive
 iv) Emotional.
Models of Consumers
 Economic view: According to the economic perspective of studying
consumers, the consumer is regarded as being rational.
 The model assumes that there exists in the market a state of perfect
competition;
 the consumer is aware of the various alternatives;
 he has the knowledge and ability to rank all of these;
 and he finally takes a rational decision.
 He takes a decision and makes a choice as after taking into account the
cost and benefit, and the overall value in economic terms.
Models of Consumers
 Cognitive view: The consumer is regarded as being a problem solver, who searches for
products to fulfill his needs/wants.
 Consumer decisions are based on information gathering and processing.
 The consumer is believed to take decisions after a lot of thought and deliberation, so as to get
maximum benefit and value.
 Passive view: The consumer is regarded as irrational and impulsive, who easily succumbs to
the selling and promotional efforts of the marketer.
 It is assumed that the consumers are submissive to the self-serving interests of the marketer and the
salespersons are powerful.
 Emotional view: The consumer is regarded as being emotional and impulsive who takes
decisions based on moods and emotions.
 Marketers must put in efforts and create positive mood and emotions.
MODELS OF CONSUMERS
 i) Economic view:
 - consumer is regarded as being rational.
 - he takes a decision and makes a choice as after taking into account the cost and benefit, and the overall value
in economic terms.
 ii ) Cognitive view:
 - the consumer is regarded as being a problem solver, whose decisions are based on information gathering and
processing.
 - he takes a decision after a lot of thought and deliberation, so as to get maximum benefit.
 iii) Passive view:
 - the consumer is regarded as irrational and impulsive, who easily succumbs to the selling and promotional efforts of
the marketer.
 iv) Emotional view:
 - the consumer is regarded as being emotional and impulsive.
 - he takes decisions based on moods and emotions.
MODELS OF CONSUMER BEHAVIOR
 The consumer models refer to varying orientations and perspectives with
which consumers approach the marketplace and how/why they behave
as they do. They refer to how the varying orientations impact the buying
decision process and overall buyer behavior.
 Various models have been proposed by researchers; these models can
be classified as
 (a) General models
 (b) Specific models.
MODELS OF CONSUMER BEHAVIOR:
General Models
 GENERAL MODELS: There are four models that fall under this category, viz.
a. Economic model
b. Psychological model
c. Psychoanalytic model
d. Sociological model
MODELS OF CONSUMER BEHAVIOR:
General Models
General Models
Economic
model
Micro
economic
Macro
economic
Psychological
model
Psychoanalytic
model
Gestalt
Cognitive
Sociological
model
Economic Model
 The Economic model: The economic model explains buying behavior
from an economic perspective;
 The assumption is that resources are scarce viz. a viz unlimited needs; a
consumer seeks value: he wants maximum benefit at minimum cost.
 The economic models showed concern as to how scarce resources were
allotted to satisfy the unlimited needs and wants.
 Economic models can be further classified into Micro economic models
and Macro economic models.
Economic Model – Micro economic
 Micro economic models:
 The micro economic models focus on the act of purchasing; they focus on what an
average consumer would purchase and in what quantity; they also ignore why and how
the needs/wants get prioritized.
 According to the micro economic view, consumers are rational in nature and value utility.
With resources being scarce, they would allocate money on their purchases in a way that
satisfies them maximally.
 The consumer decisions are thus based on benefit to cost ratio; the consumer would settle
on an alternative that provides the highest ratio in terms of marginal utility.
 The limitations of studying consumer behavior with this orientation is that consumers are not
always rational, and they seek average /adequate satisfaction and not total satisfaction.
 Also, consumers assess the benefit to cost ratio differently; they define the two variables
“cost” and “ benefit” variedly; the issue is subjective. The view is also silent about other
forces that operate during the buying process.
Economic Model – Micro economic
 The macro economic models focus on the overall trend in the economy that has an impact and
is also impacted upon by buying patterns. They focus on the aggregate flows in the economy.
 Conclusion about consumer behavior are made after analyzing such flows.
 This approach could also be studied with two orientations:
 a) Relative income hypothesis: A persons’ expenses is influenced by his social surrounding and
group. With his income being constant, the relative expenses and the resultant savings will not
change, until and unless, there is a big change in the total income. The hypothesis holds that
what and how much a consumer spends is not solely dependent on income, but is influenced
by peers.
 b) Permanent income hypothesis: Even if the total income increases, people initially exhibit
inertia towards spending as they want to accumulate wealth; so purchasing pattern does not
change immediately.
 The limitations of studying consumer behavior with this orientation is that the view is silent about
other forces that operate during the buying process.
The Psychological model
 The psychological model, also called the Learning Model or the Pavlovian
Learning Model, was proposed by classical psychologists led by Pavlov.
 According to this model, consumption behavior and decision making is a
function of interactions between human needs and drives, stimuli and
cues, responses and reinforcements.
 People have needs and wants; They are driven towards products and
services (stimuli and cues), which they purchase (response), and they
expect a satisfying experience (rewards and reinforcements); Repeat
behavior would depend on reinforcement received.
The Psychological model
 The model believes that behaviour is deeply affected by the learning experiences of the
buyers; and learning is a product of information search, information processing, reasoning and
perception.
 Reinforcement leads to a habit formation and the decision process for an individual becomes
routinized, leading to brand loyalty. Consumers also learn through trial and error and resultant
experiences that get stored in our memory.
 The limitations of studying consumer behavior with this approach is that the model seems
incomplete.
 Learning is not the only determinant in the buying process and the decision making.
 The model totally ignores the role played by (a) other individual determinants like perception,
personality (the sub-conscious), attitudes; as well as (b) interpersonal and group influences.
Psychoanalytic model
 The psychoanalytic model was proposed by Sigmund Freud. The model tries to explain consumer
behaviour as a resultant of forces that operate at subconscious level.
 The individual consumer has a set of deep seated motives which drive him towards certain buying
decisions
 According to the model, buyers needs and desires operate at several levels of consciousness. Not
all of the behavior is understandable and explainable by the person.
 Also not all of human behavior is overtly visible and explainable. Sometimes, the behavior may not
be realized and understood by the person himself. Such causes can be understood by drawing
inferences from observation and casual probing.
 There have been two more contributions that have been made to the psychoanalytic approach,
these are a) Gestalt model b) Cognitive theory
Psychoanalytic model
 Gestalt model: The model based on Gestalt principles (meaning “patterns
and configuration”) lays emphasis on the perceptual processes that
impact buying behavior.
 According to this model, consumption behavior and decision making is
based on how a consumer perceives a stimuli ( the product and the
service offering and the 4 Ps) viz a viz. the external environment and his
own prior experiences.
Psychoanalytic model
 Cognitive theory: The model proposed by Leon Festinger, views the
consumer as one who faces a feeling of anxiety (dissonance), while he is
making a purchase; this is because he is faced with many alternatives, all
of which seem desirable.
 Post-purchase, this dissonance increases even further.
 There is an imbalance in the cognitive structure; and the consumer tries to
get out of this state as soon as he can.
 So a buyer gathers information that supports his choice and avoids
information that goes against it.
Sociological model
 The model is based on findings of Thorstien Veblen, and focuses on the role
played by social groups and social forces.
 A person’s consumption pattern and buying behavior is affected by social
factors; his family, friends, peers, social groups, reference group and
culture have a major role to play.
 According to the model, man is perceived as a “social animal”, and thus
he conforms to norms of its culture, sub culture and groups amongst which
he operates.
 Emulative factors and social influences have a big role to play in consumer
decision making.

More Related Content

What's hot

Tri component attitude model
Tri   component attitude modelTri   component attitude model
Tri component attitude modelGowtham Kumar
 
Service blueprint
Service blueprintService blueprint
Service blueprintvicku1111
 
Engel kollat blackwell model
Engel kollat blackwell modelEngel kollat blackwell model
Engel kollat blackwell modelANOOP S NAIR
 
Consumer attitude towards consumer behaviour
Consumer attitude towards consumer behaviourConsumer attitude towards consumer behaviour
Consumer attitude towards consumer behaviourArun Gupta
 
Introduction to Consumer Behaviour
Introduction to Consumer BehaviourIntroduction to Consumer Behaviour
Introduction to Consumer BehaviourNeetu Marwah
 
Chapter 6 Consumer Perception
Chapter 6 Consumer PerceptionChapter 6 Consumer Perception
Chapter 6 Consumer PerceptionAvinash Kumar
 
Multi attribute attitude model
Multi attribute attitude modelMulti attribute attitude model
Multi attribute attitude modelvipin ojha
 
MODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURAshish Hande
 
Consumer Attitude Formation and change
Consumer Attitude Formation and changeConsumer Attitude Formation and change
Consumer Attitude Formation and changeNishant Agrawal
 
Consumer behaviour external factors
Consumer behaviour external factorsConsumer behaviour external factors
Consumer behaviour external factorsMathew Lawrence
 
Family decision making and family life cycle in consumer behavior schiffman a...
Family decision making and family life cycle in consumer behavior schiffman a...Family decision making and family life cycle in consumer behavior schiffman a...
Family decision making and family life cycle in consumer behavior schiffman a...Veerabhadraiah B R
 
Consumer Bahavior: Decision Making process
Consumer Bahavior: Decision Making processConsumer Bahavior: Decision Making process
Consumer Bahavior: Decision Making processZenaida Albarasin
 
Personality in consumer behavior
Personality in consumer behaviorPersonality in consumer behavior
Personality in consumer behaviorVijayalaxmi Jena
 
CONSUMER BEHAVIOUR
CONSUMER BEHAVIOURCONSUMER BEHAVIOUR
CONSUMER BEHAVIOURAnujith KR
 
Consumer Behaviour- Influence of culture
Consumer Behaviour- Influence of cultureConsumer Behaviour- Influence of culture
Consumer Behaviour- Influence of culturerainbowlink
 

What's hot (20)

Tri component attitude model
Tri   component attitude modelTri   component attitude model
Tri component attitude model
 
Service blueprint
Service blueprintService blueprint
Service blueprint
 
Consumer attitude
Consumer attitudeConsumer attitude
Consumer attitude
 
Engel kollat blackwell model
Engel kollat blackwell modelEngel kollat blackwell model
Engel kollat blackwell model
 
Consumer attitude towards consumer behaviour
Consumer attitude towards consumer behaviourConsumer attitude towards consumer behaviour
Consumer attitude towards consumer behaviour
 
Introduction to Consumer Behaviour
Introduction to Consumer BehaviourIntroduction to Consumer Behaviour
Introduction to Consumer Behaviour
 
Harward sheth model
Harward sheth modelHarward sheth model
Harward sheth model
 
Chapter 6 Consumer Perception
Chapter 6 Consumer PerceptionChapter 6 Consumer Perception
Chapter 6 Consumer Perception
 
Consumer Behaviour
Consumer BehaviourConsumer Behaviour
Consumer Behaviour
 
Multi attribute attitude model
Multi attribute attitude modelMulti attribute attitude model
Multi attribute attitude model
 
MODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOUR
 
Consumer Attitude Formation and change
Consumer Attitude Formation and changeConsumer Attitude Formation and change
Consumer Attitude Formation and change
 
Consumer Motivation
Consumer MotivationConsumer Motivation
Consumer Motivation
 
Consumer behaviour
Consumer behaviourConsumer behaviour
Consumer behaviour
 
Consumer behaviour external factors
Consumer behaviour external factorsConsumer behaviour external factors
Consumer behaviour external factors
 
Family decision making and family life cycle in consumer behavior schiffman a...
Family decision making and family life cycle in consumer behavior schiffman a...Family decision making and family life cycle in consumer behavior schiffman a...
Family decision making and family life cycle in consumer behavior schiffman a...
 
Consumer Bahavior: Decision Making process
Consumer Bahavior: Decision Making processConsumer Bahavior: Decision Making process
Consumer Bahavior: Decision Making process
 
Personality in consumer behavior
Personality in consumer behaviorPersonality in consumer behavior
Personality in consumer behavior
 
CONSUMER BEHAVIOUR
CONSUMER BEHAVIOURCONSUMER BEHAVIOUR
CONSUMER BEHAVIOUR
 
Consumer Behaviour- Influence of culture
Consumer Behaviour- Influence of cultureConsumer Behaviour- Influence of culture
Consumer Behaviour- Influence of culture
 

Viewers also liked

Models of consumer behaviour
Models of consumer behaviourModels of consumer behaviour
Models of consumer behaviourVikram g b
 
Consumer Behaviour
Consumer BehaviourConsumer Behaviour
Consumer BehaviourArjun Ramesh
 
Consumer behavior models
Consumer behavior modelsConsumer behavior models
Consumer behavior modelsYohitha Desai
 
consumer-behavior-ppt
consumer-behavior-pptconsumer-behavior-ppt
consumer-behavior-pptH9460730008
 
Consumer behavior models
Consumer behavior modelsConsumer behavior models
Consumer behavior modelsHarsh Arora
 
Models of CONSUMER BEHAVIOUR
Models of CONSUMER BEHAVIOURModels of CONSUMER BEHAVIOUR
Models of CONSUMER BEHAVIOURNiraj Lalwani
 
consumer behavior model
 consumer behavior model  consumer behavior model
consumer behavior model Kritika Handoo
 
Nicosia model of consumer behaviour
Nicosia model of consumer behaviourNicosia model of consumer behaviour
Nicosia model of consumer behaviourAnju Mariyams
 
20912803 02-consumer-behaviour-models 2
20912803 02-consumer-behaviour-models 220912803 02-consumer-behaviour-models 2
20912803 02-consumer-behaviour-models 2Dr. Ravneet Kaur
 
Consumer behavior Introduction with Models
Consumer behavior Introduction with ModelsConsumer behavior Introduction with Models
Consumer behavior Introduction with ModelsBalachandar Kaliappan
 
Consumer Behavior Project
Consumer Behavior ProjectConsumer Behavior Project
Consumer Behavior ProjectDnyanesh Bodhe
 
Consumer behavior and factors influencing consumer behavior
Consumer behavior and factors influencing consumer behaviorConsumer behavior and factors influencing consumer behavior
Consumer behavior and factors influencing consumer behaviorWish Mrt'xa
 
A review and integration of the partial models of consumer behaviour
A review and integration of the partial models of consumer behaviourA review and integration of the partial models of consumer behaviour
A review and integration of the partial models of consumer behaviourAlexander Decker
 
Indifference curve analysis
Indifference curve analysis Indifference curve analysis
Indifference curve analysis s1712sam
 
Cb 1 models of consumer behaviour
Cb 1 models of consumer behaviourCb 1 models of consumer behaviour
Cb 1 models of consumer behaviourSagar Kumar Vishal
 
Cb unit-ii (models in consumer behavior)
Cb unit-ii (models in consumer behavior)Cb unit-ii (models in consumer behavior)
Cb unit-ii (models in consumer behavior)Revisiting Strategy
 

Viewers also liked (20)

Models of consumer behaviour
Models of consumer behaviourModels of consumer behaviour
Models of consumer behaviour
 
Consumer Behaviour
Consumer BehaviourConsumer Behaviour
Consumer Behaviour
 
Consumer behavior models
Consumer behavior modelsConsumer behavior models
Consumer behavior models
 
consumer-behavior-ppt
consumer-behavior-pptconsumer-behavior-ppt
consumer-behavior-ppt
 
Consumer behavior models
Consumer behavior modelsConsumer behavior models
Consumer behavior models
 
Chap 2 behaviour models
Chap 2 behaviour modelsChap 2 behaviour models
Chap 2 behaviour models
 
Models of CONSUMER BEHAVIOUR
Models of CONSUMER BEHAVIOURModels of CONSUMER BEHAVIOUR
Models of CONSUMER BEHAVIOUR
 
consumer behavior model
 consumer behavior model  consumer behavior model
consumer behavior model
 
Cb models
Cb modelsCb models
Cb models
 
Nicosia model of consumer behaviour
Nicosia model of consumer behaviourNicosia model of consumer behaviour
Nicosia model of consumer behaviour
 
20912803 02-consumer-behaviour-models 2
20912803 02-consumer-behaviour-models 220912803 02-consumer-behaviour-models 2
20912803 02-consumer-behaviour-models 2
 
Consumer behavior Introduction with Models
Consumer behavior Introduction with ModelsConsumer behavior Introduction with Models
Consumer behavior Introduction with Models
 
Consumer Behavior Project
Consumer Behavior ProjectConsumer Behavior Project
Consumer Behavior Project
 
Consumer behavior and factors influencing consumer behavior
Consumer behavior and factors influencing consumer behaviorConsumer behavior and factors influencing consumer behavior
Consumer behavior and factors influencing consumer behavior
 
A review and integration of the partial models of consumer behaviour
A review and integration of the partial models of consumer behaviourA review and integration of the partial models of consumer behaviour
A review and integration of the partial models of consumer behaviour
 
Indifference curve analysis
Indifference curve analysis Indifference curve analysis
Indifference curve analysis
 
Economic policy course
Economic policy courseEconomic policy course
Economic policy course
 
Cb 1 models of consumer behaviour
Cb 1 models of consumer behaviourCb 1 models of consumer behaviour
Cb 1 models of consumer behaviour
 
Models of cb
Models of cbModels of cb
Models of cb
 
Cb unit-ii (models in consumer behavior)
Cb unit-ii (models in consumer behavior)Cb unit-ii (models in consumer behavior)
Cb unit-ii (models in consumer behavior)
 

Similar to Consumer Behaviour Models of Consumer

Consumer Behaviour Models_E Notes
Consumer Behaviour Models_E NotesConsumer Behaviour Models_E Notes
Consumer Behaviour Models_E NotesVenkat. P
 
MA CB PPT.pptx
MA CB PPT.pptxMA CB PPT.pptx
MA CB PPT.pptxTsegaH
 
CB&CL UNIT 1.pptx
CB&CL UNIT 1.pptxCB&CL UNIT 1.pptx
CB&CL UNIT 1.pptxsharma1785
 
Buyer behaviour models (1)
Buyer behaviour models (1)Buyer behaviour models (1)
Buyer behaviour models (1)Shashank Singh
 
Traditional models of Consumer Behaviour
Traditional models of Consumer BehaviourTraditional models of Consumer Behaviour
Traditional models of Consumer BehaviourAkankshya Patnaik
 
Consumer buying decision
Consumer buying decisionConsumer buying decision
Consumer buying decisionNitin Jha
 
Consumer behavior all material Prepared by karventhan
Consumer behavior all material Prepared by karventhan Consumer behavior all material Prepared by karventhan
Consumer behavior all material Prepared by karventhan karventhanps
 
Module of consumer behaviour
Module of consumer behaviourModule of consumer behaviour
Module of consumer behaviourJameel Pathan
 
consumer Buying Behaviour
consumer Buying Behaviourconsumer Buying Behaviour
consumer Buying BehaviourGCUF
 
Microeconomics lecture.2
Microeconomics lecture.2Microeconomics lecture.2
Microeconomics lecture.2hasnain Qaudri
 
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...Venkat. P
 
Consumer behaviour
Consumer behaviourConsumer behaviour
Consumer behaviourDEEPAK MOHAN
 
Capital Budgeting - Copy.pptx
Capital Budgeting - Copy.pptxCapital Budgeting - Copy.pptx
Capital Budgeting - Copy.pptxEileenPelo1
 
Consumer Behavior Theory-EPelo - Copy.pptx
Consumer Behavior Theory-EPelo - Copy.pptxConsumer Behavior Theory-EPelo - Copy.pptx
Consumer Behavior Theory-EPelo - Copy.pptxEileenPelo1
 
Iipm consumer behaviour full
Iipm consumer behaviour fullIipm consumer behaviour full
Iipm consumer behaviour fullShray Mathur
 

Similar to Consumer Behaviour Models of Consumer (20)

Consumer Behaviour Models_E Notes
Consumer Behaviour Models_E NotesConsumer Behaviour Models_E Notes
Consumer Behaviour Models_E Notes
 
MA CB PPT.pptx
MA CB PPT.pptxMA CB PPT.pptx
MA CB PPT.pptx
 
CB&CL UNIT 1.pptx
CB&CL UNIT 1.pptxCB&CL UNIT 1.pptx
CB&CL UNIT 1.pptx
 
For 604
For 604For 604
For 604
 
Cb notes
Cb notesCb notes
Cb notes
 
Buyer behaviour models (1)
Buyer behaviour models (1)Buyer behaviour models (1)
Buyer behaviour models (1)
 
Traditional models of Consumer Behaviour
Traditional models of Consumer BehaviourTraditional models of Consumer Behaviour
Traditional models of Consumer Behaviour
 
Consumer buying decision
Consumer buying decisionConsumer buying decision
Consumer buying decision
 
Consumer behavior all material Prepared by karventhan
Consumer behavior all material Prepared by karventhan Consumer behavior all material Prepared by karventhan
Consumer behavior all material Prepared by karventhan
 
Module of consumer behaviour
Module of consumer behaviourModule of consumer behaviour
Module of consumer behaviour
 
Marketing ppt 16 20
Marketing ppt 16 20Marketing ppt 16 20
Marketing ppt 16 20
 
consumer Buying Behaviour
consumer Buying Behaviourconsumer Buying Behaviour
consumer Buying Behaviour
 
MMUnit IV.pdf
MMUnit IV.pdfMMUnit IV.pdf
MMUnit IV.pdf
 
Microeconomics lecture.2
Microeconomics lecture.2Microeconomics lecture.2
Microeconomics lecture.2
 
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...
 
Consumer behavior
Consumer behaviorConsumer behavior
Consumer behavior
 
Consumer behaviour
Consumer behaviourConsumer behaviour
Consumer behaviour
 
Capital Budgeting - Copy.pptx
Capital Budgeting - Copy.pptxCapital Budgeting - Copy.pptx
Capital Budgeting - Copy.pptx
 
Consumer Behavior Theory-EPelo - Copy.pptx
Consumer Behavior Theory-EPelo - Copy.pptxConsumer Behavior Theory-EPelo - Copy.pptx
Consumer Behavior Theory-EPelo - Copy.pptx
 
Iipm consumer behaviour full
Iipm consumer behaviour fullIipm consumer behaviour full
Iipm consumer behaviour full
 

More from Anujith KR

JSW Colouron Premium Al-Zn Roofing Sheets
JSW Colouron Premium Al-Zn Roofing SheetsJSW Colouron Premium Al-Zn Roofing Sheets
JSW Colouron Premium Al-Zn Roofing SheetsAnujith KR
 
Labour laws and acts in India for HR
Labour laws and acts in India for HRLabour laws and acts in India for HR
Labour laws and acts in India for HRAnujith KR
 
Coca-Cola Secret Project 5
Coca-Cola Secret Project 5Coca-Cola Secret Project 5
Coca-Cola Secret Project 5Anujith KR
 
Brand Management
Brand Management Brand Management
Brand Management Anujith KR
 
Brand concepts
Brand conceptsBrand concepts
Brand conceptsAnujith KR
 
Brand management
Brand management Brand management
Brand management Anujith KR
 
Comparative Labor Relations
Comparative Labor RelationsComparative Labor Relations
Comparative Labor RelationsAnujith KR
 
Coca - Cola at a Glance
Coca - Cola at a GlanceCoca - Cola at a Glance
Coca - Cola at a GlanceAnujith KR
 
Strategic Management Module 1
Strategic Management Module 1Strategic Management Module 1
Strategic Management Module 1Anujith KR
 
Entrepreneurship Development notes
Entrepreneurship Development notesEntrepreneurship Development notes
Entrepreneurship Development notesAnujith KR
 
Project Template Sample Kerala University MBA
Project Template Sample Kerala University MBAProject Template Sample Kerala University MBA
Project Template Sample Kerala University MBAAnujith KR
 
BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT
BUSINESS ENVIRONMENTAnujith KR
 
Industrial Relations & Trade unions -India
Industrial Relations & Trade unions -IndiaIndustrial Relations & Trade unions -India
Industrial Relations & Trade unions -IndiaAnujith KR
 
Marketing information System & applications
Marketing information System & applicationsMarketing information System & applications
Marketing information System & applicationsAnujith KR
 
Applications of MIS in HRM
Applications of MIS in HRMApplications of MIS in HRM
Applications of MIS in HRMAnujith KR
 
Advertisement & sales promotion- IDEA CELLULAR
Advertisement & sales promotion- IDEA CELLULARAdvertisement & sales promotion- IDEA CELLULAR
Advertisement & sales promotion- IDEA CELLULARAnujith KR
 
Cognitive dissonance
Cognitive dissonanceCognitive dissonance
Cognitive dissonanceAnujith KR
 
Major scams notes
Major scams  notesMajor scams  notes
Major scams notesAnujith KR
 

More from Anujith KR (18)

JSW Colouron Premium Al-Zn Roofing Sheets
JSW Colouron Premium Al-Zn Roofing SheetsJSW Colouron Premium Al-Zn Roofing Sheets
JSW Colouron Premium Al-Zn Roofing Sheets
 
Labour laws and acts in India for HR
Labour laws and acts in India for HRLabour laws and acts in India for HR
Labour laws and acts in India for HR
 
Coca-Cola Secret Project 5
Coca-Cola Secret Project 5Coca-Cola Secret Project 5
Coca-Cola Secret Project 5
 
Brand Management
Brand Management Brand Management
Brand Management
 
Brand concepts
Brand conceptsBrand concepts
Brand concepts
 
Brand management
Brand management Brand management
Brand management
 
Comparative Labor Relations
Comparative Labor RelationsComparative Labor Relations
Comparative Labor Relations
 
Coca - Cola at a Glance
Coca - Cola at a GlanceCoca - Cola at a Glance
Coca - Cola at a Glance
 
Strategic Management Module 1
Strategic Management Module 1Strategic Management Module 1
Strategic Management Module 1
 
Entrepreneurship Development notes
Entrepreneurship Development notesEntrepreneurship Development notes
Entrepreneurship Development notes
 
Project Template Sample Kerala University MBA
Project Template Sample Kerala University MBAProject Template Sample Kerala University MBA
Project Template Sample Kerala University MBA
 
BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
 
Industrial Relations & Trade unions -India
Industrial Relations & Trade unions -IndiaIndustrial Relations & Trade unions -India
Industrial Relations & Trade unions -India
 
Marketing information System & applications
Marketing information System & applicationsMarketing information System & applications
Marketing information System & applications
 
Applications of MIS in HRM
Applications of MIS in HRMApplications of MIS in HRM
Applications of MIS in HRM
 
Advertisement & sales promotion- IDEA CELLULAR
Advertisement & sales promotion- IDEA CELLULARAdvertisement & sales promotion- IDEA CELLULAR
Advertisement & sales promotion- IDEA CELLULAR
 
Cognitive dissonance
Cognitive dissonanceCognitive dissonance
Cognitive dissonance
 
Major scams notes
Major scams  notesMajor scams  notes
Major scams notes
 

Recently uploaded

Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsIndiaMART InterMESH Limited
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Peter Ward
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...SOFTTECHHUB
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfDanny Diep To
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckHajeJanKamps
 
Supercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsSupercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsGOKUL JS
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Anamaria Contreras
 
Introducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsIntroducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsKnowledgeSeed
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in PhilippinesDavidSamuel525586
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...ssuserf63bd7
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...Operational Excellence Consulting
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Associazione Digital Days
 

Recently uploaded (20)

Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan Dynamics
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors Data
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
 
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdfGUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
GUIDELINES ON USEFUL FORMS IN FREIGHT FORWARDING (F) Danny Diep Toh MBA.pdf
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deck
 
Supercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebsSupercharge Your eCommerce Stores-acowebs
Supercharge Your eCommerce Stores-acowebs
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
 
Introducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applicationsIntroducing the Analogic framework for business planning applications
Introducing the Analogic framework for business planning applications
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in Philippines
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
 

Consumer Behaviour Models of Consumer

  • 1. Consumer Behaviour MODELS OF CONSUMERS Anuith K.R CET School OF Management ©
  • 2. Models of Consumers  Consumers approach the marketplaces differently; they go though the buying decision process differently as it gets impacted by internal and external forces.  Researchers have attempted to understand the dynamics of consumer decision making and they have classified four varying views and perspectives. These are  i) Economic  ii) Cognitive  iii) Passive  iv) Emotional.
  • 3. Models of Consumers  Economic view: According to the economic perspective of studying consumers, the consumer is regarded as being rational.  The model assumes that there exists in the market a state of perfect competition;  the consumer is aware of the various alternatives;  he has the knowledge and ability to rank all of these;  and he finally takes a rational decision.  He takes a decision and makes a choice as after taking into account the cost and benefit, and the overall value in economic terms.
  • 4. Models of Consumers  Cognitive view: The consumer is regarded as being a problem solver, who searches for products to fulfill his needs/wants.  Consumer decisions are based on information gathering and processing.  The consumer is believed to take decisions after a lot of thought and deliberation, so as to get maximum benefit and value.  Passive view: The consumer is regarded as irrational and impulsive, who easily succumbs to the selling and promotional efforts of the marketer.  It is assumed that the consumers are submissive to the self-serving interests of the marketer and the salespersons are powerful.  Emotional view: The consumer is regarded as being emotional and impulsive who takes decisions based on moods and emotions.  Marketers must put in efforts and create positive mood and emotions.
  • 5. MODELS OF CONSUMERS  i) Economic view:  - consumer is regarded as being rational.  - he takes a decision and makes a choice as after taking into account the cost and benefit, and the overall value in economic terms.  ii ) Cognitive view:  - the consumer is regarded as being a problem solver, whose decisions are based on information gathering and processing.  - he takes a decision after a lot of thought and deliberation, so as to get maximum benefit.  iii) Passive view:  - the consumer is regarded as irrational and impulsive, who easily succumbs to the selling and promotional efforts of the marketer.  iv) Emotional view:  - the consumer is regarded as being emotional and impulsive.  - he takes decisions based on moods and emotions.
  • 6. MODELS OF CONSUMER BEHAVIOR  The consumer models refer to varying orientations and perspectives with which consumers approach the marketplace and how/why they behave as they do. They refer to how the varying orientations impact the buying decision process and overall buyer behavior.  Various models have been proposed by researchers; these models can be classified as  (a) General models  (b) Specific models.
  • 7. MODELS OF CONSUMER BEHAVIOR: General Models  GENERAL MODELS: There are four models that fall under this category, viz. a. Economic model b. Psychological model c. Psychoanalytic model d. Sociological model
  • 8. MODELS OF CONSUMER BEHAVIOR: General Models General Models Economic model Micro economic Macro economic Psychological model Psychoanalytic model Gestalt Cognitive Sociological model
  • 9. Economic Model  The Economic model: The economic model explains buying behavior from an economic perspective;  The assumption is that resources are scarce viz. a viz unlimited needs; a consumer seeks value: he wants maximum benefit at minimum cost.  The economic models showed concern as to how scarce resources were allotted to satisfy the unlimited needs and wants.  Economic models can be further classified into Micro economic models and Macro economic models.
  • 10. Economic Model – Micro economic  Micro economic models:  The micro economic models focus on the act of purchasing; they focus on what an average consumer would purchase and in what quantity; they also ignore why and how the needs/wants get prioritized.  According to the micro economic view, consumers are rational in nature and value utility. With resources being scarce, they would allocate money on their purchases in a way that satisfies them maximally.  The consumer decisions are thus based on benefit to cost ratio; the consumer would settle on an alternative that provides the highest ratio in terms of marginal utility.  The limitations of studying consumer behavior with this orientation is that consumers are not always rational, and they seek average /adequate satisfaction and not total satisfaction.  Also, consumers assess the benefit to cost ratio differently; they define the two variables “cost” and “ benefit” variedly; the issue is subjective. The view is also silent about other forces that operate during the buying process.
  • 11. Economic Model – Micro economic  The macro economic models focus on the overall trend in the economy that has an impact and is also impacted upon by buying patterns. They focus on the aggregate flows in the economy.  Conclusion about consumer behavior are made after analyzing such flows.  This approach could also be studied with two orientations:  a) Relative income hypothesis: A persons’ expenses is influenced by his social surrounding and group. With his income being constant, the relative expenses and the resultant savings will not change, until and unless, there is a big change in the total income. The hypothesis holds that what and how much a consumer spends is not solely dependent on income, but is influenced by peers.  b) Permanent income hypothesis: Even if the total income increases, people initially exhibit inertia towards spending as they want to accumulate wealth; so purchasing pattern does not change immediately.  The limitations of studying consumer behavior with this orientation is that the view is silent about other forces that operate during the buying process.
  • 12. The Psychological model  The psychological model, also called the Learning Model or the Pavlovian Learning Model, was proposed by classical psychologists led by Pavlov.  According to this model, consumption behavior and decision making is a function of interactions between human needs and drives, stimuli and cues, responses and reinforcements.  People have needs and wants; They are driven towards products and services (stimuli and cues), which they purchase (response), and they expect a satisfying experience (rewards and reinforcements); Repeat behavior would depend on reinforcement received.
  • 13. The Psychological model  The model believes that behaviour is deeply affected by the learning experiences of the buyers; and learning is a product of information search, information processing, reasoning and perception.  Reinforcement leads to a habit formation and the decision process for an individual becomes routinized, leading to brand loyalty. Consumers also learn through trial and error and resultant experiences that get stored in our memory.  The limitations of studying consumer behavior with this approach is that the model seems incomplete.  Learning is not the only determinant in the buying process and the decision making.  The model totally ignores the role played by (a) other individual determinants like perception, personality (the sub-conscious), attitudes; as well as (b) interpersonal and group influences.
  • 14. Psychoanalytic model  The psychoanalytic model was proposed by Sigmund Freud. The model tries to explain consumer behaviour as a resultant of forces that operate at subconscious level.  The individual consumer has a set of deep seated motives which drive him towards certain buying decisions  According to the model, buyers needs and desires operate at several levels of consciousness. Not all of the behavior is understandable and explainable by the person.  Also not all of human behavior is overtly visible and explainable. Sometimes, the behavior may not be realized and understood by the person himself. Such causes can be understood by drawing inferences from observation and casual probing.  There have been two more contributions that have been made to the psychoanalytic approach, these are a) Gestalt model b) Cognitive theory
  • 15. Psychoanalytic model  Gestalt model: The model based on Gestalt principles (meaning “patterns and configuration”) lays emphasis on the perceptual processes that impact buying behavior.  According to this model, consumption behavior and decision making is based on how a consumer perceives a stimuli ( the product and the service offering and the 4 Ps) viz a viz. the external environment and his own prior experiences.
  • 16. Psychoanalytic model  Cognitive theory: The model proposed by Leon Festinger, views the consumer as one who faces a feeling of anxiety (dissonance), while he is making a purchase; this is because he is faced with many alternatives, all of which seem desirable.  Post-purchase, this dissonance increases even further.  There is an imbalance in the cognitive structure; and the consumer tries to get out of this state as soon as he can.  So a buyer gathers information that supports his choice and avoids information that goes against it.
  • 17. Sociological model  The model is based on findings of Thorstien Veblen, and focuses on the role played by social groups and social forces.  A person’s consumption pattern and buying behavior is affected by social factors; his family, friends, peers, social groups, reference group and culture have a major role to play.  According to the model, man is perceived as a “social animal”, and thus he conforms to norms of its culture, sub culture and groups amongst which he operates.  Emulative factors and social influences have a big role to play in consumer decision making.