The document discusses the black box model of consumer behavior. The black box model views consumer decision making as influenced by external stimuli from marketers and the environment, as well as internal characteristics of the consumer. The stimuli enter the "black box" and the consumer's response emerges from their characteristics and decision process within the black box. The model shows interactions between stimuli, consumer traits, their decision process, and ultimate responses. It assumes consumers make rational decisions after recognizing problems, though many decisions are less conscious. Marketers aim to influence the stimuli side to produce favorable consumer responses.

1. Consumer Behavior- 2015 - Rajesh Satpathy

2. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
The Black Box Model:
The black box model of consumer behaviour identifies the stimuli
responsible for buyer behaviour.
The stimuli (advertisement and other forms of promotion about
the product) that is presented to the consumer by the marketer
and the environment is dealt with by the buyer’s black box. The
buyer’s black box, comprises two sub components - the buyer’s
characteristics and the buyer decision process.
The buyer’s characteristics could be personal, social, cultural and
psychological. These are internal to the buyer and the marketer
cannot hope to bring much change into this.

3. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
The black box model shows the interaction of stimuli, consumer
characteristics, decision process and consumer responses. It can be
distinguished between interpersonal stimuli (between people) or
intrapersonal stimuli (within people).
The black box model is related to the black box theory of
behaviourism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response
of the consumer.

4. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
The marketing stimuli are planned and processed by the
companies, whereas the environmental stimulus are given by social
factors, based on the economical, political and cultural
circumstances of a society. The buyers black box contains the buyer
characteristics and the decision process, which determines the
buyers response.

5. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS

6. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
The black box model considers the buyers response as a result of a
conscious, rational decision process, in which it is assumed that the
buyer has recognized the problem.
However, in reality many decisions are not made in awareness of a
determined problem by the consumer.

7. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
The buyer’s decision making process consists of the following steps:
o Problem recognition: The consumer identifies the need for a
product
o Information search: Once the need has been recognized, the
consumer will look for more information on the various products
that satisfy the need. For example, if the consumer is looking for a
Smart phone- he/she might want to get in-depth knowledge of
various phones available in the market
o Evaluation of alternatives: The set of all phones are then
compared upon certain parameters that the user will desire in his
product. For example, the user might compare phones on style,
design, features, aesthetics etc.

8. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
o Purchase decision: Based on the above parameters, the user
ranks the products and then buys the one which fit all criteria
o Post purchase behaviour: The user might want to revise his views
on the product or criteria of selection based on the product’s
performance.
The black box model considers the buyer's response as a result of a
conscious and well-informed decision making process in which he
is not impulsive.

9. THE BLACK BOX MODEL AND THE IMPLICATION ON MARKETERS
Example
Discount offers – During discount seasons, Malls, and stores are
filled with customers thinking they will get high price products in
cheap and this thinking of the customers let them spend more as
they actually want. But discounts varies from brand to brand.
No-one knows how they decide the amount of discounts to be
given. They all are busy in buying. This is a black box approach of
companies to sell more of their items because of consumers
thinking and behavior.

10. Thank You!