Consumer Behavior Models

By: Dr. Sandeep Solanki, Assistant Professor, Dept. of Marketing, College of Business Administration, Prince
Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia (Ph.D., M.Com., MBA); sandeep.victory1947@gmail.com
Page 1
‘Notes for Management Students’ On
“CONSUMER BEHAVIOR STUDY”
(some significant models)
Extracts from CB Books like:
1) Kotler, P. & Armstrong, G., 2004. Principles of Marketing, 9ed. Pearson Education
2) Solomon, M.R., 2005. Consumer Behavior, 6th ed., Pearson Prentice Hall
3) Saxena, R., 2010., Marketing Management, 4th ed., Tata McGraw-Hill
4) Schiffman, L.G. &Kanuk L.L.,1997.Consumer Behavior, 5th ed. Prentice-Hall India
5) Loudon D.L. & Bitta A.J.D. Consumer Behavior,4th ed., Tata McGraw-Hill
6) L.G. & Kanuk L.L.,2007.Consumer Behavior, 9th ed. Prentice-Hall India etc…….
By: Dr. SANDEEP SOLANKI (JODHPUR, INDIA)
Assistant Professor (sandeep.victory1947@gmail.com)
Department of Marketing, College of Business Administration,
Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia

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‘CONSUMER BEHAVIOR STUDY’
For any research study, understanding of the discipline in which the study is carried out is very essential. This
section provides an insight into the nature of the discipline ‘Consumer Behavior’ which is the core of marketing
management. Consumer Behavior study facilitates an understanding of the behavior of consumer which in turn helps
in predicting the behavior with more accuracy.
1. Consumer Behavior (CB) Perspectives
The section includes meaning, definition of the term ‘consumer behavior’ and the subsequent development of the
discipline. Also focuses on application areas of ‘consumer behavior’.
1.1 Meaning of the term ‘Consumer Behavior’:
For a long time it has been preached by all, including Mahatma Gandhi, that the Customer is King.1
Customer is
the king of the marketplace. King is having endless desires for consumption, which becomes a basic instinct for
market players of products & services, since the king has paying capacity. Satisfying not only the needs & wants of
the consumer but also the desires, is a big challenge before the corporate for its longer existence. Availability of
alternative products and services has increased with an increased entry of new players with the existing ones. This has
also increased the intensity of marketing aggressiveness among competitors for a war of market share; overtly,
struggle for existence. Customer today has a much wider choice; market leadership does not warranty customer
loyalty.
Purpose of marketing research is not only an extension of existing market knowledge but also predicting or forecasting
trends. In this relation, a close understanding and prediction of consumer behavior is of crucial importance in
formulating an effective marketing strategy.
Each of us is a student of behavior. Since our earliest years, we have watched the actions of others and have attempted
to interpret what we see. Behavior is ‘what people do?’ It is about investigating ‘why people behave in a way they do
behave’. According to E. E. Lawler & J. G. Rhode 19762
, ‘Behavior is generally predictable if we know how the
person perceived the situation and what is important to him or her.’ Placed in similar situations, all people don’t act
exactly alike. However, there are certain fundamental consistencies underlying the behavior of all individuals that can
be identified and then modified to reflect individual differences. These fundamental consistencies are very important
as it allows prediction.
One such consistency is ‘customer satisfaction’ in the field of marketing, which is a measure of how products and
services supplied by a company meet or surpass customer expectation. It is seen as a key differentiator & performance
indicator in a competitive marketplace3
.
‘Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational objectives’4
. Marketing is the
delivery of customer satisfaction at a profit.5
1
Saxena, R., 2010., Marketing Management, 4th
ed., Tata McGraw-Hill pg.9
2
Robbins S.P., 2005. Organizational Behavior, 11ed. Prentice-Hall India, pg. 25
3
http://en.wikipedia.org/wiki/Customer_satisfaction
4
Dictionary of Marketing Terms, 2nd
ed., ed. Peter D. Bennett (Chicago: American Marketing Association, 1995).
5
Kotler, P. & Armstrong, G., 2004. Principles of Marketing, 9ed. Pearson Education pg. 5

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In order to fulfill the expectation or make the customer delight with an objective to win loyalty, there is a dire need to
understand and predict the behavior of the consumer.
Human mind is a complex box of permutation & combination of information processing to reach a particular decision
to act upon. According to one behavioral learning theory, psychologists approach the mind as a “black box” and
emphasize the observable aspects of behavior i.e. external stimuli and responses or reactions of individuals to these
stimuli.6
But what happens actually in the ‘black box’, to reach a decision, is attempted to understand with help of
cognitive learning theory or information processing theory, which suggests how a consumer store, retain and retrieve
information to act or respond. Also, the inclusion of some important concepts (abstract) such as motivation,
perception, and attitude is unavoidable, to develop somewhat accurate prediction of consumer behavior in action.
‘Consumer behavior is the study of human responses to products, services and the marketing of products and
services’. Managers who really understand their customers develop better products and services, promote their
products and services more effectively, and devise marketing plans and strategies that foster sustainable competitive
advantages for their products and services.
Consumer Responses: To understand consumers and why they make the choices they do, consumer researchers
investigate a broad range of human responses, including affective (feelings), cognitive (thoughts), and behavioral
(actions) responses. All of these responses are influenced by three major factors; person variables, situational
variables, and person-by-situation interactions.
Person Variables; implies, people vary and situations vary. No two people are exactly alike, and no two situations are
exactly alike. People differ on many dimensions such as - intelligence, personality, interests, hobbies, opinions, and
preferences. Person variables are dimensions that are internal to a specific individual.
Situational Variables; are external, environmental variables that provide the context in which behaviors are
performed. Some of the key macro trends identified in collaborative research project of DuPont Corporation and
Johnson Graduate School of Management at Cornell are globalization, urbanization, cultural diversity, information
flow – multimedia, and benefits – knowledge link. Marketing managers are interested in the influence of a wide
variety of situational variables, such as the effects of various changes in the four P’s of marketing – product,
promotion, price and place.
Person-by-Situation Variables; person variables and situational variables often jointly influence consumer behavior.
An interaction between two variables means that the effect of one variable depends on the effects of another. For
example, an advertising technique that is effective for one group of consumers is unlikely to be effective for another
group. Some consumers are influenced more by ads that just present the facts, whereas others are influenced more by
emotional appeals and hype. Some consumers weigh a lot of evidence about a lot of brands before they purchase a
consumer durable, such as an appliance or an automobile, whereas other consumers make impulsive purchase
decisions for consumer durable and nondurables.7
Different marketing strategies are required for different groups of
consumers as well as for different products. Marketing techniques that are effective for selling automobiles are
unlikely to be effective for selling toothpaste.8
6
Solomon, M.R., 2005. Consumer Behavior, 6th
ed., Pearson Prentice Hall, pg. 101
7
Venkatraman, Marlino, Kardes & Sklar, 1990 “The interactive effects of message appeal and individual differences on
information processing and persuasion.” Psychology & Marketing, 7, 85-96
8
Kardes.F.R, 2003. Consumer Behavior and Managerial Decision Making, 2nd
ed., Prentice-Hall India, pg.5-10

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‘The term consumer behavior refers to the behavior that consumers display in searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will satisfy their needs. The study of consumer
behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on
consumption related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it,
how often they buy it, and how often they use it.’9
‘Consumer behavior refers to the actions and decision processes of
people who purchase goods and services for personal consumption.’10
Consumer behavior refers to the ‘the mental
and emotional processes and the physical activities of people who purchase and use goods and services to satisfy
particular needs and wants.’11
Most marketers now recognize that consumer behavior is an ongoing process, not merely what happens at the
moment a consumer hands over money or a credit card and in turn receives some good or service.12
It is a field of
investigation at all the three stages of consumption process, i.e. pre-purchase issues, purchase issues and post
purchase issues. Realization of the need by the consumer and finding information of the same is a pre-purchase
perspective, where marketers need to examine attitude formation process. Whether the product purchased is a pleasant
experience or not, is a perspective during the purchase and marketers need to diagnose the situational factors which
might affect favorable / unfavorable decision of the consumer. Satisfactory product performance and subsequent
intention to repurchase are the concerns in post purchase behavior of the consumer.
Individual psychological framework is unique in itself and an outcome of interaction with external environmental
variables, apart from any heredity carryovers and personal experiences. Needs, wants & desires of an individual are
shaped & designed in confirmation of the societal norms and culture in which one is brought up. Therefore,
‘continuous interaction with the customer’ is of utmost value, if the marketers want to bring changes in its marketing
mix for sustained customer acquisition & retention.
1.2 Development of Consumer Behavior as a new Field of Study:
The field of consumer behavior is rooted in the marketing concept, a marketing strategy that evolved in the late 1950s.
Marketing activities is governed by five philosophies or stages of its evolution: the production concept, the product
concept, the selling concept, and the marketing concept. Initially, when World War II ended, demand of consumer
goods exceeded supply, a production orientation worked well among manufacturing organizations. Focus was on
intensive production & distribution on the belief that consumers would favor products that are available and highly
affordable. Later, sellers recognized consumer’s increasing rationality in purchasing that they would buy the product
that would offer most in quality, performance and innovativeness. Focus was to improve existing products on quality
& performance parameters.
Gradually, when demand and supply of products improved with the advent of new entrepreneurs, importance of
selling activity was recognized, which holds that consumers will not buy enough of the organization’s products unless
it undertakes a large-scale selling and promotion efforts.13
Ultimately, in the early 1950s many marketers began to
9
Schiffman, L.G. &Kanuk L.L.,1997.Consumer Behavior, 5th
ed. Prentice-Hall India, pg. 7
10
Engel,J.F., Blackwell R.D.& Miniard P.W. 1990 ‘Consumer Behavior’Dryen Press, 1990 – Kazmi B., 2004. Consumer
Behaviour,1st
ed., Excel Books pg.4
11
Bearden et al. “Marketing Principles and Perspectives"– Kazmi B., 2004. Consumer Behaviour,1st
ed., Excel Books pg.4
12
13
Kotler, P. & Armstrong, G., 2004 Principles of Marketing, 9th
ed., Pearson Education, pg.16-18

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realize that they could sell more goods, more easily, if they produced only those goods that they had pre-determined
consumers would buy. Instead of trying to persuade customers to buy what the firm had already produced, marketing
– oriented firms endeavored to produce only what they had first determined consumers would buy. Consumer’s needs
and wants became the firm’s primary focus.
This consumer-oriented marketing philosophy, introduced by General Electric in the mid – 1950s, came to be known
as the marketing concept. To identify unsatisfied consumer needs, companies had to engage in extensive marketing
research, continuously. In so doing, they discovered that consumers were highly complex individuals, subject to a
variety of psychological and social needs quite apart from their survival needs. They had to study consumers and their
consumption behavior in depth in order to design new products and services in accordance to their taste, liking &
preferences. Thus, marketing concept laid the groundwork for the application of consumer behavior principles to
marketing strategy, eventually in the mid-to-late 1960s.14
With no history or body of research of its own, the new discipline (CB) borrowed heavily from the disciplines such
as15
:
1) Experimental Psychology: product role in perception, learning, and memory processes
2) Clinical Psychology: product role in psychological adjustment
3) Microeconomics / Human Ecology: product role in allocation of individual or family resources
4) Social Psychology: product role in the behavior of individuals as members of social groups
5) Sociology: product role in social institutions and group relationship
6) Macroeconomics: product role in consumer’s relation with the market place
7) Semiotics / Literacy Criticism: product role in the verbal and visual communication of meaning
8) Demography: product role in the measurable characteristics of a population
9) History: product role in societal changes over time
10) Cultural Anthropology: product role in a society’s beliefs and practices
1.2.1 Approaches to the study of Consumer Behavior – Positivism & Interpretivism:
The initial thrust of consumer research was from a managerial perspective; marketing managers wanted to know
the specific causes of consumer behavior. They also wanted to know how people receive, store, and use consumption
–related information, so that they could design marketing strategies to influence consumption decisions. They
regarded the consumer behavior discipline as an applied marketing science: if they could predict consumer behavior
(or actions), they could influence it. This approach has come to be known as positivism16
and consumer researchers
primarily concerned with predicting consumer behavior are known as positivists. Other terms used to describe the
positivist research paradigm include logical positivism, modern empiricism, and objectivism. Positivism assumes that
consumers engage themselves in mental activity of information processing to weigh the alternatives and take a rational
decision. Causes and effects of behavior can be identified and isolated to be influenced.
14
Schiffman, L.G. & Kanuk L.L.,1997.Consumer Behavior, 5th
ed. Prentice-Hall India, pg.9-12
15
16
See, JOHN F. SHERRY, Jr. “Post-modern Alternatives: The Interpretive Turn in Consumer Research,” in H. Kassarjian and T.
Roberson, eds., Handbook of Consumer Behavior,(Englewood Cliffs, NJ: Prentice-Hall, 1991), 548-91.

Page 6
Given the interdisciplinary background in which the consumer behavior discipline is rooted, it is not surprising
that academicians from a variety of contributing disciplines, including marketing itself, have become interested in the
study of consumer behavior, not necessarily from a managerial or applied perspective, but simply to understand the
consumer better. The study of consumer behavior from the point of view of understanding consumption behavior (or
practices) and the meanings behind such behavior is called interpretivism17
(sometimes referred to postmodernism).
Other terms used to describe this approach to consumer behavior include naturalism, humanism, and postpostivism.
Interpretivists have expanded the boundaries of study to include many subjective aspects of consumer behavior, such
as the effects of moods and emotions and types of situations on consumer behavior, the role of fantasy, of play, of
rituals, even the sensory pleasures that certain products and services provide. They view consumer behavior as a
subset of human behavior. Many interpretivists consider each purchase experience unique because of the diverse set of
variables at play at that one particular moment of time. Because of its focus on the consumption experience, the
interpretive approach is also known as experientialism. An interpretivist assumes that each consumption experience is
unique and that causes & effects cannot be isolated.
Marketers have discovered that these two research paradigms are really complementary in nature. The prediction
made possible by positivist research and the insightful understanding provided by interpretivist research together
produce a richer and more robust profile of consumer behavior, and enable the marketer to design more effective
marketing strategies.18
1.2.2 Application of Consumer Behavior Research in Exploring Marketing Decisions:
Consumer Behavior research is helpful in devising overall marketing strategies:19
1) Analyzing market opportunities: This requires examining the trends and conditions operating in the marketplace,
consumers’ lifestyles, income levels, and emerging influences. This may reveal unsatisfied needs and wants.
2) How consumer motivation and decision strategies is applied to alternative products & brands that differ in level of
importance or interest entailed.
3) Selecting target markets: identifying consumer groups, investigating how they behave and how they make
purchase decisions enables the marketer to design and market products or services particularly suited to their wants
and needs.
4) The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media).
5) Marketing Mix decisions, namely:
i) Product; regarding product concern to size, shape, features, packaging, accessories etc.
ii) Price; what price to charge will influence the flow of revenue to the company.
iii) Distribution; that is, where and how to offer products and services for sale. Also, the coverage of geographic
areas.
17
See, BOBBY CALDER and ALICE TYBOUT, “Interpretive, Qualitative and Traditional Scientific Empirical Consumer
Behavior Research,” in Elizabeth Hirschman, ed., Interpretive Consumer Research (Provo, UT: Association for Consumer
Research, 1989), 199-208; MORRIS HOLBROOK and JOHN O’SHAUGHNESSY, “On the Scientific Status of Consumer
Research and the Need of an Interpretive Approach to Studying Consumption Behavior,” Journal of Consumer Research 15(3),
September 1988, 398-402; and JULIE L.OZANNE and LAUREL A. HUDSON, “Exploring Diversity in Consumer Research,” in
Elizabeth Hirschman, ed., Interpretive Consumer Research (Provo, UT: Association for Consumer Research, 1989), 1-9.
18
Schiffman, L.G. & Kanuk L.L.,1997.Consumer Behavior, 5th
ed. Prentice-Hall India, pg.10
19
Kazmi,B. 2004. Consumer Behavior, 1st
ed., Excel Books, Pg 9-11

Page 7
iv) Promotion; is concerned with marketing communications to consumers. The more important promotion
methods are advertising, personal selling, sales promotion, publicity and direct marketing. The marketer has to
decide which method would be most suitable to effectively reach the consumers.
6) With the emergence of societal marketing concept, marketing strategies today need to relate itself with social
benefit programs such as family planning, awareness about AIDS, crime against women, safe driving, environmental
concerns and others. UNICEF, Red Cross, and CRY etc. make use of consumer behavior understanding to sell their
services and try to motivate people to support these institutions.
2. Significant Models of Consumer Behavior20
Models are the standard presentations of the ‘how consumers take decision and what are the variables or factors
that might affect their decision favoring or otherwise toward the purchase of the product or services’.
2.1 Traditional Models
The earliest comprehensive models were actually devised by economists seeking to understand economic systems.
Economics involves the study of how scarce resources are allocated among unlimited wants and needs. Its two major
disciplines are – macroeconomics and microeconomics – have each developed alternative views of consumers.
2.1.1 Microeconomic Model
Developed in 19th
century, the approach focused on pattern of goods and prices in the entire economy.
Microeconomists concentrated on explaining what consumers would purchase and in what quantities these purchases
would be made. The tastes and preferences leading to these purchases were assumed to be known already.
Macroeconomists ignored why and how consumers develop various needs and preferences. It was also assumed that
consumers are perfectly rational and have perfect knowledge of the utility of the item. Given a budget, consumer’s
goals are to allocate available purchasing dollars in a way that maximizes satisfaction of their wants and needs. Given
these assumptions, economists argued that perfectly rational consumers will always purchase the good that provides
them with the highest ration of additional benefit to cost. For any given good this benefit/cost ration can be expressed
as a ration of its marginal utility to price (MU/P). Therefore, it can be shown that the consumer would seek to achieve
a situation where the following expression holds for any number (n) of goods:
MU1/P1 = MU2/P2 = MU3/P3 …………. = MUn/Pn
If any one product’s ratio is greater than the others, the consumer can achieve greater satisfaction per unit of money
from it and will immediately purchase more of it. Provided there is an adequate budget, the consumer will continue
purchasing until the product’s declining marginal utility reduces its MU/P to a position equal to all other ratios.
Additional purchasing of that good will then stop. The theory is based on the assumption that consumer’s wants &
needs are unlimited and cannot be fully satisfied. It also refers to law of diminishing marginal utility.
The theory suggests why consumers would keep on buying a product. Until they reach the point of additional utility to
satisfy their need and accrue benefits therein, they would keep on buying. According to the theory, a consumer’s each
‘buy’ is ‘utility-oriented’.
20
Loudon D.L. & Bitta A.J.D. Consumer Behavior,4th
ed., Tata McGraw-Hill, pg.600-613

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2.1.2 Macroeconomic Viewpoints
Macroeconomic focuses on aggregate flows in the economy – the monetary value of goods and resources, where
they are directed and how they change over time. Although the discipline has not generated a full unified model of
consumers, it does offer a number of insights into their behavior. One interest centers on how consumers divide their
income between consumption and savings. This deal with two economic facts of life: higher-income families spend a
smaller proportion of their disposable income than do lower-income families, but as economic progress raises all
income levels over time these proportions do not seem to change. That is, lower-income groups do not significantly
change the proportion of income devoted to spending as economic progress results in an increase in their income.
Sudden increases or decreases in income are viewed by the consumer as temporary and therefore are expected to have
little influence on consumption activity. A variety of other variables have been suggested by macroeconomists as
influencing consumption patterns. Included are consumer’s previous income experiences, accumulated liquid assets,
and variations in taxes or credits.
2.2 Theory based on ‘Behavioral Economics’ by George Katona:
Traditional economics focused on the results of economic behavior (supply, quantity demanded, prices and the
like) rather than the actual behavior of consumers themselves. George Katona found this approach lacking and argued
that an appreciation of how psychological variables influence consumers could lead to a deeper understanding of the
behavior of economic agents. As shown in Figure 2.A; consumer’s sentiment may be thought of as the consumer’s
level of confidence about current economic conditions he faces, and his expectations about the status of economic
conditions in the future. This consumer sentiment, in turn, is a deciding factor in the amount of discretionary spending
that the consumer will engage in at any given point. What made discretionary income so interesting to Katona and
others is that it has become a very important component of economic system since a healthy portion of it was devoted
to the purchase of durable goods such as cars, stereos, washing machines, and CD players.
Actual Psychological Consumer Economic
Economic process sentiment behavior
Figure 2.A: A simplified representation of Katona’s behavioral economics perspective
To test his arguments, in early 1950s Katona began conducting surveys of consumers and used their responses to a
series of economic and personal finance questions to develop the Index of Consumer Sentiment. This index is claimed
to represent the confidence consumers have in the economy.
So, behavioral economics can contribute considerably to our understanding of aggregate behavior in a given
economic system paves the path for understanding contemporary models.
2.3 Contemporary Models
Concentration of contemporary models is on the decision process of the consumers, taking into consideration their
internal as well as external factors. But the representation of the different theorists is different. Emphasis is placed on
the mental activity that occurs before, during and after purchases are made.

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2.3.1 The Nicosia Model
Francesco Nicosia was one of the first consumer-behavior modelers to shift focus from the act of purchase
itself to the more complex decision process that consumers engage in about products and services. He presented his
model in flow-chart format. Also, all variable are viewed as interacting, with none being inherently dependent or
independent. Thus the model describes a circular flow of influences where each component provides input to the next
(as shown in Figure 02. The model contains four major components or fields: 1) the firm’s attributes and outputs or
communications and the consumer’s psychological attributes, 2) the consumer’s search for and evaluation of the
firm’s output and other available alternatives, 3) the consumer’s motivated act of purchase, and 4) the consumer’s
storage or use of the product. Nicosia assumes that the consumer is seeking to fulfill specific goals and that initially
there is no history between the consumer and the firm, so no positive or negative predispositions toward the firm exist
in the consumer’s mind.
Figure 2.B: A summary view of the Nicosia model of Consumer Behavior21
Figure 2.B suggests four fields and two subfields. All the fields are interrelated to each other in purchasing
decision making process of the consumer. Consumer strikes information about the product with some source. He
confirms the source’s firm credibility and connects their product attributes with his own set of needs and wants based
on previous learning & experience. This takes a form of evaluation, if he rationalizes the factors to purchase;
consumer is motivated to take an action. The purchase decision is taken which forms a feedback for the firm and
consumption storage of the consumer himself. It stands as one of the pioneering attempts to consolidate knowledge
about consumers. Its focus on the conscious, deliberative decision-making behavior of consumers was also pioneering
21
Source: Francesco Nicosia, Consumer Decision Processes: Marketing and Advertising Implications, Prentice-Hall, Englewood
Cliffs, NJ, 1966, p. 156

Page 10
as was the viewpoint that the act of purchase is only one stage in the more important ongoing decision process of
consumers. The model also contributed the “funnel approach” which views consumers as moving from general
product knowledge toward specific brand knowledge and from a passive position to an active state which is motivated
towards a particular brand. The model suggests that how more importantly the consumption storage & experience
would become the basis for next purchase.
2.3.2 The Howard Sheth Model
Authors in this model actually use the term ‘buyer’ to refer to industrial purchases as well as ultimate consumers.
Thus, it makes difficult for the researcher to understand the perspective in case of consumers of ‘cosmetic / skincare
products’ – which are actually FMCG and are frequently purchased i.e. routinized behavior.
The model attempts to depict rational brand choice behavior by buyers under conditions of incomplete information
and limited abilities. It distinguishes three levels of decision making: 1) extensive problem solving 2) limited problem
solving and 3) routinized response behavior. The model borrows for learning-theory concepts to explain brand choice
behavior over time as learning takes place and the buyer moves from extensive to routinized problem-solving
behavior. Four major components are involved: 1) input variables, 2) output variables, 3) hypothetical constructs, and
4) exogenous variables.

By: Dr. Sandeep Solanki, Assistant Professor, Dept. of Marketing, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia
(Ph.D., M.Com., MBA); sandeep.victory1947@gmail.com
Page 11
Figure 2.C : The Howard-Sheth Model of Buyer Behavior 22
22
Source: John A. Howard and Jagdish N. Sheth, “A Theory of Buyer Behavior” in Harold H. Kassarjian and Thomas S. Robertson, eds., Perspectives in Consumer Behavior, rev. ed., Scott,
Foresman, Glenview, IL, 1973, p. 523
INPUTS
Importance
of Purchase
Satisfaction
Inhibitors
Financial
Status
Time
Pressure
OrganizationCultureSocial
Class
Personality
variables
Search for
Information
Predis-
position
Nonspecific
Motives
Specific
Motives
Decision
Mediators
Evoked
Set
Sensitivity
to Info’n
Perceptual
basis
Purchase
Behavior
Intention
Attitudes
Compre-
hension
Attention
OUTPUTS
BRANDS A B C
Significative
1. Quality
2. Price
3. Distinctiveness
4. Availability
5. Service
Symbolic
1. Quality
2. Price
3. Distinctiveness
4. Availability
5. Service
Social Environment

Page 12
Figure 2.C depict three main parts of the consumer decision making process – the input, inner psychological
processing of the stimulus or development of the determination power to purchase the product and then taking the
decision or output. Significative stimuli (such as the elements of the brand) and symbolic stimuli (related to the
producer/company such as advertisements) are depicted on the left potion of the model as Input variables. The five
output variables in the right-hand potion of the model are the buyers’ observable responses to stimulus inputs. They
are arranged in order from attention to actual purchase as attention, comprehension, attitude, intention and purchase
behavior. Perceptual constructs dealing with information processing and the learning constructs dealing with the
buyer’s formation of concepts, is depicted in the figure as black box function of consumer’s mind as the hypothetical
construct. The three perceptual constructs are – sensitivity to information, perceptual bias, and search for information.
The six learning constructs are – the motive, brand potential of the evoked set, decision mediators, predisposition,
inhibitors and satisfaction.
The process starts when the buyer confronts an input stimulus and it achieves attention. The stimulus is subjected to
perceptual bias as a result of the influence of the buyer’s predispositions as affected by his or her motives, decision
mediators, and evoked set. The modified information will also influence these variables which, in turn, will influence
his or her predisposition to purchase. The actual purchase is influenced by the buyer’s intentions and inhibitors which
are confronted. A purchase leads the buyer to evaluate his or her satisfaction with it, and satisfaction increases the
buyer’s predisposition toward the brand. As the buyer acquires more information about brands, he or she engages in
less external search for information and exhibits more routine purchase behavior.
2.3.3 Engel-Kollat-Blackwell (EKB) Model (1968)
The EKB model is comprehensive and shows the components of decision making and the relationships and
interactions among them. The five distinct parts of consumer decision making presented are: Input, information
processing, decision process, decision process variables, and external influences. Input includes all kinds of stimuli
from our contact with the world around us: our experiences, contact with others; marketer-controlled stimuli (e.g.,
advertising, store display, demonstrations); other stimuli (e.g., personal recollections, conversations with friends);
external search. Information processing of the stimuli is processed into meaningful information. Five methods of
information processing: exposure, attention, comprehension, yielding, and retention.
Decision process: is triggered at any time during information processing. It consists of five steps: problem
recognition, search, alternative evaluation, choice, outcomes (post-purchase evaluation and behavior). Decision
process variables include: motives, beliefs, attitudes, lifestyles, intentions, evaluative criteria, normative compliance
and informational influence, and other aspects of self. Such qualities of the individual make consumers unique.
External influences are called “Circles of Social Influence.” They are: culture, sub-culture (co-culture), social class,
reference groups, and family or household influences.
The model treats an individual as being a system with outputs that respond to inputs. This model recognizes the
existence of intervening variables in between initial inputs and final outputs. This model takes into account an
individual’s psychological makeup (personality, attitude, stored information, learning experiences and evaluate
criteria) as well as environment inputs that affect individual behavior.

By: Dr. Sandeep Solanki, Assistant Professor, Dept. of Marketing, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia
(Ph.D., M.Com., MBA); sandeep.victory1947@gmail.com
Page 13
Figure 2.D: The Engel-Blackwell-Miniard Model of Consumer Behavior23
2.3.4 ↗Engel-Blackwell-Miniard Model (recent revision of EKB-1968); It stands as one of the most popular representations of consumer behavior.
23
Source: Figure from Consumer Behavior, 6th
ed., by James F. Engel, Roger D. Blackwell, and Paul W. Miniard, Dryden Press 1990 / Source: Loudon D.L. & Bitta A.J.D. Consumer
Behavior,4th
ed., Tata McGraw-Hill, pg.611
Variables Influencing
Decision Process
Decision ProcessInformation
Processing
Memory
Alternative
Evaluation
External
Search
Attitude
Intention
Individual Differences:
Consumer resources,
Motivation & Involvement,
Knowledge, Attitude,
Personality, Lifestyle,
Demographics
Need
Recognition
Search
Belief
Stimuli:
Marketer
dominated
Internal
Search
Exposure
Retention
Attention
Comprehension
Acceptance
Purchase
Outcomes
Dissatisfaction Satisfaction
Environmental Influences:
Culture, Social Class,
Personal Influence,
Family, Situation
Input

By: Dr. Sandeep Solanki, Assistant Professor, Dept. of Marketing, College of Business Administration, Prince Sattam
Bin Abdulaziz University, Al Kharj, Saudi Arabia (Ph.D., M.Com., MBA); sandeep.victory1947@gmail.com
Page 14
Figure 2.D depicts consumer behavior as a decision process of five activities which occur over time: 1) motivation and
need recognition 2) search for information 3) alternative evaluation 4) purchase and 5) outcomes. As shown in the model,
variables are grouped into four general categories: a) stimulus inputs b) information processing c) decision process and d)
variables influencing the decision process. Arrows in the model depict major directions of influence that specific variables
exert. Similar to the Howard-Sheth model, the authors recognize two significantly different modes of operation by
consumers. One is described as extended problem solving which is characterized by high levels of involvement and/or
high levels of perceived risk and the evaluation process of the product will be rigorous. And the other, is limited problem-
solving behavior in which the consumer is operating under low levels of involvement, low levels of perceived risk and
engage in non-rigorous evaluation of alternatives. Advantages of the Engel-Blackwell-Miniard model include its
consideration of many variables influencing consumers, its focus on levels of consumer involvement, and its emphasis on
the decision-making process regarding purchases. Also, the flow of the model is quite flexible and it incorporates
numerous theories of consumer behavior such as those relating to information processing, motivation and attitude change.
The model is gradual development of clear distinction between external and internal variables of an individual in
decision making process. The respondent’ information processing capability is very crucial in decision process.
2.4 A Comprehensive Model of Consumer Behavior given by Schiffman & Kanuk :
The process of consumer decision making can be viewed as three distinct but interlocking stages: the input stage, the
process stage, and the output stage. The input stage influences the consumer’s recognition of a product need and consists
of two major sources of information; the firm’s marketing efforts and the external sociological influences on the consumer
(as shown in Figure 2.E). The cumulative impact of each are all inputs that are likely to affect what consumers purchase
and how they use what they buy. The process stage of the model focuses on how consumers make decisions. The
psychological factors inherent in each individual (as shown in the figure given below) affect how the external inputs from
the input stage influence the consumer’s recognition of a need, pre-purchase search for information, and evaluation of
alternatives. The experience gained through evaluation of alternatives, in turn, affects the consumer’s existing
psychological attributes. The output stage of the consumer decision-making model consists of two closely related post
decision activities: purchase behavior and post purchase evaluation. A repeat purchase usually signifies product adoption.
The simplified model diagram is shown in the Figure 2.E:

By: Dr. Sandeep Solanki, Assistant Professor, Dept. of Marketing, College of Business Administration, Prince Sattam
Bin Abdulaziz University, Al Kharj, Saudi Arabia (Ph.D., M.Com., MBA); sandeep.victory1947@gmail.com
Page 15
EXTERNAL INFLUENCES (Input):
CONSUMER DECISION MAKING (PROCESS):
POST DECISION BEHAVIOR (Output):
Figure 2.E: A Simple Model of Consumer Decision Making24
So, it reflects that how firm’s marketing efforts could influence change in the lifestyle of a consumer and direct them
towards latest market trend.
24
Source: L.G. & Kanuk L.L.,2007.Consumer Behavior, 9th
ed. Prentice-Hall India, pg. 551
Firm’s Marketing Efforts
Product
Promotion
Price
 Channels of Distribution
Socio-cultural Environment
 Family
 Informal Sources
 Other Noncommercial
Sources
 Social Class
 Culture & Subculture
Need
Recognition
Pre-purchase
Search
Evaluation of
Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Purchase
 Trial
 Repeat Purchase
Post purchase
Evaluation

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