The document discusses various factors that influence consumer behavior and models of consumer behavior. It describes cultural, social, personal, and psychological factors. It then explains several traditional and contemporary models of consumer behavior, including the economic model, learning model, psychoanalytical model, sociological model, Howard Sheth model, Nicosia model, Engel-Blackwell-Minard model, and Webster-Wind model. Each model is summarized with an example to illustrate how it applies to understanding consumer decisions.

2.  The term customer refers to the purchaser of a product or service
whereas the term consumer refers to the end user of a product or
service.
A customer is

4. Factors influencing consumer
behavior
 Cultural
 Social
 Personal
 Psychological

5. personality

6. Contd..
 Schiffman (2008) as that the unique
dynamic organization of characteristics
of a particular person, physical and
psychological, which influence
behaviour and responses to the social
and physical environment.
 related to the heredity and the
experience of early childhood.

7. psychographic
Activities
•Interests
•Opinions

8. Family
 helps shape an individual's
attitudes and behaviours
 develop political and
religious beliefs, lifestyle
choices, and consumer
preferences

9. society
outside influences of others

10. Attitude and life styles
 “the patterns in which people live
and spend time and money.”
 Beliefs and feelings

11. Values of perception
•Organization,
•Identification,
•Interpretation

12.  The organization, identification and
interpretation of sensory information in
order to represent and understand the
environment.
 can be shaped by learning, memory and
expectations.

13. Models of consumer
behavior
 Traditional models:
Economic Model
Learning Model
Psychoanalytic Model
Sociological Model

14. Economic model
 Law of principal of maximum utility
 Law of equimarginal utility enables a
consumer to secure the maximum utility
from limited purchasing power
 Price effect
 Substitution effect
 Income effect

15. Learning model
 The response of satisfaction reinforces
the relationship
 Learns to associate connection between
stimulus and response which becomes
habit
 Understanding the response of
consumer at the market place

16. Psychoanalytical model
 Personality of consumers and their
responses
 Consumer behavior is directed by a
complete set of deep seated motives

17. Sociological model
 As his role, status, interaction, influence,
group relation, lifestyle, income, occup-
ation, place of residence, social class
etc.

18. Contemporary models
 Harward seth model
 Nicosia
 Webster and wind
 Engel, balckwell and minard model

19. Howard sheth model
 Customer lacks well defined evaluative
criteria to judge the product
 Searches for information
 After passing his own personality, his
intake is modified
 Evaluates the brands available
 Seeks greatest potential of satisfying his
motives

21. example
 Online shopping

22. Nicosia model
 Proposed by Francesco Nicosia in
1970s
 Incomplete in a number of aspects,
very reductionist
 Variables in the model have not been
clearly defined

23.  A number of assumptions have been made
that question the validity of this model, for
instance:
 What type of consumer are we talking about?
 The company and the consumer have an
existing relationship? What type?
 Is this for a new product? Is this the first
exchange the consumer has had with the
producer?

25. example
 Four-wheelers

26. Engel, Blackwell and minard
model
 Information input
 Information processing
 Decision process stage
 Variables influencing decision making
process

28. example
 Garment sector
 Social class
 Family
 Lifestyle
 Personality
 Beliefs
 attitudes

29. Webster and wind
 partitiones the buying process into
several processes
 processes of decision-making are
determined by environmental and
organizational factors.
 Final buying process rendered as the
mixture of individual and group decision

32. example
 Automobile manufacturing
• B2B business
• Purchasing tires

34. conclusion
 Understanding consumer contributes the
best to any organization and for this,
models would work great