This document provides an overview of several models of consumer decision making including the Howard-Sheth model from 1969 and the Engel-Kollat-Blackwell model from 1972. It also discusses the strengths and weaknesses of each model. Additionally, it introduces an alternative model of consumer behavior called the Sheth-Newman-Gross model from 1991 which identifies five values that influence consumer choice: functional, social, emotional, epistemic, and conditional.

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Contemporary Issues in Consumer Research
Final Assignment: Ethical Decision-Making and its Relevance
to Marketing Practitioners.

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Submitted to Dr. Michael Coulburn
(Professor)
Salford Business School
Date 30th Aug 2015
Type of Assignment Individual
Submitted by
Name of Student Sanjay Vaid
Roll No 00436743

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Table of Contents
CONTEMPORARY ISSUES IN CONSUMER RESEARCH........................................................... 1
FINAL ASSIGNMENT: ETHICAL DECISION-MAKING AND ITS RELEVANCE....................................... 1
INTRODUCTION.................................................................................................................... 5
HOWARD-SHETH MODEL....................................................................................................... 6
A) INPUT VARIABLE: ........................................................................................................... 6
B) PROCESSING OF INPUTS: ................................................................................................ 7
C) OUT PUT:...................................................................................................................... 7
ENGEL-KOLLAT-BLACKWELL – (EKB) MODEL (1972)................................................................... 7
DECISION PROCESS STAGE: .................................................................................................. 8
INFORMATION INPUT ............................................................................................................. 9
INFORMATION PROCESSING: ................................................................................................. 9
VARIABLE INFLUENCING THE DECISION PROCESS ..................................................................... 9
STRENGTH AND LIMITATION OF THE MODELS ......................................................................... 9
STRENGTH OF HOWARD-SHETH MODEL: ........................................................................................10
STRENGTH OF EKB MODEL:........................................................................................................10
WEAKNESS OF HOWARD-SHETH MODEL.........................................................................................10
WEAKNESS OF EKB MODEL:.......................................................................................................10
ALTERNATIVE THEORIES FOR GREATERUNDERSTANDINGOF ETHICALCONSUMER DECISION-
MAKING.............................................................................................................................11
SHETH-NEWMAN-GROSS MODEL OF CONSUMPTION:.........................................................................11
THE FIRST VALUE: FUNCTIONAL VALUE:.................................................................................13
THE SECOND VALUE: SOCIAL VALUE: ....................................................................................13
THE THIRD VALUE: EMOTIONAL VALUE: ..................................................................................13

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THE FOURTH VALUE: EPISTEMIC VALUE: ................................................................................13
THE FIFTH VALUE: CONDITIONAL VALUE .................................................................................14
CONCLUSION......................................................................................................................14
WORKS CITED.....................................................................................................................15

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Introduction
Marketer continuously wants to understand the variables that influence consumer
behavior. The point of interest for marketers is how these variables intermingle.
These variables can be internal, external, observable, latent and ethics based. Given
these complex set of variables the different set of permutation and combination to
determine the different form of outcomes, models have been formulated. These
models are very useful to understand how consumer behaves in the marketplace.
(Mukherjee, 2012)
Modellingbehavior
To better understand the underlying constructs of the consumer choice decision and
the extent to which they contour the choice process, marketer relies on established
models of consumer behavior. “Models are sometimes designed by verbal
illustration, by portraying with the help of diagrams or mathematical symbols, or by
the description of some physical process.” (Mukherjee, 2012). The consumer
behavior model can be divided into two different schools, the traditional model and
the contemporary model.
The Traditional models are as follows:
Microeconomic Model:
Learning Model
Psychoanalytic Model,
Sociological model. (T, 2014)
Contemporary model, on the other hand, includes following models:
Andreason Model (1965).
Nicosia Model (1966)
Howard-Sheth Model (1969),
Engel-Kollat-Blackwell Model (1972).

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Sheth-Newman-Gross Model of Consumption Values (1991)
And Stimulus- Response Model.
Howard-Sheth Model
This model has been widely used consumer behavior model. The model was
formulated by Professor John A. Howard and Jagdish Sheth in 1969. This model is
distinct from other models as it puts emphasis on input to the consumer buying
process and comment on the way in which the consumer organizes and interprets
these inputs before arriving at a final decision.
Figure 1.1 Howard-Sheth Model
Source: (S, 2004)
The model is constructed in three level of decision making.
• Input Variable.
• Process Variable – Perception contrast a Learning Constructs.
• Output variables.
a) Input Variable:
The input construct are phase comprises of Significative stimuli, Symbolic
stimuli, Social Stimuli. The marketer at this phase usher customer with
product or brand related in terms of Physical characteristics like. Quality,
Distinctiveness, availability, price, etc., referred as Significative stimuli). And
verbal or visual traits of the product referred as ‘Symbolic Stimuli'. Also, the
social environment of the customer referred as ‘Social stimuli’. Together,
Input Stimulus display Perception construct Learning Construct Out Put
Intention Purchase
Over reach Confidence
Intention
Attitude
Stimulus
ambiguity Attitude
Brand
Compreh
enstion
Social a. Family b.
Reference groups c.
Social class Motives
Choice
criteria
Brand
Comprehen
stion
Information Flow
Attention
Perceptual
bias Satisfaction Attention
Feedback effect
Significative a. Quality
b. Price c.
Distincitveness d.
Service e. Availaibility
Symbolic a. Quality b.
Price c. Distinctiveness
d. Service e.
Availaibity

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these three stimuli provide input to customer relating to the traits of product
class as well as brands.
b) Processing of inputs:
The Input process can be classified – Perpetual constructs and learning
constructs. The perpetual variable determines how the consumer interprets
the information from the input stimuli. An Improper comprehension of the
environmental stimuli results in ‘stimulus ambiguity’. That can lead to
‘perpetual biases. The learning construct includes confidence on the product,
brand, intention to purchase, motives behind the choice, choice criteria, brand
comprehension and level of perceived satisfaction from the brand/product.
Some exogenous variables are not directly part of the decision-making
process pose some influence on the importance of the purchase, consumer’s
personality traits, religion, time pressure, etc.
c) Out Put:
The output is the resultant behavior of the consumer exposed in the
marketplace based on their interpretation of the received environmental
stimuli through the interface of perpetual and learning contracts. The five
output mentioned on the right side of figure 1.1 are attention, purchase, brand
comprehension, brand attitude and buyer intention.
Engel-Kollat-Blackwell – (EKB) Model (1972)
The Engel-Kollat-Blackwell model is problem-solving and learning model of
consumer behavior. This model has gone through various changes, and the latest
version was Engel-Kollat –Miniard (EKM) Model that principally portrayed following
stages:

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Figure 1.2 Engel –kollat –Blackwell Model (1972)
Source: (S, 2004)
Figure 1.2 Engel-Blackwell-MiniardModel (1986)
Decision process stage:
The model has 5 stage basic decision process- problem recognition, searches for
alternatives, alternative evaluation, purchase, and outcome. However, the customer
is not passed through all five stages in all the cases. They got through the five
Outcome
Informati
on Input
Information
Processing
Decision
process
stages
Product
brands
evaluation
General
motivation
influences
Internalized
enviromental
influences
Exposure
Attention
Search Beliefs Motives
Perception
Attitudes
Choice Intention
Anticipated
circumstances
Satisfaction
Search Dissonance
Evaulation
criteria
Cultural
norms and
values
Alternative
evaluation
Outcome
Unanticipated
circumstances
Normative
compliance
Reference
group family
Personality
lifestyle
Stimuli
Mass
Personal
General
Marketer
Dominat
Information and
experience
Problem recognition
M
E
M
O
R
Y
Input
Information
Processing
Decision
Process
Enviromental Influences
Exposure Culture
Social Class
Attention
Internal
Search Search Personal influence
Belief Family
Comprehension Situation
Attitude
Acceptance Memory Indivitual Differences
Intention Consumer Resources
Retention Motivation & inolvement
Purchase Knowledge
Attitude
Personality
Outcomes Lifestyle
Demographics
Disactisfaction Satisfaction
Stimuli 1
Marketer
Dominat
ed
Need
Recognition
Alternative
Evalutation
External
Search
Variables Influencing
Decision Process

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stages only in the extended problem-solving situation. An example can be in the
case of choice of hi-tech and hi-end products like smartphones.
Information Input
This stage is quite similar to stimulus input stage mentioned in the Howard-Sheth
model. At this stage, consumer tries to recollect the brand/product related
information from his memory, which is referred as ‘internal search’. In case the
consumer finds his internal search is not sufficient, in that case, searches information
from outside. He obtains information from various marketing and non-marketing
sources. At times, the situation can be another way round as well. The external
stimulus generates the problem reorganization stage of the decision-making
process.
Information Processing:
At this stage consumer decision making goes through following stages: the
consumer is exposed to marketing stimuli inform of advertisement etc. attention - in
case of the product has relevance to the customer.
Perception – in case the marketing communication fall in customer perpetual
threshold,
Acceptance of information and retention of the perceived and accepted information
in the memory.
Variable influencing the decision process
At the fourth stage, the individual and environmental influences are on all five stages
of the decision process. Like the Howard-Sheth model, individual characteristics like
motives, values, lifestyle, and personality. And Social influences like. Culture
reference groups, family and situation factor influence decision process.
This Model hence incorporates many important individual and social parameters,
which considerably influence consumer decision making.
Strength and Limitation of the models

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Strength of Howard-Sheth Model:
The model serves as an fundamental model to understand the complexity of
consumer behavior. The model covers the complexity of many buying situations
which is quite useful. This gives markers insight into the fact that many decision to
buy by the consumer are not purely based on economical consideration, but different
non-rational factor also influence consumer buying decision. The model emphasizes
of the essence of marketing concept viz., to supply good and services designed to
meet the consumer need, study benefit that consumer seek to obtain through
consumption habit. And to offer them acceptable solutions to their problem of
acquiring satisfaction at economic and emotional, social, cultural and environmental
needs.
Strength of EKB Model:
The model takes into consideration may variables that influence consumers; it has a
high focus on consumer’s involvement and the emphasis on the decision-making
process. The model flow is very flexible. The model emphasizes the factor that
influence behavior and specifically the ones which can be powerful in buying
situation. The influences of environmental factors have been very well covered. The
other strength of the model is that it has evolved with time since its introduction in
1968. The model has accommodated new findings related to consumer behavior.
(Sheth, 1974)
Weakness of Howard-Sheth Model
The model over emphasis on Material aspects such as price and quality while
explained in significative and symbolic stimuli. On Social Stimuli aspect the model
does not cover the different social variable that covers different societies, geographic
region and how these factors influence the decision-making process. Also, the
influence religion and ethnicity been taken into account that also influences
consumer behavior. Also, the model cannot be generalized.
Weakness of EKB Model:

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‘The environmental and individual variables mentioned in the model have been
ushered with severe criticism due to the vagueness of their definition and their role in
the decision-making process.’ (Loudon & Bitta, 1993)
The model eludes the personality traits resulting in consumer choices.
The role of individual purchase motives is only considered to be constructive for
need recognition, and, thereby, this crucial theoretical aspect seems to be
undervalued in analyzing the decision-making process. (Bagozzi, et al., 2002)
Weakness of EKB Model:
The environmental and individual variables mentioned in the model have been
ushered with severe criticism due to the vagueness of their definition and their role
within the decision-making process. (Loudon & Bitta, 1993)
The model eludes the personality traits resulting in consumer choices.
The role of individual purchase motives is only considered to be constructive for
need recognition, and, thereby, this crucial theoretical aspect seems to be
undervalued in analyzing the decision-making process. (Bagozzi, et al., 2002)
Alternative theories for greater understanding of ethical
consumer decision-making
Sheth-Newman Gross Model is an alternative model to EKB model and Howard-
Sheth model.
Sheth-Newman-Gross Model of Consumption:
Much After the acclaimed Howard-Sheth model formulation in 1969, Prof. Sheth
along with Newman and Gross developed another advanced and comprehensive
model of consumer behavior comprising of five consumption values influencing
consumer choice behavior. These are Functional, social, conditional, emotional, and
epistemic in nature.

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Figure 1.4 the five values influencingconsumerbehavior
Source: (Sheth,et al.,1991) (Abdallat& EL- Emam, n.d.)
Function Condition Social
Consumer Choice Behaviour
Epistemic
Value
Emotional
Value

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The first value: Functional Value:
Sheth et al. claimed that functional value is the most important fact behind customer
choice and requires special attention.
They have defined four specific functional values based on the particular attitudinal
parameter of customers. These functions are mentioned below:
1. Utilitarian function: Utilitarian function is based on the basic proposition of
reward and punishment.
2. Value-expressive function: The customer response to a product or service are
often influenced by their core value, ethical beliefs or even extended-self. Hence can
be stated that value-expressive function, sometimes or the other, outweighs the
objective benefits a person might derive from the use of the product.
3. Ego-defensive function In order to protect oneself, either from external
environment embarrassments or internal feeling, some consumer resort to an ego-
defensive function.
4. Knowledge Function: Certain attitude is formed by need-driven for order,
structure, or meaning. The knowledge function is presented when a person is in an
ambiguous situation or wants to use a new product.
The Second Value: Social value:
The Social value looks at all primary and secondary reference groups that drive the
concept of ‘Social Imagery’ and subsequently the use of the product.
The third value: Emotional value:
The emotional feeling a consumer feels or their reaction to the usage of a product or
a nostalgic feeling, when they come across a specific product or advertisement of
the product, is accounted as emotional value.
The fourth value: Epistemic value:

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This Epistemic value is set of values that could enhance consumer perceived
satisfaction level obtained from usage of a product by fulfilling curiosity, knowledge
and exploratory needs.
The fifth value: Conditional value
Seth, Newman and Gross's model refers that the consumer may value a product
utility based on the situation. The same customer might be ready to pay even a
premium for a product depending on the occasion usage utility of the product.
This five consumption value model is a more recent model and even help determine
the ethical decision-making factors of the consumers.
Similarly, we marketers can consider following model and theories for consumer
research specifically considering the ethical decision-making.
• Solomon Model of Comparison process.
• Psychodynamic Approach.
• Behaviorist Approach,
• Cognitive Approach.
• Theory of Planned Behavior
• Humanistic Approach
• The theory of Trying
• The model of goal-directed behavior
• The Hunt and Vitell Model.
Conclusion
“It can be concluded that a common concern of all the ‘analytic’ model principally
underlies with the latent nature of many of the variables.” (Loudon & Bitta, 1993).

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Neither the Howard-Sheth model or the EKB model can be conclusively said to
represent the complete pragmatic process of consumer decision-making in the
marketplace. It seems to be difficult to predict with accuracy if the ethical or the
accurate values of all the observable and latent variables are considered to judge
consumer behavior. However the model does give considerable insight into
consumer behavior.
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