5 Consumer Buyer Behavior

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Marketing Management Unit 5 Sikkim Manipal University 69 Unit 5 Consumer Buyer Behavior Structure 5.1. Introduction 5.2. Characteristics of consumer behavior 5.3. Types of buying decision behavior: Henry Assael model 5.4. Consumer buying decision process 5.5. Buyer decision process for new products 5.6. Buying motives 5.7. Buyer behavior models 5.8. Summary Terminal questions Answers to SAQ’s and TQ’s 5.1. Introduction Consumers are individuals, households or businesses who use the products. In this unit we are limiting our study to individual and households’ use of products for personal consumption. Consumer characteristics vary from country to country. Therefore it has become challenging task for marketer to understand the need, buying behavior of consumer before developing product and marketing program. In this section we will discuss consumer buying behavior and his/her decision making process. We will also look into the decision process of buyer for new product. Consumer motives and behavior models are analyzed to identify buying environment. Learning Objectives After studying this unit you will be able to 1. Identify the characteristics those affect consumer behavior. 2. Explain different types of buyer behavior. 3. Analyze the consumer decision making process 4. Discuss consumer decision process for new products. 5. Examine the buying motives and behavioral models.

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consumer buying behaiviour

Transcript of 5 Consumer Buyer Behavior

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Unit 5 Consumer Buyer Behavior

Structure

5.1. Introduction

5.2. Characteristics of consumer behavior

5.3. Types of buying decision behavior: Henry Assael model

5.4. Consumer buying decision process

5.5. Buyer decision process for new products

5.6. Buying motives

5.7. Buyer behavior models

5.8. Summary

Terminal questions

Answers to SAQ’s and TQ’s

5.1. Introduction Consumers are individuals, households or businesses who use the products. In this unit we are

limiting our study to individual and households’ use of products for personal consumption. Consumer

characteristics vary from country to country. Therefore it has become challenging task for marketer to

understand the need, buying behavior of consumer before developing product and marketing

program. In this section we will discuss consumer buying behavior and his/her decision making

process. We will also look into the decision process of buyer for new product. Consumer motives and

behavior models are analyzed to identify buying environment.

Learning Objectives

After studying this unit you will be able to

1. Identify the characteristics those affect consumer behavior.

2. Explain different types of buyer behavior.

3. Analyze the consumer decision making process

4. Discuss consumer decision process for new products.

5. Examine the buying motives and behavioral models.

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5.2. Characteristics affecting consumer behavior Cultural, Social, Personal and Psychological factors influence the consumer behavior. These are

external to the company and cannot be controlled. Marketer would like to understand the impact of

these factors on his/her organization

I. Cultural factors:

1. Culture is the combination of customs, beliefs and values of consumers in a particular nation.

Majority Indians are vegetarians and a company which sells non vegetarian items should analyze

these values of the consumer. For example, KFC which sells chicken dishes all over the world added

vegetarian burgers in their menu to serve vegetarian consumers. Another multinational McDonald,

whose majority of sales comes form selling beef lets, didn’t include in the Indian menu as cow is a

sacred animal.

2. Subcultures are part of culture comprising, geographic regions, religions, nationalities and racial

groups. The value system of these groups differs from others. For example, Hindus in north India eat

special vegetarian food during the Navaratra festival. They prefer to spend their time with their family.

During this time restaurants will have lesser traffic. To attract the customers, restaurants started

offering the authentic Navaratra dish. This helped the restaurant to attract the family who don’t have

time, bachelors and people want to spend their time with family without allotting much time for food

preparation and so on.

3. Social class these are permanent groups in the society whose members have common likings.

According to Mckinsey consumer report, Indian consumers can be classifies into five different

categories. They are,

a. Deprived

b. Aspires

c. Seekers

d. Strivers and

e. Global Indians.

1. Deprived are the people who earn less than Rs 90,000 annually. This group is also known as below poverty line. They are the poorest people in the country. They won’t get continuous

employment and they earn their lively hood from seasonal work. People in this category will do

less skilled or semi skilled work.

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2. Aspires belongs to the families who earn between Rs90, 000 to Rs 2, 00,000. This group consist small shop keepers, industrial workers, and small land holding farmers. Though they earn more

than deprived class, but half of their money goes for basic amenities and food.

3. Seekers earn between Rs 200,000 to 500,000. This class varies largely. The group contains fresh workers, middle level employees, government employees and business people. The class

varies widely on the age, attitude and other factors.

4. Strivers belong to the group who earn between Rs 500,000 to 1,000,000. People in this category are considered very successful. The group contains business people, large farmers, senior

government officials and professionals. Their earnings are enough to fill their apatite of materials.

They are leading the consumption led growth in India.

5. Global Indians are earning more than Rs 1,000,000. This group is comprised of senior government officials, professionals, business people and top business executives. India is

witnessing the growth in this class. They are truly global; they purchase international brands and

have international cuisine.

II. Social factors

Human beings are social animals. They live and interact with other people. Therefore there is a

chance of influence by others on their opinions. Marketers like to identify such influential persons or

groups of consumer. Generally such groups are classified into two major groups namely reference

groups and family.

Reference groups are used in order to evaluate and determine the nature of a given individual or

other group's characteristics and sociological attributes. Reference groups provide the benchmarks

and contrast needed for comparison and evaluation of group and personal characteristics.

“Reference groups are groups that people refer to when evaluating their own qualities,

circumstances, attitudes, values and behaviors." ­ William Thompson & Joseph Hickey, Society in

Focus, 2005.” Reference groups act as a frame of reference to which people always refer to evaluate

their achievements, their role performance, aspirations and ambitions

Family: Indian culture gives utmost importance to the family. People discuss with their family before

purchasing the valuable items. Wife, children and parents influence the decisions of the family.

Therefore many companies use either whole family or kids in their promotional programs.

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Figure 5.1 Figure 5.2

Godrej introduced memory back up auto washing machine. They have shown the family in the

advertisement who are enjoying without any problems of washing clothes. In the second

advertisement Dabur chyavanprash uses kids in their advertisements. The target customers are used

with celebrity to provide necessary image and convey the attributes of the product.

III. Personal factors:

Individual factors like age, occupation, lifestyle and personality influence the consumer decision

making. We discussed age and occupation factors and their application earlier in the marketing

environment unit. We will discuss lifestyle and its influence on the consumer in the segmentation unit.

In this section we will focus on the personality and its influence on the consumer decision making

process. Personality is the image of people’s traits. Traits include Self confidence, Dominance,

autonomy, defensiveness, adaptability and aggressiveness. Many companies used these concepts in

their marketing communications. Bajaj pulsar used muscularity to highlight its image (definitely male).

Fair and lovely and stay free tried to highlight 21 st century Indian girl and their aspirations in their

communications.

IV Psychological factors:

Motivation:

Abraham Maslow’s “Need Hierarchy Theory”:

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One of the most widely mentioned theories of motivation is the hierarchy of needs put forth by

psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from

the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need

ceases to be a motivator. As per his theory these needs are:

(i) Physiological needs: These are important needs for sustaining the human life. Food, water,

warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the

primary list of need satisfaction. Maslow was of an opinion that until these needs were satisfied to a

degree to maintain life, no other motivating factors will work.

(ii) Security or Safety needs: These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm.

(iii) Social needs: Human beings are social animals. They strive to be in the society. In this type of needs people will try to satisfy their needs for affection, acceptance and friendship.

(iv)Esteem needs: According to Maslow, once the people satisfied with social needs. They would

like to have esteem needs. This category includes power, prestige status and self­confidence needs.

It includes both internal esteem factors like self­respect, autonomy and achievements and external

esteem factors such as states, recognition and attention.

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(v) Need for self­actualization: Maslow regards this as the highest need in his hierarchy. It is the

drive to become what one is capable of becoming; it includes growth, achieving one’s potential and

self­fulfillment. It is to maximize one’s potential and to accomplish something

Marketer is interested in finding what state of need hierarchy the consumer is in and what type of

product to be developed to suit his or her needs. If person needs security for his car than the mileage

then auto companies should highlight that benefit in their marketing communications.

Perception:

It is the process of acquiring, interpreting, selecting and organizing sensory information.

Explanation of the definition: stimulus is generated by hearing, smelling, seeing, touching, and

tasting. People develop stimulus about product or services through any of the above themes and

creates an image in the mind.

The marketing implication of the definition; Marketer researches his consumer profile and

communicates the product or service messages either through radio, demo, or television. By seeing,

hearing or experiencing the product or service consumer will develop an image in the mind. The

message given by company may pass through three different selection procedures.

a. Selective attention: The habit of the people to analyze the information completely and

interpreting it. They develop the perception about the product or service only after complete

analysis. This is very difficult group to handle as they request for more information.

b. Selective distortion: the phenomena in which consumer will have predispositions and interpret

the organizations information as they like it. This type of perception is both effective and non

effective for the company. If consumer understands the wrong message in a right way it is

advantageous but if he understand right message in wrong way then company will be under

trouble.

c. Selective retention: consumer will not remember all the points informed by the company.

He/she may remember the good points of company and forget the negative points of the

company.

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5.3. Types Of Buying Decision Behavior: Henry Assael Model. Figure 5.3

High Involvement Low involvement

Significant difference between brands

Complex buying behavior

Variety seeking buying behavior

Few differences between brands

Dissonance reducing buying behavior

Habitual buying behavior.

Complex buying behavior: customers who are representing this behavior are highly involved in the

purchase of the product or service. The process became complex as difference between brands are

very high. For example, customer who wants to purchase refrigerator would like to know the

meanings of defrosting, door lock, digital temperature control etc... The price of the product usually

high let me show you the comparison of three brands and significant difference between them.

Table 5.1

LG GR T­ 282 GV/GE

Akai D186 TT DX

Electrolux Kelvinator 386

Defrost

system

Door Lock

Adjustable

Shelves

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Moisture

and

Humidity

Control

Deodorizing

Ability

Water

Dispenser

Defrost

system

From the above example it is clear that marketer should first develop the belief about the brand,

provide the information and differentiate the company brand from others. In the above example you

can see both Akai and LG don’t have water dispenser while Electrolux have. Both LG and Electrolux

have moisture and humidity control while Akai lacks it. Customer would like to know what these

features are and how they add value to the product.

Dissonance reducing buying behavior:

The behavior exhibited by the customer when product purchase requires high involvement but only

few differences exist. For example, customers who want to purchase CTV will not find many

differences between the brands but the price of the product and its technicality makes customer to

involve more. One of the major disadvantages of this type of behavior is customer will show post

purchase dissonance which is very difficult to control.

Variety ­ seeking buying behavior.

When there are significant difference between the brands existing but customer will not involve more

while purchasing, marketer identify this behavior as variety seeking buying behavior. Let us discuss

the purchasing behavior of customer for biscuits. There are many varieties of biscuits available. One

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can purchase salt biscuits, cream biscuits, Marie biscuits, and milk biscuits of Britannia, Parle, ITC

sun feast and others. The customer who purchased Britannia tiger earlier may purchase Sun feast

cream biscuit next time. This doesn’t mean that quality of Britannia tiger is inferior to other brands but

customer would like to try the varieties available in the market. In this situations marketer should

undertake following steps

a. The market leader should encourage customers to buy repeatedly.

b. Make the product available and visible to the customer in the shopping places.

c. The firm who are not market leader should come out with sales promotion techniques to

encourage customer to purchase the product.

Habitual buying behavior:

The low involvement between the brands and few differences between the brands leads to the

habitual buying behavior. For example spice powder marketed by MDH, Everest or MTR have very

few difference between them and customer do not search the information to purchase particular

product. Marketers whose customer represents this category should follow below listed strategies

a. Use price and sales promotions to stimulate product trial.

b. Use more visual aspects than the wordings in the advertisements

c. Television is the better media for this type of products.

d. Use classical conditioning theory to create advertisements.

Self Assessment Questions 1:

1. Religion is one of the ­­­­­­ factor that influence consumer behavior

a. Culture

b. Social

c. Personal

d. Psychological

2. Seekers income varies between

a. 90,000 to 200,000

b. 200,000 to 500,000

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c. 500,000 to 1,000,000

d. None of these

3. The habit of the people to analyze the information completely and interpreting it in the perception

is called as ­­­­­­­­­

4. Dissonance reducing behavior is

a. Significant difference between brands and high involvement

b. Significant difference between brands and low involvement

c. Few difference between the brands and high involvement

d. Few difference between the brands and low involvement

5. The process of acquiring, interpreting, selecting and organizing sensory information is called as ­­

­­­­­­­­­­­­­­­­­­­

5.4Consumer buying decision process.

After discussing the factors those influence the buying behavior, now, we will discuss the consumer

decision making process. Consumer passes through five different stages while purchasing the

product.

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Figure 5.4

1. Need recognition: customer posses two type of stimuli’ at this juncture. One is driven by the

internal stimuli and another is external stimuli. The examples of internal stimuli are customer’s

desire, attitude or perception and external stimuli are advertising etc...From both stimuli customer

understand the need for the product. Here marketer should understand what customers needs

have that drew customers towards the product and should highlight those in the communication

strategy.

2. Information search: In this stage customer wants to find out the information about the product,

place, price and point of purchase. Customer collects the information from different sources like

a. Personal sources: Family, friends and neighbors

b. Commercial sources: Advertising, sales people, dealers, packaging and displays.

c. Public sources: mass media and consumer rating agencies.

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d. Experiential sources: Demonstration, examining the product.

In this stage marketer should give detailed information about the product. The communication should

highlight the attributes and advantages of the product in this stage so that he created the positive

image about the product.

3. Evaluation of alternatives : After collecting the information, consumers arrive at some

conclusion about the product. In this stage he will compare different brands on set parameters

which he or she thinks required in the product. The evaluation process varies from person to

person. In general Indian consumer evaluate on the following parameters

a. Price

b. Features

c. Availability

d. Quality

e. Durability

At this stage marketer should provide comparative advertisements to evaluate the different brands.

The advertisement should be different for different segments and highlight the attribute according to

the segment.

4. Purchase decision

In this stage consumer buy the most preferred brand. In India affordability plays an important role

at this stage. Organizations’ bring many varieties of the products to cater to the needs of customers. 5. Post purchase behavior

After purchasing the product the consumer will experience some level of satisfaction and

dissatisfaction. The consumer will also engage in post purchase actions and product uses of interest

to the marketer. The marketer’s job does not end when the product is bought but continues into the

post purchase period. Customer would like to see the performance of the product as he perceived

before purchase. If the performance of the product is not as he expected then he develops

dissatisfactions. Marketer should keep an eye on how consumer uses and disposes the product. In

some durable goods Indian consumer want resale value also. Many automobile brands that not able

to get resale value lost their market positions.

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5.5. Buyer decision process for new products.

The buyer’s decision for existing products and new products varies. You already seen in the existing

product buying decision process consumers have the option to search for the information and

evaluate them. In the new product such options don’t exist. Therefore we should understand how

consumer comes to know about the product. Kotler defined this process as adoption process.

According to Philip Kotler Adoption is ‘The mental process through which an individual passes from

first hearing about an innovation to final adoption’

Adoption process

Figure 5.5

1. Awareness: the consumer became aware of the product but lacks information about it. 2. Interest: As know previous information available consumer shows interest to get the information

about the product.

3. Evaluation: After receiving the information consumer analyzes the benefits of new products over

any existing products or substitutes and decides whether to buy or not.

4. Trial: The consumer tries the new product on a small scale to improve his or her estimate of its

value.

5. Adoption: In this stage consumer decides to make full and regular use of the product.

Adoption rate:

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Figure 5.6

The adoption of new product varies from individual to individual.

1. 2.5% of the consumers adopt any new product that enters to the market. These consumers are

status conscious people. Marketer should highlight how the new product will bring the esteem to

the consumer.

2. 13.5% of the customers fall into the early adopter categories. In this categories customer

observed the advantage of the new product and the moment the price of the product falls into the

affordable category they buy the product.

3. The next group is the biggest one in the adoption process. These group customers are attracted

towards the benefits of the product. They make sure that there are no technical or general

problems associated with the product. This group contains 34% of the total customers.

4. This group consist 34% of customers. The group looks for the quality product at the affordable

prices

5. The final group is called as laggards. These are traditional and price conscious people. They

often take lot of time to adoption of the product.

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Self Assessment Questions 2:

1. Sales people are ­­­­­­­­­ sources of information

a. Public sources

b. Personal sources

c. Commercial sources

d. Experiential sources.

2. The third stage in the adoption process is

a. Awareness

b. Interest

c. Evaluation

d. Trial.

3. The group of customers who adopt the new product at the end are called as­­­­­­­­­­­­

4. ­­­­­­­­­­­­­­­% of consumers belongs to early adopter category

5. Customer satisfaction or dissatisfaction is determined in­­­­­­ stage of consumer decision process

a. Information search

b. Evaluation of alternative

c. Purchase

d. Post purchase.

5.6. Buying Motives

‘The thoughts, feelings, emotions and instincts that induces customer to buy a product are called as

buying motives’

According to Prof D.J. Duncan ‘buying motives are those influences or considerations which provide

the impulse to buy, induce action and determine choice in the purchase of goods and services’.

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Classification of buying motives:

Figure 5.7

1 Product buying motives are those influences and reasons which prompt a buyer to choose a

particular product in preference to others. It may be design, shape, dimension, size, color,

package etc…

Product buying motives are further classified as

a. Emotional product buying motive and

b. Rational product buying motive

2 Emotional product buying motives in which buyer decides to purchase a product without

thinking over the matter logically and carefully. Buyer takes the decisions on the emotions.

Following factors provides the list that influence the emotional product buying motives

1. Customer attaches the pride with the product. 2. Customer try to imitate form others 3. Purchase d the goods for affection on any family member. 4. Products that provide comfort are usually purchased on the emotions. 5. Sexual appeal products are brought on emotional product motives

Buying Motives

Product buying motives Patronage motives

Emotional product buying motive

Rational product buying motive

Rational patronage buying motive

Emotional product buying motive

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6. The product those used as recreation, hunger or habit products are usually bought emotionally. 7. Products those provide distinctiveness or individuality.

3 Rational product buying motives: when buyer examines pros and cons of purchasing a product

and takes decisions then the behavior is called as rational product buying motives. Buyers will be

looking for any of the following factors before taking rational decisions

1. The safety or security features provided by the product. 2. The value for money provided by the product. 3. Suitability and utility of the product. 4. Durability of the product. 5. Convenience of the product. 4 Patronage buying motives are those considerations or reasons that make a buyer patronage a

particular shop in preference to other shops while buying a product.

Patronage buying motives are classified into two categories. They are

a. Emotional patronage buying motives.

b. Rational patronage buying motives.

e. Emotional patronage buying motives are patronizing the particular shop without logical thinking or

reasoning. Emotional patronize buying motives include the following decisions

1. Appearance of the shop 2. Visual merchandising in the shop. 3. Reference groups influence about one particular shop. 4. Shopping in a big mall is a prestige issue. 5. Imitating the other reference groups’ members.

5 Rational patronage buying motive will arises after buyer analyzing the shop carefully and

providing the information to reference group members. Rational patronage buying motives

include the following

1. Convenience of the shop to the buyers. 2. Value for money provided by the shops. 3. Financial schemes and facilities provided by the shop.

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4. Availability of wide range of goods. 5. Reputation of the shop in the area. 6. Sales force efficiency to convince the customer. 7. Services provided by the sales executives.

5.7. Buyer behavior models.

The influence of social sciences on buyer behavior has prompted marketing experts to propound

certain models for explaining buyer behavior. Broadly, they include the economic model, the learning

model, the psychoanalytical model and the sociological model.

1) The Economic Model: According to the economic model of buyer behavior, the buyer is a

rational man and his buying decisions are totally governed by the concept of utility. If he has a

certain amount of purchasing power, a set of needs to be met and a set of products to choose

from, he will allocate the amount over the set of products in a very rational manner with the

intention of maximizing the utility or benefits.

2) The Learning Model: According to the learning model which takes its cue from the Pavlovian

stimulus response theory, buyer behavior can be influenced by manipulating the drives, stimuli

and responses of the buyer. The model rests on man’s ability at learning, forgetting and

discriminating. The stimulus response learning theory states that there develops a bond between

behavior producing stimulus and a behavior response (S. R. Bond) on account of the conditioning

of behavior and formation of habits. This theory may be traced to Pavlov and his experiments on

salivating dogs. Pavlov’s experiments brought out associations by conditioning.

In his well known research with dogs, a bell was rung every time food was served to a dog.

Eventually, the dog started salivating each time upon hearing the bell though no food was served.

The dog’s behavior is conditioned; it is related to behavior­producing stimulus (bell ringing) and

behavior response (salivation). The S.R. bond so established causes a set pattern of behavior learnt

by the object – dog. In terms of consumer behavior, an advertisement would be a stimulus whereas

purchase would be a response.

Learning Process: According to the stimulus­response theory, learning is dependent on drive, cue

(stimulus), response and reinforcement.

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Drive: Drive may be defined as any strong stimulus that impels action. It arouses an individual and

keeps him prepared to respond. The drives may be classified as primary drives and secondary

drives. Primary drives are based upon innate physiological needs such as thirst, hunger, pain

avoidance, and sex. The secondary drives are based upon learning. They are not innate and are

derived from the primary drives. These include the desire for money, fear, pride, rivalry, etc.

Cue: Cue or stimulus may be defined as any object in the environment perceived by the individual.

The aim of the marketing man is to find out or create the cue of sufficient importance that it becomes

the drive stimulus or elicits other responses appropriate to his objective. Here, the objective is to find

out those conditions under which a stimulus will enhance the chances of eliciting a particular kind of

response.

Response: Response is an answer to a given drive or cue. When a man feels thirsty, he attempts to

get water at any cost. Here attempt to get water is a response to the primary drive of thirst.

“Response also includes attitudes, familiarity, perception and other complex phenomena.”

Responses may be generalized or discriminatory. Generalized response refers to a uniform response

to similar though not identical stimuli. Discriminatory response refers to the selective response to

similar stimuli. Undifferentiated products such as cigarettes and detergents normally elicit

generalized consumer responses but by huge advertising outlays companies try to induce

consumers to perceive differences in brands and to make discriminatory responses.

Reinforcement: Reinforcement or reward means reduction in drive and stimulus. It has been defined

as “environmental events exhibiting the property of increasing the probability of occurrence of

responses they accompany.” Thus, when consumption of a product or a brand of product leads to

satisfaction of the initiating need (drive/stimulus) there is reinforcement. If at some later date the

same needs are aroused, the individual will tend to repeat the process of selecting and getting the

same product or brand of product. Each succeeding time that product or brand brings satisfaction,

further reinforcement takes place, thus, further increasing the possibility that in future also, the same

product or brand will be bought. This type of behavioral change, increasing possibility that an act will

be repeated, is called learning; reinforcement increases the rapidity and vigor of learning.

3) The Psychoanalytical Model: The psychoanalytical model draws from Freudian Psychology.

According to this model, the individual consumer has a complex set of deep­seated motives which

drive him towards certain buying decisions. The buyer has a private world with all his hidden fears,

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suppressed desires and totally subjective longings. His buying action can be influenced by appealing

to these desires and longings. The psychoanalytical theory is attributed to the work of eminent

psychologist Sigmund Freud. Freud introduced personality as a motivating force in human behavior.

According to this theory, the mental framework of a human being is composed of three elements,

namely,

1. The id or the instinctive, pleasure­seeking element. It is the reservoir of the instinctive impulses

that a man is born with and whose processes are entirely subconscious. It includes the

aggressive, destructive and sexual impulses of man.

2. The superego or the internal filter that presents to the individual the behavioral expectations of

society. It develops out of the id, dominates the ego and represents the inhibitions of instinct

which is characteristic of man. It represents the moral and ethical elements, the conscience.

3. The ego or the control device that maintains a balance between the id and the superego. It is the

most superficial portion of the id. It is modified by the influence of the outside world. Its processes

are entirely conscious because it is concerned with the perception of the outside world.

The basic theme of the theory is the belief that a person is unable to satisfy all his needs within the

bounds of society. Consequently, such unsatisfied needs create tension within an individual which

have to be repressed. Such repressed tension is always said to exist in the sub­conscious and

continues to influence consumer behavior.

4. The Sociological Model: According to the sociological model, the individual buyer is influenced

by society or intimate groups as well as social classes. His buying decisions are not totally

governed by utility; he has a desire to emulate, follow and fit in with his immediate environment.

5. The Nicosia Model: In recent years, some efforts have been made by marketing scholars to

build buyer behavior models totally from the marketing man’s standpoint. The Nicosia model and

the Howard and Sheth model are two important models in this category. Both of them belong to

the category called the systems model, where the human being is analyzed as a system with

stimuli as the input to the system and behavior as the output of the system. Francesco Nicosia,

an expert in consumer motivation and behavior put forward his model of buyer behavior in 1966.

The model tries to establish the linkages between a firm and its consumer – how the activities of

the firm influence the consumer and result in his decision to buy. The messages from the firm first

influence the pre­disposition of the consumer towards the product. Depending on the situation,

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he develops a certain attitude towards the product. It may lead to a search for the product or an

evaluation of the product. If these steps have a positive impact on him, it may result in a decision

to buy. This is the sum and substance of the ‘activity explanations’ in the Nicosia Model. The

Nicosia Model groups these activities into four basic fields. Field one has two sub­fields the

firm’s attributes and the consumer’s attributes. An advertising message from the firm reaches the

consumer’s attributes. Depending on the way the message is received by the consumer, a certain

attribute may develop, and this becomes the input for Field Two. Field Two is the area of search

and evaluation of the advertised product and other alternatives. If this process results in a

motivation to buy, it becomes the input for Field Three. Field Three consists of the act of

purchase. And Field Four consists of the use of the purchased item.

Terminal Questions

1. Explain the characteristics that affect consumer behavior.

2. Discuss the types of consumer buyer behavior with the help of Henry Assael model.

3. Explain the consumer decision making process.

4. Discuss the buyer decision strategies for new products.

5. Write a note on buying motives

Answers to Self Assessment Questions Self Assessment Questions 1

1. Culture

2. 200,000 to 500,000

3. Selective attention

4. Few difference between the brands and high involvement

5. Perception

Self Assessment Questions 2

1. Commercial sources

2. Evaluation

3. Laggards

4. 13.5%

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5. Post purchase Answer to Terminal Questions

1. Refer 5.2

2. Refer 5.3

3. Refer5.4

4. Refer 5.5

5. Refer 5.6