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Topic: Howard Sheth Model

The Howard-Sheth model attempts to explain complex consumer decision making when information is incomplete. It suggests three levels of decision making: extensive problem solving when a consumer has no brand information or preferences; limited problem solving when some comparative brand information is sought; and habitual response behavior when a consumer knows brands well. The model includes four variables that influence the decision process: inputs like marketing communications and social influences; perceptual and learning constructs involving psychological decision making; outputs like preferences and intentions; and exogenous variables like importance of purchase and time pressure.
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87% found this document useful (15 votes)
15K views

Topic: Howard Sheth Model

The Howard-Sheth model attempts to explain complex consumer decision making when information is incomplete. It suggests three levels of decision making: extensive problem solving when a consumer has no brand information or preferences; limited problem solving when some comparative brand information is sought; and habitual response behavior when a consumer knows brands well. The model includes four variables that influence the decision process: inputs like marketing communications and social influences; perceptual and learning constructs involving psychological decision making; outputs like preferences and intentions; and exogenous variables like importance of purchase and time pressure.
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Topic:-Howard-sheth model

Presented by:
Anil kumar.R(08M001)
Arun kumar(08M002)
Bhargav.B(08M003)
Chandra shekar.T (08M004)
 Steps in consumer decision making model:-
1) Need recognition
2) search for information
3) Alternatives
4) Evaluation
5) Purchase
6) Post purchase evaluation
 There are three important models which explain
consumer decision making
 Howard-Sheth model of buying behavior
 The Nicosia model.
 The Engel-Blackwell-Miniard (EBM) model.
 The Howard-Sheth model of buying behavior
attempts to explain the complexity of the
consumer decision making process in case of
incomplete information.

 This model suggests three levels of decision


making
A) Extensive problem solving.
B) limited problem solving.
C) Habitual response behavior.
 At this level the consumer does not have any
basic information or knowledge about the brand
and he does not have any preferences for any
product.

 In this situation, the consumer will seek


information about all the different brands in the
market before purchasing.
 This situation exists for consumers who have
little knowledge about the market, or partial
knowledge about what they want to purchase.

 In order to arrive at a brand preference some


comparative brand information is sought.
 In this level the consumer knows very well about the
different brands and he can differentiate between the
different characteristics of each product.
 According to the Howard-Sheth model there are four major
sets of variables:
 Inputs.
 Perceptual and Learning Constructs
 Outputs
 Exogenous(External) variables
 INPUTS:- These input variables consist of three
distinct types of information sources in the
consumer’s environment.

 Significative:- Information furnishes physical brand


characteristics such as
Quality,price,distinctive,service,availability.

 Symbolic:-verbal or visual product characteristics


such as Quality,price,distinctive,service,availability.

 consumer’s social environment:- family, reference


group, and social class.
 Perceptual and Learning Constructs:-
It deals with the
psychological variables involved when the
consumer is making a decision.
 How the consumer receives and understands the
information from the input s.
 consumers goals, information about brands,
criteria for evaluation alternatives, preferences
and buying intentions are all included.
 Outputs:-
The outputs are the results of the perceptual and learning
variables and how the consumers will response to these variables .
 Exogenous(External) variables:-
some relevant exogenous variables include

 The importance of the purchase,


 Consumer personality traits,
 Religion, and
 Time pressure.

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