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CB Models

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C.B.

MODELS
Introduction
 Consumer behavior refers to the study of individuals,
groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy their needs and desires.
 "Consumer Behaviour is the actions and decision processes of people
who purchases goods and services for personal consumption."
- Engel, Blackwell and Mansard
 "Consumer Behaviour is the decision process and physical activity,
which individuals engage in when evaluating, acquiring, using or
disposing of Goods and Services."
- Louden and Bitta
CONSUMER BEHAVIOUR MODELS
 Consumer Behaviour models help us to understand unique customer base
and more effectively attract, engage and retain them. These models are as
follows:-
1. Engel-Kollat-Blackwell Model
2. Nicosia Model
3. Howard Seth Model
4. Psychoanalytical Model
5. Sociological Model
6. Economic Model
Engel-Kollat-Blackwell Model

 The Engel-Kollat-Blackwell model is a comprehensive model designed to


explain how consumers make purchasing decisions.
 It outlines a five-stage decision process that consumers go through before
purchasing a product or service.
 These are:
a) Awareness
b) Information Processing
c) Evaluation
d) Purchasing Decision
e) Outcome Analysis
Engel-Kollat-Blackwell Model
The Objectives of the Engel-Kollat-Blackwell Model are as
follows:
 To understand how consumers recognize problems or needs
that lead to the initiation of the decision-making process.
 To identify the sources of information consumers utilize
during the information search stage.
 To analyze the criteria consumers use to evaluate alternatives
before making a purchase decision.
 To comprehend the factors that influence consumers' final
purchase decisions.
 To explore post-purchase behavior and its impact on future
decision-making processes.
NICOSIA MODELS

 The Nicosia model places emphasis on the business


first and the consumer second.
 The Nicosia Model, developed by Professor Francesco
Nicosia in 1966, delves into understanding consumer
decision-making processes. It emphasizes the
interaction between consumers and businesses
throughout the consumer's journey towards a
purchase.
 The business comprises of four-fields:
a. Business's and customer's characteristics
b. Search & Evaluation
c. Purchase Decision
Objectives of Nicosia Model
The objectives are as follows:
 To examine the communication process between marketers
and consumers at various stages of decision-making.
 To understand how feedback loops influence consumer
perceptions and attitudes towards products or brands.
 To analyze the role of consumer motivation in initiating and
processing marketing communication messages.
 To identify barriers to effective communication between
marketers and consumers and strategies to overcome them.
 To explore the role of personal and social factors in shaping
consumer responses to marketing messages.
Howard & Seth Model
• The Howard & Seth model, also known as the Howard-
Sheth model, proposes that consumer behavior is
influenced by a combination of psychological, social, and
economic factors. It emphasizes the importance of both
internal and external influences on consumer decision-
making.
• In this model, the customer put on a "problem-solving" hat
every step pf way-with different variables influencing the
course of the journey.
• According to this model, there are three successive levels
of decision making:
a. Extensive Problem-Solving
b. Limited Problem-Solving
c. Habitual Response Behaviour
OBJECTIVE OF HOWARD AND SETH
MODEL
 To understand the psychological factors that influence
consumer behavior, such as perception, learning, and
motivation.
 To examine how social influences, such as reference
groups and social class, impact consumer decision-
making.
 To analyze the role of economic factors, such as income
and price, in shaping consumer preferences and choices.
 To explore the interaction between psychological, social,
and economic factors in determining consumer behavior.
 To identify marketing strategies that leverage
psychological, social, and economic factors to influence
PSYCHOANALYTICAL Model

Sigmund Freud is the father of Psychoanalysis. The


Psychoanalytical model draws from his theories and
says that individual consumers have deep-rooted
motives, both conscious and unconscious, that drive
then to make them a purchase. These motives can be
hidden fears, supposed desires or personal longings.
Objectives of Psychoanalytical Model
 To uncover subconscious motivations and desires that drive consumer behavior.
 To understand how childhood experiences and unconscious conflicts shape
consumer preferences and attitudes.
 To analyze the role of emotions, fantasies, and symbols in influencing consumer
decision-making.
 To explore the impact of personality traits and psychodynamic factors on consumer
brand choices.
 To identify marketing strategies that resonate with consumers' deep-seated
psychological needs and desires.
Sociological Model
The sociological model focuses on how social factors,
such as culture, social class, reference groups, and
family, influence consumer behavior. It emphasizes the
impact of societal norms and values on individual
purchasing decisions.
This model can apply to most businesses, especially
those that create products and services relevant to
specific groups.
Objectives of Sociological Model
●To examine how cultural values and norms influence consumer preferences
and behavior.
●To understand the role of social class in shaping consumer aspirations,
lifestyles, and consumption patterns.
●To explore the influence of reference groups and social networks on consumer
decision-making.
●To analyze how family dynamics, including roles and relationships, impact
household purchasing decisions.
●To identify cross-cultural differences in consumer behavior and implications for
international marketing strategies.
Economic Model

The economic model views consumer behavior through the


lens of rational decision-making based on utility
maximization. It assumes that consumers make choices
that maximize their satisfaction or utility, given their
budget constraints and preferences.
Objective of Economic Model
● To understand the principles of rational decision-making based on utility
maximization.
● To analyze how consumers weigh the costs and benefits of alternative
options before making a purchase decision.
● To examine the impact of price elasticity and income on consumer
demand for goods and services.
● To explore consumer responses to changes in market conditions, such as
price fluctuations or income shocks.
● To identify strategies for pricing, promotion, and product differentiation
that align with consumer utility-maximizing behavior.
Conclusion

Key Takeaways:
Understanding Complexity: Consumer behavior is multi-faceted, influenced by psychological, social, and
economic factors.
Tailored Marketing Strategies: By dissecting these models, businesses can craft more targeted and resonant
marketing campaigns.
Building Connections: Deep insights into consumer behavior enable businesses to forge stronger
connections with their audience.
Driving Growth: Applying these insights empowers businesses to drive sustainable growth and stay ahead in
a competitive market.
Action Points: Let's leverage these takeaways to refine our marketing strategies, enhance consumer
engagement, and propel our businesses towards success.

Thank you for your attention and engagement. Let's continue to explore and innovate in the realm of
consumer behavior.

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