Consumer Behavior Models

In simple terms, a consumer behaviour model is a theoretical framework that explains why and how customers make purchasing decisions. By providing a predictable map of the customer journey up until the point of conversion, consumer behaviour models help businesses steer every stage of the buyer’s journey.

There are different models available, such as the Engel-Kollat-Blackwell (EKB) model, which outlines the five stages of a decision-making process that many consumers use before making a purchase. So this model is particularly useful for businesses operating in a competitive market. Researchers studying consumer behaviour may examine various factors, such as what people buy, when and how often they buy it, where they usually buy it, and why they buy it. For example, by analyzing antiperspirant sales, researchers may notice patterns in people’s purchasing behaviour.

Consumer behaviour models are theories that identify consumers’ behaviour patterns and explain why or how they make purchasing decisions. They aim to decode why consumers behave and make the buying decisions they do, with core concepts such as drives, stimuli, cues, responses and reinforcements being used to represent common behaviours observed among particular groups of people.

There are five consumer behaviour theories that marketers should be aware of:

Theory of Reasoned Action,

Engel Kollat Blackwell Model,

Motivation-Need Theory,

Hawkins Stern Impulse Buying

Theory of Buyer Behavior.

Consumer behaviour theory is the study of how people make decisions when they buy, helping businesses and marketers capitalise on these behaviours by understanding their motivations and needs

So for theories, we will talk about them later. So for now our major goal is Models only.

There are various models that may be used to acquire a knowledge of how people make purchasing decisions when it comes to studying consumer behavior. Let me show you a couple of the most popular ones!

Economists who attempted to explain why people buy what they do produced one standard set of behavior models. The Learning Model, Psychoanalytical Model, Sociological Model, and Economic Model are among these models. Individual learning, psychological motives, social influences, and economic incentives are just a few of the elements that influence consumer behavior.

The Engel-Kollat-Blackwell (EKB) model is another common model that details five stages that consumers normally go through before making a purchasing decision. So this strategy is especially beneficial to marketers and business development professionals who need to understand how to position their products/services in a market.

A variation on the EKB model is the Engel, Blackwell, and Miniard (EBM) model, which builds on the original framework with additional insights into how consumers process information and consider alternatives over time.

Of course, there are many other models out there, each with its own pros and cons, depending on the specific context.

But regardless of which model you use, the most important thing is to approach consumer behaviour with curiosity and empathy. So at the end of the day, we’re all just human beings trying to navigate a complex and ever-changing world of choices and opportunities.

By putting ourselves in the shoes of our customers and really listening to their needs and desires, we can build better products, provide better services, and create better experiences for everyone involved.

Traditional Consumer Behaviour Models

Learning Model,

Psychoanalytical Model,

Sociological Model

Economic Model.

Learning Model

The Learning Model proposes that past experiences, both positive and negative, influence customer behaviour, and that repeated responses to certain cues increase the likelihood of acquiring a specific product or service.

So in it, the consumers learn through trial and error, and the more they are disclosed to a product/brand, the more likely they are to remember it and prefer it over others, according to this concept.

The Learning Model of Consumer Behavior theorizes that buyer behaviour responds to the desire to satisfy needs and is based on four elements:

Motivation,

Cues,

Response

Reinforcement.

This model suggests that consumers learn by the trial-and-error process in which some purchase behaviours result in more favourable outcomes. It is also related to behavioural Learning theories such as Classical Conditioning, Stimulus Generalization, Stimulus Discrimination and Operant (Instrumental) Conditioning.

For Example: Assume a consumer is in the market for a new vehicle. Consumers may be initially drawn to a specific brand due to its advertising, but after test-driving several various models, they may finally choose a different brand based on their test-drive experience. So in this case, the consumer’s behaviour was influenced by their previous experiences and interactions with the different car brands.

Psychoanalytical Model

The Psychoanalytical Model suggests that consumer behaviour is influenced by unconscious desires and motivations. According to this model, consumers often make purchasing decisions based on emotions and desires that they may not even be aware of.

The psychoanalytical model is composed of 4 basic components:

Interpretation,

Transference Analysis,

Technical Neutrality,

Countertransference Analysis.

Freud divided human personality into three significant components: the id, ego, and superego.

According to Freud’s psychoanalytic theory, the id is the primitive and instinctual part of the mind that contains sexual and aggressive drives and hidden memories, the super-ego operates as a moral conscience, and the ego is the realistic part that mediates between the desires of the id and the super-ego.

The id drives our needs and desires, while the superego strives for morality and perfection. Sigmund Freud originated these concepts of the id, ego, and superego as three separate but interacting parts of the human personality.

Psychoanalysis also involves a healing situation with patients lying on a couch with the analyst seated behind out of the patient’s field of vision, as well as defence mechanisms and psychology theories such as psychosexual development

For example, a consumer may purchase a luxury handbag not just for its practical purposes but also because it makes them feel a sense of prestige or social status. In this case, the consumer’s behaviour is influenced by their unconscious desire for social validation.

Sociological Model:

Consumer behaviour is influenced by social and cultural factors such as peer pressure, cultural norms, and family values. According to this model, consumers make purchasing decisions based on the norms and values of the society or culture they belong to.

The social modelling theory includes 4 key factors:

Observation
Representation
Reinforcement
Motivation

Sociological models are used to explain why people behave as they do and typically involve three interacting components: the individual, the environment, and the behaviour.

Max Weber’s model of action is an example of a sociological model that includes elements such as:

Subjective meaning,

Value-rationality,

Affective states,

Traditionalism.

The Model of Change is a social psychology framework that includes elements such as goals, motivation, self-efficacy, and environmental influences.

The Economic Model

According to the Economic Model, rational decision-making controls customer behaviour, which is influenced by factors such as price, quality, and convenience.

Consumers make purchasing decisions based on the costs and advantages of a given product or service, according to this paradigm.

Economic models are theoretical or empirical structures that are used to depict economic processes and generate economic predictions.

As a result, they frequently include endogenous and exogenous variables or factors that vary inside the model. Appropriate economic models should be intelligent, competent predictors, and capable of explaining variable relationships.

For example, a consumer may opt for one brand of laundry detergent over another because it is less expensive and more widely available. In this instance, the consumer is influenced by their rational evaluation of the costs and benefits of the different options available.

Integrative methods

Integrative methods combine traditional and modern ways to provide a complete approach to problems, including family counselling, workplace, psychotherapy, and basic health care.

So these strategies highlight developing skills in information resource processing and merging biomedical evidence with experience-based evidence to provide an effective solution.

Howard-Sheth Model

The Howard-Sheth Model is an integrative model of consumer behaviour that combines economic, psychological, and marketing theories to explain how consumers make decisions.

It takes into account factors like learning, perception, motivation, and attitude, as well as external influences such as culture and social class.

The model proposes that consumer behaviour is influenced by three key components: input, process, and output.

The input component includes factors like marketing stimuli and environmental factors, while the process component refers to how consumers process and interpret this information. The output component encompasses consumer decisions and behaviours.

Engel-Blackwell-Kollat Model

It is another integrative model of consumer behaviour that attempts to describe the decision-making process. It suggests that when making a purchase, consumers go through a sequence of phases, including problem recognition, information search, alternative evaluation, buy choice, and post-purchase evaluation.

The model considers both internal/external elements that may have an impact on each of these processes. Such as personal and situational effects.

The Nicosia Model

It is a consumer behaviour integrative model that highlights the relevance of feedback loops in the decision-making process. It claims that 4 primary elements influence consumer behaviour:

Consumer’s field of experience,

Customer’s response to marketing stimuli,

The consumer’s decision-making process,

Feedback from the marketer.

According to the approach, marketers should engage in dialogue with customers in order to better understand their wants and preferences.

Howard-Sheth Model

The Howard-Sheth Model is an integrative model of consumer behaviour that combines economic, psychological, and marketing theories to explain how consumers make decisions.

So it takes into account factors like learning, perception, motivation, and attitude, as well as external influences such as culture and social class.

The model proposes that consumer behaviour is influenced by three key components: input, process, and output.

Engel-Blackwell-Kollat Model

It is another integrative model of consumer behaviour that attempts to describe the decision-making process. So simply, this suggests that when making a purchase, consumers go through a sequence of phases, including problem recognition, information search, alternative evaluation, buy choice, and post-purchase evaluation.

The model considers both internal/external elements that may have an impact on each of these processes. Such as personal and situational effects.

The Nicosia Model

It is a consumer behaviour integrative model that highlights the relevance of feedback loops in the decision-making process. It claims that four primary elements influence consumer behaviour: the consumer’s field of experience, the customer’s response to marketing stimuli, the consumer’s decision-making process, and feedback from the marketer.

According to the approach, marketers should engage in dialogue with customers in order to better understand their wants and preferences.

Key Takeaways

Each model focuses on different aspects of consumer behaviour, such as income and substitution effects, psychological needs, inputs and outputs, sensory and social stimuli, and external factors.

The Family Decision-Making Model looks at the roles of family members in buying decisions and their influence.

Consumer Behaviour Models look at different aspects such as information processing, joint decision-making, and post-purchase behaviour.

Factors such as product attributes, predisposition and attitude towards the product, consumer research and evaluation, and post-purchase behaviour are also taken into account

Quiz

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Consumer Behavior Models