MBA VTU Consumer behavior Notes/ Handouts

ENGEL-KOLLAT-BLACKWELL MODEL

This model was created to describe the increasing, fast-growing body of knowledge concerning consumer behavior. This model, like in other models, has gone through many revisions to improve its descriptive ability of the basic relationships between components and sub-components, this model consists also of four stages;

First stage: decision-process stages

The central focus of the model is on five basic decision-process stages: Problem recognition, search for alternatives, alternate evaluation (during which beliefs may lead to the formation of attitudes, which in turn may result in a purchase intention) purchase, and outcomes. But it is not necessary for every consumer to go through all these stages; it depends on whether it is an extended or a routine problem-solving behavior.

Second stage: Information input

 At this stage the consumer gets information from marketing and non-marketing sources, which also influence the problem recognition stage of the decision-making process. If the consumer still does not arrive to a specific decision, the search for external information will be activated in order to arrive to a choice or in some cases if the consumer experience dissonance because the selected alternative is less satisfactory than expected.

Third stage: information processing

This stage consists of the consumer’s exposure, attention, perception, acceptance, and retention of incoming information. The consumer must first be exposed to the message, allocate space for this information, interpret the stimuli, and retain the message by transferring the input to long-term memory.

Fourth stage: variables influencing the decision process

This stage consists of individual and environmental influences that affect all five stages of the decision process. Individual characteristics include motives, values, lifestyle, and personality; the social influences are culture, reference groups, and family. Situational influences, such as a consumer’s financial condition, also influence the decision process.

Howard Sheth Model

The model relies on four major components –

STIMULUS INPUTS, 
HYPOTHETICAL CONSTRUCTS, 
RESPONSE OUTPUTS, 
EXOGENOUS VARIABLES,

Bibliography:
Watch more at http://www.authorstream.com/Presentation/anupamkr-677517-howard-sheth-model-of-consumer-behaviour/

NICOSIA MODEL

This model focuses on the relationship between the firm and its potential consumers. The firm communicates with consumers through its marketing messages (advertising), and the consumers react to these messages by purchasing response. Looking to the model we will find that the firm and the consumer are connected with each other, the firm tries to influence the consumer and the consumer is influencing the firm by his decision.  

The Nicosia model is divided into four major fields:
Field 1: The consumer attitude based on the firms’ messages.
The first field is divided into two subfields.
The first subfield deals with the firm’s marketing environment and communication efforts that affect consumer attitudes, the competitive environment, and characteristics of target market. Subfield two specifies the consumer characteristics e.g., experience, personality, and how he perceives the promotional idea toward the product in this stage the consumer forms his attitude toward the firm’s product based on his interpretation of the message.    

 Field 2: search and evaluation   

The consumer will start to search for other firm’s brand and evaluate the firm’s brand in comparison with alternate brands. In this case the firm motivates the consumer to purchase its brands.     

 Field 3: The act of the purchase
The result of motivation will arise by convincing the consumer to purchase the firm products from a specific retailer.

Field 4: Feed back 

This model analyses the feedback of both the firm and the consumer after purchasing the product. The firm will benefit from its sales data as a feedback, and the consumer will use his experience with the product affects the individual’s attitude and predisposition’s concerning future messages from the firm.

Input-Process-Output Model

Input stage:
Influences customer's recognition of product need.
Two major sources of information:
1. Company's marketing effort
2. External social influences of the customer.
Affects what the customer purchase and how they use, what they buy.

Process stage:
Focuses on how Consumers make decisions.
Psychological factors inheret in each individual affect how the external inputs influence the consumer's Need recognition, Pre-purchase search for information, and evaluation of alternatives. This in turns affects the consumer's existing Psychological Attributes.

Output stage:
Consists of two closely related Post-decision Activities.
1. Purchase behavior.
2. Post Purchase evaluation.

BENEFITS OF CONSUMERISM - Consumer Behaviour

Bibliography:
Study more at https://vittana.org/15-consumerism-pros-and-cons

Rights and Responsibilities of consumers in India - Consumerism

Bibliography:
Study more at: http://www.yourarticlelibrary.com/consumers/what-are-the-consumers-rights-under-section-6-of-the-consumer-protection-act/1135

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