AR VTU MBA E-NOTES

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.