Contemporary models of consumer behaviour

CONTEMPORARY MODELS OF
CONSUMER BEHAVIOUR
Prepared by:
Saurabh mishra – CUHP19MBA94
Shabbu Devi – CUHP19MBA95
Shubham Sharma – CUHP19MBA 96
Sparsh Sharma – CUHP19MBA 97
Vinay Dhiman – CUHP19MBA 98
Yatin Bhardwaj – CUHPMBA99

THE NICOSIA MODEL
 This model was developed by Francesco Nicosia, an expert in consumer
motivation and Behaviour.
 The Nicosia Model attempts to explain buying behaviour by establishing a link
between the organization and its prospective customer, it analysis human being
as a system with stimuli as the input to the system and the human behaviour as
the output of the system.
 The model has four basic areas:
i. Field one has two subareas – consumers attribute and the firm’s attribute.
ii. The second area is related to the search and evaluation undertaken by
consumer.
iii. The third area explains how actually consumer buys the product.
iv. The fourth area is related to the uses of purchased item.

Evaluation of the Model and its Limitations:
The model can be said to be the pioneering efforts By Nicosia to Identify the
Decision making process carried out by customers. The model has viewed
consumers to be involved in an active role and that they move from general
product knowledge towards specific brand information , while being involved
in a purchase behaviour.

Limitations of the model:
1) Incomplete in a number of aspects , including the influences
and inter relationships among the consumer attributes.
2) A number of assumptions has been made that question the
validity of the model, for instance:
I. What type of customers are we talking about?
II. Is this for a new product?
III. The company and the consumers have an existing
relationship ? what type?
IV. Is this the first exchange the consumer has had with the
producer?

THE ENGEL – KOLLAT – BLACKWELL MODEL
 The Engel – Kollat – Blackwell model talks of consumer behaviour as a
decision making process in the form of five steps ( activities ) and other
related variables which occur over a period of time.
 Apart from these basic core steps , the model also includes a number of other
variables grouped into five categories.
 Information Input.
 Information Processing.
 Product – brand evaluation.
 General motivating influences.
 Internationalized environmental influences.

Evaluation and limitations :
1)The Model has emphasized on the conscious decision making
process adopted by consumer.
2)The model is easy to understand and flexible.
3)This model recognizes that a consumer may not go through all
the steps always . This is because of the repeat purchases the
consumer may bypass some of steps.
Limitation:
One limitation of this model is the inclusion of environmental variables and
general motivating influences but not specifying the effect of these on the
buyers behaviour.

ENGEL-BLACKWELL-MINIARD (EBM) MODEL
 This model is a development of the original Engel , Kollat and Blackwell
model first introduced in 1968.It shares certain things with the Howard –
Sheth model .Both have similar scope and level of complexity.
 The Engel – Blackwell – Miniard (EBM) model basically focuses on the
decision process and is augmented with inputs from information
processing and others influencing factors also.
 This model have distinctive four sections , namely :
1) Input.
2) Information Processing.
3) Decision Process.
4) Variables influencing decision Process.

Evaluation of the model :
1) The EBM model is very flexible and more coherent than Howard
sheth model of consumer behaviour.
2) It also includes human processes like memory , information ,
processing , and considers both the positive and negative
purchase outcomes.
Limitations:
 The model has been criticized on two aspects:
i. Firstly, on the somewhat vague definition of the role of the influencing
variables.
ii. Secondly , it is felt that the separation of information search and alternative
evaluation is somewhat artificial.

WEBSTER AND WIND MODEL OF
ORGANISATIONAL BUYING
 This is a complex model developed by F.E. WEBSTER and Y. WIND , as an attempt
to explain the multifaceted nature of organizational buying behaviour.
 This model refers to the environmental , organizational , interpersonal and
individual buying determinants which can influence the organizational buying
decisions.
 The environmental determinants comprises of physical and technological factors ,
economic, political , legal and sociocultural environmental factors.
 The organizational determinants includes people , structure , technology , task.
 An individual may be involved in organizational buying these roles could be of:
Users , Influencers , Buyers , deciders , Gatekeepers.

Evaluation of the model:
This model is a valuable contribution and helps in revealing
the whole range direct and indirect influences , which affect
the organizational buying behaviour .
Limitation:
This model provides only a static representation of a dynamic situation.

Case Study
BOOMING BATTER BUISNESS

Mrs Gomathy Moorthy arrived in Mumbai (then Bombay) around 37 years ago, as a young bride along with a “wet grinder”
gift from home, which was considered to be a status symbol in south India then. While her husband was engaged in the
restaurant business , she slowly settled down in the south Indian area of the Matunga east area in MUMBAI and was kept
busy at home by making Idlis and dosas for her family.
Around 1988, when the family facing financial problems , a family friend , Navin bhai suggested that if Gomathy Moorthy
could make and pack idli , he would sell them to many of the Gujrati traders who worked at the city’s wholesale markets.
She sold the packets to Navin bhai for RS 3 and made a decent profit on that, At that time boiled rice cost RS 3 a kilo and
Urad dal Rs 7 a kilo and a good coconut was available for just one rupee. Slowly the business starting growing . Her
husband who joined the business by then started helping her to make 200 packets a day form their 200 square feet house,
would take to sell in the central railway canteen. They started getting bigger orders and when the demand increased to over
1,000 idlis . Mrs Moorthy realized that she needs a larger grinder . under a women help scheme she got a Rs 3000 interest
free loan from syndicate bank , which she used to have a machine that could produce 50 kilos of batter.
Around 1996 , when Mrs. Moorthy‘s husband died . She started catering to many more customer requests and in this way
she made RS 20 lakh in two years.
Mrs Moorthy took a break to go and spend some time with her daughter in the US . When she came back her catering
business was in pieces due to many problems . That is when she started looking at the business seriously. So, Mrs Moorthy
and her son Venkatesh, who had joined his mother in running the business, would focus on supplying khiru (the term used
for batter in Mumbai ) .The USP used by Mrs Moorthy was convenience and quality especially because no preservatives or
baking soda was being used . she uses just pure rice , dal and water.
Mrs Moorthy reputation is so good that she has customers coming from across the city to buy from her. At times
customers even buy batter to take it to the UK or US or Hongkong . Through they are getting makes many offers to expand
their business, they maintain their reputation and the quality of their ”product” .
Competition is from other local producers (Jain & lyer amongst other small players in Matunga) and a big threat from
especially a large retailer magnet who has a big hypermarket set up across 60,000 square feet in Matunga west. Magnet
sells around 400 kgs of batter in a day. They produce different type of batter for idlis, Dosas , Vada's and Dhoklas which has
proved to be useful differentiation point for Magnet.
Thus the batter business seems to be booming and fitting nearly into the changing lifestyles of customers and the
capacities of those who produce it.
source : Vikram Doctor & Nandini Ragavendra
The Economic Times , Bangalore, March 5 ,2006
,

Questions :
1) Which model according to you is being informally used when thinking about the target
market in above case? Why?.
2) Which Variables can be said to be the major influences on consumer behaviour in above
case?
3) How will you use Howard- Sheth Model to explain routinised brand choice behaviour of
consumers in the above case?

References:
 Consumer Behaviour IN INDIAN PERSPECTIVE by SUJA R. NAIR
(2010th edition)
 Kumar, S. Ramesh (2013). Case Studies in Consumer Behaviour,
Pearson: New Delhi.
 https://www.slideshare.net/VikramNani/models-of-consumer-
behaviour-27197582.

Contemporary models of consumer behaviour

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Contemporary models of consumer behaviour