M ODELS OF CONSUMER BEHAVIOR

The consumer behaviour is highly complex, especially as throughout the whole consumer decision making process consumer is exposed to countless inputs and is influenced by various factors which is a reason why it is extremely difficult to uncover.

Over the decades various models attempting to explaining and simplify the consumer behaviour has been created. In this subchapter both selected traditional and contemporary consumer behaviour models will be described. While the traditional models attribute the decision making to individuals subconscious and emotions, the contemporary models focus primary on intentional decision-buying process of a consumer. The traditional models will be represented by the economic model, psychological models and sociological model. Out of the contemporary models, the following will be discussed: Howard Sheth model, Nicosia, Engel – Kollat – Mirand model.

1.2.1. Traditional models

Economic model

The economic model is sometimes also referred to as rational model. Because the model suggests that the behavior of the consumer behaves is utterly rational. The consumer selects the most suitable economic good, based on individual’s income, price of the good, individual’s budget constraints, marginal utility and individual’s indifference curves. This model does not take into take into consideration: emotions, social and psychological factors. Additionally, it is conditioned by consumer having complete information and being able to develop decision algorithm. While the consumer might be able to develop decision algorithm, individual rarely have complete information. (Koudelka, 2010) Lack of complete information and the fact, that emotions, psychological and social factors are not considered represent biggest weaknesses of this model. On the other hand, the economic model is yet relevant when examining consumer decision making process, especially if large monetary investment

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is involved. (Koudelka, 2018) An example could purchase of property, since such a decision involves large sum of money, decision of the individual during this process tends to be more rationally driven, than for example spur of the moment decision to buy a chocolate bar.

Psychological models

While the rational model did not consider the emotions or psychological factors when studying consumer behavior. Psychological models focus on psychological determination of consumer behavior, such as how the external stimulus is perceived by the consumer or individual’s unconscious motives. (Koudelka, 2006) Within the psychological models, we can observe two main directions: behavioristics model of consumer behavior and psychoanalytic model of the consumer behavior.

According to the behavioristic model the consumer behavior of the individual can’t be directly monitored and explained as it is unique inner mental process of the individual.

However, the model suggests the consumer behavior can be explained by monitoring observable responses to external stimulus of an individual. With observable response being for example the choice of a good. The external stimulus can be represented for example by distinct features of a good, or marketing communication. (Koudelka, 2010) Psychoanalytic models propose that the consumer behavior can be uncovered by decoding individual’s conscious and unconscious deep-rooted motives. As these deep-rooted motives are the key factors, driving individual’s consumer behavior.

(Koudelka, Spotřební chování, 2010) As the motives are both conscious and unconscious, individuals can lack explanation why they gravitated towards certain stimulus. This model is relevant especially if product has distinct image associated to it. (Needle, 2021) Example of such a good can be luxury sports cars. People associate such a product with wealth, power and success. If individual subconsciously long to achieve wealth, power or success he is likely to respond positively to external stimulus, such as image of image of luxury car. Due to the fact the external stimulus is representing his unconscious wants.

Sociological model

This model of consumer behavior suggests that the consumer buying-decision process and consumer behavior is determined by sense of belonging and identification with various social groups in individual’s life. Also, the importance of the particular social group to individual and individual’s role in given social group influences the individual’s consumer behavior. (Koudelka, 2010) The individual’s consumer behavior will be aligned with consumer behavior of social group the individual identifies with. (Needle, 2021) This model is highly relevant to majority of businesses as the social group doesn’t necessarily need to be determined only by age, education or income. The secondary social groups can be determined also by interest. Every businessowner should know, which interests their target group exhibit and create external stimulus that will appeal to the social group they wish to target.

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1.2.2. Contemporary models

The Engel Kollat Blackwell Model

Represents one of the most recognized models of consumer behavior. Throughout the time, the model was revised several time and current form of model is also known as Engel Blackwell Miniard model. The model suggest that the consumer decision-buying process consists of four or five components, based on the versions of the model.

Model also states that the decisions within the process are based on external and internal variables. The four components of the decision-buying process as proposed in Engel Kollat Blackwell model are:

Information input

Individual is exposed to numerous stimuluses, which might or might not capture his attention. These stimuluses, that initiate the need recognition and subsequently the consumer buying-decision process, can be of both marketing and non-marketing related nature. (Engel J. B., 1986) If the stimuluses aren’t sufficient for the individual to decide, he will start looking for further information. The search for further information can also occur if the alternative the individual arrived at based on the decision process is not satisfactory.

Information processing

Throughout this stage the consumer does process the initial stimulus into valuable and meaningful information. This is achieved by exposure, attention, comprehension, acceptance, and retention of the information provided by the stimulus. Additionally, during this stage, the information provided by stimulus is being retained in a long-term memory of the consumer. (Sahney)

Decision process stage

This stage can occur anytime since the moment when the consumer started the information processing. The decision process stage consists of five phases: recognition of the need, search for alternative, evaluation of found alternatives, purchase initiation and evaluation of the purchase.

Variables which influence the decision process

This component includes individual’s characteristics such as lifestyle, personality, values, social influences like culture and family and finally also situational influences, which can be represented by for example individual’s current financial condition. It is important to keep in mind, that all above-mentioned variables are ever present and influence all the stages of the consumer decision-buying process. Additionally, the Engel Kollat Blackwell model has been criticized for not explaining the influence of the variables sufficiently.

18 Nicosia Model

One of the first contemporary models, which aimed to explain customer behavior for marketing purposes is the Nicosia model published by Francesco M. Nicosia in 1966.

The model attempts to examine consumer behavior as a complex system. According to the Nicosia model the system can be broken down into four fields. Output of each field becomes an input for consecutive field.

Figure 1 – Scheme of Nicosia Model, Source: (Khan, 2006, p. 184)

Field One

First field consists of two subfields: firm’s attributes and customer’s attributes. Firm’s attributes also include attributes of the product. Individual is exposed to them and based on individual’s consumer attributes the attitude towards firm and product is formed. Model includes assumption, that all the attitudes towards firm and product are formed solely based on field one. Attitude is output of the firs field and input for the second field.

Field Two

Second field of the model deals with search related to the product and evaluation of its alternatives. Based on the information obtained, individual can either conclude he would like to buy the product or not. If the motivation to purchase persist, it becomes an input for third field.

Field Three

The third field described the act of product purchase, including decisions related to the purchase.

Field Four

The last field focuses on post-purchase behavior. Concretely product storage, consumption and experience individual formed based on the consumption. The experience is translated in form of feedback back to field one. (Khan, 2006) Individual’s consumer attributes do shift based on the consumption experience, which

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subsequently influences the attitude towards the firm in either positive or negative way.

Similarly as the Engel Kollat Blackwell Model, the Nicosia Model has been criticized for lack of focus on individual’s inner characteristics. Furthermore assumption, that all the attitudes towards firm are formed based on the field one and individual had none before does not seem realistic.

Howarth Seth Model

Third well know and recognized contemporary model of induvial consumer behavior is the Howarth Seth Model (Koudelka, Spotřební chování, 2010) The model showcases complexness of the consumer behavior process and can be viewed as slightly complicated. (Khan, 2006) Which demonstrates the scheme of the simplified model depicted in Figure 2 – Simplified scheme of Howarth-Seth model below.

Figure 2 – Simplified scheme of Howarth-Seth model, Source: (Khan, 2006, p. 178)

The model consists of four sets of variables:

• Inputs

• Perceptual and learning constructs

• Outputs

• Exogenous or external variables

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All four groups of the variables depend on each other and significantly influence consumer’s decision process. Despite its complicatedness, the Howarth Steth Model deals with the consumer behavior in exhaustive manner. (Khan, 2006)