Consumer Behaviour Model: Most Important Types Explained

Understanding consumer behaviour is crucial for businesses to thrive in today's competitive market. A consumer behaviour model is a vital tool for businesses seeking to understand and predict the purchasing decisions of their target audience.

By examining the various factors that influence consumer behaviour, such as personal preferences, social influences, and economic considerations, companies can gain valuable insights into customer needs and desires. This knowledge allows businesses to customize marketing strategies and product offerings to effectively meet the expectations of their customers.

Let’s understand the importance of understanding consumer behaviour, the types of consumer behaviour models, and how to select a model best suited for your business needs.

Importance of Understanding Consumer Decisions

Consumer decisions play a pivotal role in shaping businesses' success or failure. Companies that grasp consumer behavior patterns can tailor their products and services to meet the specific needs and desires of their target audience. By understanding consumer choices and preferences, businesses can effectively position themselves in the market, optimizing their marketing efforts for maximum impact, leading to increased sales and customer loyalty.

By studying shopping decisions and consumer feedback, companies can identify gaps in the market and develop products that address unmet needs. This approach leads to the creation of innovative solutions that cater directly to consumer preferences, increasing the likelihood of product success.

Understanding consumer behaviour enables businesses to anticipate trends and stay ahead of competitors by introducing products that align with evolving consumer demands.

Traditional vs Contemporary Consumer Behaviour Model

The key principles underlying a consumer behaviour model revolve around understanding consumers' motivations, perceptions, attitudes, and decision-making processes. These models aim to provide a framework for businesses to predict and influence consumer behavior effectively.

Consumer behaviour models have evolved significantly over the years, reflecting the changing dynamics of consumer psychology. Initially focused on rational decision-making, these models now incorporate emotional and social factors.

Here's a breakdown of the key differences between traditional and contemporary consumer behavior models:

Criteria	Traditional Consumer Behaviour Model	Contemporary Consumer Behaviour Model
Approach (Narrow vs Holistic)	These models focus on rational decision-making factors, excluding emotional or external triggers.	These models take a more holistic approach, considering internal factors alongside external influences like social media, technology, and the overall shopping experience.
Factors emphasizing decision-making	Traditional models emphasize factors like motivation, perception, learning, and economic influences (price, income) on purchase decisions.	Contemporary models acknowledge the role of emotions, brand experiences, and social influence in consumer purchase decisions.
Type of Decision-Making	They often portray a linear decision-making journey, with clear stages like problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.	They recognize that the consumer decision journey can be non-linear, with consumers switching between stages or revisiting them throughout the process.
Types	Economic Model, Learning Model, Psychoanalytic Model, etc.	Engel- Kollat-Blackwell (EKB) Model, Black Box Model, Howard-Sheth Model, etc.

Let’s understand some common consumer behaviour models in detail.

Traditional Models of Consumer Behaviour

Here's a list of traditional models of consumer behavior:

Learning Model
Psychoanalytic Model
Sociological Model
Economic Model

Read ahead to understand these models in detail.

Learning Model of Consumer Behaviour

The learning model of consumer behaviour is based on the idea that consumer behaviour is learned through interactions with the environment and experiences. By understanding these theories, marketers can tailor their strategies to effectively appeal to consumers.

Underlying Concepts of Learning Model

The learning model borrows the concept of needs from psychologist Abraham Maslow's hierarchy of needs and applies it to consumer decision-making. It highlights how our experiences in fulfilling these needs shape our buying behavior, i.e., individuals are most likely to fulfill their basic needs before psychological and self-fulfillment needs.

Conditioning is another fundamental concept in the learning model, where individuals associate certain stimuli with particular responses.

Classical conditioning suggests individuals develop associations between stimuli and responses through repeated exposure. For example, when consumers repeatedly see a brand associated with positive emotions or experiences, they may develop a preference for that brand.
Operant conditioning focuses on the consequences of behavior. Consumers learn to make choices based on the rewards and punishments they receive for their actions. This theory highlights the importance of reinforcement in shaping consumer preferences.

Learn by example: Shivangi, a busy professional, needs healthy meals (need-driven purchase). She tries a meal delivery service (trial & error). The service is convenient and delicious (reinforcement). Shivangi continues using it (habit formation) and might recommend it to others (positive experience shapes future choices).

Suppose Shivangi had a negative experience with the service (e.g., inconsistent quality, delivery issues). In that case, she might discontinue and try another service or revert to traditional grocery shopping (conditioning through negative reinforcement).

Psychoanalytical Model of Consumer Behaviour

The psychoanalytical model delves into the subconscious motives that drive consumer behaviour.

It emphasizes the hidden desires and impulses that influence purchasing decisions. Consumers may not always be aware of these psychological factors, but they shape preferences and choices. Understanding these underlying motivations is key to predicting consumer actions.

Underlying Concepts of Psychoanalytical Model

Sigmund Freud, the pioneer of psychoanalysis, made significant contributions to understanding consumer behavior through his work on the unconscious mind. His theories and concepts, such as the id, ego, and superego, highlighted the impact of early experiences and repressed emotions on decision-making processes.

Emotional Factors: The psychoanalytical model stresses how the feelings of desire, fear, or nostalgia can heavily influence buying decisions, often overshadowing rational considerations.

Marketers leverage emotional appeals in advertising to create connections with consumers. By tapping into these emotional factors, brands can forge strong bonds with their target audience and drive purchase intent effectively.

Learn by Example: Mohit associates luxury watches with his deceased grandfather (symbolism). He feels a deep, unconscious need to connect (emotional connection) and might choose a watch brand that reflects his grandfather's image (brand choice influenced by the subconscious). This purchase fulfils an emotional need masked by justifications like quality (rationalization).

Sociological Model of Consumer Behaviour

Consumer behaviour is significantly influenced by social factors such as family, friends, and society at large. These influences shape individuals' preferences, choices, and purchasing decisions.

Underlying Concepts of the Sociological Model

Reference groups: A reference group is a group of people whose behaviors and values individuals observe and align with when making decisions. Individuals often look to these groups for guidance on what to buy, how to dress, or where to travel. By observing the behaviors of reference groups, consumers align their choices with group norms and values.

Social Class: Consumers from different social classes exhibit distinct purchasing behaviors based on their income levels, education, and occupation. Marketers segment consumers based on social class characteristics to tailor products and messaging that resonate with each group's unique needs and preferences.

Learn by Example: Consider Maya, a fitness enthusiast. The sociological model suggests her social circle influences her gym clothes choices:

Group Norms: At her gym, a certain brand of yoga wear is popular among the instructors and other members Maya admires (reference group influence).
Sense of Belonging: By wearing this brand, Maya feels a sense of belonging and connection to the "in-crowd" at the gym (social acceptance).
Status Symbol: The brand might be seen as a status symbol within the fitness community (status-seeking through product choice).
Balancing Affordability and Status: If she can't afford the most expensive luxury brands her gym peers wear, Maya might seek affordable brands that offer a similar minimalist aesthetic (balancing social acceptance with social class).

Economic Model of Consumer Behaviour

The economic model of consumer behaviour assumes that consumers aim to maximize their satisfaction or utility by making choices that provide them with the most value. It takes into account factors such as income, prices of goods and services, preferences, and constraints to predict how consumers will behave in the marketplace.

Essentially, the economic model portrays consumers as calculating individuals who make well-informed decisions based on logic and a desire to get the most "bang for their buck."

Underlying Concepts of Economic Model

Price of Products & Income of Consumers: The price of a product or service plays a crucial role in the decision-making process. Consumers are generally expected to choose the option that offers the most value for their money. A consumer's income level directly impacts their purchasing power and the types of goods and services they can afford.

Substitution Effect: When the price of a good increases, the substitution effect suggests consumers will be more likely to turn to alternatives that fulfil a similar need but are now relatively cheaper.

Assumptions of Rationality & Homogeneity: The model assumes consumers have perfect information about all available options and make logical choices based on price and utility. It also treats all consumers as the same, neglecting individual preferences, values, and emotions that influence buying decisions.

Learn by Example: Imagine Shivani has INR 200 to spend on lunch. She can choose between a healthy salad for INR 120 or a fast-food burger for INR 80. According to the economic model, if Shivani prioritizes getting the most food for her money, she would likely choose the burger combo (lower price, more perceived quantity). However, the model wouldn't consider factors like Shivani's health goals, personal preferences, or brand image that might influence her final decision.

Important! Even though the economic model is fairly simple to understand, it’s also fairly limiting in its scope - ignoring the role that factors other than price and income play in influencing a consumer’s purchase decision.

Contemporary Models of Consumer Behaviour

Contemporary models of consumer behaviour offer a more nuanced view of consumer decision-making compared to traditional models. Here's a list of some key contemporary models:

Engel-Kollat-Blackwell (EKB) Model
Black Box Model
Howard-Sheth Model
Hawkins-Stern Model

Apart from these is the Webster and Wind Model, which focuses on organizational buying behaviour, not individual consumers. Additionally, we have the Nicosia Model, which is sometimes categorized as a traditional consumer behaviour model.

Read ahead to understand these models in detail.

EKB Model of Consumer Behaviour

In the Engel-Kollat-Blackwell consumer behaviour model, decision-making is a complex process influenced by both internal and external factors. The model tracks a consumer's journey through several stages:

Need Recognition: Consumers first recognize a need or problem that triggers the decision-making cycle.
Information Search: Consumers embark on an information search to gather relevant data to address their needs. They may consult various sources, such as friends, family, online reviews, or expert opinions, to gather insights about available options.
Evaluation of Alternatives: Consumers then evaluate different alternatives based on criteria such as price, quality, brand reputation, and personal preferences. This stage plays a pivotal role in shaping the final purchase decision.
Purchase Decision: After considering these factors, they make a purchase decision
Outcome Evaluation: Finally, post-purchase evaluation occurs when consumers assess their satisfaction with the chosen product or service. This stage influences future buying behavior and brand loyalty among consumers.

This comprehensive model highlights the internal (thoughts, feelings) and external (social influence, marketing) factors shaping consumer choices.

Learn by Example:

Need Recognition: I need a new phone (internal/learned need).
Information Search: Research phone options online and ask friends (internal/external sources).
Evaluation of Alternatives: Compare features, prices, and brands of different phones.
Purchase Decision: Decide which phone to buy based on evaluation.
Outcome Evaluation: See if the new phone meets my needs (positive or negative experience).

Black Box Model of Consumer Behaviour (Stimulus-Response Consumer Behaviour Model)

The black box consumer behaviour model focuses on understanding the internal processes of consumers when making purchasing decisions. Marketers utilize this model to comprehend how consumers interpret various marketing stimuli.

It considers inputs (stimuli), the black box (decision-making process), and outputs (purchase decisions)”

Stimulus: Consumers are exposed to various external marketing stimuli (ads, promotions) and internal stimuli (needs, wants). At this stage, factors like product quality, price, and advertising messages influence consumer perceptions.
Black Box: The internal decision-making process of the consumer is treated as a "black box" – we can't directly observe their thoughts and feelings. The black box represents the complex cognitive and emotional processes that affect consumers' buying decisions.
Response: The outcome of this internal process is a consumer response, which could be a purchase, a positive/negative brand perception, or no action at all. This is the consumer's actual purchase behavior based on their internal evaluations.

Think of it this way: Marketers send out messages (stimulus) hoping to influence consumers (black box), but they can only measure the resulting actions (response) to understand how effective their messages were.

Learn by Example: Imagine a company launches a new ad campaign for a healthy breakfast cereal aimed at busy young professionals (stimulus).

Black Box: The marketers can't see inside the minds of the viewers (consumers)—they don't know if consumers find the ad appealing, if it reminds them of their hectic mornings, or if they even eat breakfast at all.
Response: However, the company can track some responses:
- Increased sales: This suggests the ad campaign might have influenced viewers to buy the cereal.
- Website traffic: If more people visit the company's website after seeing the ad, it might indicate some interest generated by the campaign.
- Social media mentions: If people discuss the ad online, positive or negative, it's a response to the stimulus.

By analyzing these responses, the company can better understand how the Black Box (consumers' minds) reacted to the ad campaign (stimulus). It doesn't tell the whole story, but it provides valuable insights for future marketing efforts.

Howard Sheth Model of Consumer Behaviour

Developed by John Howard and Jagdish Sheth, the Howard-Sheth Consumer Behaviour Model outlines three levels of decision-making depending on a consumer’s familiarity with the product or purchasing decision.

Extensive Problem Solving: This level occurs when consumers encounter a new or complex purchasing decision. They engage in extensive information searches, evaluate multiple alternatives, and carefully weigh various criteria before making a decision. This level often involves high-involvement products or services.
Limited Problem Solving: At this level, consumers face a moderately complex decision but have some prior experience or familiarity with the product category. They conduct a limited search for information, evaluate fewer alternatives, and rely more on simplified decision rules or heuristics. This level is common for routine or moderately important purchases.
Routine Response Behavior: This level occurs when consumers face familiar, low-risk decisions with minimal consideration. They typically exhibit habitual buying behavior, making quick and automatic choices based on past experience or brand loyalty. This level is prevalent for low-involvement products or everyday items.

The Howard-Sheth Model highlights how the level of decision-making complexity influences the consumer's information processing, evaluation of alternatives, and, ultimately, their purchasing behaviour.

Learn by Example:

Limited Problem Solving: Purchasing a New Smartphone: In this scenario, the consumer likely has some experience with smartphones but is considering upgrading to a new model. They will conduct limited research, compare a few brands, and make a decision based on factors like price, features, and brand reputation.
Extensive Problem Solving: Purchasing a New Home: The purchase of a new home typically involves extensive problem-solving. This decision is often high-involvement and requires significant consideration due to the financial implications and long-term commitment.

Hawkins-Stern Model of Consumer Behavior

The Hawkins-Stern Model dives into the world of impulse buying, explaining how and why consumers make unplanned purchases. Developed by Hawkins Stern in 1962, this consumer behaviour model highlights the role of external factors that trigger these impulsive decisions.

Here's a breakdown of the key concepts:

Focus on Impulse Buying: Unlike other models that assume rational decision-making, the Hawkins-Stern Model emphasizes impulsive purchases made on a whim, often influenced by emotions or external cues.
Two Main Influences: The model identifies two main factors affecting impulse buying:
- Product Characteristics: Products with high perceived value, limited availability, or trending features are more likely to spark impulsive purchases.
- Consumer Susceptibility: A consumer's internal state also plays a role. Hunger, thirst, excitement, or even boredom can make them more susceptible to impulsive buying.
Four Types of Impulse Buying: Hawkins Stern further categorized impulse buying into four types:
- Pure Impulse Buying: This is a completely unplanned purchase triggered by a sudden desire or temptation. For example, seeing a display of new chocolate bars at the checkout counter might lead to an immediate purchase without prior consideration.
- Reminder Impulse Buying: Seeing a product jogs the memory of a forgotten need, leading to an unplanned purchase. Think of hot dog buns displayed near the meat counter. Or, seeing a toothbrush display might remind a consumer that they need a replacement, which could lead to an unplanned purchase.
- Suggestion Impulse Buying: Exposure to a new, appealing product creates a sudden desire to own it, even without prior need. For example, a sales associate recommending a new perfume could trigger an impulse purchase.
- Planned Impulse Buying: This might seem like an oxymoron, but it refers to situations where consumers allow themselves to make unplanned purchases within a set budget, like treating themselves to a small item they see while shopping. For example, a person planning to buy groceries might impulsively add a new type of snack they haven't tried before.

Understanding the Hawkins-Stern Model helps businesses leverage these buying tendencies. By strategically placing products, using attractive displays, and creating a sense of urgency or scarcity, marketers can nudge consumers to make impulsive purchases.

Webster and Wind Model

The Webster and Wind Model is a foundational framework for understanding organizational buying behaviour. It posits that a complex interplay of factors influences a company's decision to purchase a product or service.

Key Components of the Model

The model identifies four primary sets of variables that impact organizational buying decisions:

Environmental Factors: External forces such as economic conditions, technology, political and legal regulations, competition, and customer demands significantly influence buying decisions.
Organizational Factors: Internal factors like company objectives, policies, procedures, organizational structure, and systems impact the buying process.
Interpersonal Factors: Relationships between individuals involved in the buying process, as well as their authority, status, and communication styles, influence decisions.
Individual Factors: Personal characteristics, motives, perceptions, and buying roles of individuals within the organization affect the buying decision.

Essentially, the Webster and Wind Model highlights the complex nature of organizational buying, emphasizing the interplay of various factors that shape purchase decisions. It provides a comprehensive foundation for understanding the dynamics involved in business-to-business (B2B) marketing.

Nicosia Model of Consumer Behaviour

The Nicosia Model is sometimes considered to be a traditional model. It’s an important consumer behaviour model to study. Developed by Francesco Nicosia in 1966, it focuses on the interaction between the consumer's attitudes and intentions toward a product or service and their actual behavior in the marketplace.

In other words, it draws on the interaction between marketing efforts and consumer decision-making. It outlines a series of stages a consumer goes through, influenced by both internal and external factors:

Transfer of Information: Consumers are exposed to marketing messages (ads, promotions) about products or services.
Evaluation Stage: Consumers consider factors like product features, price, and brand image, influenced by their internal needs and wants.
Disposition Stage: This stage reflects the consumer's attitude towards making a purchase, potentially influenced by marketing communication addressing concerns and highlighting benefits.
Action Stage: The consumer decides to buy or not.
Post-Purchase Evaluation: Consumers evaluate their satisfaction and might provide feedback (reviews), potentially influencing future marketing efforts.

The Nicosia Model suggests that consumer behavior is a complex process influenced by various factors such as personal preferences, social influences, and marketing strategies. By understanding these factors, businesses can better predict and influence consumer behavior to drive sales and build brand loyalty.

How to Select a Consumer Behaviour Model?

Choosing the right consumer behavior model depends on several factors. Here's how to pick the most relevant one:

1. Define your Objective: Understand the end goal of using a consumer behaviour model - is it to understand impulse purchases (for which Hawkins Stern Model is a good choice), or is it to influence/tap into consumer’s social or emotional behaviour (in which case, refer to the psychoanalytical model)?.
Consider the Model's Complexity: Some models, like the EBK Model, offer a comprehensive view of consumer decision-making, while others focus on specific aspects. Choose the level of detail that aligns with your needs.
Evaluate Data Availability: Some models heavily rely on customer data analysis. If such data isn't readily available, a simpler model might be more practical.
Remember, it can be a Mix: Don't be afraid to combine aspects of different models.

By considering these factors, companies can choose a consumer behavior model that effectively sheds light on the specific aspect of consumer behavior they wish to understand and improve upon.

Final Remarks

The consumer behavior model provides a framework for understanding how consumers make decisions, from recognizing a need to evaluating alternatives and making a purchase. Understanding consumer behavior models is crucial for businesses aiming to connect effectively with their target audience.

By incorporating these models into their marketing efforts, businesses can gain valuable insights into consumer motivations and behaviors. This will allow businesses to develop effective marketing campaigns and drive higher levels of customer satisfaction and loyalty. It’s important to adapt marketing tactics to align with evolving consumer behaviors for continued success in today's dynamic market landscape.

Frequently Asked Questions

1. What is the significance of understanding consumer decisions?

Understanding consumer decisions is crucial for businesses to tailor their products/services effectively, leading to increased sales and customer satisfaction. By analyzing behavior models, companies can predict consumer actions and preferences accurately.

2. What are the key insights provided by the Engel-Kollat-Blackwell Model?

The Engel-Kollat-Blackwell Model emphasizes the decision-making process, focusing on problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. It helps businesses understand how consumers move through these stages when making purchasing choices.

3. How does the Black Box Model apply to consumer behavior today?

The Black Box Model represents how marketers view the decision-making process as a black box containing stimuli, consumer characteristics, decision-making processes, and responses. Today, it aids in understanding complex consumer behaviors and designing effective marketing strategies based on internal psychological factors.

4. Why is the Howard Sheth Model important for analyzing consumer behavior?

The Howard Sheth Model highlights the interactions between an individual's psychological processes and external influences in shaping consumer behavior. It provides a comprehensive framework for studying how consumers make decisions based on their cognitive and emotional responses to various stimuli.

5. How do contemporary behavior models differ from traditional ones?

Contemporary behavior models incorporate advanced technologies and evolving societal trends to offer more nuanced insights into consumer decision-making processes. They consider factors like digital media influence, social networks, and cultural shifts that impact modern-day consumer behaviors significantly.

6. What are some common factors that influence consumer buying decisions?

Consumer buying decisions are influenced by various factors such as personal preferences, price perception, brand reputation, product quality, social influence from friends or family members, advertising messages, and past experiences with similar products or brands.

7. Are there any ethical considerations when applying consumer behavior models?

Yes, ethical considerations are crucial when applying consumer behavior models. Marketers should respect consumers' privacy rights and avoid manipulative tactics that exploit vulnerabilities or mislead customers. Transparency in marketing communications is essential for building trust with consumers.

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Alekhya Chakrabarty

Unstop

Alekhya Chakrabarty is a father, a doodler, a trivia buff, a sports fanatic and a lifelong student of marketing. Alekhya is the VP of Marketing & Growth at Unstop, the engagement and hiring platform which connects students and graduates with opportunities. He has over a decade and a half of experience in driving revenue and building brands with the likes of Nestle, HUL and ITC. He is an alumnus of IMT Ghaziabad and in his last stint he was leading the marketing function at Sunstone, a higher education startup. Alekhya has been recognised as a ‘Top Voice’ on LinkedIn for Digital Marketing & Brand Management. He runs a marketing podcast titled East India Marketing Company to drive conversations around growth, content, culture and commerce.