In order to understand the dynamics of consumer buying decision making process, researchers, authors, marketing consultants and practitioners have devised several model that can explain consumer buying behaviour. Early authors focussed on approaches that relates to buying behaviour that are highly influenced with the parent subjects of consumer behaviour. There is economic model that deal with rationality of consumer decision making. Sociological model on the other hand that emphasize that behaviour is driven by social compulsions rather than needs. The learning model related to man's ability to learn, forget and discriminate.
Other than these apparent influences to behaviour, Sigmund Freud in his psychoanalytical theory explained the subconscious self and the relationship between buying behaviour and individual's hidden fear, longings and desires.
There were also attempts to develop more holistic models of consumer behaviour. They are Nicosia Model, Howard-Sheth Model and Engel, Blackwell and Kollat (now Miniard) Model.
Nicosia Model of Consumer Behavior
This is model proposed by Francesco Nicosia in 1966 was one of the first contemporary model. It was an attempt to address numbers of issues that can influence consumer decision making. This model identifies four fields - each one has its own processes, resulting into purchase. These field presents a flow of influences in decision criteria. These fields are1. Attributions
2. Search
3. Decision-making
4. Post-purchase
Field 1:Developing Attributions through Marketing Communications
The basic assumption of this is that the marketing communications are important in forming attitudes. The firm define various attributes and it's relative importance and communicate the same to the consumer through advertisements. The message is designed to strongly communicate and persuade the consumer to develop favourable attitudes. Consumer's attitude are also influenced by their perception, past experiences and role. This process would develop an attitude about the product or brand in the minds of consumer.
For example, a consumer may see an advertisement for a preventive health checkup package from a A well known hospital comes up with a preventive health checkup program with number of benefits like home pick of samples, free consultations, same day report and group discounts (firm's attributes). They advertise the same in the newspaper. Consumer reading that advertisement will relate to it as they would understand the features and may find it useful for them (consumer attributes). This will result in development of positive attitude towards the program.
An online grocery store or a food home delivery app advertisement in the newspaper will develop attitudes for consumers who have not tried it before.
Field 2 : Consumer Search
After development of positive attitude the consumer starts searching for information about the product. So far the only information source was the advertisement from the firm. The consumer will evaluate that as well as look for other sources of information.
For example, a consumer may develop attitude for taking a vacation upon seeing an advertisement from swiss holiday. However, he/she will search for other several options, read reviews and evaluation them.
Here, active search and evaluation lead to motivation for the purchase.
Field 3: Purchase Behaviour
This is the final act of purchase. The consumer will ascertain the time and finance options and will go for purchase.
For example, the consumer may go for an advance flight booking to avail a discount offer or may order grocery or furniture online if cash on delivery option is there.
Field 4: Use and Post-purchase
The consumer will use or experience the product purchased item. Here, the consumer will give feedback to the company about sales, use and maintenance of the product. The firm may take the feedback and develop or improve the attributes to be communicated in future.
For example, an online grocery store may get customer feedback about delays in delivery and hence they streamline their distribution.
Evaluation of Nicosia Model
1. This model only emphasis on communications that are driven by external sources ( company sponsored like advertisement). Internal sources like WOM and reference groups also influence decision making.
2. There is also difference between firm's attributes and consumer's attributes, which this model treats as same.
Howard-Sheth Model of Consumer Buying
Its is simple yet detailed model of consumer behaviour. This model integrates three different aspect of decision making that are presented in a form of a problem-solving approach. Its an input-process-output approach that takes into account the psychological and mental processes get goes along buying decision process.
I. Input
There are several stimuli that acts as driving variable for buying. Firstly, consumer's own needs and wants acts as the motivating factor. For example, a students needs a new, fast processing laptop to submit assignments on time. Secondly, needs can be generated by marketers efforts also. Apple's ipod is a classic example. Thirdly, macro environmental factors like social, cultural, economic, political, technological and demographic factors also influence purchase. Individual factors like social class, family and other reference group can also stimulates needs.II. Process
This stage consists of two different but related process. Buying decision process that involves search, evaluation and selection of product and the psychological process that goe along this process. After the need recognition the consumer start looking for purchase options. In search for alternatives, consumers perception plays an important role. For evaluation, consumer will only consider alternatives for which there is a positive attitude. Purchase decision is influence with goals, memory and intentions.
III. Output
Even if the purchase intentions are positive, the outcomes may not turn into behaviour immediately. However, the decision may be taken regarding:- Product or brand choice.
- Online or offline or dealer choice
- Buy now or wait for occasion or discounts
- Cash or credit payment or monthly installments
- Delivery schedule
Evaluation of Howard-Sheth Model
It does not justify impulse purchases.
Engel, Blackwell and Miniard Model (EBM Model)
This model is improvement of previously published Engel, Blackwell and Kollat Model. This model take a very comprehensive route in order to analyse what drive consumer to buy. This model is divided into four stages.
Stage One: Decision-making Process
At the center of the model, decision- making process interlinks all other activities. The process includes five stages of buying decision making. This process may vary depending upon level of purchase behaviour. For routine purchases, the process may skip steps like alternative search and stick to the last purchased brand. For limited problem solving involvement may be different. This process can be best seen in the situations for extensive problem solving.
Need recognition depends upon internal and external searches. Search is influenced by beliefs, where evaluation is affected by attitudes. Beliefs and attitudes results into purchase intentions.
Also post-purchase behaviour help consumer learn. In satisfied, consumer will go for repeat purchase and recommendations. Dissatisfaction leads to new alternative search.
Stage Two: Information Processing
Individual exposed to number of stimuli and cues from the environment. Individuals may process information differently from one other. The information processing model describes the stages an information travels from exposure to retention. Researches reveal that every stage acts as a qualifier for next stage to occur. For instance, if only 80% of the target audience will be exposed to an information say an advertisement, only 60% will pay attention to it and will be stored in their short-term memory. Next stage will occur for only for 40% people out of attentive will be able to understand and comprehend the information. These people are likely to store the information little longer in their memory. Out of these 15% develop liking and only 5% will retain the information in long term memory.
Stage Three: Input
The input stimuli may come from number of sources.- internal sources like own needs, past experiences, family, friends and relatives
- external sources like advertisements
- market driven stimuli like sales promotion and POP displays
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