Welcome to MBA Marketing Management BUYING BEHAVIOR

[Audio] Welcome to MBA – MARKETING MANAGEMENT BUYING BEHAVIOR.

[Audio] CONSUMER BUYING PROCESS & MODELS  Traditional Models of Consumer Behavior  Contemporary Models of Consumer Decision Making  The Howard-Sheth Model and Its Application  Engel-Kollat-Blackwell Model of Consumer Behavior  Nicosia Model: Understanding the Communication Process in Consumer Behavior.

[Audio] TRADITIONAL MODELS OF CONSUMER BEHAVIOR IN BUYING BEHAVIOR Introduction to Traditional Models:  Traditional models of consumer behavior provide frameworks for understanding how individuals make purchasing decisions in the marketplace. These models have been foundational in shaping the field of consumer psychology and marketing research, offering insights into the cognitive, psychological, and social factors that influence buying behavior. The Howard-Sheth Model:  The Howard-Sheth Model, developed by John Howard and Jagdish Sheth in the 1960s, is one of the earliest models of consumer behavior. It proposes that consumer behavior is influenced by three key elements: input, process, and output. Inputs include factors such as marketing stimuli, environmental influences, and individual characteristics. The process involves psychological processes such as perception, learning, and motivation, which shape consumers' attitudes and preferences. Outputs refer to the consumer's decision-making process, including brand choice, purchase intention, and post-purchase behavior..

[Audio] TRADITIONAL MODELS OF CONSUMER BEHAVIOR IN BUYING BEHAVIOR The Engel-Kollat-Blackwell Model:  The Engel-Kollat-Blackwell Model, also known as the EKB Model, was developed in the 1960s and expanded upon the Howard-Sheth Model. It identifies five stages in the consumer decision-making process: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase evaluation. According to this model, consumer behavior is influenced by both internal factors (such as motivation, perception, and attitudes) and external factors (such as marketing stimuli, social influences, and situational factors). The Fishbein Model:  The Fishbein Model, proposed by Martin Fishbein in the 1960s, focuses on the relationship between attitudes and behavior. It suggests that individuals' behavioral intentions are determined by their attitudes towards the behavior and subjective norms regarding the behavior. Attitudes are formed through beliefs about the consequences of the behavior and evaluations of those consequences. The Fishbein Model has been widely used to predict and explain consumer behavior in various contexts, including product adoption, brand choice, and purchase decisions..

[Audio] TRADITIONAL MODELS OF CONSUMER BEHAVIOR IN BUYING BEHAVIOR The Nicosia Model:  The Nicosia Model, developed by Francesco Nicosia in the 1960s, emphasizes the communication process between consumers and marketers. It depicts consumer behavior as a series of feedback loops between the consumer and the marketing organization. The model includes four main components: input, process, output, and feedback. Inputs represent marketing stimuli and environmental influences, while the process involves consumer information processing and decision making. Outputs refer to consumer responses, such as brand choice and purchase behavior, which then influence subsequent marketing efforts through feedback loops. Implications for Buying Behavior:  Traditional models of consumer behavior provide valuable insights into the cognitive, psychological, and social processes that influence buying behavior. By understanding these models, marketers can identify key factors that drive consumer decision making and develop effective strategies to influence consumer attitudes, preferences, and purchase intentions. Traditional models also highlight the importance of segmentation, targeting, and positioning strategies in reaching and engaging with specific consumer segments effectively..

[Audio] CONTEMPORARY MODELS OF CONSUMER DECISION MAKING IN BUYING BEHAVIOR Introduction to Contemporary Models:  Contemporary models of consumer decision making offer updated frameworks that account for the evolving dynamics of the marketplace and changes in consumer behavior. These models integrate insights from psychology, sociology, and economics to provide a comprehensive understanding of how individuals make purchasing decisions in today's complex environment. The Consumer Decision Journey Model:  The Consumer Decision Journey (CDJ) Model, developed by McKinsey & Company, emphasizes the iterative and non-linear nature of the consumer decision-making process. It identifies four key stages: consideration, evaluation, purchase, and post-purchase. Within each stage, consumers engage in a dynamic process of information gathering, evaluation of alternatives, and reassessment of preferences. The CDJ Model acknowledges the influence of various touchpoints and channels, both online and offline, in shaping consumer perceptions and behaviors throughout the decision journey..

[Audio] CONTEMPORARY MODELS OF CONSUMER DECISION MAKING IN BUYING BEHAVIOR The Dual Process Theory:  The Dual Process Theory, rooted in cognitive psychology, posits that consumer decision making involves two distinct processes: System 1 (intuitive, automatic) and System 2 (deliberative, analytical). System 1 processing relies on heuristics, intuition, and emotional cues, while System 2 processing involves rational analysis and conscious evaluation of alternatives. According to this model, consumers often rely on System 1 processing for routine or low-involvement decisions but switch to System 2 processing for complex or high-involvement decisions. The Prospect Theory:  The Prospect Theory, developed by Daniel Kahneman and Amos Tversky, challenges traditional economic models by proposing that individuals' decision making is influenced by cognitive biases and psychological factors. According to the Prospect Theory, individuals are more sensitive to losses than gains and exhibit risk-averse behavior in the domain of gains but risk-seeking behavior in the domain of losses. This asymmetry in decision making has significant implications for consumer behavior, as individuals may perceive gains and losses differently when evaluating product options or making purchase decisions..

[Audio] CONTEMPORARY MODELS OF CONSUMER DECISION MAKING IN BUYING BEHAVIOR The Means-End Chain Theory:  The Means-End Chain Theory, developed by Gutman and Reynolds, explores the hierarchical structure of consumer decision making by examining the links between product attributes, consequences, and personal values. According to this theory, consumers evaluate product attributes based on the consequences they provide and the personal values they fulfill. By understanding consumers' underlying motivations and values, marketers can develop more effective communication strategies that resonate with consumers' aspirations and emotional needs. Implications for Buying Behavior:  Contemporary models of consumer decision making offer valuable insights into the complex interplay of cognitive, emotional, and social factors that influence buying behavior. By incorporating insights from these models into their marketing strategies, businesses can develop more nuanced and targeted approaches to engage with consumers throughout the decision-making process. Understanding the dual processes of intuitive and analytical thinking, as well as the role of cognitive biases and emotional responses, enables marketers to create compelling experiences and messages that resonate with consumers' needs, preferences, and motivations..

[Audio] THE HOWARD-SHETH MODEL AND ITS APPLICATION IN BUYING BEHAVIOR Introduction to the Howard-Sheth Model:  The Howard-Sheth Model, developed by Jagdish N. Sheth and Howard R. Thaler in the 1960s, is a comprehensive framework that seeks to explain consumer behavior by considering both internal and external influences on decision making. This model offers valuable insights into the complex processes that drive consumer choices and has been widely adopted in marketing research and practice. Components of the Howard-Sheth Model: The Howard-Sheth Model consists of three key components:  Inputs: Inputs represent the various factors that influence consumer decision making, including marketing stimuli, environmental factors, and individual differences. Marketing stimuli include product attributes, pricing, promotions, and distribution channels, while environmental factors encompass cultural, social, and situational influences. Individual differences refer to consumers' unique characteristics, such as demographics, personality traits, and past experiences..

[Audio] THE HOWARD-SHETH MODEL AND ITS APPLICATION IN BUYING BEHAVIOR  Outputs: Outputs refer to consumers' responses or behaviors resulting from the interaction between inputs and their internal decision-making processes. These responses include purchase decisions, brand preferences, attitudes, and post-purchase satisfaction or dissatisfaction. Outputs serve as indicators of consumers' cognitive, affective, and behavioral responses to marketing stimuli.  Internal Processes: Internal processes represent the psychological mechanisms through which inputs are processed and translated into outputs. The Howard-Sheth Model identifies three primary decision-making processes:  Cognitive Processes: Cognitive processes involve information processing, evaluation of alternatives, and rational decision making. Consumers engage in cognitive processes when they carefully analyze product attributes, weigh the pros and cons of different options, and make reasoned choices based on their preferences and needs.  Affective Processes: Affective processes encompass consumers' emotional responses and subjective evaluations of products or brands. Emotions play a significant role in consumer decision making, influencing preferences, attitudes, and purchase intentions. Consumers may develop positive or negative affective responses towards products based on their emotional experiences and perceptions.  Conative Processes: Conative processes refer to consumers' behavioral intentions and actions, including purchase behavior, brand loyalty, and post-purchase behaviors. These processes reflect consumers' motivations, preferences, and tendencies to engage in specific actions or behaviors in response to marketing stimuli..

[Audio] THE HOWARD-SHETH MODEL AND ITS APPLICATION IN BUYING BEHAVIOR Application of the Howard-Sheth Model:  The Howard-Sheth Model has been applied in various contexts to understand and predict consumer behavior across different industries and product categories. Marketers use this model to:  Segment and Target Markets: By analyzing the inputs and internal processes that influence consumers' decision making, marketers can identify distinct market segments based on demographic, psychographic, or behavioral characteristics. Understanding consumers' needs, preferences, and motivations enables marketers to tailor their marketing strategies and messages to specific target audiences effectively.  Develop Marketing Strategies: The Howard-Sheth Model guides marketers in developing marketing strategies that resonate with consumers' cognitive, affective, and conative processes. By aligning marketing stimuli with consumers' internal decision-making mechanisms, marketers can create compelling value propositions, engaging brand experiences, and persuasive communication messages that drive desired consumer responses and behaviors.  Evaluate Marketing Effectiveness: Marketers use the Howard-Sheth Model to assess the effectiveness of their marketing efforts by analyzing consumers' responses and behaviors. By monitoring key outputs such as sales, brand awareness, customer satisfaction, and loyalty, marketers can evaluate the impact of marketing stimuli on consumer decision making and identify areas for improvement or optimization in their marketing strategies..

[Audio] ENGEL-KOLLAT-BLACKWELL MODEL OF CONSUMER BEHAVIOR Introduction to the Engel-Kollat-Blackwell Model:  The Engel-Kollat-Blackwell (EKB) Model of Consumer Behavior is a comprehensive framework that seeks to explain how consumers make purchasing decisions. Developed by James F. Engel, David T. Kollat, and Roger D. Blackwell in the late 1960s, this model has been widely used in marketing research and serves as a foundational theory in understanding consumer behavior. Components of the EKB Model:  Information Processing: The model begins with the consumer's exposure to stimuli, both internal (needs, perceptions, attitudes) and external (marketing messages, product features). These stimuli are processed through various stages, including exposure, attention, comprehension, acceptance, and retention..

[Audio] ENGEL-KOLLAT-BLACKWELL MODEL OF CONSUMER BEHAVIOR  Decision Process: The decision process encompasses the steps consumers undertake when making purchasing decisions. This includes problem recognition (identifying a need or want), information search (seeking information about available options), evaluation of alternatives (comparing and assessing different options), purchase decision (selecting a product or brand), and post-purchase evaluation (assessing satisfaction with the chosen option).  Variables Influencing Consumer Behavior: The EKB model identifies several key variables that influence consumer decision making. These include individual factors (e.g., demographics, personality, lifestyle), environmental factors (e.g., culture, social class, reference groups), and marketing mix variables (e.g., product, price, promotion, distribution).  Psychological Processes: The model also emphasizes the psychological processes underlying consumer behavior, including perception, learning, motivation, attitudes, and beliefs. These processes interact with external stimuli and individual characteristics to shape consumer responses and behavior..