Introduction
Innovation in marketing is vital to ensure high sales and sustain market competitiveness. Companies and brands have to make eye-catching advertisements that influence purchasing decisions. Companies can change the public opinion of people through their marketing campaigns. An effective marketing campaign captures the imagination of customers and persuades them to buy products and services. For that purpose, companies heavily invest in Research and Development to understand consumer behaviour.
Every business student should have a clear understanding of consumer behaviour models. Consumer behaviour pertains to understanding those psychological factors that influence purchasing decisions. It encompasses studying what motivates customers to buy something. Consumer behaviour models are essential to understand how customers buy products and services. Companies apply these models to acquire and retain customers. It helps them predict who will buy their product and target the right customers at the right time. This article by TheAcademicPapers.co.uk will discuss the top consumer behaviour models essential for business students to learn.
Consumer behaviour models
The consumer behaviour model is a theoretical framework. It offers insights into the thoughts, patterns and behaviours of consumers. It helps the companies gain an in-depth understanding of customers’ needs and wants. Insights developed by different theories help companies capture the target audience’s imagination. Here are some of the prominent consumer behaviour models:
- Reasoned Action Theory
- Engel Kollat Blackwell Model
- Motivation-Need Theory
- Hawkins Stern Impulse Buying
- Howard Sheth Model of Buying Behaviour
1. Reasoned Action Theory
Ajzen and Fishbein developed the theory of reasoned action in 1980. The theory argues that behaviour is rational. It depends on the analysis made by an individual based on available information. Here is an overview of the essential components of this theory:
- Consumer behaviour has a significant relationship with customer’s pre-existing beliefs and attitudes
- Individuals make choices by calculating the consequences beforehand
- Rational decision making is the primary element in customers purchasing decisions
- Customers only decide to buy something when they believe that there will be a positive result
Organizations gather significant insights from the theory of reasoned action. Companies design their products and services by keeping in mind the rational aspect of purchasing.
2. Engel Kollat Blackwell Model
Engel Kollat Blackwell model is an extension of the rational actor model. This consumer behaviour model consists of five stages.
a) Input
Input is the first phase that makes the customers aware of their needs and wants. Companies inject this input into the market through advertisements, billboards and displays.
b) Information Processing
Customers process the information gained from the input stage and relate it to past experiences. They contextualize past experiences and current expectations to make a prudent choice about purchasing.
c) Evaluation
Evaluation is the stage where customers research the product. They look for competitors to know about their options.
d) Purchasing Decision
At this stage, the customers decide about the product that is right for them and provides value. The customers can switch to better options as well if they want to.
e) Outcome Analysis
The customer evaluates the bought product and analyses its pros and cons at this stage. After using it, if the experience is the negative customer gets dissatisfied with that product. If it is a positive experience, it results in customer retention.
3. Motivation-Need Theory
Abraham Maslow’s hierarchy of needs is among the most important consumer behaviour models. It emphasizes that consumer behaviour depends upon the necessity of satisfying basic needs. Those basic needs are survival, security, love, self-esteem and self-actualization. Businesses tailor their marketing campaigns to appeal to the customer’s level of need. Based on this model, marketing campaigns create a sense of urgency.
4. Hawkins Stern Impulse Buying
Hawkins Stern Impulse Buying Model contradicts the rational action model in consumer behaviour. Instead, it focuses on impulsive behaviour in purchasing. The model comprises four stages of impulse buying:
a) Pure Impulse
Sometimes customers purchase an item that they did not come to buy in the first place. The appealing visuals lure them into buying that. Out of pure impulse, customers make a last-minute purchase.
b) Reminded Impulse
Reminded impulse purchasing occurs when a customer comes across a product in store-setups. After noticing that product in the shop, the customer reminds themselves of the need to buy it.
c) Suggested Purchase
Suggested impulse buying occurs when a salesperson in the shop recommends a product. It also happens when the customers see ad suggestions through online algorithms.
d) Planned Purchase
Planned purchase occurs when the customers know what they intend to buy, but they are waiting for a deal. An unexpected price drop and sales promotion lead to planned impulse buying.
5. Howard Sheth Model of Buying Behaviour
Howard Sheth Model is a rational theory among the consumer behaviour models. The theory argues that the purchasing journey is logical and organized. The stages involved in a consumer’s buying journey are the following:
a) Extensive Problem Solving
At this stage, the customer does not have any prior information about the available brands. Customers also do not have any set preferences about the product at this stage. The customer collects information about different brands and products in such a scenario.
b) Limited Problem Solving
At this stage, customers have partial or limited knowledge about a brand and its products. To select the most suitable brand and its products, they analyse with other products.
c) Habitual Response Behaviour
At this stage, customers have ample knowledge about the different brands and their products. They are fully aware of their choices, and if they want to make a purchase, they know where to go.
However, these stages are not as simple as they might seem. There are a lot of variables that affect the stages mentioned above. There are three different types of stimuli that affect the purchasing decision. Here are those variables:
- Significant Incentives
- Physical attributes of a product
- Price
- Quality
- Authenticity
- Accessibility
- Brand quality
- Symbolic Incentives
- Verbal or visual aesthetics of the product
- The effect of advertisements and mass media communication
- Social Stimuli
- Influence of family, friends, groups and society
Conclusion
It is incumbent to know about consumer behaviour models for business students. Knowledge about these models is vital for those who want to pursue a career in marketing. Familiarizing yourself with consumer behaviour theories can provide great opportunities. Consumer behaviour models enable organizations to tailor customer-centric strategies. These strategies enhance the overall sale and revenue of the company.
