Student ID: 21701757

Faculty of Business and Information Technology

Programme: PGCertM /PGDipM/MM

Lecturer Name: Daymon Heyzer

Paper Number and Name: BUS8x04 Consumer Behaviour &
Marketing Communication
Assignment Title: Current Theories in Consumer Behaviour: A
Literature Review
Official Due date: 09/10/2017

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1
Current Theories in Consumer Behaviour: A Literature Review
 Student ID: 21701757

Current Theories in Consumer

Behaviour: A Literature Review

Submitted to: Daymon Heyzer

Submitted by: Mohammad Kashif (21701757)

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Current Theories in Consumer Behaviour: A Literature Review
 Student ID: 21701757

Introduction
Consumer behaviour is perhaps one of the most important areas of research in marketing. It
enables marketers to understand the behaviour that influences the buying action of consumers
affecting the bottom line of all organisations. For the purposes of studying the behaviour of
consumer groups, marketers often divide them into demographic and psychographic segments.
Consumer behaviour often referred to as buyer behaviour in its early stages of understanding,
can be comprehended as a process of activities performed during selection, purchase, usage
and disposal of products and/or services (Solomon, Russell-Bennett, & Previte, 2012). All of
us are consumers and we all behave in a certain way. However, only specific activities
involving the above-mentioned processes are considered a part of consumer behaviour (Sethna
& Blythe, 2016).

A good majority of products and services in the market are being produced for individual
consumption. There are firms that engage in business to the business delivery of their products
or services, but most input materials end up in a finished product and service to be used by
individuals. And hence, a good understanding of end-user or consumers behaviour is the
favour of marketers, in general (Wright, 2006). With the global economic slowdown in the late
2000s, the perceived value of products and services did change worldwide. With more
smartphone ownerships and better availability as well presentation of competitive information
makes the field of consumer behaviour even more challenging and important for marketers to
study (Yeoman, 2013).

In recent years, there has been a plethora of research papers, theories, models and books based
on different aspects of consumer behaviour. Part of the reason for such a boom is also that it is
very interesting to study and understand how we perceive, understand, retain and act on
information presented to us. It is only obvious for more studies to come forward critiquing
these different theories and models presented in various literature; which is exactly the purpose
of this literature review.

This review will study the current and more prevalent theories of consumer behaviour based
on, as well as in contrast to, the traditional five-step decision-making model as presented by
Blackwell, Miniard, & Engel, 2001 and developed by Engel, Kollat, & Blackwell, 1968. This
model has been replicated in several industries over the time with various different factors.
Kvnstantynydys, 2004, lays down the five steps as 1) Identification of the problem, 2)

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Current Theories in Consumer Behaviour: A Literature Review
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Information search, 3) Option evaluation, 4) Purchase decision, and 5) Post-purchase behaviour

(See Fig. 1) (Haghshenas, Abedi, Ghorbani, Kamali, & Harooni, 2013).

Figure 1. Traditional Consumer Behaviour Model (EBK Model) (Wozniak, EBK Model -
CEOpedia, 2016)

By understanding different stages of consumer decision making process and the factors that
influence these steps, marketers can hack into the need analysis process and they can offer
superior perceived value at each step. Buying decisions are not made in a vacuum and the
factors impacting these steps could either be internally or externally influenced. For example,
concepts about self and different ways of life can evoke different needs and desires among
consumers; and, these will be the internal factors that influenced a consumers decision-making
process (Essays, UK, 2015). Similarly, environmental factors such as weather, opinions of
friends and family, and more are external factors that influence the decision-making process.

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Current Theories in Consumer Behaviour: A Literature Review
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In order to select relevant literature for this review, peer-reviewed articles were selected from
the library resource provided by Whitireia Community Polytechnic. The keyword search for
Consumer Behaviour Theories ended in 221,661 peer-reviewed and scholarly results on
various databases (including ProQuest, EBSCO Host and Science Direct). Out of these, 30
articles were selected on a judgemental sampling basis for in-depth review. The selections were
made with generalizability of theories in mind and titles peeking deeper into specific fields
were avoided to a certain degree. The date range of the articles is from 1968 2016.

The literature review follows a set pattern of discussion with research leaning towards the
traditional EBK model, followed by a review of studies leaning away from the traditional
model. And finally, literature related to the factors of external and internal influences on the
buyer behaviour. The conclusion section puts all the findings in contrast and tries to identify
areas of further research that could be of importance to marketers. At the same time, finding
out loopholes or gaps in existing research and advising how they can be replicated with more
concrete results.

Literature Review
There are many types of research that study the implications of consumer behaviour. Some
pertain to the traditional model developed by Engel, Kollat, & Blackwell, 1968, and some bring
in new models and ways of looking towards the process of a consumer. Let us first look at
some of the researches that support or extrapolate from the traditional model.

Research leaning towards the traditional model

The generalizability of the traditional model is very high and it can be applied to almost all
industries in one way or another. Similarly, an analytical study on consumer decision-making
process while buying insurance services found that the traditional model is equally applicable
in the field of insurance as well. In the research paper, Mahajan, 2013 states that even in the
matter of fulfilling the security, which is as old as the humanity itself, the traditional model fits
into all circumstances very well; just as it would in any case of any ordinary product (Mahajan,
2013). Similarly, an exploratory study by Lee, 2005 into buying behaviour of Chinese
customers for imported health food finds the applicability of the traditional model relevant in

the worlds largest market. Lee, 2005 suggests that future research in the context of China

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Current Theories in Consumer Behaviour: A Literature Review
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should be done with reference to the traditional model to better understand the Chinese
consumers decision-making process.

Munthiu, 2009 reflects on the urgency for research on different stages of buyer behaviour while
confirming the importance of the five stages. She furthers the conversation by classifying the
consumers behaviour into complex, dissonance-reducing, habitual and variety-seeking buying
behaviour (Munthiu, 2009). Research in different kinds of consumer behaviour will allow the
classification of various influences on different stages, and hence, more relevant marketing
strategies can be formulated. Furaiji, atuszyska, & Wawrzyniak, 2012 studied the impact of
various factors on consumer behaviour affect the purchase of electrical goods in the Iraqi
market. The research found consumer buying behaviour strongly linked to the marketing mix
of an organisation. Social and physical factors were also referred as involved stimuli to
behaviour. The authors refer to the Black Box model of consumer behaviour developed by
Keegan, Moriarty, & Duncan, 1992, which is also an extension of the traditional model (Fig.
2).

Figure 2. Black Box Model of Consumer Behaviour (Keegan, Moriarty, & Duncan, 1992)

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Current Theories in Consumer Behaviour: A Literature Review
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While criticising the traditional EBK model, Erasmus, Boshoff, & Rousseau, 2001 reflect the
lack of theoretical backing behind the theory and suggest that its generalizability is
questionable since consumers may behave irrationally or illogically at times. While it is
profitable to study traditional model of consumer behaviour, it may also be important in the
long run to understand why individual consumers behave in a certain way (Erasmus, Boshoff,
& Rousseau, 2001). As opposed to this, Haghshenas, Abedi, Ghorbani, Kamali, & Harooni,
2013 confirmed to the generalizability of the five-step model in a literature review. They
suggest that the model is applicable to complicated, limited, as well as regular decisions.
According to them, internal as well as tangible factors are of influence to this process.

Researches leaning away from the traditional model

A good majority of the research that studies consumer behaviour in different context to
traditional approach and with different models comes from the area of e-commerce and
financial services. Interestingly, Nayeem & Casidy, 2015 find in their investigative and
analytical research that consumer behaviour styles for everyday products can be based on seven
out of eight factors discussed in the Consumer Styles Inventory model developed by G. B.
Sproles and E. L. Kendall for American consumers. As opposed to Erasmus, Boshoff, &
Rousseaus findings, this study resulted in the emergence of rational decision making as an
important factor. These results are also verified by Baoku, Cuixia, & Weimin, 2010 for Chinese
peasant consumers.

Mindset theory suggests that beliefs people have or their mindsets make them more attracted
to one alternative available in the store or make them respond to a certain kind of
communication over others (Murphy & Dweck, 2016). It is the psychology and motivation of
the consumer that drives purchase behaviour according to the authors. Marketing relevant
information to consumers with recognised mindsets appears to be an interesting area for further
studies.

A research review by Constantinides, 2004 suggests that due to low involvement and risk
factor, the online buying experience of consumer impacts the behaviour. And thus, Web
Experience Framework based on the virtual marketplaces functionality factors (e.g. usability,
interactivity), psychological factors (e.g. online trust), and content factors (e.g. aesthetics,
marketing mix) is suggested to be researched upon in interesting new dimensions. Similarly,
another experimental study concludes that the ease of use of a virtual store layout influences

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Current Theories in Consumer Behaviour: A Literature Review
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consumers internal states, however, it does not shape their attitude towards the store or the
pleasure they derive from the experience (Manganari, Siomkos, Rigopoulou, & Vrechopoulos,
2011).

Figure 3. Enhanced model of E-consumer Behaviour (Dennis, Merrilees, Jayawardhena, &

Wright, 2009)

Figure 3 portrays the e-consumer behaviour model developed by Dennis, Merrilees,

Jayawardhena, & Wright, 2009. The model hypothesizes that consumers online behaviour is
governed by their emotional states, their attitude, and their intent to purchase. The behaviour
is explained in two different stages with distinct traits and factors inducing modifications in the
behaviour. As this is a model developed from the ground up, further studies will enhance this
model. Although, it is important to note that situational factors, such as convenience,
consistently arise as behaviour stimulating factors. Similarly, in Mobile Viral Marketing
campaigns, consumers behave in three stages of awareness, interest, and referring (Pescher,
Reichhart, & Spann, 2014).

In an experimental study, Shiv & Fedorikhin, 1999 examine the results of the interaction
between affect and cognition. They found that the consumer is more likely to buy on the basis
of affect rather than cognition. Shiv & Fedorikhin, 1999 argue that certain models that base
consumer behaviour models on their cognition, or as a thought process, do not reflect reality.
George & Dane, 2016 confirm these results in their review article and state the superiority of
affect over cognition. Erasmus, Boshoff, & Rousseau, 2001 had a similar argument and appeal
for further research towards why the consumers behave in a certain way.
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Current Theories in Consumer Behaviour: A Literature Review
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In 1977, Howard Sheth developed a model of consumer behaviour that unified the impact of
social, psychological and marketing factors following a lucid pattern of cognitive processes
(Prakash, 2016). It was one of the first integrated models to differentiate between limited,
complex and automatic problem-solving behaviour. However, the model is too linear for its
application in general scenarios where customers may move in the backward direction as well.
But, the model does a good job of explaining how brand choices can be developed over time
in a consumers behaviour.

Figure 4. Howard Sheth Model of Consumer Behaviour (Wozniak, Howard Sheth model of
consumer behaviour - CEOpedia, 2016)

Literature studying internal and external influence on consumer behaviour

Internal or personal factors represent how much a consumer benefits directly from the
consumption. Internal factors are driven by needs and desires and perception plays a great role
in determining the behaviour as well. Whereas, external factors are mainly social norms and
settings. The prevalent trends affect individual consumers more than the others. At the same

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Current Theories in Consumer Behaviour: A Literature Review
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time, cultural values also tend to impact the way a consumer is going to behave and companies
use cultural tactics in their advertisements very frequently. Good examples of internal influence
could be self-gifting consumer behaviour that is like to induce self-indulgent buying behaviour
for satisfaction of personal emotional goals (Mortimer, Bougoure, & Fazal-e-Hasan, 2015;
Watson & Spence, 2007) and identity-based consumer behaviour where consumer is driven by
the understanding of self (Reed, Forehand, Puntoni, & Warlop, 2012). In a similar fashion,
environmentally sensitive consumer behaviour or green consumer behaviour is driven towards
minimal impact to the environment or rather benefits to it (Onel & Mukherjee, 2015), which is
an external influence.

Other studies in environmentally sensitive consumer behaviour observe that consumer

behaviour is influenced by the environmental impact because of habitual reasons rather than
being affects spilling over other behavioural patterns over time (Thgersen & Olander, 2003).
Perhaps, one of the reasons behind the slow growth in environmentally friendly behaviour into
different types of behavioural aspects is the lack of clarity among consumer groups about firms
trying with green innovations (Narula & Desore, 2016).

An exploratory study in Thailand about frozen food products found the impact of marketing
mix was the predominantly influencing factor along with the sociocultural aspects of the
environment (Chatthipmongkol & Jangphanish, 2016). According to them, these factors
combined with internal stimuli and experience influence the behaviour of the consumer. Ani
& Radas, 2006 found that social factors, previous plans to shop on a large scale, store loyalty,
drive consumer purchase decisions in malls. This experiment analytically describes a positive
relationship between the number of stores visited and the amount of money spent on purchases.
Store choice, on the other hand, may depend on variety, price, quality, location, and service
(Zulqarnain, Zafar, & Shahzad, 2015; Goodman, Lockshin, & Remaud, 2010).

A literature review in post-purchase experience reveals that the uniqueness of consumers

experience makes harder to replicate and forms a positive competitive advantage, however,
they are hard to produce due to their intangible nature (Dahl, 2016). At the same time, post-
purchase dissonance is usually enhanced by the consumers personality or involvement and
approval and disapproval of friends and family in pre and post-purchase situations, respectively
(Hasan & Nasreen, 2012; Hasan & Nasreen, 2014).

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Current Theories in Consumer Behaviour: A Literature Review
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Conclusion
This review aimed to identify the trends in current research in consumer behaviour with respect
to the traditional five-stage model as well as internal and external influences to different stages.
It was observed that traditionally developed models like EBK model and Howard Sheth model
of consumer behaviour are very straightforward for an in-depth and complex understanding of
various factors that affect behaviour. They are further criticized for the inability to generalize
them to field like e-consumer behaviour and finance. Situational factors like marketing mix &
experience as well as internal factors like emotions, personality & beliefs are emerging factors
of influence. The Black Box model is a good generalizable approach, however, different
consumer models are likely to arise for specific industries or even points of sales.

Investigative researches on irrational decisions made by the consumers and their mindsets are
areas of gap identified in this review. Many authors agree on how this area is not observed as
much as others. Since scholars agree that affect is generally at play over cognition, mindset
theory is a keen area for future research. Further studies on the classification of consumer
mindsets will help the development of more accurate marketing strategies to appropriate
audiences. The Enhanced model of E-consumer behaviour by Dennis et al, 2009 is a good leap
forward in the changing markets and needs to be researched upon with better understanding of
the impact of several factors on consumers attitudes and emotional states.

References

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