UNIT II Consumer Behavior Models Define Model A model can be defined as a simplified representation of reality .

. It simplifies by incorporating only those aspects of reality that interest the model builder. Models of consumer behavior Industrial and individual consumer behavior models Howard Sheth model Engel Kollat model Webster & Wind model. Howard Sheth Model The Howard Sheth model serves as an integrating framework for a very sophisticated comprehensive theory of consumer behavior. The term Buyer in this model refer to industrial purchases as well as Ultimate consumers. The model attempts to depict rational brand choice behavior by buyers under conditions of incomplete information and limited abilities. Three Levels of decision making Extensive problem solving: Early stages of decision making, buyer has little information about brands and not yet developed and structured criteria by which to choose among products (choice criteria) Limited problem solving: Advanced stage choice criteria are well defined but the buyer is still undecided about which set of brands will best serve him. Routinized response behavior: Buyers have well defined choice criteria and also have strong predispositions towards one brand. Learning theory concepts. The model borrows from learning theory concepts Four major components are involved they are

1. Input variables 2. Output variables 3. Hypothetical constructs 4. Exogenous variables Input variables Stimuli in the environment, there are 3 stimuli Significative stimuli are actual elements of brands that the buyer confronts. Symbolic stimuli are generated by producers representing their products in symbolic form (advertisements) Social stimuli are generated by the social environment including family, friends groups. Output variables The five output variables are Attention : The magnitude of the buyers information intake Comprehension: The buyers store of information about a brand Attitude: The buyers evaluation of a particular brands potential to satisfy his or her motives Intention: The buyers forecast of which brand he or she will buy Purchase behavior: The actual purchase act, which reflects the buyers predisposition to buy as modified by any inhibitors. Hypothetical constructs A number of intervening variables are proposed represented by hypothetical constructs. They are categorized into two major groups. Perceptual constructs dealing with information processing Learning constructs dealing with the buyers formation of concepts. Perceptual constructs The Three perceptual constructs are: Sensitivity to information: The degree to which the buyer regulates the stimulus information flow. Perceptual bias: Distorting or altering information.

 Search for information: Active seeking of information about brands or their characteristics. Learning constructs The buyers six learning constructs are defined as Motive: General or specific goals impelling action Brand potential of the evoked set: The buyers perception of the ability of brands in his or her evoked set (those that are actively considered) to satisfy his or her goals Decision mediators: The buyers mental rules for matching and ranking purchase alternative according to his or her motives. Exogenous variables A number of external variables that can significantly influence buyer decisions. They are 1. Importance of purchase 2. Personality variables 3. Social class 4. Culture 5. Organization 6. Time pressure 7. Financial status Model evaluation The Howard Sheth model represents a significant contribution to understanding consumer behavior. It identifies many of the variables influencing consumers and details how they interact with each other. The model has certain limitations It does not make sharp distinctions between exogenous and other variables. Some of the variables are not well defined and are difficult to measure Limitations

 The model also has limited generality for example: it is not highly useful in explaining joint decision making between family members or other members of an organization. The model is quite complex, making it difficult to comprehend, especially for those new to the field. Webster and Wind Model: Organizational Buying Process 1. Problem Recognition 2. General Description of Need 3. Product Specifications 4. Supplier Search 5. Acquisition and analysis of proposals 6. Supplier Selection 7. Selection of Order Routine 8. Performance Review

Forces Influencing Organiz

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Major Elements of Org