CONSUMER BEHAVIOUR NOTES

Consumer Behaviour: Meaning, Role, Scope, and Significance

Meaning of Consumer Behaviour
Consumer behaviour refers to the study of how individuals, groups, and organizations select,
buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
It involves understanding decision-making processes, preferences, and external influences that
shape consumer choices.

Role of Consumer Behaviour

1. Understanding Needs and Wants – Helps businesses identify what consumers require
and tailor products accordingly.
2. Market Segmentation & Targeting – Facilitates the grouping of consumers with similar
traits to design focused marketing strategies.
3. Product Positioning – Aids in creating a distinct brand image in the consumer’s mind.
4. Pricing Decisions – Guides businesses in setting optimal prices based on consumer
perception of value.
5. Consumer Retention & Loyalty – Helps in fostering long-term relationships with
customers through personalized experiences.
6. Competitive Advantage – Understanding consumer preferences enables firms to
differentiate their offerings effectively.

Scope of Consumer Behaviour

1. Psychological Factors – Examines perception, motivation, learning, attitudes, and
personality affecting buying behavior.
2. Social and Cultural Influences – Includes family, reference groups, social class, and
cultural background.
3. Economic and Personal Factors – Considers income levels, lifestyle, and purchasing
power.
4. Decision-Making Process – Covers problem recognition, information search, evaluation
of alternatives, purchase decision, and post-purchase behavior.
5. Impact of Technology and Digital Media – Explores how e-commerce, social media,
and digital marketing influence buying choices.

Significance of Consumer Behaviour

1. Improves Marketing Effectiveness – Enables businesses to create strategies aligned
with consumer expectations.
 2. Enhances Customer Satisfaction – Helps in delivering better experiences by
addressing consumer needs.
3. Predicts Market Trends – Identifies emerging patterns and changes in consumer
preferences.
4. Aids in Policy Making – Governments and regulatory bodies use consumer behavior
insights for public policy formulation.
5. Boosts Innovation – Encourages product and service improvements based on
consumer feedback and behavior.

Implications of Consumer Behaviour in STDP and Marketing Mix

Segmentation, Targeting, Differentiation, and Positioning (STDP)
1. Segmentation – Dividing the market into distinct consumer groups based on
demographics, psychographics, behavior, and geography.
2. Targeting – Selecting the most attractive segment(s) to serve effectively.
3. Differentiation – Creating unique product attributes that distinguish a brand from
competitors.
4. Positioning – Establishing a strong brand image in the minds of the target audience.
Consumer behaviour insights help marketers in STDP by:
• Identifying homogeneous consumer groups with shared characteristics.
• Understanding consumer needs and preferences to create personalized marketing
strategies.
• Ensuring that brand messaging aligns with consumer values and expectations.

Consumer Behaviour and Marketing Mix (4Ps)

1. Product – Insights from consumer research help in product design, features, packaging,
and branding.
2. Price – Understanding price sensitivity and perceived value guides pricing strategies.
3. Place – Consumer behavior dictates distribution channels, whether online, offline, or
hybrid.
4. Promotion – Effective advertising and communication strategies are developed based
on consumer responses to messages, media, and promotions.

Role and Methods of Conducting Consumer Research

Role of Consumer Research
1. Identifies Market Opportunities – Helps businesses discover unmet consumer needs.
2. Minimizes Business Risks – Reduces uncertainty by providing data-driven insights.
 3. Improves Marketing Strategies – Ensures advertising and promotional efforts align
with consumer expectations.
4. Enhances Customer Satisfaction – Helps brands understand and address consumer
pain points.
5. Supports Product Development – Guides innovation based on consumer feedback and
trends.

Methods of Conducting Consumer Research

1. Primary Research – Direct data collection from consumers using:
o Surveys – Structured questionnaires to gather consumer opinions.
o Interviews – In-depth conversations to explore consumer motivations.
o Focus Groups – Discussions with a small group to analyze perceptions.
o Observational Research – Monitoring consumer behavior in real settings.
o Experiments & Test Marketing – Testing new products in controlled
environments.
2. Secondary Research – Using existing data from:
o Government Reports – Economic and demographic statistics.
o Industry Reports – Market trends and competitive analysis.
o Academic Research – Studies on consumer psychology and decision-making.
o Internal Company Data – Sales reports, customer feedback, and web analytics.
3. Qualitative vs. Quantitative Research
o Qualitative – Explores consumer attitudes and perceptions through interviews,
ethnography, and case studies.
o Quantitative – Uses statistical methods, surveys, and numerical data analysis for
insights.
4. Online & Digital Research Methods
o Social Media Listening – Tracking consumer sentiments on platforms like
Twitter, Instagram, and Facebook.
o Web Analytics – Understanding online consumer behavior using tools like
Google Analytics.
o AI & Big Data Analytics – Predictive modeling and trend analysis based on vast
datasets.
Psychological Factors Influencing Consumer Behaviour: Perception

1. Meaning of Perception
Perception refers to the process by which individuals select, organize, and interpret sensory
information to understand their environment. It is subjective and varies from person to person,
influencing consumer decision-making.
Unlike sensation, which is the immediate response of sensory organs to stimuli (e.g., seeing a
brand logo or hearing an advertisement jingle), perception is how consumers interpret these
stimuli and assign meaning to them.

Key Aspects of Perception in Consumer Behaviour

• Perception influences how consumers recognize needs and seek solutions.
• It affects brand image and loyalty, as consumers associate certain perceptions with a
brand.
• Consumers filter marketing messages based on their pre-existing beliefs and
experiences.
Example:
• A consumer may perceive Apple products as innovative and premium, while another
may see them as overpriced and restrictive—both perceptions influence purchase
decisions.

2. Elements of the Perceptual Process

The perceptual process consists of three stages:
A. Sensation
Sensation is the immediate response of the senses (sight, sound, taste, smell, and touch) to
stimuli. Marketers use various sensory elements to appeal to consumers:
• Vision – Bright colors, minimalist packaging, distinctive logos (e.g., Coca-Cola's red
branding).
• Hearing – Music and jingles (e.g., McDonald's “I’m Lovin’ It” tune).
• Smell – Scent marketing (e.g., coffee aroma in Starbucks stores).
• Taste – Free samples to create brand preference.
• Touch – Texture of packaging or luxury materials (e.g., the soft-touch finish on a
premium car dashboard).

B. Attention
Attention is the degree to which consumers focus on a stimulus. Factors influencing attention
include:
1. Personal Factors
 o Needs and motivations (e.g., a hungry person notices food ads more).
o Expectations (e.g., familiarity with a brand increases likelihood of noticing its
ads).
2. Stimulus Factors
o Contrast – High contrast grabs attention (e.g., black-and-white ads with a pop of
red).
o Size – Larger ads or packaging attract more attention.
o Intensity – Bright lights, loud sounds, bold fonts.
o Novelty – Unexpected or unusual elements (e.g., a perfume ad using abstract
art).
3. Situational Factors
o Clutter (too many competing ads can reduce attention).
o Time constraints (busy consumers are less likely to notice ads).
C. Interpretation
Interpretation is how consumers assign meaning to sensory stimuli. It is
influenced by:
• Selective Perception – People filter information based on their experiences.
• Stereotypes – Pre-existing beliefs shape perception (e.g., eco-friendly brands are seen
as ethical).
• Halo Effect – A strong positive association with one product influences perception of
other products from the same brand (e.g., Apple's reputation for innovation extends to
all its products).

3. Gestalt Principles of Perception

Gestalt psychology explains how people perceive objects as organized wholes rather than
individual components. These principles are widely used in branding, advertising, and
product design.
A. Figure and Ground
• The figure is the object that stands out, while the ground is the background.
• Marketers use contrast to ensure that brand names or products stand out.
• Example: The FedEx logo has an embedded arrow between the "E" and "x," symbolizing
speed and movement.
B. Similarity
• Objects that look similar are perceived as related.
• Example: Brand consistency—companies use the same logo, font, and colors across
different product lines to maintain recognition.
C. Proximity
• Elements placed close together are perceived as belonging to the same group.
• Example: Supermarkets place complementary products together (e.g., chips and dips),
increasing impulse purchases.
D. Closure
• The mind fills in missing elements to complete an image or message.
• Example: The IBM logo consists of horizontal stripes, but consumers still recognize the
brand.
E. Continuity
• The mind follows a smooth flow of elements rather than abrupt changes.
• Example: Website layouts use guiding lines and arrows to direct users to the "Buy Now"
button.

4. Subliminal Perception
Meaning
Subliminal perception occurs when consumers receive messages below their conscious
awareness, influencing attitudes or behaviors without them realizing it.
Examples of Subliminal Messages in Marketing
• Embedding hidden words or images in ads (e.g., "sex" hidden in ice cubes in a liquor
ad).
• Flashing brand logos for a fraction of a second in movies or videos.
• Background music in stores influencing shopping behavior.
Effectiveness Debate
• Some studies suggest subliminal messages can prime consumers’ attitudes and
preferences.
• However, most research finds no significant long-term impact on behavior.
• Ethical concerns arise as these tactics manipulate consumers without their consent.
Example: In 1957, researcher James Vicary claimed that flashing "Drink Coca-Cola" in a movie
increased sales. Later, he admitted falsifying the results.

5. Perceptual Mapping
Meaning
Perceptual mapping is a visual representation of how consumers perceive brands relative to
competitors based on key attributes. It helps marketers:
• Identify market gaps and opportunities.
 • Understand consumer preferences.
• Reposition brands effectively.
How Perceptual Mapping Works
• Brands/products are plotted on a graph with two key attributes on the X and Y axes
(e.g., "price" vs. "quality").
• The closer two brands are, the more similar they are in consumer perception.
• Areas with no brands indicate market opportunities.
Example: Smartphone Perceptual Map

Innovation (High) Innovation (Low)

Apple, Samsung Nokia, Blackberry

OnePlus, Google Pixel Basic Feature Phones

Applications in Marketing

1. Brand Repositioning – If a brand is too close to competitors, marketers may change its
image.
2. Product Development – Identifying unmet consumer needs (e.g., demand for
affordable, high-quality smartphones).
3. Competitive Analysis – Understanding where competitors are positioned.

Conclusion
Perception plays a crucial role in consumer decision-making, influencing brand choices,
product evaluations, and marketing effectiveness. Marketers must understand how
consumers:
• Select, interpret, and organize stimuli.
• Respond to sensory cues (colors, sounds, smells).
• Develop brand perceptions (using perceptual mapping).
• Are influenced by subliminal and gestalt principles in advertising.
By leveraging these insights, marketers can create effective branding, advertising, and
product positioning strategies to attract and retain consumers.
MOTIVATION & INVOLVEMENT IN CONSUMER BEHAVIOUR
1. Meaning of Motivation
Motivation is the driving force that compels individuals to take action toward fulfilling their
needs or desires. It arises due to a gap between the current state and the desired state,
creating a psychological tension that needs resolution.
Process of Motivation in Consumer Behaviour
1. Unfulfilled Need → Recognizing a gap (e.g., feeling hungry).
2. Tension Creation → Discomfort due to unmet need (e.g., stomach growling).
3. Drive Activation → Psychological push to act (e.g., seeking food).
4. Goal-Directed Behaviour → Taking action (eating a meal).
5. Tension Reduction → Need fulfillment (hunger satisfied).
Types of Motivation in Consumer Behaviour
1. Positive Motivation – A consumer is driven by the desire for a reward (e.g., buying a
gym membership for better health).
2. Negative Motivation – A consumer acts to avoid an undesirable outcome (e.g., buying
an antivirus to prevent malware).
3. Intrinsic Motivation – Arises from personal enjoyment (e.g., buying books for learning).
4. Extrinsic Motivation – Comes from external pressures (e.g., buying a luxury car to
impress others).

2. Buying Motives in Consumer Behaviour

A. Emotional vs. Rational Motives

Type Description Example

Driven by logic, cost-benefit analysis, and

Rational Motives Buying a fuel-efficient car
efficiency

Emotional Driven by feelings like prestige, excitement, and Buying an expensive

Motives nostalgia handbag

B. Other Key Buying Motives

1. Product Motives – Buying based on product attributes (e.g., choosing a phone for its
camera quality).
2. Patronage Motives – Selecting a brand/store due to loyalty or reputation (e.g.,
preferring Starbucks over local coffee shops).
3. Maslow’s Hierarchy of Needs & Marketing Implications
Maslow’s five-level hierarchy explains consumer behavior based on progressive need
fulfillment.

Need Level Description Example Products Marketing Strategies

Physiological Basic survival Packaged food, clean Low-cost pricing, mass

Needs needs water distribution

Insurance, home Emphasizing reliability,

Safety Needs Protection, stability
security testimonials

Social media marketing,

Social Needs Love, belonging Fashion, dating apps
community-building

Luxury watches, Exclusive branding, influencer

Esteem Needs Status, achievement
premium cars endorsements

Self- Personal growth, Adventure tourism, Experience-driven marketing,

Actualization creativity personal coaching storytelling

Marketing Example:
• Nike appeals to self-actualization with "Just Do It," encouraging personal achievement.
• Apple targets esteem needs with premium branding and exclusive features.

4. Involvement in Consumer Behaviour

Involvement refers to the degree of interest and effort a consumer invests in a purchase
decision.
Types of Consumer Involvement
1. High Involvement – Important purchases requiring extensive decision-making (e.g.,
buying a house, car).
2. Low Involvement – Routine purchases with minimal thought (e.g., groceries, soft
drinks).
Factors Influencing Involvement
• Price & Risk – Higher cost products (cars, insurance) lead to high involvement.
• Product Differentiation – More features/options increase involvement.
• Personal Relevance – Strong emotional connection increases involvement (e.g.,
wedding dresses).
Marketing Strategies for Different Involvement Levels
• High Involvement: Provide detailed product information (e.g., Tesla’s extensive online
configurator).
• Low Involvement: Use repetitive advertising and convenience placement (e.g., Coca-
Cola at checkout counters).

PERSONALITY, SELF-IMAGE & LIFESTYLE

1. Personality in Consumer Behaviour
Personality is the sum of psychological traits that determine how a consumer interacts with
their environment. It influences brand choices, shopping habits, and risk preferences.
Key Characteristics of Personality
• Stable over time (though it may evolve).
• Unique to each person (differentiates consumers).
• Affects brand relationships (consumers choose brands that fit their personality).

2. Theories of Personality & Their Impact on Consumer Behaviour

A. Freudian Theory (Psychoanalytic Approach)
• Personality is shaped by unconscious forces and childhood experiences.
• Three components:
1. Id (Pleasure-Seeking) – Impulse buying, instant gratification (e.g., chocolate
cravings).
2. Ego (Reality-Based) – Logical purchases (e.g., investing in health insurance).
3. Superego (Moral Compass) – Ethical buying (e.g., choosing sustainable fashion).
Marketing Example:
Luxury brands like Gucci and Rolex appeal to the Id (pleasure-seeking).

B. Trait Theory
• People have measurable personality traits that influence their shopping behavior.
• Examples of Consumer Traits:
o Innovators – First to adopt new tech (e.g., early Tesla buyers).
o Brand Loyalists – Stick to one brand (e.g., Apple users).
o Impulse Shoppers – Respond to emotional advertising (e.g., flash sales).
Marketing Example:
• Nike targets achievement-oriented consumers.
• Samsung appeals to early adopters with cutting-edge tech.

3. Self-Image & Its Influence on Consumer Behaviour

Consumers buy products that match their self-perception.
Types of Self-Image

Self-Image
Definition Example
Type

Actual Self Who the consumer is today Buying everyday necessities

Ideal Self Who the consumer aspires to be Buying luxury products for status

How the consumer wants to be

Social Self Wearing designer clothes
perceived by others

Ideal Social The image one wants to project in Driving a Tesla to show environmental
Self society consciousness

Marketing Example:
• Fitness brands (e.g., Adidas) target the Ideal Self (fit, athletic lifestyle).
• Tesla appeals to the Ideal Social Self (eco-conscious, innovative).

4. Lifestyle & Consumer Behaviour

Definition of Lifestyle
A consumer’s activities, interests, and opinions (AIOs) influence their buying choices.
Lifestyle Segmentation Models
A. VALS Model (Values & Lifestyle Segmentation)
• Innovators – Trendsetters, high-income (e.g., early adopters of iPhones).
• Thinkers – Logical, information-driven (e.g., investing in long-term insurance).
• Achievers – Status-conscious (e.g., buying Rolex watches).
• Experiencers – Fun-loving, adventurous (e.g., travel, extreme sports).
B. AIO Analysis (Activities, Interests, Opinions)
• Helps identify target markets based on lifestyle habits.
 • Example:
o Gamers buy high-performance laptops.
o Health-conscious consumers prefer organic foods.
Marketing Application:
• Luxury brands target status-driven achievers.
• Sustainable brands target eco-conscious buyers.

CONCLUSION
• Motivation explains why consumers buy products, influenced by Maslow’s hierarchy.
• Personality theories help marketers understand brand preferences.
• Self-image influences purchasing decisions, aligning with how consumers see
themselves.
• Lifestyle segmentation allows for precise targeting of consumers.

ATTITUDE IN CONSUMER BEHAVIOUR

1. Meaning of Attitude
Attitude refers to a learned predisposition to respond consistently in a favorable or
unfavorable manner toward a particular object, person, or idea. In consumer behavior,
attitudes influence purchase decisions, brand preferences, and loyalty.
Key Aspects of Attitude
• Evaluative – Attitudes reflect positive or negative judgments.
• Learned – They are shaped by experiences, marketing messages, and social interactions.
• Consistent – Once formed, attitudes tend to remain stable but can change over time.
• Influential on Behavior – Attitudes impact consumer decisions but don’t always
translate into action.
Example:
A consumer who prefers Nike over Adidas has a positive attitude toward Nike, possibly due to
brand experience, marketing, or social influence.

2. Characteristics of Attitude
1. Attitudes Have an Object – They are always directed toward something (a product,
brand, service, or idea).
 2. Attitudes Are Learned – Consumers develop attitudes through personal experience,
advertisements, and peer influence.
3. Attitudes Are Consistent but Changeable – While stable, they can be altered through
persuasion or new experiences.
4. Attitudes Have a Behavioral Component – They influence consumer actions, such as
purchase decisions.
5. Attitudes Are Situationally Dependent – Different situations (e.g., price discounts)
may modify attitudes temporarily.

3. Structural Models of Attitude

There are three major models used to understand how attitudes are structured and influence
consumer behavior:
A. Tri-Component Model of Attitude
The Tri-Component Model states that attitude consists of three interrelated components:

Component Meaning Example

Cognitive (Beliefs & What a consumer knows or believes "iPhone has excellent
Knowledge) about a product/brand. camera quality."

Affective (Feelings & The emotional response or liking toward "I love the iPhone’s sleek
Emotions) a brand. design."

Conative (Behavioral The likelihood of purchasing or taking "I will buy the latest
Intention) action. iPhone."

Marketing Application
• Advertisers target the cognitive component by providing product details and benefits.
• They use emotional storytelling to enhance the affective component.
• Sales promotions and social proof influence the conative component.

B. Multi-Attribute Attitude Model

This model suggests that attitude toward a product is based on multiple attributes that a
consumer evaluates.
Key Variants:
1. Attitude-Toward-the-Object Model – Consumers evaluate products based on a set of
important attributes.
o Example: A laptop purchase may be influenced by weight, battery life,
processor speed, and price.
 2. Attitude-Toward-the-Act Model – Consumers form attitudes based on the
consequences of purchasing a product.
o Example: Buying an electric car depends on perceived benefits like cost savings
and environmental impact.
3. Theory of Reasoned Action (TRA) – Attitude and subjective norms (peer pressure,
societal views) together influence buying decisions.
o Example: A consumer likes luxury brands but may not buy them if friends
discourage it.
Marketing Application
• Brands highlight key attributes that influence consumer choice (e.g., Apple emphasizes
security and ecosystem integration).
• Marketers focus on social norms (e.g., eco-friendly brands promote sustainability to
align with social expectations).

4. Strategies to Change Consumer Attitudes

Since attitudes are learned, they can also be modified through strategic marketing and
persuasion techniques.
A. Changing Cognitive Component (Beliefs & Knowledge)
• Provide factual information (e.g., Samsung highlighting superior battery life).
• Use comparative advertising (e.g., Pepsi vs. Coca-Cola blind taste tests).
• Introduce new product attributes (e.g., electric cars focusing on performance, not just
sustainability).
B. Changing Affective Component (Emotional Reactions)
• Celebrity endorsements (e.g., Deepika Padukone for Adidas creates aspirational
appeal).
• Emotional storytelling (e.g., P&G’s ‘Thank You, Mom’ campaign).
• Aesthetic & sensory appeal (e.g., luxury brands focus on packaging and design).
C. Changing Conative Component (Behavioral Intentions)
• Limited-time offers (e.g., "Buy 1, Get 1 Free").
• Trial campaigns (e.g., Netflix offering a free trial period).
• Social proof & testimonials (e.g., Amazon using customer reviews to build trust).

5. Elaboration Likelihood Model (ELM) of Persuasion

The Elaboration Likelihood Model (ELM) explains how consumers process persuasive
messages to form or change attitudes.
Two Routes to Persuasion:

Route Definition Consumer Behavior Marketing Example

Logical, high- Consumers actively Ads emphasizing product

Central
involvement evaluate facts before quality, performance (e.g.,
Route
processing making decisions Tesla’s range, safety)

Emotional, low- Consumers use mental Ads using celebrity

Peripheral
involvement shortcuts (celebrity, endorsements, attractive visuals
Route
processing packaging, colors) (e.g., perfume ads)

Application in Marketing
• High-involvement products (cars, insurance) → Use central route with detailed,
logical messaging.
• Low-involvement products (soft drinks, fashion) → Use peripheral route with visual
appeal and emotional storytelling.
Example:
• Apple uses central route (technical specifications in keynote presentations).
• Coca-Cola uses peripheral route (happiness-themed ads).

CONCLUSION
• Attitude is a crucial factor in consumer decision-making.
• The Tri-Component Model explains attitudes as cognitive (beliefs), affective
(emotions), and conative (intentions).
• The Multi-Attribute Model shows how consumers evaluate multiple product attributes.
• Attitudes can be changed through cognitive, affective, and behavioral strategies.
• The Elaboration Likelihood Model (ELM) helps marketers decide whether to use
logical or emotional persuasion.

LEARNING & MEMORY IN CONSUMER BEHAVIOUR

1. Meaning of Learning in Consumer Behaviour
Learning refers to a relatively permanent change in consumer behavior due to past
experiences, observations, and interactions with marketing stimuli.
Key Characteristics of Consumer Learning
• Learning is a Continuous Process – Consumers learn from past purchases and adjust
their future choices.
 • Learning Can Be Intentional or Incidental – Consumers can actively seek
information or learn passively through advertisements and social influence.
• Learning Affects Brand Perception and Loyalty – Repeated exposure to brands (e.g.,
Apple, Nike) reinforces positive associations.
• Learning is Based on Experience – Personal product use or peer recommendations
shape consumer preferences.
Example:
A first-time buyer of organic food learns through repeated use and positive health benefits,
leading to brand loyalty toward Organic India or 24 Mantra Organic.

2. Types of Learning in Consumer Behaviour

Consumer learning is influenced by behavioral and cognitive theories. The two key types of
learning are:
A. Classical Conditioning (Pavlovian Learning)
Classical conditioning is learning through association, where a previously neutral stimulus
becomes associated with a response.
Key Principles of Classical Conditioning:
1. Unconditioned Stimulus (UCS) – A stimulus that naturally triggers a response (e.g., the
smell of food makes people hungry).
2. Unconditioned Response (UCR) – The natural reaction to the UCS (e.g., hunger from
food smell).
3. Conditioned Stimulus (CS) – A previously neutral stimulus that, after repeated pairing
with UCS, triggers a response (e.g., McDonald's logo).
4. Conditioned Response (CR) – The learned reaction to the conditioned stimulus (e.g.,
feeling hungry when seeing the McDonald’s logo).
Marketing Application:
• Brand Logos & Jingles – McDonald's "I’m Lovin’ It" jingle creates an emotional
response.
• Celebrity Endorsements – When a celebrity endorses a perfume, the positive image
of the celebrity transfers to the product.
• Repetition in Advertising – Coca-Cola’s red color and Santa Claus ads create a festive,
happy association.
B. Operant Conditioning (Instrumental Learning)
Operant conditioning is learning through rewards and punishments, developed by B.F.
Skinner. Consumers modify their behavior based on positive or negative outcomes.
Key Principles of Operant Conditioning:
1. Positive Reinforcement – Rewarding desirable behavior to encourage repetition.
 o Example: Loyalty programs (Starbucks Rewards) encourage repeat purchases.
2. Negative Reinforcement – Removing an unpleasant experience to reinforce behavior.
o Example: A detergent ad showing stains removed easily encourages buying the
product.
3. Punishment – Introducing an unpleasant consequence to discourage behavior.
o Example: Ads showing the dangers of smoking or drunk driving.
4. Shaping – Gradually rewarding closer approximations to the desired behavior.
o Example: Trial offers lead to purchase (Spotify Free → Spotify Premium).
Marketing Application:
• Buy One Get One Free (BOGO) – Encourages trial purchases.
• Cashback Offers & Discounts – Reinforces repeat purchases.
• Gamification in Apps (Duolingo, Swiggy Badges) – Keeps users engaged.

3. Memory in Consumer Behaviour

Memory is the process of encoding, storing, and retrieving information, which affects how
consumers recall brands and advertisements.
A. Structure of Memory
Memory is divided into three types:

Type of Memory Function Example

Temporary storage of sensory

Seeing a McDonald's ad while
Sensory Memory information (lasts for a few
scrolling online
seconds)

Short-Term Memory Limited storage for immediate Remembering a brand name

(Working Memory) processing (lasts for a few minutes) seen in an Instagram ad

Permanent storage of processed Recalling Apple’s slogan “Think

Long-Term Memory
information (lasts for years) Different” from an old ad

B. How Consumers Process Information for Memory Retention

1. Repetition (Exposure Effect) – Frequent exposure to an ad improves recall (e.g.,
repeated Netflix ads for a new show).
2. Chunking (Grouping Information) – Breaking information into small, memorable
chunks (e.g., Coca-Cola = "Coke").
3. Encoding (Relating to Past Experiences) – Consumers remember products linked to
emotions (e.g., nostalgia in Cadbury Dairy Milk ads).
4. Retrieval Cues (Triggers for Recall) – Brand logos, colors, and slogans help consumers
recall products.
C. Marketing Strategies for Enhancing Consumer Memory

Strategy Application Example

Slogans & Memorable phrases stick in long-term

Nike’s “Just Do It”
Taglines memory

Music & Jingles Enhances recall through auditory memory Airtel’s theme music

Storytelling Ads Emotional connection improves retention Google’s “Reunion” ad

Amul Girl, Ronald

Brand Mascots Characters create strong brand associations
McDonald

CONCLUSION
• Consumer learning occurs through classical conditioning (associative learning) and
operant conditioning (rewards/punishments).
• Memory structures (sensory, short-term, long-term) influence how consumers recall
and recognize brands.
• Marketers use repetition, encoding, and retrieval cues to strengthen consumer
memory and reinforce brand preference.

SOCIAL AND CULTURAL ASPECTS OF CONSUMER BEHAVIOUR

Consumer behaviour is deeply influenced by social and cultural factors, including values,
religion, culture, sub-culture, reference groups, family decision-making, and social class. These
factors shape preferences, buying habits, and brand choices.
1. VALUES IN CONSUMER BEHAVIOUR
Definition:
Values are enduring beliefs that a particular mode of conduct or state of existence is socially
preferable. They guide consumer behaviour by influencing needs, priorities, and ethical
considerations.
Types of Consumer Values
1. Terminal Values – Long-term life goals such as happiness, freedom, and success.
o Example: Consumers valuing status prefer luxury brands like Rolex.
2. Instrumental Values – Modes of behaviour that help in achieving terminal values, such
as honesty, hard work, and responsibility.
o Example: Consumers valuing environmental responsibility prefer sustainable
brands like Patagonia.
Marketing Implications of Values:
 • Marketers align brand messaging with consumer values (e.g., Dove’s "Real Beauty"
campaign promotes body positivity).
• Global brands adapt to cultural values (e.g., McDonald's offers vegetarian options in
India due to cultural dietary preferences).

2. RELIGION AND CONSUMER BEHAVIOUR

Definition:
Religion is a set of beliefs and practices concerning the sacred, influencing social norms and
consumption patterns.
Impact of Religion on Consumer Behaviour
1. Dietary Preferences – Hindus avoid beef, while Muslims do not consume pork.
2. Purchase Timing – Consumers may buy new products during religious festivals (e.g.,
Diwali in India, Christmas globally).
3. Ethical Consumption – Some religious consumers prefer fair trade, cruelty-free, or
eco-friendly products.
Marketing Implications:
• Brands launch festive campaigns (e.g., Amazon’s "Great Indian Festival" during Diwali).
• Religious sentiments are considered in advertisements, product packaging, and
positioning.
• Halal or kosher-certified products cater to specific religious consumers.

3. CULTURE AND CONSUMER BEHAVIOUR

Definition:
Culture is the collective set of beliefs, customs, and behaviours that guide consumer
decision-making. It is learned, shared, and transmitted across generations.
Cultural Influences on Consumption
1. Language & Communication Styles – Brands adjust messaging (e.g., Coca-Cola’s
regional language ads).
2. Symbolism in Products – Certain colours or symbols carry cultural meanings (e.g.,
Red = prosperity in China).
3. Consumer Rituals – Gift-giving, weddings, and festivals drive demand for specific
products.
Marketing Implications:
• Localization Strategy – KFC adapted its menu in China by offering rice-based meals.
• Custom Packaging – Brands use culturally relevant symbols (e.g., Gold packaging for
Diwali chocolates).
 • Celebrity Endorsements – Bollywood stars in Indian ads, K-pop idols in Korean
campaigns.

4. SUBCULTURE AND CONSUMER BEHAVIOUR

Definition:
A subculture is a distinct group within a culture that shares unique beliefs, values, and
behaviours.
Types of Subcultures:
1. Age-Based Subcultures
o Gen Z (Born 1997-2012): Prefers digital experiences, influencers, and
sustainable brands.
o Baby Boomers (Born 1946-1964): Value quality, reliability, and traditional
advertising.
2. Ethnic Subcultures
o Hispanic Consumers in the US: Prefer Spanish-language advertising.
o South Asian Consumers: Demand spicy food options in global fast-food
chains.
3. Lifestyle Subcultures
o Vegan Consumers: Seek plant-based alternatives (Beyond Meat, Oatly).
o Fitness Enthusiasts: Prefer athleisure brands like Lululemon & Nike.
Marketing Implications:
• Targeted Advertising: Nike's "You Can’t Stop Us" ad focused on diverse subcultures.
• Product Customization: Starbucks offers turmeric lattes for Indian consumers.

5. REFERENCE GROUPS AND CONSUMER BEHAVIOUR

Definition:
A reference group is a group that influences an individual's attitudes, beliefs, and buying
decisions.
Types of Reference Groups:
1. Primary Groups – Close contacts (family, friends).
2. Secondary Groups – Work colleagues, professional organizations.
3. Aspirational Groups – Groups people wish to belong to (celebrities, influencers).
4. Dissociative Groups – Groups consumers avoid association with (e.g., luxury consumers
avoiding mass-market brands).
Marketing Implications:
• Influencer Marketing – Brands collaborate with social media influencers.
• Word-of-Mouth (WOM) Advertising – Referral programs (Uber’s invite rewards).

6. FAMILY DECISION MAKING AND CONSUMER BEHAVIOUR

Definition:
Family is a primary consumer unit where purchasing decisions are influenced by age, role,
and lifecycle stage.
Types of Family Decision-Making Roles:
1. Initiator – Suggests the idea of purchasing a product.
2. Influencer – Influences the decision (e.g., teenagers influencing gadget purchases).
3. Decider – Makes the final decision (often parents).
4. Buyer – Purchases the product.
5. User – The end consumer of the product.
Family Life Cycle Stages & Their Influence on Consumption:

Stage Key Consumer Trends

Young Singles Spend on fashion, gadgets, entertainment

Newly Married Couples Spend on household essentials, vacations

Families with Young Kids Buy baby products, education plans

Older Couples Prefer luxury, healthcare, and retirement planning

Marketing Implications:
• Kidfluence – Children influence family purchases (McDonald's Happy Meals).
• Segmented Advertising – Different messages for different life stages (insurance ads for
young parents).

7. SOCIAL CLASS AND CONSUMER BEHAVIOUR

Definition:
Social class is a hierarchical grouping based on factors like income, occupation, and
education, affecting purchasing power and brand preferences.
Types of Social Classes & Their Buying Behaviour
1. Upper Class – Prefers luxury goods, exclusive brands, high-quality products.
2. Middle Class – Buys branded yet affordable products (Samsung, Honda).
 3. Lower Class – Focuses on functional, value-for-money products.
Marketing Implications:
• Luxury Brands Use Prestige Pricing (Gucci, Rolex).
• Mass Market Brands Offer Budget-Friendly Alternatives (Zara, H&M).
• Tiered Product Strategies – Apple has iPhone SE for budget buyers & iPhone Pro
for premium users.

CONCLUSION
• Social and cultural influences shape consumer choices.
• Marketers tailor products, advertisements, and pricing strategies based on values,
religion, culture, subcultures, reference groups, family roles, and social class.
• Understanding these influences helps brands create effective marketing
campaigns that resonate with their target audience.

Consumer Behaviour and Communication in the Age of Social Media, Emerging

Technologies, and Sustainability
Consumer behaviour has evolved significantly due to digital transformation, social media
influence, and growing sustainability concerns. Consumers are now more connected,
informed, and conscious about their purchases. Businesses must adapt their marketing
strategies, communication channels, and product offerings to remain relevant.

1. Consumer Behaviour in the Age of Social Media

A. Role of Social Media in Shaping Consumer Behaviour
Social media platforms like Instagram, Facebook, Twitter, YouTube, and TikTok have
transformed how consumers engage with brands, seek information, and make purchasing
decisions.
1. Peer Influence & User-Generated Content (UGC)
o Consumers trust reviews, testimonials, and influencer recommendations
more than traditional ads.
o Example: Unboxing videos on YouTube and TikTok influence gadget purchases.
2. Social Commerce & Instant Gratification
o Brands leverage social media for direct selling via Facebook Shops, Instagram
Shopping, and TikTok Commerce.
 o Example: Zara’s "Shop the Look" feature lets users buy products from Instagram
posts.
3. Personalized & Interactive Engagement
o AI-driven social media ads target consumers based on search history,
preferences, and online behaviour.
o Example: Amazon’s recommendation engine suggests products based on
previous purchases.
4. FOMO (Fear of Missing Out) & Limited-Edition Marketing
o Scarcity tactics drive impulse buying through flash sales, countdown deals,
and exclusivity.
o Example: Nike’s "Sneakers Drop" app releases limited-edition shoes with time-
sensitive buying options.

B. Social Media & Communication Strategies

1. Influencer Marketing & Micro-Influencers
o Brands collaborate with influencers to build authenticity and trust.
o Micro-influencers (10K-100K followers) generate higher engagement than
celebrities.
o Example: Beauty brands like Glossier rely heavily on influencer marketing.
2. Conversational Marketing & Chatbots
o Brands use AI-powered chatbots for instant customer service on WhatsApp,
Messenger, and Instagram DMs.
o Example: Sephora’s chatbot provides beauty recommendations.
3. Brand Advocacy & Community Engagement
o Loyal consumers become brand advocates through referrals, shares, and online
discussions.
o Example: Apple’s user community creates product tutorials, discussions, and
advocacy content.
4. Crisis Management & Reputation Handling
o Negative reviews spread rapidly; brands must respond quickly and
transparently.
o Example: Zomato handles customer complaints via Twitter with humor and
quick resolutions.

2. Consumer Behaviour & Emerging Technologies

A. Role of Emerging Technologies in Consumer Decision-Making
New technologies like AI, AR/VR, IoT, and Blockchain are transforming how consumers
discover, evaluate, and purchase products.
1. Artificial Intelligence (AI) & Machine Learning
o AI predicts consumer preferences and offers hyper-personalized
recommendations.
o Example: Netflix’s AI suggests content based on past viewing history.
2. Augmented Reality (AR) & Virtual Reality (VR)
o AR enhances online shopping with virtual try-ons for makeup, furniture, and
fashion.
o Example: IKEA’s "Place" app lets users visualize furniture in their homes.
3. Voice Commerce & Smart Assistants
o Voice-activated assistants like Amazon Alexa & Google Assistant enable
hands-free shopping.
o Example: Consumers reorder groceries via Alexa’s voice commands.
4. Blockchain & Transparency in Consumer Trust
o Blockchain ensures authenticity, anti-counterfeiting, and ethical sourcing.
o Example: LVMH uses blockchain for luxury goods verification.
5. Internet of Things (IoT) & Smart Homes
o IoT devices automate reordering (e.g., Amazon Dash Replenishment).
o Example: Samsung’s smart fridge suggests recipes based on available groceries.

B. Impact of Technology on Marketing Strategies

1. Predictive Analytics & Big Data Marketing
o Brands analyze purchase history, online activity, and preferences for targeted
marketing.
o Example: Spotify Wrapped personalizes music playlists based on listening
habits.
2. Omnichannel Retailing & Seamless Shopping Experiences
o Consumers expect a consistent experience across online, mobile, and in-store
shopping.
o Example: Nike’s "Click and Collect" allows users to buy online and pick up in-
store.
3. Personalized Digital Advertising & Retargeting
o Brands use AI to show relevant ads based on past searches.
o Example: Facebook and Google Ads retarget users who abandon carts.
3. Consumer Behaviour & Sustainability Trends
A. Rise of Green Consumerism
Consumers are increasingly eco-conscious, preferring brands that align with sustainability
values.
1. Eco-Friendly & Ethical Consumption
o Consumers demand sustainable products, cruelty-free cosmetics, and ethical
sourcing.
o Example: Tesla’s electric vehicles cater to environmentally conscious buyers.
2. Minimalist & Zero-Waste Consumption
o Rise of zero-waste packaging, refill stations, and reusable products.
o Example: Lush Cosmetics offers package-free shampoo bars.
3. Circular Economy & Product Longevity
o Brands introduce recycling programs and second-hand marketplaces.
o Example: Patagonia’s "Worn Wear" lets customers buy and sell used Patagonia
gear.

B. Sustainable Marketing & Communication Strategies

1. Green Branding & Transparency
o Brands communicate sustainability commitments and carbon footprint
reduction.
o Example: Apple highlights its carbon-neutral goals in product launches.
2. Cause-Related Marketing
o Brands support environmental causes as part of their brand identity.
o Example: TOMS Shoes donates a pair for every pair sold.
3. Eco-Labelling & Certifications
o Consumers look for Fair Trade, USDA Organic, and FSC-certified products.
o Example: Starbucks promotes Rainforest Alliance-certified coffee.
4. Sustainable Influencer Marketing
o Eco-conscious influencers educate audiences on sustainability.
o Example: Greta Thunberg’s activism influences Gen Z’s sustainable choices.
Conclusion
• Social media has revolutionized consumer communication, influencing purchases
through influencers, reviews, and interactive content.
• Emerging technologies like AI, AR/VR, blockchain, and IoT are personalizing
consumer experiences and transforming shopping habits.
• Sustainability is no longer a niche trend but a major factor in consumer decision-
making, pushing brands towards eco-friendly practices.
• Successful brands combine digital innovation with ethical marketing to stay
relevant in an ever-changing consumer landscape.

Consumer Decision Process and Models of Consumer Behaviour

1. Consumer Decision Process
Consumer decision-making involves several sequential steps that guide consumers from
problem recognition to post-purchase behaviour. These stages help marketers understand how
consumers think, evaluate, and choose products.
Stages of the Consumer Decision Process
1.1 Problem Recognition
• The first step occurs when a consumer identifies a need or problem due to internal
(physiological or psychological needs) or external stimuli (advertisements, peer
influence).
• Types of Needs:
o Functional Needs: Basic necessities (e.g., food, clothing)
o Psychological Needs: Status, self-esteem (e.g., luxury goods)
o Social Needs: Desire for belonging (e.g., social media influence)
1.2 Information Search
• Once a need is recognized, consumers seek information from internal and external
sources.
• Types of Information Sources:
o Internal Search: Memory, past experiences
o External Search: Advertising, online reviews, word of mouth
• Extent of Search Depends on:
o Involvement level (high/low involvement products)
o Risk perception (financial, social, performance risks)
1.3 Alternative Evaluation
• Consumers assess different brands based on attributes like price, quality, features, and
reputation.
• Evaluation Models:
o Compensatory Model: Trade-offs between attributes (e.g., a cheaper but less
durable product)
o Non-Compensatory Model: Strict decision criteria (e.g., rejecting all phones
without 5G)
o Perceptual Mapping: Visual representation of how consumers perceive brands
(e.g., premium vs. economy segment)
1.4 Purchase Decision
• The final choice depends on:
o Product availability
o Seller trustworthiness
o Price promotions & discounts
o Consumer emotion (impulse buying vs. rational decision-making)
1.5 Post-Purchase Behaviour
• Customer Satisfaction: If expectations match the experience, satisfaction is high.
• Cognitive Dissonance: Post-purchase doubt; marketers reduce this through warranties,
follow-up emails, customer support.
• Brand Loyalty & Word of Mouth: Satisfied consumers lead to positive
recommendations and repeat purchases.
2. Models of Consumer Behaviour
Consumer behaviour models explain why and how consumers make decisions.
2.1 Pavlovian Model (10 Marks)
• Based on Pavlov’s Classical Conditioning, where repeated exposure to stimuli creates
a learned response.
• Marketing Implication:
o Brand jingles (e.g., McDonald’s “I’m Lovin’ It”)
o Celebrity endorsements (positive associations)
o Emotional triggers in advertising to build brand recall
• Example: A brand consistently uses a particular color, sound, or phrase in advertising
(e.g., Coca-Cola’s red color and Christmas campaigns) to trigger positive associations and
habitual purchases.
2.2 Economic Model (10 Marks)
 • Assumes consumers are rational decision-makers who aim to maximize utility within
budget constraints.
• Key Assumptions:
o Consumers have perfect information
o Choices are made to maximize satisfaction
o Price and income influence purchase decisions
• Limitations:
o Ignores emotional, psychological factors
o Overestimates logical reasoning in purchases
• Example: A customer compares different mobile phone brands based on features and
price to get the best value for money.
2.3 Sociological Model (10 Marks)
• Consumers are influenced by social class, family, peer groups, and culture.
• Example:
o Aspirational purchases based on social class (e.g., luxury handbags in high-
income groups)
o Family buying influence (e.g., children influencing food purchases)
o Cultural influences on product preferences (e.g., regional food choices)
• Marketing Implication: Marketers use social proof (customer reviews, influencer
marketing) to attract specific consumer groups.
2.4 Black Box Model (10 Marks)
• Consumer behaviour is influenced by external stimuli (marketing efforts &
environment) and internal decision processes.
• Key Components:
o Input: Marketing efforts & environmental factors
o Black Box: Consumer’s mental processing
o Output: Purchase decision
• Marketing Implication: Focus on how advertising and pricing affect consumer
responses.
• Example: A supermarket places discounted products at checkout to influence impulse
buying.
2.5 Nicosia Model (10 Marks)
• Stages:
1. Exposure to advertisements → Formation of brand attitude
 2. Evaluation → Search for product information
3. Purchase Decision
4. Post-Purchase Feedback
• Example: A new smartphone launch → Online reviews → Buying decision → User
feedback impacts future sales.
• Marketing Implication: Effective advertising leads to brand trust and loyalty.
2.6 Schiffman-Kanuk Model (10 Marks)
• A holistic approach considering psychological, social, and marketing influences.
• Key Factors:
o Input: Marketing stimuli & social influences
o Processing: Consumer perception & memory
o Output: Purchase decision & post-purchase behaviour
• Marketing Implication: Highlights the importance of consumer attitudes and
perception.
• Example: Brand storytelling in advertisements influences how consumers emotionally
connect with a product.
2.7 Howard-Sheth Model (10 Marks)
• Focuses on repeat purchasing behaviour & brand loyalty formation.
• Three Types of Consumer Decisions:
1. Extensive Problem-Solving: First-time purchase (e.g., buying a house)
2. Limited Problem-Solving: Some experience but new choice (e.g., switching
phone brands)
3. Habitual Decision-Making: Routine purchases (e.g., daily groceries)
• Marketing Implication: Explains how customers transition from first-time buyers to
loyal customers.
• Example: A consumer initially researches multiple car brands but eventually remains
loyal to a single brand after multiple purchases.
Pavlovian Model of Consumer Behaviour
Introduction
The Pavlovian model, developed by the Russian psychologist Ivan Pavlov, explains learning
and behavior through the concept of classical conditioning. This model suggests that
consumer behavior can be shaped through repeated associations between stimuli and
responses, similar to how Pavlov conditioned dogs to associate a bell sound with food.
In marketing, the Pavlovian model is applied to create brand associations, habitual buying
behavior, and consumer loyalty.

Key Components of the Pavlovian Model

1. Unconditioned Stimulus (UCS)
o A naturally occurring stimulus that triggers a response.
o Example: The aroma of fresh coffee (UCS) makes a person feel energized.
2. Unconditioned Response (UCR)
o The natural reaction to the unconditioned stimulus.
o Example: Feeling energized after drinking coffee.
3. Conditioned Stimulus (CS)
o A previously neutral stimulus that, after association with the UCS, triggers a
response.
o Example: A particular coffee brand's logo or jingle.
4. Conditioned Response (CR)
o The learned response to the conditioned stimulus.
o Example: Seeing the coffee brand's logo makes the consumer feel energized,
even before drinking the coffee.

Pavlovian Learning Process in Consumer Behaviour

1. Repetition: Continuous exposure to advertising, branding, or packaging reinforces
associations.
2. Stimulus Generalization: Consumers associate similar stimuli with the same response
(e.g., all colas remind them of Coca-Cola).
3. Stimulus Discrimination: Consumers differentiate between similar products (e.g.,
preferring Coke over Pepsi).

Marketing Applications of the Pavlovian Model

 1. Branding & Logos – Companies use colors, slogans, and jingles to create associations
(e.g., McDonald's golden arches).
2. Celebrity Endorsements – Pairing a brand with a famous personality (e.g., Nike and
Cristiano Ronaldo).
3. Product Packaging & Design – Unique packaging can trigger positive consumer
emotions.
4. Advertising & Repetitive Messaging – Repeated ads create a connection between the
brand and the desired emotion.
5. In-store Experience – Music, scents, and store ambiance can condition consumer
behavior (e.g., bakery smell in supermarkets).

Unconditioned Stimulus (UCS) → Unconditioned Response (UCR)

(Coffee aroma) (Feeling energized)
|
| (Repeated association)
↓
Conditioned Stimulus (CS) → Conditioned Response (CR)
(Coffee brand logo) (Feeling energized)

Economic Model of Consumer Behaviour in Marketing

Introduction
The Economic Model of Consumer Behaviour assumes that consumers are rational and seek
to maximize their utility (satisfaction) given their budget constraints. In the context of
marketing, this model helps to predict and understand how consumers make purchasing
decisions based on factors like price, income, preferences, and the utility derived from a product
or service.
This model is based on economic principles such as marginal utility and budget constraints.
Marketers use this model to predict consumer choices and design strategies that align with
consumers' preferences and purchasing power.

Key Components of the Economic Model

1. Utility
o Utility refers to the satisfaction or benefit consumers derive from consuming a
good or service.
o Total Utility is the overall satisfaction from consuming a set quantity of a good.
o Marginal Utility (MU) is the additional satisfaction from consuming one more
unit of a good.
o In marketing, understanding marginal utility helps determine how much a
consumer is willing to pay for an additional unit of a product.
2. Budget Constraint
o A budget constraint represents the limited income consumers have to spend on
goods and services.
o The consumer’s decision is constrained by income and the prices of products.
Marketers must consider this when setting product prices or creating packages.
3. Indifference Curves
o Indifference Curves represent combinations of goods that give the consumer
equal satisfaction.
o Marketers use indifference curves to understand consumer preferences and how
they trade-off one product for another while maintaining the same satisfaction
level.
o Higher curves represent higher utility.
4. Opportunity Cost
o Opportunity Cost is the trade-off consumers face when making decisions—
what they must sacrifice to obtain something else.
o Marketers often use value propositions to demonstrate how the benefits of
their product outweigh the opportunity cost of choosing it over alternatives.
5. Consumer Equilibrium
o Consumer equilibrium is achieved when the consumer maximizes utility given
their budget.
o marketers understand what combinations of products a consumer would choose,
given their income and preferences.
How the Economic Model Applies to Marketing
1. Price Sensitivity and Demand Elasticity
o The economic model helps marketers understand price elasticity of demand,
or how sensitive consumers are to price changes.
o For example, if the marginal utility from a product is high, consumers may be
less sensitive to price changes, allowing for higher prices.
2. Product Positioning and Differentiation
o Marketers use the indifference curve concept to identify how consumers
perceive different products and which features or attributes are valued most.
o Product differentiation is key to creating products that stand out and are
perceived as offering more utility than competitors.
3. Targeting and Segmentation
o Understanding the budget constraint helps marketers segment consumers based
on their income levels.
o By targeting specific consumer segments, marketers can tailor offerings to
maximize utility and cater to different preferences, which is essential for
personalized marketing.
4. Bundling and Promotions
o The concept of marginal utility helps marketers design bundled offerings.
When products are bundled, the perceived value of the entire package may
increase, encouraging consumers to buy more and maximize total utility within
their budget.
o Sales promotions are also designed to temporarily reduce the cost of a product,
altering the budget constraint and encouraging consumers to purchase more.
5. Optimal Pricing Strategy
o The model suggests that optimal pricing occurs when the price reflects the
marginal utility the consumer gains.
o For luxury items, consumers may be willing to pay a higher price due to the
higher perceived utility, whereas for everyday items, consumers are more
sensitive to price changes.

Diagram
Indifference Curve (Higher Utility)
|
| /\
| / \
 | / \
| / \
| / \
Budget Line (Budget Constraint)
| /
| /
| /
| /
Optimal Consumption Point (Tangent Point)
Explanation of the Diagram
• The Budget Line represents the various combinations of two products the consumer
can afford.
• The Indifference Curves represent different levels of satisfaction.
• The Optimal Consumption Point (where the budget line is tangent to the highest
indifference curve) shows the consumer's choice, which marketers use to predict and
optimize product offerings.

Conclusion for Marketing Perspective

The Economic Model of Consumer Behaviour provides valuable insights for marketers about
how consumers make purchasing decisions based on budget constraints, preferences, and
utility. By applying this model, marketers can:
• Set competitive prices
• Tailor marketing campaigns based on consumer preferences and income levels
• Design effective product bundles and promotions
• Optimize consumer satisfaction and long-term brand loyalty
Understanding how consumers allocate their resources allows companies to better align their
offerings with the market’s demand and maximize revenue.

Sociological Model of Consumer Behaviour in Marketing

Introduction
The Sociological Model of Consumer Behaviour examines how social factors influence the
consumption decisions of individuals. Unlike the economic model, which focuses on individual
rationality and utility maximization, the sociological model acknowledges that consumers are
influenced by their social environment, including groups, cultural norms, and social networks.
In marketing, understanding sociological factors is crucial for segmenting markets, designing
advertisements, and developing products that resonate with specific social groups and
communities.

Key Components of the Sociological Model

1. Social Groups
o Consumers belong to various social groups that influence their preferences and
purchasing decisions. These can include:
▪ Family: The family unit often has a significant influence on purchasing
decisions, especially for products like food, clothing, and household
goods.
▪ Peer Groups: Social groups formed by friends, colleagues, and
acquaintances can affect consumer choices. Peer pressure or group
norms often dictate brand preferences or lifestyle choices.
▪ Reference Groups: These are groups to which individuals compare
themselves. For example, a person might buy a luxury item to be part of
an elite social group, even if they don’t use it regularly.
2. Social Class
o Social class is a critical determinant of consumer behavior. It influences the
types of products purchased, brand preferences, and overall spending
patterns.
o Marketers often segment consumers based on income, education, occupation,
and lifestyle to tailor products for different social classes.
o Consumers in higher social classes might value quality and exclusivity, while
those in lower classes may prioritize value and price.
3. Cultural and Sub-Cultural Influences
o Culture: The set of beliefs, values, and practices that members of a society share.
Cultural factors influence a consumer’s choices in everything from food
preferences to the types of clothing they wear.
o Subcultures: Within larger cultures, subcultures exist (e.g., youth culture, ethnic
groups) that have specific preferences, behaviors, and consumption patterns.
Marketers must understand these to target niche segments effectively.
o Example: A brand marketing a specific food item in India will have to consider
regional preferences influenced by cultural diversity (e.g., vegetarian vs. non-
vegetarian preferences).
4. Family and Household Dynamics
o In many cases, purchasing decisions are made at the household level, rather
than by an individual.
o Family roles in purchasing decisions vary by product category:
 ▪ Initiator: The person who suggests or decides on the purchase.
▪ Influencer: The person who influences the decision.
▪ Decider: The individual who makes the final decision.
▪ Buyer: The person who actually purchases the item.
▪ User: The person who uses the product or service.
5. Social Networks and Online Communities
o With the advent of the internet and social media, social networks play a
significant role in shaping consumer behavior.
o Online reviews, social media influencers, and peer recommendations can
heavily influence purchasing decisions.
o Consumers often look to these networks for social proof, validating their
choices through the experiences of others.
o Marketers use social media platforms to engage with potential customers,
using influencers or community engagement to create brand loyalty.

How Sociological Model Applies to Marketing

1. Targeting Specific Social Groups
o By understanding the influence of social groups, marketers can target specific
audiences effectively. For example, an ad targeting teenagers might focus on
peer influence and group identity.
o Products can be marketed as tools for social acceptance or status enhancement,
which resonates with consumers’ desire to fit in or stand out in their social
circles.
2. Cultural Adaptation of Products
o Products and marketing messages must be adapted to reflect the values and
beliefs of different cultural and sub-cultural groups.
o For example, international brands must modify their marketing strategies when
entering foreign markets to resonate with local cultural norms.
o Example: A Western fast-food chain entering India might offer vegetarian
options to cater to local dietary preferences.
3. Family-Oriented Marketing
o Products aimed at families should consider household dynamics, where
decisions may be made collectively, especially for larger purchases like cars,
homes, or electronics.
o Marketers often create family-oriented campaigns that appeal to the entire
family unit, rather than individual consumers.
4. Influence of Social Media and Networks
 o Social media has amplified the importance of social influence in consumer
decisions.
o Marketers increasingly use influencers, user-generated content, and social
proof to encourage purchases and build trust among consumers.
5. Positioning for Social Status
o Products can be marketed to appeal to consumers’ desire for social status and
belonging to a particular group.
o Luxury brands often appeal to consumers in higher social classes who want to
signal their status to others.

Social Groups
|
------------------------------------------------
| |
Family and Household Peer Groups & Social Networks
| |
Cultural/Subcultural Influences Social Class & Status

Explanation of the Diagram

• The central influences on consumer behavior (Social Groups, Family, Peer Networks,
Social Class) are interconnected.
• Consumers’ choices are affected by both external social influences (family, peer
groups, social networks) and internal cultural factors (cultural values, subcultures).
• Social class and status determine the overall lifestyle and spending behavior of
consumers.

Black Box Model of Consumer Behavior in Marketing

Introduction
The Black Box Model of consumer behavior focuses on the process that occurs within a
consumer's mind, interpreting the stimuli they receive from the environment (marketing
messages, social influences, personal experiences) and translating them into purchasing
decisions. This model is referred to as the "black box" because it emphasizes the invisible
cognitive process that happens between exposure to external stimuli and the final purchasing
decision, making it difficult to observe and measure directly.
Marketers use the Black Box Model to understand consumer decision-making, even though the
internal processes (moods, attitudes, preferences) remain hidden. The model provides valuable
insights for marketers to influence consumer behavior by focusing on the stimuli and the
response.

Key Components of the Black Box Model

1. Stimuli (Input)
o The stimuli refer to external factors that influence a consumer's decision-
making process. These stimuli can be divided into:
▪ Marketing Stimuli: Advertisements, product features, pricing,
promotional offers, packaging, and store layout.
▪ Environmental Stimuli: Social influences, cultural factors, family, and
peer groups.
o Marketers use various techniques to attract attention and influence consumer
responses, such as brand positioning, persuasive advertising, and social media
campaigns.
2. The Black Box (Cognitive Process)
o The "black box" refers to the mental processes consumers go through as they
interpret and filter the stimuli they receive. These processes include:
▪ Perception: How consumers interpret the stimuli and form impressions
of products, brands, and advertisements. The perception is influenced by
personal experiences, biases, and emotions.
▪ Motivation: The internal drive to fulfill needs, which could range from
basic needs (food, shelter) to psychological needs (status, belonging).
▪ Learning: Consumers develop preferences and behaviors through
exposure to new information, experiences, and feedback from previous
purchases.
▪ Attitudes and Beliefs: The mental frameworks consumers develop
about products, brands, or services. These are shaped by personal
experiences and external influences and are critical in shaping purchase
decisions.
▪ Personality and Lifestyle: Consumers' lifestyles, personal values, and
personality traits influence their choices. For example, environmentally-
conscious consumers may prefer eco-friendly products.
3. Response (Output)
o The response is the final decision made by the consumer after processing the
stimuli. This can manifest in various forms:
▪ Purchase Decision: Whether or not to buy a product.
▪ Brand Loyalty: The consumer may develop loyalty to a brand if their
expectations are consistently met.
 ▪ Post-Purchase Behavior: How the consumer reacts after the purchase,
including satisfaction, dissatisfaction, and the likelihood of
recommending the product to others (word-of-mouth).

How the Black Box Model Applies to Marketing

1. Stimulus Control in Marketing
o Marketers aim to influence the stimuli that consumers are exposed to. For
example, attractive advertisements, well-designed packaging, and appealing
store layouts are used to capture attention and create positive perceptions of the
product.
o Product placement in movies, TV shows, and on social media is also a way of
influencing consumer behavior by providing positive stimuli that align with their
preferences.
2. Perception Management
o Since perception plays a significant role in the Black Box Model, marketers
carefully craft their messaging to ensure that the consumer perceives the
product in a desired way.
o Brand positioning is an example of how marketers shape consumer
perceptions. By associating the brand with particular qualities (luxury, reliability,
eco-friendliness), companies can influence consumer choice.
3. Consumer Motivation and Needs
o Marketers use the understanding of consumer needs to create targeted
messages. For example, using Maslow's hierarchy of needs, marketers can focus
on self-esteem or social belonging for higher-end products or services.
o Emotional appeals (e.g., advertisements that invoke happiness, security, or
excitement) can trigger motivation in consumers to purchase a product.
4. Learning and Consumer Behavior
o Marketers understand that consumer behavior is often learned from past
experiences and information. By offering rewards, discounts, or loyalty
programs, companies encourage repeat purchases and create a positive
feedback loop.
o Post-purchase follow-up (surveys, reviews) is an essential part of the learning
process, as it reinforces positive experiences and helps correct negative ones.
5. Social and Psychological Influences
o Consumers are influenced by their social circles (family, peers) and cultural
backgrounds, which marketers need to consider when targeting specific
segments.
o Psychological factors like perception, motivation, and attitudes influence
how consumers respond to advertising and promotional tactics. For instance,
 brands focusing on status and prestige appeal to consumers’ psychological needs
for self-actualization and social acceptance.

Marketing Stimuli --> Consumer's Black Box --> Consumer Response

(Advertisements, (Perception, Motivation, (Purchase Decision,
Product Features, Learning, Attitudes, Beliefs) Brand Loyalty, etc.)
Price, Promotion)
|
Environmental Stimuli (Social Influence, Cultural Factors, etc.)

Explanation of the Diagram

• Stimuli: External factors such as advertising, product features, pricing, and
environmental influences affect the consumer's decision-making process.
• Black Box: The internal mental process where perception, motivation, and other
psychological factors come into play.
• Response: The final consumer response, which could be a purchase, brand loyalty, or
post-purchase behavior.

Conclusion for Marketing Perspective

The Black Box Model of consumer behavior highlights that the decision-making process is
influenced by various stimuli, which are interpreted and processed internally by the consumer.
Although marketers cannot observe the internal workings of the consumer’s mind directly, they
can influence the inputs (stimuli) and predict the likely responses.
By focusing on the following, marketers can shape consumer behavior effectively:
• Creating compelling stimuli (advertisements, product features)
• Understanding consumer psychology (motivation, perception, learning)
• Tailoring messaging and offers based on consumer attitudes and needs
• Building brand loyalty through consistent positive consumer experiences
Nicosia Model of Consumer Behavior
Introduction
The Nicosia Model of Consumer Behavior was developed by Francesco Nicosia in the 1960s
and focuses on how communication between a marketer and a consumer can influence the
decision-making process. The model is often considered a two-way communication process
and emphasizes the role of advertising and marketing communication in shaping the
consumer's mind and influencing their eventual purchase decisions.
Unlike other models that look at the buyer’s behavior in isolation, the Nicosia model recognizes
the importance of feedback loops and sees the consumer decision-making process as
dynamic, involving interaction between the consumer and external stimuli.

Key Components of the Nicosia Model

The Nicosia Model is structured around four main stages that describe the process of how a
consumer makes purchasing decisions, and how marketing activities influence these decisions.
Stage 1: Message Exposure and Attention (Input Stage)
• In this stage, the marketer’s message (advertisements, promotions, packaging) is
exposed to the consumer. This could happen through various channels such as TV, online
ads, social media, or in-store displays.
• The consumer perceives and attends to this marketing communication, but attention
depends on various factors, including the consumer's needs, interests, and
psychological state.
• External stimuli such as social influence, cultural factors, and personal needs play a key
role in the consumer's attention process.
• Marketing efforts (advertisements, product packaging, etc.) are designed to grab
attention and make a consumer aware of a product or service. However, the consumer’s
existing cognitive state (previous experiences, existing knowledge, etc.) determines
how effectively the message is received.
Stage 2: Cognitive Processing and Interpretation (Perception Stage)
• After exposure, the consumer processes the information and starts to form perceptions.
This involves:
o Selective Attention: Consumers filter and attend to certain aspects of the
marketing message based on their personal interests or needs.
o Perception: The consumer interprets the message based on their existing
knowledge, experiences, and attitudes toward the product.
• Cognitive processes are influenced by various factors, such as:
o Needs and motivations: The consumer’s unmet needs or desires often dictate
what aspects of the message will be noticed and internalized.
o Previous knowledge and attitudes: A consumer may interpret the message
differently if they already have an opinion about the brand or product.
 • Marketers must ensure that the message resonates with the consumer’s existing
attitudes and beliefs, as this will determine the effectiveness of the communication.
Stage 3: Evaluation of Alternatives and Decision Making (Decision Stage)
• In this stage, the consumer evaluates different product alternatives based on the
information received.
• The consumer may engage in a comparison process, weighing the benefits, features,
and prices of various products or brands. The marketer's task here is to provide
information that will shape the consumer’s preference for their product over
alternatives.
• Factors influencing this evaluation could include:
o Price comparison
o Brand reputation
o Product quality
o Past experiences
o Peer reviews
• At this point, consumers may consider multiple alternatives before making a decision.
Their decision-making is often guided by their cognitive processing and emotional
responses to the message.
Stage 4: Post-Purchase Evaluation and Feedback (Output Stage)
• After the purchase is made, the consumer evaluates their experience with the product.
• Satisfaction or dissatisfaction occurs based on whether the product meets or exceeds
expectations. This stage plays a critical role in determining:
o Repeat purchase behavior: If the consumer is satisfied, they may become a
loyal customer.
o Word-of-mouth recommendations: A satisfied consumer may recommend the
product to others, influencing their decision-making.
• Feedback loops: The consumer’s feedback (whether positive or negative) can influence
future marketing strategies. Negative experiences can lead to brand switching, while
positive experiences can lead to brand loyalty.
• This stage is also where customer support and service quality play a significant role in
shaping post-purchase satisfaction.

How the Nicosia Model Applies to Marketing

1. Message Design and Communication Strategy
o Understanding that stage 1 is about capturing the consumer's attention,
marketers focus on creating engaging messages that are relevant to the
consumer's needs and context.
 o Advertising and promotions are designed to trigger awareness, using media
that align with the target audience’s lifestyle.
2. Perception Shaping
o In stage 2, marketers create clear, consistent messaging that helps shape the
consumer’s perception of the product.
o They use brand associations, emotional appeals, and educational content to
address the consumer's needs and encourage favorable perceptions.
3. Facilitating Comparison and Decision Making
o During stage 3, marketers highlight their unique selling propositions (USPs)
and product benefits to stand out in a competitive market.
o Comparative advertisements, product demonstrations, and customer
testimonials can help consumers compare options and make an informed
decision.
4. Post-Purchase Satisfaction and Feedback
o Post-purchase communication is key for customer retention and brand
loyalty. Marketers can:
▪ Offer loyalty programs.
▪ Seek feedback through surveys or online reviews to understand the
consumer’s satisfaction level.
▪ Address customer complaints promptly to improve satisfaction and
build long-term relationships.

Marketing Communication --> Stage 1: Message Exposure --> Stage 2: Perception &
Interpretation --> Stage 3: Evaluation & Decision --> Stage 4: Post-Purchase Evaluation
(Advert, Promotion, etc.) (Cognitive Processing) (Product
Comparison, Choice) (Satisfaction, Feedback)
|
External Influences: Social, Cultural, Psychological Factors

Explanation of the Diagram

• Marketing Communication: The external message communicated by the marketer.
• Stage 1: The consumer's attention to the marketing stimuli.
• Stage 2: The cognitive process where the consumer interprets and perceives the
message.
• Stage 3: The evaluation of alternatives and decision-making process.
 • Stage 4: Post-purchase evaluation, where the consumer assesses the product and
provides feedback.

Conclusion for Marketing Perspective

The Nicosia Model provides a dynamic view of consumer decision-making, emphasizing the
role of communication, information processing, and feedback in shaping consumer behavior.
Marketers can use this model to:
• Craft engaging messages that capture attention and align with consumer needs.
• Influence consumers' perceptions and beliefs through persuasive communication.
• Guide consumers through the decision-making process by highlighting key product
benefits.
• Improve customer loyalty through effective post-purchase communication and
satisfaction management.

Schiffman-Kanuk’s Model of Consumer Behavior

Introduction
The Schiffman-Kanuk Model is one of the widely recognized models of consumer behavior,
presented in their book Consumer Behavior (2016). This model focuses on the decision-making
process of consumers, emphasizing the psychological, social, and environmental factors that
influence consumer choices. The model is based on the premise that consumer behavior is
influenced by both internal (personal) and external (societal) factors.
It identifies several stages in the consumer decision-making process and incorporates insights
from psychology, sociology, and marketing.

Key Components of Schiffman-Kanuk’s Model

The Schiffman-Kanuk Model divides the consumer decision-making process into four broad
stages. These stages involve both rational and emotional decision-making elements.
Stage 1: Problem Recognition (Need Recognition)
• Problem recognition occurs when the consumer perceives a difference between their
current state and their desired state.
• Internal stimuli: A personal need or desire (e.g., hunger, thirst, or a need for a new
product).
• External stimuli: These could include advertisements, promotions, or word-of-mouth,
which trigger the consumer to become aware of a gap between their current situation
and the desired outcome.
• Motivational Factors: Consumers are motivated to act when they perceive a significant
difference between their actual and desired state.
 • Marketing Implication: Marketers need to identify the trigger points that cause
consumers to recognize a need, and craft messages that highlight how their products can
solve those problems.

Stage 2: Information Search

Once a need is recognized, consumers engage in an information search to find solutions to
their problem.
• Internal Search: The consumer may rely on their own knowledge and past experiences
to evaluate potential solutions (e.g., recalling previous product usage or information
learned from prior research).
• External Search: If the consumer does not have enough information internally, they will
look for external sources, such as:
o Personal sources: Friends, family, or acquaintances.
o Commercial sources: Advertisements, brochures, websites, etc.
o Public sources: Online reviews, consumer reports, social media.
• Information Overload: Marketers should recognize that providing clear, relevant, and
concise information is important, as too much information can overwhelm the
consumer.
• Marketing Implication: Brands should ensure their product information is easily
accessible and trustworthy, as well as highlight key differentiators to help consumers
make informed decisions.

Stage 3: Evaluation of Alternatives

After gathering information, consumers evaluate the available options and compare them based
on various criteria:
• Evaluation Criteria: This includes:
o Product features (e.g., quality, brand, price).
o Brand reputation.
o Price.
o Personal preferences (e.g., style, aesthetics, eco-friendliness).
• Consideration Set: The consumer narrows down their choices to a subset of products
or brands that meet their needs. They may use decision rules such as compensatory
rules (where a poor attribute can be compensated by a better one) or non-
compensatory rules (where a negative attribute cannot be outweighed by positive
ones).
• Psychological Factors: Consumers are influenced by psychological factors such as
perception, attitude, and motivation in evaluating alternatives.
 • Marketing Implication: Marketers should highlight unique selling propositions
(USPs) that set their product apart, emphasize positive attributes, and tailor offerings to
consumer preferences.

Stage 4: Purchase Decision

This is the stage where the consumer decides on the product or service they will purchase. The
decision to buy can be influenced by several factors:
• Attitude and Perception: The consumer's attitude toward the product after evaluating
alternatives and the perceived value.
• External Influence: Social influences like family, peers, or cultural trends can play a
significant role in the final decision.
• Situational Factors: Factors like price discounts, product availability, or the urgency
of the need can also affect the decision.
• Post-purchase Dissonance: After making a purchase, consumers may experience
cognitive dissonance (buyer’s remorse), questioning if they made the right choice. This
can be reduced by post-purchase support, such as returns, guarantees, or assurances.
• Marketing Implication: Marketers should focus on offering sales incentives,
discounts, or easy purchase processes to facilitate conversion, as well as post-purchase
follow-ups to reduce dissonance and increase satisfaction.

Stage 5: Post-Purchase Behavior

After the purchase, consumers engage in post-purchase behavior, which can impact their
future buying decisions:
• Satisfaction vs. Dissatisfaction: If the product meets or exceeds expectations, the
consumer is likely to be satisfied. If it falls short, the consumer may be dissatisfied.
• Cognitive Dissonance: Consumers may seek reassurance about their purchase, or they
may feel regret. Positive post-purchase experiences can lead to brand loyalty and
repeat purchases.
• Word-of-Mouth: Satisfied customers are more likely to recommend the product to
others, while dissatisfied customers may spread negative word-of-mouth.
• Marketing Implication: Marketers should focus on customer satisfaction by ensuring
the product lives up to expectations and offering after-sales services like customer
support, warranties, or loyalty programs.

Factors Influencing Consumer Behavior (Schiffman-Kanuk Model)

Schiffman and Kanuk also highlight various factors that influence the consumer's behavior
throughout the decision-making process:
1. Psychological Factors:
 o Motivation
o Perception
o Learning
o Personality
o Attitudes
2. Social Factors:
o Family
o Reference Groups
o Social Class
o Cultural and Subcultural Factors
3. Environmental Factors:
o Economic Conditions
o Technological Advancements
o Political and Legal Environment
o Marketing Mix (Product, Price, Place, Promotion)

Problem Recognition
↓
Information Search
↓ ↓
Internal Search External Search
↓ ↓
Evaluation of Alternatives
↓
Purchase Decision
↓
Post-Purchase Behavior
(Satisfaction/Dissatisfaction)

Explanation of the Diagram:

1. Problem Recognition triggers the need for a purchase.
2. Information Search follows, where consumers gather data.
 3. Evaluation of Alternatives is the decision-making phase.
4. Purchase Decision is when the consumer finalizes their choice.
5. Post-Purchase Behavior influences future decisions based on satisfaction.

Howard-Sheth Model of Consumer Behavior

Introduction
The Howard-Sheth Model of consumer behavior, developed by John A. Howard and Jagdeep S.
Sheth in 1969, is one of the most comprehensive models for understanding the psychological
processes involved in consumer decision-making. It integrates elements from psychology,
sociology, and marketing to explain how consumers make buying decisions.
This model focuses on how consumers' attitudes, preferences, and motivations influence
their buying choices, while considering both internal psychological processes and external
socio-environmental factors.

Key Components of Howard-Sheth Model

The Howard-Sheth Model consists of several components that affect consumer behavior at
different levels. It includes input variables, hypothetical constructs, and output variables.
1. Input Variables (Stimuli)
The input variables are external influences or stimuli that affect the consumer's decision-
making process. They include:
• Physical Stimuli: These include advertisements, sales promotions, price changes,
and product displays.
• Social Stimuli: These relate to family, friends, and reference groups that influence the
consumer’s decisions. Social pressure plays a big role in consumer behavior.
• Cultural Stimuli: Social and cultural factors, such as the consumer's social class, ethnic
group, and cultural background, can affect their preferences and choices.
• Marketing Stimuli: These include elements of the marketing mix (product, price,
place, promotion) that influence the consumer’s choices.
2. Hypothetical Constructs
These are internal psychological variables that mediate the consumer’s responses to external
stimuli. They represent the mental processes that occur when a consumer receives input
stimuli. Key constructs include:
• Learning: Consumers acquire new information and experiences that modify their
beliefs, attitudes, and preferences over time. The learning process influences their
buying behavior.
• Perception: How consumers interpret and make sense of stimuli. This includes how a
consumer perceives the quality, value, or usefulness of a product.
 • Motivation: The driving force that compels the consumer to take action. Motivation is
shaped by needs, desires, and goals that the consumer wishes to satisfy.
• Attitudes: Consumers’ beliefs and feelings about products, brands, and services. Positive
or negative attitudes toward a product influence purchase intentions.
• Cognitive Structure: The mental framework through which a consumer processes
information. It is influenced by memory, experiences, and the consumer’s environment.
• Socio-Psychological Factors: These include factors like social class, peer influence,
and status that can shape the consumer's perceptions and decision-making.
3. Output Variables (Responses)
The output variables are the responses or behaviors of the consumer based on the stimuli
they receive and the psychological processes they undergo. These include:
• Cognitive Responses: These involve the thinking processes a consumer engages in
during the decision-making process. They include learning, knowledge accumulation,
and attitude formation.
• Affective Responses: These include the emotional reactions or feelings the consumer
experiences in response to marketing stimuli, such as pleasure, fear, or satisfaction.
• Conative Responses: These are the behavioral actions taken by the consumer, such as
making a purchase, trying a product, or recommending a product to others.
• Purchase Decision: The final decision to buy a product or service. This is the
culmination of cognitive, affective, and conative responses that influence the consumer's
behavior.

The Howard-Sheth Model Process Flow

1. External Stimuli (Input)
→ Marketing Mix (product, price, promotion, place), Physical, Social, Cultural influences.
2. Internal Processes (Hypothetical Constructs)
→ Perception, Motivation, Learning, Attitudes, Cognitive Structure, and Socio-
Psychological Factors.
3. Consumer's Response (Output)
→ Cognitive (thinking), Affective (feeling), Conative (behavioral actions), and ultimately
the Purchase Decision.

+------------------+
| External Inputs |
| (Marketing, Social|
| and Cultural) |
+--------+---------+
↓
 +-----------+-----------+
| Internal Processes (S) |
| - Perception |
| - Motivation |
| - Learning |
| - Attitudes |
| - Cognitive Structure |
+-----------+-----------+
↓
+----------+----------+
| Consumer Response |
| (Cognitive, Affective,|
| Conative Responses) |
+----------+----------+
↓
+---------+----------+
| Purchase Decision |

Explanation of the Diagram:

1. External Inputs (stimuli) influence the consumer’s decision-making process.
2. These inputs interact with the Internal Processes (perception, learning, motivation,
etc.) that shape the consumer's attitudes, thoughts, and emotions.
3. The consumer's responses are based on the internalized processes, leading to
cognitive, emotional, and behavioral responses.
4. The final outcome is the purchase decision based on the consumer's cognitive,
affective, and conative responses.