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Consumer Modeling
Prof. Girish MudeMAEER’s MIT School of Management, Pune
Consumer Modeling
• Model is very often referred to as an abstract representation of a process of relationship.
• How they help:– In development of theories– To understand complex relationship– Provide framework for discussions and research
work.
Girish Mude MITSOM, Pune
Lets study Models then….
Models
Girish Mude MITSOM, Pune
Models in consumer Behavior
• Psychoanalytical model• Economic model• Sociological model• Howard Seth model• Nicosia model• Engel Blackwell model• VALS2 Stadford model
Girish Mude MITSOM, Pune
The psychoanalytical model
The psychoanalytical model draws from Freudian psychology
Individual consumer has a complex set of deep seated motives which drive him towards certain
buying decisions.
The buyer has a private world with all his hidden fears, suppressed desires and totally subjective
longings.
His buying action can be influenced by appealing to those desires and longings.
Girish Mude MITSOM, Pune
According to Mr. Freud, human
personality has three parts
namely,
1. the “ID”, the source of all
mental energy which drives one
to an action.
2.the “Super Ego”, the internal representation of
what is socially approved—one’s
conscience.
3. the “Ego”, the conscious director of ‘ID’ impulses for finding satisfaction
in socially acceptable manner.
Girish Mude MITSOM, Pune
In other words, ‘ID’ represents one’s animal or basic impulses, ‘instincts’ and cravings for immediate and total satisfaction.
Marketers have been using this Approach to generate new ideas for developing product- design, features, advertising and promotional techniques.
Girish Mude MITSOM, Pune
Example…
A person is interested in buying SONY TV with characteristics of Hi-black Trinitron Screen—super drum sound system say Rs.1,05,000 with remote control.
Here his ‘ID’ demands the use of consumer credit liberally to buy that costly T.V. set.
The Super Ego dissuades him from heavy borrowing as credit beyond certain limits is not acceptable.
Here the Ego acts like a mediator and comes with a fine compromise of installment system without away strains and drain on his financial position.
Here self image of a consumer is a great motivating force inducing him to buy certain products.
Girish Mude MITSOM, Pune
Economic Model
It is assumed that man is a rational human being.
Evaluate all alternatives in terns of cost and value received.
Select that product/service which gives maximum satisfaction (utility).
With limited purchasing power consumer will allocate their expenditure over different products.
Girish Mude MITSOM, Pune
Consumer intention to maximizing
utility/benefit.
Economic Model is based on certain
prediction of buying behaviour
Girish Mude MITSOM, Pune
Sociological ModelIndividual buyer is part
of society. Gets influence by it. Play many roles
As a family
member
As an employe
e
As a member of professiona
l forum
Girish Mude MITSOM, Pune
Influence by
Family
Friends
Close colleagues
Peer group(Informal Leader influence)Girish Mude MITSOM, Pune
Nicosia Model
Developed b Francesco M. Nicosia in 1966
Attempts to establish linkages between the marketing firm and its consumer.
The essence is how the activities of the firm influence the consumer and result in his direction to
buy.
Girish Mude MITSOM, Pune
Nicosia Model ..Continued
• His model lumps these activities into Four basic fields.• Field One has two sub-fields namely, the firms attributes and the
consumer attributes. An ad message from the firm reaches consumer’s attributes. Depending on the way the messages received by the consumer, a certain attribute may develop and this becomes the input for the field Two.
• Field Two is the area of search and evaluation of the advertised product and other alternatives. If this process results in a motivation to buy, it becomes the input for field three.
• Field Three consist of the act of purchase. • The field Four consists of use of the purchased item. There is an
output from field Four --- feed back of sales results to the firm
Girish Mude MITSOM, Pune
Girish Mude MITSOM, Pune
Girish Mude MITSOM, Pune
Engel, Kollat, and Blackwell (EKB) Model
The EKB model is comprehensive and shows the components of decision making and the relationships and interactions among them.
The five distinct parts of consumer decision making presented are:•Input, information processing, a decision process, decision process variables, and external influences
Girish Mude MITSOM, Pune
One of the important features of the Engel, Kollat, and Blackwell model is the description of consumer purchasing as a process comprised of several stages rather than a single act of buying or not buying.
Girish Mude MITSOM, Pune
Girish Mude MITSOM, Pune
Input
•Our experiences, contact with others•Marketer-controlled stimuli (e.g., advertising, store display, demonstrations)•Other stimuli (e.g., personal recollections, conversations with friends)•External search
Input includes all kinds of
stimuli from our contact
with the world around
us:
Girish Mude MITSOM, Pune
Information Processing
Stimuli are processed into
meaningful information
Five methods of
information processing:
Girish Mude MITSOM, Pune
Decision Process
It is triggered at any time during
information processing
It consists of five steps:
Girish Mude MITSOM, Pune
Decision Process Variables
Those individual qualities that
make people/consumer
s unique.
Decision process
variables include
Girish Mude MITSOM, Pune
External Influences
Such influences are called “Circles of Social Influence.” They are: culture, sub-culture (co-culture), social class, reference groups, and family or household influences
Girish Mude MITSOM, Pune
Girish Mude MITSOM, Pune
This model is an individual decision process model since it views a single consumer as the basic decision making unit. The model does recognize influences from other people, but the central focus is still on the individual.
Girish Mude MITSOM, Pune
VALS2 Stadford model
VALS-2 was developed by the US consulting firm Stanford Research Institute (SRI) as an improvement on its original VALS (introduced in 1978), a system that divided people into three basic lifestyle groups (Need driven, Outer directed, and Inner directed).
Girish Mude MITSOM, Pune
VALS 2 (VALUES AND LIFESTYLES SYSTEMS) -- Basic Categories
• Principle - oriented: guided by their view of how the world should be
• Status - oriented: guided by actions and opinions of others
• Action - oriented: guided by desire for social or physical activity,
variety, risk-takingGirish Mude MITSOM, Pune
VALS 2: Available Resources Relevant to Psychographic Profiles
• Education• Income• Health• Energy Level• Self Confidence• Degree of Consumerism
Girish Mude MITSOM, Pune
Fulfilleds
Believers
Actualizers
Achievers
Strivers
Strugglers
Experiencers
Makers
AbundantResources
MinimalResources
Values and Lifestyles 2 (VALS 2)(Stanford Research Institute)
Principle-Oriented
Status-Oriented
Action-Oriented
Girish Mude MITSOM, Pune
• Eight basic lifestyle groups on the basis of two dimensions: resources and self-orientation.
• Resource dimension includes education, income, intelligence, health, energy level, and eagerness to purchase resources that, in general, increase from youth to middle age decline afterwards.
• Self-orientation is divided into three parts (1) Principle oriented: having set views. (2) Status oriented: influenced by other's thinking. (3) Action oriented: seeks activity, adventure, and variety.
Girish Mude MITSOM, Pune
• The eight basic lifestyle groups are (1) Actualizers, (2) Fulfillers, (3) Believers, (4) Achievers, (5) Strivers, (6) Experiencers, (7) Makers, and (8) Strugglers.
Girish Mude MITSOM, Pune
• VALS2 used self-orientation to capture three different ways of buying for the lifestyle classifications.
• Principle-oriented consumers (fulfilleds and believers) were grouped based on their views regarding how the world is or how it should be;
• Status-oriented consumers (actualizers, achievers, strivers, and strugglers) were grouped based on their view regarding the actions and opinions of others; and
• Action oriented consumers (experiencers and makers) were grouped based on a desire for social or physical activity, variety, and risk-taking (Riche, 1989).
Girish Mude MITSOM, Pune
Any Questions ???
Girish Mude MITSOM, Pune
Thank You !!!
Girish Mude MITSOM, Pune