APPROACHES TO CONSUMER BEHAVIOUR -A …...model. Whereas the contemporary model consist of Howard Sheth Model, Engel-Kollat-Blackwell Model, Nicosia Model, Stimulus-Response Model

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Journal of Management (JOM) Volume 5, Issue 4, July – August 2018, pp. 125–137, Article ID: JOM_05_04_014

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APPROACHES TO CONSUMER BEHAVIOUR

-A REVIEW

NU. Ramya

Research Scholar, Ph.D., Management,

Urumu Dhanalakshmi College, Tiruchirappalli, India

Dr. K. Kaliyamurthy

Associate Professor & Head., Research Advisor in Economics & Management,

PG & Research Department of Economics,

Urumu Dhanalakshmi College, Tiruchirappalli, India

ABSTRACT

Realizing, and as well, analyzing the purchasing behaviour of consumer is the

core constituent to provide efficient consumer satisfaction. A consumer is not only

purchasing a produce, but he alone determines the victory of a firm. Hence for every

successful firm, there exists a consumer support behind it. That support is technically

called behavioural support and behind the support there is lot of theories to analyze

and discuss the various concerns involving to consumer behaviour.

Since World War II, taking into account the dire need of the public, the marketers

started to market and encourage the produce what the consumers needed, instead of

producing what the companies prefer. The concept of understanding the behaviour of

consumer emerged in late 1940’s from which it has taken into so many dimensions.

This is now known as “modern concepts of marketing”. At present, Consumer

behaviour is commonly influenced by social, psychoanalytic and economical

approaches. Each factor openly or not directly accounts to the characteristics of a

buyer. Hence it is vital to be aware of the role of factors influencing the buying nature

of consumer. The main iota of this research paper is to analyze the theoretical

underpinnings and factors involved in consumer behaviour and its implications, in the

light of developments crop upped in the recent past.

Key words: Consumer behaviour, Models, Psychoanalytic, Theories.

Cite this Article: NU. Ramya and Dr. K. Kaliyamurthy, Approaches to Consumer

Behaviour - A Review, Journal of Management, 5(4), 2018, pp. 125–137.

http://www.iaeme.com/JOM/issues.asp?JType=JOM&VType=5&IType=4

1. INTRODUCTION

From bullock cart to modern cars era, each time, the trend of business is changed in tune with

the behaviour of consumers. Consumers mind set can be categorized into preferred state and

Approaches to Consumer Behaviour - A Review


definite state. A successful firm which find the difference between this `definite and preferred

state` will prevail in the competitive business world and best provide the solution to assure

their consumers. In recent times companies are updating their products with more models and

features to meet up the requirements of their customers. The customers are not satisfied with

what they possessed from market, but are keen to be acquainted with the subsequent invention

to suit their taste. In the above context, leading Mobile phone companies, Motor Industries

etc., frequently come up with new versions of their products in order to stabilize their market,

by knowing customer day to day advanced and sophisticated needs. In a nut shell, consumer

behavior is one among the main factors that tends to change the profit and loss of the

company which would probably reflect in economical status of a company as well the

country`s economy, by way of export of products and thereby earning foreign exchange

revenue to the Government exchequer.

Further, it is a growing trend now a days that buyers are purchasing their goods in online

while sitting simply in office and thus creates a new consumer theory for online consumer.

The lack of leisure time for a consumer, change the behaviour of àttitude to buy from

intention to buy` .

2. IMPORTANCE OF STUDYING CONSUMER BEHAVIOUR

“Studying the behaviour of consumers is considered to be intricate since the mind , attitude

for purchasing a product, utilization of the manufactured goods varies from one individual to

another” ( Solomon, 2009). Consumer behavior study is important for an organization in

order to analyze how a consumer will react to their product which influences the profit of the

organization. Studying provides the seller to know better about the changing current market

trends and future challenges.(Kumar ,2004). These factors influence the marketing of the

product. Hence, consumer behavior is an essential tool for the sellers to meet their objectives.

A study of consumer behaviour is very essential for the subsequent motive,

2.1. The Marketing Concept - Realistic Implementation

Consumer-oriented marketing is the new modern technique used in marketing.. Marketing

mix , can be developed by analyzing the behavior. The marketer should know exactly what

the consumer desires to buy and why he needs to buy, else he cannot implement a thriving

procedure of marketing mix.

2.2. Differentiating and Segmenting Product and Market

Studying the behavior is very important for making the product unique , which in turn will

tempt the consumer to buy that particular product amidst various other products. This can be

done by planning product differentiation strategies. Consumer behavior study is essential in

segmenting the market into separate sub-markets that consists of consumer with familiar

characteristic and needs which will lead to successful marketing of the product.

2.3. Supply Channels and Selections

Study also deals with where the patrons buy their products from. People of status in a society

prefer to buy products from branded markets in spite of the higher price. They never buy

products from ordinary markets / shops. Therefore the study is essential to select the

appropriate channel of supply to satisfy the consumers of different status and groups.

NU. Ramya and Dr. K. Kaliyamurthy


2.4. Scheming Promotional Techniques

Promotional techniques comprise of advertising the product through media and papers, door

step selling approaches and creating promotional devices for sales. scheming promotional

techniques helps the seller to understand the psychology of people. This analysis will help in

integrating the promotional technique of the frim.

2.5. Tradeoff Involving Quality and Price

The vital key to successful marketing is to identify the consumers needs and satisfy them with

their products. This can be understood by studying the consumers behavior which discloses

whether the consumer highlights more on quality or price of their enterprise. The seller can

propose suitable price and upgrade the quality of their product to meet the needs of the

consumer.

2.6. Accomplishment of Marketing Goals

The company‟s market growth, survival , and profitability relays on capability to spot and

convince the unfulfilled requirements of the consumers. The study also provides the salesmen

to know the requirements of the consumer. Thus, improving the performance of the entire

distribution channel. It also provides to organize better marketing program (product, price,

promotion, physical distribution) which helps to accomplish the marketing goals.

2.7. Coping with Changing Marketing Programme

Consumer behavior studies the response pattern of the consumer constantly. Hence the seller

can perceive the changes that takes place in the market and tend to adopt with the changing

market situations.

2.8. Predicting Future Trends in Market

In order to retain the consumer for a long time, the company studies the behavior of the

consumer in every single segment and for every single product . The marketer should analyze

the future opportunities , threats and challenges according to the consumers needs and make

the product immediately available for the consumers.

2.9. Competition

The success of a company depends upon how their product satisfies the consumers needs

better and sooner than their competitors. Study of consumer behavior is vital ,when a

company desires to develop a new product. consumer behavior helps in studying the changing

nature of the market which is useful in improving the competitive strengths of the company. It

also provides the appropriate use if resources for accomplishing the maximum efficiency.

Study of consumer behavior not only important for studying current market trends , it also

helps in analyzing the future market needs. Thus study of consumer behavior is very essential

in understanding the modern marketing system.

3. MODELS OF CONSUMER BUYING BEHAVIOUR

The two types of models, viz., Traditional and Contemporary model determines the different

attitudinal change of a consumer towards buying behaviour. While the traditional models

deals with economic model, behavioural model, sociological model and psychoanalytic

model. Whereas the contemporary model consist of Howard Sheth Model, Engel-Kollat-

Blackwell Model, Nicosia Model, Stimulus-Response Model and such other models, which

we can discuss in detail in this paper.



3.1. Economic Model

3.1.1. Consumer as an Economic Man

Consumer behaviour in general can be explained as a range of activities and actions meant to

satisfy the consumption needs of groups or individuals. This is achieved by obtaining goods

and services and correlating that with the preferences system and with the way of dealing with

purchased goods. This approach to consumer behaviour considers “consumers to be highly

based on reason and sufficientt” (Tyagi). According to this principle “rational behaviour of

consumer includes being responsive of all alternative options available for their decision, as

well as, having clear knowledge on the advantages and disadvantages associated with each

option” (Kahle and Close, 2006)

3.1.2. Economic Models on Consumer Behaviour

Economics is focused with the behaviour that people decide to acquire goods and services that

will satisfy their needs and wants. The theory of consumer behaviour gives a clear view on

how a consumer expends his income so as to accomplish the utmost fulfilment or utility.

Consumers‟ utility maximisation behaviour can be subjected to the following constraints:

Consumers are inhibited by their income limit. Therefore, they cannot meet the expense to

satisfy all their needs.

Consumers wants and needs are extensive.

3.2. Economic Factors

Consumer behavior is influenced by various economic factors like personal income, family

income, future income, liquid asset position, ease of use of credit facilities, standard of living.

Personal income is the main factor to be considered since it gives consumer the power to buy

what he needs. When the revenue of an individual is high, then his desire to buy things will

also be high. Family income comprises total revenue of all the members in the family. When

considering family requirements, buying pattern will also change. Further, current expenses of

an individual depends upon his future needs and thus his future income influences his

behaviour on buying products.

Liquid asset position, ease of use of credit facilities, Standard of living is some other

important factors that determines the consumer behaviour. If a consumer have more currency

in the form of cash in hand , bank deposits, bonds, he will decide to pay out more of his

money to meet his needs, that we can say Liquid asset position. ease of use of credit facilities

includes, facilities like easy installment, deferred payment. This makes the consumer spend

more liberally. The behaviour of maintaining Standard of living of a consumer would have

more impact on buying pattern when he will try to enhance his standard of living with other

higher sections of his society. At times he won`t hesitate to meet his needs by borrowing,

pledging, and selling of his valuable holdings in hand.

3.3. Economic Theories: A Brief Review

The most primitive theory in the economics field is the cardinal utility theory formulated by

Gossen (1854), Jevons (1871), Walras (1874) and Marshall (1890). Later on J.R. Hicks and

R.G.D. Allen (1934) developed indifference curve technique as an ordinal approach. Paul

Samuelson overcame with Revealed preference theory in which he stated ``Choice reveals

preference``. Hicks then formulated the Revision of demand theory towards consumer

behaviour. Shortly, Kelvin Lancaster stated that it is `àttribute`` rather than the product, is the

core of consumer`s preferences.



3.3.1. Marginal Utility Approach

Utility is the fulfillment that a consumer acquires by consuming a product. Thus, it is that

property of the product that satisfies the requirements and desires of the consumers. Utility is

a internal concept which shows a discrepancy from one self to other. The scope of aspiration

by a person for a product relays on the utility factor that he connects with it. 19th-century

economists attempted to elucidate the economic authenticity of price, which they supposed

was obsessed by a product's utility. This lead to an irony "the paradox of water

and diamonds", ascribed to “Adam Smith, author of The Wealth of Nations”. It explains that

water has importance less than diamonds, though water is fundamental to life and diamonds

aren't. Marginal utility and marginal cost are accustomed to decide price, the paradox is that, “

the marginal cost of water is much lower than that of diamonds.” Marginal utility is to find

out how much of an thing a consumer will buy. It is explained as the added contentment a

consumer obtains from consuming an extra piece of a service or good. When the utilization of

an extra piece raises the total utility, it is Positive marginal utility. When total utility decreases

then it is negative marginal utility.

3.3.2. Ordinal Utility Approach

Ordinal utility approach(neo-classical theory of consumer equilibrium, Hicksian theory of

consumer behavior, indifference curve theory , optimal choice theory ) states that a consumer

prefers different blend of two goods which provides him same satisfaction level. It states that

utility of various goods can be measured qualitatively and not quantitatively.The theory of

indifference curves states that the consumer reaches equilibrium, where the budget line is

tangent to the indifference curve. When the indifference curve is elevated, the satisfaction of

the consumer is greater.

3.3.3. Revealed Preference Theory

American economist Paul Samuelson (1938) stated that consumers choice depends upon their

purchase under various conditions (income, price). It describes that if a consumer buys a exact

pack of goods , then that particular pack is “revealed preferred” , at stable earnings and price,

compared to any other pack hat he can buy. The seller can conclude a model of consumers

preference by varying price , income or both. The consumer prefers to purchase second pack

to first pack only when the first pack is unaffordable.

3.3.4. Hicks Demand Theory

Prof. JR. Hicks assumes “ preference hypothesis as a principle which directs the behaviour of

ideal consumer” .This assumption of behaviour with respect to a scale of preferences is

known as “preference hypothesis”. The ideal consumer is the one who chooses one alternative

which he prefers the most, out of various alternatives available to him. In a specific market

condition, he always prefers to select the same item . His choice is consistent with different

market conditions. This is known as the preference hypothesis of an ideal consumer.

Hicks demand theory existed in value and capital was based on the preference hypothesis ,

but he stated the degree of preference at one time in the form of a set of indifferent curves .

This method has different demerits and so it has been overcome by Revision of Hicks

Demand theory. “the demand theory which is based upon the preference hypothesis turns out

to be nothing else but an economic application of the logical theory of ordering.” (JR.Hicks ).

Sooner than developing the theory from the preference hypothesis , he describes the “logic of

order” . He draws out “difference between strong ordering and weak ordering and proceeds to

base his demand theory on weak-ordering form of preference hypothesis”.

https://www.investopedia.com/terms/d/diamonds.asp

https://www.investopedia.com/updates/adam-smith-economics/



Consumer‟s surplus was renewed by Hicks in which he explained that “the appropriate

way to look at consumer‟s surplus is to regard it as a mean of expressing in terms of money

income, the gain which accrues to the consumer as a result of all in price.”

3.3.5. Characteristics Demand Theory

Kelvin Lancaster (1966) developed this theory and stated in his paper “A New Approach to

Consumer Theory”. This theory lets us to expect how preferences will change when the

options given to the consumers by knowing how these differs with respect to the change in the

features that make them . According to the conventional theory , the introduction of a new

option intended that we could not consistently calculate how this would fit into the consumers

preference list. On the other hand , depending on a study of the features rather than depending

upon the goods concerned, we can calculate how changes will affect a consumers behaviour

without the need to start it all over again. Thus the theory explains that the consumers obtains

utility from the features of the goods in the options given to them rather than obtaining utility

from the contents of the options.

This theory let us to estimate shadow prices for various characteristics without having a

price for the item itself by relating utility to the features that compose the item rather than the

item itself. With the help of these shadow prices , utility maximization problems can be

resolved . it also assists to validate the subsistence of brands. presume if both brands have

similar features and are ideal competitors , then the consumer tend to select the option that

will maximize our entire consumption.

3.4. Social Model

Social approach is the study of relationships between macro variables (culture, society) and

micro (people behaviour,) variables. It mainly considers that the consumers behaviour

depends on his role and influence in the society. It also relays upon the people he is enclosed

by and the culture in which his society exists. The sociocultural environment that we entail

provides a vision that describes our relationship to ourselves, organisations, society, nature,

universe and culture. Social influences are the pressures caused from individuals, and groups.

Behaviorist Approach deals with the observable and measurable aspects of human behavior.

While the Economical factor is focusing towards the changes of buying pattern with respect to

money, the Psychoanalytic theory is focusing on the personality theory, in which individual

gets provoked more by unseen forces that are restricted by his/her conscious.

3.4.1. Social Factors

Social factors that have an effect on consumer buying choice can be classified as: Reference

groups- influence of reference groups over an individual. Family- behaving pattern is sturdily

influenced by family members. Sellers will try to target the one who can be effortlessly

influenced by their products. Roles and Status-each person posse‟s variable roles and position

in the society. A working woman has two roles, one as officer and other as a mother.

3.4.2. Cultural Factors

Such as consumers culture, subculture and social class affects the consumer behaviour, and

hence buying behaviour varies from place to place. Thus sellers should analyse the various

cultural factors that prevail in that place. Each culture has various sub cultures such as

religion, nationalities, geographical regions. Sellers may avail this group for market

segmentation. Each society has particular social class in which the people will have similar

buying patterns.



3.4.3. Personal Factors

Age and lifecycle have impending impact. Consumers change their buying needs according to

their age. Family life cycle includes various stages like youngsters, married couples, etc.,

which will help the sellers to produce suitable products for them. Occupation is also one of

the factor where the product is desired according to the job they perform. Economic situation

that is their level of income has a enormous influence. Lifestyle is the way a person lives in a

society. Personality is a factor which show a discrepancy from one self to another based on

time and place which may affect the consumers pattern for buying.

3.4.4. Social Approaches To Consumer Behaviour

3.4.4.1. Value-added theory

Neil Smelser(1930) projected this theory also called social strain theory . It assumes that

significant conditions are needed for the improvement of social movement which is an

outcome of rapid social change. He projected that six factors are important for the collective

behaviour to evolve.

2.4.1.1Structural conduciveness: people must have opportunity to act in a certain problem.

Structural strain : society should have a number of strain due to the structure of the present

society.

Generalized belief: The problem should be clearly explained which can be effortlessly

understood by the people.

Precipitating factors : Factors that acts as an initiative to start an opportunity.

Enlistment for action : People should have a group or network to execute a united task.

Process of social control : It is not easy for the social activities to get processed due to the

reactions of the system.

3.4.5. Diderot Effect

This is a social event which is associated to consumer goods. This theory projected two

details. The first states that good bought by the consumer will be consistent to their

perspective and as a result it will be complementary to each other. The second states that the

purchase of new product will often lead to the purchase of another product which is known as

spiraling consumption (Grant McCracken,1988).

3.4.6. Veblenian Social – Psychological Model

Thorstein Veblen explained that a persons need is shaped and prejudiced by the traditions and

group in which they exist. He focused on “members of society„s leisure class whom he

hypothesized were influenced by the desire for prestige rather than fulfilling the needs.” It

proposes the sellers to concentrate the social influences on consumer .

3.4.7. Nicosia Model

The model found by Francesco Nicosia in 1970s is a structural replica for decision making

process in buying a product, which is made by an individual or by a family. Preferences,

attitudes, and motivations are the three stages which shift the consumer in buying process.

Here the process is divided into four areas. First , information from the market influences the

consumers buying attitude. Second, consumer evaluates the information on the products and

selects the one which he gets satisfied with. Third,motivation of the individual induces him to

buy the product. Finally after he consumes the product , he gains new experience from which

he creates new preference. The sociological approaches to consumer behaviour describes

consumption as a process in which the product is seen as a generator of cultural meaning. It

comprises of sociological ideas prevailing in the society.



3.5. Behavioural Model

Social and behavioural sciences are interconnected which studies behaviours. There are

significant differences between these two factors. Behavioural factors is stated as an

organized study of human beings through controlled systematic structure.

3.5.1.Theory of Reasoned Action

Figure 1 Framework of Theory of Reasoned Action (Fishbein & Ajzen

Martin Fishbein and Icek Ajzen in the late 1960 proposed the theory of reasoned action

(also known as Fishbein model of consumer behaviour, theory of planned behaviour). Theory

states that consumers act on a behaviour,which is based on their motive to create or receive a

particular outcome which is described as his overall attitude. In this analysis, consumers are

considered as rational actors. Attitude of the customer leads to particular behavioural

intentions towards the product which in turn proceeds particular action. This theory suggests

three variables. purchasers mind-set towards meticulous object (Ao) . certainty that the thing

has specific attributes (Bi) subjective evaluation of that attributes (Ei) Symbolically, the above

mentioned variables can be presented in an equation (1) :Ao=∑i=1nBiEi

3.5.2. Engel, Kollet, Blackwell (EKB) Model

In 1968 by J.F. Engel, D.T. Kollat and R.D. Blackwell proposed the Engel Kollat Blackwell

Model of Consumer Behaviour. This theory states the consumers decision making process in

choosing the product. The main purpose of this theory is to scrutinize the awareness about

consumer behaviour. It consists of four stages. (Figure.2)

Figure 2 The Engel-Kollat-Blackwell Model of Consumer Behaviour



The first stage – INPUT- here the consumer collects the information about the products

through television, newspaper, pamphlets, online and gets a clear vision about the product.

Second stage- INFORMATION PROCESSING- here the consumer processes his collected

information about the product and compares that to experiences and expectations. Third stage-

DECISION PROCESS- in which the consumer makes a choice of buying the product. Final

stage- Variables that influencing the decision process - this stage deals with the internal

(motives, values, personality) and external factors (social and situational) that influences the

decision process.

3.5.3. Howard-Sheth Model

Howard-Sheth model (1969) believed that the consumer has rational behaviour during

purchase. It consists of four main groups of variables: Input variables are the thrust arriving

from significant incentives(physical qualities and attributes of the products) symbolic

incentives(verbal or visual perceived through promotion messages, advertisements) and social

stimuli( social environment) Hypothetical constructs, which includes the psychological

aspects that have an effect on the consumer during the decision making process. They have

two different types. Perceptual(acquiring and dealing out information, consideration to

stimulus, sensitivity to communication, accessibility, blocking information, intolerance) and

learning(buyers attitude, opinion, appraisal after purchase).Output variables: attention,

comprehension, cognition, target and purchase behaviour are the output variables. Attention is

the possible information obtained after the consumer is open to the elements of the input

forms. Comprehension is the information held by the consumer. Cognition is the process in

which the consumer creates his attitude towards the product. Intention is the decision to

procure or not to acquire a product. Purchase behaviour is the buying pattern of the consumer.

External variables have a remarkable impact on the consumers decision process. These

variable comprise “ value of purchase for the buyer, the character traits of the consumer,

membership of a social group, the financial status of a consumer, the pressure of time.”

3.6. Psychoanalytic Model

Psychoanalysis was found by Sigmund Freud in 19th

century. Psychoanalytic theory replicates

the fact that consumer behaviour is influenced by both conscious and the subconscious mind.

He held that humans are not able to realize their inspirations entirely because the factors that

concern their inspirations are basically unconscious which comprises of strong urges and

desires. It also defines that consumers react to symbolic concerns as much as they respond to

others like economics and function. Freud suggests that external factors like income age etc.,

completely cannot transform the consumer behaviour because internal factors like motivation

lays deep inside the mind. Emotional request is more efficient than logical appeal.

3.6.1. Psychological Factors

Perception, motivation, thinking and attitudes are the four major psychological factors that

have an effect on the purchasing behaviour of consumers. Motivation : consumer behaviour

relays on the level of motivation. Each human being has different requirements and the nature

of requirements differ from more to less urgent. Hence , a need becomes a motive when it is

more pressing. The motivational theories are dealt separately in the later part of this paper.

Perception: An information is opted, structured, and interpreted to give considerable

knowledge on it is known as perception. Thinking and Attitudes : A human being has definite

values and attitudes towards a choice of products which influences the brand and impinge on

the consumer behaviour.



3.6.2. Psychoanalytic Approaches to Consumer Behaviour

3.6.2.1. Freudian Theory

Freud proposed that human personality consists of three systems the id, the super ego , and

the ego. The id is the fundamental psychological desire such as starvation, need for liquids

and sex in which the individual search for instantaneous fulfilment. The super ego is ones

internal expression of culture‟s moral and principled system. Its function is to observe that a

person satisfies his needs that is acknowledged by the society. Ego is the individuals

conscious control. It operates as an in-house supervisor that balances the spontaneous

demands of the id and the socio-cultural restriction of the superego.

3.6.2.2 .Neo- Freudian Theory

In addition to Freud‟s theory, social connection plays a imperative function in the progress of

personality. Alfred Adler stated that “human beings always wants to achieve a variety of

realistic goals which he described as style of life”. Harry Stack Sullivan, and another Neo-

Freudian stated that, “people try to set up significant relationship with others

3.6.2.3. Trait Theory

It is an approach to the study of personalities of human being. Traits can be explained as the

habitual patterns of thought , emotion and behaviour.

3.6.2.3. Murray’s List Of Psychogenic Needs

In 1938 , the psychologist Henry Murray organised his needs into five groups : ambition,

materialistic, power, affection and information needs. Murray and Edward developed several

needs with respect to consumer behaviour. They are : achievement, exhibition, affiliation,

power, change and order.

3.6.2.4. Maslow’s Hierarchy of needs

Abraham Maslow, in 1943, proposed a theory of human motivation in which he develops five

level hierarchy of human needs (physiological needs, safety and security needs, social needs,

esteem needs, self-actualization) and ranked from lower level needs to higher level needs.

This theory states that an individual should satisfy should lower level of needs before they

satisfy the higher level of needs. when one lower need is satisfied , the individual is motivated

to fulfil the next level need.

3.6.2.5. A trio of Needs

The need of control, attachment, and accomplishment are the three needs that influences the

consumer motivation. The control need is an individual‟s longing to have power over his

surroundings. The attachment need is analogous to social need in maslow‟s theory. The

accomplishment need frequently consider personal accomplishments. This was proposed by

David Mcclelland in his `àchieving society`` 1961.

3.6.2.6. Hawkins Stern Impulse Buying

Hawkin stern believed in impulse behaviour rather than rational behaviour. Stern found four

categories of impulse buying. First the purely impulse purchases, like a chocolate at the

billing queue of a super market. Second, consumers make reminded impulse buys. Third are

suggested impulse purchases, like warranty for a product. Finally, consumers formulate

planned impulse decisions, where they only want to buy a product but they don‟t know the

specifications of the product. This impulsive buying provides the seller to analyze the

impulsive thought of the consumer and increase the sales.

3.6.2.7. Social cognitive theory (SCT)

The theory formulates that an individual‟s choice can be straightly linked to observing others.

It also explains that “when people study a model performing a action and the consequences of



that behavior, they bear in mind the progression of actions and use it to direct successive

behaviors”.

3.6.2.8. Pavlovian Conditioning

Pavlov (1902) proposed a theory known as classical conditioning or pavlovian conditioning.

The theory states learning procedure associated between two stimuli.

The unconditioned stimulus (US) and unconditioned response (UR) : is a impetus that

acquires a response unconditionally whenever it occurs, without precedent practice or

knowledge. The response acquired from this conditioning is known as un conditioned

response

The conditioned stimulus (CS) and the conditioned response (CR) : conditioned stimulus or

impetus is an initial unbiased one that can draw a new response when it frequently calculates

a unconditioned stimulus. By integrating a neutral stimulus with a US , it becomes a CS and

provides a new response known as conditioned response. As an up gradation of his theory,

operant conditioning model was developed to elucidate the support behaviour of consumers,

which may be positive or negative.

3.6.2.9. AIDA Model

This model was formulated in 1925 by EK Strong which illustrates the impact of

publicity(advertising) on consumers. Recently this model is used to widen advertising

practice. The AIDA model presumes four reactions of the consumer: A (Attention) – draw

interest of the consumer I (interest) – provoke awareness on the product D (desire) - generate

the craving to have the product A (action) - set to acquire the product.

AIDA model is enhanced by adding two stages after the action stage to form AIDACS

model. The enhanced stages are C- Conviction : this stage makes the customer to trust that he

has made a exact judgment by buying the offered product. S- Satisfaction : satisfaction may

add to extra purchase or the satisfied customer may suggest the product to their acquaintances

and relatives (word of mouth marketing or whisper marketing).

3.7. Influence of`` E-Commerce`` on Consumer Behaviour

E-commerce is a custom of buying and selling stuffs over internet. Online business can be

measured as valid illustration of interacting marketing communication. The following figure

illustrates online buying process of a consumer.

Figure 3 online buying process of a consumer)

Recovery of Information: The consumer browses the information concerning the product and

congregates information , evaluate the product and prices with other products , and gathers

information about services.

Shifting of information: The consumer registers and offers his product preference.

Procurement of the product: The consumer gives the payment details, addresses information

and places the order.

Information

shift

Informatio

n

recover

Product

procurem

ent



3.7.1. E- Commerce Factors That Influence the Consumer Behaviour

Value of the product: the most significant feature that induces the buyer to buy a product is

the quality. The seller needs to identify the exact kind of product that suits the current region

or occasion or society.

Authentic information : The information provided at the site should be genuine , precise, exact

specification, which will let the consumer to buy easily and more reliably.

Free shipping : consumers online purchase decision is widely influenced by this factor.

Consumer tend to buy products which has free shipping since they are not ready to pay extra

amount apart from the product price

Easy return :Easy return policy will make the consumer feel more trust on the website and the

product he purchases. It helps them to buy a goods more freely because he can return or

exchange the product, if the product is damaged or not satisfactory while receiving.

Reviews : It is considered to be the best source to know the product from the costumers who

used them. People find it easy when they are going to buy a product with a review. Even the

sellers can improve their products from the suggestions. This review acts like a feedback.

web retailer reputation: Consumers prefers trusted websites for their online transactions to

avoid perceived risk.

Satisfaction : Consumers tend to buy another product when he is satisfied with his previous

online purchase.

Web-shopping frequency : Online shopping index , online experience is the strongest indicator

of consumers desire to buy (Greenfield,2000). Since frequent shoppers are more expected to

perform purchase.

4. CONCLUSIONS

The diverse nature of consumer behaviour have paved way for significant models and

theories. It also defines the impact on various factors like socio economic behavioural and

psychoanalytic on consumer behaviour. In the recent technological world it is also necessary

to study the behavioural aspects of consumers under e-commerce regime through latest

techniques and their vast applications. One among them is E-commerce which influences the

consumer to buy products. By studying these models and theories, it will be possible to

understand the buying pattern of the consumer to the maximum extent. When the consumer`s

behaviour is studied by the business organisation, it can win its consumers by producing

products according to their needs and desire and thereby it formulates appropriate marketing

strategies and policy prescriptions. Based on the theories , consumer behaviour is a composite

and complex phenomena.

Against this back drop, it is inferred that consumer behaviour is a composite and complex

phenomena. While some consumers are concerned with availing economic benefits from the

products, the others may aspire to acquire social status and psychological variables. The

increasing awareness of Corporate Social Responsibility (CSR) among the companies, no

doubt, moving towards the betterment of consumers. Hence it may be concluded that from

bullock cart to modern cars era, there has been a change in the behaviour of consumers

towards the trend of business in tune with the needs and preferences. Also, it has been

concluded that no single theory is able to explain how exactly consumer behaviour is .

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Documents

APPROACHES TO CONSUMER BEHAVIOUR -A …...model. Whereas the contemporary model consist of Howard Sheth Model, Engel-Kollat-Blackwell Model, Nicosia Model, Stimulus-Response Model