CONSUMER BEHAVIORThe Howard-Sheth Model

What is Consumer Behavior?

Those activities directly involved in obtaining ,

consuming and disposing of products and services, including the decision

processes that precede and follow these actions

Perspectives of Consumer Behavior

• Logical Positivism– Understanding and predicting consumer

behavior – Cause and effect relationships that govern

persuasion and/or education

• Post Modern – to understand consumption behavior without any attempt to influence it

Overall Model of Consumer Behavior

Self-Concept&

Learning

Decision ProcessesExternal Influences

Internal Influences

CultureSubcultureDemographicsSocial statusReference groupsFamilyMarketing Activities

PerceptionLearning

Memory

Motives

Personality

Emotions

Attitudes

Problem Recognition

Information Search

Alt Eval & Selection

Outlet select & Purchase

Post-purchase Processes

The Different Other Models

The Economic Theory The Learning Model Maslow’s Hierarchy of Needs Veblanian Social Psychological Model Psycho Analytic Theory Gestalt Theory Theory of Cognitive Dissonance The Nicosia Model

Organizational Buyers

• Types– Industrial– Reseller– Government and

non-profit organizations

• Purchase types– Straight rebuy– Limited decision

making– Extended

decision making

• Characteristics– Bureaucracy– Greater

involvement– Long term

relationships– Price is

important but may not be the most important factor

Howard-Sheth Model• John A. Howard and Jagdish N. Sheth• Published in the year 1969• Wished to explain the buying behavior of

individuals over a period of time • An attempt to explain the brand choice behavior

of the buyer

Howard-Sheth Model• Assumptions of the theory• That buying behavior is rational in the sense that it is within the buyer’s ‘bounded rationality’• Attempted to build a positive theory, not a normative one• If brand choice behavior is assumed to be systematic, then it can be observed in certain standard ways.• If behavior is systematic, then it is caused by some even, a stimulus either in the buyer or the buyer’s environment

Summary of the model• Elements of the Buyers Brand Choice decision are: • A set of motives• Several alternatives courses of action• Decision Mediators which are the set of rules that match motives and alternatives

• Decision Mediators develop the buyers process of learning about the buying situation.

Summary of the model• 3 levels of decision making• Extensive decision making• Limited problem solving• Habitual response behavior• Inputs• Perceptual and Learning Constructs• Outputs• Exogenous(External) variables

Howard-Sheth Model

• According to the Howard-Sheth model there are four major sets of variables• Inputs• Perceptual and Learning Constructs• Outputs• Exogenous(External) variables

Inputs

3 distinct types of stimuli in the consumer’senvironment1. Significative – product/brand characteristics

emanating from the product – quality, price2. Symbolic – product/brand characteristics

emanating from sources such as marketing and advertising

3. Social environment – not controllable by the firm – family, reference groups

Inputs lead to the following:1. Attention – buyer’s total response to information2. Brand comprehension – buyer knowledge in the

specific product class3. Brand attitude – the satisfying potential of the

brand4. Buyer intention – preferred brand will be bought

the next time buying is necessitated

Hypothetical ConstructsCentral part of the Model

Deals with the Psychological Variables that deals consumers’ decision

Comprises of 2 parts:Learning ConstructsPerceptual Constructs

Perceptual Constructs

Overt Search – stems from significative inputs.Deals with how consumers receive and understand information

Stimulus ambiguity- When the consumer does not understand the information he receives from the input stimulus

Attention Perceptual Bias-Distortion of info to suit one’s established needs.

Learning Constructs

Brand Comprehension-info about brands Confidence- derived from brand knowledge Satisfaction- from previous experience Attitude-choice, brand info Choice criteria- to evaluate alternatives Motives- Consumer’s Goals Intention- Needs of the consumer and preferences

Outputs

• Represent hierarchical responses from attention to purchase

• Purchase is the sequential result of attention, brand comprehension, brand attitude and buyer intention

Exogenous Variables

External variables which affect the buying decisions of consumers.

This Model does not recognize these but explains a little on them• Importance of purchase• Social class• Cultural background• Time pressure• Financial Status• Personality variables