CHAPTER ONE

INTRODUCING CONSUMER BEHAVIOR

1.1 Nature and Definition

For an organization customer/consumers is profit. Consumer is the reason why business exists.
Without them no company can survive or thrive. In their absence, an organization doesn’t have a
business or purpose. The main purpose of a company is to satisfy customer’s needs and wants.
All of us are consumers. We consume things of daily use; we also consume and buy these
products according to our needs, preferences and buying power. These can be consumable goods,
durable goods, specialty goods or, industrial goods. What we buy, how we buy, where and when
we buy, in how much quantity we buy depends on our perception, self concept, social and
cultural background and our age and family cycle, our attitudes, beliefs, values, motivation,
personality, social class and many other factors that are both internal and external to us. While
buying, we also consider whether to buy or not to buy and, from which source or seller to buy.

Consumers are unique and they have needs and want which are varied and diverse from one
another; and they have different consumption patterns and consumption behavior. The marketers
satisfy these needs and wants through product and service offerings. For a firm to survive,
compete and grow, it is essential that the marketer identifies these needs and wants, and
provides product offerings more effectively and efficiently than other competitors. A
comprehensive yet meticulous knowledge of consumers and their consumption behavior is
essential for a firm to succeed. The study of consumer behavior provides us with reasons why
consumers differ from one another in buying and using products and services. We receive stimuli
from the environment and the specifics of the marketing strategies of different products and
services, and responds to these stimuli in terms of either buying or not buying product. In
between the stage of receiving the stimuli and responding to it, the consumer goes through the
proces of making his decision

Peter Drucker, a leading management expert, once stated that the aim of marketing is to know
and understand the consumer so well that the product or service fits him and sells itself. Ideally,
marketing should result in a consumer who is ready to buy. All that should be needed then is to
make the product or service available. Consumer/ customer satisfaction is the key to an
organizational success. Any individual who purchases goods and services from the market for
his/her end-use is called a consumer. In other words, consumer is an ultimate user of a product or
service. They are purchasers of goods and services for immediate use and consumption. Human
being differs in their taste, needs, wants and preferences. But one constant thing is that we all are
consumers.

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Because of its vastness and complexity understanding consumer behavior and knowing
consumers is not simple task. It is almost impossible to predict with one hundred percent
accuracy, how consumer(s) will behave in a given situation. Marketers are interested in watching
people shopping, flirting, parading, playing, entertaining, as they are keenly interested in the
wide variety of behaviors they display. The efforts of all marketers are to influence the behavior
of consumers in a desired manner. The success or failure in this pursuit determines the difference
between success and failure of marketing efforts or even the business itself. Consumer behavior
explains the reasons and logic that underlie purchasing decisions and consumption patterns; it
explains the processes through which buyers make decisions. Consumer behavior may be
defined as the interplay of forces that takes place during a consumption process, within a
consumers’ self and his environment. This interaction takes place between three elements viz.
knowledge, affect and behavior; it continues through pre-purchase activity to the post purchase
experience; it includes the stages of evaluating, acquiring, using and disposing of goods and
services.

Definition Scholar
The behavior that consumers display in searching for, purchasing, using, Schiffman and
evaluating and disposing of products and services that they expect will satisfy Kanuk
their needs.”
…..the decision process and physical activity engaged in when evaluating, Loudon and
acquiring, using or disposing of goods and services Bitta
The study of consumers as they exchange something of value for a product or Wells and
service that satisfies their needs” Prensky
Those actions directly involved in obtaining, consuming and disposing of Engel &
products and services including the decision processes that precede and follow Blackwell
these actions
The dynamic interaction of effect & cognition, behavior& the environment AMA
by which human beings conduct the exchange aspects of their lives
The actions and decision processes of people who purchase goods and services Peter D.
for personal consumption. Bennett
The mental and emotional processes and the observable behavior of James F.
consumers during searching for, purchasing and post consumption of a Engel, Roger
product or service. D.

By analyzing the above definition, it reveals that the interplay between cognition, affect and
behavior that goes on within a consumer during the consumption process: selecting, using and
disposing of goods and services.

 Cognition: This includes within its ambit the “knowledge, information processing and
thinking” part. It includes the mental processes involved in processing of information,
thinking and interpretation of stimuli (people, objects, things, places and events). In our case,
stimuli would be product or service offering; it could be a brand or even anything to do with
the 4Ps.

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 Affect: This is the “feelings” part. It includes the favorable or unfavorable feelings and
corresponding emotions towards stimuli (towards a product or service offering or a brand).
These vary in direction, intensity and persistence.
 Behavior: This is the “visible” part. This could be the purchase activity: to buy or not to buy
(again specific to a product or service offering, a brand or even related to any of the 4 Ps).

Consumer behavior deals about many things:

 Consumer behavior is about people: It deals about how and why customers make decisions
to purchase as the way they do.
 Consumer behavior is about marketing: It addresses the question how products and services
are designed for and sold to consumers in the marketplace.
 Consumer behavior is about the marketplace itself in which many purchases occur each
year in millions of marketing outlets. It is about consumers buying and marketers selling.
 Consumer behavior is about many forms of influence from the subtle shaping of our culture
through the social forces from our family, friends, and peers to the persuasive attempts by
advertising and salespersons.
 Consumer behavior is about the benefits you seek through purchase decisions and the
satisfaction you obtain through consuming products and services.

Therefore, consumer behavior the activities that people engage in and the behaviors that they
display when searching for, selecting, purchasing, using, evaluating, and disposing of
products, services and ideas that they expect to satisfy their needs and desire. Such activities
involve mental activities, emotional processes, and physical actions. Examples of mental
activities are assessing the suitability of a product or service brand, making inferences about a
product or service’s qualities form advertising information, and evaluating actual experiences
with the product. Emotional activities include visiting and evaluating actual experiences with the
product. Physical activities include visiting stores, reading, consumer reports, talking to
salespeople, and issuing a purchase order.

We can define customer behavior as the mental and physical activities undertaken by
household and business customers that result in decisions and actions to pay for purchase and
use products and services. The definition of customer behavior includes a variety of activities
and a number of roles that people can hold. It reflects the totality of consumers’ decisions
with respect to the acquisition, consumption, and disposition of goods, services and ideas by
decision making units over time. Consumer behavior is the buying behavior of final consumer
(individuals and households) who buys goods and services for personal consumption.

The study of consumer behavior is the study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption-relied items. Take the simple product
toothpaste. Consumer researchers want to know what types of toothpaste consumers buy (gel,

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regular, striped, in a tube, with a pump), what brand, why they buy it (to prevent cavities, to
remove stains, to brighten or whiten teeth, to use as a mouth wash, to attract romance), where
they buy it (supermarket, drugstore, convenience store), how often they use it (when they wake
up, after each meal, when they go to bed, or any combination thereof), and how often they buy it
(weekly, biweekly, monthly).

1.2 Characteristics or Keys to Consumer Behavior

The definition of consumer behavior encompasses the following basic characteristics.

1. Consumer behavior is motivated behavior aimed at achieving particular goals. The

behavior itself is a means to and ends with the end being the satisfaction of need and desires.
It tries to link the reasons for consumer behavior to customers’ satisfaction.
2. Consumer behavior includes many types of activities. Consumers have thoughts,
evaluations, feelings, discussion, purchase decisions, actual purchase, and the experiences
that follow in using products. A person who looks only at the act of purchase will miss many
of the relevant activities that may have caused that particular behavior.

Some specific tasks involved in consumer behavior include the following:

 Thinking about products  Using the product
 Viewing advertisements, visiting  Promoting the product
stores, and seeing displays  Discussing with friends and families
 Observing others.  Deciding what, when, where to buy
 Arranging payment  evaluating alternatives
 Storing products  maintenance, disposal and recording
 Preparing the product

3. Consumer behavior is a process in which a series of related steps occur. Consumer’s

selection should be followed by purchase, which would in turn proceed by usage. It
represents the decision process approach to consumer behavior. Actual purchase is only one
step in a series of related steps. Analyzing whey individuals will make a purchase is very
essential. It clarifies what effects that purchase might have on the alter actions and purchases
of the same customer.
4. Consumer behavior differs in timing and complexity. Timing refers to when the decision is
made and how long the center process takes whereas complexity refers to the number of
activities involved in arriving at a decision and the difficulty of the decision itself. Timing
and complexity are directly correlated. That is, the more complex a decision is the more time
will be spent on it.
5. Consumer behavior involves different roles. A marketplace transaction requires the
following customers’ roles.

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 A buyer or purchaser is a person who participates in the actual procurement of the product
from the marketplace for oneself or for someone else.
 A user is a person who actually consumes or uses the product or receives the benefits of the
service.
 A payer is the person who finances the purchase.
 An initiator is a person who feels and suggests the idea of buying a product.
 An influencer is a person who influences how the purchases should take place by action or
word.
 A decider is a person who has the authority to decide on any component buying decision as
to whether to buy, what to buy, or where to buy.

Marketers must decide at whom to direct their promotional efforts; the buyer or the decider, or
the user. For some products, they must identify the person who is most likely to influence the
decision who may be neither the buyer nor the user. For example, as people live longer, they
often depend more and more upon the advice and counsel of their children or other caregivers.
Some marketers believe that the buyer of the product is the best prospect; others believe it is the
user of the product; while still others play it safe by directing their promotional efforts to both
buyers and users.

6. Numerous external forces influence consumer’s decision process. Studying consumer

behavior is the key to planning and managing in the ever changing environment. My
consumers now hold firms responsible not only for the quality of their products and
advertising but also the social and environmental consequences of manufacturing and using
the products. Therefore, consumers should adapt to these environmental factors that
surround them.

The following outside forces affect consumer behavior:

 Culture: The beliefs, values and views you share a members of a society
 Subcultures: Groups of people, within an entire culture, who tend to share particular
patterns of values and behaviors. It is defined on the basis of sex, race, age, nationality and
religion.
 Social class: It includes variables such as occupation income, and educational level affects
your life styles and has great influence on your consumption patterns.
 Family: It serves to help develop children’s consumer personalities as shoppers and
spenders.
 External conditions: Such as inflation, level of employment, interest rate, availability of
credit, etc.
 The marketing environment and situational effects or temporary forces
 Reference groups and friends, etc. influence consumer’s behavior.

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7. Consumer behavior differs for different people. People would engage in different behaviors
because of individual differences. Each of us undertake different consumer activities and
makes somewhat different purchases in line with different preferences. In order to develop
successful marketing strategies, both domestically and globally a thorough understanding of
consumer behavior is very essential.

1.3. Need for Study of Consumer Behavior

The study of consumer behavior helps everybody as all are consumers. It is essential for
marketers to understand consumers to survive and succeed in the competitive marketing
environment. The following reasons highlight the importance of studying consumer behavior as
a discipline.

 Importance in day to day life: The purpose of studying a discipline is to help oneself to
better appreciate its contributions. The reason to study consumer behavior is because of the
role it plays in the lives of humans. Most of the free time is spent in the market place,
shopping or engaging in other activities. The extra time is usually passed in knowing and
thinking about products and services, discussing with friends about them, and watching
advertisements related to them. The usage of them significantly reveals our life styles. All
these reasons suggest the need for study. However, the purpose may be to attend immediate
and tangible reasons.
 Pertinence to Decision Making: Consumer behavior is said to be an applied discipline as
some decisions are significantly affected by their behavior or expected actions. The two
perspectives that seek application of its knowledge are micro and societal perspectives. The
micro perspectives involve understanding consumer for the purpose of helping a firm or
organization to achieve its objectives. The people involved in this field try to understand
consumers in order to be more effective at their tasks. Whereas the societal or macro
perspective applies knowledge of consumers to aggregate level faced by mass or society as a
whole. The behavior of consumer has significant influence on the quality and level of the
standard of living.

1.4 The Model of Consumer behavior

A model is very often referred to as an abstract representation of a process or relationship. We

tend to hold various models in our minds, which allow us to make sense of the world, and also
help to predict the likely course of events. To put it simply, models help us in the development of
theories, understanding complex relationships, and providing the framework from discussions
and research work. Consumer behaviorists as well as marketers are interested in understanding
how and why certain decisions are made.

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Since 1960s, the study of consumer behavior has focused largely upon consumer decision-
making processes. Influenced by cognitive psychology, a number of so-called modal models (or
“box-and-arrow” models) have been proposed, presenting the various stages the consumer goes
through when choosing a product to buy or store to shop in, presented in a flow-chart format. A
rather stylized summary of these modal models might look something the following figure. In
the left-hand column above, we can see that the decision process begins with the consumer
recognizing that he or she needs or wants to buy an item. Attention is then devoted to the task in
hand and information gathered. The consumer evaluates the options available, makes his or her
choice and purchases the product. At any stage in the process, events encountered at one stage
may cause the consumer to revert to a previous stage; e.g., during evaluation, none of the options
available may prove satisfactory & the consumer may therefore decide to reassess the initial need
and begin the process again for a completely different alternative solution.

Conversely, with very common or repeat purchases, particular stages (e.g. information search)
may be passed through without conscious attention being applied (i.e. maybe automatized)
because the information required is already available in memory. Finally, note how the decision
process doesn’t end with purchase - the extent to which a purchase is deemed successful or
unsuccessful will feed back to influence future purchase decisions. To the right of the diagram,
we see environmental factors, which may influence the decision-making process at any stage.
This category would include a whole array of variables, ranging from exposure to advertising
and promotional materials through to store atmosphere, crowding and the opinions of significant
others.

The diagram is a summary of the models available which, however complex they may appear, all
hypothesize the same linear decision-making process. There is no single universally accepted
model, each having its own particular strengths and weaknesses. In a way, this is probably a

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reflection of the many different consumer motivations highlighted above - particular models
being stronger than others for specific types of shopping. There are two main problems with
modal models such as this when it comes to their usefulness to the marketer. Firstly, the “box-
and-arrow” approach is rather descriptive. It tells us the decision-making stages the customer
negotiates, but tells us very little about how the marketer can actually influence these stages to
make his or her product/service the preferred option. The second weakness of this approach is
closely related to the first. Note how the environment is merely “lumped together” to the right of
the diagram. When we consider all of the factors this encompasses (store location, layout,
advertising, prevailing socio-economic conditions, etc.), this seems woefully inadequate.
Moreover, the location of the environment box separate to the decision-making process gives the
impression of the environment as simply being something “out there”, divorced from the
individual shopper. The reality, of course, is that consumers are a part of the environment,
interacting with environmental factors and influencing each other. A more accurate model of
consumer decision-making would probably locate the environment “box” as follows: -

As you can see, this revised model locates the decision-making process within the environment
box, recognizing that the individual is part of the environment.

Types of consumer behavior models:

 Simple models  Comprehensive models
 Black Box models  Engel, Blackwell and Miniard
 Personal variable models  Engel, Kollat and Blackwell
 Personal Variable/Post Purchase  Howard-Sheth
Satisfaction model  Nicosia

Perhaps the most useful set of categories is that of low, medium or high level models. In this case
the level refers to the level of complexity - so a low level model would be a relatively simple

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representation of the phenomenon while a high level model of the same event would be much
more complex and detailed and include more variables. One of the most cited models is that of
the ‘Black Box’. Black box models focus solely on inputs and outputs and do not consider
internal variables. They suggest that a given stimulus will prompt a particular response, within
this processing centre; memory, goals and expectations are considered. Simple black box models
are based on identifiable observable and measurable variables, however they are unable to
predict or explain behavior. Over time more comprehensives models have been proposed. One of
the earliest decision making models is the 1966 Nicosia Model cited. The model is split into four
key fields: (1) The source of a message to the consumers attitude (2) The search for and
evaluation of alternatives (3) the act of purchase (4) Storage and the use of the purchased
product. The model attempted to demonstrate how the company influences the consumer through
its promotional and advertising activities. However, criticisms have been raised about this model,
include its descriptive content, its brevity that it has never been fully tested and is now
considered historical. Engel developed a model to explain consumer behavior and highlighted
five stages of the decision making process: (1) motivation and recognition of need (2)
information search (3) evaluate alternatives (4) purchase (5) outcomes. Motivation, often
referred to as need recognition, is individual to every consumer, and focuses on the three key
determinants, information stored in the memory, individual influences and environmental
factors. Consumers will consider the gap between the ideal state and the current perceived state,
thereby deciding whether to progress forward to the next stage of the process, information
search.

Search takes two forms internal and external. The dependence on the two search modes will vary
in relation to the need recognized and the individual situation. Although information search is
primarily conducted internally, with the extreme level of involvement necessary to make a
university choice it is likely that an external search would be used. It could be suggested that
when students enter the university decision making process they adopt a satisfying approach.
Research by Bakewell & Gibson-Sweet, suggested that students make university decisions on
incomplete information. This is likely as students are busy, with work and exams and eventually
get overloaded with information, so stop searching. Furthermore, as educational choice is
generally a one-off, the search is likely to be quite extensive. This is supported by Assael, who
reports that, buyer decision making process vary with the type of decision, and that the more
complex the decision, the more buyer deliberation. Obviously university choice is one of the
most important decisions that needs to be made in a student’s life with extensive decision
making taking place, where a significant level of effort is put into identifying key criteria and
moving through the decision making process. Furthermore, if there are widely different
alternatives from which to choose from, then consumers are likely to get more involved in the
decision making process. However, consumers are not always rational and do not consider all the
alternatives. Foxall, when suggesting the limitations to decision making models, states that the
models assume an unrealistic degree of consumer rationality. Often only an evoked set is
considered. This is being a limited number of alternatives.
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When evaluating alternatives, belief, attitudes and intentions are considered. This will then
reduce the alternatives to the most suitable options available. Alternative evaluation will also be
affected by individual differences, such as motivation, attitudes and knowledge as well as
environmental influences. It is likely that potential students base their evaluation on a limited
number of key criteria as opposed to looking at whole university offerings. At the final purchase
stage new factors may change the initial decision. For instance in an academic decision the issue
of A level exam grades is likely to play an important role. Outcome can either be satisfaction or
dissatisfaction. When satisfaction is prevalent then the recognized need has been met and
satisfied. However, if this is not the case post-purchase cognitive dissonance may occur where
different attitudes have to be weighed up as part of a decision, and the negative features of the
chosen alternative start to be apparent, this then causes dissatisfaction. Consumers can try to
ignore this, change the decision made, or concentrate on the good points of the decision made to
try and reduce the dissatisfied feeling.

Models of Consumer Behavior

1) Economic Model: Economic model of consumer behavior is one-dimensional. This means

that buying decisions of a person are governed by the concept of utility. Being a rational man
he will make his purchase decisions with the intention of maximizing the utility/ benefits.
Economic model is based on certain predictions of buying behavior (a) price effect-lesser the
price of the product, more will be the quantity purchased (b) Lesser the price of the substitute
product, lesser will be the quantity of the original product bought (substitution effect) (c)
More the purchasing power, more will be the quantity purchased (income effect).
2) Learning model: Classical psychologists have been interested in the formation and
satisfaction of needs and tastes. They argued that living beings were influenced by both
innate needs such as the primary needs of hunger, thirst, sex, shelter and learned needs like
fear & guilt. A drive or internal stimulus which when directed towards a drive-reducing
object becomes a motive. The various products or service will act as a stimulus to satisfy
drives. For example, if you are a hungry you will be driven towards food, which after
consumption will reduce the drive and provide and provide satisfaction.
3) Psychoanalytical model: This model is based on the work of psychologists who were
concerned with personality. They were of the view that human needs and motives operated at
the conscious as well as subconscious levels. Sigmund Freud developed this theory.
According to him human behavior or personality for that matter is the outcome of three
components, viz., (a) ‘id’ which is the source of all psychic energy which drives us as action
(b) ‘super ego’ which is the internal representation of what is approved by the society (c)
‘ego’ which is the conscious directing ‘id’ impulses to find gratification in a socially
acceptable manner. Thus we can say that human behavior is directed by a complex set of
deep-seated motives. This means that buyers will be influenced by symbolic factors in
buying a product. Motivational research has been involved in investing motives of consumer
behavior so as to develop suitable marketing implications accordingly. Marketers have been

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 using this approach to generate ideas for developing product-design, features, advertising and
other promotional techniques.
4) The sociological model: According to this model the individual buyer is a part of the
institution called society. Since he is living in a society, gets influenced by it and in turn also
influences it in its path of development. He is playing many roles as a part of various formal
and informal associations or organizations i.e., as a family member, as an employee of a firm,
as a member of a professional forum and as an active member of an informal cultural
organization.

The Howard Sheth Model of Buying Behavior

This model serves two purposes:

 It indicates how complex the whole question of consumer behavior is.
 It provides the framework for including various concepts like learning, perception,
attitudes, etc., which play a role in influencing consumer behavior.
Inputs: In the Howard Sheth theory, the most significant stimulus affecting the buying
behavior is the information cues about the characteristics of the product. These cues may be
significant if it comes to the buyer from the product itself when he is involved in a shopping
activity. A similar set of, cues, which are symbolic in nature, may also act as information
sources. Both these significant and symbolic information cues represent the firms marketing
efforts. The broad or product characteristics acting as information cues are quality, price,
distinctiveness, service and availability. There are impersonal sources like mass media
communications and advertising, over which the firm has no control. However, the
information sources also include sales and service personnel who can add and help the
marketing efforts of the firm. The third source is social information cues which could affect
buying behavior towards the product or brand and these include family, friends or other
members of the group with whom buyer comes into contact or to which he aspires to be in.
The social source is personal and the company marketer has no control over this source.
Perceptual Constructs: This refers to all the complex states or psychological processes
(perception) and how the individual deals with the information cues received from various
sources. It can be seen that all information available is not attended to (attention) and may
not always be crystal clear in its meanings (ambiguity). Although the individual may be
engaged in an overt search for information, sometimes he/she may be bombarded with
unwanted information. Moreover, any information cues to which the individual may attend
may be distorted (perceptual bias) as result of his own frame of reference.
Learning Constructs: The second set of hypothetical constructs in this theory are more
complex and numerous. ‘Motives’ refers to the goals the individual attempts to achieve
through his/her buying behaviour. These goals are derived from the various drives (needs),
which may be acting as a cue for his/her motive. More closely related to the buyers intention
in his attitude towards the product/brand. Whether he/she formed a positive attitude towards
the product/brand. Other learning constructs include ‘brand comprehension’ i.e.,

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 knowledge/awareness about the brand characteristic features that forms the basis for the
buyers evoked set of alternatives; choice criteria, and the confidence the individual has about
his/ her brand comprehension, attitudes, or intentions. Finally, the model includes a
construct, ‘satisfaction’. This refers to ‘feedback’ mechanism, i.e., the post purchase and post
use evaluation of the output of the process.
Output: The purchase decision is the output. If after using the product, the consumer is
satisfied with it, this will reinforce his positive attitude and purchase intent about the product
and brand. Also, the positive attitude makes the consumer more attentive to the
product/brand’s stimuli and further increases his brand comprehension. If the consumer is
dissatisfied with experience of using the product/brand, it will trigger off a reaction of
negative attitude, low attention to the product stimuli. Poor brand comprehension and
negative intention to purchase.
 Exogenous or external Variables: This theory also includes a number of variables, which
are not explained but have a bearing on some or all of the constructs discussed above and
indirectly influences the output or consumer response.
1. Social and Organizational Setting: Man is basically a social animal. Because of his
interactions with various groups and society, they look to each other for guidance regarding
what to buy, how to buy/dress, etc.
2. Social class: In order to conform to the norms of the social class to which he/she belongs, the
individual will be engaged in a behavior, which will be acceptable to the social class to
which it belongs.
3. Culture: refers to the shared, somewhat consistent pattern of behavior of a group of people.
Each culture has a set of beliefs, values, etc. So the pattern of buyer behavior will be based
on a pattern of behavior shared in a specific subset of a larger culture-a subculture trait.
4. Purchasing power/ Financial status: The money/income available for purchasing goods
and services during some specific time period also plays a role in influencing the
consumption pattern and thereby his buying behavior.

Engel-Kollat-Blackwell Model

 Variables grouped into categories: a) Stimulus inputs b) information processing c) decision

process and d) variables influencing the decision process
 Strength of model
 Deals with low-involvement situations. It is suggested that in low involvement situation the
degree to which the various stages in the model are undertaken decreases
 Problems with model
 No way of testing e.g. If had idea of personality characteristics how could they be applied or
measured in relation to predicting buyer behavior
 Lack of specificity i.e. variables are named in superficially plausible way but not specified in
any operational detail

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This model talks of consumer behavior as a decision making process in the form of 5 steps or
activities. The five steps are as under:

Problem recognition: the consumer will recognize a difference between his or her actual
state and what the ideal state should be. This may occur on account of external stimuli.
Information search: Initially the information available with the consumer may be consistent
to other beliefs and attitudes held by him or her. While being involved in an information
seeking or search stage, the consumer will try to gather more information from various
sources. The individual gets exposure of the stimuli which may catch his or her attention, be
received and stored or retained in memory. This method of information is selective in nature
and the consumer will accept the information, which is conclusive to what is perceived by
them.
Alternative evaluation: Now the individual will evaluate the alternate brands. The methods
used for evaluating the various products will depend on the consumer’s underlying goals,
motives and personality. The consumer also has certain predetermined beliefs about the
various brands in terms of the characteristics associated with the different brands.
Choice: the consumer’s choice will depend on his or her intention and attitude. The choice
will depend on normative compliance and anticipated circumstances. Normative compliance
relates to the extent to which the consumer is influenced by other people like friends, family
members etc.
Outcome: The outcome may either be positive. Apart from these 5 steps the model also
includes a number of other related variables grouped into five categories.
 Information input  General motivating influences
 Information processing  Internalized environmental
 Product-brand evaluation influences
The Engel-Kollat-Blackwell model consists of four components:
i. Information processing iii. Decision Process and
ii. Central control Unit iv. Environmental influences
1. Information Processing: this component comprises the consumer’s selective exposure,
attention, comprehension and retention of stimuli relating to a product or brand received from
marketing and non-marketing sources. As a marketer, the first step is to ensure that a
consumer is exposed to your message or stimuli, pays attention to it, understands what it is
all about and also remembers it.
2. Central Control Unit: The stimuli thus received and retained are processed in the central
control unit. The stimuli is processed and interpreted with the help of four psychological
filter:
a) Stored information and past experience about the product/brand which serves as a
memory for comparing different alternatives;
b) Evaluative criteria which the consumer uses in judging the alternatives;
c) General and specific attitudes which influence the purchase decision;

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 d) Basic personality traits, which influence how the consumer is likely to respond to various
alternatives.
3. Decision process: The decision process component of the model consist of:
a) Problem recognition d) Purchase processes
b) Internal search and evaluation e) Decision outcomes
c) External search and evaluation
If the purchase decision requires extensive problem solving, the consumer would go through
all the above five stages. In case of limited problem solving or routinised response behavior,
some of the intervening stages may be skipped and the consumer may directly reach the
purchase decision.
4. Environmental Influences: The environmental factors that may influence the consumer’s
purchase decision are income, culture, family, social class and physical situations. Depending
on the specific product under consideration, these factors may have a favorable or
unfavorable influence on the purchase decision.
Engel-Kollat-Blackwell Model

Fig. 1.2 Engel-Kollat-Blackwell Model of consumer behavior

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