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Now, we look at an important Consumer Behavior Model this is called the Howard Shethconsumer behavior model, Howard is an American; Sheth is an Indian - both of themcame out with this wonderful model on consumer behavior back in the year 1969. This istaken from their book on the theory of buyer behavior.Student: (Refer Time: 01:09).Which came out through John Wiley in the year 1969. In this book you can find thismodel on page number 30 of this book. A wonderful compartmentalization has beengiven by these two gentlemen. On the type of inputs which go into play with respect toconsumer behavior. They have put it under the heads stimulus then symbolic then social.This is a type of inputs which have come into play, one with respect to stimulus displaythis stimulus display can be significative symbolic or social, so these are the typicalinputs.In significative are the factors that are going to affect the significative inputs that is thequality of the product, the price of the product, the distinctiveness service and the
availability. With respect to symbolic inputs what are the type of factors that are going tocome in? It gives quality, price, distinctiveness, service and availability. As you see thesignificative inputs the symbolic inputs are more or less the same they contribute tostimulus display.Then with respect to the social inputs, who can influence the decision with respect to aproduct. The typical groups which can influence the decision with respect to a productcould be family or could be reference groups you may have certain reference groups withrespect to a particular individual which will influence. Suppose he wants to buy a car andhe is always in the company of people who are owners of a particular brand of car, theyform the reference groups for him. He may also like to have the same type of car and thisdepends on the type of social class he is like he is in.These are the different social inputs which are likely to come into play, that is yourfamily your reference groups and the social class now all this is going to give a fewthings with respect to the consumer. He enters the domain of what we call the perceptualconstructs. These inputs give him the domain when he comes to the domain of perceptualconstructs, he does what is called the overt search that is open search.After that overt search, there may be a stimulus ambiguity which might step in. He mayfind many companies exhibiting the same type of products which he may be interestedin. All these products may catches attention and towards a particular companies producthe may develop more attention or he may be bias towards that company.That is the perceptual bias which steps in. The perceptual constructs lead to what iscalled the learning constructs. What is these learning construct? The customer developsconfidence about his own decision making and when he develops confidence about hisown decision making, this is likely to result in a particular attitude being exhibited byhim depending upon the types of motives he may have.The confidence, the motives giving rise to certain attitudes, then this motives also givingrise to certain choice criteria. He may decide on the choice criteria with respect to hisproduct. All this will lead to what we call the behavioral intentions which are exhibitedby the consumer. These perceptual constructs lead to what is called the learningconstructs.
These learning constructs towards the end exhibit the buyer’s behavior intentions. Thebuyer’s behavior intentions are also influenced by the types of brands which arecompeting to satisfy this particular product, category that is the brand comprehensionstake a washing machine. For example, you have. Many brands like the LG, IFB,Samsung, many of them so, all these are catering to this particular market segment.The brand comprehension is what comes in next with respect to the individual and nowhe decides on a particular brand of the product, he takes that particular product brand.When he when he makes that purchase; when he comes to the stage of brandcomprehension he would have almost come to the stage of making a purchase of theproduct.This purchase of the product is coming into play through these blocks; one is the productcatching his attention, the brand comprehension his attitude then intension resulting inpurchase. This results in purchase of the product once he comes to when once he crossesthis intention block. It is almost very sure or certain that he is going to make a buy of theproduct because, mental evaluation would have told him ‘yes I am I can afford to havethis particular product’.When he purchases this product the next thing which we are seeing has satisfaction,typically means after the use of your product how satisfied he is with respect to yourproduct usage and that determines whether he is going to have a better feedback on yourproduct for the next prospective customers.This word of mouth publicity is very important in marketing all these are exhibited inthis wonderful model of Howard Sheth. The first one is inputs resulting into perceptualconstructs, learning constructs, then coming out with outputs I am going to. Exhibit foryou many of our Indian students felt that this is very complicated, can we not have asimple model in the Indian context of consumer behavior.
(Refer Slide Time: 10:14)
A typical consumer behavior model in the Indian context is exhibited in the slide. This isa typical consumer behavior model in the Indian context which can be applied for anyproduct any market. If you look at this; this is how it looks like.(Refer Slide Time: 11:18)
A typical Indian consumer behavior model look at the inputs that is a stimulus, inputscould be the firms marketing environment marketing efforts then the social environment.We normally categorize this under different variables: one is what is called theendogenous variables that is the variables which are existent within the individual. They
form what is called the decision making for the individual, that we put under what isnormally refer to as the psychological frame of the individual. What are these factvariables? These are the motivational variables, the personality the perception and theattitudes.They form the typical decision making process or the psychological frame of theindividual. If you look at a particular washing machine purchase itself, as a householderyou might recognize the need for buying a washing machine you may say it is notpossible to wash all these clothes by hand.If the number of clothes is too many, better to go in for a washing machine. When yourecognize it is need for a washing machine you start searching for the products, whichare the companies which are producing this washing machines it can be IFB, LG. orSamsung.In a particular product you may develop interest then you go to the next part evaluatingthat product. Suppose in a particular product you do not develop interest then the interestwill break down. You exit from that only, when the evaluation of the product results foryou to buy there is an intention to buy that particular product, this intension leads to whatis called immediately the purchase.When the consumer comes to this intention stage the typical output that you can expect ispurchase. After he purchases a consumer durable like the washing machine you also lookfor what is called his post purchase behavior, that is whether he is happy with the productnot happy with the product and if he is happy with the product he can may recommendyour product to some other consumers also. He may also recommend it to his own veryclose family members. This may result in repeat purchases or he may discontinue he maysay the product is not performing well.This can happen to a typical consumer durable like the washing machine or it can alsohappen to TV’s. So, different brands of TV’s being on sale in the marketplace. So, youmay find so many brands vying for the same space. This is a typical consumer behaviormodel in the present day context and all these can be put in a slightly different form, thismodel is what is called.
We look at the Howard Sheths consumer behavior model, then we gave a model for theIndian consumer a typical consumer behavior model in the Indian context. Now, eventhat model has undergone changes with respect to the type of competition that are set in.Now, you have to visualize what is called the consumer behavior model in this fiercecompetitive marketing world which has set in the Indian context.This modern view of consumer behavior comes in, you have if you look at the modernbehavior of view of consumer behavior you have three stages one is product acquisition,second is product usage, third is product disposal. So, this is also happening with respectto even automotives. Kindly note that when you acquire a Maruti car you use a Maruticar; after sometime you want to dispose of your car - it was unthinkable for an Indianconsumer.Now, if you look at the modern Indian modern behavior of the Indian consumer, he maylike to change his car even once in three years. He may say ‘yes I used this car for threeyears let me go in for a different car’. So, this is these are the typical stages he goesthrough a product acquisition, product usage and the product disposal. The type ofprocesses that he goes in need identification the product search the merchant search thenegotiation and the purchase.When he is doing looking this using this product, what is the type of after sale support hegets. Using this he makes a product performance assessment how is his product doinghow is his car performing or what type of performance was promised. What is the type ofperformance he is getting? All this results in this block product disposal, he may like toresell the product you may like to give it away or he may like to recycle or he may like todiscovered the product all this different stages will come into place.These are called processes you may resell the product, sometimes you may give away theproduct, sometimes you may recycle the product, sometimes you may discard theproduct. You may many times many of these perishable food items, if you really seeafter sometime you keep it in a fridge after keeping in the fridge also you manytimes think that even after the keeping in the fridge it is not usable. You discard thewhole this thing.The type of roles that you can visualize in the light of these stages and processes. He canbe a shopper he can be a buyer and he can be a payer for your product and when he is
having donning these roles he becomes a typical user for your product. He also can cometo the role of the terminator where he discards your product, he has no link with yourproduct all together.All this takes place in a time frame, this time frame can be minutes with respect to thecandy we saw or it can be hours with respect to some other are eating item or days orweeks months or years. Depending on the type of the product which catches his interestand in which his intention is to buy that product.So, a typical modern view of the consumer in the present day fierce Indian market is canbe visualized with respect to stages, with respect to processes, with respect to roles andalso with respect to the time frame ok. With respect to stages it can be productacquisition product usage and product disposal, with respect to processes all the typeswhich we have mentioned with respect to roles, the shopper buyer payer user terminator.And all this may take place with the time frame it can be going from minutes to hours todays to weeks months and years. This is a very nice method of depicting the consumerbehavior in the present day Indian market.So, we looked at three types of models; one is the first wonderful model given byHoward and Sheth with respect to consumer behavior. Second we looked at how thismodel can be used with respect to consumer behavior in the Indian context what is thetype of modifications you looked at.So, in that consumer behavior model we looked at the endogenous variables which arepresent in the individual. The exogenous variables are outside the individual over whichhe has no control. And to the typical modern view of the consumer behavior in thispresent fierce competitive Indian market can be visualized with respect to stages, withrespect to processes, with respect to roles and the time frame ok. We stop here, we willcontinue in the next class.