BASIC CONSUMER BEHAVIOUR MODEL
The basic model of consumer behavior describes the process through which individuals make decisions regarding the purchase, use, and disposal of goods and services. It involves several stages and factors that influence consumer choices. Here is a simplified version of the basic model of consumer behavior:
NEED RECOGNITION
Need recognition is the first stage in the consumer behavior model. It occurs when a consumer becomes aware of a problem or a need that requires a solution. This need can arise from various sources, including internal stimuli (e.g., hunger, thirst, personal desires) or external stimuli (e.g., advertisements, recommendations from others, social influences).
The need recognition stage involves two types of needs:
a) Functional Needs: These are needs related to the performance or functionality of a product or service. For example, a person might recognize the need for a new laptop because their current one is slow and outdated.
b) Psychological Needs: These are needs related to the emotional and psychological aspects of a product or service. For instance, a person might feel the need for a luxury vacation to relax and rejuvenate.
The intensity of the need recognition depends on factors such as the significance of the problem, the consumer’s perception of the problem, and the urgency to find a solution.
INFORMATION SEARCH
Once the need is recognized, the consumer moves on to the information search stage. In this stage, the consumer actively seeks information about potential solutions to fulfill their needs. The information can be gathered from various sources, such as personal experiences, advice from friends and family, advertising, online research, consumer reviews, and expert opinions.
The information search can be categorized into two types:
- Internal Search: Involves retrieving information from memory based on past experiences and knowledge. For example, a consumer may recall their previous experiences with a particular brand or product.
- External Search: Involves seeking information from external sources such as friends, family, the internet, product reviews, and comparison websites. The consumer seeks to gather information about different brands, features, prices, and reviews to make an informed decision.
The extent of information search can vary based on factors such as the importance of the purchase, the complexity of the product or service, and the consumer’s personal characteristics.
EVALUATION OF ALTERNATIVES
After gathering relevant information, the consumer enters the evaluation of alternatives stage. Here, the consumer assesses different options to determine the best alternative that satisfies their needs and preferences. They compare various attributes, features, benefits, prices, and other factors that are important to them.
Consumers use different decision-making strategies during this stage, including:
- Attribute-based Evaluation: Involves evaluating the importance of different product attributes and comparing alternatives based on those attributes. For example, comparing smartphones based on screen size, camera quality, and battery life.
- Overall Evaluation: Involves forming an overall evaluation or impression of each alternative based on a combination of attributes. This approach considers multiple factors simultaneously to make a holistic judgment.
- Heuristics: Consumers may also use mental shortcuts or heuristics, such as relying on brand reputation or recommendations from trusted sources, to simplify the evaluation process.
The consumer’s evaluation is subjective and influenced by their personal preferences, values, past experiences, and the information gathered during the search stage.
PURCHASE DECISION
Once the alternatives have been evaluated, the consumer makes a purchase decision. At this stage, the consumer chooses a specific product or service from the available options. The purchase decision is influenced by various factors, including:
- Price: The consumer considers the price of the product or service and its perceived value. They assess whether the price is worth the benefits they expect to receive.
- Brand Reputation: The consumer may prefer certain brands based on their reputation, perceived quality, and trustworthiness.
- Product Features: The consumer evaluates the features, functionality, and performance of the product or service to determine if it aligns with their needs and preferences.
- Availability: The consumer considers the accessibility and availability of the product. Factors such as convenience, location, and delivery options can influence the purchase decision.
- Social Factors: Social influences, such as recommendations from friends, family, or influencers, can play a role in the purchase decision. The consumer may also consider the opinions of others to validate their choice.
POST-PURCHASE EVALUATION
After making the purchase, the consumer enters the post-purchase evaluation stage. In this stage, the consumer evaluates their decision and the actual experience of using the product or service. This evaluation can result in one of the following outcomes:
- Satisfaction: If the product or service meets or exceeds the consumer’s expectations, they experience satisfaction. It reinforces their positive perception and may lead to repeat purchases and positive word-of-mouth.
- Dissatisfaction: If the product or service fails to meet the consumer’s expectations, they may experience dissatisfaction. This can result in negative word-of-mouth, a desire to return the product, or a decision to switch to a different brand in the future.
The post-purchase evaluation stage influences the consumer’s overall satisfaction and loyalty, which can impact future buying decisions and their perception of the brand.
CONSUMER BEHAVIOR OUTCOMES
The final stage of the consumer behavior model involves the outcomes of consumer behavior. These outcomes can be categorized into three types:
a) Repeat Purchase Behavior: If the consumer is satisfied with their purchase, they are more likely to engage in repeat purchase behavior. They become loyal customers and continue to purchase the same brand or product in the future.
b) Word-of-Mouth Communication: Consumers share their experiences and opinions about products and services with others. Positive word-of-mouth can contribute to brand reputation and attract new customers, while negative word-of-mouth can harm a brand’s image.
c) Brand Loyalty: A positive post-purchase evaluation, coupled with repeated satisfactory experiences, can lead to brand loyalty. Brand loyal consumers consistently choose a specific brand over others and may become advocates for the brand, recommending it to others.
These consumer behavior outcomes are influenced by various factors, including product quality, perceived value, customer service, marketing efforts, and the overall consumer experience.
It’s important to note that the consumer behavior model provides a general framework, but individual consumers may deviate from this process due to various factors such as impulse buying, limited time or information availability, or situational influences.
Also, consumer behavior is influenced by various internal and external factors, including personal characteristics, social and cultural influences, psychological factors, marketing messages, and environmental factors. The basic model provides a framework to understand the general decision-making process, but individual consumer behavior can be complex and vary depending on the specific context and circumstances.