Howard Sheth Model of Consumer Behaviour

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Class presentation explaining the working of the Howard Sheth Model across the various levels of consumer decision making.

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Howard Sheth Model of Consumer Behaviour: 

Howard Sheth Model of Consumer Behaviour 1 Prepared By: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Attempt to explain rational brand choice behavior within the constraints of Limited Individual Capacities Incomplete Information Three levels of learning /stages of decision making Extensive problem solving Limited problem solving Routinized response behavior 2 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Extensive Problem Solving Early Stage of Decision Making Buyer has little Information of Brands Buyers Choice Criteria is NOT yet Formed 3 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Limited Problem Solving Advanced Stage of Decision Making Choice Criteria are now Defined Buyer Undecided about the Best Brand 4 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Routinized Response Behaviour Choice Criteria are Well Defined Strong Predisposition towards one Brand Little Evaluation of Alternatives by the Buyer 5 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Postulates four sets of concepts / constructs or variables Inputs Outputs Hypothetical construct Perceptual Construct Learning construct Exogenous variables 6 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model 7 © Copyright 2010 Anupam Kumar INPUTS PERCEPTUAL & LEARNING CONSTRUCT OUTPUTS EXOGENUOUS VARIABLES

Howard Sheth Model - Inputs: 

Howard Sheth Model - Inputs Input Variables consist of three distinct stimuli (information sources) The marketer furnishes Physical brand characteristics ( significative stimuli) Verbal or visual product characteristics (symbolic stimuli). The third type is family, reference group, and social class. All three types of stimuli provide inputs concerning the product class or specific brands to the specific consumer. Significative Quality Price Distinctive Service Availability Symbolic Quality Price Distinctive Service Availability Social Family Reference Group Social Class 8 © Copyright 2010 Anupam Kumar

Howard Sheth Model - Output: 

Howard Sheth Model - Output The outputs are the results of the perceptual and learning variables How the consumers will response to these variables Purchase Attitude Intention Attention Brand Comprehension Attention Brand Comprehension Attitude Intention Purchase Intention Routinized Response Behaviour Limited Problem Solving Extensive Problem Solving 9 © Copyright 2010 Anupam Kumar

Howard Sheth Model - Hypothetical Constructs: 

Howard Sheth Model - Hypothetical Constructs It is the central part of the model Deals with the Psychological Variables Involved with the consumer’s decision contemplation Perceptual Variables are concerned with Consumer receipt of Information from Input Stimuli and Other Parts of the Model Consumer’s understanding of the information Interaction between the different variables in the Perceptual and Learning constructs and other sets give the Model its distinctive advantage. 10 © Copyright 2010 Anupam Kumar

Howard Sheth Model – Perceptual Construct: 

Howard Sheth Model – Perceptual Construct P ertain to the way the individual deals with information How the Consumer Receives Information How Consumer Understands Information Stimulus ambiguity When the consumer does not understand the message from the environment Perceptual bias When the consumer distorts the information received so that it fits his or her established needs or experience Overt Search Stimulus Ambiguity Attention Perceptual Bias Significative Inputs Symbolic Inputs 11 © Copyright 2010 Anupam Kumar

Perception: 

Perception The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world How we see the world around us 12 © Copyright 2010 Anupam Kumar

Perceptual Selection: 

Perceptual Selection Consumers subconsciously are selective as to what they perceive. Stimuli selected depends on two major factors Consumers’ previous experience Consumers’ motives Selection depends on the Nature of the stimulus Expectations Motives 13 © Copyright 2010 Anupam Kumar

Perceptual Selection: 

Perceptual Selection Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Consumers seek out messages which: Are pleasant They can sympathize Reassure them of good purchases 14 © Copyright 2010 Anupam Kumar

Perceptual Selection: 

Perceptual Selection Selective Attention Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium 15 © Copyright 2010 Anupam Kumar

Howard Sheth Model – Perceptual Construct: 

Howard Sheth Model – Perceptual Construct P ertain to the way the individual deals with information How the Consumer Receives Information How Consumer Understands Information Stimulus ambiguity When the consumer does not understand the message from the environment Perceptual bias When the consumer distorts the information received so that it fits his or her established needs or experience Overt Search Stimulus Ambiguity Attention Perceptual Bias Significative Inputs Symbolic Inputs 16 © Copyright 2010 Anupam Kumar

Howard Sheth Model - Learning Construct: 

Howard Sheth Model - Learning Construct Learning Construct Category Consumers’ Goals Information about Brands Criteria for evaluation Alternatives Preferences Buying Intentions Confidence Attitude Motive Choice Criteria Brand Comprehension Intention Perceptual Bias Satisfaction 17 © Copyright 2010 Anupam Kumar

Learning: 

Learning Learning refers to any change in the content or organisation of long-term memory and/or behaviour Learning are the changes in an individual’s behavior arising from experience A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior. 18 © Copyright 2010 Anupam Kumar

Characteristics of Learning: 

Characteristics of Learning The strength of learning is influenced by: importance involvement mood reinforcement stimulus repetitions imagery 19 © Copyright 2010 Anupam Kumar

Howard Sheth Model - Learning Construct: 

Howard Sheth Model - Learning Construct Learning Construct Category Consumers’ Goals Information about Brands Criteria for evaluation Alternatives Preferences Buying Intentions Confidence Attitude Motive Choice Criteria Brand Comprehension Intention Perceptual Bias Satisfaction Routinized Response Behaviour Limited Problem Solving Extensive Problem Solving 20 © Copyright 2010 Anupam Kumar

Extensive Problem Solving: 

Confidence Attitude Choice Criteria Brand Comprehension Intention Significative Quality Price Distinctive Service Availability Symbolic Quality Price Distinctive Service Availability Social Family Reference Group Social Class Overt Search Stimulus Ambiguity Attention Perceptual Bias Attention Brand Comprehension Attitude Intention Purchase 21 © Copyright 2010 Anupam Kumar Extensive Problem Solving

Routinized Response Behaviour: 

Confidence Attitude Motive Choice Criteria Brand Comprehension Intention Significative Quality Price Distinctive Service Availability Symbolic Quality Price Distinctive Service Availability Social Family Reference Group Social Class Satisfaction Stimulus Ambiguity Attention Perceptual Bias Attention Brand Comprehension Attitude Intention Purchase 28/10/2010 22 - Anupam Kumar Routinized Response Behaviour 22 © Copyright 2010 Anupam Kumar

Limited Problem Solving: 

Confidence Attitude Motive Choice Criteria Brand Comprehension Intention Significative Quality Price Distinctive Service Availability Symbolic Quality Price Distinctive Service Availability Social Family Reference Group Social Class Satisfaction Overt Search Stimulus Ambiguity Attention Perceptual Bias Attention Brand Comprehension Attitude Intention Purchase 28/10/2010 23 - Anupam Kumar Limited Problem Solving 23 © Copyright 2010 Anupam Kumar

Howard Sheth Model: 

Howard Sheth Model Exogenous Variables These do not properly fall within the Howard Sheth model The Exogenous Variable include: Importance of purchase Personality variables Social class Culture Organization Time Pressure Financial Status 24 © Copyright 2010 Anupam Kumar

Criticism to Howard Sheth Model: 

Criticism to Howard Sheth Model The Howard Sheth has only been partially tested. It does not explain the non- systematic behaviour. The Howard Sheth does recognizes the exogenous factors but explains little on the same. © Copyright 2010 Anupam Kumar 25

Bibliography: 

© Copyright 2010 Anupam Kumar 26 Bibliography Lindquist, Jay D. and Sirgy, M Joseph. Consumer Behaviour . New Delhi: Cenage Learning India Private Limited, 2009. Hawkins, Del I., Best, Roger J., Coney, Kenneth A. and Mookerjee, Amit. Consumer Behaviour: Building Marketing Strategy . Ninth Edition New Delhi: Tata McGraw-Hill Publishing Company Limited, 2007. Schiffman, Leon G. and Kanuk, Leslie L. Consumer Behaviour . Ninth Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Loudon, David L. and Della Britta, Albert J. Consumer Behaviour . Fourth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited, 2002. Assael, Henry. Consumer Behaviour: A Strategic Approach . New Delhi: Biztantra, An Imprint of Dreamtech Press. By arrangement with Houghton Mifflin Co., USA, 2009. Khan, Martin. Consumer Behaviour . Second Edition. New Delhi: New Age International (P) Limited, 2004. Nair, Suja R. Consumer Behaviour in Indian Perspective . Mumbai: Himalya Publishing House, 2007. Kumar, S Ramesh. Consumer Behaviour and Branding : Concepts Reading and Cases. Noida: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Gupta, S.L. and Pal Sumitra. Consumer Behaviour: An Indian Perspective . New Delhi: Sultan Chand & Sons, 2001. Datta, Debraj and Datta Mahua. Consumer Behaviour & Advertising Management . Delhi: Vrinda Publications (P) Ltd., 2009.

Click for Other Related Topics…: 

Click for Other Related Topics… Motivation Learning Personality Attitude Perception Consumer Satisfaction Evaluation Post Purchase Behaviour Consumerism in India Model of Consumer Behaviour Economic Model of Consumer Behaviour Psychoanalytical Model of Consumer Behaviour Sociological Model of Consumer Behaviour Nicosia Model of Consumer Behaviour Howard Sheth Model of Consumer Behaviour © Copyright 2010 Anupam Kumar 27

For further details / comments: 

© Copyright 2010 Anupam Kumar 28 For further details / comments Contact: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com