To achieve success in the modern marketing, the marketing manager has to study consumer behavior because he can create, maintain and increase the demand for his companies’ products only when he understand the feelings, desires, and buying motives of his consumers. There are four traditional models:
- Economic model.
- Learning model.
- Psychoanalytic model.
- Sociological model.
Economic model of consumer behavior
In this model, consumers follow the principle of maximum usefulness based on the law of diminishing marginal utility. The consumer wants to spend the minimum amount for feat possible his gains.
Economic model is based on:
- Price effect: Lesser the price of the product more will be the quantity purchased.
- Substitution effect: Lesser the price of the replacement product, lesser will be the utility of the original product purchase.
- Income effect: When more income is earned, or more money is available, more will be the quantity purchased.
According to behavioral scientists, it assumes the uniformity of the market, sameness of buyer behavior and centralizes only on the product or price. It disregards all the other aspects such as realization, motivation, learning, attitudes, personality and socio-cultural factors. It is important to have a multi-disciplinary approach, as human beings are composite entities and are affected by external and internal factors. Thus, price is not the only factor influencing decision-making and the economic models according to scientists have short comings.
Learning model of consumer behavior
This model is based on the idea that consumer behavior is governed by the need to satisfy basic and learned needs. Basic needs include food, clothing and shelter, while learned needs include fear and guilt. Thus, a consumer will have a tendency to buy things that will satisfy their needs and provide satisfaction. A hungry customer may pass up on buying a nice piece of jewelry to buy some food, but will later go back to purchase the jewelry once her hunger is satisfied.
Psychoanalytic model of consumer behavior
It follows the individual consumer has some intense motives that drive him to make definite buying decisions. The consumer has some unseen fears, hidden desires and internal longings (personal wishes). His buying action can be affected by appealing to these desires. The psychoanalytical theory is imputing to the work of noted psychologist Sigmund Freud. Freud launches personality as a motivating factor in human behavior. In this theory, the mental structure of a every person consists of three elements, namely: ID, super ego and ego.
- The id (or the instinctive or pleasure seeking element): It is the group of inborn desires that a man is born with. It includes the hostile, ruinous and sexual drives of man.
- The superego (or the internal filter): It presents to the individual the behavioral assumption of society.
- The ego (or the control device): It conserves stability between the id and the superego. The theory trusts that a person is not able to satisfy all his needs within the frontier of the society.
These unsatisfied needs generate tensions in an individual which have to be taken care of.
Sociological model of consumer behavior
In the sociological model, the buying decisions of single consumer are not totally based on usefulness; he has a desire to follow the environment. In sociological model the two necessary models are Nicosia model and Howard Sheth. These Model belong to the category of systems model, where a human being is examine as a system with stimuli as the input to the system and etiquette as the output of the system.