Things to learn in this chapter:
• Engel, Blackwell and Miniard model.
• J.N.Sheth model of industrial behaviour.
• Nicosia model.
Engel, Blackwell and Miniard model
The core of the EBM model is a decision process, which is augmented with inputs from information processing and other influencing factors. The model has four distinctive sections, namely Input, Information Processing, Decision Process and Variables influencing decision process.
Information from marketing and non-marketing sources are fed into the information processing section of the model. The model also suggests additional information to be collected is available from memory or when post-purchase dissonance occurs.
Before information can be used in the rest of the model, the consumer will first be exposed to the information processing. That is, the consumer must get exposed to the information, attend to it, comprehend and understand it, accept it and finally maintain it in the memory. Any selective attention or exposure mechanisms that may occur in post purchase dissonance would operate at this stage.
Need Recognition: This acknowledges the fact that there exists a problem. That is, the individual is aware that there exists a need to be satisfied.
Search: When enough information is available in memory to take a decision, then only internal search will be required. If internal information is limited, an external search for information is undertaken.
Alternative Evaluation: An evaluation of the alternatives found during the search is undertaken. It is observed from the model that the attitudes and beliefs are taken into account during this process.
Purchase: A purchase is made on the chosen alternative.
Outcomes: The outcome can be either positive or negative depending on whether the purchase satisfies the original perceived need. Dissatisfaction can lead to post-purchase dissonance.
Variables Influencing Decision Process
This section considers the individual, social, and situational factors that influence the decision processes.
The EBM model is very flexible and more coherent model of consumer behaviour. It also includes human processes like memory, information processing and considers both the positive and negative purchase outcomes. However the model has been criticized on two aspects. Firstly, on the somewhat vague definition of the role of the influencing variables and secondly, it is felt that the separation of information search and alternative evaluation is somewhat artificial. Engel, Blackwell and Miniard (EBM) Model:
The Sheth Model of Organizational Buying
This model concentrates on the purchasing process and highlights the importance of four main factors:
1. The expectations of the individuals making up the Decision Making Unit (DMU). These elements are represented by the block in the diagram below marked as (1). According to this model, every person in the DMU brings with them, their own unique set of attitudes and orientations. The individual background like education, role orientation, and life style will condition their expectations. The following will also influence their expectations: • The various sources of information like sales people, exhibitions and trade shows, direct mail, press releases etc. • Perceptual distortion (1d in block diagram).
• The person’s previous experience (1e in block diagram). • The active search (1c in block diagram).
2. The characteristics of both the product and the organization. The model refers to the actual buying process and contends that it is affected by the following: • The product specific factors (2a) like:
o Time pressure: Group decision will take a longer time as compared to individual ones. o Perceived risk: More the risk, more the members involved in DMU. o Type of purchase: When the type of problem...