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Economic model
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Psychological model
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Sociocultural model
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Cognitive model
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Behavioral model
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Here’s what else to consider
Consumer behavior models are frameworks that help marketers understand how and why customers make decisions. They can help identify the factors that influence consumer preferences, motivations, attitudes, and behaviors. However, not all models are equally useful or applicable in different contexts. In this article, we will explore some of the advantages and disadvantages of using different consumer behavior models.
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- khodayar A. PhD in marketing | University professor | Teaching marketing and sales | Marketing specialist | Sales specialist |…
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- Ankesh Saxena 22X Top Voices | Conversationalist | Podcaster | Consumer Insights | Driving Global Growth | Market Research | Personal…
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1 Economic model
The economic model assumes that consumers are rational and seek to maximize their utility or satisfaction from their purchases. It considers factors such as price, quality, income, and availability of alternatives. The advantage of this model is that it is simple and quantitative, and can be used to predict demand and elasticity. The disadvantage is that it ignores the psychological, social, and emotional aspects of consumer behavior, and may not account for changing preferences or irrational choices.
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- khodayar A. PhD in marketing | University professor | Teaching marketing and sales | Marketing specialist | Sales specialist | Marketing specialist in social networks | LinkedIn Advertising Campaign Manager |
The advantages of using the consumer behavior model is that with these different consumer behavior models, consumer behavior can be better identified and marketing plans can be prepared and adjusted for each of these models.The disadvantages of using the consumer behavior model is that it only limits us to these models, and due to the passage of time, it may prevent us from researching that other models of consumer behavior can exist.
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- Ankesh Saxena 22X Top Voices | Conversationalist | Podcaster | Consumer Insights | Driving Global Growth | Market Research | Personal Branding | ESOMAR, MRSI | 6K+
Advantages of consumer behavior models include providing frameworks for understanding and predicting consumer actions, aiding in market segmentation and targeting, and guiding marketing strategies. However, disadvantages may include oversimplification of complex behaviors, lack of flexibility to account for individual differences, and reliance on assumptions that may not always hold true. Additionally, some models may become outdated as consumer behavior evolves, requiring constant adaptation to remain relevant.
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Traditional Economic Models:Advantages:Based on rational decision-making assumptions, which can provide insights into consumer choices based on utility maximization.Quantifiable and often easy to apply in mathematical models, making them suitable for certain types of analysis.Disadvantages:May oversimplify human behavior by assuming that consumers always make rational decisions based on perfect information.Fail to account for emotional, social, and psychological factors that influence consumer choices.
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Let me say loudly, that no single model offers a complete understanding - rather, each answers specific consumer questions by simplifying assumptions while combining selected models compensates for limitations. > TRA/TPB: A Theory of Reasoned Action and Planned BehaviorAdvantages: Helps predict technology acceptance and likelihood of purchase based on attitudes, intentions, and behaviour.Disadvantages: Can overstate rationality in judgments as it does not explain emotional, habitual, and impulse behaviours well.> TAM (Technology Acceptance Model)Advantages: Provides a statistically validated explanation for technology adoption based on useability and usefulness.Disadvantages: Most technologies focus on their practical utility.
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- Syed Sarmad Ali Marketing Consultant | Consulted 100+ Entities Globally
Advantages: Consumer behavior models help marketers understand consumer decision-making, segment markets effectively for targeted strategies, predict consumer actions, uncover deep-seated motivations, and offer a holistic view of consumer interactions with products/services.Disadvantages: These models often oversimplify the complexities of human behavior, may not account for cultural variations, sometimes assume rational decision-making which is not always the case, can become outdated as consumer preferences change, and may be too complex for practical implementation without specialized knowledge.
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2 Psychological model
The psychological model focuses on the internal processes that affect consumer behavior, such as perception, learning, memory, motivation, personality, and attitudes. It draws on theories from psychology and sociology to explain how consumers form and change their beliefs, opinions, and preferences. The advantage of this model is that it can capture the complexity and diversity of consumer behavior, and can help design persuasive and customized marketing strategies. The disadvantage is that it is difficult to measure and generalize, and may not reflect the external influences or situational factors that affect consumer behavior.
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sychological Models (e.g., Maslow's Hierarchy of Needs, Freudian Theory):Advantages:Offer insights into the underlying psychological motivations that drive consumer behavior.Provide a framework for understanding complex human needs, desires, and motivations beyond economic factors.Disadvantages:Lack empirical evidence and may be criticized for being overly subjective or speculative.Difficult to quantify and apply in a systematic manner, limiting their practical utility in certain research contexts.
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- Kiran B Nambiar Operations | Market Research | Ex-Runaya | IIMN'24 | NSIT'20
Brands utilize the psychological model to build strong connections and maintain brand recall. For example, Amul's consistent use of the Amul girl establishes trust in the dairy market. Similarly, Surf Excel's "Daag Achhe Hain" campaign encourages embracing messiness for bonding, while Boldcare's #TakeBoldCareOfHer tackles sexual health taboos, resonating emotionally with consumers. These cases demonstrate effective use of psychological insights to shape consumer behavior.
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3 Sociocultural model
The sociocultural model emphasizes the role of social and cultural factors in shaping consumer behavior, such as family, friends, groups, norms, values, and traditions. It examines how consumers are influenced by the people around them, and how they express their identity and status through their consumption choices. The advantage of this model is that it can explain the variations and trends in consumer behavior across different contexts and segments, and can help create relevant and appealing marketing messages. The disadvantage is that it may overlook the individual differences and personal factors that affect consumer behavior, and may not account for the dynamic and evolving nature of culture and society.
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For impactful marketing that's inclusive and respectful, it's key to merge sociocultural insights with individual psychology, whilst staying alert to evolving cultural trends. This balance helps craft strategies with broad appeal yet personal touch: ✅ Deep understanding of consumer segments - allowing marketers to tailor their messages more effectively.✅ Enhanced brand relevance - consumers tend to favour brands that reflect their social identity and cultural values.❌ Risk of stereotyping - The thin line between generalisation and oversimplification can alienate non-conforming individuals.❌ Individual differences are sidelined - Tends to ignore the wide variation in personal motivations and decisions within cultural groups.
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4 Cognitive model
The cognitive model views consumers as problem-solvers who actively seek and process information to make decisions. It considers factors such as awareness, knowledge, involvement, evaluation, and choice. It also recognizes that consumers may have different levels of cognitive effort and use different decision rules depending on the type and importance of the purchase. The advantage of this model is that it can explain the stages and steps of consumer decision making, and can help design effective and informative marketing communications. The disadvantage is that it may simplify or overestimate the rationality and consistency of consumer behavior, and may not consider the emotional and intuitive aspects of consumption.
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5 Behavioral model
The behavioral model focuses on the observable actions and responses of consumers, rather than their internal states or processes. It analyzes how consumers react to stimuli such as product features, prices, promotions, and locations. It also explores how consumers learn from their past experiences and repeat or modify their behavior accordingly. The advantage of this model is that it is empirical and objective, and can be used to test and measure the impact of marketing stimuli on consumer behavior. The disadvantage is that it may ignore the underlying reasons and motivations of consumer behavior, and may not capture the diversity and complexity of consumer preferences and attitudes.
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- Kiran B Nambiar Operations | Market Research | Ex-Runaya | IIMN'24 | NSIT'20
The behavioral model is a crucial tool for brands to capture consumer interest. For instance, Zomato's "Gold" subscription offers perks like free delivery and discounts, appealing to customers seeking convenience and savings. Conversely, Myntra's "Style Match" feature suggests clothing based on user history, directing them to items aligned with their preferences, showcasing how brands use behavioral insights to engage customers effectively.
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6 Here’s what else to consider
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Ultimately, the choice of consumer behavior model depends on the research objectives, the specific context of the study, and the level of detail and complexity required to understand consumer motivations and decision-making processes effectively. Integrating multiple models or approaches may offer the most comprehensive insights into consumer behavior in diverse settings.
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