Consumer behaviour models help you understand how and why customers make decisions. By analysing these models, you can gain insights into factors like preferences, motivations, and buying patterns. This knowledge allows you to create customer-centric experiences tailored to individual needs, improving satisfaction and loyalty. The objective of using consumer behaviour models is to develop better marketing strategies and improve product offerings. 

By understanding consumer habits, you can make informed decisions about product development, pricing, and promotions, leading to stronger customer relationships and higher sales. Ultimately, these models enable you to create more personalised and effective strategies. So, let's get started!

What is a Consumer Behaviour Model?

Consumer behaviour models can be understood as frameworks that help you understand how customers make decisions about what to buy. It looks at factors like what influences people’s choices, their buying habits, and what motivates them to make a purchase. The purpose of these models is to give companies insights into customer preferences and behaviour so they can better meet their needs. By using consumer behaviour models, businesses can improve their marketing, develop better products, and create more personalised customer experiences, leading to greater satisfaction and loyalty.

Our real-time analytics provide instant insights into consumer behaviour, enabling businesses to optimise user journeys and drive growth. By tracking interactions, identifying pain points, and personalising experiences, real-time analytics helps convert better, increase engagement, and foster customer loyalty.

Importance of Consumer Behaviour Models

Customer behaviour models provide insights into customer preferences and decision-making, helping businesses tailor their strategies to better meet customer needs.

Here are five reasons why consumer behaviour models are important:

Improved Marketing:
Consumer behaviour models help businesses identify the preferences and buying habits of their target audience. This allows companies to create more personalised marketing strategies, ensuring that their messaging resonates with the right people. 

Better Product Development:
These models provide insights into what customers really want from products. By analysing consumer behaviour, you can develop products that align with customer needs and expectations. This reduces the risk of launching products that may fail in the market. 

Customer Retention:
When you understand your customer’s behaviour, you can create experiences that keep customers satisfied and coming back. By anticipating customer needs and preferences, you can offer tailored solutions that improve customer loyalty. 

Effective Pricing:
Consumer behaviour models help businesses determine how much customers are willing to pay for a product. By analysing purchasing patterns and price sensitivity, companies can set optimal price points that appeal to their audience. 

Enhanced Customer Experience:
Tailoring the customer experience based on consumer behaviour leads to higher satisfaction. Businesses can use these models to understand customer journeys, preferences, and pain points, allowing them to improve every interaction. 

Also read: Guide to Consumer Behavior in Marketing Strategies and Patterns 

Traditional Consumer Behaviour Models

First, let's explore traditional behaviour models:

1. Learning Model

The learning model focuses on how consumer behaviour is shaped by past experiences and repeated actions. It suggests that when people need something, they seek ways to satisfy that need based on previous experiences. Over time, habits form, and people are likely to repeat behaviours that have worked well for them before, especially when they receive positive outcomes.

How it can help you:

• Develop customer loyalty programs to encourage repeat purchases.
• Create positive experiences that reinforce customer behaviour.
• Use personalised recommendations based on past purchases to influence future buying decisions.
• Build brand trust by consistently meeting customer needs.

2. Economic Model

The economic model assumes that consumers make purchasing decisions based on rational thinking, primarily considering their budget. In this model, consumers evaluate products or services by comparing costs and benefits, choosing the one that offers the best value for their money while staying within their financial limits.

How it can help you:

• Offer competitive pricing or discount deals to appeal to cost-conscious buyers.
• Bundle products or services to increase perceived value.
• Highlight the cost-effectiveness and practical benefits of your products in marketing efforts.
• Target customers with promotions that fit within common budget ranges.

3. Psychoanalytical Model

The psychoanalytical model is based on the idea that subconscious motives and emotions influence consumer behaviour. This model suggests that many purchasing decisions are driven by deeper desires, such as the need for security, power, or social status. Consumers might not always be aware of these underlying motives, but they play a key role in shaping their choices.

How it can help you:

• Use emotional branding to create a deeper connection with consumers.
• Align product messaging with values such as luxury, success, or self-expression.
• Create marketing campaigns that appeal to the subconscious desires of your target audience.
• Use storytelling to evoke emotions and drive purchase decisions.

4. Sociological Model

The sociological model emphasises how social factors such as culture, reference groups, and social norms shape consumer behaviour. People’s choices are often influenced by the opinions and behaviours of others, including family, friends, and their broader social environment. This model shows that social acceptance and belonging play a significant role in decision-making.

How it can help you:

• Leverage social proof (testimonials, reviews) to influence consumer choices.
• Partner with influencers or brand ambassadors to appeal to reference groups.
• Create products or services that align with cultural trends and values.
• Develop campaigns that reflect the social norms and preferences of your target audience.

Contemporary Consumer Behaviour Models

Now, it's time to understand contemporary behaviour models:

5. Engel-Kollat-Blackwell (EKB) Model

The EKB model outlines a five-stage process that consumers go through when making decisions. The stages include need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. This model helps explain how consumers identify a need, gather information, weigh options, make a purchase, and reflect on their satisfaction afterward.

How it can help you:

• Identify touchpoints at each stage to engage customers effectively.
• Offer relevant information during the evaluation stage to influence decision-making.
• Provide post-purchase support to increase customer satisfaction and encourage repeat purchases.
• Improve product visibility and accessibility during the information search phase.

6. Black Box Model

The Black Box model suggests that consumer decisions are influenced by external stimuli (such as marketing messages, price, and promotions) and internal processes (like personal preferences and emotions). While businesses can control external factors, the internal processes that shape decision-making happen within the consumer's "black box," making them harder to predict.

How it can help you:

• Design marketing strategies that stimulate positive responses from consumers.
• Focus on emotional branding to influence internal decision-making.
• Create advertising that connects with consumer needs and desires.
• Analyze customer feedback to adjust external stimuli for better engagement.

7. Hawkins Stern Impulse Buying Model

The Hawkins Stern model focuses on impulse buying and categorizes it into four types: pure impulse buying (spontaneous purchases), reminder impulse buying (triggered by seeing an item), suggestion impulse buying (driven by marketing), and planned impulse buying (where buyers intend to buy on impulse). These purchases are usually triggered by external stimuli such as attractive product displays or discounts.

How it can help you:

• Design store layouts and product placements to encourage impulse buys.
• Use limited-time offers or discounts to trigger impulse purchases.
• Incorporate visually appealing packaging and promotional displays.
• Develop marketing messages that prompt spontaneous buying behavior.

8. Howard Sheth Model

The Howard Sheth model identifies three levels of consumer decision-making: extensive problem-solving (for unfamiliar products), limited problem-solving (for familiar but occasional purchases), and habitual decision-making (routine purchases). This model explains how decision-making varies based on product knowledge and buying frequency.

How it can help you:

• Provide detailed product information for new customers engaging in extensive decision-making.
• Offer discounts or loyalty programs to encourage habitual purchases.
• Tailor marketing messages based on whether customers are making extensive or habitual decisions.
• Build brand familiarity to move customers toward habitual buying behavior.

9. Nicosia Model

The Nicosia model highlights the interaction between a business's marketing efforts and consumer characteristics in shaping decision-making. It suggests that communication from businesses influences consumer attitudes, leading to exploration, purchase decisions, and post-purchase evaluation. The model divides the decision-making process into fields, where businesses and consumers interact.

How it can help you:

• Personalise marketing communication to match customer preferences and characteristics.
• Use targeted messaging to shape positive consumer attitudes toward your brand.
• Monitor customer feedback to improve post-purchase evaluations.
• Strengthen the brand-consumer relationship through effective communication strategies.

10. Webster and Wind Model

The Webster and Wind model is designed for understanding organisational buying behaviour, focusing on how businesses make complex purchase decisions. It considers factors such as company goals, procurement policies, and the influence of different decision-makers within the organisation. 

How it can help you:

• Develop tailored marketing strategies for clients based on organisational goals.
• Understand the roles of different decision-makers and target marketing efforts accordingly.
• Provide detailed product information to match procurement policies.
• Build long-term relationships with organisations by addressing their unique needs and concerns.

Also read: What is Behavioral Analytics? - Definitions, Types, and Examples

Stages of Consumer Behaviour Model

The stages of a consumer behaviour model explain the steps people take when deciding to buy something. These stages help businesses understand how to influence customers at each step of the decision-making process. Here’s a look at the five key stages:

1. Problem Recognition

In this stage, consumers realise they have a problem or need that must be addressed, whether it's a practical necessity (like running out of food) or a desire (such as wanting a new gadget). This recognition triggers the entire buying process, as the consumer starts looking for ways to solve or satisfy the need.

2. Information Search

Once a need is recognised, consumers start searching for information about products or services that can meet their needs. This could involve looking online, asking friends for recommendations, or visiting stores. At this stage, consumers gather as much relevant information as possible to make an informed decision.

3. Evaluation of Alternatives

In this stage, consumers compare different products or brands that might solve their problem. They weigh the pros and cons of each option based on factors like price, quality, and features. This comparison helps them narrow down their choices to find the best solution that fits their needs.

4. Purchase Decision

After evaluating alternatives, the consumer is ready to make a decision. At this point, they choose the product or service that best meets their needs and proceed with the purchase. Factors like product availability, discounts, or personal preferences can influence the final choice.

5. Post-purchase Evaluation

Once the purchase is made, consumers reflect on their experience and whether the product met their expectations. If they are satisfied, they may become loyal customers or recommend the product to others. If not, they may regret the purchase and avoid the brand in the future. Businesses aim to create positive post-purchase experiences to build loyalty.

Also read: What is Behavioral Data? Importance and Types

Conclusion

By understanding consumer behaviour models, you will be able to go in-depth into how customers make decisions and then product and marketing teams can develop effective strategies to meet consumer needs. This leads to increased satisfaction and loyalty. We are a 'Low Code' platform, and we can help you effectively apply these models with its various features, such as data-driven insights and personalised customer engagement tools. By using Nudge, you can gain a deeper understanding of your audience and make smarter decisions that drive growth. So, book a demo today and improve the overall customer experience.