Ao= ∑=biei
i=1
• Macroeconomics
• Microeconomics
4. Traditional models of consumer behaviour
c s
i
om
o n
e c Focus: The act of purchasing
ro
ac 1. Microeconomics
M
4.1. Microeconomics (from Loudon and Della Bitta, 1993)
• Assumptions made:
– Consumers wants and needs are unlimited and unquenchable
– Consumers allocate their resources to maximise levels of
satisfaction (MU1/P1 =MU2/P2 =… MUn/Pn)
– Consumers have perfect knowledge
– The additional satisfaction of a unit that is bought after the first
purchase will be less than the first purchase’s marginal
satisfaction
– Price is key
What are the limitations of this approach?
– Consumers rational
4.2. Macroeconomics (from Loudon and Della Bitta, 1993)
Actual
Psychological Consumer Economic
economic
process sentiment behaviour
conditions
Is this you? Do
you know
anybody who
thinks like this?
5. Contemporary Models
Sub-field
Sub-fieldtwo:
two:
Sub-field
Sub-fieldone:
one: MESSAGE Consumer’s
Firm’s attributes Consumer’s
Firm’s attributes EXPOSURE
attributes ATTITUDE
attributes
(pre-dispositions)
(pre-dispositions)
Search
Search
Evaluation
Evaluation
EXPERIENCE
MOTIVATION
FEEDBACK
Consumption
Consumption
Field Four:
Decision
Decision
The feedback
PURCHASING
BEHAVIOUR Field Three: The act of purchase
Could this model help an organisation in
any of its activities?
5.1.1. Limitations
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)
Learning Constructs
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)
• Variables in the model have not been clearly defined (Rau and
Samiee, 1981)