Introduction of Howard Sheth Model
Howard and Sheth’s model on consumer behavior were introduced in 1969. This model makes it simple for customers to make a decision. There are three stages in this model. The first stage is the extensive problem-solving stage, the second stage is the limited problem solving and the third stage is the habitual response behavior.
- At the first stage of the Howard's and Sheth’s model the customers do not have much information about the brand, at this stage customers will carry out research to find out about the brand.
- At the second stage customers have some information at the product or brand.
- At the final stage of the model, the consumer will have enough information on the product or brand to make a fair decision on buying the product or not. It is also known as electric / multivariable models of consumer behavior.
The Howard Sheth model of buying behavior attempts to explain the complexity of the consumer decision making process in case of incomplete information.
Definition of Howard Sheth Model
The Howard Sheth Model is an approach for analyzing the combined impact of the social, psychological and marketing factors on the buying behaviour or preference on the buying behaviour or preference of the consumers and the industrial buyers into a logical order of information processing.
This model suggests three levels of decision making
- Extensive problem solving –
- At this level the consumer does not have any basic information or knowledge about the brand and he does not have any preference for any product.
- In this situation, the consumer will seek information about all the different brands in the market before purchasing.
- Limited problem solving –
- This situation exists for consumers who have little knowledge about the market, or partial knowledge about what they want to purchase.
- In order to arrive at a brand preference some comparative brand information is sought.
- Habitual response behavior –
- In this level the consumer knows very well about the different brands and he can differentiate between characteristics of each product.
- According to the Howard Sheth model there are four major sets of variables - Inputs, Perceptual and learning constructs, Outputs, Exogenous (external) variables.
- Inputs - this input variable consist of three distinct types of information sources in the consumer's environment -Significative, Symbolic, Consumer’s social environment
- Perceptual and learning construct - It deals with the psychological variables involved when the consumer is making a decision. - Consumer goals, information about brands, criteria for evaluation alternatives, preference and buying intentions are all included.
- Output - The output are the results of the perceptual and learning variables and how the consumers will response to these variables.
- Exogenous (external) variables - Some relevant exogenous variable include - Consumer personality traits, Religion, Time pressure.
Variable of Howard Sheth Model
Beginning with the stage of extensive problem solving, the buyer slowly converts into a regular customer of the organization at the routinized response behaviour level. This whole process of buyer’s decision-making function on four pillars of this model or the four essential elements of this model. These variables are elaborated below:
Input Variables
The stimulus inputs refer to the idea or information clue about the brand and its product in terms of product quality, distinctiveness, price, service offered and availability.
- Significant stimuli – The significant stimuli are the physical traits of the product and the brand. It includes the product’s price, quality, availability, distinctive.
- Symbolic stimuli – the marketing strategies like advertisement and publicity creates a psychological impact on the buyer’s perception of a product’s rhetorical and visible features.
- Social stimuli – The social stimuli comprise of the various environment factors which are considered as a source of information for the buyers, it includes family social class and reference groups.
Hypothetical Constructs
- Perceptual construct – These components define the consumer’s procurement and perception of the information provided at the input stage. It is an essential element since it drives the buyers brand selection and purchase which includes –
- Sensitivity to Information – the buyer’s level of understanding or openness towards the information received by him or her.
- Perceptual Bias – On the grounds of individual perception of each brand, the buyer is partial towards a particular brand.
- Search for information – The buyer also seeks for more information to ensure the right decision making.
Learning Construct
The learning constructs define the buyer knowledge opinion, attitude and end decision on product or brand selection. Following are the various learning constructs of a buyer
- Motive – The specific goal or purpose for which the product purchase is carried out.
- Choice Criteria – The set of principles or benchmarks defined for brand product selection.
- Brand Comprehension – The information about the product or brand pertained by the buyer.
- Attitude – The buyer’s perspective and willingness to purchase a product of a particular brand defines his or her attitude.
- Confidence – The trust or faith of the buyer in a specific brand and its products builds his or her confidence.
- Intention – The buyer’s purchase motive, preference criteria, brand comprehension, consumer attitude and confidence, results in the selection of a particular brand.
- Satisfaction – After purchase the buyer evaluates his or her level contentment find out whether the product has fulfilled the expectation or not.
Output Variable
The output or as we say, the result of the buyer’s decision making can be seen in the form of his or her response towards the input variables.
- Attention – The buyer’s level of concentration and alertness with which he or she understands the information provided is termed as attention.
- Brand comprehension – The awareness of the buyer regarding a particular brand and its products is known as brand comprehension.
- Attitude – The Buyer’s evaluation of a brand in terms of individual likes and dislike, determines his or her behaviour, interest and awareness towards it.
- Intention – The aim or objective of the buyer for purchasing a product can be seen as the buying intention.
- Purchase Behaviour – All the above elements result in the actual purchase of a product by the buyer.
Exogenous Variable
These are certain other external factors which influence the buying behaviour of an individual or a firm by hampering the product purchase of a preferred brand. The exogenous variables are the environment forces or components of this model. These are as follows –
- Importance of purchase
- Personality variables
- Social class
- Culture
- Organization
- Time pressure
- Financial status
Conclusion
The Howard Sheth Model majorly emphasizes repetitive behaviour of the consumers or industrial buyers. This is an empirical approach towards understanding the buyer’s mindset while purchasing a product or service. It has been intensively applied and tested to check its viability. Still, the model lacks reliability due to its dependency on the hypothetical constructs, which are challenging to be pragmatically examined.
