Howard Sheth Model of consumer behaviour

 The Howard Sheth Model 

Howard and Sheth’s model on consumer behavior was 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.

This model suggests three levels of decision making –

1. 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.
2. 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.
3. 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 consists 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.

Conclusion

The Howard–Sheth Model provides a systematic and comprehensive explanation of consumer decision making. It highlights how consumers move from information search to habitual buying and how internal learning and external factors together shape purchasing behaviour. This model is especially useful for understanding complex buying decisions.

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Sandeep Ghatuary

Finance & Accounting blogger simplifying complex topics.

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