Marketing Management & Research: A Study on Consumer Behaviour Models

This study focuses on the two models of consumer behaviour, the Marshallian economic model and Pavlovian learning model. The study discusses the differences between the two models and their effectiveness in predicting consumer behaviour. The study also highlights the implications of these models in marketing.

Running head: MARKETING MANAGEMENT & RESEARCH
Marketing Management & Research
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Introduction
As stated by East et al., (2016), the modern business organizations have become more
and more consumer oriented. The behaviour of the consumers is changing regularly so it is
essential for the organizations to evaluate the needs and wants of the consumers. However, the
initial focus of the study has to be on basic human behaviour as consumer behaviour is a subset
of the overall behaviour of human beings. Horner and Swarbrooke, (2016) defines consumer
buying behaviour is the process of deciding product, place, time, price and specification before
making a purchase decision.
On the other hand, Frederiks, Stenner and Hobman, (2015) defines consumer behaviour
as the behaviour where the consumer goes through different phases such as searching, buying,
using, examining and disposing of services, ideas and products. This definition can be
elaborated by stating that consumer behaviour is the study of evaluating the behaviour of the
consumers spending their resources on making purchase decisions. Consumers can be
distinguished in two types, one is organizational and other is personal consumer. Personal
consumers purchase the products for household purposes and organizational consumers purchase
products for their respective organizations. However, this study will strictly focus on the
personal consumers and their respective buying behaviours.
Consumer behaviour is one of the recent topics of discussion when compared to the other
aspect of marketing. As stated by Foxall, (2014), the concepts of consumer behaviour are
borrowed from scientific disciplines of different subjects such as sociology, psychology,
anthropology, economics and social psychology. The development of marketing concept
increased the significance of consumer behaviour in the modern theories of marketing.

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Marketing concept stated that it is essential for the organization to identify the needs and wants
of the consumers in order to support their marketing plan which should be based on the emerging
needs of the consumers. The market was focused on production in the initial phases of the 19th
century which led the orientation to be towards the production. However, with the advent of
marketing orientation, the concept of consumer behaviour was widely to gain competitive
advantage in the market. Frederiks, Stenner and Hobman, (2015) stated that the sales and profit
of any firm is dependent on the buying behaviour of the consumers. Therefore, different models
of human behaviour were developed to predict the buying behaviour of the consumers.
Different models of consumer buying behaviour
According to Siegel, (2016), identification of the different aspects of consumer
behaviour is quite tough as the consumers are influenced by varying factors. The human beings
are greatly affected by their psyche so purchase decision are driven by psyche of a person.
However, the modern scenario has changed where big data can be used to identify the pattern in
the buying behaviour and can be used to predict the possible behaviour of different consumers.
As stated by Parment, (2013), the models of consumer behaviour are perceived as
portrayal of incomplete human beings and these models are appropriate of different situations in
the market. The models of consumer behaviour provide knowledge about the different aspect of
purchasing decision. The four models of identifying the behaviour are Pavlovian learning model,
Marshallian economic Model, Veblenian social-psychological model and Freudian
psychoanalytical model. However, in this present study, the contrasting nature of Pavlovian
learning model and Marshallian economic Model.

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The Marshallian economic model
The Marshallian model states that the customers will buy the products that will provide
them with maximum amount of satisfaction based on the relative price of the products and
personal preferences. As stated by Boland, (2014), self-interest is the motivating factor for
defining the respective actions of human beings. On the other hand, Sunley and Martin, (2017)
states, that all actions taken by consumers are contemplated as they are taken by evaluating the
pain and pleasure of making each of the decisions. Alfred Marshall was the pioneer of this
economic model; he consolidated the neo classical and classical tradition which was aimed at
realism in economics. This examined the impact of change on a single variable by keeping the
other variables constant such as price. The assumptions made in such methods are simplified. In
order to reach the highest level of realism, the provisional assumptions are examined to identify
the consequences and made modifications to the assumptions. The modern utility theory has
been used to modify the assumptions and methods of the Marshallian theory. The theory states
that utility is maximized by evaluating the felicific impact of the purchases.
This theory is developed based on the economic aspect of the study but its implication in
marketing applications is path breaking. There are different points of views in analyzing the
rationale of behavioural science in identifying the value of the model. One of the views of this
model is that the model is tautological which means that it is neither false nor true (Thrift &
Amin, 2017). This model is not informative as it only portrays the behaviour of the buyer acting
in their self interest. Another view of the model provides the consumers with the logical norms
necessary to be rational. The inference drawn from this is that the model is a normative model

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rather than being a descriptive model. The consumers will not perform economic analysis for
their respective purchases and consumers are selective in choosing the economic theory.
Therefore, the consumers will not use the principles of economics in choosing between different
products having low cost. However, the consumers are expected to make an economic analysis
to make a choice of high price products such as a car and a house.
The next view suggest that complete description of consumer buying behaviour should
include economic factors as economic factor operates in smaller or greater extent in all the
sectors. The Marshallian model has proposed a few hypotheses which state that the sales of a
product will be greater if the price of the product is low (Cahuc, Carcillo & Zylberberg, 2014).
The second hypothesis states that if the price of the substitute product is less than the price of the
actual product then this will result in increase of the sales of the substitute product. The next
hypothesis states that if the product is not inferior to the other products in the market, the sales
will be higher considering the fact that the real income of the consumers are higher. The final
hypothesis states that with increase in cost of promotion, there will be significant increase in the
sales volumes.
The above-mentioned hypothesis describes the average effect of the economic factor on
the consumers and it has not made any attempt to classify all the individuals in order by
calculating the economic influence on the purchase decision (Bös, 2014). Therefore, it can be
seen from the theories of this model that the buying behaviour of the consumers cannot be
explained by the economic factor as there are variations in purchasing behaviour due to
contrasting situations and market conditions. Moreover, the fundamentals of the developing
brand preferences and product preferences are ignored in this theory. This model can be used for
evaluating the small portion of the psyche of the consumers.

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The Pavlovian learning model
This is a psychological theory which was developed by a Russian psychologist and then
named as the Pavlovian theory of learning. The initial experiment was conducted by ringing a
bell every time before providing the dog with the food (Dayan & Berridge, 2014). The outcome
of the experiment was that the Pavlov was able to induce salivation within the dog just by
ringing the bell without any food. Therefore, Pavlov was able to infer that the process of
association is responsible of developing learning and the majority of the human behaviour has
been similarly conditioned.
Similar experiments were carried out by other experimental psychologists which used
animals as a subject for the study. The experimental objective was exploration of different
phenomenon such as forgetting, ability to discriminate and learning. This led to the development
of the stimulus-response model in human behaviour which constitutes four central concepts such
as cue, namely drive, reinforcements and response (Craske et al., 2014). According to the
Pavlovian theory or it can be also called as classical conditioning; there is a deep connection
between a true reflex reaction and stimulus. The central concepts of the Pavlovian theory are
described below:
 Drive: In the learning model of Pavlov, the drive can also be represented as the motives
or needs. This implies that human are driven by strong stimuli and it is responsible for
activating actions within an individual. The psychologists have distinguished the different
types of drives and they are learned and primary psychological drives. The basic
individual factors are represented by the primary psychological drives. This will include

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factors such as thirst, hunger, pain, sex and cold. The learning factors are derived by
using social factors such as cooperation, acquisitiveness and fear.
 Cue: The model states that a drive is general and specific configuration of cues impels
the particular response in the study. The weaker stimuli within an individual and the
environment are known as Cue. This will determine the place, time and cause of the
response from the subject such an advertisement for Soft drink may stimulate a drive of
thirst within an individual. The response of the individual will not only depend on the
particular cue but will be affected by other cues depending upon the time of day and
availability of substitute products suitable for quenching thirst.
 Response: The configuration to the cues results in reaction known as response and it has
to be noted that same configuration of cues will not generate same drive or response
within a different individual. The degree of rewarding experience is the reason for
gaining same response from the same cues.
 Reinforcements: A response will be reinforced when the previous experience has been a
rewarding experience for the consumer. Therefore, it can be assumed that same sets of
response will be developed when cues having same configuration appears. However, this
is a learned habit and if it is not reinforced, then there may be chances of extinguishing
this habit. This is due to the fact that the strength of the habit decreases due to lack of
reinforcements.
However, there is basic difference between extinction and forgetting where learned associations
become weak due to non use and not due to the deficiency of the reinforcements.
The Pavlovian model cannot be considered as the complete representation of the
consumer behaviour. This is due to the fact that there is omission of perception, subconscious

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influences and interpersonal influences. This model contributes to marketing by providing valid
insights regarding advertising strategy and consumer behaviour. The model can be useful for the
marketer when they are introducing a new brand into a highly competitive sector. The
organizations will able to develop new attributes for the new brand by extinguishing the existing
brand habits (Rescorla, 2014). However, the major challenge that the organizations will face is
pursuing the consumers to try out the new brand by choosing between using weak and strong
cues. A strong cue will consist of providing sample products to the loyal consumers which is an
expensive option. However, it is the most effective and desired approach to target consumers that
are loyal to the organization. The reinforcement components in the model will have to be
acknowledged so that sufficient quality can be put into the brand to invoke positive experience.
Moreover, it is essential to evaluate the most effective cues used by the leading brand in the
global market.
Advertising strategy is the second area where the Pavlovian Model can be used to gain
insights and guidance. The model puts emphasis on using repetitive advertising strategy as single
exposure will prove to be a weak cue. This will be unable to arouse sufficient consciousness
within an individual to inspire their internal drive to make the purchase (Li & McNally, 2014).
There are two desirable effects to repetitive advertising where repetition is used to combat with
forgetting and providing reinforcements due to the selective exposure of the consumers to
advertisements after the product purchase. The model values provide guidance in marketing and
advertising by highlighting valid insights about the various driving factors for the consumers.
According to this theory, the organizations should identify the effective driving factors for the
consumers so that they can pursue to the consumers to make purchase.

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Contrast between two different models
As stated by Baumeister et al., (2017), the economic model and the learning model have
been developed based different principles and none of the models have been able to completely
describe the buying behaviour of the consumers. The economic model is based on the concept of
marginal utility where the consumer will buy a product having certain sum of money if the
product will yield maximum amount of benefit. On the other hand, the learning model is based
on the ability of the consumers to forget, learn and discriminate where the organization can
invoke a drive within them by using driving factors that will have different response on the
stimuli of the consumers.
Mandel et al., (2017) opined that economic model has examined and explained the
buying behaviour of the consumers form the economic perspective where the consumers are
judged based on their value seeking ability. Therefore, according to the economic model the
economic trends will have a deep impact on the buying behaviour of the consumers. Moreover,
the buying pattern of the consumers are affected by the surrounding environment. However, this
model has not taken into account the irrationality of the consumers. The consumers are not
rational all the time and that’s why the consumers do not always go for the products with the
maximum value. There are multiple occasions where the consumers defy the economic model
and its principles. The learning model comes into play at such conditions, the learning is a
psychological model which is based on the psyche of the consumers. Therefore, consumers can
be made to learn behaviours which will drive them to buy particular product (Rezvani, Jansson &
Bengtsson, 2017). Reinforcing the consumers with driving factors is an effective way of driving
the sales of an organization. However, this model is incomplete where learning is not the only
condition in the buying process. Therefore, the decision making of the consumers are other

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determinants. The model has taken into consideration other determinants such as personality,
perception, attitudes and group influences.
Therefore, both these models explained in the study are incomplete and none of them can
completely describe the buying behaviour of the consumers. These two models are contrasting
as one assumes that consumers are rational where the other model assumes that consumers learn
from themselves and others. Therefore, according to the economic model, the consumers should
be provided with value propositions. Moreover, the different promotional and sales schemes will
have a deep impact on the buying behaviour of the consumers based on this model (Lang &
Rettenmeier, 2017). On the contrary, the consumers will buy rewarding products and the
products should have positive reinforcements. Therefore, strategies like product demonstration,
free trails, sales and testing of the products will have a different impact on the buying behaviour
of the consumers. however, when we analyse the suggested strategies it can be seen that these
strategies have been used by different companies in different sectors. Therefore, it can be said
that the industry characteristics and the product specifications are also important factors in
deciding the accurate model to be used.
The marketing measures are used by different companies based on their strategic goal so
it can be said that these models are still very much effective. Therefore, there are companies that
choose competitive pricing as a strategy to gain competitive advantage in the market. These
strategies are effectively used by the companies in a saturated market for example, the
companies in the United Kingdom retail industry. The companies in the retail sector in the
United Kingdom compete by developing competitive pricing due to the intense competition and
the consumers have extremely sensitive to price. Therefore, the organizations use sales
promotions and discounts to increase their short-term sales. However, this strategy cannot be

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used on along term basis as it is impossible for companies to provide discounts and sales
throughout the year. On the other hand, the psychological model is more suitable for the
companies in the automobile industry. This is because of the fact that the companies focus on the
usage of the product and the level of satisfaction of the consumers. This can also be applicable to
the fashion industry where testing and trails are common phenomenon for the consumers. This is
because of the reinforcements can be easily done by providing trails of the latest products. These
will enable to create a learning with the consumers. Therefore, this enable to influence the
driving factors within the customers.
Therefore, the companies trying to gain loyal consumers use price sensitive strategies and
develop value propositions among consumers that are more rational. On the other hand, the
companies will be focusing on personal experience to consumers in such markets where the
satisfaction level of the consumers are the main factor for retaining the consumers. In the context
of the modern business scenario, with the advent of big data and statistical tools it is easier to
identify the behaviour of the consumers. The trends in the buying behaviour of the consumers
can be used by the companies to develop effective strategy based on the model they have
developed. Therefore, differentiating between rational consumers and the consumers looking for
personal experience will have to be evaluated and identified in order to maintain sustainability
and gain competitive advantage in the market.
Conclusion
Thus, it can be concluded from the report that the two models of consumer behaviour are
incomplete models but they have a practical implication in marketing where the companies in the
market can analyse the consumers to develop effective marketing strategies which will be able to

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grab the attention of the majority of the target consumers in the market. Moreover, economic
model focuses on utility while the learning model focuses on reinforcements. However, both
these models are significantly important if used effectively by the companies.

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