Page 184 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 9: Motivation and Perception

fit these requirements. As a result, there is a growing appreciations and utilisation of Notes
system dynamics and simulation in consumer behaviour models. These disciplines are
used for formulating, testing and refining the models.

Support of Analytic Techniques

Consumer behaviour models – invariably – deal with a multiplicity of variables. For coping
with this situation; current consumer behaviour models are using diverse analytical techniques.
Most of these techniques were available in the literatures of mathematics, statistics and operations
research. But, with the easy availability of sophisticated computing power, these techniques
have started playing much greater roles recently. Thus, for example, stepwise regression analysis,
correspondence analysis are very often used for identifying the salient variables and their
relationships out of the observed data: Factor analysis and multidimensional scaling techniques
are used for reducing data and drawing the essence from a large set of data. Very often consumers
evaluation of different attributes and their relative trade-offs are important. Conjoint analysis
has come as a handy tool for such purposes.

9.10 Some Recent Models

We shall now consider two of the recent models to illustrate the developments in consumer
behaviour modelling.

Nicosia’s Model of Consumer Decision Process

Figure 9.1: Abridged version of Nicosia Model of Consumer Decision Process

This model elaborates the decision making steps that the consumers adopt before buying goods
or services. It is written in the format of a detailed computer flow chart. For ease of understanding

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