Page 185 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes the model can be simplified by grouping together its various elements into fields and subfields.
(Figure 9.1). Various components of the model are connected through direct as well as feed back
loops. Thus, the marketing organisation affects the target customers. The customers, in turn,
through the effects of marketers action affect the next decisions of the marketer himself. This
process goes on. The main fields and subfields of the model are as following:
(i) Marketer’s Communication affecting consumers attitude: Here the marketing
communications include not only mass media and personal communications but products,
price and even distribution aspects, too. The exposure of these attributes affect consumer’s
attitudes as well as perceptions. These effects on consumers depend upon his personal
characteristics (like values, personality and cumulative experiences). After processing the
inputs from marketer, the consumer forms his attitudes as the inputs for the next field.
(ii) Consumer’s search and evaluation: In this step consumer seeks more information and
evaluates the relative merits of competing products’ attributes.
(iii) Purchase action: This is the field 3 of the Nicosia model. Here, after getting motivated to
buy the brand, the customer actually shops for the product. The choice of actual retailer
does also take place here.
(iv) Consumption experience and feedback: After purchasing the product, the experience with
its consumption can affect the consumers in many ways. The negative experience may
block his future purchase and lower his attitude and evaluations of the product. The
positive experience may motivate him further to be loyal to the product. In any case, the
field provides significant feedback to the marketer. With this feedback, the marketer can
suitably modify the next cycle’s marketing inputs.
Nicosia’s model may appear to be simple and obvious at the first glance. But its value lies
in the integration of the body of knowledge in the area of consumer behaviour existing
till its time of formulation.

Task In a social gathering you had a chance to taste liquor for the first time in your life
and enjoyed it to the maximum. Describe the impact of the experience and the attitude
Rewards liquor.

9.11 Bettman’s Information Processing Model of Consumer Choice

In this model the consumer is seen in the center of a host of information processing activities.
The consumer is the recipient of a large amount of information from the marketer, competitors
and rest of the environment. He has his own database built over time from his experiences,
personality and set of values. The model believes that the consumers use certain simplifying
strategies.
This model is also built around several flowcharts. (Figure 9.2). These flowcharts describe the
components and interconnections among themselves that are involved in the decision process.
The main components of the model are:

(i) Processing Capacity: Each individual has a limited capacity to process information. This
capacity can vary across individuals to some extent. But, its limits across all individuals
are severally restrictive. Consumers try to bypass these limits by ignoring certain
information, priortising information in use or using rules of thumb.

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