Howard Sheth model of consumer behaviour

Howard-Sheth model is one of models that represent consumer behaviour on the market. It attempts to explain the rationality of choice of the product by the consumer under conditions of incomplete information and reduced processing capability. It analyses the external symptoms of behaviour, reactions and thought processes that cannot be subject to direct observation.

Developed by John Howard and Jagdish Sheth in the 1960s and 1970s, the model suggests that consumer behavior is influenced by both internal and external factors, and that these factors interact to influence the consumer's decision-making process. The model consists of several stages, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. The model also suggests that consumer behavior is influenced by cognitive, affective, and behavioral factors, and that consumer behavior is dynamic and changes over time. The Howard-Sheth model is often used in marketing research and consumer behavior studies to understand consumer decision-making process.

Howard and Sheth model of consumer behaviour variables

Howard-Sheth model (fig. 1) is based on the assumption that the consumer behaves rationally during purchase, process is repeatable and is result of incentives which have their source in the environment (input variables). It consists of four main groups of variables:

I. Input variables, i.e. stimuli arising from the marketing activities and social environment of the consumer. Include three different types of stimuli, which are:

• significant incentives - physical characteristics and the attributes of a product, such as price, quality, originality and accessibility, brand characteristics,
• symbolic incentives - verbal or visual characteristics of the product, form of product perceived by buyer/customer, effect of advertising and promotion messages used by seller,
• social stimuli - whose source is the social consumer environment, family, reference groups, and society in genertal.

Fig. 1. Simplified Howard-Sheth model (adapted from Farley, Ring, 1970, p. 428).

II. Hypothetical constructs, including the psychological variables influencing consumer behaviour during the decision-making process. It is regarded by the authors as abstract, not defined and not intended directly. They distinguished two main constructs:

• perceptual constructs - describe obtaining and processing information, attention to stimulus, sensitivity to messages, receptivity, blocking information, prejudice, etc.,
• learning constructs - how buyer forms attitudes, opinions, and knowledge influencing his buying decisions, evaluation after purchase, brand comprehension, etc.

III. Output variables: purchase intention, attitude, brand perception and attention. They are noticeable effects of internal processes, for example: decision to implement the purchase, disclosure of customer view and interest, as well as the declaration of other activities. The most important output variable from the point of view of marketing is actual purchase, because it involves carrying out activity based on consumer preferences. Hierarchy of output variables include:

• attention - scope of information accepted after exposing buyer to stimulus,
• comprehension - amount of information actually processed and stored in buyer mind,
• cognition - forming attitude towards products,
• intention - to buy or not to buy particular product,
• purchase behaviour.

IV. External variables that have not been presented in the Howard and Sheth model and are not direct part of the decision-making process, however, have a significant impact on consumer decisions and are used in marketing activities as a criterion for segmentation. These include such variables as: value of purchase for the buyer, the character traits of the consumer, membership of a social group, the financial status of a consumer, the pressure of time.

Applications of Howard Sheth model of consumer behaviour

The Howard Sheth model of consumer behavior can be applied in several ways to better understand consumer decision-making and to inform marketing strategies.

• Market research: The model can be used as a framework for conducting consumer research studies to understand how consumers make purchasing decisions. This can help identify key factors that influence consumer behavior and inform marketing strategies.
• Product development: The model can be used to understand consumer needs and preferences, which can inform product development decisions. For example, understanding consumer information search behavior can help inform the development of marketing materials and packaging.
• Advertising and promotion: The model can be used to design advertising and promotional campaigns that are more effective in reaching and influencing consumers at different stages of the decision-making process.
• Sales and Distribution: Understanding consumer evaluation of alternatives and purchase decision can help firms optimize sales and distribution channels.
• Service and after-sales support: Understanding post-purchase evaluation can help firms design effective service and after-sales support.

Overall, the Howard Sheth model can be useful for businesses looking to better understand consumer behavior and to develop more effective marketing strategies.

Howard Sheth model example of use

One example of the use of the Howard Sheth model of consumer behavior is in the automotive industry. A car manufacturer may use the model to better understand how consumers make purchasing decisions when buying a new car.

• Problem recognition: The car manufacturer may conduct research to understand what factors trigger consumers to start thinking about buying a new car (e.g. current car is too old or unreliable, need a bigger car for a growing family).
• Information search: The car manufacturer may study consumer behavior during the information search stage to understand how consumers gather information about different car models and brands (e.g. online research, visiting car dealerships, talking to friends and family).
• Evaluation of alternatives: The car manufacturer may study consumer behavior during the evaluation of alternatives stage to understand how consumers compare different car models and make decisions about which one to buy (e.g. fuel economy, safety features, price).
• Purchase decision: The car manufacturer may study consumer behavior during the purchase decision stage to understand what factors influence the consumer's final decision (e.g. financing options, trade-in values, warranties).
• Post-purchase evaluation: The car manufacturer may conduct research to understand consumer satisfaction with their purchase and what factors influence their likelihood of repurchasing or recommending the brand to others.

By using the Howard Sheth model, the car manufacturer can better understand consumer behavior and use this information to inform product development, advertising and promotion, sales and distribution, and after-sales support strategies.

Howard Sheth model limitations

The Howard Sheth model of consumer behavior is a useful theoretical framework for understanding consumer decision-making, but it has some limitations:

• Simplification of reality: The model simplifies the complexity of consumer behavior, which may not fully capture the nuances and variations of consumer decision-making.
• Linearity: The model presents consumer decision-making as a linear process, but in reality, consumer behavior can be more cyclical, with consumers moving back and forth between different stages.
• Assumes consumer rationality: The model assumes that consumers make decisions based on rational evaluation of alternatives, but in reality, consumer decisions can be influenced by emotional, social, and psychological factors.
• Limited to consumer behavior: The model is limited to consumer behavior, and does not take into account the influence of other stakeholders, such as firms and intermediaries.
• Limited to Micro-level perspective: The model is limited to micro-level perspective, and does not take into account the macro-level factors that influence consumer behavior such as culture, society, and technology.
• Limited to western culture: The model is based on western culture and may not be as relevant to other cultures.

Despite these limitations, the Howard Sheth model is still a valuable tool for understanding consumer decision-making and can be used in conjunction with other models and frameworks to provide a more comprehensive understanding of consumer behavior.

See also:

• Factors affecting demand
• Nicosia model of consumer behaviour
• AIDA model

Howard Sheth model of consumer behaviour — recommended articles

Nicosia model — EBK model — Marketing principles — Bettman model — Hierarchy of effects model — Customer equity — Consumer buying behaviour — Product structure — Factors influencing consumer behaviour

References

• Evans, M., Jamal, A., & Foxall, G. R. (2006). Consumer behaviour. Chichester: John Wiley & Sons.
• Farley, J.U. & Ring, W. (1970), An Empirical Test of the Howard-Sheth Model. Journal of Marketing Research (JMR). Nov, Vol. 7 Issue 4, p427-438. 12p.
• Howard J. A., Sheth J.N. (1969), The Theory of Buyer Behaviour, J. Wiley and Sons, New York.
• Hunt, S. & Pappas, J. (1972), A Crucial Test for the Howard-Sheth Model of Buyer Behavior., Journal of Marketing Research (JMR). Aug, Vol. 9 Issue 3, p346-348.
• Sheth J.N. (1972), The Future of Buyer Behavior Theory, in SV - Proceedings of the Third Annual Conference of the Association for Consumer Research, eds. M. Venkatesan, Chicago, IL: Association for Consumer Research, p. 562-575.
• Solomon, M., Russell-Bennett, R., & Previte, J. (2012). Consumer behaviour. Pearson Higher Education AU.
• Wright, R. (2006). Consumer behaviour. Cengage Learning EMEA.
• Zeithaml V.A. (1988), Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence, Journal of Marketing, Vol. 52, No. 3, Jul., p. 2-22.

Author: Krzysztof Wozniak