Nicosia model

Nicosia model is a structural model of the purchase decision-making process by an individual consumer or a whole family.

This model shows the interactive relationship between the company and the consumer. They arise between them for mutual communication - company communicates with consumers through promotional activities, while consumers by making purchases.

The author of a model F.M. Nicosia identified three stages that gradually moves the consumer in process:

• preferences,
• attitudes,
• motivations.

Example of Nicosia model use

An example of the use of the Nicosia model could be a consumer considering purchasing a new car.

• Preferences: The consumer begins by identifying their preferences for a car, such as the size, fuel efficiency, and features they desire.
• Attitudes: As the consumer researches different car models, they begin to form attitudes towards them. They may read reviews, talk to friends and family, and visit car dealerships to get a sense of which models they like or dislike.
• Motivations: Based on their preferences and attitudes, the consumer is motivated to make a purchase. They may choose to purchase a car that meets their preferences and has a positive attitude, or they may decide to wait for a better deal or newer model.

In this example, the consumer's preferences and attitudes influenced their motivations to make a purchase. Through the use of promotional activities such as advertising, and personal selling, the company was able to communicate with the consumer and influence their decision-making process.

Steps of Nicosia model

The steps of using the Nicosia model in a consumer decision-making process are as follows:

• Identify consumer preferences: The first step is to understand the consumer's needs, wants, and desires. This includes identifying the specific product or service they are looking for, as well as any specific features or attributes they are seeking.
• Gather and evaluate information: The consumer then begins to gather information about different options that are available, such as through research, reading reviews, or talking to friends and family. They evaluate this information to form attitudes about the different options.
• Form attitudes: Based on the information gathered, the consumer forms attitudes about the different options available. This includes their likes and dislikes, as well as any positive or negative associations with the products or services.
• Consider motivations: The consumer's preferences and attitudes influence their motivations to make a purchase. They may choose to purchase a product or service that meets their preferences and has a positive attitude, or they may decide to wait for a better deal or newer model.
• Make a decision: The consumer makes a final decision on the product or service to purchase based on their preferences, attitudes and motivations. They may also take into account external factors such as price, convenience and availability.
• Post-purchase evaluation: After the purchase, the consumer evaluates their satisfaction with the product or service and forms an overall attitude towards the brand. This may influence future purchasing decisions.

The four areas of the decision-making process in Nicosia Model

In Nicosia Model the decision-making process is divided into four areas (graphically presented on fig. 1):

• Area 1 - includes consumer attitudes shaped by information from the market. In this area information flows from the source of their creation to the recipient.
• Area 2 - consumer is looking for information about specific products and gives them value. During the evaluation the consumer allocates appropriate weight to each information piece. When the result of the evaluation of a given product from the consumer's point of view is satisfactory, consumer is motivated to buy.

Fig. 1. Nicosia model of consumer behaviour

• Area 3 - act of purchase. Motivation - established in advance by consumer prompts him to acquire the product.
• Area 4 - feedback, as result of the consumption of the product, the consumer acquires a new experience and base on it his new preferences (predisposition). This last step is not only the consumption of a product but also a very important factor for the future decisions of the consumer. Feedback is also a very important factor for the company, which acquires a new information that could be used in preparing future product policy, its advertising and communications targeted to the consumer.

Advantages of Nicosia model

There are several advantages of the Nicosia model in understanding consumer decision-making:

• Three-stage process: The model provides a structured and easy-to-understand three-stage process for understanding consumer decision-making, which makes it easy to apply in practice.
• Emphasizes the interactive relationship: The model highlights the interactive relationship between companies and consumers, which can be used to design effective marketing strategies.
• Takes into account consumer attitudes: The model takes into account consumer attitudes towards different products and services, which can be used to understand why some products are more successful than others.
• Can be used to predict future behavior: By understanding consumer preferences, attitudes, and motivations, the model can be used to predict future consumer behavior, which can be useful for businesses when planning and decision-making.
• Provides an holistic view of consumer decision making: It provides a holistic view of consumer decision-making, considering not only the pre-purchase decision making but also the post-purchase evaluation.
• Helps in understanding consumer behavior: The model provides a framework for understanding consumer behavior, which can be used to make strategic decisions about product development and marketing.

Disadvantages of Nicosia model

There are also some disadvantages of the Nicosia model:

• Simplistic: The model is based on a linear and simplistic view of consumer decision-making, which may not fully capture the complexity of real-world consumer behavior.
• Limited to the purchase process: The model focuses solely on the purchase process, and does not take into account the other stages of the consumer decision-making journey, such as problem recognition or post-purchase evaluation.
• Assumes a rational consumer: The model assumes that consumers make decisions based on rational considerations, but in reality, consumers may be influenced by emotional or cognitive biases.
• Limited to a single decision-making unit: The model assumes that decision-making is made by an individual consumer or a whole family. It does not take into account the impact of groups, such as friends or coworkers, on consumer decision-making.
• Limited to the pre-purchase decision making: The model does not take into account the post-purchase evaluation which is an important part of consumer decision-making.
• Lack of attention to the external factors: The model does not take into account the external factors, such as societal and cultural influences, that may impact consumer decision-making.

Other related concepts

There are several other related concepts that are closely associated with consumer decision-making:

• Consumer behavior: This is the study of how individuals, groups, and organizations make decisions about the acquisition, consumption, and disposal of goods, services, and ideas.
• Purchase decision journey: This is the process that a consumer goes through to make a purchase decision, including stages such as problem recognition, information search, evaluation of alternatives, and post-purchase evaluation.
• Marketing Mix: This is the set of marketing tools that a company uses to promote its products or services, including product, price, place, promotion, people, process, and physical evidence.
• Marketing Segmentation: This is the process of dividing a market into smaller groups of consumers with similar needs or characteristics, in order to target specific marketing efforts.
• Branding: This is the process of creating a name, term, design, symbol, or other feature that identifies a product or service and differentiates it from others in the market.
• Influencer Marketing: This is a form of marketing in which brands partner with individuals who have a large following on social media to promote their products or services.
• Behavioral targeting: This is a form of online advertising that targets consumers based on their browsing behavior, such as the websites they visit or the products they have searched for.
• Product positioning: This is the process of creating a unique image and identity for a product or service in the minds of consumers.

Nicosia model — recommended articles

Hierarchy of effects model — Consumer buying behaviour — AIDA model — Howard Sheth model of consumer behaviour — Factors influencing consumer behaviour — EBK model — Customer equity — Consumer decision making process — Bettman model

References

• F.M. Nicosia, Consumer Decision Processess; Marketing and Advertising Implications, Prentice Hall, Englewood Cliffs, N.J. 1966, p. 156.
• Bettman, J. R., & Jones, J. M. (1972). Formal models of consumer behavior: a conceptual overview. The Journal of Business, 45(4), 544-562.
• Bettman, J. R., Luce, M. F., & Payne, J. W. (1998). Constructive consumer choice processes. Journal of consumer research, 25(3), 187-217.
• Simonson, I., Carmon, Z., Dhar, R., Drolet, A., & Nowlis, S. M. (2001). Consumer research: In search of identity. Annual review of psychology, 52(1), 249-275.