In Fartial FulflLlment - MSpace at the University of Manitoba

.f:i 

TI{E DYT\AMTCS OF BUYI'R 

SIMULATICN ÛF TF]E HO\^JARD 

þ, Thes 1s 

Fresen€ed Eo 

BEHAVÏOUR - 

& SllËTH I'{ODSL 

The FacuLEy of ,AdmínisEraEive SEudies 

The UníversiEy of }fanitoba 

In Fartial FulflLlment 

of Ehe RequÍremenEs for Ehe Degree 

MasEer of BusÍness .AdmLnistratíon 

by 

Bruce Hayward ALi.en 

b-ebruary X.973 ä1il'FÈr'#ie:r 

Ï*;-**- i 

{iâ!our* Ðl,ro\LÈ}

ABSTRACT 

1H]1 DYNP"MICS OF BUYER tsEi{AVÏOUR . 

SIMULAÎTON OF THE HO}IARD & SqEIH I"ÍODEL 

by Bruce Hayward Al1en 

The fundarnental purpose of Ehls sEudy was to f.nvesELgaEe the dynamlcs 

of buyer behaviour through Ehe expl.ora,Eion of Ehe Ëlme varyíng lnEernaL 

characterlstics of the buyer. Thls sEudy r{as a.ccompl. lshed Largel.y Ehrough 

the model,l.lng of a generaL theory and Ehe dlgiEal" compuEer simunation of 

Ehe model" The sEaElc cha.raeteristlcs and feedback reLaËlonshlps r.¡ere drawn 

from Ehe general theory of consumer behavLour knolrn as Ehe Howa.rd and Sheth 

Theory of Buyer Behavtour. The dynami.c characEerlstlcs and functiona1 reS.a- 

Eionships ¡¿Í.thln and beÈween the variabi.es EhaE represenE buyer behavi.our were 

drawn from Ehis general theory Eo a Large extent and from posÈulaElons gener- 

ali.y accepted among researchers in Ehe fleld of psychol.ogy and consumer 

behavlour. 

The ulElmate objectlve of thls LnvestlgaElon ¡¿as Ëo anaLyze Èhe 

systemaËic changes whf.ch occur tn Ehe f.ndtrvidual0s internal. characterísEIcsu 

such as satisfacElon and confldence over Eíme and in response Eo changes l.n 

sel.ected varlables such as the elements of sEimulus disptay" The consumer 

r¡as monLEored over a fuLtr year (52 weeks) and aE Ehe end of each cycle (r¡eek) 

the LnternaL characEeristlcs and Ehe output (purchase) behavi.our s{ere re- 

examined to analyze Ehe changes apparenE In che consumer0s behavlour" 

Ïhe modeL was intenEional.Ly desf.gned Eo repLicate Ehe processes 

characterisEic of an indívlduaL consumi.ng uniE 1n Ehe purchase of a. packaged 

convenlence good consumed on a regul.ar basf.s. To test Ehe generaL Eheorygs

asic assumpEl.onse PosEuLabes and varlabLe reS.aElonshlpsu Ehe model. ¡+as 

subjecEed Eo sensf,tlvlEy analysîs Ehrough varlabLe maniputatl.on. Through 

Ëh1s anaS.yslsr suggesE!.ons as Èo areas of ambiguiEy and greaEer concern for 

future research were dlscLosed"

ACKNOI{LEDGME\ITS 

I r.¡1 sh to acknor¿l.edge Ehe guidance and asslsEance of Í.ndlvl,duals 

and i.nsEiEutlons úo have conEribuËed Eo Ehe developmenE of Ehls LnvesÊI- 

gaEion. 

I sf.ncerely thank Dr" Wa1ter S, Goodu FacuLty of AdmlnlsEraEive 

SEudl,es aE Ehe UníversLty of ManlEobau under r¡trose supervi.síon this pro- 

ject was dlrecEed" I al.so wlsh Eo Èhank Dr. M. D" Beckman for hi.s advlce 

and counselling wl.Èh respecE Eo the Ëheory of consumer behavlour" 

Computer simulaEf.on wâs an integral aspecE of EhÍ.s lnvestlgation 

and I musE Ehank Frofessor R" I" I{aLl for hls lnteresE and concern Xn 

Èhe mode1.Lång and programming sEages of Ehe study" 

I a3.so wi.sh Ëo express my gråtlEude Ëo the University of MantrEoba 

f,or Ëhe fundÍng of chls research and the provlsion of compuEer tlme and 

faclLlties for Ehis sEudv"

CHAFTiIR 

L" 

ïI" 

TII. 

IV. 

TABLE OI- CONTENTS 

ïI'{TRODUCTïO}ì @ o e e o 6 ø o @ e o @ s o @ e @ o o o 

.4.. Furpose, Importance and Slgnificance @ ø @ s 6 ø o o 

Bu The Problein e e ø ø e o o e @ ø ø ø @ o o o 6 e 

L" QuesEion ê o o o 6 o ø o ê o o o a o ø ø s o s o 

2u LlmlrationofscoDeofProblem o o ø è e o o e 

Cr ÐefíniEions o e e ø o e o o 6 o e o s @ ø o ø ø 6 6 

THÐ PRESENT STA.TUS OF CONSUI"IÐR BEHAVIOUR o o ê o o o 

Au Reviewof EheLlEera.ture . o o o o @ o o 6 ô 

L" Development Prlor to 1960 o o o o s o e o o @ o 

2u Recent DevelopmenÈs . ø ø e e @ 6 6 é c o o ø ø 

Bu TheoreEical. Typologi.es @ ø 6 @ @ o o o ø @ o e @ o @ 

3." Opera.Eíons iì.esea.rch . o o o s o ô o o @ ø o o ø ø 

Zo ExperimentaEf.on 

@o00@@øøooêøooø 

3. S lmuI aËf on 

øoøoooooøo600@o 

C, l"iodel s and Model i. lns @ o o o 

L" ,A,pproa,ches to llodelling " . ø o o ø ø ø 6 o ø 

2"BeaviouralFrocessModels,.oøoo 

D" CornpuÉerSinuLationof iviodels n ø ø o o ø ê o o @ o o 

i.n Appl.ícations of Computer Simul.ation " 6 e o ø o s 

2" The Present InvesEigation u " o ø o o @ o 6 o 6 o 

THH TI{EORY OF BUYBR BEHAVIOUR " O O O O O O O O 

SUþT4ARY OF THB TIìEORY ëøøø00000000@o 

L" the Need for a Theory . " ê o o o @ o E o @ o o 6 

Zo The Basic SÈrucEure 

3. The Basic Processes 

4" Àssumptions 

oo90êoøoo6øøoo 

o90ôø@o9000øoo 

oooo0000000006 

THA SIMULA'IïON ÌtiODEL o o o e ø o o o o o o o ø o o e o o 

*4,. Their,orvardandSheEhllodelRedefined e ø o ô o o e o 

B" SysEems D¡rnamics Þlodelling @ ø o o o ø o s o o o e o 

1. General. StrucEure of SysEems . @ o o o ø ø o ø ø 

2" SEructure of the Símulatíon i'!odeL ø @ e e ø ø e s 

I 

o 

brlfcE 

t 

¡ 

3 

3 

3 

5 

6 

6 

6 

9 

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tr9 

19 

22 

22. 

23 

24 

24 

25 

27 

27 

¿l 

30 

39 

/,t 

¿+¿+ 

5L 

51 

53

CHAFTEIì 

PAGE 

C' Model1ing Èhe SubsysEems " o o ø e o è @ ø @ o o o @ o 57 

Lu Input SubsysEem ø ê o o o ê o 6 o o o @ o o 57 

" 

2" Ferceptual. SubsysEem o o 6 o @ o 6 o o @ e o o o 79 

3" Lea.rnt.ng SubsysEem o o o ø ê o ø ø o o o o @ ø 91 

¿+" Oucput SubsysEem o ê ê o @ o o o ø ø 6 o ø ø L04 

5, Exogenous Varlabl.es SubsysEem q o ø ø @ o o o o o 107 

V" BEHÂVIOUROFTI{IüMODEL ". ô o @ o o o o o @ o @ ø o o ø o L26 

A" Inputsubsystem 6 ø ô e o e ø o o o ø ô ø o o o 6 o L27 

Bu Perceptual Subsvstem " e @ 6 o o o e ô o o e o ø 6 o ô 1'32 

Cn Learnlng SubsysEern 6 6 o @ ø s e ø ø o ø @ o o o o " 

D" OuEput Subsystem o o @ o o o @ o e o ø ø s e 6 ô " 

E" Exogenous SubsysEem o e ø o o o o e o @ o o o e ø o " 

F' The IntegraEed l"fodel ø ø o o o @ ô o @ o o o ø ø ø 6 " 

VI" TESTII'IG OF THE MODEL " " o e ø ø e ø ø ø ê e ø @ o @ ø ø' X.59 

A" SensitlvlËy TesÊíng . o e s ô o o e ø ø ø o o ø ø ø ø 16L 

B" A TheoreEical lest of Ehe Moden ø ø ô o ø ø o o @ ø " 

VfI" CONCLUSIONSANDRECOMMENDATTONS O E O ø ô 9 O O ø ø ø ø " 

REFERBNCES " o o o o e o o o @ o o ø o o € o o ø o @ o o ø ø " 

ÀPFENDIXA ACompLeteLlstingofEheModel o o ø ø o o o ø ø @. L85 

APPENDII( B Test iÉl ø ø 6 o ø ø o ø 6 @ ø e o o s s @ o ø ø ø o l'90 

APPENDIX C Test /Ê2 o o ø ø ø ø e @ e e @ e o ø o @ ê o ø o o o 20I' 

AFPANDIX D Test iÉ3 ø ø o 6 o o ø ø ø o ø e ø e o e ø o e o o @ zLz 

APPENDIX E Tesü lÉ4 o ø ø @ o e @ s o ø @ e o o ø e o o o ø @ @ 223 

APFEh]DIXF Test /É5 ø e e @ o e o o o o ø o o ð @ o ø o ø o @ @ 231+ 

AFÞENDIX G TesE riÉ6 o @ q a ø e o o è @ @ ø @ ø ê e o e ø ø o Þ 2t45 

AFPENDIX H Sl.mulaEton ÎríaLs" les|s 4þL &, 4þ2 ø o q 6 ø E o o e ø 256 

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LÏST OF FTGURBS 

A Theory of Buyer Behaviour @ ø ø o o ø ø ø o o e o 

The Black-Boxs S-R, Paradigm 6 o s 6 o o s e o q ø ø o 

TheHolrard&ShethModelRedefined ø 6 o s @ o @ ø o 6 

StrmplestFossib}eFeedbackLoop o o o o o o s o e ê o 

The I'lajor Levels & RaEes 0êoôo@o@oo0009 

The InpuE Subsystem 6 o o e o ø o e ø @ s e o o ø o s 

Qual.iEy Emphasís e o e o ø @ e o o ê o ø 6 ø @ @ o ô o 

Fråce EmphasïS o o o o o 6 o o @ o o o 6 e o o o o e e 

Di sEincbiveness fimphasis oo@ee@o0eo@09øo 

Servf,cg Emphasis o o o o o o ø e ø @ @ @ o o è @ e e o 

.{val.tr abiL ity Emphasís øøQ000000900q@ø@o 

PercepEual SubsysËem o o ø ø o s 90øo90eo000 

SEimutr-us êmblgui Ey 

FercepEual Bias 

øø@ooøo 

øêooo0êo00000000soo 

06@oêêôo00ø 

Learning Subsystem ô o o o o e ø ø € e o o ø ø e e 

OuEputSubsysEem. u o o e o 

Exogenous Variables SubsysËem 

0s€ooø909@og 

Importance of Furchase " s o @ @ o ø ø ø o o o 6 o o ø ø 

Cui.ture o o ø ø ø 6 q ø ø q ø ø o o o o o q o e o o 

SociaX. C].a.ss n . o o o o o e o o o 6 o o o o o o e o ø @ 

Fersonali.Ey o ø o o o @ ô o ø ø o o o o o ø o ø ø o e Þ 

Socíal & OrganlzaËionat Þ o o o ø 6 6 @ o o q o o o o ø 

23, 'Iime Pressure o o o o q ø o q ø ø ø @ o I ô o ø ø ø ø o 

2l+" Flna.nciaj. SiEua.Ei.on o q e e e € e @ ø o e @ @ ø e e e e 

L5 

FAGE 

&31 

29 

¿+5 

52 

55 

60 

6Z 

65 

67 

69 

7L 

BO 

86 

88 

92 

L05 

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110 

LL2 

lI) 

LL7 

n 19 

121 

L23

FIGURfl 

25. 

26r 

27" 

28, 

29, 

30, 

The Integrated rYodetr 

the Integrated Model. 

The IntegraEed l'{odel 

The ïnEegraEed Model. 

The InEegrated Model. 

The ïnEegrated Model. 

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PAGE 

T.50 

15t 

153 

L5l+ 

155 

L57 

v!.1$

tÏS,T OF TABLIS 

TABLË T)Ár:F' 

ï. The InEegraEed þiode]. o e @ o ø o ø e ø ø o @ @ ø 3-1+8n Llr,Ba & l48b

CI{APTER I 

ÏNTRODUCTÏON 

A" Purposeu ïnporEance and- Slgnlficange 

This lnvestlgaElon ls enEitl.ed Ehe Dynamics of Buyer tlehavlour * 

A Simulatton of the l{oward and SheEh Mode1 of Buyer Behaviour. Thi.s copf.c 

r'¡1 1. 1 tncl.ude Ehe concepEuallzatlon of Ehe Howard and SheEh Model. as a c}osed 

system exhlblEing feedback rel.atlonships and Elme varying behavlour. 

The purpose of thís sÈudy is to provlde a sysEemaÈic framework for 

the anal.ysfs of Ehe dynamics of buyer behavlour. Through the tnEegraríon of 

aLL aspecËs central to buylng behavlour !.nto a comp1ex system modet exhibl.E- 

ing feedback re}aElonshipse subsequenE analysîs 1s made possibl.e. Th.e 

Hor,¡ard and SheEh Mode1. is represenEatlve of a compl.ex model., capabl.e of 

being sysEemaEized and being slrnula.ted uslng computer slmul.atlon Eechnf.ques 

to nonitor lEs behavlour" Through such modell. lng and sl.mul.aElon, lnslght 

lnEo Ehe val.ldlEy and rellablLlty of the lJoward and Sheth Eheory i.s fostered' 

FurEhermore, such analysls wl11 provide a nerr perspectlve from whlch the 

buslness and academlc environment may vlew buyer behavlour, 

This sEudy of the þnamics of Buyer Behavlour represents a rlevr fron- 

ELer ln Ehe devei.opment of markeEing theory, As yeE no one has aEtempted Eo 

deflne buyer beha.viour in terms of a closed sysEem and apply a Erue sysEems 

meEhodology Eo anal.yse it over time, Tlme represenEs a retaElvety new dlmen- 

slon whlch has been incorporated !.n relatl.vely few EheoreE3,cal discusstons on 

buyer behav3our. Howevere none have utî. 1Í.zed a true systems methodotr.ogy for 

such analysls" 

Mode3.s, frameworks and EheoreËical consEructs of buyer behavlour 

have been hypoEhesl.zed more or Less by such auEhors as Maslolq in ftDrl.ve

Reducblon Theorytr, Howard and SheEh in $?The Theory of Buyer Behavf.oureru and 

Nlcosia Ln t$AdverEf.slng Managementu Consumer Behaviour and Slmul.atl.onrÉ, buE 

mosE have negn ected feedback relatlonships and/or time dimensions" 

This study wl.Ll aEEempE Eo define the Howard and Sheth ModeL of 

Buyer Behavi.our as a cl.osed sysEems vrîEh !.nherent feedback relaEionshlps and 

Elme del.ays. Thås study wl.l.l. furEhermore atEenpt to add Ehe dlmenston of 

El.me by slnuLaEing and monlEorlng the behavf.our of the system over a glven 

perlod of tl,me" In essenceu Ehe addiEion of Lhese Ërüo elemenEse lt f.s hopedu 

wltr1. conËrf.buEe slgnåfi.canLX.y to Ehe advancemenE of markeËing theony wl.Eh 

regard to buyer behavíour.

B" The Probn em 

L, qgeqEign 

The probt em Is Eo def ine fr!{hat ls Ehe behavf.our of Ehe Howard and 

SheEh Model of Buyer llehavå.our when conceptua1. l.øed as a cl.osed sysEem com- 

posed of LnteracEtrng posltlve and negative feedback Loops and deLays when $^t 

ls slmulated over time and in response to changes tn specifled varlabS.es and 

parameters?6s 

the very naÈure of thf.s study and the deff.ni.Elon of the Prob}em as 

stated genera}ly precludes Ehe posEuLation of any speclfÍ.c hypoEheses' 

RaEheru one very generaS. hypotheså.s may be stated; 

Hor; The proposed mode3. based on Ehe ÏTov¡ard and SheEh theory of Buyer 

- Behavlour ås noE a vatr l.d and reLiabl.e lndleaËor of Ehe generaL 

naEure of buyer behavlour, 

Hoot The proposed model. based on Ehe Howard and theEh Theory of Buyer 

Behaviour is a vaLf.d and re3.labLe lndicator of Ehe generatr naEure 

of buyer behavlour" 

2, Ligri.taEionq of Scope oJ ProbJ,e¡m 

the t lmltatlons of Lhe scope of Ëhe probLem are del.i.neated prtnarll.y 

by the boundary of Ehe system under consl.deraElono and variables or parameters 

as esEablished by Ehe lloward and SheÈh Model of Buyer Behavtour" 

The primary focus of EhLs sEudy Ls the behavtour of Ehe lndlvidual. 

consumer over t{.me andu as such, a3.1 LnteracËfons exEernaL Eo bhis sysEem are 

assumed as inslgnlficanE Eo Ehe ouEcome of Ehe modeL" Those ïnfl.uences which 

are deemed slgnificanË Ëo Ehe system buE, howeveru not interacEing wlEh the 

sysbene have been LabelLed as exogenous variab!.es. 

The LlmiEations Eo thls sEudy are cencered upon the facU EhaE no 

conclusive evldence is avallable as Eo the theoryss val.ídLEy and reLlabll.iEy' 

Howeveru Ehis study ls deslgned to provide useful inslghE lnEo Ehe sensiEi.v- 

lty of Ehe varlabl.es and parameEers of the mode1. as well as dellneage toplcs

otr areas of concern r,¡'oleh require greater empl,ríca,3. research and ïnvesEl.ga- 

tlon 1n va.l f.da8Íng and operabÍonallzf.ng the modeL" 

Thls chapEer has been deslgned prlmarlLy Eo acqualnE Èhe reader 

vith the purpose of thls lnvesEtgation, the problemu and iEs scope and 

LlmtEaEíons. In Ehe foll-owlng chapEer, Ehe probl.em wlL1 be developed fur- 

ther Ehrough a revi,evr and ana}ysis of the appl.Í.cabLe !.iteraEure avaiLabl.e" 

A soluElon Co the probl.em v.i!11 also be proposedu as developed Ehrough an 

analysls of meEhodologles avallabLe and al.ready uEil!.zed' 

SubsequenE cha.pters wlLl outLine Ehe basåc sErucEuree processes 

and relaüionships inherenE i.n the generaL model." A model- will be developed 

uEilízing the proposed meEhodology on a subsyseems basi.s" The subsystems 

v¡i[!. be ínEegraEed and simuLa.Eed over timeu and i.n response Lo changes Í.n 

se!.ecged varåabLes and parameEers, SenstrtíviEy anal.ysis of Ehe modeL will 

be performedu and finaLi.y a summary of the flndings and recommendaEions 

r¿lLt be presenEed in the Last chÂpter.

c" &e 

tn_ltiggs__o_f_kq$g*q=uq- rn*gqiå r 

1) c!._o.Fei! gyssem (feedb4ek) - is a groupÍ.ng of parEs thaE operaËe Eogecher 

for a common purpose such Ehat resul.Es of pasE actíon conEro1. future acEl.on" 

2) FoslElve -feeclback - is thaE w?rlch generaEes groÞrth processes'rsheref.n 

actlon bull.ds a resul.t EhaÈ generates sEllL greaEer acti.on, 

3) Neåatlve feedbjLcS - Ls that v¡hlch seeks a goaL and responds as a conse- 

quence of falI. 1ng Eo achleve Ehe goal., 

4) De1pyg - refers Eo an inEerva1 of tíme beEween receípE of lnformatlon and 

acLion" 

5) DyggrmÍ.c - refers Eo Eå,me varytng behav!.our, 

6) J}yn.am-o - a di.gitatr computer slmuLaË1on Language especlall.y sulted to dyna- 

mÍ,c conEÍ.nuous systems. 

7) CognEerigrtuiElvg - thaE wfrich would noE be expecEed Lntuitlvelyu 

8) Dynglrlg gggg3!-g - ls a compuEer program whlch accepes Ehe equatlon for a 

model. of a dynanic feedback system and produces Ehe requested simuLation 

resu!.Es a.s numerlcal Eables and graphíca} pf.ots,* 

þnamo has been destgned by the IndusErlal. DSmamics Group at Ëhe Sf.oan 

9chooL of ManagemenE, Mass. InsEí8. of lechnotogy"

Â" R.EVTEI{ OF TI{E LTÎERATURE 

L" Devg&opqenE PqiS Eo .1960 

CHAPTER TI. 

PRSSENT STATUS OF CONSUMER BEHAVTOUR 

The evol.ution ¡EhÍ,ch has occurred !n emphasls from Ehe ånternal 

sErucEure and fr¡neElontng of Ehe Índlviduat fi.rm Èo Ehe buyer !s nan$- 

€esËed ln Ehe mu3.Eå,pnåel8y of areleLes, books and pubS.f,eaEions presenEny 

ar¡aåXabÌ.e on the Èop$c of consumer behavf.our, MarkeËång as a då,se$pl S.ne 

ls eoneerned ¡eåËh every aspeec of Ehe fXoçv of, goods and servåees from 

bhe pr@ducer Ë@ Ehe fÍ'nal end eonsumetr. The eonsumer ts bhe 3.asc 3.ånk 

ln thls ehaån and ls perhaps Ehe !ßosE erueåa3. 3"$.nku l¡r thag iE ås håe 

behavlour measured In Eerms of purehase and repurehase eycl.es Ehåe eråËÍ- 

can ly deEermlnes the effectåveness and effåcleney o€ aX.X prlor ¡narkeEtng 

sEraEegles and taetf.cs, the eonselentlous manager ls eoncerned çrl€h Ehe 

Í.nErtcacles of consumer behavlour and hor¿ he ean lmprove Ehe effl.cteney 

and effeetf,veness of Ehe f!.ow of goods and serv3,ces Eo €he consumer" 

Tradleiona3.Lyg Ehe soeåaL selenees, specåf!,catrI.y psyehonogyu have 

coneetrned Ehemse3.ves wtEh SndivtduaL behavlour or Ehe realm of wirae moves 

Ehe lndtv$.duan Eo acEton and reaeE$on. The emphaslsu hotøever" has been 

on eNperf.menEaElon and observaEton and, Eo a Large eKEenEe on abnorma!. 

paEeerns of behavåour 3.argely as a repereussÍon of earn ler norms med9.ae- 

å.ng agaå,nst exemå,nlng the psyehe of so-ca3.led heaLEhy paË$enËs" 

The deves.oprnenE of soeÍ,ology and the examinaEi'on of group 

behav!.our a].so was 3.arge].y benE on devåaEions from normaX buE agaån was

ased n arge[y upon empårtea]. observa8åon" As soela[ psyehonogy evonved 

Eo fåll Ehe gap be8ween Ehe ewÕ dÍsetpïånes, a somer.¡iraE såmu3.Eåneous 

shåfË ln Ehe firmss emphasås oeeurred Eonard the lndåvådual. eonsumång 

unlEn 

ManagemenE began Eo adopE påecemeal. some of Ehe eoneepEs and 

find3.ngs of Èhe sociaï scf.enees lnEo lts declslon-making proeesses" The 

tr.anguage and Eern$.notr.ogy of Ehese soela3. sciences crepE slowtry buE surely 

lnto Ehe vocabun ary of Ehe markeElng manager of Ehe f,lrrn" In esseneeu åe 

ås synonomous Eo a Jlgsaw puzzneu ¡ahes'e managemenE ga3.ned some new pleees 

but f,e¿¿LJ.y had no Ldea of how Ehey a3.1. fåE Eogether" Horsard and Sheth (1-967) 

as eiEed by Day and Ness (n97!.u p"507)u prov$.de a mosL ånEeresElng deseråp- 

tåon of Ëhls sf.€uaËlon, 6eThe exåsËSng varåeEy of fornr¡Iabåons nesembtes 

Ëhe.¿ar$.eEy of responses of seven bn$'nd men touchüng dåfferenE parËs of, an 

etr ephant and maklng Snferenees abouE Ehe animaS. dråch necessarlty dåffer 

f,rom, and oecastonally contradleE one another,re 

IE å,s noE dlfflcu1E for one to seee however, Ehe mergnng of wtrat 

origlna}l.y were separaEe and dlsEf.neE areas of concenEratlon" ,A,s such 

i.nEerl.ock$ng occurs one cannoE henp noblelng thaE everyEhlng Í.s [nErlcately 

lnvo}ved ån a Xargere more compl.ex system of whrich one subsysËem 3s Ehe 

Í.ndlvldua3. and hls environmenb" The psychologåeaX, soetologicaL and physlo- 

3.ogf.ea!. sysEems of any g$,ven lndlvldua3. are, ån facE, mereLy subsysEems 

ånEeraetÍ.ng raÍEh one another ab€emptÍng Ëo atEaln equf.S.lbr$.um" 

The pose war advanees Ln bechno1ogy and quanEiEaE[ve Sechnlques 

have been a greê.t boon to Ehe deveLopmeng of managemenE seåenee and opera- 

Eions research' The beehn$ques are soph$sEi.eêEed bo a targe exÈenEu how- 

evere bhelr oråglna3. developmenE oeeurred largely as a problem sonvång

exercise6 Today, many of Ehese Eechnlques are findlng applicatåons in 

marketÍ.ng buE as SheEh (L967) pr.rts åEe reThe Eheony wt'rlch aÈtempËs to 

exp}ain Ëhe observed phenomenon of buyer behaviour and Ehe quanElEatlve 

Êechniques çd:lch provlde adequaEe def Í.nlEî.ons and measurenenE have been 

devel.oped lndependenEs.y of each oËher Eo Ehe detrl,menE of Ehe maturlty 

of the dÍ,scÍ.pLå.ne"r' 

The dl,verse acrd fragmented pleees of å.nformatlon concernång Ehe 

lndLvldua!. consumlng unÍE have been gradual.l.y and conÊlnuousl.y lncreaslng" 

the gnoweh and specåal.løatÍ.on v¡h3,ch has occurred ln markebtrng has led Eo 

lncreasing emphasls on Ehe consumer from Ehe MarkeEerss sEandpolnEø To 

understand che behav$,our of the eonsumÍ.ng unÍ.Eu Eheoret$eal. models have 

been devenoped Eo explain and predícE behaviour emanaEing from Ehe buyer. 

EssenElaLLyu this process of modeln lng has atEempted Eo sysEemaEize Che 

processes thaE are fnvoS.ved ln buyer behavlour" 

Aaker (1970), polnEs out that the modetrl.lng of buyer behavlour 

does provide a sEructure for Che processes which are tnvo!.ved and accord- 

tngly has resul.ted f.n some productlve manager$.a!. uses for Ehese modeLs' 

l{e adds EhaEe øAs tnsi.ghEs are gaf.ned inEo Ehe processes v¿trlch are ånvolvedt 

mariagemenÈ declslon makå.ng ls fosEered and po3.1cy or straEegy ås Í.mproved"@ 

The existenee of !.a¡ss of consumer þehavtour has been considered by A" 

Schuchman (1968), and he concl.udes that Ehe resulEs encourage the deve3.op- 

lng of a science of marketing. Speci.fåca!.ny, he reporEs and deseri.bes Ewo 

tnsÈances å.n rdnlch Ehere are observab3.e regularåEles 1n behavl.our whieh 

cou3.d acquå,re the sEatus of markeEtng Laws" 

Ln 

pø 

The developmenE of rnodeLs of lndl.vidual behavi.our began Largel.y 

psychol.ogy Ehrough the work of LerEi.n (1936) as ciEed by Marki.n (190e' 

¡.05) Í.n hå,s eoncepe of a e6life Spaeese, r+fiere he predl,cLed Ehe exEerna3.

and ånEernan. forces lmpÍ.ng$.ng Õn Ehe åndåvf.dua3. " 

Masl.or¿ (1954) u f.n Ëhe devetr opmenE of psyehoana3.yråe Eheoryu 

bnoughE forward Ehe eoneepb of needs and theår hf.erarchical sErueeuren 

ËIe 3.å.nked needs bo noEi.vaEåon and saE$sfaeEåon andr as sueh, breatsed 

behavÍ.our very nuch ån a sysEenatÍ.e fashlon. These Eçm devel.opmenËs 

are sEí1.3. a fragmenEed approaeh Eo Èhe Eop3,e of consumer behavåour" 

l{oweveru this Ls Largel.y due to Ehe funcËion and purpose 8or drtch they 

were orågtnaLX.y fntended' Desp3.be Eheår draç¡baeks they represenEed 

sl.gn3.ficane steps Eoward Ehe devetopmenE of a comprehensl.ve seheme of 

behavlour, 

the deveS.opmenc of Eheoreeleal mode3.s gaåned sågnÍftean€ n¡omen* 

tum wtEh Kornhauser and LazarfieLdse (1935) represenEåEf,Õn as eíeed by 

Day and Ness (197Xs Þ. 493)e $.n Ehe ÁnaLysls of Consumer A,eEions. 

they depåcEed behavåour as an acc[on sehema and nobed Ehe åffip@rEanee of, 

El.me Í.n mappÍ.ng Ehe flor¡ of consumer aetlon' The scheme of aeEåons hoTü- 

evere 1s very rnuch såmp[iEted buE å€ laåd bhe foundaÈions fon furEher 

de\reS.opmenEn 

2, Beççf.r_F "qçqeL_9pn-tplgq 

The evotuEåon of bheoreEå.eaX modens sf behavtour made stgnlf[- 

cant progress as varl.ed eonsErueEs emerged ån Ehe 1960ss. Among sueh 

mode3.s !{as or}e devetroped by Enge3.u Blackwell and Kotl.aE (1968) elted by 

Engen (tO6eu p" n-5)s ltrlch Ereats Ehe preeess as a probS.em ån deeåsåon- 

makång" Consumer behavå,our f.s EreaEed here as a cl.osed sysEem r+fEh in€or- 

maEi.on feedfng back Eo a eentran eontro!. uni,L. tearnlng and habåË forma- 

üåon are Ereaced ån EhLs coneelst as lmporEanf faceEs ln Ehe procêsso The 

mode]. {s sEllÏ. very much slmpllf$.ed Ln thaË the processes ånternan Ëo Ehe

consuner are treaEed mueh as a #bnack boxÉr and Ehe deeåsÍon Þroeess 

i.s ln Ehe form of an édon-ofdse øyes-¡roø? decisÍon or a ha!.E ån Ehe ftovy 

of acEå,on, 

-4noEher modeL reeenEtry deve3.oped by Nlcosla (3.966) Ereats 

behavåour as a decislon process encompassl.ng four fí.el.dsc Ehe message 

e:(posure co bhe consumere search for and eval.uaLl,on of, emeans-end€ rela- 

håonsu Ehe aae of purchase, and Ehe feed backø Agaln, Nåcosia (1966) 

treaEs Ehe processes as a sysEem eonrposed of feedback n oops ånEeracElng 

i¿nEhin a Langer strucËureu The scheme of Ehe troop ås a computer program 

bhaE descrfbes Ehe structure of eonsumer behavl,our, Slgniflcan€lyu 

btrl,cosla (1966) ouEÍ.lnes Ehe dlmamÍc proper8y whlch Lhe noden exhlb!.Es 

through the use of a compuEer programo The model.u howevere uEi3. lzes on3.y 

a Ésf,unnel.rr- approaeh Eo declsÍon maklng by Ehe consumer and onty one Eype 

of nessagê - âr!. advertåsemenL" Nleosla (1966) recognåøes EhaE Eåme Lags 

do exlst and thaE eertain parnmeËers of Ehe nrode3. cannoË be essumed con- 

stanE but are raEher a functlon of Ef,me" 

The purpose and lnEent of Ehe model. EhaE Nlcosla (X.966) descrfbes 

was 8o bulld a såmp1e seheme f,or several. rea.sonsã 

de0ne cound buå3.d a sfmul.aElon mode3. that 1s a dårecE Erans- 

X.aElon of the r¡hole scheme. Th!,su however, v¡ouLd be di.ffLcul.E 

because sl.mu3.aEion of Ehe scheme requíres more e f åne graln daEas 

Ehan Ehose usualLy geneaated by currenU markeEånge ådverElsing 

and cons¡¡mer researchrrs 

edBy f.Es very naËureu sl,mu!.aEl.on 

real.åze EhaE more Ehan a hyphen 3.les 

trespoRse, e$ 

compeS.s Ehe neseareher Eo 

beE¡veen a sEåmulus and a 

dsNotlons of equå,nå.bråum or opElma3.ityu EhereforeE mâV become 

eïusåve or may vani.sh al.togeEher as Ehe comp1exl.Ey of the systen 

BhaE is porErayed inctreåses"dÍ 

Itllcosla. goes on to poånE out Ëhê8."" dsre cannot furEher our under- 

10

s8andå.ng 6f, eonsumer beha,¿åour unn ess &Íe eonee$'ve åË Ëo be a 

sysEem of rel.aeåonshå.ps,ss 

o'These are atEempEs Eo p{.npoånE noL properEåes of $r¿d1vtdua3. 

enËlÈles but properEles sEemnång from Ehe modes by 

çdråeh enE$.E!,es mubualtry retaEeu thaE [se properËies of sysEêinse& 

The deveS.opmen8 of comprehensåve mode!.s of buyer behavå,our has 

ga$ned Ehe greaËesE nomeneun wÍ.Eh Ehe inEroduetíon of Ehe Ho¡sard and 

Sheth (f.969)Eheory of buyer behavlour" This moden represenEs Ehe mosE 

comprehensl,ve seheme EhaEe eo daEee has been deve3.oped and gaåned recog- 

nlEåon by boEh the business and academå,c wor3ds, Through Ehe åntegraE$.ori 

of bhe f,ragmented bÍ.ts and p3eees of lnf,ormatl.on ånEo a pattern, Howard 

and Sheeh (n969) have been abn.e Eo ereeee a EheoreEleal strueEure of 

huyer behavåour çñåch ås h$.gh3.y funcE$.ona3. Eo the undersEandlng and pred- 

å.ctå,on of buyå,ng behavåour. 

The modet Ereaes buyer behav$our as a elosed sysEem of re3.aEtron- 

shi.ps and emphas3.zes the feedbaet< ççtri.ch oceurs from one variabLe Eo the 

¡rêxÈs As Howard and SheEh (n969) descr$be i.E: 

ci.otl" w 

øThe thec¡ry Ls at a med$.um Level. of forma1åEy and absErae- 

seÎhe Êheory [s fa$rl.y ådeaLlsEåc 1n the sense that no eoumåEmene 

ls neeessarlly urade that Ehe structure !E !.mposes on Ehe 

empÍ.rlcan facts of, buyer behav$our ås real,ly there" Some of Ehe 

aonsErucEs do exå,st ln physleal. or neurophysåca1 faeCu bub tre are 

¡rot eerta1n about an l of Ehem'ss 

f+By eonsErucEång Ehe eheory at a medium degree of absEraeLåon 

åE has been possl,b3.e Èo achteve a 3.eveL of deLaÍ.3. ln the analysl,s 

søhÍ,ch enabtr es Ehe user Èe eapEure essenElaS. dlstånecåons requåred 

€o lntegrate a varlety of bodles of Eheory and researeh dråeh ån 

Eurn åncorporaee the d$,stånetåons requS.ned for dea1ång wåEh prob- 

3.ems aË ìdtraE sfe thånk of as Ehe tmarketing Ler¡els"ru 

1î

Much buylng behavf.our Lsu f.n essencee more or Less a cycl3.cal phen- 

omenon as l{oward and Sheth (teOeo pp" 391 s 392) descrlbe lt, whereln the 

consumer makes repeEltlve brand cholce decisÍ.ons" These purchase cyctr es 

wålI essentiall.y deEermÍne how ofEen Ehe consumer r¿i!. I buy a given producEn 

the purchase eycle assumed by Ehe buyer w1L1 vary largeLy ln accordance 

¡'riEh the gíven producE category. For exarnpLeo ln durab}e goods purchasesu 

the cycle wil.l. be LengEhy. Howeveru for many other products such as Eof.Let 

soap and oEher grocery or personat iËemso Ehe cycLe is shorto purchases are 

frequenE and Ehere f,s Ehe elemenE of repeaÈ buyÍng. 

the consumer, faced wlEh repeElElve brand ehofce declsionse sEores 

relevanÈ informaEion f.n order Eo simpt ífy Ehe psychol.oglcat and physlcal 

processes necessary Eo rouÊ1n1ze the declsÍon" Hor.vard and Sheth (1971u p, 

509) emphasi.ze: 

osWhaE ls crucf.aL, thereforeu ls Eo ldent!.fy Ehe elements of 

declsion naklng, Eo observe the strucEural or substanEive changes 

thaE occur in Ehem over Eime due Eo Ehe repeEiElve natureo and 

show ho¡+ a comblnatåon of Ehe declsíon elemenEs affect search 

processes and the lncorporatlon of lnformaEton from the buyeres 

commercíaL and soci.al. environment,úv 

The buyer ls Ehus faced lyith a repeEl.tlve brand cholce declsi.onu 

wtrich ls composed of 3 baslc el.ements as Hovrard and SheEh (l.gZ¡.e p" 509) 

describe it: (1) a set of moLiveså (2) several courses of acElon; and 

(3) declsion nedf.aEors by v¡hi.ch che moËives are maEched wl.Eh the alEerna- 

Ei.ves" The aS.Eernative courses of actlon are recognlzed as brands con- 

st$.tuElng a buyersseevoked sets wiËh Ehe poEenÈlaL Eo satÍsfy Ehe buyerss 

moEivesç the moEives being spectfl.c to Èhe producE classu and reflecËing 

the needs of the buyer. The decisi.on medlaEors represenE Ehe set of ruLes 

Ëhat the buyer employs to maEch hls moElves and his means of saEtsfytng 

L2

Ehose moEives. They serve the funcE!.on of orderÍ.ng and strucEurlng Ehe 

buyerss motlves and then orderlng and sErucÈurf.ng Ehe varf.ous brands, based 

on their potenctal Eo saËlsfy Ehese ordered moEives, (learntng belng a key 

elemenE ln developång these decision mediaEors) " 

The buyer, depending on his sEage ln hls Lífe cycl.e, wlll devel.op 

decl,si,on mediators and wil. 1. accordingly acElvel.y seek or recei.ve f.nforma- 

tlon" Thls ínformaEion ls subjected Eo bias and percepEual. processes whtch 

modify and LimiE thLs inEake of informatlon Eo sult hf.s orm frame of refer- 

êïlC9 o 

ContÌ.ngenE upone and w3.th chl.s active search for information, the 

buyer may, Lo some exEenLu genera1lze from past exper3.ences ei.Eher Ehrough 

physf.cal. or non-physícal properÈf.es" The buyer Ehus deve!.ops deci.slon 

med!.aEors whl.ch enabLe him to choose a brand seemingLy wlth Ehe besE poten- 

Eial Eo satisfy Ehe needs as aroused. If purchase creaÈes saEisfacEíonu 

Ehe poËentiatr of Ehe brand to satlsfy his moEtves ís increased, ÞIlth 

repeaEed saElsfactíon Ehrough purchase the f.ikeLíhood of routLntzacion is 

increased, brand preference f.s establ.ished, and some evenc wtrtch triggers 

the process may acEuaLLy conplete the cholce decíslon, 

The buyeru ln acÈualíty, has acEed to slmplify his environmenE and 

reduce actlve search behaviour. The environmenEal stinull become more 

meaníngful. and Eend Lo reinforce hf s decision. He becomes Less a.ttenEíve 

Eo compeElng informaEion and generall.y disEorEs such lnfornatlon if it ls 

f ecei.vedu 

The buyer, however, a.fEer atEaíning rouEinåzaEion of hls decisíonu 

may be aroused by the sf.mpl. lficatf.on of Ehe process due to monoEony or 

boredom, ConplicaEton of Ëhe decísion process ls then desirable, and Ehe 

1.,

cycle beglns once agaln coward resímptr 1fåcaEion of the decåsi.on processo 

Fígure X represenEs Ehe Eheory of buyer beha.vi.our as Howard and 

Shech (lSZL) diagramati.caX.ly represent lE" The Eheory ls composed of four 

seEs of conscrucEs or variabl.esS lnpuE variabl"ese hypoEheEicaL consErucEse 

exogenous variabn es and ouEput varlabl.es, The hypotheElca1 construcEs are 

at a hlgher Level. of absEract!.onu ...Èí'lhey glve a descripElon of, the 

buyerûs mentat sEaEe retra.Eed Eo a buylng decisíon and therefore map åE by 

ldenEifylng, classlfylng and LabeLltng varÍous condiclons.rû The Eheory 

f,ocuses on Ehe Eransmlsslon of a sEåmuLus trabetrl.ed ånpuEsr Ehrough a seÈ 

of, percepeual consEructs, Eo a seE of l-earnlng conserucEs whlch in Eurn 

creaEe ouEpubsu of wTlich one ls Ehe purcha,se decisåonu Learning and habåE 

formatf.on are inÈegratr to the processes lnvolved ln Ehe hypoEhettcal con: 

sgrucgs andu as such, subsEanELalX.y tncrease Ehe eomptrexity of the theory' 

through Ehe lncorporaEf.on of exogenous variables Ehe Eheory i,s beEter a.bl.e 

to represenE Ehe env!ronmenEal factors medíaËing on Ehe proeesses invo3.ved 

Ín Ehe purchase declsion. 

As a unlff.ed *hoLe the Eheory 1s perhaps Ehe besE representatÍ.on 

of Ehe multlEude of forces úrlch !.mpi.nge on Ehe purchase decÍ.síon" John 

Uu Far1ey and L. Vflnston Ríng (1970) have empiricaLty tesEed Ehe Howard and 

SheEh (1 969u p" 392) theory usf.ng e1even equatlons Eo deflne the sysEem" 

The EesE assumes l.ineariEv in Ehe model and uEtLi.zes a. mul.tip}e equaËÍ.on 

economeEric modeS.n The resuLEs of Ehe tesEs lndicated thaE improved daEa 

r,;llL be requLred for ¡nore precise work i"¡iEh Ehe model." The da.Ea used for 

the EesE was obtai.ned from consumer paneX. informaElon coL!.ecEed by 

J, Ho¡+ard at Columbf.a UniverslEy. 

n4

l. Quality 

2. Price 

3.0istincliveness 

{. Availatrìlity 

5. Service 

Sensitivily to 

lnlormalim 

Inp¡t-Out¡{¡l Fbw ot Inforneliø úd Elfoúl! 

a 

t 

I 

Tt 

I 

rTttP ll 

I 

I 

I 

i 

EXOGENOUS 

A T!-.¡EORY OF gUVTM BEå.{AVIOUR 

ric. I 

l¡llrs¡co ol Emgunoor Vai¿Ho 

Cì I 

I 

I 

I 

I 

'1 

oi I 

J I 

-l I 

,J 

L¡

This theorye as prevf.ousl.y sEa.Eedu ts at a medi,um trevel of formaS.åEy 

and as Tloward and SheEh (1969 s p" 3gZ) descrlbe ite ßIe can easi.Ly be sj.mul_ 

LaËed"Ée Ferry (1968) simuS.ated a model slmilar Eo Ehe cheorv deveLoped bv 

Howa,rd and SheËh Eo predict consumer brand choi.ce based on a latent demand. 

The goa,L of Ehe model. sla.s Eo predlct the sequence of changes !n the con- 

sumer0s attitude and seLf confidenceu The símulatlon modeL chosen wa.s a 

dynaml.c process type on Ehe micro LeveLu 

Thls sEudy !ilas accompLlshed under the direcEion of J. Iloward from 

co1umbia unLversiEyo the co-author of Tbe The-ogy gE Þpy_er Behagiol¡j:" The 

quanÈificatlon of the processes and feedback re3.ationships of Ehe modetr r*as 

diff ícuLt as tr itEtr e appl.icab3.e empi.ricatr evidence was avaiLabLe. This flecês- 

såtaEed the development of many and varled posEulaEês as Eo the processes and 

rel'aElonships i.nvolvedn The posEuS.aEes may be typlcalny descråbed as gener- 

aLT'y accepEed prlnciples among researchers but as yeE no conc1usive findings 

are availa.bLe Eo vaLidate their existence. As suchu they provlde a co¡vêñ,- 

ient starÈing polnE for the modelling of a dynamlc simul.aEion of ehe Eheorv 

of buyer behaviour. 

The systems dynamics methodology deve!.oped by Forrester (L968) ln 

associatlon with pugh (1970) nas severaL decided advantages over oEher tech_ 

niques when slmula.ting c1osed systems. this methodology forces the researcher 

to succincE1y defÍne feedback reLatíonshlps 1n a quaqL-quanElEaEive fashion 

beEween varlables' FurEhermoree ln definlng Ëhe boundarj.es of Ëhe system Ehe 

researcher f.s agai.n forced to deLlmi.E by defin$.ng Ehose varLabLes wtrích have 

cruciatr LnEeracti.ons wi.Ehin Ehe system and Ëhose r¡?rich are exogenous Lo Ehe 

sysEem" This nerhodology f.s hlghLy effecElve ån Í.nvestigating dynariri.c behav* 

iour properEles of cl,osed sysEems and faeif.i.taEes sensitivíty anaÌ.ysls of Ehe 

.Ë-o

sysËems0 parametersu Freci.sÍ.on and accuracy of re3.ationshlps may be sacrÍ- 

flced because of the constraf.nEs and LîmlEacions i.mposed on Ehe sysEern as 

lE f s def ínedr 1"€'e ln such large cornpl.ex systemse Ehe !-arge number of 

parameEers so resErai.n each otherg s performance EhaÈ large errors ïn stat- 

lng LndivlduaL relatlonshlps beEween varfabLes do noE signtflcanEly affecE 

Ehe sysEemo s perfof,rltâftcêe 

A retraced advantage ¡rhlch Ehl.s meEhodotogy offers 1s thaE decÍ.s!.ons 

or actî.ons may be conceptuaLtzed as dyna.mlc interactions raEher Ehan sf.mpl. l.- 

fied eges-nos u 0on-offe deelsions' the facE EhaE Ehis methodol.ogy encompas- 

ses Eime-varying ÍnEegraEtons of Ehese f!.or¿s Í,nto Level.s or pools puE !t at a 

declded advantage over other meEhodologles Í.n simulating sysEems whlch exhlblE 

t!.me varylng behaviour Ehrough feedback relaEionshlps. Of slgnlfåcance here 

ås the facE Ehat Howard and SheEh (lgZf) concinuously refer eo lndlviduåL 

buyer characEerisEf.cs as øl.evelsrÉ or ÉlsEates0s of Ehe system" Thls connoEes 

Chat a construcE such as moEi.ves nay be conceptuaLlzed as a basín of water 

with a Eap regulaELng the fl.ow ln and a drain regulatlng Ehe flov¡ out" 'the 

aggregaEe Level. of water ln the basin belng then funcEíonaLly rel.ated to Ehe 

raEe of waEer fl.owlng l,n and out" The sysEerns dsmamlcs meEhodology lncor- 

porates Ehis concepE lnEo the model.Llng of Ehe system under conslderaELonu 

ruhlch presenEs a declded advantage over other Eechniques, 

Flnallyu the facE LhaE Ehls technlque ls not consEraf,ned or n lmtEed 

Eo Linear reLa,Eionships beEween var!.ab3.es alds ín iEs appnicabf.1lty Eo such 

sysEems as buyer behaviour whlch generaLl.y exhåbåE non-tinear retaEi.onships 

beEween varlabl.es. 

LI

Bu THEORETTCAT TYPOLOGTES 

The stmuS.aEion Eechnåque of deserlb$ng buyer behavÍ.our syseems 

ls but one of Ëhe app3.{,cab1e Eeehn3,ques, OEher EeehnÍ.ques tnc}ude 

operatlons research and experf.menEatLon, 

tu 9peryrtions BSpSaqc! 

OperaEåons research has eontrtbuEed slgnlfÍ.cantl.y Eo Ëhe sEudy 

of buyer behavflour, the bul.k of 

the researeh, howeveru has been ln 

terms of fÍ.rsE order Markov ehaåns appl.f.ed Eo brand LoyalEy over t$meo 

these sEochasEåca or raÈher probab3.lståc, meËhods resc on Che 

assumpEåon that brand purchase behavlour å,s a f,å,rsE order sEaLåonary 

Markov Þrocess. 

Nåeosl,a ([966) polnts ouEs 

trl(nov*edge of Eomorrorsos behav$our å,s essenElal. for bulldf.ng 

any marketing and advertisång program, Much consumer research 

attempes Eo galn Ëhís krrowl.edge by extrapolaE!.ng past observa- 

Elons - Ehfs amounEs Eo rel.ylng on Ehe gvrlsdom of hl.ndsÍghEÉ @øø 

Markov chains algorlthms make f.t posslble Ëo use panel. daEa Eo 

observe the r¡trol.e system of relatLons among consumer purchases and 

brandsr and thus to assess the dSmarnlc Eendencles of Ëhe sysEem, 

AlEhough the sEress on the vrhole makes Ehls approach Lo predl,clion 

conceptuaS.l.y and pracEtcal.l.y nuch rlcher Èhan separate extrapol.a- 

El.ons of past sales of each brand, the predlcËion of Ehe staEe of 

the sysEem ls noE based on knowl.edge of the causal. mechanisms ehat 

determlne change ln the EransiElon probabÍ.l,lEles, simlLar Ëo curve 

fi.utÍ.ng Eo tlme-serl.es or trend datao appl*cat[ons of Markov chains 

Ëo panel. purchases &ssume Èhat the undertrying causal strucËure 

renal,ns Lnvarf.anE"se 

Õ3.ogyg 

l) aggr€seg_&99.i. 

Sheth (¡.967) has outlÍ.ned three major prob1ems rslth Ëhls meEhod- 

rsThe prob!.em of aggregaEåon arå.ses beeause of Ehe pracEi€e 

of usíng proporEf.ons of cusEomers purehaslng brand Í. as Ehe 

probabln.lty of each å.ndf.vidual. buyer buytng EhaE brand.et 

Í.8

2) rqqÊrpgrc3ass Té¡ne; 

såThe seeond probnem ari,ses because of bhe då.vers$.Ey of, Ëhe 

lndlvidual purchase cycl.es i.n a group of buyers, and Ehe lnevå.Eable 

discrepancy betraeen average purchase cyetr e and Ehe Ëine perlod 

chosen for Markov ana!.ysls. sÉ 

3) EsElmaEåon: 

{8The EhÍrd probLem of esEimaEÍon 

of Ehe preX.lmnnary esElnaËes obEatned 

naEåonatr popul.aEåon" dú 

re1ates Eo Ehe t¡tl.l.l,zaE1on 

from a samp}e Eo Ehe 

Some of Èhese difflcul.Eles have slnce been removed Èhrough modi- 

flcatÍ,ons of the Markov chal.ns. Howeveru Ehe prob!.erns of utsillzing 

sEochasEle meEhods Eo describe buyer behavå,our st!.ïn generally exåsE, 

A number of sEudåes have been made uË$Xlzing sEoehaseåc ana3.ysls Eo 

descrf.be the processes of buyer behavåour - Day (n965), HaLnes (Lg6g), 

Fyare (rg0¿)u LlpsEeln (1971.)u Kuen (3.973.)u Howard ([97x] and Day (ggZo), 

2" EgperiILenc.a-t3gg 

BxperimenEatåon refers Lo creaÈion of a conEro3.l.ed envtronmenE 

çúrerein the researcher maJr measure Ehe effecEs of changes ån the inde- 

pendent varlable on Ehe dependenÈ vari.ables" This bechnå.que has been 

uEllüzed exbensl.vetry ån adverÈi.sl,ng research buc 3's rel.ati.ve3.y new ån 

buyer behavlour' As a rul.ee Eh{.s meEhod Í,s desågned Largel.y to Eest ttre 

subsysEems of the buyer behavi,our mode3. and genera3.Ly must be X.Í.miged Eo 

a fes¡ varåables. 

3. Sf mr¡ngS3S¡S 

S$.muíaEíon has been lnEroduced to absorb Ëhe compl.exå.ty of sueh 

phenomenom as buyå.ng behavl.ouro Through r¡arlable manåpu3.aEÍon Ehe same 

effecEs can be achåeved as Ehrough experlrnenËacåon, However" mof,e vaf- 

10

Í.abtr es rnay be manl.putated aE a glven momene Eo monlEor the lmpacE on 

Ëhe enEtre sysEem. In addåtåon Eo the simul.aElon sËudå.es prevlor.asty 

nentíoned by ltrlcosla (1966) and Perry (1004¡ Ehere are ser¿eraL oËher 

noLeç¡orEhy sEudies Chat have been conrpS.eEed, 

Cook and t{erniter (1.971) have devel.oped a modei. cal.3.ed NOþû"IAD 

or 6úHol+ consumers Behavess whlch l.s a sirnulaElon mode!. of consumer 

behaviour' The mode!. is basi.ca3.1.y probabltsci.c agaln and identf.fles 

Ehe varlables affeeElng tr ow prlced consumer product purchases. The 

programr however, assumes a binary evenE Ín araareness and correspo¡.dångLy 

does noE Eake $.nto consl.deraEton ts1me-varylng sÈates of Ehe sysEem" 

BeEtnan (1971.) has attempted Eo foruulaee a sErucEure of 

eonsumer choåce processes by developlng an overa!.1 paradlgm of behav- 

$or. A conplex and a símple model. ls EesÈed and Ehey concLude EhaE Ehe 

eompl.ex decisl.on proeess model.s can be approxi,maËed !.argely by a more 

símpl.e nodel." Theyu however, fej.E Ehat Ehe coLlapsing of the complex 

model ínEo símple models is not aE all well undersEood and requ!.res 

more sEudy" 

slmuLaE{.on technl.ques appear to be the key to understanding 

compLex sysEems composed of many varlabl.es extrÍ.bltlng feedback rel.aEion- 

shf'ps' CompLex sysEems Eend Eo exhlbf.t counteri,nEultf.ve behavf.our over 

time f'n response Eo manåpulaEl.on of selected exogenous varl.ables" The 

sysEems dlmamlcs meEhodology provides a key to unl.ockÍng and exposíng 

these properEåes Ehrough the Eabul.a,Elon and graphlcaS. depieElon of Ehe 

variabLes over Èímeu The pÍ.ecing gogeEher of Ehe varÍ,ous subsysEens 

requÍ'res, however, a formall.zed queql-quantifl.ed deflnitíon of relation- 

shlps" Ihrough Ehe r¡se of Ëhe sysEens d5rnarnics meEhodology approxima_ 

2A

Llons of such rela.ELonshlps on a subsysËem basis can be made and 

sinun atsion aEtempEed Eo monf.Eor Ehe behav!,our" As adjusturents âre 

made !n relaEf,onshf.ps in response Eo expecEed beha.vlour paEterns on 

a subsysEem bas3,s, the Largere more compl.ex sysEen rnay be assembled and 

integrated through a netr¿ork of í,nterlocking relationships" 

The Eheory of buyer behavíour as presenEed by How'ard and SheEh 

(fOOe¡ has gaf.ned considerable accepcance in Ehe business cornmunf.Ey as 

expressed i,n a recent arEi.cle ln Buslness tr'leek (1970) r,¡hich gives a 

favorab1e revf.ew of Ehe Eheory ln perspecEive with other Eheor!.es. 

There are ner.I Eheorles contlnuaLly belng developed and new Labels Eo 

aEtach to Ehe neurophysicaL processes lvhleh exåst ln purchase behavi.our" 

Lawrence (leOO¡ u for instance, contends thaE purcha.se patËerns may be 

deslgnaEed as reversion, conversíon, vacå. 1.taEå.one and experlr¡enËaElon 

or Ehird brand ErÍ.an ' DespiLe Ehe minor modifåcaríonsu Ehe theory of 

buyer behavl.oure as proposed by Hor.rard and sheth (re6o¡, represents 

perhaps the mosE weI.l recognlzed general. theory of buyer behaviour that 

comprehensive!.y lnEegraLes the major faceEs of the processes lnvotrved,

C. rcDALS AND MODET"LTNG 

X, 4pprqgche.g gl F{gd.e13åns 

A ¡nodeX may be deflned as representabi.on of, reanâEy dnå,ch ås 

3.ess eneompassång Ëhan reatlby Í.EseX.f buf Í,s suff,l.eåenËl.y eompleËe 

Ëo appro:{$mate Ehe behav$our beång ånvesËSgaÈed, Several. appnoaehes 

€o model.l,lng have evol.ved ln the fl.el.d of, buyer behav$.our. 

Operat[ôns reseatreh has eonEr$.bL¡Eed stgnåflcant!.y Eo one approaeh 

Eo model!.ång. Sueh modeXs so deserÍ.bed may be eaEegorløed as sËoehasEåe 

or probabllståc models çrhích focus prlmarily on the ex€ernal behevå,our 

of a glven eonsumere These modeS.s have applted Markov analysis, 

Bernoul.tr å probab$.tr åEy Eh@ory and negative blnom$,an dåstråbutå,ons !n 

atEempEs t@ descråbe and predåeE Ehe behav3.o¡¡r of a gå.vm e@nsumer ôver 

E$'me" 

The !.å.m!.ËaEå,ons Eo Ehls epproaeh Eo mode3.!.$ng ane severe ån 

ehaE a3.¡. aEEempE Eo prødå,eE behavlour based on pasE aeei@ns and negnee8 

Ehe t¡nderl.ylng processes ånEernal to Ehe consumer@ AEEempts have been 

made Ës månåmåze Ehesê Í.lmlEaÈlonse as ehrough Sheehss (1967) faetor 

anal.ytte mode3. of buyer behavåour, l{owe\¡er, lE å,s sEt1l. n1¡nåEed to Ehe 

exbent Ch6e åC does noE expnaån behavl.our buE merely descråbes Ehe s&ñ@o 

ExpenlmenEa8üon represeRts a seco¡r.d approach Eo modelX.lng where- 

fn varlables and pars¡neEers are manåpu1a8ed and Èhe ouEeomes are exam$ned 

ån Ëhe !.$ght of the changes, Sueh an approaeh treaÈs Ëhe pnocesses 

in8ernaS. Eo the e@nsumer very nueh Ln terms of a úþb3.aek boxr3" thls 

approaeh 3.eads Eo assoeÍ,aEåon beËç¡een a speelfåc ånpr:t and a gtven ouEput 

neg[ectång and gå.vl.ng no expnanaEl.on Eo the eausal sequeneee As an, 

approaeh gE 1s 3.årcíted Ëo the msrxÍpu1aEå,on oÊ a f,ew var$,ables aE a eåmee 

z2

ffiReseareh meEhods do noE perrnåE associ,ating a greac number of, var- 

åables, t*tEh much l,nEeracElon and someEs.mes eonEradlcÈång effecË among 

them slmul.taneoustyusú (Perry, 1968), 

A Ehlrd approach wouLd be one wtrich desertbes ln an analyEical. 

fashåon Ehe relaElonship beEween Ehe {.npuEs and outpuEs, By app1yÍng a 

general Eheory Eo a spee{,flc så.Et¡atlon a prectse and ana}yÈlcal evalua- 

EÍon of Ehe consumer0 s acEions are generaEed, InEeracEåons beEween 

many varlab!.es and Èheories from severa¡. dfscÍpltnes are Ehus consj,dered, 

Modex.s whlch are esEablåshed based on thls parEi.euxar approach may be 

3.abel.Led as E behavloural process modetr se " 

2" Bçbev!-qr¡rqg l¡gggs_S UogeLS 

Most behavi.oural. proeess modeå.s devel.oped Ehus far ån ehe fleLd 

of buyer behavlour focus on a s$.ngne enemenE of the enEå.re proeesse Id- 

ea!,[y an ana}yElc model musË descrlbe Ehe rel.evenE processes Í,nvonved on 

a n$.ero lndividuaX. Level.u buE musE åE Èhe same tlme take f.nEo cons[dera- 

bÍ,on Ehe d3mamlcs of behaviour over t!.ne. À nodel descnåbed as sueFc 

may be formuïaEed eíEher 1n a quaX.f,EaElve or quanEibaEive fashi.on. 

A quaneÍEaÈlve ana1ytic mode3. çrfrlch deseribes Ehe processes ÍR 

germs of maEhemec$c43. rel.ablonshlps mereS.y provtdes a format lzatlon of 

Ehe quani.ËaLå,ve or verbaL model" 

Through quanElfi.caEl.onu Ehe verba3. retatåonshf.ps nust be clann- 

fled and sequent$atrLy deserlbed tn a prectse InênÍrêFø The addLEåon of 

Ehås precl,slon generarxy Leads to fnereased genera3.LEy of Ehe model" 

Furthermoreu wf.Eh the tnEroducEson of d$gåEal. eleeÈronåc compuEerse 

ana1ysls of eompnex modef.s far beyond human mental. capablll,b3.es !.s faeiL[- 

taÊed, and has beeone ånereasÍngty predomlnanE" 

23

D" 

åE 

COMPUTER STMUT,ATION OF MODELS 

4ppl._tseeieqg or cogpster g_4qqler lgg 

A computer slmutr aEion model , bef.ng an e]cpressLon of a 

mathemaEåcal behavlourax process modet u enjoys a!.I Ehose advanEages 

unÍ.que Eo quanE$,taÊ1ve, as opposed Eo qual.iËat$,ve, model.s" In addlEron 

stnulatåon mode!.s add the dimension of ti¡re Eo enabÍ.e a nore precÍse 

rep3. leaËlon of reatå,8y" 

Ferry (to0a¡ has ouE3.lned severan advanbages Õne ean expeeE 

votren ustng computer sl,mul.atlon rnodel.s Eo l,RvesEigaEe eonsumer behavl,our; 

uta) Express[ng a moden ln Ehe form of a compuËer program 

3.eads Eo systemaË$zaËÍon of Ehe verbar pnoposxtÍ.ons and Ehus 

aI.3.ows more adequaEe exp3.oraE{.sn of Ehe$.r loglca!. ånpÌ.l.caEl,ons 

and permi.Ès palred eomparf.sons among seEe of generallzaÊlons -comparåsons 

rdrå.eh may nog be obvåsusu gf,ven Ehe sLructure of 

verbaL f,ornulaEå,on" 

b) the very process of EranslaElon to progranmlng Xanguage 

forees sharper defånl.Ei.ons and more pree$se deserlpgåons of conponents 

and Ehe!.r relaElonshípsu Ehus help$ng Ëo reeognl.ze 

amblgulEies and lmpll,clE assumpEÍons i.n Ehe verba!. modet. 

e) Because of Che compuber€s sËep-by-sEep rnode of opera- 

Etonu tshe compxexl.Ey of the modetr Ls not a serå,ous obsEacleu 

A conpuËer program allo¡w one Eo hand!.e a very compnex sysEem 

wlEh many varåabl.es and many lnEeractions sÍ,mul.taneousl.y and 

Èhus frees one fron relylng on one-aÈ-a-Èime approaehes, wlth 

thelr restrlcc$ve requiremenEs EhaÈ al.l. oEher things be held 

consEantso 

d) the slmt¡X.atåon model ean serve &s a glaboratory for 

marlceËl.ng€ ' Assumptåons may be varÍ.ede parameEers may be changed, 

and Ehe dynamt.c effecE of these upon oEher components and upon 

Èhe system as a whole may be tesEed vyithouE Ehe deïays and ofEen 

e:corbl,EenE costs of rea3. låfe experåmenÈaEion. Greats nr¿mbers of 

changes may be EesEed, s{ng1y or ån eombå,natlon and fon any peri.od 

of time' A sensåtåvÍEy EesE" for Í.nsbanee, may dlscLose Ëhe 

relaEåve så,gnlflcanee of each varåable Eo ghe system and wln x. 

dlreeE fuEure researeh ãnd daeå gaEherång Eo Ëhe S.mportant onesË 

a sErategy EesL @o@ Ln drich managemenE deeision ru3.es ç¿1ln be 

ehanged øøø wÍt3. provlde nanagement a too!. to examåne the 

possf'b3.e ouEeorûes of eaeh of 3Es a!.EernaEåve sEraEegles; and so on,

e) The sf,mu1.ated sysEem may be made Eo operate quick1y 

through relaEivel.y X.ong perlods of si.muLated tlmeu Lhus 

diseloslng Erends and flucEuatLons ln ehe behaviour of Ehe 

system or any parE of lE, 

f) If the lnpub of the sinul.atlon ts concrete data on a 

specf.flc markeE íE can serve as a predlcEion Eool." In such 

casese part of Ehe lnpuE (e,g., Ehe parE Ehat ls under managemenË 

conErol) can be changed, and the possibl.e outcomes w[Ll 

be predlcEed"@ 

Slnu!.aElon of consumer behavlour has become Í,ncreastngtry predom- 

i,nante êogou Nf.cosia (1966)u l{aines (tOOO¡ and Perry (fg6g)u Eo Ehe exteng 

Ehat attentlon has been dlrected to the trndf.vLdual. consuming unit. 

.AnoEher reLevanE sEudyu not previousi.y cIËed, r¿as devel.oped by 

AnsEuEz (L967) " Thls slmuLaEion study !,s a eomprehensåve scheme which 

LnEegraEes and ÍncorporaEes almosE atl. sectors ån Ëhe chaÍ.n of d3.strlbu- 

tl.on, As such, $Es major sÈrengEh 3.ies 1n åes abíl.f.Ey Eo stmulate al.Eerna- 

Eåve markeElng sEraEegf.es and anaLyze Ehe consequent consumetr responseo 

2, TtJe PresenE lgyestigagi_on 

'Ihe presenE i.nvesElgaEion ls a sÍ.mul.aEíon sEudy on the mlcro 

i.ndåvl,dual. Levetr. ç¡hlch Í.ncorporaEes Ehe dynarnlcs of br:yer behavi.our over 

Eå,me" It is a model., but Is a comprehensf.ve scheme, tn EhaL lE i.ncorpor- 

atses and descrl.bes Ehe entïre process of a consumeros decisi.on-maktng" 

Ïn Ehe fol. l.owing ehapters a compuEer model of consumer behavl.our 

t¡il.L be developed based largeLy on Ehe theory proposed by Hovrard and SheEh 

(19ó9)' A verbal descríptÍ,on of the factors and processes trnvoLved witrl 

be presenEed and Ehen a quânEf.fied maEhemaEical deserlptlon ¡+13.3. be pro- 

posed" The model. wf.l.tr be assemb1ed, Ehrough Ehe lnEegraEton of the sub- 

sysEems of Ehe modetr u wlEh a neEr+ork of lnterl.ockl.ng relaElonships and 

25

såmunated Ehrough a dlgåEat compueer" Flnal.lyu Ehe model w111. be anaS.yzed 

and evaluaEed usf.ng sensiEivf ty ana}ysÍ.s. The by-producEs of t/nieh are 

hypotheses and lnsÍghts lnEo Èhe vatr ídiEy and rel.labå.li.Ey of the proposed 

mode3. as wel.L as f:he Howard and SheEh (1969) Eheory of buyer behavÍ.our" 

26

SUMMASY oE', TF1F TH_EORY 

l., the Need fg g The-ogy 

CHAPÎER TTI 

THE THEORY OF BUYER BEH.AVTOUR 

MarkeÈlng represents a total sysEem of actl.on or$,ented Eo¡sard 

Ëhe sati.sfactl.on of consumer needs and preferencesø the eonsumer ls but 

one subsystem of Ehis Larger system" The markeËer musE 3.earn more abouE 

the f.nEeractf.ons occurr{.ng wiËhln thls subsysLem åf he wS.shes Eo formu- 

Late more efflcÍ,enÈ and effectlve markeEÍ.ng sEraEegies, I'farketíng manage- 

mente in pl.annlng future sËraEeglesu musE be abf.e to predncE rühy che 

consumer wåltr buy and whlch parEtcu1ar producEs and quanei.Eles Ëhereof 

he wi}3. purchase. 

The analysü.s of eonsumer or buyer behavf.our ls Ehus an lntegra1 

e$.ement 1n the design and formulatlon of optl.na!. nac"kebing sErateg!,es, 

the obJecElve of all such anaLysiso beång Eo galn sufflcl.eng lnsight lngo 

Ehe processes of buylng beha.vtour so Ehac one can wlth some desree of 

validlty and rel.labiLtÈy predicE how a consuiler wil.n behave ln purchasf.ng 

a gf.ven producE" 

Hlstorical.l.yr Ehe focus in consumer behavlour has revolved around 

Eangibl.e fa.ctors such as treven of expendlture and popuS.atlon" The pattern 

of expendiEure of a gf.ven consumer 1s ln reali.ty merel.y the response or 

ouEput to a gåven sElmul.us. DaEa such as Ehts may be termed hisEorican 

daEa i.n EhaE lE f.s gaåned afËer the faeE" The markeEer may extrapo!.ate 

purchase behavtour based on pasE behav&our in order Eo predlcg, buts Ehere 

is no reason Eo bel.ieve Ehat pasE behavlour wi^1.1. ever repeaE 1Ësetf agaln.

This Eype of daEau beíng nargely based on socioeconomlc or demographic 

characEerlsElcsu 1s of ll.EEÍ.e vaLue when a marketer wlshes Eo predåec 

whl,ch producE or brand wlL3. be purchased, Such predlcEion requl.res 

greaÈer anal.ysls of consumer buying as çrel.3. as general. behaviour pagtêrnso 

MarkeËf.ng has looked to other disci.pllnes for exptanaElons of 

buyer behav!,ourr specificall.y Ehe behavioural scl.ences, PsychoLogyu 

socloLogyo soclal psychology and anthropology have added slgni.ftrcantty Eo 

Ehe understandl.ng of Lhe processes of consuner behav!,our" the soclal. 

sclences, however, have been prlmarily concerned wl.th behavlour genera].3.y 

and not wl,Eh consumer or buyer behavåour as suchn AEEempts have been made 

Eo f.i.nk empÍråcal. SnvesElgaEfons Ín Ehe behavioural. scåences Eo the predlc- 

Elon of eonsumer behavlour wlÈh some success buE Ehenr objecElves remai.n 

separate and dlsEincË. Today Ehere are more behavloural. sclentlsEs ËhaE 

recognløe Èhe lnterrelatlonships beEween busíness or markeElng probl.ems 

and the behavioural. sciences and Ehey are focuslng Ehe3.r efforts dlrecË1y 

on solvlng these probl.ems from an lntegraEed approachu 

The cLassical. approach to consumer behaviour has vi,ewed thê Dro- 

cesses Largel.y 1n terms of Ehe Pavlovlan sElmuLus-response paradlgn or 

rather the dÊblack box6r" The Eheory conceptuaLizes the consumer as a srbtrack 

boxsÉ whlch Ls subjecEed to exEernal sEf.mui.í and facEors, The consumer 

lnEerna}l.zes Ehese sEimul.f and responds by elEher purchaslng or noE purchas- 

ing che producE' the processes are dtagramaticalLy represenEed nn Flgure 2" 

The concepË of Ehe útb1ack boxrt l,s noE restrlcted to one disclp!. lne, 

buE raEher pervades many of them, In each d$.scl,p1ine a characteristÍc mode 

of behavlour i.s assumed such Ehat some ratlonale for behavlour exists" 

Some economlsEs wil.l typtcally assume that Ehe indivídual atEernpEs to 

eval.uaEe scínull tn tr lghE of Ehei.r cost and uElliEy, whereas some pbyeho- 

¿ö

sTt MUL US*_,__--*Þ" 

*q-XlE-ElSê-'ç- ;> 

5î1il'4UE-l 'i": 

ffi[-ACË( 

T'Í-'rE BLACK- ts'OX, S- Ft. P,'QR.A Ð E G M 

F¡G. 2 

RESPONSE 

¡.t 

\Ð

LoglsËs prefer to see indlvidua1s as rÈFreudÍ.an mençÞ motívated by ínner 

subjecrive feeLlngs sometlmes focused on sexuaL consi.deraEíons" 

The coneepEualLzatÍ.on of consumer behaviour Ln terms of a rublaek 

boxËr Ls but one way of vlew$ng behav!.our, Consumer behav!.our i.s mu1.Ei.- 

dinensional; agaln it ls a EoËal sysEem of acEion whl.ch cannot be explaíned 

by one behavíoural theory" 

the marketLng man musË aEEempE to conso1idaEe and lntegrate the 

varied and diverse disciplines lnto a cohesf.ve framevrork for Ehe predic- 

Eion of consumer behavf.ouru There ls to date no sEatistlcatrLy vaLfd nor 

reliabl.e modeL or framerqork of the processes lnherenE in Ehe sûbl-ack box0s, 

and Ehe markeEi.ng manager musE stiL3. rely heavf. ly on his own experåence, 

ånEul.tlon and judgement" 

J, A" Iloward and J" N" SheËh (fO0O¡ aetenpced to conson ldaEe and 

lnEegrate Ehe varlous discf.pXÍnes, concepEualtrzatlons and Ëheorles å,nEo 

a comprehenslve framework of buyer behavl.our. Their Eheory provl.des no 

conclusive Easwers buE does provlde a greaÈ deaL of lnsighE into the próu 

cesses lnherent fn the súblack boxs$" 

2o The Baslc Structure 

The Howard & Sheth (1969) Ëheory of buyer behavÍ.our i.s esseneialty 

a behavloural process model., The Eheory may be presented diagramaEícal.Ly 

as in Ff,gure 1" 

The Éheorv or modeL conslsts 

åaÞlSSø exgg.Sn!¡us varf,?bl.es, gg[pg!. 

of 4 sets of 

vari.ables and 

eonsErucEsS lnout varlgpchsg¡sel 

*EW'. 

30

INPUTS 

Signilicative 

l. Quality 

2. Price 

3. D¡stinctivefless 

1. Availability 

5. Service 

l. Qualitv 

2. tuice 

3. Dislinctiveness 

{. AYailability 

5. Service 

I 

! 

t___ 

Smsitivity t9 

Inforrnal¡m 

In¡li-Ouþut Flow of Inlormation erf, Elfects 

- -'r----j----, i --j 

Prc{ispositioo 

Feedbæk Elfects 

A]'HEORY OF BUYER. BE¡.{AVIOI,.'R 

: 

FIG. I 

OUTPUTS 

Purchase 

Behavior 

Inlluence of Exoganrs Variables 

ì I 

I 

I 

I 

I 

I 

-l 

&l 

I 

J I 

¡ 

I 

J 

tt 

It

The inpue-ouEpuE variables are Ehe most concreEe and Ehe funetÍonal 

reLaEionships among Ehem are more preciseS.y defíned, The hypoEheEiea!. 

consErucEs are a.bsLractions from real.ity and eorrespondlng!.y are noE 

concreEe}y definedo NeverEheless, Ehese variabl.es constiEuEe ç.¡traE 

lToward and SheEh (l0OO¡ refer Eo as rsthe hearE of Ehe EheoryÉe. The 

exogenous varåabnes are Ehe parameEers whlch descrf.be the naEure of Ehe 

marketu che buyer and his envi,ronmenE. They serve Eo move Ehe Eheory 

from gross generan.ltnes to speclfåcs concerning a gíven markeE segment. 

As such Ehey are noE lntegraL Eo Ehe deels!,on-makÍ.ng processu buE are key 

factors modf,fylng Ehe process. 

ïnplr_c VarSebleq: 

Ëhe ÏnpuE varÍ.ables are labelled ÉeIi,¡FUTSeo (eo ehe X.eft !n Flgure 

1)" These lnputs represenE Ehe sE$.muLå r+trich affece Ehe buyergs lncernaL 

characterisEics aE any given point !.n El,me" These stimu1i. are eLasslf ied 

as bef.ng eíther co¡ronerclal or socl,a!., The corcmerela!. sElmultr are Ehose 

sEimuli EhaE emanaEe from Ehe markettng activiËies of varlous ff,rms ¡*hf,ch 

are attemptlng Eo corûnunåcate Ëo Ëhe consumere The comnerc$.al sttmu!. 1 

åncl.ude signiff.cative as wel1. as symbotr lc sEÍmuL!, Signtrf lcaElve sgi.nu[! 

are defl.ned as Ehose sEimut.f. produced by ehe conrnercia1 actlvity of Ehe 

company ln displaying Ehe physl,cal brand as a toEax. enE$Ey, whereas €he 

symbo13,c sElmuli are defined as impersonaln exEernal sElmu1i produced by 

cor¡m¡erciaÏ. sågns to sËand for Ehe b¡fand" Such signs may be lÍ.ngui,stleu 

orEhographåe or påcEor{.atr " 

Each brand i.s deemed Eo have at LeasE 5 e!.emenÈs thaE are erucLatr 

Eo lEs existence, those belng - qua!. ltyu prLceu distlncEf.veness u ava,i1 - 

abitr i.Ey and servtce. These elemenEs are present Í.n boÈh the slgnnf icaElve 

as weln. as the symbo1.!e sEimull in varying proporEions, 

32

The socåai. envi.ronment whi.ch eonEains Ehe socåaX sEimuLÍ. 

rePresenEs al. 1 oEher stlmui.i oEher Ehan cornmercial. sEimulf.. The soeia!. 

sEimuLi are deflned as Ehose sEimulí which emanaEe from oEher peopleu 

partlcularl.y Ehe buyerss friends and reLatlves provi.di.ng lnforma.Èíon 

concerning Ehe producE cl.ass and brandu Such sEimul.i are characteri.zed 

as being f.ingulsËlc or non-3.ingulstÍc, 

The sun of Ehese sLlmul.i i.nEeracEíng over tåme represents Che 

Stlmul.us Display to v¡hich the buyer is exposed, The Ðlspl.ay ls defj.ned 

as a physicaL evenE Eo rshi.ch Ehe buyer is exposed and sËlrs or prods €he 

buyeru i's exEernaL to Ehe buyer and f.s assocíated çrlËh sensory processese 

These exEernan sÈåmu3.i musE be di.fferenEå.aeed from i.nternaL sElmui. I wtrlctr 

are creaÊed ån facE by Èhe excerna3. physÍcatr evenE" Contexguatr cues* 

belng those outslde of the SEimuX.us Dlspl.ay" 

$4gss+q!+s vg'q.!eÞ-lss : 

The exogenous varíabi.es are Label.!.ed exogenous i.n Ehe sense thaE 

no explanåELon is provided for Ehelr formaËlon and changen They represenE 

pasE infLuences as opposed Eo lnpuEs affecEing a current deeisi,on" Thev 

are designed primaritry for the analysis of data and Ëhe purposes of 

markeE segmenEaElonu The exogenous varLab}es and Ehel.r coneexEua!. meanins 

are as fol-!.orrs: (As shom in Ehe upper portion of Fi.gure tr..) 

a) Impog'E?ncs'_gf_ quEqhesq: is def lned as a variable in Ehe 

buyeres frame of reference Ehac corresponds Ëo !.ncensåEy of moE$.ves regard- 

ång a produet cXass. 

U) BgÊSgg3-{-gy-*Tgjlicsi âre defined a.s enduri.ng dispos!E!.ons or 

gual.lti,es of a person thaE accounE for hås relatlve consisgency !n emogion- 

aLu Eemperamental. and social behaviour" They are ÈraiEs thaE accounE for 

differences among peop!.e, 

33

c) FlnanclaL staEus: ls cleflned as the quanEiEy of funds Ehat a 

buyer expecEs Eo have aval.LabLe for expendlture on goods and servlces 

durÍ.ng some speci.f led Èlme perlod" 

d) Tlme-EEeÞeurs: ls deftned as Ehe i.nverse of, Ehe amount of Eåme 

Ëhe buyer has avallabl.e Eo perform Ehe behaviour 1nvol.vÍ.ng the purchase and 

consumption acts associated !üiEh a pa.rEtcul.ar product cLass and Ehe lnfor- 

maE!.on-seekíng that precedes the putrchase acE" 

e) goglaf -and orgÐLas_tional ,qeEElngc f.s def tned as f.nvoS.vlng Ewo 

separaEe buE c!.oseLy re!.ated ldeas. The socl.aL aspecE of Ehe seEtlng of the 

buyers s purcha.se and consumpEl.on acts ref er to Èhe cl-ose soci,a!. arrangemeng 

lmplled by Che Eerm ssreference groupsþo By the latter we mean any group raiEh 

dnlch the buyer ldenElfles and/or compares hlmsel.f eo sueh an exeene Ehat he 

tends Eo adopt Í.ts sEandards, aÈÈlEudes and behavlour as hís or,rr" This group 

1s sald to provlde a soclaL anchorlng for the buyer whereby hls brand judge- 

menEs and purchase and consurnption acts are LnfLuenced by Èhis relatlonshlp 

as well. as by other facEs he percelves" The rúorganizatíonalrs aspects of the 

purchase and consumpEion setElng refers Eo Ehe much more structured arrange- 

menÈ represenEed by such forrnal organf.zations as a companyô 

f) SociaL Cl.ass: is deflned as a descriptlon of Ehe cond!.tlon thaE 

soclety ls divtded into classese some of whlch are viewed by members of Ehe 

society as bei.ng more imporEant Ehan others, In a socíeEy these cl.asses can 

be ranked accordi.ng Eo Ehe víews of lEs members ås co Ehe vaLue of each c!.ass 

å.n Eerms of its conErf.butlon Eo Ehe socieEy as a whoLe" As impLÍed by the 

X.ife sEyle concepEu empirf.cal 3.ys 1E 1s sEated, Ehese cLasses â.re noE clearly 

dema.rcaEed buE lnsEead represent arbltrary cuEs across a contlnium of sEa.tus 

pos I Ef.ons " 

g) Cuilgq_q; is defined as a se!.ectlve manmade \"¡ay of respondlng to 

experlencesu eonstsEf.ng of paEEerns of beha,vf.our EransmLteed from Þerson to 

3&

person@ In generaS. it reftreeEs a sense of homogenelEy anong peopl.e bound 

together and separaEed from oEher sets of peop3.e by varíous physlcaL boundarÍ.esn 

Hypp tþçJ ! cFl,Ç-oslj¡ qrqqçg 

Th.e hypoEhetlcal. eonsErucEse as mencioned earLlere are more absEracte 

buE yeE lle at the hearE of Ehe Eheory, The consEruccs may be cLassÍfled 

aceordlng Eo Ekto classesu l) chose tnvolved with percepElon, and 1l) Ehose 

lnvol.ved wlEh tearnlng" 

Perceptua.l consErucEs serve Ehe funcLlon of lnformatlon processing 

whiLe Learning consErucEs serve Ehe funcEion of eoncepE formaEion" The tr¿o 

consÈrucEs nay be ouELined as foX.lowse 

PercepEuS.X. Co}.sgiucgss serve co process Ehe lncomlng süimu3.Í from Ehe 

three bas$.c sources menEi.oned earlf er, The percepeual conscrucEs ln Fl.gure L 

are !.) senslEivlty Eo trnformatÍ.ono 11) percepEual bias, anci lii) search for 

flnformaEton and are ouELlned as foLLows¡ 

i) Sens:f.liviþy_!q*Infor4aE!o:r: !s def i.ned as bhe openlng and ctrosing 

of sensory receptors v¡?rich concrol the inEake of lnformaEf.onu Thts behavfour 

ls manifesEed ín either perceptuat vigllance or defence. Theoretlcaltyg 

sensf.tlvicy Eo lnformatlon Ehen performs Ehe f$gate-keeperoû funcEion" ûnny if 

the stlmul.us 1s tn the moderaEe range of amblguÍty wfll the buyer pay aEten- 

Eion and freeLy absorb Ehe lnformatl.on. The more lnterestLng the lnformation, 

the more Likel.y the buyer ls Eo open up hls receptors ând pay atÈenElon. 

Interest being cogentl.y Lf.nked Eo Ehe leveL of motLvatf.on" 

tl) Þ_egggLE-Yjil ÞEAs; refers Èo the fact EhaE even Ehough f,nformatíon 

ma.y enter his mentan sEaEee he may acEuat:,y distorE f.E. He does th!.s Eo ma.ke 

the sLLmu3.i. congruent wi.Eh his frame of reference as determÍ.ned by the amounc 

of lnformaEion he already has stored, Thl.s percepEual phenomena descrlbed ls 

likeXy to be Less operaElve i.f Ehe lnformatLon ls received from Ehe buyerss 

socta1. environment, due to Èhe greaÈer credabl, l. l.Ey ascrlbed Eo Èhis souree" 

35

lig) 9g--egqh_for._snformaEion: refers Eo Ehose sËages r,yhere a buyer 

acEgveLy seeks Ínformatton" IE i.s ben åeved thaÈ there f.s T.ess disEorEíon 

when he active}y seeks such Í.nformaEion' This acE!.ve seeking of informa- 

Eion [s especlalLy acube when brand amblguity exisEsn Such amblgulEy is 

general.Ly retregaEed Eo Ehe exEensíve probLem-soX.ving sEage of Ehe decísíon- 

making proeess, 'fhe buyer r¿ill al.so acEivel.y seek lnformaElon when he has 

noE yeE rouEinlzed his purcha.se-decisíon Þrocessø Howeveru once hi.s 

rouEinized decision-making becomes bori.ng he wÍ. 1i. once again acEtvely seek 

i.nf ormation, 

L ejljin3 ns g)!r.9Equct s 

The learntrng consErucLs which serve bhe functlon of concepE 

formaEion eontaln Ehe fo1nowing caEegorf.ese a) MoElves - specific and non- 

spectf f.cu b) brand potenEla1. of evoked seEe c) declsion medÌ.aEors, 

d) predtsposåtlon toward Ehe brandsE e) lnhibiEorsu and f) sati.sfacEÍ.on" 

a) lfgllyegå are defined as Ehe lmpeEus to acEion. They refer 

Eo Ehe goa,Ls tn purchaslng a product class. The specåfic motives are 

cLoseX.y anchored Eo Ehe aEEríbutes of a producE c3.ass and as such become 

purchase criEerla. MoEives serve Èhe funcElon of rafslng Ehe buyerss 

s.ensory state and atEuning hlm Eo Ëhe i.npuEs" 

The non-speciflc moEives are trearned prlrnari.ny due Eo accuLEura- 

tion. '-lhe non-speclf ic moËives also contaln a hierarchy w!.thin Ehemsel.ves. 

b) Bren_q_pot-e:xLl.a] oq__eJokgd sst_r A buyeru famillar wiEh a 

produeÈ cl.ass has an evoked set of, aS.Eernatives Eo saE!.sfy hls moElves. 

Theref,oree Ehe eLemenEs of Ehe buyer0s evoked set constituEe some of Ehe 

brands Ehat make up the producE class. The specific brand conveys certaln 

meanlng incl.udlng f.Es poEenËtaL to satisfy h!.s moEives, Through Ehe 

Jb

process of learning the buyer stores knoi+l edge re.gardlng each brandss 

poLenElal of satisfying h$.s motives, 

c) Dggislo-n--mediaEor: The brand poEenElaL of each of ehe brands 

forns a pay-off maErÍxo The decísion nredi.aEors represenE the buyerss 

menEatr runes for matchlng Ehe alternatives wlch hts rnoElves" The 

decisïon medLators Ehus represenE enduring cognitive rul.es esEabllshed 

through i.earnlng to maEch brands and moti.vations" 

EssenEiaLLyu there are two sources of xearning - i) actuat 

experience r+lEh Ehe brand and f.ï) informatLon about Ehe bra.nd" Learnlns 

cân occur Ehrough genera}Ízatlon from acEuaL experíences or Ehrough sEimu1i 

generaËed from Lhe buyerßs commerclaL or socla.L enviroïrmenc" 

¿) ry.ç,{iS"gggå.q"åg$? !.s defined as Ehe summary eff,ecr of Ehe prev- 

lous Èhree consEructs. It refers Eo Ehe buyerr s preference Ëosrard brands 

ln his evoked set" The uncerEa$.n aspect of pred!.sposåEi.on can be ca1ted 

Brand Ambíguitsyu i.n thaE Ehe more conf,idenE he holds trtu Èhe less ambigu- 

ous ís the connati,ve meaning of the brand Eo the buyer and the more l, lke1y 

he ås Eo buy i.E. 

e) iüiÞitosç8 are defined as forces ln Ehe envíronmenc v¡?rich 

crea.te disruptive i.nfLuences i.n ehe actual purchase of a brand even rqhen 

Ehe buyer has rea.soned EhaE Ehe brand has the poEentíaL Eo saElsfy his 

moEi.vesu 

Hor,¡ard and SheEh (f 0Oe¡ posÈuLate thaÈ there are aE LeasE f,our 

types of inhiblgorse Ehose beíng l) frigtr priee of the brandu 1i.) 3.ack of 

ava1Lab11.!.ty of Ehe brand, ii.i) time pressure on Ehe buyer and f.v) Ehe 

buyeres flnanciaL sEaEus" AlI four facEors beíng cruci.aL Eo the finaL 

purchase deei.sf.on. The inh$.bítors may perslst for i.ong perlods of tlme 

but never become inEernallzed. 

.5 I

f) SatnsfacEion: is defíned as Ehe degree of congruence betr.¡een 

Ehe actuaL consequences from purchase and consumpËion of a brand and what 

T,{as expecEed from 1C by Ehe buyer at Ehe Eime of purchase" 

ïf Ehe outcome is adjudged as tressu Ehe buyer v¡åI.tr be dÍssaÈis- 

ff.ed and his attiEude toward the brand rEíLL be less favorabLe. ïf Í.8 is 

more sati.sfacEory Ehan expectedu the buyer wllL enhance Ehe atEracEive- 

ness of the brand. Therefore saEtsfacEion mav affecE Ehe orderlng of the 

brands in the evoked set. 

-gp-qpuç*Yar! a}*leq 

There exists a varleEy of 

decisi.on-maklng process r¿hich are 

lng sEraEegy, Most of Ehe outpuc 

and noE Eo other construcEs" They 

c) attlEudeÉ, d) LnEenEf.on Eo buys 

a) Atjentiol? å îs retaeed 

deffned as a response of Ehe buver 

inf orrna.Ëi on inEakeu 

buyer responses on ouepuEs from the 

rei-evanE for diÊferenE areas of markeE- 

variabLes are reLated dlrecEtry to some 

areB a) aEEentione u b) eomprehenslorfn 

, and e) purchasen 

to sensiElvíEy Eo lnformation, It i.s 

whlch índicaEes Ehe magnttude of his 

b) -Compqelenslone: Ís defined as Ëhe sEore of knowLedge about che 

brand EhaE Ehe buyer possesses aE any poinE in time. Thïs varies from 

simpi.e avrareness Eo compl.ete knowl.edge of Ehe brand buE Lacks the moElva- 

ElonaL aspecEs of beha.viour" 

c) ALLltudee r ís defi.ned as Ehe buyere s evaluaEion of Ehe brande s 

poEenclal Eo satlsfy hÍ.s inon$.ves. AtEiEude ís dírectly relaEed Eo pre- 

disposïEíon and so consisEs of both the evaLuaEion of a brand i,n Eerms of 

Ehe crl.teri.a of cholce from medlator and Ehe confldence r,¡iEh which thaf 

eval.uati.on is he1d' 

38

a) -Ipq-enqiqry gq qggi !s defíned as the buyerts forecast of hts 

brand choÍ.ce some Ef.me in Ehe futuren It may be summarízed as somethlng 

shorE of actual. purchase behavlouru 

e) Purchase: is deflned as the overE acÈ of purchasf"ng a brand. 

ïC is the overt mani.festation of the buver€s 

r-iïth any tnhLbl.cors Ëhag may be presenE. 

3. Tþe BaSiç ProceAses 

39 

predi.sposltlon 3.n conjunctÍ.on 

lTonard and Sheth (1969) sEaËe Ehat much o€ buyíng behavlour f.s 

more or Less repeEiElve brand chof.ce deciså.ons" Duríng hls tr ife cycl.eu 

Êhe buyer establ.ishes purchase cycLes for varlous producEs, whtch deEermi.ne 

how ofEen he wtI. l. buy Ehe producEs, For some pnoducEse Ehls cycle Í.s very 

S.engEhyr fon exampne, the LnfrequenE buyÍ.ng of durabS.e appl.3.ances" Thene å.su 

however, i.nvarlabLy tshe eLemenE of repeat buylng ÌdhaEever Ehe purchase 

cyc!. e. 

In the face of repet!.tl.ve bra.nd chof.ce decÍ.si.onso the eonsuner 

slmpl. lf les his decision process by storlng rel-evanË lnformatlon and rouçín- 

Í.zlng Ehe decislon process, 

The buytrng process begi.ns wíEh Ehe brand choice decísionu given 

Ehat the buyer is moElvated Eo buy a product, The eLements of hts decL- 

sion e.re 1) a seE of moEiveso 2) al.ternacive brandsu and 3) choice cri.Eeria 

by wktich Ehe moEi.ves a.re ma.Eched wíEh the al Eernatlves" Ì.{oEÍ.ves are re]"e- 

vanE and sometf,mes specf.fle Eo a. producE classu and they may combine Eo 

ref LecE some sma1.X"er number of hleher-ordered moElves. The aLEernati.ve 

courses of a.cEions are the varLous brands as weLl as the3.r potenÈi.al Ëo 

saEisfy Ehe buyerss moEÍves" the brands thae become alternatl.ves Eo Ehe 

buyerts choice decÍ.slon are generatl,y a smaLL numbere col. l.ecEively ca.LLed

hi.s ünevoked seEçr, 'lhe si.ze of the evoked seE !s aE bese a fracti.on of Ehe 

brands Ehat he f.s ar+are of and a sEi. 11 smaLLer fracEíon of the totaL number 

of brands Ehat are acEua}ly avaíLab1.e in che markeEu The cholce criÈeria 

maEch the buyer0s noEíves and his means of satlsfying the motives" They 

serve Ehe functlon of orderlng and sEructuring Lhe moElves. Th-e ehoi.ce 

crf.Eeria develop by a process of Learning about Ehe buyln¡5 situation. 

l'Jhen Ehe buyer ls jusE beginnÍ.ng Eo purchase a product ctass, such 

a.s ma.king a purchase requlred by a change ln Ehe stage of hls Llfe cycl.eu 

he Lacks expertence; he has nei.Eher røell-deflned chotce crf.Eería nor any 

knowtredge of Ehe va.rlous brands and Eheir pocenEla1, Heu Ëhereforeu 

acEively seeks i.nformation from hís commerciaL and soci.aL envlronmenEs. 

The f.nformaEion Ehât he seeks or even accidênEall.y reeeives 1s subjecËed to 

percepEual processes EhaE not onl.y tr lnrlE Ehe intake (magni.cude) of infor- 

matlon but modify lË Èo sul.t hls or¡n frame of reference" 

Aïong ¡+iEh acElve search for LnformaEiono Ehe buyer lnaye Eo â 

consi.dera.bl.e exten€a generalíze frorn slmiLar experlences in the pasE. 

WhaEever the sourceu the buyer devetops sufficf.ent choLce criterf.a 

to ena,bÏ.e hin Eo choose a brand EhaE seems bo have Ehe best potential for 

satisfylng hts moEi.ves. If Ehe brand proves saElsfacËorye Ehe poEentlal 

of chaE brand ls Lncreased. Wf.th repeaEed saEi.sfactory purchases of one 

or more brandss Ehe buyer learns about buying Ln Ehat situation" IE is 

even probabl.e thaE he may manlfesÈ a rouEinized declsion process whereby 

Ehe sequential. steps ín buy!.ng are r"¡ell structured so thaE some evenÈ Ehat 

Eriggers Ehe process may actuaLLy compLete Ehe cholce decision. RouEln- 

lzed purchasing lmpn ies thaE the choíce criEería are weLl. establ.!shed and 

EhaE the buyer has strong brand preferences" 

/'.t

The phase of repetiËåve declsf.on makl.ngu in whf ch. Ehe buyer re- 

duces Che compi.eNåEy of a buylng slEuaElon r¿lËh Ehe heLp of f,nformaE3.on 

and exper!enee, !.s caLLed the nsychoLogy of simpn $.f åeaEion" 

The farEher he ïs along ln sfmptr lfying hi.s envlronmenE, Èhe !.ess 

Ls hås Èendeney Eoward acEíve search behav3,our. Furthermore" the env!.ron- 

mentaL sElmuX.l reLaÈed to Ëhe purchase slEuaÊion become more meanf.ngful 

and less ambtguous' Finallyu Ehe buyer esËabl.lshes more cognl.tlve con- 

sistency among Ehe brands as he moves Eoward rouEf.nlzatlonu and Ehe lncom- 

ing informaËì.on is Ehen screened wiÈh regard Eo boEh its magniEude and lÈs 

qualf.Ey" He becomes !.ess atEenÈive Eo st!.mu!.! EhaE do not fiË hts cosnit$.ve 

strueLure and he dLsEorEs Ehose sEinuL! Ehac are forced on h[m. 

A surpríslng phenomenon ås saîd to oceur ln many $.nsEanees of 

frequenÈ3.y purehased produetsu such as groeery and personal. care i.Eems. 

The buyer, afEer aEEalnlng rouEi.nf.zaElon of his declslon process" may find 

hlmseX.f, ln Eoo såmptre a si.Euation, He is n ikely Eo feel- monoEony or bore- 

dorn associâ.Eed ¡qiEh such repeEiti.ve deci.si.on maklng" Its ts al.so very llketry 

Ehat he !s saEÍ,ated r¡1 Eh even the most preferred brand" In boEh cases, h.e 

nay consider aLL exisEíng al.Eernatives lncl.uding the preferred brand to be 

unacceptabLe. Heu Eherefore, feels a need Eo compli.cate hls buylng slEua- 

tlon by conslderi,ng new brandso and thls process can be catled Ehe psychol.- 

ogy of eomplicatton" The new sítuaÈion causes hlm Eo search for ïdenEiEy 

wiEh a neç¡ brand, and so he begins agafn Eo slmp1lfy in the manner descri.bed 

earLieru Thus r.víth a frequentLy purchased i.Eemu buyf.ng ås a eontinuing 

Proeess wiÈh ics ups and dovms ån terms of lnformaEion seekl.ngu ananogous 

Eo Ehe fami3.lar cycl.lcaL flucaEíons Í.n economic acElvlEy, 

ìi,, 

li i1 

Ìi\ 

',ì\ 

4!_

L-. 4ssqmpçjq4ç 

Hor¿ard and SheEh (1969) refer Ëo Eheir modei. as oúThe Theory of 

Buyer Behaviour'r, This 1s undoubEedly some'r+hat of a misnomer !n that ít 

has noE yet been proven to be sEaËlsEicaLl.y vai.f.d and a reLlabLe fndlca- 

tor of buyer behavlour" ïE may be suggesEed that a more appropriaEe 

EltLe for the book wou!.d be ÉeA Theory of Buyer BehavlourúÉ. One musE 

recogni.ze Ehat even Ehough Ehls Eheory may be genera}l.y accepted as Ehe 

most comprehensive Eheory developed to datee oEher Êheorl.es do exist ËhaE 

may be, Ín facË, more vaLld and reLiabLe lndicaEors of buyer behavlour 

Ehan Ëhe one r,ftich Ls presenttry befng dlscussed" 

A fundamenEal. a.ssumptlon Lyi.ng behlnd the enEíre Eheory ls thaE 

Ehere is a general. process by which buyersu both lndusErial and consumere 

behave and purchase producEs and servi.ces' Once one accepLs the premise 

howeveru Ehat chere Ls some Log!.c or ratíonatre behind a3.3. behavlouru 

wheEher one terms íC as belng raEional or Lrratlonale the fundamental 

assumption becomes easier to accept. 

Michael Ferry (fOOO¡ has símu!.aEed a modeL very simllar to AmstuÈzs 

consumer model. and has outlíned flve maJor premises wtrÍch 1!.e at the core 

of his model. iE may be contended Ehat Ehese same five premises are funda- 

menEal Eo the Horqard and Sheth modeL of consumer behavlour" Thev are as 

fol Lows c 

a) ¿t any given poínt ln time a consumer has pa.rticular noEives and 

aEtiEudes, indicatf.ng hls orienEation and preference tor,¡ard any producE or 

brand in the market" This tncludes uutndi,ff erencere or rrnulltiç aEEtEude, Ehe 

laEEer meaning he has never heard of the produeE" 

U) 'fne atEåEude may or may noE be importanE for Ehe consumeres behav- 

iour, dependlng on his confidence in hls abíllty co judge the producE or the 

re]. evanE brands. 

42

c) The consumerts moEives, atEitude and sel.f-conff.dence may change 

as a resuXt of receivi.ng lnformaEion abouE the producE or the relatfve brands, 

d) Motlves, aEEiEude and self-confldence are the rnaJor deÈermlnants 

of Èhe consumer€s lntentlon Eo buyu and thus a ehange In them is most Llke1y 

Èo cause a. change in hls fnEenEl.on" 

e) The consumerss inEentlon to buy wltrI l.ead hl.m Eo purchase untr.ess 

Ehere are some consEraints on hls fncention, such as prlce and avall.abiX.lEy" 

These fi,ve prernl.se are aLso predtcated upon Ehe assumpElon Ehat 

Ehe hypoEhetical. consErucEs out!.Í.ned ln the Hoçmrd and SheEh srThe Theory of 

Buyer Behavi.ourffi do exî.sE eåEher in physieatr and neurox.oglcat facE, 

Many Eheorles from many dÍ.seipI.1nes have been pleced Eogegher Eo 

bt¡f'X'd the structure and å.nEegraEe Ehe subsysgems into the basle processese 

yet Ehere exlsEs no factuatr daca Eo supporE these theorÍ,es and Ehelr {nEer- 

rel'ationshÍ.ps" DespiEe Ehe assumpELons and premisesu i.nnate ln Èhe Eheory 

there I's stiln conslderab}e credence to vlewlng buyer behavi.our from Ehe 

micro I'evel. In thfs way one can gaf.n greaEer inslghË fnto the subsysÈems 

comprlsing Èhe theory and Ehe naEure of lEs overaLl behavi.our when vler.¡ed as 

a totatr sysÈem of acElon. 

The fol.l.owlng chapEer w1tr.l. atEempE Eo outi.ine the baslc sErucgura!.u 

functlona!. and feedback rel.aEÍ,onshlps inherenE ln the Howard and SheËh Theory 

of Buyer Behaviour" Furthermoree the concepE of systems dynamics modeltr f.ng 

wil3' be !,nËroduced, aE ¡qtrich polnt Ehe general Eheory r.rln l be broken aparg on 

a subsystem basÍ.s and presented accordlng to Ehe sysEems dynam$,es meEhodoLogy,

CHAPTER TV 

THE MODÉLLTNG OF A THEORY 

A' The Hoçrard and SheEh Model Redef!.ned 

The baslc structure of the Howard and Sheth Eheory as ouE1lned !n 

Figure L rematns unchanged, Horsever, Eo beEter l.llusÈrate Ehe preclse and 

eompLex relatlonships which have been postulaLedu an attempE has been made 

Eo lntegraÈe Ehese processes into a slngle fLow chart" Flgure 3 f.s a dla- 

gramaEÍ.c represenEaElon (fl.ow chart) of Ehe basle strucburee processes and 

feedback re1aEl.onshtps lnherenE !n Ehe model." 

a) ExE9E3ê1 Stirnul.l Subsysgrm (INPUT) 

the lnputs are broken dowr lnEo 2 basl.c componentså Ehe fl.rm and Ehe 

envtronmenÈe whtch corresponds dlrecEny to Ehe eournerctal. and socåat sËirnu3. l. 

respecEf.velyr as ouEX.{.ned previously" The firm maf.nEaf.ns eonEro!. over Ehe 

slgnÍf lcaElve and sy:nboLl.c stímr¡li. lnpuEs. Specf.flca!.lyu the f Srm has controtr 

over Ëhe qua3.lEy, prlceu dÍstlnct!.venessu servLceu and avaf.trab!11Ey of Ehe 

product or service ¡+hl.ch it ts offering" In essence, Ehls corresponds some- 

t¡haE Eo Ehe marketi.ng m!,x (exct,uding servl.ce) ttraC a parEicular flrm main¡alns 

control overe tn sÈra.tegy formulaEÍon" 

The four etemenEs of the markeElng ml.x may be equated as foLl.or+s: 

producE and quallEy (service)u pråce and prlce, promotl.on and disÈtrncEÍ.venesse 

and pl.ace and aval.labi.líEy" 

The envlronmenE si.mp1y conslsts of a3.n socÍ.eEaL groupe Lhe fami.Ly, 

Ehe reference group and Ehe socl.aL ctr.ass Eo v¡hl.ch Ehe buyer betr.ongs" These 

three forces Í.nteract Eo produce a sLngle sfimull ånput nabeLtred tsoc!.a3. 

stimul. i. s ,

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REFERENCE GROUPs 

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The oucpuË of, Ehe exEernal. sEtmuLf. is a, sf.ngl.e mu3.tid1mens$.ona1. foree 

call.ed SElmuXus DlspÌ.ayr (not LabeLLed on Flgure 3)" Thls foree is diagram- 

aEåca¡.Iy represenEed by the convergence of Ehree l.lnes ac one poing and being 

direcged Eo Ehe reetangn e label.3.ed ,úATTENTION,¡'. 

b) ElçogsæÆ V3gå-eb.}-Ë sgÞeyågeg 

'Ihe exogenous variables (trabeL1ed Eo the upper porElon of Figure 3) 

remai.n lnEacE as ln Flgure X.. However, thetr lnEeracElon wleh oeher varÍ,abl,es 

ån the system å,s represented by dírecE I.lne (- rel.atlonships. 

ImporEance of purchase has 2 dlrecE funcEÍ.ona1. re!.atlonsh!,pså lmporg- 

ance of purcha.se dårect3.y !.nfl.uences Ehe degree of overt seareh (search for 

lnformauion) as wel.X. as Ehe degree of brand conprehenslon" 

Cul.Eure has 4 dîrect funcEtonatr re1aElonshlps; Ëhose being wlEh Ehe 

moËÍ.\¡es Levetr e Ëhe degree of brand comprehenstonu Ehe atelEude of Ehe buyer 

toward Ehe producE and hls i.ntenEåon Eo purehase Ehe product" 

Socå.a3. cX.ass exhlbl.Ës the same 4 dl,rect funcElonal reLaEionshlps wíth 

moElvesu aEËítudeu brand comprehenston and intenElon Eo purchase. 

Personal.!Ey exhî.btts a dtrect funeEf.onatr relatlonshlp wlch Ëhe X.eve!. 

of overE searchu Ëhe Level. of moEl.ves, aEtitude and the degree of brand com- 

prehensf.on" 

The soc3.al and organizat{.onaL setElng eNhlbits 4 direcÈ functåonal 

re}aEÍ.onshi.ps. the relatlonships are v¡t th Ehe degree of brand comprehensi.onu 

Ëhe Level of aLtiEude, Lhe teveL of moË!.ves and Ehe ånEenEion Lo purchase. 

The 3.ast exogenous varlabS.eu f inaneial sEatuse al.so exhåbtts onty 2 

di.recE funcElonal rel.atflonshf.psu one wlEh Ehe leveL of moË$.ves and Ehe oÈher 

¡vlEh ånEenLlon Eo purchase" 

c ) Perqepllgn- sgb_sysEem 

The perceptual. subsysEem 1s bas[ca1I.y composed of 4 varlabl.es Labelnedn 

t+6

OverE Search, AEEentåon, FercepEua3. Blas and SEÍmu1.r.ls Arnbiguity, (See 

Flgure 3)' their reLaEfonshåps may be outLl¡red as foltroç¡s: 

Overt seareh does noE mainEaÍn a direcE functionatr (input-ouLpuc) 

relationshlp wåEh any oeher variabLe ín Ehe sysEeme ocher Ehan ståmuLus ambi- 

gulEy. IÈ 1s affecEed by the exogenous va.rlables of lmportance of purchase, 

tlme pressure and Ehe personat lEy tra!.ts of the buyer" It is also affecÈed 

by the leve!. of noElves or needs of the !.ndlvldual. buyer. The Level. of overE 

search feeds backr howeveru and lnfLuences Ehe externa1. sE!.mutI (!nput), and 

aLso feeds back Èo infS.uence Èhe buyergs tr.eveL of aËEenEÍ.on wlEh respect co 

exEerna1 stlmul.1" 

The i.evel. of aEcencion reguLaËes ghe f1.ow of exEerna1 sEî.muLÍ, f.nEo 

Ehe lndfvf,dual. and as such i.s ånfluenced by the level of overE seareh and Ehe 

degree of sElrnulus ambf.gulty. 

Stlmunus arnblguf.ty affecEs the degree of aEEenLlveness a gÍven buyer 

dísplays' The aurblguÍ.ty beîng proportiona3. Eo the f,trocr of externaL sti.mult 

forced on Ehe buyer' Stlmulus amblgulEy al.so feeds back to affecu Ëhe !.eve1 

of motf,ves or need level. of Ehe buyer, and ån some respecËs may modify Ehe 

exEernal lnpuEs ghrough perceptual bi.as. 

PercepEual blase Ehe fourth varlable ln Ehe percepcuas. subsystem 1s 

the keyu ln ÈhaE even though a gíven sEl.mu1us may have entered the indf.vlduaS.u 

the stlmulus may be sLit L dÍsËorted. The degree of perceptual bias is affected 

by che aEËiËude of Ehe buyer tor'rard Ehe product and che current Level of 

motåves, 

¿) LearIr$ng SubsysEeg 

The Learnlng subsystem ås composed of 7 variab}es or hypoEhetical 

eonstrueEs lñlch atre funcElonal3,y ne3.ated Lo one anoEher and Eo Ehe ougpuL 

vari.a.bl.es" 

4r

þfotives a.re funcElonal.Iy rel.aEed Eo Ehe exEernal stlmuli wtråch have 

been å,nEetnal lzed by the 3.ndl.vi.dual" The exogenous varf.abtres of cutr.Euree 

soclal. eLasse personal-tEyu soci,al and organizaElonaL seEEtng and f fnancåa3. 

sEatus aLtr have an Lmportant beartRg on Ehe formaElon of moEives" Ffoti.ves 

can be devef.oped as such Ehrough external stlmutí or may be aroused repeEl- 

ElveLy through habLË formaElon and Learnlng, 

Cho$,ce crlEeria are developed Èhrough Ehe formatí.on of moËives and 

the stlmulL whfch are lnEernal.trzed by the buyer" Satisfactlon ¡aiEh purchase 

witL atr.so serve Eo reÍ.nforee the Level of cholce cnítería. 

Brand comprehenslon 1s dlrectLy related to Èhe stlmul.Í, lnterna1ízed 

by che buyer. the Level of brand comprehension i.s aLso lnfLuenced by Ehe 

exogenous variables of lmporLance of purchaseu cul.Eureu soclal. c1.ass" soeial 

and organlzaElonal. setEûng and pensonalLEy, The degree of sati.sfaction rslLh 

purchase wil. 1. a3.so serve Èo reånforce Ehe 3.even of, brand eomprehens$on" 

Atcitude is di.rectly retaEed Eo the Levels of brand comprehensíon 

and chol.ce critería establlshed by the buyer" AtEÍ.Eude 1s also influenced by 

Ehe exogenous varl.abtr.es of cuS.Euree personalnEye social. and organlzational. 

relaEionshlp to satlsfacti.on wlth purchase" 

IntenEion is directly re!.ated to 3 varlabtres, aEEltude, confi.dencee 

and the sEimul.l tnEernaLlzed by Ehe buyenu IntenÈl.on is al.so Í.ndirectl.y re- 

LaÈed to saEisfaction from prevíous purchasesu A nr:mber of exogenous var- 

labLes serve as posslbl.e inhlblEors Eo purchase; Lhose belnge cul.Ëureu socía3. 

and organlzatsåonal seEEf.ng, soc1a3. enassu ti.rne pressuree and f,ínanclal staeus, 

Sa.tlsfacEíonu the l.a.st varlable Ln the LearnÍng subsysEem i.s not 

dírectly reLaËed to any varlabLes but mainEatns an indirecE rel.aEionshíp 

lhrough feedback from Ehe acE of purchaseo 

/,4

e) qlrtpuE SuÞsysEsm 

The ouEpuE subsysEem f.s composed of 5 varlables whlch are prímar- 

1Ì.y reLated Eo one another but åre exEenslons of hypotheElcaL construcEs 

*¡tEhf.n Ehe X.earni.ng and percepEual subsysEems, The 5 variabl.es being; 

aËEentlonc r brand comprehension0 e aEEl,Eudes e lnËentlono and purchase0, 

AtEenEione ls deflned as a response of Ehe buyer th.at lndicaEes Ehe 

magnlEude of hís lnforma.Eion lnEake. A,EtenEton malnEalns an indi.recE func- 

tlonaL rel.aElonship Eo atEituden, and funcElonal.ly affecEs brand conpre- 

henslone . 

Brand comprehenslons 1s deflned as Ehe buyeres verba.L staËemenE 

abouE hns knownedge of brands in a products eÍ-ass, Brand comprehenslons a3.so 

mal,nEaíns an lndLrecE tunctLonaL reLa.ElonshiD Eo aEtf.Eudee as wel1. as func- 

EionalLy affecElng attf.Eudee . 

^4EtlEudeo 

f s def trned as Ehe buyerss verbal eval.uation of a brandes 

poEenEial Ëo satlsfy hi.s moEÍvesu his descripElon of Ehe connotaEl.ve meaning 

of a brandu .{tEiEudee malnEains an Lndl.rect funcÈLonal rel.aEionship Eo pur- 

chaseg u brand comprehensíono and aEtentione whil.e âE the same tlme funcÈi.on- 

al.Ly af fectlng lntenElons, 

InÈentionr 1s deflned a.s Ehe buyerss expectaË1on expressed verbaLLy 

EhaEe glven hLs informaElon abouE atrl. aspecEs of a buylng sltuatf.on and his 

predicEion abouE the future statsus of Ehe environment, he will buy the brand 

he Llkes mosÈ Ehe nexE cf.me he 1s mottvated to buy. Incentiont maÍ.ntaLns an 

SndirecE funcE!,onaL reLaEîonship Ëo purchase çahLLe at Ehe same ti,me fu¡"ucEion- 

al. l.y affecElng purchases " 

Furchasee u Ehe f inal varlabl.e ¡vlËhln Ehe ouEput subsysËen, Is deff.ned 

as Ehe overE acÈ of purchaslng a brand" PurchaserX.lnks Ehe ouEput subsysÈem 

Eo Ehe hypoEheEåcaL construccs by way of Èhe variabLe fneenÈlon Eo purchase, 

¿tq

Hotreveru v'rLEhln Ehe outpuE sybsyseem !E trs funcbLonal. l.y affecged by lngen- 

tione and feeds back Eo affecÈ i.nEenE3onÉ and attltudes. Furchases aLso 

feeds back Eo affect Ëhe varlable sael.sfactíon wlEhtn Ehe Learning subsysEem" 

Thus faru the l{or^¡ard and SheEh Theony of Buyer Behavf,our has been 

redeflned ln order to tndlcate the comp}exÍ,Ey and Ëhe magnLtude of the 

funcE{.onalu feedbacku and exogenous relationshl.ps, The obJectlve has been 

Èo descri'be and lnEegraEe altr relationships çr[EhIn the Lheory ÍnEo a sfngLe 

model and a single fLow charE' The foLlowing subsecËlons represent the ff.rsg 

steps ln the neEhsdology - breaklng Ehe rnodel. aparE on a subsystem basls and 

redeff'nlng and modetrX.Sng Ëhe rel.atf.onshÍ.ps accordíng Eo Ehe sysgems d.ynam!.cs 

neEhodology' The LasE subsection wlEhS.n Ehls chapEer wi.!.L nei.nEegnaEe the 

subsysEems a.gaLn Í,nËo a s$.ngl.e model. and a slngle fl.ow charË" Subsequen6 

chapEers w11.1. dea1 rryiEh the behavl,our and testlng of Ehe model, 

50

B. Systeqrs Dyn"a$lçs l,fods3.t_i.+g 

1" Genergl. St:rucEure of Syscegs 

J" bl, Forrester (L969) polnrs 

åour of a system four hf.erarchles of 

I. CLosed Boundary around Ehe SysEem 

ouE Chac srTo modeL Èhe dvnamlc behav- 

strucEure shouLd be recognized: 

fÏn Feedback Loops (F.8") as Ehe Basi.c SErucEural ElemenEs 

wl.thin the Boundary 

III, Leve1 (sEaEe) VariabLes Representl.ng AccumutaEions 

wlEhin Ehe Feedback Loops 

IV" Rate (f Low), Varlabn es RepresenEf.ng Actl.vlEy 

çr!'thin Ehe F,B. Loops 

I ) Goa3. 

lí) Observed condltfon 

ili) Detection of df.screpaney 

iv) Aceton based on dlscrepaney @ 

The c3.osed boundary around the sysEem dictates EhêE dynam!.c behav- 

åour ls generated withÍn the boundary and thaE aLl acElvlt!.es externa1. to 

$.t are inslgnlflcanE Eo the ouEcome wlthln" It nust be l.arge enough Eo 

incl.ude those el.ements necessary to generate Ehe modes of behaviour whf,ch 

are of lnteresE Eo us" This concepee as Forrester polnts outu f.mpt åes EhaC 

Ehe sysËem beha.vlour of fnteresE 1s not lnposed frorn Ehe outslde bug created 

wlEhin the boundary; and EhaE Ehose occurrences outsf.de can be vïewed a.s 

random happenlngs EhaE lmpinge on Ehe sysEem and do noË Èhemse!.ves gi.ve Ehe 

sysEem f.Es lntrlnslc growEh and sEabil.lty chara.cEerlsticsu 

The dynamle behavlour of systems 3s generaEed wåEhln feedback Ì.oops, 

efrich, ln essenceu ai:e the buå.Ldlng blocks of sysEems" A feedback 3.oop, as 

Èhe hÍerarchlcal structure tmp!.tress 1s made up of S.eve} r¡arlab!.es and raEe 

varlabS.es whlch are necessary and suff LclenE for !Es exisEêr!.cêø Fi.gure 4 

shows Ëhe sÍ.mptresË possåb3.e feedback 3.oop sEructure, idlËhln the feedback 

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loop a s!.ngLe deci,slon polnE - Ehe rate equaElon (symbollcal.S.y represenEed 

by a Édvatrveuú symboL) - conEroS.s the fLo¡{ f.nto Ehe LeveL" InformaEtron about 

Ehe Leven ls Ehe basls on r¿trich Ëhe flow or rate is controll.ed. The Level. 

variables are maEhemaËíca} f.ntegraEíons of the raEes" Thusu Ëhe rages 

cause the Level.s to changeu and the rate variabl.es are onl.y affected by 

lnformatlon about Ehe ¡.evelsu No rate can dlrecÈly affecÈ any oEher rate 

nor can any Level. dlrectl.y affecE anoEher level. As Forrester (1OOO¡ states 

dÁny path through the strucEure of a system wf. 1. 1. encounter a}ternaElng 

Levels and ratese never two variabl.es of the same Eype in successlon,Eg 

The rate equaEions areuin essencqpolicy sEatemen¡su t{Íthån each 

raEe equaEi.on there fs an expLfclt or impll,cl.t goaf" Eoward whtch thae po!.!cy 

decision poinE Ls df.recËed. Holever, !n maklng Ehe decÍsj.on Ehe condtglon 

of Ehe sysEem musE be deEected and very often Ehe acEuaL condl.tion of Ehe 

sysEem ís dlsEorEed r.¡lth de!.ays and trags" Thus a rate equat!.on onl.y scaEes 

Ehe discrePancy beEween the goat and Ehe percelved condiElon of Ehe sysgem. 

The rate equaÊton Ehen alters LEs decÍslon and takes acEion ln the directlon 

of Ehe goal. 

2. S_tructqqe gf the Simutratton Moget 

The purpose of Ehis !,nvesEtgatÍone as prevl.ousl.y out1i.ned" !s Eo 

provtde a sysEemaE!.c frame¡uork for the anal.ysÍ.s of Ehe dynamlcs of Ehe buyer 

behavlour" the pråmary focus of EhÍ.s sEudy belng Ehe behavl.our of the indf.- 

vl.dual consumer over Ei.meu 

The fårst sEep 1n Ehe ¡neÈhodo!.ogy Ehen is Eo define Ehe bor¡ndarv of 

the sysEem under conslderaEl,on. InteresE here $.s on the dvnamS.cs of the 

ånternal. charaeEerlsEícs of Ehe consumero the mode3. shou3.d shor,r how a con- 

sumer exhlblElng non-purchase behavlour Eo¡sard Ehe produeÈ ln questi.on 

)J

deve3.ops Eo rouE$.nely buy Ehe producE and eventuaj. ly sEops purchase" 

Marke8ing lnteresËs be$.ng eenÈered on revlvlng demand agaln for the pro- 

dueE. 

It can be assumed EhâE any singl.e buyer !s sma!.L enough that he 

does not affect Ëhe ouEsLde envl,ronmenE, Thusu for Ehe purposes of thls 

lnvestlgaEion, the lndivldual can be Eaken as a LÍvlng sysEem Ehat comrun!- 

caEes rvlEh Ëhe envÍ,ronmenE but does not subsEanE1al. l.y f'nfl.ueîcê ltø 

The speclflc boundary chosen for the system under eonsÍ.deraEion ean 

be best deflned 1n terms of Ehe Lnceractf.ng components x-Íl.thln lt" Fågure 5 

shor¿s the prlnc$,pal n evel and rate varlables chosen as the core of Ehe 

sÍmunatlon modet" The Een reeÈângles represenE the system X.evels whÍ.eh are 

acctlmuX.aEÍ.ons of Ehe raEes f1"owfng ån and ouE of each of Ehemo The tvlenËy 

prlnclpal raEes are shorw¿ by Ehe vanve symbols conEroL!.i.ng the declsion 

poi.nEs" The lnf,srmatíon netvrork is noE inc!.uded. 

Flgure 5 portrays the four baslc subsysEems of Lnput, perceptl.on, 

learnlng and ouEput" The fÍ.fth, the exogenous subsysEernu f s exci.uded fn 

thls insLâltcês 

These four subsysEems chosen appear to be Ehe core facEors or sub- 

sysEems integral to buyer behavlour as r,rel.!. as Eo Ehe Howard and Sheth Model 

of Buyer Behaviour" Ie shoutd be noted thaË two circ!.es appear in Flgure 5u 

SEimuS.us Mul.t{,pX.ler (SM) and purchase (F)" These varl.abl.es may be vÍ.ewed 

as subdlvlsi,ons of rate equatlons wh1ch have beeR splft LparEø Thef.r comp- 

nex strueture wåX1. be revea}ed subsequenËny, 

AE Eh9.s poÍnE lt shou!.d be noted thaÈ Ëhe ouEpuE subsysEem has been 

a3.tened somewhat due Eo Èhe boundary of the sysEeme as defined. The dupl.l- 

eatlon ln the ouepuE variabtres of aEEenÈÍ.ons u brand comprehensnono, atEf.tudeo, 

5¿',

55a 

v44r4Ë&I 

S.MO 

OVlSF 

OVlSA 

ATÏ 

LOSS 

PER 

AlR 

NF 

ì-ìï) 

AF 

åA 

RTB 

RTBA 

nEi 

CONA 

BL 

BCI\ 

CA 

SF 

SA 

FÏGURE 5 

ïl'IDEX 

rEgI_gr *ruÅulr 

Auxl l iary 

RaEe 

1t' 

9t, 

fâ 

á, 

sf" 

tjv 

it! 

çþ 

/t¡ 

f.* 

fi 

€ê 

6$ 

tt 

tv 

Aux{ L iary 

r.\4S 

StimuLus Multlpl.ier 

Overt Search FormaEíon 

OverE Search AEtrition 

AEtenEíon 

Loss of AEtenElon 

FercepEion 

FercepElon AEEriEion 

Need Formation 

Drive Reductlon 

AEtlËude FormaEíon 

AEEitude Attrlttron 

Readiness Ëo Buy 

Readiness to Buy AEEriEion 

Confidence Formation 

Confldence Attrltf.on 

Brand Loyal.ty 

Brand Comprehenslon .AttrlELor 

Choice Declsi.on 

Cholce AEErltion 

SaÈisfaction Format lon 

Sati sfact lon .AtErit ion 

Furchase

S3-t-\íèi 'E 5-T:rl\ST HOÛ'Vü\Í ãhlå 

5'5ri 

Ès.:rærf ãi¡årFiÊa:3erE 

NorsNrr-*Bd^"'1.-" \/ ) \ 

ì qr !O--X- 

-U{-fl 

a\ tr'l l-l a\ 

I 

(ïm.r#$rEryr.ryFr.Æg5ËTÉ'fjf

and intenE$.one have been el.i,m$,naEed" These four varf.abXes are superf1uous 

Eo the system sÍnce they are utilized by a ffrm Èo anal.yze and evaluage 

Ehe consumer0s df.spositi.on toward a producÈ or servlce" Due to Ehe facg 

Ehat no LnEeracElon oceurs bêEween Ehe firm and índividua1 consumere for 

Ehe purpose of Ehl,s f.nvesEigation Ehey wi3.n. be el.lminaEed and dåsregarded, 

as not beLng wlEhi,n the boundary of the sysEem under sEudyu 

56

e ' Modg3.3_Íng ihe {ubsy_scems 

1., lsp:¡S _qqb_sJÞSSS 

the Í'nput subsysten as deflned in Fi.gure i. lnctrudes aL1 externan 

sÈ3'mu!.i from Ehe envå,ronment" Thls eneompasses conmerelal. sElmuLÍ. sf,gnif t- 

caEi.ve as l¿etL as symbol. lc and socl,al stinuS.t, 

Hor+ard a¡ld SheEh (1969) EreaË exfernal. communl.caElon from Ehe firm 

and the buyeres soclaL environmenE as lnpuËs 3.nEo Ëhe buyeres sensory pro- 

cêssêso the non-soclaL sElmuLÍ, are dichotomized Í.nEo sign3,flcatl.ve and 

symbotl.c sElnuS.$., each with varylng lnpaccs on Ehe disposiÈåon of che eon- 

sunerè These sE$,mul.t caEegorfes are botsh composed of Ehe sane maJor 

f,acEors; chose beûng quatÍ.Eyu priee, dlse$,ncElvenessÞ service and avaåL- 

abli.iEy' the socÍal stlmulå are Labe3.led as sepêraEe and di.stÍncE and are 

eomposed of Ehree major factors: Ehose beÍng che fami¡.y, Ehe reference 

groupe and soeleEy' These facEors are a3.3. summar$zed lnto a s$.ngtre mu3.El- 

d$menslona1 varla.bt.e ea1X.ed sEl.mulus dlsp3.ay lofrf.ch incf.Ees acg1viEy 1n Ehe 

buyer, ls externa3. Eo hls physlcal. being, and is Ehe Lnpue Eo hls sensory 

pfoCêSSeS o 

The slmulaÈÍ.on nodeL uElÏ.izes a slmiLar classlflcatf,on procedure 

wlth respect to Ehe excerna1 sti.mulí buEuhoweveru Ereats ai.l. such varlab1es 

as exogenous Eo Ehe system and noE pure!.y as ånputs" 

The Eotal. Ímpact of Ehe three sËimutr i generators Ls sun¡marå.zed ln 

the stimul.us dlsplay as ouELåned !n Èhe Hor,rard and Sheth þiodel. of Buyer 

BehavÍ'our. A renated facEore overE searchu eonsËlEuees anoËher etremeng ã,n 

the sEi.mutrus displ.ay - iEs lrnpaec w11.3. be treaced under the perceptua1 

subsysEem subsequentS.y" 

57

The stimuLus dlsplay has been label-led the stlmulus mu}EtpLíer 

(Sll.t

desi.res of Ehe EargeE markeE. AlI parameEers essenEÍ.aL3.y represent a gåven 

do1Xar expend3.Eure on Ehe facEor under consíderaËf on, eNctudf,ng prf.ce rqhere 

the flrm must mai,nEaf,n a consÍ.sEenE and harmonÍ,e:s rel.aËlonshlp between Ehe 

producEu the prLceu and Ehe needs of Ehe consumero 

The simuLatlon modeÌ.u wtrlch conceptuaLlzes Ehe general Eheory tn 

terms of the systems dynamics meEhodology may be diagramaEicâ11y represenEed 

as i.n Flgure 6. The ff.gure shows all. Ehree sub-categorles of external. 

stimul.l: symbol. ic (SYlt{i'"Í) u slgnl.f icatl,ve (Sf Clt) and soclal (SSM) " The 

auxll.$.ary equacions are dLagramaElcalXy expressed as cÍ,rcLes" 

Equatton !. ls an auxLllary equation r.¡tri,ch describes a functlon for 

deEerminång Ehe markeEtng empha.si,s correspond3.ng Eo a gíven do3. 1ar expendÍ.- 

Eure on quaX.f.Ey per weelc, QualåEy emphasls ås a non:dinrensional. parameEer 

nn Chat one cannot defineo nor d!,recEly measure, lts ímpacÈ as a communåca* 

EÍ.ve devÍ.ce' It has a eangnble meanlng Eo Ehe exCenÈ Ehat a manufacÈureru 

v¡hen communlcatlng çolth the Earget markeEu may choose to emphaslze a speciflc 

aspect of Ehe producE whLch ordlnarily witr.l. Í.nvolve a greater doll.ar expendl- 

Èure on the part of Ehe fi.rm" Stmpliclty ls afforded, however, by referrlng 

Eo the degree of emphasls ln Eerms of stlmuLus tmpul.ses generåted by the 

flcm or $senergyÈ confituni,cated on a weekly basis" Summarl.zf.ng, the fl,rm ex- 

pends dol.lars on the qua}l.ty lt wlshes Eo emphaslze ln lts producE, Each 

Levet of dol.!.ar expendlture/çreek corresponds dl.rectLy to Ehe number of 

lmpuLses or ç4'energyÉÉ generated each ç:eek. 

A QE,K e TABHL(QEÎeQAL.KeL0E3rLE3) L 

T QEr a olololL/3/¿+/6171818/B L"¡. 

A QUAL"K É N0RI{RN(8E3e"IE3) L,2 

QE,K - Qual.åEy ltmphasis (Unlts of 'eEnergyuË) 

QET - Qual l ty Emphas ls Tabl e ( DÍ.mens lonl. ess ) 

QUAL,K - Qual-!Ey Expendl.Eure (DoLlars) 

NORMRI\ (MEAI'{, STD") - Dynamo Macro FuncËåon providing a 

normal random number of mean (MB.{N) and 

sEandard devÍ,aElon (StU,¡ 

59

6ûa 

VÂRIABLE 

SYMM 

QE 

qET 

¡.L 

SET 

PET 

DE 

DET 

sÉ 

AET 

DLINF3 

QUALA 

SERA 

ÞEA 

DE.q 

AÐA 

S IGlf 

FAM 

REF 

soc 

Þ Þl'l 

Slr{ 

FTGURE 6 

TNDEX 

ryPE _oF qaurrJo5 

Auxl1. l ary 

Tabl e 

.{uxl L i ary 

labl e 

Auxi. L ï ary 

Tabl e 

Aux!1 [ary 

Tabtr e 

Auslliary 

labi. e 

NS}4-E 

Symbollc SLimuli MuLEiplier 

Qual-ÍEy Emphasís 

Qual.iEy Emphasls Table 

Service Ernphasis 

Servi.ce Emphasls Tabtr e 

Frice Emphasls 

Prlce Emphasls labLe 

Di stlncEíveness Emphasis 

DístincEiveness Emphasis Tabl 

AvailabiL1Èy Emphasis 

AvaíLabiLlEy Ilmphasis Ta.ble 

Macro Delay Third örder deLay in lnformaElon 

Auxi L iary 

AuxiL lary 

Auxi. L iary 

Auxil. Lary 

Aux11. i ary 

nAuxl L i ary 

Auxl I lary 

Auxi I I ary 

Auxi I iary 

Auxi L i. ary 

Auxi L lary 

QualíEy Emphasis .{verage 

Servlce Emphasis Average 

Price Emphasls Average 

Di stlncEi.veness Emphasl s 

,Average 

Avaílability Emphasis 

Average 

Slgnif icative Scf.muL i 

MuLtlptr ier 

Famil-y 

Reference Group 

Socl eEy 

Sociatr SEimuLi l'{ulEtPl.f.er 

SEimul.å MulEipLíer

DLINF 3 

DLINF 3 

I 

-o- 

SER 

- 

¿ 

DLINF 3 

\ \._ 

-ê 

PRICE 

TF'I E I T\ü FI.JT S[., B5Y5TË M 

F¡G. ó 

\ \ \ 

DLINF3 DLINF.3 

-/ 

ovrs ø 

/l 

/, 

/ 

¡l 

I 

w v 

,.o- 

ATT 

STA

The funcEl.onaL rei.atÍ.onshlp exlselng beEween Ehe dolLars expended 

and Ehe corresponding @energyef generaEed ls of s3.gni,ficance Ëo Ehe mode!.es 

performance" Figure 7 descrl.bes the functåona1" rel.aEionship exlstång beË- 

r¿een do!.I.ar expendLEures (QUAL) and ehe lmpu3.ses generated (QE) sueh EhaE 

a posiEÍ.ve correlation exÍsts beEween bhe t¡¡o varl.a.bl"es. 

The pLateaus ln Ehe curvallnear re3.aElonshÍ.p are ev{.dence of a need 

on Ehe part of the fl.rm to ensure Ehat mlnlmum qual.lty standards are met 

and ChaE excesstve expendltures attempEi.ng to satureEe the product Ínage 

wlth qua1ity are avoíded, The nature of Ehe shape of Ehe curve ls reaniståe 

i.n ehe tight of Èhe facE EhaE eonvenience or sEaple goods generall.y cone 

under Ehe scruclny of consumer proEecEåon agencl,es as l¿'e1.3. as governmenL 

deparËmenËs' A ftrm must then expend a certaÍ.n arnounE Eo meeÈ Ehese stand- 

ards before f.È has even a chance to have an lnpact on Ehe consumerø Further- 

moree excesslve expenditures on qua!.lEy border!.ng on a snob appean become 

narge!.y undeEectabl.e and undesi.rable for a product ln the convenlence goods 

categorye as opposed to a speclalEy goods caEegory" 

EquaElon L"X. Ls Èhe Eable of val.ues rtlTich quaLlty emphasl.s may 

assumee dependlngr of coursee on Ehe value of Ëhe expendtEure made by che 

flrm' The value of QE ranges from zero Eo ten in the varlabi.e QIl" The 

va}ues å,n the Eable are pureLy arbltrary to the e:(tent EhaE Ehey represenE 

vari.aÈ!.ons ín úøenergyÉ' or i,mpuf.ses generated [n accordance wíth don Lar ex- 

penditures" There exlsts no faeEual nor phystcalLy defi.ned re}aLionship 

beEÞIeen Ehe Ewo varÍ.abtes, hence one musE postu1aEe Ehat for any g!.ven 

doLLar of expendlEureo Ehere wå1.1 be an accompanylng fLow of Í,rnpu3.ses or 

#energyÉú generaEedn It may al.so be postu1aEed EhaE as the levet of expen- 

diture å,ncreases there vril1. be a greaEer satr¡ration of rrmessâgesrt' dlrecEed 

6L

62a 

FTGURB 7 

TNDEX 

VA"R,ÏABLE TYFE OF EQUA'TION NAME 

QE AuxiLlary Quality Emphasis (impul.ses) 

QUAL Àuxil.lary Qualíty Expenditure 

($),000/week 

QET TabX.e QualiËy'fimphasls Tabl.e

t a ¡ r l¡\? 

\{LJrr1[""ü ^r ii ¡ 

Q UAL 'OOO' 

r:Þ:r|llp.-r4 cIa1 

a-¡-Eù ú5,\üeJ 

t- tG. 7 

(s uì 

a¿

Eoçfard Ehe eonsumer 

to Ehe messageø 

and 

correspondångLy a greafer probabllåey of exposure 

Equatlon 1"2 compuÈes Ehe value of the dol!.ar expendl,Eure Ehe flrm 

ås wl}tr lng Eo make on quatr.Í.Ey" A norrnaL noise funeÈlon has been added Eo 

creaËe varf.atlon ln spendlng Leve!.s on a week!.y basis and Eo add Ehe elem- 

enc of nolse f,n communfcation" thís musE not be construed as stLmu!.us 

anbÍ.guflty wt'rlch !s parE of tshe perceptual processes of Ehe consumer" One 

eannoE aceurate3.y predicE how much noíse or dlsËorElon wllX. occure buÈ one 

can say EhaE some shaÍl. occur and EhaE iË w1L!. occur ån a random f,ashlon" 

The vaLues chosen for Ehe Í.níEia3. expendiEure X.evel. and Ëhe mean and sËan- 

dand devlaEton tn the no$se functlon are arbltrary and may be modlfåed 

sånce they areu Í.n facEe exogenous Eo che systen. 

Equablons 2 through 5 are consErueEed on Èhe same basi,c posEuLaEe 

EhaË equaEion tr lvas fornul.ated upono EquaElon 2 ís an auxf.LÍary equaE3.on 

describl.ng a funcEion rryhl.ch deEermi,nes the markeEing emphasls 1n lmpuI.ses 

or #energysr generaEed frorn a glven prlce level, 

A FE"K = TABI{L(FETePRICE.Ke0e"5e,05) 

r FEr s 0lol0l81817l7l6l312l3 

Â PRICE"K € NORMRN(.28e.02) 

PE"K - Fríce Emphasls (Un$ts of åÈEnergydÉ) 

PET - Prlee Emphasis TabX.e (Dimensionl.ess) 

FRICE,K - Frice Levetr (Cents) 

,{gain Ehe degree of emphasls obEaÍ.nabl.e from a given pråce Leve3. 

Ís non-dåmens3,ona1. or rather on3.y pseudo-dimensíonal Eo the extent Eha.Ë 

one can attâch varytng vaXues Eo Ehe emphasås and measure Ít ån eomparlson 

Eo oEher parameters' Essential!.y thenu Ehe ftrm selects a parEicular prlce 

which i,t chooses Eo emphasfzeu Given the EargeË markeE and Ehe naEure of, 

the producE eaEegoryu it is poseul.ated thaE varylng treveX.s of impulses or 

2 

2"L 

2rZ 

63

tenergyts wlÍ.tr. be generaEed å.n response Ëo the pråce LeveL ehosen" 

Fígure I descrlbes Ehe funcEi.onaL rel.ationship exisEång bec¡veen 

príce Levels (PRICE) and Ehe Lmpun ses generaEed (PE) such Ehat a highly 

negaEi.ve correlaËlon exl.sEs whlch resembnes somearhat Ëhe form of a úrki.nkedø 

demand cuÍtrêe 

The shape of the curve i,s rea}lstl.e !n the s€nse thaE trow Þrices 

bel.oçr acceptable quallty l.evel.s creaEe X.l.ttLe or no acEivatlon $n ståmutrå" 

å rel.evant prlce range provldes the greatest acEi.vatlon of impulses and as 

the price rlses the degree of emphasi.s fal.Ls unEål. a point i.s reached where 

Ehe prfce becomes assoclated $d.th Èhat of the 1uxury snob appeatr and eor- 

responding3.y creaEes greeEer sElmu1å acti,vaEl.on. 

Equatåon 2'X f.i.sËs the EabÍ.e of values whieh priee empha.s$s may 

assume dependlng aga$n on Ehe va1ue chosen for Ehe pr3.ce, The Lnåtå.a!. 

Prtce nevetr is arbltrary and as an exogenous varlable lt may be manåpu1aged 

as Llsted ln equaEion 2"2ø ,4 normaL noåse funeÈlon agaån has been added to 

consl.der possíble distortl.on and notse wt'rtch may enEer the cormunicatf.on 

ehannel. n 

Equatlon 3 [s an auxll.iary equat3.on descrlblng a table funcElon for 

eompuÈång Ehe marketing emphasís aEtaå.nable from a gLven Leve]. of dlstlnc- 

tlveness or product expenditure" 

A DE'K a TABHL(DETeDISnKe0eI0E3rIE3) 

T DET = O /L lL lL l2l ¿+l6lBle /T0/\A 

A DI9,K r NORMRN(8E3r"LE3) 

DE"K 

DET 

DTS 

- DisElncEl.veness Emphasås (Untrts of ÉeEnergyúd) 

- DlsElnet[veness Emphasís Table (Dinensi.ontr.ess) 

- DåstlncEi,veness ExpendíEure (Dollars) 

, 

3"1 

3"2 

6ts

65a 

VARlABLE 

PE 

FRTCE 

PET 

FÏGURE 8 

INDEX 

TYFE OF EQUAÎTON NAME 

Auxilf.ary Frice Emphasls (imputses) 

Auxill.ary Prtce LeveL (cenEs) êâ" r{ko 

Table Frlce Emphasís Tabl-e

FR. üC E 

P R ICJE 

k tvl¡ È" k^,¿ /.!ú_\ ä S 

Ft6. A 

(n rr)

The fniElal. value for Ehe product dåsEincEÍ.veness is set at 

$81000/week, ralEh a normal. varlation of $100/week. DlsEf.nctlvenessu 

as deflnedr is roughly equåvalenE to promoElon as âIt element of the market- 

lng mi'x' FronoEion !.s Ehe med!.um Ehrough which a fírm can comnun!.caËe Ehe 

dfsEinctiveness desired and requf.red Eo aÈtaín conslsEency wLEh Ëhe needs 

and preferences of Ehe EargeE market consumersn For examp!.e, this f[rm 

wouLd be spend3.ng approximately $4001000 annualLy on promotlng Ehe dÍ.stlnc- 

tsåveness of lEs product Eo Ehe markeË 1n quesElon" 

Thls seE of equations functlons ln the same manner as the truo prev- 

i.ous sets' A glven dotrl.ar expendfEure r¡1L3. creaEe a specifû,c narkeElng or 

produeE distincEiveness emphasis thaE musE be cons3.sEenÈ wf,Ètr Ehe consumer 

specifåc needs and prefer€ñcêso 

Figure 9 descrlbes Ehe funcEional relationshÍp exlsEi.ng betrveen 

product di.sElneEiveness expendlEures (DIfi.K) and impuS.ses generaeed (DE"K), 

such that a posl.Elve correl.ation exisEs between Ehe two varl.abl.es, 

A pl'aEeau ls showT to exisE for 3.ower Leve!.s of expendLEure such 

thaE fewer lmpul.ses are generated lf tfre producE does noE achieve some 

I'eve[ of dlsEincti.veness" ThÍs is general.l.y consisEenE ç¡iEh marketing 

Eheory r¿trích postulaEes thaE producE differentåatf.on is required for prod- 

ucts Ln the convenience goods caEegory ln order to move them out of a 

homogenous producÈ situation" 

Bquacion 3 llsEs the Eab3.e of values wtrich diseincEi.veness emphasl.s 

may assumee The expendlEure belng preseE auEomaEleal.Í.y creaËes en emphasís 

of approxima.tely 9 sn Èhe scale ranglng from 0 Ëo ten. 

EquaElon 4ls an auxlllary equaEton descrf.blng a tabl.e funcElon for 

cornpuElng the markeElng empha,sis aEtainabl.e from a glven levetr of expen- 

66

67a 

FTGURE 9 

ÏNDEX 

VARTABLE rYPJr olEgg-Uioll N4I4! 

DE Auxíl1ary DisEincEiveness Emphasis 

( lmpul. ses) 

DÏS .4uxf !.lary DlsEinctÍ.veness ExpendlEure 

($) u000/week 

DET TabLe Distlnctåveness Emphasis 

TabL e

D I S '000' 

F\F f-Y-F D:r/arÈr ç sr¡- r, Þtp-ê. raÆrrL,a- ¡4 þe 

ËJ'Ëi) ¡i ! i,'i-\- t [ '!: i: ù\ t,l,f.) ir:l.';ii r-; iti-É., r,i 

FIG. 9

dåture on servf.ce" 

"4 SE.K E TABHL(SETgSER.K909rOB3'TE3) 

r sET = O/¿+15/5/s/5lj/sl5l6l6 

A SER.K € NORMRN(2839"583) 

SE"K 

SET 

SER.K 

* Servl.ce Emphasls (Unlts of útEnergyto) 

- Servtce Bmphasfs Table (Dlnensíonl.ess) 

- Servlce Expendlture (DoLl.ars) 

The inlElat vaLue for Ehe servS,ce expendnture ís seÈ ac appro:{!.- 

mately $2000/w'eek T,rlEh a normal. varlatÍ.on of $500/week, Thfs seE of 

equaEi.ons funcEions ln an equf.va!.enE fashåon to the prevf,ous Ehree seEso 

.Agaín, a gíven do[I.ar expendl.Eure on servåce rvfXl. creaEe a specifie market- 

Íng or service emphasf,s Ehat shou!.d be consisEenE wlEh Ehe needs and pnefer- 

ences of the consumerø 

Flgure L0 descrlbes the funeELonaL re3.atf,onshlp exlsEing beEween 

servlce expendf,Eures (SUn"f¡ and i.mpul.ses generaËed (SE"K), such EhaE a 

sLightly poslElve correlation exí.sEs beEween Ehe variabl.es, 

A plaLeau extending for several l.evel.s of expendf ture is postul.ated 

Ëo emphastze thaE it wil.L Eake subsEanEial íncreases l,n service Level. expen- 

diEures Eo creaEe a perceived dlfference 1n emphasis on the part of Ehe 

consumerå Èhe reasonl.ng bef.ng EhaE service is not an lntegra1 part of the 

producE offerlng for a convenf.ence good" FurEhermoreu this emphasízes Ëhe 

fact thaE at LeasE some mlnf.mal nevel. of servf.ce ls required Eo meeE Ehe 

needs and preferences of the cônsumere 

Equatsion 4"L Lås8s Ehe table of va1ues whåch service emphasÍ,s may 

assume@ The service expendi.ture $,s preseE aE approxi.maEel.y $2000, and auÈo- 

ma.E1ea1.Ly creaees a serv!.ce emphasís trevetr of approxtmate!.y 5 on the scal.e 

ranglng from 0 Èo Eenq 

t4 

l+"L 

t+"2 

^4.

69a 

FTGURE 10 

ÏNDEX 

VAP.IABLE ÎLPE "95 EQUST_rolr ¡lAMg 

SE Auxil.lary Service Emphas!,s (lmpuLses) 

SBR Auxf.l. íarr¡ Service Expendi ture 

(g),ooo/;k" 

SET lable Service Bmphasls TabLe

s E R ',000' 

(. 

ÈJbûav rçÈ Ë!.ùr. h-ÞlJi-\¡J 

FtG. l0 

(ser) 

âc\

Equafion 5 is an auxtLíary equaeion describing a EabLe function 

for eompuEíng the markeEíng emphasis aEEai.nabl.e from a given Level of 

expendiEure on dlstrlbuEion, 

A ÀE,K ã TABITL(AETeAV"KeorI0E3eIE3) 

r AEr = o/zlt+ls/6/sls/a/el10/10 

h AV*K 4 NORì4RN(683, "2583) 

AE,l( - AvaÍLabit i.Ey Emphasis (Un*.ts of èrEnergytr) 

AET - Avallabl,Llty Enphasis Table (Dimenslonl.ess) 

.4V.K - AvailablltEy ExpendiEure (Do3.lars) 

the ínlËial. value for disEribuE[on expendiEure is seE aE a.pproxl- 

rnaEel.y $6000/week with a normatr varlaElon of $25/week. These equaElons 

agaÍ.n funcEion equå,valenE1.y to Ehe previ.ous 4 seEs" A given LeveL of 

expendiËure on dlsErlbutlon wlLn creafe a specífi.c market!.ng emphasi.s that 

shou1d be consisÈenE wlth consumer needs and preferences" 

Figure LL describes the funcEå,onal relaEionshi.p exlsËíng beErveen 

dístrÍ.bution expendi.tures (AV.K) and lmpuLses generated (,{E,K), such Ëhat 

a hlghly positive correl.atlon exisEs beEween che tvJo" Thts is conslstenE 

wiEh marketing Eheory EhaL postul.aEes that for a product ln Ehe convenience 

goods caEegorye widespread dlsErlbuEíon ls required and excelLenE sheLf 

posíElon $s an importanc facEor. The more money chat is punped lnEo avait- 

abilíËy wllL ensure more effecttve and wl.der avattrabílåty of the producE" 

the expendlture was preseE aE approxf.matel.y $ó000. i¿trich i.s equivaj.ent Eo 

an aval.lability emphasls of approximaEel.y 8 on Ëhe scaLe ranging from 0 Eo 

EêfÌø 

EquaEfon 6 ís a mu3.ti,pLner thaE incorporaces al-X- fÍve lmpu1ses 

generated from qua3.íty, príceu disLincElvenesse service and avalLabiLiËy, 

5 

5.x 

5"2 

7t

7La 

FIGURE 1.1. 

fNDEX 

VART.4BLE rypE o¡' EauSgos N4yE 

AE Auxlllary Avallabf.l.lty Ernphasis 

AV ,{uxllíary Avallabíllty ExpendiEure 

($),000/wk. 

ABT Tabl.e ¡lvatl.abÍ.Ltty Bmphasls Table

-\V '0tJ0' 

(ner) 

IL

å SYMNÍ "K ã 

SYMÞ{"K 

QE"K 

FE"K 

DE"I( 

SE.K 

AE"K 

(qE.K) (pn"i

fl. quALA,K e DLIN¡.3(Qtt.Ku5) 7 

qUALA"K - Quan tEy Emphasis Average (UniEs of diEnergy€r) 

Ït ts postulated ËhaE Ehe qual.ity ernphasis, measured !,n energy 

or Í.nputses w3.1L be roughly equlval.eng to the qual.lEy emphasls average 

(QU.ALA.K) Ín the signífícaElve stimuli, except for a delay in Ehe recelpt 

of the f.nfocrnaEion. The rationatre being thaE Èhe consumerss perception 

of the physical brand Ítse}f vrl.I.tr be delayed somevrhat pasE the orlglnatr 

recelpt of symboS.Lc sLimuli" 

IE i.s furthen postulaEed EhaË thLs de3.ay Sn tnformaEion wl1L Eake 

Èhe form of three cascaded f3rsE order exponenEia.tr delays ln lnformaeion, 

L'ê.¡ i.È wiL3. rÍ.se sLow3.y Eo Ehe finaL vaLue of Ehe deflned variabte !E 

1s to assumeø 

EquaEl.on 7 speclfåes Ehat Ehe de1ay Ln i.nfor¡nat3on wiL!. be a Ehlrd 

order del.ay wf.Eh recelpt of lnformatlon afrer 5 weeks (tånre perf.ods)" The 

justiflcaEion belng thac qual.lty wf.Lt not be percef,ved for some Eime afEer 

purchase and may noE occur unEil Ehe product Is utill.zed several times. 

Equatíons 8u 9u 10 and lt are based on Èhe same format as equaEion 

7e I'neeg êâch of the symbo!.i.c slinull as defined, after being subJecEed to 

a thl,rd order deS.ayu ¡våll be roughl.y equl.valent to Ehe empha.sís, measured 

Ln i.mpuÏ.ses or úúenergysr Eo Ehe si,gníflcaelve stlmuli, 

EquaEion 8 descrlbes the servl.ce emphasls average (SEA"K) âtEråbu- 

Eable Eo a glven expendlÈure on servåee esEabs.ished by the flrm under 

cons!.deraEion, 

A SERA"K = DLTNF3 (SE.K9 14) 

SERA"K - Servlce Emphasls Average (UnlEs of (*Energyú6) 

DLINF3 (XrY - Dynamo macro funcüÍ.on creaEÍng a Ehlrd order 

exponenEå,al deLay ln X wLEh average delay Y 

t3

I¡r Ehå.s Í.nsËaneeu howeveru the detay ån $.nformation correspond- 

lng to servlee emphasfs wii.L be tr4 weeks ot 3 LlZ monLhs, The jusEifica- 

Eíon belng that Ëhere ç¡lLl. be tr i,Etle or no di.scernabLe percepElon of Ehe 

!.eveL of servlce afforded by a parË{cular f$'rm slnce Ehere wål1 noE be a 

phystcal conEact beËT\reen Ehe firm and Ehe consumer@ It may be posEulated 

that âfEer L4 weeks the consumer may begín to X.lnk the product Eo a parÈt- 

cuLar manufacturer and lnherentl.y establåsh an !.mage of v¡haE he beLteves 

Eo be Èhe servl.cê ËhaE Ehe fLrm wouLd offeru shoul.d he have any problems 

rüith Èhe product" 

SquaËåon 9 descråbes the prtce emphasLs average 

abLe Eo a gf.ven pråce Level establ"lshed by Ehe firm' 

(PEA"K) aEEri.buÈ- 

A I3EA"K = ÐLTNF3(FE"I(93) 

FEA.K - Fr3.ce Empha.sls Avera.ge (Unåts of rsÐnergyrt) 

Þrice, ln thås i,nsEaricee ls lmmedlately pereeived by the eonsumere 

but Ehe del.ay 1n Lnformation Ls seE aÈ 3 weeks. The ratlonatr-e being Ehat 

it may Eake up Eo 3 weeks for the consumer co esËab3.ish a frame of refer- 

ence for the pråce of Ëhf.s parEicul.ar producE ln re}atton to lEs other 

aEÈri,buEeso The actuaL prlce Ís f.nmedlately avallable, buE tt may Eake Elme 

for the consumer Eo sh[fE hts frame of reference" 

r¿hLch 

by Ehe 

4 s¡eeks 

EquatÍ.on Í.0 describes Èhe dlsElnct$veness ernphasås average (DEA"K) 

l,s funcElonaLLy related Eo Ehe distinctixzeness emphasls esEab}ished 

firm prevlousl.y" 

Â DEA"K d DLT}¡T3(DA"K94) 

DEA"K - D[stsincElveness Emphasås 

The del.ay ån informaEl.on on the productss 

for much the same reasons a,s for Br[ee' 

10 

Âverage (unlrs of çtEnergyÉ$) 

dlsE3.netÍ,\¡eness ås set aÈ 

An aÎ, lowance of å' v¡eeks 1s

mede Eo aLLoïs for the consumer Eo physi^cally see and/or handtr.e Ehe product 

and adjusE hls frame of reference to flE Ehe producE. 

Equatlon Ltr descr$bes Ehe ava.Í.Labi.3.ity emphaså,s average (AEA"K) 

lqhlch !s functtonatrLy renated Eo the evaLl.abtrn iËy emphasÍ.s esËabl j.shed 

previousS.y. 

A AEA.K 

AEå.K 

DLINF3(AE.Ke3) 11 

Ava$.3.abÍ.Llty EmphasLs Average (UnlEs of reEnergyeÉ) 

In Ëhis instance, the detay i,n lnformaEf.on !s estab11shed aE three 

weeksu Èo anlow the consumen Etrne Eo physl.cal.Ly see the product afger the 

rece!pb of Í.nformaËlono 

The perlods or weeks of de3.ay esÈablÍ.shed for each of Ehe varlables 

S.abelned sÍgnÍff.caEive sEÍnutr $. has been arbiErary Eo Ehe exgent tha.Ë no 

facEuan daEa exf,sts EhaE can veråfy such a relati.onsh$.p" The raËiona1e 

behind each of Ëhe variables Ss loglcatS.y eonsLsLent and as such provådes 

a sound basis for posEu3.atflon. The Eåme del.ays may be manlpunaEed subse- 

quenEty to enabl.e sensåEivity anal.ysis of Ehese parameEerso 

ïhe slgnlff.catlve stlmutr i,, very much Like che symbox.ic s¡lmu1i, 

have an impacb on Ehe consumer - thaË ns, a functlon of eaeh of, Eheå.r !ndL- 

vÍ'dual i.mpacts' For EhLs E-eason eguaE$on 1.2 has been establåshed Eo reftecE 

Ehef r trnEerdependency " 

Á STGM"K æ (QUALA,K) (FEA.K) (ONA.K) (SNRA"N) (AEA"K) 12 

SIGl"t"K - SignÍ.f lca.tf.ve Stlmuf. i MuLtl.pL i.er (Units of rtEnergy'u) 

The significatj.ve sÈlnuLl muX.Eåplf.er (SIC¡¿.K) i.s Xn Ehe form of an 

a.uxållary equation rrnlch is mulEåp1 f.caEfve Ln natureo Âgaln, a, zero or 

unfavourabLe vaLue for any of Ehe factors ean create a nunL effect Í.n the 

signi.fícative sElmulf, and collapse the flrmes markeElng sEracegyo A1Êerna* 

Ëlvetr.yo a favourabtr e value rEâtr I serve to relnforee Ehe straLegyu Thls

equaelon Ehus serves to sum up Èhe markeElng (sågniflcatj.ve) cormnunlcaE$,ve 

sErategy for Ehe fírm under consideraEion lnEo a singl.e eremenE, 

iil) ths socfg} sg¡mu!.å: as defx.ned by Howard and shetsh (looo¡ refer 

to Ehose sttmul. l whtch êmanaËe from other peop!.e i.n a face-Èo-face relaefon 

wlth the buyer. As suchu lt Ls çÉêi'i,ergyoo or lnformaE!.on transmitged through 

a secondary source from Ehe prLmary source - the flrm, 

Thts sclrnul.i source has been caEegorized lnEo Ehree sub-cl.asses 

LabeL}ed the famlLyu Ehe reference group, and soci.a.L cLassu al1 r.righ an 

impacE on Èhe consumetr0s product awareness, Again, however, Ehe na,Eure of 

thef.r lnformaelon Eransmf.EEal. wf.3.X be such thaE trE is del.ayedu e!.Eher due 

Eo Ëhe facE EhâE the socta} mí3.åeu wi.13. noL make cnalms abouË a given prod- 

ucE unLess Ehey have physåcall.y seen or tr!.ed the producge or atrËernaÈi.ve1yg 

due Eo the Írmnediacy wlthin whfch they can phys$.eal.Ly rnake Eheår claim Ëo 

the consumer ln quesEion. 

As separaEe enEities, Ehe family, the referencê groupu and Èhe 

soclal' cl.ass Eo whlch the consumer bel.ongsu Lhey w11,1. have varying $mpact 

dependlng upon Ehose facEors ratrich ¡¡ouI.d appear as being of greagesg ren ev- 

ance to the consumer i.n questf,on. the discuss{.on of the soelai. stlmul.i ¡+i}!. 

again fotr Low Ehe sequence of Ehe equatlon numbers. 

EquaElon L3 is an aux{.t tary equaEíon whlch descrlbes the lmpacE or 

6energy?0 generaEed from the famity groupo 

A FAI4.K A NTR}4RT.I(STGM"K9 

"583) 

FAM"K - Famlty Emphasi.s (UnlEs of 'ËEnergyt+) 

tquaEíons L3e L¿+ and 1.5 are based on a slmilar formate åue"u i.E Ls 

postul.aEed EhaE Lhe lnfl.uence of the Êaml}ye the soel,eÈy or Ehe reference 

grouP tsål.tr. be a funcE!,on of Lhelr perception of the phystca} producÈ" lË 

13 

76

may be assumed that no ctraå.ms wou!.d be made søÍthouÈ sufflclent famåliar$.E\¡ 

r¿ith the producE on Ehe parE of the group in quesEion, 

The $nf1uence of Ehe famlly (¡'A¡¿"tr) ls chus a functlon of bhe 

slgnlf icaElve stÍmuS.L multÍ.pl1er (SIGM"K). A normatr noi.se funcEÍon has 

been added with a standard deviaElon of 500 Eo create disEortion or nolse 

i'n the communicaEion channel.n The raE!.ona!.e belng ÈhaË the source lsiLt 

Cend to over emphaslze or de-emphasíze cerEain factors and Lhere mav be a 

great deal of ínEermitEency in conEaeE r¿!.Ëh Lhe consumer, 

EquaElon 14 compuLes Ehe lnfl.uence of Ehe reference groupe or ragher 

esEabl. lshes f,ts emphasís in rel.aEi.on Eo Ehe other varlabx.es" 

A REF"K E NOR}TRN(STGM,K95E3) 3"¿,, 

REF"K - Reference Group Enrphasis (UníLs of ráEnergyo!) 

In Ehls Í.nsEanceu the LmpacË of Ehe reference group is agaån a func- 

Ëåon of bhe signf fícaEi.ve stnmull mulEipS.f.ern but the sEandard devlagton 

of Ehe normal nof.se funetfon i.s increased Eo 5e000. Thås refl.ects reduced 

conEacL and greater dlstortion wlth regard Eo Ehelr acEuaL eva1uaEíon of 

the productu FercepElon may be highl.y disEorEed 1n Ehis f.nsEance and as 

sueh there shoul.d be a greaEer fluctuatå.on in stimuli. generaÈed, 

Equati.on 3.5 compuces Ehe infl.uence of Êhe soclecy measured 1n 

çienergyoa or impulses. 

A SO.K É NORl'lRl.l(sIcM.KeL0E3) 

St"K - gocieEy Enphasl.s (UniCs of çþEnergy',r) 

The f.nfluence of Soclety (SO,K) f.so ín EhÍ.s insËancee a functïon of, 

the si'gnlf,icaEive stimulf agaån but distorEed Trlch nolse having a standard 

devi.atåon of 101000. The jusgifÍcatåon being EhaE socf.eEyrs Í.nf,x.uence wå13. 

be more i.nEermi.EÊent and 3.ess pronounced than thaE of Ehe famiXy or the 

reference groupø 

L5

The socl.atr- sEÍmuLf.u very much unl.ike Ehe Ewo prevÍ.ous sËímuLi. seÈsu 

Labell.ed conmterci.al sËf.mulf.u have an impact on the consumer ç/nich ls very 

much of a funcEion of eaeh of thelr lndividual. lrnpacEs" fn this insEance 

the åmpacE of one facEor, iE ls postul.aEedu shoul.d not rad$.caLÏ.y a3.8er Ehe 

outcome of Ehe other Ewo" and as such Èhe relaElonshlp may be consÈrued as 

belng an average of Ehe Ehree facEors" 

& 9Sl4,K ã (FAM,K€.REF"K.åSO"K) /3 n6 

S9M.K - Soclatr" SElmul! l',iulËipLler (UniEs of sÈEnergyús) 

The socíal. stlnuli mul.Èíplter (SSi'1,tr) is Ehus ln Ehe form of an 

auxiLåary equaEion r,¡hÍ,eh ls addfElve in naEureo AccordÍngtry a zero in one 

of the facEors may reduce the overall averagee but ¡ai.L3. noL radi,cal3.y affecE 

the lnpacÈ of bhe sociatr sEtmun i. 

v8

2u I}q Ferceptua.L sqlqyqsery 

The modeL0s percepEua} subsysEem is dlagramaEíeaLly represented 1n 

Flgure 12 and baslcalLy consf.sts of three major Levels and Èhelr accompany- 

ing rate equatlons6 Ehose belng, OverE Search (oVtS) u SEimulus pooL (Sp) 

and Stimulus as Coded (SAC) " 

TE: Theory of Buyer ßetravlo_ur emphaslzes expLlclEly thaE buyers 

I'earn from both experíence and lnformation, The theory suggesEs Ehat aEten- 

Ei.onu overt searcho sElmuLus ambigulEy and perceptuaL bias converg the 

exEernal event - Ëhe stimul.us - fnEo a stlmul.us-âs-codedo The s-a-c becom- 

lng an inpuE tn Ehe LearnLng subsystem" 

Howard and SheEh (X969) poinË ouE ehaE Ehe s_a_c.can dlffer radica1.Ly 

from the objectÍve stimuLus ln Ehat there are mechanlsms by which Ehe ra,çr 

stlmuLus l,s tranformed lnÈo âFl s-â-cs and Ehat Ehls effecE on Ehe Learnlng 

subsysEem is not a unitra.teral. one. The Learning varf.ables also feed back 

lnEo Ehe pereeptual processes to infLuence the effects of Ehe incomlng infor- 

matlon" these perceptual construeEs explain why an adverÈisement is Érseen$é 

by some people and noE by others even Ehough a1.L are exposed Eo igu and why 

a given person úiìseesç? 1E Eoday buE not next r,reek even Ehough he ls exposed 

to lE boEh ti.mes. "{lsou the construcÈs expl.aïn why some new producEs falL 

and oEhers do noE" 

ConsísÈenE r¡iEh the modeLss concepcual.lzaÈ1on of the Eheory" Ehe 

Eheory succlncEl.y states øS,o far aln of our e3.emenEs have been enEf.Ei.es or 

sEaÈe construcEs - usually the hypoEhetsicaL counterpar¡s of varlabLes" 

Here, however, s¡e encounEer Ewo eLements EhaE a.re processes LnsËead of 

entl.Lies"r* They are referring specifíca1ny to perceptual b!.as (BIAS) and 

overE search (tvTs). 

t9

il*liill,J 

}ITR:i 

li.tP 

1' 1 t{î: 

il \l 

J l'i 

rì1iJì.:: Il 

ar\t -11(: 

/ì\t T'c. À 

ì40TI\tË 

û\r t:s åt.l 

S;' 

¿J v:ï ì.t 

r\ l: 

T ^cc\f 

Ð !.4'ì.J 

í, f\\t 

¡* l- 

\1 {ì. r-r 

qÂrr 

.ìt(( 

Å'l'\-l r,r 

lì-1ß 

li'r 

¿.r å, 

l" Ll 

i-"ict¡rì ir 12 

11.1fìr¡v 

JIH_gi*äìråIll,j! 

Auxå,1 i ei:y 

Irux$. !- å riy'y 

f,u:iå. ?. t ary 

/iulil. I târ]? 

R:rü c* 

I-.eveL 

Ita Er: 

Le.¡e1. 

Ccns ';*.:t C 

iìa. t:e 

L, c)'rtù 3. 

Il¿"rt Er 

l\d f,, (J 

Â,uir!. I t i.,.z"y 

Çen.si;¡ri8 

Âri-t! !- !.;:r'y 

Leve'i. 

Lev,:ì 

F"eitt: 

X-.er¡e1 

R;:tê 

Cci¡ic t¿ri f 

ll.aL r¡ 

ii¡i t r: 

ì) - ¿. ... 

¡!r ì ç, !] 

l,l,'r ¡"íl¡ 

t'n*nor,lr]îr, 

Iniporl;arir:e cf Purchase 

Ttine F:.:e..;:iure' 

S t å n'rr.¡i us i{uL k i.¡:L i. e;-" 

O\teri: S earch Füii:-in;:i: $, ':it 

Overf:1.ìes:':ch 

Cve::8 :.ìe'::rch P,türå i:i.cn 

J'íg'e [-r.'e 

B0a 

Çr.zç-"s ç li rlele'c.:h i-r g er å f $- ort i.íef r¡ 

Ê.octentå+n 

:i Í: I-:lu ï. us F or.o!. 

!ì [: 9- r:¡u i i.¡.:l ].,c; sti' 

ii er¡C i

I 

I 

f 

j 

I 

¡ 

I 

I 

I 

MOTIVEIO- - 

I 

/ SMz 

/ / MoTrvEq \ 

\ )n'* 

-- 

\ \ 

RTB 

NF 4 - 

BL 

CD 

eVErÌT 

SEAF.CH 

Slf / 

-ì(l sM 

Íffi 

sTrMuLus i 

É\s coDE" a ,/ 

P E iT,C E P-['L,,Ê\f- SUßSYSTfr M 

[:!G.12 

,qTR 

Y/AT R N 

coN 

', MoT¡vE 

-Q.a r 

U

'Îhe model. deparEs here sonewhaE from Ehe theorv in that overt 

search (OVTS) i.s concepEualf.zed as a sEaEe of Ehe svsEem. BuE one musu 

recognl.ze the ímpacE on Ehe system from this variab}e. IE ls evldenE 

from reviewi.ng Ffgure 1.2 that the Í.mpact of overt sea.rch f.s simpl.y re1e- 

gaEed to moduLaÈlng Ehe sEl.muLus mu1Efptier (Sll), Thereforee even though 

!E Ís dlagramaricals.y represenEed as a sEaEe varlable Lts Impact is EhaE 

of a. process modulâElng another varlabl.e. 

The percepEual process can be seen âs regulatl.ng Ehe quaLlty and 

quanEl.Ey of lnformaEton disseminaEed to Ehe consumer. The Eheory suggesgs 

thaE aceenEf.on ls concerned solely wiEh regutrating Ehe fl.or¿ whÍ. 1e percêp- 

Eual. bi.a.su in a.ddfE!.on Eo disEorfing Ehe informatlone aLso seems Eo regul.aEe 

Ehe fi.ow to some exEerLE" 

The exptranaEf.on of the perceptual subsysËen wllX folLow a dls- 

cusslon of Ehe three major Íevetr s accordl.ng Eo Ehe sequence of equaEf.on 

numberse 

OverE search is deflned as Ehe proeess by which Ehe buyer seLecEs 

a particuLar e1ement of hls envlronmenE as the sttmulus dispLay f.n order 

Eo cl.arify the descrl.ptive and evaluatlve cognlElons relaEed Eo a brand or 

to the product class as rqel.L as to satisfy moEf.ves such as novelty or to 

c1.arify Ehe saLiency of motives fn a gi.ven slEuatlon, Ie ínvoLvese ac Ehe 

Leastu the buyer shlfEnng his head, for exampLe, and extends ln che other 

exEreme to seeking ouE and Ealking wiEh parEl.cuLar peopS.e in order Eo 

obËa!.n the ínformaE3.on røanEed" as weLL as Ëo formax. search effors, 

search. 

EquaEl.on 1.8 through ¡.8"4 descr[be Èhe modetr 0s formulaE1on of over8 

8n

R ÕVTSF. KL = ( ( ( ¡t'tB. tdEensLve1.y in Ehe testlng of Èhe model" 

EquaEion L8"t ls a 3.evel. equaËíon iahl.ch accumul.aEes the effecE 

of Ehe lnconing rate va,ri.abLe deflned i.n Equatlon nB and Ehe effecÊ of 

B2

Ehe outgo3.ng raEe vartable def lned fn Equation Í.8"3" 

of 



EquaElon 18"2 ls an lnlEÍ.a!. condlEion of the leven descr[bed ån 

Bquatlon 3.8,L, It slmp}y serves Eo inlEia}lze the process and in Ehls 

ånsEanee $.s seE ae zeroo 

EquaElon LB,3 i.s Ehe rate equatlon (OvtS¿), descrlbfng Ehe fX.ow 

overE search out of the correspondlng 1.evel. IE ls simpLy Ehe i.evel 

overg search (ovTs) ac any polnt ln Ef.meu mulEi.plf.ed by a. normal raEe 

aCËri Elon, 

EquaEion L8'4 deserlbes Ëhe normal raEe of aEErltion of overe 

search and sets åE at "999" By Ehis lt ls lmpLied Ehat 11tEx.e or no 

seareh w3.3.3. be maf.ntanned aE Ehe end of each week; åue.e o\rerE search 

bui}ds up during Ehe v¡eek but aE the end of each çseek lE r,llLL be atrrnose 

eonpletel.y empEled' lhås aga!.n rnay be consÈrued as an eNperimenEatr para- 

meEer ¡.¡hlch çvå!.3. be dea!.ts l,¡lEh more exEensj,vetry under EesElng of Ehe 

modeL " 

EquaEíons 1.9 through 19.4 ouELine Ehe buyerss aEEentlonu Acten- 

Elon is defined by Howard and Sheth as Ehe degree of n$opennessre of the 

buyerss sensory receptors for a parElcular feature of a specf.fl.ed sËlmul.us 

dlsplay and a consequenE narrowLng of Ehe range of obJects Eo ¡vhich Ehe 

buyer $.s respondf.ng in reLatlon to Ehe range Eo whl.ch he is exposed" IE 

is one of Ehe three meEhods by vy?rich Ehe buyer conEro!.s the ftrow of 

ånformation into hl.s nervous sysEem, 

R .{TT"KL * (SM.K*'STA,K)*LOGN(MOTIVÛ.K) 

L SP,K a SP.J+(DT)(ATT"JK-LOSS,JK) 

N SP á 240e000 

R LOSS.KL = (SÞ.K)(ITSSN) 

C LOSSN ø .999 

{^ 

ã.> 

Í.9, x 

Lg "2 

J,Yø.) 

L9 "14 

83

A,TT - AÈtenÈtron (Units of É'Energyun) 

SP - SElmuLus Pooj. (UniEs of reEnergyer) 

Sp - SLïmuLus poo1 InLEIaL CondtrElon (untts of, É6Energyúe) 

LOSS - SElnul.us Loss (Untts of trEnergyÉú) 

LOSSN - Normal Loss (Dírnensionl.ess) 

Equation L9 ls a rate equat$.on describíng the modlfied f}olr of 

externai. sÈimu1.f. flowing lnEo Lhe pool. of stîmu!.i.i. that may be pogen- 

tial¡.y received by the consumero It ls a functlon of the external stimulus 

dlspl.ay (3M) ana Ehe degree of sEimulus amblguiEy (SfA) modul.ated by the 

need l.evel. (MOÎIVE) of Ehe buyer. Again the muLlpllca.tlve effect of Ehe 

need LeveL i.s construed as betng a X.ogarithmic function and r¿f.X.X. be dÍs- 

cussed subsequentLy, 

Equatlon L9'L ls a LeveL equatåon which accumul-aEes Ehe infLow- 

lng sËlmu3.1 deflned in Equation 1.9 and outgotng sEimu1l defÍ.ned tn tquatåon 

L9,3u 

EquaElon 1.9.2 ls slmpl.y an lnf.EÍ.al condlEion seE for Ehe Level. 

equation 1.9.1 to LnlEl.al.i,ze Ehe processes Ln che sysEem, IE was arblErar- 

lly seL aE 2¿+Or000 to ån1tiate the processêso 

EquatÍ.on 1.9.3 ls a rate equation regulaEfng Ehe ouEfLoç¡ of sElmull 

from Ehe Level. of sEírnu1us pooX. (Sf¡. IE ls descrlbed as a funcEion of 

Ehe Level aE any po3.nE Ln Ei.¡ne mulElplled by a correspondlng normai. l.oss 

rate (LOSSN) " 

EquaElon L9.4 seEs this norrnal Loss rate at "999 so a.s Eo reflecE 

f.iËL¡.e or no carryover of sÈåmultl 1n Ehe pooi. from one period co anoEher. 

ItrquaÈf.ons 20 and 20,L describe the degree of, sEf.muLus amblguf.Ey 

present at any poinE ln Eime" lioward and sheEh (1969) def,ine stf.mulus 

ambfgulty as the track of clarlty of Ehe sElmul.us disp3.ay ln communicatång 

the descrlpfive and eval.uative aspecÈs of the brand and product c}ass and 

the naEure of moEåves" 

aA

là. 

l- 

STA"K 

STAT 

TABHT (ST¡TT eSM. Ke0 r g00E3, B0E3) 

0/L/ "g / "Bl "75/ "6/ "5/ .4/,31 "25/ "2 

20 

20.1 

EquaÈlons 20 and 20.1. describe a funcEíon for deEermlnins the amount 

of stlmulus amblgulEy (ST-d) presente gfven a parEícuLar Level. of exEernal_ 

sElmuLi (SM) dlrecEed Eordard Ehe consumer. The va.lue of STA ranges from 

zeto Eo L Eo refLecE Ehe varying degrees of sensiElvley Eo incoming lnfor- 

matf.on" The functlonal. relaElonship exlsEing between Ehe stlmul.us disptay 

(SM) and Ehe ambtrguiEy (STA) is graphtcall.y depicced in Figure 13" 

The graphi.caL reLaEionship depieEs a direct negati,ve correÏ.af:ion 

beEween sti.muLus ambiguity (srA) and Ehe LeveL of stLmutrlí (su¡. The 

ìmpLicaE3.on be$.ng thaE as Ehe number of stimu1åi. bearing dovnr on the con- 

sumer increa.ses there rviltr be a decreaslng rate of peneEration f.nto the 

consumer or rather greater sEf.mul.us arnbigutEy" ThÍs phenomena. belng 1n 

generaL correspondence wi.th psychologicaL empirícaL daEa" 

EquaElon 20"tr 1s Ehe EabLe of va1ues whl.ch stimulus ambigulty may 

assume depending on the LeveL of stimulii dlrecEed Eolard Ehe consumeru 

The values chosen are a,rblErary but Ehe general. shape of Ehe curve chosen 

ln FÍgure t3 is the cruci.al. facÈor in operatlonaLizlng the stmulation model. 

Equa.Eions 21 through 21,2 esEabt,ish Ehe degree of percepEual bias a 

gf.ven consumer r+iLL exhLbiË, Hor,¡ard and SheËh (X969) def ine perceptua1 bl.as 

as a. eompLex process consisting of Ehe percepEual and cognlElve devÍ.ces 

r+hereby the buyer dlstorEs or changes the mean!.ng of the l,nformacion he has 

al.ready Eaken tnEo hls nervous system throLlgh aEEenEÍ.on. 

A CONTM = (SF"K) (1.-STA"K) (¡,OEU(¡AOTIVE"K.PAT.K-ÞCON"K) ) 2L 

A BI4S,K = TÀBHL(BIASIeCONTM.Keoet0Ð6r186) 2L"L 

T tsIAST s LlLl,91"9/,8/ "81,61"6/ "3/"21"L 

2L"2 

B5

B6a 

J, ''l LJ:,,\ 

lß*.*li:t* .?,Yji:å-9ii-ifi,!l¿"ljt-gjl i$ùLÐ 

5ì1¡l: ¡ltr::f.]. í,r.:i^r, S'Ll¡rt¡.[us ¿i::L:[p;s! ¡;r' 

ST,ti: f¿lrle StlniuLus P,rrltr.iqulcv fabLe 

SlrÍ ,¿luxålfary SEårnulus i.iu3.fiipi{er:

480 

Sþ1 '83' 

(sra r) 

s T ! tlvi t.t Í.. t"i s l\ M t3 E c_";q..¡ fi Ty 

Frfi.il 

8ó

CONTM - Contlngeney MuLEåpLler (DåmenslonÌ.ess) 

BïAS - FercepEual. Bias (*') 

BïAS'| - Þerceptuan Bías Table ( 5r ) 

Equabions 21 and 21"3. describe a function for deEermtnine Èhe 

amounE of percepEual bias (BIAS) presenEe gfven Ehe stage of Èhe contln* 

gency mul.tiplier (CONTM)" The conE$ngency mulEipller has been added Eo 

integrate the effect of the lnternal. characterlsËfcs of the consumer wl.th 

the sEate of tshe sEimul.li presenE ln Ehe consumere In thls respecEe Ehe 

sElmulus pool. (Sp) ls muLtiplíed by rrdl-rs the sEate of the stlmuLus ambl- 

gulEy (STÀ) to offseE the prevlous percepcual. distorEtron in Ehe opposiEe 

dlrecElon. For instance, íf Ëhe sti.mu1us dispLay (Stq) nas been subjecEed 

Eo a hlgh degree of amblguiEyu Ëhe Leve} of ståmuLii ln Ehe pooL (SP) yrÍ,!.3. 

be quiEe Low. In order Eo ensure EhaE íE is noc furEher affecEed marked3.v 

by amblguiEy iEs negative !.s taken and al.tr of, mosE of the sËlmun Í r+1X.X. be 

unaffecEed" To f.ncorporate Ehe state of the lnEernal characterisËi.cs of 

Ehe consumer, the sElnul,ii (SF) mulEfplíed by Ehe negaEive of the sElmul.us 

ambiguf.ty ls moduLated by Ehe LogarlEhmf.c su¡nnaEi.on of need level. (MOTIVE), 

Ehe atEitude of the buyer (A,T) and Ehe confldence (COif¡ Ehe buyer exhíbiEs 

Eor¡ard Ehe product tn quesE$on' The addlEÍve rel.ationshlp lnpLylng Ehe 

f.mporËance of all. Ehree var{,ables. Agai.n, Ehe naEura1 Log is used as a 

convers!.on coefficlent in translating lnEernaS. sËímull' Eo lnternaL charac- 

terlsEics of the consumer6 

The vaLue of bias ranges from ,L Lo L Eo refi.ecE che varylng degrees 

of bi.as toward internal. sElmuLí present 1n Ehe lndivlduaL. The functfonatr 

rel.atl,onshlp exlstf.ng beEween the contlngency mulEipLÍ.er (CONTM) and Èhe 

perceptuax. btas (BrAs) ls graphf.canS.y deplcEed ln Flgure 14" 

The graphicatr reLaEíonship depicEs a sEepwlse negative correlatLon 

87

BBer 

"li:Lri*ål,"ll 

' i.Ì ï ¿,s 

LUi\ l_i,i 

ß i ¡'¡S'I 

FïtlU Rll L ¿+ 

-uçJi 

'I'\:fr i! rli¡ l:tìil rt-t' tOtn ii4ì.í¡î 

årrx!.}lerry Po::cep{:uaL Bl.¡¡.s 

¿!u.>rilL;:.ry Cair';ån¡çeltcv'i.iuå'el¡:Í.ien 

.F,,Lt ^ Bles f:bLe

I 

CONT1"1 '86' 

|i);r EÌ rr' l: i3'F I E rl. fi 

; Ç ;,.r -r¡ 

[: I t-r. l4 

Bif:\S 

(arasr) 

B8

eEi.neen perceptual. btas (BIÂS) and the contf.ngency mutrciplier (COl¡t¡l) sueh 

EhaE as Ehe conEtngency mulElpt.ier lncrea.ses Ehe !.nformatlon stlmu!. li rq,ilL 

be subjecÊed Eo greater percepEual blas, For i.nstancee as aEgiÈude and 

confidence i.ncrease around a g!.ven producEu the conEíngency muLtipLier wiÍ.L 

tncrease and lnternal. sEi.muLtri wiLl become more btased and disEorted" Ehere- 

by creaELng hablt formation" 

EquaElon 2L,2 Ls Ehe Eabl.e of values wtrlch pereeptua} blas (BIAS) 

mây essume dependtng, of coursee upon Ehe contingeney mulEi,p3.ler (CONTM). 

.Agalnu the values chosen are arbÍtrary buÈ are sete horøeveru Eo ref1eeÈ 

presenE psychol.og1caL daEa supporLing such phenomena" 

EquaElons 22 ehrougb 22"1+ perform the funcEion of bîaslng Ehe f,nternal. 

sEåmul.å (sP) and EranstraElng lE fnEo a sti,mul.us as coded (g$c). Equation 

22"t+ Ls a race equatåon wtrich esEabl.{shes Ehe Levetr of s-a-c ln conjuncti.on 

rrgEh 22e the ouEflow raEe equation. 

R ATR.KL = SAC,K*ATRN Zz 

C ATRN = 

L SAC"K = 

NSAC=02Z"3 

"999 

sAC"J+"(DT) (pnR,.lr-.4,TR,JK) 

2Z"L 

22,2 

R PER. KL = 

ATR - 

ts IAS "K¡"SP.K 22,1r 

AEÈritlon RaEe (Unlts of reEnergyw) 

ATRN - 

S.4C - 

AEEritíon RaEe litornat (DlmenionLess) 

Stimulus as Coded (Units of ndEnergyíÈ) 

S*\C - SElrnul.us as coded (íntutat conditlon) (Unlts oe 

paR - percepËion (unrts of úíEnergyÉd) 

üûEnergyÉs) 

The equatfons stmp1y compuEe Ehe !.eve1. of S"ÀC a.s a functlon of the 

degree of percepElonal. bias (BfÂS) and the Level oÊ stimuX.iÍ. tn the stlmuLus 

poon (Str¡" Equatïon 22.1. seÈs a norman raLe for aEtriElon of the stlmulí! 

as coded 1n the pool. at ,999 so as Eo empty the Leve3. aE the end of each 

rnleeku Ëquation 22"3 Í.ni.t[aLlzes Ehe processes r¿íEh s-a-c set orl.ginaL1y at 

ZêfO" 

B9

The perceptua!. subsysEem ls Ehus desl.gned to fÍl.Eer or magnf,fy 

lncom$.ng exEernal i.nformatfon florøs" A,s previously exp}ainedu iE Cakes 

stlmuLil emanating from Lhe sEimulus dlspLay (SM)e subjecEs iË Eo stlmuLus 

amblguity (STÁr) Eo create a reservoir of lnEernal selmu1ïi (Sp)" The 

internal sElmull are Ehen subJecEed Eo percepEual bias (BIAS) and converËed 

into a pool. of sElmuli,l as eoded (SAC). The s-â-c then becomes internal.ized 

sEimul.i which may prompt activaLl.on Eoward purchase or reínforce the same" 

9t

3u Lqeqll4g S_r¡qgysFep 

The Ï.earning subsysuem is referred Eo by I{oward and SheEh (tS6g) as 

Ehe heart of the Èheoryr Ehe hypotheElcaL constructs. The Eheory suggests 

EhaE there are seven basåc trearnf.ng consEructsr l) MoEivesu 2) Brand Compre- 

hensionu 3) Choice Crlterfau 4) AEEiEude, 5) InEenËiono 6) Conftdenceo and 

7) SatisfacEi.on, 

the model util.lzes a simf.lar classificaEory procedure and idenEifles 

each of Ehese consErucEs as Ér'staEesÚ of Ehe system" FÍgure Í.5 is a dåagram- 

aEi.c represenEaEion of the seven construcEs and bheir lnterreLationshíps 

internally as welL as externall.y wlEh other subsysËems" 

An åEter,lpt wlLl be made here to deaL indívlduaS-ly wiEh each of ehe 

consLrucEs according to Ëhe sequenee of equatf.on numbersu 

þlo_EiYeså Are defined as the blogeníc or psychogenlc needs, r.ranEsu 

or desires of Ehe buyer f.n buying and consuming a producE cLass. They incLude 

Ehe conscf.ousLy sought goaLs €ha.E are consi.dered Eo determine behavLour. 

23 "t+" 

The modeL ouElínes Ehe formuLaEion of moElves 1n equations 23 through 

R NI¡,KL = (((cui.t,t

92b 

\t1,9.1.åIJLE 

BCI,N 

\,it.\ 

JI'' L 

qÂ 

irtl\ 

l-J (] 1ì 'f, 

filcui{tT $.5 (eor,r:" } 

.1,i1¿FJ: 

*ryru;9il"i$ll*I.Ti:i 

Çansta¡rî: 

liate 

Ì.,eveï. 

üêfe 

Constarri: 

l{*i:e 

Levc:i. 

ItaEe: 

üong'¿'¿nc; 

Coilsf ¡Í"rt: 

tt4i:E 

B::¿r,r,l Ccrapr-ehens L on 

¡1"t Ë:,: ! i: ! clr- ì'l'or'iua I 

0ho 1*e Llec $. s å o:',, 

Cîro$.c* Crlf:erïa 

Chalcc AetrLeisn 

Cîtc!.cc r'rtfrl tïcn ;ìor-inal. 

S* U i. sf ¡rc gi on r'r¡r:l:¡ i: i on 

ii ¿--i: i s-; iac f L cn 

Sr,¿t'ii slf ¡rc'cf r¡n 4'.:'c::'l I !.on 

SâL f s í.';-:':'u. lcn,iû t::' I',: i. an 

iìori:i¡l- 

jjiu,i:ij:l"r¿iiì,:: l3¿iLì sf ü[ì't" !.û[16

v /-e 

335tif¿,_r. 

sl.'Å. 

Sl¿C 

ntlf '¡ 

$üCL 

f :;F"f; 

r.TÌI 

ûviç i¡ 

t,1¿i 

t'¡ ir 

l'!Lr'L T V ii 

J)iì 

i.ì:'. f,Ì 

^r? 

,(1 ). 

A-,å 

/r L r.i 

1ÏIiP 

:t 

R.'t:ß 

i ì.,i'1 

ÌlTBLi 

1l f B¡'iltr 

(:F 

C,Ji'ì 

ü011¡i 

Iity 

3i.. 

iì l. 

Dt:ta 

FTGI.]RII !.5 

jj.j-rir 

ilåil-9¿år\l:Jlal 

Á"uxí L f irry 

Lcvei 

11u:t!,!. !.*ry 

Âuiï1i I ¿?ry 

.1r,u:*Ìt 1å ¿lry 

/"tixl Í. 9- r'ei' 

Áuxli {:íìry 

ila i: c: 

liuxå li il;rry 

Ra *;e 

R¡¿te 

l,erreI. 

iì-* Ler 

i,"Õ,::r,Ì qä.T-ì.t: 

iì,r (-,r 

1",6r.;¿: l 

iì,at:e 

Crin"s t:ai.-¿t: 

ilu xi i f",nry 

.4.uxå å í *:ry 

Kat:e 

ï" c,rïc¡L 

Il{ìte 

CsirgkanL 

liåtû 

Lels'el. 

i.-ûfts i:.î¡rit:: 

riü:

i \/ 

,./' 

, CULT 9ç16 , ê\p 

i - ,rì; - 

; :lMP_

ÌlquaEion 23 estabLishes Ëhe S.eveL oi moE!.ve r,.r1Ëhi.n Ëhe learnÍng sub- 

system' Ït i.s Ehe funcEion of severaL variabl.es" TE Ís Ehe funcEion of 

the additive average of five exogenous variabl.es of cuLture (CUi,t)u Social 

cLass (SOct)e personality (PERS)u fínanciaL sÈarus (FIN) and sociery (SOC). 

A.gainu Ehey are ín a muLEiplicattve relaEionship wíEh sElrnul.us ambigulEy as 

Ehey represenL exEernal facEors which musÈ be subjected to ambiguity (STA). 

These factors are Êhen in a muLtiplicatlve relatÍonship with confidence 

(Col¡) rshich rvlLl foster habit formation if Ehere is sufficient saEí.sfacÈion 

tríEh purchaseo For instanceu shouLd the consumet' exhibit zero confidence in 

the productr Ehe effect of Ehe exogenous varíables rri1l be nul.l.ified and Ehe 

fírm must depend on lEs exEernatr lnformaEåon fl.oi+ Eo creaEe purchase acEi.on. 

The fnternalÍ.zed sEimui.us reservoi.r (SAC) musc be EransLated Ehrough 

a converslon coefficienË to provlde equa3.ization wíth Ehe Í.nterna1 c¡arac- 

terisElcs of Ehe conSUfiêro It is for this reason Lhat the experimenEal- 

parameEer functlon (SQRT) has been uElLized" This experlmentaL paramecer 

tsill' be deaLE with more extensively under tesElng of the model" The lasg 

facËor in equation 23 1s a consEant of 475r0OO uniEs r¿trich is added rveekLy 

as a normal need formaLion requìrementu As discussed prevíous!.yo Ehe mode1 

deals wiEh a convenience sEaple good for r¿trích a need arises weekLr¡ or 

regularly and it is for this reason Ehat â consEant need is a.dded each ¡¡eek" 

EquaEion 23"1 is the level equation l¡hich accumulaEes the ra¡e 

defined in Equation 23"3' The reductíon in EquaElon 23"3 (drive reducÈion) 

is specifled as the functi.on of a normal drlve reductlon ra.te p1us a consEanE 

saEi.sfacEion factor. The normal dri.ve reducEion factor of ,ggg defined in 

Tlquation 23.1+ is íncluded to clea,r out any rernaining need at Èhe end of the 

t'¡eek. Ïn such a. situatåonu given chere is no purchaseu Ehere is evidence to 

suggesE ËhaE Ehe buyer h-as shåfted Eo a.noLher brand in hls evoked seËo h 

93

flrst order material delay has been added Ln reducing Ehe sLandard routinized 

arousal of a need" The neE effect of Ehis ís to provide a Lag in Ehe dri.ve 

reducEíon and establish a suffícf.enÈ need LeveL for Ehe buyer without any 

prevíous experience qrlEh Ehe brand in questiono 

Choige Criteria; Are defLned as a cognlEfve sEate of Ehe buyer whi.ch 

refl'ecEs Ehose atErlbutes of che brands in Èhe producc cl.ass Eha,t are sa1lenl: 

ln Lhe buyer0s eval.uaEíon of a brand and are reLated to Èhe buyerss motives 

that âre relevant Eo thls producE cLa,ss in Ehe sense Ehat Ehe brands !n Ehe 

producË cLass have Ehe poEenElal for saEísfying Ëhose motives. Thuso as 

Hor+ard and Sheth (1969) polnE ouË, choi,ce crl.teria Lf.nk moEi.ves to brands 

vLa aEtítude, 

24 through 2¿+.t4" 

The model. ouÈl.Lnes the deve1opment of choLce cri.terla in equatfons 

R CD.KL @ MûTIVE.K*SAT"K+.SQR.Î(SAC.K) 2!+ 

L cc,K = cc,J#(DT) (CD.JK_CA.JK) Z¿+"L 

R CA.KL = CC,K¡kCAN ZA"z 

C CAN a "999 

Z¿+,3 

l\ CC E 0,0283 Zk"t+ 

sBR r ( x) - cRå'i,3B"D5Bi,s tå3" ( låËsFååi T" f .o Ë"åF,$ gfl E, g$,, f 

CC - Choice Crtterla (InternaL Unlts of ÉlEnergy*r) 

CA * ChoÍce AttritÍon (Inferna} Unlts of o'Enorgyçú) 

CAN - Cholce AtbriEion Normal" (Df,mensl.onl.ess) 

CC - Cholce CrlEeria Inlclal. Condition (Incernal Units 

of trEnergydÈ) 

EquaEíon 24 ås a raEe equation descrlbing the formuLation of Cholce 

CrÍEeria (cc¡" It 3.s a funcEf.on of Mocíves (vorivr) modux.ated b\¡ Ehe levex. 

of saEf.sfaction (S"s.f) wíth purchase, Cholce deci.slon ís aLso lnfLuenced 

by Ehe Level of inEernaL stimuLs (SAC) r.*rlch represenEs processed external 

lnformaElon from the percepÈua.i. subsysEem. 

An inexper!.enced buyer unfamtliar iøiEh Ehe producEe or â buyer ex- 

peri'enced rçith the producE and hlghly dlssatÍ.sfied wfth iEu l+outrd possess 

94

egther a very !.ow neveL of sat!.sfacElon (SAT) or none aE aLL" In sr¡ch a 

situaÈlon sat{sfacEf.on would modul.aEe moÈlve such that Ehe ouEcome mlghË be 

zero i'f iÈ were noÈ for Ehe effecE of the SAC" If the firm was dolng a 

capabX.e job of promotion and markeEing the consumer wouÍ.d then have a raised 

choLce crl.Eerta (CC) Level." and aEtltude wouLd be favourabl.y affected, Hor¡- 

evere lf Lhe flrm ¡.¡as both unabte Eo saEisfy the consumer and provi.de a sound 

marketing mlxu choi.ce críEerla (CC) r^rould be unfavourabLv affecEed and our- 

chase deterred. 

EquaEion 24.1 stmpl.y establ.l.shes Ehe level of CC as a funcEion of 

the Ínf lowl.ng rate def Íned f n Equatí on Zt+u and the ouEÊloiø rate def ined in 

Equatlan 24"2" EquaElon 2l+,2s Ehe choÍ.ce aEÈr!.Cion (CA,) raEe $.s Ehe ouEfnow 

from Ehe LeveL and ls puretry the functåon of Ehe !.even aE a specf,fied perlod 

of tlnre mun'€f'plied by a conseenE reducLion raEeo The constant atEriE!.on 

race (CAN) i.s set aE "999 Eo empty Ehe LeveL each perlod and is defi.ned in 

Equatfon 2t4"3" BquaEîon 2&.4 lnltl.al.!.zes Ehe !.eveL of cho!,ce crf.terla and 

provldes a sEartlng point for Ehe slmulaEl.on, 

Brand C.ompreh-enslon¡ Is def lned as a cognlËlve sEaEe of Ehe buyer 

thaE refLecEs Ehe exEent to ¡vhlch he has suff,lcient knowl.edge to esEabllsh 

wel'I' deflned crlterÍa for tdenEífylng che brands he encounEers an4 C6'r1sys 

aval'l'able the ¡¡ords for dåseussîng a. parElcul.ar brandu but noE for evaLua- 

Eing 1t" Howard and SheEh (rsoe¡ suggesE EhaE lnformaEion affecEs aEEj.Eude 

through brand comprehensl.onu 

The model has adopted a slrnilar concepEuallzation of brand comÞf,e- 

hensf on and def lnes Í.Ës formul.aEion in equatlons 25 ehrough zs,4 

95

R BL"KL = ( (T¡rp.tr+cULT"K+SOCL.K+.FERS.K+$OC"K) /5) 25 

x ¡ksAT" I(+.SQRT(SAC,K) 23 

L BC.K ø BC"J+ (DT) (BL.JK-BCA"JK) 25.L 

R BCA"KL = BC.K'kBCA\ 29.2 

C BCAI{ = "999 

25"3 

N BC a Lt+"77 25"¿4 

BL - Brand Loyalty (Incerna.l Uni.Es of rúEnergyev) 

BC - Brand Comprehenslon (InEecna!. Lrnå.ts of ÉEnergyÉr) 

BCA - Brand Comprehenslon AEtråEion (InEernal UnfEs of 

ßEnergyúr) 

BCAN - Brand Comprehenslon AtErt Ef.on NormaL (Df.menstonLess) 

8C - Brand Comprehension InlElal CondíEion (Interna1 UnlEs 

of eoEnergy't) 

EquaEf.on 25 !s å raEe equatÍ,on formul.aEi.ng Ehe Level. of brand compre- 

hens!,on (nC¡" Brand l.oyalEy (Bt) ls a funcElon of the addlÈi.ve âverage of 

Èhe f,lve exogenous vari.abLes of lmportance of purchase (IMP), cu3-Eure (CULT)o 

$oclax. ci.ass (socl)e personar.iËy (pcRS) and socian and organlzaEf.onaL seÈElng 

(SOC)u modu1,ated by Ehe i.eveL of saEisfacEi.on, Agaln, as l,n ehoå.ce eriEer!.a, 

saEÍ.sfacEton (SAT) from purchase may be zero or very elose tso zero, Ehereby 

creati.ng a Lor+ Levetr of (or zero) brand Loyal.ty (BL), Howeveru SAC' reprêsên- 

tång !.nternaL stímul.! ls agaLn added to create sufficlent brand LoyaÍ.Ey (BL)r 

beÍng conEingenE upon an effecEl.ve markeElng mix on the parE of the fÍrm Eo 

provlde brand lnterest on Ehe perE of Ehe buyer" 

Equation 25.1 ls a trevel equation lntegrating Ehe effect of the i.nflov¡- 

lng raÈe equaE$,on defined ln Equatlon 25u as wetrL as Ehe ouËftrowlng raEe 

equation defi.ned ån Equatlon 25"2" Brand cholce aEÈriti.on (BCA) def ined tn 

EquaEi,on 25.2 $,s simp3.y the nevetr of brand comprehensi.on (gC) aE any poínt Ln 

Elme mulEip3.led by a norma.l. aEErltion raEe" The normal aEeriEion rate is 

esEabl-åshed Ín Equati,on 25"3 for BCAN and see at "999. Agaínu the purpose ts 

Eo clea.r out Ehe l.evel aE Ehe end of eaeh perlodu and altor,¡ LitÈl-e or rro 

carryo\¡er lnÈo Ehe next perî.od" EquaEion 25"t+ lnlífa1. lzes the Levei. of brand 

96

comprehensíon (BC) and provides a poinE for esEa.bl.3.shing Ehe model. and simu- 

X.aEåon trIa!.s. 

AtÈiEudeg ís deflned a.s a cosnÍ.C!.ve staEe thaE on a number of df.men- 

slons refLecLs the exEent Eo whlch the buyer prefers in Eerms of Motivesu 

each brandn in hts evoked seE, l.n relaEíon to other brands in Ehe seE. Iloç¡ard 

and Sheth (1969) polnt out that moÈives gíve rlse to choíce crlEeria; andu 

brands ln Ehe buyeres evoked seEe as ldentifåed and denotaEl.vetr.y descrlbed by 

brand comprehensi.onu are eval.uaced according Eo eholce crlEerÍ.a bo yle1d 

attlEude. lÌence, ln aEElÈude Ehese brands are ordered 1n Lerms of theår poten- 

Eå.aL Eo saEisfy the buyert s motives" 

The mode3. is genera1S.y conslsEenË r¿iEh Èhe Eheoryss conceptual. lzaEi.on 

of atEl,tude' tTowever, as !üê,s poínted ouE earÎ. ler" Ehe modeL deaLs wlEh a 

single producE, and correspondingtry attiEude [n Ëhe modetr refers pure1.y to Ehe 

cognl8i.ve staEe of th.e buyer refl-ecEing the exÈent Eo r+hlch Ehe buyer prefers, 

1n terms of motlves, Ehls speciflc brand 1n hís evoked seE 

The model deve}ops aÈtlEude in EquaEions 26 Ehrough 26.4 

R A,F.KL É ((CUtt,x+'socl,K4"soc.K+ÞERS"K)/4):rsAÎ"K+ 

(nc"r)+(cc"K> 12 

L AT.K = AT,J+^(DT) (AF"JK-AA"JK) 

R É"A.KL 3 ÂT"K,kATN 

N A1 

ø "00i. 

C i\TN É 

"999 

AF - AEtitude Formatlon (InEernaL UntEs of reEnergyot) 

AT - A,tEltude (Internal Units of a'Energyri) 

AA - Attí.Ëude .{ttriEl.on (Ingernat Unlts of rsEnergy6o) 

AT - AÈti.Eude Initial Conditíon (InEernaL Uni,Es of ú'Energy'r) 

26 

"I+ 

ATN - Attf'Eude AtËriElon Normatr (Dlmenslon!.ess) 

ËquaEion 26 3.s a rate equaEion r¡?.råch provf,des a decislon poinE ln the 

creaElon of aEtíEude. AEtf.Eude formation (AF) 3s Ëhe functlon of the acidiEive 

26 

26,L 

26.2 

26 "3 

97

ê,vera.ge of Ehe fÍ.ve exogenous var!.ables of culture (CUi"t), soci.al class 

(soef) u soclal. and organlaatfonal setrf.ng (eoC) and personaLtrEy (PERS) modu- 

l.ated by the X.evel of satisfacEion (SAt) from purchase" Agalnn atEitude 

coul.d easli.y beeome zeroe should satlsfaction be zero or near uero" lïoÞrever, 

the average of brand comprehenslon and cholce crlEerÍ.a provides a refl.ecElon 

of Ëhe current sEate of Ehe buyeres cogniËi.ons concern!.ng the producE. ThaE 

isu even though Lhe consumer has noE purchased Ehe producÈ he wi.t-!. possess a 

LeveL of brand comprehension (BC) and choice crlEerla (CC) concerning the pro- 

duct(s) t"¡hich Ïeads Eo the deveX.opmenE of an aEEitude Eoward Ehe producE". 

Äccording1yu the deve1opment of aEtf.Eude (AT) can be traced from initial. 

recogníLlon to purchase Co posÈ purchase sEages" 

EquaEion 26"1 i.s Ehe Level equaEion integrating the effect of the ln- 

flowÍ.ng rate equacíon 26 and Ehe ouEflowlng raEe equatf.on 26"2" /LtEiEude 

aÈEriEfon (AA) again mere}y c3.ears Ehe Level. at Ehe end of each períod Ehrough 

Èhe use of the xrorma} aEtrftlon ra.ce (ÀTN) of "999 deflned ln EquaElon 26"¿+" 

EquaÈion 26"3 símply inltia!.izes che attítude subprocesses and provfdes a 

sEarEing point for the slmul.aEion, 

InEenEíon Eo Pu-rchase: 1s deflned as a cognlÈive seate EhaE refl.ects 

Ëhe buyeres pLan Eo buy units of a parEícu1ar brand ln some specifLed tíme 

perlod' ÏnEentlon refLecLs his aEtiEude, his conftdence, and hls antlcipa- 

Ëions abouE cercain constralnts whi.ch inhíbiE Ehe effects of aEtiEude and 

confldence" These constra.lnEs are elemenEs of his ptranu and ínEentíon is the 

uncomp}eEed portíon of the plan" 

lloward and Sheth (L9ó9) poinE ouE cha,E aEt1tude sîves direcÈion to 

purchase behaviour and thaE inEention Links aEEitude Eo purchase, 

9B

The model concepEuâ1izes Ëhese processes simli.arI.y and outLines Ehe 

formulation of inEention ín EquaEíons 27 Ehrough 27,5" 

.A MSME " K = SAT, K,hAT u K:IC0N " K+ SQRT ( s¿c. N) 

R RTB.KL = ((CUlt"x+,socl.K+.soc"K+TIt{p.I(+FIN"K)/5) 

¡tl'f E!18.I( 

L INT.K = TNT.J+(DT) (RTB.JK-RTBA"JK) 

N iiVT - 500 

R RTB,A,,KL = Ii{T.K:'cRTBAN 

C RÎBAN = "999 

rVEt'{E - l"iodul.ator (Internal. Units of ltEnergyrf ) 

RTB 

INT 

INT 

27 

27 "L 

27 "2 

27,3 

27 "4 

27 "5 

- Readiness to Buy (InEernaL UniEs of e'Energyoú) 

- InEentíon to Purchase (InEerna.tr UnlEs of $Energy$u) 

- InEenEion Initla.l Conditlon (InEernal UniÈs of 'ÉEnergy") 

RIBA - Readiness Eo Buy AËErîEi.on (InternaL UniEs of rúEnergyt') 

IìTBAN - Readiness to Buy ÀtEriElon NormaL (Dlrnensionless) 

EquaEfon 27 is an auxiLiary equaEion rvtrich is essenËiaLi.y a subdivis- 

lon of Ehe rate equaÈlon defined ln 27.1" The auxll-iary equaEion (þiBì,18) is 

a moclul.aEor of the raEe equaEion" Ås defined 1Ë is a muLtiplicaLive funcEíon 

of saEísfacÈion (S"4T)e attitude (4,1) and conff.dence (con), This relation 

adequa,Eely descrlbes Ehe buyeres cognltive staEe concerning Ehe producE aE any 

poinE ln time. Agaínu it is highly dependenE upon perchase saEisfacËlon and 

correspondingly is highly unsEable" To offset the possibLe negaEive lnEen- 

cíon (IliT) evident wiEhout previous purchase and saEisfactlon, Ehe SAC is 

again a,dded Eo make possib}e an intentlon to purchase (INT), withouË any prev- 

lous purchase experience, to aE l.east make an inl€ial EriaL purchaseu 

The raEe equaEion defined in 27,1. simply muttipLfes or modulates Èhe 

effecE of Ehe auxitr lary equa.Eion on the addiEíve average of Ehe ínhibi¡ors 

or lnducers to purchaseg i"€u, Ehe exogenous variabtres of culture (CULT), 

socLaL cl.ass (socl)u socLaL and orga.nizaEionaL seEEing (Soc), time pressure 

(Tii'ß) and f lnancla.t sEaEus (FIi\). 

99

BquaEíon 27"2 is Ehe Level equaEion incegraE!.ng the effecgs of the 

lnfLorving rate equaElon Readiness Ëo Buy (RTB) and the outfLowing ra.ce 

equatlon 27"4 Readlness to Buy .r{tÈrlËion (nf SA). The processes are similar 

Eo those prevlousLy llsted, i.ê"e the LeveL fs reduced each period by a 

normal outflow of. "999 of lEsetf, defíned by RTBAN ln Equation 27"5n The 

inltiaX. condiËion for Ehe Levet ls esEabllshed by INT in Equati.on27,3" 

SatisfaccJlont ls def ined as the buyerss cognlcive staEe of bei.ng 

adequaEe1y or inadequaEely rewarded ln a buyïng sltuatlon for Ehe sacriflce 

he has undergone. !{o¡.¡ard and SheEh (¡.S09) polnE out Lhat saEi.sfaetion does 

noÊ affect purchase dlrectÏ.Vs as do atEf.tude and f.ncentlon, but lnstead is a 

case of â servomechanÍ.sEf.c reLaElon - a purchase and consumption feedba.ck 

reLati'on" Furthermore, Ehey poinc out thaE ç¡e musc recognf.ze thaE saElsfac- 

Ei.on f's not necessaril.y Ehe same as some objecÈive evanuaELon of reward* for 

the satî,sfacElon derived from a gl.fE of $LO. can vary among peopl.e and for a 

gLven person over time, 

SaElsfacEíon feeds back and reinforces a.EEltude Ehereby creati.ng 

habit formaELonu Thus åE nay be posEulated EhaË satl.sfaction affects choíce 

cråLeria and the moEor habiEs of purchase and consumption" At bettu Ehe 

causal sequence 1s from attltude Eo purchase" 

Howard and Sheth (X969) emphasì,ze Ëhat a number of elemenEs deEer_ 

mi.ne Ehe amounE of Ehe effect of satîsfa.cEf.on on atEiEude - iEs ínEensíEyo 

the rel'atlon between antíclpaEed and actua1 saEi.sfacEson, iEs cer6alngyu 

íts Latency, and lts periodlctty" They go further Eo postu3.aEe a funcEf.onaL 

relati.onshf p as foLLows: 

where: 

Aro 2=f (sr*t -Ar)*Ar 

/\, = expectaElon about Ehe brand before purchase 

x00

" +-*.X 

s. - -4. 

E+I. E 

At* 2 

A FSAT.K = 

R SF,KL = 

t SAT"K = 

NSATæ 

R SA"KL = 

C S.AN æ 

PSÁT 

Þ.c 

SAT 

SAT 

SA 

SÂN 

= acEuatr saE$.sfaeELon from purchase 

á Í.s dependenE upon Èhe buyerss anElci.paEed satj.sfact!.on 

(å-) 

E 

and his aeÈual. - saEísfaction (S. '-t+1" . )" 

d AEElËudeu after all, effecEs of saEisfacElon from 

Ehis purchase are worked ouE" 

Thi's reLaEíonship nay hoLd Eruee buE lE ontry Eakes ingo constdera- 

Eion one of the facÈors ltsted wt,ich are posEuLated Eo affecE satl.sfacEf.on, 

thaE belng Ehe relaEi.on between anttcf paEed and acEual- satl.sfaction" 

The modeL recogn$zes EhaE there are many varlabLes which wiT.l. affecc 

saElsfacElon from purchase and Ehat Ehey are noE at al.t Ehat r+ell. undersEood" 

Ðue Eo Ehe greaE dlfficul.Ëy in coordinating and lnregraEing Ehese facgors 1n 

a simulatf.on mode3.e a more slmp!.ist!.c vlewpolnt has bee¡r Eaken Eorçrard saEls- 

facElon' hlhen the model i.s ËesEed we can Ehen examlne Ehe sensiElviEv of 

this sub*process wLthSn Ehe S.earning subsysEem Eo determÍ.ne srtreEher or nog 

greaEer sophisti,caEion f,s required ln deEaf.l.fng Ehe facEors lnvol.ved i.n 

sabÍ, sfactl.on" 

through 28.5u 

The modetr creaEs the developmenE of saEisfacEion !n EquatLons 28 

NORMRN (10 r05) 

P"K:kFSAt.K 

sAT, J# (DT) (Sn" ¡n-sA. JK) 

"001 

SAT" K¡IS/\N 

1"00 

Furchase SacisfacEion (InEernatr UnåEs of o$EnergyÈr) 

SaEisf,acEl.on Formacion (fnEernaL UniEs of sÞErÌergy',) 

SaEÏ.sfacEf.on (InEernal Uni.Es of rrEnergyd) 

SaEtsfactf.on IniElaL CondíElon (Internal. UniEs of 

É?Energyrü) 

SaLf.sfacElon AELrltion (Internatr tlntEs of raEnergyne) 

SaEisfacElon "AtËrltion Norrnal (Dlmensionl.ess) 

28 

28" t 

29"2 

29" 3 

28.{4 

28"5 

101

llquatlon 28 def ines the purchase satisfacEÍ,on obealnabLe at a. given 

Point ïn Elme' In reaLlÈy thl.s is where the slmp}lftcation of Èhe Eheory has 

Èaken pl-ace. SaEisfaction ts vler¡ed a.s a variable evenE idrich has a mean of 

L0 unlts of saEisfaction (SAT) and sEandard devlaEion of 5 unåts" Sa.Eisfac_ 

Eionu however, r¡iLL noE be inEernal-ízed unLess a purchase is consumated, as 

1s evídent from the rate equa.Ei,on 29"L. The LeveL equaEion 28.2 integrates 

the effects of th,e inftow raEe equaElon (sf¡" sa.Elsfa.ctlon formaEi.on, and 

the outflow rate equation 28"¿+s (sa¡ u saElsfaction aEEriÈlon. The leveL 

equation SAT ls iniEialized for the purpose of simutraËlon i.n ilquaÈion 28"3" 

The reducti'on or aEtrltíon in sati.sfacEion as deftned through Equation 2g,4 

is deEermined by a normaS. outf1ow of. LOO1" of itseLf each períod as Der Equa_ 

tÍon 28.5u SaElsfacEion .{ttrlEion Normal (S¿¡l)" 

Confldence: The LasE subprocess 1n Ëhe Learníng subsystem is defined 

as Ëhe extent Eo tdnich Ehe buyer belf.eves Ehat he can esELmaEe Ehe neE pay- 

off; thaf isu Ehe reward from buying a gl.ven brand" 

Howard and Sheth (fg6g) descríbe confldence as Ehe centsral equilibra._ 

tlng construct of the system - rv?ren confidence f.s low, Ehe buyer seeks infor- 

maEl,on and ls Less LikeLy to purchase. .4s informaEion ls acquf,red confidence 

rlses and the probabil. lty of purchase íncreases" .4.s conf idence increasesu 

however, Ehe buyerss Ëendency Eo Eake f.n lnformaEion decli.nes and afEer pur- 

chase confidence may lncrease furEher" Confidence may ïncrea.se as Ehe resul.t 

of seekíng a.ddiEionaL lnformaÈ!.on and noE necessarlLy requíre purchaseo 

The model. has adopted a simii.ar concepEua1i,zaÈf on of conf idence and 

rel'aEes lE dlrecEly Eo saEisfactton from purchase" If Èhere is no purcha.se 

behavlour and no saEisfacEion (SAT) Ehere r+í11 be LicËle or no confidence (CON). 

)a /, 

The formulattron of confídence Ls described 1n EquaElons 2g throush 

L02

R CF.KL - S,AT"K',cBC,K Zg 

L CoN,K = CON"J+-(DT) (Cn,.ln-coNA.JK) zg"L 

R CONA."KL = CON"KJçCONAN 29.2 

I{ CûN = 2"0 Zg"3 

C CûNP.Ì{ = ,999 Zg "¿+ 

CF - Confldence Formatlon (InEernal Unlts of út[nergy,e) 

CON - Conf idence (InEernal Unlts of u,Energy,''¡ 

COi{å - Conf ldence ¡dttrltion (Internal Units of coEnergyÉr) 

CON - Confldence InlEial. CondiÈlon (Internal" Uníts of 

!tEnergyró) 

CONA.N - Conf ldence ,AttrlEion i'lormal (DlmensionLess) 

Equatlon 29 is Ehe raEe equaEion esEabl-íshing Ehe Level of conftrd- 

enceo ïÈ is defined as a funcEion of satlsfacÈion (SAT) and brand compre- 

henslon (nc¡" The Leve!. EquaÈlon 29,n accunuLaEes Ehe effect of Ehe å.nfnow 

rate equatlon 29 and the ouEflol¡ rate equaiulon 29"2" The outftroiE from Ehe 

I'eveL ls seE af: a normaL rare of "999 of íEself as esEabLÍshed by confldence 

aEEråEíon norma3. (cONAbl)u The processes are ínitíaLlzed for Ehe Leve!. in 

Equatíon 29,3 (CoN), 

[03

!+" Ihe OuEpuc $qb.Sys5e¡¡ 

The ouEput subsysEem as dlagramaEtcalLy represenced 1n Figure L6 

is Ehe si.mplest and smallesE of, the flve subsysEems comprlsing Ehe modelu 

Howeveru iEs impaet (purchase behavlour) !s Ehe focaL poi.nt of Ehe model. to 

a Large exEentq TIe Theory of, Buyer Þehavlpug (1969) ouËlines Ehe oueput 

subsysEem to lncLude Furchase , InÈentíonr e AttíEudee, Brand Comprehenslone u 

and AttenEtone. l{oward and Sheth (LO0O¡ refer to Ehese vartables as Ëhe 

variabLes that Llnk Ehe hypothetlcal construcEs Lo the reaL worldu 

The ouEput varlabS.es consLLtuEe whaE may be referred to as a. hier- 

archy of effects rdneref.n AEtenEíono leads Eo Brand Comprehenslon0 whleh Leads 

Eo ALEitude0 u whîch Leads to IntenEíon0 e and which evenLua1tr.y 3.eads Eo purch- 

âsêo Thls eausal sequence being some',ÀftaE ana.trogous Lo ÇúÁIDA',# (€he chaln of 

.AtEenE lon- Interesc -Des I re-A,ct i on), 

the modeL eoncepEual lzes Purchase Eo be soXel.y related Eo InEenEÍ.on 

Eo Furchase (Ii'tT)' The modetr. utlllzes Ehe concept of a, Ehreshol.d here Eo 

chara.cterlze Ehe purchase decå.såon" The formulaEion of the purchase deeåsion 

is outllned f.n Equation 40, 

A P.K s CLIP(l. e0eIi,ìT"KeX) 

P - Furchase (UniEs of FroducË) 

X - Threshold Level of X before purchase occutrs (Inc"Energy UniEs) 

EquaElon 40 is a funcEion describi.ng purchase (F) as a consequence 

of InEention (INT)" The funcElon sEaEes thaE if InEencion (INT) is Less than 

Êhe value X no purchase wlL1 occur and conErarlwlse, if Ehe vaLue of Inten- 

tton ls greacer or equa3. Ehan K, then purchase (P) r+f.3.L assume che vaLue of 

oneo 

Againe Ehe modeL ha.s Eaken a simpl-isLi.c Ehreshold vieçypolnt toward 

inEentlon Eo purchase buE a w1To13.y reat"lstlc one f.n Líght of the comp!.exiEy 

f.0¿+

I 05a 

i? rGUIìiì !. 6 

T h! ll'.t \: 

ir /r n r.,i ËT r '¡Vi}ìt r.t f¡ f,.,ltÌ {ì 1¡ i'¡r1J N,4}iit 

! aÞ¡\_r.(iu¡J;t , ¿r& ,r \/À r'.-(tJ¡rJ.¡vrr 

XNT.' 

iï 

¡ù 

ë.; 

tcv+!. Ïntc:r.;ti'.c¡lr gci ilr¡rehes$ 

fr.il:lî T. flary FureÎìrlse 

lruxå i å rrra' F¡-¡re hase îll:r'eshoä d

SF 

trs 

\r/ 

ÕL,t-ü'PL¡T S [., BSYSTE M 

Ë!G. tó 

(.ri

of Lhe model' The vaLue of X has been defined for simuLaElon purposes bug 

ic serves f.iEtT.e slgntficance eo sEaEe a poínt aE Ì{'nieh purchase musÈ occur 

aE this sEage" 

ÏË ts more reatrisElcu as we3-X. as sci,enE$'flcu Co refer to the X vatrue 

as an experlmenta1 parameEer whl.ch v¡l.LL be tesÈed subsequently and deaLE 

wiEh more ful. ly under Ëhe testing of the model." 

The imporEant point to note trs EhaE the model. cl.ear!.y fol3.ows the 

concepEuaL fra¡ler¿ork of the theory and thac a Ehreshol.d Leve} has been postu- 

LaLed as Ehe basås for purchase decisj,ons,

5. ENggenous _Vj¡rljrbf es- Sgbsyglgm 

The exogenous varlabLes subsysEem is diagramatica.tr Iy represented 

ln Figure 1.7 and consisEs of seven baslc variabLes v¡'ntch are postulaEed 

to causalLy determf.ne output beha.vi,our. Primarf.Ly Ehe exogenous varf.abtes 

provide an lmportant deLlmlEing funcEionu the exogenous vari.ables repre- 

senE facEors Ehat a.re envlronmenEal or teouEsideçi of Ehe theory" They Ehus 

provide a boundary for Ehe theory under consideratÍ,on as ¡'¡etrL as provl.de a 

tooL for communlcaEing Ehe scope of Ëhe Eheory, 

HorEard and SheEh (fS0S) descrf.be Ehe exogenous varíables: 

6The effects of the hlsEory of Ehe buyer - up to Ehe begf.nnlng 

of the researcherB s period of observation - câñ. be thought of, as 

being eonEålned !n h1s exogenous varl.abLes: Ehe lnËensity of his 

vaS.uaEíon of Lhe product cLasse hf.s personaLlËy Eral,Esu his soclaL 

cl.ass, his eulEureu and hls reference groupse as r¿elL âs tflore currenE 

facEorsu such as Ehe amounE of Cl.me he has Ëo devoËe to purchaslng 

hls producE and hls f lnanc!.aL status. Exogenous varf.ab1es 

Ehus serve both an error reduclng funcEion and Ehe functi.on of 

classLfylng peopl.e according Eo fairLy permanenE characteristiesu 

as i.n market segmenEâtÍ.on,rÉ 

The seven basíc varlabLes comprf.sing Ehe exogenous varíabl.es sub- 

system areS ïmportance of Þurcha.seo Persona.l.iEy, Time Fressureu Financlal 

StaEus" Soclal. and Organízatf.onal SetElngu iìeference Group and gocl.aL Class, 

ImporEance of Purchase i.s deflned as Ehe crf.Eeria by wTri.ch Èhe buyer 

orders a range of product cl.asses in Eerms of hls needs" ImporEance of 

Purchase LnfLuences expLoraEory behaviour as welf. as Ehe magrriEude of Ehe 

buyero s evoked set" 


by 

The modetr. conceÞtuaÍ.i.zes ïmporEance of p,urchase as a direcE ouEcome 

the consumer goods cLass Eo rñich the producE beLongs (PC) e as percelved 

Ehe consumer 1n quesEi,on, 

107

l08a 

Yg'l¿33.8 

f l'1Ì'' 

I¡jPÎ 

tul.''f 

cur,'rl 

soct 

sccl.l 

!.UìTS 

l, Ép c.r 

)U\, 

SCCT 

TI,I'P 

TT¡!Pi 

irï I'l 

F,TNT 

Þla 

ovll9 

FC 

Tl.t1ì 

Jî I 

¡10T.tv- 

1,U 

DV 

tîï 

LTì 

TT 

Ì.7 

''IGURE 

$iÌg 

:gå o,Liçu.4:H-.Ì 

Âux9I. !.ery 

Tsrbl e 

nuxt l.l.er:y 

Tabl e 

AuxÈl Í.a¡ir¡ 

?eliL e 

/-ru.xI L !. ary 

Tat¡!. e 

riu:e,Í. i. Ë *r3; 

1f ¿rhL e 

/ãr.¡x! !. Í.âri,' 

'leitrJ e 

áu.:r-i.1. Í.a::y 

1ia'ol e 

ï,ovel 

l,oveI 

F-ux[ !- L a::y' 

LeveÌ. 

Level 

]-.evol 

Ài-i::-à I Í i':r:y 

F.n>:l !. f. a,rar 

¡,l 1J ); ). i. i 21'y 

ri ä;x f, I í ;i '::y 

lìtixl.1. Í, ar¡; 

l*ul111 å nr5r 

Sfiri[ 

lrn¡:ci-ürnce tL" ['ufehase 

lnip+r'.;ance of Pu'¡:c,l':ase Tabl. e 

CuÌ. ture 

CuL ture Ta'el e 

Soclai Class 

Sa*'rat Class'I',s.bi.e 

Fer:.";c¡n¡-,3. I Ey 

Persci¡:.¡rl å ty Tr-b!. e 

$ss i et 3" & 0:r- glx'l i z ¡+ ú å c:t*".T- 3 c+ [ f: 3, n¡ 

Sc,"*â.i,i & rlr:l;i:ir.-:;etI ti^¡;l. 5 st.tLrr¡ 

f a3rl e 

'Ilrïe i?l"es$r¡re 

jlirte Pr:e.gsur:a l.'¡¡.iri ç 

þ-f rsanc Î. e.1, 3 Ëail$s 

Få¡tcncÍel 5'-;¿rüLi$ Table 

Iir:'a.nd üor*¡:reirerr s !. cn 

OveT f, 9eereli 

Prc¡rl',:e ü Gategc'r5t 

Tntenglcn i:t¡ Furchase 

¡tr'e tl Lucie 

I'lotîve 

LC¡h:oi-" - Ul:FC¡i 

Defìrce of. \'sri,etSon fi:r¡r: 

-cft¿rnd¿¡rrd 

--rl!.ruÍ ci ^ .4ggress:'i.r¡o 

äû3" ¡. crT:TÊt: * l-, e¿-¡ cl.li': 

l,c¡ry - iîtfí?r 

1î¡;Þ't * l1¿¡sy

/ IMP \ 

(' * p r) / 

\_-/ 

/ PC 

/Þ 

ro'1 

-â 

t,1 0TrvE \ 

AT 

¡ NT 

rr 

BC 

OVT 

b/ 

.4fi 

' T.t 

LU¿ 

/ 

/ 

/ 

/ 

irL-\ 

/\ 

/soc L \ 

o c trl 

\s 

MOT IVE 

AT 

BC 

OVTS 

INT 

BC 

AT 

MOTIVE 

(v 

"d/\ 

EXOGËNOUS 

rNl 

BC 

\/l\ R. !êu E il- E 5 

F!G. t7 

1'IOT¡VE 

\9/ 

r:\ 

1q*. 

I 

l 

I 

I 

I 

I 

S L.¡ESYSTE M 

/ LH 

/F. 

/ 

b'> 

-A 

INT 

rv:O Tf v E 

¡NT 

lOVTS 

Ð-- 

.-,.il 

"si

EquaEions 50 through 50,2 formul.aEe Ehe exoqenous variabi.e 

Importance of Furchase (Il"iP)" 

A IMF.K = TABHL(Il"ßTepC"KeoeL"0e"1) 

T Ii"tPT = "6/ "7 /"8/ .3/ "S/ "61,5/ "7 f "B/ "g/L"O 

APC.K=0 

IMP - ïmportance of Purchase (Dimensionless) 

rl'lÞT - Importance of purchase Table (Dimensionr.ess) 

pC - Þroduct Class (Dlmensionl.ess) 

EquaEion 50 descrlbes a funcElon for deÈermlning Ehe degree of 

Importance of Purchase (It'fP) according Eo the associaEed product cl.a.ss 

(nC¡. EquaEíon 50.L esEablíshes a range of va.lues r"¡hich ÎMÞ may assume 

dependlng upon bhe consumer goods cLa.ss to whích Ehe brand bel.on,qs" 

The funcElonal. reLaEionshlp exf.sElng bet'*een Ehe Erøo varlables 

is graphícalI.y depicEed ln Figure 18" The axis describing product cLass 

(pC) is subdívided to outLine various appt ícable consumer goods cX.asses 

thaE a producE may assumee The val-ues a.ssocíated Ìrich each subdivislon 

on Ehe (PC) axis are arblËrary and merely utilized to estab11sh Èhe appro- 

príaEe goods cLassificaElon" The axis definlng Ehe varíable Ïþlp represengs 

a conElnium of values wtrlch Importance of Purchase may assume irrespecEive 

of the producE cl.ass chosen, 

-dE Èhe Low end of each producE caEegorye i"ê"¡ consumer goods 

classiflcaElonu Importance of Furcfrase (T¡tp) is depicEed Eo exlst aE a Low 

Level and Eo increase as it moves Eor¿ard the nexË higher goods classifica- 

Eion' It is postuLaEed here thaE Ehe ÍmporEance of purchase exístÍng at 

the hlghest poínE for a glven consumer goods classification r."rilL noE be 

Less than Èhe lowesE poinE on Ehe fol.lowing consumer goods classo and may 

noE necessariÏ.y lncrease pasE Ëhe previous high LeveL of knpor¡ance of 

50 

50. 1 

5t,2 

1CI9

1 nOa 

VARTABLE 

IIæ 

II-{PT 

E1 

FÏGURE XB 

iNDIIK 

ÎYPE OF EQUATIO¡I N.ÀME 

AuxÍliary ImporEance of Purchase 

TabLe InporEance of Furchase Tabl. 

Auxlltary FroducE Category

E 

.6 

\__.---_-_.-.^.__-^.-r' 

.B t. 

\-*._. __-'_._.__--__-:' 

STAPLE COI.JVE NIENCE SHOPPING S1'EClf\L'fY 

PC 

i''JCH Cì,F Ft-!ReE:[ lr 

Ft6. tB 

Þ, !: 

:.10

Þurchase" The relevenE poinE beíng Ehat lmportance of Purchase (l¡lp) varíes 

according Eo Ehe consumer goods classåficaElon (pC) and Ehat iE r-¡ilL be 

slgnificant for a stapLe convenlence good and furEhermore may be appreclably 

higher for a special.Ey good" 

The second exogenous varlableu Culcuree is defined as a seLective 

mafl-made way of mesponding to experience, a set of behavlour patgernso The 

essential core of culture consists of tradlEíona1 !deas and especiatly 

their atEached values" The model concepEualizes culture as belng prinartrly 

a scandard mode of behaviour from wilich deviatå,on oceurse The impl.icati.on 

being that the ctroser an lndividual Ls to Êhe standard Èhere rvålL be Less 

f.nhåbiEion Co purchaseu and vf,ce versao 

(cuLT) " 

EquaElons 5L through 5L.2 estabi.ish Ehe exogenous vari,able cul.Eure 

å CULT"K é 

T CULTT * 

A DV"K = 

CULT 

CULTT 

DV 

T"ABHL(CULÎTeDV.K30Þ1"0e,1) 51 

L,0l "9/ "25/ "2/ "L5f ,L/ "09/,075/ "051 "O23/O 51.,1 

1 

CulEure (DimensionLess) 

Culture Table (Dl.mensiontess) 

Degree of Varlation (Dimensionl.ess) 

EquaElon 51 descrlbes a funcElon for deternlníng Ëhe inEensi.ty of 

culEure (cuLT) according Eo the assocl.aEed degree of var$.aEi.on (DV)" Bqua- 

Ëion 5L.1 estabtrishes che range of values which CULT may âssume dependingo 

of courseu on Ehe degree of variation, Equation 5L.2 simply estabLishes 

the degree of varíatf.on (nv) ac one and thereby creating a cuLEure inEen- 

sLEy of *9, 

The funcEl.ona,L renationship exisÈing between Ehe two varíabl.es ís 

dla,gramatical.Ly represenEed ln Flgure 19. 

r.t 3

3-L2a 

V"âRIABLE 

CULT 

CULTT 

DV 

FÏGURE T9 

TNDEK 

TYPE OF EQgATIOI¡ I{.AME 

Auxi L lary Cul. Eure 

Table CulEure Table 

AuNtl.iary Degree of Varlatlon

F' 

J 

:) 

U 

+É***@ffi.*Æä;lï* 

DV 

(cur-rr) 

_s..+q,-._ 

__q_õqa

The funcEi.onat reLaEionshÍp ex!.sEi.ng is !.argeLy asymptotic. A 

very sLight degree of varlaElon (pV) r¿ill make a signífÍcang change ln 

CuLture !.nEenslty (CULT), and deEer purchase somer.rhaÊ evenEual. ly. 

Howard & SheEh (X969) ciÊe empirÍcal evídence from an unpubn lshed 

doctoraL dissertaElon by L, S, Graham (fgSf) tnat Í,n studylng socíal class 

dlfferences ln the accepEance of i.nnovaEions, Ehere were Large varlations 

betsreen IEaLlans and oEhers ln their ra.Ee of a,dopElng Ehe superma.rkeE as 

the place of purcha,se; and ln Guatematr a, Ehe purchasíng habits of Indlans 

dtffered sharpLy from Ehose of naËives of European doscent. 

i.r3 

The Ëhl.rd exogenous vartable, Soci,aL Cl.assu 1s def lned as a concep¡ 

dnåch deseribes tshe conditlon Ehât a soci.ety f.s dlvided f.nro classesu EhaE 

some of Ehese classes are vi.ewed by Ehe members of Ëhe soclety as belng more 

l,mporEant than others, and that in a socleEy the cLasses can be ranked in a 

hierarchy based on Ehe views of lEs members abouE the vaLue of each cj.ass 

f'n Eerms of lts conErlbuElon to the socieEy as a çrhole. îJoward and Sheth 

(1969) postulaEe that a personús soclal cl.ass Lnfluences hts motives and 

aCEt Eudeu 

"EquaEi.ons 52 through 52'2 descríbe the creation of the exosenous 

varíable of SocLal. CI.ass, 

A SOCL.K á TABI{L(SOCLTeLU,KeOeL.0e"l.) 

T SOCLT = "6/ "7 /"8/ "g/"h/"51"6/,7 /.9/ "glL,O 

A LU.K = "8 

socI, 

SCICLT 

LU 

SocíaX. Cl,ass (Dirnensíonl.ess) 

Socla.l C3.ass TabLe (D!menslonl.ess) 

Lower Cl.ass - Upper Cna.ss (Dl.mensionless) 

)¿ 

52,L 

52"2 

Equation 52 describes a funcEíon for determlning Ehe Soc!.aL Class 

emphasl,s (SocL) g$.ven a parEf.euLar sEatus (LU) 1n Ehe eonÈ!.nLum" EquaËlon 

52.tr oucl lnes Ëhe range of val.ues ç/nlch SOCL may assume depending upon the

lndivldual ptrace 1n Ehe socÍ.aÍ. cLass continlum (tU¡" Equation 52,2 

merely esEebllshes the polnE in Ehe contlnium aE .g" 

Fl'gure 20 graphicat.l.y deplcEs Ehe funcElonaL rel.aÈionshlp exi,sglng 

beEween (stcl) and (LU)" The funcElonaL retratlonshÍp i.s, for the mosc parte 

a posltive correl.atton between Ehe Ewo varlables" 

the LU axis has been broken lnEo class di.sElncEions which are purely 

arblErary. The purpose of Ehe breakdor¡n was to esEabt.i.sh that Ehere t¡i}3. 

be I'ess inhibiEion Eo purchase ln the Lovrer classes buË as one moves lnEo 

the mf ddXe cl-ass Ehere i.s greater lnhlblcíon üo purehase" The tnh1blELon, 

however, !s only Eemporary and becomes tr ess of an trnhi.bitor as one moves 

f.nEo Ehe upper middle and upper cl.a.ss segments, 

Horrard and sheEh (1969) cLEe empirlcaL evldence from Bauer (1960) 

wfrích supporEs Lhås reLaeionship" Bauer purporcs EhaE Ehe midd1e class 

shops r¿íEh Ehe greatesf: inEensíty - Ehey detr iberaEe and pl.an more Ehan eiEher 

the l-ower or Ehe upper cl.asses" 

The fourEh exogenous varl.abl.eu PersonaS. ltyn is def ined as an endur- 

lng di.sposiEion or qualíty of a person that accounEs for hls reLaEive con- 

sistency ln emoEíonal, temperamental and soclal behavíour, persona1lEy 

Eraits represenE motlve eontenE and accordlng1y Howard and $heth (lsoo¡ 

postutrate that Ehey affect moELvesu The modeL eoncepeual.izes PersonaX.!Ey 

sf'mllarl.y and views personallty as a conËínium stre¡ch.lng from Ëlmld Eo 

aggressf.ve, rvl.th LEs assocl.ated behavf.oural. imp1icaElonsu 

Equatlons 53 througtr 53.2 ouËX.ine Ehe developmenE of Ëhe exogenous 

varlabl,e ÞersonaLlEy (PERS), 

f{ FERS.K E TABHT(pERSle TA"Ke0e1,0e,1) 

T FBITST E ,If "Ll,2/.2/,3/.3/ "4/ "t+/.51"7 /L,0 

A Tå.K = ,9 

53 

53"1 

53"2 

IL4

J 

u 

aÀ 

¿ -a 

'-*l t*--,,*J 

LOVúEIì L, MIDDLË 

cl r\ 1: Ê tDù i¡ 

Jvvni-Li- 

LU 

Í: tG. 

(s o c r-r) 

t^*--.j-.-'.-"--" C*.-*,.."*1, 

T.I IDD L Ë U. N,iI DD LE UPPER 

..' |\ P 

û ! ¡n \ \ 

LV 

911: 

},L.J

FERS - personat lEy (Dlmensionless) 

PERST - ÞersonaLlty Table (DimensÍonless) 

TÀ - Tj.mtd ,Aggressive (Dlmensíonl.ess) 

Equatlon 53 descr!.bes a funcElon for d,ecermÍ.níng Ehe inEensåEy of 

Fersonality (BERS) dependenc upon Ehe buyer polnü on a conElnlum of Tinrid- 

iEy - Aggresslveness (TA), EquaÈion 53,tr f.s a eab!.e of values ç+hlch FERS 

may assume depending on Ehe potnE chosen on Ehe contin3.um" EquaEion 53,2 

esEabl.Í.shes the poånE on the limid-Âggressive conti.nl.um aE ,9" 

!'!gure 21. graphicaLtry depictss the funcEional reLatf,onship exÍsEing 

between FERS and TA" The funcElon ls generatr l.y a sEepwise direct posí.tive 

reLaEionship beEween Ehe tr.¡o variables" As aggressiveness Í.ncreasesE per- 

sonali.Ey i.ntenstÈy (ÞERS) f.ncreases and Eends to encourage purchase sü.gnåf Í- 

canEny' There ís n IEE].e empf.ricaL evídence to subsEanEi.aEe Ehl.s re1atLonshi.p" 

Howeveru by equaElng EímådlEy Eo fol-!.ovrership Lraí.Es and aggresslveness Eo 

lea.dershíp traltse more credence i.s given to Èhi.s re!.atsíonshíp" 

Socia1 and organlzaEíonal. seEElng is defined to incLude an indivld- 

uaL reference group and formal organ!.zaEi,on. They are sEaged to operâEe Eo 

change Ëhe sicuaEion and Eo provide neÌd lnformaclon durl.ng Ehe period of 

observatlon" the model. characEerlzes an åndivfdua!. buyer occupyi.ng a 

poslEion in a fol-1otrer-Leader contlnlum ln both the reference group and 

formal organtzaEion" For Ehe purpose of Ehf.s study å,t ls posEuLaEed Ehat 

an índlvídual. buyer?s posíEi.on Ln both organlzations r¿ilL be si.mÍLar. 

EquatÍons 5l+ through 5¿+"2 ouElf.ne Èhe modeles defïníElon of Social 

and organízaElonai. seEEíng (SOC) " 

A StC,K = T.4BHL(SOCTeFL"Ke0el.,0,,3.) 

T Soc 5 ,3/"¿+/ "5/"5/,6/"7 / "h/,6/ "g/ "glL"O 

A FL.K = ,9 

5¿ç 

54,3. 

54"2 

1tr6

3.'l,"7 a 

VARIABLE 

PERS 

T.q 

PERST 

FTGURE 21 

ÏNDEX 

qYPB O[' EQIrATrc$ i{Ar'rE 

Auxi 1. lary FersonaL i. Èy 

Auxil iary limld-Aggressl.ve 

Tabl.e Fersonat IÈv Table

É, 

.B 

Tl tvll D 

TA 

t] Ë t:ìi S û N! ,Ê, it, F "f*y 

ËtG. ?"t 

(n ensr) 

AGGRESSIVE 

t. 

!L7

scc 

s0cT 

FL 

3.1 I 

Social- & OrganízaEiona1 SetElng (Dimenslonl.ess) 

Socf.al & Organl.zationaL seEtlng îabLe (DimensionLess) 

FoL1ovrer-Leader Continíum (DímensÍ.ont ess) 

Ðquatlon 54 is a functl.on describlng Ehe Socian and Organlza¡ionat 

SeEEing lnEensiEy (SOC) r¿l'rlch ts dependenÈ upon Ehe buyeres posiglorr on 

che Fo}lower-Leader (I]L) cont{.nium" BquatLon 54,1 1s the Eable of vaLues 

ishfch SOC may assume dependíng upon Ehe polnE established on Ehe Foll"orqer- 

Leader conElnÍum (l-L)" llquation 54.2 establlshes Ehe point on the FL 

eontiníum at "9E i,€.e a more leadership oriented lndåv$.dual. 

FÍgure 22 gtaphieaLl.y descrlbes the funcEiona!. reLationsh$.p exist* 

i'ng beCween SOC and FLn The relaEionship ls Large}y expressed in Ehe form 

of a posåLlve correLatíon beEween Ehe EÌ{o varå,ables. In this insgancee an 

åncrease a1.ong Ehe conEi.nÍum toward Leadership represenEs an increase in 

Socíal and Organlzati,onal $.nEensity (SOC) u Eowever, íE i.s posÈun aeed thaË 

there is a, míd range al.ong the conti.nlum r.¡here the soei,aL and organlzaE!.ona.i. 

inÈensity Ls reduced" This t+ou!.do perha.ps, be represenEaElve of those 

lndlvidua.Is who are neither devoted follo?Íers nor aggressive leaders, and 

are somefdrac hesiEanE in the aceepcance of new products and ideas. 

The exogenous variabl.eo Ti.me Fressuree Í's defíned as Ehe ínverse 

of Ehe amount of tlme Ehe buyer has avaÍ,lable Eo perform Ehe behavÍ.our 

requíred for Ehe acEs of purehaslng and consumpElono lt ls Ehe amount of 

Eime required Ëo penform these acEs Ln relatLon to Lhe Eíme he has al.l.o- 

cated to hl.nself for doÍng them. IE incorporâEes momenEary insEead of Long 

Ëerm changes ln Ehe ti.me avalLabX.e for purchasi.ngo The model. ugl1 lzes a 

sim3lar conceptuaLizatl.on of Time Pressureo buE vÍ.e¡¡s Ëhe Þressure as a 

continl.um sEretching from Lor¿ Eo hf.gh pressureo

T.l"9a 

FIGURE 22 

Th]DEX 

VARJ4BLìî Type ilf Equation Nå¡.rE 

SOC AuxlLiary Soclal & Organlzational SeEEi 

SOCT TabI.e SociaL & Organi.zaEional 

9elting Table 

FL -{uxårl.larv FolLower - Leader

u 

ø 

FOLLOWER 

õ v\ î-rn ¡:, F O 

;Ì \.., t- I ¿'t¿ L" C'-; 

FL 

(socr) 

* çf 4 j- J,.l I Þ7. 4 -r! A" Fr4,C . 

\^-" l¡ n \,;; Á.\ È \ Þ l; l-i\ Í Å \-, 6.ú ¡!'ù !- 

i1t|.J".2. "¿ 

I-EADER 

3.L9

EquaEi,ons 55 through 55"2 descri.be Ehe development of the exo- 

Ílenous variabLe Tlme Fressure (TIMp), 

,d TïMP.K i TABHL(TIl'dPTeLH.Ke0e1.0e "l) 

T TIMPT = .51"6/.7LBl,6| "51"3| "¿+l"6/,8/1..0 

ALHKæ"9 

TIl,tP - Tlme Pressure (DimensionLess) 

ÎIMFT - Î1me Pressure Table (Dímensionl.ess) 

LH - Low - iïf.gh Fressure (Dimensionless) 

55 

55,L 

55,2 

L2A 

EquaEfon 55 descríbes a function determining Ehe åntensÍ.Ey of Time 

Fressure (TINíF) as relaced to the Low-High pressure (LIl), Equation 55"1 

sefs out Ëhe tabl.e of values r,¡hich TIltr nay assume depending, of coursee orl 

the 1ot,¡-high pressure poinE established, Equatíon 55,2 esEabi.Í.shes Ehe Low- 

High pressure ínitial.ly aE ,9 r¿hlch is assocl,aced r¡1 th a vaLue of .8 for 

TÏMÞ 

Figure 23 porErays Ehe funcEiona!. reLaEionship beEween Ehe Ei¿o var- 

labl'es graphiea}Ly" The correl.aElon is primari.ly posítive w!.Eh increasing 

Tíme Pressure as one moves aLong Ehe LH érxiso Ffowever, in the mí,d-ranges 

a l.ower level of Time Pressure i.s emphasized to poseul.aEe a phenomena whereby 

lndivi.duals çrith neither very f.ittl.e pressure or a great deal. of pressure 

Lag ln Èheír proposed purcha.se behaviour. 

The last exogenous varlabl.eu Financial. SEatusu ås deflned as a 

more exEerior and Less sEabLe variabl,e" IE refers Eo Ëhe funds avail.abi.e 

for purchasing goods and servlces durlng some specifled Eime period, Hor+ard 

and Sheth (1969) assume Ehat Ehe funds normal1y arise from current income or 

saved pasE lncomeu Earned lncomeu they staEeu is probably an âppropriate 

measure for most peopleu excepc Ehose with an independenE incomen 

The model. has a,dopLed a slmiLar conceptualizaElon of FinanciaL

lZLa 

VARTABLE 

TII'ÍP 

TIIviPT 

LH 

FIGURE 23 

INDEX 

TYFU OF EQUATIO}J i{AMÐ 

É*uxi L iary Time Pressure 

'Ia.bl.e Tlme Pressure Table 

rluxll iary Lor.r-High

: 

t- 

(rr r',inr) 

-¡-9ME PÍ{HSSLJF"E 

tjtG.23 

:11 

L'L

SEatus, a.nd has esEablished a contínium for such a sEaEus exeendins from 

tighe Eo easy' IE is díffícut t Eo use lncome LeveLs âs an indscacor of 

purcha.se beha.viour since individuals vary vastly in theír behavi.our even 

lriEhín a gÍ.ven lncome caËegory, It woui.d perhaps be more meaningful. to use 

some mul.ti-dimensionaL facEor to define FinanclaL sEacusu but ior Che pur- 

pose of Ehis sEudy and for simpliclEy, it is posLulaced thaE all consumers 

may be typlfied as being in an easy or tlghc money situatíonn For íns6ance, 

fn an easy money siEuatlone a given consumer would be Less tighEly budgeted 

and not that concerned wiEh spendlng an exEra fÍve to cen cents on a. bar of 

soa,p if it net hls/her needs more exacEly" 

EquaEíons 56 through 56"2 are concerned wiEh ouElining Ehe FinanciaL 

SLaEus of the consumero 

A FII{"K = TABHL(lrINTeTE"Kr0eL.0e.L) 

T FII,ìT = ,L/,3/ "6/"5/,5/"6/,7 /,BlL"0/"9/ "B 

å TE,I( â .8 

FII{ - Financial status (DinrenslonLess) 

FIN'I - Flnanclal Status TabLe (Dimension$.ess) 

TE - Tight-Easy (Dinens ionL ess) 

EquaEion 56 is an auxilÍary funcÈion defining the value of FlnancÍat 

sEaEus (FIN) glven Ehe consumere s point on Ehe Tlght--Ea.sy (TE) conElnium" 

Bquatlon 56"1. is the table of values r¿hich FIN may assume depending 

upon the point estabLished on Ehe TighÈ-lìasy contínl.um. Bquation 56"2 is 

Ehe poinE iniEiaLly chosen on Ehe TE continíum, which ls equaEed Èo a vaLue 

of "9 of Financial. SEaEus. 

Figure ?4 is a graphicaL represenEaEion of the funcEíonal relation- 

ship bsg¡'rseR Ehe EYro varf.ables" Th.e rela.tionshíp portrayed is generaLly EhaL 

of a. posiEive correlatlon between Ehe two variablesn Under the tight money 

56 

56"L 

56,2 

L22

L23a 

VARI"âBLE 

FIN 

FÏI'IT 

TE 

FIGURE 24 

II\DÐ){ 

ÎY_tlE OF EqulrrioN ryAgg 

Auxlllary Financtal. SiEuaEion 

TabLe Financial SltuaËion Tabl.e 

Auxi.lÍary TighË - Easy

TIGHT 

.? .4 .6 .B t. 

TE 

Í C E -Í. ¡ t n T- F f'-'$ ç\! 

¡ è b ! !/ t\ 

FIü,2/i 

EAS Y 

123

siËuaËton Financia1 StaEus (Fil{) ås suppressed and purchase behaviour ls 

somer'¡haE deLerredn l{or¿evere as money becomes easler Ehere i.s 1.ess suppres- 

síon of purchase behavfour and FIt{ increases rapidly, buE Levels off and 

eventua1Ly decT.ines r,rhen money becomes very easy" Thls is to reflect Ehe 

fact thaE Ehose lndlviduals wiEh a surpLus of income become more cautious 

and conservative ln their purchase behavlour. 

This secEi.on has been designed to ouÈl.f.ne Èhe seven exogenous 

variabLes and their i.nternal. funcEloning. IE i.s lmporEanE Eo note" however, 

thaE Ehese va.riables a,re exogenous Lo the sysEem and are, ín facge conscang 

for the purpose of Ehe si,mul.atíon, Functi.onal rel.aEionships have been 

esEabl.lshed and outÏ.lned ssleLy for the purpose of províding meanfngfuS. 

and logicaL rel.aEíonships betra¡een the exogenous varfab1.e as welj. as suitabl.e 

cri.Eeria. for manípulatlon in testlng Ehe modetr.. 

.{s prevlously outLinedu ÍníEl.al condiEions have been establ.ished 

for each categorye and correspondÍ.ngly market segmentaÈíon daEa has been 

initlaLized for the model.. In essencee a consumer r,rith seven characgerls- 

Eics has been esËablished. the consumer may be described as foLLows: 

Vart abl e Value Char+cESri stic 

ImporEance of Furcha.se 

"6 

CuX.Eure 

SoctraL 

"9 

Cl.ass 

,8 

Personal. i ty 

Social & Orgemizatlonal "8 

SeEtinE 

Time Pressure 

"9 

uB 

Financlal. gEatus 

tr,0 

L2/4 

Above Average 

Very close to average ind. 

Upper mf,dd3.e 

A.ggressíve 

Leader 

High Fressure 

Easy lloney sltuaLåon 

Thís chapËer has been devoted to the model.ling of Ehe subsystems 

in re3.atton Eo Ehe &eqgy. oJ BgJf¡r B"jgg¡-qq5 (1969) u according ro Ehe Sys_ 

Lems þnanl.cs Methodol.ogy" Speciflc postuLeEions and assumptlons have been 

made wiÈhi.n a logi.cal frame¡¡ork to provîde an operaElonaS.ized model and Eo

prepare Ehe model. for computer 

Eo Ehe descripEion and anal.ysl.s 

mode3. as prevíousl.y deserlbed. 

slmuLation, The next chapEer i.s devoEed 

of Lhe output behaviour of the sinuLaÈ1on

CHAÞTER V" 

BEH.4VTqUR gr THE MODE¡1 

The baslc model' of, Ehe consumere presenEed !.n Ehe previous chapeere 

þras a. Systems DSmamlcs characterå.zation or conceptualization of the Horvard 

and sheEh (1969) Theory of Buyer BehavL0ur" Ths ThegrJ g[ Bgyer Êe3r+vioFr 

as diagrarnaticatl.y represented i.n Figure l was redefined to outl.tne Ëhe 

processes and feedback rel.aEionships more precísel.y" The outcome of this 

redefinition was picEoraltry represented ln Fí.gure 3. Thís tshen served as 

Ehe ba.seLlne for esEabLishing a moden of Ehe Eheorye In bulldïng th1s mode1. 

certaf'n assumptì.ons and posEul.aËions were made coneernf,ng lnEerre1aEionships 

between variabi.es lvíchån Ehe model." FurEhermoree i.E r.¡as assumed ChaE many 

purchase si.tuaEi.ons have some baslc common characÈeråsEics. 

'Ïhe modeL has been presenEed in Eerms of precíse mathematieal. rela* 

Eionshlps betl,reen variables f.n order to concretely defi.ne the processes and 

feedback behaviour invoLvedu Excludlng the postu!.ations and assumpgions 

madeo Ehe ¡nodel. represenEs a funcELonal. transLaEion of The Theory of_ BuyeE 

Behgvlqu{u and for thaE reason 1.1tELe elaboraElon was made concerning Ehe 

exacE nature of Ehe psychologf.cal , sociol.oglcal., and soci.aL psychological 

ramlflcaËlons of Ehe Eheory on Ehe modetr-. At those poincs w?rere assumpc!.ons 

and posEulatlons were necessarye elaboratíon ï{as ma,de bug mereLy for the 

purpose of provldíng a consisEenE and Logical framework for Ehe construcci.on 

of Ëhe modeL u based on the theory as presenEed !.n The Theory of Buyeq Behav* 

iouå (1969)" 

The purpose of Ehis chapEer is to presenE behavi.oural daEa ougpug 

from the model on a subsysEems as v¡eLL as lntegraEed basis. To obtain a 

betEer unders€anding of Ehe exacE worklng of the inEegraEed rnodel as r,¡eLl. as

to facil'lEaLe model. buildlng, Ehe model roras broken clomr and consErucÈed on 

a subsystem basis. IL is Ímperati.ve then to examine the behavì.our mode of 

each subsystem in advance of atEempElng to anaLyze Ëhe !.nEegraged modei. u 

The simu}a.tion is designed Eo monftor Ehe consumeres behavLour over 

a fuL1 year (52 r¿eeks). In some cases equlLf.brlum occurs earLier and Ehe 

slmulatlon i.s Eeraina8ed at Ehat polnE, 

.8" Inpqt Subsystem 

The inpuE subsysteme as prevf.ously deftnede can be Ehought of as Che 

sum of aLL markeEing efforts and social. influences Eo ç¡hich a gi.ven buyer ís 

exposed. The key fa.cEor devel.opment r+ithtn Ehis subsystem surrounds tha.E of 

Ehe Stimul'us Display, LabeLled (Sþf) vrithín Ehe simuLation model." 'Ihe maEhem- 

âtlcaL relaEionships describing this subsysEem are i.isLed as folLo¡.¡sr 

P, Qn.I¿. = TABHL(QETnQUAL.t(r0eL0E3r1E3) 

r QEl- = 010/olLl3/¿+/6/7 /s/BlB 

A QUAL"K = NOR¡ß,N(883,.tE3) 

þ, PB"K â TIIBHL(rr:rornlcE"Ke0e"5e"05) 

r PEr = olo/0/B/8/7 /7 /6/3/2/3 

.4 FRICE.K = NûRþIRN("28r.02¡ 

i\ DB"I( = T./\BHL(DETeDIS.Keoel0E3elE3) 

r DEr = olLlL/t/z/¿+/o/Ble/L0/Lo 

A DÏS.K = NORMRN(883$ "1.83) 

A SE,K = TABI{L(SETeSER'Ke0rl0E3rt E3) 

I sEt = 0lI+/5/5/5/5/5/sl5/6/6 

A SÐR"K = TIORþIRN(283,"583) 

A A,E"K = TABHL(-4.ÍTe^åV.Kr0r10E3rLE3) 

r A.Er = 012/4lsl6/s/B/B/e/10/10 

.A AV"K æ NORIß.N(683,,25tt3) 

A SYMM"K = (qE.I() (pI'.K) (DE"K) (SE.K) (AE"K) 

,þ, QUALA.i( = ÐLIt{þ-3(QE.Kr5) 

¿, SEIIA,,K = DLIi{F3(Sf"fut4.) 

h FBA.Ii. = DLTi\iF3(PE.K,3) 

1,1 

L.2 

L 

2"L 

2rZ 

{ 

3.1 

3"2 

4 

¿+o I 

¿+ 

"2 

5 

5.1 

5,2 

6 

7 

B 

I 

't 77

A. DÐ.4"" lz. 

A, AEA,K 

A SÏGI"Í.K 

A FAtf " i( 

A REIT. K 

A SO"K 

IT SS}I, K 

A SM"K 

C OVTS 

QE 

QTT 

QUAL 

ÞrT 

PET 

PR TCTJ 

nlr 

DET 

DTS 

SET 

SER 

All 

,AET 

AV 

SYI'{l',i 

QUALA, 

SERA 

FEA 

DEA 

AEA 

S ici{ 

FAM 

REF 

SO 

ssþl 

SM 

OVTS 

DL Ii{F3 ( Dn " I(, 4) 

DL i\iF3 (en. ru 3¡ 

(QUALA " I() (FEA. K) (DEI'. K) ( S ERA" K) (AE.{" K) 

NCtìIß.irl (Slct"I, Ke .5É3) 

NORlRN(SIGM,i(.e5B3) 

bloR.I'ß.N (3IGþI, Ks i.0Ë3) 

( ¡'Á,¡,1, KrqREF. K+So " K) / 3 

( sY¡n'1. K+-s IGM. K+S Sli" K) :rQ!f g . 14 

f 

- QualiEy Emphasis (UniEs of ftEnergyo') 

- Quality Emphasis TabLe (Ðirnensíonless) 

- Quallty Bxpenditure (tol1ars) 

- Prlce Empha.sis (Unlts of rsilnergyrt) 

- Prlce Ernphasi.s Table (Dimensionless) 

- Price 1evel (cents) 

- Ð1sEíncEiveness Emphasis (UniEs of n'Bnergy,'d) 

- Distinctiveness Emphasis Table (Dirnensionless) 

- Distinctíveness Expenditure (Doll.ars) 

- Servlce Ímphasis (Unlts of É.Energy¿') 

- Servíce Emphasis Table (Oimenslonless) 

- Servlce ExpendlEure (DolLars) 

- AvaiLabilíEy EmphasÍ.s (Units of É:Energy',) 

- AvailabiLiEy Emphasis Table (Dlrnensíonless) 

- .Availability Sxpenditure (Doi.l.ars) 

- Symbolic Stfmull l"lultiplier (UniEs of urEnergyu') 

- QuaLity Emphasis ¡lverage (Units of úrEnergy") 

- Service Emphasls Avera.ge (UntLs of 6úEnergy,') 

- Frice Bmpha,sls Average (Units of rt'Energyrt) 

- DisEincEiveness Ëmphasis Average (Unlts of r.Energyfi) 

- Availabil.lcy Emphasls .{verage (UniEs of r0Energy'r) 

- SignlficaEive StimuLi Mut-tipLier (Uni.ts of úEEnetgy") 

- Famil.y Einphasis (Units of $ûEnergy'r) 

- Reference Group Ëmphasls (Units of "Energyir) 

- SocieEy Emphasis (Unlts of ÐEnergy¡,) 

- SociaL SEimuLi MulEipl.íer (UnlEs of rrEnergyu*) 

- Stimul.us MuLEiplier (Units of riEnergyor) 

- Overt Search (D1mensionLess) 

Overt search is represented as a consEanE \{ithin the input subsystem 

since iE i.s uEilÍ.øed rv!.thin thís subsystem and not defined wiEhi.n iE. In 

reai.f.ty it ls a variable modulator of the stimulus multi.pller but for Ehe 

purposes of sinulaEing a singLe subsystem it ís assumed consEanE" 

The behavíour mode eha.racterisËlc of Ehe model. Ís charaeterized bv 

numerÍcal Labl.es and graphicaL plots, For Ehe purpose of describing Ehe sub- 

t0 

11 

1) 

IJ 

Ll+ 

15 

TV 

L7 

N?R

sysEems onl'y numerica1 EabLes are utå.f. lzed hor¿ever, since onl.y a few var- 

iabtres are invo}ved and LiEEle fLucEuation is evident. 

The major variabLes and parameeers wlthln Ehe Input SubsvsEem are 

numeri.cally Èabutated over a S0-r+eek peri.od a.s foLS.ows: 

TI¡48 

E{É'00 

u0 

1" 

2" 

? 

t1" 

7" 

a 

Yo 

L0. 

1. 1. 

L2r 

13" 

x/, 

3.5. 

L6n 

!7" 

tr8, 

L9" 

20, 

2L" 

22. 

23" 

2¿+" 

25, 

SY}.fM 

Ë+O3 

20"536 

20"260 

20 "o37 

1 9,503 

1.9 '9{49 

2A,309 

17"t 30 

20"259 

19. 21 3 

L7,629 

20.1 32 

20 "37 t+ 

20"0I2 

18"t 2B 

19"941 

20"zLB 

L7 "9t+5 

20"239 

L9 "977 

i.9 " 280 

19 "72t+ 

1 B" 932 

L9,323 

L 8" 540 

20 "346 

L7 "676 

'the Input Subsvstem 

S IGM 

E+'03 

16. Bgx. 

16"906 

1.6 " 899 

L 6 .904 

T6 "929 

¡.7.006 

l. 7, L6B 

L7 "29t+ 

L7 "405 

L7 "5¿+7 

L7 "68l+ 

L7,842 

L7 "976 

18.3.28 

L8,292 

1 8,483 

1 8" 564 

L8"627 

t 8.708 

L8 ^7 t+2 

t B" 734 

L 8.655 

L8"672 

1 8.6 74 

L 8. 751 

L8"878 

SSI't 

E-rO3 

23"636 

18,680 

L9 "922 

2¿+,805 

LO"737 

2L,829 

't_6,925 

¡.8"382 

Lt+'897 

L9 "526 

20"tr 18 

1 8" 800 

i.9" 852 

20. 51 5 

20,683 

20. gt 5 

L/r,,28¿+ 

T. B. O58 

L4*222 

21.603 

2L "64t+ 

22,777 

20 " 095 

22"729 

2L,4L3 

17"210 

sli 

8403 

305" 31. 

279,23 

28¿+,29 

30ó.06 

238"07 

295"72 

256 "L2 

279 "67 

257 "58 

273.5L 

2gg "67 

285.09 

289"20 

293" B5 

29¿+"58 

297 "58 

253 "96 

Z8(4"6L 

264,5¿¡ 

29g,L2 

300 " 5t_ 

301 .93 

Z9O "¿+5 

2gg.7L 

302,55 

268"92 

L29

TÏME 

6"*00 

26" 

27, 

Zóø 

29, 

30, 

J.L o 

32" 

33" 

3¿ç" 

35" 

36" 

37" 

38. 

?o 

l+0, 

4L, 

t,') 

43, 

4t+" 

45" 

46" 

t17 , 

48" 

49u 

50. 

SYÞîrq 

8199 

1.9. 1 59 

1 8.393 

Lg "7 ¿+{+ 

l.8,3L 2 

20 "635 

18"341 

20 " 111 

L3.765 

20"969 

20'lt+z 

1"9,937 

L9 "929 

L7 ,37 5 

20" B0B 

zo"23g 

20, 5L g 

18.191 

19, 512 

20,1 58 

19 " 71¡. 

20 " 308 

16"899 

20,638 

tr 3. 908 

tr 8"448 

S IGT'I 

Ëjo_3 

19.01 2 

1.9,029 

L9 "052 

19,1 7 5 

L9,29'-1 

L9,276 

L9"242 

L9,220 

L9.L78 

19"097 

L9" 1.20 

L9"L50 

3. 9, 168 

t 9"3.B0 

19 " 21.8 

L9"250 

L9 "ZLL 

L9"229 

19 " 183 

19"1.¿{-t 

1.9 "085 

L9,066 

19 " 117 

1.9"t28 

19"L48 

ìl ÞIvl 

E+O3 

LB"L8t 

22,885 

2t+.7 5L 

L7,92L 

1 8,966 

20 "767 

L5"¿+26 

L¿+"t+83 

L4,L77 

l.6.21.0 

L9"508 

L6.7L9 

L8" 965 

x.6 " 57t 

T5"226 

¡.8,9L5 

1.8. 909 

23.79L 

1.5.604 

L7 "t+94 

19.894 

22"t+LL 

29,773 

L9 "992 

23,gglt 

SM 

$êo3 

28L.76 

301. " 53 

3L7 "7 4 

277 '}tA 

294"¿+6 

29L"92 

273,90 

237,3¿4 

27L.62 

277.25 

292"82 

27B"gg 

277 "54 

282,80 

273"t+L 

293 "t+2 

2gt "56 

3L2"66 

27¿+"72 

zBL "72 

296,4¿+ 

291 " 88 

3¿+2"6¿+ 

265,L¿+ 

307 "t+5 

The four major facEors ofo SYMM, gIcl'fe SSlui, and SM r¡åthin Ehe Inpu¡ 

SubsysEem exhiblL very !.åctLe varíaEion under Ehe peråod under eonsldera.Ëion. 

sYi"ll'l represenEs Ëhe symbol. lc sEimul. l cornnunlcaEed by Ehe fírm Eo the 

consumero the variati.on is in fact due Eo Ehe noLse wlchÍn Ehe channeL of 

communl.cation and Ehe shÍ.fEing leveLs of the firmos expendicure on ea.ch of 

r.3û

Ehe facËors compríslng Ëhe symbot.ic sEimul.í. 

SÏGÞf represenEs Ehe signiflcaEive stimuLå Eo dnlch Ehe buyer ls 

exposed - speclfically, brand contacE f.Esetr f" As wouLd be expecEed., Ehere 

ís a bul.Ld-up from approxi.mately n6u000 un!.Ës of Éúenergyút Eo approxå,mageLy 

L91000 unf.Ës as Ehe buyer becomes more fam!].Í.ar wiEh Ehe producÈ" There j.s 

some variaElon but on Ehe r,/nole Ehe growÈh fn famlt iariEy overshador¿s Ehe 

varíaElon" 

SSl"l represents Ehe soclatr sti¡nuli mulElpli.eru or raEher the socian. 

lnf tr.uences converging on the buyer" ,Agaf.n, as ¡sou1.d be tr ogicaL1y expecged, 

Ehe buyer gains rnore lnformaEÍon from socLa1 conbacE - rûmore'ú ln Ehe sense 

thaE he regards such lnformaEion as re1a.EÍ.veLy more va3.fd and reliab3.e" 

Floweverr such informa.Eåon suffers from much disEorEion and Ehe channel ïs 

often interrupted. The high degree of varia.tlon represenEed in SSM evld- 

ences thi.s facE" 

9H represents Ehe sLimutus dÍ.splay Eo whlch Ehe buyer 1s exposedu 

1t ís Ehe sum of the effects of iEs three components - STGME SYÞû{e and SS!1, 

The 9Þi ís much hÍgher in value Ehan any of its componenEs and exhlbigs a 

si.gnifícant amounE of flucEuaElon. IE is f.mportanE Eo noËe Ehat Slrf is modu- 

Lated by the Leve1 of overE Search (OVTS) o wíthln Ehe percepEual. subsysgem, 

but has been assumed consLant in thf.s ÍnsEance@ 'Ihus åL rvoul.d be Logi.cal. Eo 

assume that Ehe varíation i¡ould be magnifi.ed somewtraE moree once Ehe sub- 

sysEems are lnterLocked. 

În sumu bhis subsysEem esLablish,.ng the externan sËimul.i communl- 

caÈed Eo Lhe buyer ïs Logicai- and conslstent r¿iEhín expecEed buyer behaviour 

Lheorì.es and 1s an adequaEe represenEaEíon of the processes invoLved. 

f?T

B. ÐercgpEugl SubgJ's_Èsg 

12? 

The percepEual subsysEem as prevlousl.y ouLl.inedu is concerzred wiEh 

EransLatsing Ehe exEernal sElmu1.us, th.e SËlmuLus Dåsptay (Si'f) å,nEo a sELmulus 

as coded (S.{C) rdrich then becomes an Í.npuE ínto Ehe Learning subsystem, the 

key Êactor developed ¡viEhin Ehls subsysËem is Ehus Ehe stímulus as coded 

(S-SC)" The mathematical reLaElonshlps descrlbing this subsysEem are Listed 

as foLlo¡cst 

R OVI$F"KL = 

L OVTS,K = 

N OVTS = 

R OVTSA.KL = 

C OV'ISAN æ 

R ATT,KI = 

L SF,K G 

NSP= 

R LOSS,KL É 

C LOSSI'¡ Ë 

A STA"I( = 

T STAT = 

A CÛNTM"K = 

A tsïAS"K = 

T B ÏI\S1 = 

R. ATR"KL = 

C I\TTRN = 

L SAC,K = 

NSAC= 

R PER."KL = 

CATs 

CSM= 

COûN= 

C IVIOTIVE = 

OVTSF 

OVTS 

OVTSA 

( ( ( lt'1F " r+TI¡.{p " K+'PERS " K) / 3 )''.91¿" *) *LÖcN (MûÎIVE. K) L B 

ovTS.J+ (yI) (OVTSr'..1K-OVTSA"JK) 1.9,1 

0 tr 8.2 

(OVTSAI'{) (ÖVTS,K) 18"3 

"999 

(sþi" K'tsr¿. K) +'Locn (Morrvn " K) Lq 

1B.4 

sp.&i(DT) (A1T"JK-L0SS"JK) 19"t 

240000 

( sp " r) (i.ossN) 19. 3 

"999 

TABI{L (ST/rT u St"f " Kro e 80083 e B0E3 ) 20 

0/L1"9/"81 "751.6/"51.¿+f "3/.25/"2 

'i.9 

"2 

Lg,t+ 

20"1 

(sp"K)(t-sta"r¡(locit(¡torrvn.r-s,.A,T.K+coN"K)) 2L 

TABHL (BIÂST eCONTM. KeO e01086 ,0186 ) 

L/L/.9/.gl,Bl,g/,61"6/,31"21.L 

2L 

"L 

21""2 

9AC"I('IATRN 22 

,999 zz"L 

SAC,J#(DT)(BER""IK-ATR"JK) 22"2 

0 22"3 

BIAS"K:kSF.K 22'to 

r,00 

275000 

L0000 

/+500 

OverE Search FormaÈlon (Dimensi.onl.ess) 

rlverE Search (DimensionLess) 

0verE Seareh AttriEion (Dimensi.onless)

tV'ISAl,l - tverE Search AEtriEÍ.on Norma.L (plmension!.ess) 

ATT - AËtenti.on (Units of 4Energy,Ë) 

SP - SElmul.us Pool (Units of rEEnergyur) 

LOSS - Loss of SEimuli (Uníts of eáEnergyçr) 

LOSSN - SEimuli Loss NormaL (DimensíonÏ.ess) 

STA - Stimulus Ambigut ty (Dímens!.onless) 

STÂ1 - SEf.mulus AmblguiEy Table (Df.mensionless) 

CONTM - ConEingency },ful.Elpt ier (llimenslonLess) 

BIAS - PercepEual Bias (Dimensionless) 

BIAST - PerceptuaL Bias Tabt e (DlnenslonLess) 

A'tIì - AtErlElon RaËe (UnLEs of ÉíEnergyÉe) 

ATRN - AEEriþion Rate NormaL (Dlmensíonless) 

SAC - SElmul.us As Coded (Unf.ts of ÉêEnergy$r) 

PER - PercepEton (Unlts of å¡Energy*s¡ 

AT - AËÈÍtude (InternaL UniEs of rúEnergy'É) 

SM - Stinul.us ì{ulEiplter (Unlts of ¿i,Energyf6) 

CON - Confidence (Internal Unlts of nEnergyor) 

t'ÍOfIVE - MoElve (Internal Un1ts of ÉúEnergyro) 

AttåEude (Af ¡ u SEímuLus }4uLEf pt ier (Sli), Conf ídence (CON) u and lrfotives 

(MOTIVi') are represenEed as consEanEs r¡rithln the perceptual. subsysLem, They 

are formul.ated ouEside of th3.s subsystem and correspondingl.y must be vieç¡ed 

as constanEs for Èhe purpose of the simuLatlon Erf.a}s. 

the behaviour mode characEerlstic of Ehe percepEuatr subsysEem ís 

represenEed by a numerícal table outLining Ehe najor variables of Overt Seareh 

(OVTS)u SEímulus FooL (Sp), SÈimul.us Ambf.gulty (Sta¡u Conttngency i"lulrip1ier 

(CoNTlf)u PercepEual Bias (af¿s) and stinul.us.{s Coded (sAc)u as foLl.ows: 

TIMA 

E+O0 

.0 

Io 

2" 

3" 

5" 

8" 

OVTS 

E+00 

"CItCIo 

3 " 1.333 

¿+"1"260 

1+.t+405 

¿+"5402 

l+"571,8 

4" 58L 8 

t+.581+9 

4.5859 

PercepEuaL SubsyçEem 

qÞ 

E*O3 

24t"0 

1 307"0 

1645,0 

L752"L 

t 786,L 

L796"8 

1 800" 2 

1801.,3 

3.801 "6 

STA 

E+00 

"778L2 

.778L2 

"77 8L2 

"77 8L2 

,778L2 

"e7gLZ 

"778L2 

"77 8t2 

,778L2 

CONTM BTAS SAC 

E+03 EFOo E-á,03 

5t 0,6 

279O,6 

3t+99.8 

3727 "7 

37gg "g 

3822.7 

3930 "0 

383?,3 

3833,0 

1.0000 

,9000 

,8500 

"8272 

.8200 

,8L77 

"81 70 

,8168 

"8'i.67 

.L JJ 

"0 

52¿,,"4 

1063 " I 

133.3, i. 

L¿+1.3.1 

1451, L 

L465"L 

L470 "2 

Ll+72 "O

.ÏÏME 

EqO0 

g" 

L0" 

L1" 

L2" 

13" 

L¿+, 

LJa 

16u 

Ll" 

88" 

19, 

2t" 

2L" 

22, 

t? 

t/, 

25" 

26" 

27, 

?8" 

29" 

30, 

31" 

32" 

JJ O 

34. 

35" 

36" 

37" 

39" 

39" 

40" 

41 " 

42" 

ÔVTS 

E+û0 

¿r' 5863 

14,586t+ 

t+"5864 

¿+,5864 

4' 586¿+ 

¿Þ.586/+ 

4"58614 

4"5864 

4,5864 

l+"586t4 

/. qa(L 

?9 JUV? 

¿+"586¿* 

4" 5864 

l+,5864 

4"5864 

4r586¿+ 

t+"5864 

4"5864 

¿È"586¿+ 

t+"586t+ 

¿+"586t+ 

l+"5861+ 

4"586¿'r 

4"586[+ 

¿+"586¿r 

t+"58611 

¿+"5864 

l+.586¿+ 

4-" 5964 

¿+"586t+ 

¿+.586¿+ 

4'586¿+ 

l+'5861q 

4,5864 

Þv 

Ês03 

x.801 " g 

1801 " B 

1 801 ,8 

180L,B 

I 801 .8 

I.BOT, " B 

180L"I 

180t "8 

1801"8 

1B01. " g 

1 80L .8 

1.803., g 

1.801 " 8 

180T. . B 

LBoL"I 

1 80L ,8 

1801"I 

L801,I 

1801. . B 

L801,B 

L80t,8 

1801.8 

t80t"8 

180tr "g 

!.80L . B 

180L,I 

LB0¡."8 

x.801. ,I 

180i.. B 

1801"8 

1801.8 

LB0L"I 

L80t "I 

1801"8 

STA. 

Ee{0 

.7 7 Btz 

"778L2 

"77 8r2 

"778L2 

"778L2 

.778L2 

"778L2 

"778L2 

.7781_2 

"778L2 

,7 7 glz 

"778L2 

"778L2 

"7 

7 8L2 

"778L2 

,778L2 

,778L2 

.77 BLz 

"77 BLz 

"778L2 

,7 7 8L2 

"77 8L2 

"778L2 

.7 7 8L2 

"7 

,778L2 

"7 

7 8I2 

7 BT2 

"778L2 

"778L2 

"7 

"7 

"7 

7 8L2 

7 8t2 

7 8L2 

"778L2 

.7 7 8\2 

COi'¡Tì"1 

D+O3 

3833,2 

3933.3 

3833.3 

3933" 3 

3933 " 3 

3833.3 

3833.3 

3933,3 

3933 " 3 

3933,3 

3833 " 3 

3833" 3 

3833, 3 

3933,3 

3833.3 

3833 " 3 

3833.3 

3833,3 

3933.3 

3833,3 

3833,3 

3933. 3 

3833.3 

3833.3 

3833 " 3 

3833 " 3 

3833" 3 

3833,3 

3833.3 

3933"3 

3833 " 3 

3833 " 3 

3933. 3 

3833.3 

RTÅq 

E+00 

oÕLo/ 

"8L67 

"8167 

,816 7 

. 81.6 7 

,816 7 

,816 7 

"8L67 

"8L67 

.8L67 

. 81.6 7 

"8L67 

.816 7 

.916 7 

.8167 

.8L67 

,816 7 

. 81.6 7 

"8167 

"8L67 

"8L67 

" 81.6 7 

"8L67 

.8167 

"8L67 

.8167 

.81.6 7 

"8L67 

.8167 

.8L67 

.8L67 

.8167 

.8L67 

"8L67 

sAc 

E{c03 

L¿+72,6 

L¿172 "B 

L472"9 

L¿+72"9 

L472"9 

L472"9 

L¿+72"9 

L¿..72"9 

L472"9 

Lt+72.9 

Lt+72"9 

L(+72"9 

L¿+72"9 

L¿+72,9 

L¿+7 Z,9 

1,t+7 2.9 

L¿+72"9 

L472"9 

L472"9 

X¿+7 2 "9 

Lt472 "9 

L472"9 

Lt+72"9 

Lt+72 "9 

L¿+72 "9 

Ll+72.9 

Lt472 "9 

Ll+72 "9 

Lt472.9 

ll47Z.9 

11472 '9 

L¿+72 "9 

L472.9 

L/,,72.9 

T3tr

TÏME 

fr,''00 

â 

¿+¿+, 

Lq 

46" 

t+7, 

49" 

49, 

50. 

ÛVTS 

E+00 

14" 58614 

4"586¿+ 

4" 5864 

4,5864 

4"586¿+ 

¿+ 

' 586/+ 

¿4.5864 

¿+"586t4 

SP 

Ër'03 

1 801 .8 

1.801 ,8 

L B01 .8 

1.801 .8 

1.801 " I 

1B0t.8 

180L"I 

1801"8 

STA 

E+'00 

.778L2 

"778L2 

7 8L2 

"7 

"778L2 

"778L2 

"7 

7 8L2 

"778L2 

,778L2 

coiqTM 

E+O3 

3833.3 

3833 " 3 

3833 " 3 

3833" 3 

3833. 3 

3833 " 3 

3833 " 3 

3833. 3 

BÏAS 

Þk00 

,8L67 

"8T67 

"8L67 

"8167 

"8L67 

"8167 

. 8¡.6 7 

"8L67 

S/àC 

E*03 

L472,g 

L{472 "9 

L472"9 

L/47 2,9 

L1472"9 

L¿472.9 

Ll+72"9 

L¿+72 "9 

The variabLes as represenEed show no significanE vari.aEion at aL1. 

This is Logíca]- and expected behaviour for Ehis subsystem when viewed as 

separate and dlstf,nct from the oEher subsystems. 

FlrsÈ of alL iEæn¡es an informaEion processing funcEfon for Ehe lndl- 

vlduaL and when lE has a slngle consEanE lnpuÈ of i.nformationn (íne", Ehe 

stímutus mul-Eipx.ier (sM)å one can expect triEËLe processlng variaÈLon to occuro 

Second1yu Ehis subsysEem is a modul.ator as weLi. as a processor of 

informaElon, l.ê"e as Needs (t¿orrvn)e AtEltude (AT) and Confldence (cot'l) 

changeu Ehts subsystem reacts Eo either reduce or i.ncrease Ehe flow of infor- 

mation ínto the lndividual. Since we have assumed Ehe oEher varlabi.es as 

consEanEs from the oEher subsystemse no varlaEíon ïs to be expecEed. 

The onLy varíaEion which occurs ls to stablLíze Ehe varLables from 

Eheir initial- starting condltí.ons rEhich 1s accompLlshed a!.most irmnediateLy. 

overE search (OVÎS) stabillzes at t+"58 which Ls analogous to an indi.- 

vidual' belng moderateLy sEaged for reeei.ving lnformaEìon. fhe StinuLus Fool 

($F) has reached equíLtbrlum aE n,8 mílx.íon units of úr,ênergyvr. scimul_us 

Amblgulty (ST.4) ls quiEe high due to a high leveL of stímulí belng communl- 

caEed to Ehe individuaL, í.ê.e very LitELe of the dispX.ay (SM) fs acEuaLl.y 

reaching the individuaL" The Contingency MuLtiplier (CoNTM) is qulEe high 

n35

evldencing a hlgh. nss¿ X.evej. and aELiEude formation on the part of Ehe con- 

sumer" This is indicative of a habit slEuaEion being enjoyed by Ehe consumere 

the result of ç¡hich ls a high level of FerceptuaL Bias (BIAS) further dls- 

torElng Ehe LeveL of Lhe StlmuLus pool. (Se¡, Ihe consequenE mode of behav_ 

lour of the SEimul.us,As Coded (SAC) is thus logically expected Eo be lou, and 

correspondingtry not of âny greaE lmpacc on Ehe J.earnTng subsystem, 

i.36 

Ïn EoËal o thf.s subsysEem acEs LogícaL1y accordíng Eo expecËed pa¡- 

Èerîs of behavíour - lu€.e with no flucËuationso and reÞresenEs a Logica.l and 

consísEenL conceptuallza.tton of the percepEuâl Þrocesses involved,

C" !_e?r:ting FqÞqyq*Eem 

The LearnLng subsysÊem a.s prevlously defíned 1s reierred to as the 

hearE of the Eheory * the ideal-istic hypoEhecical. constructs" It is prim- 

aritry concerned wiEh the developmenE of the internal characEerísEics of the 

consumeru whlch ls a.ccompl,ished both Ehrough the effects of Ehe stimulus as 

coded (SgC) and through purchase and habit formaEion, The key facEor deveL- 

oped r+iEhln Ehis subsysEem is Ëhe varlabLe Intention to Purchase (INT), as 

i'E is most closely retrated Eo purchase beha.viourn The mathemaElcaL rei"a.Eion- 

ships descrlbing Ehis subsysEem are LisEed as foLX.ows; 

R NF.KL = 

L llÖTIVE"( = 

lq MOIIVE = 

R DR"KI = 

CDRN= 

R CD.KL = 

ît\îv- vv ô t\ 

R CA.KL _ 

n ô¡,i\r 

v vm.tY 

i{CC= 

R BL"KL = 

z\ 

L BC"K = 

R BCA,.KL = 

C BCAN = 

blBC= 

R ÀF,KL = 

L AT.K = 

R ÂÀ"KL = 

NAT= 

C A.TN = 

( ( ( cui,'r, K# s ocl, I(+.F ERS " K+ F IN " K+5 gg, ç) / 5 ) ",.gT,4 " ç),'. ( CON " K) 

+sQR T (strc. i

",\ 

l',i$i'i[" K 

R RTB.KL 

L Ii{T. K 

i'i ïi{T 

R RTBA.KL 

C RTBAN 

A PSAT.K 

R SF"KL 

L SA'T.K 

N SAT 

R SÂ"KL 

C SåN 

R CF" I(L 

L CO¡I. K 

R COlulA" t{L 

tù colt 

c cot{Ai{ 

c sT.q 

c sAc 

nÞ 

NF 

MÛTÏVE 

DR 

DRI'{ 

CD 

cÀ 

cltN 

BL 

BC 

BCA 

BCAi\ 

.AF 

?r'¡a 

ffi 

.ATN 

Ì'!ËME 

RTB 

lNT 

RTB"& 

RTBAN 

FSAT 

SAT " K.^'A.T. K*CON. K+SqR.T ( SåC . K) 

( (cuLt" tr+socl, K8s0c, K+TIMp" K.þFIi{" K) / 5) ?kMBME " K 

IldT " J+ (DT) (RÎts, JK-RTBA" JK) 

500 

INT " I(*RTBAN 

"999 

i-[oRMRI{(10005) 

P. K?tPSAT,l( 

sAT " Je.( DT) (s¡'" ¡f -sA" JK) 

.001 

SAT.K:tSAiS 

I "00 

SA.T" K:kBC " K 

coN, J+ (DT) (CF" JK-CONA" JK ) 

COi{"K,rCONAN 

2.0 

"999 

"778 

1 .48ó 

I 

Need Formatl.on (InEernaL Unlts of rÉEnergyrt) 

MotlVe LeVe1 ( un r,6 çv É" ) 

Drive lìeducEj.on ( úr 

'Ie 6ú un ) 

Dri.ve ReducEion l.,lorma} (Dimenslonless) 

Choice Decisíon (Internal UniEs of ÈrEnergyûu) 

Choi.ce Crlteria ( rÈ þi 

6\i 

'e 

Choíce Attrltlon ( s? 6É ÉF tu ) 

Cholce .AttrlEtron Normal (Dimensionless) 

Brand LoyatrEy (InEernal Unlts of t'Energyt,) 

Brand Comprehenslon ( te ii u! d') 

Brand Comprehenslon AtErtEion (Internatr UniÈs of døEnergyúe) 

Brand Comprehension AtLrlLion Normatr (Dlrnenslont ess) 

27 

x3B 

27,L 

¿1"¿ 

27 "3 

27.4 

27 "5 

2B 

28" n 

29"2 

29"3 

28"¿+ 

29,5 

29 

29 "L 

29,2 

2g "3 

29 "¿+ 

Àttitude FormaElon (Internal Units of rEnergy'r) 

AtsEltude LeveL (ut 

fÉ ã!, ¿i, 

) 

AttiEude AcErlElon ( uo íiiduu) 

AEtltude AttriElon Normal (Dimenslonless) 

Modulator 

(re) 

Readiness to Buy 

(InEernaS. UniEs of "Energyr!) 

InEention Level- 

(*rt'içto*) 

Readl.ness to Buy AtEritlon ( tu íÊ tÉ t' ) 

Readiness Eo Buy ÀtEríEíon Normal. (Dimensionl.ess) 

Furchase Sacåsfact!.on (InEernal. UniEs of ffiEnergy;ú)

SF 

såT 

SA 

SAI\ 

coN 

CONA 

CONAN 

STÂ 

SAC 

- SaClsfacEion l¡ormaEion (InEernal UniEs of ÉrBnergyrg) 

- SatisfacEion Level_ ( ', ée ,.'þ ru ) 

- SaEísf acEion AEtrl Eion ( *o rt ru ,r ) 

- SaElsfacEion AEtrition Normal (UÍmensionl.ess) 

- Conf idence FormaEíon (lnEerna1 UnlEs of roEnergyrr) 

- Confldence Level ( 6t r¡É ttt tt ) 

- Confldence åEtríElon ( u, Êt üß 

- Conf idence .AEErlti.on Normal (Dimenslonless) 

- SEímul.us Amblgul ty ( ,., ) 

- Stimu1us as Coded (tlnlEs of r¿Energyùv) 

- Purchase (Un1ts of FroducE) 

The varíabLes of Stimul,us Amb1gulËy (sT/*)u StlmuLus As Coded (SAC) 

and Furchase (P) have been inel.uded as constanLs wlEh thís subsystem slnce 

they are defined ouEsÍde" For the purpose of si.mula.Eion, purcha.se was se¡ aË 

u eros so as Eo stabitr ize Ehe system aE an equi,l.lbrium LeveL" The ougpug behav- 

iour of Ehe Learning Subsystem ls EabuLated as fo1lows: 

TIME MOTIVE 

E+O0 B.{e00 

"0 L5,L 

t. 814"5 

2" ¡.067,5 

3, LLI+7 

"5 

14" Lt 72"B 

5u 1190.7 

6" 1183"2 

7 " LLg4"0 

8" Ll.B¿ü"3 

9u X¡.8r+./ù 

¡.0" Lt g4"4 

l.1. ' 1.L84"1+ 

L2. Lt8¿&"1+ 

1.3 " 1.184" 4 

Lt+" LIB/+"4 

1. 5. L'/".8¿+, ¿+ 

E&00 

20"0 

8¡.5" 6 

L067 "7 

LL47,5 

LL72"7 

LL80,7 

i.183"2 

1184"0 

1.¡.84, 3 

1L 84' /+ 

LL84"4 

1L84"4 

LL84"â. 

Ll8¿+"¿+ 

LL84,4 

LL84"4 

The LeagnÍng SubsysEem 

BC AT 

Ës'00 ÐeOO 

MEME 

f¡f 00 

14u I "0 1.183.2 

813"8 317"1. 1183.4 

L067.0 75¿+.3 n 183.3 

LL¿+7,2 999"5 1.L83"2 

LL72,6 1.11.1"0 LLg3,2 

1180"7 !.1.57,0 1193"2 

1.183"2 Ll74"9 tr 1.93.2 

l.184.0 LLg1.7 1,L93,2 

Ll.8¿+"3 118¿+.2 Li.83"2 

1184"4 1195.1 t Lg3 "2 

1184"4 1185"/+ 1-¡.83,2 

118/+.4 LL85"5 1183"2 

LL8/4"4 1L 85. 5 1!. 83 " 2 

1L84"4 1185.6 1tr g3"2 

1tr 84.4 1185,6 t L83,2 

1.i.B/+'4 tr 185.6 3.183"2 

ÏNT 

B+00 

500.0 

970" 5 

987 "g 

1.025 " 1 

1036 " g 

t 040,5 

L0¿+1. " 7 

l0t+2"L 

LO42"2 

LOt+z,3 

L0¿+2"3 

LO¿+z,3 

1042" 3 

LOt+z"3 

LO¿¡.z,3 

1o42.,3 

SAT 

E-03 

¡. "0000 

.3¡.64 

.1001 

"031.7 

.0100 

.0032 

.0010 

"0003 

.000L 

.0000 

.0000 

"0000 

"0000 

,0000 

.0000 

.0000 

'i, 

r" 39 

) 

CON F 

Þ#O0 E+O0 

2.0000 0" 

,7959 0" 

"3765 0" 

"1659 0. 

"0691 0. 

"0265 0 " 

.0100 0. 

.0037 0" 

.00L3 0" 

.0005 0. 

,0002 0" 

,000tr 0, 

.0000 0" 

.0000 0, 

.0000 0, 

,0000 0.

TIMB }'iOTTVE 

E-þ00 ri+.o0 Eå.00 

L6. 1184.4 1194.4 

L7 " LL8l4"4 1184.4 

tr 8. LL84"& LLgt+,4 

L9" LL9¿+,4 LL9¿+"¿4 

20. L l. 84" 4 l-LSt+" l+ 

2L " LLB¿+"I+ LLB|.û, 

22" LL84"¿+ LlSI+.t+ 

23. 1. L 84,4 11.8¿r,4 

2t+" 1184,4 LL84"4 

25 " 1194" 4 f. i.94." 4 

26" t L8¿+"4 1L8/å.4 

27 " 1184,4 LL84,¿+ 

28. ln 8¿$.4 LIBÍ+"¿+ 

29. LLgl",,¿+ 1 1.84,4 

30. LLBí,4 1.184.4 

RN 

E+00 

1184,4 

1184"4 

l.184" ¿+ 

tr 1.84" 4 

LLSI+, ¿+ 

il.84,4 

LL3¿+. ¿t 

il.84"4 

L 1 84.4 

11 84" 4 

L 1 84.4 

LL84"4 

l.LBl+.4 

LL8t4,t+ 

1.L84"4 

AT 

E+00 

1L85"6 

11. 85,6 

1t 85.6 

1.1.85,6 

1.185" 6 

1. L 85.6 

1185,6 

1.1B5,6 

1185 " 6 

1185.6 

1l.85,6 

t t.85"6 

L ¡. 85,6 

13.85"6 

t L85.6 

MEI'fE 

E+00 

L tr 83.2 

t 183.2 

1.L83"2 

11.83. 2 

L 183,2 

1 183.2 

11 83,2 

1.183. 2 

L1.83 "2 

1L83"2 

11.83 " 2 

11_ 83,2 

L¡.83"2 

1.1.83, 2 

L 183.2 

ÏNT 

[+00 

1042.3 

LO42,3 

3.0¿+2 " 3 

l0¿+2"3 

L0¿,.2.3 

lCIt+2"3 

1042.3 

L0¿+2,3 

\0t+2"3 

LOI+2"3 

L0t+2.3 

LOI+2"3 

L0¿LZ"3 

L042"3 

LO¿+z,3 

SAT CON 

B-03 E+00 

Lt"0 

Y 

E+00 

,0000 "0000 0" 

"0000 .0000 0. 

.0000 .0000 0" 

"0000 "0000 0, 

"0000 ,0000 0" 

.0000 .0000 0" 

"0000 "0000 0. 

.0000 "0000 0, 

,0000 ,0000 0. 

.0000 .0000 0" 

,0000 "0000 0. 

.0000 "0000 0" 

"0000 .0000 0, 

.0000 "0000 0. 

,0000 "0000 0. 

The variabl_es as presentede and wiEhin Ehe frameurork of a singi.e sub_ 

sysfeme shol'r LitEle or no variaclon" This is a Logical. conclusionu given Ehat 

Ehere is no fluctuatlon in Ehe incorning stimut i (S¿c) and no repeat purchase 

behavi.our possibl.e" the variabl.es rnerely reorient themsel.ves from Eheir 

lnltta.l conditlon and establ. ish equiLibrium. 

The LeveL of Motl.ves (IIOTIVE) secs Ëhe pace for a1.1. oEher vari.a.bLes" 

The incoming sEimulå (SAC) trs the onl.y facËor developlng Brand Comprehensj.on 

(BC), Choïce Críteria (cc¡, AEÉlLude (At¡u and IntenEion (INT)" 

As can be easily seen, tvíEh no purcha.se behaviouru Purchase Sagis- 

facElon (sAf) and confi.dence (coN) quåcktry fal.l Eo zèToø The lmpace of these 

Ewo variabLes compl.eEety Í.nhiblËs Ëhe learnlng processes and iE is so3.etry up 

Ëo Ehe incomÍng sEimul.i to inÍ,tiate a Erial, Þurchase"

InEenLion (Il'lT), MoLlves (uor¡vn)e AËciEude (at)u Choåce cråcer3.a 

(cC¡r and Brand Comprehension (BC) are a3.L aÈ a somervhaL s$.n!.Lar Ler¡e1. ThÍ.s 

1s a refX.ecEion of the missing Llnks - Ehe purchase and Ehe varlatÍ.on in ín- 

cornång Í.nformat!.on" ÅÌ.n Ehese !.nternal. characteristics exhlbited by the 

buyer tr'ogical1.y would not differ eiEher Ln reaLity" The Level of need Ehe 

buyer has Eoward a parEf.cular producEo hls cognitlons Eoward Ehe producE cl.ass 

and Ehe brand f.Èself, l¿ouLd noE differ - att he df.spLays ts ç¡hat he receives 

by way of incoming stimu!.i.i * Ëhe SAC" 

The behaviour mode cha.racterÍ.sËic of Èhe Lea.rni.ng SubsysEem, glven 

the factors hel,d conscantu is a reaListlc cha.racEerizaEton of the siEuatf,on 

eonf,ronti'ng a g$'ven buyer' In sumu Ehf.s subsysEem represenEs a Logåca!.Iy 

eonsÍstent framework vÍ.er¿ing consumer behaviour and trearning. 

L 4.L

D. Qt¡_tpt¡! SlirÞqyqqem 

the outpuE subsysEem as prevLousLy described ls Ehe simpLest and 

smal1esE of al} subsystems yet lE conEalns Ehe key Eo Ehe dynami.c charac- 

EerisEics of buyer behaviour - purchase. Through purchase behaviour and 

poEenti.aL resultant satisfacEionu habiE formaEion may occur Ehus creaEing 

purchase cycLes and reducing the fi.or"r of externaL informaEÍon reachins the 

consLlmer 6 

As previousLy outlÍned, the modeL treats purchase beha.víour as a 

ÈhreshoLd concepEe whereby if, Ínsuffi.cient íntentlon Eo purchase (IpI) is 

available a purchase wiLl not occuro 

The outpuÈ subsystem is descrl.bed ín Equation 4.0" 

P,K cLIp(1e0.Ii,{T.KeX) 

F - Purchase (UnlEs of Froduct) 

ÏNT - InLention Eo Purchase (UnÍ.ts of InEernal 'îEnergyr) 

,{ - Purchase ThreshoLd (UníEs of InEernal. ,,rEnergyoñ) 

Le.2 

The ouEpuË behavlour mode for this subsysEem ís noE shor,rn due to Ehe 

size and naEure of Ehe daEaø The output data for purchase wouLd be a zero 

or ê onee dependlng upon the Level of inEenEion to purchase (iNf) on Ehe 

pa.rE of the consumeru 

A one or ê zero for purchase behavlour has been uEilized Eo mainEaín 

consisEency wiEh Ehe nâture of th.e producE as previousLy described. Gener- 

all"y speaking, Ehe paper i.s concerned with a. consumer sEapl.e or convenience 

good whÍch 1s boughE regula.rLy, such as a carton of rnilk or a bar of soa.p. 

Ïhe focus or concern of Ehis paper primarïny is wieh purchase or non-purcha.se 

behavLour as opposed co quantiEy purcha.ses versus síngle ltem purchases, 

assocíaEed lags, Í.ncreased consumpEion raEesu and so forth" 

40

The output inEervenlng variables of AEtenElon0 u Brand Comprehensíonr u 

AEEiÈudee, and ÏnEention0 are vrideLy usecl ln markeEing research as depend- 

enE varíabLes, For the purpose of Ehís paper, as regards defining lnter- 

actl,on beEween Lhe firm and Ehe consumer as outside the boundary of Ehe 

sysEem under conslderatlonu these intervening variabl.es have been omíEted6 

Ehelr counEerparEsu exi.sEIng as hypoEheEi.cal- consErucEs r"¡íEhin Ehe learn- 

lng subsysEeme refl.ecE adequately the hlerarchy of effects discussed prev- 

i ous!, y " 

The EhreshoX.d parameter X, outLÍned heretofore, as an experi.menEal 

parameteru sets an arbÍ,trary LeveL which f,nEenElon to purchase (INT) must 

equatr or surpass before purchase behaviour may occur. 'Îhe foLLowing chapEer 

wlll, deaL more cLosel.y and anaLyze Ehe lmpa.cE of Èhls exper!.menEa.1 para- 

meCer" 

L¿+3

E" E{ggenog*s YaF:ljL_bL es* SurbsJsEegr 

The exogenous variables subsysEem, 

lmportanE funcEion of delimiEins Êhe area 

L¿'.4 

previously defined, serves Ehe 

discourse, reducing errorn 

and enhanci.ng communlcaElon effecElveflêsso The exogenous varlables as 

describedu Ehereby establ.ish Ehe characEerisEícs of Ehe consumer under 

consideraEíonu EhaE ls, they provide rnarkeE segmentation daEa on Ehe con- 

SUIIIêF o 

The exogenous variabl.es aree as def ined withf.n Ehe Syseems Dynamics 

MeEhodol.ogyo exEernal to Ehe sysEem under consideraElon. They do nog 

lnteract or feed back to the varlabi.es r'¡iEhin the sysEeme buE are mere3.y 

impinging forces from outsåde Ehe sysEem" 

The modeL1.íng of the exogenous varf.abLes subsystem described a set of 

seven varíables whÍch were EreaËed as lndependent va.ríab!.es functlona1lv re- 

!.aEed Eo anoÈher sec of dependenÈ variables" In essence, for the purpose 

of Ehe simul.ation trial-su tshey act soLely as conscanEs. Hor+everu for the 

purposes of tesË1ng and analysis, a loglcal and consisEenE framework for 

their deveLopmenE was provlded in order Eo ald in the understanding of 

their i.nEricaEe rel.a.tionshlp with Ehe sysEem under consideration and link 

them more closely r*ith markeEing prlncipLes and theory" 

The mathernatlcan equaEions formulating and describing Ehe exogenous 

variabLes subsysEem are LtsEed as fol. lovrsc 

A IMP,K a T.qBHt(IMpTepC,KeOen "0e.l) 

T IMÞT = "6/ "71.8/.3/"51.6/.5/"7l"B/ "g/L"O 

É\ PC,K = 0 

þ, cuLT.K = TABHL(CULTTrDV"Ke0eL"0e,l.) 

T CULTT ã L"Of "91,25/,2/,LS/,L/,09/ "O7Sl,O5/,OZSlO 

A D\t.K = "1 

a.s 


50 

50, t 

50"2 

5¡. 

51.3. 

51" 2

A SOCL.K 

1 SCICLT 

/d LU"K 

A BERS.K 

T PERSÎ 

A TA"I( 

,.{ goc,K 

T StC? 

À FL"K 

À TIþIP"K 

T TIMFT 

.å LH"K 

A FIN.K 

T FIirlT 

A TE"K 

= TABHL(SOCLTrLU.Ke0el. 

"0e.i.) 

É .61,7 /.8/ ,9/"¿+/,5/"6/"7 /,8/ "9/"1"O 

= t8 

= TABHL(PERSTuTA.K$0r1,0e.1) 

= .L /.1"/.2/ "2/ "3/"3/"4/"4/"5/.7ly,O 

= 19 

É TABHL(SOCTeFL.Ke0e3..0e.1) 

= "3/"1+/.5/"5/ "6/ "7 /"t41"61"8/"9f L"O 

="9 

s TABHL(TII{PTeLH.Ke0e1,0e.L) 

e ,5/ "61 ,7 Lg/ ,6 / "5/ "3 | ,41 "6 /,8y'1"0 

="9 

= T.A,BI{L(FINTrTE.KeOrL'0e "¡.) 

= "L/ "3/"61 "51 "51"6/ ,7l ,g/L"O/ "9/ ,8 

4 

'B 

This subsysEem is reLaEed Eo Ehe oEher subsysEems quLEe ci.oseLy and 

due Eo Ehe naËure of fts ouEpuE behavf.oure i.ê,e constanËe !.t was incl.uded 

in the símulaEf.on Eriatrs for Lhe lndlvÍ,duaI. subsystems. The Logic beíng 

Èhate had Ehf.s subsysÈem not been lncl.uded, they lvouLd have had Eo be assumed 

as constanEse r.rhiche ln real.iEy Ehey are" 

The ouEpuE behaviour of Ehi.e subsysËeme given Ehe naEure of the 

eonsumer market segmenEaEÍ.on data a.s previously specifåed" is as fol.Loivs¡ 

TiME 

E+O0 

TMÞ 

Fç'OO 

,û "60000 

1.. .60000 

2, "60000 

3u .60000 

L," " 60000 

5" "ó0000 

The E-xogslrous V+riabl eE SgbsyåEegr 

CULT SOCL SOC 

E+00 E+Oo E+.00 

.90000 

" 90000 

.90000 

.90000 

.90000 

"90000 

"80000 "90000 

.80000 "90000 

"80000 "90000 

"80000 "90000 

"80000 .90000 

"80000 .90000 

T ÏI"IP FÏN 

E+OO Eê'00 

.80000 1"0û00 

.80000 n,0000 

.80000 3.,0000 

.80000 1.0000 

.80000 tr.0000 

" 80000 1. "0000 

FERS 

PP00 

" 70000 

,70000 

" 70000 

.70000 

" 70000 

" 70000 

T4,5 

52 

52.1 

52"2 

53 

53. L 

53 "2 

54 

q¿ I 

5{+"2 

55 

55, n 

55 "2 

56 

qÁ1 

56 "2

TT}48 

sâ00 

6" 

7n 

8" 

¿ø 

tr0. 

" 60000 

, ó0000 

.60000 

.60000 

,60000 

,90000 

"90000 

,90000 

"90000 

"90000 

,80000 

,80000 

,8000û 

" 80000 

,80000 

,90000 

.90000 

" 90000 

,90000 

.90000 

" 80000 

,80000 

.80000 

,80000 

" 80000 

L.000û 

1.0000 

1.,CI000 

1.CI000 

1. "0000 

x.&6 

PERS 

EsO0 

.70000 

.70000 

" 70000 

.70000 

" 70000 

The oubpuE daEa was cermLnated afEer Een weeks Eo avoi.d unnee@ssary 

dupl.l.caEion of consEant daEa outpuËê Each varåabne ís expressed as â col- 

sEanEe havfng no inEeraction wiEhln Ehe sysEem and assumlng no !.nEeracEíon 

r.ríEh iËs associated exogenous varÍ.abl es except es speclfi.ed by the resear- 

cher compil.ing Ehe lnpuE data" 

The segmenEaEion data specified by Ehe researcher do noE necessarf,Ly 

have Eo be a rtgidS.y consEanE seÈ buE musc aE 3.easE conform Eo some Loglcan. 

inEerrelaEíonshlps beErveen variabLesu For lnstanceu 1E rvouLd be somerdrat 

lll.ogical Eo assume a consumer characEerized as Eimid on Ehe variabtr.e 

Fersonal.íty (PIIRS) a.nd Leader on Ehe SocÍaX. or Crganåzaeionai. SeEEing 

(SOC) varlabl.e" 

II{P 

Ee00 

CULT 

E+O0 

SCICL 

EË'00 

scc 

Ê""00 

TÏ}IP 

E+00 

FÏi\l 

E+"00 

The lmportant polnE to noEe rvlthln thls subsysEem is thaE the 

vari.ab!.es described represenE segmentaEl.on data speclfylng the characÈeri.s- 

tics of Ehe consumer, 'I'hey do not have an exacEi.ng seE of lnEerrel.ation- 

ships buE shouS.d at LeasE be specified accordíng Eo a logÍcal. framework, 

The exogenous variabLes are Eo Î>e constrr¡ed a.s belng exEernaS" to Ehe 

sysÈen and correspondflngl.y consEanEs thoughouL the simuÏ.aElon ErlaLs. 

Shou}d a model be devel.oped whereby Ehe purpose f.s Eo descri.be and ana}yze 

Ehe ehanglng naEure of a consu¡neres behaviour over a speclfied Lífe span, 

Ehen Ehese varlabl.es must be consldered as constructs ç¡itshi.n Ehe svstem 

and ånEeracEing and feeding back rølEhin and beEween each oEher"

F" The þc_egrqte{ }'Lo3eL 

The behaviour mode of the fnËegrated rnodeL i.s a compLex manifesEa- 

tion of Ehe behavlour of each of Ehe fi.ve subsystems of Inputu PercepEion, 

Learnlng" Exogenous Variabl.es and Ou€put* Each of these subsyscemse as 

prevlousLy descrLbedr behaved in a very sEaELc, non-fX.uctuatlve manner 

rdnen viewed as separaCe and dfstincE entitÍes" 

The behavíour of the lntegraEed modeL should essenEtally fall lnto 

one of two caEegorles, growthe or stagnation and equltr ibrium. No atÈempE 

aË Ehls poi.nt has been rnade, however, Eo províde eíther sEandard modetr " 

RaEheru a situa.Eion has been descrlbed wherein a flrn expends X-nurnber of 

doI. l.ars to esEab3.ísh iEs markeEíng mixe a consumer is fa.ced vríth a. gi.ven 

soc{.aÎ- sÍ.EuaEåonn and Ehe eonsumer is descrÍ.bed as having cerEaÍ.n charac- 

teri.sti,cs. The lnEerp1ay of Ehese varlabLes withln Ehe percepEuaLe lear¡- 

Ì.ng, a.nd purchase subsystems Ehen consElguEes the behavf.our mode characEer- 

isEi.c of the modeL. 

The set of maEhematlcal- equaÈf.ons, descrlbing Ehe enEire model are 

tr ísÈed ln fuLl ln Appendf.x ¡{. As may be evldenEu no longer are any con- 

stants assumede a.l L factors representing construcEs r.vithin Ehe model are 

formulated Ehrough lnEeracÈf.on and feedback relatíonships" 

'fhe beha.vlour mode ln Ehís slËuation is besE Dortraved both bv 

numerf,catr tabl.es and graphlcal" ptoEs" The numergcaS. Ëabl.es are ouEi.ined 

ån 'Iab&e I' The graphica1 pLots are accordf.ngLy ouES.ined în !'i.gures 

25t 26b 2v u 28u 29 and 30' To simpl.lfy discussi.on and analysls of Ehe 

behavÍ.our of Ehe model.u Ehe graphi.cal p1ots wiLL be used mosE exEensi.ve1y 

w!,Eh only mïnor references Ëo Ehe Eab3.es. 

x-4t

2 

T 

o -;"" 

T I I.tE 

_-.=..-.=---.-.-.:..:.---.- 

LI24 /73 ÂPP LE 

sYf.lv slci'! ssll su cvTs sp st^! c0NTi't 8l¡\s sAc, ¡4oTtvE cc pc AT 

-_. |{EHE .. -._. INI,-. .-- . S^T ..- . . CCÍ',J 

;-r;å- 

-u.r----iri - ---_o;r;--;o] - -u.o,t--u-or-.;o;_---ri*-rro-i.-*_-.-";-;- 

E+C9 E+C6 EICC E+C3 F+00 

= -' -_ - : - i.,.ì : : -._: - : - - :.-.:. - 

.c 2Ç.53ê, I6.89l 22.636 3C5.3t 5.0000 2qo.o 

... ..occ . _ .c ...c0 I .ccz .c000 

:. : -. -.: : - -.:: - .- 

.ccc .c .c00 .cct .occo 

.0c0 . .0 .c00 ..0c0 .00c0 

.L.-2.e''-L5'e-'!-.6-9(:l.*-l.3;.-6!,'?-2!Q.l'5'3'..--_---3-'-9'9.'?_'-.l-l'.3.5..'e-_'. 

.ccc .0 .c00 .ccc .c000 

4. t8.043 ló.92ó 

' 

16.i36 2C5.55 4.CO64 IL82.5 .e4307 

.ccc .c .c00 .cco .c000 

.ccc .c .0,)0 .cco .c000 

.:..:..:::-- 

10. 1e.?36 l?.618 lt'.4i')9 ?25.36 4.1302 1205.4 .8t830 t16?.3 .9218 

.cc?... .c 1,.tqo .42¿ ',t .c000 

1.8I5 (77.7 12.Cte tÌ.C?c 1.c000 

, -,-_ - : I -.- - 

14. 2C.L99 1e.3?6 I4.?ì7 ?.i,.52 

* _ : _ _ _:.?t2 _zctr.2 

L2.L5s 12.zso 

4.7ct.3 IBl4.7 .7

_Lrr+ t/24/72 ÁPPLË 

iliÈ---sv'y'--sr6v- - ss¡r -- s" 

l 

I 

z 

o 

- -cvrs-- 

8.0é1r t'-13-8, ll.8fl6 Lt'.Zel 1.C000 

t8. 11.142 18.7C7 2C.501 2E?.Ce 4.e5'11 2073.6 .77370 5177. I .1646 1523.1 t0.236 107.93 t24C.B 52.995 

_.,5.8,93 é3CI.1,€.186 \2.5f5 . t.0000 

-... .-..:.-..-.t-.- t - : 

?0. 19.2ã? I8.112 tS.CB9 219.4L 4.9767 ?010.? .77537 5128. I .7144 t525.a e.834 tO¿r.68 t25t.t 

8.522 14?3.3 t0.?81 1:.8C4 1.C000 

24. 1€.3'i3 IS.';92 22.?.49 ?

: 

t 

a 

I 

o 

T/24/73 ÀPPLE 

T I YT. ".--itrp__-- liCt --- ss¡r- - .i" 

. r'15r":E___ _ . IilT _ . SAT CCN P 

- cvrs sp srî coNTrq erns sAC. r"rcrrvE cc Bc 

40. 19.7il. IB.eé3 17.3I6 215.95 4.9?,'q2 2072.6 .11151 5t62. t .7ó7ó 

ó.0t3 5257.4 IC.228 1I.2C0 ì.C000 

44. t9.488 19.I85 2C.626 2ç8.38 5.03t 8 2028.1 .7ó35t 5478,.4 

..- 1c.502,. ei49.9 Ic.€04 tt.17s . t.0000-. 

46. lç.É40 19.t52 20.829 ?9q.94 4.9469 2II9.8 .76566 5641.5 .ó705 I3e8.9 10.355 113.57 L21t.4 63.519 

_ _ _ _ l':': _*l'l'1 _ :':'l _"_'!=! _ _ _':'90! 

ó.6q6 6t95.2 9.(56 l1.CéI t.CC00 

50. 18.936 19.085 23.190 ?C2.88 4.9480 1999.3 .76010 5355.1 .728e L542.4 9.539 102.3ó t237.8 49.80ó 

.:..--.-^-j-2.,-,!-o|=!.:-':.:o]-'i.:'i---':,!o!---- 

1471.8 

AT 

9. C57 90.57 I2Z?..q 52.488 

.7 04V L538.2 lt.55e 134.22 L24e.l ó4.400 

N

T.49 

Fïgure 25 out3.ines Ehe behaviour of bhe Ehree variabX.es cornprlslng 

Ëhe sEi.mulus dispLay, SYÞfl'f, SIGlvl and SSM" The behaviour of these variab}es 

ouEtr 3.ned prevÍousl.yr is hi.ghLy lndependenE of the i+orking of the consumer 

ånasmuch as Ëhey coul.d be Ereated as exogenous vartabLes raEher Chan lnpuEs" 

,A.s is graphlcal.tr"y displayed, these variabXes malncaLn a mean of 

approxf,maEeX.y 20 thousand unÍts of ¿?energyE? r+1 th SSM dÍsptraying Ehe i.argesE 

devlation around the rneanu The behavlour evidenE here is an exacE repli.ca 

of åEs behaviour rshen vi,ewed as a separace and df.stincE enEiEy, 

Flgure 26 ouElínes Eh.e behavlour of OVTSe SlAe BIAS, Fu and S,AT. 

Overt Search (OVTS) Íncreases sLlghE!.y from approxlmaEeS.y l+ to 5 a.fEer a 

Purchase (F) oecurs in the L0Eh week" This refLeeEs increased lfoEfve LeveLs 

after purcha.se has oceurred, IE f.s importanE to noEeu however, EhaL no 

marked increase occurs EhereafEer, l"ê"e iE stablLlzes a.E approxf,matetry 5" 

saEåsfacEtron (sAT) î.s shown bo be nonexåsEanE untl!. Ehe purchase has 

occutrredr rqhere tt fluctuates wfEh a meen of Een un!Ës of inEerna3. rÊenergyúe 

and a sEanda.rd devi.aElon of 5 unlEs" The point belng that satÍsfactlon l,s 

conEingenE upon Ehe purchase and fl.ucEuaEes Eherea.fEer. SElmulus Amblguity 

(Sta¡ may be seen more cLearl.y ån Tabne I" STA reaches a hlgh of approxl- 

naEely"86 before purchase oceurs and thereafEer remalns at a vanue less 

than '8. Thl.s refLeets a reduced LeveL of sEi.nutri ln Ehe df.spl.ay and a 

consequent narrowing of the sEimuli. actuaLny reachl.ng Ehe consumero It 1s 

1n the first 9 t+eeks of pre-purchase that the consumer is del.uged wíEh 

i.nformaËion and thac Ehe stÍ.muLus ambågulEy is greaEesE, 

PercepEua[ Bi.as (BIAS) is Leasc durïng Ehe first L6 r.¡eekse l"eee 

a greaE deal. of Ínformatlon is aX.i.owed Ehrough €o eventuaLtry become an s-â*co 

The taperlng off occurs, however, after purchase in the n-Oth week and con-

f4 qf nt.4-G QQI'l =c 

Iiî )||tt -'It W.¡: '-.) 

eo 

ûo 

1 lr') |-lz 

!t t-r-I t -, 

A DDI I: 

1.0.r ?-a "T 

n¡1 

enf,l 

JI 

n¡4 

e n tî 

-s- 

I 

.-) 

30"7 

r qn 

4O.T ¡¡GS 

n¡4 nq 

nQtÀ 

neÀ4 

| \J 

f,t e ¡ln 

Jo 

l ¡ìl 

nMnq 

oo 

1n - G ¡{ f"ls 

^ ^ ¡¡ 

" 

¡ 

r1 ,:o 

Mnq 

n t4ç 

, ; t\, 

q î ¡.'i 

l-l 

ô ô \, ^À, 

t. 

t¡ 

o ,) ^ ' ll 

^ À¡ 

. ll l'l 

r. ,ì Il 

tq o'J 

n ¡.lq 

f4c nt4 e., o 

Qh4 

O IJ ¡ ¡ O 

lrlì - q T\r o 

¡"t tì 

n 

t{ rr 

il 

ôo 

f4 

o 

.):f : 

q¡1n 

¡'! f: e 

ì'l i 

OU 

s 

q 

cn$4 

ni¡ LJ: I 

nt4 

er, 

o 

. 

t 

c 

.) 

Àlr^ 

| l(Jø 

n¡l 

û 

n¡..1 q 

il r,..J 

".) 

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nc ¡4 

¡'1 q 

c 

À¡ 

F 

lf 'r" ^ 

) . 

et4 

n ¡/îe 

qn t!n- - -e- - 

):) è \J 

Th.IE å AST'Ë GR,AT'ED MOÞE L 

F I G. 2 5 

À4q 

f4n 

i::: 

frG 

¡1S 

rrô 

r. â.l 

¡{ rì 

t1û 

t4t 

Mrì

I/22/73 AÞPl-[ 

=0, STA=7_ rRl AS=ß, p= a, SAT=T 

nTl 

n 

ñ 

l-r 

P 

P 

D 

D ¡ 

ñr 

D 

ñ 

7?, 0 

7_R 0 

7^ 

7^ 

L \t . 

7?' 0 

780 

7^ 

7-B 0 

1n 

1- I) 

n 

10.- 7P,- - 0T 

7n 

.78 O 

- lrl 1q 20" 

.7P T 

7D n r 

O A¡ 

7Ð n 'J Ti 

7Ð n T 

ø !-l r/ | 

Û t-l 

7Þ rì T 

7t> n T 

o Lt l 

7D n 'r 

ô l- i I o 

?-0.- 7P- -0- - -T* 

7Ð n \/ T 

e I o 

7Ð n T 

6 I-l , c 

7Þ n -r 

7D A T 

è r-t ,/ è I ê 

7Þ n 'r 

"7P O T 

7Þ n T 

ø L-l \) ø 

7D rì '!' 

o l-l l, I 

7P N ø ¿-l r/ TI 

Elnues droppíng, reachf.ng somewhaE of an equlllbrium w!Ëh some varÍation 

oceurÍ.ng@ Perceptual Bnas ís inexEricabtry re}ated Eo Che }evetr of, Ehe 

conEi.ngency mul.tiplLer, and as Ehe mu].Eiplier lncreases Ehrough Ehe forma- 

E!.on of MoElvesu Af:EïEudeo and Confidencee more bias !s lntroduced ingo 

Ehe sysEem aLtrowing Less sElmuLl Eo f i.nal. l.y be lnternal.ized. 

L52 

Flgure 27 traces Ehe behavlour of Þ{OTIVE' CCu BCa AT, and CON" For 

the firsE Ëen weeks before purcha.se al.X. bhese staEe varlables exhíbiE such 

a mlniman degree of exi.sEence that Ehey are aE Ehe botEom of Ehe scaLe in 

b'!,gure 25" Choice crÍteria (Cc) is Ehe f Í.rst varåabtr.e Eo esÈabl.j.sh iEsenf, 

after purchase, fo3.3.or¡ed cÌ.osetry by AËtltude (,{T)ç choíce criterïa and 

AEtf.Eude f,oX.1ow a si.mi,Lar paEEern i.n Ehêår behaviour rnode - they establ.Ísh 

Ehemsetrves, reaeh equltribri.um, and f}ucEuaEe around Ehls Level" Þlotlveu 

Brand ComprehensÎ,on and Confldence also foLX.ovr Ëhe same paEcern buE exhlbiE- 

f.ng, hor'revere a lower leveL of f.nEernaL uniEs of rÉenergyüç. 

Ftgure 2B Eraces Ehe deveLopment of InEenElon (Il.lT), the main facEor 

leading Eo purchase behaviour" The graph shor+s a very Low i.evetr of lnten- 

Eion before the tenEh ¡+eek. InEention slowLy buiLds up unEll the EenEh week 

when a. purchase Í.s esEablÍ.shed and inEenEion stabilizes aE a. very high Leve1. 

wiEh slgnlftrcanE fluctuaÈlon, but lnsufficlent Eo reverse Ehe purchase 

habit and cause sEagnaEf.on, 

Flgure 29 traces the behavi.our of the SEimuÏ.us MulElplîer (SM) or 

SEi.mu1us Disp1.ay to which the consumer 1s exposed" It i.s somewhaE counEer- 

lnEuÍ.Ei.ve Eo noEi.ce EhaE Ehe !.eveL of stÍ.mutr-i €o r,¡håch Ehe consumer fs 

exposed a.ctually increa.ses afEer Ehe purchase ln the Eenth week" One l¿ouLd 

Logicall-y assume Ehat Ehe consumer r¡ouLd aEtempt to avoi.d any and aLX. such 

stimul.l' The facEor i+hlch cruclalty deEermlned Ëhe increase here was Ëhe

1./22/73 AfrÞl_!: 

"0 50.T 1_n1.T 1_50"T 2 2C0" c 

,0t4 

(] . T ¡'lcq A'\! 

r1 

IlCRAIJ 

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M 

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f4cBAhl 

¡1 

þ1CB AN 

t,1 

r'.1cBArl 

i1 

rl ,,Ì 

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^ 

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Bt4 C 

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leveL of Overt Search (OVTS)" As needs 

of overt seareh and correspondf.ngLy Ehe 

consumere 

r.56 

and agtå,Eude roseu so dåd Ehe Leve3. 

sElmulus dtspLay eentred on the 

Figure 30 deplcts Ehe beha.vf.our of Ehe S,AC, Ehe SÞu and Èhe CON'Ii'f. 

The increases evídenced previousl.y ïn Ehe sEimu}us Dlsplay (sM) are noc 

carried Ehrough Eo inÈernal.Ly affecÈ Ehe consumerø there is onLy a rnarglnaL 

!.ncrease 1n Ehe s-a-c after purchaseu and aE tÌ.mes Í.8 drops beLow i.Es mosg 

prevlous LeveL' The stÍmul.us pool. (SP) lncreases somewhate bu¡ agal.n nog 

as markedLy as Ehe increases !.n Ehe SM. The effecb of sEirnu1us amblguåEy 

and percepEuaL blas thus serve to offseE the effects of Ehe hel.ghtened needu 

aEtíEudeu and conf i.dence LeveLs, the conEångency rnul,ElpLÍer (CONTþ{) i.ncr- 

eases sågnifåcanEny after purchase Í.n response co increa.sed trevens of 

Mot$.veu Á'tElEude and Conffdence for Ëhe lndåvidua1. Its effect is fetE most 

markedl.y by PercepEual Blas (BTAS)e as prexrioustry descri.bed. 

The behaviour mode characEerisEic of the lnEegrated modelu as hereto- 

fore descrlbedu may be generall.y undersEood as lnEuiElve and loglcaL from a 

markeEing and consumer behavlour standpoinE. 

A consumer wiEh no producÈ purchase experiencee buE havlng received 

previousl,y some minimal lnformaEf.on concernlng Ehís producE, ts confronEed 

wIEh a greaË magniÈude of stimulÍ,i emanaËing from Ehe flrm" The lndlviduaï 

Processes the informatlon Ehrough his percepEua!. subsysEem and develops 

lncreasi.ng inEentlon Lo purchase. Choice crLEeri.au brand comprehenslon and 

attnEude toward Ehe product increase símul.EaneousX.v, .AfEer severai. r,¡eeks 

Ëhe consumer reaches a poinE rvirere suffícient lnEeresE has been stì.mu!.ated 

Lo engender a ErÍatr- purchase" The purchase occurs and the consumer i.s 

saEisfied, lmmedlateLy brand comprehenslon, attltude, satlsfacËlonu conf,l-

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dence, choice críEerla and saEi.sfactÍon i.ncrease" Overt search is sE!.mu- 

¡'atede perhaps Eo provf.de ref.nforcement for purchase and reduce posg 

purchase di.ssonancen some increased lnEernal stf,muLl (s-a-c) acEiviEv i.s 

evÍdent buE no marked f.ncreases occurø A hablÊ has been ereaced" The 

consumer purehases the producE on a weektry basis and he regul-arLy agtaf.ns 

saElsfacElon. The saEisfacElon flucEuates causlng fLuctuaElon in the other 

tearnlng consErucEs. However, Ehe varlatíon In saEisfacEl.on is insuffic- 

LenE to break the purchase hablE cycle, An exEernatr evenE musE be creaEed 

Eo move the consumer out of Ehis cycLe" 

Thls chapEer has prlmariLy focused on the fndlviduaL behavlour modes 

of each subsysËem r¿lEh a shorÈ gi.ance aE Ehe Í,ntegraced mode3.6s behavã.our" 

Ït appears Eo LoglcaLly fol.low a patEern consistenÈ wi.Eh marketin,q and eon- 

sumer behaviour theories, posEuLationsu and assumpEf.ons" ,ro furgher 

esÊab3-ish Ehe credence of the mode1. iE Í.s necessary Eo subject iE to addl- 

tiona1' Eescing and ana1ysls' thls is Ehe purpose of ehe nexE chapger * Eo 

del.ve lnto the validiEy of the simulaElon mode!. as presenEed" 

i.58

CHAPTER VÏ. 

TESTING OF THE },ÍODEL 

The fundamental. purpose of a modei. ís Eo replicaEe, as ci.osely as 

possi,ble, che acEuaL working of !.Es real worx.d counEerparE" The purpose 

belng mosË cruci.al. ¡vhen the objecELve is to expLain or predlcg future 

behavlour" fn va3.idatlng the model r{e are attempEíng Eo prove thag it 

measures whaE it purporEs to measure" 

The underlying thesls upon v/ni.ch modelllng ís bul].to and on which 

Èhis model is formulaEedu 1s Èhat when rea.Llby or Ëhe system represented 

becomes very compl.eN, slmulaEion modeLs provide a viabl.e and usefuL tool. 

for anal"ysis and evaluaElon. 

The probLem in validating a model isu r,uhaÈ measures of rea1lgy are 

to be utíLized? Andu a.re these lnpuEs in fact rÍ,reaLi.Eyrr? A,s perry (tSOg) 

points ouEu iiJusc as the simulation model i.s an approximaElon of sreaLlEye 

so are Ehe esEimaEes of varia.blese parameters, or re!.ationships dramr from 

the observable unlverse by lnterviews, questionnairese surveys, staEistlcaL 

anal.ysise or any other methodrt. 

ThÍs gives rise Eo several other complicaEions ñn modetrl.ing such as, 

equÍvalence of input data setsu and LeveLs of signlflcance for EesEing. 

Ït lEoul.d âppear then EhaE the acEual rejecEíon-non-rejecEion of hypotheses 

1s somednat misLeading" Þerry (tOOS¡ cf.Ees Fopper (1959) who suggesEs oo6 

'rEo concentrate on tlre degree of confírmaEíon of a model ra.ther Ehan r¿heEher 

or noË the mode1 has been verlfied, If in a. series of emÞj.ricaL EesEs of a 

modelo the number of cases cf fiE increases Ehen Ehe confldence in the 

model will grow step by stepçÉ.

Perry (f004¡ Looks aE the probLem of ;Ehovfr 

seEs and ouELlnes seven basic eriEeria rqhich couLd 

Ëion¡ 

EO 

be 

compa.re the data 

r60 

uEilized for valída- 

1) Face vaj.islt$y (consistency) - Face vaLidity is a surface or 

iníElal impresslon of a simulaEion reaLism. 

2) ny¡gyjS vsrtjgi_ry (vtabil.iry) - þnamic validiEy demonsrrares 

Ehe ablLÍ'Ey of the simulation model- to repLicace processes which are 

changed over tíme, 

3) sEaEic YSIiA+ty (staUilíty) - There are some variabLes or pro- 

cesses in Ehe real v¡orLd EhaE are knor.¡n Eo be sEabtee or thaE have reached 

a. sCe¿!.dlz sta.Ee. 

t+) Jgt"q4eå y33Jqíqv (reLïabtliEy) - ,A ret íabít íry of a símularion 

nodeL is measured by the variatíon between successive runs of the simuX.a.Eion 

with a.l L properties held consEanEo 

5) .Hypqlhesls. V_af idlgy (observaÈion) - In rhis a.pproachn hypoEh- 

esized relatlonships became Ehe validf.Ey crfterla" 

6> Ey,e3! Vali¿ig (predicrion) - The abillEy of rhe modeL Eo 

predict actuaL evenEs in the real ¡,rorl_d" 

7) Variabte-qaqgggts5 V.gU_dirJ (senslcivíEy) _ This invotves rhe 

comparison of Èhe simul.aEiones varÍabLes and parameters rvith Ehetr counger- 

parts in the observed realf.Ey. Sensitívity analysis is a fea,ture of var- 

íabi'e parameEer va.3,idiÈy. In repeated runs of a simuLation mode} Ehe seEE- 

ing of a parameEer or Ëhe range of values assigned a variabLe are sysgem- 

aEicalLy arranged to determìne !ühac dlfferenceu if anyu Ehe aLEeraEion has 

on Ëhe operaÈlon of the model." 

Perry (1968) also points outs

?r'The use of simuLaElon variabLes and parameEers ånEroduces 

Ehe probÌ.em of comparing Ehem wíth def inltions for thei.r real. 

+¡or!.d counterparts. Thí.s Ëask can be particutra.rly Èroublesome 

when the deflnïElons musE correspond to a símuLaEion 

variab3.e or parameter thaË 1s either an anal.ogue or a proÈotype 

inEended Eo combi.ne numerous fea€ures oi Èhe reference 

sysCemrr " 

Thus Lhere is greaE diffi.cuLEy ln Ehe process of validating 

a simul.aEion model . The individua.L strensths and r¡eaknesses of each of 

Ehe apÞroaches LísEed suggest thaE a comblnaElon of them would be most 

fruitfuL ín valldatlng Ehe model described in Èhi.s pê.pef,o 

163. 

;\ccordi.ngi.yu sens!tivity anaLysis or varíabLe parameEer vaLldiEy 

was uEÍLized f.n conjuncEíon wiEh a cross betr,¡een þ'ace and Dynamlc val.idlEy 

through Ehe use of a Eheoretf.cal. example" 

Au Selrsl tlvjjy 3-ef;Eing 

The ouEpuE of the si.muLaÈion aE each run 3.s, in facEu an lndicaEon 

of Ehe re}aElve si.gnÍ^ficance of each of the varíabLes and l.tss lmpacE on 

the comprehenslve modeL, SLx tests ln alL ç¡ere conducted, The resuLts of 

these EesEs are i.ncLuded in Appendlces B, Cu Du Eu F, and G, 

Appendix B descri.bes Ehe ouLpuE beha.vlour mode of Ehe modeL when 

aLEerations are conducEed on Ehe Input Subsystem, 

The InpuE SubsysEene as previousLy described, i.s eoncerned wiEh 

Ehe externaL sË3.muX.i forces åmpinging on Ehe consumer emanaEing from the 

co¡¡rmercla.n and soci.atr envlronmenE@ 'fhe sensíËï1rlEy tesE focused on Ehe 

comrnercial environmenE eonsisEíng of the syrnboÌ-ic and signif lcative sEimu3.i" 

The changes tested were made dlrecfly on Ehe symbolic sti.mul.i.. 

Howeveru due to Êhe naÈure of Èheir f.nteracti.on iøíth the oLher varf.abtres 

wiEhin Ehås subsystem, the change í.ndírecELy infS.uenced aLX. Ehree caÈe- 

goríes of sEímutri,

The Eesb r"¡as Eo drop Ehe fírmes inputs (in ¿oLlars of expenditure) 

by one hal.f of iEs original amounE, The firmos expendítures were thus; 

Quatr.íty Expendlture 94000/week 

Frice .14ç/unít 

DísEinctiveness ExpendlEure $4000/week 

Servlce ExpendlEure $1000/week 

AvalLabiIi.Ey Expenditure 93000/week 

Ihe behaviour of Ehe model Ln response Eo these changes ls Eabu3.a¡ed 

and graph!,calLy represenled in ^åppendíx B" 

The behavíour ís highly counEerf.nEulEíve i.n chi,s 3.nsËance, f.,ê"e 

one mÍght expect Ehat lt would mereT.y cake Longer for the consumer to make 

an i'nit!.al Er!.aI purchaseu The uniEs of '6ener¡¡y4e acEuaX.!.y emigged by Ëhe 

doll'ar expenditure'LisEed is subsEanti.ally reduced in aLL Ehree caEesories 

of sEimuLi" The infLuenci.ng facEor appears Eo be Lhe functi.onaL relaElon- 

ships def íned beEBleen the varíabLes r¿lthin Ehis subsysEem wlËh parEi.cul.ar 

reference to Ehe emphasls - expendiEure functionaL rel.aE!.onshlpsu as prev- 

iousLy outt íned. 

The net result of thts subsEanElal reducLion in sElmuLl was a 

dramati.c fal-I'-of f of sEimul.l beÍng eventual.Ly SnEernatlzed by the consumere 

The resul.ts of r,¡hich lüas a diminuaEion of motlve, aEEítude and confidence, 

as welL as ai.l oEher construcEs r¡ithln Ehe learnlng subsystem" OverE search 

ptummeÈted Eo zerou as did alL oEher variables wf.Ehin Ehe sysEem. 

Thís is, ín facEu counEerlnEuiEive behaviour thaE woul.d noE normaÌ.try 

be expected" However, Ehe behaviour exhíb1Èed becomes more accepgab1e 1¡nen 

one considers Ëhe muLtitude of stlmuXl reguLarl.y reachf.ng a glven individ- 

ual in any one çleek. ShouLd a firm cuE lEs expendlËures by one-haLf it 

r'¡ould be Loglcal and reasonabl-e Eo conclude that a great many consumers 

1"62

&IouLd no Longer perceíve the sEimuLi communicated, given thaE a1.¡. ogher 

f lrms malnEai.ned thelr same Ï"evets of expendÍ.ture. The behavlour of Ëhe 

modeL in response Co Ehe change may be somer+haE exaggeraËed butu ln essence, 

it conveys Ehe lmpacE of 50% reduction in input expendlturesô 

The second test of the model lnvolved Ehe manlpul.aEion of Ehe exo- 

genous varíables describlng the characEeristlcs of the consumerê ,{ con- 

sumer was previously described to have cerEaln characterisEics for the 

sEandard sírnuLation run ln the previous chapter. the consumer has been 

modífied as follows: 

vqrJaÞl ç 

FroducË category 

CuL Eure 

SociaL ctr ass 

PersonaL l Ey 

Social. & Organlza.Eïonal. setËlng " 

Time pressure 

Fínanclal sEatus 

Value Character! sË! c 

3.6 3 

tr Speclatr ty Good 

"9 }ligh degree of variaEion from sÈandard 

uI Lower class 

"l- Htgh1y Eimld 

tr FoLLov¡er orienEed 

.3 ÞfoderaEely Low pressure 

,2 TtghE money situation 

The behaviour of the model Ln response to Ehe changes LtsE ls 

EabulaÈed and graphical.Ly depicted in Appendl.x C, 

The Ïnput Subsystern behaved normaLLy but some\.rhât lower Ehqn Ehe 

sEanda.rd lnËegrated model due to a Lortrer Level of overt sea.rch for the 

consumero l'{otlves and atÊiEude Eoward Ehe producE rose and sLa.blLízed buE 

aE a much lower LeveL Ehan prevíousLy" Choi.ce criËeriao brand comprehensl.on 

and conf ïdence exhlbiÈed very Low levels of exÍ.sEence. the consumer0s i.nEen- 

Eion Eo purchase rose and stabillzed aE a 1oÌ,¡ Levelu rvíEh no purchase con- 

summaEed durlng the yearo There r.rere very few stimul-i lnternallzed by Ehe 

f.ndåvldual due to his Low LeveL of overt search" I'lhaEever sEímuli dld reach 

hlmo howevere were Largei.y unamblguous and unbíased by hi.s percepEual

processes. 'Ihls 1s perhaps the mosE i.ogicat and accepEable behavi.our 

mode ouEpuE Lhat ç¡ouLd be expecEedu given Ehe nature of the consurner-o 

The consumer being very much fol-lower-orlenÈed and í.n a Eight money siÊ- 

uaEion exhiblts very Li.ctLe search behavlour and dlmlnishes the overaj.I 

Leve!- of the systeín - the resuLE being, no purchase beha.viour. It rvould 

appear thaE the exogenous variables subsysEem does have a slgntfica.n¡ 

impacE on Ehe behaviour of Ehe modeL, as deflned. 

The third EesE of the model involved Eh-e experimental Dararneger 

SQRI (Square Root) used as a converslon coefflcíent wfEhin Ëhe Learnins 

SubsysLem" As prevlously outLined it v¡as used Eo Eransl-â.te an !('energyii 

uniE from the Input and FercepEual subsystem Eo an internal untt of 

Ë$energyrr r,vl.thin Èhe Lea.rníng subsystemu IE may be suggested thaE the 

t!€nergy"+ or imput ses exlsEing in neurological facE rüouLd vary between Ehe 

two subsysEems buE Ehe conversion coeffi.cient is a dífficuLt and unanswer- 

abte prob}em at Ehf,s poinE. The apparent soLution is to experimentaLly 

set a coefflcienE and EesE iÈs snestEivlty Eo va.rïa.Eionu thereby determin- 

ing whether such a coefficlenE is of consequence or notu Eo Ehe modetres 

behavl our. 

'Ihe modeles coefficlenE r+as altered Eo a vaLue of "00L from the 

funcEion SQRT (Square RooE), the behaviour of Ehe modeL ín response Eo 

thls change ls Listed in Appendlx D" 

The InpuE 'iubsystem was Lar¡5ei.¡¡ unaffected by thls changeo wtEh 

somer'¡hat of an f.ncrease in stlmul.i.i. encounEered in the sEimul-us dispÏ.ay 

(Stø¡. The reason being a st igh,E increa.se in the Level of overE search bv 

Ehe consumer" Most variables behaved in a. very simil.ar manner Eo EhaE 

expressed 1n Ehe sËandard or f.ntegra.ted model presented in the prevl.ous 

16t".

chapÈer" Ïhe onLy major var!,atíon T,ras that a triaL purchase occurred 

tn the såxEh peri.odn somevrhaE sooner than prevloursl.y encounEered, 

165 

The generaL concl.usi.on from Ehis Èest 1s thaE the modeL is sensl- 

t!'ve Eo Ehe conversf.on coefficlenE utiLlzedu but as Long as !E maintaíns 

a vaLue very cLose to.001 or SQRT Ehere wiLL be LlEELe varíatlon ín Ehe 

behavLour of Ehe model n 

The fourth tesE Í.nvoLved Ehe experimentaL parameËer LOGN (nagura1 

1og) which was uEiLlzed as a conversion coefficienE between esenergyrf uniEs 

withín the PercepEual subsysEem and acEual. staEes of the sysEem r¡ithín the 

tearning Subsys8em (measured in uníts of ÉóinEernai. energyrþu .Ihis is 

v@r3P sinilar Eo the previous EesEu buE f.nvolves a conversåon f.n Ehe 

opposl'Ee directåon' It may be postui.aEed at thls poi.nE Ehat the factors 

are differenE ín Ehe Ewo dlrecEf.ons and as such r¡oul.d si.gnlficanELy affect 

the oucpuE behavÍ.our of Ehe modeL. 

The behavlour of the modeL in response Eo the change in the co- 

eff icÍ.ent from LOGN to "003 Ls Listed in Appendi.x E" 

The behaviour of the InpuË SubsysEern Ls unaffecEed by the changeu 

exctrudlng the stimulus muLtíplf.er whlch pLummets Eo zero withln l5 v¡eeks, 

¡l,LL oEher variabl.es and parametersu exel.udíng percepEua1 bíasu rea,ch zero 

withín 20 weeks" IE appears Ehat an ínsufficient conversion i.s madee i.ê"e 

the effects of the Learnlng SubsysEem are minimized, creaElng a Low l-evetr 

of overE search, shutEing off the creaEion of, sEímuliu and movLng the sys- 

Eem inEo a hígh speed doronr,rard spiral . 

The poínL beLnge EhêE adequaEe compensaElon must be glven Eo Learn- 

ing 1n infl.uencíng and modul.ati.ng the PercepEuatr Subsystem. rlccordingLy, 

iE t¡ould appear EhaE a value approximaEing SQRT musE be utiLized Ëo opera-

tlonaLÍze Ehe model and provide LogicatLy consísEenE outpuE, 

The fifth Eest invoLved the normal- aEEriEion rates assumed ln each 

of the ouEflow rates' The system assumed a LeveL or sEate varíable for aLL 

rnajor factors wiEhin the model., wLEh a rate determining Ehe fLow in, and a 

rate decermining Ehe fLow ouE. IE was postulaEed EhaË aE Ehe end of each 

week there r¡ould be liEEle or no retenEîon of lEordsu symboLs, materiaL, etc. 

aEcained during Ehe vreek" Thls appears Eo be somewhaE of a far-slgh¡ed 

postuLa.Eion" Howevere as prevíously ouELlned it was víewed rnuch llke an 

experlmenEal parameter for testing purposeso 

"75" 

The EesE lnvoLved Ehe manipulation of Ehe normal rate from ,ggg Eo 

Thls would refX.ecb a retention of 25% of atrL data sEored durtng Ehe 

week i.n questlon" The 25% raEe is consisEent r,¡ith psychoLoglcaL empirf.caL 

daEa on forgettíng curves postuLated by psychoLogisEs. 

The behavlour of Ehe mode!. ín response to these changes is Lisged 

ín åppendix F. The InpuE Subsystem r¿as unaffected i.argeLy by the change; 

onLy Ehe stimulus dispLay exhiblLed an increase in ráenergyir unlEs communi- 

caLed. The reason agaín being a higher level. of overt search centered 

around a'ppf,oxo 6o The rnodeLo in sumu behaved very much Li.ke the sEandard 

modeL, buE onl.y at a somer,¡haE hÍgher levei., The increase in al.!. leve!.s 

and sËates of the system was mosE evídent ln Ehe iniEial purchase behaviour 

whlch occurred afEer Ehe firsE week. 

The behaviour of Ehe model in response Eo Ehe cha.nge is indlcaEive 

of heighEened sensttivíty on tshe parE of Ehe consumer, and an accentuagion 

in behavíour paEEerns exhibLted. Thi.s l¿outr d suggesË EhaE the aEtriEion 

raEes are a crïtical factor but noE a crucial facÈor ín the operaEionaliza- 

tion of Ëhe modeL. once more empiricai. da.Ea is avaílabl.eu Èo estabLish 

some a'pproxÍmaEe or sEandard raEe of aEtriElonu a, value of be¡v¡een "75 Lo 

i.'00 r¡ouLd appear to l¡e satisfacEorv" 

too

The tr.asc tesE invol-ved Ehe setEíng of Ehe Ehreshold for purchase 

(X). Under the condítions esEabllshed in Ehe standard modeL. the threshotrd 

rva.s set at 950 uniEs of irinEernal energy". Thls EesL involved doubl-ing Ehe 

LeveL Eo L900 uniEs. .A.s vras previously postulaEed, a threshold 1eve3. may 

exisE that v¡il1. either cause or prevenE purchase behaviourn 

The behaviour of the model ln response Eo Ehe raised Ehreshold LeveL 

is Eabulated and graphicaLLy depicEed in .A^ppendix G. 

The InpuË SubsysEem was again trargely unaffecEed exceptlng a slight 

íncrease in e;energyr; units communicated Ëhrough the stimuLus dispLay. ûverË 

search again being the key facEor deEermíni.ng the LeveL of stlmutr í commun!.- 

ca,ted o 

Ì"lotive leveT.s a.nd attíEude încreased simllarilyE as in previous 

sírnulaEionse as did intenEion to purchasen l{oweveru lntentåon to purchase 

sEabtl.åøed êe approximacely 960 units of internaL ßenergyîre 1.ê", L0 unlEs 

over the previously set threshold. IIo greaEer Leve1 of intention to purch- 

ase could be fostered r+ithout a trial purchase consu¡nma.tedu or an i.ncrease 

in stimulii presented on the part of Ehe firm" .4s suchu Ehe sysËem stabil- 

ized ax a high level with no purchase occurring. In essencee Ehe sysEem is 

in a. very unsEabLe posÍ.Eion ¡¿iEh a high preponderance of lnEentionu buE too 

htrgh a Ehreshold for purchase Eo occurø 

The threshold concept may be an accepËable criËerion for purchase 

buE lE l^rouLd seem !.ogica.l to conclude Ehet Ehe threshold could flucEuate 

somewhaE; perhaps esEabl-íshing a. particular functional relaEionshíp r+i.th 

tÍme. In such an insÊa.nce, Ehe threshoLd mighE be Lois for an intEiat- 

purchase, raised Ehereaf Eer Eo a hi.gher and higher Level- unLí1 inEenEi.on 

couLd not reach that parElcular 1eveL" This woul.d be anaLogous Ëo Ehe 

cyclica.L behaviour of the consumer posEulated such tha.E an iniEial EriaL ls 

t6t

mâdee a habiE i.s formed, rouEi.nizaEion occursu and the consumer Ehen aga.ån 

Er!.es to compl.f.ca.Èe hls purchase deci.ston. 

The probLem, hohoever, f s r,rheEher or not Ehe fluctuaElon occurs !.n 

Ëhe threshoLd establ.ished or Lhe fLuctuatlon ls !n Ehe saEisfacEíon 

achievabLee or boEh. 

Ït ma.y Ehen be concl.uded from Èhe foresoing ouEcomes Ehat Ehe simu- 

lation modeLe as presenEed and defined in lLs f.nEegrated stateu provides 

some confidence and credence ln Ehe mode!. and the theorv fron whlch 1E r¡as 

exEracEedu 

16B

B, A TheoreElcal Tesr of, Ehe ModeL 

A Eheoretica} EesE of Êhe modetr invoLvese essenti.âllye a cross bec- 

ween two valf.datlon criteria - Ehat of Face and Dyna,mfc Val.f.daEion. 

The sf.muLation model. presenÈed 1n Ehis paper represents a e6f!.rsE cutír 

at the topi.c or raEher one of Ehe preLlminary degrees Eorlard eventual val}- 

daElon of a consumer behavlour modeLu The mode!.ss objecElve noE beÍng Eo 

estabLlsh uS.tlmaEe va.l.idlÈy Lends credence to Ehe use of face valldity, 

since 1tss advanEa.ges are unique prf.mariLy Eo Èhe earl.y stages of modeL build- 

i.ng. Dynarnl.c valldiEye on the other handu ïs concerned wïEh Ehe abiLl.Ey of 

the model- Eo repX. lcate processes whtch are che.nged over tlme, 'Ihts is a 

vaX. ldatlon crl.Eeri.a tùich becomes more meaningfuX. durlng Ehe Later sÊages 

of vaLldatlon" As such, a, EheoretLcal exampl,e r+ith dynamic properti.es 

provÍ.des an excellent sÈandard agalnsE which these Ewo críEerf.a can be 

matched" 

x.69 

An emplrica} EesE, usf,ng reaL worLd f.nput datau r¿ouLd be most diffl- 

cult for reasons polnEed out previously by perry (1.00S¡" as well. as Ehe 

facE EhaE no da.Ea couLd be accuraEely and a.dequa.tel.y maEched Eo thís modeL 

r*iEhout primary research investlgaElons, As FarLey & Rlng (1970) poinEed 

ouE in Èhef.r emptricatr" test of Ehe Ho¡Eard & Sheth modele even the Large 

banks of data avall.able Eo Èhem Ehrough Howard and Shethes (L969) prevtrous 

fieLd \ùorke was not fing-graÍ.ned enough for concreEe valldatíon purposes@ 

The theoretlcaL examp!.e chosen for the Eest !s a generaLLy accepEed 

study by GosEa þfickwÍ.Ez (íncluded in KotX.eru F, tgFq&-e!ir-r, ¡4eEege_¡leqE; 

,S¡qly-sl-s, El3nl3ng and Cof_rtrc1.¡ Prenttce t{aI1. e L967) ana.nyzlng the eLastic- 

Íty of dífferenÈ markeEi.ng (instrurnenEs) mlx ei.emenÈs at dífferenÈ stages 

in the producE life cycle" MickwiEz (L967) proposes thaE Ëhe compeEitive

f.nsErumenÈs aree product qualiEy, advertlsÍng, príceu serv,åce and quasÍ- 

quaLi'Eye and Ehat Ehetrr effectf.veness wltL vary according Eo the sgage aE 

i,¡hlch Ehe product !s, wiEhln iEs l.lfe cycle. 

Mlckwltz i.denEif les 5 sEâges of Èhe producE lf.fe cycle; !.ntroduc- 

tlonr groertho maturlEyn saturaEi.on and decL!.neo and makes pos¡ulations 

concerntng Ehe utlli.zatlon of the markeElng lnstruments as foll.ows; 

In-trjrductignl Qual.lEy of Ehe product is Ehe most lmporÈant facEor 

in establ'lshlng the producË on the market" The remaining factors, 1n order 

of their importancee are a.dverEistng, pricee and servíce. 

G,!9-tr!,bt By EhÍ.s sta.ge MlckwíEz suggests thaE eartry adopgers ha\¡e 

purchased the producE and the flrm must focus on meeEf.ng buyer resf.sËance 

through adverËi.sing" The remai.ntng fa.cÈors ån order of imporEanceø a.re 

qualf.Ëyu prf.ce, and servÍ.ce" 

Matur-3'ly: Now Ehat Ehe prlce insensltlve buyers have Er1ed the 

producE new firms have enEered and compeEi.Elon is Eoughero based on prlce, 

The remaining factors being, advertlslng, quaLltyu and servi.ce" 

Saturatl-onc PrLce cotnpetltion has led Eo lower prlces and f lrms 

must dlfferentlaEe Eheir products through quasi-qualf.Ey. The remalning 

factors in order of lmportance are adverEisingu serviceu qual.iEy and pr1ce, 

Dsc-Li.ne: Nown l.lttle ls Eo be gained Ehrough dif ferenElaEíon, and 

Ehe flr¡n musE find new producc uses and adverEl.se Ehen" The remai.nfng 

f,acEsrs, ln order of their lmporEancee are servl.ce and quax.iEy" quasl- 

qua.l.iEy and prlce" 

The f lve varÍabLes of quaLlEyu price, df.sEf nctlvenessu servf.ce and 

avaiLabïLiEy ldentlfled as facEors nithin Ehe buyeros commerlcal. environ- 

menE for the simul.aEl,on model. are somer¿hat analogous co the Lnstrumengs 

e?CI

çrhich Mickwl Ez ref ers Eoe as f ol. l.olqs ¡ 

i'farleEing Insrqumgnt Sjmjrlation Vari.grbL_e 

Qua I f. ry Quai. i Ey 

Frice prlce 

Servlce Servlce 

Quasl-quaLfEy AvatrLabitr IËy 

.Adverti sing D! stlncËtveness 

The varlabLe relaElonshlps are petshaps not direcE equívaLengs bug 

sufff'clenEl.y anaLogous Eo províde a theoreElcal. examp1e for tes¡ing pur- 

posess IE may then be hypoEheslzed EhaE if Ehe slmul.aEion varíables are 

man!'pu3-ated accordlng to Mi.ckwltzss postulatlonsu and Ehe output behavlour 

is aE LeasE as good as under prevl.ous cond$.tl.onse greaËer cred.ence i¿1trtr be 

g$.ven Eo the slmux.aEion model u and þf ickwlEzE s posEutr ati.ons" 

The criLeria for deEerrnlning the efflcíency of Ëhe hypoEheslzed 

behavLour may be estabLlshed Ehrough Ehe behaviour mode prevlousl.y esÈa- 

blXshed by Ëhe integraEed model" the behavi.our previousLy evldent wa.s as 

fol l ovrs ; 

SaL es /+0 uni ts @ approx, .28/unl t = $l l " 20 

Expenditure Qual.lcy 8000/wk x 50 wks. = $400e000 

DåsEinctlveness 8000/wk x 50 wks* - g4001000 

Servf.ce 2000/!ük x 50 rsks" * $!00u000 

Avaltr-abi.l.lEy 6000/¡sk x 50 r¡ks = $300.000 

$r',o0;; 

The sirnulaEl.on modeL was then tesEed Eo examf.ne íEs comparable 

behavíour. .{ product Life cycLe $ras assumed for the product cover1ng 50 

weeksu each sEage coverång a L0-week peri.od" 

The resul.ts of Ehe sf.mul.aEl.on Ertats are numeråcaLLy tabu!.aEed and 

graphf.cal.l.y deplcEed Ln Appendix H - Tests lþL and tþ2" 

x 7r.

TesE lÉX. rvas designed spectf 1caL3.y to foLLoçr Mlckr,¡iEz? s postuLagions" 

The va}ues chosen for each varÍabLe accordång Eo Ehe sÊage of Ehe product 

Ll,fe cycl.e were as fol. l.o¡vs: 

Qgal i qY 

rntroducEi,on $11 ,000 

GrowEh 91000 

Maturlty 31000 

SaEura ti. on 3 1000 

Decl. ine 5 e000 

Expendi !ur_e/\ß " 

1"72 

Price Plç_!3gg!1:Sn"9_q Qe_rvjse- Mil_egr_rjly 

,35 

,30 

,20 

u25 

rZJ 

$ 91000 

t 1.,000 

9 e000 

9 r000 

1.1r000 

$3000 $2000 

3000 2000 

3000 2000 

5000 11000 

s000 5000 

The resuLts of Ehe stmul.aEå.on Erlaå.s qTere highLy unexpected" The 

ånpuË subsystem was onÏ.y abte Eo emåE approxÍmatel.y f.0e000 unÍ.Es of oÉenergyuø 

from eaeh of [Ês Lhree eomponenEs" The sLímu3.us dlsptray bega.n Eo devenop 

quÍ.tse adequately, but there r+as f.nsufff clent lnEernal stlmulI generated Eo 

raåse Ehe level of over8 search enough Eo increase Èhe externaL sglmuXi 

f!'owlng lnto Ehe sElmulus poo3." 41.1. vari.abLes began Eo estabtr ish Ëhemse!.ves 

well wlth IntenÈl.on to Purchase rtslng Eo a,pproxlmately 900. Hor,reveru as 

the external sËlmuli fell.u Ehe sysEem began Eo co}lapse and quickty alt 

variables dropped Eo zero" ThroughouE Ehe sl¡nuLaEion, stlmulus arnbi.gulty 

and percepËual bi.as rgere neglÍ.glble, resulLlng in LittLe or no sEimutrus 

distortlon Eo compound the probLems of Low X.evel.s of stfmuXi ex¡ernaLty 

generaEed. The core of Ehe probt em appeared to be exlstlng in an ånsuffic- 

lenÈ l.evel of fnpuE sEtmuli. exEerna3. l.y generaEedu 

The second EesE of Ehe Èheory r,ras aEcempEed, uËg.x. lzi.ng a hlgher 

tr'eveI. of lnpuË stimuLÍ' The values chosen for each varlab!.e a.ccordf.ns to 

Ehe stage of Ehe producc llfe cyc!.e rùere as fol. lo¡¿s¡

ïntroducÈion $12r000 

Groltth 101000 

Maturfty 41000 

SaËuratf.on 4e000 

Dec3. ine 6 "000 

E5gsqÊi_t_qLe1J¡k. 

at{"J15J qrjcs D_gsc.qqc_-t*ivsrr99e å"q_qlge,tvaJXeolrtjll' 

"35 

"30 

,20 

"25 

"25 

$10,000 

1 2 r000 

1.0r000 

10r000 

1 2 1000 

$81000 $ 61000 

8r000 6 e000 

8r000 

6 r000 

x.0 r000 15 r000 

10r000 9 r000 

The va1ues chosen for Ehe vari.ables 1n the InEroducElon sEase of 

the producË Llfe cycLe are appreciabl.y hl.gher [n Ehls EesE, the resutrts 

of Ehe såmulaLlon were sone!ühat better thls Eime lçi.Eh the flrsc Ínf.tia3. 

purchase occurrLng trn the EenEh week" General.l.y, Ehe resutts of Ehls 

s!.mu3.aEion resemb1e Êhe behaviour mode characterlstic of Ehe f.nEegraEed 

modeL prevLousty described" The onty major di.fference bef.ng a greater 

degree of flucEuaElon in some of the variabLes, The flucÈuaEion appears 

to have been Ehe resuf.t of Ehe sEepw!.se Lncreases and decreases ln stÍ.mul.å 

created ovêr Ehe product 3. lfe cycLe, A df.mlnuaeion ln sElmuLl. or unÍ.Es of, 

ñtenergytÉ communica.Eed i.s evldent from Ehe 21sE through Eo Ehe 4!.sE, week" 

The resul.t of w1'rich r¿as a hlgher Ehan normai. degree of, flucEuation. The 

fluctuaElon !n InËentíon to Purchase" howevere rüas agal.n insufflcâenE co 

break Lhe consumer ouE of the habit cycLe. 

17? 

the behaviour of Ehe slnu}aEion modeÍ. ín response Eo Ehe Ev¡o ËesEs 

admlnf.sEered, based on Mlckç¡Í.Èz0s Eheoryu would appeare on f lrsE impressionsu 

an unequf.vocable EhreaË to Ehe val!.dity of the model." The behavlour under 

Ëhe second Eesto when compared Eo EhaÈ of ghe crlEerf.a es€abÍ.lshed for 

vatl.datlon, is dlsappointång" 

SaL es 

.t 

t0 

1.0 

20 

x "35 = "35 

x "30 = 3,00 

x "20 = 2.00 

x ,25 = _5*00 

$1.0.35

Expe4_d!*tures 

QuaLíEy $ 360,000 

DisEl.ncti.veness 540r000 

Servf.ce 4¿+0 1000 

Ava i I ab i. L l Ey 4?O ,qpp 

lJä,ooo 

The resul.Es lndf.caEe a Lor,rer EotaL sal.es leveLe accompanied by a 

higher Level. of expendf,Eures, in fact quíte unsatisfacEory. 

The problem Ehen ls Eo determine whether or not the model is 

ínadequaEe represenEaEion of real.íEy or r¿?Tether Ehe Eheory posEulaEed 

Mickv¡ltz f.s vaLld lEself" IË may be suggesEed at Ehis point Ehee Ehe 

probl'ern perhaps is a deLlcaEe ba!.ance beE\^reen Ehe Er+o al.ternaEf.ves" 

Recentf.yu markeElng Eheory stresses Ehe gmporEance of Ehe rrpusþau 

vetrsus Ehe rtpul. l.ee campa{.gn durÍng Ehe earl_y sÈages of the producE tr lfe 

cyc}eu i'êee rvlth reference to pushlng or pulttng Ehe producË through Ehe 

channel" ThÍs is in dlrect conErasË Eo Ehe MÍckr¡iEz Eheory whl.ch suggests 

EhaE during Ehe early sEages of the producE lffe cycle quaLt¿y ls the key 

and mosË lrnportant facEor, Mickwltz0s theory vras deduced Ehrough theory 

and casual observaEíon and no evidence exísEs Eo supporE his propositlons" 

The simulaEi.on mode}u on tshe oEher handu presents some formidable 

prob1ems a.Lso. An approximatlon r,ras uEll lzed Eo equaEe Mi,ckvrlEzss quasi- 

quaLity markettrng ínstrument Eo Ehe m¡alLabf L1ty variabt e r¡lEhin the så.mula- 

tion modeL" In 1.íght of the markeEi.ng Eheory suggestsf.ng the imporgance of 

avail.abitr ltYo lt ís perhaps streEehlng the quasi-quaLlty facEor too far Èo 

lnclude avai3.a.b!Li.Ey and vf.ce versa" 

"Another 

Z7 /4 

ímportanE factor negl.ecEed was the fact thaE Ëhe s!.mu1.aEå,on 

model.u 1n determlnlng Ehe units of Érenergyú'or impu1ses genera.ted for a 

gíven doLl.ar expendiËureu establlshed funcEionaL rel.aÈfonships beEvreen the 

an 

by

va,rlables fn a non-Li.near fashiong i.'€.e an åncrease in dol. l-ar expêndiEure 

I{oul'd noE necessariLy resulE 1n a direct 3. i.nêar increase ln assoeiaEed 

uni.ts of rÉenetrgyrt" Thi.s has substanELal raml.f ícaElons for marketers who 

blånd3'y i'ncrease expendi.Eures r¿lthout thought to dtminíshtng reEurns Eo 

scaLe" The poinE beíng Ëhat Ehe optimal product cycle market!.ng mix is 

sinptry not JusE Ehe specifying of a rank ordering of Ehe elements invol.ved 

buE raEher a careful analysls of Ehe beha.v!.our of Ehe variabl.e over ELme 

and in relation Eo the charâ.cEerlsÈics of the consumer a.s r¿eI. 1 as Ehe other 

etr emenÈs withln Ehe marketing mix, 

175 

ÏE i's dífflcu}È Eo draw any precise concl.usi.ons from Ehe fonegof.ng 

and íE fs perhaps besE Eo genera!.Ly concl.ude LhaÈ the model. j.s no less or 

no more vaLld wiEh respect Êo degree Ehan previousS.y sEated" 

Thls chapter has deaÌ.E prf,marily wl.Eh Ehe tesEång and analysis of Ehe 

mode!. under experimental condiElons, The puroose bei.ng Eo Lend greager 

credence Eo Ehe modeL and establ.Í.sh some degree of vaLf.dity in its exÌ.stence" 

Some degree of validaË!on has been forEhcomlng buË no concl.usive evidence 

was establíshed for Ehe modeLes valldity. The nexE chapËer wiLtr accempe 

Eo draw some concluslons and ouE!.ine reconrmendations for fuÈure areas of 

COfìCQfflo

CI{AFTITII VTI" 

CONCLUSIOI{S AND RECOþMENDATTOISS 

This paper has been concerned wlEh Ehe design, devetropmenge opera- 

EionaLizaEion and símu1aËion of a modeL based on Ehe Howard and Shegh (feOO¡ 

IbSqgy oE Buy--eg "'lgbe-Vt-o".Bq" Thís sEudy r*as designed Eo provide a syseemåEie 

perspectivee or framework, for viewing consumer behaviour, EhaE ls, Eo vier,r 

it as a Erue sysEen i.ncorporating Levels, rates, feedback loops and delays" 

A's a ploneerf.ng sEudy ít represents a ú$firsË cuËís at the probLem of víer¡- 

ing buyer behavlour as a Erue system" No concLuslve valîdatlon of Che 

model- or iEs supportlng theory çras establ-isheduhowever some insi.ghts and 

concl-usions wïth rega.rd Èo Ehe model.o Ehe theoryu and consumer behavj.our 

are a.pparenÈ" 

Consumer behavlouru in Ehe ffrse instance, Ls a very non-mechanistíc 

Eype of behavíour; iÈ !.s highly variabl.e and híghly dependenE upon Ehe 

characterlstlcs of the consumer ln quesEion" CompuEerizaElon and simula- 

Elon of consumer behaviour f.s at Ëhe very best a very general. approxima- 

Eion of the processes lnvolved. A great deaL of reflnement is required 

before a concLusiveLy vat id model could be esEabLished" IE is suggesged 

LhaE modeLl.ing of consumer behavf.our ls both achievable and attaínabl.e buE 

requlres considerable painstaking and Laborlous research effor¡s to compiÍ.e 

and esEabLÍsh both input data seEs and a modeL which, through con€inu.ous 

reflnemencse can meeE exacEíng crtteria for validatfonn 

'Ihe Theory qf BgySE Behgv.iour (fO6S¡ is undoubredtr_y a híghty re- 

fíned and sophísEicaEed theory of sEaEf.c consumer behavÍour butras 1t 

presenËly exisEse possesses many and dlverse fragmenEa.ry lnEerconnectíons

etween processes and variabl-es, The l,nterrel"atì.onshtps posgu1aged in 

b'i'gures n and 3 represenÈ the dlagrama.tlc i.nEenpreEatton of Ehe Eheory. ês 

a fi-ow system it ls perhaps a reasonable modeL of the processes invoLved Í.n 

buyer behaviour. As a statåc modetr i.E a.ppears to gain f.Es greatest accept- 

a.bítr Ityn slnce liÉtLe data is avaíLabl,e Eo expLain or predícg future 

behavlour paEterns based on the model, 

The InpuE SubsysEeme for lnsÈance, !s a sEríking exampLe of a. r+e1 l. 

formutated sEatlc modeL of Ehe reatr-\.ror!.d processesu Hor,leveru Ehere are 

gaps ån the rel.ationshi.ps beEween the three caEegorles of s¡inuLli. and ln 

their muEual devel.opmenE of a sEimuLus dispLay" FurEhermoree no 1ndication 

ås given of Ëhe dlmensíons of the stimul.$. posEulated Eo exlsee nor of Eheir 

dynamíe properEies over tl.me, 

'Ihe ÞerceptuaÌ. SubsysEem encounEers simli.ar dlff icuLEies in the 

expl'anatlon of Eirne va.ryíng behaviouru The percepEuatr subsysEem agaín, is 

soundl'y concef.ved â.s a stati.c rnodel of Ehe processes invo¡.ved" Df ff3cutrties 

regarding Ehe EranslaËion of an external. stimulí inEo an inËernal sLfmuLus- 

as-coded presenÈs further probtrems" LiEEle evidence is given Eo esEabllsh 

reLati.onships existlng beËween stimul.us ambiguf,ty and perceptual bias and 

hot+ Ehey vary over time" Furthermore, !. ltt1e can be said concernf.ng Ehe 

magnf'Eude of Ehe effecE of ínËernaL eharacterlsËåcs of the consumer on Ehe 

percepEuaL subsysEem, other than thaÈ these forces do exist. 

Ïhe Lea.rning Subsystem is perhaps even more ambiguous 1n its inEer- 

reLatf.onshlps since iE represenEs Ehe greaEesE devf.aEf.on from rea1lty - 

Ehe hypotheElcat consEructs. ône Ls aE a tr.oss again to determine the effecE 

of the sElmulus-as-coded, communlcaEed from ¡¡iEhin Ehe índlvlduaL e upon 

consÈrucE formuLati.on and eventua1 purchase behaviour. There are also many 

gaps in the Ëheory concerning the Eirnlng, ma.gni.Eude, and devel.opmen¡ of 

L77

saCi sfacEton. 

L tö 

'Ihe drawbacksu dlfficu3.Eles, and probLems previousLy ou€Llned are 

lnnate not onLy Eo Ehe theoryu buE aXso to Ehe modeL so defined" The 

model has consequentl.y made certain postul.aElons and assumptions concern- 

ing the lnterrelaEf.onshlps and tlme-varying behaviour, ín order Eo establish 

operaEionaL i.zatíon. 

The model, from the Ëesttrng and analysfse appears to be an adequate 

represenca,tion of Ehe Processes ínvol.ved 1n consumer behaviour, and gener- 

al'try a concrete sEaEíc EranslaElon of Ehe Hortvard and SheËh (føOO¡ Theory of 

Buyer Behavlour" .A,E th!s poínÈ Ehe hypothesls coneerning Ehe validlty of 

Ehe modetr' must be EenEaClvely rejecEed" I{orøeveru some credence has been 

glven to Ehe exisEence of the modei. and Eo some degree Face Validation of 

Ehe model has oceurred" No concLuslons can be firmty establíshed CoûCerfi_ 

ing the val.idlty of Ehe model - onLy through furEher empi.ricaL evldenceu 

tesËing, and further refinemente can valldation be esEabl.lshed" 

This modeLu as prevlously ouEllned, r{as a çrfÍ.rst cut{s at Ehe probl.em 

of, the dynamics of consumer behaviour; some valf.datlon occurred and some 

EenEatl.ve concluslons may be drar,mu as foLlows: 

L" The Input Subsystem 1s highl.y sensiEíve Eo variab1e changes, 

and markeEers must be carefuL to avoid lncreaslng or decreaslng expendiEures 

r¡ith Ehe expecEatÍ.on of linear ouEput behavlour. 

2n The Sxogenous Variab1es SubsysEem is crucÍ.al for defíning Ehe 

characEerisElcs of Ehe cGnsumetr and i.s a hågh}y åmportanE set of facEors 

lnfLuencing purehase behavfour and habit formatlon" 

3" It ås essenEial. for Che marketer Eo esEabl.ísh a 

sEínull communicated to the consumer duríng Ehe early stages 

tr ífe cycle" 

hlgh Leve3. of 

of Ehe producE

RecommendaElons concerni.ng fuEure invesElgaEions and i.mprovennênEs 

of Ehe presenc modeX. focus on ErEo possíble direcElonsu breaking the modeX. 

dorrn agaln lnEo íEs el.ements and examinlng each eLemenE separaEeLy, and 

provldi.ng better lnput datâ. 

the modeL represenÊs a compLex system of re!.aEionshlps be¡ween 

variabtres both from a staÈic and dynamlc víewpolnEn Some of Èhe funcglonaL 

reLationships rnay be valld whlte oEhers noEu some crlElcat and some noË so 

cri.Efcal.. The sensïtivlty Eesting accompllshed thus far has been on1y 

cursory and deeper LnvesEi.gati.ons are required Eo estabtr i,sh ner+ and more 

meanlngful. rel.ationships beEween Ehe varlables postunaEed by Ehe theory" 

L79 

The anaLysf.s of the el.emenEs of the mode1 shouLd be done plecemeal., 

gatherlng both secondary and prf.mary data on Ehe re}ationshìps6 Ehen each 

funcELonaL reLaEionship defíning Ehe eS.ement should be statlsElcaLLy tsested 

by a Eechnique such as regresslon ana1ysis, The nexE sEep would be to 

again lnterLock Ehe elements graduallyo again simulaElng and EesÈing Eheir 

behavlour on a subsysten basis, The nodel. coul.d then be reestablished wiËh 

a neEwork of lnEer!.ocking rel.ationshlps, re-si.mulated and EesÈed Eo ouLLlne 

again areas of arnbiguity and concern@ The process Ehen begins afreshu 

breakíng the model. apart and re-examlni.ng its eLements. 

The provlsfon of better înput data ls Ehe second major area of 

concerne The modeL as defíned lncorporaEes many assumpËlons and postula- 

tions regarding lnpuE daca seEs" For instance, the number of unl.Es of 

esenetrgysí emitEed from a given expend!.Eure on quality was a.ssumed arbf.Erar- 

åLy ln Ehe absence of avaitrable daEau Although a1.1. atEempgs were made Eo 

esÈablish consístency within and beEvreen varlabl.es and paramegersr func- 

tiona} rel.aElonshipso lE ls lrnperaEive thaË empirical data be uË1trized Lo 

esEabl.lsh val.i.di.ty for Ehe modeL.

3. B0 

Areas of concern for fuEure research may be ouEl-ined as fo3.Lowsc 

1) The magntEude and dynam!c behavlour of Ehe ßçenergyus emlEEed by 

the co¡mnercial and social envLrorunent of Ehe buyeru Alsoo Ehel.r lnEer- 

reLaElonshlps and cumulaEl.ve effecE on a ÊotaL sEimui.us díspLay, 

2) The conversion coeffíc!.enEs perhaps exisEïng 1n neurologicaL 

facEu dicEaElng the transtation of f.nEernal. unlEs of çúenergytu to ÉFenergyøe 

units ¡rlthl.n the Input and PercepEuatr Subsystems" 

3) The rel.ationshl,ps betrãeen Stlnulus ^dmbtguiEy and Ferceptual 

Biasu both sEatf.ca3.ly and dynamlcalLy. 

4) The effecE of an s-a-c on Ëhe Learni,ng SubsysEem" and eventuaL 

purchase behavíour" 

5) Ihe behavi,our of Brand Comprehension, and Choåce Crlterla j.n d,e* 

Eenmfníng the cogniEf.ve sEaEe of Ehe buyer" 

6) The dynarnic reLatíonships beErqeen al.!. trearnlng construcEs. 

7, The magn!Eude and funcElonaL reLatlonshíps existing between 

purchase behavlour and saElsfacEion" 

8) The threshol.d concept of purchase and LEs funcEÍonal. reS.aEion- 

shlp to lnEention to purchase. 

9) the functlona1 reLatÍ,onshlp exlsEing bet$¡een the marketing mlx 

empÏ.oyed by the fl.rm and Ehe chara.cEeristf.cs of Ehe consumer over time 

and in response Eo changes !n Ehe product n.lfe cycl.e. 

10) The movemenE ouE of a purchase eyc3.e and lts impacE upon Ehe 

learning eonsttrucEs over Èl.me" 

To summarízeu Ehe purpose of bulldlng and operational.lzlng the 

presenE simulaËlon model was Ëo provÍde a systsemati.c frarnework for Ehe 

anal.ysis of the dynamlcs of buyer behavlour, and furEhernoreo Eo ga.in 

insighE $.nto Èhe valldi.ty and reLleblti.Ey of rh? ]b"srJ oJ Bgygr Behavigur 

(tgoç) "

'Ihese goaLs lsere basåcatrLy accompLtshed by Ehi.s stsudy" This does 

not connoEer howevere EhaE the modeL fi¡as proved to be a va3.1d lndicaEor 

of buyer behaviouru buE rather ChaE consumer behaviour may be concepguaL- 

åzed as a true system uEi!.Ízlng a sysEems Dynamlcs MeEhodox.ogyu and 

furthermore thaE such behavíour may be evaluaÈed through computer sf.muLa- 

tlon" To eventual.ly valldage this model, more sEudies and greaEer 

empirlcal evtdence r¡i.LL be required" 

the computer model has been utllized here as a Eool Eo probe into 

the depEhs of consumer behaviour" It hâ.s a.ided in the develoÞment of a 

dynamLc modeL of buyer behavÍ.our through whlch fuEure research and investl.* 

gaE!.on may be dj.rec€eda It has provided fruf tfu} lnsÍghEs XnEo the probS.ems 

of eonsumer behavLour modell.ing and slmul.aEfon, 

.Àga3.nu i.E musÈ be establlshed thaE this model. represenes a rvfj.rsE 

cutFr ag Ehe probl.em of Ehe dynamlcs of buyer behaviour" Face validåty for 

Ehe modeL has been esEab1ished buE no predllectíons have been made concern- 

i'ng iEs concluslve val.idity nor iEs applicability Eo use !n the day-co-day 

operaËlons of marketing managemenEo 

181

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An!Éysis, Fl.anning anj! ConEggl, FrenËi.ce-nait incl 

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MiEELestaedEu R" Díssonance ê,poroach to Repeat Furchasing Behaviouru 

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tr{yers, James H"u and l,lilt lam Iì. Reynol.ds, c.q4F!rme-r åS!3y|og and {arketing 

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NeweLl, Atran, Ju shaw and l{erberE simon. Ex.emenEs of a Theory of Human 

Frobl.em SoLvi,ng, Fsy-choLogtcaå Reg¡rE - ùlayu Xg5B. 

i!icosiao Francesco M, Consume¡: Decision Processes - l.farke€inE and .Adver- 

-E i. s igs r *p,L i c u. *LL 

F'ñ--ñ*ãEË lìãr î-ñ;;, g lär,ro o ¿ îlîf f % ñJ .* 

L966,

oeilrienu Tetrrence. sEages of consumer Decision NIakf.ng. 

{gqiSeg.ji¡s Bggge5g.þ. rlugusÉ i.97r. 

JournaL of 

Oshlkat'rar S. Can CognåEive Díssonance Theory Ðxpi.aín Consu¡ner Behavíour? 

Jou.rnal of þl.arketing. OcEoberu Lg6g. 

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Unpubl.ished DocEoral DisserEaEion" Colu:nbía. UniversiEv, L96B" 

Proshansky, I-T, and Bn Seidenberg" Basic SEudies. t¡r Sqgigl psy_glrg-lqgy, 

Holt Rinehart and !,flnsEon, 1,966. 

Fughu Alexander L" Dynamo Ii llssfg $e¡gel. The þl"I"T" Fress, Mass, InsE!.tuEe 

of Technol.ogyu Cambrldgeo lviass, Lg7O" 

FyatE, F, Graham. p¡:iqr_ily peqler+ç e+4 !þe lleila¡r4 lqg q,q!¡pehql4 

Goods, Cambrldge at Ehe UníversíËy press" L964"'- 

Robertso En B'¡ Du Iu Abrahams and Hu B, VtreíL" rl systems study 

Formulation in a vertÍcally InEegraEed -!'irm. ManagemenE 

Augusto 3-968" 

RoberLsono T. 

II. I" 

Schuchma.nu ,4." 

i.96 B 

" 

S, Consumer 

x.9 70 " 

Secordu F" F" and C" 

SheEh, Jagdish N. ,{ 

AugusE e 1967 " 

Âre there Lar,rs of Consumer 

LB4 

DurabL e 

of PoLlcy 

Sci. ence u 

_B_ghaviour, ScoEE Foresma.n 6r Compa.nyu Gi.envier+u 

Behaviour? _.1, Ary. Re_s_"- I{arch u 

l'/. Backman. Sqqial Pqyghglpgy" lulcGraw !tlt 3. e L96t+" 

Revleç¡ of Buyer ßehaviour, ManagemeÐts Sc I ence " 

shethu Jagdish N" Hor,¡ AduLEs Learn Brand Preference" J" .adv" 

.Apri L e 1968. 

SheEh, Jagdish l.l" and M" Venkatesa.n@ Risk Reduction Processes ln RepeEi- 

Elve Consumer Behavlour" Journal of l'4arkgEín6 Rçrsear_*r ÅugusE 1968" 

Res. 

l{alEers, charles and G" W" Paul." consumer Behavlour - An IncesraEed 

Frarner,¡ork. Ri.chard D. rrwlÇïããl'- Hom.r{oõã; Itî; -lö7fil- 

Wassonu C. R. Prgduct I'fa!çrgegegE - Ffo4uçE 

t'br4etípg StJrSEegy-" Chal.lenge Booksu 

Líf e ÇycJSq and Cgmpe_tStive 

S E" Cha,rf. es u I1L " 1.97L ,

APPEI\DIX A

l'ôPPls 

APPENDTX A 

A coÌll]lErg L_isr oF rHg yopEl 

The þnamics of Buyer Behavíour - 

¡l Simul.atíon of Ehe Holard & SheEh Model 

The ÏJrpuE Sgbsystem 

A QE,K = TABHL(QElrrlUAL,Kr0rl.0E3rLE3) 

r QEr - olo/0/L/3lhl7lt lB/B/B 

le QUÅ.L"K = I.IORMRN(BE3e.tB3) 

.q pt"K = TABHL(pETepRICE,KeOe,5r,05) 

r ÞEr æ 0lo/0/B/sl7/7 /6/3/z/3 

A FRICD"K = NOR¡,RN ("ZBe.OZ) 

A DE"K = TABHL(DETeDIS,KeOel0E3r3.E3) 

1 DEr e O/L/r/L/21416lB/elîO1L0 

rt Dïs.K 3 N0R¡{Ri\(8113e.183) 

A SE"K = T,,!BI{L(SETeSER"Ke0e10E3rtr E3) 

r spr = olt4ls/sls/s/5/s/5/616 

A SER..K = NORMRN(2E3r,583) 

A AE"K = TêBHL(AEToAV,Keoet0E3eLE3) 

T AEr = 0lz/q/5/6/B/BlB/e/ 10/10 

A AV"K = NORMRN(683e,2583) 

A SyMh,t.t( = (QE"K) (pE"K) (DE.K) (SE"K) (AB,K) 

A, quÁtrA.K = DLTNF3(QE,Kr5) 

A SERA"K = DLTNF3(S8.K91.4) 

A FEII"K = DLINF3(PE"Kr3) 

A DEÂ"K = DLINF3(DE"K,4) 

A AEA"K = DLINF3(AE"Kr3) 

A SrcM,K = (QUALA.K) (erA"N¡ (DEA.K) (SERpl,K) (AEA"K) 

A FAiol.K = NOR¡.íRN(SIctî.Ke,583) 

A R5F.K ã NORMRI{(SIGM.K,5E3) 

A SO.K æ NORI4RN(SIcM,Kut 0E3) 

A S5M,K = (F¿¡¿,K+REF"K.{¿.S0.K)/3 

A SM"K = (sy¡'[ul,x+sIGM"K+.SS]4.K)"tovfs"K 

1RÁ

T,h.e Percep-Egst Subsnscs¡ìr 

R OV'ISI"KL - (((n¿p.K+TJMP"K.Ë.,PERS"K)/3),1916"K),ILOGN(MOTIVE.K) 

L OV',rS.K - OVTS"J.É(Dr)(OVtSr.".ir-ovTsA.JK) 

NTVTS=0 

¡( ovTSA.KL = (OVISAW) (OVTS "K) 

C OVTSAN s "999 

R ATI.KL = (Sl"l.K'ISTA"K):r¡gçp1MûTIVE"t{) 

t sp"K d sF.J$.(DT) (ATr.JK-LOSS.JK) 

i{ SP = 240000 

R LOSS,KL = (Sp"t

Tþ-e ¡jeqftlne SgbsysEem 

R l\F"KL = (( (cui,t,l(+goct.I(+FERS"K+FIN"K+Scc"K) /5)-Å-STA,K)r'r(çgfü"*, 

eLCIciq (sAc.l{) 

L MoTIVE"K = MOIIVU.J*.(Or) (Nn".lK-ÐR"Ji() 

N MOIIVE = 25O 

1ì DR,KL = (l,fottvn"K) (DRi'¡) 

C ÐRi\ 

s "999 

R CD"KL ê MOTTVE.K?KSAT" K+LOGI{(SAC " K) 

L CC,K = CC"J#"(DT) (Cn.JK-CA"¡tr) 

R CA" KL = CC. K'åCAN 

C CAN = "999 

NCC=360 

R BL"KL = ((træ"KåcuLT,K+s0ct.I(.i$'PERs,K+,soc,K)/5) 

X :tSAÎ" K+LOGN (SAC,I() 

L BC.K = BC.J+'(DT) (SL.¡tr-SC.4,JK) 

R BCA, I(L s BC , K:IBCAN 

C BCAN a .999 

¡l BC = 370 

R Â.F.l(L = ( (CULT"K+S0CL"K+SOC.K+PHRS.K) /4):ISAT"K:r 

x (sc"r)+(cc"K)/z 

L AT"K á At"J+.(DT) (¿F..rK-¿A,.it

The Ejiogengqs_ VarågþI. es Sgbqy,qEçm 

A I¡æ,K = TABTIL(lt"Ptuec,Ke0eLu0e,l) 

T IMPT = "6/"7 / ,B/.31 ,5/.6/"5/ "7 /"8/.8/1 "0 

AFC"K=0 

A CULT,K É',IABr¡,(CULTTrDV.Ke0r1."0e,1.) 

T CULTT = L,O/ "91"251,2/,!5f "Ll "09/"O751"O51,A25lO 

.A DV"l( = ,!. 

A SOCL.K = TABHL(SCICLTrLU"KeOeL"0e,l) 

T SocLT É .6/ .7 / ,8/ ,91.41 .5/.6/ "7 /,8/"9lL,O 

.4 LU'K = .8 

A FERS"K Ê TABHL(FERSTeTÂ"KeOe1. n0e.L ) 

T FBRST = .L/"!l "2/,2/,3/"3/ "t+1.4/"51.7lL,0 

A TÀ,K = u9 

A SOC,K É ÎABHL(SOCTrFL"KeOe1"0e.1) 

'I SOCT = "31 .t+l "51 "5/ ,6 / ,7 / "4/ "6 / "8/ "911" "O 

À FL"K É ,9 

A TIþiÞ"K = TABHL(TIMPTeLH.KeOu¡.,0u.1) 

'11 TIMFT = "51,61"7 /"8/ "61,5/"3/ "[+1.6/"8/1,0 

å LI{"K = .9 

A FIN,K ã TABHL(FINTrfE"Ke0eLu0e"l) 

T FII.¡T a "L/,31"6/"5/,51"6f "7 /'BIL"O!.9/"8 

A ÎE"K = "8 

Tlg OuËpuE 9ubsysËen 

A P.K = ctIP(1e0eINT"Ke50000) 

NOTE¡ Specta! Cards 

PRINT SYI'ßfe SlcÞfe SSMg SMe 

PLOT SY}.{M=}{, Slc},f=ce SS}FS 

FRINT OVTS eSP9SIAeCONTMTBIA9 TSAC 

PLOT OVTS=O e S"AT=T 

FRINT MûTIVBeCCaBC eATeMtME, INTeSA'TeCOi\eP 

PLCIT I'lOTIVE=l.l¡ CC=Cg BC=Bg At=,êng CCN=N 

PLOT ïNT=Z 

FLÕT Sl{ = l/r 

PLOT gAC=X¡SP=STCCINTIFT 

PLÛT STA=ZgBTAS=BoP=F 

SPEC a7= "25 ILî,NGTH=50/FRTPER.=1 /BLtpSn=l 

RUN APPTE 

189

]LFPENDIX B

I/21/13 APPLE 

T I ME SYIVIV SlGi4 SSI{ SM OVTS SP STA CCNTM PIAS SAC I\JOTIVE CC BC 

IEI4E. ..,, II\IT ,, SÂT CCN .P 

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ÂT 

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T lr'rE sYvt/ 5IGf4 SSl.l SM CVTS 

t¿EvE INT SAT . CC\ _ . .P 

SP STÂ CONTM 

EIAS 

SAC MOT IVE 

cc BC 

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I IYE SY¡/P SIGM SSt.1 SI¿ CVTS SP STA CT]NTI'4 BIAS SAC MCTIVE CC 

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