To begin, let’s go over customer behavior. It refers to how people make decisions about how and when they buy and use products or services. By looking at the factors that influence these choices, like emotions, social influences, and personal preferences we are able to better understand how customers behave. Understanding customer behavior is important because it helps businesses predict how people will react to new products, services, or marketing campaigns before they are released. A customer behavior model is a tool that businesses use to study these actions. It shows how customers decide what to buy, what influences their decisions and how they interact with brands.
By understanding these patterns, businesses can improve their products, target marketing more effectively, and boost sales as a result. This knowledge helps companies build better customer relationships and increase profits over time by predicting which products your customers will enjoy.
Customer behavior models are a critical tool to implement into your business because they help you understand how their customers think and act. By studying these models, companies can make better decisions that improve their products, marketing, and sales efforts.
Example:
A well-known clothing retailer used customer behavior models to understand buying patterns. By using these insights, they improved their online store layout, introduced personalized product recommendations, and launched targeted email campaigns. This led to increased sales and higher customer satisfaction due to the tool
There is a variety of different customer behavior models, keep reading to learn about 10 different explanations to why customers act the way they do
The Psychoanalytic Theory of consumer behavior is based on Sigmund Freud’s theory that human decisions are driven by unconscious motivations. This theory suggests that people don’t always make logical choices when buying products but instead let emotions, deep-seated desires, and psychological needs influence their decisions. According to Freud, human behavior is shaped by three elements: the id (instincts and desires), the ego (rational thought), and the superego (morality and social expectations). When consumers make purchases, they are often influenced by these hidden psychological forces rather than just what they actually need.
When consumers make purchases, they may believe they are acting logically. However, their choices are often influenced by subconscious emotions.
Many brands use this theory to create emotional connections with customers rather than just promoting product features.
Companies can use emotional marketing to attract and retain customers.
By understanding unconscious motivations, businesses can alter their buying behavior and strengthen customer relationships.
This model explains why people buy expensive products to show status rather than just for their function. Economist Thorstein Veblen introduced the idea of conspicuous consumption, which means that customers are buying things to impress others. Many consumers prefer luxury brands because they make them feel successful and important rather than for the value of the product. In many cases where a cheaper option works just as well, people often choose the high-end version in order to show off for social reasons.
Luxury brands use this model to influence shoppers.
Companies can use this model to create demand and build a strong brand.
By making a product feel rare and desirable, businesses can attract customers who want to stand out from the rest.
The reasoned action theory explains that people often make decisions based on their intentions. It suggests that before taking action, individuals weigh the pros and cons, consider social influences, and think about the expected outcome before they make a purchase. This model was developed by Martin Fishbein and Icek Ajzen and states that a person’s behavior is shaped by their attitudes and what they believe others expect from them. If someone thinks an action will have a good result and that others will approve, they are more likely to make a purchase.
This model is widely used in marketing, especially in areas where social approval and perceived benefits influence choices of potential customers.
Companies can use this model to influence consumer behavior and increase sales.
By shaping customer attitudes and social influence, businesses can guide consumers toward making a purchase.
Maslow’s hierarchy of needs is a psychological model that explains human motivation. Developed by Abraham Maslow, it suggests that people have different levels of needs, and they must fulfill lower-level needs before focusing on higher ones. The model is shaped like a pyramid with five levels:
Maslow believed that people start by satisfying basic needs like food and shelter. Once those are met, they focus on safety, relationships, self-worth, and finally, personal growth. Businesses can use this model to understand what drives their customers and create products that meet these needs. Depending on your product, this will help you understand what needs to target as well.
Different businesses cater to different levels of Maslow’s hierarchy.
Understanding Maslow’s hierarchy helps businesses design better marketing and product strategies.
By aligning marketing and product development with human motivation, businesses can create strong emotional connections with their customers and improve brand loyalty.
The Hawkins Stern impulse buying theory explains why people make unplanned purchases. It suggests that impulse buying is influenced by different factors like store layouts, product placement, promotions, and emotional triggers. Unlike planned purchases, impulse buys happen suddenly, often due to curiosity, excitement, or urgency and usually can’t be planned. People may not intend to buy something, but when they see it at the right moment, they feel the urge to purchase. Hawkins Stern categorized impulse buying into four types.
Many businesses use this theory to increase sales by triggering impulse purchases.
Businesses can increase revenue by designing their stores, websites, and promotions to encourage impulse buying.
By creating the right shopping environment, businesses can encourage impulse buying and boost sales.
The Marshallian economic model explains how consumers make rational choices based on price, income, and product value. Developed by economist Alfred Marshall, it suggests that buyers seek to maximize satisfaction while staying within their budget. People compare products based on cost, necessity, and perceived value before making a decision whether or not to purchase.
This model follows basic economic principles.
It assumes that people are logical when making purchases, focusing on affordability and value.
Many industries rely on this model to attract customers.
Companies can use this model to set prices and position their products effectively.
By understanding how consumers evaluate price and value, businesses can develop pricing strategies that attract rational buyers and maximize profits.
The Pavlovian learning model explains how consumer behavior is shaped through repeated experiences and associations. It is based on the work of Ivan Pavlov, who demonstrated that people and animals can develop conditioned responses to external stimuli. In marketing, this means that consumers can be trained to associate a brand or product with certain emotions, experiences, or rewards. When exposed to the same trigger repeatedly, customers begin to develop habits and automatic responses toward a brand.
This model relies on three key elements:
Many brands use this model to create strong emotional connections with consumers.
Companies can use the Pavlovian learning model to influence consumer habits and create long-term brand loyalty.
By conditioning customers to associate a brand with positive experiences, businesses can influence buying behavior and encourage brand loyalty.
The Howard-Sheth model explains how consumers make complex purchasing decisions based on multiple influences. It focuses on information processing and how buyers filter, evaluate, and choose products. Unlike models that assume consumers always make rational choices, this model recognizes that buying decisions are shaped by personal experience, social factors, and external influences that may not seem reasonable.
The model divides consumer decision-making into three stages:
Extensive problem-solving – The consumer gathers information, compares options, and evaluates brands.
Limited problem-solving – The buyer narrows down choices and considers past experiences and preferences.
Habitual response behavior – The customer repeatedly buys a preferred brand without much thought.
This model applies to industries where buyers go through a decision-making process before purchasing.
Businesses can use the Howard-Sheth model to improve their marketing and customer retention strategies.
By understanding how consumers process information and make decisions, businesses can tailor their marketing strategies to guide them through each stage of the buying journey.
The Nicosia model explains how businesses and consumers interact before a purchase happens. It focuses on how marketing messages shape consumer attitudes, leading to decision-making and brand loyalty. This model suggests that buying decisions are not instant but develop over time through a continuous learning process. A consumer’s exposure to advertisements, brand reputation, and customer experience all influence future behavior.
The model is divided into four key stages.
This model applies to industries where brand perception and reputation impact buying decisions.
Companies can use this model to improve how they attract and retain customers.
By consistently improving customer communication, businesses can build stronger relationships and increase brand loyalty.
The Engel-Kollat-Blackwell model describes how consumers make decisions before buying a product. It explains how different factors, such as personal needs, advertisements, and external influences, affect consumer choice to make a purchase. The model shows that buying decisions are not made instantly but follow a structured process.
The model consists of five key stages.
This model applies to purchases that require research and evaluation.
Companies can use this model to guide consumers through the buying process.
By understanding how customers move through each stage, businesses can create strategies that improve sales, increase satisfaction, and build long-term brand loyalty. Make sure to get started today in order to set your business up for long term success for years to come.
With customer behavior models you are able to predict buying decisions and improve marketing, sales, and customer experience within your business. By applying the right model, companies can attract, engage, and retain customers more effectively. Aligning products and strategies with consumer psychology leads to better conversions, stronger brand loyalty, and long-term business growth.
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