EKB Model of Consumer Behaviour
"People don't buy for logical reasons. They buy for emotional reasons." - Zig Ziglar
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What is Engel Kollat Blackwell's Model?
The Engel Kollat Blackwell Model is a consumer behavior model of the cognitive process that helps to predict what customers are going to buy.
The model consists of three different classifications, namely:
Present Situation – this is where the customer is at the current moment,
Desired State – this is where the customer wants to be in the future and it will help them achieve their goals, and Pathway for Movement from one state to another – this includes various steps that may include various products or services which can help move towards their desired state.
History of EKB
The EKB model was created in 1968. Later this model went through several revisions, updates, and improvements to become the Engel, Blackwell, and Miniard Model (EBM) in the 1990s.
This model is also called the consumer decision model. The model is “structured around a seven-point decision process: need recognition followed by a search of information both internally and externally, the evaluation of alternatives, purchase, post-purchase reflection, and finally, divestment” (Solomon, Russell-Bennett, & Previte, 2012). A consumer identifies a need before proceeding to carry out a search based on the complexity of the issue at hand.
The pre-purchase evaluation of alternatives follows where one explores the available options based on beliefs, the availability of resources, and environmental factors among others. One then purchases a good or service based on its utility. After consumption, a consumer carries out post-consumption analysis, which in most cases is termed as feedback. The divestment stage is peripheral in the process, and it acknowledges that at one point the good or service will be disposed of.
4 Components of the Engel-Kollat-Blackwell model
The Engel Kollat Blackwell Model of Consumer Behavior was created to describe the increasing, fast-growing body of knowledge concerning consumer behavior. This model, like in other models, has gone through many revisions to improve its descriptive ability of the basic relationships between components and sub-components.
The Engel Kollat Blackwell Model of Consumer Behavior or consists of four distinct stages;
Information Input Stage: At this stage the consumer gets information from marketing and non-marketing sources, which also influence the problem recognition stage of the decision-making process. If the consumer still does not arrive to a specific decision, the search for external information will be activated in order to arrive to a choice or in some cases if the consumer experience dissonance because the selected alternative is less satisfactory than expected.
Information Processing Stage: This stage consists of the consumer’s exposure, attention, perception, acceptance, and retention of incoming information. The consumer must first be exposed to the message, allocate space for this information, interpret the stimuli, and retain the message by transferring the input to long-term memory.
Decision Process Stage: The central focus of the model is on five basic decision-process stages: Problem recognition, search for alternatives, alternate evaluation (during which beliefs may lead to the formation of attitudes, which in turn may result in a purchase intention) purchase, and outcomes. But it is not necessary for every consumer to go through all these stages; it depends on whether it is an extended or routine problem-solving behavior.
Variables Influencing the Decision Process: This stage consists of individual and environmental influences that affect all five stages of the decision process. Individual characteristics include motives, values, lifestyle, and personality; the social influences are culture, reference groups, and family. Situational influences, such as a consumer’s financial condition, also influence the decision process.
The Engel Kollat Blackwell Model of Consumer Behavior incorporates many items, which influence consumer decision-making such as values, lifestyle, personality, and culture. The model did not show what factors shape these items, and why different types of personality can produce different decision-making. How will we apply these values to cope with different personalities? Religion can explain some behavioral characteristics of the consumer, and this will lead to a better understanding of the model and will give a more comprehensive view of decision-making.
Consumer Decision-Making Process
It’s important to note that the consumer decision-making process has many different names, including but not limited to the buyer journey, buying cycle, buyer funnel, and consumer purchase decision process. But all the names essentially refer to the same thing: The journey a customer goes through when making a purchase.
So, here’s a breakdown of what happens in each step:
Need recognition (awareness): The first and most important stage of the buying process, because every sale begins when a customer becomes aware that they have a need for a product or service.
Search for information (research): During this stage, customers want to find out their options.
Evaluation of alternatives (consideration): This is the stage when a customer is comparing options to make the best choice.
Purchasing decision (conversion): During this stage, buying behavior turns into action – it’s time for the consumer to buy!
Post-purchase evaluation (re-purchase): After making a purchase, consumers consider whether it was worth it, whether they will recommend the product/service/brand to others, whether they would buy again, and what feedback they would give.
Now, to show you how these stages of the buying decision process play out in real life, here are consumer buying process examples that outline each of the steps and ways for your eCommerce brand to maximize results during each stage.
1. Need recognition (awareness)
The need recognition stage of the consumer decision making process starts when a consumer realizes a need. Needs come about because of two reasons:
Internal stimuli, normally physiological or emotional needs, such as hunger, thirst, sickness, sleepiness, sadness, jealousy, etc.
External stimuli, like an advertisement, the smell of yummy food, etc.
Even if the core cause is vanity or convenience, at the most basic level, almost all purchases are driven by real or perceived physiological or emotional needs. The causes for these stimuli can be social (wanting to look cool and well dressed) or functional (needing a better computer to do work more effectively), but they speak to the same basic drivers.
We buy groceries because without food in the house, we’ll be hungry. We buy new clothes because we’ll be cold, or we feel like everyone else has the latest handbag of the season, and we don’t want to be left out.
Example: Looking for a new camera
Think about it: Why does someone start looking for a new camera? Likely, their old camera isn’t working well anymore, or they simply want a nicer camera. Maybe they have a vacation coming up. Or maybe they want to give the camera as a present to their sister, who just had her first child.
How in the world is this related to a physiological need? Simple. Without a camera, they won’t be able to document special moments; therefore, they have an emotional desire to save these moments so that they are happy and not sad.
This emotional desire is the internal stimuli in this situation. Sure, a camera isn’t a life necessity keeping them from surviving, but it does solve a core emotional need.
What happens after someone identifies a need? They begin looking for a solution! Which brings us to the next step in the customer journey: searching for information.
2. Search for information (research)
As soon as a consumer recognizes a need and begins to search for an answer, you must be there to help! And where do consumers generally go to look for answers today? Google!
Example: Researching cameras
Now that the customer has realized a need to get a new camera, it’s time to find solutions to his problem. In this stage, it’s imperative that you are visible to the consumer searching for an answer.
Here are some things a consumer may be searching for:
Best cameras 2020
What is the best affordable camera?
Which cameras are top-rated?
The amount of information a customer needs to search for depends on how much he already knows about the solutions available, as well as the complexity of choices. For example, let’s say there’s someone looking for a camera as a gift, and he has no idea which type of camera he wants, or what features he needs.
He will need more information than someone who already knows exactly the type of camera he wants to buy, but just needs to find the right product and the right way to purchase it.
The amount of searching necessary is entirely dependent on the situation, and it can vary widely.
So how do customers search for information? By using internal information (their previous knowledge of a product or brand) as well as external information (information about a product or brand from friends or family, reviews, endorsements, press reviews, etc.).
The biggest way you can optimize your online business during the need recognition and awareness stage is by making sure you show up in search results — and that what the consumer sees makes an impression.
3. Evaluation of alternatives (consideration)
Now that the consumer has done research, it’s time to evaluate their choices and see if there are any promising alternatives. During this phase, shoppers are aware of your brand and have been brought to your site to consider whether to purchase from you or a competitor.
Consumers make purchase decisions based on which available options best match their needs, and to minimize the risk of investing poorly, they will make sure there are no better options for them.
Their evaluation is influenced by two major characteristics:
Objective: Features, functionality, price, ease of use
Subjective: Feelings about a brand (based on previous experience or input from past customers)
Example: Comparison shopping for a camera
If you’re a camera seller or brand, your goal in the consideration stage is to convince customers your camera is the best choice. And the most effective way to do that is to keep them on your site longer and find ways to earn their trust.
Consumers will first weigh the objective characteristics of your camera. Does it have all the features I want? Is it easy to use? Is it in my budget? Then, the subjective consideration will kick in: Do other people think it has all the features it should? Has anyone else who bought it expressed any difficulty with learning how to use it? Is it generally considered a good value for the money?
You only have one shot – so you need to make the most of it. Of course, it’s important that your site is informative, your prices are competitive, your value is clear, etc. But if you’re identical to a competitor in every single way, the word of previous customers is what will set you apart.
4. Purchasing decision (conversion)
Alright, now it’s money time. This is the stage when customers are ready to buy, have decided where and what they want to buy, and are ready to pull out their credit cards.
But wait! Not so fast. You can still lose a customer at this stage. This is the stage when the purchasing experience is key – it’s imperative to make it as easy as possible.
Example: Abandoning checkout for a camera
Let’s say your potential customer has gotten to the checkout stage of his purchase, and has second thoughts: What if the recipient wants a different camera? What if this camera is missing a key feature that the recipient would want? How difficult will it be for the recipient to return the camera if it doesn’t meet their needs?
This shopper will likely abandon his cart, and go back to the research stage. Maybe he’ll end up back on your site, but maybe he won’t. Your goal at this stage is to get him to complete the purchase now, so you don’t lose him forever.
Strategies for optimizing in the conversion stage
Many businesses choose to display reviews on checkout pages. This can be effective if done correctly. You need to focus on building trust, but don’t distract the customer from completing the purchase.
If you want to display user-generated content during checkout, use site reviews rather than customer photos or product reviews, and make sure they aren’t clickable. You want to focus on building trust and not distracting.
5. Post-purchase evaluation (re-purchase)
In this stage of the consumer purchase decision process, consumers reflect on their recent purchase. They think about how they feel about it, if it was a good investment, and most importantly, if they will return to the brand for future purchases and recommend the brand to friends and family.
In this stage, you need to have a post-purchase strategy to increase the likelihood that customers will engage with your brand again in the future. Return customers account for 1/3 of a store’s total income on average, so make sure you’re not missing out on this super valuable opportunity to increase your eCommerce conversion rate by turning shoppers into repeat buyers.
Example: Getting feedback and encouraging repeat purchases
In the camera example, the customer has already bought from your brand and they’re evaluating their purchase. This is usually when they will leave a review about their experience. This is also when they are at their most engaged with your brand, and they can be susceptible to strategies that encourage long-term engagement.
At this stage, you want to ensure that customers buy again, and you want to encourage them to leave UGC which helps other buyers in the future.
Strategies for optimizing in the conversion stage
While your customer might take it upon themselves to leave a review, they’re far more likely to do so if you request one. Asking customers for reviews about their experience in a post-purchase email not only gives you insight into your performance, but it also gives you valuable user-generated content to leverage to attract future customers.
It’s important to remember that customers have already given you something very valuable: their money! So you don’t want to ask for too much when requesting feedback. In order to encourage customers to write reviews, make it as easy as possible for customers to leave feedback:
You can also use this email to cross-sell other items. Data from over 2,000 stores shows that 27.5% of customers who see promoted products in post-purchase review request emails end up converting – and these customers are valuable.
After purchase, it’s also a good opportunity to promote your loyalty program. Customers in loyalty programs consistently provide a higher lifetime value than those who aren’t because the programs are designed to incentivize purchases.
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It's really good. Easy to understand, providing easy and different examples to understand the concept is great.
Well written. The words are simple and the examples you have given made me easily understand this concept. Finally, it was good