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Question

The major components of Nicosia Model of consumer decision-making are:

A. The consumer's attitude based on firm's message exposure 

B. Perceptual and learning constructs 

C. Feedback in the form of purchase experience 

D. Extensive problem solving by consumer 

E. Consumer's product search and evaluation  

Choose the correct answer from the options given below: 

The correct answer is

A, C and E only

Understanding the Nicosia Model of Consumer Decision Making

The Nicosia Model of consumer decision-making, developed by Francesco Nicosia in 1966, is one of the early comprehensive models that attempts to explain the complex process a consumer goes through when making a purchase decision. It views the consumer as a system with inputs and outputs, focusing on the interaction between the consumer and the marketing environment.

The model is structured into four major fields (or sub-areas), representing different stages and influences in the consumer decision journey. Understanding these fields helps in identifying the major components of the model.

Key Components (Fields) of the Nicosia Model

The Nicosia Model is typically broken down into the following interactive fields:

  • Field 1: From the Source of the Message to the Consumer's Attitude
    • This field deals with the flow from the firm's marketing message (stimulus) to the consumer's initial attitude towards the product or service. It involves the firm's attributes and the consumer's perceptual and evaluational processes that lead to the formation of an attitude.
  • Field 2: Search and Evaluation
    • This field represents the consumer's search for and evaluation of alternative products or brands that can satisfy their needs. This stage involves gathering information and comparing options based on various criteria.
  • Field 3: The Act of Purchase
    • This field is the decision itself – the actual purchase of the product or service. This is the outcome of the processes in the previous fields.
  • Field 4: Feedback
    • This field represents the feedback loop from the purchase experience. The consumer's experience with the purchased product influences their future attitudes and decision-making processes, potentially impacting Field 1 and Field 2 in future purchase cycles.

Analyzing the Given Statements

Let's evaluate each statement in the context of the Nicosia Model's major components:

  • Statement A: The consumer's attitude based on firm's message exposure
    • This statement directly relates to Field 1 of the Nicosia Model, where the firm's marketing messages influence the consumer's perception and attitude formation. This is a major component.
  • Statement B: Perceptual and learning constructs
    • While perception and learning are fundamental psychological processes that occur within Field 1 (attitude formation) and influence other fields, the statement "Perceptual and learning constructs" is not typically listed as a standalone *major component* or *field* title within the standard description of the Nicosia Model structure. They are underlying processes within the fields.
  • Statement C: Feedback in the form of purchase experience
    • This statement corresponds directly to Field 4 of the Nicosia Model, the feedback loop that influences future behaviour. This is a major component.
  • Statement D: Extensive problem solving by consumer
    • Extensive problem solving is a *type* or *level* of consumer decision-making process, distinct from limited problem solving or routine response behaviour. The Nicosia Model describes the *process* flow itself, which could potentially apply to different levels of complexity, but "Extensive problem solving" is not listed as a major structural component or field within the model.
  • Statement E: Consumer's product search and evaluation
    • This statement accurately describes the core activity of Field 2 of the Nicosia Model, where the consumer actively searches for and evaluates potential purchase options. This is a major component.

Identifying the Major Components

Based on the analysis, the statements that represent the major components or explicit fields of the Nicosia Model are A (related to Field 1), C (Field 4), and E (Field 2). Statements B and D describe underlying processes or types of behaviour rather than the primary structural components or fields of the model as typically presented.

Conclusion

The major components of the Nicosia Model of consumer decision-making among the given options are the consumer's attitude formation based on messages (related to Field 1), the consumer's product search and evaluation (Field 2), and the feedback from purchase experience (Field 4).

Therefore, the correct statements are A, C, and E.

Revision Table: Nicosia Model Key Aspects
Statement Relates to Nicosia Model? Explanation
A. Attitude from message exposure Yes Part of Field 1 (Attitude Formation).
B. Perceptual/learning constructs No (as a major component) Underlying processes within fields, not a named major component.
C. Feedback from purchase Yes Field 4 (Feedback).
D. Extensive problem solving No (as a major component) A type of decision-making process, not a structural field.
E. Product search and evaluation Yes Field 2 (Search and Evaluation).

Additional Information on Consumer Decision Models

The Nicosia Model is one of several comprehensive models developed in the 1960s and 1970s to map the consumer decision process. Other notable models include:

  • Howard-Sheth Model: Focuses on the psychological variables influencing consumer choice, including inputs (stimuli), perceptual and learning constructs, and outputs (purchase). It categorizes decisions based on the level of knowledge and experience (extensive problem solving, limited problem solving, routine response behaviour).
  • Engel-Kollat-Blackwell (EKB) Model: Provides a detailed flow chart of the consumer decision process, starting from need recognition, search, evaluation of alternatives, purchase, and post-purchase evaluation. It also incorporates influences from information processing, environmental factors, and individual differences.

These models highlight different aspects of the consumer decision process and provide frameworks for marketers to understand and influence consumer behaviour. The Nicosia Model is distinct in its focus on the interaction between the firm and the consumer and the explicit inclusion of a feedback loop from post-purchase experience.

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Important Questions from Decision Making

  1. Which of the following are necessary conditions for applying Simeon Denis Poisson distribution in the field of managerial decision making?

    A. Each occurrence of an event is independent of the occurrence of the other event

    B. The probability of an occurrence is the same for any two intervals of equal length

    C. Poisson distribution describes continuous occurrences over a specific time interval

    D. In each interval, occurrences can range from zero to infinity

    Choose the correct  answer from the options given below:

  2. Which of the following common difficulties are faced in making decisions and implementing?

    (A) Non-actionable information

    (B) Unsupporting environment

    (C) Easy acceptance by subordinates

    (D) Ineffective communication

    (E) Incorrect timing

    Choose the correct answer from the options given below

  3. Match List - I with List - II.

    List - I

    Decision Rule

    List - II

    Rationale for applying the decision Rule to Down App.

    (A)

     Conjunctive

    I)

    "I bought the Smartphone App with the highest over all railing".

    (B)

    Disjunctive

    (II)

    "I down loaded the Smartphone App that had the most downloads".

    (C)

    Affect Referred

    (III)

    "I selected the Smart Phone App that had no bad features".

    (D)

    Majority vote

    (IV)

    "I picked the Smart Phone App that excelled in at least one attribute ".

    Choose the correct answer from the options given below:

  4. What are the characteristics of programmed decisions ?
    A. Problems are unique and novel
    B. Solutions are based on rules and established procedures
    C. Made by top management only
    D. Problems are routine and repetitive
    E. Conditions in which they occur are highly certain
    Choose the most appropriate answer from the options given below :
  5. General statements that guide or channelize thinking in decision making are:
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