Nicosia Model of Consumer Behavior | Pradeep Pandian | Bapuji B-Schools

Nicosia Model of Consumer Behavior | Pradeep Pandian | Bapuji B-Schools

Understanding the Nikosia Model of Consumer Behavior

Overview of the Nikosia Model

  • The Nikosia model focuses on the interrelationship between a firm's attributes and consumer attributes, aiding in decision-making processes including search, evaluation, and actual purchasing decisions.
  • It is considered a dynamic model because feedback from consumer actions (purchase and consumption experiences) is integrated back into the system to improve both firm and consumer attributes.

Fields of the Nikosia Model

Field One: Message Exposure

  • This field involves two subfields:
  • Subfield One pertains to the firm's attributes, which include company communications directed at target audiences.
  • Subfield Two relates to customer attributes, reflecting what consumers interpret from these communications.

Example: BMW Attributes

  • Firm's Attributes:
  • BMW is recognized for its German engineering quality, luxury comfort, and pricing.
  • Customer's Interpretation:
  • Consumers perceive European cars as expensive with superior engineering quality. This reflects aspirational values associated with luxury brands like BMW.

Field Two: Search and Evaluation

  • After exposure to messages, consumers develop attitudes towards products leading them to search for alternatives.
  • This search process cultivates motivation that drives decision-making regarding product purchases.

Field Three: Decision Making

  • In this stage, motivation culminates in a decision about whether or not to purchase a product.
  • It's important to note that choosing not to act (not buying) is also considered a purchase decision.

Field Four: Purchase Decision and Feedback

  • This final field encompasses the actual purchase decision which can be positive (leading to consumption) or negative (no purchase).
  • Positive outcomes result in consumer experiences that feed back into the model for future improvements. Negative outcomes also provide valuable feedback for firms.
Video description

Nicosia Model of Consumer Behaviour is a dynamic model that explains the decision-making process of a consumer while being exposed to the Company's attributes through its formal and subtle communications. It traces the effect of the same on the consumer while providing for a means for improvement for the company to finally make a sale. This model is helpful to understand the effects of feedback and considers both the purchase and no-buy situation of decision making.