BB Chapter Four : Information Search

Chapter Four:Information Search

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Information searchAn important stage of consumer decision making

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Chapter 4: Information search

1. Nature of information search2. Key types and sources of information3. Difference between evoked, inept and inert sets of

brands4. Why consumers engage in information search?5. Internet as an information source6. Factors that affect the amount of external

information search7. Marketing strategies based on different patterns of

search behavior

Nature of Information SearchNature of Information Search

Internal Search Internal Search

Search of long-term memory to determine if a satisfactory solution is known.

External Search External Search

If a resolution is not reached through internal search, then the search process is focused on relevant external information.

Consumers continually recognize problems and opportunities, so internal and external searches for information to solve theseproblems are ongoing processes.

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Information search

Ongoing search or exploratory research

• Search for information conducted to acquire information for later use

• Because the process itself is pleasurable

Types of Information SoughtTypes of Information Sought

Consumer decisions require information about:Consumer decisions require information about:

�� Appropriate evaluative criteriaAppropriate evaluative criteria

�� The existence of various alternativesThe existence of various alternatives

�� Performance of each alternative on each evaluative Performance of each alternative on each evaluative criterioncriterion

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One potential objective of both internal and external search is the determination of appropriate evaluative criteriaevaluative criteria.

�Government agencies and consumer organizations want consumers to use sound evaluative criteria.

�Marketers wanted consumer to use evaluative criteria that match their brand’s strengths.

�Both marketers and government agencies provide information designed to influence the evaluative criteria used.

Evaluative CriteriaEvaluative Criteria

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Information search in consumer decisions

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Suggesting evaluative criteria that match the brand’s strengths

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Brands in initial awareness set


1. The evoked setevoked set or consideration setconsideration set contains brands or products one will evaluate.

2. The inept setinept set consists of brands found to be completely unworthy of further consideration.

3. The inert setinert set contains brands for which the consumer is aware of but basically indifferent toward.

The Awareness setAwareness set is composed of three subcategories of considerable importance to marketers:

Appropriate AlternativesAppropriate Alternatives

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Categories of decision alternatives


To choose among the brands in the evoked setevoked set, the consumer compares them on the relevant evaluative criteria.

This process requires the consumer to gather information about each brand on each pertinent evaluative criterion.

Alternative CharacteristicsAlternative Characteristics

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Sources of InformationSources of Information

�� Memory of past searches, personal experiences, and lowMemory of past searches, personal experiences, and low--involvement learninginvolvement learning

�� Personal sources, such as friends, family, and others.Personal sources, such as friends, family, and others.

�� Independent sources, such as magazines, consumer Independent sources, such as magazines, consumer groups, and government agenciesgroups, and government agencies

�� Marketing sources, such as sales personnel, websites, and Marketing sources, such as sales personnel, websites, and advertisingadvertising

�� Experiential sources, such as inspection or product trialExperiential sources, such as inspection or product trial

Five primary sources of information available to consumers:Five primary sources of information available to consumers:

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Awareness and evoked sets for various products

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Information sources

Impersonal Personal

Commercialadvertising,information

salespeople

Non-commercial

general purpose media

social others

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Information sources for a purchase decision

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Sources of information for services


The Internet influences search.

Provides increased speed and efficiency to vast information.

More efficient search and better decisions can result.

However, information overloadinformation overloadcan also occur.

Information Search on the InternetInformation Search on the Internet

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Estimated Number of Internet Users by 2007

0 100 200 300 400 500 600

North America

Western Europe

Asia Pacific

Central/SouthAmerica

Reg

ion

of th

e W

orld

Estimated Number of Users

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Information search on the internet

• 2006 survey – 64.5% of Australian population online

• About 35-75% increase in online use• Internet is the most popular information

source for students (2003 survey)• Over half of e-shoppers are women, taking

over from males

• 73% of those with Internet at work use it every morning


Top 10 Activities of Adult Internet UsersTop 10 Activities of Adult Internet Users

EE--MailMail 91%91%

Use search engine to find informationUse search engine to find information 8484

Search for a map or driving directionsSearch for a map or driving directions 8484

Do an Internet search to answer a specific questionDo an Internet search to answer a specific question 8080

Research a product/service before buying itResearch a product/service before buying it 7878

Check the weather Check the weather 7878

Look for informtion on a habbyor interestLook for informtion on a habbyor interest 7777

Get travel informationGet travel information 7373

Get newsGet news 7272

Buy a ProductBuy a Product 6767

Source: Internet Activities (Washington, DC: Pew Internet & American Life Project, May 18, 2005.

Number represents percent who have ever engaged in the activity

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The Nature of Search Using Online Search EnginesThe Nature of Search Using Online Search Engines

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There are numerous shopping services on the Internet that can:

�search out the lowest prices for specific items

�search out online retailers of specific merchandise

�suggest specific brands based on your prior purchases and pre-specified criteria

These services use botsbots or shopping botsshopping bots, which are software “robots” that do the shopping/searching for users.

Information Search on the Information Search on the InternetInternet

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Marketing strategy and information search on the internet

Companies need to ask:– Should we have a website?– What is the purpose of the site?

� Information only�Company and product/service

information�To actively attract customers�A shopping site


Three major strategic issues marketers face regarding the Three major strategic issues marketers face regarding the InternetInternet’’s role in information search and decision makings role in information search and decision making:


1.1. How can they drive their information to consumers?How can they drive their information to consumers?

2.2. How can they drive consumers to their information?How can they drive consumers to their information?

3.3. How (if at all) can online selling be utilized or How (if at all) can online selling be utilized or integrated with existing channels (Chapter 17)?integrated with existing channels (Chapter 17)?

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Search engine optimization Search engine optimization (SEO)(SEO) - techniques to ensure that a company's web pages are accessible to search engines and improving the chances they are found.

Offline MediaOffline Media such as print and TV.

Behavioral targeting Behavioral targeting involves tracking consumer click patterns on a website and using that information to decide on banner ad placement.

Driving Consumers to a FirmDriving Consumers to a Firm’’s Informations Information

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Applications in Consumer BehaviorApplications in Consumer Behavior

These materials have been reproduced with the permission of eBay Inc. COPYRIGHT ©EBAY INC. ALL RIGHTS RESERVED.

The eBay ad shows how firms use traditional mass media advertising to drive website traffic.

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Consumers need ongoing incentives to return such as:

•product-related news features

•user-related discussion forums

•updates on new products

Website designWebsite design is also critical. Ongoing and repeat traffic requires relevant and frequently updated content.

Driving Consumers to a FirmDriving Consumers to a Firm’’s Informations Information

Firms use various incentive techniques to Firms use various incentive techniques to encourage repeat trafficencourage repeat traffic

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Amount of External Information SearchAmount of External Information Search

Marketers are particularly interested in external search, as this provides them with direct access to consumers.

�Most purchases involves limited external search immediately prior to purchase.

�However, this does not mean a bad judgment on part of consumers since they are balancing the costs and benefits of search.

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Amount of external information search

• Measures used:– No. of stores visited– No. of alternatives considered– No. of personal sources used– Overall or combination measures

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Classification of searchers

• Non-searchers

• Limited information searchers

• Extended information searchers

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Amount of external search for appliances

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Information sources used to select professional services

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Costs vs. benefits of external search

Costs vs. Benefits of External SearchCosts vs. Benefits of External Search

�� Market CharacteristicsMarket Characteristics

�� Product CharacteristicsProduct Characteristics

�� Consumer CharacteristicsConsumer Characteristics

�� Situation CharacteristicsSituation Characteristics

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Market characteristics include the number of alternatives, price range, store distribution, and information availability.

�Consumer perceptions of the market characteristics, not the actual characteristics, influence shopping behavior.

�The greater the number of alternatives available to resolve a problem, the more external search there is likely to be.

Market CharacteristicsMarket Characteristics

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Factors affecting external search Influencing factor Increasing the factor causes

search to:

1. Market characteristics

a) No. of alternatives Increase

b) Price range Increase

c) Store distribution Increase

d) Information availability Increase

i) Advertising

ii) POP Displays

iii) Sales personnel

iv) Packaging

v) Experienced consumers

vi) Independent sources

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Newspaper ads increase readers’awareness of sales and in-store

promotions


Product differentiation is associated with greater external search.

Product CharacteristicsProduct Characteristics

Shopping for a physician can be be Shopping for a physician can be be unpleasant, and thus, seen as a unpleasant, and thus, seen as a negative productnegative product

And, positive products tend to engender greater search than negative products.

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Factors affecting external search (cont)

Influencing factor Increasing the factor causes search to:

2. Product characteristics

a) Price Increase

b) Differentiation Increase

c) Positive products Increase


A variety of consumer characteristics affect perceptions of search costs and benefits.

�Confidence in one’s knowledge of existing solutions is an important determinant.

�However, consumers often do not know what they think they know!

Consumer CharacteristicsConsumer Characteristics

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There are a variety of types of knowledge where a low level of calibration frequently occurs to the detriment of consumers and firms, including

� Memory of Facts

� Memory of Events

� Belief Polarization

� Belief Validity

� Personal Forecasts


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Consumer Perception of RiskConsumer Perception of Risk associated with unsatisfactory product performance increases information search.

� Perceived risk is high for products whose failure to perform as expected would result in a high

• Social cost• Financial cost• Time cost• Effort cost• Physical cost


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3. Consumer characteristics

a) Learning and experience Decrease

b) Shopping orientation Mixed

c) Social status Increase

d) Age, gender, householdlifecycle

Mixed

e) Product involvement Mixed

f) Perceived risk Increase


Situational variables can have a major impact on search behavior including the following:

� Temporal perspective

� Task definition

� Antecedent state

� Physical surroundings

� Social surroundings

Situation CharacteristicsSituation Characteristics

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4. Situational characteristics

a) Time availability Increase

b) Purchase for self Decrease

c) Pleasant surroundings Increase

d) Social surroundings Mixed

e) Physical / mental energy Decrease

Marketing Strategies Base on Information Marketing Strategies Base on Information Search PatternsSearch Patterns

1.1. The type of decision influences the level of search, andThe type of decision influences the level of search, and

2.2. The nature of the evoked set influences the direction of The nature of the evoked set influences the direction of the searchthe search

Sound marketing strategies take into account the nature of Sound marketing strategies take into account the nature of information search prior to purchase.information search prior to purchase.

Two dimensions of search are particularly appropriate:Two dimensions of search are particularly appropriate:

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Marketing strategies based on information-search patterns

Target market decision making pattern

Brand position

Habitual decision making

(no search)

Limited decision making

(limited search)

Habitual decision making

(extensive search)

Brand in evoked set

Maintenance strategy

Capture strategy

Preference strategy

Brand in not evoked set

Disrupt strategy Intercept strategy

Acceptance strategy

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Strategies (in evoked set)

• Maintenance strategy– Defend against disruptive tactics– Constant activity + interest

• Capture strategy– Constant supply + quality– Continue limited search

• Preference strategy– Search locations must be anticipated, e.g.

chemists– POP + sales assistance– Know where they search

Marketing Strategies Based on Information Marketing Strategies Based on Information Search PatternsSearch Patterns

If the brand is purchased habitually by the target market, the marketer’s strategy is to maintain that behavior

This requires consistent attention to product quality, distribution, and a reinforcement advertising strategy.

Maintenance StrategyMaintenance Strategy

Del Monte has large repeat Del Monte has large repeat purchaser segments for their purchaser segments for their canned vegetables which they canned vegetables which they successfully maintainsuccessfully maintain

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Limited decision making generally involves a few brands evaluated on only a few criteria.

�Brand is in evoked set.

�Search occurs mainly at the point-of-purchase or in readily available media.

�Objective is to capture as large a share as practical.

Capture StrategyCapture Strategy

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The marketer will want to supply information, often on price and availability, on their website, in local media through cooperative advertising, and at the point-of-purchase through displays and adequate shelf space.

Capture StrategyCapture Strategy

Implementing a capture Implementing a capture strategy also requires strategy also requires emphasis on maintaining emphasis on maintaining consistent product quality consistent product quality and adequate distribution and adequate distribution

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Extended decision making with the brand in the evoked set requires a preference strategy.

�A simple capture strategy not likely adequate.

�Instead, marketer needs to structure information so brand becomes preferred by target market.

Preference StrategyPreference Strategy

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Firms use a capture strategy when the brand is within the market’s evoked set.

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Strategies ( not in evoked set)

• Disrupt strategy– Attention-seeking ads– Free samples or bonus encouraging trial

• Intercept strategy– Must attract attention– POP display– Product improvements, etc.

• Acceptance strategy– Advertise but don’t ‘sell’ the brand– Encourage consumer to seek information


If the brand is not part of the evoked set and the target market engages in nominal decision making, the marketer’s first task is to disruptdisrupt the existing decision pattern.

Disrupt StrategyDisrupt Strategy

Soy products are a good Soy products are a good example of how disrupt example of how disrupt strategies have been strategies have been used to induce trial used to induce trial adoption.adoption.

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LongLong--RunRun

Major brand improvement along with attention-attracting advertising could shift consumer to more extensive decision making.

ShortShort--RunRun

Attention-attracting advertising aimed specifically at breaking habitual decision making can be successful.

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Tactics include:

�Free samples, coupons, rebates, and tie-in sales.

�Striking package designs and point-of-purchase displays.

�Comparative advertising.


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Firms engage in a disrupt strategy to disturb the habitual decision process of competitor’s

customers


If limited decision making and brand is not part of evoked set, objective will be to intercept the consumer during search.

�Emphasis will be on local media, point-of-purchase displays, shelf space, package design, etc.

�Coupons can also be effective.

Intercept StrategyIntercept Strategy

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Similar to preference strategy, but complicated by fact that target market is not seeking information about the brand.

�Beyond preference strategy, marketer must attract consumer attention or motivate brand learning.

�Incentives to try product, long-term advertising to enhance low-involvement learning and use of the Internet are useful for gaining acceptance.

Acceptance StrategyAcceptance Strategy

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Summary of topics in this chapter• What is the nature of information search?• Key types and sources of information?• Difference between evoked, inept and inert sets

of brands• Why consumers engage in information search?• How is the internet used as an information

source?• What factors affect the amount of external

information search?• How can marketing strategies be based on

different patterns of search behavior?

BB Chapter Four : Information Search

Business

Transcript of BB Chapter Four : Information Search