Information Search CHAPTER FIFTEEN Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Information Search in Consumer Decisions 15-1 What is the performance of each solution on each evaluative criterion? Can a decision be made? What evaluative criteria are needed? Information search terminates YES What solutions exist? Information search continues NO Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Categories of Decision Alternatives 15-2 All potential alternatives (brands, products) Awareness set Alternatives the consumer is aware of Unawareness set Alternatives the consumer does not know about Evoked set Alternatives given consideration Inert set Backup alternatives Inept set Avoided alternatives Specific alternative purchased Alternatives considered, but not purchased Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Awareness and Evoked Sets for Various Products 15-3 Number of brands Awareness Evoked Beer Mouth- Tooth- Deodor- Gasoline Fast Soft Ground Dish- wash paste ant food drinks coffee washing detergent Source: J. Roberts, “A Grounded Model of Consideration Set Size and Composition,” in Advances in Consumer Research XVI, ed. T. K. Srull (Provo, Utah: Association for Consumer Research, 1989), p.750.

Information Sources for a Purchase Decision 15-4 Information sources Internal information External information Actively acquired Passively acquired Low-involvement learning Personal experience Past searches Independent groups Personal contacts Marketer information Experiential Source: Adapted from H. Beales, M. B. Jages, S. C. Salop, R. Staelin, “Consumer Search and Public Policy” Journal of Consumer Research, June 1981, p. 12.

Prepurchase Information Search for Services after a Move 15-5 Source Personal Friends Professionals (lawyer, dentist, etc.) Real estate agents Total personal Marketing Advertising Yellow Pages Total marketing Physical search Total physical search Medical Legal Veterinary Percent of total sources used Source: J. B. Freiden and R. E. Goldsmith, “Prepurchase Information Seeking for Professional Services,” Journal of Services Marketing, Winter 1989, p. 49.

Percent of Purchasers Who Compare Brands or Models before Buying 15-6 Percent comparing models or brands The more expensive/important the purchase, the more likely the consumer is to compare models or brands. Source: Warranties Rule Consumer Follow-Up, (Washington D.C.: Federal Trade Commission, 1984, p. 26.

Perceived Costs and Benefits of Consumer Search Guide Search Effect 15-7 Do the expected benefits of external search exceed the expected costs? Benefits obtained Financial Psychological Physical Product YES Terminate search effort Costs of search Out-of-pocket expenses Psychological Time Activities missed NO Continue search effort Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Factors Affecting External Search 15-8 Influencing Factor Increasing the Influencing Factor Causes the Search to: I. Market characteristics A. Number of alternatives Increase B. Price range Increase C. Store concentration Increase D. Information availability Increase 1. Advertising 2. Point-of-purchase 3. Sales personnel 4. Packaging 5. Experienced consumers 6. Independent sources II. Product characteristics A. Price Increase B. Differentiation Increase C. Positive products Increase Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Factors Affecting External Search 15-8 (II) Influencing Factor Increasing the Influencing Factor Causes the Search to: III. Consumer characteristics A. Learning and experience Decrease B. Shopping orientation Mixed C. Social status Increase D. Age and household life cycle Mixed E. Product involvement Increase F. Perceived risk Increase IV. Situation characteristics A. Time availability Increase B. Purchase for self Decrease C. Pleasant surroundings Increase D. Social surroundings Mixed E. Physical/mental energy Increase Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Marketing Strategies Based on Information Search Patterns 15-9 Target Market Decision-Making Pattern Nominal Limited Extended Decision Decision Decision Making Making Making (no search) (limited search) (extensive search) Brand in Maintenance Capture Preference strategy evoked set strategy strategy Brand not Disrupt Intercept Acceptance strategy in evoked set strategy strategy Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.