15 CHAPTER INFORMATION SEARCH

PART IV: CONSUMER DECISION PROCESS

Nature of Information Search Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes. Internal Search Search of long-term memory to determine if a satisfactory solution is known. External Search If a resolution is not reached through internal search, then the search process is focused on relevant external information.

Types of Information Sought Consumer decisions require information about: Appropriate evaluative criteria The existence of various alternatives Performance of each alternative on each evaluative criterion

Types of Information Sought Information Search

Types of Information Sought Appropriate Alternatives The Awareness set is composed of three subcategories of considerable importance to marketers: The evoked set or consideration set contains brands or products one will evaluate. The inept set consists of brands found to be completely unworthy of further consideration. The inert set contains brands for which the consumer is aware of but basically indifferent toward.

Types of Information Sought

Sources of Information Memory of past searches, personal experiences, and low-involvement learning Personal sources, such as friends, family, and others. Independent sources, such as magazines, consumer groups, and government agencies Marketing sources, such as sales personnel, websites, and advertising Experiential sources, such as inspection or product trial Five primary sources of information available to consumers:

Sources of Information

Sources of Information Information Search on the Internet

Sources of Information Top 10 Activities of Adult Internet Users E-Mail 91% Use search engine to find information 84 Search for a map or driving directions Do an Internet search to answer a specific question 80 Research a product/service before buying it 78 Check the weather Look for informtion on a habbyor interest 77 Get travel information 73 Get news 72 Buy a Product 67 Number represents percent who have ever engaged in the activity Source: Internet Activities (Washington, DC: Pew Internet & American Life Project, May 18, 2005.

Sources of Information The Nature of Search Using Online Search Engines

Amount of External Information Search Various measures of external information search: Number of stores visited Number of alternatives considered Number of personal sources used, and Overall or combination measures

Costs vs. Benefits of External Search Factor Affecting External Search: Part I Influencing Factor Increase in Factor Causes 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

Costs vs. Benefits of External Search Factor Affecting External Search: Part II Influencing Factor Increase in Factor Causes 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

Costs vs. Benefits of External Search Product Characteristics Product differentiation is associated with greater external search. And, positive products tend to engender greater search than negative products. Shopping for a physician can be be unpleasant, and thus, seen as a negative product

Costs vs. Benefits of External Search Consumer Characteristics Consumer 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

Marketing Strategies Based on Information Search Patterns