1. Chapter 15 Information Search

2. Information Search in Consumer Decisions
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
The McGraw-Hill Companies, Inc., 1998

3. Information Sources for a Purchase Decision
Internal information
External information
Actively acquired
Passively acquired
Low in-volvement learning
Personal experience
Past searches
Independent sources
Personal contacts
Marketer Info.
Experien-tial
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.

4. Categories of Decision Alternatives
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
The McGraw-Hill Companies, Inc., 1998

5. Perceived Costs and Benefits of Consumer Search Guide Search Effect
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
The McGraw-Hill Companies, Inc., 1998

6. Factors Affecting External Search
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
The McGraw-Hill Companies, Inc., 1998

7. Factors Affecting External Search
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
The McGraw-Hill Companies, Inc., 1998

8. Marketing Strategies Based on Information Search Patterns
Target Market Decision-Making Pattern
Nominal Limited Extended
Decision Decision Decision
Brand Making Making Making
Position (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
The McGraw-Hill Companies, Inc., 1998

9. Joe is considering the purchase of a new stereo system for his home
Joe is considering the purchase of a new stereo system for his home. He is really “into” music and is a student on a limited budget, so he knows this product will have to last a long time. How much information search is he likely to engage in:
mostly internal and no external
some internal and a little external
much internal and external
Not enough information is available to tell.

10. XYZ Company has done extensive marketing research to determine how many consumers actually consider buying their brand when faced with a purchase situation. The research indicates that most consumers gather a lot of information when purchasing this product and are aware that XYZ’s product is avaiable, but they do not actively consider it a viable option. XYZ should use which strategy:
disrupt strategy
capture strategy
intercept strategy
preference strategy
acceptance strategy