Ch. 15: Information Search
What are the primary sources of information available to consumers?
The primary sources of information available to consumers are: 1. Memory of previously acquired information, 2. Personal sources such as friends and family; 3. Independent sources such as consumer groups, government agencies, and non-partisan organizations; 4. Marketing sources such as advertising, promotion, packaging, and sales personnel; and 5. Experimental sources such as direct product inspection or trial. Memory is generally searched first and the other sources are searched if memory does not produce a satisfactory solution. While there is significant individual and product class variation, it appears that personal sources are the most important immediately prior to a purchase
What factors have to be considered in the total cost of the information search? How might these factors be different for different consumers?
The total cost of a search includes direct costs such as transportation, parking, and babysitting, and indirect costs such as time-loss, fatigue, and psychological stress. Individuals have different perceptions of the direct and indirect costs of search, different values for time, and differing tolerances for the potential frustrations of information search.
What roles do the evoked set, inert set, and inept set play in a consumer's information search?
Those brands that a consumer is aware of (in his or her awareness set) Can be classified as belonging to either an evoked set, inert, or inept set. Consumers' evoked sets (or consideration sets) include brands that they would readily consume. Brands in their inert set are brands they are aware of but are indifferent toward and not likely to consume as long as brands in their evoked set are available. Brands in the sets are brands they are aware of, but dislike enough that they would not consume them. Consumers will focus their information search on brands in their evoked set. Markers of brands in a target consumers inert set have to work hard to get the consumer to process information that might affect the inclusion of the markers brand in the consumers evoked set. Consumers will rarely accept favorable information on brands classified as inept. The formation of these sets depends on the information each individual consumer is exposed to overtime, their experiences with the product category and brand, and their unique needs and situation.
How do product characteristics influence of consumers information search effort?
a. Price: the higher the price of an object, the greater the level of search. b. Product differentiation: the greater the product (difference in product benefits among brands) The greater the benefits of a search effort c. Positive/negative products: consumers generally enjoy shopping for positive products, who's acquisition results and positive reinforcement such as hobby items. Consumers do not like to shop for negative products, those whose primary benefit is negative reinforcement such as car repairs.
How do situational characteristics influence a consumer's information search effort?
a. Time availability: The more time available for the purchase, the greater the search. b. Purchase for self: Gift purchases generally evoke more search effort than purchases for self. c. Pleasant surroundings: Increase search within that store or mall, but may reduce total search. d. Social surroundings: May increase or decrease search depending on the nature of the social situation. e. Physical/mental energy: Increase search compared to a fatigued situation.
Explain how different market characteristics affect information search
1. Price range: The higher the price difference between brands, the greater financial benefit of a search effort. 2. Number of alternatives: the larger the number of alternative solutions (brands and products), The greater the search 3. Store concentration: the density of retail trade outlets affect search search the lower density increases the cost of visiting a number of retail outlets and, hence, reduces the level of pre-purchase information search. High storage and see lowers the cost in this increases the likelihood of a search effort 4. Information availability: the more information available, the greater the search, unless they're ready availability of information has already produce sufficient learning. Information availability is increased by: a. Advertising, b. Point of purchase displays, c. Website, d. Sales personnel, e. Package information, f. Other experienced consumers, and g. Independent sources
How do different consumer characteristics influence of consumers information search effort?
A). Learning and experience: A satisfying experience and repeat purchase of a particular brand of product has the effect of reducing prepurchase information search. B). Shopping orientation: Shopping is a part of everyone's lifestyle and individuals develop unique and consistent approaches to shopping for a particular type of product. C). Perceived risk: The greater the perceived risk in a particular purchase (whether financial or psychological), the greater the motivation to find a satisfactory choice and, hence, the greater pre-purchase search. D). Social status: Using occupation, education, and income as measures of status, information search has been found to be greater for those higher in status. E). Age and household life cycle: Age and stage of household life cycle have been found to be inversely related to information search. That is, younger consumers and those in early stages of the household life cycle exhibit greater pre-purchase information search than older consumers and those in later stages of the household life cycle.
What is behavioral targeting?
Behavioral targeting involves tracking consumer click patterns on the website and using that information to make decisions regarding banner ad placement
What are evaluative criteria and how do they relate to information search?
Evaluative criteria are those characteristics that are important to the consumer in the evaluation and choice of alternatives. Evaluative criteria guide information search by specifying what information should be sought in order to resolve a particular problem.
Preference Strategy
Extended decision making with the brand in the evoked set requires a preference strategy. Because extended decision making generally involves several brands, many attributes, and a number of information sources, a simple capture strategy may not be adequate. Instead, the marketer needs to structure an information campaign that will result in the brand being preferred by members of the target market. The first step is a strong position on those attributes important to the target market.ii This is discussed in considerable detail in Chapter 16. Next, information must be provided in all the appropriate sources. This may require extensive advertising to groups or influential online participants (e.g., bloggers) who will recommend it to others (e.g., druggists for over-the-counter drugs, veterinarians, and county agents for agricultural products). Independent groups should be encouraged to test the brand, and sales personnel should be provided detailed information on the brand's attributes. In addition, it may be wise to provide the sales personnel with extra motivation (e.g., extra commissions paid by the manufacturer) to recommend the product. Point-of-purchase displays and pamphlets should also be available. A well-designed Website is essential.
Capture Strategy
Limited decision making generally involves a few brands that are evaluated on only a few criteria, such as price or availability. Much of the information search occurs at the point-of-purchase or in readily available media prior to purchase. If the brand is one given this type of consideration by the target market, the marketer's objective is to capture as large a share of the purchases as practical. Because these consumers engage in limited search, the marketer needs to know where they search and what information they are looking for. In general, the marketer will want to supply information, often on price and availability, in its Website, mobile apps, in local media including efforts related to local mobile search, and at the point of purchase through displays and adequate shelf space. The marketer will also be concerned with maintaining consistent product quality and adequate distribution.
What is local Mobile search?
Local mobile search is defined as searches for information from a mobile device pertaining to the current (or future planned) Geographic location of a consumer
How do you non-searchers, Limited information searchers, and extended information searchers differ in their search for information?
Non-searchers tend to use little or no information prior to search, limited information searches are more comprehensive in their search and evaluation, and extended information searchers exhibit a high level of information search. The search effort most appropriate for any given individual depends on the perceived benefits and costs of different levels of search effort. For non-searchers the perceived benefits of a search are apparently less than the expected costs of that search. On the other hand, extended information searches have a much different perception of benefits and costs, as they exhibit considerable effort before feeling a purchase decision can be made
What is search Engine optimization?
Search engine optimization (SEO) involves techniques designed to ensure that a company's webpages "are assessable to search engines and focused in ways that help improve the chances they will be found." And example is googles ads (formerly AdWords) program, in which companies pay for "sponsored" Listings for specific search items
Acceptance Strategy
Acceptance strategy is similar to preference strategy. However, it is complicated by the fact that the target market is not seeking information about the brand. Therefore, in addition to the activities involved in the preference strategy described above, the marketer must attract the consumers' attention or otherwise motivate them to learn about the brand. This can be difficult, but various automakers over the years have gone as far as to pay customers to test drive their cars (Chrysler) or loan their cars to opinion leaders (Ford) in an effort to move their brand into consumer consideration sets by encouraging trial and or positive WOM. The Internet can play an important role in an acceptance strategy. Since keyword searches prior to a purchase tend to be generic, this opens up important opportunities for companies that are not in the evoked set to engage in search engine optimization strategies to give their brand exposure to the consumer during the decision process—hopefully, to the point of moving the brand into consumers' evoked sets. Obviously, a well-designed Website is a critical part of this strategy. Long-term advertising designed to enhance low-involvement learning is another useful technique for gaining acceptance. Extensive advertising with strong emphasis on attracting attention can also be effective. The primary objective of these two approaches is not to sell the brand; rather, the objective is to move the brand into the evoked set. Then, when a purchase situation arises, the consumer will seek additional information on this brand.
How does a consumers awareness set influence information search?
An awareness set includes those alternative solutions (alternative brands) that the consumer is aware of. The consumer generally searches for information on a subset of the brands in the awareness set (the evoked set)
What kind of information of sought in an external search for information?
An external search for information can include: (a) The appropriate evaluative criteria for the solution of the problem, (b) The existence of various alternative solutions, and (c) The performance of each alternative solution on each evaluative criterion.
Disrupt Strategy
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 disrupt the existing decision pattern. This is a difficult task since the consumer does not seek external information or even consider alternative brands before a purchase. Low-involvement learning over time could generate a positive product position for our brand, but this alone would be unlikely to shift behavior. In the long run, a major product improvement accompanied by attention-attracting advertising could shift the target market into a more extensive form of decision making. In the short run, attentionattracting advertising aimed specifically at breaking habitual decision making can be successful. This advertising might be targeted via online and social media as well with a strong but simple benefitsbased approach. Free samples, coupons, rebates, and tie-in sales are common approaches to disrupting nominal decision making. Thus, participation in local mobile coupon app programs could be helpful. Likewise, striking package designs and point-of-purchase displays may disrupt a habitual purchase sequence. Comparative advertising is also often used for this purpose.
Maintenance Strategy
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 (avoiding out-of-stock situations), and a reinforcement advertising strategy. In addition, the marketer must defend against the disruptive tactics of competitors. Thus, it needs to maintain product development and improvements and to counter short-term competitive strategies, such as coupons, point-of-purchase displays, or rebates. Morton salt and Del Monte canned vegetables have large repeat purchaser segments that they have successfully maintained. Budweiser, Marlboro, and Crest have large brand-loyal purchaser segments. They have successfully defended their market positions against assaults by major competitors in recent years. In contrast, tobacco company, Liggett & Myers, lost 80 percent of its market share when it failed to engage in maintenance advertising. Quality control problems caused Schlitz beer to lose substantial market share.
Intercept Strategy
If the target market engages in limited decision making and the brand is not part of the evoked set, the objective will be to intercept the consumer during the search for information on the brands in the evoked set or during general search for related information. Again, the emphasis will be on local media with cooperative advertising and at the point of purchase with displays, shelf space, package design, and so forth. Coupons can also be effective. The marketer will have to place considerable emphasis on attracting the consumers' attention because they will not be seeking information on the brand. The behavioral targeting strategy used by Snapple on a women's online community website is a great example of an online intercept strategy. As one ad executive stated: The big trick with this product was changing [the audience's perception] of Snapple-a-Day from an on-the-go, quirky product to something that has real health benefits for women and that has to be more of a planned purchase. In addition to the strategies mentioned above, low-involvement learning, product improvements, and free samples can be used to move the brand into the target market's evoked set.
What factors might influence the search effort of consumers who are essentially one stop shoppers? How do these factors differ in terms of how they influence limited information searchers and extended information searchers?
In terms of perceived benefits, one stock shoppers may not perceive much price or quality difference between alternative brands. In addition, they may attribute a higher cost in the search effort. That is, the human cost of each search effort may exceed the expected benefit, even when accurately perceived. Those who seek considerable information prior to purchase generally perceive the expected benefits of the search to be greater than the perceived costs of that search effort. Likewise those who engage in limited information search generally perceive the costs of extensive search to exceed the benefits of that search.
When does information search occur? What is the difference between internal and external information search?
Information search occurs in response to a recognized problem that is deemed important enough to resolve. Because an external information search is much easier, less time consuming, and less expensive than an external search, internal search generally occurs first. This involves bringing relevant information from what is retained in long-term memory into current memory. if no satisfactory solution can be obtained, then an external information search would follow if warranted by the nature of the problem and its importance. Information search also occurs on an ongoing basis for products and activities with which an individual is involved.
