1. Chapter Four:
Information Search
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2. Information search
An important stage of consumer decision making
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3. Chapter 4: Information search
1. Nature of information search
2. Key types and sources of information
3. Difference between evoked, inept and inert sets of
brands
4. Why consumers engage in information search?
5. Internet as an information source
6. Factors that affect the amount of external
information search
7. Marketing strategies based on different patterns of
search behavior
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4. 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 External Search
Search of long-term memory to If a resolution is not reached
determine if a satisfactory through internal search, then
solution is known. the search process is
focused on relevant external
information.
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5. Information search
Ongoing search or exploratory research
• Search for information conducted to acquire
information for later use
• Because the process itself is pleasurable
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6. 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
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7. Types of Information Sought
Evaluative Criteria
One potential objective of both internal and external search is
the determination of appropriate evaluative criteria.
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.
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8. Information search in consumer decisions
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9. Suggesting evaluative criteria that
match the brand’s strengths
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10. Brands in initial awareness set
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11. Types of Information Sought
Appropriate Alternatives
The Awareness set is composed of three subcategories of
considerable importance to marketers:
1. The evoked set or consideration set contains brands or
products one will evaluate.
2. The inept set consists of brands found to be completely
unworthy of further consideration.
3. The inert set contains brands for which the consumer is
aware of but basically indifferent toward.
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12. Categories of decision alternatives
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13. Types of Information Sought
Alternative Characteristics
To choose among the brands in the evoked set, the
set
consumer compares them on the relevant evaluative
criteria.
This process requires the consumer to gather
information about each brand on each pertinent
evaluative criterion.
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14. Sources of Information
Five primary sources of information available to consumers:
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
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15. Awareness and evoked sets for various
products
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16. Information sources
Impersonal Personal
advertising,
Commercial salespeople
information
Non- general purpose
social others
commercial media
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17. Information sources for a purchase
decision
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18. Sources of information for services
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19. Sources of Information
Information Search on the Internet
The Internet influences search.
Provides increased speed and
efficiency to vast information.
More efficient search and
better decisions can result.
However, information overload
can also occur.
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20. Sources of Information
Information Search on the Internet
Estimated Number of Internet Users by 2007
Central/South
Region of the World
America
Asia Pacific
Western Europe
North America
0 100 200 300 400 500 600
Estimated Number of Users
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21. 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
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22. 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 84
Do an Internet search to answer a specific question 80
Research a product/service before buying it 78
Check the weather 78
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.
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23. Sources of Information
The Nature of Search Using Online Search Engines
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24. Sources of Information
Information Search on the Internet
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 bots or shopping bots, which are
bots
software “robots” that do the shopping/searching for
users.
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25. 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
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26. Sources of Information
Information Search on the Internet
Three major strategic issues marketers face regarding the
Internet’s role in information search and decision making:
making
1. How can they drive their information to consumers?
2. How can they drive consumers to their information?
3. How (if at all) can online selling be utilized or
integrated with existing channels (Chapter 17)?
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27. Sources of Information
Driving Consumers to a Firm’s Information
Offline Media such as print and TV.
Behavioral targeting involves tracking consumer click
patterns on a website and using that information to decide on
banner ad placement.
Search engine optimization
(SEO) - techniques to ensure
that a company's web pages
are accessible to search
engines and improving the
chances they are found.
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28. Applications in Consumer Behavior
The eBay ad shows
how firms use
traditional mass media
advertising to drive
website traffic.
These materials have been reproduced with the permission of eBay Inc.
COPYRIGHT ©EBAY INC. ALL RIGHTS RESERVED.
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29. Sources of Information
Driving Consumers to a Firm’s Information
Website design is also critical. Ongoing and repeat traffic
requires relevant and frequently updated content.
Consumers need ongoing
incentives to return such as:
•product-related news features
•user-related discussion forums
•updates on new products
Firms use various incentive techniques to
encourage repeat traffic
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30. Amount 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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31. 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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32. Classification of searchers
• Non-searchers
• Limited information searchers
• Extended information searchers
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33. Amount of external search for
appliances
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34. Information sources used to select
professional services
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35. Costs vs. benefits of external search
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36. Costs vs. Benefits of External Search
Market Characteristics
Product Characteristics
Consumer Characteristics
Situation Characteristics
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37. Costs vs. Benefits of External Search
Market Characteristics
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.
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38. 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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39. Newspaper ads increase readers’
awareness of sales and in-store
promotions
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40. 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
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41. 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
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42. Costs vs. Benefits of External Search
Consumer Characteristics
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!
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43. Costs vs. Benefits of External Search
Consumer Characteristics
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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44. 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
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45. Factors affecting external search (cont)
Influencing factor Increasing the factor
causes search to:
3. Consumer characteristics
a) Learning and experience Decrease
b) Shopping orientation Mixed
c) Social status Increase
d) Age, gender, household Mixed
lifecycle
e) Product involvement Mixed
f) Perceived risk Increase
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46. Costs vs. Benefits of External Search
Situation Characteristics
Situational variables can have a major impact on search
behavior including the following:
Temporal perspective
Task definition
Antecedent state
Physical surroundings
Social surroundings
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47. Factors affecting external search (cont)
Influencing factor Increasing the factor
causes search to:
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
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48. Marketing Strategies Base on Information
Search Patterns
Sound marketing strategies take into account the nature of
information search prior to purchase.
Two dimensions of search are particularly appropriate:
1. The type of decision influences the level of search, and
2. The nature of the evoked set influences the direction of
the search
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49. Marketing strategies based on
information-search patterns
Target market decision making pattern
Habitual decision Limited Habitual
making decision decision
Brand position (no search) making making
(limited search) (extensive
search)
Maintenance Capture Preference
Brand in strategy strategy strategy
evoked set
Disrupt strategy Intercept Acceptance
Brand in not
strategy strategy
evoked set
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50. 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
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51. Marketing Strategies Based on Information
Search Patterns
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, and a reinforcement advertising strategy.
Del Monte has large repeat
purchaser segments for their
canned vegetables which they
successfully maintain
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52. Marketing Strategies Based on Information
Search Patterns
Capture Strategy
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.
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53. Marketing Strategies Based on Information
Search Patterns
Capture Strategy
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.
Implementing a capture
strategy also requires
emphasis on maintaining
consistent product quality
and adequate distribution
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54. Marketing Strategies Based on Information
Search Patterns
Preference Strategy
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.
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55. Firms use a capture strategy when the
brand is within the market’s evoked set.
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56. 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
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57. Marketing Strategies Based on Information
Search Patterns
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.
Soy products are a good
example of how disrupt
strategies have been
used to induce trial
adoption.
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58. Marketing Strategies Based on Information
Search Patterns
Disrupt Strategy
Long-Run Short-Run
Major brand improvement Attention-attracting
along with attention- advertising aimed
attracting advertising specifically at breaking
could shift consumer to habitual decision making
more extensive decision can be successful.
making.
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59. Marketing Strategies Based on Information
Search Patterns
Disrupt Strategy
Tactics include:
Free samples, coupons, rebates, and tie-in sales.
Striking package designs and point-of-purchase displays.
Comparative advertising.
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60. Firms engage in a disrupt strategy to disturb the
habitual decision process of competitor’s
customers
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61. Marketing Strategies Based on Information
Search Patterns
Intercept Strategy
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.
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62. Marketing Strategies Based on Information
Search Patterns
Acceptance Strategy
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.
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63. 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?
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