Information search & evaluation

Nature of Consumers' information search , types of information sought by consumers, sources of consumer information, marketing strategy in the information search process, consumers evaluative criteria and its measurement, consumer decision rules, Marketing strategy in the evaluation process.

1. INFORMATION SEARCH & EVALUATION MRS. PUSPANJLAI BHANDARI

2. Information search and decision making : Consumers engage in both  internal and   external  information search.  Information Search is a stage in the Consumer Decision Process during which a consumer searches for internal or external information . Consumers undergo a brainstorming session during this phase of buying decision.

3. Internal search involves the consumer identifying alternatives from his or her memory.  For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness.  For example, few people will search the  Yellow Pages  for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered.

4. For high involvement products, consumers are more likely to use an  external  search .   Before buying a car, for example, the consumer may ask friends’ opinions, read reviews in  Consumer Reports , consult several web sites, and visit several dealerships.  Thus, firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e.g., through brochures, web sites, or news coverage.

5. During the information search, the options available to the consumer are identified or further clarified. An internal search refers to a consumer's memory or recollection of a product, oftentimes triggered or guided by personal experience . It is more actively practiced for low involvement products. An external search is conducted when a person who has no prior knowledge about a product seeks information from personal sources (e.g. word of mouth from friends/family) and/or public sources (e.g. online forums, consumer reports) or marketer dominated sources (e.g. sales persons, advertising ). It is more practiced for high involvement products.

6. Passive Search: It refers to consumer’s activity for short period involvement. They tend to involve themselves in a short activities such as watching videos, TV shows, turning on the pages of magazines and knowing new things, blogs, etc. But they further don’t make any discussion on the topic they recently encountered with. They are the real observers. That video is not shared, the article is not spoken about and that blog definitely does not get any more readers or subscribers as a result of this person.

7. Active Search: Customer’s involved in such type of information search activity are ration and real learners. They involve themselves for a long discussion and sharing time. When the passive consumer’s encounters in activities like reading a new current affairs in the magazines, videos in YouTube channels, articles in magazines, etc. then they tend to learn more. They will discuss with their friends, family, etc. They watch a talk on TED, and they immediately give the link to a couple friends via email.  

8. They may read an article, and follow this up by writing a blog post discussing it, looking into some of the subtleties and investigating the topic a little further. These kind of consumers are the kind that the content creators love . The consumers themselves take so much more from the content, understanding it on a better level and through their reflection on it, they are able to remember it much better and evaluate its immediate and potential long term impact on their job/industry/lives etc.

9. Sources of Consumer Information Five primary sources of information available to consumers are: Memory of past searches. personal experiences. 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.

10. Information Sources Impersonal Personal Commercial Advertising, Information Salesperson Non-Commercial General Purpose Media Social Others

11. Classification of Searchers Non-searchers Limited Information Searchers Extended Information searchers

12. Types of Information Sought by Consumers Consumer decisions require information about: Appropriate evaluative criteria Alternatives Available Alternative Characteristics

13. Evaluation Criteria Evaluation criteria are the various dimensions, features, or beliefs a consumer looks for in response to a specific problem. Evaluation criteria can differ in type, number, and importance. The type of evaluation criteria a consumer uses in a decision varies from tangible cost and performance factors such as style, taste, prestige, feelings generated and brand image.

14. One potential objective of both internal and external search is the determination of appropriate evaluative 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.

15. Fig: Evaluation Criterion What evaluation criteria are need? What solution exists? What is the performance of each solution on each evaluative criteria? Can a decision be made? YES NO Information Search terminates Information search continues

16. Fig : Alternatives Available (Brands, Products) Awareness Set ( alternatives the consumer is aware of) Unawareness Set (alternatives the consumer does not know about) Evoked Set /consideration set (alternatives given consideration) Inert Set (Back up alternatives) Inept Set (Avoided alternatives) Specific Alternative purchased Alternatives considered, but not purchased

17. Alternative Characteristics To choose among the brands in the evoked set, the evoked 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.

18. Marketing Strategy based on information search patterns ( Target Market Decision Making Patterns) Brand Position Habitual Decision Making (no search) Limited Decision Making (limited Search) Habitual Decision Making (Extensive Search) Brand in Evoked Set Maintenance Strategy Capture Strategy Preference Strategy Brand in not evoked Set Disrupt Strategy Intercept Strategy Acceptance Strategy

19. 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

20. 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

21. Maintenance Strategy If the brand is purchased habitually by the target market, the marketer’s strategy is to maintain that behaviour. This requires consistent attention to product quality, distribution, and a reinforcement advertising strategy.

22. 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.

23. 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.

24. 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

25. Strategies (not 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

26. 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 . Eg ; Soy products are a good example of how disrupt strategies have been used to induce trial adoption.

27. Disrupt Strategy Long –Run Major brand improvement along with attention attracting advertising could shift consumer to more extensive decision making. Short -Run Attention-attracting advertising aimed specifically at breaking habitual decision making can be successful.

28. Disrupt Strategy Tactics include: Free samples, coupons, rebates, and tie-in sales. Striking package designs and point-of-purchase displays. Comparative advertising . Firms engage in a disrupt strategy to disturb the habitual decision process of competitor’s customers

29. 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.

30. 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.

31. Consumer Evaluative Criteria and its measurement During the evaluation of alternatives stage, the consumer evaluates all the products available on a scale of particular attributes . A consumer evaluates a brand on the basis of a number of choice criteria. These criteria are the standards and specifications the consumer uses in evaluating products and brands.

32. Evaluation Criteria are the various dimensions, features or benefits a consumer looks for in response to a specific problem. For eg ; when purchasing a food processor, one buyer may be most concerned about electric motor horsepower, blade revolutions per minute, and safety. Another shopper, however may use a different set of evaluative criteria , including colour &style of the processor, durability, warranty and versatility; still another shopper may use only price as a criteria.

33. No matter how many criteria are evaluated by the consumer, they are likely to differ in their importance, usually with one or two criteria being more important than others. Determinant attribute: important to the consumer and are also perceived to differ among the alternatives. Critical attribute: Some refer to a determinant attribute which meets both of these conditions for a consumer as a critical attribute.

34. For eg : while purchasing a running shoes; brand name, quality , price and comfort may all be important to a buyer, but comfort is likely to have determinant for most runners. Notice that in this case a subjective factor is considered to be most important. Thus, the marketer should be careful in assuming that a certain feature ranked as most important by consumers is actually determinant.

35. Measuring Evaluative Criteria In order for the marketer to develop a successful marketing mix, there must be an understanding of what criterion are used by consumers in making a purchase for this product, decision as well as how important each criterion is and how the consumer rates each brand on the various criteria. Each of these topics will be discussed below.

36. Determining which criteria are used by consumers Determining the importance of criteria used by consumers. Determining consumer’s evaluation of brand criteria performance Determining consumer’s cue usage

37. 1. Determining which criteria are used by consumers By directly asking consumers what factors they consider when they compare alternatives for purchase. Done in survey questionnaire format or focus meetings. Indirect approach “ someone else” Perpetual mapping ( consumer rating; similarities and dissimilarities)

38. 2. Determining the importance of criteria used by consumers: Once the evaluative criteria are known, a second measure that the marketer will find useful is the relative importance consumers place on these criteria. Rating Scale Method ( 6 point scale ranging from unimportant to important) Semantic Differential ( High Price and Low Price) Constant Sum Scale ( respondents typically allocate 100 points across the evaluative criteria according to their judgements of each one’s importance)

39. 3. Determining Consumers’ evaluations of Brand Criteria Performance: In this case, the marketer is seeking judgements by consumers relating to performance on various evaluative criteria by the brand.

40. 4. Determining Consumers’ Cue Usage Cues are used by consumers to measure or assess their evaluative criteria it is important to identify them. Eg : the evaluation criterion of bank security might be assessed by consumers on the basis of such cues as physical appearance of the building including design, location, furniture and colours. Thus , control of these cues could lead to an enhanced perception of security.

41. Consumer Decision Rules How consumers evaluate and choose products and services in different buying situations. Rules are used consciously or unconsciously. Information processing strategies of consumers are called decision rules. These help a person in the decision making process by providing guidelines for complex decisions . They can be used to evaluate various options and reduce the risk involved in the decision.

42. Three types of rules Non-compensatory rule: one in which the weaknesses of an alternative are not considered by its strengths (not designed to find “winners”) Compensatory rule: allowing for trade-offs among strengths and weaknesses (find “winners”) Decision heuristics: these are rules of thumb or short cuts that allow quick decision-making

43. 1. NON-COMPENSATORY RULES Conjunctive Decision Rule  Here consumers form a different, minimally acceptable cut off level for each attribute. If a particular brand does not meet the cut off level of any attribute that brand is removed from consideration . To select the  first satisfactory  brand conjunctive rule is particularly useful in reducing the choices, after that consumers may  apply other decision rule.

44. Disjunctive Rule  It is the opposite of conjunctive rule. In this the consumer decides a separate minimally acceptable performance level for each attribute. The brand is accepted if any of the attributes meets or exceeds the cut off level. Here  the consumer may accept the first  satisfactory   alternative as the  final choice or may apply another rule that may be more suitable

45. Lexicographic Decision Rule  The attributes are ranked according to perceived relevance or importance to the consumer. Then different alternatives are compared in terms of the single attribute that is believed to be most important. If one brand out of the group scores an acceptable score it will be selected, regardless of the score on any other attribute.

46. 2. CONPENSATORY DECISION RULE A consumer determines a brand or model options in terms of each relevant attribute and computes a weighted or summated score for each brand. The assumption is that consumer will select the brand that scores the highest among the alternatives evaluated. It allows a positive evaluation of a brand on one attribute to balance out the negative evaluation on some other attribute.

47. Marketing Strategy in the evaluation process: Marketers, must understand the evaluative criteria consumers use relative to their products and develop products that excel on those features. All aspects of the marketing communication mix must then communicate this excellence. Marketers must also recognise and react to the ability of individuals to judge evaluative criteria, as well as their tendency to use surrogate indicators.

48. Blind Test: is one in which the consumer is not aware of the product’s brand name. Such tests enable the marketer to evaluate the functional characteristics of the product and to determine if an advantage over a particular competitor has been obtained without using halo effect of the brand name or firm’s reputation. Surrogate indicators: An attribute used to stand for or indicate another attribute is known as a surrogate indicators.it is based on consumer’s belief that certain variables don not go together- such as lightweight and strong; rich taste and low calories; and high fiber and high protein. Eg : Wine and imported beers.

49. Points of differentiation: it speaks about the need for marketers to come above the similar attributes i.e. introducing the critical point of differentiation on which the brand is positioned. Advertising themes that emphasize specific usage occasions for which the brand is particularly appropriate can be effective, that draws attention on which the firm’s brand excels.