Information search and evaluation

Slides of Information search and evaluation

1. Information Search and Evaluation

2. Information Search Information collected by consumers is the basis for evaluation and choice behavior. It is important for marketers to know: Why consumers are searching for information Where will they look What information consumers seek How extensively they are willing to search

3. Types of Information Search Prepurchase search: Directed searches: consumer searches for information that will help solve a specific problem. Browsing: consumer is “just looking” with no immediate intent to buy. Accidental search: consumer is not actively looking for information, but takes note of information that is formally presented or inadvertently encountered. Post-purchase search: gathering information on choice made after the purchase. Ongoing search: continuous information gathering to stay “marketplace-current.”

4. Why Do Consumers Engage in External Information Search? High perceived value versus perceived cost of search Need to acquire information Ease of acquiring and using information Confidence in decision-making ability Locus of control (internals vs. externals) Actual or perceived risk Costs of external search Types of products sought Characteristics of the purchase decision

5. Nature of Consumer Information Consumer seek information about products and service during purchase decision making process. There are various types of information available to consumer and they try to gather the information through different sources. Consumer Search may be: Active Search Passive Search

6. Active Search Consumer initiate active search when they have a problem to solve. Information-gathering process by a consumer  interested  in purchasing something but lacking adequate information to make a purchase decision. The consumer will actively seek out magazine and newspaper articles and advertisements as well as expert opinions and other sources to collect the needed information, rather than just be exposed to the information by accident. The consumer who is engaged in an active search process is highly receptive to advertising messages .

7. Contd … It is directed towards solving the problem with appropriate product or service. They are mostly divided into two types: Internal Search: It happens in case of low involvement products purchased in routine response behavior. The customer relies on past information and experiences to develop brand preferences about products. External Search: It is related with past experience or individual experience or the customer. It’s source may be: Personal Source: Family Market Source: A d Public Source: TV Experiential Source: Hoarding

8. Internal and External Information Search Internal search: search based on existing information in memory. Information quantity, quality, relevance, currency Experts vs. novices External search: the search of information beyond one’s memory. Personal sources: friends, experts, salespeople Impersonal sources: advertising, in-store displays, trade reports, the Internet. Experts vs. novices

9. Passive Search Also known as ongoing search. It is independent of a problem or need. Consumers go through a variety of information to meet or satisfy their curiosity. Customer may look into the information of the product without the need for it.

10. Why Do Consumers Engage in External Information Search? High perceived value versus perceived cost of search Need to acquire information Ease of acquiring and using information Confidence in decision-making ability Locus of control (internals vs. externals) Actual or perceived risk Costs of external search Types of products sought Characteristics of the purchase decision

11. Costs of External Search Financial Time Decision delay (opportunity cost) Physical cost Psychological cost Information overload

12. Sources of Consumer Information Product Testing Organization: Test of product and services for quality and benefits. Media Sources: Consumer access a range of media sources offering consumer information. Eg : Magazine, television network, radio, internet Consumer Unions: Receive information when unions raise voice on important issues relating to product or services of the firm.

13. Contd … Government Agencies: Among the most reliable sources of information. Food and Quality, Ministry of commerce provide reliable and relevant information as and when required. Federal trade commission where formed to prevent fraud deception and unfair trade practices. Business Sources Product Labelling Customer Service Department Business Bueau Personal Contact

14. 1 4 - 14 Factors that Increase the Level of Pre-purchase Search Consumer Factors : Higher search when: Consumers are well-educated, have higher income levels and are younger Consumers are low in dogmatism and risk perception Level of involvement is high Shopping is seen as an enjoyable activity

15. 1 4 - 15 Evaluation of Alternatives – Types of Consumer Choice Processes Affective choices More holistic; an overall evaluation based on how one feels about a purchase Attribute-based choices Have pre-determined evaluative criteria May require both external and internal search Complicated decision rules may be used

16. 1 4 - 16 Nature of Evaluative Criteria Can be tangible or intangible Include surrogate indicators Attributes that are used as indicators of another attribute Are often ranked in order of importance

17. Copyright © 2006 Pearson Education Canada Inc. 1 4 - 17 Consumer Decision Rules Procedures used by consumers to facilitate brand or other consumption-related choices

18. Copyright © 2006 Pearson Education Canada Inc. 1 4 - 18 Consumer Decision Rules Compensatory Brands evaluated in terms of each relevant criteria and the best brand (or one with the highest score) is chosen Non - compensatory Positive evaluations do not compensate for negative evaluations

19. Copyright © 2006 Pearson Education Canada Inc. 1 4 - 19 Non-Compensatory Consumer Decision Rules Conjunctive Decision Rule Product attributes are identified a minimally acceptable cutoff point is established for each attribute b r ands that fall below the cutoff point on any one attribute are eliminated from further consideration. continued

20. Copyright © 2006 Pearson Education Canada Inc. 1 4 - 20 Non-Compensatory Consumer Decision Rules Disjunctive Decision Rule consumers identify product attributes establish a minimally acceptable cutoff point for each attribute accept the brand that meets or exceeds the cutoff for any one attribute continued

21. 1 4 - 21 Non-Compensatory Consumer Decision Rules Lexicographic Decision Rule Product attributes are identified Product attributes are ranked in terms of importance brands are compared in terms of the attribute considered most important Brand that scores highest on the first attribute is chosen If there is a tie, the scores on the next attribute are considered

22. Copyright © 2006 Pearson Education Canada Inc. 1 4 - 22

23. 1 4 - 23 Issues in Alternative Evaluation Lifestyles as a Consumer Decision Strategy Incomplete Information Non - comparable Alternatives Series of Decisions Consumption Vision Mental picture of the consequences of using a particular product

24. 1 4 - 24 Coping with Missing Information Delay decision until missing information is obtained Ignore missing information and use available information Change the decision strategy to one that better accommodates for the missing information Infer the missing information

25. 1 4 - 25 Information Search and Marketing Strategy Get products into consumers’ evoked set Limit information search if your brand is the preferred brand Increase information search if your alternative is not the preferred brand Use point-of-purchase advertising effectively

26. 1 4 - 26 Alternative Evaluation and Marketing Strategy Identify decision rule used by target market and use suitable promotional messages Influence the choice of evaluative criteria Influence the rating of your product on evaluative criteria used Use surrogate indicators effectively Use ‘consumption vision’

27. Checking the sampling process Preparation of questionnaire Pilot survey Fix procedures Use of competent manpower Provide information Provide training Use of experts Checking data processing and analysis