Information Search in Consumer Decisions Types of information

Information Search in Consumer Decisions Types of information sought? • The appropriate evaluative criteria • The importance of each criterion • The existence of various alternatives • The performance level or characteristic of each alternative solution on each evaluative criteria. Ex: Selection of a College/University Nature of information search • Internal vs. external search

Internal: Categories of Decision Alternatives All potential alternatives (brands, products) Awareness set known products and brands Evoked set Alternatives given consideration Specific alternative purchased Inert set Backup alternatives Alternatives considered, but not purchased Unawareness set Alternatives the consumer does not know about Inept set Avoided alternatives

External: Sources of Information • • Personal sources Independent sources Marketing sources Experiential sources

Comparison of Information Sources Source Internal (memory) Personal Marketing Independent Experiential Effort Required Credibility

Perceived Costs and Benefits of External Search 15 -7 Benefits obtained Financial Psychological Physical Product Costs of search Out-of-pocket expenses Psychological Time Activities missed YES Continue search effort NO Terminate search effort Do the benefits of external search exceed costs? Copyright © 2001 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Factors Affecting External Search Influencing Factor I. Market characteristics A. Number of alternatives B. Price range C. Store concentration D. Information availability 1. Advertising 2. Point-of-purchase 3. Sales personnel 4. Packaging 5. Experienced consumers 6. Independent sources II. Product characteristics A. Price B. Differentiation C. Positive products Increasing the Influencing Factor Causes the Search to:

Factors Affecting External Search (cont. ) Influencing Factor III. Consumer characteristics A. Learning and experience B. Shopping orientation C. Social status D. Age and household life cycle E. Product involvement F. Perceived risk IV. Situation characteristics A. Time availability B. Purchase for self C. Pleasant surroundings D. Social surroundings E. Physical/mental energy Increasing the Influencing Factor Causes the Search to:

Marketing Strategies Based on Information Search Patterns Target Market Decision-Making Pattern _______________________ Nominal Limited Extended Decision Making (no search) (limited search) (extensive search) Brand in evoked set Maintenance strategy Capture strategy Preference strategy Brand not in evoked set Disrupt strategy Intercept strategy Acceptance strategy