Search for Information Internal search: Retrieving knowledge from memory or genetic tendencies External search: Collecting information from peers, family, and the marketplace
Search Internal Search MEMORYMEMORY Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model External Search Stimuli Peers Family Marketplace
External Search When motivated by an upcoming purchase decision, external search is known as pre-purchase search When information acquisition takes place on a relatively regular basis, regardless of sporadic purchase needs, it is known as ongoing search
What to Search? Which choice alternatives should the consumer search? Those choice alternatives that consumers gather information about during pre-purchase search are referred to as the external search set
Where to Search? Different informational sources are available to the consumer
Where to Search? Consumers are more likely to rely upon the opinions of other individuals than information sources with vested interests in their decisions Other consumers respected for their expertise in a particular product category are referred to as opinion leaders or influentials
Consumer Search on the Internet Consumers are increasingly turning to the Internet for their search needs
Consumer Search on the Internet Particular search words or phrases used by consumers fall into three categories 70% Generic terms; representing product categories 20% Specific retailers; e.g., Best Buy, Gateway.com 10% Specific products; e.g., Canon digital camcorder, HP notebook
How Much to Search? Cost versus benefit perspective: people search for decision-relevant information when the perceived benefits of the new information are greater than perceived costs of acquiring the information
Constructing the Consideration Set Primarily from Memory Retrieval set: consideration set that depends on recall of alternatives from memory Not all alternatives retrieved from memory will be considered Consumers limit their consideration to those alternatives toward which they are favorably predisposed
Deciding How to Evaluate Choice Alternatives Rely on preexisting product evaluations stored in memory Construct new evaluations based on information acquired through internal or external search Direct Experience: prior purchase or consumption experiences with product Indirect Experience: experiences or impressions gained second-hand
Constructing New Evaluations The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assigned Categories may be general (drinks) or specific (colas) Evaluation of a category can be transferred to a new product assigned to that category Brand extensions allow firms to use categorization to their advantage
Constructing New Evaluations Noncompensatory Evaluation Strategies : a product’s weakness on one attribute cannot be offset by strong performance on another attribute
Constructing New Evaluations Noncompensatory Evaluation Strategies Lexicographic strategy: brands are compared initially on the one most important attribute, and the winner is chosen. If more than one is evaluated similarly on that attribute, the second most important is considered, and so on, until a winner is identified. Elimination by aspects: similar to the lexicographic strategy; however, the consumer imposes cutoffs Conjunctive strategy: each brand is compared, one at a time, against a set of cutoffs which is established for each salient attribute. If a brand meets the cutoffs for all attributes, it is chosen.
Constructing New Evaluations Noncompensatory Evaluation Strategies
Constructing New Evaluations Compensatory Evaluation Strategies: a perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute Simple additive: the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. The alternative with the largest number of positive attributes is chosen. Weighted additive: judgments about an alternative’s attribute performance are weighted by the attribute’s importance. The alternative with the best overall performance is chosen.