CHAPTER 15 Information Search Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

15-2 PART IV: CONSUMER DECISION PROCESS

Discuss internal and external information search and their role in different decision types Summarize the types of information consumers search for Describe the categories of decision alternatives relating to the evoked set Discuss available information sources and the role of Internet and mobile search Discuss the major cost-benefit factors driving the amount of external search Summarize the marketing strategies based on information search patterns Learning Objectives 15-3

Online Video as Part of External Search!  What percent of all online videos viewed are online video ads?  5 %  7%  12%  35% Source: Advertising Age, Consumer Behavior In The News… 15-4

Online Video as Part of External Search!  What percent of all online videos viewed are online video ads?  5 %  7%  12% - if you said 12 percent you are correct!  35%  Online video ads are an increasingly important part of online search, one form of external search. Source: Advertising Age, Consumer Behavior In The News… 15-5

Internal Search Search of long-term memory to determine if 1.a satisfactory solution is known 2.what are types of potential solutions, and 3.ways to compare the possible solutions. External Search If a resolution is not reached through internal search, then the search process is focused on relevant external information. Ongoing search Ongoing search is done to acquire information and because the process is pleasurable. Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes The Nature of Information Search

Consumer decisions require information about:  Appropriate evaluative criteria  The existence of various alternatives  Performance of each alternative on each evaluative criterion 15-7 Types of Information Sought

Information Search 15-8 Types of Information Sought

15-9 Types of Information Sought

Example of Decision Alternatives for Laptop Computers Types of Information Sought

 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 Five primary sources of information available to consumers: Sources of Information

15-12 Sources of Information

Source: World Internet Usage Statistics News and World Population Stats (Bogota, Colombia: Miniwatts Marketing Group, March Sources of Information

Online information is expected. Online information boosts offline sales. Online sources are viewed as valuable. Online sources reduce salesperson’s role. Internet is a Major Search Avenue Sources of Information

Internet Search Activities Sources of Information

The following Video Clip demonstrates how differentiates its website booking from its competitors with less time and effort! Video Application

15-17

The Nature of Search Using Online Search Engines Sources of Information

Economic considerations are a major motivator of online search. Information overload Information overload is a challenge. Botsshopping bots Comparison shopping sites use Bots or shopping bots, to help consumers in their search and decision making. Information Search on the Internet YouTube Spotlight The SeaApp explains how it can help consumers find the best deals fast! Sources of Information

Three major strategic issues marketers face regarding the Internet’s role in information search and decision making: Information Search on the Internet 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)? Sources of Information

 Banner ads  Permission-based  Social media Driving Information to Consumers Sources of Information

Search engine optimization (SEO) 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. Offline Media Offline Media such as print and TV. Behavioral targeting Behavioral targeting involves tracking consumer click patterns on a website and using that information to decide on banner ad placement. Driving Consumers to a Firm’s Information Sources of Information

Consumers need ongoing incentives to return such as: product-related news features user-related discussion forums updates on new products Website design Website design is also critical. Ongoing and repeat traffic requires relevant and frequently updated content. Driving Consumers to a Firm’s Information Firms use various incentive techniques to encourage repeat traffic Sources of Information

15-24 Mobile Search Experian Mobile Phone Segments Mobirati 19% Mobile Professionals 17% Social Connectors 22% Pragmatic Adopters 22% Basic Planners 20%

The Ford ad shows how mobile marketing efforts are used as an outlet to build awareness and excitement Applications in Consumer Behavior Courtesy Ford Motor Company

15-26 Mobile Search and Marketing Strategy

 External information search is skewed toward limited search, with the greatest proportion of consumers performing little external search immediately prior to purchase. Various measures of external information search: 1.Number of stores visited 2.Number of alternatives considered 3.Number of personal sources used, and 4.Overall or combination measures Amount of External Information Search

 Market Characteristics  Product Characteristics  Consumer Characteristics  Situation Characteristics Costs vs. Benefits of External Search

15-29 Costs vs. Benefits of External Search

1.The type of decision influences the level of search, and 2.The nature of the evoked set influences the direction of the search Sound marketing strategies take into account the nature of information search prior to purchase. Two dimensions of search are particularly appropriate: Marketing Strategies Based on Information Search Patterns

15-31 Marketing Strategies Based on Information Search Patterns