CHAPTER 15 Information Search McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved PART IV: CONSUMER DECISION PROCESS 15-2 Learning Objectives Discuss internal and external information search and their role in different decision types L01 L01 Summarize the types of information consumers search for L02 L02 Describe the categories of decision alternatives relating to the evoked set L03 L03 Discuss available information sources and the role of Internet and mobile search L04 L04 Discuss the major cost-benefit factors driving the amount of external search L05 L05 Summarize the marketing strategies based on information search patterns L06 L06 15-3 Consumer Behavior In The News… 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, 2011 15-4 Consumer Behavior In The News… 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, 2011 15-5 The Nature of Information Search Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes Internal Search External Search Search of long-term memory to determine if If a resolution is not reached through internal search, then the search process is focused on relevant external a satisfactory solution is known what are types of potential solutions, and ways to compare the possible solutions information Ongoing search is done to acquire information and because the process is pleasurable 15-6 Types of Information Sought 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 15-10 15-17 15-17 Sources of Information The Nature of Search Using Online Search Engines 15-18 Sources of Information Information Search on the Internet Economic considerations are a major motivator of online search Information overload is a challenge Comparison shopping sites use Bots or shopping bots, to help consumers in their search and decision making The SeaApp explains how it can help consumers find the best deals fast! YouTube Spotlight 15-19 Sources of Information Information Search on the Internet Three major strategic issues marketers face regarding the Internet’s role in information search and decision making: How can they drive their information to consumers? How can they drive consumers to their information? How (if at all) can online selling be utilized or integrated with existing channels (Chapter 17)? 15-20 Sources of Information Driving Information to Consumers Banner ads Permission-based e-mail Social media 15-21 Sources of Information Driving Consumers to a Firm’s Information Offline Media such as print and TV Behavioral targeting involves tracking consumer click patterns on a website and using that information to decide on banner ad placement 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 15-22 Sources of Information Driving Consumers to a Firm’s Information Website design is also critical Ongoing and repeat traffic requires relevant and frequently updated content Consumers need ongoing incentives to return such as: • product-related news features • user-related discussion forums • updates on new products Firms use various incentive techniques to encourage repeat traffic 15-23 Mobile Search Mobirati 19% Mobile Basic Planne rs Professionals 20% 17% Experian Mobile Phone Segments Pragm atic A dopte rs Social Conne ctors 22% 22% 15-24 Applications in Consumer Behavior The Ford ad shows how mobile marketing efforts are used as an outlet to build awareness and excitement Courtesy Ford Motor Company 15-25 Mobile Search and Marketing Strategy 15-26 Amount of External Information Search 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: Number of stores visited Number of alternatives considered Number of personal sources used, and Overall or combination measures 15-27 Costs vs Benefits of External Search Market Characteristics Product Characteristics Consumer Characteristics Situation Characteristics 15-28 Costs vs Benefits of External Search 15-29 Marketing Strategies Based on Information Search Patterns Sound marketing strategies take into account the nature of information search prior to purchase Two dimensions of search are particularly appropriate: The type of decision influences the level of search, and The nature of the evoked set influences the direction of the search 15-30 Marketing Strategies Based on Information Search Patterns 15-31 ... Ford ad shows how mobile marketing efforts are used as an outlet to build awareness and excitement Courtesy Ford Motor Company 15- 25 Mobile Search and Marketing Strategy 15- 26 Amount of External... groups, and government agencies Marketing sources, such as sales personnel, websites, and advertising Experiential sources, such as inspection or product trial 15- 11 Sources of Information 15- 12... booking from its competitors with less time and effort! 15- 16 15- 17 15- 17 Sources of Information The Nature of Search Using Online Search Engines 15- 18 Sources of Information Information Search