Search and evaluation by consumers

7/30/2019 Search and evaluation by consumers

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PRESTON UNIVERSITY

Mutahir bin yousaf

1611-208-002

Muhammad jameel

1611-209-002

Abdul ghani


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ACKNOWLEDGEMENT

We would like to thanks Sir, for giving ussuch an opportunity to stand in front of you all and

to throw light on Search and evaluation .

Thank you sir .


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Topic

Search and evaluation

Mutahir Search

The Information search process

Pre purchase search:

Ongoing search

Internal search:

External search:

Types of information

Sources of information

Amount of external search activity Perceived risk:

Dealing with risk:


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Muhammad jameel

The information evaluation process Evaluation or choice criteria

Reducing the range of alternatives:

Evaluating alternatives:

Decision:

Noncompensatory decision rules:

Disjunctive rule:

Conjunctive decision rule:

Lexicographic rule:

Compensatory decision rule:


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Abdul Ghani

Marketing implications

Studying the information search process:

Determining sources of information:

Warranty card:

In Depth search:

Decisive effectiveness:

Contributory effectiveness:

Ineffective:

Influencing the consumers evoked set:

Measuring evaluative criteria:

Determining the importance of criteria used by consumers:

Determining consumers evaluations of brand criteria performance:

Determining consumers cue usage:

Influencing consumers Evaluation:

Altering cue characteristics:

Altering information value:


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Search and evaluation

Search

To make a thorough examination of; look over carefullyin order to find something; explore.


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Evaluation

evaluation as a systematic survey of values or features of

a given programme, activity or an object, taking intoconsideration the adopted criteria to enhance, improve or

understand them better.


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The Information search process

The first step in the consumer decision making model is the need

recognition. Only after realizing a problem, a need or a demand,consumers begin searching for information that will solve their

problem or satisfy their needs or demands.

Steps Of Information search process

Pre purchase search:

Consumers engage in pre-purchase information seeking when

they have identified a product need and are seeking information

that will enable them to make better decisions and increase the

probability of satisfaction with purchase outcome


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Ongoing search

In ongoing information search consumers undertake

search without a specific problem. For example theremay be consumers who are crazy about motorcycles.

They may or may not own the vehicle but may be

interested in any information on motorcycles


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Internal search:

Internal search involves the consumer identifying

alternatives from his or her memory. For certain lowinvolvement products, it is very important that

marketing programs achieve top of mind

awareness. For example for fast food restaurants;

thus, the consumer must be able to retrieve onesrestaurant from

memory before it will be considered.


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External search:

For high involvement products, consumers are more

likely to use an external search. Before buying a car, for

example, the consumer may ask friends opinions, read

reviews in Consumer Reports, consult several web sites,

and visit several dealerships. Thus, firms that make

products that are selected predominantly throughexternal search must invest in having information

available to the consumer in neede.g., through

brochures, web sites, or news coverage.


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Types of information

1) About the existance and availability of different

products and services:This type of information is required by a person when

he is very less aware about different varieties of

product or services of some specific product category

E.G want to purchase television but dont know what

type of eg LCD, LED Plasma tv of which company

samsung, L.G etc


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2) Information required in forming evaluative criteria:

Here information is required by the person in

accordance to his/her needs ,taste etc to set certainstandards to evaluate different products or services

E.G 60 inch screen, black colour, with waranty, within

90,000 thousand Rs


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3) Information about characteristics of alternatives:

Here the person seeks as much information as he can

about all the alternative products so then he can finallycompare those alternatives and selects one

e.g LG 60" (152cm) Plasma TV, Model: 60PA6500,

1920 x 1080 pixel resolution, HD Digital Tuner, 1yr

warranty. Includes: Widescreen, Full HD Display, USBConnector, Full HD Input. 98703 Rs


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Samsung 60" (152cm) 3D Plasma TV, Model:

PS64E550, 1920 x 1080 pixel resolution, HD

Digital Tuner, Includes: Widescreen, Full HD

Display, USB Connector, 3D Display, Internet

Connectivity, USB Recording, Web Browsing,

IPTV. 158103 Rs


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Sources of information

1) Marketer- dominated sources:

Here the person gets information from salesperson,packaging, advertising, company website etc

2) Consumer sources: here the person gets information

from friends, relatives, family members and all those

who are interpersonal communications not under the

control of the marketer


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3) Neutral sources:

Here the person gets information from mass media,government reports and publications from

independent product testing agencies etc.


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Amount of external search activity

The easier it is to acquire relevant information, the less

necessary is an extensive external search. If consumers

realize that relevant information can be obtained

quickly, they are unlikely to engage in a high-energy,

time-consuming, external search


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Factors influencing the amount of external search

1) Market conditions:

Availability of information, number of alternatives

available, and the location of outlets are among the most

triggering factors.

a) Price differences between brands are greater

b) Style and appearance are perceived to be quiteimportant

c) It is suspected that substantial differences may exist

between product alternatives.


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2) Buying strategies:

Consumers mainly adopt various strategies to reduce

external search and the factors are:a)Store loyalty

b)Buy the product which already someone is using in their

social circle.

Under the influence of manufacturer promises of money

back guarantee etc


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Individual factors: The amount of external search is

affected by the persons own characteristics

a)Greater market experience with a product is associated

than a lower degree of external search.

b)The subjective costs associated with the search,

including time spent and anxiety while searching

c) Persons ability to move in search of informationd) His or her level of education the lower the level the

lesser he will conduct external search.


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Situational factors:

a)Urgency of a need

b)Special opportunities available within certain timeperiod

c)store condition being crowded or not


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Perceived risk:

Consumer may Perceive risk in relationship to

information acquisition and processingconstructs such as word-of-mouth behavior and

opinion-leadership, as well as to overt consumer

behaviors such as new product adoption,store/brand loyalty, and modes of shopping


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Situations influencing risk:

Some of the major situations are

a) First time purchase of a high cost product

b) Uncertainty regarding which alternative to take

c) When buying for some other person


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Types of risk:

There are six types of perceived risk:

Functional - Will the product perform as I expect? If the

customer is buying sweet corn, this means, "Will this corn

be as good as what I remember from last year or what I

had last week?" If the customer is buying petunias, the

risk is, "Will they make my garden look the way I want it

to look?"


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Physical - Can the product hurt me, my children or my

pets? The use of pesticides in the production of food

crops is frequently the concern here, but ornamentals that

bear poisonous fruit can also be a concern.

Social - What will my peers think? If customers are

buying sweet corn to eat in the privacy of their home, the

risk here is low. If they buy petunias and plant them in

the front yard and petunias are socially out this year, it's

like having a big sign in your yard for five months

saying, "geek lives here".


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Psychological - Am I doing the right thing? This can

be a strong motivator in plant sales for the environ-

mentally concerned or an impossible obstacle for the

truly paranoid.

Financial - Can I afford the purchase? This is not a

major problem for most people buying sweet corn or

petunias. It is a major obstacle for customersconsider-ing a specimen plant or flowering trees that

may cost $60 to $100.

Time - How much time and effort may I expend tomake this purchase?


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Dealing with risk: some of the ways to reduce perceived

risk are

1) Endorsement;

2)Brand Loyalty;

3) Major Brand Image;

4) Private Testing;

5) Store Image;

6) Free Sample;

7) Money-Back Guarantee;

8) Government Testing;

10) Expensive Model;

11) Word-Of-Mouth.


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The information evaluation process

As the consumer is engaged in search activity he or

she is also actively engaged in information

evaluation:

Evaluation or choice criteria:

Here consumer sets choice criteria to evaluates a

brand on the basis of his choice which he has set asstandard for comparison like of plasma tv in which

the consumer will evaluate all the characteristics of

the brands on the standards of his choice criteria e.g

price, colour, warranty etc.


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Reducing the range of alternatives:

In this step during evaluation of brands the consumerwill drop the brands which are not up to the mark of

his choice criteria like the price of Samsung is above

of his affordability so he will drop that and compare

LG with other brands and then drop more brandswhich are not up to his standard in this way very less

alternatives will be left to choose from


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Evaluating alternatives:

The consumer keep going on evaluating alternative

unless he has two or three alternatives are left in which

he is confused to choose because all are upto the mark

of his choice


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Decision:

finally the consumer will choose one product which

he thinks is best and in accordance with his choicecriteria by following certain decision rules which are

Noncompensatory decision rules:

A type of consumer decision rule by which positive

evaluation of a brand attribute does not compensate

for (i.e. is not balanced against) a negative evaluation

of the same brand on some other attribute. There arethree noncompensatory decision rules.


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Disjunctive rule:

A noncompensatory decision rule in which consumers

establish a minimally acceptable cutoff point for eachrelevant product attribute.


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Conjunctive decision rule:

A noncompensatory decision rule in which consumers

establish a minimally acceptable cutoff point for eachattribute evaluated. Brands that fall below the cutoff

point on any one attribute are eliminated from further

consideration


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Lexicographic rule:

A noncompensatory decision rule - consumers first rank

product attributes in terms of importance, then compare

brands in terms of the attribute considered most

important.


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Compensatory decision rule:

A type of decision rule in which a consumer evaluates

each brand in terms of each relevant attribute and then

selects the brand with the highest weighted score


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Marketing implications

Studying the information search process:For the marketer to understand how consumer works on

information search process so he can make available the

kind and quality of information which consumer seeks

the marketer first has to understand about the sources ofinformation used by the consumer


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Determining sources of information:

Some of the sources through which marketer can get

some information about the consumer are:Warranty card:

Marketers can use waranty registration cards to get

information about the consumer information search

activities but it is limited it only tells place of purchase

of a product, date of purchase of product but many

questions are left unanswered


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In Depth search:

One of the best method to determine sources of

information of consumers is by doing in depth

research in which most prominent method is by

developing a questionnaries to ask specific questions

How did you learn about this new product

Why did you decide to buy this brand With whom you have shared the information about

this brand

Where else you have found the information about thisbrand


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Determining source influence:

For the marketer to understand the influence ofinformation sources on brand purchase intentions and

fulfillment several steps of analysis are required.

One typology for comparing various information sources

are:

1) Decisive effectiveness: The consumer evaluates this

source as having a major impact on the decision process


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Contributory effectiveness:

The consumer evaluates this source as playing a specific

role in the decision process, although it is not among the

most important sources.

Ineffective:

This source is considered as having no particular role inthe decision process


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Influencing the consumers evoked set:

The consumer compares the brands and products thatare in their evoked set.

The evoked set refers to the number of alternativesthat are considered by consumers during the problem-solving process.

How can the marketing organization increase the

likelihood that their brand is part of the consumer'sevoked set?

Consumers evaluate alternatives in terms of thefunctional and psychological benefits that they offer.

The marketing organization needs to understand whatbenefits consumers are seeking and therefore whichattributes are most important in terms of making adecision.


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Measuring evaluative criteria:

For the marketer to develop a successful marketing

campaign he has to understand of what criteria

consumer uses in their decision making process

1) Determining which criteria are used by

consumers:

By directly asking consumers through questionnaires.

Through group discussions


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Through exploratory survey

Through online blogs

h f d b


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Determining the importance of criteria used by

consumers:

A direct method for researching this couldinvolve the use of rating scale, method whereby

consumers would be asked to evaluate each

criterion on a six point scale ranging from

perhaps unimportant to important.

Another approach would be to use a semanticdifferential with pairs of adjectives

characterizing the criteria, such as high price,

and low price.


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A third approach involves what is known as a

constant sum scale, in which respondents

typically allocate 100 points across theevaluative criteria according to their judgment of

each ones importance.


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Determining consumers evaluations of brand

criteria performance:

Select samples of consumers and give them

sample of products and then ask them how they

will evaluate it on performance criteria

D t i i


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Determining consumers cue usage:

The marketer must understand the consumers cue usage

in his/her decision making

Three product cues that have been found to be the

most important in consumers ratings of product

quality: physical appearance : Physical appearance of the

product is important for the consumer and it becomes

more important if the product is costly

b d


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brand :

some customers are very much brand conscious in

purchase decisions for a number of products Several

studies have shown that consumers use high status or

well-known brand

names as indicators of apparel product quality


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price :

Price is important to consumers because it

represents the sacrifice necessary to obtaingoods. Perceived price may be described as the

consumers judgment of the acceptability

of the products price and is largely dependent on the

consumers expected price. In other words,consumers generally have a preconceived acceptable

price range

I fl i E l ti


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Influencing consumers Evaluation:

If the product is not well accepted in the market then

the marketer have to change its position in the

customers mind.

Altering cue characteristics:

Making product packaging more eye catching

Changing the price of the product according to the mind

set of its target market

Alt i i f ti l


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Altering information value:

Rather than changing characteristics of a cue it may

be possible to change the way consumers evaluate a

product

Changing the message type like surf excel has done

by spreading a message dirt is good when others aresaying dirt is bad by doing this surf excel has

successfully made a unique position in consumers

mind


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Documents

Search and evaluation by consumers