Chapter-16: Search and Evaluation

Chapter-16: Search and Evaluation

Once consumers have recognized the existence of a problem, and assuming there are no constraints preventing further behavior, they move to the next stage in the decision–making process. Unless it is known what information they need in their decision-making that which is provided may be inappropriate and ineffective.

Types of Consumer Search Activity:

The term search refers to mental as well as physical information–seeking and processing activities which one engages in to facilitate decision-making regarding some goal-object in the marketplace. Consequently, search may be undertaken in order to find out about products, prices stores and so on, related to the product.

(i) Pre-purchase Search: This is the typical form of search we associate within the purchasing context. If the consumer has recognized a problem, then, pre-purchase search would be engaged.

(ii) Ongoing Search: This is characterized as search activities independent of specific needs or decisions; that is, it does not occur in order to solve a recognized and immediate purchase problem. Thus if consumer were searching with an interest in a product but with no demand for the product, the search would be ongoing rather than pre-purchase.

(iii) Internal Search: This is the first stage to occur after the consumer experiences problem recognition. It is a mental process of recalling and reviewing information stored in memory that may relate to the purchase situation. For example, a consumer may recall that a friend made very negative comments about a particular brand of coffee maker (which the consumer is now buying) while playing cards several months ago.

The result or outcome of internal search and alternative evaluation may be that a consumer: (a) makes a decision and proceeds to engage in purchase behavior, (b) is constrained by certain environmental variables (such as a determination that his checking account cannot stand the purchase), or (c) determines that insufficient or inadequate information exists in his memory to make a decision now, so that external search is undertaken.

(iv) External Search: This refers to the process of obtaining information from other sources in addition to that, which can be recalled from memory. Some sources from which such information might be obtained are advertisements, friends, salespeople, store displays, and product–testing magazines.

Types and Sources of Information:

A great variety of information of potential interest to consumers exists in the external environment. Three general categories are: (i) information about the existence and availability of various product and service offerings, (ii) information useful in forming evaluative criteria-the standards which are employed to evaluate alternatives, and (iii) information on the properties and characteristics of alternatives. In general it appears that the type of information sought depends upon what the consumer already knows. For example, when the consumer has little knowledge about available offerings, search effort tends to focus on learning about the existence of alternatives in forming appropriate evaluative criteria.

In addition to the direct experience of using products themselves, consumers gain information from three major areas: (i) marketer-dominated sources, (ii) consumer sources, and (iii) neutral sources. Information in marketer-dominated channels stems from salespeople, packaging, and other sources under the control of the marketer. Consumer sources include all those interpersonal communications not under the control of the marketer. Neutral sources include a portion of the mass media, government reports and publications from independent product testing agencies. This group is not under the control of the marketer.

Amount of External Search Activity:

Many studies have examined the amount of external search that consumers actually undertake. Consumers typically consult few information sources (friends, articles, advertisements, and so on) before making a purchase. In terms of outlets visited, various studies suggest that generally shoppers visit only one store before making a purchase. The amount of external search that consumers engage in varies considerably across individuals and different purchase situations.

Market conditions: Characteristics of the marketplace can have a significant effect on external-search behavior. Availability of information, the number of alternatives to consider, and the location of outlets are among the influencing factors. In addition, many market conditions lead consumers to attach importance to the purchase situations or to perceive differences between available alternatives.

Buying strategies: Consumers often adopt various strategies, which reduce the amount of external search. For example, patterns of brand and store loyalty can develop through purchase experience over time. Evidence suggests that when the purchase decision is complex, or when available information is difficult to process, consumers tend to adopt simple choice rules (such as pick the middle priced one) and significantly curtail their external search.

Individual factors: Of course many of the consumer’s own characteristics influence the degree of external-search activity. (i) Greater market experience with a product is associated with a lower degree of external search. (ii) Open-mindedness and self-confidence of consumers have been found to be positively related to greater search activity. (iii) Socio-economic characteristics have been related to search. (iv) Consumers differ in their ability to process information. (v) Consumer market beliefs are important because they serve to simplify consumer decision-making by directing search and evaluation activities.

Situational factors: A number of factors unique to the specific situation can also influence external search. Search may be reduced when: (i) The urgency of a need or the amount of available time exert pressure on the purchase decision, (ii) Store conditions are perceived as being crowded, and (iii) Special opportunities arise to purchase at an especially attractive price.

Perceived risk: Risk or uncertainty regarding the most appropriate purchase decision or the consequences of the decision is a significant variable influencing the total amount of information gathered by consumers. There are several situations that influence the consumer’s perception of uncertainty (regarding consumers buying goal, regarding which alternative will best match or satisfy the purchase goal, and possible undesirable consequences) or consequences.

One may expect several kinds of risks: (i) Monetary or financial risk- the consumer may loss money if the brand doesn’t work at all or cost more than it should to keep it in good shape; (ii) Functional or performance risk- the brand may not work properly; (iii) Physical risk- the brand may be or become harmful or injurious to one’s health; (iv) Social risk- the brand may negatively affect the way others think of the consumer; (v) Psychological risk- the brand may not fit in well with the consumer’s self image or self-concept.

Because most purchase behavior appears to involve at least some risk, consumers may take various steps to handle the problem. Strategies to reduce perceived risk include: (i) buy the brand whose advertising has endorsements or testimonials from typical consumers, from a celebrity, or from an expert on the product, (ii) buy the brand that the consumer has used before and has found satisfactory, (iii) buy a major well-known brand and relay on its reputation, (iv) buy the brand offering a money-back guarantee with the product, (v) buy the brand that has been approved by the government.

The Information Evaluation Process:

As the consumer is engaged in search activity, he or she is also actively engaged in information evaluation. Evaluation involves those activities undertaken by the consumer to appraise carefully, on the basis of certain criteria, alternative solutions to market-related problems. The search process determines what the alternatives are, and in the evaluation process they are compared so that the consumer is readily to make a decision.

Evaluative or Choice Criteria: A consumer evaluates a brand on the basis of a number of choice criteria. These criteria are the standards and specifications the consumer uses in evaluating products and brands. They define the preferred product/brand features that a consumer seeks in a purchase and may be either objectives or subjective in nature. Evaluation criteria may vary from one consumer to another. No matter how many criteria are evaluated by the consumer, they are likely to differ in their importance.

The marketer should be careful in assuming, however, that a certain feature ranked as most important by consumers is actually determinant. For example, an airlines company may think about departure and arrival times, fares, past experience, itinerary routing, frequent-flyer program, terminal location and safety records.

The number and type of evaluative criteria may very by product. Consumers use few evaluative criteria when purchasing most grocery items. However, when one is purchasing a home, car or other major durable item, more evaluative criteria would typically be used in the evaluation process. This means that consumers would tend to use more evaluative criteria for high-involvement products that for low-involvement products. Evaluative criteria may also change over time. As consumers gain experience and information, their evaluative criteria may shift.

Factors influencing the amount of evaluation: A numbers of factors affect to determine the amount of evaluation that occurs. (i) The more urgent the need, the less evaluation will take place. (ii) The more significant the product is to the buyer (for example, a house, car, boat) the grater the amount of evaluation. (iii) The more complex the alternatives, the more evaluation will take place.

Marketing Implications: There are number of marketing implications that flow from this expansion of search and alternative evaluation processes.

(i) The marketers need to determine the sources of information. In this regard they may use warranty cards and in-depth research.

(ii) One of the variables that need to be assessed to determine its strength or weakness is the influence of information sources on brand-purchase intentions and fulfillment.

(iii) It is also beneficial for the marketer to determine whether his brand is perceived as being in the consumer’s evoked, inert, or inept set.

(iv) In order for the marketer to develop a successful marketing mix, there must be an understanding of what criteria are used by consumers in making purchase decision.

(v) The marketer may decide to change his brand’s image upon finding that his brand suffers from continued existence in consumer’s inept or inert sets.