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.
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