JM602 Consumer Behaviour

1. JM602Consumer Behaviour Lecture 5 – Evaluating alternatives

2. Material in these slides • Primarily drawn from: • Neal, Quester and Hawkins (2005). Consumer behaviour: Implications for marketing strategy (4th ed). McGraw-Hill Irwin: Queensland

4. A model of consumer behaviour

5. Information Search • What is information search? • What are the key types and sources of information used by consumers? • What is the difference between evoked, inept and inert sets of brands? • Why do consumers engage in information search?

6. Lecture overview • What are the factors that affect the amount of external information search? • What marketing strategies can be developed based on different patterns of search behaviour?

7. Information search in consumer decisions

8. Suggesting evaluative criteria that match the brand’s strengths

9. Brands in Initial Awareness Set

10. Categories of Decision Alternatives

11. Awareness and Evoked Sets for Various Products

12. What information sources do consumers use? • Memories of past searches, personal experience and low-involvement learning • Personal sources, eg family and friends • Independent sources, eg. ‘Choice’ magazine • Marketing sources, eg websites, advertising • Experiential sources, eg product trial

13. Information sources for a purchase decision

14. Sources of Information for Services

15. Information Search on the Internet • 2004 survey—>80% Australian population have a computer • Most important reasons for ‘surfing’ were: • ‘to look for information’ (40%), ‘leisure’ (19%), ‘to shop’ (18%) • Internet is the most popular information source for students (2003 survey) • Over half of e-shoppers are women, taking over from males • 73% of those with Internet at work use it every morning

16. Marketing Strategy and Information Search on the Internet • Companies need to ask: • Should we have a web site? • What is the purpose of the site to be? • Information only • Company and product/service information • To actively attract customers • A shopping site

17. How much external information search do consumers do? • Measures used • No. of stores visited • No. of alternatives considered • No. of personal sources used • Overall or combination measures • External information search is skewed towards limited search

18. Amount of External Search for Appliances

19. Classification of Searchers • Non-searchers: do not engage in information search before purchasing • Limited information searchers: undertake limited information search before purchasing • Extended information searchers

20. Information Searching Behaviour

21. What other factors affect the amount of information search?Costs vs Benefits of External Search

22. Marketcharacteristics

23. Product characteristics

24. Consumer characteristics

25. Situational characteristics

26. Marketing Strategies Based on Information-Search Patterns

27. Strategies (habitual decisions) • Maintenance strategy • If target market purchases brand habitually, then the strategy is to maintain that behaviour • Defend against disruptive tactics • Constant activity + interest • Disrupt strategy • If brand is not in evoked set, then marketer needs to disrupt normal buying patterns • Attention-seeking ads • Free samples or bonus encouraging trial • Capture strategy • Constant supply + quality • Continue limited search

28. Limited decision making • Capture strategy: • If the existing brand is one of the brands in the evoked set then the objective is to capture as large a share of purchases as possible • Provide additional information to consumers • Use co-operative advertising, Point of purchase (POP) displays, adequate shelf space • Intercept strategy • Must intercept consumer during search for information on brands in evoked set • attract attention, POP display • Product improvements, etc.

29. Extended decision making • Preference strategy • Search locations must be anticipated, e.g. Chemists • POP + sales assistance • Acceptance strategy • Motivate the consumer to learn about the brand • Advertise but don’t ‘sell’ the brand • Encourage consumer to seek information

30. Next Lecture… • Evaluating and Selecting Alternatives

31. Recapping information search • Internal and external sources • Directed and low-level search • Habitual, limited and extended decision making

32. Information search in consumer decisions

33. Suggesting evaluative criteria that match the brand’s strengths

34. Brands in Initial Awareness Set

35. Categories of Decision Alternatives

36. Awareness and Evoked Sets for Various Products

37. What information sources do consumers use? • Memories of past searches, personal experience and low-involvement learning • Personal sources, eg family and friends • Independent sources, eg. ‘Choice’ magazine • Marketing sources, eg websites, advertising • Experiential sources, eg product trial

38. Information sources for a purchase decision

39. Sources of Information for Services

40. Information Search on the Internet • 2004 survey—>80% Australian population have a computer • Most important reasons for ‘surfing’ were: • ‘to look for information’ (40%), ‘leisure’ (19%), ‘to shop’ (18%) • Internet is the most popular information source for students (2003 survey) • Over half of e-shoppers are women, taking over from males • 73% of those with Internet at work use it every morning

41. Marketing Strategy and Information Search on the Internet • Companies need to ask: • Should we have a web site? • What is the purpose of the site to be? • Information only • Company and product/service information • To actively attract customers • A shopping site

42. How much external information search do consumers do? • Measures used • No. of stores visited • No. of alternatives considered • No. of personal sources used • Overall or combination measures • External information search is skewed towards limited search

43. Amount of External Search for Appliances

44. Classification of Searchers • Non-searchers: do not engage in information search before purchasing • Limited information searchers: undertake limited information search before purchasing • Extended information searchers

45. Information Searching Behaviour

46. What other factors affect the amount of information search?Costs vs Benefits of External Search

47. Marketcharacteristics

48. Product characteristics

49. Consumer characteristics

50. Situational characteristics