In: Economics
The factors that influence the amount of search performed by consumers are
1) The first concept discuss is that of a consumer's evoked set (sometimes termed "consideration set"), which refers to the group of brands (or stores) that a consumer actually considers for purchase, and is usually only a subset of the brands the consumer is aware of. This concept has considerable intuitive appeal for marketers because it offers a potential strategic target for the development of marketing programs (i.e., if my brand or store is not in a consumer's evoked set the chances for purchase are very low, so how can I ensure my brand or store will be in this set?). We find that within consumer durables, about one-third to one-half of buyers have evoked sets of only a single brand. The initial size of the consumer's evoked set has been found to be a major influence on the total amount of information search a consumer undertakes: those with smaller evoked sets search less and are likely to choose a brand from the set quickly. We also discuss how the evoked set changes as the decision process moves along.
2)The second major concept concerns consumer beliefs about the marketplace and how these beliefs influence the decision process. For example, consumers who believe brand quality is a direct function of price or that the same brands tend to be the best year after year devote much less time to search than consumers who do not share those beliefs. It is clear that marketers can use these consumer beliefs as a new basis for target marketing programs.
3)Another key concept is that of surrogate attributes. As opposed to objective information about a product (style, performance, etc.), a surrogate attribute provides no actual information about the product, but is used by consumers as though it does. Price, brand name, manufacturer reputation, store atmosphere, etc., are common surrogate attributes. Research suggests that consumers rely on surrogate attributes to reduce their search behavior and to drive their purchase decisions. Marketers could use this information to develop programs for image cultivation, availability of information, and segmentation based on target market knowledge and experience.
4)Research on the impact of consumer knowledge on information search behavior has generally shown an inverted U-shaped function, in which consumers who have either very high or very low levels of product experience and knowledge will devote the least time and effort to information search. Thus marketers will wish to tailor their programs to where consumers fall along this dimension. Recent research involving computerized simulations of information search processes offers a promising avenue for a better understanding of this area.
5)Finally, a cost-benefit perspective is the fifth major concept useful for understanding consumer information search. Search costs include factors such as delay in acquiring the product, the value of a consumer's time, the frustration involved in dealing with traffic, salespersons, etc., as well as dollar costs for shopping. The benefits include finding a better price, increasing one's satisfaction level, and psychological gratification from making a better purchase. The cost/benefit framework has implications for a salesperson attempting to either increase benefits or decrease costs to encourage a consumer to make an immediate purchase rather than continue to search.