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BBA-5th Sem
Boston International College
By: Bipin Kandel
Information search and decision making:
 Information search is a stage of the decision making
process in which consumers actively collect and utilize
information from internal and/or external sources to make
better purchase decisions
 Consumers engage in both internal and external
information search.
 Information Search is a stage in the Consumer
Decision Process during which a consumer searches for
internal or external information.
 Consumers undergo a brainstorming session during this
phase of buying decision.
Internal Search
 Internal search involves the consumer identifying
alternatives from his or her memory.
 For certain low involvement products, it is very
important that marketing programs achieve “top of
mind” awareness.
 For example, few people will search the Yellow
Pages for fast food restaurants; thus, the consumer
must be able to retrieve one’s restaurant from
memory before it will be considered.
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 through external search must invest in
having information available to the consumer in need.
 e.g., through brochures, web sites, or news coverage.
 During the information search, the options available to
the consumer are identified or further clarified.
 An internal search refers to a consumer's memory or
recollection of a product, oftentimes triggered or guided by
personal experience.
It is more actively practiced for low involvement products.
 An external search is conducted when a person who has no
prior knowledge about a product seeks information from
personal sources (e.g. word of mouth from friends/family)
and/or public sources (e.g. online forums, consumer reports)
or marketer dominated sources (e.g. sales persons,
advertising).
It is more practiced for high involvement products.
Passive Search:
 It refers to consumer’s activity for short period
involvement.
 They tend to involve themselves in a short activities such
as watching videos, TV shows, turning on the pages of
magazines and knowing new things, blogs, etc.
 But they further don’t make any discussion on the topic
they recently encountered with.
 They are the real observers.
 That video is not shared, the article is not spoken about
and that blog definitely does not get any more readers or
subscribers as a result of this person.
Active Search:
 Customer’s involved in such type of information
search activity are ration and real learners.
 They involve themselves for a long discussion and sharing
time.
 When the passive consumer’s encounters in
activities like reading a new current affairs in the
magazines, videos in YouTube channels, articles in
magazines, etc. then they tend to learn more.
 They will discuss with their friends, family, etc.
 They watch a talk on TED, youtubes and they immediately
give the link to a couple friends via email, social media.
 They may read an article, and follow this up by
writing a blog post discussing it, looking into some
of the subtleties and investigating the topic a little
further.
 These kind of consumers are the kind that the content
creators love.
 The consumers themselves take so much more from the
content, understanding it on a better level and through
their reflection on it, they are able to remember it much
better and evaluate its immediate and potential long term
impact on their job/industry/lives etc.
Informational Sources
Types of Information Sought
A consumer decision requires information on the following:
The appropriate evaluation criteria for
the solution of a problem.
The existences of various alternative
solutions.
The performance level or characteristics
of each alternative solution in each
evaluation criterion.
Evaluation Criteria
 Evaluation criteria are the various dimensions, features,
or beliefs a consumer looks for in response to a specific
problem.
 Evaluation criteria can differ in type, number, and
importance.
 The type of evaluation criteria a consumer uses in a
decision varies from tangible cost and performance
factors such as style, taste, prestige, feelings generated
and brand image.
One potential objective of both internal and external search
is the determination of appropriate evaluative criteria.
 Government agencies and consumer organizations
want consumers to use sound evaluative criteria.
 Marketers wanted consumer to use evaluative
criteria that match their brand’s strengths.
 Both marketers and government agencies provide
information designed to influence the evaluative
criteria used.
Appropriate Alternatives
(Existences of Various Alternative)
 Inert set- Those brands of which the consumer is aware, but
towards which he or she is basically indifferent (Neutral).
Brands in this set are generally considered acceptable by the
consumer when preferred brands are not available. .
(Brands you cannot consider because you don’t know about them)
 Inept set- Those brands the consumer considers completely
unworthy of further consideration when attempting to solve a
consumption problem, the consumer actively dislikes the brands in
this set.
(Brands you wont consider because you don’t like them
 Evoked Set (Consideration Set)- Evoked set is a set of
brands that comes to a consumer's mind when he thinks of
purchasing a product.
(Acceptable brands that come to mind)
Categories of Decision Alternatives
Example of Decision Alternatives for laptop
Alternative Characteristics
 To choose among the brands in the evoked set, the evoked
set consumer compares them on the relevant evaluative
criteria.
 This process requires the consumer to gather information
about each brand on each pertinent evaluative criterion.
 Eg- Consumer will Collect information on Price, Memory,
Processor, Weight, Screen Clarity And Software package
for each Brand consumer is considering, while purchase of
laptops.
Sources of Consumer Information
 Primary sources of information available to consumers
are:
• Memory of past searches-personal experiences, low -
involvement learning.
• Personal sources; such as friends, family, and others.
• Independent sources, such as magazines, consumer
groups,
• Marketing sources, such as sales personnel, websites,
and advertising.
• Experiential sources, such as inspection or product
trial.

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unit -3 Consumer Behavior.pptx

  • 1. BBA-5th Sem Boston International College By: Bipin Kandel
  • 2. Information search and decision making:  Information search is a stage of the decision making process in which consumers actively collect and utilize information from internal and/or external sources to make better purchase decisions  Consumers engage in both internal and external information search.  Information Search is a stage in the Consumer Decision Process during which a consumer searches for internal or external information.  Consumers undergo a brainstorming session during this phase of buying decision.
  • 3. Internal Search  Internal search involves the consumer identifying alternatives from his or her memory.  For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness.  For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered.
  • 4. 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 through external search must invest in having information available to the consumer in need.  e.g., through brochures, web sites, or news coverage.
  • 5.  During the information search, the options available to the consumer are identified or further clarified.  An internal search refers to a consumer's memory or recollection of a product, oftentimes triggered or guided by personal experience. It is more actively practiced for low involvement products.  An external search is conducted when a person who has no prior knowledge about a product seeks information from personal sources (e.g. word of mouth from friends/family) and/or public sources (e.g. online forums, consumer reports) or marketer dominated sources (e.g. sales persons, advertising). It is more practiced for high involvement products.
  • 6.
  • 7. Passive Search:  It refers to consumer’s activity for short period involvement.  They tend to involve themselves in a short activities such as watching videos, TV shows, turning on the pages of magazines and knowing new things, blogs, etc.  But they further don’t make any discussion on the topic they recently encountered with.  They are the real observers.  That video is not shared, the article is not spoken about and that blog definitely does not get any more readers or subscribers as a result of this person.
  • 8. Active Search:  Customer’s involved in such type of information search activity are ration and real learners.  They involve themselves for a long discussion and sharing time.  When the passive consumer’s encounters in activities like reading a new current affairs in the magazines, videos in YouTube channels, articles in magazines, etc. then they tend to learn more.  They will discuss with their friends, family, etc.  They watch a talk on TED, youtubes and they immediately give the link to a couple friends via email, social media.
  • 9.  They may read an article, and follow this up by writing a blog post discussing it, looking into some of the subtleties and investigating the topic a little further.  These kind of consumers are the kind that the content creators love.  The consumers themselves take so much more from the content, understanding it on a better level and through their reflection on it, they are able to remember it much better and evaluate its immediate and potential long term impact on their job/industry/lives etc.
  • 11. Types of Information Sought A consumer decision requires information on the following: The appropriate evaluation criteria for the solution of a problem. The existences of various alternative solutions. The performance level or characteristics of each alternative solution in each evaluation criterion.
  • 12. Evaluation Criteria  Evaluation criteria are the various dimensions, features, or beliefs a consumer looks for in response to a specific problem.  Evaluation criteria can differ in type, number, and importance.  The type of evaluation criteria a consumer uses in a decision varies from tangible cost and performance factors such as style, taste, prestige, feelings generated and brand image.
  • 13. One potential objective of both internal and external search is the determination of appropriate evaluative criteria.  Government agencies and consumer organizations want consumers to use sound evaluative criteria.  Marketers wanted consumer to use evaluative criteria that match their brand’s strengths.  Both marketers and government agencies provide information designed to influence the evaluative criteria used.
  • 14.
  • 15. Appropriate Alternatives (Existences of Various Alternative)  Inert set- Those brands of which the consumer is aware, but towards which he or she is basically indifferent (Neutral). Brands in this set are generally considered acceptable by the consumer when preferred brands are not available. . (Brands you cannot consider because you don’t know about them)  Inept set- Those brands the consumer considers completely unworthy of further consideration when attempting to solve a consumption problem, the consumer actively dislikes the brands in this set. (Brands you wont consider because you don’t like them
  • 16.  Evoked Set (Consideration Set)- Evoked set is a set of brands that comes to a consumer's mind when he thinks of purchasing a product. (Acceptable brands that come to mind)
  • 17. Categories of Decision Alternatives
  • 18. Example of Decision Alternatives for laptop
  • 19. Alternative Characteristics  To choose among the brands in the evoked set, the evoked set consumer compares them on the relevant evaluative criteria.  This process requires the consumer to gather information about each brand on each pertinent evaluative criterion.  Eg- Consumer will Collect information on Price, Memory, Processor, Weight, Screen Clarity And Software package for each Brand consumer is considering, while purchase of laptops.
  • 20. Sources of Consumer Information  Primary sources of information available to consumers are: • Memory of past searches-personal experiences, low - involvement learning. • Personal sources; such as friends, family, and others. • Independent sources, such as magazines, consumer groups, • Marketing sources, such as sales personnel, websites, and advertising. • Experiential sources, such as inspection or product trial.