Chapter 7 Problem Recognition and Information

Search
Internal search- The process of recalling stored
information from memory.

External Search - the process of collecting

information from outside sources such as magazine,
dealers, advertisement, etc.
2 Forms of External Search

What kind of information is retrieved from

Internal search?

1. Prepurchase Search - occurs in response to the

activation of problem recognition.

>Brands >Attributes >Evaluations >Experience

2. Ongoing Search - consumers go on with their

research for a particular period of time if they decide or
if they want to buy a particular product. On going
activities basically show the work in progress.

Recall of Brands
Consideration (or evoked set)- The subject of topof-mind brands evaluated when making a choice.

Factors that increase the possibility of

consumers recalling a particular brand

Prototypicality-Consumers easily recall brands that

are closest to the prototype or that most resemble
other category members.
Brand Familiarity Well- known brands are more
easily recalled during internal search than unfamiliar
brands because the memory links associated with
these brands tend to be stronger.
Brand Preference-Brands toward which the consumer
has positive attitudes tend to be recalled more easily.
Retrieval Cues- are stimuli that assist in memory
retrieval. The presence of retrieval issues can make
recalling memories much easier.
Recall of Attributes

Factors influencing the recall of attribute

information

Accessibility/availability- Information that is more

accessible or available
Diagnosticity- helps us distinguish object from
another.
Salient attribute- attribute that is top of mind or
more important.
Vividness- It is presented as concrete words, pictures
or instructions tom imagine or through word of mouth
communication.
Goals- The consumers goals will determine which
attribute is recalled from memory.
Recall of Evaluations
-Because our memory for specific details decays
rapidly over time, we find overall evaluations or
attitudes easier to remember than specific attribute
information.
Recall of Experiences
-internal search can involve the recall of experiences
from autobiographical memory in the form of specific
images and the effect associated with them.

5 Key Aspects of the External Search Process

1. The Source of Information
2 The Extent of the External Search
3. The Content of the External Search
4. Search Typologies
5.The Process or Order of the Search
I. The Source of Information
- Where can we search for information?
Information about a certain product or service varies
from different sources. Consumers might get it from
either of the following:
Retailer Search- visits or calls to stores and dealers
including the examining of package information or
pamphlets about the brand, consumers believe they
save time by going to stores that are clusters together.
Media and Social Media Search- information from
advertising, online ads, manufacturer sponsored
websites and forums nd other types of marketer
produced communication as well as from Facebook,
twitter, blogs, and other social media sources.
Interpersonal Search-.advice from friends,
relatives, neighbors, coworkers, and/or other
consumers,whether sought in person, by phone,
online, text message, or in other way.
Independent Search - contact with independent
sources of information such as books, non brand
sponsored websites like shopping.com, government
pamphlets or magazines.
Experiential Search- using product samples or
product service trials such as test drive for cars, and
experiencing the product online.
Internet Sources
Throught Internet, consumers can search mounds of
data online, locate any details needed to make
purchase decisions and buy. In fact, consumers can use
the internet to get information from all five of the
sources just mentioned.
Information Overload

 Consumers today have access to so much

information that they can actually become overloaded.
An overload can lead to a decline in decision quality.
Despite potential overload, does decision quality
suffer when consumers desire more options?
- Some research indicates that choice overload can
occur in situations where the problem is complex and
the consumer has difficulty dealing with complexity.
- Other research suggests that increasing the number
of options does not generally reduce choice quality.
Thus, marketers should always be sensitive to the
amount of information presented in order tk ensure
that overload does not occur.
Simulations
Advances in technology and graphics have
dramatically improved the online experience. Website
developers can now stimulate the retail experience as
well as product trials by creating site that incorporate
special and interactive effects including audio, video,
zoom, panaromic views, streaming media, and the 3D
features.
Creating a virtual product experience has a positive
effect on consumer product knowledge and brand
attitude thereby reducing perceived risk , and
increasing purchase intention.
The Online Community
People with common interest related to products or
services go online to share ideas by using websites,
discussions forum, text chat, etc.

3 Types of Causal Factors in Processing

Information
A. Motivation to process information
As motivation to process information increases,
external search will be more extensive. There are six
factors that can increase the motivation to conduct an
external search, and these are the following:
1. Involvement and Perceived Risk
the relationship between the situational involvement
(a response for a particular situation ) , and enduring
involvement ( an ongoing response ).
2. Perceived costs and benefits resulting from
the search
External search activity is also greater when its
perceived benefits are high relative to its costs.
3. Nature of the Consideration Set
If consideration set contains a number of attractive
alternatives, consumers will be motivated to engage jn
external search to decide which alternative to select.
4. Relative Brand Uncertainty
When consumers are uncertain about which brand is
the best, they are more motivated to engage in
external search.
5. Attitudes toward the search
Some consumers like to search for information and
do so extensively. These consumers have positive
beliefs about values and benefits of their search.

Most common interactions focus on product

recommendations and how to use it advice.

There are two groups of Internet searchers:

II. The Extent of the External Search

Experienced Searchers- most enthusiastic and

heaviest users of the internet

How much do we engage in external search?

Examining how much information consumers acquire
prior to making a judgment or decision.
The degree of such search activity ud usually quite
limited even for purchases. With more consumers
shopping online, search activity is increasing because
online sources are very consistent.
Searching Goods and Experience Goods
distinguished.
When searching experience goods ( products that
can't be easily evaluated until after purchase and use)
consumers tend to dig into details and spend some
time on each web page.
When researching search goods ( products that can
be evaluated before purchase or use) consumers tend
to cast the net wider, searching more sites but
spending less time on each web page.

Moderate and Light Users- sees the internet as a

source of information only, and not a source of
entertainment or fun.
6. Level of Discrepancy of New Information
Whenever consumers encounter something new in
their environment, they will try to categorize it by
using their stored knowledge.
B. Ability to Process Information
Having the ability to process information includes
different variables that might affect the extent of
external information search. These are the following:
1. Consumer knowledge
Common sense suggests that expert consumers
search less because they already have more complex
knowledge stored in their memory.

There are two types of consumer knowledge, first is

the subjective knowledge which pertains to the
consumer's perception about what he or she knows
relative to what others know. Then the other one is the
the objective knowledge, the actual information
stored in memory that can be measured with a formal
knowledge test.
2. Cognitive Abilities
consumers with higher basic cognitive abilities, such
as high IQ, and the abilitt to integrate complex
information, not only are more likely to acquire more
information but are also able to process these
information in a more complex way.

3. Demographic Factors
Consumers with higher education tend to search more
than the less educated consumer. It is because the
former have atleast moderate level of knowledge and
better access of information sources.
C. Opportunity to Process Information
Four Situational factors affecting the search process
1. The amount of information - can vary greatly
depending on the number of brands in the market, the
attribute information about a brand, the number of
retail outlet, and the diverse sources of information
available.
2. Information format- sometimes information is
available from different sources, but consumers must
spend considerable effort to collect it.
3. Time availability - Consumers who have face no
time restrictions have more opportunity to search
information.
4. Number of items being chosen- when consumers
are making a decisio about multiple items, research
suggests that they will conduct a more extensive
research with less variability in search patterns.
Some marketers use QR codes in their various
marketing elements so that consumers can get more
information via cell phone.
Marketing with QR Codes

how many are repeat visitors and how many click to

the brands website.
Dont:

Let design overpower the code consumers should

be able to see and scan the QR code wherever its
placed
Post once and forget it change the content from
time to time to encourage repeat visitors and
provide additional information if and when
consumers search again
Link to content not valued by the audience reward
customers for taking the time to scan the code by
offering interesting
Miss the chance to extend the relationship invite
consumers who scan the code to subscribe to an enewsletter or like the brand on Facebook special
offers, product specifications, and more details

III. The Content of the External Search

What kind of Information Is Acquired in External
Search?
Brand Name Information brand name is the most
frequently type of information because it is the central
node around which other information can be organized
in memory.
Price Information price is often the focus of
consumer search because it tends to be diagnostic and
can be used to make inferences about other attributes
such as quality and value.
Information about other attributes consumers will
search depends on which attributes are salient and
diagnostic in the offering category. Consumers are
more likely to access information that Is relevant to
their goals.
4. Search Typologies
Is External Search Always Accurate?
- consumers can be just as biased in their search for
external information as they are during internal search.
In particular, consumers tend to search for external
information that confirms rather than contradicts their
overall belief.

Do:

Have a purpose what is the purpose of the QR

code
Explain what will happen Let consumers know why
they should scan the code
Plan for the small screen Whatever content you
offer, be sure it looks good shrunk to the size of a
phone screen
Monitor and evaluate QR code usage track how
much time they spend with the information. And

5. The Process or Order of the Search

How Do We Engage in External Search?
- External search follows a series of sequential steps
that can provide further insight into the consumers
decision. These steps include orientationgetting an
overview of the product display; evaluation

comparing options on key attributes; and verification

confirming the choice.

1.

Search Stages consumers access different sources

use different decisions criteria at different stages of the
search process. In the early stage, mass media and
marketer-related sources tend to be more influential,
whereas interpersonal sources are more critical when
the actual decision is made. They are more likely to
access information that is especially salient, diagnostic
and goal oriented. If they can recall those, they have
little need to search for it externally.

2.

Searching by Brand or Attribute

Two major types of processes:

Searching by brand in which consumers acquire all

the needed information on one brand before moving
on the next
Searching by attribute in which consumers
compare brands in terms of one attribute oat a
time, such as by price.

Consumer Reports rating charts, which provide

information about the top brands and best buys in
various product and categories in a simple format.