PRESTON UNIVERSITY Mutahir bin yousaf 1611-208-002 Muhammad jameel 1611-209-002 Abdul ghani

ACKNOWLEDGEMENT We would like to thanks Sir, for giving us such an opportunity to stand in front of you all and to throw light on “ Search and evaluation” .

Thank you sir .

Topic Search and evaluation
Mutahir
           Search The Information search process Pre purchase search: Ongoing search Internal search: External search: Types of information Sources of information Amount of external search activity Perceived risk: Dealing with risk:

Muhammad jameel
          The information evaluation process Evaluation or choice criteria Reducing the range of alternatives: Evaluating alternatives: Decision: Noncompensatory decision rules: Disjunctive rule: Conjunctive decision rule: Lexicographic rule: Compensatory decision rule:

Abdul Ghani                 Marketing implications Studying the information search process: Determining sources of information: Warranty card: In Depth search: Decisive effectiveness: Contributory effectiveness: Ineffective: Influencing the consumer’s evoked set: Measuring evaluative criteria: Determining the importance of criteria used by consumers: Determining consumers evaluations of brand criteria performance: Determining consumers cue usage: Influencing consumers Evaluation: Altering cue characteristics: Altering information value: .

look over carefully in order to find something. .Search and evaluation Search To make a thorough examination of. explore.

improve or understand them better. taking into consideration the adopted criteria to enhance. activity or an object. .Evaluation evaluation as a systematic survey of values or features of a given programme.

consumers begin searching for information that will solve their problem or satisfy their needs or demands.The Information search process The first step in the consumer decision making model is the need recognition. a need or a demand. Steps Of Information search process Pre purchase search: Consumers engage in pre-purchase information seeking when they have identified a product need and are seeking information that will enable them to make better decisions and increase the probability of satisfaction with purchase outcome . Only after realizing a problem.

For example there may be consumers who are crazy about motorcycles.Ongoing search In ongoing information search consumers undertake search without a specific problem. They may or may not own the vehicle but may be interested in any information on motorcycles .

the consumer must be able to retrieve one’s restaurant from memory before it will be considered. For example for fast food restaurants. .Internal search: Internal search involves the consumer identifying alternatives from his or her memory. thus. For certain low involvement products. it is very important that marketing programs achieve “top of mind” awareness.

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Before buying a car. Thus. read reviews in Consumer Reports.External search: For high involvement products. the consumer may ask friends’ opinions.g. or news coverage. for example. consumers are more likely to use an external search. firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e. consult several web sites. web sites. and visit several dealerships.. through brochures. .

G etc . L.Types of information 1) About the existance and availability of different products and services: This type of information is required by a person when he is very less aware about different varieties of product or services of some specific product category E. LED Plasma tv of which company samsung.G want to purchase television but don’t know what type of eg LCD.

G 60 inch screen. black colour.2) Information required in forming evaluative criteria: Here information is required by the person in accordance to his/her needs . with waranty.taste etc to set certain standards to evaluate different products or services E.000 thousand Rs . within 90.

3) Information about characteristics of alternatives: Here the person seeks as much information as he can about all the alternative products so then he can finally compare those alternatives and selects one e. Model: 60PA6500.g LG 60" (152cm) Plasma TV. Includes: Widescreen. Full HD Display. 1yr warranty. 98703 Rs . HD Digital Tuner. 1920 x 1080 pixel resolution. USB Connector. Full HD Input.

IPTV. 158103 Rs . USB Connector. USB Recording. Full HD Display. Internet Connectivity. 1920 x 1080 pixel resolution. Includes: Widescreen. 3D Display. Model: PS64E550.Samsung 60" (152cm) 3D Plasma TV. Web Browsing. HD Digital Tuner.

company website etc 2) Consumer sources: here the person gets information from friends. packaging. advertising. relatives. family members and all those who are interpersonal communications not under the control of the marketer .Sources of information 1) Marketer.dominated sources: Here the person gets information from salesperson.

. government reports and publications from independent product testing agencies etc.3) Neutral sources: Here the person gets information from mass media.

If consumers realize that relevant information can be obtained quickly. the less necessary is an extensive external search. time-consuming.Amount of external search activity The easier it is to acquire relevant information. external search . they are unlikely to engage in a high-energy.

number of alternatives available.Factors influencing the amount of external search 1) Market conditions: Availability of information. . a) Price differences between brands are greater b) Style and appearance are perceived to be quite important c) It is suspected that substantial differences may exist between product alternatives. and the location of outlets are among the most triggering factors.

2) Buying strategies: Consumers mainly adopt various strategies to reduce external search and the factors are: a)Store loyalty b)Buy the product which already someone is using in their social circle. Under the influence of manufacturer promises of money back guarantee etc .

b)The subjective costs associated with the search. including time spent and anxiety while searching c) Persons ability to move in search of information d) His or her level of education the lower the level the lesser he will conduct external search. .Individual factors: The amount of external search is affected by the persons own characteristics a)Greater market experience with a product is associated than a lower degree of external search.

Situational factors: a)Urgency of a need b)Special opportunities available within certain time period c)store condition being crowded or not .

and modes of shopping .Perceived risk: Consumer may Perceive risk in relationship to information acquisition and processing constructs such as word-of-mouth behavior and opinion-leadership. store/brand loyalty. as well as to overt consumer behaviors such as new product adoption.

Situations influencing risk: Some of the major situations are a) First time purchase of a high cost product b) Uncertainty regarding which alternative to take c) When buying for some other person .

"Will this corn be as good as what I remember from last year or what I had last week?" If the customer is buying petunias.Types of risk: • There are six types of perceived risk: • Functional . this means. "Will they make my garden look the way I want it to look?" .Will the product perform as I expect? If the customer is buying sweet corn. the risk is.

.What will my peers think? If customers are buying sweet corn to eat in the privacy of their home. but ornamentals that bear poisonous fruit can also be a concern. "geek lives here". my children or my pets? The use of pesticides in the production of food crops is frequently the concern here. Social . it's like having a big sign in your yard for five months saying.Can the product hurt me. If they buy petunias and plant them in the front yard and petunias are socially out this year.Physical . the risk here is low.

Time .Can I afford the purchase? This is not a major problem for most people buying sweet corn or petunias.Am I doing the right thing? This can be a strong motivator in plant sales for the environmentally concerned or an impossible obstacle for the truly paranoid.• Psychological .How much time and effort may I expend to make this purchase? . It is a major obstacle for customers consider-ing a specimen plant or flowering trees that may cost $60 to $100. • Financial .

5) Store Image. 6) Free Sample. 10) Expensive Model. 7) Money-Back Guarantee. 4) Private Testing. 11) Word-Of-Mouth. 2)Brand Loyalty. 8) Government Testing.Dealing with risk: some of the ways to reduce perceived risk are 1) Endorsement. 3) Major Brand Image. .

The information evaluation process As the consumer is engaged in search activity he or she is also actively engaged in information evaluation: Evaluation or choice criteria: Here consumer sets choice criteria to evaluates a brand on the basis of his choice which he has set as standard for comparison like of plasma tv in which the consumer will evaluate all the characteristics of the brands on the standards of his choice criteria e. .g price. warranty etc. colour.

Reducing the range of alternatives: In this step during evaluation of brands the consumer will drop the brands which are not up to the mark of his choice criteria like the price of Samsung is above of his affordability so he will drop that and compare LG with other brands and then drop more brands which are not up to his standard in this way very less alternatives will be left to choose from .

Evaluating alternatives: The consumer keep going on evaluating alternative unless he has two or three alternatives are left in which he is confused to choose because all are upto the mark of his choice .

There are three noncompensatory decision rules.Decision: finally the consumer will choose one product which he thinks is best and in accordance with his choice criteria by following certain decision rules which are Noncompensatory decision rules: A type of consumer decision rule by which positive evaluation of a brand attribute does not compensate for (i.e. is not balanced against) a negative evaluation of the same brand on some other attribute. .

Disjunctive rule: A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each relevant product attribute. .

Brands that fall below the cutoff point on any one attribute are eliminated from further consideration .Conjunctive decision rule: A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated.

consumers first rank product attributes in terms of importance. . then compare brands in terms of the attribute considered most important.Lexicographic rule: A noncompensatory decision rule .

Compensatory decision rule: A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score .

Marketing implications Studying the information search process: For the marketer to understand how consumer works on information search process so he can make available the kind and quality of information which consumer seeks the marketer first has to understand about the sources of information used by the consumer .

Determining sources of information: Some of the sources through which marketer can get some information about the consumer are: Warranty card: Marketers can use waranty registration cards to get information about the consumer information search activities but it is limited it only tells place of purchase of a product. date of purchase of product but many questions are left unanswered .

In Depth search: One of the best method to determine sources of information of consumers is by doing in depth research in which most prominent method is by developing a questionnaries to ask specific questions • How did you learn about this new product • Why did you decide to buy this brand • With whom you have shared the information about this brand • Where else you have found the information about this brand .

One typology for comparing various information sources are: 1) Decisive effectiveness: The consumer evaluates this source as having a major impact on the decision process .Determining source influence: For the marketer to understand the influence of information sources on brand purchase intentions and fulfillment several steps of analysis are required.

Contributory effectiveness: The consumer evaluates this source as playing a specific role in the decision process. although it is not among the most important sources. Ineffective: This source is considered as having no particular role in the decision process .

• The evoked set refers to the number of alternatives that are considered by consumers during the problemsolving process.Influencing the consumer’s evoked set: • The consumer compares the brands and products that are in their evoked set. • The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. • How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked set? • Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. .

Measuring evaluative criteria: For the marketer to develop a successful marketing campaign he has to understand of what criteria consumer uses in their decision making process 1) Determining which criteria are used by consumers: • By directly asking consumers through questionnaires. • Through group discussions .

• Through exploratory survey • Through online blogs .

. • Another approach would be to use a semantic differential with pairs of adjectives characterizing the criteria. method whereby consumers would be asked to evaluate each criterion on a six point scale ranging from perhaps unimportant to important. such as high price. and low price.Determining the importance of criteria used by consumers: • A direct method for researching this could involve the use of rating scale.

in which respondents typically allocate 100 points across the evaluative criteria according to their judgment of each one’s importance.• A third approach involves what is known as a constant sum scale. .

Determining consumers evaluations of brand criteria performance: • Select samples of consumers and give them sample of products and then ask them how they will evaluate it on performance criteria .

Determining consumers cue usage: The marketer must understand the consumers cue usage in his/her decision making Three product cues that have been found to be the most important in consumers’ ratings of product quality: • physical appearance : Physical appearance of the product is important for the consumer and it becomes more important if the product is costly .

• brand : some customers are very much brand conscious in purchase decisions for a number of products Several studies have shown that consumers use high status or well-known brand names as indicators of apparel product quality .

• price : Price is important to consumers because it represents the sacrifice necessary to obtain goods. In other words. consumers generally have a preconceived acceptable price range . Perceived price may be described as the consumer’s judgment of the acceptability of the product’s price and is largely dependent on the consumer’s expected price.

Influencing consumers Evaluation: If the product is not well accepted in the market then the marketer have to change its position in the customers mind. Altering cue characteristics: • Making product packaging more eye catching • Changing the price of the product according to the mind set of its target market .

Altering information value: Rather than changing characteristics of a cue it may be possible to change the way consumers evaluate a product • Changing the message type like surf excel has done by spreading a message dirt is good when others are saying dirt is bad by doing this surf excel has successfully made a unique position in consumers mind .

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