Marketing Study Notes
Information Search * Information can be defined as the predictive value of a stimulus * The perceived stimuli are the data that composes information * Data is interpreted in relation to the problem recognised by the consumer * Selective exposure * Stimuli that predict problem resolution contain information * Stimuli that do not predict problem resolution are just noise
Note the influence of consumer goals on information value of a stimulus. * Information gathering is influenced by * Types of information search * Sources of information * Amount of search
Marketing strategies must respond to the influences on information gathering. * Types of information Search * Purchase related v. ongoing search (need to know v. interest) * Internal v. external (memory v. environment) * Active v. passive (deliberate v incidental)
Sources of Information * Source credibility is crucial to preference construction * Degree of belief in the accuracy and completeness of information
Amount of search * Costly: physically and cognitively * Consumers have limited resources and ability to process information
Objectives
1. Maximise utility (i.e.: decision accuracy ) 2. Minimise effort (i.e.: search costs)
Trade-off between 1 and 2 is called “satisficing” behaviour * Factors: * Problem representation * Involvement, perceived risk * The consumer’s prior expertise * Processing capacity * Market characteristics * Situation characteristics
Processing capacity: * Consumers vary in their ability to process information. In most cases consumer will not be able to process more than 3-5 separate pieces of information at a time. * Consumers make poorer choices, or stop searching, with greater amounts of information available (threshold effects)
Market Characteristics: * Price variation (potential saving)
Note the influence of consumer goals on information value of a stimulus. * Information gathering is influenced by * Types of information search * Sources of information * Amount of search
Marketing strategies must respond to the influences on information gathering. * Types of information Search * Purchase related v. ongoing search (need to know v. interest) * Internal v. external (memory v. environment) * Active v. passive (deliberate v incidental)
Sources of Information * Source credibility is crucial to preference construction * Degree of belief in the accuracy and completeness of information
Amount of search * Costly: physically and cognitively * Consumers have limited resources and ability to process information
Objectives
1. Maximise utility (i.e.: decision accuracy ) 2. Minimise effort (i.e.: search costs)
Trade-off between 1 and 2 is called “satisficing” behaviour * Factors: * Problem representation * Involvement, perceived risk * The consumer’s prior expertise * Processing capacity * Market characteristics * Situation characteristics
Processing capacity: * Consumers vary in their ability to process information. In most cases consumer will not be able to process more than 3-5 separate pieces of information at a time. * Consumers make poorer choices, or stop searching, with greater amounts of information available (threshold effects)
Market Characteristics: * Price variation (potential saving)