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Information Search Internal Search— External Search—(Sources: Personal, Commercial, Public, Experiential) Non-Marketing Controlled— Marketing Controlled— Better-educated and higher income people seem to believe that marketing campaigns emphasize benefits while downplaying faults Level of information that is sought depends on: Perceived risk involved in purchase decision Knowledge of product/service Product Experience Level of Interest (ex. Running shoes vs. soda) Creates an “Evoked (consideration) Set” -- which options are you willing to consider – the most preferred alternatives Evaluation of Alternatives : Three Methods of evaluating Consideration set: Product attributes—exclude products that do not have what you want or do have what you don’t want Use Cutoff Criteria—Minimum or maximum levels that if violated will eliminate product (i.e. price, speed, dimensions) Rank attributes in order of Importance—what is most important and compare products based on those attributes If you add something to the evoked set then the consumer’s evaluation also changes Marketers want to figure out which attributes are most important Brand name— Car Warranty— Purchase Buy or Don’t Buy (Go/No-Go decision) Purchase Intention vs Purchase Decision Post-Purchase behavior Cognitive Dissonance—inner tension that a consumer feels because there is a difference between their values (price matters) and their actions/purchases (paid a lot for the high quality stereo). Ways to mitigate (with effective communication) Follow-up Guarantees Warranties Advertising product’s superiority over other brands Stages in Consumer Adoption Process (new Products) Awareness Interest Evaluation Trial Adoption Types of Adopters Innovators Early Adopters Early majority Late majority Laggards Geoffrey Moore- Chasm Theory Influence of Product Characteristics on Adoption Rate Relative Advantage- Compatability Complexity Divisibility Communicability Not Testable Types of Consumer Buying Decisions: Routine, Limited, and Extensive Based on Less Involvement to More Involvement Factors determining Level of Involvement Previous Experience Interest Perceived Risk of Negative Consequences (Financial, Social, Psychological) Situation—low involvement becomes high involvement (ex. Boss visiting) Social Visibility (ex. Designer labels) %eї*  % , . 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