MOD 7 - CH 15

Question 1

What is internal information search?

Answer 1

Internal information search involves using relevant information from long-term memory to identify potential solutions to a problem. This could include recalling known solutions, characteristics of solutions, and methods to compare them.

Question 2

What is external information search?

Answer 2

External information search occurs when internal information is insufficient to resolve a problem. It involves seeking information from independent sources, personal sources, marketers, or product experiences to help solve the problem.

Question 3

How do internal and external searches relate in decision-making?

Answer 3

Internal search often guides external search by providing decision constraints (e.g., budget limits) or must-have attributes. Even in extensive external searches, internal search typically helps narrow down the options.

Question 4

How does purchase involvement affect the amount of information search?

Answer 4

Purchase involvement determines the extent of the search. Higher involvement leads to more extensive external search (as in extended decision-making), while lower involvement results in less search (as in nominal decision-making).

Question 5

What is nominal decision-making?

Answer 5

Nominal decision-making involves minimal search. The consumer typically recalls a single satisfactory solution from memory and purchases it without further evaluation or external search.

Question 6

What is extended decision-making?

Answer 6

Extended decision-making involves extensive external search. The consumer evaluates multiple alternatives across various criteria, using information from many sources to make an informed decision.

Question 7

How does limited decision-making differ from nominal and extended decision-making?

Answer 7

Limited decision-making involves a moderate amount of external search. Consumers may be aware of several solutions to a problem but only conduct a limited search and evaluation before making a decision.

Question 8

What is ongoing search, and how does it differ from search triggered by problem recognition?

Answer 8

Ongoing search is a continuous process where consumers seek information for future use or because they enjoy the process itself. It occurs even in the absence of an immediate problem, such as when a consumer keeps up-to-date on tennis products despite not needing new equipment.

Question 9

What role does prior learning play in external search?

Answer 9

Prior learning and previous searches can limit the need for additional external search. Consumers may have already gathered sufficient information, so new searches are only conducted when new information or a different problem arises.

Question 10

What is the relationship between internal search and external search in extended decision-making?

Answer 10

In extended decision-making, internal search helps define the criteria and constraints for evaluating options, while external search provides a broader range of alternatives and detailed information to make the final decision.

Question 11

How can external search be influenced by a consumer’s involvement with a product or activity?

Answer 11

A consumer’s involvement with a product or activity can drive ongoing search for information. For example, someone passionate about tennis might continually search for tennis-related products, even without a specific problem to solve.

Question 12

What types of information do consumers search for when making a decision?

Answer 12

Consumers search for information on the following:

1. The appropriate evaluative criteria for solving a problem.
2. The existence of various alternative solutions.
3. The performance level or characteristics of each alternative solution on each evaluative criterion.

Question 13

What are evaluative criteria in consumer decision-making?

Answer 13

Evaluative criteria are the features or characteristics that consumers consider important when making a decision about a product or service. These criteria help assess which alternatives best meet their needs.

Question 14

How does internal search play a role in evaluating criteria?

Answer 14

Internal search involves recalling relevant information from memory, such as past experiences or previously known features, to determine the characteristics or attributes a consumer desires in a product.

Question 15

What is external search in consumer decision-making?

Answer 15

External search occurs when a consumer looks for additional information outside of their own knowledge, such as asking friends, reading reviews, visiting websites, or speaking with salespeople to learn more about the alternatives available.

Question 16

How does a consumer determine which features they want in a product?

Answer 16

A consumer determines desired features through internal search (recalling past experiences) and external search (seeking advice, reviews, or product information) to establish the evaluative criteria for making a choice.

Question 17

How does a consumer evaluate the performance of different alternatives?

Answer 17

Consumers evaluate alternatives by comparing the performance or characteristics of each option based on the criteria they have identified as important (e.g., battery life, processing speed, price).

Question 18

What are the four categories of decision alternatives in consumer decision-making?

Answer 18

The four categories are:

1. Awareness set
2. Inert set
3. Inept set
4. Evoked set (or consideration set)

Question 19

What is the awareness set in consumer decision-making?

Answer 19

The awareness set consists of all the brands or products a consumer is aware of, but it does not necessarily mean that they are considering these alternatives for purchase.

Question 20

What is the inert set in consumer decision-making?

Answer 20

The inert set consists of brands or products that the consumer is aware of and views in a neutral manner. These brands may be acceptable if the consumer’s favorite option is unavailable, but the consumer does not actively seek them out.

Question 21

What is the inept set in consumer decision-making?

Answer 21

The inept set consists of brands or products that the consumer is aware of but views negatively. Consumers are unlikely to accept positive information about these alternatives, and they typically avoid considering them.

Question 22

What is the evoked set in consumer decision-making?

Answer 22

The evoked set (or consideration set) consists of the brands or products a consumer actively considers for solving a particular problem or fulfilling a need. These are the alternatives that are evaluated for purchase.

Question 23

How does the evoked set vary with usage situations?

Answer 23

The evoked set can change depending on the context in which the product is used. For example, pancakes might only be in the consideration set for weekend breakfasts, but premade, toaster-ready pancakes might be considered for weekday mornings.

Question 24

What happens if a consumer does not have an evoked set or is unsure about it?

Answer 24

If a consumer lacks an evoked set or is unsure about it, they are likely to engage in external search to discover additional alternatives and build a more complete set of options.

Question 25

How does the awareness set compare to the evoked set?

Answer 25

The awareness set is usually larger than the evoked set. Consumers are aware of more brands than they actually consider for purchase, and marketers focus on moving their brand into the evoked set through persuasive strategies.

Question 26

How does external search influence the evoked set?

Answer 26

If a consumer lacks sufficient options in their evoked set, they will engage in external search to discover additional alternatives that could be suitable for their needs.

Question 27

What are the five primary sources of information available to consumers?

Answer 27

1. Memory of past searches, personal experiences, and low-involvement learning 2. Personal sources (friends, family, others) 3. Independent sources (magazines, consumer groups, government agencies) 4. Marketing sources (sales personnel, websites, advertising) 5. Experiential sources (inspection or product trial)

Question 28

How does the Internet contribute to information search in consumer decision-making?

Answer 28

The Internet gives consumers unprecedented access to information. It is the number-one tool for research before purchases and is crucial for comparison shopping, reading reviews, and finding product-related details.

Question 29

What is the impact of online search on offline sales?

Answer 29

Consumers who research products online are more likely to make offline purchases if the website provides relevant product information. The Internet influences both online and offline buying behavior, enhancing total sales.

Question 30

How does online search affect in-store purchases?

Answer 30

Consumers who conduct online research are likely to spend more in-store. In fact, 94% of online purchases are preceded by online search, and 74% of offline purchases are also influenced by prior online searches.

Question 31

What is the role of comparison shopping sites and shopping bots?

Answer 31

Comparison shopping sites help consumers find the best deals by comparing prices, features, and brands. Shopping bots automate this process, making it easier for consumers to evaluate alternatives based on various criteria.

Question 32

What is behavioral targeting in online advertising?

Answer 32

Behavioral targeting uses consumer data from online behavior, such as browsing history, to place relevant ads in front of the right audience. It increases ad effectiveness by targeting individuals based on their interests and online actions.

Question 33

What challenges do marketers face with information overload on the Internet?

Answer 33

With the vast amount of information online, consumers can become overwhelmed. Marketers need to develop specialized tools, like comparison sites or interactive ads, to help consumers filter information and make informed decisions.

Question 34

What is the "view-through effect" in online advertising?

Answer 34

The "view-through effect" occurs when consumers visit a website due to exposure to an online ad but do not click on it immediately. These indirect visits are important for understanding the long-term impact of online advertising.

Question 35

How does e-commerce integration affect marketing strategies?

Answer 35

E-commerce integration with existing channels allows marketers to drive online traffic to company websites and enhance customer engagement. Strategies include using banner ads, email, and social media to both push information to consumers and drive them to more detailed information.

Question 36

Why is it important for marketers to target ads based on relevance?

Answer 36

Targeted ads are more effective because they meet the specific needs and interests of consumers, increasing engagement and improving click-through rates. Personalized ad placement boosts the relevance of the message and drives better results.

Question 37

What is the role of search engines in online consumer behavior?

Answer 37

Search engines are heavily used by online consumers, making search-related marketing efforts, such as search engine optimization (SEO) and paid search ads, the largest category of digital marketing.

Question 38

What is Search Engine Optimization (SEO)?

Answer 38

SEO refers to techniques used to ensure that a company’s web pages are accessible to search engines and optimized to increase their chances of appearing in the top search results for relevant terms.

Question 39

Why is SEO critical for businesses?

Answer 39

SEO is vital because search results are often dominated by the first few listings, and appearing on the first page of search results can significantly increase a company's visibility and potential revenue.

Question 40

What are “organic” search results in SEO?

Answer 40

Organic search results are those that appear naturally based on the search engine's algorithm, without being paid for, as opposed to sponsored or paid listings.

Question 41

How does paid search advertising work?

Answer 41

In paid search, companies pay for sponsored listings on search engines, ensuring their web pages appear at the top of search results for specific keywords.

Question 42

What are some key strategies to improve SEO for websites?

Answer 42

Strategies include keyword selection, ensuring the website is accessible to search engines, focusing on relevant content, and optimizing URLs, titles, and metadata.

Question 43

How does mobile search differ from traditional search?

Answer 43

Mobile search often involves location-based queries and the use of mobile apps, whereas traditional search is generally more desktop-oriented and location-neutral.

Question 44

What is local mobile search?

Answer 44

Local mobile search refers to searches made on mobile devices that are tailored to the user's current or planned geographic location, such as looking for nearby restaurants or stores.

Question 45

How does local mobile search benefit consumers and marketers?

Answer 45

Consumers benefit from location-specific results (e.g., nearby businesses, directions, contact info), while marketers can target local customers with location-based ads, improving relevance and engagement.

Question 46

What is external information search?

Answer 46

External information search refers to the process of seeking information outside of personal knowledge or experience, often from various sources, before making a purchase decision, especially for major purchases like appliances, services, or automobiles.

Question 47

Why do marketers care about external information search?

Answer 47

Marketers are interested in external search because it gives them direct access to consumers' decision-making processes, influencing their buying decisions.

Question 48

What are the key dimensions of information search that influence marketing strategies?

Answer 48

The two key dimensions are: 1. The type of decision (nominal, limited, or extended decision making) influencing the level of search. 2. The nature of the evoked set (whether the brand is already considered by the consumer) influencing the direction of the search.

Question 49

What is the goal of the Maintenance Strategy in marketing?

Answer 49

The goal of the Maintenance Strategy is to maintain habitual purchasing behavior by ensuring consistent product quality, avoiding stock-outs, and using reinforcement advertising. It focuses on defending against competitor tactics and encouraging repeat purchases from loyal customers.

Question 50

What is the objective of the Disrupt Strategy in marketing?

Answer 50

The Disrupt Strategy aims to break habitual decision-making patterns, especially when the brand is not part of the consumer's evoked set. This is typically achieved through attention-grabbing advertising, free samples, coupons, and distinctive packaging to encourage consumers to reconsider their usual choices.

Question 51

What is the goal of the Capture Strategy in marketing?

Answer 51

The Capture Strategy focuses on attracting consumers who engage in limited decision making. It seeks to capture a significant share of purchases by providing accessible information (e.g., price, availability) at the point of purchase or through accessible media like websites, mobile apps, and local media.

Question 52

What is the objective of the Intercept Strategy in marketing?

Answer 52

The Intercept Strategy aims to catch the consumer's attention during their information search, especially if the brand is not part of their evoked set. It uses local media, in-store displays, coupons, and targeted advertising to intercept consumers during their decision-making process.

Question 53

What is the goal of the Preference Strategy in marketing?

Answer 53

The Preference Strategy focuses on influencing consumers who engage in extended decision making and already consider the brand in their evoked set. It involves creating strong brand positioning on key attributes and providing detailed information through various channels (e.g., advertising, websites, sales personnel).

Question 54

What is the goal of the Acceptance Strategy in marketing?

Answer 54

The Acceptance Strategy aims to move the brand into the consumer’s evoked set when it’s not initially considered. It often includes long-term advertising, trial offers, and search engine optimization (SEO) strategies to encourage consumers to seek out more information about the brand.