RemNote Community
Community

Consumer behaviour - Information Search and Online Behaviour

Understand how prior experience affects information search, the key online consumer behavior segments, and the ways the internet shapes the buying process.
Summary
Read Summary
Flashcards
Save Flashcards
Quiz
Take Quiz

Quick Practice

How does prior experience generally affect the amount of effort a consumer spends searching for information?
1 of 13

Summary

Consumer Experience and Information Search How Prior Experience Shapes Information Search When consumers have experience with a product category, they approach information search very differently than newcomers. Prior experience reduces search effort—experienced consumers simply don't need to gather as much information because they already understand the category, know the major brands, and can evaluate options more quickly. This happens because experienced consumers can process new information more efficiently. They have mental frameworks (called "schemas") already in place, so when they encounter product information, they can rapidly integrate it with what they already know. In contrast, inexperienced consumers must build these frameworks from scratch, which requires more deliberate effort and time. How Experience Affects What Products Consumers Consider Interestingly, experienced consumers have a larger consideration set at the product-category level. A consideration set is the group of brands or options a consumer actually thinks about when making a decision. Think about this: an experienced coffee drinker might seriously consider seven different brands of espresso machines when shopping, because they understand the category and know which features matter. A newcomer to coffee equipment might only consider two or three options because they don't know enough to meaningfully evaluate more. Inexperienced Consumers and Perceived Risk Inexperienced consumers face a distinctive challenge: they perceive higher purchase risk because they're unfamiliar with the category and may not know which brands are reliable. This unfamiliarity creates two interrelated problems: Lower confidence in their search abilities: Inexperienced consumers view themselves as less efficient information searchers. They worry they'll miss important details or misunderstand what they find. Uncertainty and anxiety: Not knowing what to look for or what's normal in a category creates a sense of risk around making the wrong choice. Because of these concerns, inexperienced consumers have much higher motivation to search for information. They want to find information; they just lack the skill to find it efficiently. This is an important distinction—motivation is high, but capability is low. Internet Consumer Behaviour Understanding Consumer Value: Product vs. Shopping Value When studying consumer behavior online versus offline, it's crucial to distinguish between two types of value: Product value refers to the intrinsic qualities of the product itself—its features, quality, durability, and performance. This value is largely the same whether a consumer shops online or offline. A high-quality laptop has the same inherent value whether purchased from a physical store or an e-commerce site. Shopping value, by contrast, varies dramatically between online and offline environments. Offline shoppers gain hedonic satisfaction—emotional pleasure and enjoyment—from the physical store environment. Walking through a store, interacting with displays, feeling the products, and even social interaction with other shoppers all contribute to a positive shopping experience. Online shoppers, however, value entirely different aspects: convenience (shopping from home at any time), price comparison efficiency (easily checking multiple retailers), and time efficiency (no travel, faster checkout). These are practical, utilitarian benefits rather than emotional ones. Classifying Online Consumers: The Lewis and Lewis Model Researchers Lewis and Lewis identified five distinct segments of online consumers based on their browsing and purchasing behavior: Directed Information-Seekers deliberately search for specific product information online. However, finding information online doesn't guarantee they'll actually make an online purchase—they might use the internet to research, then buy in a physical store. Undirected Information-Seekers are relative newcomers to online shopping. Rather than searching for something specific, they're more likely to browse and click on advertisements or promotional links they encounter. They tend to be driven by external prompts rather than internal goals. Directed Buyers come to the internet with a clear intention to purchase a specific product. Their journey is straightforward: they know what they want and proceed to find and buy it. Bargain Hunters are primarily price-sensitive. They search specifically for discounts, promotions, and deals. For this segment, the primary shopping value is cost reduction. Entertainment Seekers don't come to the internet primarily to shop. Instead, they're attracted to interactive, fun marketing activities like online games, videos, or social media experiences. They may eventually purchase, but entertainment is their initial motivation. Classifying Online Consumers: The Moe and Fader Typology A different research framework from Moe and Fader provides another way to think about online consumer segments, based on how much predetermined intent the consumer brings: Trackers arrive with a specific product already in mind. They search for that exact item, find the information they need with minimal effort, and complete their task. Their search process is focused and brief. Hunters know the product category they need (like "laptop" or "running shoes") but haven't decided on a specific brand or model. They require comparison information—seeing multiple options side-by-side—and often need advice or recommendations before choosing. Their search requires moderate effort and deliberation. Explorers have no predetermined product category in mind. They browse with significant uncertainty about what they're looking for. This segment needs guidance and discovery—they benefit from personalized recommendations, related product suggestions, and educational content that helps them understand what options exist. Their search effort is highest because they're navigating the most uncertainty. Understanding these segments matters because each requires different website design, information architecture, and marketing approaches. How the Internet Transforms the Buying Process The internet influences consumer decision-making at multiple stages of the buying process: Need Recognition: Online advertisements and content can trigger the recognition that a consumer has a need. Someone might not have been thinking about replacing their mattress until an ad appears in their social feed, suddenly prompting them to recognize the need. Information Search and Selection: Search engines and comparison websites dramatically reduce the friction in the information search stage. Consumers can instantly access detailed information about brands, prices, product specifications, delivery options, and customer reviews. What might have required visits to multiple physical stores and phone calls now happens in minutes online. Post-Purchase: Efficient online payment systems and fast distribution channels enhance the post-purchase experience. When an order arrives quickly and the transaction was smooth, this creates satisfaction that reinforces brand loyalty and makes the consumer more likely to purchase from that retailer again.
Flashcards
How does prior experience generally affect the amount of effort a consumer spends searching for information?
It decreases search effort.
How does increased experience typically impact the size of a consumer's consideration set at the product-category level?
It leads to a larger consideration set.
Why do inexperienced consumers often perceive a higher purchase risk when buying a product?
Due to unfamiliarity with the brand or category.
What is the relationship between a consumer's level of experience and their motivation to search for information?
Less experienced consumers have higher motivation to search.
Which online consumer group consists of newcomers who are highly likely to click on advertising links and prompts?
Undirected information-seekers.
Which online consumer segment has a predetermined intent to buy a specific product?
Directed buyers.
How are bargain hunters characterized in terms of their online behavior?
Price-sensitive users seeking discounts and promotions.
What type of marketing activities primarily attract entertainment seekers online?
Fun, interactive activities (e.g., online games).
In the Moe and Fader typology, which consumers search for a specific product and require minimal effort once they find it?
Trackers.
How do hunters differ from trackers regarding their information needs?
They know the category but need comparison lists and advice before deciding.
Which Moe and Fader consumer type browses with high uncertainty and no predetermined category?
Explorers.
What role do online advertisements play in the initial stage of the buying process?
They can trigger need recognition.
Which two online factors are highlighted as ways to enhance post-purchase satisfaction and brand loyalty?
Efficient payment and fast distribution channels.

Quiz

How does prior experience affect the amount of effort consumers spend searching for information?
1 of 9
Key Concepts
Consumer Behavior Insights
Consumer Experience (marketing)
Consumer Consideration Set
Consumer Risk Perception
Information Seeking Behavior
Online Consumer Typology
Online Shopping Dynamics
Online Consumer Value
Online Shopping Segmentation
Search Engine
Comparison Shopping
Online Advertising