Web Systems Design and Online Consumer Behavior [Electronic resources] نسخه متنی

Conceptual Framework of Online Search Behavior

“Human rational behavior is shaped
by a scissors whose two blades are the structure of task environments and the computational
capabilities of the actor.” (Simon, 1990, p. 7)

As the opening quote illustrates, consumer behavior is determined by the interaction between
the properties of personal information processing systems and the properties of task environments.
Consumer decision processes are constructive in nature — constructed by the decision makers
themselves (Bettman et al., 1998) as well as the context of the particular external environment
(e.g., information presentation format, time pressure) in which the decisions are made (Bettman,
Johnson, Luce and Payne, 1993; Bettman and Kakkar, 1977; Coupey, 1994; Payne, 1982).

From the perspective of consumers, the Internet has changed their relationship with sellers
because of the unprecedented increase in the number of choices and levels of control over the
message (Sheth and Sisodia, 1999). It has also changed the decisionmaking environment by the
amount, type, and format of information available to consumers (Alba et al., 1997; Bakos, 1997)
because it provides tools for information storage, for information search and for decision
analysis. Tools such as bookmarks, search engines, and decision aids (shopbots) are likely to
influence consumer information search behavior. In addition, the Internet has transformed consumer
behavior in two ways: (1) transformation of the consumers into online shoppers that requires the
usage of computers, and (2) transformation of the physical stores into a marketspace that is
information technology intensive (Koufaris, Kambil and LaBarbera, 2001). In order to understand
online consumer behavior, it is necessary to include the interaction between the combined roles of
consumer/computer user and information technology provided by the online stores. Personal factors
such as domain and system expertise as well as system factors such as information load and
interruptions will impose certain search costs on consumers and influence online information
search.

As a market discontinuity (Mahajan and Wind, 1989), the Internet is likely to have a profound
effect on how consumers construct and adjust their decision-making processes appropriately to the
new decision-making environment. How are expectations about changes in consumer search behavior
being realized in an online environment? The remainder of this chapter presents a conceptual
framework to understand consumer search behavior in an online environment.

Figure
1-2 proposes a conceptual framework of consumer information search in an online
environment. In the consumer decision process, information search begins when consumers recognize a
purchase problem. To solve this problem, consumers have the choice of searching for information
from two channels. They can search for information exclusively online or off-line, or in
combination (Peterson et al., 1997). The specific choice of information channels is likely to
influence the amount of information searched in the Web-based market (Peterson et al., 1997). The
process of online information search is characterized by the human-computer interaction termed
navigation, which is influenced by system and personal factors. Consequently, these factors will
affect the amount of information in an online environment.

Figure 1-2. Conceptual framework
of online search behavior

Consumer Channel Choice

With the Internet as an additional option, consumers can choose (1) whether to focus on a
product or service category, or a brand at any stage of the information acquisition process, (2)
whether to use the Internet or a conventional retail channel for information acquisition, and (3)
whether to use the Internet or a conventional retail channel for the final transaction and brand
acquisition (Peterson et al., 1997). There are four possible choice outcomes:

• 
  

  Search online and purchase off-line



• 
  

  Search off-line and purchase online



• 
  

  Search and purchase online



• 
  

  Search and purchase off-line

This chapter only focuses on consumers’ decision to search for information and purchase
online.

Purchasing online requires consumers to change their conventional behavior. Behavioral change
is difficult and often requires incentives such as explicit monetary savings or increased
convenience. Several empirical studies have attempted to provide some insights on the factors
influencing consumers to engage in online shopping (Bellman et al., 1999; Degeratu et al., 1999;
Jarvenpaa and Todd, 1997).

In their survey, Jarvenpaa and Todd (1999) found that convenience was the single most salient
benefit of online shopping. Similarly, Degeratu et al. (1999) found online shoppers to have higher
incomes and higher opportunity costs. They are likely, therefore, to be more convenience sensitive
and less price sensitive. Bellman et al. (1999) also found that online buyers have “wired
lifestyles,” are “time starved,” and “seek new ways to find information and buy things that are
faster and more convenient.” In summary, these studies suggest that consumers who decide to shop
online often expect minimal external search cost. Therefore, when consumers perceive that shopping
off-line is inconvenient, they are likely to use the Internet for information acquisition. In other
words, for consumers to search for information online, the perceived external search cost is lower
in an online environment than in the physical market.

In the online environment, external search costs have been significantly reduced to mouse
clicks. However, information in such an environment is highly visual and perceptual. It is likely
to increase cognitive search costs that affect consumers’ search for information. In addition,
information search online is characterized by human-computer interaction requiring consumers’
ability and knowledge to acquire information (Hodkison et al., 2000; Spence, 1999). In order to
search online, consumers must not only be able to locate the Web sites of interest and move between
sites but also to acquire information within the sites. There are several ways to identify the
location of Web sites: (1) via search engine, (2) via manual entry of a URL, and (3) via memory-aid
of a browser such as bookmarks. Given the vast amount of information available on the Internet,
these search techniques will affect consumer information search (Hodkison et al., 2000). As a
result, the Internet imposes a certain degree of cognitive search cost on consumers, negatively
impacting the amount of information searched.

Effects of Personal and System Factors

In the information-rich online environment, consumers need to be transformed as computer
users as well (Koufaris et al., 2001). They must be able to identify the location of information
and employ efficient search techniques, hence, personal variables such as domain and system
expertise are likely to affect consumers’ search for information. Further, coupled with personal
variables, system factors such as interruption and information load are likely to impose search
costs on consumers and influence the amount of information search.

Personal Variables

Domain Expertise

Domain expertise involves knowledge that allows
consumers to solve problems quickly and effectively. It is defined as the ability to identify,
evaluate and exploit marketplace opportunities, and consists of mental representations which guide
consumer search behavior. The way-finding paradigm suggests that consumers have a cognitive map
built on three types of spatial knowledge — landmark, route and survey knowledge (Hodkison et al.,
2000; Spence, 1999). This cognitive map consists of a form of “general knowledge of the world that
aids humans in navigation tasks” (Dillion et al., 1993, p. 172). For example, consumers may have
some knowledge of the use of search engines and of the specific portal sites for a variety of
product offerings. Because of this cognitive map, consumers are able to “plan routes, avoid
becoming lost, or identify shortcuts” (Dillion et al., 1993, p. 173) during information search.
Consumers with broader cognitive maps are able to identify information easily and
efficiently.

Apart from the way-finding paradigm, both the economics and psychology literature
conceptualize knowledge as product-related knowledge including objective and subjective knowledge
(Brucks, 1985). Objective knowledge is conceptualized as what a consumer actually knows, whereas
subjective knowledge is defined as the consumer’s perception of the amount of information he/she
knows about the product category.

The conceptual relationship between ability and external information search activity is
similar (Cacioppo & Petty, 1986). Perceived ability to search is defined as “the perceived
cognitive capability of searching for and processing information” (Spreng and Schimt, 1996, p.
248). It involves cognitive processing ability, knowledge of procedures for searching, and
knowledge of sources of information (Brucks, 1985). Empirical studies have found knowledge to be
positively related with information search in the physical environment (Alba and Hutchinson, 1987;
Putrevu and Ratchford, 1997; Urbany, Dickson and Kalapurakal, 1996).

It is necessary to note that knowledge of the electronic environment could precede the
knowledge of product categories and thus play an important role in the process of information
search in an online environment. In order to search for information online, consumers must know
where to search for product
category information of interest. In this research, knowledge is broadly defined to
include knowledge of electronic markets as well as product categories. Unlike the familiar physical
environment, where consumers are exposed to the location of stores in a myriad of ways, exposure to
Web sites occurs from more active browsing or bookmarking behaviors. Since the Internet,
particularly online shopping, is a new phenomenon, identifying online stores is often aided by
directories from portals or advertising media. Therefore, consumers with a higher level of domain
expertise will search for more information between sites because they are able to effectively
locate the information and evaluate the information in the search process.

System Expertise

In order to search for information in an online environment, consumers must possess a basic
capacity to manipulate and interact with the physical interface of a search system. For example,
the abilities to begin and end, to read from the screen, to make selections from various types of
menus, and manage various functions on the computer are characteristics of system expertise. It is
defined as skills needed to use computers as well as navigate the WWW. As Ratchford et al. (2001)
point out, fixed cost to using the Internet is high. Not only do consumers need access to a
computer system and the Internet but also a considerable amount of knowledge is required.

Similarly, Hodkison et al. (2000) noted that consumers’ search techniques will seriously
affect their decision processes. Expectedly, computer skills as well as search techniques are
likely to influence consumers’ ability to efficiently locate and search for information and will
thus impact the level of perceived search cost.

System Variables

Information Load

The distinctive capability of the Internet is to provide access to a tremendous amount of
information, including information of low value to the consumer, such as inaccurate search queries,
recommendations based on the consumer’s previous purchase, unorganized information, etc. These may
increase information load and impose a cognitive processing burden on consumers. Information
overload has been found to influence the consumer decision process (Jocoby, 1974; Jocoby, Speller
and Berning, 1974) and decrease the amount of information search (Cook, 1993).

In addition, research by Jansen et al. (2000) with the Excite search engine found that
consumer queries on the Web are brief. Most users did not go beyond their first and only query.
Based on these findings, it is likely that high information load increases external search costs
and thus prevents consumers from accessing more information.

Interruptions

The Internet is an interactive information search and decision environment for consumers,
providing them with greater control over information. Features such as banner ads, pop-up windows,
and intelligent agents that make purchase recommendations are being used frequently by marketers to
push information, to attract consumer attention, and to promote sales. Other interactive features
such as surveys and user registration act as distractions to the consumers’ search process and
further affect their decision performance and satisfaction (Xia and Sudharshan, 2000).

Empirical studies on interruptions indicate they distract subjects from the current activity,
and demand the allocation of cognitive capacity for processing the interruption (Kahneman, 1973).
An interruption leads to extra time needed for the original task (Laird, Laird and Fruehling,
1983). Additionally, Norman and Bobrow (1975) suggest that interruptions distract attention and
place great demands on cognitive processing. In order to keep the consumer motivated, there must be
an appropriate level of interruption (Xia and Sudharshan, 2000). Beyond a certain threshold,
interruptions may become seriously dysfunctional. As the frequency of interruptions increases,
cognitive demand may become very high and the task may become onerous, causing severe frustration.
Therefore, it is likely to increase consumers’ perceived search cost and reduce external
information search.