2.3,2 SAMPLING IN CYBERSPACE
3. It is also more difficult to obtain adequate pre-purchase information about services
2.5.1 MODEL OF THE CONSUMER BUYING PROCESS
This model used by Rowley, J (2000), proposed by Engel et al (1990) and discussed by Brassington
& Pettitt (1997), outlines the consumer decision making process and then identifies the stages of information search and information evaluation as key preparatory stages to a decision, which then
leads to a purchase.
FIGURE 1. THE CONSUMER DECISION-MAKING PROCESS
Problem Recognition
Information Search
Information Evaluation
Decision
Post-purchase Evaluation
Source: Rowley J (2000), Journal of Consumer Marketing: Product search in e-shopping, vol. 17
no. 1, p21.
This model is applicable in the education sector as well. Many students, especially first time students are very concerned as to which institution offers the best programme. Universities and Technikons face competition in the form of self-study institutions and small colleges. Majority of the programmes offered are repeated in all the institutions and students have a range of choices to
make. This is where the external marketing along with the internal marketing of an institution is
important. First time students identify the problem that they need to study a particular course. If the
course
selected is for example, computer studies, they then proceed to the next step of identifying the different institutions that offers the programme. The information search is an important phase as the quantity and quality of information received is then evaluated in the next step. This then
eventually leads to a decision or choice of institution.
Through this information gathering, a relationship develops between the student (customer) and the institution (supplier). Norm Archer and Yufei Yuan (2000) developed a detailed seven-phase life cycle that shows activities between supplier and customer. However, their study was more orientated towards the business-to-business relationships. For the purposes of this study, this life cycle has been adapted to a five-phase cycle suit the education sector. The procurement life cycles
are shown in Table 2 below.
TABLE 2.5.1: CUSTOMER RELATIONSHIP LIFE CYCLE ACTIVITIES, FUNCTIONS,
TOOLS AND MODERATORS ,
Life Cycle Stage Process
Information gathering
Institution contact
Background Review
Consumption, maintenance and disposal
Renewal
Student Activities Searching, observation
Learning, evaluating, comparing
Evaluation
Learning, using, evaluating, feedback
Review, exam results,
registration
Institution
Function/activities Marketing:
advertising, student interaction
Marketing: sales:
selling
Service
Service, marketing, supporting,
training, updating
Lecture updates, syllabi,
announcements
Supporting Tools
Web vendors, catalogues, adverts
Interactive marketing, web sites, e-mail
Web service support
On-line info, web site service, interactive and network marketing Interactive and network marketing
Moderators
Word-of-mouth, competitors, corporate image, brand awareness, experience Service quality, performance, pass rate, customization, competition Reputation, experiences of other students Experience, evaluation, perceptions vs.
expectations
Experience, satisfaction, loyalty, competitors, switching costs Source: Archer N & Yuan Y (2000), Internet Research: Electronic Networking Applications and
In phase 1, the student searches for information on the programme offered at the institution.
Moderators influence the student's perceptions of the information collected, including word-of- mouth, competitors, corporate image of the institution, brand awareness and previous experiences with the institution. Thus, institutions can create a positive awareness by joining electronic marketplaces or advertising through the Web, where potential students can find information on the programmes offered or about the institution itself. This helps the prospective student to search for information more efficiently and to gain quick answers to any queries.
In phase 2, the student establishes a list of potential institutions, gathers more information about the programme and institutions, to determine if it suits his/her needs. If web technology is used to provide information on the institution's background, programme offered and services provided, then it is normally backed up by e-mail facilities to contact relevant staff. Competition is normally based either on price, reputation or other attributes. This is important as contact and reply enhances
the institution's reputation and further information can be supplied. Customization of a programme can occur and the student will either accept or reject.In phase 3, evaluation of the chosen institution can occur most often via contact with past or current students and staff. One of the ways that an institution can increase student trust is by providing testimonials by alumni and credentials gained by past students and staff. This is important as this a final stage of making a "sale" and here a student can either feel positively or negatively about the
institution.
Phases 4 and 5 are the basic registration and learning process involved in the institution. Here a student realizes during the course of the programme whether expectation has been significantly met.
If it has, then, the course is duly completed at the same institution. If it hasn't, then the student either changes course or institution that can reflect negatively on the entire institution.
Thus, information search greatly influences decisions on choice of institution and this impacts heavily on an institution's competitive advantage. It then becomes imperative that educational institutions make a greater effort in their marketing efforts to gain the greater market share.
The external marketing strategy emphasizes the pricing, promotion, positioning and the product itself. Institutions need to develop brand identity (quality image and high market profile) and information technology. This enhances the information search carried out by potential students as
seen in Table 1 life cycle stage process.
Mazzarol and Soutar (1999) have found that organizational expertise and learning was a source of competitive advantage. In the education sector, students select courses on reputation and expertise of teaching staff. It is important that educational institutions constantly update their knowledge and is either on par or a step ahead of industry demands thus giving students the confidence in choosing that particular institution. This is important in brand image, as students feel more confident in
choosing a particular institution that has staff with relevant and current degrees.Since the emergence of modern technology, the value of computers to the development of
competitive advantage has been emphasized. Ives and Jarvenpaa (1996) found that for education
institutions, information technology is emerging as a critical source of competitive advantage as the Internet allows them to offer their services globally. According to Earl (1988), he believes that management has to be duly committed to supporting the use of information technology for it to be effective. Unless senior management is willing to support the implementation of new technologies and accept the risks associated with it, the value of such technologies may be reduced (Leonard- Barton and Kraus, 1985). Considering that an educational institution is highly information intensive, information technology would be the answer that will be able to push the company forward."The basis ofdeveloping a competitive advantage lies with the development of marketing strategies at a number of levels that will generate or enhance distinctive competencies. Key outcomes in this regard are likely to be the creation ofan image ofquality, the generation ofa high market profile and development of offshore teaching operations, usually in coalition with overseas partners. The assembly and employment of suitably expert staff supported by information technology and an innovative culture, are also
likely to be vital parts ofa strategy implementation:'
(Mazzarol and Soutar, 1999, p296)