The four stage buying funnel (Awareness, Research, Decision, and Purchase) with explanations

The four stage buying funnel (Awareness, Research, Decision, and Purchase) with explanations

Source publication
Article
Full-text available
In this research, we evaluate the effectiveness of the buying funnel as a model for understanding consumer interaction with keyword advertising campaigns on web search engines. We analyze data of nearly 7 million records from a 33 month, $56 million (US) search engine marketing campaign of a major US retailer. We classify key phrases used in this c...

Context in source publication

Context 1
... buying funnel is the consumer parallel to the organization"s sales funnel, which frames the customer buying process from the producer"s point of view with the aim of funneling the potential customers to a successful transaction [Dubberly and Evenson 2008]. Although there are various labels for each stage, one common labeling system is Awareness, Research, Decision, and Purchase (see Figure 1), which is the labeling scheme that we use in this research. ...

Citations

... Search engine marketing (SEM) is a marketing practice that firms use to promote their products or services on the Search Engine Results Pages (SERP). Search engine marketing, also called keyword advertising, focuses on the allocation of ads that appear on the SERP to users' needs (Jansen and Schuster 2011) with advertisers paying the search engine an amount for each user's click. 2 Firms invest in advertising on search engines with the aim of increasing their visibility among the results of an online search (Berman and Katona 2013). This investment is based on a specific keyword (search query) that users use in their search. ...
Article
Full-text available
Sponsored advertising on search engines is one of the fastest growing online advertising marketplaces. The space available for paid ads, or positions, is sold using auctions and payment is calculated considering the number of clicks each position receives. Two mechanisms are generally used in position auctions: Generalized Second Price (GSP) (e.g. Google, Yahoo!) and Vickrey–Clarke–Groves (VCG) (e.g. Facebook). To understand which mechanism guarantees the highest payoff to market players (search engines and advertisers), a multi-agent simulation is developed in Netlogo. Using the generated data, a supervised learning-based analysis on search engines and bidders’ payoffs is made using linear regression models and regression trees. Results suggest that the average payoff for auctioneers (the search engines) and bidders (the advertisers), the price for each position, and first bidder’s payment, are significantly different in the GSP and VCG mechanisms. We also found the mechanism that generates the highest payoff for the search engine is the VCG, while for the bidders it is the GSP.
... Analysis of internet search volumes on Googleis a well established methodology for measuring public interest and has been used in a variety of topics, including conservation (Roll 2016, Mavragani et al 2018, Correia et al 2021). Information seeking is a crucial component of intention and behavior formation (Jansen & Schuster 2011, Veríssimo et al 2020, and since awareness is a prerequisite for interest, internet search data can provide valuable insights pertaining to Aichi target 1. Previous research leveraged search engine data to evaluate progress towards Aichi target 1 (e.g., Cooper et al. 2019; Buchanan et al. 2020). ...
Preprint
Full-text available
The first target of the Convention for Biological Diversity aimed to increase public awareness towards the values of biodiversity and actions needed to conserve it - a key prerequisite for conservation support. Nevertheless, monitoring success in achieving this target is difficult. Here, we used Google search volume data to evaluate interest in biodiversity and its conservation, and investigated drivers influencing interest across countries. We found that global interest in biodiversity increased, driven mostly by interest in charismatic fauna. However, interest in conservation actions decreased since 2019, driven mostly by reduced interest towards national parks, likely due to the 2019 pandemic. Economic inequality had a negative effect on interest in biodiversity and conservation, while purchasing power had an indirect positive effect through increased education and research. We suggest that increased outreach and education efforts towards biodiversity and conservation is needed, particularly in countries with high economic inequality and weaker education systems.
... Specifically, we analyze the differences between mobile and desktop consumer searching behavior and how this reflects progression along the stages of the funnel. The conversion funnel is a model describing the cognitive stages consumers go through in their journey towards a purchase, which typically includes four stages: (i) awareness, in which the consumer becomes aware of a need and wants to address this need with a product or a service; (ii) research, in which the consumer becomes interested and engaged in information-seeking regarding products/services that can address the need; (iii) decision, in which the consumer defines a set of options and enters a process of deciding among the options in the set; and finally, (iv) purchase, in which the consumer has decided on a particular product/service she is interested in purchasing and takes the next steps towards completing the purchase (Howard and Sheth, 1970;Jansen and Schuster, 2011;Lee and Seda, 2009). While current understanding of the user conversion funnel is mostly focused on desktop devices, our study extends the analysis of consumer behavior to mobile devices. ...
... In general, four stages make up the typical funnel: awareness (or attention), research (or interest), decision (or desire), and purchase (or action) (Jansen and Schuster, 2011). The specific location of the consumer in the funnel (i.e. in one of the four stages) often predicts their likelihood of conversion. ...
... This line of research has demonstrated that a converging search process informs funnel progress. This begins with the narrowing of the consumer choice set as the purchase process approaches its conclusion (Bronnenberg et al., 2016;Jansen and Schuster, 2011;Sirakaya and Woodside, 2005;Um and Crompton, 1990). Then it can be seen that as consumers progress along the funnel, their searches are shown to become more specific and the searched-products become more similar, i. e., the variance between the attributes of the searched product decreases (Bronnenberg et al., 2016;Goldstein et al., 2022;Jansen and Schuster, 2011). ...
Article
We compare mobile and desktop user progress through the conversion funnel. Using detailed log-files of an online flight search engine, we analyze consumer search behavior and model the stages consumers go through along the funnel in both mobile and desktop platforms. We ask: Do mobile and desktop users go through similar funnel stages? Are the funnel stages of both platforms characterized differently? To analyze the progress through the funnel, we use hidden Markov models (HMM) that capture latent funnel stages based on observable search-behavior variables indicative of convergence towards a purchase. We find that while similar stochastic processes characterize funnel stages on both platforms, the distribution of visits across stages in the two platforms is significantly different: a larger percentage of mobile visits resides in more advanced stages, indicating that mobile consumers use the website when they are more advanced in the funnel, where less cognitive effort is required.
... The third phase is the Decision phase, in which the customer is deciding, among different brands, which product or service to buy. The final stage of the funnel is Purchase, in which the customer already knows which specific product and brand he wants to buy, and typically makes a last comparison of prices, ordering conveniences and other aspects before executing the purchase (Jansen & Schuster, 2011). ...
Article
Full-text available
The development of digital content marketing is increasingly a relevant and valuable task in digital marketing agencies in order to attract prospective consumers on digital platforms and develop engagement, trust and brand-friendly relationships to increase long-term sales. Despite its importance for practitioners, there is a dearth of knowledge about academic recommendations of effective content marketing practices, based on scientific research of their effectiveness and adequate use in the different touch points of the digital customer journey. With the purpose of guiding practitioners, this paper analyzes the conceptual framework of content marketing in the inbound marketing perspective, as a strategy to foster customer-brand engagement and loyalty. Based on the theoretical review of the topic, the paper presents recommendations of content marketing management strategy for digital marketers.
... Today, the AIDA hierarchy or updated versions thereof are applied to modern marketing applications such as e-commerce (c.f. Jansen & Schuster, 2011). We apply the hierarchy to an NFT as a decentralised application by indicating what marketers can do to encourage consumers to move through the three stages: (i) awareness of (cognitive), (ii) desire to own (affective), and (iii) purchase of (conative) an NFT. ...
Article
Non-fungible tokens (NFTs) are a record of ownership of primarily digital media, where the NFT is stored on a blockchain. According to the 2021 Gartner Hype Cycle for Key Technologies, NFTs may significantly transform marketing functions. Marketing managers wishing to adopt NFTs therefore need to know something about the marketing implications. This article explains NFTs in broad terms and discusses the marketing implications using a modified AIDA (awareness, desire, action, and recurring action) hierarchy. These implications can give marketing managers and executives guidelines on how to persuade consumers to purchase NFTs based on their unique characteristics such as scarcity, non-fungibility, proven authenticity, proof of ownership, royalties, and direct distribution infrastructure.
... Therefore, we retrieve only metrics relevant for a typical e-commerce marketing scenario. The typical e-commerce marketing scenario involves campaign objectives relating to generating awareness, interest, and action from the customers [29]. Table 1 explains the metrics corresponding to these objectives. ...
Conference Paper
Full-text available
Data silo problem refers to related datasets located in different databases, systems, or files. In the case of online advertising, performance metrics are fragmented in different campaigns and ad sets, making it difficult to compare customer segments. In this research, we present SiloSolver, an algorithm that (a) retrieves performance metrics for different customer segments across all campaigns, (b) aggregates the values for each customer segment in mean values, and (c) runs a statistical comparison (Student’s t-test) on the performance differences between the segments. The algorithm is evaluated using a real Facebook Ads dataset from an e-commerce company consisting of hundreds of campaigns from over five years. Using SiloSolver, advertisers using Facebook Ads are better able to understand their market segments across multiple seemingly disparate campaigns.
... Dalla letteratura consolidata sul processo decisionale del consumatore, emerge un concetto secondo cui il consumatore segue un percorso simile ad un imbuto, che si restringe progressivamente in termini di alternative di scelta man mano che egli si muove attraverso una serie di fasi ben definite (Jansen, Schuster, 2011). È, questo, il cosiddetto "funnel d'acquisto" (Kotler et al., 2006;Rathi, Usha, 2019;Wiesel et al., 2011), che trova il suo ancoraggio nel modello AIDA (Attenzione, Interesse, Desiderio, Azione), elaborato da Lewis nel 1899. ...
... Dopo questa presa di coscienza, il consumatore acquisisce maggiori informazioni sulle opzioni individuate e matura nei loro confronti un interesse specifico. Nella terza fase il consumatore si orienta verso una delle opzioni di scelta, maturando un desiderio d'acquisto, che poi culminerà, nell'ultima fase, nell'atto di acquisto vero e proprio (Jansen, Schuster, 2011). Ciò rende necessario, per le imprese, ricostruire con attenzione la "customer journey" (Rosenbaum et al., 2017), ovvero i possibili punti di contatto o "touchpoint" (offline e online) che in ciascuna fase possono metterle più proficuamente in connessione con i propri prospect secondo un percorso (più o meno lineare, a seconda dei casi) che varierà in base al segmento di clientela di riferimento (Wiesel et al., 2011). ...
Conference Paper
Questo practical paper approfondisce le potenzialità, gli aspetti applicativi e le possibili ricadute del funnel marketing digitale, analizzando le iniziative della PMI vicentina OZ Racing, specializzata nella produzione di cerchi in lega per automobili destinati all'aftermarket, con particolare riferimento alle attività realizzate a supporto del brand MSW Wheels. Il funnel marketing è un approccio integrato di marketing analitico, comunicazione e commerciale, che, ripercorrendo adeguatamente la customer journey, può garantire ritorni importanti in termini di performance di vendita. Con lo sviluppo e la diffusione massiccia del digitale, questo approccio acquisisce maggiore complessità e nuove potenzialità, anche per abilitare o sostenere processi di marketing sempre più integrati e consapevoli da parte delle imprese minori, basati su una sperimentazione continua. La particolarità del funnel marketing digitale descritto in questo studio consiste nel fatto che le iniziative contenute al suo interno sono prevalentemente B2C, ma sono state concepite principalmente come supporto alla clientela commerciale (gommisti) del brand, in un'ottica di trade marketing e di fidelizzazione, aprendo così una prospettiva ampia sulle logiche di applicazione e sui possibili ritorni di questo modello.
... Marketing has mostly associated the above-mentioned process with information processing theory [18,22]. This theory is the basis of most customer behaviour models and suggests that customers must go through different reflection stages during the purchase decision process until reaching the final decision: (1) problem or need recognition, (2) search for product information, (3) evaluation time, (4) purchase and (5) post-purchase satisfaction [17,22,23]. ...
... Marketing has mostly associated the above-mentioned process with information processing theory [18,22]. This theory is the basis of most customer behaviour models and suggests that customers must go through different reflection stages during the purchase decision process until reaching the final decision: (1) problem or need recognition, (2) search for product information, (3) evaluation time, (4) purchase and (5) post-purchase satisfaction [17,22,23]. This also makes it similar to the widely applied AIDA model (from its acronym attention, interest, desire and action), developed in 1898 by St. Elmo Lewis [24]. ...
... Although there are several variants of the conversion model process that have been proposed over the last few years, the most widely accepted and used model has four basic phases, or stages: awareness, consideration, conversion and loyalty [22,[29][30][31][32]. This labelling scheme is precisely the one we used in this research. ...
Article
Full-text available
This paper’s primary objective is to segment the online marketplace of the Canary Islands’ museums by using different conversion funnel metrics. Little systematic research exists on digital user behaviour, and much less is known about how to segment cultural users with structured data from manually extracted and SEO software sources. With this aim in mind, we built a database with data related to the different phases of the conversion funnel of the museums to segment this online museum marketplace. In the findings, not only do we acknowledge the existence of different segments, but we also provide insight into the user’s digital behaviour by considering different metrics from the different phases of the conversion model process (awareness, consideration, conversion and loyalty). The originality of this paper is multifold. Firstly, it estimates the potential optimisation of these websites to improve the digital marketing implemented by the museum sector of the Canary Islands. Secondly, it sheds light on what benchmarking tactics and statistics procedures can be followed to carry out a non-hierarchical segmentation with standardised and comparable data. Thirdly, it contributes to the literature of digital marketing by eclectically combining the conversion funnel model, benchmarking techniques and non-hierarchical segmentation procedures.
... Marketers have used the buying funnel, sales funnel, or marketing to conceptualize the process of how a consumer purchases a product or service (Jansen & Schuster, 2011 ...
... The model suggests that consumers (tourists) go through stages of cognition and action before they decide whether and what service (cultural tourism site) to purchase (visit) (Doshi et al., 2017). The marketing funnel, also known as the buying funnel or sales funnel, models how marketers can reach consumers (Jansen & Schuster, 2011). Potential visitors progress through the different cognitive stages to get to the purchase/visit stage. ...
... Tourists' recommendations were recorded on a 7-point Likert scale where 1 is not at all important and 7 is extremely important. Assessing stages in the marketing funnel in this tiered way is a relatively common way to capture the data (Colicev et al., 2019;Jansen & Schuster, 2011;Söhnchen & Albers, 2010). ...
Article
Many potential destinations are rich in cultural resources. As cultural tourism becomes increasingly important for communities to showcase their cultural capital, it is vital to assess how cultural tourists can be better understood and serviced through planning and marketing to attract more international visitors. The marketing funnel process can help policymakers understand the critical components of tourists' visiting behavior. The process conceptualizes the process of how a consumer purchases a product or service from awareness through to purchase. We augment this marketing funnel process by also noting the importance of postconsumption evaluation: the likelihood to recommend. Cultural heritage tourism is an important feature of India's tourism. Murshidabad, a district of West Bengal, India, situated on the bank of Bhagirathi River, is 220 km away from the State capital, Kolkata. Murshidabad has a large number of cultural resources, both tangible and intangible. The study explores the cultural resources and their potential availability in Murshidabad. This will determine the scope of cultural heritage tourism development. This research assesses tourists' awareness, visitation, and likelihood to recommend cultural heritage resources in Murshidabad. It also assesses residents' perceptions towards cultural heritage tourism development as well as the community's participation level in cultural tourism development. This research uses a quantitative method to sample both tourists and the local community. The findings reveal strong support for cultural tourism development among the local community and high willingness to recommend many cultural attractions, although promotion and awareness of some attractions can be improved.
... The first step for this experiment was to create an online campaign for a local dental clinic using the A/B split test from the Ads Manager Tool provided by Facebook. The objective of this campaign was set to traffic (the sale funnel consideration stage) [141], with no 'Campaign Budget Optimisation' option in order to avoid confounding from delivery optimisation algorithms [122]. After that, the ad sets were created, one for each type of creative component (Figure 1), keeping the other settings the same in order not to damage the results of the test. ...
Article
Full-text available
In the era of digitally dominated competition, where the effectiveness of Facebook ads prompts the social media marketing strategy, new opportunities arise for most industries. In this context, this study aims to discover and summarize the key optimisations regarding the creative ad components needed to run highly personalized ads based on a user profile. The participants were Facebook users between the ages of 18 and 65+ who were interested in dental services. Qualitative methods were adopted in order to discover suitable options for professionals to grow their business. In the first stage, the A/B split test using the Facebook Ads manager labelled the most effective creative component. In the second stage, an eye-tracking experiment generated 30 heatmaps that showed the differences between the segments. The results show solutions for attracting users by increasing the level of personalization of the ads. They are more beneficial for social media campaigns aimed at brand awareness targeting women and showing them a happy human face. When the target audience is men, technical details are preferred in order for the ad to become more attractive for them. This study enriches the literature and empowers professionals to deploy social media marketing growth strategies to attract users and make them convert to their full potential.