STREAMLINE THE SEARCH ENGINE MARKETING STRATEGY : Generational Driven Search Behavior on Google

Abstract: The expanded internet usage has resulted in an increased activity at web-based search engines. Companies are therefore devoting a large portion of their online marketing budget on Search Engine Marketing (abbreviated SEM) in order to reach potential online consumers searching for products. SEM comprises Search Engine Advertising (SEA) and Search Engine Optimization (SEO) which are two dissimilar marketing tools companies can invest in to reach the desired customer segments. It is therefore of great interest for companies in different product markets to have knowledge of which SEM strategy to utilize. The statement leads to the purpose of the thesis which is to investigate which SEM strategy is the most suitable for companies in different markets, SEA or SEO?. The purpose of the thesis is derived to the research problem: How does the search behavior of consumers differ between the two SEM tools, SEO and SEA?. Initially, in order to answer the research problem, a theoretical framework was conducted consisting of theories from previous research. To collect primary data observations of 60 test subjects was performed in accordance with the Experimental Vignette Methodology. The analysis consists of a comparison between the collected data and the theories included in the frame of reference, to identify similarities and differences. The SPSS analysis of the result revealed numerous findings such as the two-way interactions of the factors degree of involvement and the click rate of SEM, as well as the choice of either a head or a tail keyword and the degree of involvement. The analysis further revealed a three-way interaction which suggests that the degree of involvement, and the use of either a head or tail keyword affects the choice of SEM. Additionally, the result shows that customers using brands as keywords are more likely to click on an organic link rather than on a paid ad. However, when adding the factor age to the analysis the results turn insignificant. As the area of search behavior of customers using search engines is relatively scientifically unexplored, the thesis has contributed with knowledge useful for companies, marketing agencies, among others. However, due to the ongoing expansion of search engine usage, it is of great interest to conduct further research in the area to reveal additional findings.