Report On
Report On
Report On
com
Consumer Behavior
Prepared for:
Mr. Syed Munir Khasru
Course Instructor: Consumer Behavior (M402)
Prepared by:
Group 5
Fableeha Bushra Choudhury, RH-19
Aanisha Mahmood, RH-59
Muhammed Asif Khan, ZR-71
Zareen Tasnim, RH-83
Arko Ashraf Antar, KJ-86
BBA Batch 20
1|Page
LETTER OF TRANSMITTAL
May 31, 2015
Mr. Syed Munir Khasru
Professor
Institute of Business Administration
University of Dhaka
Dear Sir
As per your instructions, we, the members of Group 5 have prepared the report titled Ekhanei.com:
Consumer Behavior for the completion of the course Consumer Behavior (M402). The product has
been selected as per your approval and confirmation.
The main purpose of this report is to learn and analyze the factors which influence consumer behavior
from the perspective of Ekhanei.com; interpret the gaps in current marketing strategies from
consumer behavior and to provide a marketing strategy to overcome these gaps.
We sincerely hope that this report will meet your expectations. If you have any further questions
regarding this report, we are more than eager to comply.
With regards and sincerity
______________________
Fableeha Bushra Choudhury, RH-19
______________________
Aanisha Mahmood, RH-59
______________________
Muhammed Asif Khan, ZR-71
______________________
Zareen Tasnim, RH-83
______________________
Arko Ashraf Antar, KJ-86
BBA Batch 20
Institute of Business Administration
University of Dhaka
2|Page
Acknowledgements
We would like to express great appreciation to Professor Syed Munir Khasru, our Consumer Behavior
course Instructor, Institute of Business Administration, University of Dhaka who set us this report and
provided us with the methods for preparing an ideal report.
We are thankful to Shadman Rahman, UX Analyst at ekhanei.com for providing us with information
about Ekhanei.com and for spending his valuable time and effort on us.
3|Page
Executive Summary
Along with strong economic growth and development, internet penetration is one of the areas where
Bangladesh has made significant progress in recent times. An output of that progress is the
proliferation of free classified e-marketplaces in the country, such as Ekhanei.com, Bikroy.com,
ClickBD.com, AjkerDeal.com etc. These sites are not direct competitors of each other as the market
served is opportunistic in nature. Because posting an ad for a product sale at one site would not
necessarily stop the person from posting an ad on the other sites too. Due to the novelty of the sector,
no proper research has been done into this area and thus, relevant market statistics are not available.
Ekhanei.com is one of the leading and most convenient choices for buying and selling all across
Bangladesh through the online medium. The service was launched originally in 2006 as Cellbazaar as
an innovative SMS service, and later in 2007 the website was opened. This service allows anyone in
Bangladesh to buy and sell in their region conveniently in a very simple manner without registration
and complicated procedures. Ads can be posted for free and browsing with GrameenPhone Internet is
free as well. The firm has recently acquired OLX.com.bd and owns its registered customer base under
their domain. Thus it has become even bigger.
Due to the complexity and range of products bought and sold on Ekhanei.com, only one target group
cannot define the target market. Thus four target groups namely Bargain Hunters, Convenience
Seekers, Intelligent Buyers and Evergreens have been identified. Our analysis have discovered
the influence of primary groups in the usage of Ekhanei.com, the tendency of approach-approach
motivational conflicts, and our survey results have shown greater percentage of men using this service
compared to women. The surveys also revealed a discrepancy in the form of high brand awareness of
Ekhanei.com but quite low usage amongst the respondents. The report has explored how learning,
memory and attitude amongst the consumers are playing a role in the overall consumer
experience. Brand personality, temporal perspective and the evaluative criteria of the service have
also been analyzed and outlined in the report. Finally, the report prepared a set of solutions for
Ekhanei.com for resolving its major weaknesses as an e-commerce portal so that it can retain its
position as the number one destination for online buying and selling in Bangladesh.
4|Page
Table of Contents
Executive Summary ................................................................................................................................ 4
1.0 Introduction ....................................................................................................................................... 6
1.1 Origin: ........................................................................................................................................... 6
1.2 Purpose:......................................................................................................................................... 6
1.3 Scope:............................................................................................................................................ 6
1.4 Methodology: ................................................................................................................................ 6
1.4.1 Primary Source: ..................................................................................................................... 6
1.4.2 Secondary Source:.................................................................................................................. 7
1.5 Limitations: ................................................................................................................................... 7
2.0 Industry Overview ............................................................................................................................ 7
3.0 Company Overview .......................................................................................................................... 7
3.1 Using the service ........................................................................................................................... 9
3.2 Segmentation................................................................................................................................. 9
4.0 Consumer Profile .............................................................................................................................. 9
5.0 Analysis........................................................................................................................................... 10
5.1 Group Influence .......................................................................................................................... 10
5.2 Motivation ................................................................................................................................... 10
5.3 Gender ......................................................................................................................................... 10
5.4 Consumer Perception .................................................................................................................. 11
5.5 Learning ...................................................................................................................................... 13
5.6 Memory ....................................................................................................................................... 14
5.8 Self Concept ................................................................................................................................ 16
5.9 Brand Personality ........................................................................................................................ 16
5.10 Temporal Perspectives .............................................................................................................. 17
5.11 Evaluative Criteria .................................................................................................................... 17
5.12 Shortcomings of Ekhanei.com as a brand ................................................................................. 19
6.0 Proposed Strategies ......................................................................................................................... 20
7.0 Conclusion ...................................................................................................................................... 22
8.0 References ....................................................................................................................................... 22
5|Page
1.0 Introduction
The report titled Ekhanei.com: Consumer Behavior was prepared as part of our course, Consumer
Behavior, under the guidance of Professor Syed Munir Khasru, our course instructor. The objective of
this task is to gather the theoretical knowledge obtained throughout the course and apply it in a
realistic scenario to come up with a marketing strategy for Ekhanei.com.
The introduction portion entails how the report originated, what it plans to unearth, its scope and
limitations and the methods used to collect pertinent data.
1.1 Origin:
This report has been undertaken as a partial requirement for fulfillment of the course Consumer
Behavior (M402) instructed by Mr. Syed Munir Khasru. For the purpose of this report, we had been
given the task of preparing a marketing strategy for a product of our choice. We have therefore chosen
to work on Ekhanei.com, the pioneer e-marketplace in Bangladesh. This report was composed after
obtaining the course instructors approval on the topic selected.
1.2 Purpose:
The objectives of the plan are two-fold and are described as follows:
Primary Objective:
Secondary Objectives:
1.3 Scope:
The report will focus on marketing activities taking place within Dhaka Metropolitan area for
Ekhanei.com. Since Ekhanei.com is an e-marketplace for free classifieds, we will not be considering
direct business to consumer or business to business electronic portals for competitor analysis, as the
services offered are significantly different. Recommended strategies will therefore be made keeping
this scope in mind.
1.4 Methodology:
To produce this report, varieties of methods have been used. Data has been collected from different
sources, and both primary and secondary sources have been used.
1.4.1 Primary Source:
6|Page
Disclosure of confidential information: Ekhanei.com does not disclose any kind of financial
information or market research data to anyone outside the company. That is why it was not
possible to include the necessary information like the revenue model used to estimate
different financials and marketing position of Ekhanei.com. The data collected from them,
accordingly, is not sufficient for an accurate analysis.
Consumer Survey: The consumer survey was based only on the urban regions of Dhaka;
therefore findings do not accurately reflect the consumer behavior of the entire target market
of Ekhanei.com.
Lack of information: General lack of information on the free classifieds e-marketplaces of
Bangladesh.
Time and space restraints: Overall improvement would be possible if resources had not been
restricted.
7|Page
8|Page
advertising on its website, based on the number of traffic of Ekhanei.com. Thus, Ekhanei.com aims to
attract more traffic that is more people posting ads on the website, to generate profit.
These categories are subdivided into specialized categories and there is a ninth category Others
which does not fall under any of the above classifications. An item can be clicked to view in detailed
mode and the buyer can directly contact the seller via phone number provided in the ad.
For a use who wants to sell an item, they can click the Post your free ad button on the home screen
and follow a series of steps to post an ad. A general description of the product, a price and contact
number is required to post the ad. The ad goes into review, and within 24 hours, if it attains to the
policies of the site, the ad is posted.
3.2 Segmentation
Because of the nature of the service provided, Ekhanei.com is open to all with Internet access and a
smartphone or a computer. However, it is not possible to serve all of the market, and fulfill their needs
and wants. The following segmentation can be done for a better, focused service to customers within
this segment.
Demographic Segmentation:
Ekhanei.com serves anyone in any place within Bangladesh and allows them to buy and sell within
their region. Both genders fall within the target demographic. Since selling and buying is mostly
trusted towards adults, the segmented age should be 18 years and older. Ekhanei.com best serves
income groups from lower middle to upper middle class.
Behavioral Segmentation:
A prerequisite to attaining the service is having access to the Internet and being able to operate a
smartphone, a tablet or a computer. It also requires the intended customer to be inclined towards
selling or buying objects or services online.
9|Page
Bargain Hunters
Lower middle
class
Mostly buyers
Look for
secondhand/used
products
Younger age
group (18-25)
Lower price is
priority
Intelligent
Buyers
Middle class
Mostly buyers
Tech savvy
Spend time on
researching
product
specification
before making
purchases
Students,
young
professionals
Convenience
Seekers
Middle class
Buyers and
sellers
Look for ease
of transaction
Do not spend
much time on
purchase/sale
decision
Nuclear
families, young
professionals
Evergreens
Upper middle
class
Higher age
group (40 and
above)
Mostly sellers
Look to sell
property, or
automobiles
Senior level
professionals,
retirees
5.0 Analysis
5.1 Group Influence
There is a significant amount of influence from primary groups, i.e. friends and family for
prospective consumers of this service. Because of cultural norms, it is usual for elderly family
members to provide advice in the purchase or sale of an item. The buying and selling decision, and
hence the use of the service is heavily dependent on the approval or disapproval of the primary group.
Informational influence can also have a role for a prospective consumer who has never used such a
service before. Expert opinion is sought out before making the decision to use the service, in this
scenario. The opinion from the expert is likely to change the sale or purchase decision and hence the
use of the service.
5.2 Motivation
The only motivation for using the service is either the need or want to purchase a product, or the need
or want to sell a product. This can be divided into two categories:
Benefit derived from successful and satisfactory purchase/sale from the site will motivate the
user to sell through this site when there is need.
When there is an urgent need to buy or sell an item, the consumer will look to gain maximum
exposure hence will be motivated to use the site more often during those times.
This can lead to an approach-approach motivational conflict because consumers usually post in all
free classified marketplaces and therefore have no incentive to select just Ekhanei.com for the
purpose.
5.3 Gender
From the consumer survey conducted we have found that a greater proportion of men use
Ekhanei.com rather than women. There were only 33% female users compared to the 67% male users,
regardless of the fact that the service is targeted towards both genders.
10 | P a g e
Percentage of users
33%
Male
Female
67%
This is due to the risk and feelings of insecurity in posting mobile numbers in public sites.
Perpetrators use these phone numbers to harass women, and this deters many potential consumers
who would like to use the service, but cannot because of this persistent problem.
4%
5% 3%
TVC
4%
Online
Friends or family
27%
57%
Newspaper or magazine
Radio ad
Never heard of it
From the consumer survey conducted, we can see that Ekhanei.com has a very good exposure rate.
They ran a series of humor based TVCs which were immensely popular and allowed the general
populace to learn about the brand. Only 4.4% of respondents had never heard of Ekhanei.com and
57.4% of respondents had first heard about it from the TVCs.
11 | P a g e
Yes
No
Despite the high exposure, only 35% of respondents said that they had used Ekhanei.com. This means
that the exposure was ineffective in its purpose. Although the brand and the jingle were constantly
being promoted, the association of the free classifieds e-marketplace had not reached the target
market.
40%
44%
Buying
Selling
Both
Those of who had used Ekhanei.com had bought and sold multiple categories of items. From the
consumer survey, we have found that there are more sellers (44%) than buyers (40%) and there are
users who have used the services for both buying and selling.
12 | P a g e
5.5 Learning
Learning is any change in the content or organization of long-term memory or behavior. Before
looking into the influence of learning, we examine the conditions of involvement pertaining to the two
features of Ekhanei.com.
a) Selling:
The selling feature is a low-involvement process for the following reasons:
it is less time-consuming as it requires simply posting an advertisement on the site about the
product, along with description
does not involve price constraints and thus no limitations
has lower perceived risk as the person would not have to pay
b) Buying:
On the other hand, buying is a high involvement process as:
it is more time-consuming due to involving searching for and evaluating available options
among a wide range of advertisements
involves price constraints and thus limits options and requires more calculations
higher perceived risk as the person would be subject to payment
In both the cases, learning will increase consumer knowledge about the site and its usage situations,
along with the benefits offered. As a result, it will be stored in customers memory increasing chances
of recall when the customer would buy or sell anything online.
13 | P a g e
The learning theories which could be effectively applied in case of Ekhanei.com are discussed below:
a) Iconic rote learning:
This involves associating two or more concepts, in the absence of conditioning. Through iconic rote
learning, Ekhanei.com could be associated with the concepts of:
These positive associations will lead to learning about benefits, attributes and usage situations of the
website. As a result, Ekhanei.com would be stored more favorably in the schematic memory. Also it
would ensure the site achieve top-of-mind recognition in the category, as the associations mentioned
above are critical to customers. And ultimately this would lead to trial of the site.
b) Operant Conditioning:
Operant conditioning usually involves product trial, after which positive reinforcement, if received,
induces customer to form a favorable learning of the product. Ekhanei.com could induce trials
through repetition of its promotional activities and relevance to usage situations.
The reinforcements in its case would be:
user friendliness which is the ease with which the customer can use the site
availability of desired products within the specific price range as per budget of customer
Positive reinforcement will lead to a stronger learning about the site which would ensure storage in
long-term memory of customer. This would further increase the chances of repeat use by the customer
in future.
5.6 Memory
Ekhanei.com operates in a highly competitive industry as any platforms are available for online
buying and selling. Bikroy.com is a very strong competitor, along with the huge number of Facebook
pages. Thus it is important to establish Ekhanei.com as a suitable option and better option. The brand
needs to have positive associations in both long-term and schematic memory so that it could be
recalled in usage situation.
The schematic memory for online selling and buying in Bangladesh, and that for Ekhanei.com are
given below:
Schema for online sale and purchase:
14 | P a g e
The gaps in the schematic memory between these indicate where Ekhanei.com should improve and
how. In a survey conducted by MRB of online classified sites in Bangladesh, Bikroy.com got 76% of
the respondents top-of-mind answer, while Ekhanei.com got only 10%. This was despite the huge
popularity of the television communication and catchy jingle of Ekhanei.com. Thus this tells us that
Ekhanei.com has some lacking in its offerings and values, which is discussed in the gap analysis
15 | P a g e
section afterwards.
5.7 Attitude
The general attitude of customers towards online classifieds in Bangladesh is as follows:
a) Cognitive component:
This consists of the values and beliefs of the customers. The beliefs regarding the product category
are:
b) Affective component:
The affective component, consisting of the feelings associated with category, is thus slightly skeptical.
c) Behavioral component:
The behavioral component has been shaped by the negative cognitive and subsequent negative
affective components. As proof we see that even many regular educated internet users, 18% of the
respondents of our consumer survey; do not use any online portal for buying or selling.
An important observation is that the attitude towards this category becomes more favorable with the
increase of educational level of the customers.
To change this existing attitude, it is required to change the cognitive component which is the root
cause. This can be done by Ekhanei.com through:
posting safety rules regarding online sale and purchase in its website
demonstrating the ease of use through its advertisements and Facebook promotions
actively promoting the existing safety measures adopted by the site
Appeal characteristics:
The appeal characteristics which can be used by Ekhanei.com for influencing the change are:
utilitarian appeal which would highlight the functionality of the site and thus aim to offset the
benefits against the perceived risks
light humor appeal to grab the attention of the target customers, and also conforming to the
modern, youth-based target market psychographics
16 | P a g e
updated on almost every current issue; she would try her best to help you and would not judge you by
your wallet.
In short, Ekhanei.coms personality is best described by 4 attributes:
17 | P a g e
Usability
Cost
Interactivity
Trust
Convenience
Lowered
Search Cost
Customization
Transaction
Security
Speedy Site
Lowered
Transportation
Cost
Help Center
Customer Data
Safety
Uninterrupted
Navigation
Best Bargains
Guarantees/
Return Policies
Accessibility
Auctions
Product Quality
and Delivery
Conformance
Aesthetics
Website/ app
Design
USABILITY
Convenience: Research indicates that convenience is a prime motivator for Web customers to
stop and interact with online vendors. Customers associate convenience with easy and fast
information browsing, shopping and settling of the online transaction; Web designers must try
to understand how their customers are likely to perform these activities online and adjust their
procedures accordingly.
Speedy Site: Online customers expect fast loading Web pages. Web designers must keep in
mind that the average time customers per page viewed is low and steadily diminishing
overtime.
COST
Lowered Search Cost: The provision of finding all necessities reduce the consumers
monetary and psychological cost of searching in one store to another.
Lowered Transportation Cost: The idea of shopping online for goods that are available in
physical stores in Bangladesh, thrives in the main advantage of reducing the fuel cost or
transport fare, especially given the traffic scenario here.
Best Bargains: Since the all-exclusive prices are mentioned in the ads, and there is scope of
comparison within and across websites, consumers can choose the product that provides the
best value for money.
Auctions: The scope of negotiating price or securing a deal through suggesting higher
payment allows consumers and sellers to deal with demand-supply gaps.
18 | P a g e
INTERACTIVITY
The Interactivity components are divided in two categories:
(1) Interactivity with the online vendor.
(2) Interactivity with other Web users.
Customization: The concept of opening an account, saving desire listed,etc. allows the
website to tailor promotions and suggestions to need of the individual customer.
Help Center: The inclusion of a customer service agent , hotline numbers, webmail, etc
makes the customers feel their needs are well handled. It is frustration from their lacking that
is more critical than the gratitude of their presence that is more critical.
TRUST
Transactional Security: Clear ordering, payment and refunding procedures as well as concrete
customer policies, good communication and strict security help customers face online transactions
with more confidence.
Customer Data Safety: Critical question for privacy-minded customers is whether personal data
known to online firms is used for any type of commercial purposes against their knowledge and will.
This is a growing concern among Internet users confronted daily with an explosive growth of spam,
fraud and online scams.
The scope of improving on Guarantees and Product Quality Conformance is limited for online market
places, however, customers still do associate negative experience from vendors with the site they
purchased it from.
AESTHETICS
Design and style/atmosphere of Web sites are elements quite crucial in shaping the online experience
and the buying decision making process. Like shoppers in traditional shops, for first-time Web site
visitors these elements are particularly important. But unlike traditional shoppers online consumers
spend much less time in Web shops they visit. Given the very limited time the average Internet users
spend on browsed pages when searching for information or products online the design and
atmosphere of Web sites must attract the attention and capture the interest of the online customer in a
very short time
warning messages, and should include actions such as checking authenticity of vendors, keeping tabs
of performance, keeping records of transactions whenever possible, etc.
3. Collaboration with Artisans:
There is a major lacking in the connection between the artisans of Bangladesh and the customers in
the cities. While consumers in the cities complain of not finding the ideal designs and supply, the
skilled workers are unaware of the huge demand of their products in the cities. They expect meager
pays without an idea of how much the final product price multiplies by when reaching the stores.
Ekhanei.com could focus on such opportunities, of not only having products in their portals that are
not available elsewhere, but also of playing their part in Fair Trade.
propose that Ekhanei.com takes the help of expert consultants like Aamra Technologies to remove
glitches in their app and make it more user-friendly.
21 | P a g e
Description: During special occasions such as Eid-Ul-Fitr and Eid-Ul-Adha, limited period soap
operas are launched on major local TV channels which tend to be quite popular. Ekhanei.com can
align with such a soap opera so that they incorporate scenes where characters use this service in a
candid fashion.
Solution 4: Search Engine Optimization
Description: When a person uses the keywords online shop Bangladesh in Google, the top results
are Daraz.com, PriyoShop.com and Akhoni.com. A person will not go to Ekhoni.com unless the site
shows up in the top results too. So Ekhanei.com should engage in intense keyword bidding and
Search Engine Optimization to make sure its name is at the top of search results when major
keywords are used, such sell online Bangladesh, buy online Dhaka etc.
Solution 5: Premium Listing
Description: This feature will allow a seller to keep his post ad at the top of search results
permanently in a given category for a set period of time for a payment. Thus sellers who are
desperately seeking to sell their products or need to sell quickly can use this feature, and Ekhanei.com
can also benefit from the earnings.
Solution 6: App Promotion through Local Cell Phones and advertising
Description: When a person buys a new cell phone, he usually checks to see what apps are preinstalled. If the app of Ekhanei.com is present in such phones, the firm will have won a user of the app
without having them install it themselves. The person may later resort to using this app to search or
sell a product. So Ekhanei.com should partner with local cell phone makers like Walton and
Symphony so that their cell phones come pre-installed with Ekhanei.com.
Besides, the mobile app itself should be promoted through advertising in Facebook and TVCs.
7.0 Conclusion
As the first e-commerce portal in Bangladesh, Ekhanei.com is not living up to its promising gains in
the early years of its inception. Rather, it has let itself become outshined by Bikroy.com and some
other online buying and selling destinations. But the firm has enough potential and spending prowess
to catapult itself in the top as far as consumer top of mind recall is concerned. For that, some bold
marketing and operational strategies have to be undertaken.
8.0 References
22 | P a g e
http://www.theindependentbd.com/index.php?option=com_content&view=article&id=220720:ekhane
icom-reaches-deep-into-the-country&catid=110:business-others&Itemid=156
http://daily-frontier.com/Frontier/news.php?name=2014073302
http://www.forethoughtpr.com/Content.php?pageType=Editorial&Type=4&id=5&pId=0
http://www.slideshare.net/themsaha/status-potential-and-constraints-in-ebusiness-application-inbangladesh-46850115
http://www.slideshare.net/priyodresscollection/top10-online-shopping-sites-in-bangladesh
http://www.slideshare.net/geekybd/classified-busines
https://review.easycounter.com/reputation-Ekhanei-safe
23 | P a g e