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    Online Buyer Behavior

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    Gagandeep Singh Sidhu
    The document discusses online buyer behavior and provides an overview of key concepts: 1. Understanding buyer behavior involves examining marketing stimuli, buyer characteristics, and the buyer decision process which includes problem recognition, information search, evaluation, purchase, and post-purchase behavior. 2. For online buyers, the biggest impact of the internet is on the decision making process during the information search stage. Key factors in online search include trusted sites, comparing brands, and finding competitive prices. 3. Marketers' objectives are shifting from "helping the seller sell" to "helping the buyer buy." Buyers now expect to be facilitated in their product research to meet their wants and needs.

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    Online Buyer Behavior

    Uploaded by

    Gagandeep Singh Sidhu
    169 views14 pages
    The document discusses online buyer behavior and provides an overview of key concepts: 1. Understanding buyer behavior involves examining marketing stimuli, buyer characteristics, and the buyer decision process which includes problem recognition, information search, evaluation, purchase, and post-purchase behavior. 2. For online buyers, the biggest impact of the internet is on the decision making process during the information search stage. Key factors in online search include trusted sites, comparing brands, and finding competitive prices. 3. Marketers' objectives are shifting from "helping the seller sell" to "helping the buyer buy." Buyers now expect to be facilitated in their product research to meet their wants and needs.

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    The document discusses online buyer behavior and provides an overview of key concepts: 1. Understanding buyer behavior involves examining marketing stimuli, buyer characteristics, and the buyer decision process which includes problem recognition, information search, evaluation, purchase, and post-purchase behavior. 2. For online buyers, the biggest impact of the internet is on the decision making process during the information search stage. Key factors in online search include trusted sites, comparing brands, and finding competitive prices. 3. Marketers' objectives are shifting from "helping the seller sell" to "helping the buyer buy." Buyers now expect to be facilitated in their product research to meet their wants and needs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    169 views14 pages

    Online Buyer Behavior

    Uploaded by

    Gagandeep Singh Sidhu
    The document discusses online buyer behavior and provides an overview of key concepts: 1. Understanding buyer behavior involves examining marketing stimuli, buyer characteristics, and the buyer decision process which includes problem recognition, information search, evaluation, purchase, and post-purchase behavior. 2. For online buyers, the biggest impact of the internet is on the decision making process during the information search stage. Key factors in online search include trusted sites, comparing brands, and finding competitive prices. 3. Marketers' objectives are shifting from "helping the seller sell" to "helping the buyer buy." Buyers now expect to be facilitated in their product research to meet their wants and needs.

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    Online Buyer Behaviour

    Harsha H N, NU

    Buyer Behaviour
    Effective strategic marketing requires business planners to be almost obsessive about understanding the needs of their customers.
    Brennan et al (2003)

    The unique characteristics of the Internet offer new ways for consumers to interact with one another, organizations and the wider emarketplace. Cotte et al (2006)

    Understanding Buyer Behaviour


    Marketing Stimuli
    Societal / Technological / Economic / Political / Legal

    Other Stimuli

    Product / Price / Place / Promotion / etc

    Buyer characteristics

    Buyers Black Box

    Buyer decision process

    Product / brand choice Dealer / web site choice Purchase timing Frequency Amount

    Buyers Response

    Consumer buying decision process


    Problem recognition

    Information search

    Evaluation of alternatives

    Purchase decision

    Post-purchase behaviour

    Online Buyer Behaviour


    Although all steps in the consumer buying process might be affected by the Internet, its biggest impact is in the decision making process at the research stage. (Yahoo! Inc. and OMD 2006) The study cites three key determinants in the online information search as:
    1. Trusted sites 2. Choice of brands to compare 3. Competitive prices

    The Purchase Behaviour Matrix


    In the Internet age, information about products is available from a myriad of off- and online sources. Furthermore, the purchase is not necessarily made from the vendor who provides the most significant information. Purchase behaviour variables for the web enabled customer include:
    research
    online online

    purchase
    online online

    fulfillment
    home delivery customer collects

    purchased from
    same vendor that provided the original information different vendor to that which provided the original information

    Offline literature
    online

    online
    offline

    home delivery
    customer collects

    same vendor that provided the original information


    different vendor to that which provided the original information

    Online Customer Expectations


    The Internet gives impetus to the marketers objectives shifting from helping the seller to sell, to helping the buyer to buy. Customers now expect to be facilitated in their research for the product that most suitably meets their wants and needs. The web is a pull media, meaning that the user, those to whom any marketing message is directed, requests the information rather than having it forced or pushed for the marketer this means the customer chooses which marketing messages they see.

    Online B2C Buyer Behaviour


    Two key aspects can be monitored to help assess that customers online behaviour: 1. Explicit behaviour based on:

    2.

    Data provided by the user; eg. a profile for registration to a site. Any recorded actions on the site; eg. signing up for an enewsletter or placing an order.

    Implied behaviour based on data derived from the observation of a users actions as they interact with the site.

    Online B2B Buyer Behaviour


    Electronic communications not new Internet preceded by electronic data interchange (EDI). New technology accelerated adoption of:

    Electronic exchange mechanisms E-supply chain management

    Web presence must appeal to all members of decision making unit. Web now considered to be an essential tool of the trade in purchasing process.

    Web Site Analytics


    The online marketer must be aware of how the use of technology can help collect data that facilitates the analysis of online behaviour. E-metrics vary depending on site objectives:
    Site objective Increase sales Potential e-metrics Sales value per visitor Average order size Conversion rate (sales / visitors) Visits to FAQ page Page downloads (eg instruction manuals) Conversion rate (leads / visitors) Discount vouchers download Number of visits/visitors Depth of visit (how many pages accessed)

    Provide after-sales service Generate sales leads Develop brand

    Behavioural & Contextual Targeting


    Industry split on definitions,current status:
    Contextual targeting Less complex no user date required. On-site ads in context with content of page. Behaviour prior or post of the user of no significance to ads posted. Behavioural targeting More complex user data required. Based on offline behavioural segmentation; eg benefits sought, purchase occasion, usage frequency etc. User data collection strategic activity.

    Database Marketing
    A list of customers and prospects records that enables strategic analysis, and individual selections for communication and customer service support. The data is organized around the customer. (Tapp 2005) Kotler (2003) suggests four examples of when database marketing is unlikely to be worthwhile: 1. Where the product is a once in a lifetime purchase. 2. Where customers show little loyalty to a brand. 3. Where the unit sale is very small. 4. Where the cost of gathering information is too high.

    Database Composition
    B2C Age Income Birthday Family unit Location Interests Hobbies Purchasing habits B2B Volume of previous purchases Frequency of previous purchases Profitability of customer Credit / debit history Customers share of organizations business Buying practices and patterns

    THANK YOU!

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