online consumer
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TRANSCRIPT
The online consumerJohn Brissenden
16.02.10
Reading
Fill (2009), chapter 26
Learning outcomes
To understand the scale and nature of online purchasing
To consider the challenges of marketing online
To identify various forms of digital marketing communications
Source: warc.com
Percentage change in ad spend by medium, 1999-
2009
UK rate of adoption of different digital mediaSource: MORI Technology Tracker, September 2006. See www.mori.com/technology/techtracker.shtml for details
Chaffey et al (2006)
Development of experience in internet usage
Chaffey et al (2006)
A summary of how the internet can impact on the buying process for a new purchaser
Chaffey et al (2009)
Cognitive modelsConsumer choice is a problem-solving and
decision-making sequence
Customers do not have perfect knowledge of all products – the total set
They are only aware of a proportion – the awareness set
They reduce these to a more manageable set – the evoked set
Decision-making
Kotler (2000)
Total set choice setconsideration setawareness set
decision
IBMAppleDellHP
ToshibaCompaq
NEC Tandy
?IBM
AppleDell
IBMAppleDell
Toshiba
IBMAppleDellHP
ToshibaCompaq
Consumer buying process
Cognitive models generally contain 5 phases
Problem recognition
Information search
Evaluation of alternatives
Purchase
Post-purchase evaluation
Dibb & Simkin (2001)
What is your problem?
“I’ve just been dumped.”
“I have a long commute every day.”
“I’ve been left £20,000 in a will.”
Routine problem solving
Regular
Habitual
Impulse
Limited problem solving
Less frequent
More deliberate decision-making
Moderate expense
Extended problem solving
Much higher risk
More investment of time, money and effort
Extremely infrequent
Long-term commitment
Difficulties to overcome
Different products are bought in different ways
Length of the buying decision process varies
For some products, not all stages are required
Perceived riskConcerns the UNCERTAINTY of the proposed purchase and the outcomes of the purchase decision
Risk is perceived because:
The consumer has little or no experience of the performance of the product, or the decision process associated with it
The consumer may lack the ability to make the “right” decision
Resources such as time and money are limited, and so may force the consumer to buy one product instead of another
Risk is related to brand-based decisions and product categories
Reflects:
Attitude to risk
Involvement
Trust
Risk in context
Situation varies according to:
Perceptions of the shopping experience
Time the purchase is made in the context of other activities
Image of different stores
Risk associated with products in each store
Individual’s attitude to risk varies with age, education, culture, personality
Product may convey risk because of price, experience or emotional attributes
SearchSearch CredenceCredenceExperienceExperience
Differentiation
Most goods
Most services
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Hair
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Jew
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Fu
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TV
rep
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Resta
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meals
Ch
ild
care
Cars
Hou
ses
Holid
ays
Car
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Den
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Leg
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Med
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iag
nosisEasy
toEvaluate
Difficultto
Evaluate
Zedithami in Donnelly & George (1981), reproduced in Kotler
(2000)
Dog
s
Slide 2.
Chaffey, Ellis-Chadwick, Mayer and Johnston, Internet Marketing, 4th Edition, © Pearson Education Limited 2009
Figure 2.10 Percentage (by category) who bought online after researching onlineSource: EIAA (2008)
Shopping from home Source: BMRB/Ipsos Mori/Mintel, March 09
Auction sites
Source: BMRB/Ipsos Mori/Mintel, March 09
All online shopping
Age Socio-Economic Group
Source: BMRB/Ipsos Mori/Mintel, March 09
Online advertisingOffline advertising tends to create brand image
Online ads tend to involve a call-to-action
Banner ads have fallen from favour
Pop-up ads (interstitial/superstitial)
Click throughs to microsites are much higher than through banners
Interactive sales promotionCan be used with mobile devices as well as the full web
Tend to involve sampling, free gifts, e-coupons, price deals and competitions
Engage consumers and enable data capture
Normal SP motivation is to prompt immediate purchase - but this does not apply online
Growth of SMS, email and web-based promotions
Online PR
Online PR does not work separately from offline PR
Some market segments are much more active online
Tension between traditional need for control and the openness of networked communications
Important to identify the hubs in any network