Download Buyer Behaviour

Online Marketing
Gay, Charlesworth & Esen
Chapter Five
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
Product / Price / Place / Promotion / etc
Other Stimuli
Societal / Technological / Economic /
Political / Legal
Buyer’s Black Box
Buyer characteristics
Buyer decision process
Buyer’s Response
Product / brand choice
Dealer / web site choice
Purchase timing
Frequency
Amount
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, “… it’s 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
purchase
fulfillment
purchased from
online
online
home delivery
same vendor that provided the
original information
online
online
customer collects
different vendor to that which
provided the original information
Offline
literature
online
home delivery
same vendor that provided the
original information
online
offline
customer collects
different vendor to that which
provided the original information
Online Customer Expectations
• The Internet gives impetus to the marketer’s 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
customer’s online behaviour:
1. Explicit behaviour based on:
– Data provided by the user; eg. a profile for registration
to a site.
– Any recorded actions on the site; eg. signing up for an
e-newsletter or placing an order.
2. Implied behaviour based on data derived from
the observation of a user’s 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
Potential e-metrics
Increase sales
Sales value per visitor
Average order size
Conversion rate (sales / visitors)
Provide after-sales
service
Visits to FAQ page
Page downloads (eg instruction manuals)
Generate sales leads
Conversion rate (leads / visitors)
Discount vouchers download
Develop brand
Number of visits/visitors
Depth of visit (how many pages accessed)
Behavioural & Contextual Targeting
Industry split on definitions,current status:
Contextual targeting
Behavioural 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.
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
Customer’s share of
organization’s business
Buying practices and patterns