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Module 2: Consumer Behavior Analysis Factors affecting the Online Consumer’s Behavior MODULE 2 Forces Influencing the Online Consumer’s Behavior Other Stimuli: Personal and environmental Uncontrollable Factors Demographic, Personal, Cultural, Sociological, Economic, Legal, Environmental, Technological, etc. Marketing Stimuli (traditional Marketing Mix) Buyer’s Decision Process: problem identification, search, trust building, evaluation of alternatives, choice, Post-purchase behavior Web Experience: Online Controllable Marketing Factors Source: Based on the P. Kotler’s Framework (2003) MODULE 3 Buyer’s Decision: Product Choice Brand Choice Dealer Choice Purchase Time FACTORS ISSUES LA REDOUTE’ S RESPONSE Personal Personality traits of consumers: are they Fashion aware? Money spender? etc. LR’s customers are women that want fashion at an Affordable price. Items are trendy and reasonably priced. In addition, LR Sends personalized emails/catalogs to its Customers Good Aging population both in Europe and North America, overweight problems, etc. LR offers a range of products for young women + links to redirect the customers to other affiliate websites (specialized in other segments: big size clothes, etc.) Fair Cultural habits regarding shopping: Europeans shop in City centers whereas Americans shop in malls (everything in one place) French website: everything available in one place (like a shopping mall). USA website: specialized online outlet. Habits of Consumers vis-à-vis Online Shopping Different means of payments, Customer Assistance: Telephone: 24/7 in the USA Vs. only during week days /office hours in France. Email answer is way faster in the USA (within 24hours vs. 3/4 days in France… Customers more demanding in the USA than in France =>LR adapts to the countries it operates in. Demographic Cultural Sociological GRADE Fair Good Economic Economic characteristics of the country. E.g.: unemployment rate, etc. Promotions, payment facilities (for example via La Redoute’s credit card) Privacy rights and Transactions LR ask permission to customers about giving out information, its site is secured (lock sign) Legal Situational Sales, seasons, special events Sales, special events: Christmas boutique, Fall styles, 4th of July sale, etc. Technological Fast moving technology Characteristics of the Internet Use new technology like “Virtual Model”, Order Tracking, Online Payment, Seeing if Item is still in stock (not always reliable: personal experience), items (“atoms”) can be seen in different colors, etc. TOTAL: 5 Good 3 Fair RESULT = Good Good Good Fair Good Cultural Demographic Personal Economic Sociological Legal Situational Technological Good The target market are fashion and budget-conscious female shopper: young middle-class women, ages 25-45 with an average income of $50,000-$75,000. WHAT TO BUY Only women fashion on USA’s website Clothing, shoes and accessories, adapted to seasons + “an experience” WHEN TO BUY Anytime! But promotion for special events (Christmas, Summer sale, etc.) WHERE TO BUY Multichannel: catalog, telephone, fax, website HOW TO BUY Credit card, checks, pay on delivery/ pay on website, on the phone, by post, by fax problem identification search trust building evaluation of alternatives choice post-purchase behavior Problem Identification Problems concerning more personalized requests (help, my info, order status) clearly identifiable Problems concerning which products the website offers (clearly identifiable) Good Search (or identify the alternatives…) Quick Access to Products from different Categories (designer, Clearance, etc.) Finally!!!! Other affiliate brands’ websites Special Offers Several Alternatives More detailed options Alternative!!! Order Alternatives... Good Trust Building Personalized Information Secured Site Information about the company (who they are and legal information) Good Evaluation of the alternatives Many alternatives to choose from. Besides, most of the alternatives are duplicated which can make confusing for costumers to know where to click Fair Choice Buy Not Buy Based on the previous analysis LEARNING Post-purchase Behavior Opportunities to contact La Redoute for Any questions or feedback Fair Problem Identification Search Trust Building Evaluation of the alternatives Choice Post-Purchase Behavior TOTAL Good Good Good Fair ? Fair Good Product Choice Clothes, shoes, accessories La Redoute, Brylane, Chadwick, etc. Dealer Choice Brand Choice La Redoute, Laura Clement, Rene Derhy, etc. Day, night, anytime! Purchase Time Module 2: Grading Summary Other Stimuli Good Marketing Stimuli ? Buyer’s Decision Process ? Buyer’s Decision Good TOTAL Good