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Online Consumer Behaviour Assignment

The document discusses online customer behavior and factors that influence purchasing decisions. It outlines three stages of the online customer process: [1] the pre-purchase stage where customers compare options, [2] the purchase stage where product selection is based on assortment, services, and quality, and [3] the post-purchase stage where return/exchange policies become important. It also discusses the 7 C's that drive online commerce and how behavioral targeting can increase ad effectiveness by using web browsing data to select ads. Both benefits and factors, internal and external, that influence consumer behavior are summarized.

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Nidhi Thakral
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248 views6 pages

Online Consumer Behaviour Assignment

The document discusses online customer behavior and factors that influence purchasing decisions. It outlines three stages of the online customer process: [1] the pre-purchase stage where customers compare options, [2] the purchase stage where product selection is based on assortment, services, and quality, and [3] the post-purchase stage where return/exchange policies become important. It also discusses the 7 C's that drive online commerce and how behavioral targeting can increase ad effectiveness by using web browsing data to select ads. Both benefits and factors, internal and external, that influence consumer behavior are summarized.

Uploaded by

Nidhi Thakral
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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With the evolution of online communication through internet, customers now see

online advertisements of various brands. It is fast catching up with the buying


behavior of consumers and is a major source of publicity for niche segments and
also for established brands. This is the new way of digital revolution and
businesses worldwide have realized their worth.

Online Customer Behaviour Process


Stage 1
The most useful characteristic of internet is that it supports the pre-purchase
stage as it helps customers compare different options.

Stage 2
During the purchasing stage, product assortment, sale services and information
quality seem to be the most important point to help consumers decide what
product they should select, or what seller they should buy from.

Stage 3
Post-purchase behavior will become more important after their online purchase.
Consumers sometimes have a difficulty or concern about the product, or they
might want to change or return the product that they have bought. Thus, return
and exchange services become more important at this stage.

The 7 C’s of Driving Website Commerce

i. Context: A website’s layout, visual design and use of colors, white space,
graphics and information have to all create a theme that makes sense for
the company and products.

ii. Communication: Instantly correspond with other consumers, sellers and


company representatives to easily gather information about a purchase.

iii. Choice: Consumers can rapidly search through multiple stores from all
over the globe instantly. Consumers can also easily research a
company/product capabilities and popularity.
iv. Cost: Consumers feel empowered when they can shop around at such a
fast speed, they can make more informed purchasing decisions especially
when it comes to prices. Companies need to make sure they are offering
prices comparable to their competitors, because customers will figure it out
and not purchase from them!

vi. Control: Customers seem to have more control over quantity, size, style,
colour, price and the type of vendor that they purchase from when using
the Internet. Purchases for second-hand products can be made on e-bay,
creating a whole new genre of stores.

vii. Customization: A website can be customizable by the customer and


tailor itself to different users. Amazon.com makes personal
recommendations based on past purchases. Some gaming websites will
allow the user to choose to see information on only the games they own.

What is behavioural targeting?


Behavioral targeting is a technique used by online publishers and
advertisers to increase the effectiveness of their campaigns through
information collected on an individual’s Web-browsing behavior, such
as the pages they have visited or the searches they have made, to
select which advertisements to display to that individual.

The technique helps deliver online advertisements to the users who


will be the most interested in them. Behavioral data can also be
combined with other user information such as purchase history to
create a more complete user profile.

Benefits of Behavioral Targeting


Proponents of behavioral targeting believe that it is beneficial for the user
and the online property. A more targeted experience will naturally be more
interesting to a user and provide an improved visitor experience.
Advertisers are also able to benefit because users will be more engaged in
targeted advertisements. This leads to improved click-through-rates and
higher levels of interaction.

The FFF Model of Consumer Behaviour

The consumer FFF model was proposed by two management professors from
India Ujwala Dange and Vinay Kumar.

The FFF model takes into consideration external and internal factors affecting
consumer buying behavior:
External factors
1. Demographic: demographics are clearly tied to segmentation. It means to
classify the audience on the basis of age, gender and other categories . the
buying behavior of the consumer will be clearly affected by the segment to
which he belongs.
2. Socio economics: social class and the caste to which a person belongs
affects his buying behaviour . Broadly social class can be of three types
rich, middle class and poor .caste may be kshatriyas , shudras etc.
3. Technology and public policy: technological development has affected
consumers buying behavior . people can easily buy goods and services
sitting at home just with one touch they don’t have to go to stores to buy
products as they are easily available to them at their doorstep.
Government comes forward with many programmes for the welfare of
consumers which sometimes are not approved by people as their liking and
expectations were not taken into consideration.
4. Culture: culture includes beliefs , values , norms , signs etc. which pass on
from one generation to another generation. Culture groups are further
divided into sub culture groups having an unique consumption behavior that
provide important basis to marketers.
5. Refrence groups :these are the social and professional groups that
influences an individuals opinions ,beliefs and aspirations. The groups
provide an individual with an identity accomplishment and stability.
6. Marketing : how the products are marketed affects the buying decision of
the people . the time and manner in which the product is marketed affects
his consumption pattern.

Internal factors
1. Attitude : attitudes are learned as they are formed as a result of direct
experience with the product , information acquired from others or
exposures of mass media .attitudes occurs within a situation. It is
easier to create new attitude than to change an existing one.
2. Learning; it is a permanent change in ones behavior which occurs due
to some personal experience . learning has got various benefits in
every sphere of life and every aspect of business activities.
3. Perception :perception is a process where one can see, touch , hear
something and act accordingly . perception is selective . the variables
like color , price , intensity all depends upon ones perception which
leads to formation of a consumption pattern.
4. Motivation: it is a governing force of online consumer behavior as to
why a consumer reacts in a particular way. Motivation may be positive
or negative.

After considering these factors various filtering elements will be


applied by the consumers to make selection of the store to buy from
and revised filtered buying behaviour based on their final selection.

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