Assoc. Prof. Dr. Aykan CANDEMIR Group Members; Ezgi TABAK1510201 Sercan ÖZYAŞAR1311134 Mohamed...

Assoc. Prof. Dr. Aykan CANDEMIR

Group Members;

Ezgi TABAK 1510201

Sercan ÖZYAŞAR 1311134

Mohamed SAMAKE 1310326

M. Ali YILMAZ 1310120

Online Consumer Behaviorwww.ege.edu.tr E-Marketing 03.April.2015

Online Consumer Behaviorwww.ege.edu.tr E-Marketing 03.April.2015

WHY DO PEOPLE PREFER TO BUY SHOP ONLINE ?

COMPARISON SHOPPING

WIDER SELECTION

BETTER PRICES

REVIEWS FROM OTHER

SHOPPERS

SAVING TIME

THE GROWTH OF ONLINE SHOPPING• Not too many years ago

most people shopped in their local stores complete with parking and weather problems, long lines, and wobbly shopping carts.

• Even when online shopping was available, people felt uncomfortable using their credit cards and giving their personal information to cyber-shops.

• That has all changed. Throughout the world online buying has grown exponentially.

www.ege.edu.tr E-Marketing 03.April.2015

Online Consumer Behavior

ADVANTAGES OF ONLINE SHOPPING

Convenience:• Online stores are usually available

24 hours a day,and many consumers have internet accsess both at work and at home .Other establishments such as internet cafe and schools provide access as well.

Information and Reviews:• Online stores must describe

products for sale with photos, text and multimedia files.Some stores even allow customers to comment or rate their items.

Price and Selection: • One advantages of shopping online

is being able to quickly seek out deals for items or services with many different vendors.



dısaDVANTAGES OF ONLINE SHOPPING



FRAUD AND SECURITY CONCERNS

LACK OF FULL COST

DISCLOSURE

HANDS-ON INSPECTION

PRIVACY

dısaDVANTAGES OF ONLINE SHOPPING



Fraud and Security Concerns

Given the lack of ability to inspect merchandise before purchase , consumers are at higher risk of fraud on

the part of merchant than in a physical store.

Merchants also risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchases.

Privacy

Privacy of personal information is a

significant issue for some consumers.

Different legal jurisdictions have

different laws concerning consumer privacy, and different

levels of enforcement.

Hands – on inspection

Typically, only simple pictures and or

descriptions of the items are all a customer can rely on when shopping

on online stores.

If the customer does not have prior exposure to the item’s handling qualities ,they will not

have a full understanding of the item they are buying.

Lack of Full Cost

Disclosure

The lack of full disclosure with

regards to the total cost of purchase is one of the concerns of online shopping.

The Different Online Shopper Personality Types

• The Researcher• Rewards Shoppers• Impatient Shoppers• Deal Hunters



The Different Online Shopper Personality Types



The Researcher

Researchers love to learn everything they can about a product before purchasing it

online.

They may watch a product for a while on various websites, to see what the average price is, so that they can know for sure when they

are presented with a price whether or not it is a good deal.

Researchers also enjoy reading reviews from other customers,

and regularly rely on ratings and reviews when deciding what to

purchase online.

Impatient Shoppers

Impatient shoppers will not stick around if your

checkout process is lengthy and

complicated.

They do not want to waste time signing up for an account, they

want to buy their items immediately, and if you cannot provide them

with immediate checkout, they will go to

another website that will.

.

Deal Hunters

Deal hunters are in search of the holy grail of deals.

They purchase items used or refurbished if it will get

them a better deal.

These are customers who might buy an item they

don’t actually need if you present them with a good

enough deal for it.

Deal hunters are also often on the lookout for free shipping deals.

Rewards Shoppers

Many online shoppers like to patronize the same online retail

stores repeatedly.

These brand loyalists enjoy customer loyalty

programs that give rewards or points for

purchases, and love to take part in deals and promotions that make them feel like they are working towards a goal with their purchases.

.

GLOBAL ONLINE POPULATION



ONLINE CONSUMER DEMOGRAPHICSAGE AND INCOME



ONLINE retaıl spendıng share



FFF MODEL



FFF MODELThe FFF model takes into consideration internal and external factors affecting consumer buying behaviour. It then proceeds to discuss various filtering elements customers will apply to make a selection of a store to purchase from and revised filtered buying behaviour based on their final

selection.



External factors

are the ones beyond the control of the customers. They can divide into five sectors: Demographics,

socio-economics, technology and public policy; culture; sub-

culture; reference groups; and marketing.

Internal factors

are personal traits or behaviours and include attitudes,

learning, perception,

motivation, self image, and semiotics.

Functional motives

relate to consumer needs and could include

things like time, convenience of

shopping online, price, the environment of shopping place (i.e.

couch buying), selection of products etc.

Non-Functional motives

relate more to the culture or social values like the brand of the store or product for

instance.

FFF MODEL – FILTERING ELEMENTSKimar and Dange recognized security, privacy and trust as three hurdles to online purchases.

Customers use these three factors to filter their buying choices and decide on the final selection of stores they are willing to buy from.

In other words, if your store doesn’t pass your customers’ security, privacy and trustworthiness criteria, they won’t buy from you. Even if you are cheaper.



Compared to traditional brick and mortar shops, online shopping carries more risk during the purchase process.

Customers recognise online as a high level risk purchase and have become aware of what might happen with their data online.

They use that knowledge now to filter their purchase options by 3 factors:

FFF MODEL – SECURITY

It’s an unfortunate characteristics of the internet that information there could be

easily lost or stolen.

Your payment details or personal information could easily be retrieved from a database it is stored in by the shop for instance, as we have seen recently with few major security

breaches.

Customers are growing more aware of the dangers of stolen data from the web.

And they filter their purchasing alternatives against security criteria.



FFF MODEL – PRIVACY



Another type of risk online is having personal information handed over to or stolen by 3rd party companies to send unsolicited emails

and spam to customers.

Even though the results of privacy breaches may not be as severe as losing your financial

data, it can still cause a great deal of frustration and diminish trust in stores.

A lack of trust in a store’s privacy policies is a serious obstacle for many customers.

FFF MODEL – Trust



Online trust is essential in building any relationship with customers.

There seems to be however a diminishing trust in online merchants.

This is especially true when it comes to smaller, niche stores.

Customers focus on Amazon and other giants, shops with big brands behind them and don’t

apply the same level of trust to a smaller shop.

So if you run a store selling bike storage for instance, you should work hard to build a

high level trust among your customers to be picked up for the order.

A lack of trust in a store’s privacy policies is a serious obstacle for many customers.

FFF MODEL – Filtered Buying Behavior



The last element of the model covers what authors call the filtered

buying behaviors, a set of expectations and motives revised by

the filters we discussed above.

THANK YOU FOR LISTENING



Assoc. Prof. Dr. Aykan CANDEMIR Group Members; Ezgi TABAK1510201 Sercan ÖZYAŞAR1311134 Mohamed...

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