The document discusses online consumer behavior and e-retailing from both the consumer and retail perspectives. It examines key issues like customer profiles, beliefs and experiences that impact online shopping. It also looks at the development of e-retailing and various formats and operational strategies used. The implications for e-retail marketing strategies are also discussed.
2. The consumer perspective: online consumer
behavior
The retail perspective: e-retailing
Implication for e-retail marketing strategy
3. Business-to-Customer (B2C) markets have made a
significant contribution to the commercial development of
the internet encouraging wide-scale use of transactional e-
commerce sites by a diverse and increasingly global range
of consumers.
Key issues which have an impact on the growth and
development of online B2C markets focusing on the retail
store
4. THE CONSUMER PERSPECTIVE: ONLINE
CONSUMER BEHAVIOUR
• Level of consumer demand for online shopping and services
ultimately determine the size of e-retail marketers and when or if a
market saturation point will be reached for online purchasing.
WHO ARE THE ONLINE CUSTOMERS?
THE CUSTOMER PROFILE:
Consumer’s profile can strongly influence where, when and how an
individual shops online and also have important marketing implications
which includes classification variables and character variables.
AGE
EMPLOYMENT
STATUS
GENDER
EDUCATION GEOGRAPHY
HOUSEHOLD
SIZE
HOUSEHOLD
TYPE
INCOME
MOBILITY
RACE AND
ETHNICITY
5. CONSUMER BELIEFS ABOUT RANGE OF VARIABLES MIGHT
ULTIMATELY SHAPE THEIR ATTITUDES TOWARDS THE
INTERNET AND THEIR PURCHASING INTENTIONS. EXAMPLE
INCLUDE :-
Security and privacy of information
Risk
Trust
Perceived usefulness
Ease of use
6.
7. CONSUMER’S ONLINE SHOPPING EXPERIENCES
Avaibalility Convenience Customer service Deliverytimeliness
LOYALTY VARIABLES
Customizartion
Cultivation
Care
Community
Contact
Interactivity
Character
Convenience
Choice
8. THE RETAIL PERSPECTIVE: E-RETAILING
Development of e-retailing
• When the development of the internet as a trading environment
begain with the first exchanges of commercial e-mail, traditional
retailers had little interest in trading online in early 1990’s.
• For many retailers it was considered as a remote ‘geekish’
environment used solely by computer experts and scientist.
E-retail formats and operational strategies
OPERATION CATEGORIES
Bricks and clicks
Clicks and mortar retailers
Pureplay retailers
Facebook commerce
11. PERFORMANCE COMMENTARY MANAGERIAL IMPLICATION
The disparity between
brand strength and website
offer
The gap between internet
use and the lack of website
development means there
is still the potential to
capture browse and buy
behavior.
Companies need to
develop website to meet
customer expectations
capture this behavior.
The disparity between
brand strength office and
online
Retailer brand strength is
frequently not reflected
online.
The first dot-com wave was
concerned with established
first mover advantages.
A lack of alignment
between the nature of the
online competitive
environment and the
maturity of consumer
demand
The most advanced
entrants are from overseas
or national catalogue
companies.
The market is still at an
early stage in many retail
categories.
Inertia in decision making There are battle for budget
within retailer.
Barriers to customer
contact need to be
removed.
12.
13. Type of B2B organization marketing and
trading environments
Option for online inter-organisational trading
How digital technologies can support B2B
marketing
Digital marketing strategies
15. There are three main types of organisational markets in
which businesses primarily trade with businesses:
1. Industrial
2. Reseller
3. Government
Analysis of the main organisational markets reveals variations in
company size, trading requirements, investmens and trading
potential.
16. Some of the key differences in applying these for B2B are:
Search engine marketing
Online PR
Online partnerships
Display advertising
Opt-in e-,mail
Social media marketing
17. LEAD GENERATION AND CONVERSION
OPTIMISATION FOR B2B MARKETING
• Stage 1-inbound marketing focusing on search, online PR and
display advertising used to attract website
• Stage 2-engagemnet devices like video whitepapers or other
forms of market education material is used to encourage the
visitor to interact with site and share information via social media.
• Stage 3-offering access to permission based content valuable to
the visitor is used to generate leads via encouraging the visitor to
register on the site supplying an email address and profile
information or sharing the content via social network
• Stage 4-leads are followed up through personalized email
sequences or where appropriate outbound phone calls where
leads where lead are qualified as a valuable
18. Post sales
customer
relationship
managemnet
•Buyer-seller
relationship
•Electronic billing
•Self service
technologies
•Online product
registrations
•Online technical
support
Market research
•Online survey
•Online focus groups
Knowledge
sharing
New product
development
knowledge sharing
Online advertising
knowledge sharing
Online sale
knowledge
Online service
knowledge
addressability
CUSTOMER RETENTION IN B2B MARKETING
19. OPTION FOR ONLINE INTER-
ORGANISATIONNTRANDING
These are the
main type:
1. E-sourcing
2. E-tending
3. E-information
4. E-reverse
auctions
5. E-MRO
5 key drivers or
supplier selection
criteria for e-
procurement
adoption related to
improving:
1. Control
2. Cost
3. Process
4. Individual
performance
5. Supplier
management
20. B2B E-MARKETPLACES
ELECTRONIC MARKETSPACE
-virtual marketplace such as the internet in which no direct contact
occurs between buyers and sellers.
Perhaps the most straightforward way to classify e-marketplaces is
the type of user for example:
1. B2B independent e-marketplaces
2. Buyer oriented e market place
3. Supplier oriented e marketplace
21. HOW ORGANISATION MAKE EFFICIENCY GAINS
a) Decision information costs
b) Quality cost
c) Factor costs
a) Financial dimension
b) Operational dimension
c) Market dimension
d) Strategic dimension