final factors influencing the information search and evaluation process for online purchases
TRANSCRIPT
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Factors Influencing the Information
Search and Evaluation Process for
online Purchases
4 May 2013
Presented By Arun Trikha
MBA (PT) 4706/10
Semester VI
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Table of Contents
Introduction
Literature Review
Research Methodology
Research Findings and Conclusion
Appendix
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Introduction
Online Marketing
Factors Influencing Growth
Large domestic internet base
Positive consumer behavior pattern
towards online media
Growing proliferation of internet onmobile
Large expatriate population
Lack of trust in internet marketing
Literacy and language barrier
Drivers Challenges
Trends
Internet turning into an effective sales medium
Growing of online marketing activities by corporate
Emergence of social media networking
Indian players expanding globally
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Introduction
Online Marketing
Benefits to Potential Buyers
Customers can order products 24 hours a day wherever they are. They dont have to sit in
traffic, and a parking space, and walk through countless shops to find and examine goodsConvenience
Customers can find reams of comparative information about companies, products,
competitors, and prices without leaving their office or homeInformation
Customers dont have to face salespeople or open themselves up to persuasion andemotional factors; they also dont have to wait in line
Hassle Free
Benefits to Marketers
Companies can quickly add products to their offering and change prices and descriptionsQuick adjustments
to market conditions
On-line marketers avoid the expense of maintaining a store and the costs of rent, insurance,and utilities. They can produce digital catalogues for much less than the cost of printing and
mailing paper catalogueCost
The Internet is arguably the most interactive and engaging medium among various others.
Interactive campaigns have become a norm with the power of the online medium
Interactive
Engagement
Marketers can learn how many people visited their on-line site and how many stopped at
particular places on the siteAudience Sizing
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Introduction
Online Marketing
Internet Marketing Trends 2013
Design matters1
Marketing goes visual2
Social referrals3
Mobile and video4
Cloud based tools5
The multi screen world6
Social media gets smarter7
Retargeting goes mainstream8
Email marketing9
Internet in pocket10
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Literature Review (1/2)
In ternet market ing also refers to the placement of media along many dif ferent stages of the cus tomer
engagement cyc le throug h search engin e marketing (SEM), search engi ne optim ization (SEO), banner ads
on specif ic websites, email market ing, mobi le advert is ing, and Web 2.0 strategies
Socia l media, email market ing, and s earch m arket ing is con sidered as the top three onl ine investment
channels. It has been noted that onl ine users in India have exhib i ted wil l ingness to make purc hases over
the Internet by get t ing inf luenced by the o nl ine advert isement; th is is quite evident from the growing net
comm erce indust ry
The tota l onl ine advert is ing spend in India are focused across the categor ies suc h as search, porta ls/
vorta ls, soc ia l media, email , video, onl ine classi f ieds. The reta i l industry has also benef i ted from its onl in e
version wh ich has resulted in the growth and expansion of the sector wor ldwide
BFSI, automot ive, and travel indu stry are the dom inant advert isers using onl ine media in India.
Autom ot ive dis play advert is ing alm ost doubled in FY2011 to reach INR 76Crores, represent ing
grow th of 95%
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Literature Review (2/2)
"Those who are still more into the offline environment dont understand the potential online offers. From aspend allocation, for online players 70% of spends go online since thats where the consumers are. Once
online marketers start establishing this correlation, spends on digital will grow.
Dhruv Shringi, Vice Chairman, IAMAI & Co-Founder & CEO, Yatra.com
" Mobile offers great opportunity in terms of first time users searching on their devices. In developed
countries, 30-40% of the transactions on travel happen on mobile. In India, that figure is only 3-4%,
highlighting the huge potential that exists.Deep Kalra, CEO, Makemytrip
Brands are evolving into the digital space and it is important to use creativity for the benefit of the
consumers. Creativity allows us to communicate an emotion and that is essentially its role in my business.
At Marico, we look at digital as a growth driver.
Aditya Save, Head-Media & Digital Marketing, Marico
To tap the true ad spend potential of this medium, what will really help is a concerted effort to engage lead
brands and marketers with real success stories, where the digital medium has played a key role in building
brands and businesses.
Ajay Kakar, CMO, Financial Services, Aditya Birla Group
Digital as a medium has to put creativity in the hands of a consumer. We will see a lot more openness in
the near future.
Vikas Tandon, Managing Director at Indigo Consulting
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Research Objective and Scope
Research
Objective
The primary objective of this research report is to develop deep understanding of the factors
that drive and influence the following:
Study the factors which influence the online purchase closure
Perception, attitude and behaviour of the consumers towards the online purchases
Analyze the products and services offered by the various online marketing agencies inIndia and their impact on the purchase decision of the consumers
Scope of the Study
IndiaGeographic Scope
Online MarketingIndustry Scope
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Research Methodology
Primary Research Online Survey
To und erstand the percept ion of cons umers towards the onl ine market ing and understandthe current and forward look ing trends in o nl ine market ing in India, I have conduc ted this
surv ey amongs t Internet users, onl ine sho ppers, people knowledgeable abou t internet.
Survey
Questionnaire
Based on information gathered through secondary sources, I have prepared a succinct
questionnaire, ensuring an appropriate survey length. The questionnaire comprised of9questions
Sample Size 66respondents including Internet users, online shoppers, people knowledgeable about internet.
This also includes housewives, professionals, and students
Screening
Criteria
I have conducted survey among respondents who qualify the following:
Smart phones
Access to internet
Made online purchase once in last 6 months
Data Synthesis
and Analysis Used data collation and analysis techniques to interpret the final outcome , hopefully to arrive
at an understanding of the process of online purchase
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Research Methodology
Primary Research Questionnaire
Based on the inform at ion gathered through s econdary sou rces , succinc t quest ionnaire is prepared
includ ing var ious themes. These themes includ es:
Perception of consumers about online marketing
Factors influencing the information search
Factors facilitating online activities
Major concerns of people while making an online purchase
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Research Methodology
Secondary Research Sources
To gather information on the online marketing, influencers that affect the consumers online shoppingbehaviour, trends, dr ivers, and barr iers, I have cond ucted an extensive scan of rel iable secondary
sourc es. Below is an indicat ive list of the sour ces:
Websites of major online marketing agencies in India
Press releases and news articles
Published reports and literature
Published studies and articles by subject matter experts
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Research Findings
Customer is
the king
The adage Customer is the King stays relevant in the online purchase domain as well
The customers are making decisions of online purchases by streaming through other
customers reviews and interactions on the internet
The social media sites are becoming a major referral grounds
Any subpar service/ product is lambasted online leading to wide spread awareness to those
connected and also the results pop up in any searc h conducted
Online
Purchase
Ecosystem is
here to Stay
With the advent of smart phones, there is a bank and a shop in every pocket
A well connected consumer is a boon for the online purchase decisions
Data search, variety, price research, product search are becoming more vast and more easy
with every passing day
The online identity and privacy security seems to be reaching a place where it is more or less a
safe market place, barring certain threats, which like real market place are ever evolving
The earlier apprehension of Lack of touch definitely is there but is slowly getting away given, I
think, the impact of easy returns policies.
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Conclusion
The f inal analysis thro ws l ight at the major inf luencers in the onl ine purchase process :
Most people are now comfortable making online purchase, this may be
due to the ease of payment processing/ replacement offers
The major concern of privacy/ identity theft, is slowly getting addressed
through the measures to secure online customers, but still majority has
this as a concern
One new development that has come out is that the peoples decisions are
majorly influenced by the opinion of other users ( interestingly enough,
the expert opinion is no major swinger)
Online adverts/ E-mailers/ SMS , access to internet and smart phones are
also influencing the profanity of making an online purchase.
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Case Studies
Carwale.com
CarWale.com, one of Indias leading automotive web portals, allots 80% of its budget to the
online medium; a large portion of it goes to Google AdWords
The intent behind forming CarWale was to offer well researched content to both car buyers and
sellers in India to enable them to make informed choices. CarWale also connects users to
leading car manufacturers like GM, Skoda, Mahindra, and so on. It also has affiliations with
leading insurance and finance companies
CarWale.com turned to Goo gle AdWords to help them attract more users. The online
medium worked wonders to help them effect ive ly target two di f ferent audiences buyers
and sellers, on o ne hand and m anufacturers and dealers, on the oth er
Google AdWords has helped CarWale.com get around 20-35% new visitors per month.According to Tufail, Conversion Tracking in GoogleAdWords is an effective way to track ROI,
and to make future predictions
Flipkart.com
Flipkart.com was launched by a passionate group of professionals who aimed at giving Indians
a good online shopping experience and excellent customer service. Technological initiatives
were focused on making the search for books faster and more convenient
Marketing Effort: In its social media initiatives, Flipkart.com aims at facilitating an easierconversation channel for customers and users. Conversations are to the point and are targeted
at specific issues, thoughts and ideas. Flipkart.com began activities to make its presence felt on
Facebook and Twitter about a year ago. The company has also used LinkedIn to connect with
people. The popularity of the site has grown through recommendations
Results: Flipkart.com has a strong presence on Facebook, with a staggering number of fans.
The company has more than 690,000 fans and has used easy, interesting conversations to
engage them. Flipkart.com has 2,877 followers on twitter. Flipkart.coms Alexa global ranking is
2,101, while its India ranking is 164
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Questions ?