online consumer buying process
DESCRIPTION
Talks about awareness, attraction, Engagement, Purchase and RetentionTRANSCRIPT
Week 5 Presentation
Value conceptAIMAN HARIS BIN SHARIFFUDDIN 24115606
WOOI TEIK LIM 25093584
Question 1
Measure the business cost and value of a mobile computing system for the field service representatives
at Alliance Insurance Company (AIC), a fictitious company name based on some actual companies.
Use the Supplier Investment model to estimate business costs and Supplier Desired Benefits model
to estimate value.
Supplier’s investment• Material (hardware & software)
• People (IT department & technicians)
• Infrastructure (Server & backup system, Website, Generators for buildings)
• Processes (Software training and courses)
• Communication (Internet Connection)
Supplier’s desired benefits• Transactional equity
- Less process time in servicing clients, increasing ability to service even more clients compared to doing things manually
• Relationship equity
• - Customer loyalty
•Organizational equity
- Creating and customizing own mobile computing system, hence information and knowledge hard to be imitated and may only be mimicked at high cost to other companies
Supplier’s desired benefits• Value for employees
- Motivates them to work better and may increase work effectiveness, efficiency and performance
• Value for investors
- Grants higher returns, stronger revenue growth and in turn, an attractive profit margin
Question 2
What is the Customers’ Investments and Desired Benefits of buying a tour package from AirAsia.com?
Customers’ investmentAcquisition
-Physical cost
-Psychological cost
-Transaction cost
Consumption
-Physical/mental effort
Association
-Relationship
-Personal association
Memory
-Attitudes
-Perception
-Expectation
-Emotions
Risk
-Uncertainty
Customers’ desired benefitsIntrinsic value (product’s ability to do something)
-Online purchasing, cheap and affordable holiday
Extrinsic value (product desired for own sake)
-Feelings of purchasing a tour package online
Self oriented value (exclusive use)
-Going abroad travelling on a holiday
Other oriented value (impressing others)
-As a form of luxury
Active value (active use)
-Go on a holiday and not laze around at home
Reactive value (response from other products)
-Tourist attractions
Immediate value (instant gratification)
-Excitement of purchasing a tour package online
Deferred value (value over time)
-Enjoying the whole holiday itself
Question 3
In each stage of online consumer buying process, there are e-business values that can be provided to customers. Describe these values and provide some
website examples.
Online consumer decision process
Online consumer decision process
AwarenessVisit-
Engagement Purchase RepurchaseAttraction
Awareness• Customers identify a need
• Customers becomes aware of products and services
• E.g. Facebook banners
Email newsletter
• E-business value: Novelty
Online consumer decision process
AwarenessVisit-
Engagement Purchase RepurchaseAttraction
Attraction• Customers develop specification in terms of position, features, benefits and branding
•Search engine is the first place customers go to.
• Search engine optimisation (SEO) and affiliate marketing
• E.g.
• E-business value: Search and transaction cost efficiency
Online consumer decision process
AwarenessVisit-
Engagement Purchase RepurchaseAttraction
Visit-Engagement• Customers will eventually get “pulled” into clicking the links of websites
• E-business value: Search and transaction cost efficiency
Novelty
Information search Interactivity
Product comparison Customer engagement
Comparison searches within website Live chat systemPop-up offers
Wotif.com Groupon
Online consumer decision process
AwarenessVisit-
Engagement Purchase RepurchaseAttraction
Purchase• Customers are finalising their purchases
• To prevent walk-out, websites should have:
- Simple checkout process (Airasia)
- Efficient payment system (Airasia)
• Also, complementary products should be offered (Amazon)
• E-business value: Novelty
Complementarities
Purchase• Customers are finalising their purchases
• To prevent walk-out, websites should have:
- Simple checkout process (Airasia)
- Efficient payment system (Airasia)
• Also, complementary products should be offered (Ebay)
• E-business value: Novelty
Complementarities
Purchase• Customers are finalising their purchases
• To prevent walk-out, websites should have:
- Simple checkout process (Airasia)
- Efficient payment system (Airasia)
• Also, complementary products should be offered (Ebay)
• E-business value: Novelty
Complementarities
Online consumer decision process
AwarenessVisit-
Engagement Purchase RepurchaseAttraction
Repurchase• Customer retention
• Post-purchase dissonance - disatisfaction
• Solution: Customer Relationship Management
• Efficient customer service, call centers, return policies, weekly newsletter, discount voucher codes
• E.g.
• E-business value: Lock-in
Stages Values How Examples Metrics
Awareness NoveltyBanner Ads
Email newsletterFacebook
AttractionSearch and
transaction cost efficiency
SEOAffiliate marketing
LelongLazada
Visit-Engagement
Search and transaction cost
efficiency
Comparison search
AgodaWotif
Novelty Website interactionLazada
Groupon
Purchase
Novelty
Simple checkoutPayment system
Airasia
ComplementaritiesComplementary
productsEbay
Repurchase Lock-inRelationship
marketingZalora
Question 4
What metrics can be used to measure these values (in question 3).
Stages Values How Examples Metrics
Awareness NoveltyBanner Ads
Email newsletterFacebook
AttractionSearch and
transaction cost efficiency
SEOAffiliate marketing
LelongLazada
Visit-Engagement
Search and transaction cost
efficiency
Comparison search
AgodaWotif
Novelty Website interactionLazada
Groupon
Purchase
Novelty
Simple checkoutPayment system
Airasia
ComplementaritiesComplementary
productsEbay
Repurchase Lock-inRelationship
marketingZalora
Number of ImpressionsEmail open rate
Ad Click Through RatesOrganic and inorganic search engine
Unique visitorsNumber of on-site searches
Bounce rates
Number of complementaries purchased per transaction
Conversion rateCheckout page completion percentage
Rate of plugins usageAverage time spent on site
Top exit pages
The number of returning customersSubscription email click-to-open rate
Loyalty coupon redemption rateCustomer lifetime value