Final Factors Influencing the Information Search and Evaluation Process for Online Purchases

7/30/2019 Final Factors Influencing the Information Search and Evaluation Process for Online Purchases

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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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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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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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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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Final Factors Influencing the Information Search and Evaluation Process for Online Purchases