Consumer Buying Behavior Read the following Case Assignment: Ebay Creating Custo

Question

Consumer Buying Behavior

Read the following Case Assignment: Ebay

Creating Customers on the Move The advent of mobile commerce (m-commerce) has begun to create significant changes in the way consumers make purchasing decisions. The introduction of online shopping first began to draw customers away from brick-and-mortar retailers, changing the location of where they made their purchases. The use of mobile devices has expanded the location of purchase decisions even further, so now consumers can make purchases from almost anywhere, so long as they have a mobile device with them. It also has leveled the playing field for consumers in many cases, as it allows them to comparison shop on prices of products that they might find in stores.

In 2009, the mobile commerce market generated $18.3 billion in total revenue. By 2015 it’s projected to reach over $119 billion. When it comes to m-commerce, eBay has jumped in with both feet. It is estimated to hold about 3.3 percent of m-commerce, compared to online retailer Amazon’s 1.5 percent. It also was estimated to sell $1.5 billion in goods via m-commerce in 2010, compared to $600 million in 2009. eBay launched its first mobile application for the iPhone in July 2008 and has since produced 14 apps, including eBay Selling, StubHub, Deals, and Fashion. eBay’s core iPhone application has been downloaded 14 million times, and its entire stable of apps has seen over 30 million downloads worldwide. Purchases range from clothing and accessories to sporting event and concert tickets, computers and technology gadgets, collectables, and even luxury automobiles. Research indicates that more than half of regular m-commerce purchasers are comfortable spending over $100 on a mobile purchase, and 14 percent are willing to spend over $1,000.

eBay has been quick to embrace the trend toward comparison-shopping, as potential buyers compare in-store prices online with those offered by other retailers. In June 2010, eBay purchased RedLaser, a mobile app that uses the cell phone camera to identify a product’s barcode and locate that product within eBay’s system.

If a buyer is searching for a certain designer jacket for example, he could compare prices between eBay’s auctions, flat priced buy-it-now options, and eBay’s Fashion Vault, which offers limited-time deep discounts on select high-end merchandise.

But while eBay has excelled in m-commerce so far, its ability to fully capitalize on this growth potential depends on how it is able to influence consumer-purchasing decisions. Merely allowing consumers to search for items, compare prices, and then make a purchase isn’t enough. As eBay VP of mobile platforms Steve Yankovich says, “We want consumers to engage when they don’t have a purchase in mind.”

The combination of apps with mobile devices enables browsing and purchasing virtually anywhere at any time, especially during downtime—say when the potential buyer is getting a haircut or waiting in line at the coffee shop. By enabling buyers more opportunities to shop and make purchases, eBay is hoping to spark purchases based on the buyer’s immediate situation. The eBay Fashion app is designed to inspire browsing and experimentation, offering features such as a clothing-focused search function, a virtual closet to save various finds, and a mix-and-match feature that allows users to pair up articles of clothing with various accessories. Users can even take a picture of themselves using the phone camera and the Fashion app will superimpose the outfits they create over their figure, allowing shoppers to digitally “try on” the looks. So if a purchaser saw a dress she liked at a party, she could “try it on” and match it up with accessories in her wardrobe. eBay is planning to release even more apps like eBay Fashion, targeting key eBay shopping demographics such as car enthusiasts and home-and-garden enthusiasts.

Early trends suggest that shoppers are responding to eBay’s efforts as well. As eBay has continued to develop the offerings of the eBay Fashion app, average user browsing time on the app has increased by 40 percent since its original release and mobile fashion sales tripled over the past year. If nothing else, the new trends in m-commerce move very quickly, and eBay must continue to innovate if it wants to stay ahead of the game. Says Yankovich, “Nobody knows what’s going to happen in mobile. We need to be ready to spin on a dime.”

Answer the following:

Which stages of the consumer decision-making process are affected most by comparison shopping on mobile platforms? Explain.

Technology has drastically altered the consumer buying behavior, today as consumers we have the luxury to browse and shop virtually anywhere at anytime. What are your thoughts on being able to shop 24/7 virtually?

Do you find yourself shopping online more as opposed to the traditional shopping method of visiting the store during store hours? Why or Why not?

What are your thoughts on Black Friday in store deals versus Cyber Monday, do you find one to be more beneficial to the consumer than the other?

The requirements below must be met for your paper to be accepted and graded:

Write between 500 – 750 words (approximately 2 – 3 pages) using Microsoft Word.

Attempt APA style, see example below.

Use font size 12 and 1” margins.

Include cover page and reference page.

At least 60% of your paper must be original content/writing.

No more than 40% of your content/information may come from references.

Use at least two references from outside the course material, preferably from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the two reference requirement.

Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) must be identified in the paper and listed on a reference page.

IN YOUR OWN WORDS!!!! NO PLAGIARISM!!!!

Explanation / Answer

The decision making process in consumer behaviour is characterised by five broad stages in the following order:

Out of these five stages, the third step of “Evaluating Alternatives” is most affected due to the advantage of comparison shopping on mobile platforms. This is because in the evaluation of alternatives, prospective consumers compare different products or services based on prices, quality or other factors that are important to the personal judgement of each consumer. Online shopping comparison allows for extremely clear comparison of prices across various sites, so the person chooses to buy the same good/service from the site that offers it at the least price. Similarly, quality concerns can be addressed by referring to customer reviews and ratings that guide the prospective consumer regarding the quality of the good/service he/she is targeting to buy. This transparency of comparison is not available while shopping in stores and this is the most affected step of consumer decision making process.

Being able to shop virtually anywhere 24X7 has both its pros and cons. There are clear advantages of virtual shopping over going to the stores to shop.

A consumer can shop from anywhere, at any time convenient to his/her personal routine, without having to worry about whether the store is open or not. For example, a person can shop at 2am in the morning if he/she wishes to do so. Similarly, the consumer can avoid the trouble of going outdoors in traffic or too much heat/chill and just shop indoors whenever he/she pleases. The whole point of technology is to make lives easier for humankind and that is exactly what 24X7 virtual shopping has done. It has made shopping hassle free, set serious comparison standards for different brands and is a boon to people who hate shopping outdoors. Therefore even though it’s true that technology has drastically altered the consumer buying behaviour, it has done so for the better.

Any consumer finds himself/herself shopping way more than intended or required while virtually shopping 24X7 over traditionally shopping during store hours, outdoors. This is because limited store hours prevent the customer from browsing through products for an unlimited period of time. The decision has to be made faster and choices are narrowed down as many alternatives are left unexamined by the consumer. Additionally, consumers end up buying a lot of unnecessary things online while browsing casually. Two reasons for this can be- great deals on products/services that makes the consumer want them just for the sake of deals, more than for immediate need; and ads that pop up while browsing online directing the customers from one site to another to show various attractive deals. These are not available while shopping traditionally outdoors. Thus, while shopping outdoors, a person who went grocery shopping wouldn’t end up buying a few dresses for herself necessarily. But while grocery shopping online, attractive fashion deals might redirect the customer into buying one too many unnecessary clothing items that the consumer hadn’t even planned for.

Both Black Friday and Cyber Monday have the same agenda of peaking sales by offering crazy deals across a wide range of goods and services. While Black Friday is the day after Thanksgiving where retailers cut down prices and traditional shopping sees unimaginable footfall, Cyber Monday is the first Monday after Thanksgiving weekend where online shopping sites offer discounts to customers. Black Friday is an old tradition that some people like to maintain as a spirit of happiness and celebration with family while Cyber Monday is a newly formed annual routine that is getting online buyers interested in steeping up shopping. Although it is difficult to ascertain which of the two is more beneficial to the consumer as it clearly boils down to personal preference, both these events attract customers and rake in a lot of revenue as the heaviest volume of shopping is usually done during this time of the year.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.