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Consumer Buying
BehaviourIndustry: E-MarketCountry: United States
Presented By
A. Dileep Kumar
Eyshan BawaRehan ul Haq
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Definition
Philip Kotler Professor, Kellog school of managment
Those activities directly involved in obtaining,consuming, and disposing of products andservices, including the decision processes thatprecede and follow these actions
Michale R Solomone
It refers to the buying behavior of final
consumers- individuals households who buygoods for personal consumption
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Response Model ofConsumer Behavior
Stimuli Buyers Black BoxBuyer Response
4Ps Buyer decision process
Brand choiceOther characteristics Buyer Characteristics
Dealer choice
EconomicProduct choice
Technological
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Simplified Model ofConsumer Behavior
Decision-Making Process
Sociological Factors
Culture
Social Class
Reference Groups
Opinion Leaders
Psychological Factors
Needs
Perceptions
Motivations
Attitudes
Information
Search
and Evaluation
Problem
Recognition
Purchase
DecisionPost-Purchase
Decision
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What Makes ConsumerBuy??
Attitude reflects the degree of favorableness or
unfavorableness an individual feels about someoneor something
In the adoption of electronic transactions, a number
of studies have adopted the attitude theory toexplain the effect of attitude on consumer behaviorin the online environment.
There is evidence that consumers attitude towardsonline transaction influences their purchase decision.
Cultural and social diversity are the two main
factors that need consideration when assessing
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Amazon .comAmazon.com was born in 1995
Amazon passed the $5 billion sales mark it tookWal-Mart 20 years to achieve this.
Amazon was able to achieve this only because of
up gradation of technology and increase in numberof online users
Achieving customer loyalty and repeat purchase
has been a key for the success of Amazon.
Many companies failed because they haveachieved in getting awareness but not loyalty.
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Contd..
They have achieved this because of thorough
research on consumer behavior
The research team at Amazon analyzes theconsumer buying pattern by collecting the data
like1) Number of times a customer visits a particularwebsite
2)The amount of time a customer spends on a
particular website3)Counting the number of clicks performed bycustomer
A company like Amazon could record every
F h f
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From human to software-based recommendations
Amazon has developed internal tools tosupport this Culture of Metrics called MARCUS
This is a software which converts Human
behavior in to rate to scale
This software collects the data like the numberof page views adds ( added to the basket)
repeal (Content requested but back button thenused)
SO MARCUS has helped Amazon to study
Consumer buying behavior on internet
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Mc Donald's Mc Donalds, the long time leader in fast-food
wars faced a cross-roads in early 2000.Domestically sales and revenues are flattering ascompetitors encroached on its domain
So they have started their online business. Itmainly consists of taking orders online anddelivering the goods at their door step.
An influential factor in consumer attitude towardsnon store shopping is exposure to technology.
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References Alba, J., Lynch, J., Weitz, B., Jeniszewski, C., Lutz, R.,
Sawyer, A. and S. Wood. home shopping: Consumer,
retailer, and manufacturer incentives to participate in theelectronic marketplaces. Journal of Marketing.Vol.61, pp.38-53
Aoyama, Yuko. (2009). The info Society, Japanese style:
corner stores as hub of e-commerce. World of e-commerce: economic, geographical, and social
dimension. West ussex: Wiley & sons ltd
Bellman, S., Lose, G.L., and Johnson, E.J. (1999).
Predictors of online buying behaviour. Communications ofACM. Vol.42, no.12, pp. 32-48.
Bingi, P., Ali, Mir and Joseph, Khamalah. (2008). TheChallenges facing Global E-commerce. Information System
Management. Vol. 9, no.3, pp. 26-34.
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Thank you!!