Consumer Online Buying Behavior
Where is the Buy Button?
Susanne
Tumpfart
1. Advisor: Colin Egan, BA MBA
2. Advisor: Helga Wannerer, MA
Content
Research Question
Motivation & Background
The Consumer
The Market
Research Method
Analysis - Groupon
Conclusion
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Research Question
(1) How does the consumer online buying
behavior operate?
(2) Which influencing factors are crucial to
the shopping decision?
(3) What drives the consumer to shop online?
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Motivation & Background
Interests in the B2C market
Understanding of the online market
Online marketing as the present and future
marketing channel
In-depth information in the consumer online buying
behavior
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The Consumer – Psychological Factors
Motivation
Learning
Involvement
Memory
Attitude
Consumer decision-making process
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The Consumer – Psychological Factors
Model of Consumer behavior
Source: Kotler (2011)
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Motivation
Humanistic theory
Maslow
Herzberg
Theory of cognitive dissonance
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Learning
Classical Learning
Pavlov
Operant Learning Trial and error learning
Positive/Negative Reinforcement/Punishment
Insight Learning
Latent Learning
Observational Learning
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Consumer Decision-Making Process
Levels
Types
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Extensive problem-solving
Limited problem-solving
Habitual decision-making
Complex buying behavior
Dissonance-reducing buying behavior
Variety-seeking behavior
Habitual buying behavior
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Consumer Decision-Making Process
Stages
10
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-Purchase Decision
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The Market
History
E-commerce
Types of e-Marketing
E-Retailing
Market Study Austria
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The Market – Types of E-Marketing
E-Mail marketing
Permission marketing
Mobile marketing
Online advertising
Search Engine marketing
Social media marketing
Viral marketing
Website Design
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The Market – E-Retailing (1/2)
Navigation
Product pages
Cross and up-selling
Frequently asked question site
Calls to action
Wish list
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The Market – E-Retailing (2/2)
In-site search facility
Price details and shipping costs
Contact information/Customer Support
Methods of payment
Security
Fully depicted buying process
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Market Study Austria
79% search actively for information
84% male and 74% female
44.5% (2011) – 10.9% (2003) online shoppers
Clothes & Sports, Travel & Accommodation, Books,..
82.9% website Austrian companies
464 million EUR/ 13.6% total turnover on sales (2010) through
e-commerce
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Research Method
Research Process
Phase I
Phase II
Phase III
Phase IV
fDetermine
the Research
Problem
Select the
Appropriate
Research
Design
fExecute the
Research
Design
Communicate
the Research
Results
Exploratory Research – Secondary Data
Literature Review – Qualitative approach
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Groupon
Background of business model
Facts:
142.87 million subscribers (2011)
1.6 billion U.S. dollars revenue (2011)
400 markets and thousand of cities
Price Discrimination & Advertising – merchant
83% experience goods (dinning, tickets and lifestyle products)
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Groupon
Growth challenges
- unpatentable & simple to replicate
- 600-700 copycats
- exceed of the capacity of the merchant
- competitors tailor the daily deals and proximity
to the user improve deal density
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Groupon
Growth challenges
- LivingSocial smartphone app - within a half
mile of
merchant - redeemed from 11 a.m. to 2 p.m.
- push in new markets, travel, goods and tickets
- merger and acquisition
- IPO Nov 2011 raise of another 748.5 million
U. S. dollars
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Groupon
Comparison LivingSocial
- undercut Groupons’ 50% fee charge
- operates in “hyperlocal” markets
- Amazon invested 175 million U. S. dollars
- acquiring of Ticket Monster South Korea
Facebook failed after four months
Local Competition Newspaper & Co
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Conclusion
Social Interaction
Variety-seeking
Convenience
Information search
Easy to use
Hyperchoices
Fully depicted buying process
Reassurance of wise choice
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Thank you!
Susanne Tumpfart