Learning objectives
In what ways do individuals engage in online shopping?
Over time customers expectations have changed for online shopping. Customers have a higher expectation than in the past, when engaging with an online e-Tailor. There are several things that customers expect when shopping online. One such expectation is the delivery of the product or service. Customers expect this to be sent in a timely fashion and, in fact, the customers that receive their product or service quickly will purchase from the same online store repeat times. Today, customers also want online businesses to respond to them in a timely manner when questions are posed to the business. A business should respond to the customer in the quickest manner possible, whether by phone, email, or some other channel to create a trust relationship with the customer. The business should also make sure that all products or services are available to the customer, which includes a wider variety of products or services. It should be easy for the customer to be able to find the product they need on the website, whether it be through navigation or through a search functionality. The customer also wants to feel as though the customer service is top notch and can follow through with any requests that they might make. All in all, the customers' perception and expectations have risen over the years, which has made if very important for businesses to adhere to the standards the customers are wanting from an online business.
What types of online retailing activities and strategies are available?
There are a few types of activities and strategies that are available to retailers online. These can be broken into two categories, which includes the information only strategy and the online sales strategy.
The information only strategy includes the billboards strategy, which includes a business creating a website only to display information about the business to create business awareness. The business will only include information about the business and nothing about the products or services they provide. The brochure strategy is used by a business to create a gallary of their products or services. A business might also create a catalogue strategy that provides it's customers tons of information, without any other type of online services. Lastly, an information only strategy might include a service strategy, which allows the business to create a host of online services that support their product or service.
The online sales strategy would include an export strategy that allows the business to sell online without any type of operational strategies being attached to their physical business. Another type of online strategy includes the mirror strategy, which includes creating a website that looks and feels like a business' physical operation. In this case, the online part of the business acts almost as if it is an additional store. The synergy strategy includes a strong link between the online and offline stores, which allows customers to return purchases to either or it allows a business to create cross promotions. The business might perfer a anti-mirror strategy, which includes the online store being the main driving force for the business and the stores are there just for support. Lastly, the online sales strategy includes the use of a virtual strategy, which includes the retail strickly selling online without any type of physical locations.
What are the strategic implications of trading online in consumer markets?
As a business moves forward in online trading, there will come a time when they need to close gaps caused by the choices of strategy dealing with online consumer markets. Businesses need to keep watching the way their online business is being run and make the necessary adjustments. Having a business structure or business model that is flexible to the needs of the online business and also meets expectations and goals set by the company is very important. The need for marketing and sales to create dynamic strategies that will keep customer engaged and also allow the business to grow at the same time. By reevaluating the strategies and goals of the online business, the implications will be few and far between.
Questions for marketers
Who are customers and how are web shopping experiences affecting future online behavior?
A business must determine who their customers are by creating a consumer profile based off of their most valued customers. This includes information such as age, education, employment status, gender, geography, household size, household type, income, mobility, and race or ethnicity. Breaking down the demographics of the customer base allows the company to understand who they are serving and the behaviors that will drive them to make purchases.
What are customer expectations of web-based service delivery?
Customers today expect high standards when they purchase from an online business. Many of the high expectations are driving online businesses to create policy and procedures that inforce a higher value of customer relationships. The business must make sure the delivery of products and services are meeting expections of the customers. Customers expect, when they purchase from an online business, that they are going to receive the product or service within a reasonable timeframe. The response time of the business to the customers is critical as well, because customers expect to be listened to. If a customer asks a questions, the business must respond. The customers are also looking for wide varity of products and services to meet their needs, so a business must create availability for the customer. Convience of finding products and prices is another expection customers want. If a product is not easliy found on the website, then the customer is most likely not return. Lastly, the business must supply a great customer experience. The customer does not want the business to ignore them by not responding in a timely manner. A great customer service experience includes price savings, promotial products, and rewards that will keep them satisfied.
Which factors affect demand for online business-to-consumer services?
Demand for online services of B2C is said to be driven by customer expectation and how the business meets the needs expected by the customer. Customization allows the customer to create a product or service that meets their needs. This allows a business to be flexible in what they are offering and it allows the customers to get the product exactly how they want it. A business can drive demand by creating contact interactivity between the busienss and the customer. Engaing the customer allows them to feel like they are a part of shapping the product or service. A business must also generate demand by creating discounts, rewards, or some other program that incourage customers to come back and make purchases. Customers want to know they are being cared for, so the business must show compassion by allowing the customers to get engaged and fill apart of the product or service. Allowing choice and convienence also drives demand, because customers want to feel like they are not restricted and want to be able to make purchases when they feel it is necessary.
What are the key decisions that a consumer-facing organization should consider when developing an e-retail strategy?
A business must make some very tough decisions when they decide to create an e-retail strategy. An operational strategy that creates both growth within the company and online is an important part of the decision making. One operational strategy that must be made is whether the business will support physical locations, or work strickly virtually. The business must decide the pricing models for the online business. This must compliment the business process that are currently in place. The business must decide the internal structure of the business, either by creating new departments, or integrating responsibilities into current departments. Largely, a business must make many decisions when creating an online business and each company must decide what is important to them.
No comments:
Post a Comment