Question

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?

Answer 1

Black Friday vs. cyber Monday deals

Whether consumers participate in black Friday or cyber Monday deals, one has to remember that just because an item has been marked down; it doesn’t ensure that it is a good deal. In fact, studies have found that 20% of items sold on black Friday are expensive than they were sold the week before. Hence a little research has to be made on these things.

As the above being said, we find that black Friday offers good deals on various items like electronic goods, entertainment, even on furniture & appliances, on holiday decors etc. though cyber Monday is definitely nothing to scoff at. But the best thing a consumer can do is to compare online prices & store prices to save their money.

Traditional or online stores:

From my viewpoint & the practice that I have been following all these years is traditional shopping. This is because; from my view point I prefer traditional shopping rather than online shopping for the following reasons:

• We can examine the product on various things like price, manufactured date, expiry, best before period etc. directly before purchasing it.
• We can get a wide variety of choice which is not possible in online shopping where we get only few variety of products based on that.
• We can visit many stores & shopping centers when we are not satisfied with a single store which is not possible in online shopping.
• Though it takes lot of time in visiting the shops directly, we get the product readily on hand but in online shopping we have to wait for days for getting the product on hand.
• At times, we will also maintain good relationship with people available in the stores as a result of which we get frequent updates on recent discounts, offers, new arrivals etc.

Thoughts on 24/7 shopping:

24/7 shopping is considered to be advantageous for people especially working people who rarely have time to walk into the stores directly to do their shopping. Though 24/7 virtual shopping saves people’s time & money, I don’t prefer it much.

I have personal experiences of getting out dated or poor quality products on online shopping. Hence I rarely prefer. We also tend to come across only, limited brands & choices of products & we rarely get on the brands that we prefer. But they also have their own advantages like saves people time, products will be always available, just a phone or a computer would be sufficient to make our orders, we need not require any one’s help in doing the shopping & we can shop at our own time when we are leisure & done with our work. Whereas when we have to walk to the stores, we need to go before the shop gets closed as a result of which we have to hold on our own work etc.

Stages of consumer decision making process:

The stages of consumer decision making process involves recognition of need, information search, evaluation of alternatives, purchase & post purchase behavior etc.

The stage which would be influenced by mobile platform would be information search. People generally use their mobiles & other electronic devices like computers, laptops etc. to search the information they need. At this stage, they get their required information on their goods & services which ultimately influence their decision.

Though they tend to get only few choices of products, if they get attracted on their prices, discounts offers, external appearances like packaging, color etc. they naturally tend to purchase them rather than making any other choice as they would be very well satisfied with these things.