In: Operations Management
When consumers make a purchase, they progress through a series of behaviors. The consumer decision-making process describes those behaviors and the activities that take place at each stage. In order to increase sales, marketers are looking at the five stages and trying to find ways to influence the consumer as they progress through the CDM process. Select one company below and respond to the questions. The Internet is the most recent tool that marketers are using to influence consumers. Discuss the impact of the Internet on the five stages of the CDM process. What happens differently, or how does the Internet use these processes to sell more efficiently? Need Recognition – During the first stage, the consumer recognizes a need that can be satisfied by a purchase. What are ways that Internet marketers are attempting to trigger consumers' recognition of needs? What are some things that Amazon.com [http://www.amazon.com/] is doing to activate need recognition? Alternative Search – Once the consumer realizes a need they begin to search for potential ways to satisfy that need that provides details about the alternatives. There are five primary sources of information: internal, group, marketing, public, and experimental sources. How can the Internet provide information for consumers? Which of the sources can the Internet influence? What impact does the information available at Edmunds [http://www.edmunds.com] have on consumers' alternative search? Alternative Evaluation – All the viable alternatives that can satisfy the need are evaluated and compared against each other. The consumer selects the brand which best satisfies the need as their intended purchase. Many times comparing products is difficult because of complex product features, numerous available choices, and physical distance between products in stores. Visit PriceRunner [http://www.pricerunner.com] and select any product category of your choice. How does this web site help consumers compare product alternatives? Purchase Decision – The consumer decides to make a purchase of the intended brand, purchase a different brand, or postpone the purchase. The Internet plays a major role in consumer's purchase decisions. What are some Internet features that influence the purchase decisions? Revisit Amazon.com and discuss some of the ways they influence the consumer's purchase decision. What role does UPS [http://www.ups.com] play in the purchase decision? Visit the site of Paypal [http://www.paypal.com], discuss the role of digital cash, credit cards, cash, and checking accounts on the purchase decision. Post Purchase Evaluation – The consumer reviews the purchase and the entire purchase process of the product. If a consumer has doubts or second thoughts about a purchase, they experience post purchase dissonance. How are Internet marketers doing online to help customers avoid dissonance? Go to the Ford website [http://www.ford.com]. If you had a problem with the purchase of a Ford Explorer what does the site do to help you alleviate or avoid dissonance? How does EBay.com [http://www.ebay.com] allow consumers to review the purchase process?
The internet features that influence purchase decisions for Amazon company are easy scrolling for categories. The differentiation of prices and categories.
Digital cash, credit cards, cash and checking accounts on the purchase decision is helpful for making the process of payment easier. The easier and simpler the process of payment the effective it is for people to use the website.
Internet marketers are helping customers to avoid dissonance by providing them with options like easy returns, feedback and reviews.
Ebay helps the customers to review the purchase process and provide feedback. This helps the consumers to feel that their problems can be fixed and it will be easier to solve them well.
Amazon has been involved in strong advertising and social media presence for need recognition. It uses targeted advertisements and social media to encourage the viewers to become aware of the brands presence. It makes use of marketing, experimental sources, internal group, sponsorship and advertisements.
The alternative evaluation are used as viable alternatives for satisfying the needs that are evaluated and compared against one another.
The website helps the consumers to compare product alternatives by providing strong and clear differentiation. It focuses on providing clarity and easier recognition. It has used strong colours to differentiate between product alternatives. It is easier to scroll through the website and pay attention to important details.