There are many aspects of retail that can be discussed in regards to the consumer's purchasing behavior, especially when it comes to highlighting the differences between online purchases and traditional purchases. One of the most basic constructs that have been discussed about is the consumer purchase decision process. There are six steps of the consumer purchase decision process. In a sequential manner, the six steps are problem or opportunity recognition, information search, evaluation of alternatives, purchase decision, purchase act, and post-purchase evaluation (Boone and Kurtz 2011). Sartori (2006) suggests that while this process is somewhat replicated online, the process is wholly expedited and consumers place a different emphasis on each of the steps.
another variation of the purchase decision process
Various researches have highlighted the information search step to be a crucial point in the online shopping decision making process. Considering the amount of information that is available on the Internet, consumers have more opportunity to be diligent during this information search phase (Lunt and Moor 1998). This change of ease in the search of information empowers consumers and put them in an unprecedented position of control (Windham and Orton 2000).
un-prece-dented
Moreover, since most consumers strive to achieve better efficiency in their decision making process, online shopping becomes a very attractive proposition (Park and Kim 2003). In an online shopping environment, shoppers are continuously streamed with product reviews, similar product comparisons and other relevant information. This reduces the information search cost significantly, and simplify the decision making process for consumers (Alba et al. 1997).
An opposing view suggests that the wealth of information available on the Internet does not necessarily mean an easier shopping experience. Some literature argue that because of the high amount of both choice and information in the Internet, consumers feels overwhelmed and would rather go to a brick and mortar store where a sales assistant can curate the information and sum up what the consumer need to know (Gay, Charlesworth, Esen 2007). It is also argued that successful online retailers has to be able to tailor the kind of information that they are offering to each specific consumers, limiting the effects of information overload (Wolfinbarger and Gilly 2001).
a severe case of information overload
What does these differences mean for both traditional and online retailers? While online might have the edge at a glance, due to its wealth of resources, the power of personalized advice should not be underestimated. For online retailers, this means providing a specifically tailored experience for every shopper, which is easier said than done. Successful e-retailers have gone down this route in a big way, with both Amazon and iTunes providing auto recommendations to consumers based on their previous purchases.
But as tailor made as they try to be, online cannot match traditional retailers in this aspect. When brick and mortar stores have well informed and well trained staff, they have the ability to provide the best possible solution to consumers coming in with a need. Unfortunately, in a day where almost all retailers are battling a decreasing profit margin, there will always be pressure to cut training programs, hire the cheapest labor available, and just provide the bare minimum in order to survive.
Industrial Revolution: the good old days of cheap labor
Theories and literature will only tell part of the story, it is practitioners who have to face it everyday in the field. With the challenges described above, only those who innovate will survive, whether that be in a traditional setting, or an online environment. While technology may improve everyday, most people will still look to make relationships. Retailers from both platforms should always strive to create relationships with their customers, and forge an impression that will lead them to come back.
References:
Boone, L. E. and D.L. Kurtz. 2011. Contemporary Marketing. New York: Cengage Learning.
Sartori, L. 2006. Consumption on the Net. In Impact of e-Commerce on Conumers and Small Firms, ed. Zappala, S. and C. Gray, 179-89. Aldershot: Ashgate Publishing Limited.
Lunt, P. and E. Moor. 1998. The Virtual Consumer: Electronic Commerce and the Reproduction of Consumption. European Sociological Association. working paper.
Windham, L. and K. Orton. 2000. The Soul of the New Consumer: the Attitudes, Behaviors, and Preference of E-Customers. London: Skyhorse Publishing.
Park, C. and Y. Kim. 2003. Identifying Key Factors Affecting Consumer Purchase Behavior in an Online Shopping Context. International Journal of Retail and Distribution Management 31(1): 16-29. Emerald. http://emerald.com (accessed March 10, 2012).
Alba, J., Lynch, J., Weitz, B., Janiszewski, C., Lutz, R., Sawyer, A. and Wood, S. 1997. Interactive home shopping: consumer, retailer, and manufacturer incentives to participate in electronic marketplaces. Journal of Marketing 61: 38-53. Proquest. http://proquest.com (accessed March 13, 2012).
Gay, R., A. Charlesworth, and Esen, R. 2007. Online Marketing: a Customer-led Approach. Boston: Oxford University Press.
Wolfingbarger, M. and Gilly, M.C. 2001. Shopping online for freedom, control, and fun. California Management Review 43 (2): 34-55. Emerald. http://emerald.com (accessed March 10, 2012).
I think this post raises some very interesting points. As discussed in the last comment I made, I am definitely a consumer who leans towards bricks and mortar for my purchasing fix, however information searches are a different matter.
ReplyDeleteWhy wouldn't you do your research online to find out all the nitty gritty details that may not be readily available instore? Although retailers are having to work hard to adequately train their staff on the ins and outs of their products, most don't have direct experience with the products they are selling.
The internet on the other hand can provide an array of information including reviews, specifications, comparisons and even step by step videos on how best to use the product. As this is the case, perhaps retailers need to look at more innovative ways to utilise technology to their advantage in an effort to entice consumers into the store to assist with their information search?
I like the fact that you have addressed both perspectives of the availability of information on online shopping platforms.
ReplyDeleteOne of the issues that I face with internet shopping is having to read all the small writing and manoeuvering through a range of pages in order to finally make my purchase. In a traditional shopping environment having a sales assistant (considering that he/she is knowledgeable on the products being sold) at my service to provide me with all the information I need before buying a product, is something I much rather prefer.
Your last paragraph briefly mentions about relationships which I consider to be an important aspect within a retail sphere, especially when taking into account impulse buying. Building a temporary relationship within a store with a sales assistant encourages impulse buying to occur which would otherwise be difficult to establish within an online shopping environment.
What is your opinion on this Dana? Do you agree or disagree?
Erika, I really think that you've hit upon a really important part of how retailers can find a middle ground of using technology, in this case the Internet itself, to actually improve its offering. By providing more depth of information in terms of product reviews, consumers might be more inclined to make the purchase, and spend more time in the stores rather than researching the product in the net.
ReplyDeleteI'm actually one of those people who obsess about making the right decision in terms of the products I buy, so I would actually do my research for a while, before deciding on a certain product. I do this even with small purchases, because I think the information search step is becoming so much easier, and it reduces a lot of risk on my part.
If I actually have the capability of looking at product reviews in the store themselves, I might actually make the purchase quicker.
Mersyl, talking specifically about impulse buying, especially in an online context, I still think the phenomena still occur, even though in a slightly different process when compared to brick and mortar impulse purchases. As you've mentioned, there are several steps that a consumer need to take before the purchase actually gets processed. I have actually done this a couple of times in an online environment, picking things up and putting them in a purchase cart, but not actually going through with the purchase for whatever reason.
ReplyDeleteBut the opposite has also happened, where I was browsing for something, but come across a particular item that really interests me, and decided to purchase it right there and then. I think with the presence of Google Ads, and how their ad matching algorithm gets better, more and more ads that actually suits my needs pops up more often.
I think some stores/retailers have very good staff, who are helpful and knowledgeable about the products they sell, but I find that more and more stores are trying to get by with less skilful staff, which is a shame. The personal touch is one of the things that brick and mortar still has going for them, and if they lose that, there's even less reason to make my purchases in a brick and mortar store.