Online consumer Behavior

Presented By: Dinesh Shende 09MBA038

 Online Decision Making
Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Stage

Post-Purchase Phase
 Problem Recognition
• May occur due to an internal or external
stimuli.
• External stimulus may be elicited by exposure
to banner ads while surfing.
• A single click on such ad takes the surfer to the
generic web site. E.g. Dietary products.
• Comparison sites are another source of
secondary demand generation.
 Information Search

• Searching various alternatives has been made easy

due to internet.
• Report by J.D. Power and associates more than half of
all new car buyers do research on internet by looking
at reviews, feature list and invoice prices before
making a purchase.
• Ziprealty.com and eRealty.com provide comparative
data base of real estate.
• Other sources: Online discussions, chat rooms,etc e.g.
epinions.com
 Evaluation of Alternatives

• Smart bots or Shop bots :

e.g.mySimon.com
DealTime.com
Shopper.com
• Which compare products,prices,and stores across
several categories such as books, clothing
,electronics, softwares,etc.
• Criteria for comparison by consumers are
Price as well as the brand name.
• They have great importance in B 2 B
marketing.
• Saves time and cost of search
e.g. NexTag is a hybrid search agent that uses
shopbot and web auctions that allows users to
negotiate directly with manufacturers over
price, configurations and options.
 Purchase Stage

• Two options of purchase: Brick and Mortar

store or online purchase
• Issues in online purchase
1.Personalisation
2. Privacy concern in online purchase.
3. Security concern in online purchase.
4. Trust in online purchase.
 Post-Purchase Phase

• Satisfaction and loyalty:

According to BCG report most satisfied online customer spent
average $ 673 online while least satisfied spent average $ 428 I yr
2000.
• Problems which keep customers away from repeat purchases are
-long upload sessions
-non acceptance of credit cards
-never receiving item that was paid for
-slow response time
-No phone no's listed for contact.
• Difficulty in Returning goods.
Don’t Try To fool online customers!
More clothes are bought online than
computers…..!
Online trading websites like eBay or Marktplaats.nl are doing very well. Over 2007, a significant rise
was noted. Dealerdirect is trying to squeeze in among them by developing specialised websites for

selling and buying cars. The company recently launched its third website, Handelsbod.nl .