E-BUYING BEHAVIOUR

Gökay HamamcıPınar BektaşSare Nur TaşerTuğba Gürsoy 1

Outline • Online shopping behaviour

Growth of online shoppingSegments influencing e-buying behaviourAdvantages and disadvantages

• e-BaySWOT analysis4 P’s (Product, Price, Promotion, Place)Advanced search e-Bay catalogueLaunched tailored shopping experiencesReviews and feedbacksNew Platforms

• PaypalUnmatched advantagesDelivering greater value to consumers and merchantsReviews for Paypal

• GrouponSWOT4P’s (Product,Price,Promotion,Place)Segmentations (Geographic,Product Type,Lifecycle,Personal Data)

• Markafoni Advantages of Private Shopping 4 P’s (Product, Price, Promotion, Place) Factors Influencing Consumer Behaviour while shopping at Markafoni Trends&Changing Buying Behaviours

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Online Shopping Behaviour

• Online shopping behavior (also called online buying behavior and Internet shopping/buying behavior) refers to the process of purchasing products or services via the Internet.

• Online shopping became popular in the mid-1990s with the popularization of the World Wide Web(WWW).

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Growth of Online Shopping

• In 2010, nearly 70% of consumers have purchased at least one defined category via online.

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Percentage of people who have shopped online all over the world

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Segments influencing e-shopping behaviour

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Online ShoppingAdvantages & Disadvantages

Convenience Fraud and Security

Information and Lack of full costreviews disclosure

Price selection Privacy Hands-on inspection

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• Founded in 1995• World's largest online marketplace• With more than 97 million active users globally

(as of Q2 2011)• Connects individual buyers and sellers, as well

as small businesses• In 2010, the total value of goods sold on eBay

was $62 billion -- more than $2,000 every second.

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Product

• Broad categories

• New products

• Second hand/ used products

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Product

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Some prohibited items on eBay

• Tobacco• Alcohol• Drugs• Nazi paraphernalia• Lottery tickets• Military hardware such as working weapons or

explosives• And more..

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Price

• Competitors are selling the same product for less

• Low Starting Price• Cost-Based Starting Price• Buy-It-Now Pricing• Second Chance Offer

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Promotion• Special or reduced price for a specific good• TV commercials• eBay coupons• eBay discounts• eBay promotional codes• eBay bargains

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Promotion

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Place

• eBay Globalglobal.ebay.com

• 38 localized websitesebay.co.uk, ebay.fr, ebay.de

• Associatons of eBaygittigidiyor.com for Turkeymercadolivre.com.br for Brazil

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Strengths- Online auction leader- Developed CRM- Diversified market by branching and localizing- B2B & B2C- Acquisition of PayPal

Weaknesses- Shipping- Fake or illegal auctions- Inability to control the contents of the auction- Online service only

Opportunities- International expansion- New markets- Skype technology- Localized websites

Threats

- Local competitors

- Scammers and phishers

- Google Checkout

- Online security

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1. Advanced Search

TO FIND: SELECT THIS:

Items for sale, based on criteria like price or item location

Find items

Vehicles, parts, and accessories on eBay Motors

On eBay Motors

Items for sale by a particular seller, if you know the seller’s user ID

By seller

Items an eBay member has bid on, if you know the bidder’s user ID

By bidder

A specific listing, if you know the item number

By item number

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2. eBay Catalogue

• Extensive, online, library of product information and images for many products on the market

• Fast and easy way to create professional, detailed listings for your items

• Easier for customers to find and buy exactly what they’re looking for

• Product specifications like brand, model number, dimensions, performance, color, capacity, compatibilities, and professional photos are automatically included in your listing.

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3. Launched tailored shopping experiences

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• Tickets for sports, concerts, theater and other live entertainment events

• Clothing, shoes and accessories in detail

• Parts and accessories, cars, trucks, motorcylces, powersports, boats and more

• Cameras, cell phones, computers, tv, video, more electronics 22

4. New Platforms

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iPhone Fashion App: Virtually try on sunglasses

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Customer Complaints and Comments

• “Ebay is inundated with horrible customer service. Spent 30 minutes trying to get a customer service rep. Total lies and greed is driving the business into the ground.”

Anonymous 11/29/11 5:08PM• “completely unhappy with this company's arrogance and poor customer service”

dawn socia 11/4/11 9:32AM

• “Great service, friendly agents, great resolution. Thanks eBay!”skibum2002 9/8/10 12:58PM

• “FANTASTIC! After punchingin a few numbers, I got a delightful young lady to answered my questions and took action on the case I had called about. I don't know what I would have done if I hadn't found their phone number!Thanks.”

Anonymous 11/16/09 11:20AM

http://www.customerservicescoreboard.com/eBay

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http://www.youtube.com/watch?v=sLfm0Wwdikg

• PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders.

• Founded in 1998, USA

• Acquired by eBay in 2002

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• Support for 190 markets, 24 currencies and 20 local language sites

• Manage more than 232 million accounts and more than 100 million of them active

• Global connections to 15K+ bank partners and 57 financial networks

• Powerful partnership with eBay 29

Unmatched Advantages

• Internet Technology• Pace of innovation• Fraud expertise• Global connections• Digital Wallet• Cross-border business• Open platform• Closed-loop data

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Delivering greater value to consumers & merchants

Rewarding Consumers

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Serving the world’s largest brands

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Reviews for PayPal• Paypal is great. Paypal is free (if you are giving money), easy to use. It's great. When I get money it doesn't

cost that much and goes to my bank account quickly. I like it much better than Google Checkout.

• "PLEASE READ...DO NOT USE PAYPAL....SHOCKING CUSTOMER SERVICE“ . Hi I have used paypal to send some items to the buyer who arranged collection and got the address wrong. The the buyer opened up a claim against me to say that he did not recieve his items with paypal. Basically i then got in contact with the courier who told me the buyer had just rang up and made payment for storage. Now i thought this was the end of it... but no due to him no closing the dispute paypal has gone in his favour because the invoice address is in Bulgaria. I then rang up paypal...

• THEY STOLE MY MONEY! I have a small business that I take payments from my website through PayPal. Last week I was sent an email out of nowhere that my account now has "Limited Access" and it is unremoveable. This means that they have locked my account for 6 months and I am unable to remove any money from it. According to PayPal I am "Linked" to this mysterious other account or accounts and that is why. They refuse to tell me what account or who owns them or how I even got flagged as "linked" I have...

• As a buyer paypal is great,you can shop with confidence and safe in the knowledge should something go wrong you are protected. As a business not so good,1 you can check risk/fraud scores,2 you have to send everything by tracked delivery to ensure seller protection. I have never lost a chargeback on eBay due to the fact the products were sent tracked (recorded delivery).Your own website is different as paypal only cover you for non receipt ...

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• Established in November 2008 • Deal-of-the-day website• Best stuff to do/ see / eat/ buy • In 88 US cities and 41 countries on world which included Turkey• Multi-billion dollar valuation • Fastest growing company ever

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Strengths • Clear/Simple

/Attractive • Control over the

payment flow• Use of social media • Good privacy & Refund

Policy• Plans for

Personalization

Weaknesses • limited number of reliable

merchants in the local market

• Easy business strategy to copy

• Mislead advertising interpretation /fake promotion

• Currency exchange & lack of trust

Opportunities• Online trend for Social

media & smart phones• Strong growth in

emerging countries• Communication

channels • More secure online

payment (i.e. PayPal) • Personalization

Threats• Competitors :

GoogleOffers / livingsocial.com / Facebook Deals

• Brands are controlled by customers

• Legal concern on privacy policy

Product

• Discounts on nearly everything

• Social places/ Events / Products etc • Restaurants / Concerts/ Gym’s/ Travel Deals

Product

Product

Price

• Daily deals on product/ service• Discounts up to 70-80%

• Customers have to buy on Groupon.com

Promotion

• Gift Cards

• Refer Friends- Get 10$ coupons

• Personal Deals

Promotions

Promotions

Promotions

Place

• Groupon.com for US

• 41 localized websites(France /Germany/ Hong Kong/ Italy etc)

• Associations of Groupon sehirfirsati.com in Turkeycitydeal.fi in Finland

Segmentation #1: Geographic

• Core Business: Value Proposition

• Discovering local things to do

• “Being geographically relevant”

Segmentation#2: Product Type

• Groupon was a pioneer in the deal market

• Competitors emerged: targeting niche

1. Groupon Getaways: focuses on travel 2. GrouponLive: focuses on live events3. Groupon Now!: same-day deals

Segmentation #3: Lifecycle

• Every subscriber was treated same

• “For the best customers, we’re doing things to reward, recognize and retain them as well.”

Segmentation#4: Personal Data

• Gathering data to send personalize offering e-mails

• 3 types of data for Groupon:

-Self Reported: Age/ Gender/ Zip code-Appended: Data purchased from third-party services-Behavioral: Data based on what subscribers click and purchase

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• Founded in 2008

• Turkey’s first private shopping website

• More than 2.000.000 active users

• Clone of French private shopping website ‘Ventee-privee’

• Available in Turkish market as well as in Australia, Greece,

Ukraine and Poland

• 12.000.000 unique visitor/monthly

• 198.000.000 pageviews/monthly

• 500.000 products sale/monthly

• %700 growth in 2010

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• Web private event sales for private clients

• Sales during 2-3 days

• Clothes, shoes, watches, home appliances, perfumes... with 40-90% sale off

• Clear brand’s last collection stocks (online outlet center)

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Product

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Product

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Price

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Promotion

• TV Ads Invitations

Blog

Banner Ads

TV Ads

Competitions

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Place

Markafoni.com

5 localized websitesBrandsExclusive.com.auBrandsGalaxy.gr ModnaKasta.uaMarkafoni.pl

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Factors Influencing Consumer Behaviour while shopping at MARKAFONİ

CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL

Traditional Outlet Shoppings

Invitation based private shopping(WoM, shopping with friends)

Products based on gender/age/…(kids,men,home… categories)

Impulse buying(Time pressure and price advantage encourage to buy)+Brands

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Trends& Chancing buying behaviours

Social Media

New Payment Methods

Augmented Reality

Mobile ShoppingLocation Based Services

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Mobile Shopping

• http://www.youtube.com/watch?feature=player_embedded&v=nJVoYsBym88#!

Tesco: Homeplus Subway Virtual Store

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Social Media/New Payment Methods

• http://www.paywithatweet.com/

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Location Based Services/ Augmented Reality

• http://www.youtube.com/watch?v=4erNe_NpdyE&feature=player_embedded

The Airwalk Invisible Pop Up Store

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Others• Starhub’s Musical Fitting Rooms• http://www.youtube.com/watch?v=ZimcuZZJ2D0&feature=

player_embedded• Unicef Repay for Goods• http://www.youtube.com/watch?feature=player_embedded

&v=q4cHiI_QE0s• Domino's Pizza location-based App.• http://www.youtube.com/watch?feature=player_embedded

&v=DjyttGaaq_k• The Commbank Property Guide App.• http://www.youtube.com/watch?v=o9T9crNMB_w&feature=

player_embedded#!

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REFERENCES• http://www.ebay.com/• http://www.customerservicescoreboard.com/eBay• http://www.ideamarketers.com/?eBay_Pricing_Strategies&articleid=311869• http://www.wikihow.com/Use-Pricing-Strategies-for-Your-eBay-Business• http://marketingteacher.com/case-study/ebay-case-study.html• http://www.cob.calpoly.edu/~ijima/3.pdf• http://files.shareholder.com/downloads/ebay/1190863356x0x440542/0b4b1525-691e-402a-b8e3-95ba02

e4a382/eBay_2011AnalystDay_FINAL2.pdf• http://marketingteacher.com/swot/ebay-swot.html• http://pages.ebay.com/coverage/index.html• https://www.markafoni.com/• http://blog.markafoni.com/• http://www.sinaafra.com/• http://www.paywithatweet.com/• http://mobithinking.com/mobile-awards/Cannes• http://digital.centaur.co.uk/nma/awards/nmaawards2011/• http://www.marketoloji.com/2011/07/11/tescodan-gelecegin-marketi-ornegi/• http://pages.ebay.com/sellerinformation/news/highlightingvalue.html#hi

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REFERENCES

• Zhang, Ping. Li, Na. CONSUMER ONLINE SHOPPING ATTITUDES ANDBEHAVIOR: AN ASSESSMENT OF RESEARCH. Syracuse University . 2002

• http://www.reviewcentre.com/r53167_3_PayPal_-_wwwpaypalcom.html• http://jib.debii.curtin.edu.au/iss03_mafe.pdf • http://en.wikipedia.org/wiki/Online_shopping • http://visual.ly/online-shopping-statistics • http://tw.en.nielsen.com/site/documents/2011ShopperTrendOnlineshopping-en.pdf • http://en.wikipedia.org/wiki/PayPal

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