Survey gives insight to the journey to online purchase

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We teach our students that it is critical to analyze and understand customer behavior before developing marketing strategies. With all the data available tracking the online purchase journey, many firms are gathering insights all the time. In addition, surveys can provide further insight about how online consumers shop. This article, “Survey reveals how customer make online product decisions” would be a nice addition to a lecture on consumer behavior (Chapter 5), online retail (Chapter 12), or aspects of promotion like owned media (Chapter 16). The article shares interesting information including:

  • Consumers are not very loyal — “only 14% say they likely wouldn’t switch to a competitive product if their first choice wasn’t available.”
  • Many consumers are research shoppers — “82% of respondents are likely to look at multiple locations for information on products.”
  • Information search often starts with online retailers (e.g., Amazon and eBay) where 44% of respondents indicated they looked first, quite a bit higher than those reporting they started with search engines (19%). Amazon now earns a lot from advertising revenue because of this trend.

The article reports a number of other findings and also links to an interesting article with data on social shopping during the pandemic.

A Couple of Examples of Companies Trying to Get Green (#M4BW)

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Many companies are seeking ways to lower their carbon footprint. Some, just because they want to do the right thing. Others because they want to build a better reputation with millennials. Some for both reasons. Here are a couple of short articles from Fast Company, that provide some good examples you might use in your class.

The title of the first one gives the top level overview, “Coke’s newest bottle is made from paper“. Consumer throw away millions of plastic Coke bottles every year. Is this a practical and environmentally friendly solution?

As you probably know, eating a more plant based diet might not be healthier just for you — but also for the planet. So a company like Sweetgreen (a restaurant chain focused on salads) is already ahead of the game. It is leaning into that with other efforts to lower its emissions. Read more in “How Sweetgreen plans to cut its carbon footprint in half in the next 6 years.”

 

How the Pandemic is Changing Consumer Behavior…

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Over the last year, many of us have had conversations with our students about how the pandemic might permanently change consumer behavior. While the short-run changes (greater sales of Peloton bikes, more home projects – go Home Depot, and lower sales at restaurants and movie theaters, and of course no indoor concerts) are interesting, I think the fun stuff is thinking about which changes will stick. I like to use this topic as a way to get my students thinking. So I ask them, “Which pandemic changes in consumer behavior are likely to stick?” I often use this as a small group activity so they can chat with classmates.

After soliciting their ideas – and of course asking them “why?” I like to share with them what some of the so-called experts think. This article at McKinsey.com “The great consumer shift: Ten charts that show how US shopping behavior is changing” has lots of good stuff to share with your students — and here is another article. You can cut and paste some of the charts (data is good) into your PowerPoints and either confirm or supplement they ideas they come up with.

Amazon’s advertising platform turns off customers…

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It seems like we talk about Amazon a lot here at Teach the 4 Ps. For several reasons Amazon is a great class example. First, it is a brand that everyone knows and most of our students use on a regular basis. Second, they are at the leading edge of so many new marketing practices. Third, Amazon offers the opportunity for examples that reflect many marketing practices (and many chapters). Today, we are talking about Amazon the online retailer, as an advertising medium. After Google and Facebook, Amazon is growing fast as an advertiser. A Wall Street Journal article earlier this year pointed out that “54% of people looking for a product now begin their search directly on Amazon…” Search advertising has traditionally been Google’s sweet spot.

This article, “Ad Business a Boon for Amazon But a Turn-Off for Shoppers,” (November 26, 2019) points out that Amazon may need to be careful with all the advertising. Some customers are getting annoyed with the online retailer for serving up too many ads. Customers just want the product they are looking for–but they often have to search through many “sponsored posts” before they get there.

This article or example may be used in your marketing classroom in a number of ways. If Amazon wants to do well by customers, is this the right way? Is this customer-oriented behavior (Chapter 1)? An interesting counter-example might be drawn out by asking students if they have ever gone to Amazon looking for one thing, then seeing an ad for a competing product, and ended up buying the competing product. Was that information useful?

The question gets further muddled when the article also notes that ads like this might help Amazon deliver one-day service that customers love (Chapters 10 and 12). It also suggests changes in consumer behavior (Chapter 5). And then of course the article highlights how Amazon is becoming a new advertising medium (Chapter 15). Lots to potentially talk about here.

Marketing Exclusivity and Status

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Luxury goods can facilitate good discussions when talking about consumers and their buying behavior.  If you’re looking for a current topic to use when talking with your students, consider the new Lamborghini Aventador SVJ.  The new luxury sports car is faster and pricier ($518,000) than the base Aventador model.  Only 900 of the new model will be produced which can add to the status achieved by owners of the car (and can further influence purchasing decisions).  You might also use this in a discussion about segmentation or marketing strategy.  Who would be the target market for this car?  How can Lamborghini effectively target that market and what might their marketing mix look like?