E-BUYING BEHAVIOUR      Gökay Hamamcı      Pınar Bektaş      Sare Nur Taşer      Tuğba Gürsoy     1
Outline•   Online shopping behaviour    Growth of online shopping    Segments influencing e-buying behaviour    Advantages...
Online Shopping Behaviour• Online shopping behavior (also called online  buying behavior and Internet shopping/buying  beh...
4
Growth of Online Shopping• In 2010, nearly 70% of consumers have  purchased at least one defined category via  online.    ...
Percentage of people who have shoppedonline all over the world                                        6
Segments influencing e-shopping          behaviour                                  7
Online Shopping        Advantages & DisadvantagesConvenience            Fraud and SecurityInformation and        Lack of f...
• Founded in 1995• Worlds largest online marketplace• With more than 97 million active users  globally (as of Q2 2011)• Co...
Product• Broad categories• New products• Second hand/ used products                               10
Product          11
Some prohibited items on eBay• Tobacco• Alcohol• Drugs• Nazi paraphernalia• Lottery tickets• Military hardware such as wor...
Price• Competitors are selling the same product for  less•   Low Starting Price•   Cost-Based Starting Price•   Buy-It-Now...
Promotion•   Special or reduced price for a specific good•   TV commercials•   eBay coupons•   eBay discounts•   eBay prom...
Promotion            15
Place• eBay Global  global.ebay.com• 38 localized websites  ebay.co.uk, ebay.fr, ebay.de• Associatons of eBay  gittigidiyo...
Strengths                 Weaknesses- Online auction leader    - Shipping- Developed CRM            - Fake or illegal auct...
18
1. Advanced SearchTO FIND:                                        SELECT THIS:Items for sale, based on criteria like price...
2. eBay Catalogue• Extensive, online, library of product information  and images for many products on the market• Fast and...
3. Launched tailored shoppingexperiences                                21
• Tickets for sports, concerts, theater and other live entertainment  events• Clothing, shoes and accessories in detail• P...
4. New Platforms                   23
24
iPhone Fashion App: Virtually try on sunglasses                                                  25
Customer Complaints and                  Comments•   “Ebay is inundated with horrible customer service. Spent 30 minutes t...
27
• PayPal is an American-based global e-commerce business allowing paymentsand money transfers to be made through the Inter...
• Support for 190 markets, 24 currencies and 20local language sites• Manage more than 232 million accounts andmore than 10...
Unmatched Advantages•   Internet Technology•   Pace of innovation•   Fraud expertise•   Global connections•   Digital Wall...
Delivering greater value to consumers & merchants                        Rewarding                        Consumers       ...
32
Serving the world’s largest brands                                 33
Reviews for PayPal•   Paypal is great. Paypal is free (if you are giving money), easy to use. Its great. When I get money ...
•   Established in November 2008•   Deal-of-the-day website•   Best stuff to do/ see / eat/ buy•   In 88 US cities and 41 ...
Weaknesses  Strengths                  •limited number of reliable•Clear/Simple /Attractive    merchants in the local mark...
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 Grouponsehirfirsa...
Segmentation #1: Geographic• Core Business: Value Proposition• Discovering local things to do• “Being geographically relev...
Segmentation#2: Product Type• Groupon was a pioneer in the deal market• Competitors emerged: targeting niche1. Groupon Get...
Segmentation #3: Lifecycle• Every subscriber was treated same• “For the best customers, we’re doing things to  reward, rec...
Segmentation#4: Personal Data• Gathering data to send personalize offering e-  mails• 3 types of data for Groupon:-Self Re...
•   Founded in 2008• Turkey’s first private shopping website• More than 2.000.000 active users• Clone of French private sh...
• 12.000.000 unique visitor/monthly• 198.000.000 pageviews/monthly• 500.000 products sale/monthly• %700 growth in 2010    ...
•Web private event sales for private clients•Sales during 2-3 days•Clothes, shoes, watches, home appliances, perfumes...wi...
53
Product          54
Product          55
Price        56
Promotion• TV Ads   Invitations                          TV Ads                          Competitions            Blog     ...
Place  Markafoni.com5 localized websitesBrandsExclusive.com.auBrandsGalaxy.grModnaKasta.uaMarkafoni.pl                    ...
Factors Influencing Consumer Behaviour     while shopping at MARKAFONİCULTURAL             SOCIAL             PERSONAL    ...
Trends& Chancing buying behaviours          New Payment Methods                         Location Based Services       Mobi...
Mobile Shopping  Tesco: Homeplus Subway Virtual Store• http://www.youtube.com/watch?feature=play  er_embedded&v=nJVoYsBym8...
Social Media/New Payment Methods• http://www.paywithatweet.com/                                  62
Location Based Services/            Augmented Reality  The Airwalk Invisible Pop Up Store• http://www.youtube.com/watch?v=...
Others• Starhub’s Musical Fitting Rooms• http://www.youtube.com/watch?v=ZimcuZZJ2D0&feature=pl  ayer_embedded• Unicef Repa...
REFERENCES•   http://www.ebay.com/•   http://www.customerservicescoreboard.com/eBay•   http://www.ideamarketers.com/?eBay_...
REFERENCES• Zhang, Ping. Li, Na. CONSUMER ONLINE SHOPPING ATTITUDES AND  BEHAVIOR: AN ASSESSMENT OF RESEARCH. Syracuse Uni...
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  1. 1. E-BUYING BEHAVIOUR Gökay Hamamcı Pınar Bektaş Sare Nur Taşer Tuğba Gürsoy 1
  2. 2. Outline• Online shopping behaviour Growth of online shopping Segments influencing e-buying behaviour Advantages and disadvantages• e-Bay SWOT analysis 4 P’s (Product, Price, Promotion, Place) Advanced search e-Bay catalogue Launched tailored shopping experiences Reviews and feedbacks New Platforms• Paypal Unmatched advantages Delivering greater value to consumers and merchants Reviews for Paypal• Groupon SWOT 4P’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 2
  3. 3. 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). 3
  4. 4. 4
  5. 5. Growth of Online Shopping• In 2010, nearly 70% of consumers have purchased at least one defined category via online. 5
  6. 6. Percentage of people who have shoppedonline all over the world 6
  7. 7. Segments influencing e-shopping behaviour 7
  8. 8. Online Shopping Advantages & DisadvantagesConvenience Fraud and SecurityInformation and Lack of full costreviews disclosurePrice selection Privacy Hands-on inspection 8
  9. 9. • Founded in 1995• Worlds 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. 9
  10. 10. Product• Broad categories• New products• Second hand/ used products 10
  11. 11. Product 11
  12. 12. Some prohibited items on eBay• Tobacco• Alcohol• Drugs• Nazi paraphernalia• Lottery tickets• Military hardware such as working weapons or explosives• And more.. 12
  13. 13. Price• Competitors are selling the same product for less• Low Starting Price• Cost-Based Starting Price• Buy-It-Now Pricing• Second Chance Offer 13
  14. 14. Promotion• Special or reduced price for a specific good• TV commercials• eBay coupons• eBay discounts• eBay promotional codes• eBay bargains 14
  15. 15. Promotion 15
  16. 16. Place• eBay Global global.ebay.com• 38 localized websites ebay.co.uk, ebay.fr, ebay.de• Associatons of eBay gittigidiyor.com for Turkey mercadolivre.com.br for Brazil 16
  17. 17. Strengths Weaknesses- Online auction leader - Shipping- Developed CRM - Fake or illegal auctions- Diversified market by - Inability to control thebranching and localizing contents of the auction- B2B & B2C - Online service only- Acquisition of PayPal Opportunities Threats- International - Local competitorsexpansion- New markets - Scammers and phishers- Skype technology - Google Checkout- Localized websites - Online security 17
  18. 18. 18
  19. 19. 1. Advanced SearchTO FIND: SELECT THIS:Items for sale, based on criteria like price Find itemsor item locationVehicles, parts, and accessories on eBay On eBay MotorsMotorsItems for sale by a particular seller, if you By sellerknow the seller’s user IDItems an eBay member has bid on, if you By bidderknow the bidder’s user IDA specific listing, if you know the item By item numbernumber 19
  20. 20. 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. 20
  21. 21. 3. Launched tailored shoppingexperiences 21
  22. 22. • Tickets for sports, concerts, theater and other live entertainment events• Clothing, shoes and accessories in detail• Parts andaccessories, cars, trucks, motorcylces, powersports, boats andmore• Cameras, cell phones, computers, tv, video, more electronics 22
  23. 23. 4. New Platforms 23
  24. 24. 24
  25. 25. iPhone Fashion App: Virtually try on sunglasses 25
  26. 26. 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 companys 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 dont know what I would have done if I hadnt found their phone number! Thanks.” Anonymous 11/16/09 11:20AMhttp://www.customerservicescoreboard.com/eBay 26
  27. 27. 27
  28. 28. • PayPal is an American-based global e-commerce business allowing paymentsand money transfers to be made through the Internet. Online money transfersserve as electronic alternatives to paying with traditional paper methods, suchas checks and money orders.• Founded in 1998, USA• Acquired by eBay in 2002http://www.youtube.com/watch?v=sLfm0Wwdikg 28
  29. 29. • Support for 190 markets, 24 currencies and 20local language sites• Manage more than 232 million accounts andmore than 100 million of them active• Global connections to 15K+ bank partners and57 financial networks• Powerful partnership with eBay 29
  30. 30. Unmatched Advantages• Internet Technology• Pace of innovation• Fraud expertise• Global connections• Digital Wallet• Cross-border business• Open platform• Closed-loop data 30
  31. 31. Delivering greater value to consumers & merchants Rewarding Consumers 31
  32. 32. 32
  33. 33. Serving the world’s largest brands 33
  34. 34. Reviews for PayPal• Paypal is great. Paypal is free (if you are giving money), easy to use. Its great. When I get money it doesnt 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 ... 34
  35. 35. • 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
  36. 36. Weaknesses Strengths •limited number of reliable•Clear/Simple /Attractive merchants in the local market•Control over the •Easy business strategy topayment flow copy•Use of social media •Mislead advertising•Good privacy & Refund interpretation /fakePolicy promotion •Currency exchange & lack of•Plans for Personalization trust Opportunities Threats• Online trend for Social • Competitors :media & smart phones GoogleOffers /• Strong growth in livingsocial.com /emerging countries Facebook Deals• Communication channels • Brands are controlled• More secure online by customerspayment (i.e. PayPal) • Legal concern on• Personalization privacy policy 36
  37. 37. Product• Discounts on nearly everything• Social places/ Events / Products etc• Restaurants / Concerts/ Gym’s/ Travel Deals
  38. 38. Product
  39. 39. Product
  40. 40. Price • Daily deals on product/ service • Discounts up to 70-80%• Customers have to buy on Groupon.com
  41. 41. Promotion• Gift Cards• Refer Friends- Get 10$ coupons• Personal Deals
  42. 42. Promotions
  43. 43. Promotions
  44. 44. Promotions
  45. 45. Place• Groupon.com for US• 41 localized websites(France /Germany/ Hong Kong/ Italy etc)• Associations of Grouponsehirfirsati.com in Turkeycitydeal.fi in Finland
  46. 46. Segmentation #1: Geographic• Core Business: Value Proposition• Discovering local things to do• “Being geographically relevant”
  47. 47. Segmentation#2: Product Type• Groupon was a pioneer in the deal market• Competitors emerged: targeting niche1. Groupon Getaways: focuses on travel2. GrouponLive: focuses on live events3. Groupon Now!: same-day deals
  48. 48. Segmentation #3: Lifecycle• Every subscriber was treated same• “For the best customers, we’re doing things to reward, recognize and retain them as well.”
  49. 49. 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
  50. 50. • 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 50
  51. 51. • 12.000.000 unique visitor/monthly• 198.000.000 pageviews/monthly• 500.000 products sale/monthly• %700 growth in 2010 51
  52. 52. •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) 52
  53. 53. 53
  54. 54. Product 54
  55. 55. Product 55
  56. 56. Price 56
  57. 57. Promotion• TV Ads Invitations TV Ads Competitions Blog Banner Ads Mailing 57
  58. 58. Place Markafoni.com5 localized websitesBrandsExclusive.com.auBrandsGalaxy.grModnaKasta.uaMarkafoni.pl 58
  59. 59. Factors Influencing Consumer Behaviour while shopping at MARKAFONİCULTURAL SOCIAL PERSONAL PSYCHOLOGICALTraditional Outlet Invitation based Products based on Impulse buyingShoppings private shopping gender/age/… (Time pressure and (WoM, shopping (kids,men,home… price advantage with friends) categories) encourage to buy) +Brands 59
  60. 60. Trends& Chancing buying behaviours New Payment Methods Location Based Services Mobile Shopping Social Media Augmented Reality 60
  61. 61. Mobile Shopping Tesco: Homeplus Subway Virtual Store• http://www.youtube.com/watch?feature=play er_embedded&v=nJVoYsBym88#! 61
  62. 62. Social Media/New Payment Methods• http://www.paywithatweet.com/ 62
  63. 63. Location Based Services/ Augmented Reality The Airwalk Invisible Pop Up Store• http://www.youtube.com/watch?v=4erNe_Np dyE&feature=player_embedded 63
  64. 64. Others• Starhub’s Musical Fitting Rooms• http://www.youtube.com/watch?v=ZimcuZZJ2D0&feature=pl ayer_embedded• Unicef Repay for Goods• http://www.youtube.com/watch?feature=player_embedded& v=q4cHiI_QE0s• Dominos 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#! 64
  65. 65. 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- 95ba02e4a382/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 65
  66. 66. REFERENCES• Zhang, Ping. Li, Na. CONSUMER ONLINE SHOPPING ATTITUDES AND BEHAVIOR: 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 66
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