Technographic futur-trends


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Technographic futur-trends

  1. 1. THECHNOGRAPHICS: Consumer Behavior on the Internet
  3. 3. HIGH INCOME TECHNOLOGY PESSIMISTS <ul><li>“ Demographically, the pessimists look just like the optimists – middle aged, well-educated, family householders. High income pessimists like to drive Jeeps, Volvos and Toyotas, just like high income optimists. What’s more, high-income consumers share tastes in media. Both like newsmagazine shows and major sporting and entertainment events.” </li></ul><ul><li>-- Mary Modahl, Forrester Research </li></ul>
  4. 4. ASSIGNMENT FOR NEXT WEEK: <ul><li>On syllabus </li></ul><ul><li>Choose an article. </li></ul><ul><li>Choose a topic you want to know more about. </li></ul>
  5. 5. WORLDWIDE INTERNET USERS <ul><li>455 M have home Internet access, 292 M “active” users (August 2004) </li></ul><ul><li>U. S. 201 Million Total, 135 M active (August 2004) </li></ul>
  6. 6. E-COMMERCE SALES, NORTH AMERICA <ul><li>$42B 2000 </li></ul><ul><li>47B 2001 </li></ul><ul><li>78B 2002 113B 2003 (almost 80% of e-tailers were profitable ) </li></ul><ul><li>$144B predicted 2004 (6.6% of total retailing) </li></ul><ul><li>(Forrester Research 2002-2003-2004) </li></ul>
  7. 7. October, 2004
  8. 8. INTERNET-RELATED BEHAVIORS AND ONLINE PURCHASING <ul><li>16% of online users are classified as “heavy” searchers </li></ul><ul><li>Heavy searchers spend 35% of dollars spent online </li></ul><ul><li>Broadband users spend 50% more than narrowband users </li></ul><ul><li>Broadband use and longer experience have an “interactive” effect on amount of purchasing </li></ul><ul><li>(comScore, October 2004) </li></ul>
  9. 9. WORLDWIDE USERS <ul><li>In Europe, Middle East and Africa, Germany dominates </li></ul><ul><li>In Latin America, Brazil dominates </li></ul><ul><li>In Asia Pacific, South Korea is first, Singapore is second </li></ul><ul><li>In Europe and Asia Pacific, heads of HH with University degrees </li></ul><ul><li>Except for US and Canada, the Internet population is predominantly male </li></ul>
  11. 11. MOTIVATIONS FOR ONLINE SHOPPING This research has been supported by grants from the CISE/IIS/CSS Division of the U.S. National Science Foundation and the NSF Industry/University Cooperative Research Center (CISE/EEC) to the Center for Research on Information Technology and Organizations (CRITO) at the University of California, Irvine. Industry sponsors include: ATL Products, the Boeing Company, Bristol-Myers Squibb, Canon Information Systems, IBM, Nortel Networks, Rockwell International, Microsoft, Seagate Technology, Sun Microsystems, and Systems Management Specialists (SMS).
  12. 12. DO YOU SHOP ONLINE? <ul><li>What are your motivations for shopping online? </li></ul><ul><li>Where (location) do you shop online? </li></ul><ul><li>How do you choose a place to shop online? </li></ul><ul><li>When do you shop online? </li></ul>
  13. 13. GOAL OF OUR STUDY <ul><li>To better understand consumer experiences online </li></ul><ul><li>To see how consumers compare online and offline shopping </li></ul><ul><li>Ultimately, to develop a reliable/valid instrument for measuring consumer satisfaction/ quality ratings </li></ul>
  14. 14. METHODOLOGY <ul><li>Talk to consumers </li></ul><ul><li>3 focus groups of MBAs/staff who buy online </li></ul><ul><li>2 focus groups of online buyers in OC arranged by Harris Interactive </li></ul><ul><li>4 online focus groups with Harris Interactive </li></ul>
  15. 15. WHAT HAVE WE LEARNED? <ul><li>Themes: </li></ul><ul><li>Goal-Oriented Motivations – Shopping to acquire products </li></ul><ul><ul><li>(3/4 to 4/5 online purchases) </li></ul></ul><ul><ul><li>Time spent at e-commerce sites? <5 min/visit, 29 sec/page </li></ul></ul><ul><li>Experiential Motivations – shopping to shop </li></ul>
  16. 16. GOAL-ORIENTED MOTIVATIONS <ul><li>Accessibility/Convenience </li></ul><ul><li>Selection </li></ul><ul><li>Information Search </li></ul><ul><li>Lack of sociality </li></ul><ul><li>Outcomes Desired: Freedom and Control </li></ul>
  17. 17. SELECTION <ul><li>Can pursue specialized interests/ hobbies </li></ul><ul><li>Can locate products not available close to where lived </li></ul><ul><li>Can find special sizes, special items </li></ul>
  18. 18. CONVENIENCE/ACCESSIBILITY <ul><li>24/7 accessibility perhaps most important aspect of convenience </li></ul><ul><li>Don’t have to walk or drive store to store </li></ul><ul><li>Strongly related to freedom and control </li></ul><ul><li>Ease of use, simplicity of making transactions are important </li></ul><ul><li>Shop anywhere, anytime, in any condition…. </li></ul>
  19. 20. INFORMATION SEARCH <ul><li>A major motive for using net, both for surfing and shopping </li></ul><ul><li>Consumers want to find relevant information quickly </li></ul><ul><li>What’s important in designing for information searchers? </li></ul>
  20. 21. INFORMATION SEARCH <ul><li>Avoid clever “killer website” features </li></ul><ul><li>Good search function/multiple, easy to understand categories </li></ul><ul><li>Product representation in graphics and text </li></ul><ul><li>Easy to use “intuitive” organization </li></ul><ul><li>Information increases freedom and control in online shopping environments </li></ul>
  21. 22. INFORMATION SEARCH <ul><li>More consumers buy offline as a result of online search than actually purchase online – “ Cross channel shopping” </li></ul><ul><li>Major reasons? Need to look at item first and/or talk with salesperson </li></ul>
  22. 23. SOCIALITY <ul><li>Lack of people viewed as positive by online shoppers </li></ul><ul><li>Included salespeople, spouses, and crowds </li></ul><ul><li>Frustration with salespeople was multi-dimensional – unmotivated, uninformed, pressure, obligation: “I need them but not as much as they think I need them.” </li></ul><ul><li>Back to control and freedom! </li></ul>
  23. 24. SOCIALITY <ul><li>However, must answer customer questions </li></ul><ul><li>Customer service and delivery service allay some perceived risks of online shopping </li></ul>
  24. 25. RESULTS OF GOAL-ORIENTED BEHAVIORS <ul><li>High involvement, low commitment “nibbling” and “snacking” </li></ul><ul><li>Can shop in shifts </li></ul><ul><li>Not disappointed if don’t buy </li></ul><ul><li>Easy to find another site if current one disappoints </li></ul><ul><li>No pressure </li></ul><ul><li>Many sites save abandoned shopping carts </li></ul><ul><li>Shopping online from work </li></ul><ul><li>Are consumers more impulsive on- or offline? </li></ul>
  25. 26. EXPERIENTIAL MOTIVATIONS <ul><li>Are we having fun yet? </li></ul><ul><li>Browsing much more likely offline </li></ul><ul><li>Desirable because experiential shoppers are more impulsive, spend more </li></ul><ul><li>Behavior: More time spent on site, more pages accessed </li></ul><ul><li>Outcome desired: FUN </li></ul>
  26. 28. EXPERIENTIAL MOTIVATIONS <ul><li>Hobbies, ongoing interests </li></ul><ul><li>The fun of anonymous shopping </li></ul><ul><li>Auctions </li></ul><ul><li>Searching for discounts, low prices </li></ul>
  27. 29. EXPERIENTIAL FEATURES <ul><li>Online Customer Reviews </li></ul><ul><li>Fun design features that users can choose to use or not </li></ul><ul><li>Appeal to impulse buying motives – special deals, other product suggestions </li></ul>
  28. 30. EXPERIENTIAL FEATURES <ul><li>Make frequent updates, mark anything “new” </li></ul><ul><li>More open to sociality, community, content </li></ul>
  29. 31. RELATIVE PERCENTAGES? <ul><li>Of the most recent online purchase made, 71% were goal-oriented and 29% were experiential </li></ul><ul><li>Experiential behavior more likely at auction sites </li></ul><ul><li>Women more likely than men to report experiential shopping behavior </li></ul><ul><li>Likely changes by product category </li></ul>
  30. 32. CONCLUSIONS FROM THIS STUDY <ul><li>Need to analyze visitors’ motives for shopping at your website and determine how many are shopping to shop or shopping for product acquisition </li></ul><ul><li>Goal-oriented consumers want to find what they want easily and make the transaction quickly and easily; they like anything that improves their freedom and control </li></ul><ul><li>Stickiness? Immersiveness? Content? </li></ul><ul><li>Sites can be designed that appeal to goal focused and experiential motivations </li></ul>
  31. 33. RESULTS APPLY TO SHOPPING ONLY? <ul><li>Behavior at content sites? </li></ul><ul><ul><li>News? </li></ul></ul><ul><ul><li>Sports news? </li></ul></ul><ul><ul><li>Dating sites? </li></ul></ul><ul><ul><li>Gaming sites? </li></ul></ul><ul><li>Implications for advertising? </li></ul>
  32. 35. SO WHO SHOPS ONLINE ANYWAY? <ul><li>Best predictors: technology optimism and time starvation </li></ul><ul><li>Buyers also spend more hours online a week than non-buyers and have been using Internet for longer </li></ul>
  33. 36. FORRESTER’S “TECHNOGRAPHICS” <ul><li>Segments population into 10 segments based on: </li></ul><ul><li>Attitude toward technology (polarized) </li></ul><ul><li>Income (use 40K as a cutoff between hi and low) (surprisingly 40% of affluent are technology pessimists) </li></ul><ul><li>Motivation to use technology(career, family or entertainment) </li></ul>
  34. 37. CONSUMER TECHNOGRAPHIC SEGMENTS, US (FORRESTER RESEARCH) Technology Optimists Technology Pessimists Primary Motivation High Income Low Income High Income Low Income Career Family Entertainment Fast Forwards 12% New Age Nurturers 8% Mouse Potatoes 9% Techno-Strivers 7% Digital Hopefuls 7% Gadget Grabbers 9% Handshakers 7% Traditionalists 8% Media Junkies 5% Sidelined Citizens (28%)
  35. 38. ADOPTION <ul><li>Early adopters: fast forwards, new age nurturers and mouse potatoes (29%) </li></ul><ul><li>Mainstream: As much as two years behind early adopters; techno-strivers, digital hopefuls, gadget grabbers, handshakers, traditionalists, media junkies (43%) </li></ul><ul><li>Laggards: Sidelined citizens (28%) </li></ul>
  36. 39. EARLY ADOPTERS <ul><li>Fast forwards – high income, motivated by career needs, own lots of tech, surgical shoppers, not price-oriented </li></ul><ul><li>New Age Nurturers – high income, motivated by family and community; maybe most critical group; more credible opinion leaders than “fast forwards,” they set trends; more price-oriented than FF </li></ul>
  37. 40. EARLY ADOPTERS <ul><li>Mouse Potatoes: Use tech for fun, visit sports sites, adult entertainment, look up movie info, play online games, more likely male, less likely to have children, median age 40 and high income; buy on impulse and convenience, not price-oriented </li></ul>
  38. 41. MAINSTREAM <ul><li>High income pessimists: </li></ul><ul><li>Handshakers are career-oriented </li></ul><ul><li>Traditionalists focus on family, community </li></ul><ul><li>Media Junkies, like fun but not tech </li></ul><ul><li>(when they do buy online, it’s usually books) </li></ul>
  39. 42. MAINSTREAM <ul><li>Low Income Technology Optimists </li></ul><ul><li>Tend to be young – “techno strivers” (career oriented) or “gadget grabbers” (fun oriented </li></ul><ul><li>Groups quite diverse, male and female, 23% minorities; engage in online activities </li></ul><ul><li>Don’t earn much because just starting out </li></ul><ul><li>Single, college-educated, white collar </li></ul>
  40. 43. MAINSTREAM <ul><li>Low Income Optimists </li></ul><ul><li>One more group: Digital hopefuls – a very large group of family-oriented retirees using the Internet to stay in touch </li></ul>
  41. 44. WINNING MAINSTREAM CONSUMERS <ul><li>Like clicks and mortars businesses: “once mainstream consumers realize they can do business equally well anywhere, they often choose the electronic channel. </li></ul><ul><li>Advertise on TV where mainstream is half of the audience </li></ul>
  42. 45. SIDELINED CITIZENS <ul><li>“ These consumers are pessimistic about technology. Even if they could afford a home PC, most probably wouldn’t buy one. And if they had a PC, it is unlikely that these consumers would use it for online shopping…fewer than 50 percent of Sidelined Citizens use the automated teller machines at their bank for making deposits and withdrawals. That technology is free, and it has been around for more than 20 years.” </li></ul>
  43. 47. EXTRAS – WHY THECNO-GRAPHICS: Aim far, see big, see deep , be like a time machine, be a creative sponge by
  45. 49. <ul><li>Expand the conceptual framework of time and space </li></ul><ul><li>Identify evolution lines of force </li></ul><ul><li>Seize 'patterns' : explication of the evolution (Big Picture) </li></ul>OBJECTIVES
  46. 50. <ul><li>To understand what is changing </li></ul><ul><li>To PROPOSE : not to act against the direction of evolution or invariants </li></ul>Why
  47. 51. <ul><li>Discover the human capital: The intelligence revolution </li></ul><ul><li>Understand information knowledge society, information economy </li></ul><ul><li>Understand the other network </li></ul><ul><li>Understand ourselves benchmarks, identity, ethics, paternal / maternal instinct </li></ul>
  48. 52. We went from the age of interruption to the dialogue . Brands that help by companies must be more creative, create content that consumers continue to follow . &quot;They must commit to dialogue with them without imposing their point of view.
  49. 53. Social Media Brands are wondering how to integrate these new media conversations from the collective intelligence. Indeed, they realized that the word of individuals worth more today than the Net’s commercial speeches.
  50. 54. Free has become the new business model
  51. 55. Advertisers to take into account the transfer of power and technology to the consumer. Ikea syndrome in IN: to pay less, we must assemble our own cabinet, which has inspired all low-cost-based companies. On the Internet, it's worse. Everything is free for consumers, they must accept counterparts ... So ads become part of the economic model. Brands receive optimum rating from consumer reviews, when a brand offers them to download content on the Internet or to their mobile phone. This is where the future lies: the exchange system
  52. 56. Conso-addicts In their greater majority, They are largely consumerist: strong attraction to novelty, &quot;culture&quot; and impressive brands; but beware, this makes them active consumers, informed, lucid, demanding and uncompromising .
  53. 57. 1 5- 1 8 Values & attitudes: Robotic portrait of national values: My vision of the country where I live
  54. 58. <ul><li>Our Rrelationship with brands and media: </li></ul><ul><li>The new had become e- Marketing is a cultural and generational matchmaking. </li></ul><ul><li>Trust is valued more than anything </li></ul><ul><li>Finding and being Found is what truly matters </li></ul><ul><li>Searching & finding goes social </li></ul><ul><li>Sharing Economy Logic: input, output, thruput </li></ul><ul><li>We now pay more to express ourselves, and less to consume </li></ul><ul><li>We’re increasing looking to contribute, to connect, to </li></ul><ul><li>do something truly meaningful </li></ul>
  55. 59. So, What do I want to be? (What do I choose as an image vehicle? )
  56. 60. Thank you For more information, communicate via