The document explores how consumer behavior is influenced by the internet, defining consumer behavior as the actions and decision processes involved in purchasing goods and services. It outlines different types of consumer behaviors, factors influencing them, and the significance of internet marketing, highlighting its benefits such as cost-effectiveness, convenience, and the ability to reach a broader audience. Additionally, it discusses consumer preferences for online versus in-store purchases and emphasizes the importance of adapting marketing strategies to meet changing consumer needs.

1. CONSUMER
BEHAVIOUR
How Internet Changed
Consumer Behaviour

2. How do you
define
Consumer Behaviour?
1. “Consumer behavior is the actions and the
decision processeus of people who purchase
goods and services for personal
consumption” – according to Engel,
Blackwell, and Mansard, Consumer buying
behavior refers to the study of customers and
how they behave while deciding to buy a
product that satisfies their needs.
2. There are four types of consumer behavior:
i. Habitual Buying Behaviour,
ii. Variety-seeking Behaviour,
iii. Dissonance-Reducing Buying Behaviour,
iv. Complex Buying Behaviour.
Consumer behaviour types are determined by
what kind of product a consumer needs, the
level of involvement, and the differences that
exist between brands.

3. Types of Consumer Behaviour
i. Habitual buying is the buying behavior of customers where they are making repeat
purchases number of times of an already known brand without the process of high
involvement and decisioning. The product is perceived as commodity and does not
provide much difference from its rivals
ii. Variety-seeking buying behaviour occurs when the consumer is not involved with the
purchase, yet there are significant brand differences. In this case, the cost of switching
products is low, and so the consumer may, perhaps simply out of boredom, move from
one brand to another.
iii. Dissonance-reducing buying behavior occurs when a consumer is highly involved in the
purchase of an item, but they have a hard time pinpointing the difference between
various brands. ... The “dissonance” occurs when a consumer is worried they will make
the wrong choice and will regret their decision later.
iv. Complex buying behaviour occurs when the consumer is highly involved with the
purchase and when there are significant differences between brands. This behaviour can
be associated with the purchase of a new home or a personal computer.

4. • Here Are 5 Major Factors That Influence
Consumer Behavior:
• Psychological Factors. Human psychology is a major determinant of
consumer behavior. (motivation, perception, learning, beliefs and
attitudes)
• Social Factors. Humans are social beings and they live around many
people who influence their buying behavior. ...
• Cultural factors.(culture, subculture, social class system)
• Personal Factors. (age and life-cycle stage, occupation, economic
circumstances, lifestyle, personality and self-concept)
• Economic Factors. Economic factors that influence consumer behaviour
are Personal Income, Family income, Income expectations,
Savings, Liquid assets of the Consumer, Consumer credit, Other
economic factors.

5. What is Internet Marketing?
• Internet marketing is the process of promoting a business
or brand and its products or services over the internet
using tools email marketing, search marketing, social
media marketing, display advertising and mobile
advertising that help drive traffic, leads, and sales.

6. 6 BENEFITS OF INTERNET MARKETING
• Consumers are increasingly turning to the Internet for their buying decisions. This makes Internet marketing more important than ever before.
According to studies, to carry out the preliminary price and product research, consumers are turning to research on mobile Internet and social
media before making their final purchasing decisions.
• Through regular, affordable customized communication, you can build relationships with prospects and clients with Internet marketing. This
serves as a stark contrast to the days of mass marketing, a tactic that is slowly going extinct. Still not convinced that Internet marketing is the
direction your company should go in? Then, let the six benefits of Internet marketing listed below help change your mind.
• 1. Internet Marketing Is Inexpensive
• Marketing products through a physical retail outlet is much more expensive than marketing them on the Internet. The recurring costs of property
maintenance and rental are not relevant to Internet marketing. Plus, for display in the store, you do not need to fill your shelves and windows
with stock. Consequently, you can keep you inventory costs low by ordering stock in line with demand, instead of ordering it in anticipation of
demand.
• 2. Internet Marketing Allows for Convenient Store Hours
• Without having to worry about overtime payments to workers or opening hours, Internet marketing gives you the freedom to keep your enterprise
open 24 hours a day, seven days a week. Clients will also find it incredibly convenient to shop for your services and products on the Internet on
their own schedule. When it is convenient for them, they can browse your ecommerce store at any time of day and place orders.
• 3. Internet Marketing Provides a Customized Advertising Approach
• By building a profile of your customers’ preferences and buying history, Internet marketing enables you to personalize offers for them. You can
make targeted offers that are a true reflection of their interests by tracking the product information and webpages that potential customers
visit. Also, to help you increase the value of sales by consumers, you can get data for planning cross selling campaigns with the information
available from tracking webpage visits.

7. 6 BENEFITS OF INTERNET MARKETING
• 4. Internet Marketing Helps You Take Advantage of Social Media
• Social media is growing in importance every day. Internet marketing allows you to leverage this. The link between online revenue growth and social networking was
highlighted in a recent study by the Harvard Business School’s Executive Education area.
• The study found that there were increased sales of about five percent generated by those consumers who reported that they were most strongly influenced by social
networks. By incorporating social media tools in your Internet marketing campaigns, you can take advantage of this type of influence and watch your profits soar.
• 5. Internet Marketing Provides a Way to Really Build Relationships
• When it comes to increasing client retention levels and building relationships with consumers, the Internet is a crucial platform. By sending a follow up email to
thank the consumer and confirm a transaction, you can start the relationship out on the right foot when they make a purchase from your online store.
• You can help to maintain the relationship and provide a personal touch by emailing clients regularly with special offers that are customized for them. You can also
help build a sense of community on your website by inviting these customers to submit product reviews for the items they bought.
• 6. Internet Marketing Allows You to Reach More People
• You can overcome all barriers of distance by using marketing on the Internet. Without setting up local stores, you can sell products in any part of the nation, or even
beyond. This widens your target market significantly. Plus, without opening a network of distributors in various countries, you can build an export company.
• To make certain your products and services comply with local business regulations and are suitable for the local markets, you should enlist the help of localization
services if you plan on selling internationally or even in some remote locales nationally. Localization services include product modifications to reflect local market
differences and translation services.
• By now, you can plainly see that an expertly crafted Internet marketing campaign can open up a whole new world of opportunities for your business. You may be
tempted to jump right in. However, it is important that you take the time to create a plan and coordinate all of your online marketing efforts. Otherwise, you will
likely cause confusion among consumers. And, these days, the typical web-savvy consumer can spot a company with a disorganized online presence from a mile
away.

8. • What types of products do people prefer
to buy in-store vs. online?
While this varies greatly person to person, Signs found that on average, the
majority of consumers preferred to buy the following products in-store:
Groceries (Perishable 85%/ Non-perishable 75%)
Paper Products (75%)
Cleaning Supplies (74%)
These make sense, as there is a bigger sense of urgency behind getting these
products. In most cases, online purchases are more convenient, but in the
case of household staples like these, it’s actually inconvenient to have to
wait for them.

9. By contrast, these four products are most
likely to be purchased online:
• Books and Media (48%)
• Video Games (38%)
• Electronics and Accessories (27%)
• Gifts (26%)
• Again, this group is largely centered around convenience. In the case of e-books, media, and
video games, these are often instantly downloaded to your device at purchase, so there isn’t
a lag time.
• For electronics and gifts, these are often thought about well in advance, so the consumer can
typically wait the time it takes for the product to ship.
• So, as you build out your next ad campaigns, stop and think about how necessary your product
is for the user. Can they wait a day or two, or would they need it immediately? That will give
you a better sense of how to frame the goals of your campaign.

10. • What factors influence our decisions?
When asked about what consumers liked better about either option and what would cause them to choose one over the other,
here’s how they responded:
Motivations to make purchases in-store:
• To physically see and touch items before purchase (73%)
• To have the product immediately (72%)
• To avoid shipping costs (52%)
• To try on an item first (50%)
• Just enjoy going out to a store (26%)
Motivations to make purchases online:
• Convenience (85%)
• Price comparisons (72%)
• To save time (71%)
• To avoid crowds/other people (54%)
• To read product reviews before making a purchase (54%)

11. Final impact on consumer behaviour
• Across all three countries addressed by the study, the Internet has roughly doubled the influence of the
second strongest medium -- television -- and roughly eight times the influence of traditional printed
media. This shift in consumer influence indicates a need and an opportunity for companies to reprioritize
the mix of communications channels they use to reach their customers.
• Consumers use the Internet in different ways to make different decisions. For example, consumers are
more likely to seek opinions of others through social media and product-rating sites when making choices
that have a great deal of personal impact (e.g., healthcare options or major electronics purchases). But
they do use company-controlled sources when making transactional decisions on commoditized items, such
as utilities or airline tickets.
• While consumers see the clear benefits of the Internet on their lives, they continue to have concerns
about internet safety and the trustworthiness of some online information. In the UK, for example, 66
percent of online consumers say the Internet helps them make better decisions, but just 28 percent trust
the information companies provide on the Internet.
• Although most survey results were consistent across all three countries, use of the Internet shows distinct
national differences. Germany leads the three countries in Web research, for example, while UK
consumers are the most likely to have created an online profile site on a social networking page.

12. • So, how can marketers use this
information?
• Well, if you’re trying to prompt more online purchases, make sure that your website addresses these key reasons the consumer has for wanting to
buy a product online.
• Make your website a smooth, easy-to-navigate experience to boost overall convenience.
• Have blog posts and other content with price comparisons, and have a reviews section on your site and get great reviews from repeat customers.
• To eliminate the barriers that might prevent someone from buying online and going to an in-store competitor, take the in-store reasoning into
account as well.
• Make sure you have multiple, clear images of your product, showcasing both the professional polished images and customer photos so a visitor
can know what they’re getting.
• For clothing, always have a size chart and note the model’s dimensions (if one is pictured) as well as the size they’re wearing.
• From personal experience, this has significantly reduced hesitations I’ve had with buying products online. Offering free shipping for bigger
purchases and a great return policy is always helpful as well!
• Pay attention to consumer behavior shifts
• These may be the rules now, but they won’t be forever.
• In order to succeed, great marketers need to stay ahead of the game in order to meet consumers where they’re hanging out and present an
offering in a way that will be well-received.
• By knowing these preferences, marketers can craft better, well-informed campaigns to eliminate barriers and yield the desired results.