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Final Factors Influencing the Information Search and Evaluation Process for Online Purchases

Final Factors Influencing the Information Search and Evaluation Process for Online Purchases

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Final year MBA project report PPT
Final year MBA project report PPT

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Factors Influencing the Information Search and Evaluation Process for online Purchases

Presented By Arun Trikha
MBA (PT) 4706/10
4 May 2013

Semester VI

Table of Contents
 Introduction  Literature Review  Research Methodology  Research Findings and Conclusion  Appendix

2

Introduction
Online Marketing
Factors Influencing Growth Drivers Challenges

 Large domestic internet base  Positive consumer behavior pattern
towards online media

 Lack of trust in internet marketing
 Literacy and language barrier

 Growing proliferation of internet on
mobile

 Large expatriate population

Emergence of social media networking Internet turning into an effective sales medium Trends Growing of online marketing activities by corporate Indian players expanding globally

3

Introduction
Online Marketing
Benefits to Potential Buyers Convenience
Customers can order products 24 hours a day wherever they are. They don‟t have to sit in traffic, and a parking space, and walk through countless shops to find and examine goods Customers can find reams of comparative information about companies, products, competitors, and prices without leaving their office or home Customers don‟t have to face salespeople or open themselves up to persuasion and emotional factors; they also don‟t have to wait in line

Information

Hassle Free

Benefits to Marketers Quick adjustments to market conditions Cost Interactive Engagement
Companies can quickly add products to their offering and change prices and descriptions

On-line marketers avoid the expense of maintaining a store and the costs of rent, insurance, and utilities. They can produce digital catalogues for much less than the cost of printing and mailing paper catalogue
The Internet is arguably the most interactive and engaging medium among various others. Interactive campaigns have become a norm with the power of the online medium Marketers can learn how many people visited their on-line site and how many stopped at particular places on the site
4

Audience Sizing

Introduction
Online Marketing
Internet Marketing Trends 2013

1

Design matters

6

The multi screen world

2

Marketing goes visual

7

Social media gets smarter

3

Social referrals

8

Retargeting goes mainstream

4

Mobile and video

9

Email marketing

5

Cloud based tools

10

Internet in pocket

5

Literature Review (1/2)
Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, mobile advertising, and Web 2.0 strategies

Social media, email marketing, and search marketing is considered as the top three online investment channels. It has been noted that online users in India have exhibited willingness to make purchases over the Internet by getting influenced by the online advertisement; this is quite evident from the growing net commerce industry

The total online advertising spend in India are focused across the categories such as search, portals/ vortals, social media, email, video, online classifieds. The retail industry has also benefited from its online version which has resulted in the growth and expansion of the sector worldwide

BFSI, automotive, and travel industry are the dominant advertisers using online media in India. Automotive display advertising almost doubled in FY2011 to reach INR 76Crores, representing growth of 95%

6

Literature Review (2/2)
" Those who are still more into the offline environment don’t understand the potential online offers. From a
spend allocation, for online players 70% of spends go online since that’s where the consumers are. Once online marketers start establishing this correlation, spends on digital will grow.” – Dhruv Shringi, Vice Chairman, IAMAI & Co-Founder & CEO, Yatra.com

" Mobile offers great opportunity in terms of first time users searching on their devices. In developed countries, 30-40% of the transactions on travel happen on mobile. In India, that figure is only 3-4%, highlighting the huge potential that exists.” – Deep Kalra, CEO, Makemytrip
“Brands are evolving into the digital space and it is important to use creativity for the benefit of the consumers. Creativity allows us to communicate an emotion and that is essentially its role in my business. At Marico, we look at digital as a growth driver.” – Aditya Save, Head-Media & Digital Marketing, Marico “To tap the true ad spend potential of this medium, what will really help is a concerted effort to engage lead brands and marketers with real success stories, where the digital medium has played a key role in building brands and businesses.” – Ajay Kakar, CMO, Financial Services, Aditya Birla Group “Digital as a medium has to put creativity in the hands of a consumer. We will see a lot more openness in the near future.” – Vikas Tandon, Managing Director at Indigo Consulting
7

Research Objective and Scope

 The primary objective of this research report is to develop deep understanding of the factors
that drive and influence the following:

Research Objective

• Study the factors which influence the online purchase closure • Perception, attitude and behaviour of the consumers towards the online purchases • Analyze the products and services offered by the various online marketing agencies in
India and their impact on the purchase decision of the consumers

Scope of the Study

Geographic Scope

India

Industry Scope

Online Marketing

8

Research Methodology
Primary Research – Online Survey
To understand the perception of consumers towards the online marketing and understand the current and forward looking trends in online marketing in India, I have conducted this survey amongst Internet users, online shoppers, people knowledgeable about internet.

Survey Questionnaire

 Based on information gathered through secondary sources, I have prepared a succinct
questionnaire, ensuring an appropriate survey length. The questionnaire comprised of 9 questions

Sample Size

 66respondents including Internet users, online shoppers, people knowledgeable about internet.
This also includes housewives, professionals, and students

Screening Criteria

 I have conducted survey among respondents who qualify the following: • Smart phones • Access to internet • Made online purchase once in last 6 months

Data Synthesis and Analysis

 Used data collation and analysis techniques to interpret the final outcome , hopefully to arrive
at an understanding of the process of online purchase

9

Research Methodology
Primary Research – Questionnaire

Based on the information gathered through secondary sources , succinct questionnaire is prepared including various themes. These themes includes:

1
Perception of consumers about online marketing

2
Factors influencing the information search

3
Factors facilitating online activities

4
Major concerns of people while making an online purchase

10

Research Methodology
Secondary Research – Sources
To gather information on the online marketing, influencers that affect the consumers’ online shopping behaviour, trends, drivers, and barriers, I have conducted an extensive scan of reliable secondary sources. Below is an indicative list of the sources:

1
Websites of major online marketing agencies in India

2
Press releases and news articles

3
Published reports and literature

4
Published studies and articles by subject matter experts

11

Research Findings

 The adage “ Customer is the King” stays relevant in the online purchase domain as well

 The customers are making decisions of online purchases by streaming through other

Customer is the king

customer‟s reviews and interactions on the internet

 The social media sites are becoming a major referral grounds  Any subpar service/ product is lambasted online leading to wide spread awareness to those
connected and also the results pop up in any searc h conducted

 With the advent of smart phones, there is a bank and a shop in every pocket

 A well connected consumer is a boon for the online purchase decisions
 Data search, variety, price research, product search are becoming more vast and more easy

Online Purchase Ecosystem is here to Stay

with every passing day

 The online identity and privacy security seems to be reaching a place where it is more or less a
safe market place, barring certain threats, which like real market place are ever evolving

 The earlier apprehension of „ Lack of touch‟ definitely is there but is slowly getting away given, I
think, the impact of easy returns policies.

12

Conclusion

The final analysis throws light at the major influencers in the online purchase process :

1

Most people are now comfortable making online purchase, this may be due to the ease of payment processing/ replacement offers

2

The major concern of privacy/ identity theft, is slowly getting addressed through the measures to secure online customers, but still majority has this as a concern

3 One new development that has come out is that the people’s decisions are
majorly influenced by the opinion of other users ( interestingly enough, the expert opinion is no major swinger)

4

Online adverts/ E-mailers/ SMS , access to internet and smart phones are also influencing the profanity of making an online purchase.
13

Case Studies
 CarWale.com, one of India‟s leading automotive web portals, allots 80% of its budget to the
online medium; a large portion of it goes to Google AdWords

 The intent behind forming CarWale was to offer well researched content to both car buyers and
sellers in India to enable them to make informed choices. CarWale also connects users to leading car manufacturers like GM, Skoda, Mahindra, and so on. It also has affiliations with leading insurance and finance companies

Carwale.com

 CarWale.com turned to Google AdWords to help them attract more users. The online
medium worked wonders to help them effectively target two different audiences – buyers and sellers, on one hand and manufacturers and dealers, on the other

 Google AdWords has helped CarWale.com get around 20-35% new visitors per month.
According to Tufail, „Conversion Tracking‟ in Google AdWords is an effective way to track ROI, and to make future predictions‟

 Flipkart.com was launched by a passionate group of professionals who aimed at giving Indians
a good online shopping experience and excellent customer service. Technological initiatives were focused on making the search for books faster and more convenient

 Marketing Effort: In its social media initiatives, Flipkart.com aims at facilitating an easier

Flipkart.com

conversation channel for customers and users. Conversations are to the point and are targeted at specific issues, thoughts and ideas. Flipkart.com began activities to make its presence felt on Facebook and Twitter about a year ago. The company has also used LinkedIn to connect with people. The popularity of the site has grown through recommendations

 Results: Flipkart.com has a strong presence on Facebook, with a staggering number of fans.
The company has more than 690,000 fans and has used easy, interesting conversations to engage them. Flipkart.com has 2,877 followers on twitter. Flipkart.com‟s Alexa global ranking is 2,101, while its India ranking is 164
14

Questions ?

15

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