INMA_A01.QXD

Online customers’ expectations and motivations

In the UK, over 50% of Internet users had shopped online by the end of 2004 and this is

a trend predicted to continue to grow in terms of numbers of consumers and the

amount they spend (Allegra, 2005). However, it has been suggested that too many com-

panies are failing to realise the potential of this new digital trading environment and are

tending to adopt defensive strategies, taking the lead from their nearest competitors as

to what the organisation should be offering online rather than capitalising on the

potential provided by digital channels (Allegra, 2005). E-retailers should aim to under-

stand how customer expectations have been raised. Key areas where customers have

high expectations of online retailers are the following:


 Logistics– the critical link between consumer-based Internet ordering and the delivery

of the product to the consumer is often referred to as the final or last mile. The last

mile, including product transportation, is frequently considered the most important

element of the order fulfilment process, i.e. 89% of online shoppers rate on-time

delivery high in importance and 85% of buyers who receive their order on time

would shop at the Internet merchant again. Thus, delivery-related issues have been

shown to have a high level of importance to online shoppers (Esper et al., 2003).


 Security and privacy of information– customers now expect that if they are prepared to

provide detailed personal and financial information it will be stored securely.

ONLINE CUSTOMERS

In an online purchasing situation, the initiator, decider and user roles remain similar to those in an offline

purchasing situation but research has shown that the influencer and the buyer can be significantly changed

(e.g. the influencer/buyer is likely to be a younger member of the household; children and teenagers who

are playing an increasingly influential role in online purchasing decisions). Furthermore, they are very likely

to be those persons who actually conduct the online transaction. This is important for the digital marketing

managers as they need to consider how to tailor their web site content and search marketing strategy in

order to communicate with this relatively new type of influencer. Increasingly, younger influencers are enjoy-

ing more power in the online purchasing situation. E-tailers (see e-retailing section) are increasingly using

web sites to support the purchasing decision by providing information at the evaluation stage of the buying

process and also to avert post-purchase dissonance through sophisticated after-sales support online.

Activity 10.1 ‘Going shopping online’

Select a product or service of your choice that you are about to or would like to be able to

purchase. Visit as many web sites as required until you find a product or service that could

meet your needs (see Figure 10.1, for example).

Using your online shopping experience identify:

1 The problem you were seeking to solve

2 The extent of your information searching

3 The choice criteria which informed your decision making

4 The purchase solution (your preferred product or service)

5 Evaluate the web sites you have visited in terms of how easy it was to find the information

you needed to make your purchasing decision.