Consumer Behavior in B2C on Digital Platform
In last article we have seen how Digital platforms can be used as an efficient channel to reach target organizations. In this article we will focus on the Consumer behavior in B2C market. Consumer behavior is a process with three stages: Pre-purchase, purchase and post-purchase. It is important to understand that influencers affecting consumer purchasing behavior will change at each stage. The marketers categorize consumer decision making into cognitive, habitual and affective.
Many of our experiences are locked inside our head and they may surface years later if the right cues prompt them. Enhancing customer experience and using these value propositions as a competitive advantage can do wonder in the digital eco-system. The positive memories created during this process serve as self-recommendations for future purchases. These web platforms have their own challenges and the memories can decay with time, forgetting can also occur due to interference. As we learn new information, it displaces the earlier exiting information. Consumers may forget stimulus-response associations if they subsequently learn new responses to the same or similar stimuli. In digital world, customers are subjected to a lot of information which has led to increasing interferences in day to day life. So, an organization which can strongly communicate its value propositions and create positive impact on consumers’ mind will have sustainable future.
Research suggests that what other consumers tell us about products (good or bad) is more influential than formal advertising and it turns out bad news really does travel fast. According to a study by Colloquy in Mar-2011, 3 out of 4 people advise their friends and family when they have a bad experience with a product or service which clearly surpasses the 42% who say they always recommend a product or service they really like.
Social media is easy, trusted, necessary word of mouth. Online social networking magnifies the impact of word-of-mouth communication. It has opened a new door to share online recommendations on these social networking sites. Social Media also strengthens the relationship between business and consumers through engagement like endorsement and loyalty. The social endorsements of fans and followers are incentivized by the way of contests and prizes.
Traditional vs Digital Platforms
For customers who shop online they see a lot of options, information and reviews from other customers. The compromise effect which plays a significant role in offline shopping becomes insignificant. Consumers in digital eco-system makes informed decisions and act rationally. In recent years, Opt-in Marketing has seen a phenomenal average conversion rate of 25.5% where successful web advertisement campaign has 0.08% conversion rate. Opt-in marketing may become an integral part of consumer behavior, as they choose for themselves what messages to receive and pay for that in return with greater attention and higher conversions. With the growing mobile market and consumer driven market, buyers’ trends will continue to shape the way that brands do business with their customers across channels and devices.
GlobCon Technologies can help companies analyze the consumers’ behavior on different digital platforms. The insights from this analysis will assist companies to make better informed decisions for marketing campaigns, product design and timing of the product launch.
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