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From eBay with love: How research helped put the sparkle on eBay’s Christmas planning
Suzanne Lugthart and Ruth Noble, MRS Awards, Winner, MRS Awards, December 2013
This article explains research by eBay, the online retailer, which sought to learn from a Christmas campaign and understand consumer needs at Christmas in the UK and Germany.
This article explains research by eBay, the online retailer, which sought to learn from a Christmas campaign and understand consumer needs at Christmas in the UK and Germany. The company had found that its Christmas trading peak ended earlier in December than its competitors, and that this was due to fears about item delivery times and suitability. A 'Sunday Spectacular' promotion was developed, with deals on a limited amount of stock. The research described here established that toys were eBay's biggest growth opportunity, men did not shop as had been previously thought, and 50% discounts are effective in converting sales. The findings have led to eBay's 2013 Christmas marketing campaign being more rationally based, with an extension of 'Sunday Spectaculars'.
Chinese ecommerce: How brands are exploiting the O2O trend
Low Lai Chow, Warc Exclusive, December 2013
This article looks at the fast expansion of online commerce in China, which has been supported by widening internet access and an underdeveloped physical retail environment.
This article looks at the fast expansion of online commerce in China, which has been supported by widening internet access and an underdeveloped physical retail environment. Traditional retailers are being forced to adopt an "O2O" model, that is, offline-to-online and online-to-offline. This model is particularly relevant to the automotive category. Penetration of ecommerce does vary depending on the city, but despite low internet penetration and limited infrastructure, third, fourth and fifth tier cities still have vast potential for brands. Mobile commerce is also gaining ground, with the demand for mobile payments high. Examples of brands leading in ecommerce include Tmall, the online retail site, Burberry, the luxury goods manufacturer, and adidas, the sportswear retailer.
China's silver surfers
Theresa Loo and Sirius Wang, Admap, December 2013, pp. 42-43
This article discusses the changing behaviour of people aged over 55 in China, arguing that using age alone to target consumers is ill-advised as there is much diversity within this group.
This article discusses the changing behaviour of people aged over 55 in China, arguing that using age alone to target consumers is ill-advised as there is much diversity within this group. Older people in China tend to be more financially secure, active and digital-savvy than previously. A significant number of products older people consume are bought for them by someone else and marketing should allow for this. There is a strong tendency towards rational, money saving purchasing habits, but an exception is often made when purchasing for grandchildren. Older Chinese consumers are increasingly shopping online, presenting an opportunity for marketers to gather data and deliver appropriate communications.
Effects of recommendation systems on consumer inferences of website motives and attitudes towards a website
Hyun Ju Jeong and Mira Lee, International Journal of Advertising, Vol. 32, No. 4, 2013, pp. 539-558
Drawing on the theoretical framework of consumer inferences of marketer motives, we explore consumer responses to different types of product recommendation provided by an e-commerce website (i.e.
Drawing on the theoretical framework of consumer inferences of marketer motives, we explore consumer responses to different types of product recommendation provided by an e-commerce website (i.e. recommendation systems, RS). The findings demonstrate that RS for alternative brands only are most likely to lead to the consumer inference of a consumer-serving motive, followed by RS for both alternative brands and additional products, and RS for additional products only. In turn, the consumer inference of a consumer-serving motive has a positive influence on attitude towards the website. However, the consumer inference of a firm-serving motive does not mediate the effect of RS type on attitude towards the website. Further, the effect of RS type on attitude towards the website occurs only for consumers low in interpersonal trust. Theoretical and managerial implications are also discussed.
Online and offline lessons from retailers in emerging markets
Jo Bowman, Event Reports, International Shopper Insights in Action, November 2013
This event report looks at the lessons retailers in fast-growth economies can teach their more-established rivals in mature markets.
This event report looks at the lessons retailers in fast-growth economies can teach their more-established rivals in mature markets. Many digital pure-plays in China, for example, are transforming shopper expectations by creating virtual reality stores, encouraging social shopping and pioneering same-day delivery services. Physical retailers in countries such as Brazil, China and Thailand are also experimenting with new models, like placing shipping containers laid out like stores in smaller cities in order to assess demand, or introducing female-only departments in bricks-and-mortar branches.
Regulatory Focus and Daily-Deal Message Framing: Are We Saving or Gaining With Groupon?
Iryna Pentina and David G. Taylor, The Journal of Interactive Advertising, Vol. 13, Issue 2 2013
Daily-deal sites such as Groupon and Living Social have seen explosive growth over the past few years, but many firms are struggling to craft effective messages that will appeal to consumers' deal-seeking motivations.
Daily-deal sites such as Groupon and Living Social have seen explosive growth over the past few years, but many firms are struggling to craft effective messages that will appeal to consumers' deal-seeking motivations. This study examines the cognitive process by which consumers interpret offers, specifically the interaction between regulatory focus and message framing. Two experiments suggest that matching regulatory focus (emphasizing non-loss for prevention-oriented individuals and gain for promotion-oriented customers) strengthens persuasion. Furthermore, the results indicate that different mechanisms operate for individuals with different chronic regulatory foci: prevention-oriented consumers tend to centrally process daily-deal offers with both compatible (prevention) and incompatible (promotion) message frames. The findings contribute to the theoretical understanding of regulatory compatibility by applying it to the online daily-deal context. In addition, it provides compelling evidence for marketers that the effectiveness of daily deals can be improved by matching the framing and arguments to different customer segments.
"Window" Shopping Online: Cognitive Processing of General and Specific Product Windows
Kevin Wise, Saleem Alhabash and Petya Eckler, The Journal of Interactive Advertising, Vol. 13, Issue 2 2013
In this study, 36 participants navigated Amazon.com while their on-screen activity and physiological responses were recorded.
In this study, 36 participants navigated Amazon.com while their on-screen activity and physiological responses were recorded. An analysis of on-screen activity showed online shopping as a series of transitions between general browsing array pages (e.g. computers) and specific product pages (e.g. Apple MacBook). We recorded physiological responses associated with cognition in the moments following the onset of each page type (general array/specific product). The onset of specific product pages elicited cardiac orienting responses indicating automatic resource allocation to encoding, while the onset of general array pages did not elicit cardiac orienting responses. Furthermore, the magnitude of heart rate deceleration during the orienting response was a significant predictor of how much time participants spent on specific product pages. This demonstrates that the cognitive processes of consumers on shopping websites during transitions between general and specific pages. These results are explained in terms of cognitive resource allocation during online shopping and exposure to interactive marketing.
Developments in ecommerce: Insights from Waitrose, Unilever and Amazon
Emily Barley, Event Reports, IAB Engage, October 2013
This event report looks at several trends now reshaping ecommerce from the perspective of three leading firms: Waitrose, Unilever and Amazon.
This event report looks at several trends now reshaping ecommerce from the perspective of three leading firms: Waitrose, Unilever and Amazon. One major shift is the growth in the number of people undertaking commercial activities on mobile devices, which requires a rethink in terms of website design and functionality. Effectively communicating brand values on digital is another challenge for brands and retailers, and Amazon has found that ads based around utility tend to deliver the best results across different screens. Marketers must also be wary of overestimating what big data can achieve: human factors still have an essential role to play alongside the numbers.
Unilever aims to combine content and ecommerce
Stephen Whiteside, Event Reports, Shopper Marketing Expo, October 2013
This event report describes how Unilever, the FMCG company, is improving its ecommerce offering through better functionality, search and content.
This event report describes how Unilever, the FMCG company, is improving its ecommerce offering through better functionality, search and content. Search is a key concern for Unilever as consumers want to find required information quickly. Spreading product content around the internet increases consumer touchpoints, and helps raise the product in search engine rankings. The report describes how ecommerce has been developed through brand stores on Amazon, the online retailer, and YouTube. Unilever focuses on adding functionality to its online content to increase sales.
Ecommerce in India: Trends and insights
Preeti Chaturvedi, Event Reports, IAMAI Digital Commerce, September 2013
This event report looks at the latest ecommerce trends in India, where the market has more than doubled in size since 2009.
This event report looks at the latest ecommerce trends in India, where the market has more than doubled in size since 2009. Research from KPMG predicted the majority of buyers will come from outside the country's biggest metropolitan centres. It also suggested that there is a trust deficit when it comes to making online payments. Despite this - and other problems such as tax issues and restrictive government regulations - companies like eBay, IndiaMART and Mydala all believe there are many reasons to be optimistic, as shown by the positive trends in each of their businesses.
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