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Assignment 2: Executive Summary of M3: Assignment 2
The ability to present one’s findings from an evaluation or research study in a concise and persuasive manner is a requirement for any successful manager.
In M3: Assignment 2, you evaluated the buying process of an online consumer product or service from the marketer’s point of view using the five stages of the buying decision process.
Using your research findings from M3: Assignment 2, create an executive summary PowerPoint presentation. Cover the following:
- Include a statement of the problem or the topic of M3: Assignment 2.
- Concisely evaluate the findings from your research.
- Recapitulate any main conclusions or recommendations.
Develop a 5-7 slide presentation, excluding the title and reference slides, in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.ppt.
By Wednesday, October 30, 2013, deliver your assignment to the M4: Assignment 2 Dropbox.
| Assignment 2 Grading Criteria | Maximum Points |
| Created a comprehensive executive summary of research findings from M3: Assignment 2. | |
| Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation. | |
| Total: | 100 |
THE
ONLINE BUYING PROCESS
The Buying Process
Geralisa Eades
Argosy University
To buy a product online first, one must have access to the internet and have a valid mode of online payment. There have been great strides made in creating the infrastructure to make the internet accessible to many globally and this has contributed positively to the use of the internet to make product or service purchases. There are numerous forms of online payment; visa, master card and credit card are just a few. Most if not all of the banking institutions have availed these modes of payment to their customers thereby enabling them to transact business online. Once one connects to the internet, the next step is searching for one of the many online shopping websites such as amazon or eBay using online shopping search engines. Many websites that offer products or services for sale have created a user interface that is friendly and easy to maneuver to provide a smooth experience to even the first time user. Once there on the website, there will be a search option which would in most cases be divided into various categories- electronic equipment, mobile devices, musical instruments, just to mention a few. In deed as the online shopping sphere has expanded there is no limit to what one can find available for purchase, everything imaginable can be bought from these websites. Once the search for the customer’s product is completed an array of the product will be displayed. In many instances the product will be available in different parts of the world and at competitive prices. There is also a great amount of information available regarding the products and at times some of these websites have a live salesperson in case one needs assistance or additional information. Therefore it is vital that the customer takes time in selecting the product that best suites his or her price range and one that is in the best condition among the many that are on offer. Careful evaluation should be carried out and if needed extensive research is done and enquiries be made to make sure that when the final decision is made it is a well- informed one and the customer will not rue his choice.
When the customer makes the decision on the product that he would love to purchase then he makes payment through any of the methods outlined above depending on the online seller’s accepted mode of payment. Here is where care should be taken to avoid credit card fraud. The customer should provide information that is relevant and avoid going into detail because unscrupulous people may try and use these information to impersonate the customer. Again it would be advisable to liaise regularly with the issuers of this credit or debit cards before making these online payments so as to make it as safe as possible. Many financial institutions have put in place measures to curb against insecurity. Security Sockets Layer encryption has generally solved the problem of credit card numbers being intercepted between the customer and the online seller. There should be goodwill from the owners of these online shopping sites not to pass the information given to them to others or to use this information in a manner that could risk the security of the customer. Indeed, such legislation do exist protecting customers from unruly sellers who would otherwise want to benefit irregularly at the expense of the consumer. Stiff punishments wait for those who flout such legislation.
In addition it is important to note that there are other add-ons like shipping cost if the product that is being purchased requires that kind of transportation. In case of products like music or e-books then the customer should make sure that he is aware of other costs apart from the initial cost of the good. There has been fear because at times there is lack of full disclosure by some of these online merchants of the true total cost since in some cases there will be need for payment of duty in case there is cross-border transportation. Once payment has been completed, details will be given for the expected duration that the product will take to arrive to the customer’s location and the manner of delivery. Some online companies will deliver directly to the address the customer provides while some will deliver to a store near you or that which they are in collaboration with. A tracking number will be given for the item and the customer will be required to use the number in checking the progress of the product through various destinations. After-sales services are important in the online business as there will be frequent back and forth between customer and seller regarding the status of the product before and after it gets to the client. Normally an after-sales service would probably be required if the product has taken more than the stipulated time to arrive or in case the item as received is not in the condition that it was purported to be at the time of purchase. There may also be need to familiarize the customer with the manner of use of the product in addition to any manuals that may have been provided and some of these products need warranties in case of faults arising from use for a set period. The company should strive to maintain its integrity by making sure that they furnish their clients with all the relevant information and that all the products being offered for sale in their website meat certain set quality standards. This not only benefits the customer but also means increased business for these companies since they will be known for their functional products that are beyond reproach. The online shopping experience should be one that is user friendly and the customer should be left with the feeling that it was worth he’s time and it should offer a vastly better option to conventional shopping which may at times prove very cumbersome and does not offer as much variety.
Buying a movie from the famous website iTunes is a process that I have been a part of for a number of times. One of the reasons why many people choose this website to purchase or rent movies or music is that they offer discounted prices for such content. It is not only a cheap method but it is also a legal means since most of the makers of these entertainment products have given consent for this kind of sale. In fact many of them view iTunes as the best launch pad for their product since it has a global reach and it is an easy and fast way to access their product. To begin the process of buying music, first you need the iTunes application in your computer or tablet, log in into the website if one has an account and click on to the ‘iTunes store’ option where a range of movies and music will be available. Once there one has to enter the name of the movie he intends to purchase which will save time instead of looking manually through the enormous content that is available in the store.
As a marketer one has to look at the first stage of buying a product which is problem recognition. The marketer has to be aware of the needs of the customer and know how his online business can fulfill that need. The marketer has to conduct a thorough and comprehensive research of the market, be familiar with the latest products on offer as well as find out the ease of access or otherwise of finding that product. In this case for example, iTunes fills a very important gap that would otherwise leave many people unsatisfied in regards to meeting their entertainment needs. iTunes came up with a novel way of making the latest music and movies available to a worldwide population for a price that was favorable to them and would also reward the artistes fully as well as sustaining their business and keeping the website operational. Therefore the marketer has to work hard to determine the drive that will connect to the product class or brand and make the buyer feel that the product can satisfy the drive and also provide the buyer with an easy and relatively cheap way to obtain the product. Here, the marketer must seek to make sure that he creates an appealing case to the customer to use this means as an alternative to conventional shopping and then establish continued use. It is just not about attracting the customer but also maintaining a level of relevance and trying to prove to the customer that buying from the internet is the way to go by continuously updating the list of products on sale and making the website user-friendly and easy to maneuver. The first thing then is to make your presence felt in the market, by putting yourself out there through advertisement and selling your option as a safe and secure means as opposed to that of your competitors. It is all about creating an impression and a lasting one at that, pitching your product as the solution to your potential customers’ needs and making it known that anything within the realms of their imagination can be found just at a click of a button either at the comfort of their homes or workplaces eliminating the hustle associated with driving to stores and not getting what you want. Problem recognition is therefore a vital step in the buying process as it is, it could make or break the business of e-commerce and as such enough time should be taken in collecting the market’s tastes, preferences, internet reach among other things. The marketers should ask themselves pertinent questions; is there is a need for this means of commerce? What are the current trends regarding the use of the internet for making of purchases? Who are your competitors and what are their limitations? How better can you improve the online shopping experience from the manner it exists currently?
A lot of brainstorming with the marketing team should be done and the marketer should come up with a solution that addresses the need fully. What he comes up should seem to be the panacea of all that ails the market and it should cover all facets relating to the problem. The marketer should be able to come up with a product that stands out from what currently exists and make it visible on the worldwide web. Customers’ preferences change with changing times and the marketer should be able to have a flexible product that would be easy to manipulate, without having to start afresh the whole process. It is thus evident that problem recognition is significant and the marketer should dedicate ample time and resources to this particular sector and this will hopefully launch a successful venture.
The next stage in the buying process is the search and determination of alternatives. This is another critical step because it is where the buyer is met with a variety of items and he is required to research on the alternatives. Taking the case of buying a movie on iTunes as an example, upon searching and finding the movie that I wanted I found that there were different versions of the movie in terms of quality and size. Most of the online stores list items on the basis of the date of release or according to the number of times the product has been downloaded or bought. Here the marketer is supposed to make the website as appealing as possible. It should make the customer consider all the alternatives available and give him an opportunity to maybe try them out. For example, iTunes has a preview option where the customer can have thirty seconds to have a look at each of the movies he is choosing from. The marketer should try and tap into the customer’s curiosity now that he is faced with critical decisions in trying to single out the best from the rest.
He should try as much as possible to make the customer believe that his products stand out from those of the competitor. A good marketer should convince the customer that other alternatives being offered do not meet the highest standards by either offering discounts or favorable downloading conditions in the case of movies or shipping charges for a product that requires transportation. In fact iTunes offers people links based on previous purchases thereby trying to create a follow-up process if one needed an add-on to whatever he had purchased, in this case if it was a sequel to a movie. This also offers a feeling of association to the online vendor since it shows that they keep track of your activity in their website and are in touch with your likes and preferences and are trying to improve their services to you. These are some of the tips the marketer should use in trying and making the searching and determination of alternatives easy and convenient.
The next stage in the buying process is the evaluation of alternatives. Perhaps the most vital step, this is where the customer weighs the pros and cons of opting for one commodity as opposed to another. The customer is faced with a barrage of products some promising results beyond the scope of thought and yet others that promise nothing short of perfection. This stage requires that the client uses his discerning eye in separating the truths from the half-truths and arrive at a product that meets his criteria. The customer needs to conduct thorough research to clarify any issues that he is not sure of. He should collect information about the numerous alternatives from all sources including friends, the internet and various media outlets and analyze this information and come up with a decision that is practical and best suited to his needs. One great advantage of online shopping websites is that they offer the consumers chances to review the various products after purchase or use. The customer should take time and read through these reviews and thereby gain useful insight as to the functionality and durability of a product. Back to the iTunes example, the consumer can use the opportunity of watching the movie preview to evaluate it and assess whether it satisfies the need in him. Various parameters that the consumer will use in judging a product may include the product’s attribute, weight, utility function for each attribute, durability and many other attributes.
The marketer here comes in, in a very influential way. He has to build a brand image that is big enough to make a consumer settle for their product. Consumers will go for the product that is backed by a brand that has untainted reputation and has a high threshold of credibility. Building a brand does not just entail pumping money into advertising your product the world over but it depends on the relationship the marketer fosters with the consumer. The number one priority of the marketer is to meet the customer’s expectations. The design of the website for online shopping should be user-centered and should be all about making it easy and convenient for the customer. The marketer has to make a promise to deliver excellent service and then live up to that promise giving the customer a reason to come back subsequently. It is important that the customer feels valued and the marketer has to make sure he communicates that severally. The website must be one that is not susceptible to delays or slowing down, it must be able to withstand huge traffic at the same time and still deliver in a timely manner.
The marketer should make sure that correspondence to the customer is fast and any issue raised by the client is adequately responded to. All these measures are to make sure that when the first-time consumer is evaluating the alternatives, he has prior knowledge of your business and how trustworthy and dependable it is. The marketer, having built a robust image of the product will be in pole position to attract buyers despite competition from numerous others enterprises. ITunes has over the years distinguished itself as the non-stop shop for buying or renting entertainment content because it has constantly made itself relevant, dependable and transparent. It has adhered to all laws governing the sale of its product thereby making the customer feel safe buying its content. For the marketer to gain trust, he should be a good steward of the customer’s data and personal information and avoid using it for illegal business or sharing it with unauthorized 3rd parties. Enhancing the product’s image, from the marketer’s point of view should be the main objective making their product the obvious choice when the consumer gets to the stage of evaluating the options available.
The next stage is the purchase of the product once the customer has made his decision. The customer has settled for a particular product(s) from among a set of alternatives. He has made a conscious, well-researched conclusion that his choice is the most suitable and gives him the greatest satisfaction. The purchase process is normally swift and happens in real-time and the customer will know whether the transaction has been completed or not. In most cases a notification is received from the bank, showing the fine detail and a transaction number is given in case there is need for provision of evidence in the future. The marketer should make sure that this phase of buying is smooth as possible and security should be ensured. He should strive to assure the consumer that the bank details will not be revealed and that the financial transaction only relates to the two of them and the credit card number will remain concealed. In case the transaction entails any form of foreign exchange, the marketer should make the current exchange as is, known to the buyer and being honest enough to reveal any other add-on costs incurred for the purchase. Hidden costs are a major problem in the online business and the refusal to fully disclose them will bring a sense of underhand dealings by the marketer. The marketer can also introduce the shopping cart experience where multiple items can be put in the cart as the total cost is calculated and the option of replacing the items should also be available. This tends to give the consumer the feeling that online shopping is similar to the everyday experience of shopping in a physical store. The final stage is the post purchase evaluation by the buyer. Does the product meet his requirements? Does it match the product that was on offer by the marketer?
What are the after sales services that the marketer offers? Are there ways that the customer can use to send feedback to the seller? These are some of the issues involved in the post purchase evaluation. The marketer should deliver the product on time as agreed by the buyer and it should be in the right condition. The post purchase phase is critical because it determines whether the customer will be back whenever he needs to buy something online. It also plays a part in advertising because when the customer is satisfied with the service he gets he will put a good word in to potential clients by making good recommendations. Therefore the marketer should not forget about the buyer once the purchase is completed but he should continuously seek feedback from the consumer. It is therefore apparent from the foregoing that the marketer plays a crucial role in the various stages of buying a product online.
References
Wisher,R.(2008). Buying movies from iTunes. Retrieved From:
http://voices.yahoo.com/buy-videos-itunes-own-movies-cheaper-than-2234500.html?cat=59
Weele, A. J. (2010). Purchasing & supply chain management: Analysis, strategy, planning and
practice. Andover: Cengage Learning.
Davis, K. (2011). Slow down, sell faster!: Understand your customer’s buying process and
maximize your sales. New York: American Management Association.
