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Application of Attitude & Personality Consumer Behavior Concepts for e-commerce
Citation preview
+
ApEx for group 9
Iqbal Khan (1212021) Supriya Thengdi (1212062)
Harkawal Cheema (1212019)
Sandip Jalan (1212047)
Chanchal Subhash (1212013)
Consumer Behavior
Personality
&
Attitude
Study of
Online retail Jabong
+ Industry Overview
+ India e-commerce Industry overview
India e-commerce key statistics
India's e-commerce market was worth about
$2.5 billion in 2009, it went up to $6.3 billion
in 2011 and to $14 billion in 2012. .
About 75% of this is travel related (airline
tickets, railway tickets, hotel bookings, online
mobile recharge etc.).
Online Retailing comprises about 12.5%.
India has close to 10 million online shoppers
and is growing at an estimated 30% CAGR
vis-à-vis a global growth rate of 8–10%.
Electronics and Apparel are the biggest
categories in terms of sales in retail
Key drivers in Indian e-commerce
Increasing broadband Internet and 3G
penetration.
Rising standards of living
Availability of much wider product range
Busy lifestyles, urban traffic congestion and lack
of time for offline shopping
Lower prices compared to brick and mortar retail
+ About
Myntra , headquartered in Bangalore and has
been funded by Venture Capital funds like Tiger,
Kalaari, Premji Invest, IDG & Accel Partners
Myntra was established by Mayank Sharma in 3rd,
August 2007 in the business of personalization of
products online. The products ranged from T-shirts,
mugs, greeting cards, calendars, key chains, diaries
etc.
In 2010, the company expanded its catalogue to
retail fashion and lifestyle products.
Myntra.com currently offers close to 50,000
products from more than 600 Indian and
international brands. It ships about 5 million
goods per month by hosting around 3,000 sellers
Myntra’s value proposition is “giving
consumers the power and ease of
purchasing fashion and lifestyle products
online”
Myntra sales of Rs.800 crore in 2013-14,
targeting sales of Rs 1,500 crore in 2015,
expects Rs 10,000 crore turnover in next 4
years
May 2014, Flipkart, India's largest online
retailer, acquired Myntra and would
invest $100 million (nearly Rs. 600 crore), in
the fashion business.
+ About
Jabong.com is an Indian fashion and lifestyle e-
commerce portal, is a part of the Germany’s
Rocket Internet group
Started operations in January 2012, headquartered
in Gurgaon, NCR
Jabong.com follows both an inventory model and a
managed marketplace model, in the inventory
model products are sourced from brands and stored
in the Jabong warehouse. In the managed
marketplace model, Jabong doesn’t store the
inventory but takes care of customer service and
returns
The e-store at present carries over 1000
brands and over 90,000 products.
In March 2013, Jabong was shipping
6000-7000 orders a day with annual
revenues of 100-150 million USD.
During September 2013 Jabong was
shipping 14,000 orders on a daily basis out
of which 60% were from small town
Estimated sales of Rs 900 crore in fiscal
2013
+ About
Zovi.com was launched in July 2011
The Zovi value proposition, locally design and
manufacture high-quality lifestyle apparel and
accessory products and exclusively offer them
online to you at extremely reasonable prices
Zovi designs its own apparels, follow the fast
fashion model and introduce new styles and
products every week
Zovi wanted to pass back the premium which
consumers pay for brands – and still charge a
significant premium
Zovi plans to earn 250 million USD in revenue in
three to four years(from Nov 2013)
+ ApEx Approach
+ ApEx Approach
Industry Overview
Target Consumer Personality Survey
Attitude towards Brands Survey
Brand Personality Assessment
Issues identification
Research mapping
Recommendation
+ Personality Traits of Online Shoppers
Personality Traits
Customer Innovativeness
Customer Materialism
Cognitive Personality
Customer Ethnocentrism
Sub classification
Stimulation Level
Visualizers
Verbalizer
Materialism
Compulsive Consumption
Social Character - Other Directed
Variety and Novelty seeking
Need for Uniqueness
Need for Cognition
Survey Questions
I often attend parties
I frequently chat online or through SMS/phone calls
with friends
I watch a lot of TV
I read newpapers
I read fashion magazines
I read generic magazines such as Reader's Digest
I do a lot of shopping
I like to dress for fashion and not for comfort
I like to visit places where I can meet many people
rather than a calm place
I like to be considered a leader
I like to be the center of attraction in a gathering
I like to keep myself updated on the latest fashion
trends
I like to read reviews on products I plan to use
I like to give reviews on products I have used
+ Personality Survey Response
2.75
3.17
2.67 2.68
3.20
2.86
4.25
3.6
3
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
AVERAGE of Myntra
Summary
AVERAGE of Jabong
Summary
Average of Zovi
Personality of Customers
Cognitive Personality
Customer Innovativeness
Customer Materialism
+ Attitude Survey Response Myntra Jabong Zovi
Affective 3.867 3.639 2.944 I find the site design of the site Appealing 3.8 3.75 2.5
I find the aura of the the site appealing 4 3 2.25
I like the packaging in which the site delivers me products 3.8 4 3.5
I love the way the products are delivered by the site 3.8 3.5 3
I like the personalization of the the site website 2.8 2.5 1.75
I like the visuals (pictures, videos) on the the site website. 4 3.5 3.25
I find the website of the site to be fast and responsive 4.6 4.25 3.75
It is easy to search on the site 3.6 4.25 2.75
The payment process of the site is convenient 4.4 4 3.75
Cognitive 3.956 3.75 2.861 I like the service delivery of the site 3.6 3.25 3 I like the brands cataloged in the site 4.4 3.75 1.5
The product catalogue of the site offers variety 3.8 3.75 2.5
I like the variety in terms of color, size and types of products in the site 4.2 4.5 2.5
The guarantee offered by the site gives me assurance 4 3.5 3.75
I feel the shipping charges on the site are reasonable 4.2 4 3.25
I think the site delivers products in a reasonable time 4.6 4.25 3.75
The testimonials of the site help me in making right purchase decision 2.6 2.75 1.75
I am confident that my transaction on the site are secure 4.2 4 3.75
Connative 4 4.313 3.813 I would buy from the site only if there are discounts 3.4 4 3.75
I would buy from the site only if it has return policy 4.6 4.5 3.75
I would buy from the site only if it has flexible payment options 4.4 4.25 3.75
I would buy from the site only if it has option of product trails 3.6 4.5 4
+ Brand Personality Analysis
Ad no Consumer Personality Trait Brand
Personality
1 Materialism (Compulsive ++ ) Excitement +
Competence
2 Cognitive Excitement
3 Materialism (Compulsive ++ ) Excitement
4 Variety and Novelty Competence
5 Materialism (Compulsive ++ ) Competence
6 Materialism (Compulsive ++ ) Excitement
Brand Personality:
Excitement
Consumer Personality Trait :
Materialism
https://www.youtube.com/watch?v=roZwF
RvdwRc
+ Brand Personality Analysis
Brand Personality:
Sophistication
Consumer Personality Trait :
Social Character – Other Directedness
https://www.youtube.com/watch?v=Tu1Pf
yb27Nc
Ad no Consumer Personality
Trait Brand Personality
1 Need for Cognition Competence
2 Social Character - Other
directedness
Excitement +
Sophistication
3 Social Character - Other
directedness
Excitement +
Sophistication
4
Social Character - Other
directedness, Ideal
Social Self
Excitement +
Sophistication
+ Brand Personality Analysis
Brand Personality:
Sincerity
Consumer Personality Trait:
Social Character, Other Directedness
https://www.youtube.com/watch?v=la9U_
ztz5kY
Ad no Consumer Personality
Trait Brand
Personality
1 Social Character - Other
directedness Sincerity
2 Social Character - Other
directedness Sincerity
+ Process for Identifying Issues
+
Issue 1: Does efforts by a Online Retailer towards countering
customer dogmatism impacts only the Retailer or the Other
Online Retailers as well ?
Consumer
Personality
Attitude
towards Brand
Dogmatism
Intention or
Behavior
Brand Efforts to
Reduce
Dogmatism
Issue 1 : Dogmatism and online retail
+
Issue 2: Role of Brand personality on purchase
intentions of the consumer
Ad - imagery Brand
Personality
Consumer
Attitude
Purchase
intentions
Issue 2 : Impact of Brand Personality
+
Issue 3: Online retail features for targeting
compulsive consumption
Brand Ads
Quite High on
Consumer
Compulsive
consumption
Brand
Personality
Brand
personality
portrays
Sophistication
or Excitement
or Sincerity That lead to
the question
Issue 3 : Compulsive consumption
+
Issue 4: Impact of Personalization on consumer attitude towards
online Purchase
Personalization score for all websites were lowest, although research indicates positive relationship
between personalization and favorable attitude
Myntra Jabong Zovi
Affective 3.867 3.639 2.944
I find the design of the site Appealing 3.8 3.75 2.5 I find the aura of the site appealing 4 3 2.25 I like the packaging in which the site delivers me products 3.8 4 3.5 I love the way the products are delivered by the site 3.8 3.5 3 I like the personalization of the website 2.8 2.5 1.75 I like the visuals (pictures, videos) on the website. 4 3.5 3.25 I find the website to be fast and responsive 4.6 4.25 3.75 It is easy to search on the site 3.6 4.25 2.75 The payment process of the site is convenient 4.4 4 3.75
Issue 4 : Personalization and Attitude
+ List of identified issues
1. Do efforts by a Online Retailer towards countering customer
dogmatism impact only that retailer or other Online Retailers
as well?
2. Role of website personality on purchase intentions of the
consumer
3. Online retail features for targeting compulsive consumption
4. Impact of Personalization on consumer attitude towards
online Purchase
+ Our choice for recommendations:
Jabong
Our assessment identified that Jabong needed more
improvement in the areas of the issues identified by us than
Myntra.
Zovi was exceptionally lagging is most of our issues and
hence we decided not to take up this site for our
recommendations
+
Issue 1: Do efforts by a Online
Retailer towards countering
consumer dogmatism impact
only that retailer or other
Online Retailers as well?
+ Dogmatism Trait Individual openness towards new and unfamiliar products, services, or/and ideas
High dogmatic individuals
More discomforted by a stimulus’ ambiguity or uncertainty
More likely to easily accept the advice of prestigious communicators
Low dogmatic individuals
Consistently comfortable with the change and vagueness,
Have more open beliefs systems and
Evaluate information on a more objective basis.
Perceived risks for high dogmatic individuals
privacy infringement,
system security and fraudulent behavior of the merchants,
credit card fault, and
product risk.
Challenges in online consumption for high dogmatic individuals
Newness of the online consumption
Unfamiliarity of environment
Gathering specific pre-purchase information
+ Dogmatism – paper findings
Dogmatism is negatively related to intent to consume
online
The relationship between dogmatism and intent to
consume online is moderated by trust in the e-tailer
The relationship between dogmatism an intent to consume
online is moderated by perceived value of exchange
+ Jabong Myntra Zovi
Reduce uncertainty and risk
associated with online
consumption – High
Dogmatism
- 100% Original promise
- 30 days free return
- Cash on delivery
- Privacy policy
- High Ad spending on
traditional media and
social media
- Display ads customised for
browing behavior
- Celebrity endorsement
- 100% Original promise
- 30 days free return
- Cash on delivery
- Privacy policy
- High Ad spending on traditional
media and social media
- Superior site navigation
- Limited ads (traditional
& Social media)
- Poor Site navigation
- No visual on home page
to give assurance of
return policy, return)
- No link to privacy &
Terms and condition
without creating account
Create value by
aggregating buyers and
sellers, creating time utility,
reducing transaction cost –
Utilitarian function
- Discounts
- Convenience - Mobile apps
- online tracking
- Drop off to charges
- Free delivery
- Return policy (some charges
of CoD levied)
- Discounts
- No shipment charges amount
exceeding 999
- online tracking of delivery and
shipments
- Convenience - Mobile apps
- Attractive offers and
positioned as value for
money
- free shipment for order
more than 599
- higher discounts for
higher transaction
amount
Stimulate consumer trust - 1500/- on signup
- Events like Jabong Fashion
week
- Gift cards
- Establish delivery trust, of
quality and transaction
transparency
- Loyalty and referral programme
- Gift cards
- no signup offer
- no loyalty or referral
programme
+ Recommendations – Issue 1
Jabong needs to concentrate on messages to reduce
consumer dogmatism towards Jabong, not just on conative
behavior of the consumer.
Emphasize in advertisements, website and consumer
communication
No privacy infringement,
High system security,
Checks against fraudulent behavior of the merchants,
Safeguards against credit card fault, and
Product originality
+ Issue 2: Role of website
personality on purchase
intentions of the consumer
+ Model for role of website
customer orientation and
website personality on
purchase intentions of the
consumer
Consumers look for congruity in the personality expressed through product merchandising, logos, designs, etc. with the website’s customer orientation (a proxy of behaviour).
If congruity exists consumers should demonstrate a greater preference for that website’s products
+ Paper Findings Higher website customer orientation has a positive impact on the
enthusiasm, genuineness, solidity, sophistication but negative effect on the unpleasantness dimension of the website personality
Perceived Website quality relates (a) positively to higher website customer orientation (b) positively to the perosonality dimension of enthusiam, genuineness, solidity and sophistication (c) negatively to unpleasantness
Higher (a) website customer orientation and (b) website quality relate positively to purchase intention
The impact of website personality on purchase intent is mediated by website quality
A positive relationship exists between the attitudinal measures of purchase intention and actual online page visits
+ Analysis from survey findings # Customer Orientation Myntra Jabong Zovi1 The site tries to meet the customer's needs 3.96 3.75 2.86
2 This site shows concerns about the customer's best interest 2.60 2.75 1.75
3 This site takes a problem solving approach in presenting products or services to customers 3.60 4.25 2.75
4 This site recomments products or services that are best suited to solving the customer's needs 2.80 2.50 1.75
5This site has some features that can help customers to find out which kinds of products or services
would be most helpful to them2.60 2.75 1.75
3.11 3.20 2.17
# Website Personality Myntra Jabong Zovi1 Solidity 4.60 4.25 3.75
2 Enthusiasm 4.00 3.00 2.25
3 Genuine 4.27 3.92 3.75
4 Sophisticated 3.53 3.25 2.50
5 Unpleasant (Negative - High rating means it is pleasant) 3.87 3.64 2.94
4.05 3.61 3.04
# Website Quality Myntra Jabong Zovi
1 Consumer's perception about the website quality 3.87 3.64 2.94
+ Observations from survey & paper
Best among the three. Hence, the purchase
intention of the consumer is most likely to be
highest for Myntra followed by Jabong
Low on all the aspects – Customer
orientation, Website Personality &
Website Quality
Highest on Customer orientation, but
low on other aspects
+ Recommendations – Issue 2
Jabong need to improve perceived website quality and
project distinct website personality
Make website personality more enthusiastic by making
website
Friendlier
Livelier
Vibrant using color schemes
+
Issue 3: Online retail features
for targeting consumers with
compulsive consumption
behavior
+ Compulsive Consumption Trait
Shopping addiction or Oniomania
“Shop till you drop”
Repetitive buying
Lack of impulse control over buying
Compulsive shoppers buy items they don’t need & will never use
How online retail helps
Opportunity to buy frequently, at any time
Unobserved buying
Variety of products
Ready information (reviews, fashion trends)
Satisfy urge to buy quickly
+ Buying motivations – paper findings
Ability to buy unobserved and avoid social interaction
Need to hide
Fear of instant recognition
Immediate positive feelings
Immediacy of shopping and buying rather than receiving or consuming products
Variety and choice
Across product categories
Across retailers
Information Search capability
Greater need to conform to
social standards
Availability of latest trends via
electronic communication
Positive correlation No correlation
+
Ads target consumer
personality – Materialism
(heavy bias towards
Compulsive consumption)
Website does not allow 1 click
buy
Display ads with browsed/
bought items violate privacy
Too many SKUs is unnecessary
Website design is not suitable for
compulsive buyers
Brand Assessment
Ads target Social character – other directness personality
Website has quick buy option
Browsing privacy is protected
More Apt for compulsive buyers
+ Recommendations – Issue 3
Better align website features for consumers with compulsive
consumption behavior
Introduce 1 click buying
Provide option for private viewing which disables tracking of user
buying/ browsing history
+ Issue 4: Impact of
Personalization on consumer
attitude towards online
Purchase
+ Consumer Attitude towards
Personalized Agents
Personalized Agents
Individual features of a website
The attitude of a online shopper towards a personalized
agent will depend on
Consumer’s depth of processing (ELM)
Consumer’s breadth of sampling (CST)
+ ELM model and online retail buying behavior
Central
Variable
Peripheral
Variable
User Characteristics Motivation, ability, Trait
Depth of Info.
Processing
Attitude
Change
Buying
Behavior
Central
Route
Peripheral
Route Perceived
Usefulness Excluded since web
personalization is a central route
of influence
Persistent
Attitude
+ Paper findings
Quality of
Personalization
Perceived
Usefulness
Attitude
Valence
Item
Selection
Depth of
Processing
Attitude
Persistence
Variation of
personalized
Items
Cumulative
breadth of
sampling
Attitude
Confidence
Subsequent
breadth of
sampling
+ + +
H1 (+)
H4 (-)
H3 (+)
H5 (+)
H2 (-)
H6 (+)
+ Comparison of the sites
Brand Quality of personalization Variation of
personalization Ability to trigger depth in
processing
Myntra • Similar stuff, will not trigger
purchase only browsing.(-)
• Navigation buttons reduce cost
of navigation (+)
• No info on hover increases cost
of sampling (-)
• Low variation in
relevance(+)
• Textual description, might cause lack of
interest and reduced depth of
processing.(-)
Jabong • Suggestions below the fold (-)
• Suggestions not use specific (-)
• High variation in
relevance (-)
• Ad covering part of description(-)
• Description below the fold(-)
Zovi • Suggestions seems to
complementary and hence
conative (+)
• But is below the fold (-)
• Irrelevant things that I viewed
earlier is shown (-)
• Trending items is first in list
• Medium variation in
relevance (-)
• Bulleted description easy to read.(+)
+ Recommendations – Issue 4
Improve quality of personalization.
Bring suggestions above the fold.
The suggestions must be personalized on user.
Increasing depth of processing
Make bulleted description (easy to read)
+ Thank You Questions?
+ Appendix
+ India online retail reach
Retail category penetration has
increased to 60% reach and has grown
to 37.5 million unique visitors a month,
an overall growth of 43% annually.
The top retail sites shown to the right
have each seen a growth of over 100%
in the last 12 months.
Amazon is the most visited retail site .
Flipkart leads the way among the Indian online retailers with 7.4 million unique visitors a month,
growing at 431% annually.
Jabong and Myntra have been competing closely in the lifestyle category with over 5.3 million
uniques each.
+ Brand Beliefs
Jabong Myntra Zovi
Fun Premium Not widely known
Convenience Stylish For teenagers
Excitement Variety
Reliable Top brands
Secure
+ Quality of Personalization.
Similar stuff. Might create
confusion.
More Depth of Processing?
Low cost of navigation
Hover gives no info.
Hence increasing cost of
sampling
+
Ad covering up
part of the
description
Description is
below the fold
+
Bulleted data easy to
compare. Probably more
depth of processing
Irrelevant
samples
Show what is
trending not what
the customer
might like
Complementary
products, but
placed below the
fold