Consumer Buying Behavior: Read The Following Case Assignment

Consumer Buying Behaviorread The Following Case Assignmentebaycreatin

Consumer Buying Behavior Read the following Case Assignment: Ebay Creating Customers on the Move The advent of mobile commerce (m-commerce) has begun to create significant changes in the way consumers make purchasing decisions. The introduction of online shopping first began to draw customers away from brick-and-mortar retailers, changing the location of where they made their purchases. The use of mobile devices has expanded the location of purchase decisions even further, so now consumers can make purchases from almost anywhere, so long as they have a mobile device with them. It also has leveled the playing field for consumers in many cases, as it allows them to comparison shop on prices of products that they might find in stores. In 2009, the mobile commerce market generated $18.3 billion in total revenue. By 2015 it’s projected to reach over $119 billion. When it comes to m-commerce, eBay has jumped in with both feet. It is estimated to hold about 3.3 percent of m-commerce, compared to online retailer Amazon’s 1.5 percent. It also was estimated to sell $1.5 billion in goods via m-commerce in 2010, compared to $600 million in 2009. eBay launched its first mobile application for the iPhone in July 2008 and has since produced 14 apps, including eBay Selling, StubHub, Deals, and Fashion. eBay’s core iPhone application has been downloaded 14 million times, and its entire stable of apps has seen over 30 million downloads worldwide. Purchases range from clothing and accessories to sporting event and concert tickets, computers and technology gadgets, collectables, and even luxury automobiles. Research indicates that more than half of regular m-commerce purchasers are comfortable spending over $100 on a mobile purchase, and 14 percent are willing to spend over $1,000. eBay has been quick to embrace the trend toward comparison-shopping, as potential buyers compare in-store prices online with those offered by other retailers. In June 2010, eBay purchased RedLaser, a mobile app that uses the cell phone camera to identify a product’s barcode and locate that product within eBay’s system. If a buyer is searching for a certain designer jacket for example, he could compare prices between eBay’s auctions, flat priced buy-it-now options, and eBay’s Fashion Vault, which offers limited-time deep discounts on select high-end merchandise. But while eBay has excelled in m-commerce so far, its ability to fully capitalize on this growth potential depends on how it is able to influence consumer-purchasing decisions. Merely allowing consumers to search for items, compare prices, and then make a purchase isn’t enough. As eBay VP of mobile platforms Steve Yankovich says, “We want consumers to engage when they don’t have a purchase in mind.” The combination of apps with mobile devices enables browsing and purchasing virtually anywhere at any time, especially during downtime—say when the potential buyer is getting a haircut or waiting in line at the coffee shop. By enabling buyers more opportunities to shop and make purchases, eBay is hoping to spark purchases based on the buyer’s immediate situation. The eBay Fashion app is designed to inspire browsing and experimentation, offering features such as a clothing-focused search function, a virtual closet to save various finds, and a mix-and-match feature that allows users to pair up articles of clothing with various accessories. Users can even take a picture of themselves using the phone camera and the Fashion app will superimpose the outfits they create over their figure, allowing shoppers to digitally “try on” the looks. So if a purchaser saw a dress she liked at a party, she could “try it on” and match it up with accessories in her wardrobe. eBay is planning to release even more apps like eBay Fashion, targeting key eBay shopping demographics such as car enthusiasts and home-and-garden enthusiasts. Early trends suggest that shoppers are responding to eBay’s efforts as well. As eBay has continued to develop the offerings of the eBay Fashion app, average user browsing time on the app has increased by 40 percent since its original release and mobile fashion sales tripled over the past year. If nothing else, the new trends in m-commerce move very quickly, and eBay must continue to innovate if it wants to stay ahead of the game. Says Yankovich, “Nobody knows what’s going to happen in mobile. We need to be ready to spin on a dime.”

Paper For Above instruction

The case of eBay’s strategic embrace of mobile commerce (m-commerce) illustrates significant shifts in the consumer decision-making process influenced heavily by comparison shopping via mobile platforms. Understanding which stages of this process are most affected provides insights into both consumer behavior and e-commerce strategies. Additionally, technology's impact on online shopping and consumer preferences, especially relating to out-of-hours shopping and comparative benefits of Black Friday versus Cyber Monday deals, warrants exploration.

Impact of Comparison Shopping on Consumer Decision-Making Stages

Comparison shopping on mobile platforms profoundly influences several key stages in the consumer decision-making process, especially the information search and evaluation of alternatives. During the information search stage, consumers actively seek product details, prices, reviews, and availability. Mobile comparison tools, such as eBay’s RedLaser app, facilitate quick access to diverse options and prices, enabling consumers to readily compare products across multiple vendors, which significantly shortens the decision-making cycle.

This accessibility broadens consumers' choices while simultaneously increasing their awareness of market prices and quality, leading to more informed decisions. The evaluation of alternatives, the next crucial stage, is also heavily impacted. Mobile commerce allows consumers to juxtapose prices, features, and seller reputations instantaneously, fostering a more competitive mindset and increasing price sensitivity. Empirical evidence suggests that consumers who use mobile comparison shopping are more likely to choose the most cost-effective option, thereby amplifying the influence of price as a critical decision criterion.

Moreover, the convenience of comparisons during different environments—waiting in line, commuting, or during downtime—means consumers engage more frequently and casually in this stage. Notably, the ease of access to comparison shopping impacts the final purchase decision, as consumers tend to favor vendors offering the best value. eBay’s multi-application platform exemplifies this effect by providing diverse functions such as barcode scanning, visual try-ons, and instant price comparisons, directly shaping consumers' ultimate purchasing choices.

Thoughts on 24/7 Virtual Shopping

The ability to shop virtually 24/7 has revolutionized consumer behavior, embedding online purchasing into the fabric of daily life. This perpetual accessibility diminishes the temporal constraints traditionally associated with retail, leading to higher levels of spontaneous purchases and increased convenience. Personally, the availability of 24/7 online shopping offers immense flexibility, allowing me to browse, compare, and buy products at any hour, fitting seamlessly into a busy schedule without the need to adhere to store hours.

This continuous availability also encourages a habit of frequent browsing, which can influence impulse buying behavior. Compared to traditional shopping, which is often limited by opening hours and geographic proximity, online shopping offers a broader selection, price transparency, and immediate gratification, making it the preferred choice for many consumers—including myself—especially for routine or urgent needs.

Black Friday vs. Cyber Monday: Consumer Benefits

The annual retail phenomena of Black Friday and Cyber Monday serve as pivotal moments for bargain shopping, yet they cater to different consumer experiences. Black Friday, rooted in brick-and-mortar stores, offers immediate access to in-store deals with the allure of physical shopping environments and doorbuster specials. Conversely, Cyber Monday emphasizes online deals, providing the convenience of shopping from home or mobile devices without the need to face crowds.

From a consumer perspective, Cyber Monday tends to be more advantageous due to ease of comparison, broader selection, and often more exclusive online-only discounts. The ability to instantly compare prices across vendors and avoid the chaos of in-store shopping makes Cyber Monday particularly appealing. Additionally, online deals tend to last longer and are more targeted, often providing better value and exclusive offers attractive to tech-savvy consumers like myself.

However, Black Friday’s tactile experience and immediate product availability remain compelling for consumers valuing instant possession and physical inspection. For those prioritizing convenience and price comparisons, Cyber Monday generally offers superior benefits, aligning well with the increasing trend towards digital shopping. Given these points, the shift towards online deals suggests that Cyber Monday may continue to grow in importance, driven by consumers’ desire for simplicity, safety, and better value.

Conclusion

Overall, mobile comparison shopping significantly influences the information search and evaluation stages of consumer decision-making, fostering more informed and price-sensitive choices. The seamless, round-the-clock nature of online shopping aligns with contemporary lifestyles, providing unmatched convenience and flexibility. Furthermore, online shopping events like Cyber Monday are increasingly advantageous due to their ease of comparison and variety, signaling a shift in consumer preferences towards digital retail environments. As technology continues to evolve, understanding these impacts is essential for retailers aiming to adapt and innovate in a competitive landscape.

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