Assignment 2: Executive Summary of M3: Assignment 2

Running head: ONLINE BUYING M3_A2 1

May 24, 2017

Overview of the Process

The strategy involved in buying is somehow problematic because of the psychological process the buyer has to undergo before settling on a particular product to purchase. Internet shopping requires a computer or phone with Internet connections (Teo & Yu, 2005). The Internet is essential for accessing the websites and Google sites/portals through which the commodities and services are advertised or sold. The online reviews of goods and services play a crucial role in influencing individual decisions to buy or not to purchase the items. It provides vast information on the products/services of interest. The choice to buy will depend on consumer’s perceptions and attitudes towards the products’ characteristics. In online marketing, social media platforms (Twitter, Instagram, Facebook, LinkedIn) provide a significant platform for the producers and retailers to interact with their customers. It also provides an excellent opportunity for the manufacturers to improve their brand loyalty. Before buying the product/services, there is set procedures to be followed by the buyer in the process of seeking ownership of the product. The success of the operations depends on the marketing process involved in each of the five stages.

Problem recognition

Problem recognition is the initial stage of the customer in the course of buying a product such as a cell phone online, from a company, such as Apple. As a client, the problem here is identifying the kind of cell phone they are seeking. Before deciding on which phone to settle for, the customer explores their perceptions on the kind of phones they desire to buy (Kauffman, Lai & Ho, 2010). This exploration on behalf of the customer is the opportunity for the marketing professionals to show how the ability of their products in meeting the needs and perceptions of the customers. In this case, the customer's desire is a quality phone with enough specifications matching their needs. For instance, it should have enough storage space where they can store their photos, videos, songs, movies and documents. The phone also is expected to have 4G or LTE, to be able to download and surf the Internet as fast as possible. The Internet will be efficient in googling information concerning various events and happenings and helpful in connecting with friends and relatives across the world. Another feature to consider is the operating system of the phone. The OS supports both the software and hardware functions of the Phone. A good phone must possess enough OS to help in running its services. To find these details the online company establishes an online platform such as a website or database where the customer can access and do some online window-shopping on the best phone to purchase. Through the online platforms, the customers can chat with the customer staffs that help in answering questions regarding the phone. This stage is essential as it helps the customers to settle on the potential supplier of the products. The marketing officer of the company shares factual information about the gadgets, and this generates customer's curiosity to use the phone.

Search and Determination of Alternatives

At this stage, the customers' mandate is to establish ways of solving the problem, which is to make the decision on which cell phone to purchase. The customer takes his or her time to gather information and research about the phone options to get concrete information (Bauer, Falk & Hammer, 2006). This stage needs experts and qualified marketers who have the impressive power to persuade the customer into buying their gadgets. The marketers give details on the goods and services and use that opportunity to convince the customers about how well their products will offer a lasting solution to the customers' needs. The marketers post the photos and videos of the phones on the company website or online pages for the customers to view while analyzing their specifications and suitability. Therefore, this stage depends entirely on the credibility of the marketing officials in understanding and establishing relationships with the target customers. The testimonials regarding customer satisfactions are also posted on the company's online pages to help convince other potential buyers to settle on a phone from them. These success stories are essential in establishing a lasting impression into the mind of a consumer.

Evaluation of Alternatives

The Internet provides the platform for the consumer to explore all options before settling on a cell phone to buy (Shun & Yunjie, 2006). Through performing in-depth research, the buyer gets full information about the product specifications, quality, durability, and prices. This is an opportunity for the customer to explore other online shops or competitors to analyze what they have in store to offer. In a competitive market, it is possible that a company improves their offers, for instance, by increasing discounts offered on the commodity thus making it cheaper. A company may also decide to provide free delivery services to their buyers. Based on the specifications of the phones sold in each shop, the buyer can make informed decisions concerning the best alternative. During the process of evaluating the options, the marketer must utilize their prowess well in building rapport and trusting relationships with the customers. The good relations coupled with high phone qualities are enough to convince the buyer to make the decision to buy in the shop. Apple provides customers with an opportunity to interact with their sellers and marketers worldwide to help them in disseminating information regarding their phones, which are always of high class and very attractive features.

Purchase Decision

At this stage, the customer feels he or she has done enough research on the options available to them. The buyers understand the prices and payment options for each alternative online shop or company. They are also completely aware of the specifications, prices and the terms of purchase for each commodity, and are deciding on whether to make a move to buy the merchandise (Solomon, 2014). The consumers understand what they want, and it is now easy for them to make the decision to purchase the phone. The customer can also walk away if they feel they are not getting the best offers and prices available for them. The marketer intervenes and reminds the customer of the reasons why they initially intended to purchase the commodity and reaffirms them of the cell phone's ability to solve the problem identified in the first stage of the online buying process. At some point, the customer opts not to buy and promises to come back at a later date. That would appear like a lost sale by the marketers' however; the marketing official makes follow ups through emails, phone calls, and social networking site to remind the buyers on their commitment to offering lasting benefits and solutions to them (Kauffman, Lai, & Ho, 2010). If convinced, the customer would come back and make a purchase of the commodity. The customer is briefed about the procedures of payment, which can be through credit cards, check, or any other convenient form of payment acceptable to the company. On payment, the goods are delivered to the customers through the companies’ delivery method of choice. The customer now enjoys full ownership of the phone and can use it for whatever purpose he wishes.

Post-purchase Evaluation

At this stage, the deal is sealed, and the purchase was made, and everyone seems excited. It is the concluding process of the online buying of the cell phone. It is the point at which the customer practically evaluates the commodity to decide if it matches their expectations. For instance, regarding having enough storage space, appropriate operating system, the right camera for videos and photo taking, weight, screen size and resolution among others. If the phone meets the specifications, the customer feels satisfied and may even recommend the company's products to other potentials buyers.

However, the customer sometimes may feel dissatisfied especially if the phone appears faulty or does not have features suggested (Cunningham et al., 2005). In such a case, the customer can opt to return the commodity, and demand a refund. For a marketer or a seller, that should be a chance for them to learn how to transform their brand making it more useful and attractive, a way to understand what the customer needs and wants are. As stipulated by Bill Gates, "Discontented/unhappy customers are usually the significant basis of learning." The customer's reactions will assist the company in upgrading their phones to become more appealing to the public. Through regular follow-up emails and text messages, the company can re-establish the brand trust and increase the possibility of the customer returning. The marketers should ensure that they update the customers on various offers and the new trends in the market.

Conclusion

The five steps give an account of the online process of buying. All negotiations and purchase are done online. On agreement, the seller and the buyer agree on where to deliver and receive the goods respectively. The success of each step depends on the building lasting relationships between the buyers and the sellers. A company like Apple has a functional brand management system that makes consumers quickly identifies their commodities online. Through sophisticated web designs and quality content writings, they attract a large pool of target buyers into viewing their gadgets. They have consumer database software through which they store the details of the customers regarding their purchase in terms of time, amount, frequency and date of the transaction. Through online operations and payments, the company can store data regarding their sales history, and this helps in identifying and rewarding its loyal customers. Such actions motivate the customer into establishing a continuous relationship with the company. The success of the buying process also depends on the client's degree of computer or Internet efficiency. Due to the high increase in cases of cyber attack issues, the customer should be assured of the safety of their information (Cunningham et al., 2005). The company must put appropriate measures to curb cyber crime. For instance, by verifying of the pins and passwords and login information to ensure that no unauthorized persons get access to the system.

References

Bauer, H. H., Falk, T., & Hammer Schmidt, M. (2006). eTransQual: A transaction process-based approach for capturing service quality in online shopping. Journal of Business Research, 59(7), 866-875.

Cunningham, L. F., Gerlach, J. H., Harper, M. D., & Young, C. E. (2005). Perceived risk and the consumer buying process: Internet airline reservations. International Journal of Service Industry Management, 16(4), 357-372.

Kauffman, R. J., Lai, H., & Ho, C. T. (2010). Incentive mechanisms, fairness, and participation in online group-buying auctions. Electronic Commerce Research and Applications, 9(3), 249-262.

Shun, C., & Yunjie, X. (2006). Effects of outcome, process and shopping enjoyment on online consumer behavior. Electronic Commerce Research and Applications, 5(4), 272-281.

Solomon, M. R. (2014). Consumer Behavior: Buying, having, and being (Vol. 10). Englewood Cliffs, NJ: Prentice-Hall.

Teo, T. S., & Yu, Y. (2005). Online buying behavior: a transaction cost economics perspective. Omega, 33(5), 451-465.