1. Assoc. Prof. Dr. Aykan CANDEMIR Group Members; Ezgi TABAK1510201 Sercan ÖZYAŞAR1311134 Mohamed SAMAKE1310326 M. Ali YILMAZ1310120 Online Consumer Behavior www.ege.edu.tr E-Marketing 03.April.2015

2. Online Consumer Behavior www.ege.edu.tr E-Marketing 03.April.2015 WHY DO PEOPLE PREFER TO BUY SHOP ONLINE ? COMPARISON SHOPPING WIDER SELECTION BETTER PRICES REVIEWS FROM OTHER SHOPPERS SAVING TIME

3. THE GROWTH OF ONLINE SHOPPING Not too many years ago most people shopped in their local stores complete with parking and weather problems, long lines, and wobbly shopping carts. Even when online shopping was available, people felt uncomfortable using their credit cards and giving their personal information to cyber-shops. That has all changed. Throughout the world online buying has grown exponentially. www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

4. ADVANTAGES OF ONLINE SHOPPING Convenience: Online stores are usually available 24 hours a day,and many consumers have internet accsess both at work and at home.Other establishments such as internet cafe and schools provide access as well. Information and Reviews: Online stores must describe products for sale with photos, text and multimedia files.Some stores even allow customers to comment or rate their items. Price and Selection: One advantages of shopping online is being able to quickly seek out deals for items or services with many different vendors. www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

5. dısaDVANTAGES OF ONLINE SHOPPING www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior FRAUD AND SECURITY CONCERNS LACK OF FULL COST DISCLOSURE HANDS-ON INSPECTION PRIVACY

6. dısaDVANTAGES OF ONLINE SHOPPING www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior Fraud and Security Concerns Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud on the part of merchant than in a physical store. Merchants also risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchases. Privacy Privacy of personal information is a significant issue for some consumers. Different legal jurisdictions have different laws concerning consumer privacy, and different levels of enforcement. Hands – on inspection Typically, only simple pictures and or descriptions of the items are all a customer can rely on when shopping on online stores. If the customer does not have prior exposure to the item’s handling qualities,they will not have a full understanding of the item they are buying. Lack of Full Cost Disclosure The lack of full disclosure with regards to the total cost of purchase is one of the concerns of online shopping.

7. The Different Online Shopper Personality Types The Researcher Rewards Shoppers Impatient Shoppers Deal Hunters www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

8. The Different Online Shopper Personality Types www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior The Researcher Researchers love to learn everything they can about a product before purchasing it online. They may watch a product for a while on various websites, to see what the average price is, so that they can know for sure when they are presented with a price whether or not it is a good deal. Researchers also enjoy reading reviews from other customers, and regularly rely on ratings and reviews when deciding what to purchase online. Impatient Shoppers Impatient shoppers will not stick around if your checkout process is lengthy and complicated. They do not want to waste time signing up for an account, they want to buy their items immediately, and if you cannot provide them with immediate checkout, they will go to another website that will.. Deal Hunters Deal hunters are in search of the holy grail of deals. They purchase items used or refurbished if it will get them a better deal. These are customers who might buy an item they don’t actually need if you present them with a good enough deal for it. Deal hunters are also often on the lookout for free shipping deals. Rewards Shoppers Many online shoppers like to patronize the same online retail stores repeatedly. These brand loyalists enjoy customer loyalty programs that give rewards or points for purchases, and love to take part in deals and promotions that make them feel like they are working towards a goal with their purchases..

9. GLOBAL ONLINE POPULATION www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

10. ONLINE CONSUMER DEMOGRAPHICS AGE AND INCOME www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

11. ONLINE retaıl spendıng share www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

12. FFF MODEL www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

13. FFF MODEL The FFF model takes into consideration internal and external factors affecting consumer buying behaviour. It then proceeds to discuss various filtering elements customers will apply to make a selection of a store to purchase from and revised filtered buying behaviour based on their final selection. www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior External factors are the ones beyond the control of the customers. They can divide into five sectors: Demographics, socio-economics, technology and public policy; culture; sub- culture; reference groups; and marketing. Internal factors are personal traits or behaviours and include attitudes, learning, perception, motivation, self image, and semiotics. Functional motives relate to consumer needs and could include things like time, convenience of shopping online, price, the environment of shopping place (i.e. couch buying), selection of products etc. Non-Functional motives relate more to the culture or social values like the brand of the store or product for instance.

14. FFF MODEL – FILTERING ELEMENTS Kimar and Dange recognized security, privacy and trust as three hurdles to online purchases. Customers use these three factors to filter their buying choices and decide on the final selection of stores they are willing to buy from. In other words, if your store doesn’t pass your customers’ security, privacy and trustworthiness criteria, they won’t buy from you. Even if you are cheaper. www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior Compared to traditional brick and mortar shops, online shopping carries more risk during the purchase process. Customers recognise online as a high level risk purchase and have become aware of what might happen with their data online. They use that knowledge now to filter their purchase options by 3 factors:

15. FFF MODEL – SECURITY It’s an unfortunate characteristics of the internet that information there could be easily lost or stolen. Your payment details or personal information could easily be retrieved from a database it is stored in by the shop for instance, as we have seen recently with few major security breaches. Customers are growing more aware of the dangers of stolen data from the web. And they filter their purchasing alternatives against security criteria. www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior

16. FFF MODEL – PRIVACY www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior Another type of risk online is having personal information handed over to or stolen by 3rd party companies to send unsolicited emails and spam to customers. Even though the results of privacy breaches may not be as severe as losing your financial data, it can still cause a great deal of frustration and diminish trust in stores. A lack of trust in a store’s privacy policies is a serious obstacle for many customers.

17. FFF MODEL – Trust www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior Online trust is essential in building any relationship with customers. There seems to be however a diminishing trust in online merchants. This is especially true when it comes to smaller, niche stores. Customers focus on Amazon and other giants, shops with big brands behind them and don’t apply the same level of trust to a smaller shop. So if you run a store selling bike storage for instance, you should work hard to build a high level trust among your customers to be picked up for the order. A lack of trust in a store’s privacy policies is a serious obstacle for many customers.

18. FFF MODEL – Filtered Buying Behavior www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior The last element of the model covers what authors call the filtered buying behaviors, a set of expectations and motives revised by the filters we discussed above.

19. THANK YOU FOR LISTENING www.ege.edu.tr E-Marketing 03.April.2015 Online Consumer Behavior